FedEx is committed to going carbon-neutral by 2040, a decade before the deadline set by the Paris Climate Agreement. The organisation's key objective aligns with COP28's mission to expedite emissions reduction through leveraging technology and data.
According to FedEx, sustainability represents a path to new opportunities, growth and profitability. As reiterated by FedEx Asia Pacific, Middle East, and Africa President Kawal Preet during the APEC Sustainable Futures Forum, the future of sustainability lies in developing smart supply chains through digitalisation and data. She stressed the significance of collaborations between organisations and governments to truly make a scalable impact, emphasising the need to translate ongoing discussions into action.
FedEx is spearheading sustainable transformation through a $2 billion investment in decarbonisation, focusing on three primary areas: Upgrading its pickup and delivery (PUD) fleet to electric, investing in sustainable energy, and supporting carbon sequestration projects.
The transformation of FedEx's global PUD fleet to fully electric vehicles by 2040 is part of a phased strategy. By 2025, electric vehicles will comprise 50% of the company's PUD vehicle purchases, increasing to 100% by 2030, with the ultimate aim of achieving a fully electric PUD fleet by 2040.
Regarding sustainable energy, FedEx is committed to curbing its greenhouse gas emissions by driving renewable energy and efficiency projects at its multiple facilities worldwide. For example, in the financial year 2022, on-site and off-site solar energy was generated by 29 FedEx facilities.
In its third area of focus, FedEx has collaborated to establish the Yale Center for Natural Carbon Capture and has invested $100 million to enhance methods of carbon capture and storage to counter aviation emissions.
Aligning with FedEx's efforts, FedEx Sustainability Insights (FSI), a FedEx emissions calculator, provides data on customers' carbon emissions impact at the account and package level, facilitating smarter and sustainable supply chain decisions. This initiative is crucial to achieving significant progression in reducing scope 3 emissions in the supply chain, considering the critical role of SMEs in sustainability.