SUSTAINABILITY

By Kawal Preet | First published: December 18, 2023  Updated: May 27, 2026

Economic, social, and environmental impact: we call it the FedEx Effect. Kawal Preet explores how businesses of all sizes can help create a more sustainable, purpose-driven future.

• By transporting over USD 2 trillion worth of goods annually, FedEx helps keep supply chains moving and connects businesses to new opportunities.
• Beyond economic impact, FedEx also works to create environmental and community impact through emissions-reduction initiatives, charitable giving, and employee volunteerism.
• Like FedEx, businesses of all sizes can drive meaningful change by building partnerships, starting small, and measuring impact consistently.

Looking at the size and scale of FedEx today, it’s easy to forget that we were once just a startup. In April 1973, the first FedEx planes departed Memphis and delivered 186 packages across the US overnight. More than five decades later, that startup now delivers about 17 million packages worldwide each day.

As the world’s largest express transportation company, we recognize our global impact on commerce and communities. Every year, we transport over USD 2 trillion worth of goods, helping to keep global healthcare, e-commerce, and semiconductor supply chains moving. In a fast-changing world, we have continued to embrace our startup mindset to stay agile and meet customers’ evolving needs.

Guided by our belief that business can be a force for good, we’re committed to creating a positive impact on local economies worldwide. This extends beyond economic growth – we also aim to strengthen communities and improve lives through sustainability efforts, charitable giving, and employee volunteerism. By balancing economic progress and environmental responsibility, FedEx is helping to deliver a more sustainable and inclusive future for all.

Driving innovation with impact reporting

What does it take to create meaningful impact in today’s world? Whether you’re a small business or a large corporation, the underlying goal is the same: finding new ways to deliver value wherever you can. This, in turn, brings value to your own organization – from improving customer trust to attracting top talent.

Over more than 50 years of operations, we’ve had plenty of opportunities to reflect on the unique difference we can make to global communities. Currently, our shipping network connects markets that comprise more than 99% of the world’s gross domestic product (GDP). But our mission goes beyond moving goods – through constant innovation, we strive to support the long-term growth of businesses and communities alike.

One important way we measure and showcase this impact is through the FedEx Global Economic Impact Report. This annual report highlights our contributions to building smarter supply chains, helping small businesses streamline operations, and advancing sustainability in logistics. We call this the “FedEx Effect”.

The FedEx Effect: Improving lives and livelihoods

Accounting for both direct and indirect economic impact, FedEx contributed an estimated USD 126 billion to the global economy in fiscal year (FY) 2025. We’ve also taken bold steps to reduce emissions and modernize our fleet, bringing us closer to our goal of achieving carbon-neutral operations by 2040. Here’s a closer look at how we’re creating impact across key areas.

Moving businesses forward with end-to-end logistics

FedEx’s logistics services connect businesses around the world, providing the infrastructure and expertise needed to optimize supply chains across industries. In FY25, the global economy’s total net economic output reached an estimated USD 113 trillion. FedEx contributed about 0.08% of that figure, underscoring our role in enabling global trade.

This direct impact is fueled by our ongoing service enhancements and innovation. By developing AI-driven tools and digital solutions that streamline cross-border shipping, we’re helping our customers to build smarter, more flexible supply chains.

Generating indirect growth along the supply chain

Beyond our direct impact, we also contribute indirectly to economic growth through our investments in facilities, employee wages, and purchases from suppliers worldwide. These contributions to global net economic output reached an estimated USD 36 billion in FY25.

Globally, we work with a network of around 100,000 direct suppliers, 90% of which are SMEs. This allows us to support employment within small businesses while helping to strengthen local economies. In turn, our vendors make purchases from thousands of other companies down the supply chain, generating additional economic activity. As important drivers of local growth and innovation, SMEs play a vital role in community development, and our continued commitment to working with them helps amplify that impact.

Delivering a sustainable and inclusive future

Economic contribution is only one part of the FedEx Effect. Our impact also extends to environmental sustainability and community development around the world. To achieve our goal of carbon-neutral operations by 2040, we’ve embarked on a range of emissions-reduction initiatives.

These include transitioning our pickup and delivery (PUD) fleet to electric vehicles (EVs), investing in sustainable aviation fuel (SAF), and introducing energy-efficient technologies across our facilities. As we progress toward our goal, we’re also improving how we measure our sustainability impact through enhanced data collection and a new platform designed to expand our measurement capabilities.

Meanwhile, our FedEx Cares program helps to improve the lives of those we serve. From employee volunteer efforts with non-profit organizations to community outreach initiatives supporting minority-owned businesses, we work with local partners to identify and support those with limited access to opportunity.

How can small businesses create sustainable, inclusive impact?

Impact isn’t limited to large corporations – small businesses can make a real difference too. After all, FedEx was once a startup. Today, we continue to create global impact through our commitment to serving and supporting SMEs.

Drawing from decades of experience and progress, here are three ways small businesses can create meaningful impact.

1. Amplify impact through partnerships: Like FedEx, SMEs can expand their economic, social, and environmental impact by working with local organizations and non-profits. Identify initiatives that align with your values and find ways to contribute your unique strengths and expertise.
2. Start small: Small steps can build momentum toward long-term impact. For example, one of our early milestones was the launch of the FedEx Packaging Lab in 1987 to help advance more durable and sustainable packaging solutions. Even practical changes, such as switching to sustainable packaging, can make a measurable difference.
3. Measure your impact: Set clear sustainability KPIs and use digital tracking tools to monitor your progress. This helps strengthen sustainability reporting, enabling your business to build trust with stakeholders and enhance brand reputation.

With these guiding principles, businesses of all sizes can create lasting impact for economies, communities, and the planet.