Related policy perspectives
There are a number of related important policies and issues that affect FedEx and our customers. In this section, you can read more about the FedEx perspective or the latest news and updates on topics ranging from postal reform to sustainability and energy security. While there is a broad array of matters facing the company and economy, our guidepost is steady: FedEx supports policies that promote the interests of our customers, team members, investors and business.
Our roots in sustainability run deep. Now we’re driving toward what’s next: A goal to achieve carbon-neutral operations globally by 2040. To get there, we’re designating more than $2 billion of initial investment in three key areas: vehicle electrification, sustainable energy, and carbon sequestration.
Our longstanding, three-pronged approach to sustainability—Reduce, Replace, Revolutionize—guides our practices and innovations to reduce the environmental impacts of our fleets, facilities, and material choices. It drives the responsible and efficient use of resources, optimizes our business, lowers costs, and delivers value for our customers. From training our drivers to be more eco-conscious and upgrading our aircraft to more efficient models, to expanding our fleet of electric vehicles, we’re reducing resources, replacing older technologies, and revolutionizing for the future.
Our customers work hard to build their businesses and expand their reach. And as they grow, we grow. In fact, between 2009 and 2019, our average daily package volume grew by 99.2%. Over that same period, we reduced the intensity of our CO2e emissions by 40% (on a revenue basis). That’s no small feat, and we’re not finished yet.
FedEx has joined the newly established Electrification Coalition Business Council as a founding member. We look forward to working with other industry leaders in support of policies and programs that help speed the transition to electric vehicles.
FedEx Chairman and CEO Frederick W. Smith appeared before the House Transportation and Infrastructure Committee for the hearing, “The Business Case for Climate Solutions,” where he discussed the company’s newly announced carbon neutrality goal and the need for sound policy and innovative solutions to address climate challenges.
FedEx has announced an ambitious goal to achieve carbon-neutral operations globally by 2040. To help reach this goal, FedEx is designating more than $2 billion of initial investment in three key areas: vehicle electrification, sustainable energy, and carbon sequestration. This includes a pledge of $100 million to Yale University to help establish the Yale Center for Natural Carbon Capture, accelerating research into methods of carbon sequestration at scale.
A $100 million gift from FedEx will help fund a new center at Yale University focused on developing natural solutions for reducing atmospheric carbon. The Center for Natural Carbon Capture will support and accelerate research across academic disciplines, helping to establish a more sustainable and healthier future for our planet.
As one of the founding partner companies, FedEx will work with the Electrification Coalition Business Council (ECBC) and the Electrification Coalition to advance policies and programs that support the deployment of electric vehicles and charging infrastructure on a mass scale in order to overcome the economic, public health and national security challenges associated with the American transportation sector’s dependence on oil.
FedEx will be the first customer of GM’s BrightDrop, a new business line of electric-powered first-to-last-mile solutions for delivery and logistics companies. After innovating with GM through a series of pilots, FedEx Express will welcome 500 new EV600 all-electric vans to its fleet by the end of 2021.
Through an agreement with Chanje Energy Inc., FedEx plans to electrify 42 FedEx stations in California, making it one of the largest deployments of integrated charging infrastructure by a single commercial fleet to date. FedEx announced the addition of 1,000 Chanje V8100 electric delivery vehicles to its fleet in November 2018.
FedEx backs the long-term U.S. commitment to reducing energy interdependence and eliminating U.S. dependence on foreign oil. Through research and innovation, as well as new and evolving technologies, the U.S. now has the possibility to start achieving lasting, sustainable energy security. FedEx believes this is achievable by, for example, increasing the nation’s use of energy-efficient vehicles that are powered by electricity and alternative and renewable fuels. FedEx believes that producing more domestic and cleaner energy will help realize this important goal.
FedEx proudly serves varying needs of the energy industry, from transporting radioactive materials removed from a nuclear power plant, to wind turbine parts requiring specialized equipment.
FedEx is a member of Securing America’s Future Energy (SAFE) Coalition. SAFE is working toward enhancing the nation’s energy security and supports economic resurgence and resiliency, by advancing transformative transportation and mobility technologies and ensuring that the United States secures key aspects of the technology supply chain to achieve and maintain our strategic advantage.
FedEx constantly strives to improve our efforts as a leader in global citizenship, and to that end, to reduce our environmental footprint. We’re always looking for ways to pick up and deliver shipments efficiently, seek out new forms of renewable energy, and help make communities and the planet more sustainable for future generations. More on these efforts can be found in the latest Global Citizenship Report.
U.S. Postal Service reform
FedEx has long supported reforms that would give the U.S. Postal Service (USPS) the ability to adapt and prosper in a rapidly changing market with ever-shifting customer needs. FedEx has consistently urged Congress to give USPS the managerial flexibility needed to compete effectively while also holding it accountable to the same rules, market forces and incentives as its private sector competitors.
Universal Postal Union
The compromise reached at the UPU is a good step forward to addressing the issues that precipitated the convening of the UPU 2019 Extraordinary Congress and all UPU members should be congratulated for reaching an agreement. We encourage all UPU member countries to continue reform efforts as the organization prepares for its 2020 Congress.
Lithium battery transport
The safe transport of lithium battery shipments and other regulated commodities in the FedEx network is unquestionably a priority each day.
We support the harmonization of U.S. law with the International Civil Aviation Organization rules for lithium batteries. A global set of rules should be applicable to this inherently global product.
FedEx continues to advocate for stepped up enforcement efforts against those individuals and companies who willfully or recklessly violate regulatory requirements for lithium batteries, as non-compliant shipments are the truly dangerous shipments in air cargo. In the same vein, we support additional outreach by the U.S. government to their counterparts in Asia to enhance knowledge and awareness regarding the requirements.