Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Supply Chain Sustainability
• Safety

Environmental Achievements

• Reduced carbon dioxide emissions intensity on a revenue basis by 48.9% from FY09 through FY22, while average daily package volumes grew by 142%
• Saved over 961 million gallons of jet fuel and avoided an associated 9.4 million metric tons of CO2e through the FedEx Fuel Sense program since 2006
• Saved over 150 million gallons of jet fuel and avoided almost 1.5 million metric tons of CO2e in FY22 through aircraft fleet modernization
• Generated on- and off-site solar energy at 29 global locations in FY22
• Achieved ISO 14001 environmental management system standard at 862 sites across 33 countries in FY22
• FedEx Express received ISO 14001 certification for all on-airport locations in the U.S. in February 2022

Social Achievements

• FedEx team members who identify with a minority group held 36% of U.S. management roles in FY22
• More than 33,000 frontline team members participated in the Purple Pathways program
• Provided over $23 million in tuition assistance to more than 12,000 employees in FY22
• Completed over 600 autonomous vehicle shipments across 160,000 miles of operations with zero safety incidents

Governance Achievements

• 33% of FedEx Board of Directors are female, and 20% are racially or ethnically diverse
• Recognized by Ethisphere as one of the World’s Most Ethical Companies® in 2023
• 98% annual completion rate for employees’ assigned compliance training courses

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business operations (intensified weather, regulations, investor attention, customer demands)
• Transitioning to electric vehicles (availability, electrification of certain vehicle classes, grid capacity, operating conditions)
• Decarbonizing heavyweight transportation (mileage range, refueling/charging time)
• Deploying sustainable aviation fuel at scale
• Increasing energy demand to support EV deployment and charging infrastructure

Mitigation Strategies

• Reduce, Replace, Revolutionize strategy with $2 billion investment in vehicle electrification, sustainable energy, and carbon sequestration
• Phased approach to transitioning the entire FedEx parcel PUD fleet to zero-tailpipe emission vehicles by 2040
• Investments in renewable energy generation and procurement, battery storage
• Collaboration with government agencies, academic institutions, and alternative fuel suppliers
• Exploring alternative fuels for vehicles not easily electrifiable
• Modernizing aircraft fleet and implementing fuel-saving initiatives
• Energy management systems and on-site renewable energy generation at facilities
• Proactive energy requirements planning across operating companies

Supply Chain Management

Supplier Audits: 97% of sourcing-managed suppliers screened with sustainability RFx questions (FY22)

Responsible Procurement

• Code of Conduct
• Sustainability questions in RFx events
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Intensified weather

Transition Risks

• GHG emissions regulations
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Certifications: ISO 14001

Third-party Assurance: Cventure LLC (Scope 1 and 2 GHG emissions data)

Sustainable Products & Innovation

• FedEx® Sustainability Insights tool
• Sustainable packaging options

Awards & Recognition

• American Transportation Association DEI Change Leader Award (2022)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Supply Chain Sustainability
• Safety

Environmental Achievements

• Reduced carbon dioxide equivalent (CO2e) emissions intensity on a revenue basis by 48% between FY09 and FY23, while volume grew by 121%
• Saved 11.3 million gallons of jet fuel through the Fuel Sense program in FY23
• Saved 150 million gallons of jet fuel from aircraft modernization initiatives in FY22
• Generated on- and off-site solar energy at 34 global locations in FY23
• 45% of FedEx-branded packaging was third-party certified in FY23
• 99% of all paper purchased by FedEx Office was from vendors with responsible forest management practices in FY23

Social Achievements

• Launched enterprise-wide culture workshops to support teamwork and collaboration in 2023
• 98% of team members completed assigned compliance training courses in FY23
• Launched a new plan option called “Your Choice” for health benefits in 2024
• 27 hours of training completed per employee on average in FY23
• Purple Pathways program empowered over 42,000 team members

Governance Achievements

• Updated FedEx Code of Conduct in 2023
• Earned ISO 27001:2013 Information Security Management certification for four U.S.-based data centers in FY23
• 36% of Board members are female, 29% are racially or ethnically diverse

Climate Goals & Targets

Environmental Challenges

• Achieving previously disclosed goal of 50% of FedEx Express PUD fleet purchases being electric by 2025
• Electrifying long-haul fleet due to long distances and recharge time
• Large-scale charging infrastructure required for operations
• Achieving large-scale SAF deployment in aviation

Mitigation Strategies

• Conducting an executive-level review of FedEx Express PUD EV purchase goals
• Collaborating with stakeholders to define scalable solutions for long-haul fleet electrification
• Collaborating with power utilities and government officials to plan charging infrastructure
• Collaborating with government agencies, academic institutions, and suppliers to drive widespread alternative fuel production

Supply Chain Management

Supplier Audits: 100% of sourcing-managed suppliers screened with sustainability RFx questions in FY23

Responsible Procurement

• FedEx Supplier Code of Conduct
• ESG criteria incorporated into supplier assessments
• Small Business Grants Program

Climate-Related Risks & Opportunities

Physical Risks

• Shifts in weather patterns
• Extreme weather events

Transition Risks

• Stringent GHG emissions regulations
• Increased stakeholder scrutiny and litigation
• Shifting market demand

Opportunities

• Development of energy-efficient products and solutions
• Investment in renewable energy and alternative fuels

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Certifications: ISO 14001, ISO 27001

Third-party Assurance: Cventure LLC (Scope 1 and 2 GHG emissions)

Sustainable Products & Innovation

• FedEx Reusable Pak
• FedEx® Sustainability Insights

Awards & Recognition

• World’s Most Ethical Companies®

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Safety
• Supply Chain Sustainability
• Corporate Governance

Environmental Achievements

• Reduced carbon dioxide emissions intensity by 45% from FY09 through FY21, despite an 180% increase in average daily package volumes.
• Saved 65 million gallons of jet fuel from the FedEx Fuel Sense program in FY21.
• Saved over 146 million gallons of jet fuel and avoided almost 1.5 million metric tons of CO2e in FY21 through aircraft fleet modernization.

Social Achievements

• Offered free on-site COVID-19 tests and vaccines to all U.S. workers and badged vendors at select locations.
• Provided more than $17 million in tuition assistance to almost 11,000 employees in FY21.
• Contributed more than $7 million to non-profit organizations focused on supporting DEI in FY21.

Governance Achievements

• Received the Compliance Leader Verification designation from Ethisphere in recognition of best-in-class ethics and compliance programs.
• 98% of employees completed assigned compliance education in FY21.
• Incorporated an evaluation of ESG risks into the Enterprise Risk Management (ERM) process.

Climate Goals & Targets

Environmental Challenges

• Increased shipping volume and flight activity due to the COVID-19 pandemic.
• Industry-wide labor shortages.
• Increased energy demand from electric vehicle charging.

Mitigation Strategies

• Investing more than $2 billion to support vehicle electrification, sustainable energy, and carbon sequestration.
• Developing a comprehensive strategy to facilitate the electric vehicle transition for independent service providers.
• Developing a long-term strategy and roadmap to reduce Scope 2 emissions despite increased electricity demand from vehicle charging.

Supply Chain Management

Supplier Audits: 94% of potential and current Sourcing-managed suppliers screened in FY21.

Responsible Procurement

• Code of Conduct
• Sustainability-related questionnaires in requests for qualifications and proposals
• ESG criteria in supplier scorecards

Climate-Related Risks & Opportunities

Physical Risks

• Intensifying weather events

Transition Risks

• Emerging GHG emissions regulations
• Increased media and investor attention
• Enhanced customer demands to address environmental challenges

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Certifications: ISO 14001

Third-party Assurance: Cventure LLC (Scope 1 and 2 GHG emissions data)

Sustainable Products & Innovation

• Electric vehicles
• Electric pallets
• Roxo™ (FedEx SameDay Bot®)
• Sustainable packaging solutions

Awards & Recognition

• Compliance Leader Verification designation from Ethisphere