Climate Change Data

Environmental Metrics

ESG Focus Areas

• Talent and Culture
• Workforce Health, Safety and Security
• Corporate Governance
• Energy and Climate Change

Environmental Achievements

• In Europe, expanded fleet to over 200 natural gas vehicles, reducing fine-particle emissions and generating up to 70% less NO2 emissions than the Euro VI Standard.
• Increased initiatives focused on circular economy practices, including reuse of packaging and pallets, and reverse logistics operations (e.g., recycling athletic shoes into plastic pellets).
• Reduced electricity usage by 18% in the US through LED lighting installation/retrofit in over 55 facilities.
• 100% renewable electricity used by offices and distribution centers in Spain since April 2019.

Social Achievements

• Rolled out new benefits for women and families, including Pregnancy Care Policy (80 hours pre-natal paid time off) and Family Bonding Policy (paid leave for parents). Approximately 1,000 employees utilized these benefits.
• Created nearly 340 new courses on XPO University, resulting in nearly three million training hours for employees across North America and Europe.
• Improved employee engagement scores from 7.3 in 2017 to 7.6 in 2019, based on a survey of over 13,000 hourly frontline employees in North America.

Governance Achievements

• Maintained a strong governance structure with a diverse board of directors (33% women) and independent committees.
• Launched a monthly email newsletter, Compliance Matters, to reinforce ethical business conduct and provide compliance resources to employees.
• Deployed online refresher programs for the XPO Code of Business Ethics through XPO University.

Climate Goals & Targets

Environmental Challenges

• Transitioning to low-carbon transportation (finding natural gas fueling stations).
• Balancing financial considerations with retrofitting existing facilities for energy efficiency.
• Managing the complexity of reverse logistics operations.

Mitigation Strategies

• Partnered with natural gas distribution partners to expand fueling capabilities.
• Reviewed operational lighting requirements for each customer and aligned new fixture locations with needed light levels.
• Consolidated reverse logistics operations for a customer into a single warehouse in the Netherlands.

Supply Chain Management

Responsible Procurement

• Competitive contracting and procurement opportunities to businesses owned by women, minorities, veterans, LGBTQ+ community, and those owned by/operated in support of people with disabilities.
• Partnerships with packaging providers certified by the Sustainable Forestry Initiative.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Sustainability Disclosure Topics and Accounting Metrics for the Transportation Sector

Certifications: ISO 14001 (two-thirds of European sites)

Third-party Assurance: Limited assurance by a third-party assurance provider for Scope 1 and 2 emissions for XPO's USA Supply Chain operations in 2018

Awards & Recognition

• Named one of the World’s Most Admired Companies by Fortune (2018, 2019, 2020)
• Ranked in the Top 100 of America’s most responsible companies by Newsweek (2019)
• Named a Winning “W” Company by 2020 Women on Boards (2020WOB)
• Received a rating of 85 out of 100 on the Human Rights Campaign Foundation’s Corporate Equality Index
• Named a Top 75 Green Supply Chain Partner by Inbound Logistics (2016-2019)
• SmartWay® Excellence Award winner

Environmental Metrics

ESG Focus Areas

• Safety
• Diversity, Equity and Inclusion
• Innovation
• Entrepreneurialism
• Respect

Environmental Achievements

• Installed LED lighting in facilities
• Reused pallets
• Right-sized packaging
• Employed eco-friendly processes
• Developed software to optimize truck routes, lowering congestion and reducing emissions
• Expanded fleet of alternative-fuel trucks in Europe (225 tractors running on LNG/CNG)

Social Achievements

• Created the new role of chief diversity officer and filled it through internal promotion
• Launched eight Employee Resource Groups
• Launched Grow at XPO professional development program
• Launched SheIsXPO mentoring program in the UK
• Partnered with Girls With Impact
• Extended partnership with Susan G. Komen
• Partnered with Soles4Souls

Governance Achievements

• Developed a Board-level process to improve performance on key ESG factors
• Elevated sustainability oversight to a specific committee (Nominating, Corporate Governance and Sustainability Committee)
• Developed an ESG scorecard linked to executive compensation

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on supply chains and workforce
• Shortages of PPE in the early days of the pandemic
• Maintaining safety protocols in hands-on job functions
• Meeting unprecedented demand for pandemic-related and essential goods

Mitigation Strategies

• Rapidly enhanced employee safety through social distancing, mask protocols, modified customer interactions, and provision of PPE
• Invested in employee benefits and programs
• Boosted pay for frontline workers
• Modified delivery processes to ensure no-contact deliveries
• Allowed remote work where possible
• Enhanced cleaning measures
• Partnered with customers to improvise responses to needs
• Secured steady supplies of PPE
• Dedicated resources to deliver COVID-19 vaccines and related supplies

Supply Chain Management

Responsible Procurement

• XPO Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001

Third-party Assurance: Third-party accredited auditors for 2020 environmental and HR-related data for XPO’s European operations

Awards & Recognition

• Fortune magazine's World’s Most Admired Companies
• Most Socially Responsible Companies in France by Statista
• EcoVadis Silver medal
• Top 100 3PL by Inbound Logistics magazine
• Top 100 trucker by Inbound Logistics magazine
• Gartner's Worldwide Leader in the Magic Quadrant for Worldwide Third-Party Logistics Providers
• Logistics Management magazine awards
• Winning “W” Company for Gender Diversity by 2020 Women on Boards, Inc.
• Human Rights Campaign Foundation’s Corporate Equality Index (85/100)
• Top Diversity Employer by DiversityJobs.com
• Military Friendly Employer by Viqtory
• Forbes magazine’s 50 best companies to work for in Spain
• SDCE 100 award for XPO Connect
• FreightTech 25
• Top 75 Green Supply Chain Partner by Inbound Logistics magazine
• Green Supply Chain Award from Supply & Demand Chain Executive
• Torres & Earth Award
• Ford, GM, Owens Corning and Whirlpool supplier excellence awards
• SupplyChainBrain's top 100 Great Supply Partner
• LEED Platinum medal for a distribution center in Italy

Environmental Metrics

ESG Focus Areas

• Health and safety
• Employee engagement
• Climate and greenhouse gas (GHG) emissions
• Talent management
• Data security and privacy
• Fleet management and innovation
• Diversity, equity and inclusion
• Network optimization
• Corporate governance
• Ethical conduct

Environmental Achievements

• Reduced total Scope 1, 2, and 3 emissions since 2018 (Scope 1: -10%, Scope 2: -25%, Scope 3: -3%)
• Reduced LTL carbon emissions by increasing the load factor rate by 3.5% (compared to 2019)
• 4.5% improvement in fuel economy in 2022 compared to 2021 through engine, drivetrain, tire, and aerodynamic upgrades
• Introduced first fully electric trucks in French and Spanish fleets
• Piloting a zero-emissions electric truck in the San Francisco Bay Area
• Launched a new rail freight service in Ireland, potentially eliminating 5,000 truck movements annually
• Invested over $1.4 million in LED lighting in the US, saving over 2,500 tons of CO2 equivalent
• Reduced environmental impact of tires through regrooving and retreading, saving up to 1.6 tons of CO2 per truck per year

Social Achievements

• Expanded diversity, equity, and inclusion initiatives
• Introduced new professional development programs (Grow at XPO, XPO Rise)
• Renewed partnerships with charities
• Maintained an average job satisfaction score of at least 7 out of 10
• Maintained an annualized voluntary turnover rate of no more than 10% for LTL drivers
• Increased diverse workforce by nearly 8%
• 53% of new hires were people of color
• Nearly 52% of XPO Graduate Program global hires were diverse
• Delivered nearly 2,000 wreaths to veterans’ cemeteries across the country
• Donated 3,275 pairs of new shoes to children in need through Soles4Souls

Governance Achievements

• Established a Sustainability Committee to support the Board's ESG initiatives
• Achieved an 89.2% completion rate for Code of Business Ethics compliance training and a 91% completion rate for Information Security compliance training
• Connecting executive pay with performance across 41 targets within the ESG scorecard
• 50% of the Board is comprised of women and individuals from traditionally underrepresented groups

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic
• Labor shortages
• Global supply chain delays
• Climate change impacts (extreme weather, etc.)
• Cybersecurity risks

Mitigation Strategies

• Successfully navigated pandemic ripple effects
• Implemented new safety systems and upgraded telematics systems
• Created a comprehensive risk management platform
• Invested in cleaner fuels and electric vehicles
• Developed alternative sourcing strategies
• Implemented multilayered security measures to protect systems and data
• Educated employees about cybersecurity threats

Supply Chain Management

Responsible Procurement

• XPO Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Natural disasters

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Sustainable Products & Innovation

• Electric vehicles
• Digital freight marketplace (XPO Connect™)

Awards & Recognition

• Named one of America’s Most Responsible Companies by Newsweek for 2022
• Ranked No. 1 among Fortune 500 transportation and logistics companies
• Named one of the Forbes 50 Best Companies to Work For in Spain
• Honored for Board Diversity by the Women’s Forum of New York

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Safety
• Sustainable Supply Chain
• Ethical Operations
• Employee Well-being

Environmental Achievements

• Achieved 13% CO2 reduction in 2023 (ahead of schedule)
• Reduced CO2 emissions by an additional 10 million kg through multimodal solutions
• 65% of square meters of sites equipped with LEDs
• Over 90% of the fleet complies with Euro VI standards
• Use of XPO Connect to reduce fuel consumption

Social Achievements

• Increased female driver population by close to 20% in 2022
• Increased internships and apprenticeships by 155% in 2022
• Over 50% of vacancies filled through internal promotions in 2022
• Free access to over 300 online tailor-made courses
• Yearly training on Code of Business Ethics for all employees

Governance Achievements

• EcoVadis Silver status for ESG performance
• Named most socially responsible company (Statista/Le Point)
• Named best company to work for (Forbes)
• XPO Supplier Code of Conduct implemented
• Compliance checks and audits of subcontractors

Climate Goals & Targets

Environmental Challenges

• Decarbonizing transportation operations
• Meeting increasing demands for sustainable supply chains
• Maintaining operational excellence while implementing sustainable practices

Mitigation Strategies

• Investment in alternative energies (HVO/CNG/LNG/EV)
• Implementation of LESS® (Low Emission Sustainable Solutions)
• Development of multimodal corridors
• Increased use of biofuels
• Deployment of electric vehicles

Supply Chain Management

Responsible Procurement

• XPO Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EcoVadis

Certifications: Road to Zero, Lean & Green Charter, CO2 Charter, ANSM authorization

Awards & Recognition

• EcoVadis Silver
• Most socially responsible company (Statista/Le Point)
• Best company to work for (Forbes)
• Less-Than-Truckload carrier of the year (MODE Global)