RATING

Outlook

Positive

SECTOR

Couriers and Express Delivery Services

Chief Sustainability Officer

Mitch Jackson

Contact Details:

T: N/A

E-mail: N/A

Stock Exchange and Ticker

NYSE: FDX

Website

www.fedex.com

Contact

T: 901-818-7500

E.mail: N/A

Listing

Awards

Ranked first in its industry on JUST Capital’s 2021 list of “America’s Most Just Companies” in the environment category
Ranked first in the travel, transport and logistics sector of Newsweek’s “America’s Most Responsible Companies 2021

Content source

FedEx Sustainability Report

Evaluation of FedEx

The FedEx report is not built to showcase targets and progress towards Sustainable Development Goals (SDGs), nor any SDGs are mentioned throughout the report. The Sustainability Bond Framework, issued in 2021 includes the SDGs the company targets to address via this Bond. Evaluating the progress of the company regarding environmental and social targets is almost impossible as new targets have been set up in 2021. The main one, achieving carbon neutrality by 2040 lists initiatives and current situations of vehicle electrification, sustainable energy and carbon sequestration. The metrics do not align with the goals and therefore progress can’t be determined. Although FedEx provides data on total emissions per year and per segment, the progress towards achieving the goals is not included in the report. Specifically, there are two different set of information such as “avoided 600,000 metric tons of CO2 or saved 146 million gallons of jet fuel”, but it is not mentioned the percentage of these savings compared with the total usage, which in this case the progress it is not measure and therefore not easy to understand their commitment to reach the goals using a quantitative analysis method. Only Scope 1 and 2 GHG emissions data included in the 2021 ESG Report was externally verified by Cventure LLC. Regarding the social aspects of the company’s sustainability efforts, there are mentioned training programs for career advancements, for safety, for promoting diversity, equity and inclusion, but no goals have been set up and no quantitative evaluation has been performed to determine the success of these programs. Comparison with previous reports can’t be performed as the current report contains targets set up in 2021 and there is no mention of any achievements of previous goals. Overall analysis of FedEx received a D and a positive outlook.

Sustainability Scorecard

FedEx Company Activity

FedEx Corporation was founded in 1971 and is based in Memphis, Tennessee. FedEx is a holding company that provides transportation, e-commerce and business services in the United States and internationally. It operates through the following segments FedEx Express, Ground, Freight, Services and Corporate, Other and Eliminations. The Express segment offers express transportation, small-package ground delivery, and freight transportation service. Through the FedEx Ground segment the company provides day-certain delivery services to businesses and residences.

The company’s FedEx Freight segment offers less-than-truckload freight transportation services using approximately 30,000 vehicles and 400 service centres, as of May 31, 2022. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. The company’s Corporate, Other and Eliminations segment offers integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding services.

FedEx Sustainability Activity - As per company declarations

Practical Sustainability philosophy to guide the sustainability strategy that includes the Reduce, Replace, Revolutionise approach to current environmental initiatives. Efforts are put into mitigating environmental impacts, increase efficiency, reduce costs and protect against future risks.

Sustainable Logistics is a pillar of the FedEx Cares program.

Certificate & Labels, Standards and Frameworks

International Standardization (ISO) 20400
ISO 14001
Leadership in Energy and Environmental Design (LEED) in the U.S.
Building Research Establishment Environmental Assessment Method (BREEAM) in Europe
Global Reporting Initiative (GRI)
Sustainability Accounting Standards Board (SASB)
Task Force on Climate-related Financial Disclosures (TCFD)
CDP Questionnaire – Climate Change 2021

FedEx in the news: Press Reviews and Social Media

N/A

Highlights from FedEx Sustainability Report

Achievements

In 2021 FedEx launched the E-Commerce Learning Lab in collaboration with Accion Opportunity Fund to help women- and minority-owned businesses develop and grow their e-commerce operations. The program includes grants and intensive hands-on learning and coaching opportunities for 150 small-business owners as well as digital learning opportunities to support more than 2,000 small-business owners.
In 2021, FedEx Express joined the Capital Equipment Coalition, showing commitment to increase circularity by reducing the use of raw materials and extending the lifespan of capital equipment
In 2021, 67% of reported solid waste in FedEx global facilities was sent to recyclers
In 2021 FedEx began reporting on the prior year gender, racial and ethnic composition of the U/S workforce
$2 billion over the next several years to support bold action in three key areas: vehicle electrification, sustainable energy, and carbon sequestration
In April 2021 issued the first sustainability bond by a North American transportation and logistics company to further commitment to carbon neutrality
FedEx Ground and FedEx Freight, which avoided nearly 600,000 metric tons of carbon dioxide equivalent (CO2) in 2021 alone
Decreased (CO2) emissions intensity—on a revenue basis— by 45% from 2019 through 2021
In 2021 investments in FedEx Fuel Sense program, saved 146 million gallons of jet fuel from aircraft fleet modernization and alternative fuels
FedEx Office finalised its LED lighting retrofit in all location

Weaknesses and Setbacks

In 2011 goal to achieve 30% reduction in aircraft emissions by 2020 from a 2005 baseline fell short due to a global increase in shipping volume by the COVID-19 pandemic which delayed the retirement of certain aircraft
In 2021 aircraft emissions increased 12% compared to 2020, however overall aircraft emissions intensity reduced by 27% since 2005 because of the Fuel Sense and aircraft modernization

Targets vs Progress Reported

Target	Results reported
Transition the entire FedEx parcel pickup and delivery (PUD) fleet to zero emission vehicles by 2040: Stage 1: by 2025, 50% of fleet purchases will be electric - Stage 2: 100% of all purchases will be electric by 2030	In 2021 an agreement for 500 electric vehicles from BrightDrop for the FedEx Express fleet - In January 2022, expanded the agreement to add 2,000 additional electric vans over the next several years - Plans to add 20,000 more electric vehicles to the fleet, subject to further negotiations and execution of an agreement - Introduced electric pallet, which in a pilot test allowed for handling 25 more packages per day - FedEx Office and FedEx Freight exploring pilot programs to electrify their vehicles fleet - FedEx Ground is developing a strategy to facilitate the electric vehicle transition for a specific portion of their customers - Enhance innovative specialty delivery technologies to reduce the number of vehicles or create low-emissions zones, (e.g. Roxo™, the FedEx SameDay Bot®) - In 2021, FedEx teamed up with Aurora and Paccar to test autonomous driving technology within FedEx linehaul trucking operations - 70 solutions to increase mobility have been deployed in Europe through the Zero Emission City Deliveries Solutions program - FedEx in China is working with Neolix on the evaluation of an autonomous electric delivery vehicle - In London and Toronto, electric bikes are replacing vans - Electrify forklifts and airport ground service equipment - Through 2021, FedEx Express improved vehicle fuel efficiency by 42% from a 2005 baseline through the Last Mile Optimization program (deliver certain FedEx Express packages through FedEx Ground)
Sustainable energy	- Accelerating sustainable energy plan within its more than 5,000 facilities to achieve zero Scope 2 emissions by 2040 - Solar energy generated at 26 global locations across operating companies - Four (4) FedEx facilities use fuel cell technologies together with on-site solar or battery storage - 30% of the FedEx Freight locations LED lightning has been installed - All other FedEx Freight locations to be converted to LED lightning in the next 5 years - FedEx energy management systems and lightning saved approximately 208 million kilowatt hours of electricity in 2021 - 39 LEED-certified facilities and 13 BREEAM-certified facilities
Carbon sequestration	- In 2021, FedEx pledged to invest $100 million to help establish the Yale Center for Natural Carbon Capture, interdisciplinary research to create natural solutions for sequestering CO2 from the atmosphere
By 2030, 30% of jet fuel from alternative fuels	- FedEx jet fuel accounts for 61% of reported emission footprint - In 2021 50% of the diesel FedEx Ground sold to service providers consisted in various biodiesel blends, resulting in 16,000 metric tons of CO2 avoided - FedEx Fuel Sense program lead to 65 million gallons of jet fuel savings in 2021
Fleet modernization	- FedEx global fleet includes 4,100 alternative fuel vehicles, including hybrid, electric, liquefied or compressed natural gas, liquefied petroleum gas and hydrogen fuel cell vehicles - Through aircraft fleet modernization efforts, savings of 146 million gallons of jet fuel and avoided almost 1.5 million metric tons of CO2 in 2021

UN SDGs Compliance Analysis

Progress made toward SDG targets
As reported by FedEx

Incentives towards COVID-19 vaccinations included $100 in additional Health Reimbursement Account (HRA) credits or Health Savings Account (HSA) contributions for 2022
one-time HRA credit of up to $500 to cover COVID-19 out-out-of pockets for fully vaccinated team members and spouses experiencing COVID-19 breakthrough cases
24/7 confidential counselling services through our Employee Assistance Program (EAP) and Mental Health/Substance Use benefit
WorkLife Balance Program, available to all U.S. team members for guidance and personalised resources for life challenges, such as child care, parenting, and financial concerns
Purple Ribbon program supports eligible team members and their family members affected by catastrophe, personal crisis, or tragedy by providing financial assistance. In 2021, FedEx awarded approximately $307,000 to team members
Purple Flex program to support a variety of flexible work options and leveraging talent located throughout the U.S., where appropriate

FedEx provides more than $1 million annually for leadership development programs in the U.S.
Sponsor endowed scholarships at four Historically Black Colleges and Universities (HBCUs) that range from $1,000 to $25,000 annually to more than 120 college and university students
Global Entrepreneurship pillar to provide women- and minority-owned businesses, including FedEx suppliers, with mentoring, networking, capital access, and other resources to help grow their business
FedEx Express global Learning Innovation for Tomorrow (LiFT) program trains and upskills employees with the skills of tomorrow. The program was developed based on the Future of Work survey response and LiFT centres on upskilling employees for the next five years and beyond
The FedEx Learning Center provides all team members with access to over 25,000 online courses
In 2021, average training hours for management level was 48.84 and for non-management level was 24.87
In 2021, FedEx Express launched What’s Next, a career journey app designed to increase visibility of FedEx jobs based on employee interest, education, and goals, and to connect team members to resources to help advance their careers
FedEx Express implemented a virtual learning academy, the Learning Arena, in the APC region to enhance critical skills in addition to an internal coaching program to engage high potential managers
FedEx Freight offers a 90-day leadership intensive program, the Action Learning Process (ALP) which led to about a 20% promotion rate for participants in 2021
In 2022, FedEx Logistics will launch the Building Business Leaders and Leading Leaders programs for high potential team members and new managers to develop their leadership skills over the course of five to six months
FedEx Services and FedEx Corporation led the first virtual Global Leadership Corps in 2021 where participants supported non-profits in Brazil.
In Latin America, FedEx launched the Future Leaders Program to develop high potential employees, and there are plans to expand the program throughout the Latin America and Caribbean region
Provided more than $17 million in tuition assistance to almost 11,000 employees in 2021
The Learning inspired by FedEx (LiFE) partnership between FedEx Express and The University of Memphis provides team members with the opportunity to earn free college degrees online
In 2021, the LiFE program added a mentoring component and extending coverage to over 100 majors and concentrations, investing more than $500,000 year-over-year increase in direct bill tuition assistance
The LiFE program currently has more than 2,000 enrolled participants across FedEx Express, FedEx Logistics, and FedEx Supply Chain

The FedEx Board of Directors includes 12 directors, four of whom are women and four of whom are ethnically diverse.
In the U.S., women represent 27% of FedEx management employees, while 41% of management employees are minorities
In 2021, FedEx operations in the U.S. acquired $18.7 billion in goods and services from diverse and small-business suppliers, with 10% spent with women-owned businesses, 19% with minority-owned businesses, and 71% with small businesses

Investments to reduce energy usage at FedEx sites:
- Installation of smart metres, LED lightning systems and energy managements systems
- Building refurbishments, upgrades and retrofits
Investments on on-site photovoltaic solar projects at fedEx sites

In 2021, lost time-injury rate was 3.99, an increase of 18.6% compared to 2020
FedEx depends on the the proactive engagement and involvement of team members to prevent accidents and injuries
Employees at FedEx Express can provide direct feedback on how to improve safety performance through the biannual Aviation Safety Culture Survey, based on which FedEx claims it allowed them to create action programs for safety performance improvement
FedEx Express implemented a Live Safe mobile app where all team members can submit safety reports, which are monitored 24/7 by the FedEx Security team
FedEx Express launched Stay Sharp in 2020, an interactive program that encourages employee safety engagement and awareness and recognizes team members for working safely. Stay Sharp continued to expand in 2021 with safety teams in Canada, Latin America, Asia, and Europe
The FedEx Express Safety Management System (FXE-SMS) was implemented with guidance from the Federal Aviation Administration to provide consistent policies, processes, and procedures to limit human error within aviation operations
In FY21, FedEx Ground created an Operations Safety Specialist (OSS) position in strategic locations to drive the success of safety strategies. OSS team members create customised safety strategies within their local operating environment and are trained to identify and mitigate workplace safety hazards
FedEx Ground offers the Leading with Safety program that prepares managers to create a safe workplace culture, enabling employees to execute safety processes, detect hazards, and stop work when necessary. As of December 2021, 877 participants in the U.S. and Canada have completed the program
Ensure the safety of drivers as well as the communities by quipping current and new vehicles with innovative road safety technologies, such as video event data recorder (VEDR) technology, advanced driver-assistance systems, audible turn-by-turn directions, auto-docking technology, GPS tracking, and other collision avoidance features:
- FedEx Express installed VEDR cameras in over half of its PUD vehicles and plans to cover 100% of the fleet by May 2022
- At FedEx Ground, VEDR cameras are installed in all PUD vehicles and line haul tractors which has led to a 19% reduction in accidents per million miles since 2017
- FedEx Ground requires all line haul tractors to be equipped with Forward Collision and Avoidance Mitigation technology, which has led to a 43% reduction for singles and a 34% reduction for teams in forward collision accidents per million miles since 2018

MD-10-10 fleet retired by the end of 2021 and MD-10-30 fleet was expected to retire by the end of December 2022
Fleet modernization include four Boeing 777F aircraft in 2021, and plan to deploy an additional 12 Boeing 777F aircraft between 2022 and 2025
Received 16 Boeing 767F aircraft in 2021, and plan to deploy an additional 50 B767F aircraft between 2022 and 2025
In 2021, FedEx began deploying the first of 30 new factory-built ATR 72-600F aircraft for shorter, feeder routes to replace ageing ATR-42 aircraft
Introduced 50 Cessna SkyCourier 408 cargo aircraft, the first of which anticipate to be delivered in spring 2022, to help reduce the number of planes needed per feeder route and further improve our fuel efficiency
FedEx Express is exploring microgrid technologies to replace traditional diesel backup energy generators
Additionally, FedEx Ground installed a solar thermal air conditioning system to maintain cooler temperatures at a sorting facility in Florida

In 2021 FedEx contributed more than $7 million to non-profit organisations focused on supporting DEI
Pledged $2.5 million to The Asian American Foundation to support Asian American and Pacific Islander communities across the U.S
In 2021, FedEx operating companies collaboratively participated in five enterprise-wide recruitment events, partnering with the National Black MBA Association, the Society for Women Engineers, Hiring Our Heroes, the Society of Hispanic Professional Engineers, and the Society of Asian Scientists and Engineers to diversify company’s external talent pool
Over 11,000 FedEx Ground (the most diverse segment) team members are registered for the Purple Pathways program, which targets career growth and engagement of frontline managers and package handlers, with more than 500 Purple Pathways mentors.
FedEx Express launched OnDeck, a training and development program that provides front-line workers with skills to prepare for management roles
In 2021, FedEx Services included five DEI questions in its engagement survey to capture team member perspectives on inclusion in the workplace which showed a 92% favorability rating and approximately 13,500 team members completed the survey
FedEx Ground also included a DEI engagement question in its annual engagement survey and added DEI as a standard goal in the 2022 team member annual performance review process
FedEx Express launched the Convene program, where a rotating group of four vice president level diversity sponsors mentor other team members through a virtual mentoring program
Numerous networks are available to team members, including, but not limited to: Women in Leadership, Black Professionals Network, Hispanic Action Network, All-Generations, Multi-Ethnic Leadership Community, Asian Network, Women Leading Change, LGBT & Friends, U.S. Military Veterans, Growing Professionals, Parents Working Together, EnABLE Network, Men Leading Inclusively, Multi-Faith Network, and many others
Increase DEI education for team members in 2021 by providing micro-learning DEI content across operating companies:
- The DEI Real Talk Speaker Series
- SVP Real Conversations
- FedEx Ground hosted several Courageous Conversation sessions
- FedEx Freight launched The Culture Brief & DEI Tune-Up email and podcast

Projects to address GHG emissions associated with transport fleet:
- Rollout of electric and hydrogen-powered vehicles and associated charging infrastructure
- Diversion of shipping to electrified intermodal rail
- Platooning technologies to reduce road freight
- Development of electrified hostlers, drones and robotics
- Support the increase use of jet biofuels from waste feedstock sources that avoid competition with food resources
Environmental impact on local communities
- Investments LEED certification of FedEx Facilities

All FedEx-branded cardboard packaging is 100% recyclable
During 2021 the third-party certified content percentage of FedEx packaging materials was 75% during
In 2021, 100% of all paper purchased by FedEx Office was from vendors with responsible forest-management practices
In 2021 the FedEx Forward Depots division recycled over 464 metric tons of information technology equipment on behalf of customers
FedEx Logistics connects customers with material recycling providers in North America with a 99% landfill diversion rate, along with 100% traceability for secure inventory management. Through this service offering, more than 1,000 metric tons of customer materials are recycled annually.
As of 2021 FedEx Express facilities in 43 countries have achieved the ISO 14001 environmental management system standard.
All suppliers are expected to adhere to the principles set forth in our Code of Conduct and aim to meet the company’s ESG commitments. Qualifications include sustainability-related questionnaires to evaluate supplier performance in environmental, social, labour, and human rights areas
In 2021, FedEx screened 94% of potential and current Sourcing-managed suppliers

Through the FedEx Fuel Sense program, 70 fuel-saving initiatives have been implemented, saving 948 million gallons of jet fuel and avoiding 9.3 million metric tons of CO2 since 2006
Waste management projects to increase recycling, optimise waste material, reuse and increase diversion rate
Support applied research of long-term carbon sequestration technologies, such as biomass and mineral weathering

Capital Equipment Coalition

Sustainability Certificates, Awards and Listings

FedEx Sustainability Report

RATING

SECTOR

Chief Sustainability Officer

Stock Exchange and Ticker

Website

Contact

Listing

Awards

Revenue

Market Capitalisation

Employees

Content source

FedEx Sustainability Report

Evaluation of FedEx

Sustainability Scorecard

FedEx Company Activity

FedEx Sustainability Activity - As per company declarations

Certificate & Labels, Standards and Frameworks

FedEx in the news: Press Reviews and Social Media

Highlights from FedEx Sustainability Report

Targets vs Progress Reported

UN SDGs Compliance Analysis

Sustainability Certificates, Awards and Listings

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