FedEx Corporation announced its goal to achieve carbon-neutral operations globally by 2040 by designating over US$2 billion in various investments to push this initiative. 

The plan includes investment in three key areas: vehicle electrification, sustainable energy, and carbon sequestration by electrifying the global parcel pickup and delivery fleet.

It also includes a US$100 million pledge to Yale University for the establishment of the Yale Center for Natural Carbon Capture to accelerate research into methods of carbon sequestration at scale, with an initial focus on helping to offset greenhouse gas emissions equivalent to current airline emissions.

“We have a responsibility to take bold action in addressing climate challenges,” said Frederick W. Smith, chairman and CEO, FedEx Corp. “This goal builds on our longstanding commitment to sustainability throughout our operations, while at the same time investing in long-term, transformational solutions for FedEx and our entire industry.”

Steps to carbon-neutral goal cited

FedEx said as part of its vehicle electrification, it said by 2040, its entire FedEx parcel pickup and delivery fleet will be zero-emission electric vehicles.

The American multinational delivery services company also said it will continue to invest in alternative fuels to reduce aircraft and vehicle emissions.

"FedEx will build on its successful Fuel Sense initiatives designed to reduce fuel consumption in its aircraft. Since 2012, the FedEx Fuel Sense and Aircraft Modernization programs have saved a combined 1.43 billion gallons of jet fuel and avoided over 13.5 million metric tons of carbon dioxide (CO2) emissions," it said.

Meanwhile, FedEx will also continue its efforts to make its more than 5,000 facilities worldwide more sustainable through continued investments in efficient facilities, renewable energy, and other energy management programs.

“Addressing climate change is a complex challenge that demands urgent action, and natural carbon capture strategies will be one key part of that action,” said Dr. Ingrid C. “Indy” Burke, the Carl W. Knobloch, Jr. Dean of the Yale School of the Environment. “Through the creation of the Yale Center for Natural Carbon Capture, we aim to develop measurable carbon capture strategies to help offset carbon emissions globally.”

FedEx said since 2009, the company’s efforts have contributed to an approximately 40% reduction in CO2 emissions intensity across the enterprise while package volume increased 99% during that period.

“While we’ve made great strides in reducing our environmental impact, we have to do more. The long-term health of our industry is directly linked to the health of the planet, but this effort is about more than the bottom line – it’s the right thing to do,” said Mitch Jackson, chief sustainability officer, FedEx Corp.