FedEx is a publicly listed company headquartered in United States of America. In 2020 its revenue was USD 83.96 billion. FedEx provides global air, road, rail and marine freight transportation services through a combination of owner-operated and subcontracted activities. FedEx provides transportation services through FedEx Express, FedEx Ground and FedEx Freight.
FedEx awards monetary incentives to board members, the Corporate Executive Team and management groups for emission reduction activities . Non-monetary rewards related to the company’s behaviour changes indicator are awarded to all employees. FedEx’s board members’ and management groups’ performance incentives are related to fuel and energy savings and its Corporate Executive Team’s performance incentives are related to the company’s CSR programmes and activities. All employees have performance incentives related to internal sustainability programmes and are encouraged to actively contribute to the company’s sustainability strategy.
FedEx has set a scope 1, 2 and subcontracted scope 3 net-zero target for 2040. The company failed to achieve a previous target to reduce its scope 1 emissions intensity by 30% by 2020, compared to 2005, only achieving a 26% reduction. FedEx has not set any intermediate targets. Setting regularly spaced intermediate targets will incentivise near-term actions on longer-term goals.
FedEx decreased its transport emissions intensity by about 0.7% annually between 2015 and 2020. This contrasts with the company’s 1.5°C pathway, which requires it to make substantial decreases in its emissions intensity of 3.7% annually between 2020 and 2025. FedEx’s transition plan aims to achieve a 100% electric pickup and delivery fleet by 2040, but currently, alternative fuel vehicles only account for about 2% of the company’s fleet. Without a reduction in FedEx’s fleet’s emissions intensity, FedEx’s fleet locked-in emissions between 2021 and 2035 are projected to exceed its 1.5°C carbon budget.
FedEx has pledged to invest USD 2 billion over the next several years to support achieving net-zero operations by 2040. However, the company does not disclose its total research and development (R&D) investment or R&D in low-carbon vehicles and energies. The company should ensure that a significant proportion of its R&D investment is in low-carbon vehicles and fuel development. Furthermore, FedEx states that the company is reimagining its digital capabilities, but it does not report any investments made in digital solutions.
FedEx receives a trend score of =. If the company were reassessed in the near future, its score would likely remain the same. FedEx is projected to exceed its total 1.5°C carbon budget for the period between 2021 and 2035. In March 2021, FedEx introduced its scope 1, 2 and 3 net-zero emissions target by 2040. FedEx aims to achieve a 100% EV fleet, use sustainable energy and invest USD 100 million in the Yale Centre for Natural Carbon Capture. To facilitate this FedEx is investing over USD 2 billion in initiatives across its aviation and road fleet and its facilities.
FedEx has set a scope 1, 2 and subcontracted scope 3 emissions net-zero target for 2040. FedEx is investing over USD 2 billion to support initiatives to make its operations more sustainable across its aviation and vehicle fleets and at its facilities.
In 2021, 50% of the diesel sold to service providers by FedEx Ground consisted of various biodiesel blends. Through the modernisation of aircraft and establishing the Fuel Sense programme in 2006, FedEx saved 146 million gallons of jet fuel and the company generates on-site and off-site solar energy.
FedEx’s emissions intensity decreased by about 0.7% annually between 2015 and 2020. FedEx is required to reduce its emissions intensity by about 3.7% annually to align with its 1.5°C pathway. FedEx’s own operations remained within its total past carbon budget for the period between 2015 and 2020.
FedEx aims to achieve a 100% EV pickup and delivery fleet by 2040, but alternative vehicles only account for 2% of its current fleet. Although FedEx has set a scope 1, 2 and subcontracted 3 net-zero target for 2040, it did not achieve its previous scope 1 emissions intensity reduction target.
No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.
The company discloses the actions it takes to create jobs, through expanding its own operations and by investing in its facilities. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
The company discloses the actions it takes to provide training and educational opportunities for workers and affected stakeholders. For instance, it has a learning academy for employees and a program to prepare students at historically black colleges and universities to become future leaders. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through providing specific training to its women or minority owned suppliers. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to reskill or upskill.
No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.
The company commits to respecting human rights. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.
The company commits to worker health and safety in its own operations and expects suppliers to do the same. Furthermore, the company discloses some workforce diversity fundamentals. However, the company can strengthen its disclosure on these topics and other topics related to the workers’ fair remuneration and say in decision making.
The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. No evidence was found of a global tax policy, nor details of taxes paid in each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. Furthermore, the company has a lobbying and political engagement policy. However, the company can still strengthen its disclosure on these subjects.