This Wednesday, FedEx announced it would invest at least $2 billion toward sustainable energy initiatives. Accordingly, the delivery services company will invest in three main areas: vehicle electrification, sustainable energy, and carbon sequestration. Furthermore, the company aims to become carbon neutral by 2040.
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FedEx: $2 billion pledge toward carbon neutrality
Memphis-based delivery services, FedEx, announced it is pledging to invest at least $2 billion toward carbon-neutral operations. Therefore, the company will divert this funding into three key areas: vehicle electrification, sustainable energy, and carbon sequestration. Accordingly, this is part of FedEx’s plans to become carbon neutral by 2040.
Moreover, the logistics giant said it aims to replace all of its parcel pickup and delivery vehicles with a sustainable electric fleet by 2040. According to the company, this will be possible through phased programs to replace existing vehicles. For example, “by 2025, 50% of FedEx Express global PUD vehicle purchases will be electric, rising to 100% of all purchases by 2030.”
Currently, the company operates more than 200,000 vehicles and 680 cargo airplanes. Thus, it will continue investing in alternative fuels to reduce emissions from its aircraft and cars.
Furthermore, the delivery services firm will work with customers to offer end-to-end sustainability for their supply chains through carbon–neutral shipping offerings and sustainable packaging solutions.
Besides, it will invest in fuel conservation and aircraft modernization. In fact, since 2012, the company’s “Fuel Sense” and “Aircraft Modernization” programs saved a combined 1.43 billion gallons of jet fuel. Moreover, they avoided over 13.5 million metric tons of carbon dioxide (CO2) emissions.
“We have a responsibility to take bold action in addressing climate challenges,” FedEx CEO Fred Smith said in a statement. Hence, “this goal builds on our longstanding commitment to sustainability throughout our operations. At the same, we’re investing in long-term, transformational solutions for uss and our entire industry.”
Simultaneously, as part of the initiative, FedEx said it would give $100 million to Yale University to help establish the Yale Center for Natural Carbon Capture.
Therefore, this investment would help build carbon capture to scale, the company said. Furthermore, FedEx will do this effort with; “an initial focus on helping to offset greenhouse gas emissions equivalent to current airline emissions.”
“While we’ve made great strides in reducing our environmental impact, we have to do more;” FedEx Chief Sustainability Officer Mitch Jackson said in a statement.
Finally, through this decision, FedEx joins other large companies setting carbon-neutral goals within the next few decades. For instance, Amazon, which has previously pledged to become carbon neutral by 2040; called on other companies in September to set similar targets.