FedEx Announces Goals and Reports on Progress to Reduce Aircraft Emissions and Increase Vehicle Fuel Efficiency 20 Percent by 2020
MEMPHIS, Tenn., Nov. 12, 2008 – FedEx Corp. (NYSE: FDX) announced that by 2020 it plans to reduce carbon dioxide emissions from its FedEx Express aircraft fleet by 20 percent and improve the fuel efficiency of its FedEx Express vehicle fleet by 20 percent. The ambitious new goals were outlined in the FedEx 2008 Global Citizenship Report released today. Since 2005, FedEx has reduced aircraft carbon dioxide emissions by 3.7 percent per available ton mile and improved FedEx Express vehicle fuel efficiency by 13.7 percent, reducing vehicle carbon emissions by almost one billion pounds.
“FedEx recognizes that one of the most responsible steps we and the industrial sector can take for our businesses, society and the environment is to reduce our dependence on fossil fuels,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “Our role is to connect the world in responsible and resourceful ways. The world faces big challenges, and we believe that collective, sustained efforts can create greater possibilities for people, businesses and nations worldwide.”
FedEx continues to make significant progress toward achieving its fuel efficiency goals by investing in more fuel-efficient aircraft, vehicles and facilities including:
- FedEx operates the largest fleet of commercial hybrid electric trucks in North America and the transportation industry with more than 170 vehicles. The fleet recently celebrated a major milestone: more than two million miles of revenue service.
- FedEx E700 hybrid electric trucks, the most common hybrid in the FedEx fleet, improve fuel economy by 42 percent, reduce greenhouse gas emissions by approximately 25 percent and cut particulate pollution by 96 percent compared with conventional vehicles.
- Just as important, other companies have referenced FedEx’s more than two million miles of revenue service milestone to justify testing and purchasing hybrid electric technology.
- FedEx Express has worked to optimize its delivery routes to ensure that the most efficiently-sized vehicle is used on each route. As a result of these efforts, more than one-fourth of the FedEx Express fleet has been converted to smaller, more fuel-efficient vehicles, saving more than 45 million gallons of fuel in the past three years.
- FedEx has begun upgrading its aircraft fleet by replacing narrow-body Boeing 727 aircraft with Boeing 757 planes that lessen the environmental impact — reducing fuel consumption up to 36 percent while providing 20 percent more payload capacity.
- The company will also acquire Boeing 777 aircraft that provide greater payload capacity and use 18 percent less fuel on average than the MD-11 aircraft currently in operation. These aircraft replacements will also significantly reduce carbon emissions.
- FedEx Express employees are increasing jet fuel efficiency and reducing jet fuel emissions during operations with more than 30 initiatives that range from improvements in flight planning to aircraft operation efficiencies.
- FedEx is also reducing the amount of fuel we use when a plane is at the gate by using ground power instead of aircraft power, saving almost one million gallons of fuel per month.
- FedEx Express and FedEx Freight operate three solar-powered facilities in California—in Oakland, Whittier and Fontana—eliminating almost three million pounds of carbon dioxide emissions each year. FedEx Express recently broke ground for its largest solar-powered hub to date. The Cologne, Germany hub installation, which is expected to be completed in 2010, will include a 1.4-megawatt (MW) solar power system and is expected to generate approximately 1.3 gigawatt-hours of electricity per year, equivalent to the annual consumption of 370 households.
These efficiency and emission reduction goals and results were only one component of the FedEx 2008 Global Citizenship Report, which outlines the FedEx commitment to its team members, customers, shareowners and the communities we serve. In concert with the release of the report, FedEx launched The FedEx Citizenship Blog today at blog.fedex.com. The blog will help give a transparent view behind the scenes at FedEx, featuring FedEx executives and team members describing how they carry out FedEx’s 35-year pledge to be a good corporate citizen and allow stakeholders to engage in a dialogue with FedEx on these important issues.
The FedEx Global Citizenship Report and blog highlight fiscal year 2008 milestones and fiscal year 2009 objectives in five key areas: Economics and Access, Environment and Efficiency, Community and Disaster Relief, People and Workplace, and Governance. Highlights from the report include:
Economics and Access
FedEx strives to connect the world in responsible and sustainable ways, helping meet consumers’ needs and promote business opportunities in more than 220 countries and territories. In the Global Citizenship Report, FedEx reiterates its long-term financial performance goals that support the company’s core financial strategies.
Environment and Efficiency
FedEx has pioneered innovations that are helping the entire transportation industry to reduce its environmental footprint. Notably, working with the Environmental Defense Fund, FedEx pioneered the development of commercial hybrid electric vehicles for use by FedEx and others in the transportation sector. On the solar-powered front, the FedEx 350,000-square-foot solar-powered facility in Oakland, Calif., was the largest commercial solar-electric rooftop system at the time it was built in 2005. Since then, FedEx has installed two more solar-powered facilities in California, with another scheduled to open in Cologne, Germany, in the spring of 2010.
FedEx has made progress toward the following long-term environmental goals:
- Reduce its aircraft carbon dioxide emissions 20 percent by 2020 on a pounds- per-available-ton-mile basis. Such emissions have decreased by 3.7 percent in the past three years.
- Improve FedEx Express vehicle fuel efficiency 20 percent by 2020, thereby reducing CO2 emissions. Such fuel economy has improved by 13.7 percent in the past three years.
- Expand on-site renewable energy generation and maintain our goal of 25,000 megawatt-hours (MWh) through procurement of renewable energy credits. To date, FedEx has exceeded its goal of 25,000 MWh of renewable energy credits procured and has generated more than 1,000 MWh of on-site solar energy.
Community and Disaster Relief
FedEx’s ability to respond quickly, efficiently and on a global scale makes disaster relief the cornerstone of its philanthropic efforts. FedEx also extends its resources and networks in the areas of safety, health and education. In fiscal 2008, FedEx cash and in-kind donations totaled more than 1.1 percent of pretax profits.
People and Workplace
FedEx understands that the success of its business depends on the ability of our people to deliver, and takes responsibility to help its people develop their talents so they can succeed. In fiscal 2008, our full-time retention rate was 93.1 percent, women and minorities occupied 38.6 percent of management roles and participation rates for employee feedback surveys was 93.4 percent. Currently, FedEx holds the distinction of being named by Fortune magazine as a great place to work in more than 22 countries. FedEx has also been named to Fortune Magazine’s list of 100 Best Companies to Work for in America for 10 out of 11 years, including in 2008.
FedEx has a long-standing commitment to the highest standards of corporate governance. FedEx and its independent Board of Directors work to exceed the minimum compliance standards set forth in the Sarbanes-Oxley Act of 2002 and the New York Stock Exchange’s corporate governance listing standards.
The FedEx Citizenship Blog will be updated regularly. FedEx plans to release its Global Citizenship Report annually. FedEx encourages stakeholder dialogue about its corporate social responsibility efforts. Comments, questions and feedback may be sent to email@example.com.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $39 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 290,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.
Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. These statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical experience or from future results expressed or implied by the statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts and other factors that can be found in FedEx Corp.’s and its subsidiaries’ press releases and filings with the Securities and Exchange Commission.
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