FedEx Corporation

RATING

SECTOR

Transportation

WEBSITE

CONTACT

942 South Shady Grove Road Memphis, TN 38120 United States

STOCK EXCHANGE

LISTING

  • CDP A- List (2019)
  • #58 World’s Best Employers 2020 – Forbes
  • #82 Just Companies 2021- Forbes 
  • #196 Best Employers for New Grads 2020 – Forbes
  • #263 Best Employers for Womens 2020 – Forbes
  • #99 World’s Most Valuable Brands 2020 – Forbes
  • #513 Global 2000 2020 – Forbes
  •  #9 Canada’s Best Employers 2020 – Forbes
  • #419 Best Employers for Diversity 2020 – Forbes
  • #35 Top Regarded Companies 2019 – Forbes
  • #202 American’s Best Employers 2019 – Forbes
  • #10 World’s Most Admired Companies 2019 – Fortune
  • #15 100 Best PLaces to Work 2019 – Fortune

EMPLOYEES

309,000

CHIEF SUSTAINABILITY OFFICER

Mitch Jackson

AWARDS

  • Fortune Best Workplaces for Diversity 
  • CSR Global RepTrak World’s Most Reputable Companies for CSR
  • Top Corporation For Women Business Enterprises by WBENC
  • Most Civic Minded Companies by Points of Light Civic 50
  • No. 2 Ranking in Air Transport World’s Eco-Airline of the Year Awards 2012
  • Dubai Award for Sustainable Transport (DAST) sponsored by the Dubai government Roads and Transport Authority (RTA) in the “Environmental Protection” category
  • Anti-Corruption and CSR Award Coalition for Integrity

CONTENT SOURCE

FURTHER READING

Report created by Cec Ehrhard

FedEx Corporation

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

FedEx Corporation is an American multinational delivery services company headquartered in Memphis, Tennessee.

Specifically, FedEx Corp. is a holding company, which engages in the provision of a portfolio of transportation, e-commerce, and business services worldwide.

The company is known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location, a feature that has now been implemented by most other carrier services. FedEx is also one of the top contractors of the US government.

The company’s FedEx Express segment offers shipping services Fdx Corpor delivery of packages and freight. It operates through the following segments: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services, and Corporate, Other, and Eliminations. 

  • The FedEx Express segment consists of domestic and international shipping services for delivery of packages and freight
  • The FedEx Ground segment focuses on small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight services across all lengths of haul. 
  • The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions. 
  • The Corporate, Other, and Eliminations segment includes corporate headquarters costs for executive officers and certain legal and finance functions, as well as certain other costs and credits not attributed to the company’s core business. 

Company Sustainability Activity

FedEx set enterprise-level strategies to deliver global CSR goals and commitments, and each operating company reports on a core set of metrics.

These reports align with the Global Reporting Initiative (GRI) G4 Guidelines, Core option, and contain Standard Disclosures from the GRI Sustainability Reporting Guidelines.

The company prioritizes material environmental and social issues as well as the areas where they can use their most valuable assets — global transportation networks, logistics expertise and the team members — to reduce risks and provide the greatest possible benefits to society.

Highlights

  • 40% decrease in CO2 emissions intensity 
  • $12.3B in goods and services procured from diverse and small-business suppliers in the US
  • 3.1 metric tons of CO2 emissions avoided through fuel and energy saving initiatives 
  • $15.3m in tuition assistance to employees 

Targets

  • Increase FedEx Express vehicle fuel efficiency by 50% from a 2005 baseline by 2025
  • Seek Leadership in Energy and Environmental Design (LEED) certification on all new U.S. FedEx Express buildings and certified facilities.
  • Expand on-site energy generation and continue to procure renewable energy for facilities.
  • 5% renewable energy by 2020.
  • Replace 10% of diesel with alternative fuels by 2020.
  • Improve energy efficiency to reduce electricity use 20% by 2020.
  • Divert 80% of waste from land ll by 2020.

Progress

Reduce Carbon Emissions

  • 40.9% improvement from a 2005 baseline
  • On track, with three additional LEED-certified facilities in FY19
  • On track, with more than 23 million kWh generated in FY19
  • 5.4% renewable energy in 2019
  • 12.3% of diesel displaced with alternative fuels
  • 33% reduction in electricity use
  • 81.6% of waste diverted from land 

Aircraft Efficiency 

  • In FY19, FedEx’s aircraft modernization and FedEx Fuel Sense programs saved more than 250 million gallons of fuel and avoided more than 2.41 million metric tons of CO2e emissions.
  • FedEx uses interline commercial air carrier transport to maximize system and network efficiency, which in turn reduces fuel use, emissions, and costs. This involves collaborating with other airlines to carry FedEx packages on routes where our aircraft have less than a full load, making their air operations in those regions more efficient.

Vehicle Efficiency 

  • In FY19, FedEx Freight replaced 184 older diesel trucks that had reached their end-of-life with cleaner diesel trucks whose engines are 92% more efficient.
  • During FY19, the use of intermodal rail transport by FedEx Freight saved an additional 27,450,815 gallons of fuel and avoided 281,278 metric tons of CO2e emissions. 
  • In FY19, the company was able to add almost 400 electric vehicles to our global eet, resulting in more than 2,944 electric vehicles in service by the end of the fiscal year, including forklifts, airport ground service equipment, and delivery trucks. 

Sustainable Facilities

  • FedEx’s operating companies improve efficiency in many ways, including by certifying facilities to external standards, where viable, that encompass a host of environmental criteria.
  • During FY19, the energy management system resulted in energy savings of more than 22 million kWh of electricity, avoiding 16,200 metric tons of CO2e, the equivalent of taking nearly 3,500 cars off the road.
  • In FY19, since the program began in 2007, lighting retro ts at 1,130 facilities have saved more than 1.4 billion kWh of electricity.
  • At 26 FedEx locations, renewable and alternative energy systems – including on- and off-site solar, as well as fuel cell technologies – generated over 36 million kWh of clean energy in FY19.

Sustainable Materials and Recycling 

  • FedEx-branded packaging is 100% recyclable and composed of 45% recycled content. The third-party certified content percentage of our packaging materials reached 68% for FY19. This represents an increase of 13 percentage points over FY18.
  • 99.8% of all paper purchased by FedEx Office during FY19 was third-party certified, including 89% that was FSC certified.
  • During FY19, almost 10 million pounds of paper were shredded and recycled. 
  • In FY19, 59% of the solid waste generated in our operations was sent to recyclers.

Certificates

 

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 7

  • Setting ambitious fuel efficiency and emission reduction targets
  • Modernizing aircrafts and vehicle fleet
  • Incorporating alternative fuels and emerging technologies into their fleet and facilities
  • Using more efficient purchased transportation, including interline commercial air carrier and intermodal rail transport
  • Engaging team members and customers in energy efficiency initiatives
  • Advocating for regulatory and policy changes that support emissions reduction, efficiency improvements, and cleaner technology

SDG 10 

  • Making the most of alliances, industry associations, learning opportunities, and other events to help entrepreneurs build capacity and develop their full potential
  • In FY19, FedEx procured $12.3 billion in goods and services from diverse and small-business suppliers in the U.S. Of that $12.3 billion, 8% was spent with women-owned businesses and 12% was spent with minority-owned businesses. The remaining 80% was spent with other small-business suppliers

SDG 12

  • Committed to the zero-tolerance policies adopted by the U.S. and other governments to combat slavery or the trafficking of persons for any purpose
  • Prohibits trafficking-related activities and they expect suppliers and contractors to uphold these important principles, as well
  • FedEx encourages the reporting of any suspected violations through the FedEx Alert Line or other channels, and the policies forbid any form of retaliation for fulfilling this obligation

SDG 13

  • Commitment to a continual improvement process in environmental management
  • Evaluation of environmental impacts of FedEx packaging products, operations, and facilities with a commitment to minimize impacts and restore properties affected by FedEx operations
  • Improvement of employee environmental performance through detailed policies and procedures, training and recognition of excellence
  • Efficient use of natural resources to minimize waste generation through efforts that include recycling, innovation and prevention of pollution
  • Measurement of environmental performance by use of a framework to set and review objectives and targets, audit progress, sanction employee accountability and report to senior management and external stakeholders
  • Integration of environmental responsibilities and considerations into daily operations and business decision-making processes
  • Participation in the development of sound environmental policy within the transportation and business sectors
  • Commitment to emergency preparedness and response in order to minimize any potential environmental impacts resulting from day-to-day operations
  • Use of innovations and technologies to minimize atmospheric emissions and noise
  • Promotion of effective environmental management by our suppliers and contractors
  • Compliance with all applicable environmental laws and regulations
  • The promotion of awareness regarding environmental policies for employees and the public

SDG 16

  • Taking precautions to safeguard sensitive information, including customer data, in order to ensure a safe and secure online environment.
  • Engages in public policy initiatives that align with their business interests and expertise.
  • In compliance with all applicable laws and regulations, FedEx conducts lobbying activities, provides publicly disclosed political contributions, and encourages voluntary employee participation through their political action committee.

Secondary SDGs: 8, 9

 

Evaluation

FedEx created targets to reach in the upcoming years and the company has made decent progress in sustainability so far. They have several awards and listings, but they’re still emitting a lot of greenhouse gases into the atmosphere from all the vehicles and planes being used.

Until the company can use renewable resources to carry out the business, FedEx will be deemed an unsustainable company. It was stated in a New York Times article that the company paid zero dollars in taxes in 2017, which raises ethical issues; this issue is still under dispute.

FedEx has been given a “C” rating.

Analyst Outlook: Neutral

FedEx is receiving a neutral outlook because they are emitting GHG, but they have initiatives in place to use electric vehicles and transportation, and a commitment to transition to renewable resources. 

Key Points

  • Clear progress and targets stated in report
  • Once completed more goals, FedEx will be able to increase rating  
  • Extensive list of awards and listings
  • Some secondary certifications 
Share this Post