2022 ESG Report | FedEx 7 OUR PRINCIPLES DATA APPENDIX INTRODUCTION OUR PLANET OUR PEOPLE » The Audit Committee evaluates the execution and effectiveness of our corporate integrity and compliance programs and discusses with management regularly other developments regarding ESG reporting and disclosures, as well as alignment of financial reporting and ESG disclosures and internal controls and procedures related to ESG disclosures. » The Cyber and Technology Oversight Committee evaluates and discusses with management the company’s cyber and technology-related risks and the mechanisms for managing and mitigating such risks in addition to overseeing emergency preparedness plans. In 2021, the Board oversaw planning for the announcement of our goal to achieve carbon neutral operations, the distribution of COVID-19 vaccines, and the continued rollout of safety enhancements across the enterprise, in addition to monitoring and discussing other key ESG priorities. The Board has four standing committees, each of which is solely comprised of independent members as determined by the Board in accordance with the independence requirements of the New York Stock Exchange and the Board’s more stringent director independence standards. Recently, the Board renamed three of the committees to better reflect their respective oversight responsibilities. The Board has delegated each committee specific aspects of our ESG oversight. » The Governance, Safety, and Public Policy Committee oversees our Corporate Social Responsibility (CSR) goals, strategies, and programs, including with respect to sustainability and management of sustainability and climate-related risks. The Chief Sustainability Officer (CSO) provides updates to the committee at least annually. Additionally, the committee assists the Board in overseeing our safety strategies and programs and political activities and expenditures. » The Compensation and Human Resources Committee oversees and discusses with management our diversity, equity, and inclusion (DEI), workforce, enterprise health care, and other key human resource management strategies and initiatives. Risk management We employ an Enterprise Risk Management (ERM) program that provides a common framework for identifying and evaluating top risks across our business operations. This includes ESG topics, which could create long-term risks for the company. Through our ERM programs, senior leadership teams at each major operating company submit feedback using a consultative approach. We identify and classify risks into five categories: External, Strategic, Operational, Financial, and Compliance. Risks are prioritized based on potential financial impact, likelihood of occurrence within the upcoming fiscal year, and amount of residual risk to the enterprise. Our ERM team evaluates and finalizes identified risks and shares key risks with both the Board of Directors and the Audit Committee at least once per year, with significant changes shared quarterly. We understand that risks to our business are continuously evolving and we routinely review our risk management processes to enhance our business against future risks. Additionally, we have incorporated an evaluation of ESG risks— including climate change, societal risks, and other critical risks—into our ERM process. To ensure we deliver value to our business and our stakeholders, we conduct regular ESG materiality assessments, most recently in 2019. Our priority topics inform our global ESG approach, help us define and prioritize risks, and enable us to set robust, but achievable, goals. Board of Directors Corporate governance guidelines ESG | Investor relations webpage Our 2019 materiality assessment KEY LINKS