2022 ESG Report | FedEx 12 OUR PRINCIPLES DATA APPENDIX INTRODUCTION OUR PLANET OUR PEOPLE Our supply chain As the profound impacts of the COVID-19 pandemic continued through 2021, we worked with our suppliers to keep health care and industrial supply chains moving while meeting the accelerating demand of the e-commerce market. According to analysis prepared by Dun & Bradstreet, in FY20 we increased spending across our U.S. supply chain, which boosted national employment by supporting more than 400,000 jobs. Our FedEx Services Supplier Relationship Management (SRM) team manages and mitigates critical risks in our supply chain by implementing consolidated policies and working closely with our suppliers. The SRM team also collaborates with FedEx internal stakeholders to advance diversity and sustainability throughout the value chain. Our Sourcing Sustainability Impact Team (SIT) shares best practices and benchmarks findings to determine where we can improve. Additionally, we are founding members of the Sustainable Purchasing Leadership Council, and, as active members of their Strategic Advisory Committee, we follow International Standardization (ISO) 20400 guidance for sourcing criteria and sustainability metrics across our operating companies. All of our suppliers are expected to adhere to the principles set forth in our Code of Conduct and aim to meet our ESG commitments. Our requests for qualifications and proposals include sustainability-related questionnaires. In FY21, we screened 94% of potential and current Sourcing-managed suppliers. We continue to include ESG criteria in all Sourcing-managed supplier scorecards and we also include language addressing supplier performance in environmental, social, labor, and human rights areas in our supplier contract language, where appropriate. We strengthen and enhance our supply chain by sourcing from small and women- and minority-owned businesses. We also support the development of diverse suppliers through alliance sponsorships, participation in industry associations, and by providing equitable market access opportunities. In FY21, our U.S. operations acquired $18.7 billion in goods and services from diverse and small-business suppliers, with 10% spent with women-owned businesses, 19% with minority-owned businesses, and 71% with small businesses. We help women- and minority-owned businesses, including many FedEx suppliers, succeed through the Global Entrepreneurship pillar of our FedEx Cares program. Our initiatives provide diverse entrepreneurs with training, mentoring, networking, capital access, and other resources to help grow their business and navigate the challenges they face. In 2021, we launched the FedEx E-Commerce Learning Lab in collaboration with Accion Opportunity Fund to help women- and minority-owned businesses develop and grow their e-commerce operations. The program includes grants and intensive hands-on learning and coaching opportunities for 150 small-business owners as well as digital learning opportunities to support more than 2,000 small-business owners. U.S. Economic Impact Report Global Entrepreneurship | FedEx Cares Supplier diversity KEY LINKS