2022 ESG Report | FedEx 14 OUR PLANET DATA APPENDIX INTRODUCTION OUR PRINCIPLES OUR PEOPLE Strategic approach and climate change Strategic approach At FedEx, we recognize that our business has an impact on the environment and we remain committed to minimizing these impacts. Our Practical Sustainability philosophy guides our sustainability strategy through the lens of our Reduce, Replace, Revolutionize approach. Our Practical Sustainability philosophy highlights strategic and transformational stewardship that can lead to long-term success, innovation in products and operations, demand for solutions, and progress transparency. This philosophy, in alignment with our regularly conducted materiality assessments, directs our environmental strategy. Throughout FedEx, our team members help guide our strategy by applying our Reduce, Replace, Revolutionize approach to current environmental initiatives. REDUCE: Reduce or eliminate impacts from activities or operations REPLACE: Use the right solutions in the right applications REVOLUTIONIZE: Discover and utilize the technologies and solutions of tomorrow, today Our efforts aim to mitigate environmental impacts, increase efficiency, reduce costs, and protect against future risks. By implementing our Practical Sustainability philosophy and our Reduce, Replace, Revolutionize approach, we bring value to our organization and our stakeholders while making strategic progress against our goals. Around the world, FedEx is also working with the logistics industry and with the communities we serve to move goods more sustainably and design cities for a better future. We collaborate with non-profit organizations that provide innovative solutions to reduce the carbon footprint of the transportation industry through the Sustainable Logistics pillar of our FedEx Cares program. Climate change FedEx understands the impacts climate change poses to our business, such as intensifying weather events, emerging GHG emissions regulations, increased media and investor attention, and enhanced customer demands to address environmental challenges. While climate change poses strategic risks to our business and our stakeholders, it also presents opportunities as we advance our sustainability strategy. We identify and evaluate physical and transition climate-related risks through our ERM process and align our assessment and reporting approach with the recommendations from SASB and TCFD. This approach allows us to manage our risks while evaluating our progress towards our sustainability-related goals. Sustainability website Sustainable Logistics | FedEx Cares 2021 CDP questionnaire KEY LINKS