2022 ESG Report | FedEx 17 OUR PLANET DATA APPENDIX INTRODUCTION OUR PRINCIPLES OUR PEOPLE Vehicle electrification Electrifying a large portion of our global fleet of over 200,000 motorized vehicles is a crucial component of our carbon neutral operations goal. Through our phased approach, we are revolutionizing our vehicle fleet by working to transition the entire FedEx parcel PUD fleet to zero emission vehicles by 2040. In 2021, FedEx Express agreed to acquire 500 electric vehicles from BrightDrop, a new business from General Motors, and in January 2022, we expanded our agreement to acquire 2,000 additional electric vans over the next several years. We are currently working on a plan to add up to 20,000 more, subject to further negotiations and execution of a definitive purchase agreement. Through our relationship with BrightDrop, we have also introduced electric pallets, which, in a pilot, allowed couriers to handle 25% more packages per day when used on routes in a high-density, vertical urban environment. Additionally, FedEx Office and FedEx Freight are exploring pilot programs to electrify their vehicle fleets, continuing along the path toward carbon neutral operations. FedEx Ground is developing a comprehensive strategy to facilitate the electric vehicle transition for independent service providers and is piloting the necessary infrastructure at our facilities to provide access to third-party charging solutions. To advance progress towards our electrification goal and enhance our intelligent logistics system, we leverage advanced technology to increase vehicle efficiency. We utilize innovative specialty delivery technologies to work within urban centers, which are increasingly implementing regulations to reduce the number of vehicles or create low-emission zones. Roxo™, the FedEx SameDay Bot®, is an autonomous delivery device designed to help retailers make on-demand same-day and last-mile deliveries to their customers and is approved for use in over a dozen states. We have entered a multi-year collaboration with Nuro to test multi-stop and appointment-based deliveries with autonomous, electric vehicles. Additionally, we announced a first-of-its-kind collaboration with Aurora and PACCAR to test autonomous driving technology within FedEx linehaul trucking operations.