2022 ESG Report | FedEx 15 OUR PLANET DATA APPENDIX INTRODUCTION OUR PRINCIPLES OUR PEOPLE To help achieve carbon neutral operations, we have a goal to transition the entire FedEx parcel pickup and delivery (PUD) fleet to zero emission vehicles by 2040 through a phased approach. By 2025, we intend that 50% of FedEx Express PUD fleet purchases will be electric, increasing to 100% of all purchases by 2030. We are accelerating our sustainable energy plan within our facilities worldwide through energy efficiency, renewable energy, and other energy management programs. Our Energy SIT is focused on developing a strategy to achieve zero Scope 2 emissions by 2040, even though we anticipate that our facility electricity use will increase as we transition to electric vehicles. Our path toward carbon neutral operations also requires new strategies for removing and storing Earth’s excess carbon. In 2021, we pledged $100 million to help establish the Yale Center for Natural Carbon Capture. This commitment encourages interdisciplinary research to create natural solutions for sequestering CO 2 from the atmosphere. Development of these solutions falls into three major categories: biological, geological, and industrial. The Center’s initial target is to help offset GHG emissions equivalent to current airline emissions—approximately one gigaton per year—through short-term, medium- term, and ongoing research. Once these methods are proven, the Center will broaden its scope to address additional global sources of emissions to accelerate the adoption and implementation of natural carbon capture solutions around the world. In April 2021 we issued the first sustainability bond by a North American transportation and logistics company to further our commitment to carbon neutrality. Our 2021 sustainability bond framework aligned with the components of the Green Bond Principles, the Social Bond Principles, and the Sustainability Bond Guidelines, and we intend to follow these principles and guidelines for any subsequent sustainability bond offerings. Carbon neutral operations In March 2021, we announced our ambitious goal to achieve carbon neutral operations by 2040 across our global operations’ Scope 1 and 2 emissions and our Scope 3 contracted transportation GHG emissions. To meet this goal, we are investing more than $2 billion over the next several years to support bold action in three key areas: vehicle electrification, sustainable energy, and carbon sequestration. In addition, we continue to leverage other approaches to reduce vehicle emissions, such as increased intermodal rail usage at FedEx Ground and FedEx Freight, which avoided nearly 600,000 metric tons of carbon dioxide equivalent (CO 2 e) in FY21 alone. Thanks to our ongoing collective emissions reduction efforts, we decreased carbon dioxide (CO 2 ) emissions intensity—on a revenue basis— by 45% from FY09 through FY21, a period when our average daily package volumes grew by 180%. Additionally, we are continuing to invest in initiatives such as the successful FedEx Fuel Sense program, aircraft fleet modernization, and alternative fuels to avoid aircraft emissions. Carbon neutral operations goal announcement Sustainability bond framework KEY LINKS