2022 ESG Report | FedEx 18 OUR PLANET DATA APPENDIX INTRODUCTION OUR PRINCIPLES OUR PEOPLE to reduce our last-mile emissions and in FY20, we launched the Last Mile Optimization program to deliver certain FedEx Express packages through FedEx Ground. Through FY21, FedEx Express improved vehicle fuel efficiency by 42% from a 2005 baseline and has a goal to achieve a 50% improvement by 2025. Looking forward, we are focusing on enhancing our fleet fuel efficiency and avoiding fuel use through the deployment of electric vehicles. strategic approaches to overcome this challenge. Learn more about our roadmap to reduce emissions given our increased electricity demand in the Facilities section of this chapter. Our vehicle electrification strategy builds upon FedEx Express fuel efficiency improvements achieved by optimizing driving routes and replacing vehicles within our fleet with more efficient models. We are using other approaches In Europe, through our Zero Emission City Deliveries Solutions program, we have deployed 70 solutions to increase mobility options for deliveries in urban centers including electric vehicles and cargo bicycles. In China, FedEx Express is working with Neolix to evaluate the implementation of an autonomous, electric delivery vehicle. Additionally, our growing fleet of electric bikes reduces noise levels and combustion engine exhaust compared to traditional last-mile vehicles. In some international cities, such as London and Toronto, electric bikes are directly replacing our vans. In addition, we continue to electrify forklifts, airport ground service equipment, and other non-road vehicles across our operating companies. Through our phased approach, we are reducing fuel and maintenance costs and anticipate improving our efficiency even further as new technology develops. Before our purchased electric vehicles are deployed, we must ensure the necessary vehicle- charging infrastructure and technology is in place at our facilities. Building this infrastructure requires significant time and capital, but the commitment of our team members to our innovative strategy—coupled with our collaboration with power utilities, state and local governments, and regulatory agencies—will help us stay on track to deliver on our broader low- carbon infrastructure solutions. While our electricity usage will significantly increase due to electric vehicle charging, we are developing Roxo™, the FedEx SameDay Bot® Nuro collaboration Aurora and PACCAR collaboration Neolix collaboration KEY LINKS