FedEx's EV Shift: Delivering on Net Zero and Circularity
FedEx outlines the steps it is taking to reduce emissions, electrify its fleet and scale up more sustainable services in its 2025 Corporate Responsibility Report.
The company confirms its target to achieve carbon-neutral operations by 2040, setting out progress made in areas ranging from aircraft fuel savings to EV rollout.
The report covers initiatives within ESG criteria, including detailed data on emissions, renewable energy use, workforce development and low-carbon customer solutions.
FedEx operates globally across a vast supply chain of more than 100,000 suppliers and supports 730,000 jobs.
Its global reach spans 220 countries and territories, representing more than 99% of world GDP.
Emissions cuts and shift to sustainable aviation fuel
FedEx reports a 6.1% year-on-year drop in its direct (Scope 1) emissions in FY24. These include emissions from vehicles and aircraft.
Jet fuel-related emissions have dropped by 4.9% as a result of improvements in fuel efficiency and continued aircraft modernisation.
Since 2005, aviation emissions intensity has fallen by 31%, with the company targeting a 40% drop by 2034.
Scope 2 emissions (indirect emissions from purchased energy) also contribute to an overall 58% reduction in emissions intensity since FY09, now down to 179.50 metric tonnes of CO₂ equivalent per million USD in revenue. This is despite package volumes more than doubling by 121%.
FedEx’s efforts to reduce aviation fuel use saved approximately 140 million gallons of jet fuel and an estimated US$400m in FY24 alone.
The company plans to source 30% of its jet fuel from sustainable aviation fuel (SAF) blends by 2030.
"As the world’s preeminent express transportation company, our initial US deployment of this fuel advances our sustainability goals and bolsters the aviation industry’s efforts to source and use more SAF," says Richard Smith, Chief Operating Officer, International, and CEO, Airline, FedEx.
"While we know further growth of the SAF market is needed, alongside other innovations, we are proud to celebrate this milestone with our world-class air network."
The report highlights that less than 1% of global jet fuel production in 2024 is SAF, indicating the scale of the challenge ahead.
To compensate for unavoidable emissions, FedEx has invested US$100m in the Yale Center for Natural Carbon Capture.
This includes research into enhanced weathering, a method that uses basalt to absorb CO₂ while improving soil health and crop yields.
FedEx is expanding its carbon reporting to include Scope 3 emissions in three categories:
Category 3 (fuel and energy-related activities)
Category 4 (upstream transportation and distribution)
Category 6 (business travel)
The company also commits to science-based targets that are pending third-party validation.
Electric fleet rollout and grid readiness
FedEx runs more than 200,000 ground vehicles, ranging from parcel delivery vans to long-haul trucks and off-road equipment.
From a 2005 baseline, vehicle fuel efficiency has improved by 40% in FY24. However, the company's original goal of a 50% increase by 2025 is unlikely to be achieved, due in part to structural changes under its Network 2.0 reorganisation.
Despite this, the shift to electrification within the business continues. More than 8,000 electric vehicles are now operating across the FedEx network, including e-cargo bikes and trikes used in the UK, Canada and Taiwan.
Following testing, FedEx ordered 150 Blue Arc electric trucks from the Shyft Group, designed to handle higher capacity.
FedEx is also targeting 50% of all new parcel pickup and delivery (PUD) vehicle purchases to be electric by 2025, reaching 100% by 2030.
The company's entire contracted and company-owned PUD fleet is set to be fully electric by 2040. To support the shift, FedEx is investing in charging infrastructure and collaborating with utility firms and regulators to build out grid capacity.
The company backs RMI’s GridUp tool with more than US$2.5m to help forecast electricity demand from EV charging.
"Procuring SAF is an important component of our aviation emissions-reduction strategy in the coming years and we are pleased to have executed a deal with Neste to begin using this fuel in our air operations," comments Karen Blanks Ellis, Chief Sustainability Officer and Vice President of Environmental Affairs at FedEx.
"Our aviation network represents the largest amount of FedEx fuel use globally and, as a result, is our biggest opportunity to drive down emissions.
"As we work toward our goal of carbon-neutral operations by 2040, we need the SAF market to continue to grow to meet industry demand."
Around 6% of total emissions come from facilities. FedEx aims to use 100% renewable electricity at these sites by 2040, with targets set at 500 GWh by 2028 and 1,300 GWh by 2033.
In FY24, FedEx generated more than 31 GWh of solar power across 34 global locations and signs contracts to add another 8 MW in FY25.
Facility energy intensity declined to 3.19 terajoules per million USD revenue.
A move to reusable mesh bags at FedEx Ground hubs eliminated 50 million plastic bags and saved US$20.4m.
Customer tools and circular design
Handling more than 17 million shipments a day, FedEx has introduced new tools and product designs to support more sustainable behaviours.
Its FedEx Sustainability Insights platform, launched globally in FY24, allows customers in more than 100 markets to access estimated CO₂ equivalent emissions data for their shipments.
This helps with Scope 3 tracking and planning, and more than 13,000 customers have used the tool since July 2023.
Circular design features strongly in the company's packaging strategy.
In FY24, 74% of packaging materials were sourced from third-party certified sustainable suppliers, and FedEx also offers reusable options such as the Reusable Padded Pak and Reusable Pak.
The company is part of the Circular Supply Chain Coalition with Pyxera Global, aiming to boost the upcycling of rare earth materials, build remanufacturing hubs and support high-skill local jobs.
FedEx also deploys platforms such as fdx, an ecommerce tool that uses AI to optimise routes, predict deliveries and reduce failed drop-offs and returns.
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