FedEx pledges $2 billion toward carbon-neutral operations by 2040, aims for all-electric fleet

A FedEx Corp. Boeing 767-300F cargo airplane sits parked at the San Diego Global Airport (SAN) in San Diego, California, U.S., on Monday, April 27, 2020.

Bing Guan | Bloomberg | Getty Photographs

FedEx is investing at the very least $2 billion towards sustainable electricity initiatives, which include electrical cars and carbon capture exploration, as portion of a new pledge to become carbon neutral by 2040, the company introduced Wednesday.

The Memphis-primarily based logistics large said it aims to substitute all of its parcel pickup and delivery vehicles with a sustainable electric powered fleet by 2040. FedEx, which operates additional than 200,000 motor vehicles and 680 cargo airplanes, will continue investing in alternate fuels to cut down emissions from its aircrafts and cars, the company reported.

“We have a responsibility to just take daring motion in addressing weather difficulties,” FedEx CEO Fred Smith stated in a assertion. “This purpose builds on our longstanding determination to sustainability during our operations, whilst at the very same time investing in long-expression, transformational methods for FedEx and our whole business.”

As component of the initiative, FedEx reported it will give $100 million to Yale College to help set up the Yale Center for Natural Carbon Seize.

The investment decision is supposed to help establish carbon seize to scale, the enterprise claimed, with “an preliminary target on assisting to offset greenhouse gasoline emissions equivalent to present-day airline emissions.”

“While we have built excellent strides in minimizing our environmental effects, we have to do far more,” FedEx Chief Sustainability Officer Mitch Jackson reported in a assertion.

FedEx joins other substantial providers placing carbon neutral targets within just the following few decades. Amazon, which has previously pledged to turn into carbon neutral by 2040, known as on other organizations in September to set similar targets.