By 2040, the entire FedEx parcel pickup and delivery fleet will be zero-emission electric vehicles, FedEx officials pledged.

As part of a newly announced goal to achieve carbon-neutral operations globally by 2040, FedEx is designating more than $2 billion of its initial investment in the following three key areas, including vehicle electrification:

Vehicle Electrification

By 2040, FedEx plans for its entire parcel pickup and delivery fleet to be zero-emission electric vehicles. This will be accomplished through phased programs to replace existing vehicles.

For example, by 2025, 50% of FedEx Express global pickup and delivery vehicle purchases will be electric, rising to 100% of all purchases by 2030, Fedex officials said in a press release.

FedEx also will continue to invest in alternative fuels to reduce both vehicle and aircraft emissions.

Sustainable Energy

FedEx pledged to work with customers to offer end-to-end sustainability for their supply chains through carbon-neutral shipping offerings and sustainable packaging solutions. The company also will continue efforts to make its more than 5,000 facilities worldwide more sustainable through continued investments in efficient facilities, renewable energy and other energy management programs.

Company officials also said Fedex will build on its initiatives designed to reduce fuel consumption in its aircraft.

Carbon Sequestration

The company’s initial $2 billion investment includes a pledge of $100 million to Yale University to help establish the Yale Center for Natural Carbon Capture. The center will accelerate research into methods of carbon sequestration at scale, with an initial focus on helping to offset greenhouse gas emissions equivalent to current airline emissions.

Researchers will develop methods that build on natural carbon storage systems, including biological ecosystems and the geological carbon cycle, improving, where possible, how quickly carbon can be absorbed, how much can be contained, and how long it can be stored. Through these efforts, Yale scientists aim to create a portfolio of carbon removal strategies that have impacts on a global scale.

Since 2009, FedEx’s efforts have contributed to an approximately 40% reduction in CO₂ emissions intensity across the enterprise, even while package volume increased 99%, Fedex officials said.

“While we’ve made great strides in reducing our environmental impact, we have to do more,” said Mitch Jackson, FedEx chief sustainability officer, in a press release. "The long-term health of our industry is directly linked to the health of the planet, but this effort is about more than the bottom line – it’s the right thing to do,"