SustainabilityDenise Beall

Jessica SprankleJordan Clayton

Matthew FrankelMarch 5, 2012

Overview

• Intro to FedEx

• Sustainability Policy

• Actions taken to function sustainabily• Direct Benefits

• Model for Looking Ahead

FedEx Overview

• Global Shipping Provider

• 290,000 Emloyees

• 220 Countries

• $39.3 Billion revenue in 2011

• On New York Stock Exchange

EarthSmart

• Official FedEx Sustainability Initiative

• 4 main tenants:• Conservation• Alternative Energy• Industry Leadership• Environmental Policy

“EarthSmart is our commitment to minimize our impact on the environment. It’s designed to encourage innovation that makes our business…more sustainable, both economically and environmentally”

-FedEx Press Release, April 27 2011

Unique Opportunity

• Rated #122 in top 500 Sustainable Company by Newsweek Green Ratings

• Relatively Inelastic Commodity

• Encompasses multiple aspects of sustainability

• The first transportation company to necessitate fuel efficiency standards for commercial truck classes of medium and heavy-duty

• Investments in environmentally friendly ground fleets.

• Efforts to develop an express rail network

Transportation

Transportation • Optimizing routes

• Reducing package size to maximize shipment density.

• Replacing outdated less efficient planes

• Since 2005 FedEx has increased fleet miles/gal by 14.1%, saving over 53 million gallons of fuel

• Reduce aircraft emissions by 8.3%

Boeing 777

Boeing 757

Energy Efficiency

• 5 Solar Power facilities (3 hubs) in U.S. • Reduce annual CO2 emissions by 3,918

metric tons • Whittier, CA - 282 kW solar power system

has 414,000 kWh/per year capacity, provides 40% of annual energy needs

•  Oakland, CA - 904 kW system meets 80% of the hub’s energy needs: = 900 daytime home energy use

•  October 2010 became a solar powered hub for FedEx Express - 16,000 square meters 800,000 kWh per year

Energy Conservation, Reduction, Recycling

• LEED certified facilities-Water use reduction with low-flow aerators-high efficiency lighting & reduction in lighting with installation of windows and skylights. -FSC-certified paper-PCR - 70% of paper products contain recycled material-ISO 14001 environmental management systems -Improved efficiency on digital operations

“We’re improving efficiency and business performance - it’s the Holy Grail of Sustainability.” - Mitch Jackson,

Director of environmental affairs and sustainability for FedEx.

Combined Environmental Benefits

• Reduction of 610 Metric Tons of CO2 emissions = - 112 passenger cars not driven for one year- 69,240 gallons of gas not burned- 1,419 barrels of oil not burned

• - 80.8 Households’ electricity use for 1 year- 15,641 tree seedlings grown for 10 years- 4.3 acres of forest preserved from deforestation*(Data from U.S. EPA Green House Gas Equivalencies calculator)

Green Roof

• -Chicago O’Hare International Airport

• Approx. 175,000 square feet (the size of 3 football fields!)

• Reducing air pollution

• Reducing storm water run-off

• Extending the avg. roof life from 15-20 years to 40-50 years -lowering energy costs by 35% per year

• -Reducing airport noise

Company-Wide:• Reputation Institution CSR (Corporate Social Responsibility)

Index Top 50• Lindbergh Foundation 2010 Corporate Award for Balance• The International Charter 2010 Committed to the

Environment Award• Earned no. 6 spot on FORTUNE’s World’s Most Admired

Companies List 2012

Green Power:• FedEx Office ranked as the top printer and in the top 20

among retail companies in 2010 of EPA’s Green Power Partnership list of Fortune 500 companies that have invested in renewable energy

Acclaim…

• Reduce greenhouse gas emissions from FedEx Express Global air operations by 20% by the year 2020

• Improve and reduce overall carbon dioxide emissions 20% by 2020

• To obtain 30% of jet fuel from alternative fuel sources by 2030

Other Aspirations…• Large-scale investments into solar power and other

renewable energy • Public calls for fuel efficiency standards for medium and

heavy-duty truck classes• Research and development of hybrid-electric delivery trucks

Looking Ahead

“We remain focused on sourcing environmental solutions that will lessen our

footprint, while serving as an example to our peers.”

-FedEx EarthSmart Website

For now…