FedEx to Invest $2 Billion in Bid for Carbon-Neutral Operations -- Update
March 03 2021 - 12:17PM
Dow Jones News
By Colin Kellaher
FedEx Corp. said it plans to invest an initial $2 billion as
part of a new plan to make its global operations carbon-neutral by
2040.
The Memphis, Tenn., package-delivery giant said Wednesday that
the investment will focus on vehicle electrification, sustainable
energy and carbon sequestration.
As part of its plans, FedEx said its entire parcel
pickup-and-delivery fleet will be zero-emission electric vehicles
by 2040. The company said it would phase in new vehicles over time,
with half of FedEx Express global pickup-and-delivery vehicle
purchases to be electric by 2025, rising to 100% of purchases by
2030.
The moves by FedEx and its rival package carriers are
accelerating competition among vehicle manufacturers to develop and
produce the trucks and delivery vans that cargo companies are
seeking to reduce their carbon emissions.
FedEx has already signed an agreement to make it the first
customer for the EV600, a General Motors Corp. electric truck
designed for commercial purposes. The package-delivery company
agreed to buy 500 of the trucks for delivery later this year.
FedEx rival United Parcel Service Inc. has ordered 10,000 vans
from U.K.-based electric-vehicle startup Arrival Ltd., while
e-commerce giant Amazon.com Inc. has invested in Rivian Automotive
LLC and has a deal to buy 100,000 of the company's delivery trucks
for its burgeoning package-delivery operations.
FedEx is also pledging to provide $100 million to Yale
University to help establish the Yale Center for Natural Carbon
Capture, which the school said will focus on developing natural
solutions for reducing atmospheric carbon.
"We have a responsibility to take bold action in addressing
climate challenges," said FedEx Chairman and Chief Executive Fred
Smith, a 1966 graduate of Yale who launched the delivery giant in
1971.
FedEx, which operates the world's largest cargo airline, also
said it will continue to invest in alternative fuels to reduce
aircraft and vehicle emissions, and that it will build on earlier
work aimed at reducing fuel consumption by its aircraft.
The company also plans to offer sustainable packaging to its
customers and to continue sustainability efforts at its more than
5,000 facilities around the world.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 03, 2021 12:02 ET (17:02 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
FedEx (NYSE:FDX)
Historical Stock Chart
From Mar 2024 to Apr 2024
FedEx (NYSE:FDX)
Historical Stock Chart
From Apr 2023 to Apr 2024