FedEx Misses Climate Target
By Maitane Sardon
FedEx Corp. said it struggled to meet the aircraft-emissions
target it had set for 2020 as the pandemic forced it to put on hold
plans to modernize its planes to cope with rising package
The news comes as the package-delivery giant works to
decarbonize its business. Earlier this year, it pledged $2 billion
to achieve carbon-neutrality in its operations by 2040 in a major
strategy overhaul focused on vehicle electrification, sustainable
energy and carbon sequestration.
However, in its annual environmental, social and governance
report to investors, FedEx said it cut the emissions intensity of
its aircraft by 27% since 2005, falling short of the 30% reduction
it was aiming for by 2020.
Carbon intensity measures the amount of emissions companies add
to the atmosphere for every dollar they make. Companies can reduce
their emissions intensity by switching to renewable energy and
improving the energy efficiency of their factories, offices and
In its 2020 fiscal year, FedEx emitted 280.48 metric tons of
carbon-dioxide equivalent for each million dollars of revenue it
earned, up from 279.82 metric tons per million dollars a year
earlier, according to its ESG report.
The company, which operates the world's largest cargo airline,
said it had to keep some MD-10 freighters in service to handle the
surge in e-commerce and business-to-business volumes during the
"This fleet was critical to successfully handling growing volume
demand and medical supply needs," a FedEx spokesperson said.
The company said it plans to retire its entire MD-10 fleet over
the next two years and replace it with newer aircraft that produce
less emissions, like the Boeing 777F and the Boeing 767F.
In addition, FedEx said it struggled with delays in its access
to sustainable aviation fuel and that it had to put several fuel
projects on hold to "help team members remain focused on safety
during the pandemic." Despite the delays, the company said it saved
more than 118 million gallons of jet fuel and prevented more than 1
million metric tons of Co2 equivalent emissions.
The logistics giant's challenges underscore how the pandemic has
slowed environmental sustainability actions. Of 750 executives
surveyed by Deloitte, 65% said their organizations needed to cut
back on environmental spending due to the pandemic.
Write to Maitane Sardon at email@example.com
(END) Dow Jones Newswires
May 18, 2021 12:17 ET (16:17 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.