How FedEx is Planning to Cut Energy Use and Boost Renewables
FedEx’s 2025 Corporate Responsibility Report outlines its strategy to cut energy use, shift to cleaner sources and improve efficiency across global operations.
The company reiterates its goal of carbon-neutral operations by 2040 and details progress in emissions, electrification, facility power use and customer tools for lower-carbon logistics.
The report covers FedEx’s ESG activities, with data on fuel, electricity, renewables and Scope 1, 2 and 3 emissions.
With more than 100,000 suppliers and 730,000 jobs supported worldwide, FedEx’s energy transition spans a vast network in more than 220 countries and territories that together represent more than 99% of global GDP.
Jet fuel savings and sustainable aviation fuel
FedEx reports a 6.1% reduction in direct (Scope 1) emissions in FY24, including a 4.9% fall in jet fuel-related emissions.
Aircraft upgrades and improved fuel efficiency have cut aviation emissions intensity by 31% since 2005. FedEx is aiming for a 40% cut by 2034.
Combined Scope 1 and 2 emissions intensity now stands at 179.50 metric tonnes of CO₂ equivalent per million USD in revenue, a 58% drop from FY09.
Over the same period, average daily package volume has grown by 121%.
Jet fuel conservation and aircraft upgrades saved around 140 million gallons of fuel and approximately US$400m in FY24.
To reduce aviation energy emissions further, FedEx commits to sourcing 30% of jet fuel from sustainable aviation fuel (SAF) blends by 2030.
“As the world’s preeminent express transportation company, our initial US deployment of this fuel advances our sustainability goals and bolsters the aviation industry’s efforts to source and use more SAF,” says Richard Smith, Chief Operating Officer, International, and CEO, Airline, FedEx.
“While we know further growth of the SAF market is needed, alongside other innovations, we are proud to celebrate this milestone with our world-class air network.”
Still, less than 1% of global jet fuel in 2024 is SAF, highlighting supply constraints.
FedEx offsets unavoidable emissions through a US$100m investment in the Yale Center for Natural Carbon Capture.
Research focuses on durable removal techniques like enhanced weathering using basalt, a process that removes CO₂ from the atmosphere, lowers soil acidity and supports crop yields.
FedEx is also broadening its emissions tracking, adding Scope 3 Categories 3 (fuel and energy-related activities), 4 (upstream transport and distribution) and 6 (business travel).
It has pledged to adopt science-based targets, pending external validation.
Facilities shift to renewable electricity
Facility energy use accounts for around 6% of FedEx’s total emissions.
The company aims to transition all facilities to 100% renewable electricity by 2040, setting interim targets of 500 GWh by 2028 and 1,300 GWh by 2033.
In FY24, FedEx generated more than 31 GWh from solar panels across 34 sites and contracted 8 MW of new solar capacity for FY25.
Energy intensity, measured in terajoules per million USD revenue, has declined to 3.19.
Alongside this, FedEx introduced operational efficiencies like reusable mesh bags to replace plastic ones at FedEx Ground hubs.
This move prevented 50 million plastic bags from entering landfill and saved US$20.4m.
“Procuring SAF is an important component of our aviation emissions-reduction strategy in the coming years and we are pleased to have executed a deal with Neste to begin using this fuel in our air operations,” says Karen Blanks Ellis, Chief Sustainability Officer and Vice President of Environmental Affairs, FedEx.
“Our aviation network represents the largest amount of FedEx fuel use globally and, as a result, is our biggest opportunity to drive down emissions.
"As we work toward our goal of carbon-neutral operations by 2040, we need the SAF market to continue to grow to meet industry demand.”
Powering electric transport and customer tools
On the ground, FedEx operates more than 200,000 vehicles. Since 2005, it has improved fuel efficiency across its fleet by 40%.
The company acknowledges its original target of a 50% improvement by 2025 is unlikely to be met, due to changes under its Network 2.0 restructuring.
Nonetheless, its energy shift continues through fleet electrification. In FY24, FedEx had more than 8,000 electric vehicles (EVs) in service, including cargo bikes and trikes in Canada, the UK and Taiwan.
Following pilot schemes, it ordered 150 Shyft Group Blue Arc electric trucks with higher payload capacity.
It aims for 50% of all new parcel pickup and delivery (PUD) vehicle purchases to be electric by 2025, rising to100% by 2030.
The full PUD fleet, including contractor vehicles, is expected to be electric by 2040.
FedEx also focuses on supporting infrastructure, with new EV chargers and collaborations with utilities and regulators to scale grid readiness.
It provided more than US$2.5m to back RMI’s GridUp tool, designed to help utilities anticipate demand growth from transport electrification.
FedEx handles more than 17 million shipments a day and offers tools to help customers manage their own emissions.
Its FedEx Sustainability Insights platform, launched globally in FY24, gives customers in more than 100 markets access to estimated CO₂ equivalent data on shipments.
This supports reporting and energy-related emissions planning. Since July 2023, more than 13,000 customers have used the tool.
FedEx also builds circularity into its packaging, with 74% of materials coming from third-party certified sustainable sources in FY24.
Reusable packaging options include the Reusable Padded Pak and Reusable Pak.
FedEx also joined the Circular Supply Chain Coalition with Pyxera Global to scale rare earth material upcycling, create local remanufacturing hubs and support skilled employment.
AI-powered tools like the fdx ecommerce platform help customers improve delivery success rates and cut energy use through rerouting and better returns management.
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