The drive to sustainability among parcel carriers continues, as a way to cut costs and satisfy shipper demands for green operations. And the goal line is inching closer. FedEx will replace its current delivery trucks with electric models until its entire fleet is made up of zero—emission vehicles by 2040. The company is making the transition as a way to help it achieve its goal to reach carbon neutral status in the same year. In its announcement, FedEx says its will slowly phase out its existing parcel delivery trucks and that 50 percent of its global vehicle purchases will be electric by 2025. All its vehicle purchases will be EVs by 2030, and it’s aiming to retire its gas-powered trucks completely 10 years after that.
Prioritizing EVs for FedEx’s parcel fleet is one step in the plan. The carrier plans to reduce more aircraft fuel consumption, after already saving 1.43 billion gallons of jet fuel since 2012. Facility upgrades for energy efficiency and management, working with supply chain customers to provide carbon-neutral shipping and packaging, and helping to establish the Yale Center for Natural Carbon Capture, are also included in the plan.
Still, FedEx acknowledged more has to be done. “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,” Chief Sustainability Officer Mitch Jackson of FedEx Corp said in a statement.
The long-term solutions parcel carriers have promised over the past years could be picking up steam due to customer demands. Supply chain professionals increasingly say sustainability in business operations translates into financial benefits.
“Making a social and environmental impact through your business has become table stakes, as consumers expect brands to take a stand on a growing number of topics material to their business and its long-term success,” Danielle Jezienicki, director of sustainability at Grove Collaborative, said in UPS’ August 2020 Sustainability Insights and Updates report.
