FedEx has announced a goal to achieve carbon-neutral operations by 2040. The delivery giant will invest $2 billion in vehicle electrification, sustainable energy and carbon sequestration.
By 2040, FedEx says its entire parcel pickup and delivery (PUD) fleet will consist of electric vehicles. The goal will be met through phased programs to replace existing vehicles—by 2025, 50% of FedEx Express global PUD vehicle purchases will be electric, rising to 100% of all purchases by 2030.
FedEx says it will build on its existing FedEx Fuel Sense initiatives, which are designed to reduce fuel consumption in its aircraft, and will continue to invest in alternative fuels to reduce aircraft and vehicle emissions.
FedEx’s timid 2040 objective seems likely to be overtaken by technological change. If current trends continue, any delivery fleet that’s still operating ICE vehicles after 2030 will be at a significant competitive disadvantage. That said, the company is already beginning to integrate EVs into its fleet, and the recent announcement is a welcome confirmation that this trend will accelerate.
EV advocates noted the jarring contrast between FedEx’s forward-looking move and the USPS’s recent decision to electrify only 10% of its ancient fleet of delivery trucks. A private company, which exists to make a profit, sees the financial wisdom of going 100% electric, but an agency of the federal government, which exists to provide essential services to its citizens, refuses to make the transition, even though the President of the United States has specifically called on it to do so.
“FedEx’s announcement to fully electrify its fleet signals our economy is moving toward zero-emission transportation and ZETA applauds their leadership,” said Joe Britton, Executive Director of the Zero Emission Transportation Association. “This stands in stark contrast to Postmaster DeJoy’s decision last week to lock the USPS fleet into decades of oil reliance. Americans expect our institutions of government to lead, not cling to older, more polluting technologies. FedEx has made clear that vehicle electrification is the future and has highlighted the strategic disadvantage that DeJoy put the postal service in.”