COMPETITION WATCH: FedEx makes plans to slash emissions, improve efficiency by 2020

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MEMPHIS, Tenn. FedEx Corp. plans to improve the fuel efficiency of its FedEx Express vehicle fleet by 20% by 2020. The ambitious new goal was outlined in the FedEx 2008 Global Citizenship Report released last week.


Since 2005, FedEx Express has improved vehicle fuel efficiency by 13.7%, which, combined with its reduction of aircraft carbon dioxide emissions by 3.7% per available tonne mile, has reduced vehicle carbon emissions by almost one billion pounds.


“FedEx recognizes that one of the most responsible steps we and the industrial sector can take for our businesses, society and the environment is to reduce our dependence on fossil fuels,” said FedEx president Frederick W. Smith. “Our role is to connect the world in responsible and resourceful ways. The world faces big challenges, and we believe that collective, sustained efforts can create greater possibilities for people, businesses and nations worldwide.”


FedEx operates the largest fleet of commercial hybrid electric trucks in North America and the transportation industry with more than 170 vehicles. The fleet recently celebrated a major milestone: more than two million miles of revenue service.


FedEx E700 hybrid electric trucks, the most common hybrid in the FedEx fleet, improve fuel economy by 42%, reduce greenhouse gas emissions by approximately 25% and cut particulate pollution by 96% compared with conventional vehicles, the company says.


FedEx Express has also worked to optimize its delivery routes to ensure that the most efficiently-sized vehicle is used on each route. As a result of these efforts, more than one-fourth of the FedEx Express fleet has been converted to smaller, more fuel-efficient vehicles, saving more than 45 million gallons of fuel in the past three years, the company says.


These efficiency and emission reduction goals and results were only one component of the FedEx 2008 Global Citizenship Report, which outlines the FedEx commitment to its team members, customers, shareowners and the communities it serves. In concert with the release of the report, FedEx launched The FedEx Citizenship Blog at The blog is designed to give a transparent view behind the scenes at FedEx, featuring FedEx executives and team members describing how they carry out FedEx’s 35-year pledge to be a good corporate citizen and allow stakeholders to engage in a dialogue with FedEx on these important issues.


The FedEx Global Citizenship Report and blog highlight fiscal year 2008 milestones and fiscal year 2009 objectives in five key areas:Economics and Access, Environment and Efficiency, Community and Disaster Relief,  People and Workplace, and Governance.

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