Mar 3, 2021 - Energy & Environment

FedEx pledges $2 billion to become carbon-neutral by 2040

An illustration of a box labeled fragile in front of a red background.

Illustration: Sarah Grillo/Axios

Package giant FedEx said on Wednesday it hopes to become carbon-neutral across operations by 2040 and pledged $2 billion of "initial investments" toward the goal.

Why it matters: Flying and driving heavy stuff all over the place — FedEx says it's the world's largest cargo airline — has a substantial carbon footprint.

  • Amazon, which overlaps with FedEx in some ways, announced a target of net-zero by 2040 in 2019.

How it works: FedEx said one focus will be electric vehicles.

  • It hopes to have its parcel pickup and delivery fleet fully electrified by 2040, with interim goals like making 50% of new vehicle purchases electric by 2025.
  • Elsewhere, it's emphasizing less polluting aviation fuels, more efficient planes, making its thousands of buildings more efficient and buying more renewable power.

The intrigue: FedEx is also looking to expand the use of natural carbon sequestration systems.

  • It's giving Yale University $100 million to launch the Yale Center for Natural Carbon Capture that the school unveiled this morning.
  • The center aims to "develop interventions that enhance the Earth’s abilities to store carbon and other methods that model natural processes," the announcement states.

How it works: Natural carbon sequestration means a lot of things. The announcement notes areas like...

  • Increasing CO2 update via practices like protecting growing new forests, more efficient photosynthesis, soil and farm management techniques, boosting earth's natural CO2 absorption in rock formations, and more.
Go deeper