FedEx escalates sustainability efforts in Asia Pacific region

FedEx has continued to advance its sustainability efforts across the Asia Pacific region, employing various strategies to reduce emissions from its operations while enhancing its support for environmental community actions.

In line with its global sustainability goals, FedEx has made strides in reducing emissions and bolstering the energy efficiency of its fleet and facilities. A significant facet of this effort has been the transition to electric vehicles (EVs) within its pick-up and delivery fleet. In the Fiscal Year 2023, FedEx operated 7,136 on- and off-road EVs globally. In the Asia Pacific region, additional EVs were introduced in Malaysia, and EVs now constitute 20% of the pick-up and delivery fleet in China. The company also achieved a milestone with the first cross-border EV delivery between Malaysia and Singapore. Moreover, FedEx incorporated electric tricycles into its surface fleet in Taiwan, showcasing an adaptation of vehicular solutions best suited to local conditions.

Sustainability initiatives extend beyond transportation to include infrastructure improvements. In FY 2023, thirty-four global facilities, including the surface operations station in Beijing, generated on- or off-site solar energy. The Beijing rooftop solar array is expected to cut 350 tons of CO2 emissions annually, contributing significantly to the reduction of conventional coal-fired thermal power usage.

Recently developed facilities also emphasise energy efficiency. The regional headquarters in Singapore feature energy efficiency certifications for lighting, heating, ventilation, and air conditioning systems. Similarly, the new headquarters in Shanghai, inaugurated in January 2024, boasts LEED (Leadership in Energy and Environmental Design) Gold certification.

FedEx has implemented initiatives to cultivate a sustainable culture in the workplace. The GoGreen program in China engages 11,000 employees to minimise electricity, water, paper, and fuel use in daily operations, with similar efforts extending to other markets in the Asia Pacific region. Creative upcycling projects are also underway, such as repurposing old uniforms into waist bags for couriers and converting old wooden skids into cat litter.

The FedEx Cares global community engagement programme plays a crucial role in the company's sustainability strategy. This programme promotes sustainable logistics through partnerships with non-profit organisations tackling climate challenges and enhancing environmental health in communities. According to FedEx, volunteer-based sustainability projects in the Asia Pacific saw a 30% increase in financial support year-over-year, up to May 31. FedEx employees have actively participated in cleaning beaches and riversides and planting 3,400 trees throughout the region.

To contribute to the future of sustainability, FedEx is involved in the International Trade Challenge in collaboration with Junior Achievement. This initiative aims to prepare young entrepreneurs to engage in global trade and sustainable delivery solutions. The programme has educated over 5,000 students from 10 Asia Pacific markets, providing insights into global trade, product distribution, competition, and sales. For this year's challenge, students were tasked with designing a market entry strategy to address sustainable delivery solutions.

Kawal Preet, Regional President, Asia Pacific, FedEx, emphasised the company's commitment, stating, "We have a responsibility to take bold action to address the environmental challenges our region is facing. Across our business here in Asia Pacific, we are seeking out projects and opportunities to ensure that our planet can continue supporting global economic growth and prosperity. This year we have raised the bar and increased our contributions towards programs that drive sustainable logistics and foster a green culture among our employees and in the community."

FedEx continues to document its progress in environmental, social, and governance (ESG) strategies, as underscored in its 2024 ESG Report. The report is accessible to the public and provides detailed accounts of the company's sustainability achievements and initiatives.