FedEx (FDX) - Get Report on Wednesday laid out plans to make its entire global parcel pickup and delivery fleet carbon neutral by 2040, and has designated an initial investment of more than $2 billion in vehicle electrification, sustainable energy and carbon sequestration to help it get there.
In a statement, the global delivery company announced plans to make its entire FedEx fleet zero-emission electric vehicles by 2040. It will also invest in alternative fuels to reduce aircraft and vehicle emissions and aim to make its 5,000 facilities worldwide more sustainable.
As part of the effort, FedEx also has pledged $100 million to Yale University to help establish the Yale Center for Natural Carbon Capture.
The move comes as the Biden administration makes addressing climate change part of its core focus, and as companies begin to transition away from traditional energy sources to clean energy as well as adopting more environmentally sustainable practices.
"We have a responsibility to take bold action in addressing climate challenges," FedEx CEO Frederick Smith said in a statement. "This goal builds on our longstanding commitment to sustainability throughout our operations, while at the same time investing in long-term, transformational solutions for FedEx and our entire industry."
The American Petroleum Institute, one of the most powerful trade associations in Washington, is poised to embrace putting a price on carbon emissions as a policy that would “lead to the most economic paths to achieve the ambitions of the Paris Agreement,” The Wall Street Journal reported this week.
At last check, FedEx shares were down 1.18% at $256.53.