FedEx pledges $2bn towards carbon-neutral operations by 2040

FedEx announced Wednesday that it will invest an initial $2 billion toward sustainable energy initiatives, including more electric vehicles and carbon capture research.

FedEx will invest at least $2 billion toward sustainable energy initiatives, including electric vehicles and carbon capture research, as part of a new pledge to become carbon neutral by 2040, an announcement by the company said Wednesday.

The Memphis-based logistics giant said it aims to replace all of its parcel pickup and delivery vehicles with a sustainable electric fleet by the date specified. In the meantime, FedEx, which operates more than 200,000 vehicles and 680 cargo airplanes, will continue investing in alternative fuels to reduce emissions from its aircrafts and vehicles, the company stated.

“We have a responsibility to take bold action in addressing climate challenges,” FedEx CEO Fred 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.”