Multiplying Opportunities - 2020 Global Citizenship Report sustainability.fedex.com
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Multiplying
Opportunities
2020 Global Citizenship Report
sustainability.fedex.com
Our CSR Strategy Economy People Environment Data Appendix Multiplying Opportunities Through Innovation FedEx connects the global economy through innovative technologies, pioneering approaches, and customer-focused solutions. Whether we are multiplying growth for our customers and our business, multiplying the potential of our people, or multiplying efficiencies for the environment, we use innovation to create value and opportunities across the world. 2 2020 FedEx Global Citizenship Report
Our CSR Strategy Economy People Environment Data Appendix Contents Our CSR Strategy 4 Economy27 People41 Environment60 Data Appendix 76 About this Report Our 12th annual Global Citizenship Report (the “Report”) covers FedEx corporate social responsibility (CSR) strategies, goals, programs, and progress. Unless otherwise noted, data covers each of our operating companies and all geographies in our 2019 fiscal year, which ended May 31, 2019. This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards Core option, and contains disclosures from the GRI Sustainability Reporting Standards (as well as reference tables for the Task Force on Climate-related Financial Disclosures and Sustainability Accounting Standards Board), which are listed in the Reporting Framework Index. Key performance highlights are included in the relevant report chapter, while detailed performance data, including our year-over-year performance, is included in the Data Appendix. Scope 1 & 2 GHG emissions data was externally verified by Cventure LLC. 3 2020 FedEx Global Citizenship Report
Our CSR Strategy Economy People Environment Data Appendix Our CSR Strategy Multiplying Good With a global reach and purpose-driven mission, we connect the world responsibly and resourcefully. At the core of our business, we enable economic growth for customers through access to markets and innovation, link businesses through a diverse portfolio of products and services, and create opportunities for people in more than 220 countries and territories. 40% Our sustainability efforts have contributed to an approximately 40% reduction in CO2 emissions intensity across the enterprise from FY09 to FY19, a period in which revenue grew by 96%. 4 2020 FedEx Global Citizenship Report
Our CSR Strategy Economy People Environment Data Appendix
Chairman’s Letter
Multiplying Opportunities
Through Innovation
As we release this report, the world Multiplying Opportunities
is grappling with the novel Coronavirus
COVID-19 pandemic. During these
for the Economy, Our People
unprecedented times, FedEx is one and the Environment
of the only companies in the world Economy: Multiplying Growth
with the networks and capabilities for Our Business and Society
to keep commerce and aid moving. FedEx supports the ingenuity of business
owners and powers the economy in a
With the health and safety of our team number of ways.
members as our top priority, FedEx is on
the front lines of providing relief, building We fuel the explosive growth of
upon decades of experience in dealing with e-commerce. As we maintain a
natural disasters and medical challenges. market-leading portfolio for e-commerce
— the fastest growing segment of our
This experience and our company values business — we do so with a sharp focus
will continue to make FedEx absolutely on customer needs and the environment.
essential to providing support on a For example, Roxo™, the FedEx SameDay
global scale. Bot™ holds promise for deliveries in
congested or difficult delivery locations
This is critical because the world is and is all electric — using only batteries
depending on us now more than ever. that produce zero localized emissions.
As I said in my recent From the Chairman Similarly, in 2019, through our collaboration
and CEO message, it’s who we are and with Wing, we marked the first scheduled
what we do. e-commerce delivery via drone in the
Please take a moment and visit here for the U.S. and did so with zero emissions.
latest on how FedEx is responding to the
outbreak, with a focus on Safety Above All.
Frederick W. Smith
Chairman and CEO As you’ll see in the following report, we’re
committed to putting our CSR strategy to
work for the benefit of the global economy,
our people, and the environment — and
we’ll carry that commitment through
as the world responds to and recovers
from this pandemic.
5 2020 FedEx Global Citizenship Report
Our CSR Strategy Economy People Environment Data Appendix
We support small and diverse business. We’re also investing in our team members’ FedEx Cares:
We’ve expanded our Small Business futures through extensive education and These are only a few remarkable examples
Grant Contest — which provides a boost training. Last fiscal year, team members of how FedEx has been working to benefit
to deserving entrepreneurs through on average participated in 18 more hours of the economy, people and the environment.
grants, prizes and FedEx Office services training than the previous year, and FedEx
— to 10 countries. And we take pride in provided $15.3 million in tuition assistance We’re also refocusing our robust giving and
the positive outcomes generated by the to help employees further their education. volunteering platform, FedEx Cares. Moving
global businesses we support. As just forward, the three FedEx Cares pillars
one example, through the sale of its coffee Environment: Multiplying Efficiencies are: Global Entrepreneurship, Sustainable
and chocolate products, Moka Origins, With regard to our physical assets, we’re Logistics, and Delivering for Good. As you’ll
one of our 2019 winners, provides good using our Reduce, Replace, Revolutionize see on page 10, these FedEx Cares pillars
wages to farmers in rural Africa. sustainability approach in four key areas: fit perfectly into our overall CSR strategy.
aircraft efficiency, vehicle efficiency,
It is important to remember that our CSR sustainable facilities, and sustainable This new FedEx Cares focus will enable
strategy isn’t independent of our business materials and recycling. us to zero in where our company can
plan to innovate and drive profitable growth. add the most unique value. And the role
As we anticipate customer needs on As one illustration of the power of we play — who we are and what we do
the horizon, we do so with a keen eye this strategy, last fiscal year alone, — has never been more important.
on our mission to connect the world we avoided more than 3 million metric
responsibly and resourcefully. tons of CO2e emissions as a result of
our enterprise-wide fuel and energy
People: Multiplying Potential saving initiatives. That’s equivalent Frederick W. Smith
Continued investments in our people are to the carbon sequestered — or offset Chairman and CEO
central to our success. And our first priority — by more than 4 million acres of U.S.
is “Safety Above All.” That goes for forests in one year.
our operations on the roads, in the air,
in our facilities, and in our communities.
We source the most up-to-date,
sophisticated safety technology for our
vehicle fleet. Ninety-eight percent of
FedEx Freight tractors and box trucks
now include roll stability, forward collision
mitigation systems, and lane departure
technology. And FedEx Express, Freight,
and Ground use video event data recorder,
or VEDR, technology to improve safety
for our drivers and others on the road.
6 2020 FedEx Global Citizenship Report
Our CSR Strategy Economy People Environment Data Appendix
What We Achieved in FY19
Multiplying opportunities for our people,
our business, and our shared environment
40% 23m $15.3m
Announced fleet
expansion with
decrease in CO2 emissions
intensity (on a revenue basis)
since FY09
1,000 kWh renewable
energy generated
in tuition assistance
to employees
Chanje electric
delivery vehicles
$12.3b
We gave
in goods and services procured
$62.4m 3.1m
from
7 diverse and small-business in corporate charitable metric tons of CO2e emissions avoided 2020 FedEx Global Citizenship Report
suppliers in the U.S. contributions through fuel- and energy-saving initiatives
Our CSR Strategy Economy People Environment Data Appendix
FedEx Global Network
Anchorage
Cologne
Stansted Liège
Mississauga Paris
Indianapolis Newark
Oakland
Memphis Osaka
Dubai
Miami Guangzhou
Fort Worth
Mexico City
Singapore
>220 >5,000 >650 >15M 679 >180,000
Air Routes
Major Express Hub Locations
COUNTRIES AND OPERATING FACILITIES AIRPORTS SERVED SHIPMENTS SORTED AIRCRAFT MOTORIZED VEHICLES
TERRITORIES SERVED AND PROCESSED EACH
BUSINESS DAY
8 2020 FedEx Global Citizenship Report
Our CSR Strategy Economy People Environment Data Appendix
CSR Approach and Implementation
Our culture, principles, and emphasis on long-term performance have
guided our company since our founding nearly five decades ago.
Similarly, our corporate social responsibility CSR is at the heart of our business and Across our organization, we set
(CSR) programs emphasize long-term central to the connections we make. enterprise-level strategies to deliver Our Mission and Values
performance that creates lasting, positive Key elements of our CSR strategy include our global CSR goals and commitments.
value for our business and society. Our environmental efficiency innovations, Our shared purpose unites and guides Mission
governance, operations, culture, and CSR a sustainable supply chain, a diverse and the implementation of these efforts at the FedEx Corporation will produce
priorities are closely aligned, as reflected inclusive workplace, and the robust giving operating company level. Each operating superior financial returns for its
in the important role played by the and volunteering platform known as FedEx company also reports on a core set of shareowners by providing high value-
FedEx Board of Directors’ Nominating Cares. We have aligned our CSR platform metrics in support of the enterprise added logistics, transportation, and
& Governance Committee, which has with our company’s mission and values, strategy. We prioritize our material related business services through
oversight responsibility for our CSR strategy and embedded it into our systems and our environmental and social issues, as well focused operating companies.
and programs, and the Compensation culture. We conduct regular CSR materiality as the areas where we can use our most Customer requirements will be met in
Committee, which reviews and discusses assessments to make sure we remain valuable assets – global transportation the highest quality manner appropriate
with management our key human capital focused on the right CSR priorities for networks, logistics expertise, and the talent to each market segment served.
management strategies and programs. the benefit of our business, our customers, of our team members – to reduce risks and FedEx will strive to develop mutually
The Nominating & Governance Committee our shareowners, our team members, add the greatest possible value to society. rewarding relationships with its team
receives updates at least annually from our and other key stakeholders. Our most recent Finally, we publicly share not only our members, partners, and suppliers.
Chief Sustainability Officer, and provides materiality assessment, completed in FY19 performance results, but our learnings, Safety will be the first consideration
feedback to inform future activities. and detailed in this report, demonstrated challenges, and successes along the in all operations. Corporate activities
that CSR continues to play a critical role way as part of our ongoing commitment will be conducted to the highest
in our business success. to transparency. ethical and professional standards.
Importantly, in FY19 we mapped our CSR For more information about the policies
focus areas, material issues, and actions to that inform our CSR strategy, see our Values
the United Nations Sustainable Development CSR Policy Statements. Please refer • People
Goals (SDGs). Our CSR strategy aligns with to this report’s Data Appendix for • Service
and supports the SDGs in several key areas. FY19 CSR performance results. • Innovation
Their linkages to our most material issues
• Integrity
are included in the Materiality section of
this report and to our programs and progress • Responsibility
in relevant locations of the Economy, People, • Loyalty
and Environment chapters. • Safety
9 2020 FedEx Global Citizenship Report
Our CSR Strategy Economy People Environment Data Appendix
Our CSR Focus Areas
CSR Focus Areas Economy People Environment
By connecting businesses and We engage and empower our more By using our global assets, expertise
communities through a growing than 475,000 team members, providing in efficiency, and commitment to
portfolio of services and tools, we them with safe, inclusive workplaces innovation, we work to minimize our
enable economic growth and make it and continued career development environmental footprint, find innovative
easier for customers to access new and opportunities that help them thrive. solutions, and improve quality of life.
existing markets, thereby helping to raise We are all united by our commitment Throughout the FedEx organization, our
standards of living and improve quality to the corporate philosophy we call Reduce, Replace, Revolutionize approach
of life. We strive to be a role model People-Service-Profit (PSP). This reflects permeates our sustainability efforts,
by providing economic opportunities the shared principles that govern every with our Environmental Policy guiding
to small businesses and people in the FedEx activity, every day, everywhere the operating companies in managing
communities we serve. we work. environmental performance.
• Create value for all stakeholders • Ensure safety in our vehicles, • Reduce: Minimize or eliminate impacts
• Ensure strong business ethics, air operations, and facilities from activities and operations
preparedness, resiliency, continuity, • Recruit and retain top talent • Replace: Apply the right solutions
and data security • Foster a workplace that is diverse, in the right applications
• Innovate products and services inclusive, and thriving • Revolutionize: Discover and
to optimize our business, help our • Enable continued education, utilize cutting-edge technologies
customers, and lift economies satisfying career pathways, and solutions
• Enable e-commerce and healthy and world-class training
global trade through technology, • Provide industry-leading benefits
advocacy, and service to support team member health
• Empower entrepreneurship, • Support financial well-being and
supplier diversity, and job growth retirement options
• Focus on outstanding customer
experience, satisfaction, and
convenience
UN Sustainable
Development Goals
(SDGs)
FedEx Cares • Global entrepreneurship • Delivering for good • Sustainable logistics
10 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Global CSR Governance
The FedEx Board of Directors plays a key role in our global CSR initiatives.
The FedEx Board of Directors and its Environmental Sustainability promotes consistency of policies across
committees oversee our global CSR operating companies and manages
initiatives. The Board is responsible for
Governance executive development, team member
reviewing and overseeing our culture and The FedEx Enterprise Sustainability Council benefits, and diversity strategy. The FedEx
evaluating management’s efforts to align (FESC) is responsible for setting and Diversity & Inclusion (D&I) Council includes
corporate culture with our stated values and implementing our company-wide members across operating companies who
long-term strategy. Additionally, the Board sustainability strategy. Our Chief coordinate company-wide D&I initiatives.
has delegated to each of its committees Sustainability Officer chairs the FESC,
responsibility for the oversight of specific oversees the company-wide implementation In addition, each FedEx operating company
aspects of our corporate culture and other of our environmental management system sets workplace safety goals and implements
CSR activities that fall within the and reviews performance annually. our Safety Above All philosophy through
committee’s areas of responsibility. policies and programs relevant to its
Additionally, enterprise-wide Sustainability specific operations.
The Nominating & Corporate Governance Impact Teams (SITs) for global vehicles,
Committee reviews and discusses CSR facilities, air operations, EarthSmart (marketing For more information about our programs
and sustainability strategies and programs and communications), and sourcing allow for career development, diversity and
with senior leadership, including our our operating companies to share synergies, inclusion, and safety, see the People
Chief Sustainability Officer. ideas, and innovations. The SITs and operating chapter of this report.
companies’ senior sustainability leaders
• The Compensation Committee reviews
report to our Chief Sustainability Officer.
and discusses with management
the company’s key human capital For more information about our environmental
management strategies and programs, sustainability initiatives, see the Environment
including diversity and inclusion initiatives. chapter of this report.
• The Audit Committee reviews the Environmental Sustainability Governance Structure
implementation and effectiveness People CSR Governance
of the company’s corporate integrity Our global CSR governance also Board of Directors FedEx Enterprise Sustainability
and compliance programs. encompasses a variety of functions and Nominating & Governance Committee Council – FESC
• The Information Technology Oversight departments dedicated to our people.
Committee reviews and discusses FedEx executive officers have individual
with management the company’s objectives that include, but are not limited Chief Sustainability Officer Sustainability
technologies, policies, processes and to, the promotion of our commitment to Chair — FESC Impact Teams
practices for managing and mitigating diversity, inclusion, and succession planning
cybersecurity risks and monitors for management positions. Additionally,
business continuity and disaster recovery Human Resources (HR) departments in • Air Operations
FedEx Express FedEx Ground FedEx Freight FedEx Office
capabilities and contingency plans. each FedEx operating company manage Environmental Environmental Environmental Environmental
• EarthSmart
HR priorities, including team member career • Facilities
& Sustainability & Sustainability & Sustainability & Sustainability
• Sourcing
development, engagement, and health and Leadership Leadership Leadership Leadership
• Vehicles
wellness. Our Corporate HR department
11 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Materiality – Focusing on What Matters Most
Over the past year, the global business environment has continued The outcome of this process was our
updated materiality matrix, which identifies
– those reflecting global priorities and
topics that are critical to our business –
to change. The growth of e-commerce, frequency of extreme the topics that matter most to our business, remained largely consistent with our initial
our stakeholders and, more broadly, to assessment, while also identifying relevant
weather events, heightened focus on climate change, increased society and our planet. Our 2019 process megatrends and their role in our CSR
complexity of global trade, data security concerns, and competitive also confirmed the most material topics priorities and strategy.
labor markets all continue to impact our operating environment.
Given these evolving factors, it is important employees around the world. External
to re-evaluate the potential challenges, stakeholder engagement included phone
opportunities, and topics that are most interviews with representatives from
important to FedEx, to our stakeholders, academia, customers, industry associations, ain
y ch Custo
and to society. media, NGOs, and suppliers, as well as an uppl ers me
rs
S rk
online survey. wo
Our most recent materiality assessment
in 2019 re-evaluated the topics previously A list of relevant topics was created from
Sh
identified as most important from the this input, before being refined and validated
rs
ar
lie
eo
business perspective, stakeholder in a full-day workshop with key internal
pp
wn
perspective, and societal perspective, stakeholders to determine material topics.
Su
ers
and identified new and emerging topics. Workshop stakeholders represented a
These were then analyzed to determine broad range of FedEx functions across
opportunities to leverage existing CSR the company. Materiality was determined
activities and guide our CSR and business according to:
Regulators
members
strategies going forward, while further 1. The topic’s significance, based on
Team
mitigating risks. This 2019 work built scientific consensus, societal consensus
on our first CSR materiality assessment (as represented by the SDGs), and
in 2014 and our external stakeholder stakeholder consensus
Ou
s
review in 2016, and aligned with the rs
er
GRI Reporting Standards guidance and 2. The topic’s potential influence on t a ke h o l d
Non orga
other best practices to identify, review, stakeholder assessment and decisions
and revise topics for assessment.
-go niz
t
en
ve atio
nm
Input to the materiality process included a rn n
er
m s nt
ov
literature review, analysis of global trends, e a l G
and benchmarking of leading sustainability
practices. It also included internal and l
external stakeholder engagement. Internal
Me
dia Loca ties
om m uni
engagement comprised interviews with c
senior management across the business
and an online survey to hundreds of
12 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Materiality – Focusing on What Matters Most (Continued)
Highest-Ranked Material Topics Subsequently, we determined the most
Our highest-rated material topics are relevant SDGs aligned with those topics.
measured and managed across our owned This provides a more holistic picture of
and operated businesses. We mapped our progress and allows us to better
these topics – divided into the categories identify those areas where our approach
of Global Priorities and Commercially Critical is effectively addressing stakeholder and
– to our CSR focus areas and approaches. business needs, as well as those areas
where changes might be warranted.
Global Priority Topics
These are topics over which FedEx has a significant impact and influence on stakeholder decisions.
They are also topics that stakeholders expect us to address proactively.
Topic Area Material Topics Relevant UN SDGs Relevant Report Chapters and Sections
Governance Ethics, integrity, Our CSR Strategy – Corporate Integrity and Compliance
bribery, and corruption Global governance structure and practices, including enterprise-wide ethics and compliance
policies, programs, and training activities
Data/IT security Our CSR Strategy – Data Security and Privacy
and data privacy Information technology security initiatives, policies, and privacy notices, including risk management,
Online FedEx Trust Center with data protection resources, and Global Privacy Office
Supply chain Social impact of Economy – Our Global Supply Chain
FedEx supply chains Supplier diversity, sustainability, and compliance guided by FedEx Supplier Relationship
Management team across all operating companies
Environment GHG emissions associated Environment – Energy and GHG Emission Reduction
with transportation fleet Fuel efficiency and emission reduction targets, aircraft and vehicle fleet modernization,
alternative fuel strategies, and responsible advocacy for regulatory and policy changes
for fuel efficiency and emission reduction standards
Environmental impact Enabling E-Commerce, Expanding What’s Possible
on local communities Economy – Driving Innovation
Innovative last-mile delivery solutions, including use of robots and drones, pilot studies to optimize
urban package pickup and delivery, and other advancements to reduce emissions, traffic
congestion, and noise
Convenient package pickup or dropoff locations at more than 94,000 various stores,
FedEx Office locations, and others around the world by the end of 2020
13 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Materiality – Focusing on What Matters Most (Continued)
Topic Area Material Topics Relevant UN SDGs Relevant Report Chapters and Sections
People Workplace safety People – Safety Above All
and team member Wide range of team member vehicle, aviation, and workplace safety training and awareness
security programs, as well as state-of-the-art safety systems and equipment
Team member People – Diversity and Inclusion
diversity and Diversity & Inclusion Council to drive an inclusive culture, along with education and numerous
inclusion initiatives and team member resources to foster a diverse and inclusive environment in our
operating companies
Workforce recruitment, People – Recruiting and Retaining Top Talent
retention, pay, hours, People – Learning and Development
conditions, and People – Team Member Quality of Life
development Variety of recruiting, training, career development, and educational assistance opportunities,
including internships, scholarships, mentoring, and tuition support, as well as world-class
employee benefits for health and wellness
Economy Economic impact Economy – Multiplying Possibilities Beyond Our Business
and access Economy – Our Global Supply Chain
Our CSR Strategy – FedEx Cares
Diverse programs to support youth, women, veterans, and others in accessing employment;
assistance to small-business owners; and cash, in-kind support, and volunteering to benefit
people and communities
14 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Materiality – Focusing on What Matters Most (Continued)
Commercially Critical Topics
These are topics that are commercially relevant to our business and that represent a high level of influence on key stakeholder assessments and decisions.
Topic Area Material Topics UN SDGs Relevant Report Chapters and Sections
Economy Product and service Enabling E-Commerce, Expanding What’s Possible
innovation Economy – Driving Innovation
Development and testing of Roxo™, the FedEx SameDay Bot, and drone delivery to support
e-commerce growth, while also reducing emissions, traffic congestion, and noise, especially
in busy urban areas; blockchain technology for traceability; packaging innovations to minimize
materials, dimensions, weight, and waste
FedEx financial well-being Economy – Multiplying Possibilities in Our Business
and profitability One of the largest U.S.-based companies, with more than 475,000 team members and 6%
increase in FY19 total revenue over FY18
Customer experience, Economy – Driving Innovation
satisfaction, and service Development and testing of Roxo, the FedEx SameDay Bot, and drone delivery — just two
of our recent innovations with the potential to enhance customer convenience and service
People Road and People – Safety Above All
public safety Fleet enhancements with state-of-the-art safety systems and equipment; driver safety programs
and training; support of community-based road safety programs, such as Safe Kids
Governance Business preparedness, Our CSR Strategy – Business Preparedness, Resiliency, and Disaster Response
resiliency, and disaster Contingency plans for events such as disasters or social unrest, participation in numerous
response emergency management organizations, and disaster relief aid through in-kind shipping
15 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Responsible Engagement
Growing our business responsibly, resourcefully and in a
forward-thinking manner not only drives the long-term success
of our company, but also benefits millions of stakeholders
by creating income and opportunities for customers,
team members, communities, shareowners, and suppliers.
Connecting with Our Stakeholders external platforms and protocols, including
While formal CSR materiality assessments the CDP (formerly Carbon Disclosure
inform and refine our approach, goals, Project), EcoVadis, and Responsible
targets, and metrics on environmental, Business Alliance (RBA). We also report on
social, and governance topics, we also these issues in our own publicly available
seek wide-ranging input from our team documents, such as the FedEx Annual
members and external stakeholders through Report, Proxy Statement, and this report.
ongoing engagement efforts. For instance,
our proactive shareowner engagement Minimizing Impacts
program allows us to meet regularly with on Local Communities
our largest shareowners to discuss our We are leveraging a variety of innovative
business strategy, operations, sustainability, approaches to reduce road congestion
and social responsibility programs, as well and emissions, and are testing emerging
as corporate governance and other topics technologies that use robotics, artificial
of interest to them. This provides us the intelligence, and drone technology to
feedback needed to better understand further minimize the impact of motorized
their priorities, perspectives, and concerns, vehicles we have on the road. Across our
and effectively address issues that matter operating companies, we work to minimize
most to them. impacts and make sure known impacts
do not adversely affect the communities
In addition, we recognize that FedEx where we operate. For instance, FedEx
customers around the world are increasingly Express participates in airport-directed
interested in our CSR performance, and noise monitoring and control programs, and
we meet with them when appropriate to works with industry associations to provide
discuss our CSR programs and progress. accurate information about the benefits
To make sure they have additional and impacts of aviation. As part of new
convenient avenues for receiving the construction at some airports, we perform
information they seek, we use a streamlined a noise analysis on the impact of our
approach to share our environmental, construction as well as the impacts of our
social, and governance performance. This new facilities once they are operational.
includes providing detailed information on
a wide variety of CSR topics to recognized
16 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
CSR Advocacy
To further progress toward our CSR goals, we support responsible
Alliances for
advocacy such as initiatives that advance next-generation Industry Progress
delivery innovations, talent management, fleet efficiency, FedEx works with various government and
and alternative fuel technology. industry organizations to foster innovation
and improve the transportation sector’s
environmental, social, and business
performance including:
For example, we support efforts to FedEx is also participating in the U.S. We have also been working with the state
modernize federal laws and regulations that Department of Transportation Unmanned of California to support their public policy Business and Governance
encourage safety and efficiency advances Aircraft System IPP in conjunction with efforts toward zero-emission vehicles. • American Trucking Associations
in transportation technology, such as the the Memphis Shelby-County Airport We share the state’s desire for commercially • Business Ethics Leadership Alliance
• European Express Association
use of robotics and drone technology to Authority, conducting drone operations available, scalable, zero-emission vehicles,
• Express Association of America
revolutionize package delivery. on airport property to generate data and we want to make sure that vehicle • International Air Transport Association
to help inform future unmanned manufacturers plan to develop vehicles and Airlines for America
In 2019 for the first time in the U.S., a aircraft system policymaking. that can meet our performance needs, • International Civil Aviation Organization
drone completed a scheduled commercial including sufficient power, weight capacity, • International Road Assessment Programme
residential delivery to a home in Virginia. Likewise, FedEx supports responsible and other requirements. • The Business Roundtable
The drone delivery was conducted by Wing policies to advance alternative fuel • Society for Corporate Governance
Aviation LLC, a subsidiary of Alphabet, Inc., technologies for the commercial sector. Also in FY19 and in concert with many • U.S. Chamber of Commerce
• U.S. Federal Aviation Administration
in collaboration with FedEx Express, as part From 2007 through 2019, we have others in the transportation industry, we
of the U.S. Department of Transportation’s successfully advocated for legislation and continued engaging with U.S. federal Innovation
Unmanned Aircraft Systems Integration regulation, such as the U.S. Environmental lawmakers and regulators to allow larger • Blockchain in Transport Alliance
Pilot Program (IPP). The delivery of a FedEx Protection Agency’s Phase 2 fuel efficiency 33‑foot trailers in a twin configuration. (charter member)
• Blockchain Research Institute
Express package on October 18, 2019, and GHG standards, which established Notably, this solution does not require
marked the launch of our first scheduled first-ever GHG standards for all commercial any change to gross vehicle weight, People
commercial residential drone delivery vehicles in the U.S., and incentivizes the could increase freight capacity by 18% • American Industrial Hygiene Association
service and the first scheduled e-commerce production of clean technology vehicles such and reduce truck traffic on highways by • American Society of Safety Engineers
delivery via drone delivery trial in the as hybrid-electric, all-electric, alternative fuel, 1.3 billion miles per year. The resulting • Commercial Vehicle Safety Alliance
• Inner City Capital Connections
U.S. For more about our first-of-its-kind fuel cell, and other advanced technology fuel and emissions savings for our linehaul
• Women’s Business Enterprise
testing of drone delivery, see the vehicles needed by FedEx, as well as other and freight operations, as well as others, National Council
Driving Innovation section in the commercial vehicle fleets. could be significant.
Economy chapter of this report. Environment
To learn more, please view our • The Electrification Coalition
• Keystone Policy Center Energy Board
Policy Perspectives Overview.
• Renewable Energy Buyers Alliance
• Securing America’s Future Energy
• Sustainable Purchasing Leadership Council
• U.S. Department of Energy, National Highway
Traffic Safety Administration and National
Clean Fleets Partnership
• U.S. Environmental Protection Agency,
SmartWay ® Program
17 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Corporate Integrity and Compliance
FedEx strives to maintain the highest standards of business and
personal ethics. Integrity is essential to the FedEx culture, brand,
and reputation, and is a foundational pillar of the company’s success.
FedEx takes this responsibility seriously and is also committed to
complying with all laws in the countries in which we operate.
Corporate Integrity and Code of Conduct
Compliance department Trust and reliability are critically important to
Each FedEx operating company works within our customers. FedEx team members earn
a unique set of regulatory environments and this trust each day by delivering the Purple
maintains compliance with regional and Promise. The FedEx Code of Conduct
sector-specific requirements. Globally, the provides guidance for team members and
FedEx Corporate Integrity and Compliance demonstrates how to act lawfully and
department serves as a central resource to ethically at all times. The Code applies
further embed the FedEx commitment to to every FedEx officer, director, and
integrity in everything we do. Led by our team member across the enterprise.
Chief Compliance Officer, this department
As the foundation of our corporate integrity
provides best practices, tools, and guidance,
and compliance program, the Code sets a scenarios and examples of how to apply the When a matter is reported to a manager or
as well as communications and training
high standard for team member conduct Code in action. Our officers, directors, and HR, those team members will review and
to team members across the enterprise.
worldwide. The Code’s provisions cover, managers have the additional responsibility determine whether it should be escalated
FedEx encourages team members to
among other things, workplace health, of promoting the principles set forth in to the Legal department. The Legal
report any potential legal or ethical violation
safety, and environment; human rights; the Code and fostering a culture in which department has criteria for further escalation
to management, Legal, HR, Security,
money laundering prevention; equal ethical conduct is recognized, valued, and within the Legal department management.
or the 24-hour FedEx Alert Line, which
opportunity and anti-harassment; conflicts demonstrated by all team members. Our
is accessible via telephone and online, Additional policies specify our requirements
of interest; improper payments and bribes; commitment to doing the right thing depends
with translations in over 35 languages. and expectations on a range of integrity
gifts and entertainment; and data security on our leaders’ ability to set the proper tone
and privacy. and address suspected violations promptly, and compliance matters. These are
For more information about our compliance
with care and respect. developed and updated when we identify
record, as well as compliance in the social
The Code was first adopted in June 2003 a need for employee clarification, the
and economic area, see the 2019 Proxy
and continues to be updated periodically. Pursuant to the Code, if any FedEx officer, emergence of new regulations, or other
Statement.
In 2019, it was updated and streamlined to director, manager, or employee knows or external factors. For more information,
make sure it remains engaging, accessible, suspects a violation of the Code, any law, see our policies.
and relevant to our global team members. regulation, or FedEx policy, they must report
The Code helps team members understand the matter immediately to a manager,
how to adhere to the laws, ethical standards, company contact, HR, the FedEx Alert Line,
ideas, and values relevant to FedEx, offering FedEx Legal, or Security.
18 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Corporate Integrity and Compliance (Continued)
Anti-Corruption Policies A Workplace Free of Combating Human Trafficking
and Practices Harassment and Discrimination We share the zero-tolerance policies adopted
We are committed to complying with all At FedEx, a respective and inclusive work by the U.S. and other governments against
anti-corruption laws and prohibit bribes environment for all team members is of slavery or the trafficking of persons for any
of any type throughout our organization. utmost importance. Through the Code, purpose. We prohibit trafficking-related
Our Global Anti-Corruption Policy and policies on equal opportunity and non- activities and expect the same of our
related Anti-Corruption Compliance discrimination, training, and related resources, suppliers and contractors. We have also
Procedures provide detailed guidance to we strive to create an environment free of launched a training program to educate,
team members. Anti-corruption training harassment and discrimination. Our policy equip, empower, and mobilize select team
is required for team members in relevant against retaliation encourages employees members in this effort.
roles. This includes management in to come forward to report concerns in good
See the FedEx Policy Prohibiting Trafficking
international operations, as well as team faith. We take any report of such behavior
in Persons for more information about our
members and suppliers who interact with seriously and treat each incident with
commitment.
government officials on behalf of FedEx, confidentiality and sensitivity.
such as customs and border personnel.
Supporting Human Rights
Our third-party compliance program
Our commitment to protecting human
includes due diligence, contractual
rights is an important part of our Code of
anti-corruption representations and
Conduct. We are committed to protecting
warranties, annual certifications of
and advancing human rights in all of our
compliance, training, contracts, ongoing
operations around the world. We prohibit
watch list monitoring, and other practices
the use of child, compulsory, or forced labor,
to mitigate risks. The Code includes a clear
and have zero tolerance for and prohibit
prohibition of improper payments and
slavery and human trafficking. We pay fair
bribes, descriptions of what would be
wages and comply with wage laws in all
considered improper, questions and
the countries where we operate. And we
answers, and reference to the Global
require our third parties and suppliers
Anti-Corruption Policy for more detailed
to uphold these important principles.
information.
We maintain a robust program to ensure
that our third-party suppliers and contractors
adhere to requirements and expectations for
ethical and compliant behavior at all times.
This begins with background due diligence
and specific contract language, and in some
circumstances extends to internal audits,
business reviews, annual certifications of
compliance, and training in anti-corruption
and other topics.
19 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Corporate Integrity and Compliance (Continued)
Ethics, Integrity, and Compliance We also encourage all of our operating The FedEx Trust Center website highlights
companies to implement their own our Global Privacy Policy, along with
Training and Communications communications plans for the Code, drawing information about how FedEx protects
Regular training is a key component of on guidance and best practices provided customer privacy and resources to help
our corporate integrity and compliance by the Corporate Integrity and Compliance customers identify, report, and mitigate risks.
program. To ensure our compliance training team and customized to local operating Notably, FedEx does not sell its customers’
– including courses in anti-corruption, environments and languages. This includes personal data to third parties. For more
antitrust, conflicts of interest, trade controls, making sure that managers frequently talk information, please see our 2019 Form 10-K.
insider trading, data privacy, and other about the Code with employees.
topics covered in the updated Code –
connects deeply with our employees, With respect to acquisitions, FedEx takes
we collaborated with a new vendor to a risk-based approach in determining the
update our online compliance training type of training new employees will need.
in FY19. The updated online training is We then develop targeted training materials
engaging and provides numerous ways and communications on ethics, compliance,
for team members to connect with the and related policies designed to make sure
importance of the messages. the FedEx culture of compliance is ingrained
in that new company right away. Staff from
Rollout of the new Code was accompanied our Corporate Integrity and Compliance
by an array of communications and training. department and/or regional Legal team
For employees who do not have regular are available to provide support and
access to computers, such as couriers training to the newly acquired companies.
and airport ramp personnel, managers
have been given resources and talking Data Security and Privacy
points about the Code to discuss in pre-
Protecting the privacy of our customers,
shift meetings. More detailed in-person
vendors, and team members is critical to
training has also been developed for
maintaining their trust. We take precautions
certain positions, depending on the role
to safeguard all personal data and ensure
and associated risks they may face as part
a secure environment, including customer
of their job. For existing team members,
transactions. In FY17 and FY18, we took
the pace of training on the Code and other
the necessary steps to update our privacy
compliance topics has varying recurrence
practices and policies in response to the
depending on their job duties and the risks
European Union (EU) General Data Protection
they may face. Every new employee also
Regulation. This included creating a Global
has exposure to the Code, either through
Privacy Office that addresses not only
online training or manager discussions.
EU legislation, but upcoming regulations in
other regions as well, including the California
Consumer Privacy Act in 2020. FedEx also
uses Binding Corporate Rules, which were
approved in FY19, to enable the flow of
European data across our organization.
20 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix Business Preparedness, Resiliency, and Disaster Response As a leading global logistics company, we encounter challenging situations, ranging from natural disasters to social unrest, in the course of doing business. Preparing for these events is critical to sustaining our global operations and minimizing impact on customers. We proactively establish contingency To further support our internal processes, plans that focus on restoring service to we participate in State Emergency customers while ensuring team member Operations Centers programs, as well as safety. We have over 40 years of experience the FEMA-Northern Command Public- in proactively addressing situations, such Private-Partnership program, which brings as severe weather events, that can occur private-sector companies like FedEx at any given time anywhere in the world. together with national, state, and local We are adept at implementing contingency emergency management organizations to plans at a moment’s notice to respond work collaboratively before, during, and after quickly, efficiently, and on a global scale. disasters. Our active participation in these This positions us to safely restore operations initiatives helps us gain the earliest possible promptly following natural disasters, serve safe re-entry to affected areas. our customers as quickly as possible, and ensure security for their shipments. Our operating companies have planning teams that apply sophisticated analytical models to assess scenarios that could potentially affect our operations and develop robust strategies to ensure network resilience. These tools incorporate a variety of factors, including but not limited to population, congestion, and demand changes. We also have an in-house, 15-staff meteorology division that utilizes state-of-the-art weather monitoring tools to manage risks associated with global weather patterns. 21 2020 FedEx Global Citizenship Report
Our CSR Strategy Economy People Environment Data Appendix
CSR Goals and Progress
In FY19, we made continued progress toward Goal Progress
our social and environmental goals, meeting our
community investment goal ahead of schedule.
Investment in communities Aircraft emissions intensity Vehicle fuel efficiency
Invest $200 million in 200 communities Reduce aircraft emissions intensity Increase FedEx Express vehicle fuel efficiency
around the world by 2020 30% from a 2005 baseline by 2020 50% from a 2005 baseline by 2025
$219m 30% 50%
$200m
24% 40.9%
Investment goal met in FY19: $219 million since 2016.
Community goal met in FY18: 378 communities
benefited since 2016. 24% reduction from a 2005 baseline.
NOTE: FedEx Cares goal was set in 2016 and met in 2019, NOTE: We have not yet achieved our 30% reduction Improved fuel efficiency by 1.3% during FY19,
ahead of schedule. Our new goal is FedEx Cares 50 by 50 goal due to retained aircraft that had been scheduled
– we will directly impact 50 million people by our 50th for retirement. We have announced we will be retiring contributing to a 40.9% improvement from
anniversary in 2023. aircraft in FY20. a 2005 baseline.
22 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
CSR Goals and Progress (Continued)
LEED-certified facilities Alternative fuels Renewable energy
Seek LEED (Leadership in Energy and Obtain 30% of jet fuel from Expand on-site energy generation
Environmental Design) certification on all alternative fuels by 2030 and continue to procure renewable
new U.S. FedEx Express buildings energy for facilities
FedEx Express (U.S.) Low-carbon, renewable jet fuel
3
New LEED-certified
facilities in FY19
22
LEED-certified FedEx
Express facilities at the
Red Rock
Biofuels
Red Rock Biofuels, which
will supply low-carbon,
1 ST
The first delivery of
alternative jet fuels
2 25
New solar
installations in FY19
Total on-site solar
installations at end
end of FY19, totaling renewable jet fuel to is anticipated in the of FY19
275,850 square meters FedEx Express, began second half of 2020.
constructing a biodiesel
refinery in 2019.
The refinery anticipates
shipping its first delivery of
product by the end of 2020.
FedEx Express (Int’l.): 3 LEED-certified facilities
FedEx Ground (U.S.): 6 LEED-certified facilities More than 23 million kWh generated in FY19
FedEx Office (U.S.): 1 LEED-certified facility 13,447 metric tons of CO2e emissions
FedEx Freight (U.S): 1 LEED-certified facility avoided in FY19
23 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
FedEx Cares: Community Giving
We believe that investing in communities has the potential
to multiply opportunities around the world. FedEx Cares,
our global community engagement program, is one more way
we live out our purpose of connecting people and possibilities.
We deliver the connections that help In 2019, we surpassed the citizenship goal through a combination of charitable giving,
create possibilities in communities globally we set in 2016 – invest $200 million in in-kind contributions, and team member
by investing in strategies and programs 200 communities by 2020 – and invested volunteerism focused on direct and
that align with our values. This includes a total of $219 million that benefited 378 positive impacts to individuals. Already,
monetary donations, in-kind shipping communities. Since 2016, we have been the program is leveraging FedEx business
services, and team member volunteering honored and humbled to support individuals, and logistics expertise and combining it
to benefit communities around the world. communities, and entrepreneurs as they with team members’ passion to create
FedEx Citizenship evolved its strategy to work to create a better future. For example, opportunities and build more vibrant
meet the changing needs of society and from 2016 to 2019, the contributions communities worldwide.
our business. FedEx believes we can make supported include:
even greater impact by strengthening our For more information, visit the
• D
elivery of 3,108 relief shipments, with FedEx Cares website.
commitment to three focus areas. humanitarian aid valued at $105.8 million,
to 888 health clinics and hospitals in
FedEx Cares Focus Areas 41 countries through Direct Relief.
Global Entrepreneurship
• Access to loans for 10,000 small-business
Providing women and minority
owners helping their businesses reach
entrepreneurs everywhere with
new heights.
the tools they need to succeed.
• Training and support for 207 women
Delivering for Good entrepreneurs in Latin America and the
Lending our global network and our Caribbean, the Middle East, North Africa,
unparalleled logistics expertise to and sub-Saharan Africa through the
organizations with mission-critical needs, ongoing Vital Voices program.
especially in times of disaster, and to help
• Sustainable transportation programs
communities heal, learn, and thrive.
that benefited 7.3 million+ people globally.
Sustainable Logistics
Sharing our global logistics expertise In FY20, we launched an ambitious new
to improve urban mobility and accelerate initiative to build on our good work and
progress toward more sustainable celebrate our 50th anniversary in 2023.
fleets in order to restore and protect FedEx Cares 50 by 50 aims to directly
the natural environment. impact 50 million people by our 50th year
of operations in 2023. FedEx Cares 50 by
50 enables social change around the world
24 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Community Giving FY19 Community Giving
$62.41m $53.78m $7.70m
Goal:
Previous goal: Invest $200 million in 200
communities around the world by 2020
(FedEx Cares goal was set in 2016).
New goal: Directly impact 50 million
Total corporate charitable Cash grants Charitable shipping
people by our 50th anniversary in 2023. contributions
Progress:
Met and exceeded financial contribution goal,
with $219 million invested in communities.
Met and exceeded goal for number of
communities benefited, with 378 in total.
$.93m $8.9m 24,684
Corporate marketing and Team member United Team member volunteers,
We are committed to actively supporting the operating company in-kind giving Way cash contributions nearly double FY18
communities we serve through the strategic
investment of our people, resources, and
105,845 >500
network. We provide financial contributions,
in-kind charitable shipping services, and
team member volunteering to help non-profit
organizations achieve their goals and make a
measurable impact. We also devote additional Volunteer hours Communities participating
resources to FedEx Cares focus areas.
For instance, in support of the Sustainable
Logistics focus area, FedEx has collaborated
with World Resources Institute (WRI) for the
last decade to develop urban mobility solutions
in some of the world’s fastest-growing cities
through a steadfast focus on improved public
transit services. These solutions connect people
to jobs, schools, and opportunities by improving
the quality, safety, and efficiency of public
transport. Through support on topics such as
quality-of-service benchmarking and perception,
fleet electrification, and emissions targets,
driver-safety training, route optimization tools,
asset management, and fleet mobilization and
resiliency planning, this successful collaboration
with WRI has helped over 9 million people in
36 cities across Brazil, China, India, and Mexico.
These projects have scaled to other countries
in Latin America, Europe, and Africa.
25 2020 FedEx Global Citizenship ReportOur CSR Strategy Economy People Environment Data Appendix
Awards and Recognition
World’s Most Admired Companies 2019 World’s Best Employers 2019 (15th)
(10th) FORBES
FORTUNE
The Civic 50 Listing of America’s Most
100 Best Places to Work 2019 (15th) Community-Minded Companies 2019
FORTUNE POINTS OF LIGHT
Anti-Corruption and CSR Award Spotlight Impact Award 2019
COALITION FOR INTEGRITY ERG & COUNCIL HONORS AWARD
Best Workplaces for Diversity 2018 America’s Most Responsible
(15th) Companies 2020 (84th)
FORTUNE AND GREAT PLACE TO WORK INSTITUTE NEWSWEEK
Citizens Awards: Best Disaster America’s Most Responsible Companies
Response and Community 2020: Travel, Transport, & Logistics
Resilience Program 2019 Sector (1st)
U.S. CHAMBER OF COMMERCE NEWSWEEK
America’s Top Corporations for A- Leadership Level Score,
Women’s Business Enterprises 2018 Climate Change Disclosure 2019
CDP
WOMEN’S BUSINESS ENTERPRISE
NATIONAL COUNCIL
Top Corporate
50 Best Companies for Diversity 2018 Solar Users 2018 (14th)
SOLAR ENERGY INDUSTRIES ASSOCIATION
BLACK ENTERPRISE
Best of the Best Corporation
Innovation by Design Award
for Inclusion 2019
Honoree for Roxo™, the FedEx NATIONAL BUSINESS INCLUSION CONSORTIUM
SameDay Bot 2019
FAST COMPANY
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