FedEx pledges to be carbon neutral by 2040

Global logistics giant FedEx on Wednesday announced a goal to be carbon neutral by 2040. The plan includes a $2 billion investment across electric vehicles, clean energy for operations and a new academic center with Yale focused on capturing carbon.

FedEx — which uses over 180,000 vehicles to deliver packages across continents and operates the world’s largest cargo airline — has been implementing sustainability practices for years, but the announcement represents a major acceleration of the company’s commitments. FedEx generates close to $70 billion in annual revenue and has seen its business grow in recent years partly thanks to the boom in global e-commerce.

The fossil fuels used to power the company’s vehicle and airline fleets contribute to 92 percent of FedEx’s carbon footprint, according to its most recent sustainability report. That fuel also accounts for 6 percent of its annual operating budget.