Chairman’s
Letter

CSR Policy Statements

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What Connects Us Makes Us Stronger

Few companies have the privilege of participating in the world at large like we do at FedEx. From holiday e-commerce packages to global supply chain solutions to disaster relief, we’re fortunate to be part of millions of lives and thousands of communities.

Without question, we realize the interests of our communities, our workplaces, and the planet are intertwined. Our future depends on recognizing and balancing those needs in everything we do across our business.

From our vantage point, we see firsthand how the world works. Without question, we realize the interests of our communities, our workplaces, and the planet are intertwined. Our future depends on recognizing and balancing those needs in everything we do across our business. This is equally important to our customers, investors, and team members. In fact, $6.7 billion in FY16 revenue came from customers who wanted to know more about the emissions generated from shipping their goods.

Commerce adds jobs to communities

Our business-to–business, business–to–consumer, and e–commerce solutions benefit more customers than ever, helping them to prosper and their communities to flourish. Today, just about anyone with a mobile phone can reach new markets almost instantly. At FedEx, our services physically connect customers to the digital economy, creating more jobs and improving lives.

Here’s an example from the brother–and–sister team that founded ArtLifting three years ago. Through e–commerce propelled by FedEx, the small Boston business sells paintings and prints from more than 100 homeless and disabled artists to buyers throughout the U.S. and around the world. These artists receive more than half the sales from their works, not to mention a big boost in pride and confidence. It’s a brilliant business strategy that also betters the lives of underserved people.

Stories like this demonstrate the power of trade to create new markets and greater opportunities. In fact, 7 in 10 U.S. small businesses see global trade as improving the U.S. economy, according to the FedEx Trade Index, a 2016 survey conducted by Morning Consult. Trade is our business, and we’re proud that FedEx jobs are trade jobs. Of course, we’re not unique — about 40 million jobs in the U.S. are directly related to trade.

Sustainability reduces our environmental footprint

As trade connects the world and enhances prosperity, we understand that how we connect the world matters. By incorporating sustainability efforts throughout our global network, we’re reducing the environmental footprint of commerce. Since 2008, we’ve saved more than 158 million gallons of vehicle fuel by replacing vehicles with more efficient models and making greater use of electric vehicles, fuel cells, natural gas, hybrids and clean truck technologies.

In FY15, five years ahead of target, we met our goal of increasing FedEx Express vehicle fuel efficiency by 30 percent from a 2005 baseline. We’ve now set a new goal. By 2025, we want to increase vehicle fuel efficiency by 50 percent from a 2005 baseline, or 17 percent from a 2015 baseline. In FY16, we saved more than 153 million gallons of jet fuel by continuing to modernize our aviation fleet and improve operations. As a result, we avoided the equivalent of almost 1.5 million metric tons of carbon dioxide emissions.

Safety makes our communities better places to live

At the same time we set and meet our sustainability goals, we are focused on safety — our No. 1 priority. Ensuring the safety of the people in our global network — along with our customers and communities — is a complex job. But it’s one we take extremely seriously. Like sustainability, we integrate safety into everything we do, and we share our safety expertise with communities around the world.

In cities from Mexico City to Mumbai, we’re working with EMBARQ, part of the World Resources Institute’s Ross Center for Sustainable Cities, to develop safe and sustainable transport and planning solutions. EMBARQ adapted the FedEx Safety First manual to train 1,150 public transportation drivers in three Mexico cities. As a result of the training, more than 1.2 million passengers a day benefit from safer bus systems.

The FedEx team shares expertise to change lives

Our community investment strategy is simple: We do what we do best for those in need. That includes sharing our knowledge and resources in collaboration with trusted non–governmental and non–profit organizations to tackle some of society’s biggest problems in communities where we live and work. In FY16, the first year of our commitment to invest $200 million in more than 200 global communities by 2020, we invested more than $46 million in charitable contributions, benefiting 97 communities around the world. Team members came out in force, contributing more than $9 million during our United Way campaign, and volunteering more than 93,000 hours in more than 500 cities worldwide.

Today, just about anyone with a mobile phone can reach new markets almost instantly. At FedEx, our services physically connect customers to the digital economy, creating more jobs and improving lives.

I thank the FedEx team, more than 400,000 people strong, for working every day to make the world a better place. From couriers to customer service reps, from package handlers to pilots, each team member plays a role in delivering on our commitments — to our customers, our communities, and our planet. We firmly believe that what connects us makes us stronger.

Frederic W. Smith

Frederick W. Smith
Chairman and CEO

CSR Policy Statements

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Key Metrics

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