FedEx (NYSE: FDX) is set to spend about USD2 Billion in “initial investments” toward sustainable energy initiatives after pledging to become carbon neutral by 2040. The money will be implemented in electric vehicles and carbon capture research to start.
As the biggest cargo airline in the world, it is responsible for a large carbon footprint, a potential obstacle for its new pledge.
The multinational delivery company currently manages over 200,000 vehicles as well as 680 cargo airplanes. It hopes to replace its parcel pickup and delivery vehicles with an electric fleet by 2040 and will keep investing in alternative fuels to decrease carbon emissions.
“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.”
FedEx will also be donating USD100 Million of the investment to Yale University’s research in uncovering new ways to achieve carbon sequestration, a process of capturing and storing CO2 from the atmosphere. According to the company, it will initially finance the study to aid “offset greenhouse gas emissions equivalent to current airline emissions.”
“While we’ve made great strides in reducing our environmental impact, we have to do more,” FedEx Chief Sustainability Officer Mitch Jackson said in a statement.
FedEx, along with several other large companies are determined to achieve carbon neutrality within the next couple of decades.