Article 13 CSR case study series February 2011

FEDEX: EARTHSMART
THE COMPANY FedEx is a worldwide network of companies, providing a broad range of logistical services. United under FedEx Corporation, the company has a team of more than 285,000 team members, and serves more than 220 countries and territories worldwide. FedEx has been implementing a There are three parts to EarthSmart: a) EarthSmart Solutions; b) EarthSmart Outreach; and c) EarthSmart @ Work. The initiatives are designed to benefit the planet, customers and the business.

TAKING ACTION The EarthSmart initiatives are a core element in the companys environmental sustainability EarthSmart strategy. provides a Specifically, platform to

communicate the companys actions and create a culture, providing an umbrella to bring together/align global programmes and initiatives.

sustainability programme for the last decade and has, from its inception, focused on innovation. THE DRIVERS FedEx holds the central belief that the success of the business and the wellbeing of the environment are inextricably linked. The company recognises the services it provides as having a wider impact, not only on the individuals who work for the company but also the environment and communities in which it works. FedEx places an emphasis on the importance of gaining and and maintaining the trust of team members, customers, communities. The company has noted that its shareholders

EarthSmart Solutions:
EarthSmart sustainability Solutions address of the the performance

companys services and physical assets, i.e. aeroplanes, trucks and facilities. It requires the services or assets to meet stringent, beyond to the quantifiable standards that It to for go also the environmental sustainability standards. but also

industry business

requires them to deliver benefits not only environment and stakeholders. In order to achieve this, FedEx places a strong emphasis on the importance of innovation. Examples include FedEx being the first US-based company to

stakeholders are increasingly interested in understanding what the company is actually doing. As a result, it published its first global citizenship report in November 2008.

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Article 13 CSR case study series February 2011

purchase a Boeing 777F in 2009 (with the intention of owning a fleet of 40 by 2019); this has provided whilst increased reducing freight fuel capacity

as investment in sustainable transport solutions for developing countries. FedEx has worked in collaboration with EMBARQ develop throughout development networks, the of The WRI transport By efficient Centre for Sustainable Transport - in order to network supporting public to bus a Mexico. FedEx

consumption by 18%. The replacement of narrow-bodied planes has resulted in fuel consumption being reduced by 47% overall. Further considerations such as flying direct between Asia and the U.S. also reduce the demand on fuel. FedEx also has the largest fleet of hybrid electric parcel delivery vehicles in the industry, achieved by investing in new vehicles and by converting traditional trucks. These measures extend the life of vehicles, whilst simultaneously making them more environmentally friendly. At present, FedEx is testing fuel cell and hydraulic hybrid vehicles and investing in zero emissions all-electric vehicles and hybrid-electrics vehicles. These initiatives contribute to the companys 20 by 20 goal of reducing plane emissions by 20% and increasing vehicle efficiency by 20% by the year 2020. In relation to its facilities, FedEx has been installing solar rooftop installations in an increasing number of its buildings. One such installation currently stands as the largest in the US. FedEx has a total of five solar arrays running as of the end of 2010

contributes

reduction in the number of cars on the road, and therefore also lower carbon emissions. FedEx has also been working to increase child pedestrian safety, find ways to protect valuable ecosystems and provide disaster relief. The company provides this assistance using its core business strengths, such as logistical capacity to ensure that relief supplies reach the locations where they are most needed. Coinciding with strategy to their people first enable the

philosophy, FedEx has been developing a support and volunteering efforts of their employees. This has included the creation of a platform to engage individuals in This volunteering opportunities.

volunteer management system has been integrated with the United Way giving campaign and FedEx Cares week an annual event in which more than 16,000 hours of employee time was donated in 2010.

EarthSmart Outreach:
EarthSmart Outreach aligns business priorities with community needs, such

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Article 13 CSR case study series February 2011

EarthSmart @ Work:
EarthSmart @ Work aims to engage FedEx goals 1) employees and efforts. actively The in the is companys environmental sustainability initiative divided into three areas:

BUSINESS BENEFITS The EarthSmart strategy is designed to provide not only environmental and social benefits, but also feeds back to FedExs business objectives. For example, efficiency measures have allowed the company to cut emissions by reducing fuel usage, which in turn has led to cutting costs, providing direct financial benefits. Additionally, given the growing pressure for global emissions reductions and the translation of this into many national policies, the initiatives undertaken by FedEx to integrate cutting edge innovations into its operations is likely to enable them to remain sector leaders. FedExs approach to environmental aid and

Inform the sharing of information

and ideas (i.e. internal circulation of best practice and information on relevant topics), and enabling employees to contribute their own thoughts (e.g. using social media).

2) Involve enables employees to share ideas and learn from one another; in addition, the company develops volunteering opportunities for staff to use their skills to assist in the wider community; and 3) Innovate integrates the ideas of FedEx employees into a formal submission process to help inform the review of strategic sustainability goals and strategies. CHALLENGES One of the key challenges for FedEx was to be specific about the usage of EarthSmart, to ensure all the initiatives were thoroughly vetted and to ensure that internal and external stakeholders understood the platform. Similarly there was the challenge and desire to ensure that all the programmes under the EarthSmart benefits. platform demonstrated customer, business and environment

protection,

international

philanthropic investment all work to enhance the companys reputation and further assist in ensuring the companys future operation and expansion. Importantly, the activities also

encourage the growth of stakeholder trust in the company something of growing importance in an increasingly competitive market where corporate activities are coming under growing public scrutiny. In addition, suppliers are now approaching to FedEx, in with the requests participate

programmes.

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Article 13 CSR case study series February 2011

The incorporation of employee opinion into its strategy allows its approach to not only benefit from diverse ideas and therefore become more innovative, but also to make the company an employer of preference. The company has received a number of international awards and rankings for its work including the 2009 W3 Awards Gold Award in the business category for their Citizenship Blog;

WHY IS IT CSR? The EarthSmart programme provides both business and social benefits namely it allows the company to realise efficiency sustained savings support and and encourage growth of

business activities.

In demonstrating

leadership on matters of sustainability in the industry, FedEx hopes to stimulate the spread of good corporate citizenship, making the industry as a whole more sustainable. Similarly, the programme has led to increased engagement and enthusiasm within local teams all leading to a stronger corporate culture. Contact us: Any comments on this

Newsweek
100 Best

Greenest Companies Ranking Top 100the FORTUNE dHonneur Magazines award for Companies to Work For, the Ruben outstanding customer focus, considered one of the foremost corporate awards in Europe, and the 2009 Mohammed Bin Al Rashid Al Maktoum Business Award for This Corporate Social Responsibility.

profile? Would you like your organisation to be profiled?

For further information, please contact Article 13 on 020 8840 4450 or visit www.article13.com For on more information on FedExs at

recognition enhances both community relations and support, and more broadly the reputation of the company.

EarthSmart programme, please contact Brandon Tidwell brandon.tidwell@fedex.com, or Maria Tomprou at mtomprou@fedex.com.

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