Optimizing Toward a Smaller Footprint at FedEx
Originally published in FedEx's 2023 ESG Report
We have ambitious sustainability goals, and electrifying a substantial portion of our global fleet of over 215,000 motorized vehicles is a crucial component of our path to carbon neutral operations. Our fleet is comprised of PUD vehicles, long-haul trucks, forklifts, airport ground service equipment, and other non-road vehicles. Due to performance and operational requirements, the electrification of each vehicle class presents different opportunities and challenges. Across our entire FedEx parcel PUD fleet, we are committed to replacing existing vehicles with zero-tailpipe emission vehicles by 2040, using a phased approach.
Our approach to fleet replacement and electrification is focused on identifying the right vehicle solution in the right application. We are actively engaging local original equipment manufacturers around the world to create the most efficient and sustainable vehicle fleet for our operations.
In 2022, FedEx Express announced an agreement reserving production of 2,000 EVs from BrightDrop, a technology startup from General Motors, over the next several years. We expect to continue expanding our EV fleet by procuring up to 20,000 more BrightDrop EVs, subject to future negotiations. Following the first deliveries in December 2021, we had received 150 BrightDrop Zevo 600 vans by June 2022. The Zevo 600s are all-electric, zero-tailpipe emission vans designed for last-mile deliveries with a range of up to 250 miles on a full charge. Through our relationship with BrightDrop, we introduced BrightDrop Trace electric carts (eCarts) into FedEx Express operations in New York City. In an initial pilot, couriers handled 25% more packages per day when using the eCarts on routes in a high-density, vertical urban environment. The New York City Department of Transportation recently approved a long-term use exception of the eCarts, which are now in use in both Manhattan and Brooklyn.
In August 2022, FedEx Office began piloting ten Ford E-Transit vans across nine markets within its PUD network. The pilot program aims to help FedEx Office understand the performance of EVs in a variety of operational, road, and weather conditions. FedEx Express Europe placed an order for 98 Mercedes-Benz eSprinter vans, which are anticipated to arrive at six of our major facilities in 2023.
FedEx Ground is developing a comprehensive strategy to facilitate the EV transition for independent service providers and is implementing the necessary infrastructure at our facilities to provide charging solutions. As of FY22, FedEx Ground operated 56 EV charging stations, which independent service providers can access to support their own EV transition, and has deployed 115 electric yard tractors and 14 electric PUD vans.
FedEx Freight is evaluating EV opportunities to define scalable solutions for its entire fleet. To date, FedEx Freight has placed orders for 18 EV tractors, 8 EV box trucks, and 10 EV yard tractors, and will install 36 fast chargers at four hubs. FedEx Freight operates 1,400 electric-powered forklifts, approximately 15% of its forklift fleet.
We are actively building the innovative charging infrastructure required to support our growing fleet of EVs across our vast network of facilities. In California, we have already installed more than 500 charging stations. FedEx Express Europe announced in October 2022 the development of 114 EV charging points at PUD stations in London, Madrid, Amsterdam, Paris, and Strasbourg. Installing the large-scale charging infrastructure required by our operations involves our close collaboration with local utility companies and regulators to help strategically plan for and implement the additional grid capacity needed.
While growing EV charging will cause our electricity usage to significantly increase, we are investing in on-site renewable energy generation and procurement, and exploring other innovative approaches, such as battery storage, to overcome this challenge and continue reducing our emissions. See the Facilities section for more information on these initiatives.
Through our Zero Emission City Deliveries Solutions program in Europe, we increased delivery options within urban centers, including EVs and cargo bicycles. In FY22, we more than doubled the number of electric cargo bikes in Europe, which are now deployed in 17 cities. Our growing fleet of electric bikes reduces impacts from our operations, including noise levels and combustion engine exhaust compared to traditional last-mile vehicles. Across some cities, like London and Toronto, our electric bike fleet is replacing a substantial percentage of our van routes. This strategic rollout highlights our commitment to use the right solutions in the right applications. We continue to electrify forklifts, airport ground service equipment, and other non-road vehicles across our operating companies to reduce fuel and maintenance costs. We anticipate improving our efficiency further as new technology develops.
Key links
BrightDrop EV Delivery
FedEx Office E-Transit Van Pilot
FedEx Express European Charging Infrastructure
