Optimizing Energy Management at FedEx Facilities
Originally published in FedEx's 2023 ESG Report
Facilities
We aim to continuously improve the sustainability, reduce the environmental impact, and increase the efficiency of our more than 5,000 air and ground hubs, local stations, freight service centers, and retail locations. We do this by sustained investment in energy management, renewable energy and storage, and waste minimization, among other initiatives.
While our energy demand is increasing to support EV deployment and charging infrastructure, we have increased our focus on facility energy management and off-site renewable energy procurement strategies to overcome this challenge. Our Energy SIT is developing a longterm roadmap to support our EV transition plan. This roadmap will support our goal of achieving carbon neutral operations by 2040 through its approach to Scope 2 emission reductions. We are taking a proactive approach to our energy requirements by looking across our operating companies, forecasting their energy needs, developing a renewable energy procurement strategy using various contracting models, and considering factors such as utility operating structures and local and federal regulations.
Energy management systems are essential to increasing efficiency at our facilities through monitoring, regulating, and optimizing our lighting, heating, ventilation, and air-conditioning equipment. We incorporate innovative energy efficiency specifications and explore on-site renewable energy generation options when designing new facilities. FedEx Office utilizes energy management systems and LED lighting at over 1,500 stores, decreasing energy usage by 40% since FY17. Across operating companies, our energy management systems saved over 225 million kilowatt hours of electricity in FY22.
In alignment with our carbon neutral operations goal, we invest in both on-site renewable energy generation and external procurement of renewable energy. Globally in FY22, we generated on- and off-site solar energy at 29 locations across our operating companies, and approximately 30% of FedEx Express Europe energy use was from renewable sources. FedEx Ground has 18 on-site and off-site solar installations. FedEx Freight has operated on-site solar installations in California since 2008. FedEx Office plans to have its first solar-powered store in 2023. FedEx Office typically has short-term leases for storefronts, making it difficult to generate on-site clean power or procure renewable energy through long-term power purchase agreements. This new structure will support property owners in installing a solar project and offering the benefits to commercial tenants, serving as a model for other stores.
FedEx Express operates a one-megawatt community solar system in Washington, D.C., and in May 2022 announced a special charitable arrangement to further spread the benefits of this project. We are allocating a portion of the electricity bill credits generated by the solar installation to the local non-profit SOME (So Others Might Eat), which provides services to individuals experiencing poverty and homelessness in the district.
The long-term health of our business is directly connected to the health of the planet and local communities. Each operating company has robust programs and policies to help mitigate adverse impacts on the local environment from facility operations and ensure compliance with applicable laws and regulations. To further drive our environmental sustainability progress, our CSO manages our enterprise-wide Environmental Management System and reviews performance annually. We consistently strive to enhance our environmental performance across our facilities. As of FY22, FedEx Express achieved the ISO 14001 environmental management system standard at 862 sites across 33 countries. Additionally, in February 2022, FedEx Express received ISO 14001 certification for all on-airport locations in the U.S.
We adopt the Leadership in Energy and Environmental Design (LEED) standard in the U.S. and the Building Research Establishment Environmental Assessment Method (BREEAM) in Europe to guide efficient facility design when appropriate. FedEx Express and FedEx Freight seek LEED certification on all new construction, and in total, FedEx has 44 LEEDcertified facilities and 13 BREEAM-certified facilities across our operating companies.
To reduce our operational waste footprint, we implement standardized waste and recycling management processes in the U.S. We prioritize reducing our waste generation and then recycling the waste we do produce. At FedEx Freight, we minimize waste generation and reduce costs by reusing equipment and sharing excess supplies among locations and departments through the Supply Exchange Program. In addition, FedEx Freight implemented a waste recycling program, through which we have recycled over 1,700 tons of metal, over 2,700 tons of paper, and over 500 tons of woodrelated waste since 2011. FedEx Express recycled over 41.7 million pounds of cardboard, wood pallet, paper, and metal waste in FY22. FedEx Ground facilities diverted nearly 80% of their waste to recycling. In FY22 FedEx Office continued its toner recycling program, preventing 38,000 cartridges from ending up in landfills. Overall, we sent 61% of reported solid waste from our global facilities to recyclers in FY22.
CO2 e emissions avoided from facility energy efficiency initiatives
(metric tons)
FY19 179,638
FY20 193,492
FY21 147,231
FY22 160,392
