Industry News: FedEx Forward is Green by 2040

[G. David Felt]

FedEx has committed to being Carbon-Neutral by 2040 by going Green Globally with an initial investment of $2 Billion dollars for auto electrification, sustainable energy and carbon sequestration. 

FedEx has started their corporate march to a greener cleaner planet by pledging $100 million dollars to Yale University in establishing the Yale Center for Natural Carbon Capture. In the drive to offset current airline emissions which is a big part of FedEx business, they are heling to support the research into various methods of carbon sequestration at scale. This is where they scrub the CO2 emissions from our air and lock it away much the way trees and plants take it in and capture it inside the tree or plant which does not get released till you burn the wood or plant and release all that CO2.

FedEx has put forth an ambitious carbon neutral goal with the following key points in this Carbon-Neutral plan.

Quote

• Vehicle Electrification. By 2040, the entire FedEx parcel pickup and delivery (PUD) fleet will be zero–emission electric vehicles. This will be accomplished through phased programs to replace existing vehicles. For example, by 2025, 50% of FedEx Express global PUD vehicle purchases will be electric, rising to 100% of all purchases by 2030.  
• Sustainable Customer Solutions. FedEx will work with customers to offer end-to-end sustainability for their supply chains through carbon–neutral shipping offerings and sustainable packaging solutions.  
• Sustainable Fuels. FedEx will continue to invest in alternative fuels to reduce aircraft and vehicle emissions.  
• Fuel Conservation and Aircraft Modernization. FedEx will build on its successful FedEx Fuel Sense initiatives designed to reduce fuel consumption in its aircraft. Since 2012, the FedEx Fuel Sense and Aircraft Modernization programs have saved a combined 1.43 billion gallons of jet fuel and avoided over 13.5 million metric tons of carbon dioxide (CO2) emissions. 
• Facilities. FedEx will continue efforts to make its more than 5,000 facilities worldwide more sustainable through continued investments in efficient facilities, renewable energy, and other energy management programs.  
• Natural Carbon Sequestration. FedEx funding will help to establish the Yale Center for Natural Carbon Capture to support applied research into natural carbon sequestration solutions.  

Per FedEx own statement, since 2009 they have reduced their own CO2 emissions by 40% while package volume has increased 99%. FedEx has also ranked first in the industry on Just Capitals 2021 list of "America's Most Just Companies" for environmental category as well as first for the travel, transport and logistics sector of Newsweek's "America's Most Responsible Companies 2021".

FedEx is leading the way for businesses who have a large impact on CO2 in reducing it and the affect on climate change.

FedEx Press Release FedEx Commits to Carbon-Neutral Operations by 2040

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[smk4565]

I smell a big EV Sprinter order coming.

[balthazar]

Hopefully the U.S.-based Fed Ex keeps the contractor U.S.-based.

[G. David Felt]

@smk4565 @balthazar Your Answer is here:

FedEx Electrifies Delivery and Package Movement with BrightDrop Products - Automotive Industry - Cheers and Gears

[balthazar]

MUCH better than those overpriced, hard-to-get-parts for Mercedes vans that start rusting out in 7 years.

[smk4565]

8 hours ago, David said:

@smk4565 @balthazar Your Answer is here:

FedEx Electrifies Delivery and Package Movement with BrightDrop Products - Automotive Industry - Cheers and Gears

I forgot I did read about that.  I wonder if FedEx will replace all delivery vehicles with the ev600, but I suppose over 10 years or so GM can meet the demand.

[smk4565]

10 hours ago, balthazar said:

Hopefully the U.S.-based Fed Ex keeps the contractor U.S.-based.

They should buy the best vehicle for their needs.  That “Americans will/should buy American” is what doomed GM and Ford in the 70s and 80s.  If the Japanese made a better car then Americans should buy the Japanese car because it it a better product.  Ford and GM thought they could built crap and people would buy it anyway because it was made in USA.  
 

If some Chinese company comes out with an Electric delivery van with 25% lower operating cost and 25% better reliability than the Brighthouse then FedEx would be stupid not to buy it and would be hurting their own business not to buy it.  It is up to GM to make the best delivery van if they want customers to buy it.

[balthazar]

Fed Ex is not an individual, but a giant corporation. And giant corporations weigh fleet purchases differently than individual, such as the long-term viability of the company they're sourcing from, to insure a contract is filled and support/parts will be there long down the road. A fly-by-night Chinese EV startup is not going to rise to the top of that class in consideration.

Meanwhile, "the best" doesn't always sell the best, does it? That's why every single vehicle segment has more than 1 product in it. And zero segments have a Chinese EV startup at their top.

Edited March 7, 2021 by balthazar

[smk4565]

12 hours ago, balthazar said:

Fed Ex is not an individual, but a giant corporation. And giant corporations weigh fleet purchases differently than individual, such as the long-term viability of the company they're sourcing from, to insure a contract is filled and support/parts will be there long down the road. A fly-by-night Chinese EV startup is not going to rise to the top of that class in consideration.

Meanwhile, "the best" doesn't always sell the best, does it? That's why every single vehicle segment has more than 1 product in it. And zero segments have a Chinese EV startup at their top.

I am not saying a fly by night start up, it could be any company, Tesla, Stellantis, Daimler, or it could be a Chinese one.  My point is that FedEx is going to buy the vehicle that best meets their demands.  If the Brightdrop is the best fit, then they'll buy 10,000s of them.  But that isn't because it from an American company.

[balthazar]

How'd that practice work out on the semi-conductor chip scene for domestic OEMs?
Why do you think there aren't any 100% Chinese automotive efforts on sale in the U.S.?

Buying from a known entity with a proven track record is a major component of Gov't & corporate contracting. It's common sense. 

What Chinese BE delivery truck company did you have in mind (if they're not a fly-by-night start-up?) 

[A Horse With No Name]

On 3/7/2021 at 12:48 AM, balthazar said:

MUCH better than those overpriced, hard-to-get-parts for Mercedes vans that start rusting out in 7 years.

No S#!t Sherlock!

[G. David Felt]

On 3/7/2021 at 9:44 PM, balthazar said:

How'd that practice work out on the semi-conductor chip scene for domestic OEMs?
Why do you think there aren't any 100% Chinese automotive efforts on sale in the U.S.?

Buying from a known entity with a proven track record is a major component of Gov't & corporate contracting. It's common sense. 

What Chinese BE delivery truck company did you have in mind (if they're not a fly-by-night start-up?) 

Did any Chinese BEV exist before 2015? ?

Nope we know they did not.