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How To Map More Sustainable Ways Of Operating

By FedEx | September 28, 2023

FedEx has achieved many milestones in its 50-year journey as well as shaped how the world does business. It continues to apply advanced technology and data-driven insights to create greater value for its customers while fostering possibilities for the communities and the planet.

The FedEx journey continues to be driven by innovation and digitally driven solutions to enhance the experience for customers. Fifty years on, FedEx is also leveraging technology to help solve the sustainability challenge. “In the words of our founder, we have always put sustainability at the center of our business because we know that the future of our business is tied to the climate, the environment and the future of our planet,” says Kawal Preet, President of the Asia Pacific, Middle East, and Africa (AMEA) region at FedEx Express.

“We view sustainability through the lens of opportunity, growth and profitability as well as a clear purpose to connect businesses and communities.”

Continuous Tech Innovation

FedEx is embracing advanced technologies to explore new possibilities in operational efficiency. In markets like Singapore and China, FedEx introduced Artificial Intelligence (AI) powered robotic sorting arms at sorting centers and hubs to drive overall operational efficiency. With machine learning, Estimated Delivery Time Window (EDTW) provides FedEx customers in Japan and Hong Kong with a target delivery time.

FedEx continues to roll out products and solutions for customers in a mobile-first world. For instance, Picture Proof of Delivery gives customers the assurance that their package has been delivered to their doorsteps. Through FedEx Ship Manger Lite customers can arrange shipments on their mobile devices without having to print documents at home. WhatsApp notifications are integrated into its FedEx Delivery Manager International platform for customizable delivery options, with direct messaging and tracking for convenience.
FedEx employee charges all-electric zero emission vehicle

Commitment to Sustainability

FedEx is making great strides in its journey towards carbon neutral operations —vehicle electrification to energy-efficient facilities and infrastructure. “We are creating a smarter network that is flexible and intelligent—not just for today but well into the future, enabling customers to compete and win,” says Preet. “This includes how we ensure sustainability is fully aligned with our business strategy.”

Digital technology is helping FedEx innovate to provide paperless solutions and more convenience to its customers. With millions of packages in FedEx system every day, minimizing paper usage makes a difference. For example, by using Electronic Trade Documents, customers can submit information essential for customs clearance electronically. This means there’s no need to attach printed paperwork to each shipment and delays at customs can be avoided.

Electric vehicles (EVs) will make up 50% of the FedEx pick-up and delivery vehicle purchases by 2025, rising to 100% by 2030. More EVs are being deployed across the AMEA region including in South Africa, China, India, Thailand, Malaysia, and Singapore.
green forest with reduce reuse and recycle symbol

FedEx new facilities across AMEA like in Johannesburg, South Africa, Clark in the Philippines, Adelaide Gateway in Australia, and the upcoming Dubai World Central Airport Hub in the UAE, incorporate multiple layers of sustainability features from construction materials to lighting, ventilation, insulation, water recycling, renewable power generation. FedEx Incheon gateway in South Korea, for example, boasts 2,400 solar panels on its rooftop, which can generate 19% of the facility’s monthly energy needs.

Ultimately, through company-wide initiatives like these and more in the pipeline, FedEx is well on its way to achieving carbon-neutral operations by 2040.

Empowering Sustainable Business Practices

Recently, the company launched the FedEx Sustainability Insights across AMEA markets to give customers better visibility of their carbon footprint within their supply chains, supporting reporting and strategic future planning.

Preet says, “We are living in a time when sustainability is a core strategic consideration for businesses and a driver of innovation and talent attraction. We are fortunate at FedEx that our leaders have always been fully engaged in setting and enabling sustainability goals. Addressing climate change is bigger than one business and we must all work together on sound policy and innovative solutions for our planet.”

Want to learn more about sustainability initiatives? Head on over to our Business Insights page.

A version of this article appeared in Forbes Asia on September 8, 2023.
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