In fall 2022, MBJ spoke to FedEx founder and executive chairman Fred Smith about the company’s commitment to become carbon neutral by 2040, and the increased focus on sustainability in today’s world.
“The vast majority of our customers list sustainability and responsible corporate citizenship as among their most important attributes for a company they want to do business with,” he said at the time. “So, it’s very important that we occupy a position of responsible corporate stewardship in terms of environmental sustainability, because our customers want us to do it.”
Now, through a new tool, FedEx is also providing its customers with more data on carbon emissions.
According to a press release, the delivery services giant is launching FedEx Sustainability Insights, a cloud-based engine created by FedEx Dataworks that uses near-real-time network data to estimate carbon dioxide equivalent (CO2e) emissions. Available in the U.S. for eligible FedEx Express, FedEx Freight, and FedEx Ground shipments, it allows users to view emissions data — which is displayed in a variety of metrics, like mode of transport, service type, and country or territory.
The tool’s capabilities are set to serve as the foundation for a new suite of tools for e-commerce customers, as they’ll be able to transfer their historical and predictive emissions data to their own internal systems through an application programming interface (API). Machine learning powers the predictive API capabilities, which could help customers manage their supply chain, boost operational compliance, and integrate emissions estimates into shopping carts for customers.
“We’ve heard from our shippers that they need more data on their shipping footprint as consumers increasingly weigh sustainability as a factor in purchasing decisions,” said executive VP and chief customer officer Brie Carere, in the release. “Through innovations like FedEx Sustainability Insights, FedEx is empowering customers to access the information they need as part of our mutual pursuit of a more sustainable future.”
The new tool is set to aid FedEx in its own quest to reach carbon neutrality by providing insights about additional opportunities for network efficiency.
FedEx’s $2 billion effort to become carbon neutral by 2040 involves vehicle electrification, fleet upgrades, fuel efficiency initiatives, and a $100 million contribution to Smith’s alma mater, for the Yale Center for Natural Carbon Capture. The hope is that the scientific research center will find new methods of carbon sequestration at scale and help offset greenhouse gas emissions equivalent to current airline emissions.
