FedEx Cutting CO2 Emissions, Improving Fuel Efficiency; On Target For Long-Term Profits

November 13, 2008 7:58 a.m. EST

Memphis, TN (AHN) - FedEx announced plans to cut carbon dioxide emissions from its FedEx Express aircraft fleet by 20 percent, and to improve fuel efficiency of its vehicle fleet by 20 percent, all by 2020.

Memphis-based FedEx (NYSE: FDX) announced those goals Wednesday in its FedEx 2008 Global Citizenship Report.

FedEx had already made some changes in an effort to reduce dependence on fossil fuels.

The company has 170 hybrid electric trucks, which is the largest hybrid commercial fleet in North America and the transportation industry. Since 2005, it has reduced vehicle carbon emissions by almost one billion pounds by increasing fuel efficiency of FedEx Express vehicles by 13.7 percent.

Since 2005, it has reduced aircraft carbon dioxide emissions by 3.7 percent per available ton mile by upgrading its aircraft fleet to reduce fuel consumption by up to 36 percent. At the same time the company boosted payload capacity by 20 percent by replacing planes.

But the company has gone beyond making its aircraft fleet and vehicles more fuel efficient. FedEx also has three solar-powered facilities in California and recently broke ground on one in Germany.

On Wednesday, FedEx said it was on target to achieve long-term plans to increase revenue by 10 percent and to increase earnings per share by 10 to 15 percent per year.