FedEx Commits to Deploying Only Electric Vehicles by 2040

(TNS) — FedEx is the latest in a long line of companies committing to carbon neutrality as industries continue to alter their practices in an effort to combat climate change.

On Wednesday, FedEx announced it plans to achieve full carbon neutrality across all operations by 2040.

The company has committed an initial investment of over $2 billion to help achieve this goal through a combination of vehicle electrification, sustainable energy and carbon sequestration.

"We have a responsibility to take bold action in addressing climate challenges," said  Frederick W. Smith , chairman and CEO, FedEx Corp. "This goal builds on our long-standing commitment to sustainability throughout our operations, while at the same time investing in long-term, transformational solutions for FedEx and our entire industry."

The company plans for the entire FedEx parcel pickup and delivery fleet to be comprised of zero-emission electric vehicles by 2040. The electrification of the vehicle fleet will take place in phases over the coming years.

FedEx said it also plans to invest in sustainable fuels to reduce aircraft and vehicle emissions, in addition to offering customers carbon-neutral shipping options and sustainable packaging.

"While we've made great strides in reducing our environmental impact, we have to do more. The long-term health of our industry is directly linked to the health of the planet, but this effort is about more than the bottom line — it's the right thing to do," said  Mitch Jackson , chief sustainability officer, FedEx Corp.

The company has also committed $100 million to Yale University to help fund the Yale Center for Natural Carbon Capture, where some of the county's top scientists will work to develop innovative solutions to reduce carbon emissions.

"Addressing climate change is a complex challenge that demands urgent action, and natural carbon capture strategies will be one key part of that action," said Dr.  Ingrid C. "Indy" Burke , the Carl W. Knobloch, Jr. dean of the Yale School of the Environment. "Through the creation of the Yale Center for Natural Carbon Capture, we aim to develop measurable carbon capture strategies to help offset carbon emissions globally."

OTHER COMPANIES GOING ELECTRIC

FedEx is far from the only company that has recently committed to electrifying its vehicle fleet in an effort to combat climate change.

In January, General Motors ( GM) announced that the company is planning for an all-electric future, with plans to only sell emission-free light-duty vehicles by 2035.

"With this extraordinary step forward, GM is making it crystal clear that taking action to eliminate pollution from all new light-duty vehicles by 2035 is an essential element of any automaker's business plan," said Environmental Defense Fund President  Fred Krupp .

GM is the largest auto manufacturer in the United States, with millions of vehicles sales each year across its four core brands: Chevrolet, Buick, GMC and Cadillac.

The company has assured customers that it will offer emission-free vehicles at varying price points, ensuring that those seeking cheaper options are not priced out of a new car as GM transitions to electric and other zero-emission vehicles.

GM has committed $27 billion toward electric and autonomous vehicles over the next five years, with plans to offer 30 all-electric vehicle models globally by the end of 2025. By then, 40% of the company's U.S. models are expected to be all-electric.

In addition to the company's plans to sell exclusively emission-free vehicles by 2035, GM has committed to achieving full carbon neutrality across all global products and operations by 2040.

To help reach carbon neutrality, GM will source 100% renewable energy at all U.S. sites by 2030 and all global sites by 2035.

The company plans to offset any remaining emissions through carbon credits.

Earlier this week, Volvo announced plans to become a fully electric car company by 2030 in an effort to reduce its carbon footprint.

Volvo had already planned to sell 50% all-electric vehicles and 50% hybrid vehicles by 2025, but now intends to fully electrify its fleet by 2030.

"There is no long-term future for cars with an internal combustion engine," said  Henrik Green , chief technology officer of Volvo. "We are firmly committed to becoming an electric-only car maker and the transition should happen by 2030. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change."

In addition to selling exclusively-electric vehicles, Volvo announced plans to shift the sale of all fully electric cars to an online-only model, a move the company claims will simplify the buying process and provide clear and transparent vehicle and pricing data.

While dealerships will still handle test drives, maintenance and repairs, the rest of the car-buying experience will take place online, with the company offering pre-configured car options that can be purchased with a few quick clicks.

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