FedEx (FDX) Sets Goal of Carbon-Neutral Operations by 2040
FedEx Corporation FDX aims to make its operations carbon-neutral globally by 2040. To this end, the company intends to make an initial investment of more than $2 billion for vehicle electrification, sustainable energy and carbon sequestration.
As part of this goal, FedEx will provide a funding of $100 million to Yale University to help establish the Yale Center for Natural Carbon Capture.
The company plans to transform its entire fleet of parcel pickup and delivery (“PUD”) to zero-emission electric vehicles by 2040. It expects to achieve this goal in phases. For instance, 50% of FedEx Express global PUD vehicle purchases will be electric by 2025. This will rise to 100% of all purchases by 2030.
FedEx Corporation Price
FedEx Corporation price | FedEx Corporation Quote
Additionally, FedEx will continue to invest in alternative fuels to reduce aircraft and vehicle emissions. It will also continue to make investments in efficient facilities, renewable energy and other energy management programs to make its facilities across the globe more sustainable.
The company’s sustainability initiatives since 2009 have contributed to an approximate 40% reduction in carbon dioxide emissions intensity across the enterprise.
Zacks Rank & Other Key Picks
FedEx carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Transportation sector are ArcBest Corp. ARCB, Saia, Inc. SAIA and USA Truck, Inc. USAK. While USA Truck sports a Zaks Rank #1 (Strong Buy), ArcBest and Saia carry the same Zacks Rank as FedEx. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest, Saia and USA Truck have rallied more than 100%, 70% and 39% in the past six months respectively.
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