FedEx Prepares For Oil Price Risks
Published: 28 June 2010
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7 pages, 2 figures
Executive Summary
This case study is one in a series of Verdantix reports that analyses corporate climate change and sustainability programmes. FedEx first implemented strategic plans to reduce fleet atmospheric emissions and improve fuel efficiency over a decade ago and cemented this commitment in 2008 with the release of its ‘20 by 2020’ relative emissions reduction targets. With a fleet of over 50,000 owned motorized ground vehicles and 660 aircraft, fuel costs account for 10.7% of FedEx’s revenue. Rising fuel prices are a significant threat to the firm’s profitability, so fuel efficiency is a strategic issue and is one that is driving investments in hybrid and electric vehicles, despite a non-existent business case. FedEx’s intense rivalry with UPS adds to the importance of implementing an aggressive sustainability programme, as this is an area where the two firms compete for differentiation.
TABLE OF CONTENTS
FEDEX PREPARES FOR OIL PRICE RISK
FedEx Integrates Sustainability Into Its Business Operations
Fleet Renewal Drives FedEx’s Portfolio Of Fuel Efficiency Initiatives
Competition And Higher Oil Prices Will Expand The FedEx Strategy
TABLE OF FIGURES
Figure 1. FedEx’s Carbon Emissions Fell In 2009 Due To The Recession
Figure 2. FedEx Has Failed To Identify Sustainable Revenue Generating Opportunities
COMPANIES MENTIONED
Better Place, Boeing, BP Solar, Eaton Corporation, Edelman, Ernst & Young, Esty Environmental Partners, FedEx Express, FedEx Freight, FedEx Ground, FedEx Office, GE, International Air Travel Association, Iveco, Modec, Navistar, Renault, Saatchi & Saatchi S, Sharp, Tesco, UPS, US Department for Transportation, US Environmental Protection Agency