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GLOBAL CONNECTIONS 2013 Report on Global Citizenship INTRODUCTION 2 About This Report Our annual Global Citizenship Report (GCR) tracks enterprise-wide strategies, goals, programs and progress across four key pillars: Q Economics & Access: increase global commerce sustainably for communities and shareholders Q Environment & Efficiency: create more efficient networks for our customers while minimizing our footprint Q Community & Disaster Relief: leverage our infrastructure, our resources and our people to help communities worldwide Q People & Workplace: foster a culture dedicated to making every FedEx experience outstanding Our FY13 report covers our fiscal year 2013, which ended May 31, 2013, and includes data from each of our operating Table of Contents companies and geographies unless otherwise stated. Chairman and CEO Letter 3 We began annual reporting of our global citizenship efforts in 2008, with our FedEx Office division producing its first Q&A with Mitch Jackson 4 sustainability report under the Kinko’s brand name in 2003, Economics & Access 5 prior to being acquired by FedEx. Environment & Efficiency 16 We have begun an assessment of our material issues this Community & Disaster Relief 31 year, consulting external stakeholders on global citizenship People & Workplace 41 issues most relevant for us. We plan to complete our analysis and begin reporting the results in our 2014 GCR. Our FY13 report is aligned with the Global Reporting Initiative (GRI) G3.1 Guidelines. A full index of GRI indicators and reference material can be found at csr.fedex.com. RECENT AWARDS 2014: FedEx Corporation ranked 8th in FORTUNE magazine’s 2013: FedEx Corporation recognized as one of The Civic 50’s “World’s Most Admired Companies,” making the top 10 for the Most Community-minded Companies in America by The National fourth consecutive year. Conference on Citizenship and Points of Light. 2013: FedEx Corporation placed in the top 25 commercial solar 2013: FedEx Express awarded the Gold Award for Best users in the U.S. by the Solar Energy Industries Association. Community Program as a global sponsor of the Flying Eye Hospital Program with ORBIS at the 5th Global CSR Awards in Davao, the Philippines. 2013: FedEx Corporation was included in CR Magazine’s 100 2013: FedEx Corporation ranked among FORTUNE magazine’s Best Corporate Citizens List. “100 Best Companies to Work for in America” for the 13th time in the past 16 years. 2013: FedEx Corporation recognized as the transportation sector leader for disclosure of deforestation risks in the CDP (formerly Carbon Disclosure Project) Global Forests Report. FedEx 2013 Global Citizenship Report CHAIRMAN AND CEO LETTER 3 GREAT THINGS HAPPEN WHEN YOU CONNECT PEOPLE AND POSSIBILITIES. IDEAS FLOW, INNOVATIONS OCCUR, BUSINESSES ARE BORN, AND PEOPLE THRIVE IN SEEING WHAT CAN BE RATHER THAN WHAT IS. At FedEx, global citizenship is the bedrock for creating a more to 22.3% less than 2005 levels, exceeding our original goal sustainable world. We’re committed to finding planet-conscious of 20%. Now we are well on our way towards our new goal solutions that meet the needs of society, both in developed of 30% by 2020. We also improved FedEx Express vehicle and developing countries. We try and set an example by our fuel efficiency by 27% from 2005 levels, again exceeding our own actions; we support our customers’ global citizenship original 20% goal last year. efforts; and we advocate policy changes that advance sustain- able economic development. Our core commitment to sustainable efficiency has had ripple effects in the nation itself. In 2006, in conjunction FedEx global citizenship efforts help reduce costs, drive inno- with SAFE (Securing America’s Future Energy) we called for vation, reinforce relationships, and strengthen our company the first-ever fuel efficiency and greenhouse gas standards for a brighter future. for all U.S. commercial vehicles. This law was subsequently passed in late 2007 with the regulatory standards just coming ECONOMIC CONNECTIONS into effect in the U.S. now. FedEx is an enabler of global trade, serving more than 220 countries and territories that generate more than 90% of the THE POWER OF PEOPLE world’s GDP. We continue to invest in our network, expanding FedEx global citizenship also emphasizes people. We are infrastructure at key distribution hubs to help us reach new immensely proud of the dedication of more than 300,000 team markets and enhance existing services. Our recent expansion members who deliver outstanding service to our customers includes FedEx Express operations in seven countries in Africa, every business day, while supporting the communities we new regional hubs in Singapore and Shanghai, expanded serve mainly through disaster relief, pedestrian and road safety, operations in Europe, and expansion of FedEx Express Brazil. and environmental sustainability. To these ends, we contrib- uted over $46 million in cash, charitable shipping, and team Such connections help many people around the world. member donations in 2013, not to mention thousands of hours For example, a family meat business decided to expand “FedEx Cares” volunteers donated in various endeavors. and depends on FedEx for reliable, low-cost, lower-carbon transport. The company also won $5,000 from the FedEx Envisioning lofty goals is easy. Achieving those goals takes Small Business Grant Contest which the owner is using to buy hard work and commitment. We believe global citizenship is higher-quality, cold-ship boxes that provide more economical, not a secondary activity. It’s a core value, strengthening our flexible shipping options. company and improving the sustainability of our world. We are in it for the long haul, and FedEx global citizenship will We engage the communities and countries we serve too, such remain a constant in an ever-changing global landscape. as sharing our “movement” expertise through a program called EMBARQ that helps cities in Brazil, India, and Mexico Sincerely, transport people more efficiently and grow cities more sustain- ably. The results we envision: shorter commutes for workers and lower emissions even as economies grow. EFFICIENCY AND ENVIRONMENT Citizenship at FedEx emphasizes efficiency in our operations. Frederick W. Smith For instance, in FY13, we brought our aircraft CO2 emissions Chairman and CEO, FedEx Corporation FedEx 2013 Global Citizenship Report Q&A WITH MITCH JACKSON 4 Which areas are you most pleased with this year? I am immensely proud of all of our team members who provide outstanding service to customers while focusing on doing so more sustainably. In FY13, their efforts cut aircraft CO2 emissions intensity by an additional 4.2% and Q&A improved FedEx Express vehicle fuel efficiency by 5%—significant progress towards our 2020 improvement goals. We work hard and think creatively to win these gains. QUESTION AND ANSWER SESSION FedEx Express, for example, participated in research with the Federal Aviation Administration into wake turbulence behind aircraft approaching WITH MITCH JACKSON, VICE PRESIDENT airports. The findings allowed us to modify landing procedures in ways that help save fuel and increase airport capacity. These are now being OF ENVIRONMENTAL AFFAIRS & implemented at U.S. airports. SUSTAINABILITY AT FEDEX CORP. FedEx Office identified that many documents were not recycled because of concern about confidentiality. We responded by offering a secure shred- and-recycle service in selected centers, where customers can bring old tax forms, financial records and other confidential documents. Please describe your role. In communities in Mexico, India and Brazil, we collaborated with the non- My team oversees sustainability vision, strategy and implementation profit organization, EMBARQ, to help bring more sustainable transportation across FedEx. Our sustainability governance structure mirrors the way to cities. This builds on our longstanding community work with organiza- we run the business. Senior executives participate through our FedEx tions like Safe Kids to make streets safer and our vehicle fuel efficiency Enterprise Sustainability Council and we involve operating company func- program to improve local air quality. tions like air operations, vehicles and supply chain through Sustainability In our Latin America workforce, we promoted business education for women Impact Teams run by my department. My team also leads EarthSmart®, with seminars led by FedEx executives. The drive to give our female talent the FedEx roadmap for operating in an increasingly sustainable way and pool the opportunity to thrive is another component of our wide-ranging engaging our team members, customers, suppliers, vendors and communi- approach to sustainability. ties in this critical effort. Have there been any significant challenges or setbacks? Is your work based on a business case? Yes, and we learn from these. In 2004, we began working on hybrid electric I believe there is a strong business case for sustainability within the logis- commercial vehicles with the Environmental Defense Fund. Although many tics industry. This is based on improving efficiency, operational excellence fleets now utilize hybrid electric commercial vehicles, the technology has and customer service. Sustainability can drive down costs and align us not been adopted as rapidly as we hoped. with our customers. It also stimulates innovation and technology leader- ship in the logistics sector, which are important to competitiveness and Realizing hybrid technology needed a push, in 2006, we called
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