2017 Global Citizenship Report csr.fedex.com

Delivering is our business. Delivering positive impact is our responsibility. Empowering people to deliver it forward is our passion. Delivering for a better world

Every day, in countless ways, FedEx empowers team members, customers, change-makers and community advocates to take action. From job opportunities to safer, more sustainable communities, these everyday heroes deliver it forward. Meet them in this report and on our website. 3 2017 FedEx Global Citizenship Report Table of Contents

Our Company Economy Environment People GRI

CHAIRMAN’S ECONOMY LETTER Delivering Opportunities Pages 13–27 Chairman and CEO, Frederick W. Smith Pages 4–5 ENVIRONMENT Delivering for a Sustainable World GOALS AND Pages 28–45 PROGRESS Page 6 PEOPLE Delivering for Our Team OUR COMPANY Pages 46–55 Delivering Business Responsibly Pages 7–12 GRI Pages 56–67

About This Report

Our annual global citizenship report covers Because TNT Express was acquired late in FedEx enterprise-wide strategies, goals, fiscal year 2016, that entity is not included programs and progress across three key in any of the reported data. pillars: Economy, Environment and People. This report references the Global Data in this report covers each of our Reporting Initiative’s (GRI) G4 framework operating companies and all geographies and contains Standard Disclosures in our 2016 fiscal year, which ended May from the GRI Sustainability Reporting 31, 2016, unless otherwise noted. Guidelines, which are listed in this index. 4 2017 FedEx Global Citizenship Report Chairman's Letter

Our Company Economy Environment People GRI

WHAT CONNECTS US MAKES US STRONGER

Few companies have the privilege of almost instantly. At FedEx, our services participating in the world at large like we physically connect customers to the do at FedEx. From holiday e-commerce digital economy, creating more jobs and packages to global supply chain solutions improving lives. to disaster relief, we’re fortunate to be part of millions of lives and thousands of Here’s an example from the brother-and- communities. sister team that founded ArtLifting three years ago. Through e-commerce propelled by FedEx, the small Boston business sells Without question, we paintings and prints from more than 100 homeless and disabled artists to buyers realize the interests of throughout the U.S. and around the world. our communities, our These artists receive more than half the workplaces, and the planet sales from their works, not to mention a big boost in pride and confidence. It’s a are intertwined. Our future brilliant business strategy that also betters depends on recognizing and the lives of underserved people. balancing those needs in Stories like this demonstrate the power of everything we do across our trade to create new markets and greater Frederick W. Smith opportunities. In fact, 7 in 10 U.S. small business." Chairman and CEO businesses see global trade as improving From our vantage point, we see the U.S. economy, according to the FedEx firsthand how the world works. Without Trade Index, a 2016 survey conducted by In FY15, five years ahead of target, we question, we realize the interests of our Morning Consult. Trade is our business, met our goal of increasing FedEx Express communities, our workplaces, and the and we’re proud that FedEx jobs are trade vehicle fuel efficiency by 30 percent planet are intertwined. Our future depends jobs. Of course, we’re not unique — about from a 2005 baseline. We’ve now set a on recognizing and balancing those needs 40 million jobs in the U.S. are directly new goal. By 2025, we want to increase in everything we do across our business. related to trade. vehicle fuel efficiency by 50 percent from This is equally important to our customers, a 2005 baseline, or 17 percent from a investors, and team members. In fact, Sustainability reduces our 2015 baseline. In FY16, we saved more $6.7 billion in FY16 revenue came from than 153 million gallons of jet fuel by customers who wanted to know more environmental footprint continuing to modernize our aviation about the emissions generated from fleet and improve operations. As a result, As trade connects the world and shipping their goods. we avoided the equivalent of almost 1.5 enhances prosperity, we understand million metric tons of carbon dioxide that how we connect the world matters. emissions. Commerce adds jobs to By incorporating sustainability efforts communities throughout our global network, we’re reducing the environmental footprint of Safety makes our Our business-to-business, business-to- commerce. Since 2008, we’ve saved more communities better places consumer, and e-commerce solutions than 158 million gallons of vehicle fuel benefit more customers than ever, helping by replacing vehicles with more efficient to live them to prosper and their communities models and making greater use of electric At the same time we set and meet our to flourish. Today, just about anyone with vehicles, fuel cells, natural gas, hybrids sustainability goals, we are focused on a mobile phone can reach new markets and clean truck technologies. 5 2017 FedEx Global Citizenship Report Chairman's Letter

Our Company Economy Environment People GRI

safety — our No. 1 priority. Ensuring and volunteering more than 93,000 hours the safety of the people in our global Today, just about anyone in more than 500 cities worldwide. network — along with our customers and communities — is a complex job. But it’s with a mobile phone can I thank the FedEx team, more than one we take extremely seriously. Like reach new markets almost 400,000 people strong, for working every sustainability, we integrate safety into instantly. At FedEx, our day to make the world a better place. everything we do, and we share our safety From couriers to customer service reps, expertise with communities around the services physically connect from package handlers to pilots, each world. customers to the digital team member plays a role in delivering on economy, creating more jobs our commitments — to our customers, In cities from Mexico City to Mumbai, our communities, and our planet. We we’re working with EMBARQ, part of the and improving lives." firmly believe that what connects us World Resources Institute’s Ross Center makes us stronger. with trusted non-governmental and for Sustainable Cities, to develop safe non-profit organizations to tackle and sustainable transport and planning some of society’s biggest problems in Frederick W. Smith solutions. EMBARQ adapted the FedEx communities where we live and work. In Chairman and CEO Safety First manual to train 1,150 public FY16, the first year of our commitment transportation drivers in three Mexico to invest $200 million in more than 200 cities. As a result of the training, more global communities by 2020, we invested than 1.2 million passengers a day benefit more than $46 million in charitable from safer bus systems. contributions, benefiting 97 communities around the world. Team members came The FedEx team shares out in force, contributing more than $9 expertise to change lives million during our United Way campaign, Our community investment strategy is simple: We do what we do best for those in need. That includes sharing our knowledge and resources in collaboration

AWARDS

• Fortune Magazine’s World’s Most • Reputation Institute 100 Most • Points of Light: Civic 50: The Admired Companies Reputable Companies in the World 50 most community-minded companies in the United States • FedEx ranked as one of 10 Best • CR Magazine’s 100 Best Corporate Workplaces for African-Americans Citizens • Aon Hewitt Best Employer in by Fortune Japan, Korea, Malaysia, New • NASDAQ OMX CRD Global Zealand and Asia Pacific • Fortune's 100 Best Companies to Sustainability Index Work For • FedEx named one of America’s • U.S. Chamber of Commerce Top Corporations for Women’s Foundation Citizens Award — Business Enterprises by the Best Disaster Response and Women’s Business Enterprise Community Resilience Program National Council 6 2017 FedEx Global Citizenship Report Goals and Progress

Our Company Economy Environment People GRI

FedEx sets ambitious goals for our social and environmental programs. In FY16, we continued to make progress toward these goals, highlighted below.

GOALS PROGRESS

Invest $200 million in 200 $46.21m communities around the world by 2020 97 communities

Reduce aircraft emissions intensity 30% from a 2005 baseline 22% reduction from a 2005 by 2020 baseline

The first delivery of commercially Obtain 30% of jet fuel from alternative fuels by 2030 viable and available alternative fuels is anticipated in 2019

Increase FedEx Express vehicle fuel efficiency 50% from a 2005 35% improvement baseline by 2025 from a 2005 baseline

Seek LEED (Leadership in Energy and Environmental Design) 2 new 12 LEED certified certification on all new U.S. FedEx in FY16 facilities in total Express buildings

Expand on-site energy generation and continue to procure 3 new 18 on-site solar renewable energy for facilities in FY16 installations in total 7 2017 FedEx Global Citizenship Report

Our Company DELIVERING BUSINESS RESPONSIBLY 8 2017 FedEx Global Citizenship Report Our Company

Our Company Economy Environment People GRI

safety, sustainability, the highest ethical In FY16, we exceeded $50 billion in OUR BUSINESS standards and the needs of our customers revenues for the first time. This financial and communities. milestone represented a $2.9 billion FedEx Corporation delivers business increase and a 6 percent growth rate over solutions for a connected world. Our Headquartered in Memphis, Tennessee, FY15. FY16 also saw a 9 percent growth diverse portfolio of transportation, FedEx Corporation (FedEx) provides in average daily package volumes. The e-commerce and business solutions its broad portfolio of services through strategic acquisition of TNT Express in late serves millions of customers in more operating companies that compete FY16 broadened our portfolio of solutions than 220 countries and territories, turning collectively, operate independently and are even further, meeting customer needs global challenges into opportunities. managed collaboratively, under the global and strengthening our global competitive FedEx brand. advantage. Every day, more than 400,000 team members uphold our commitments to

Operating companies

Print and copy services, shipping pickup and delivery, and same-day courier service. Technology and services customized for your business needs. Road and air delivery services in Europe, the Middle East and Africa, Asia-Pacific and the Americas.

The largest express Air and ocean freight forwarding E-commerce transportation company in solutions tailored to customers’ technologies that enable the world. needs. international transactions for e-tailers and consumers worldwide.

Cost-effective business and Integrated supply chain management residential package shipping. solutions.

Priority and economy less-than- Delivery of urgent freight, valuable truckload (LTL) freight shipping. items and temperature-sensitive goods. 9 2017 FedEx Global Citizenship Report Our Company

Our Company Economy Environment People GRI

Main Hub Locations North America: Europe: Asia Pacific: Memphis, Tennessee; Oakland, California; Liege, Belgium; Paris, France; Cologne, Guangzhou, China; Osaka, Japan; Newark, New Jersey; Fort Worth, Texas; Germany Singapore Indianapolis, Indiana; Anchorage, Alaska; Mississauga, Ontario; Hagerstown, Middle East, Indian subcontinent Maryland; Woodbridge, New Jersey and Africa: Dubai, United Arab Emirates Latin America and the Caribbean: Miami, Florida 10 2017 FedEx Global Citizenship Report Our Company

Our Company Economy Environment People GRI

from stakeholders through a survey and revenue, costs, reputation and business CSR roundtable engagement session with continuity. industry groups, customers, investors, MATERIALITY sustainability experts, nonprofits and The FedEx Board of Directors, supported government agencies. This will assist us by management, oversees all risk AND RISK in modifying our materiality matrix in the management activities. For information on future. these responsibilities, please see our 2016 ASSESSMENT Proxy Statement. For more details about our CSR materiality FedEx conducts regular corporate social process please refer to page 7 of the responsibility materiality assessments, FedEx 2014 Global Citizenship Report. which inform our citizenship approach, goals, targets and metrics, covering environmental, social and governance Mitigating citizenship risks topics. We also seek wide-ranging input Our understanding of the key issues from external and internal stakeholders that impact our business enables us to through workshops, interviews and manage associated risks, and capitalize surveys on our approach and programs. on potential opportunities. We plan for the long-term across our operations to We updated our latest CSR materiality mitigate potential negative impacts on our analysis in FY16, as we sought feedback

HIGH

Surface vehicle fleet usage & Ethics, bribery associated GHG emissions & corruption

Business preparedness, resiliency & disaster response Workplace safety Aircraft fuel usage & associated GHG emissions

Data security & privacy

Team member relations

Facility energy usage & associated GHG emissions Social & environmental Workforce development impacts on communities Waste & recycling Diversity & inclusion Social impacts of supply chain Employee health Economic impact Product & & wellness & access service innovation Community investment & volunteerism Transport of restricted, Public policy hazardous or morally

IMPORTANCE TO TO STAKEHOLDERS IMPORTANCE engagement objectionable goods

Water impact Biodiversity of operations Supplier diversity

Environmental impacts of supply chain

LOW HIGH INFLUENCE ON BUSINESS SUCCESS 11 2017 FedEx Global Citizenship Report Our Company

Our Company Economy Environment People GRI

Highest Ranked Material Citizenship Issues by Stakeholders and Business

Material issue How we manage issue risks

Driver and workplace • Team member workplace safety training and awareness programs safety • Driver safety programs, training and awareness campaigns

• Global governance, ethics and compliance policies, programs and training activities Ethics, bribery and corruption • Alert Line for reporting ethical concerns • Corporate Integrity & Compliance department, reinforcing our commitment

• Technology security initiatives • Information technology risk management and disaster recovery plans Data security and • Online Customer Protection Center, bringing fraud awareness to our customers privacy • Internal privacy policies and procedures designed to protect the personal data of our customers and employees • Information Security Awareness programs

Business preparedness, • Contingency plans for events such as disasters or social unrest allow us to plan ahead and minimize resiliency and disaster vulnerabilities across our networks response

Global environmental and social trends • Materiality assessment, stakeholder engagement and global citizenship reporting identifies risks and and impacts on supports forward planning communities

Aircraft and surface • Fuel efficiency and emission-reduction targets vehicle fleet energy • Sustainable alternative fuel strategies and vehicle and aircraft efficiency measures usage and associated • Aircraft fleet modernization and operational improvements GHG emissions • Advocacy for regulatory and policy changes that support emission-reduction standards

independent, three are women and two For more information on the Board’s CORPORATE are minorities. Independent directors chair roles and responsibilities, please see our GOVERNANCE four standing committees: Investor Relations website. Our long-standing commitment to ethical • Audit Committee Global citizenship behavior, safety and customer satisfaction is supported by strong oversight, policies • Compensation Committee governance and procedures. The FedEx Board of FedEx sets enterprise-level strategy to Directors, led by Chairman and Chief • Information Technology Oversight deliver our global citizenship goals and Executive Officer, Frederick W. Smith, and Committee commitments. Each operating company composed of 12 members, manages our reports on a core set of global citizenship global operations. Eleven members are • Nominating & Governance Committee. metrics. Though many FedEx citizenship 12 2017 FedEx Global Citizenship Report Our Company

Our Company Economy Environment People GRI programs and policies are designed FedEx complies with all anti-corruption Business preparedness for, and implemented at, the operating laws, and prohibits bribes of any type. company level, our shared purpose unites All team members in relevant roles are As a leading global logistics company, and guides these efforts. required to complete anti-corruption we encounter challenging situations training, including management in ranging from natural disasters to social The FedEx Enterprise Sustainability international operations and team unrest in the everyday course of doing Council (FESC) has companywide members dealing with Government business. Preparing for these events is responsibility for sustainability Officials on behalf of FedEx. For more critical to sustaining our global operations strategy and implementation, as well details, read our Global Anti-Corruption and minimizing impact on customers. as our corporate social responsibility Policy. We proactively establish contingency materiality administration. Our chief plans that focus on restoring service FedEx shares the zero-tolerance sustainability officer, the Vice President of to customers with the least impact as policies adopted by the U.S. and other Environmental Affairs and Sustainability, possible, while ensuring team member governments to combat slavery or the chairs the FESC, and also oversees the safety — our top priority. trafficking of persons for any purpose. company-wide implementation of our We prohibit trafficking-related activities To support our internal process, FedEx Environmental Management System and expect the same of our suppliers and participates in State Emergency (EMS) and reviews performance annually. contractors. For more information, please Operations Centers programs, as well as Our Environmental Policy guides FedEx see the FedEx Policy Combating Trafficking the FEMA-Northern Command Public- operating companies in managing in Persons. Private-Partnership program, which brings environmental performance. private sector companies like FedEx

FedEx advocates for public policies in the together with national, state and local Human Resources (HR) departments United States and overseas that support emergency management organizations within each of our operating companies the economic future of our company, to work collaboratively before, during and manage all HR issues, including team shareowners and team members after disasters. Our active participation member engagement, health and through membership in industry trade in these initiatives helps FedEx gain the wellness, and development. The Corporate associations. To learn more, please view earliest possible reentry to impacted HR department coordinates efforts across our policies on public policy engagement. areas, so we can continue to serve operating companies and manages our customers while keeping our team executive development, team member members safe. benefits and diversity strategy. Each Data security and privacy FedEx operating company sets workplace Protecting the privacy of our customers, safety goals. The Diversity and Inclusion vendors and team members is critical (D&I) Council is composed of members to our ability to maintain their trust. across operating companies who We take precautions to safeguard all coordinate company-wide D&I initiatives. sensitive information and ensure a safe and secure online environment, including Ethics and integrity for customer transactions. Our Customer Protection Center highlights our Privacy Our publicly available Code of Business Policy alongside resources to help Conduct and Ethics sets a high standard customers identify, report and mitigate for team member conduct worldwide. All risks. For more information, please see new hires are trained on its provisions, our 2016 Form 10-K. which cover topics including workplace health, safety and environment, human rights, money laundering prevention, harassment and discrimination, conflicts of interest and gifts and entertainment. We encourage reporting of all suspected violations using our 24-hour FedEx Alert Line service or through management, legal or human resources. 13 2017 FedEx Global Citizenship Report

Economy DELIVERING OPPORTUNITIES

The Community Investor: Neil Gibson "We constantly challenge ourselves to tackle big problems, in our own backyard and on a global scale. Whether it’s helping small businesses expand market reach or investing in communities to help solve youth unemployment. ​Everything we do to support local economies goes back to our purpose — connecting people and possibilities."

Vice President of Corporate Communications, FedEx Services 14 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

GLOBAL BUSINESS PERFORMANCE Our business strategy is shaped by these FY16 Financial Highlights four key trends driving global commerce: For full details please see our 2016 Form 10-K.

• Growth of e-commerce FY141 FY152 FY163 • Globalization of trade Consolidated revenues (billions) $45.6 $47.5 $50.4

• Faster, more efficient supply chains Operating income (millions) $3,815 $1,867 $3,077

• Influx of high-tech businesses and Operating margin 8.4% 3.9% 6.1% high-value-added goods Net income (millions) $2,324 $1,050 $1,820

We make investments that align our Diluted earnings per share $7.48 $3.65 $6.51 business with these trends, including transformative acquisitions. We enhance Capital expenditures (billions) $3.5 $4.3 $4.8 our financial performance by extending our global portfolio and reach. Our FY16 1 Results for FY14 include a loss of $15 million ($9 million, net of tax, or $0.03 per diluted share) associated with our mark-to- acquisition of TNT Express — the largest market pension accounting. acquisition in our history — significantly 2 Results for FY15 include a loss of $2.2 billion ($1.4 billion, net of tax, or $4.81 per diluted share) associated with our expands our footprint in Europe. The mark-to-market pension accounting, impairment and related charges of $276 million ($175 million, net of tax, or $0.61 per earlier acquisitions of GENCO (now FedEx diluted share) resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines and a charge of $197 million ($133 million, net of tax, or $0.46 per diluted share) to increase the legal reserve Supply Chain) and Bongo International associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement. (now FedEx Cross Border) in FY15 3 Results for FY16 include mark-to-market losses of $1.5 billion ($946 million, net of tax, or $3.39 per diluted share), strengthened our global offerings by provisions related to independent contractor litigation matters at FedEx Ground for $256 million, net of recognized immaterial improving our reverse logistics networks insurance recovery ($158 million, net of tax, or $0.57 per diluted share) and expenses related to the settlement of a U.S. Customs and Border Protection notice of action in the amount of $69 million, net of recognized immaterial insurance recovery and simplifying international transactions, ($43 million, net of tax, or $0.15 per diluted share). Total transaction, financing and integration planning expenses related to respectively. our TNT Express acquisition, as well as TNT Express’s immaterial financial results from the time of acquisition, were $132 million ($125 million, net of tax, or $0.45 per diluted share) during FY16. In addition, FY16 results include a $76 million ($0.27 per diluted share) favorable tax impact from an internal corporate restructuring to facilitate the integration of FedEx Express In FY16, FedEx revenues exceeded $50 and TNT Express. billion for the first time. This represents a more than 6 percent increase over FY15.

In FY16, $6.7 billion in revenue came from $6.7 customers seeking information on corporate billion citizenship and carbon emissions data. 15 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Delivering stakeholder value Growing our business responsibly, of stakeholders with whom we work and customers, team members, communities, resourcefully and in a forward-thinking engage. Through the positive impacts shareowners and suppliers, across manner not only benefits the long-term of our financial performance FedEx more than 220 countries and territories, success of our company, but the millions creates income and opportunities for including the benefits quantified below.

Stakeholder Value Add

FY14 FY15 FY16

Dividends paid to shareowners (millions) $187 $227 $277

Stock price (May 31 close) $144.16 $173.22 $164.97

Salaries and team member benefits (billions) $16.17 $17.11 $18.58

Diverse supplier spend (billions) $6.5 $6.7 $9.2

Community investment (millions) $45.48 $53.06 $57.29

Operating efficiency FedEx employs a range of initiatives to Aircraft and vehicle fuel represent a In FY15, we surpassed our goal of improve operational efficiency, reduce significant operational cost — as well as increasing FedEx Express vehicle fuel emissions and lower costs. Initiatives our most material environmental impact efficiency by 30 percent from a 2005 include our aircraft fleet modernization — accounting for 5 percent of operating baseline by 2020, five years ahead of program, FedEx® Fuel Sense, dimensional expenses and 93 percent of our emissions target. In FY16, we set a new 2025 goal to weight pricing, and our Reduce, Replace, footprint. increase fuel efficiency by 50 percent from Revolutionize vehicles and alternative fuel a 2005 baseline, or 17 percent from a 2015 strategies. baseline.

FY16 Efficiency Gains and Cost Savings

Environmental objective FedEx initiative FY16 cost savings estimates1 FY16 emissions avoided

Aircraft fleet modernization, Reduce aircraft emission intensity 1.47 million metric tons of FedEx®Fuel Sense operational $233 million 30% from a 2005 baseline by 2020 CO2e avoided improvements

Increase FedEx Express vehicle fuel Fuel-efficient driving, 217,549 metric tons of CO2e efficiency 50% from a 2005 baseline vehicle technology improvements $48 million avoided by 2025 and alternative fuel usage

1 Savings estimated compared to business-as-usual scenarios, and using average FY16 fuel costs. 16 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Delivering global established a digital supply chain strategy GLOBAL for small- and medium-sized business- e-commerce growth to-business and business-to-consumer e-commerce companies, allowing them ECONOMIC E-commerce currently accounts for to be competitive and cost-efficient in the almost $2 trillion in sales worldwide, global marketplace. IMPACT and is expected to top $2.4 trillion by

Online commerce has revolutionized the 2018. FedEx sits at the center of this FedEx Ground invested $1.6 billion to way the world conducts business and e-commerce transformation. Our flexible better manage forecasted e-commerce changed the global retail landscape. With a global logistics model and transportation growth, illustrated by a 9 percent click, customers and companies large and network seamlessly connects 220 increase in ground package volume small have access to global markets once countries and territories, enabling us to in FY16. Investments included new unattainable, creating opportunities and affordably deliver purchased items to automated hubs in Florida and California, growing economies. nearly any person or business quickly, and automated stations in 19 additional efficiently and responsibly. To keep pace markets. This brings the total number of FedEx is at the heart of global economic with e-commerce growth and intensifying automated hubs to 35 and automated connections. We use our extensive, customer demand, in FY16 we invested stations to 68, furthering the ability to sort reliable and efficient logistics network to heavily in expanding our network capacity packages more quickly, efficiently and cost enable our customers almost everywhere and portfolio of solutions. effectively. access to international markets. We provide services and support that In May 2016, we acquired TNT Express, make it easier for small businesses a Dutch delivery company specializing to compete, reach new markets and in international express and freight The acquisition of TNT navigate regulatory red tape. And we transportation and small-package ground advocate for removing barriers to trade delivery. Our largest acquisition to date Express will enable FedEx and streamlining global trade regulations significantly expands our global portfolio to take a giant step forward in ways that expand market access for and strategic reach, particularly in Europe. in Europe….TNT Express is our customers, improve the efficiency of The integration of TNT Express will further goods movement and generate economic increase the productivity and efficiency the largest, most complex growth. of our global operations, and expand our acquisition we’ve ever done. opportunities to profit from global market It is a $4.8 billion transaction trends, including e-commerce. and brings over 50,000 FedEx Supply Chain, formerly GENCO, new team members to our a leading North American third-party ranks. It’s truly a landmark logistics provider and pioneer of retail reverse logistics since the early 1990s, deal that will help FedEx is enhancing our e-commerce portfolio grow and improve our global by transforming the way we manage competitive situation." customer returns. Through an integrated suite of supply chain solutions, we enable Frederick W. Smith consumer brands and retailers of all Chairman and CEO sizes to focus on growing business and exceeding customer expectations.

FedEx Cross Border, formerly Bongo International, expanded its services to Raj Subramaniam China and Japan. The company is a leader The Global Citizen in cross-border facilitation technologies Read about how mobile technology and and solutions that offer a seamless, fast trade connects the world. integrated check-out process and delivery system. FedEx Cross Border has also 17 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Small business support The FedEx Small Business Small businesses and entrepreneurs are a global catalyst for growth and innovation. Grant Contest FedEx not only connects these businesses awards 10 grants a year to the global marketplace, but provides to U.S. entrepreneurs the regulatory, logistics and supply chain know-how they need to succeed. who think big, including a $25,000 grand prize. This ® The FedEx Small Business Center year’s winners included is a one-stop support shop for small businesses and entrepreneurs. The Ginjan Bros., a Harlem- online portal features actionable insights based company that from small business peers, resources to produces a West African expand e-commerce portfolios, tools for navigating international regulatory red tape ginger drink using natural and assistance in finding the right FedEx and organic ingredients, services. and LuminAID®, makers of In collaboration with International Trade Liz Powers an inflatable, solar-powered Administration’s Industry & Analysis team The Social Entrepreneur light used to assist disaster and the Department of Commerce’s Read about how FedEx helps purpose- relief efforts. Global Markets/U.S. Commercial Service, driven business ArtLifting empower we enable access to the resources that homeless artists. help small and diverse businesses and In FY16, we expanded the entrepreneurs to flourish in complicated business competitiveness, helps contest to Brazil, France, export markets. FedEx Know and GrowSM communities attract investment and offers U.S. small-business customers Germany, Hong Kong, creates more jobs. intelligence on how to grow their Singapore and the UK, international business through export FedEx actively supports and advocates and will bring the contest education events. In collaboration with for policies, agreements, treaties and ExportTech, Export University, and to China, India and Italy in infrastructure developments that reduce other state and federal agencies and barriers to trade and facilitate international F Y17. small-business organizations, we help commerce. FedEx Regulatory Affairs leads customers explore export markets these efforts through communications and understand related regulatory and with government officials, team members compliance requirements. and customers. In FY16, we hosted 51 events reaching In FY16, our advocacy efforts with the more than 5,600 participants. Since 2009, U.S. Congress and Administration focused 86,500 customers have benefited from on support for trade initiatives such this program. as the Trans-Pacific Partnership (TPP) and Transatlantic Trade & Investment Promoting open trade Partnership (T-TIP). We will continue to advocate for an ambitious trade agenda in Open and efficient trade enables FY17. economic growth and prosperity worldwide. The global trade market currently exceeds $15 trillion, and advances in technology and transportation systems make it ever easier to integrate global economies. This in turn supports 18 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

OUR GLOBAL SUPPLY CHAIN Our business success depends on a FedEx expects suppliers will aspire to In addition to new supplier screening complex, global supply chain to provide uphold the principles in our Code of events, our sourcing team regularly scores the resources and services needed to run Business Conduct and Ethics and other existing critically dependent suppliers our business smoothly and meet growing corporate social responsibility policy on issues that evaluate their overall customer needs. Our major suppliers statements. As a founding member performance, including sustainability include equipment manufacturers, fuel of the U.S. Sustainable Purchasing metrics. We share results with the companies and transportation service Leadership Council, we participate in supplier and work with them in areas providers. We work closely with vendors Technical Advisory Groups and apply best where improvements need to be made, if to proactively mitigate risks to our practice guidance to our own supply chain necessary. business from extended supply chains. sustainability initiatives.

Risk mitigation In requests for new business, FedEx includes supplier sustainability risk- FedEx is alert to the operational and screening criteria to evaluate new and reputational risks inherent in working potential general suppliers. Sustainability with a large, diverse and far-flung set screening criteria address performance in of suppliers. Across our business, we environmental, social, labor and human work proactively to identify and manage rights areas, including child and forced critical supply chain risks through robust, labor. enterprise-wide policies and procedures. We mitigate the most significant risks We look to continually build on our by focusing on those suppliers critically performance in this area, increasing by dependent to our business success. 30 percent year-over-year the number of Our Sourcing Organization’s Supplier supplier screening events that effectively Relationship Management team also evaluate potential global suppliers for their leads collaborative efforts to improve sustainability performance. the sustainability practices of critically dependent suppliers.

In FY16, we increased the number of supplier screening 30% events that included sustainability assessment criteria by increase more than 30 percent compared with FY15. 19 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Our diverse supplier base For more than two decades, FedEx has In the United States, we collaborate In FY16, we hosted the first FedEx Shared proactively sourced products and services with national and regional diversity Services Supplier Conference in Memphis, from small, minority- and women-owned organizations to promote the growth engaging more than 100 key suppliers. businesses across our supply chain. In of small and diverse businesses and to The event focused on providing suppliers FY16, we procured $9.2 billion in goods increase opportunities for FedEx to work with a deeper understanding of FedEx and services from diverse suppliers, a 37 with these enterprises. In the last fiscal and enabling them to better connect percent increase from FY15. The growth year, we collaborated with the Women’s their value proposition to ours. FedEx reflects an overall increase in supplier Business Enterprise National Council, the leadership shared valuable insights with spend across the enterprise, and internal National Minority Supplier Development suppliers on a wide array of topics that policies focused on diverse supplier Council, the U.S. Hispanic Chamber of included managing supplier diversity and spend. Commerce, the National Veteran-Owned sustainability. Business Association, the National Gay & The FedEx Services Sourcing Organization Lesbian Chamber of Commerce and the manages our enterprise-wide Supplier Small Business Administration, among Diversity program, aligning efforts to others. increase procurement spend with diverse suppliers globally.

Diverse Supplier Spend (BILLIONS) FY16 $9.2

FY15 FY14 $6.7 $6.5

Diverse Supplier Spend (BY CATEGORY)

Minority-owned businesses (%) Women-owned businesses (%) Other small businesses (%) FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 16% 14% 13% 7% 7% 11% 77% 79% 76% 20 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Independent service providers FedEx Ground, FedEx Express, FedEx In FY16, FedEx Ground alone engaged Freight and FedEx Custom Critical rely more than 6,450 businesses throughout on and utilize independent businesses the U.S. and Canada that employ nearly for certain pickup-and-delivery and 58,000 people and generate $4.4 billion in line-haul transportation services. These annual revenue for those businesses. contracts support small businesses and local economies, employing thousands of individuals across the United States and worldwide.

FedEx Ground Providing opportunities for small-business ownership since 1985 $4.4 6,456 billion Number of independent businesses Annual revenue earned by these independent businesses providing transportation, pickup and delivery services for FedEx Ground

32% $680,000 57,926 Percentage of minority- Average annual revenue Workers employed by these and women-owned per business independent businesses businesses 21 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

COMMUNITY INVESTMENT FedEx invests in programs that make life FedEx Cares: Our global better for people around the world and in investment strategy the communities where we live and do business. Our community engagement Last year FedEx committed to investing strategy mirrors corporate priorities and is $200 million in 200 communities around built on collaboration with trusted NGOs the world by 2020. We deliver this support and nonprofit organizations to deliver across five strategic areas. Our team long-lasting, measurable and meaningful member volunteers add to our efforts Read more about how FedEx delivers it impacts. We provide support through a and impact across these areas through forward through strategic, life-changing combination of financial contributions, in- selfless donation of their time. community investments. kind charitable shipping and volunteerism. In FY16, the first year of our commitment, we invested more than $46 million in charitable contributions, benefiting 97 communities globally. In addition, our team members contributed $9.42 million during our annual United Way campaign, and our marketing organization and FedEx Express contributed in-kind donations of $1.66 million. For more information on our new strategy and progress toward our 2020 goal, please go to the FedEx Cares website.

Goal Progress

$46.21m Invest $200 million in 200 communities around the world by 2020 97 communities 22 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

$40.53m Cash grants

$5.68m Corporate charitable $57.29 shipping million Charitable Contributions $9.42m Team member United Way in FY16 cash contributions

$1.66m Corporate marketing and Express in-kind

FY16 FedEx Cares Volunteering 93,175 20,875 500+ Volunteer hours Volunteers Communities participating 23 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Delivering for good Our global reach and unmatched logistics In addition, we provide in-kind shipping expertise allows us to deliver essential, to help community and nonprofit often lifesaving, resources when they are organizations that align with our values, needed most. We respond when disasters including 11,000 shipments from USO strike, teaming up with collaborators in to service members located around the relief and recovery efforts for communities world and more than 6,000 robots to and in need. from the FIRST World Championship in St. Louis, MO. In FY16, we donated more than $5.67 million in cash and in-kind assistance to In FY16, FedEx donated a total of 3.7 support humanitarian organizations. FedEx million pounds of charitable shipping to 50 assisted in relief efforts for 15 disasters, nonprofit organizations, delivering 83,611 including support for the migrant crisis in shipments. Europe, and delivery of relief following earthquakes in Japan and Ecuador and wildfires in Canada.

Rebecca Milner The First Responder Read more about how FedEx helped International Medical Corps make the impossible possible.

Impacts of Collaborations with Humanitarian Organizations

FY16 donations Total donations Supported since (cash and in-kind)1 (cash and in-kind)

American Red Cross 1995 $1.2 million $19.4 million

Heart to Heart International 1995 $673,000 $2.1 million

The Salvation Army 2001 $133,000 $6.2 million

Direct Relief 2003 $2.1 million $9.2 million

1 Support in FY16 includes an additional $1.6 million donated to other humanitarian organizations and causes. 24 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Sustainable transportation Often embattled by health, safety, logistical support, to develop practical Program (MAP). In Brazilian, Chinese, population, environmental and economic and scalable transportation solutions in Mexican, and Indian cities, MAP is issues, urban areas in developing emerging economies. improving public transit systems and economies are in critical need of driver safety, all while increasing mobility sustainable transportation options. In We support innovative solutions by and access to essential resources and response, FedEx helps by providing the World Resources Institute’s (WRI) services, such as jobs and schools, in an financial assistance, and technical and EMBARQ initiative, Mobility and Access environmentally responsible way.

EMBARQ PROGRAM IMPACTS:

Mexico – A MAP diagnostic tool was India – The Bangalore transit system Brazil – Six cities adopted a MAP adopted by the federal government incorporated more than 650 new, assessment tool that identifies ways to to evaluate public transport projects alternative fuel buses into their fleet at improve service in areas like security, seeking funding across components the recommendation of WRI, helping to comfort and operational performance. like environmental, safety and technical positively impact the health of the more This tool now is being adapted to new feasibility. More than 40 transit projects than 8.75 million people living in that city. locations, including Mexico City and are currently registered, representing 30 Beijing. cities and more than 15 million people.

China – FedEx hosted a delegation from the Beijing Municipal Commission of Transport (BMCT) to share information about zero emission vehicles and intelligent operations management. The delegation is part of an effort aimed to reduce transport-related emissions across China.

In FY16, more than 1.16 million people benefited from FedEx support of EMBARQ programs focused on 1.16 sustainable transportation. More than 3.4 million people million have benefited since 2010. 25 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Employment pathways In the U.S., many young people in by training people for in-demand jobs, and forums in FY16, reaching more than underserved populations lack access to especially jobs in tech and logistics, and 12,000 young people. During the year, we the skills and resources they need to helping individuals access employment also created an enterprise-wide FedEx enter the workforce. FedEx leverages its through credential programs. Employment Pathways team to engage reach to build pathways to success for each operating company in Employment these young adults across the country. Our commitment includes supporting Pathways programs. We invest in helping underserved youth leading nonprofits and programs such and their families navigate the college as the 100,000 Opportunities Initiative, application process, closing the skills gap for which we participated in four job fairs

Employment Pathways Programs Investments

FY16 Cash Investments

100,000 Opportunities Coalition $165,000

Hiring Our Heroes $100,000

LeadersUp $125,000

Dress for Success $325,000

National Urban League $350,000

INROADS $75,000

Minority Scholarship Organizations $500,000

Total $1,640,000

$1.64 FedEx invested more than $1.6 million in FY16 in programs that help provide pathways to employment. million 26 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Road safety Safety is one of our core values — within In FY16, FedEx and Safe Kids Worldwide Safe Kids distribute more than 60,000 and beyond our operations. FedEx sent copies of the Clifford the Big copies of the book at schools across the combines both financial support and our Red Dog book Clifford Takes a Walk, U.S. The Clifford book was also showcased road safety expertise in working with commissioned by FedEx and Safe at the United Nations during the launch of safety groups and coalitions to make Kids and published by Scholastic, to all the High Level Panel on Road Safety. The roads safer and protect pedestrians. Members of Congress and to the mayors launch was led by the UN Special Envoy Influential and impactful organizations we of the top 50 U.S. cities (by population).1 for Road Safety, and UN Secretary General work with include Safe Kids Worldwide, A letter was included in the distribution, Ban Ki-moon participated. the U.N. Global Road Safety Collaboration cosigned by the CEOs of FedEx Express 1 TM & © Scholastic Inc. SCHOLASTIC and associated logos (in support of Decade of Action for and Safe Kids Worldwide, advocating are trademarks and/or registered trademarks of Scholastic Road Safety), the International Road awareness of child pedestrian safety Inc. CLIFFORD THE BIG RED DOG and logo is a trademark of Norman Bridwell. All rights reserved. Assessment Programme (iRAP) and the measures. Global Alliance of NGOs for Road Safety. In FY16, we invested $2.67 million in road On International Walk to School Day, safety initiatives. October 7, 2015, FedEx volunteers helped

Safe Kids Impacts

FY16 Total

Children reached 906,422 14.9 million

Countries reached 10 10

Cities reached 421 748

Volunteers 845 16,845

Schools reached 2,334 29,702

We invested $2.67 million in road safety initiatives 906,000+ in collaboration with Safe Kids in FY16, reaching children more than 906,000 children in 10 countries. 27 2017 FedEx Global Citizenship Report Economy

Our Company Economy Environment People GRI

Global entrepreneurship Small and diverse businesses support job people with the professional and life skills in Latin America and the Caribbean, the growth and global innovation. FedEx has to succeed in business. In FY16, FedEx Middle East and Africa. The program collaborated with Junior Achievement for invested more than $1 million in these provides business skills training, technical more than 30 years to empower future programs, reaching approximately 5,000 assistance, leadership development and generations of global entrepreneurs. students globally. access to networks — ultimately leading Through programs such as the Access to business and economic growth. Portal, Access Awards/JA Company of the In FY16, we launched a new strategic Year Program, Enterprise without Borders collaboration with Vital Voices GROW and International Trade Challenge, Junior Fellowship, a one-year accelerator Achievement provides promising young supporting 65 women-owned businesses

Junior Achievement Program Impacts

FY16

Total investment $1 million+

Students mentored 5,315

FedEx volunteers 471

FedEx volunteer hours 5,801

We invested more than $1 million in Junior 5,300+ Achievement programs in FY16, mentoring more students than 5,300 students globally. 28 2017 FedEx Global Citizenship Report

Environment DELIVERING FOR A SUSTAINABLE WORLD

The Practical Environmentalist: Mitch Jackson "Practical sustainability requires leadership, service innovation and efficiency from FedEx team members. We also need smart collaboration with organizations such as Environmental Defense Fund and World Resources Institute EMBARQ. It’s about strategic and transformational stewardship…and requires a laser focus.”

Vice President of Environmental Affairs and Sustainability, FedEx Corporation 29 2017 FedEx Global Citizenship Report Environment

Our Company Economy Environment People GRI

ENVIRONMENTAL IMPACT The fuel that powers our transportation operations is also the main driver of In FY16, our global environmental footprint. FedEx Express set a 2025 goal to increase vehicle To reduce these impacts, we pursue comprehensive aircraft and vehicle fuel fuel efficiency 50 percent from a 2005 baseline, or efficiency programs combined with on- an additional 17 percent from a 2015 baseline, after site renewables where viable. Ambitious, ongoing global goals drive our activities meeting our 2020 goal five years early. and progress.

Engaging team members and customers helps us deliver on our environmental goals. Our EarthSmart® framework, Goals Progress established in 2009, helps us to integrate innovative sustainable practices into the way we work and the services we offer Reduce aircraft emissions intensity 30% from a 2005 baseline 22% reduction from a 2005 our customers. Through EarthSmart, by 2020 baseline FedEx recognizes products, services, physical assets and initiatives that set new standards for stewardship, and strives to empower our team members The first delivery of commercially and customers to make responsible Obtain 30% of jet fuel from alternative fuels by 2030 viable and available alternative choices every day. FedEx team members fuels is anticipated in 2019 are encouraged to lead grassroots sustainability efforts in their workplaces to bring EarthSmart to life in personal ways. Increase FedEx Express vehicle 35% improvement We cooperate with government agencies fuel efficiency 50% from a 2005 baseline by 2025 from a 2005 baseline and industry groups to support research and policy changes that accelerate sustainability in our sector, and work with our suppliers to pioneer solutions to environmental challenges.

Seek LEED (Leadership in Energy and Environmental Design) 2 new 12 LEED certified certification on all new U.S. FedEx in FY16 facilities in total Express buildings

Expand on-site energy generation and continue to procure 3 new 18 on-site solar renewable energy for facilities in FY16 installations in total 30 2017 FedEx Global Citizenship Report Environment

Our Company Economy Environment People GRI

Environmental management Our Environmental Policy guides FedEx sustainability leader accountable for sustainability officer, the Vice President of operating companies in managing performance. Additionally, enterprise- Environmental Affairs and Sustainability. environmental performance. wide Sustainability Impact Teams (SITs) More information about our global covering global Vehicles, Facilities, Air citizenship governance is available here. Our Environmental Management System Operations, Customer Solutions , IT, (EMS) is based on key elements of the EarthSmart, Data/Reporting and Sourcing international standard ISO 14001. Each allow our operating companies to share FedEx operating company identifies and synergies, ideas and innovations. The works to reduce relevant environmental SITs and operating companies’ senior impacts, under the direction of a senior sustainability leaders report to our chief

Global Citizenship Governance Structure

FedEx Enterprise Sustainability Council (FESC)

Vice President Corporate Environmental Affairs Sustainability & Sustainability Sustainability Stakeholder FedEx Corporation Impact Teams Engagement CHAIR — FESC

Environmental & Environmental & Environmental & Environmental & Sustainability Sustainability Sustainability Sustainability Leadership Leadership Leadership Leadership FedEx Express FedEx Office FedEx Freight FedEx Ground 31 2017 FedEx Global Citizenship Report Environment

Our Company Economy Environment People GRI

ENERGY AND GHG EMISSIONS Moving customer packages and freight FY16 performance In FY16, we made progress toward via aircraft and ground vehicles is our acquiring more complete scope 3 Our aircraft fleet has achieved a 22 main operating activity. Our efforts emissions information from suppliers. As percent reduction in emissions intensity to decouple business growth from a result, our scope 3 emissions increased since 2005, continuing toward our goal emission increases focuses on improving year over year, primarily as a result of a 30 percent reduction by 2020. In efficiencies in our vehicle and aircraft of an increase in interline air carriers' FY16, our FedEx Express surface vehicle fleets and buildings, providing alternative reporting of their emissions data allocated fleet set a new fuel efficiency goal of a solutions for customers, working to specifically for FedEx packages and 50 percent improvement by 2025 from discover new technologies for our assets, freight. a 2005 baseline — or an additional 17 and advocating for sound public policy. percent from a 2015 baseline — after We are piloting new technologies such as meeting our 2020 goal five years early. low-emission surface vehicles and planned alternative jet fuels. We are proud of our Our business continued to grow in progress to date and will continue to FY16 — consolidated revenue increased pursue these challenging goals. by 6 percent, average daily package volumes at FedEx Express and FedEx Ground increased by 6 percent and FedEx Freight less-than-truckload (LTL) volume increased by more than 3%. However, our scope 1 and 2 absolute emissions remained nearly flat, resulting in a 5.7 percent greenhouse gas (GHG) emissions intensity decrease based on consolidated revenue.

Our GHG emissions intensity decreased by 5.7% 5.7% based on consolidated revenue. decrease 32 2017 FedEx Global Citizenship Report Environment

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Direct and Indirect Energy Consumption (terajoules)

FY141 FY151 FY16

DIRECT ENERGY CONSUMPTION (Scope 1)

Aircraft fuel

Jet fuel 154,661 157,652 156,960

Vehicle fuel2

Diesel 34,684 35,703 37,167

Gasoline 2,973 3,254 3,415

Propane 834 756 848

Liquid natural gas (LNG) and compressed natural gas (CNG) 5 14 20

Facility use

Natural gas 5,273 5,057 4,257

Heating oil 13 19 9

TOTAL DIRECT ENERGY CONSUMPTION 198,443 202,455 202,676

INDIRECT ENERGY CONSUMPTION (Scope 2)

Facility electricity use

Purchased electricity 6,267 6,356 6,647

TOTAL DIRECT AND INDIRECT ENERGY CONSUMPTION 204,710 208,811 209,323

OTHER INDIRECT ENERGY CONSUMPTION (Scope 3)

Contracted transportation 26,848 29,650 33,908

TOTAL OTHER INDIRECT ENERGY CONSUMPTION 26,848 29,650 33,908

TOTAL ENERGY CONSUMPTION (TJ) 231,558 238,461 243,231

Consolidated Revenue ($M) $45,567 $47,453 $50,365

TOTAL ENERGY INTENSITY (TJ/$M) 5.08 5.03 4.83

1 Restated from 2016 Global Citizenship Report. 2 Includes a small amount of fuel used for emergency generators at some facilities. 33 2017 FedEx Global Citizenship Report Environment

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Direct and Indirect GHG Emissions (CO2e metric tons)

FY141 FY151 FY16

DIRECT ENERGY CONSUMPTION (Scope 1)

Aircraft fuel

Jet fuel 10,498,594 10,701,617 10,654,641

Vehicle fuel2

Diesel 2,429,738 2,514,443 2,603,841

Gasoline 206,076 225,521 236,429

Propane 45,661 43,775 48,619

Liquid natural gas (LNG) and compressed natural gas (CNG) 201 769 1,000

Facility use

Natural gas 269,610 254,777 214,676

Heating oil 1,024 1,292 659

TOTAL DIRECT EMISSIONS 13,450,904 13,742,194 13,759,865

INDIRECT ENERGY CONSUMPTION (Scope 2)

Facility electricity use

Purchased electricity 960,079 970,981 958,526

TOTAL DIRECT AND INDIRECT EMISSIONS (Scope 1 & 2) 14,410,983 14,713,175 14,718,391

OTHER INDIRECT ENERGY CONSUMPTION (Scope 3)

Contracted transportation 1,843,803 2,023,432 2,336,731

Team member business travel3 45,758 50,897 63,944

TOTAL REPORTED SCOPE 3 EMISSIONS 1,889,561 2,074,329 2,400,675

TOTAL GREENHOUSE GAS EMISSIONS (Scope 1, 2 & 3) 16,300,544 16,787,504 17,119,066

TOTAL EMISSIONS INTENSITY (Scope 1, 2 & 3) (metric tons CO2e / $M 357.73 353.77 339.90 revenue)

1 Restated from 2016 Global Citizenship Report. 2 Includes a small amount of fuel used for emergency generators at some facilities. 3 FY14 and FY15 only include commercial air travel. FY16 also includes car rental. 34 2017 FedEx Global Citizenship Report Environment

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Emissions Intensity

FY14 FY15 FY16

Consolidated Revenue ($M) $45,567 $47,453 $50,365

TOTAL EMISSIONS INTENSITY (Scope 1 & 2) (metric tons CO2e / $M revenue) 316.26 310.06 292.23

TOTAL EMISSIONS INTENSITY (Scope 1, 2 & 3) 357.73 353.77 339.90 (metric tons CO2e / $M revenue)

FY16 Total Direct and Indirect Emissions (Scope 1 and 2): GHG Equivalency Breakdown (metric tons)

Carbon dioxide (CO2) 14,573,964

Methane (CH4) 6,967

Nitrous oxide (N2O) 137,460

TOTAL CO2e 14,718,391

Other Significant Air Pollutants (metric tons)

FY14 FY15 FY16

Nitrogen oxides (NOx) N/R 317,314 317,009

Sulfur oxides (SOx) 20,306 20,700 20,623

Particulate matter (PM10) 3,407 3,0371 3,096

1 Restated from 2016 Global Citizenship Report. 35 2017 FedEx Global Citizenship Report Environment

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Combined Impact of Our Energy Saving Initiatives

To achieve emission reductions, we results. In FY16, the combined impact of implement a combination of fuel and our largest programs avoided more than energy saving initiatives which drive two million metric tons of CO2e.

Energy Saved FY15 CO2e Emissions Avoided FY15 Terajoules FY16 Metric tons FY16

On-site solar electricity 41 4,613 generation 61 7,027

Building lighting retrofits 732 140,275 771 149,789

FedEx Fuel Sense (jet fuel) 10,625 721,239 11,600 787,447

FedEx Express aircraft fleet 6,399 427,000 modernization 10,208 686,169

FedEx Express Reduce, 3,048 214,746 Replace, Revolutionize 3,140 217,549 vehicle efficiency

FedEx Freight intermodal 2,943 207,301 rail usage 3,218 226,744

TOTAL FY15 – 23,788 TOTAL FY15 – 1,715,174

TOTAL FY16 – 28,998 TOTAL FY16 – 2,074,725

FedEx avoided more than 2 million metric tons of CO2e through 2 million fuel and energy saving initiatives across the enterprise — metric tons equivalent to the carbon sequestered by more than 1.9 million acres of U.S. forest in one year.1 2 of CO e 1 Calculated using the EPA Greenhouse Gas Equivalencies Calculator 36 2017 FedEx Global Citizenship Report Environment

Our Company Economy Environment People GRI

AIRCRAFT EFFICIENCY To reduce the cost of fuel use and associated GHG emissions, we’ve FY16 Aircraft Efficiency (1) implemented efficiencies in flight CO2e metric tons operations through our global FedEx® Fuel Gallons saved emissions avoided Sense program and (2) replaced many of our older airplanes with more fuel-efficient models. These two initiatives saved more than 153 million gallons of jet fuel and avoided almost 1.5 million metric tons of CO2e emissions in FY16 — equivalent to FedEx Fuel the CO2 emissions generated by more Sense savings than 150,000 homes in one year. In 81,577,538 787,447 addition, we are actively exploring viable alternative fuels to help power our jets.

FedEx Fuel Sense identifies efficiencies across our aviation operations. Front-line team members, expert representatives FedEx Express from various departments, and our dedicated Fuel Management Office aircraft fleet all generate ideas and contribute to a modernization companywide culture of fuel-saving savings 71,787,859 686,169 behavior.

Many of our retired aircraft are donated to college aviation programs, airport fire agencies, museums and nonprofits such as Remote Area Medical, which provides free, quality health care to people in need in remote areas of the United States and around the world. TOTAL

153,365,397 1,473,616

Alternative fuels progress In FY15, we entered into an agreement the fuel production facility. In 2019, FedEx continue to collaborate with government with Colorado-based Red Rock Biofuels to expects to utilize the first 6 million gallons agencies, academia and alternative-fuel purchase 6 million gallons of alternative jet of this jet fuel on-site. suppliers in search of low-emission fuels fuel on-site — half Jet A and half biofuel that can be produced competitively and at — meeting current aviation regulations Benefits of alternative fuels include scale. We do not assume that all biofuels and ultimately producing at least 48 million expanding and/or diversifying energy are beneficial and consider environmental gallons over an eight-year period. sources, reducing emissions, supporting impacts before including them in our fuel economic development, often in rural mix. Over the past year, delays have occurred communities, and the potential to which have impacted the construction of promote price and supply stability. We 37 2017 FedEx Global Citizenship Report Environment

Our Company Economy Environment People GRI

VEHICLE EFFICIENCY With more than 180,000 owned and FY16 Vehicle Efficiency contracted vehicles, our global ground transportation operations continue to offer CO2e metric tons potential for efficiency gains. In FY15, we Gallons saved emissions avoided delivered on this potential, by exceeding our 2020 goal of improving FedEx Express vehicle fuel use efficiency by 30 percent from 2005 levels. To meet our new goal of FedEx Express a 50 percent fuel efficiency improvement Reduce, Replace, by 2025, or 17 percent improvement from a 2015 baseline, we will continue to apply Revolutionize 21,433,384 217,549 proven innovations — optimizing truck routes, upgrading our vehicle fleet to more efficient models, instilling good driving habits and exploring alternative fuels and technologies. FedEx Freight In FY16, through the FedEx Express Intermodal Rail 21,961,905 226,744 Reduce, Replace, Revolutionize strategy and intermodal rail shipping at FedEx Freight, we saved more than 43 million gallons of fuel and avoided more than 444,000 metric tons CO2e. This is equivalent to the carbon sequestered by more than 400,000 acres of U.S. forest in one year. TOTAL 43,395,289 444,293

Through the FedEx Express Reduce, Replace, Revolutionize 444,000 strategy and intermodal rail shipping at FedEx Freight, we metrics tons saved more than 43 million gallons of fuel and avoided more than 444,000 metric tons CO2e in FY16. CO2e 38 2017 FedEx Global Citizenship Report Environment

Our Company Economy Environment People GRI

Our first priority is to reduce overall drive education program provides both installed a compressed natural gas (CNG) mileage by optimizing routes. We match classroom and practical sessions which fueling station and purchased more than vehicles to journey based on load volume teach tips that anyone can use to drive in 100 CNG tractors in early FY17. Read more and route length, and plot the shortest an environmentally friendly way. about this initiative here. routes. We also apply our logistics expertise to reduce “empty” miles when The program also identifies routes for Looking ahead, we believe that wider trucks travel with less than optimal transition to intermodal rail, which is more adoption of alternative-fuel and advanced loading. fuel-efficient than roads, and opportunities technology vehicles will play a critical to reduce “last-mile” deliveries by offering part in reducing global GHG emissions. We employ efficient technologies such more customer pickup locations. Specifically, we are exploring greater use as automatic transmissions, low-rolling- of electric and fuel cell powered vehicles, resistance tires, trailer skirts that minimize When replacing any surface vehicle, we among other advanced technologies, drag and diagnostic equipment. We also upgrade to cleaner, more efficient models along with alternative-fueled vehicles. help drivers improve their efficiency by wherever possible. In FY16, we added However, the current environment of reducing idle time, controlling speed and more than 800 alternative-fuel/technology low fuel prices could make investment in using progressive shifting techniques. vehicles to our fleet. At our FedEx Freight expanding alternative fuel refining capacity For example, our international Eco- Oklahoma City Service Center, we more challenging for suppliers.

Global Alternative Fuel Vehicle Fleet Vehicle type FY14 FY15 FY16

Hybrid 397 447 527 Read more about how FedEx is blazing a trail for efficient and alternative fuels. Electric 404 1,176 1,817

Compressed or liquefied 911 natural gas (CNG/LNG) 122 1952

Liquefied petroleum gas 69 3 (propane) 92 144

Hydrogen 40 55 41

TOTAL FY14 1,001

FY15 1,8924

FY16 2,724

1 Restated from FY14 Global Citizenship Report. 2 Does not reflect 75 CNG tractors added to fleet at FedEx Freight Oklahoma City Service Center in FY17. 3 Total does not include propane-powered forklifts. 4 Includes off-road electric vehicles in service but not reported in prior years. 39 2017 FedEx Global Citizenship Report Environment

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FACILITY EFFICIENCY FedEx operates more than 5,600 facilities, FY16 Facility Efficiency including air and ground hubs, local stations, freight service centers and retail CO2e metric tons sites. At each location, our operating KWh saved emissions avoided companies deploy efficiency initiatives and encourage team members to adopt energy-saving habits. Lighting retrofits are a priority, and in FY16 we upgraded 20 facilities, bringing the total to 1,068 since the program began in 2007. Collectively, these installations have saved more than Building lighting 925 million KWh of electricity since 2007. retrofits 214,149,588 149,789 The FedEx Freight EarthSmart designated GREEN Site internal certification program recognizes sites that complete the applicable actions within the GREEN Site level checklist to reduce their location's Facilities Overview environmental impact. These efforts are led by Local Environmental Action Facilitators (LEAFs) who educate and Total number of FedEx Express encourage team members and monitor ISO 14001 certified sites Green Site status. FedEx Ground takes a similar approach. Its EarthSmart Champion FY14 FY15 FY16 program aims to boost employee 51 52 521 participation in sustainability activities at the facility and district level. Each on-site champion is responsible for completing an EarthSmart building checklist of specific Total number of FedEx Freight sustainability initiatives. GREEN site-designated facilities FY14 FY15 FY16 219 228 240

Total number of FedEx Ground EarthSmart Champion sites FY14 FY15 FY16 0 27 34

1 In addition, one FedEx Supply Chain location is ISO 14001 certified. 40 2017 FedEx Global Citizenship Report Environment

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Solar energy generation and procurement On-site renewable energy technologies, include three new solar energy systems power. In FY16, we worked with the including solar and fuel cells, power that came online in FY16, collectively Business Renewables Center, a member- efficiency savings at FedEx facilities. generating almost 1 million KWh of clean based platform that streamlines and Eighteen of our facilities now generate energy. accelerates corporate purchasing of off- renewable energy — reducing our GHG site, large-scale wind and solar energy, to emissions and operating expenses, while In addition, we are exploring options to develop a viable, cost-effective strategy. demonstrating industry leadership. These increase purchases of off-site renewable

Solar Energy Generation

Number of energy systems companywide

FY16 FY15 18 FY14 15 9

Solar electricity generated on-site (KWh)

FY15 FY16 FY14 11,260,165 16,986,893 8,163,838

Emissions avoided by solar sites (metric tons CO2e)

FY16 FY15 7,027 FY14 4,613 3,145 41 2017 FedEx Global Citizenship Report Environment

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Delivering industry progress Government and industry organizations industry groups to reach consensus on customers to generate clean, reliable that FedEx works with to improve the international standards and policies in on-site power without threat of punitive transportation sector’s environmental support of a safe, efficient, economically utility fees on electricity generated performance include: sustainable and environmentally from the on-site resource responsible civil aviation sector. The • U.S. Environmental Protection Agency, U.S. Environmental Protection Agency Longer term, FedEx supports the U.S. SmartWay® Program (EPA) may align with the new ICAO federal government’s goal to reduce standards and implement them for energy dependence, including cutting oil • European Express Association U.S.-manufactured commercial aircraft, imports by 50 percent from 2012 levels affecting future new designs for aircraft by 2020. We believe the path to achieving • U.S. Federal Aviation Administration in 2020 and newly produced aircraft in this includes increasing the nation’s use 2028. FedEx supported the development of energy-efficient vehicles powered • U.S. Department of Energy, National of a CO2 emissions standard, the ICAO by electricity and alternative fuels, as Highway Traffic Safety Administration Committee on Aviation Environmental FedEx is doing in its own fleet. We also and National Clean Fleets Partnership Protection’s recommended standard, and support domestic energy production, such its anticipated adoption by the U.S. EPA as delivering wind turbine parts using • International Air Transport Association into national law. specialized equipment. and Airlines for America The EPA has also strengthened medium- • American Trucking Associations and heavy-duty vehicle efficiency standards through additional greenhouse • International Civil Aviation Organization gas and fuel efficiency regulatory rulemaking. FedEx was actively involved • Sustainable Purchasing Leadership in the EPA’s stakeholder engagement Council process and provided comments to the proposed GHG Emissions and Fuel • Rocky Mountain Institute Business Efficiency Standards for Medium and Renewables Center Heavy Duty Engines and Vehicles — Phase 2 regulation. We believe this • Securing America's Future Energy presents an opportunity to further (SAFE) improve fuel efficiencies and lower GHG emissions from the national fleet using a • The Electrification Coalition comprehensive and harmonized approach. In fact, FedEx was the first transportation Regulatory developments logistics company to call upon the federal government to develop these standards. In FY16, two major regulatory Other proposed regulatory changes which developments were underway with FedEx supports include: Jason Mathers significant implications for FedEx The Sustainability Advocate operations. The United Nations • The 33 Foot Trailer Legislative Initiative, International Civil Aviation Organization which would permit twin 33-foot Read more about how FedEx and Environmental Defense Fund work (ICAO) began the approval process trailers on federal interstate highways, together to help make sustainability for new global aircraft CO2 emissions improving safety, and reducing fuel good for business. standards focused on large aircraft consumption and associated GHG weighing over 60 metric tons, which emissions account for more than 90 percent of international aviation emissions. • California’s AB1520, which would ICAO works with member states and extend current law to enable business 42 2017 FedEx Global Citizenship Report Environment

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RESPONSIBLE Perfect Fit MATERIALS USE Packaging Our most-used material is cardboard size packaging and work with suppliers packaging provided to our customers for to include recycled content in FedEx Helping customers find their deliveries and to secure shipments packaging whenever possible. Other during transit. To avoid wasteful returns materials we use in shipping include the right-fit packaging and replacements, we strive, first and bubble wrap, plastic air pillows, chipboard, for their products saves foremost, to ensure that packages are Tyvek envelopes and packing tape. them money and reduces delivered without damage. We also encourage customers to use the right- our environmental footprint. Our Packaging Services Planning & Materials Consumption (metric tons) Engineering group worked on 11 such right-size FY14 FY15 FY16 packaging projects in Packaging 49,952 54,342 53,859 FY16. For example, in

Paper 25,1201 24,577 26,151 collaboration with a leading car manufacturer, we Other operational materials 16,427 28,929 21,728 redesigned a car bumper Total materials consumption 91,499 107,848 101,738 package, reducing its size 1 Restated from FY14 Global Citizenship Report. by 65 percent and the amount of corrugated

FY16 % of recycled content of materials used material used by 29 percent. This reduced their Packaging 48% average shipping cost by Paper 6% $15.34 per package. Other operational materials 40%

Total materials consumption 35% 43 2017 FedEx Global Citizenship Report Environment

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FedEx Office paper stock for copy and FedEx Office procurement policy requires Other operational materials we use print services is our next largest volume vendors to apply responsible forest include maintenance supplies for our of materials used. We stock clearly labeled management practices and sets standards aircraft and vehicle fleet. We reuse sustainably sourced paper options, which for recycled content. materials as many times as possible and we encourage customers to choose. The try to avoid using virgin materials, opting instead for remanufactured products.

Certification 81% Forest Stewardship Council

Sustainable 17% Paper Other third-party1 1 Includes SFI/PEFC, Tree Free, ISO 14001, Green Seal, Wind Power and at FedEx Office Carbon Neutral

2% Noncertified

of paper at FedEx Office is FSC or other third 98% party-certified sustainable 44 2017 FedEx Global Citizenship Report Environment

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FY16 Waste and Recycling Streams1 (metric tons)

Sent to % sent to Waste type Total waste recyclers recyclers

Solid waste 240,917 169,067 70%

Regulated non-hazardous waste 5,981 4,720 79%

Hazardous waste 828 597 72%

Universal waste2 66 66 100%

Electronic waste 767 767 100%

1 Refers to data collected in North America and U.K. Waste at many of our facilities is difficult to track because it is collected by haulers contracted by a landlord or local municipality, or commingled with other tenants’ waste in shared facilities such as airports and strip malls, and as such has not been included in this data. 2 Universal waste encompasses certain hazardous waste items, including batteries and mercury-containing lamp bulbs, as defined by U.S. EPA regulations.

Waste and Recycling1 (metric tons)

FY142 FY153 FY16

Total reported waste 209,889 223,186 248,559

Total reported waste sent to recyclers 148,637 153,956 175,217

% sent to recyclers 71% 69% 70%

1 Refers to data collected in North America and U.K. 2 Restated from FY14 Global Citizenship Report. 3 Restated from FY15 Global Citizenship Report. 45 2017 FedEx Global Citizenship Report Environment

Our Company Economy Environment People GRI

Customer outreach

Customers can choose from our selection 75,000 metric tons CO2e. Since the signage improved the visibility of of environmentally responsible packaging program began, it has cumulatively offset sustainable packaging products. and digital document solutions to reduce 342,000 metric tons CO2e. their footprint beyond the environmental We collaborate with our suppliers to benefits provided by our transportation FedEx Office® Print Online Corporate increase their focus on sustainability, services. platform helps our commercial customers and our efforts are led by our Supplier print closer to their point of need to avoid Relationship Management team, which Under the EarthSmart umbrella, FedEx unnecessary shipping. Using this system has a full-time team member dedicated Express was the first global express eliminated more than 70 million miles of to improving supply chain sustainability. transportation company to offer a shipping-related transit, avoiding up to 600 For more information about our supplier carbon-neutral envelope shipping program metric tons CO2e in FY16. purchasing policies, please see the at no extra charge to the customer, Economy section. offsetting carbon emissions generated In FY16, we enhanced the promotion and during shipment of branded FedEx visibility of environmentally responsible envelopes since 2012. In FY16, FedEx products at 50 customer-facing FedEx Express shipped over 190,000,000 carbon- Office locations in Atlanta, Dallas, Seattle neutral envelopes, offsetting almost and Los Angeles. At those locations,

FedEx Express shipped over 190 million 190 carbon-neutral envelopes in FY16, offsetting million almost 75,000 metric tons of CO2e.

Compliance FY16 Compliance Summary FedEx has robust processes to prevent spills and comply with all environmental FY14 FY15 FY16 regulations in every country where we operate. When spills do occur, we Number of ISO 14001 certified sites worldwide 51 52 52 follow comprehensive response plans to minimize any harm to the well-being of Number of significant spills1 124 119 132 team members, local communities and the environment. Number of monetary violations from external agencies 2 8 3

Total amount of monetary violations $15,100 $92,884 $15,250

1 Defined as spills of hazardous materials like oil, fuel and chemicals that are reportable to the appropriate environmental regulatory agency, such as the U.S. National Response Center. 46 2017 FedEx Global Citizenship Report

People DELIVERING FOR OUR TEAM

The Motivator: Bobbi Wells "Too often, women choose careers in fields where they see more women, which limits the scope of what’s possible for them. From my father, I learned not to be afraid to reach higher. In FedEx, I found a company that values women leaders and diversity of all kinds — that knows we are stronger because of our diversity.”

Vice President of Aviation Safety & Airworthiness, FedEx Express 47 2017 FedEx Global Citizenship Report People

Our Company Economy Environment People GRI

THE PURPLE PROMISE The Purple Promise is a commitment that Recognizing our people is central to Award, 19 team members were honored all team members make when they join the FedEx culture. In FY16, we honored for their extraordinary efforts and FedEx: To make every FedEx experience team members in the areas of customer unselfish acts characterized by dedication, outstanding. The promise is more than just service, quality-driven management, acts collaboration and innovation. words. It is a comprehensive commitment of bravery and compassion and more. that unites all aspects of our business. Through our Purple Promise Chairman’s

OUR COMMITMENT TO SAFETY As we move millions of packages and Safety performance In FY16, our LTIR improved by more pallets of freight around the globe each FedEx reports two key safety metrics than 7 percent from FY15. We attribute day, the health and safety of our team in order to monitor trends and improve this to greater participation by FedEx members, contracted service providers performance: Express team members in light-duty and communities are our top priorities. programs that helped improve workforce We continually strive to improve safety • Lost Time Injury Rate (LTIR): Covers readiness and favorably affected lost time at FedEx through operational standards, nonfatal injuries and work-related injury rates. Our Preventable Recordable educational initiatives, investing in new illnesses that cause a team member to Vehicle Accident Rate rose by more than technologies and reinforcing our safety lose work days 3 percent from FY15. This is partly due to culture in our operations. improved data reporting. • Preventable Recordable Vehicle Accident Rate: Measures accidents that result in preventable fatalities or injuries

Global Safety Data

FY14 FY15 FY16

Lost Time Injury Rates, per 200,000 hours worked1 3.98 3.83 3.53

Preventable Recordable Vehicle Accident Rates, per 1 million miles driven2 0.3033 0.293 0.304

1 Global LTIR data is based on definitions from the United States Occupational Safety and Health Administration (OSHA). 2 The Preventable Recordable Vehicle Accident Rate incorporates employees and contracted service providers operating under FedEx Ground, FedEx Freight Canada and FedEx Custom Critical. 3 The Preventable Recordable Vehicle Accident Rate for FY14 has been revised down from previous reports due to previously overstated data. 48 2017 FedEx Global Citizenship Report People

Our Company Economy Environment People GRI

Safety programs Advanced Each FedEx operating company develops tailored approaches to address the specific Technologies Keep safety needs of their business. In FY16, FedEx Express implemented a new Safety Team Members and Management System for its air carrier business, and trained thousands of global Communities Safe team members, achieving 100 percent participation. FedEx invests in advanced technologies to enhance In FY16, FedEx Express launched the Safety Above All II program designed to safety, including: assist front-line operations management to reduce lost time injuries. The program • Enhanced Flight Vision focuses on five areas: Systems (EFVS) that

• Safety training for new hires improve the ability to land planes in low-visibility • Safety training for operations conditions Saúl Alveano management The Mobilizer • Advanced collision • Safety interventions for at-risk team Read more about how FedEx shares mitigation systems that expertise to help World Resources members Institute save lives in the world's warn drivers and can apply megacities. • Location interventions for at-risk sites brakes if necessary • Integration of new training technology • Enhanced lane departure

Following an analysis of the causes warning and traction of vehicle accidents, FedEx Express control technology that also launched a Danger Zone Accident keep vehicles safely in Reduction plan in FY16, outlining procedures for reducing accidents while their lanes drivers enter, park or depart from a location. FedEx Ground implemented a new safety coaching program where trained experts observe the body mechanics of new package handlers to help them modify behaviors before they become bad habits. 49 2017 FedEx Global Citizenship Report People

Our Company Economy Environment People GRI

Building a safety culture Collaborating on safety Movement of hazardous Through global Safety Awards, we honor standards materials team members who show exemplary To share best practices for improving FedEx takes seriously the risks associated safety performance and leadership. safety outcomes across the industry, with transporting hazardous materials. Regionally, our operating companies FedEx works with the following U.S. Through equipment and technology implement safety award programs and associations: enhancements and the implementation competitions that foster pride in safe work of safety procedures, we continually work habits. At the 2016 National Truck Driving • Airlines 4 America to reduce risks within our network. We Championships (NTDC), four FedEx drivers work closely with regulators and industry finished as National Champions and one • American Society of Safety collaborators to find safe solutions for driver took home National Rookie of the Engineers (ASSE) shipping materials such as lithium ion Year. Learn more about our winners. batteries. We also provide educational • American Trucking Associations (ATA) materials, tools and technology to Also in FY16, FedEx Express was honored allow customers to mitigate their own as one of the top three performers in the • American Industrial Hygiene safety risks during the transportation of safety category at the American Trucking Association potentially hazardous products. In FY16, Associations (ATA) annual banquet. FedEx Freight implemented a new safety • Commercial Vehicle Safety Alliance process help to ensure timely follow-up of any Road Side Inspection (RSI) violations • COSTHA (Council on Safe related to hazardous materials. Transportation of Hazardous Articles)

• Federal Aviation Administration (FAA)

• Federal Motor Carrier Safety Administration

• Flight Safety Foundation

• The MITRE Corporation 50 2017 FedEx Global Citizenship Report People

Our Company Economy Environment People GRI

TEAM MEMBER QUALITY OF LIFE In line with our People-Service-Profit Saving for the future philosophy, our company’s success and Team Members We encourage eligible U.S. team the well-being of our team members are members to save for retirement through closely connected. FedEx invests in health Engaged in Other our pension and 401(k) plans. In FY16, care and retirement benefits, and well- 93 percent of U.S.-based team members Health and Well- being programs, to enhance the quality participated. To encourage greater of life of our team members so they can retirement plan take-up, we held 34 Being Programs, perform at their best. benefits fairs and made personal contact with nearly 18,000 team members and FY16 Health and wellness spouses in FY16. We also established a Retirement Education and Outreach Group • 8,336 in Well-Being FedEx offers health programs and to expand outreach activities in FY17. competitive health benefits for eligible Coaching, a 120 percent full-time and part-time team members. We increase from FY15 cover most healthcare costs for our U.S. team members, including medical, dental • 696 in the Innergy and vision coverage. Team members Healthier Weight Program can also access a 24-hour nurse line, integrated personal health teams and a • 922 in the QuitNet medical decision support group free of charge. Tobacco Cessation Programs FedEx also provides short-term and long- term disability, life insurance and voluntary plan benefits to eligible team members. In addition, FedEx invests in wellness programs, including nutrition education, stress-management classes, access to health club services and more.

In FY16, 88,380 team members globally took part in our Healthways Well-Being Program, which includes one-on-one coaching and practical tools to support smart health choices. We also offer a Work-Life Balance Program to all U.S. team members as well as FedEx Office Canadian team members. Team members can access specialists and online resources for advice and support on common life events and challenges including parenting, child care and financial matters. In FY16, the program had more than 103,000 active registered users. 51 2017 FedEx Global Citizenship Report People

Our Company Economy Environment People GRI

TEAM MEMBER CAREER DEVELOPMENT Our team members help FedEx grow • Leadership Training Programs: Our In FY16, we retained 88 percent of as a company and we are committed to EXCEL DRIVE and Global Leadership our full-time U.S. team members, up 8 helping them grow their careers. We have Corps programs provide networking percent from FY15. Globally, FedEx hired a strong track record in career training and development opportunities to a total of 143,327 full-time and part-time and development programs, promoting current and prospective leaders across team members in FY16, while 128,723 managers from within and engaging the company. left the company in this period. The largest team members in meaningful dialogue to portion of turnover came from hourly improve our business. • Tuition Assistance: FedEx provides workers, including package handlers. tuition assistance to full-time and part- Each year, our operating companies time team members to support their conduct annual surveys for team professional growth. In FY16, FedEx members to provide candid feedback on provided over $15 million in tuition issues important to their work, including assistance across the enterprise. training, benefits and compensation. We also encourage team members to provide • Performance Coaching: All employees direct feedback to management through in the U.S. received performance and formal and informal open-door policies. career development reviews and/or discussions in FY16. Training, education and coaching Recruitment and retention Investing in our team members is good business, promoting loyalty, retention We work hard to earn and maintain and the skills development essential to the loyalty of our team members. Our our future growth. In FY16, employees recruitment and retention strategy seeks received an average of 20.08 hours of to build an employment culture that formal training, compared to 16.57 hours reflects the goals and ambitions of our in FY15. team members and the communities that we serve. We work to attract and We also offer a variety of development retain top candidates, including women, opportunities to our team members minorities and veterans. This includes and future FedEx leaders, including the joining local outreach and community following programs: events, attending job fairs, participating in trade school education sessions and more. • The FedEx Learning Center: Through We prioritize promoting team members this premier online team member from within and regularly post positions training platform, team members internally before advertising them publicly. choose from nearly 17,500 courses, self-enroll, and track their progress over time. 52 2017 FedEx Global Citizenship Report People

Our Company Economy Environment People GRI

DIVERSITY AND INCLUSION Our business success relies on providing To ensure that we maintain progress, initiatives. We also collaborate with exceptional service to an increasingly each operating company has a Diversity diverse organizations including minority diverse customer base. We see the and Inclusion team to help embed and women-focused groups, universities, diversity of backgrounds, perspectives and multicultural programs and inclusion veterans’ organizations and community experiences that our team members bring practices in our workplace culture. All groups to support our initiatives. to the company as essential to fostering Diversity and Inclusion teams participate exceptional business results. To support in a Diversity & Inclusion Corporate an inclusive workplace culture, we are Council that meets monthly to share best committed to the education, recruitment, practices and collaborate on companywide development and advancement of diverse team members worldwide.

U.S. 51% Workforce Caucasian Diversity 28% Black/African American

14% Hispanic/Latin

4% Asian

2% Other

1% American Indian/Alaskan Native 53 2017 FedEx Global Citizenship Report People

Our Company Economy Environment People GRI

U.S. Generational Diversity 2016 29% 41% 30% Under 30 years of age 30—50 years of age Over 50 years of age

Diverse recruitment and retention FedEx continually strives to embed In FY16, this included attending job fairs launched a new employment strategy to diversity and inclusion practices into our at historically black colleges, sponsoring focus on recruiting interns from historically recruitment and retention programs. To women’s associations, working with black colleges, universities and diverse support our diverse recruitment efforts, veteran organizations and holding diversity organizations. FedEx collaborates with organizations and inclusion events. For example, FedEx serving women, minorities and veterans Ground held a Disability Mentoring Day groups. in its Pittsburgh headquarters, hosting students with disabilities. FedEx Services

Global Headcount by Gender

Total FY16 Female FY16 Male FY16

Employees 335,767 94,065 241,702

Management employees 22,777 5,060 17,717

Non-management employees 312,990 89,005 223,985

Full-time employees (U.S workforce only) 153,441 41,281 112,160

Part-time employees (U.S. workforce only) 117,202 35,753 81,449 54 2017 FedEx Global Citizenship Report People

Our Company Economy Environment People GRI

Promoting workplace Women at FedEx inclusion FedEx operates in an industry traditionally lacking in gender diversity. We are strongly Each FedEx operating company provides committed to promoting qualified women opportunities for internal teams to support into managerial and leadership roles, workplace inclusion initiatives. These offering programs that help women include diversity and inclusion team advance in their careers and providing member councils, affinity groups and mentoring and networking opportunities Business Resource Teams (BRT). FedEx for female team members. In total, there Express, for example, supports eight were 5,060 women in managerial roles affinity groups including African American, across FedEx in FY16. Hispanic, Asian, Women, Cancer Support, Multifaith, LGBT and Friends and U.S. Military Veterans. In FY16, FedEx Services created two new Business Resource Teams, including a Multi-Ethnic Leadership Community and a group focused on generational diversity called ALLGen. FedEx Ground added a Veterans Representative Group and a Pittsburgh Read more about how FedEx supports Emerging Professionals Network (PEPN). rewarding careers for women and veterans. FedEx provides diversity and inclusion awareness training to new hires and management personnel. We also offer educational materials on diversity and inclusion awareness to team members. FedEx Freight hosts monthly education sessions for the more than 200 team members that participate on their Diversity & Inclusion Council. FedEx Express provides classroom training and online courses on diversity & inclusion management through its Global Leadership Institute. In FY16, FedEx Ground launched a new Diversity and Inclusion website to educate team members on available resources.

of management roles in the U.S. were held by minorities, and more than 22% of global 30.7% management roles were held by women in FY16. 55 2017 FedEx Global Citizenship Report People

Our Company Economy Environment People GRI

Efforts by our operating companies to Veterans and FedEx Diversity recognition advance leadership opportunities for women in FY16 included: We honor the service that veterans give Diversity and inclusion at FedEx connects to the U.S. and proactively work to hire people and possibilities to deliver a better • FedEx participated in the 17th Global them. FedEx is a corporate collaborator future for team members, customers, Women in Leadership Economic Forum of the U.S. Chamber of Commerce suppliers and communities. in the United Arab Emirates, leading Hiring Our Heroes program, which helps interactive panel discussions veterans, transitioning service members • FedEx named one of America’s Top and military spouses find meaningful Corporations for Women’s Business • FedEx invited female students from employment opportunities. For more than Enterprises by the Women’s Business colleges and NGOs to visit FedEx 20 years, FedEx Express has maintained Enterprise National Council locations throughout Europe, the the Military Fellows Program, an initiative Middle East, the Indian Subcontinent that provides active duty military officers • FedEx received the Patriotic Employer and Africa, to meet inspiring female with learning experiences in Corporate Award and Above and Beyond Award team members America. The Fellows spend one year from Employer Support for the Guard of their service obligation working with and Reserve, a Department of Defense • FedEx Ground continued its multitiered several departments at the FedEx Express Agency leadership program for mid-level female World Headquarters. managers. The program provides multi- • FedEx ranked as one of 10 Best year leadership development training FedEx Ground leads our Veterans Workplaces for African-Americans by and courses to help female managers Representative Initiative that connects Fortune in 2016 advance their career goals. veterans to career resource opportunities and supports organizations that address • FedEx named by Black Enterprise as issues that disproportionately affect one of Top 40 Best Companies for veterans. FedEx Services participates in Diversity in 2016 an eMentor Leadership Program that pairs FedEx volunteers with veterans, military • FedEx Office Diversity & Inclusion personnel and military spouses seeking Forums recognized as best practice by employment. the Texas Diversity Council 56 2017 FedEx Global Citizenship Report

Our Company Economy Environment People GRI

GRI

GRI G4 Reference Index 57 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

General Standard Disclosures

GRI INDEX Disclosure

Strategy and Analysis

G4-1 Statement from most senior decision maker Chairman and CEO Letter

Chairman and CEO Letter Our Company: Delivering Business Responsibly (full section) G4-2 Key impacts, risks and opportunities Economy: Delivering Opportunities (full section) Environment: Delivering for a Sustainable World (full section) People: Delivering for Our Team (full section)

Organizational Profile

G4-3 Name of the organization FedEx Corporation

Our Company: Delivering Business Responsibly>Our Business G4-4 Primary brands, products and services FedEx Annual Report 2016 Our Services

942 South Shady Grove Road G4-5 Location of the organization’s headquarters Memphis, Tennessee 38120

Number of countries where the organization operates, and names of countries where either Our Company: Delivering Business Responsibly>Our Business G4-6 the organization has significant operations or FedEx Annual Report 2016 that are specifically relevant to the sustainability topics covered in the report

G4-7 Nature of ownership and legal form Publicly traded corporation

Markets served (including geographic Our Company: Delivering Business Responsibly>Our Business G4-8 breakdown, sectors served, and types of FedEx Annual Report 2016 customers and beneficiaries)

Our Company: Delivering Business Responsibly>Our Business G4-9 Scale of organization Economy: Delivering Opportunities>Global Business Performance FedEx Annual Report 2016

Total workforce by employment contract and G4-10 People: Delivering for Our Team>Diversity and Inclusion gender

Economy: Delivering Opportunities>Our Global Supply Chain Economy: Delivering Opportunities>Global Economic Impact G4-12 Describe the organization’s supply chain Environment: Delivering for a Sustainable World>Responsible Materials Use

Economy: Delivering Opportunities>Global Business Performance Significant changes during the reporting period Economy: Delivering Opportunities>Global Economic Impact G4-13 regarding the organization’s size, structure, Economy: Delivering Opportunities>Our Global Supply Chain ownership, or its supply chain Our Company: Delivering Business Responsibly>Our Business FedEx Annual Report 2016

FedEx 2016 Proxy Statement Whether and how the precautionary approach or Our standard management practices consider many factors, including G4-14 principle is addressed by the organization potential positive and negative societal impacts, when making strategic business decisions. 58 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

Economy: Delivering Opportunities>Global Economic Impact Economy: Delivering Opportunities>Community Investment Externally developed economic, environmental Environment: Delivering for a Sustainable World>Energy and GHG and social charters, principles, or other initiatives G4-15 Emissions to which the organization subscribes or which it In addition, we utilize the World Resources Institute/World Council for endorses Sustainable Business Development’s The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

Economy: Delivering Opportunities>Global Economic Impact People: Delivering for Our Team (full section) Economy: Delivering Opportunities>Our Global Supply Chain Memberships in associations (such as industry We also hold memberships in the following associations: associations) and/or national/international - Securing America's Future Energy (SAFE) advocacy organizations in which the organization: - Electrification Coalition * Has positions in governance bodies; G4-16 - Global Environmental Management Initiative * Participates in projects or committees; - U.S. Chamber of Commerce * Provides substantive funding beyond routine - American Trucking Associations membership dues; or - Airlines 4 America * Views membership as strategic - The Business Roundtable - The Conference Board - International Air Transport Association (IATA) - Americans for Modern Transportation

Identified Material Aspects and Boundaries

All entities included in the organization’s consolidated financial statements or equivalent Economy: Delivering Opportunities (full section) G4-17 documents and whether any of these entities is FedEx 2016 Form 10-K not covered by the report

Explain the process for defining the report About This Report content and the Aspect Boundaries and how the G4-18 Our Company: Delivering Business Responsibly>Materiality and Risk organization has implemented the Reporting Assessment Principles for Defining Report Content

All the material Aspects identified in the process Our Company: Delivering Business Responsibly>Materiality and Risk G4-19 for defining report content Assessment

Our Company: Delivering Business Responsibly>Materiality and Risk Assessment

The Aspect Boundary within the organization for The information in this report applies to FedEx Corporation and all G4-20 each material Aspect operating companies and associated companies globally within the reporting period, unless otherwise stated.

The reported FY16 data does not include TNT Express

The Aspect Boundary outside the organization for Our Company: Delivering Business Responsibly>Materiality and Risk G4-21 each material Aspect Assessment

The effect of any restatements of information In FY16, FedEx did not issue restatements of information provided in G4-22 provided in previous reports, and the reasons for previous reports, unless otherwise noted. such restatements

Significant changes from previous reporting G4-23 No significant changes in FY16 periods in the Scope and Aspect Boundaries 59 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

Stakeholder Engagement

Our Company: Delivering Business Responsibility>CSR Materiality and A list of stakeholder groups engaged by the G4-24 Risk Assessment organization Full Report

The basis for identification and selection of Economy: Delivering Opportunities (full section) G4-25 stakeholders with whom to engage FedEx 2016 Form 10-K

The organization’s approach to stakeholder engagement, including frequency of engagement Our Company: Delivering Business Responsibility>CSR Materiality and by type and by stakeholder group, and an G4-26 Risk Assessment indication of whether any of the engagement Full Report was undertaken specifically as part of the report preparation process

Key topics and concerns that have been raised through stakeholder engagement, and how the Our Company: Delivering Business Responsibility>CSR Materiality and organization has responded to those key topics G4-27 Risk Assessment and concerns, including through its reporting. Full Report The stakeholder groups that raised each of the key topics and concerns

Report Profile

G4-28 Reporting period for information provided About This Report

G4-29 Date of most recent previous report 2016 FedEx Global Citizenship Report (published in March 2016)

G4-30 Reporting cycle Annual (Fiscal Year)

The contact point for questions regarding the G4-31 [email protected] report or its contents

Report the ‘in accordance’ option the organization has chosen; the GRI Content Index G4-32 for the chosen option and the reference to the About this Report External Assurance Report, if the report has been externally assured

With the exception of our direct aircraft GHG emissions that are subject The organization’s policy and current practice to the European Union’s Emissions Trading Scheme (which are externally G4-33 with regard to seeking external assurance for the assured by Ernst & Young), the data metrics disclosed in this report have report not been externally assured.

Governance

The governance structure of the organization, including committees of the highest governance Our Company: Delivering Business Responsibly>Corporate Governance G4-34 body. Identify any committees responsible for Environment: Delivering for a Sustainable World>Environmental Impact decision-making on economic, environmental FedEx 2016 Proxy Statement and social impacts

Our Company: Delivering Business Responsibly>Materiality and Risk Report the process for delegating authority for Assessment economic, environmental and social topics from G4-35 Our Company: Delivering Business Responsibly>Corporate Governance the highest governance body to senior executives Environment: Delivering for a Sustainable World> Environmental Impacts and other employees FedEx 2016 Proxy Statement 60 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

Report whether the organization has appointed an executive-level position or positions with Environment: Delivering for a Sustainable World> Environmental Impacts G4-36 responsibility for economic, environmental and FedEx 2016 Proxy Statement social topics, and whether post holders report directly to the highest governance body

Report processes for consultation between stakeholders and the highest governance body Our Company: Delivering Business Responsibly>Corporate Governance on economic, environmental and social topics. G4-37 Our Company: Delivering Business Responsibly>Materiality and Risk If consultation is delegated, describe to whom Assessment and any feedback processes to the highest governance body

Report the composition of the highest governance body and its committees by: * Executive or nonexecutive, *Independence, *Tenure on the governance body, *Number of each individual’s other significant positions G4-38 FedEx 2016 Proxy Statement and commitments, and the nature of the commitments, *Gender, *Membership of under- represented social groups, *Competences relating to economic, environmental and social impacts, *Stakeholder representation

Report whether the Chair of the highest governance body is also an executive officer G4-39 (and, if so, his or her function within the Our Company: Delivering Business Responsibly>Corporate Governance organization’s management and the reasons for this arrangement)

Report the nomination and selection processes for the highest governance body and its G4-40 FedEx 2016 Proxy Statement committees, and the criteria used for nominating and selecting highest governance body members

Report processes for the highest governance Our Company: Delivering Business Responsibly>Corporate Governance body to ensure conflicts of interest are avoided G4-41 FedEx 2016 Proxy Statement and managed. Report whether conflicts of FedEx Code of Business Conduct and Ethics interest are disclosed to stakeholders

A. Report the processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics. Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is a G4-44 self-assessment. FedEx 2016 Proxy Statement B. Report actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics, including, as a minimum, changes in membership and organizational practice 61 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

A. Report the highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities. Include the risks, and opportunities. Include the highest governance body’s role in the implementation of due Our Company: Delivering Business Responsibly>Corporate Governance G4-45 diligence processes. FedEx 2016 Proxy Statement B. Report whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental and social impacts, risks, and opportunities

Report the highest governance body’s role in Our Company: Delivering Business Responsibly>Corporate Governance reviewing the effectiveness of the organization’s G4-46 FedEx 2016 Proxy Statement risk management processes for economic, FedEx 2016 Form 10-K environmental and social topics

Report the frequency of the highest governance FedEx 2016 Proxy Statement G4-47 body’s review of economic, environmental and FedEx 2016 Form 10-K social impacts, risks, and opportunities

Report the highest committee or position that formally reviews and approves the organization’s Our Company: Delivering Business Responsibly>Corporate G4-48 sustainability report and ensures that all material Governance>Global Citizenship Governance Aspects are covered

Report the process for communicating critical Our Company: Delivering Business Responsibly>Corporate Governance G4-49 concerns to the highest governance body FedEx Code of Business Conduct and Ethics

A. Report the remuneration policies for the highest governance body and senior executives B. Report how performance criteria in the Our Company: Delivering Business Responsibly>Corporate Governance G4-51 remuneration policy relate to the highest FedEx 2016 Proxy Statement governance body’s and senior executives’ economic, environmental and social objectives

Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and G4-52 whether they are independent of management. FedEx 2016 Proxy Statement Report any other relationships which the remuneration consultants have with the organization

Report how stakeholders’ views are sought and taken into account regarding remuneration, G4-53 FedEx 2016 Proxy Statement including the results of votes on remuneration policies and proposals, if applicable

Report the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to FedEx 2016 Proxy Statement G4-54 the median annual total compensation for all (Partially reported) employees (excluding the highest-paid individual) in the same country 62 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

Report the ratio of percentage increase in annual total compensation for the organization’s highest- paid individual in each country of significant FedEx 2016 Proxy Statement G4-55 operations to the median percentage increase (Partially reported) in annual total compensation for all employees (excluding the highest-paid individual) in the same country

Ethics and Integrity

The organization’s values, principles, standards Our Company: Delivering Business Responsibly (full section) G4-56 and norms of behavior such as codes of conduct People: Delivering for Our Team>Purple Promise and codes of ethics FedEx Code of Business Conduct and Ethics

Report the internal and external mechanisms for Our Company: Delivering Business Responsibly>Corporate seeking advice on ethical and lawful behavior, G4-57 Governance>Ethics and integrity and matters related to organizational integrity, FedEx Code of Business Conduct and Ethics such as helplines or advice lines

Report the internal and external mechanisms for reporting concerns about unethical or unlawful Our Company: Delivering Business Responsibly>Corporate behavior, and matters related to organizational G4-58 Governance>Ethics and integrity integrity, such as escalation through line FedEx Code of Business Conduct and Ethics management, whistleblowing mechanisms or hotlines

CATEGORY: ECONOMIC

Material Aspect: Economic Performance

Economy: Delivering Opportunities (full section) G4-EC1 Direct economic value generated and distributed FedEx Annual Report 2016 FedEx 2016 Form 10-K

Our Company: Delivering Business Responsibly>Materiality and Risk Financial implications and other risks and Assessment G4-EC2 opportunities for the organization’s activities due Environment: Delivering for a Sustainable World > Energy and GHG to climate change Emissions FedEx 2016 Form 10-K

Coverage of the organization’s defined benefit People: Delivering for Our Team>Team Member Quality of Life G4-EC3 plan obligations FedEx Annual Report 2016

In FY16, FedEx did not receive significant financial assistance from G4-EC4 Financial assistance received from government governments.

Material Aspect: Indirect Economic Impacts

Economy: Delivering Opportunities (full section) Development and impact of infrastructure and Environment: Delivering for a Sustainable World>Facility Efficiency G4-EC7 services supported Environment: Delivering for a Sustainable World>Vehicle Efficiency Environment: Delivering for a Sustainable World>Aircraft Efficiency 63 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

Significant indirect economic impacts, including G4-EC8 Economy: Delivering Opportunities (full section) the extent of impacts

Material Aspect: Procurement Practices

Proportion of spending on local suppliers at G4-EC9 Economy: Delivering Opportunities>Our Global Supply Chain significant locations of operation

CATEGORY: ENVIRONMENTAL

Material Aspect: Materials

Environment: Delivering for a Sustainable World>Responsible Materials G4-EN1 Materials used by weight or volume Use

Percentage of materials used that are recycled Environment: Delivering for a Sustainable World>Responsible Materials G4-EN2 input materials Use

Material Aspect: Energy

Environment: Delivering for a Sustainable World>Energy and GHG G4-EN3 Energy consumption within the organization Emissions

Environment: Delivering for a Sustainable World>Energy and GHG G4-EN4 Energy consumption outside of the organization Emissions

Environment: Delivering for a Sustainable World>Energy and GHG G4-EN5 Energy intensity Emissions

Environment: Delivering for a Sustainable World>Energy and GHG G4-EN6 Reduction of energy consumption Emissions

Material Aspect: Water

Water is not considered a material issue for FedEx

Material Aspect: Biodiversity

Biodiversity is not considered a material issue for FedEx

Material Aspect: Emissions

Environment: Delivering for a Sustainable World>Environmental Impact G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) Environment: Delivering for a Sustainable World>Energy and GHG Emissions

Environment: Delivering for a Sustainable World>Environmental Impact Energy indirect greenhouse gas (GHG) emissions G4-EN16 Environment: Delivering for a Sustainable World>Energy and GHG (Scope 2) Emissions

Other indirect greenhouse gas (GHG) emissions Environment: Delivering for a Sustainable World>Energy and GHG G4-EN17 (Scope 3) Emissions

Environment: Delivering for a Sustainable World>Energy and GHG G4-EN18 Greenhouse gas (GHG) emissions intensity Emissions 64 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

Environment: Delivering for a Sustainable World>Energy and GHG G4-EN19 Reduction of greenhouse gas (GHG) emissions Emissions

Environment: Delivering for a Sustainable World>Energy and GHG G4-EN21 NOX, SOX, and other significant air emissions Emissions

Material Aspect: Effluents and Waste

Total weight of waste by type and disposal Environment: Delivering for a Sustainable World>Responsible Materials G4-EN23 method Use

Environment: Delivering for a Sustainable World>Environmental G4-EN24 Total number and volume of significant spills Impact>Environmental management

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms Environment: Delivering for a Sustainable World>Responsible Materials G4-EN25 of the Basel Convention Annex I, II, III, and VIII, Use and percentage of transported waste shipped internationally

Material Aspect: Products and Services

Extent of impact mitigation of environmental G4-EN27 Environment: Delivering for a Sustainable World (full section) impacts of products and services

Percentage of products sold and their packaging Environment: Delivering for a Sustainable World>Responsible Materials G4-EN28 materials that are reclaimed by category Use>Materials Consumption

Material Aspect: Compliance

Monetary value of significant fines and total number of non-monetary sanctions for non- Environment: Delivering for a Sustainable World> Responsible Materials G4-EN29 compliance with environmental laws and Use>Compliance regulations

Material Aspect: Transport

Significant environmental impacts of transporting products and other goods and G4-EN30 Environment: Delivering for a Sustainable World (full section) materials for the organization's operations, and transporting members of the workforce

Material Aspect: Supplier Environmental Assessment

Percentage of new suppliers that were screened G4-EN32 Economy: Delivering Opportunities>Our Global Supply Chain using environmental criteria Significant actual and potential negative Environment: Delivering for a Sustainable World>Responsible Materials G4-EN33 environmental impacts in the supply chain and Use actions taken Economy: Delivering Opportunities>Our Global Supply Chain

CATEGORY: SOCIAL

LABOR PRACTICES AND DECENT WORK

Material Aspect: Employment

Total number and rates of new employee hires People: Delivering for Our Team>Team Member Career G4-LA1 and employee turnover by age group, gender and Development>Recruitment and retention region

Benefits provided to full-time employees that G4-LA2 are not provided to temporary or part-time People: Delivering for Our Team>Team Member Quality of Life employees, by significant locations of operation 65 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

Material Aspect: Occupational Health and Safety

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total People: Delivering for Our Team>Team Member Safety G4-LA6 number of work-related fatalities, by region and (Partially reported) by gender

Workers with high incidence or high risk of People: Delivering for Our Team>Team Member Safety G4-LA7 diseases related to their occupation (Partially reported)

Material Aspect: Training and Education

Average hours of training per year per employee G4-LA9 People: Delivering for Our Team>Team Member Career Development by gender, and by employee category

Programs for skills management and lifelong learning that support the continued employability G4-LA10 People: Delivering for Our Team>Team Member Career Development of employees and assist them in managing career endings

Percentage of employees receiving regular G4-LA11 performance and career development reviews, by People: Delivering for Our Team>Team Member Career Development gender and by employee category

Material Aspect: Diversity and Equal Opportunity

Composition of governance bodies and breakdown of employees per employee category People: Delivering for Our Team>Diversity and Inclusion G4-LA12 according to gender, age group, minority group FedEx 2016 Proxy Statement membership, and other indicators of diversity

Material Aspect: Supplier Assessment for Labor Practices

Percentage of new suppliers that were screened Economy: Delivering Opportunities>Our Global Supply Chain G4-LA14 using labor practices criteria (Partially reported)

Significant actual and potential negative impacts Economy: Delivering Opportunities>Our Global Supply Chain G4-LA15 for labor practices in the supply chain and actions (Partially reported) taken

Material Aspect: Labor Practices Grievance Mechanisms

Number of grievances about labor practices Our Company: Delivering Business Responsibly>Corporate G4-LA16 filed, addressed, and resolved through formal Governance>Ethics and integrity grievance mechanisms (Partially reported)

HUMAN RIGHTS

Material Aspect: Non-Discrimination

Our Company: Delivering Business Responsibly>Corporate Total number of incidents of discrimination and G4-HR3 Governance>Ethics and integrity corrective actions taken (Partially reported)

Material Aspect: Child Labor

Operations and suppliers identified as having Our Company: Delivering Business Responsibly>Corporate significant risk for incidents of child labor, and Governance>Ethics and integrity G4-HR5 measures taken to contribute to the effective Economy: Delivering Opportunities>Our Global Supply Chain abolition of child labor (Partially reported) 66 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

Material Aspect: Forced or Compulsory Labor

Operations and suppliers identified as having Economy: Delivering Opportunities>Our Global Supply Chain significant risk for incidents of forced or Our Company: Delivering Business Responsibly>Corporate G4-HR6 compulsory labor, and measures to contribute Governance>Ethics and integrity to the elimination of all forms of forced or (Partially reported) compulsory labor

Material Aspect: Assessment

Our Company: Delivering Business Responsibly>Corporate Total number and percentage of operations that Governance>Ethics and integrity G4-HR9 have been subject to human rights reviews or Economy: Delivering Opportunities>Our Global Supply Chain impact assessments (Partially reported)

Material Aspect: Supplier Human Rights Assessment

Our Company: Delivering Business Responsibly>Corporate Percentage of new suppliers that were screened Governance>Ethics and integrity G4-HR10 using human rights criteria Economy: Delivering Opportunities>Our Global Supply Chain" (Partially reported)

Our Company: Delivering Business Responsibly>Corporate Significant actual and potential negative human Governance>Ethics and integrity G4-HR11 rights impacts in the supply chain and actions Economy: Delivering Opportunities>Our Global Supply Chain taken (Partially reported)

SOCIETY

Material Aspect: Local Communities

Percentage of operations with implemented local Economy: Delivering Opportunities>Community Investment G4-SO1 community engagement, impact assessments, (Partially reported) and development programs

Material Aspect: Anti-Corruption

Our Company: Delivering Business Responsibly>Corporate Governance>Ethics and integrity Communication and training on anti-corruption G4-SO4 Our Company: Delivering Business Responsibly>CSR Materiality and Risk policies and procedures Assessment FedEx Code of Business Conduct & Ethics

Material Aspect: Public Policy

Our Company: Delivering Business Responsibly>Corporate Total value of political contributions by country Governance>Ethics and Integrity G4-SO6 and recipient/beneficiary Policy on Political Contributions (Partially reported) 67 2017 FedEx Global Citizenship Report GRI

Our Company Economy Environment People GRI

GRI INDEX Disclosure

Material Aspect: Compliance

Monetary value of significant fines and total FedEx 2016 Form 10-K G4-SO8 number of non-monetary sanctions for non- (Partially reported) compliance with laws and regulations

Material Aspect: Supplier Assessment for Impacts on Society

Percentage of new suppliers that were screened Economy: Delivering Opportunities>Our Global Supply Chain G4-SO9 using criteria for impacts on society (Partially reported)

Significant actual and potential negative impacts Economy: Delivering Opportunities>Our Global Supply Chain G4-SO10 on society in the supply chain and actions taken (Partially reported)

PRODUCT RESPONSIBILITY

Material Aspect: Customer Privacy

Our Company: Delivering Business Responsibly>Corporate Total number of substantiated complaints Governance>Data security and privacy G4-PR8 regarding breaches of customer privacy and FedEx 2016 Form 10-K losses of customer data (Partially reported)

Material Aspect: Compliance

Monetary value of significant fines for non- FedEx 2016 Form 10-K G4-PR9 compliance with laws and regulations concerning (Partially reported) the provision and use of products and services