Multiplying Opportunities 2020 Global Citizenship Report sustainability.fedex.com Our CSR Strategy Economy People Environment Data Appendix Multiplying Opportunities Through Innovation FedEx connects the global economy through innovative technologies, pioneering approaches, and customer-focused solutions. Whether we are multiplying growth for our customers and our business, multiplying the potential of our people, or multiplying efficiencies for the environment, we use innovation to create value and opportunities across the world. 2 2020 FedEx Global Citizenship Report Our CSR Strategy Economy People Environment Data Appendix Contents Our CSR Strategy 4 Economy 27 People 41 Environment 60 Data Appendix 76 About this Report Our 12th annual Global Citizenship Report (the “Report”) covers FedEx corporate social responsibility (CSR) strategies, goals, programs, and progress. Unless otherwise noted, data covers each of our operating companies and all geographies in our 2019 fiscal year, which ended May 31, 2019. This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards Core option, and contains disclosures from the GRI Sustainability Reporting Standards (as well as reference tables for the Task Force on Climate-related Financial Disclosures and Sustainability Accounting Standards Board), which are listed in the Reporting Framework Index. Key performance highlights are included in the relevant report chapter, while detailed performance data, including our year-over-year performance, is included in the Data Appendix. Scope 1 & 2 GHG emissions data was externally verified by Cventure LLC. 3 2020 FedEx Global Citizenship Report Our CSR Strategy Economy People Environment Data Appendix Our CSR Strategy Multiplying Good With a global reach and purpose-driven mission, we connect the world responsibly and resourcefully. At the core of our business, we enable economic growth for customers through access to markets and innovation, link businesses through a diverse portfolio of products and services, and create opportunities for people in more than 220 countries and territories. 40% Our sustainability efforts have contributed to an approximately 40% reduction in CO2 emissions intensity across the enterprise from FY09 to FY19, a period in which revenue grew by 96%. 4 2020 FedEx Global Citizenship Report Our CSR Strategy Economy People Environment Data Appendix Chairman’s Letter Multiplying Opportunities Through Innovation As we release this report, the world Multiplying Opportunities is grappling with the novel Coronavirus for the Economy, Our People COVID-19 pandemic. During these unprecedented times, FedEx is one and the Environment of the only companies in the world Economy: Multiplying Growth with the networks and capabilities for Our Business and Society to keep commerce and aid moving. FedEx supports the ingenuity of business owners and powers the economy in a With the health and safety of our team number of ways. members as our top priority, FedEx is on the front lines of providing relief, building We fuel the explosive growth of upon decades of experience in dealing with e-commerce. As we maintain a natural disasters and medical challenges. market-leading portfolio for e-commerce — the fastest growing segment of our This experience and our company values business — we do so with a sharp focus will continue to make FedEx absolutely on customer needs and the environment. essential to providing support on a For example, Roxo™, the FedEx SameDay global scale. Bot™ holds promise for deliveries in congested or difficult delivery locations This is critical because the world is and is all electric — using only batteries depending on us now more than ever. that produce zero localized emissions. As I said in my recent From the Chairman Similarly, in 2019, through our collaboration and CEO message, it’s who we are and with Wing, we marked the first scheduled what we do. e-commerce delivery via drone in the Please take a moment and visit here for the U.S. and did so with zero emissions. latest on how FedEx is responding to the outbreak, with a focus on Safety Above All. Frederick W. Smith Chairman and CEO As you’ll see in the following report, we’re committed to putting our CSR strategy to work for the benefit of the global economy, our people, and the environment — and we’ll carry that commitment through as the world responds to and recovers from this pandemic. 5 2020 FedEx Global Citizenship Report Our CSR Strategy Economy People Environment Data Appendix We support small and diverse business. We’re also investing in our team members’ FedEx Cares: We’ve expanded our Small Business futures through extensive education and These are only a few remarkable examples Grant Contest — which provides a boost training. Last fiscal year, team members of how FedEx has been working to benefit to deserving entrepreneurs through on average participated in 18 more hours of the economy, people and the environment. grants, prizes and FedEx Office services training than the previous year, and FedEx — to 10 countries. And we take pride in provided $15.3 million in tuition assistance We’re also refocusing our robust giving and the positive outcomes generated by the to help employees further their education. volunteering platform, FedEx Cares. Moving global businesses we support. As just forward, the three FedEx Cares pillars one example, through the sale of its coffee Environment: Multiplying Efficiencies are: Global Entrepreneurship, Sustainable and chocolate products, Moka Origins, With regard to our physical assets, we’re Logistics, and Delivering for Good. As you’ll one of our 2019 winners, provides good using our Reduce, Replace, Revolutionize see on page 10, these FedEx Cares pillars wages to farmers in rural Africa. sustainability approach in four key areas: fit perfectly into our overall CSR strategy. aircraft efficiency, vehicle efficiency, It is important to remember that our CSR sustainable facilities, and sustainable This new FedEx Cares focus will enable strategy isn’t independent of our business materials and recycling. us to zero in where our company can plan to innovate and drive profitable growth. add the most unique value. And the role As we anticipate customer needs on As one illustration of the power of we play — who we are and what we do the horizon, we do so with a keen eye this strategy, last fiscal year alone, — has never been more important. on our mission to connect the world we avoided more than 3 million metric responsibly and resourcefully. tons of CO2e emissions as a result of our enterprise-wide fuel and energy People: Multiplying Potential saving initiatives. That’s equivalent Frederick W. Smith Continued investments in our people are to the carbon sequestered — or offset Chairman and CEO central to our success. And our first priority — by more than 4 million acres of U.S. is “Safety Above All.” That goes for forests in one year. our operations on the roads, in the air, in our facilities, and in our communities. We source the most up-to-date, sophisticated safety technology for our vehicle fleet. Ninety-eight percent of FedEx Freight tractors and box trucks now include roll stability, forward collision mitigation systems, and lane departure technology. And FedEx Express, Freight, and Ground use video event data recorder, or VEDR, technology to improve safety for our drivers and others on the road. 6 2020 FedEx Global Citizenship Report Our CSR Strategy Economy People Environment Data Appendix What We Achieved in FY19 Multiplying opportunities for our people, our business, and our shared environment Announced fleet 40% expansion with 23m $15.3m decrease in CO2 emissions kWh renewable in tuition assistance intensity (on a revenue basis) 1,000 energy generated to employees since FY09 Chanje electric delivery vehicles We gave $12.3b $62.4m 3.1m in goods and services procured from7 diverse and small-business in corporate charitable metric tons of CO2e emissions avoided 2020 FedEx Global Citizenship Report suppliers in the U.S. contributions through fuel- and energy-saving initiatives Our CSR Strategy Economy People Environment Data Appendix FedEx Global Network Anchorage Cologne Stansted Liège Mississauga Paris Indianapolis Newark Oakland Memphis Osaka Dubai Miami Guangzhou Fort Worth Mexico City Singapore Air Routes >220 >5,000 >650 >15M 679 >180,000 Major Express Hub Locations COUNTRIES AND OPERATING FACILITIES AIRPORTS SERVED SHIPMENTS SORTED AIRCRAFT MOTORIZED VEHICLES TERRITORIES SERVED AND PROCESSED EACH BUSINESS DAY 8 2020 FedEx Global Citizenship Report Our CSR Strategy Economy People Environment Data Appendix CSR Approach and Implementation Our culture, principles, and emphasis on long-term performance have guided our company since our founding nearly five decades ago. Similarly, our corporate social responsibility CSR is at the heart of our business and Across our organization, we set (CSR) programs emphasize long-term central to the connections we make. enterprise-level strategies to deliver Our Mission and Values performance that creates lasting, positive Key elements of our CSR strategy include our global CSR goals and commitments. value for our business and society. Our environmental efficiency innovations, Our shared purpose unites and guides Mission governance, operations, culture, and CSR a sustainable supply chain, a diverse and the implementation of these efforts at the FedEx Corporation will produce priorities are closely aligned, as reflected inclusive workplace, and the robust