FedEx will replace its current delivery trucks with electric models until its entire fleet is made up of zero—emission vehicles by 2040. The company is making the transition as a way to help it achieve its goal to reach carbon neutral status in the same year. In its announcement, FedEx says its will slowly phase out its existing parcel delivery trucks and that 50 percent of its global vehicle purchases will be electric by 2025. All its vehicle purchases will be EVs by 2030, and it's aiming to retire its gas-powered trucks completely 10 years after that.
The delivery giant, which joins a long list of companies making the pledge to reach carbon neutral status (or carbon negative status, in Microsoft's case), has set aside $2 billion in initial investment for the initiative. Part of that money will obviously go towards purchasing EVs, but FedEx will also continue investments in alternative fuels to reduce its aircraft and vehicle emissions. Since a delivery company will have to use fuel, FedEx has pledged $100 million to Yale University, as well, to launch the institution's Center for Natural Carbon Capture. On the center's website, the university wrote that it "will focus on developing collaborative and innovative solutions to pull carbon dioxide from our atmosphere and mitigate the effects of greenhouse gas emissions."
FedEx also plans to work with customers to make their supply chains sustainable with carbon–neutral shipping offerings and sustainable packaging solutions. In addition, it will invest money into making its facilities worldwide more efficient and to give them the capability to run on renewable energy.