FedEx, the world’s largest cargo airline, has announced a goal to achieve carbon–neutral operations globally by 2040.

To help achieve this, FedEx is designating more than $2 billion of initial investment in three key areas, namely vehicle electrification, sustainable energy, and carbon sequestration.

In terms of vehicle electrification, FedEx say it will convert its entire parcel pickup and delivery fleet to zero-emission electric vehicles by 2040. Half of all new FedEx Express vehicles will be electric by 2025, and all vehicle purchases are expected to be EVs by 2030.

The decarbonisation plan includes a pledge of $100 million to Yale University to help establish the Yale Center for Natural Carbon Capture, accelerating research into methods of carbon sequestration at scale, with an initial focus on helping to offset greenhouse gas emissions equivalent to current airline emissions.

“We have a responsibility to take bold action in addressing climate challenges,” said Frederick W. Smith, Chairman and CEO, FedEx Corp.

Since 2009, the company’s efforts have contributed to an approximately 40% reduction in CO2 emissions intensity while package volume increased 99% during that period. Recently, FedEx was ranked first in its industry on JUST Capital’s 2021 list of “America’s Most Just Companies” in the environment category and first in the travel, transport and logistics sector of Newsweek’s “America’s Most Responsible Companies 2021.”

“While we’ve made great strides in reducing our environmental impact, we have to do more. The long-term health of our industry is directly linked to the health of the planet, but this effort is about more than the bottom line – it’s the right thing to do,” said Mitch Jackson, Chief Sustainability Officer, FedEx Corp. “At FedEx, we are committed to connecting people and possibilities resourcefully and responsibly. The steps we are taking today will contribute a positive impact for generations to come.”