The document outlines FedEx's commitment to improving fuel efficiency and reducing emissions through strategies such as reducing fuel consumption, replacing older vehicles with more efficient models, and exploring new technology solutions. It highlights successes, including surpassing a goal of 20% fuel efficiency improvement by 2020 and plans to achieve a 30% improvement. Additionally, the document discusses alternative propulsion technologies including natural gas, electric vehicles, and hydrogen fuel cells to further enhance sustainability efforts.

1. Connecting the world in
responsible and resourceful ways

2. The 3 Rs of Energy Savings
Reduce
 Reduce fuel consumption with active asset management – right
vehicle/right route
 Reductions in fuel consumption = reduction in emissions
Replace
 Replace older vehicles with more fuel efficient vehicles
Revolutionize
 Drive the creation of new technologies to benefit the customer, the
company and the environment
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3. Taking a Leadership Role
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4. Asset Optimization
Goal: Maximize asset life & reduce lifecycle cost
 Primary tools
 Cost per mile analysis
 Mileage management
 Vehicle placement
 Vehicle re-positioning
 Fuel management
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5. Mileage Management
Manage miles and route usage to maximize useful life
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6. Gallons Saved
 98M gallons saved since end of FY05
 “Slowing down” the fleet of W700s
 Replacing W700s with Sprinters & Reaches
 Placing FY12 - FY14 Sprinters on higher utilization routes
 Potential to save additional 7.7M gallons annually
 Replacing remaining W700s with Isuzu Reach W630
 Reducing category of larger vehicles (W700/Reach/W900) by an
additional 3,000 units
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7. Gallons Used – Projected 2020
Vehicle Count
Type
Projected
FY14 End
State 2020
Pickup 438 438
Panel Van 5,090 5,090
Bulk Truck 375 375
Old Sprinter 2,781 0
New Sprinter 7,901 13,509
W630 2,111 5,228
W700 7,403 0
W900 1,512 2,827
Other Walk-ins 354 0
27,965 27,467
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8. 2020 Goal
In 2008, FedEx Corporation set the U.S. transportation
industry's first fuel efficiency goal with a commitment to
improve the overall fuel efficiency of the FedEx Express global
vehicle fleet 20% by 2020, as compared with its 2005
performance.
 Less than five years later, FedEx Express surpassed this goal with a
more than 22 % cumulative improvement in fuel economy for its vehicles
In early 2013, FedEx announced a new target of 30 %
improvement in fuel efficiency for its global vehicle fleet by
2020
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9. 9
W700 Diesels and Reach W630 Vehicles
Operating > 25K Miles Annually
109 Reaches
delivered to California
in Feb & Mar 2012 to
fill PUD shortages
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10. Fuel Saving Technologies – Driving
Change
As early as 2005, Global Vehicles was telling the asset supplier market
that we require more fuel efficient vehicles and GSE
Global Vehicles leadership has moved (driven) our supplier base to
make available fuel efficient assets.
In the area of walk-ins, GV procured Sprinters and the commercial
delivery vehicle model called the “Reach”
Tractor and trailer specifications have continued to change to improve
fuel efficiency
GSE improvements include the implementation of Convertor Power
Units (CPU), some of which include cockpit air conditioning
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11. Testing Boundaries and New Ideas
Our work with The Environmental Defense Fund paved the way for
commercial hybrid vehicles
We’ll continue to test new
ideas to see if they can meet
the needs of our network and
industry:
• Electric trikes in Paris
• LNG and biomass at
FedEx Freight
• Hydraulic hybrids at
FedEx Ground
• Green roofs in Chicago
• Fuel cells in Oakland

12. Electric Vehicle Fleet
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13. Hybrid Fleet
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Hybrid vehicle technology has shown promise as a means for
improving fuel economy but the technology hasn’t always been
economically sound

14. Natural Gas Fleet
Natural gas is becoming a vehicle fuel of choice for many
fleets in the US
Promotes domestic fuel consumption as well as domestic
energy and economic security
 Reduces greenhouse gas by as much as 11% and is much
cleaner than diesel exhaust, thus reducing the amount of
exhaust components to keep the air cleaner
Tractors – 2 Kenworths and 2 Freightliners
 Panel Vans – 10 CNG powered vans
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15. Current Alternate Drivetrain Vehicle Fleet
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360 Hybrids
133 EVs
14 CNG
6 EVs
73 CNG/LPG
22 EVs
9 Hybrids
9 CNG
10 EVs
2
LPG
EV = Electric Vehicle CNG = Compressed Natural Gas LPG = Liquefied Natural Gas

16. Alternate Drivetrain FY14 Deployment
 To expand our electric fleet in the US and globally, we will be adding the
following vehicles
 6 Renault Kangoo Euro-style panel vans – Brazil. These will be the first electric
vehicles by a global delivery company in Brazil and will be ready for the World Cup and
the 2016 Olympics
 31 Smith Newton – Domestic
 20 Mercedes Benz Euro-style panel vans – France
 By the end of FY14, we will have over 220 total EVs globally
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Renault Kangoo

17. Alternate Drivetrain FY14 & FY15 Testing
and Planning
Nissan EV test
 First major manufacturer with plans to launch an electric panel van globally.
Previous tests in Singapore and the United Kingdom. Testing planned for Brazil in
January, 2014 with U.S. testing to follow
Future FY15 plans include testing more technologies that have the
potential to improve fuel economy and durability while improving
emissions.
 Natural gas as a vehicle fuel is becoming more important. Our mission is to
determine the feasibility of an all-CNG station, including onsite fueling.
 We will be looking at several up and coming companies that have produced cost-
effective parallel hybrid drive systems. We’ve placed these on older vehicles with low
fuel economy in the past but we’d like to evaluate what improvements may be realized
by placing hybrid systems on our newer, more efficient vehicles
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18. Newest Hydrogen Project
20 Hydrogen fuel cell, extended-range electric vehicles
 Battery electric vehicle with an on-board hydrogen fuel cell battery charger
 Plug in at night and the fuel cell keeps the battery charged while operating
 Quiet, clean, only output is water - the vehicle is completely emission free
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19. Hydrogen Fuel Cells
Hydrogen fuel cells offer an alternative to batteries, their output
is electricity and water
Provides option where electricity is being mandated
On-highway use and GSE use
Provides greater range than batteries alone
Infrastructure is minimal compared to electric charging for each
vehicle
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20. Hydrogen Fuel Cells
Cargo Tractors
 15 Hydrogen fuel cell cargo tractors being deployed at the Memphis Hub
(pending Project Review Team approval for Properties site preparation)
 Test is for 2 years once deployed
 Future mandates at airports across the country for electric GSE can be fulfilled
with hydrogen fuel cells instead of batteries
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