csr case study fedex feb2011

8/6/2019 CSR Case Study FedEx Feb2011

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Article 13 CSR case study series February 2011

t.02088404450 www.article13.com

FEDEX:EARTHSMART

THE COMPANYFedEx is a worldwide network of

companies, providing a broad range of

logistical services. United under FedEx

Corporation, the company has a team of

more than 285,000 team members, and

serves more than 220 countries and

territories worldwide.

FedEx has been implementing a

sustainability programme for the last

decade and has, from its inception,

focused on innovation.

THE DRIVERSFedEx holds the central belief that the

success of the business and the wellbeingof the environment are inextricably

linked. The company recognises the

services it provides as having a wider

impact, not only on the individuals who

work for the company but also the

environment and communities in which

it works. FedEx places an emphasis on

the importance of gaining and

maintaining the trust of team members,

customers, shareholders and

communities.

The company has noted that its

stakeholders are increasingly interested

in understanding what the company is

actually doing. As a result, it published

its first global citizenship report inNovember 2008.

TAKING ACTIONThe EarthSmart initiatives are a core

element in the companys environmental

sustainability strategy. Specifically,

EarthSmart provides a platform to

communicate the companys actions and

create a culture, providing an umbrella

to bring together/align globalprogrammes and initiatives.

There are three parts to EarthSmart:

a) EarthSmart Solutions;b) EarthSmart Outreach; andc) EarthSmart @ Work.

The initiatives are designed to benefit

the planet, customers and the business.

EarthSmart Solutions:

EarthSmart Solutions address the

sustainability performance of the

companys services and physical assets,

i.e. aeroplanes, trucks and facilities. It

requires the services or assets to meet

stringent, quantifiable standards for

environmental sustainability that gobeyond industry standards. It also

requires them to deliver benefits not only

to the business but also to the

environment and stakeholders.

In order to achieve this, FedEx places a

strong emphasis on the importance of

innovation. Examples include FedExbeing the first US-based company to


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purchase a Boeing 777F in 2009 (with the

intention of owning a fleet of 40 by 2019);

this has provided increased freight

capacity whilst reducing fuelconsumption by 18%. The replacement of

narrow-bodied planes has resulted in fuel

consumption being reduced by 47%

overall. Further considerations such as

flying direct between Asia and the U.S.

also reduce the demand on fuel.

FedEx also has the largest fleet of hybridelectric parcel delivery vehicles in the

industry, achieved by investing in new

vehicles and by converting traditional

trucks. These measures extend the life of

vehicles, whilst simultaneously making

them more environmentally friendly. At

present, FedEx is testing fuel cell and

hydraulic hybrid vehicles and investing

in zero emissions all-electric vehicles and

hybrid-electrics vehicles. These

initiatives contribute to the companys

20 by 20 goal of reducing plane

emissions by 20% and increasing vehicle

efficiency by 20% by the year 2020.

In relation to its facilities, FedEx has

been installing solar rooftop installationsin an increasing number of its buildings.

One such installation currently stands as

the largest in the US. FedEx has a total of

five solar arrays running as of the end of

2010

EarthSmart Outreach:

EarthSmart Outreach aligns business

priorities with community needs, such

as investment in sustainable transport

solutions for developing countries.

FedEx has worked in collaboration withEMBARQ - The WRI Centre for

Sustainable Transport - in order to

develop the transport network

throughout Mexico. By supporting

development of efficient public bus

networks, FedEx contributes to a

reduction in the number of cars on the

road, and therefore also lower carbonemissions.

FedEx has also been working to increase

child pedestrian safety, find ways to

protect valuable ecosystems and provide

disaster relief. The company provides

this assistance using its core business

strengths, such as logistical capacity to

ensure that relief supplies reach the

locations where they are most needed.

Coinciding with their people first

philosophy, FedEx has been developing a

strategy to support and enable the

volunteering efforts of their employees.

This has included the creation of a

platform to engage individuals involunteering opportunities. This

volunteer management system has been

integrated with the United Way giving

campaign and FedEx Cares week an

annual event in which more than 16,000

hours of employee time was donated in

2010.




EarthSmart @ Work:

EarthSmart @ Work aims to engage

FedEx employees actively in the

companys environmental sustainabilitygoals and efforts. The initiative is

divided into three areas:

1) Inform the sharing of informationand ideas (i.e. internal circulation of

best practice and information on

relevant topics), and enabling

employees to contribute their own

thoughts (e.g. using social media).

2) Involve enables employees to shareideas and learn from one another; in

addition, the company develops

volunteering opportunities for staff

to use their skills to assist in the

wider community; and

3) Innovate integrates the ideas ofFedEx employees into a formal

submission process to help inform

the review of strategic sustainability

goals and strategies.

CHALLENGESOne of the key challenges for FedEx was

to be specific about the usage of

EarthSmart, to ensure all the initiativeswere thoroughly vetted and to ensure

that internal and external stakeholders

understood the platform. Similarly there

was the challenge and desire to ensure

that all the programmes under the

EarthSmart platform demonstrated

customer, business and environment

benefits.

BUSINESS BENEFITSThe EarthSmart strategy is designed to

provide not only environmental and

social benefits, but also feeds back toFedExs business objectives. For example,

efficiency measures have allowed the

company to cut emissions by reducing

fuel usage, which in turn has led to

cutting costs, providing direct financial

benefits.

Additionally, given the growing pressurefor global emissions reductions and the

translation of this into many national

policies, the initiatives undertaken by

FedEx to integrate cutting edge

innovations into its operations is likely to

enable them to remain sector leaders.

FedExs approach to environmental

protection, international aid and

philanthropic investment all work to

enhance the companys reputation and

further assist in ensuring the companys

future operation and expansion.

Importantly, the activities also

encourage the growth of stakeholder

trust in the company something ofgrowing importance in an increasingly

competitive market where corporate

activities are coming under growing

public scrutiny. In addition, suppliers

are now approaching FedEx, with

requests to participate in the

programmes.




The incorporation of employee opinion

into its strategy allows its approach to

not only benefit from diverse ideas and

therefore become more innovative, butalso to make the company an employer of

preference.

The company has received a number of

international awards and rankings for its

work including the 2009 W3 Awards

Gold Award in the business category for

their Citizenship Blog; NewsweekGreenest Companies Ranking Top 100the

FORTUNE Magazines 100 Best

Companies to Work For, the Ruben

dHonneur award for outstanding

customer focus, considered one of the

foremost corporate awards in Europe,

and the 2009 Mohammed Bin Al Rashid

Al Maktoum Business Award for

Corporate Social Responsibility. This

recognition enhances both community

relations and support, and more broadly

the reputation of the company.

WHY IS IT CSR?The EarthSmart programme provides

both business and social benefits

namely it allows the company to realiseefficiency savings and encourage

sustained support and growth of

business activities. In demonstrating

leadership on matters of sustainability in

the industry, FedEx hopes to stimulate

the spread of good corporate citizenship,

making the industry as a whole more

sustainable.

Similarly, the programme has led to

increased engagement and enthusiasm

within local teams all leading to a

stronger corporate culture.

Contact us: Any comments on thisprofile? Would you like your

organisation to be profiled?

For further information, please contactArticle 13 on 020 8840 4450 or visitwww.article13.com

For more information on FedExs

EarthSmart programme, please contact

on Brandon Tidwell at

[email protected] , or Maria

Tomprou at [email protected].

csr case study fedex feb2011

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