The case for CSR/ Sustainability Reporting Done Responsibly


IDENTIFY - MEASURE - MANAGE - CHANGE

Insights on how you can protect the environment, maintain and increase the value of your company, through a structured process.

Insights on how you can protect the environment, maintain and increase the value of your company, through a structured process.

Home / case studies / Case study: How FedEx increases aircraft efficiency

Case study: How FedEx increases aircraft efficiency

Operating in over 220 countries and territories, FedEx helps support local, regional and national economies, addressing, at the same time, some of the world’s most pressing challenges through its unique portfolio of transportation, e-commerce and business solutions. Making sure the 660-plus aircraft in its fleet operate as efficiently and environmentally responsibly as possible, is a top priority for FedEx.  Tweet This!

This case study is based on the 2018 Global Citizenship Report by FedEx published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Layout 1

Abstract

FedEx has set a goal to reduce aircraft emissions intensity 30 per cent from a 2005 baseline by 2020 and, also, obtain 30 per cent of jet fuel from alternative fuels by 2030. In order to increase aircraft efficiency FedEx took action to:

  • implement the FedEx Fuel Sense programme
  • upgrade and modernise aircraft
  • explore the use of alternative fuels and technologies

What are the material issues the company has identified?

In its 2018 Global Citizenship Report FedEx identified a range of material issues, such as ethics, bribery and corruption, driver and workplace safety, business preparedness, resiliency and disaster response, data security and privacy. Among these, increasing aircraft efficiency stands out as a key material issue for FedEx.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups FedEx engages with:  

Stakeholder Group
Customers
Industry groups
Investors
Sustainability experts
Nonprofits
Government agencies
Team members

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics FedEx obtained feedback from stakeholders through a survey and roundtable engagement session.

What actions were taken by FedEx to increase aircraft efficiency?

In its 2018 Global Citizenship Report FedEx reports that it took the following actions for increasing aircraft efficiency:

  • Implementing the FedEx Fuel Sense programme
  • The FedEx Fuel Sense programme enables FedEx to identify efficiencies across aviation operations by using the insights and ideas of front-line team members and experts, who contribute to a culture of fuel efficiency. Since the programme began in 2006, a total of 54 projects have been identified and 561 million gallons of jet fuel have been saved. In FY17 FedEx saved, through the Fuel Sense programmes, almost 88 million gallons of jet fuel and avoided almost 850,000 metric tons of CO2e emissions.
  • Upgrading and modernising aircraft
  • Through its aircraft modernisation programme, FedEx achieves significant reductions in energy use and emissions. By replacing older aircraft with newer models, such as the Boeing 767-300 Freighters, which are about 30% more fuel efficient than the MD10s they replaced, FedEx not only saved fuel and reduced emissions, but also improved operational flexibility and operating margins. In FY17, through the aircraft fleet modernisation programme, FedEx saved 89.3 million gallons of jet fuel and avoided over 860,000 metric tons of CO2e emissions – almost 26% more emissions compared to the previous fiscal year.
  • Exploring the use of alternative fuels and technologies
  • In FY15, FedEx entered into an agreement with Colorado-based Red Rock Biofuels, which will produce a minimum of 48 million gallons of alternative jet fuel over an eight-year period. Construction of the fuel refinery was planned to begin in July 2018, and the first delivery of commercially viable and available alternative fuels is expected in 2020. In addition, FedEx collaborated with Boeing to test over 35 technologies aboard a specially equipped FedEx-owned 777 Freighter, including technologies designed to reduce emissions and noise. In April 2018 this aircraft, the Boeing ecoDemonstrator, became the first aircraft to fly 100% on biofuel.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 302-1 Energy consumption within the organization

2) Disclosure 302-4 Reduction of energy consumption

3) Disclosure 305-4 GHG emissions intensity

4) Disclosure 305-5 Reduction of GHG emissions

 

Disclosure 302-1 Energy consumption within the organization corresponds to:

Disclosure 302-4 Reduction of energy consumption corresponds to:

Disclosure 305-4 GHG emissions intensity corresponds to:

  • Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
  • Business theme: GHG emissions
  • Sustainable Development Goal (SDG) 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development
  • Business theme: Ocean acidification
  • Sustainable Development Goal (SDG) 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
  • Business theme: Forest degradation

Disclosure 305-5 Reduction of GHG emissions corresponds to:

  • Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
  • Business theme: GHG emissions
  • Sustainable Development Goal (SDG) 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development
  • Business theme: Ocean acidification
  • Sustainable Development Goal (SDG) 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
  • Business theme: Forest degradation

 

80% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



FBRH GRI Standards Certified and IEMA approved Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI-Standards Certified and IEMA approved Course you will be taking the first step in gaining the many benefits of sustainability reporting.

 

References:

1) This case study is based on published information by FedEx, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to FedEx: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

X