FedEx goes green in China
Global parcel delivery service FedEx is making in-roads into environmentalism. At the beginning of the month, its Chinese subsidiary – FedEx Express – announced that it has deployed 48 purely electric vehicles across 13 cities in China. China is already the world’s biggest ecommerce market, and is an ambitious force in the quest for a cleaner auto industry. It has joined a number of countries around the world in stating that the future of its roads will be fuel-fossil free, although no official date has been set for the transition.
FedEx’s share price has climbed by 9% over the past 30 days
SOURCE: Yahoo Finance
Jimmy Chen, FedEx China’s regional vice president, made the following comment in a press release: “In China, FedEx has been investing in ground operations facilities and tools to improve operational efficiency and reduce environmental impact.”
The new vehicles will lead to a reduction in carbon emissions of about 6.7 tons per year. As well as being good for the environment, they’ll increase FedEx’s efficiency too: they’ll save roughly 2,500 liters of fuel per vehicle per year. Each one will be able to travel in excess of 220 kilometers with a maximum capacity of 1.5 tons.
The new fleet plays into FedEx’s wider ambitions. The company has set a vehicle efficiency target (a 50% increase) for 2025. As of 2017, progress is going smoothly, and the company has already made gains of around 38%. Revolutionizing its Chinese operation, which includes 2,800 of its 90,000 vehicles worldwide, will be another massive step in the right direction.
Dominion holds FedEd in its Global Trends Ecommerce Fund.
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