FedEx : 2021 ESG Report

2021 ESG Report

Contents

2

Introduction

Environment

Social

Introduction	2
About this ESG Report	2
Chairman's letter	3
About FedEx	4
Global ESG governance	5
Our COVID-19 response	7

Environment	10
Our approach-reduce,	10
replace, revolutionize
Climate	11
Aviation fleet	12
Vehicle fleet	13
Facilities and materials	15

Social	17
Our culture	17
Health and safety	18
Human resource	20
management

Governance	26
Governance framework	26
Risk management	26
Corporate integrity	27
and compliance
Cybersecurity	29
and data privacy
Public policy and advocacy	30
Our supply chain	30

About this ESG Report

The FedEx 2021 ESG Report discusses our environmental, social, and governance (ESG) strategies, goals, and programs. Unless otherwise noted, this report reflects ESG progress and performance for each of our operating companies and all geographies in our 2020 fiscal year (FY20), which ended May 31, 2020 (references to FY relate to the 12-month period ended May 31 of the year referenced).

Governance

Data appendix

Data appendix 32

Environment32

Social38

Governance41

Key performance highlights are included in each chapter, while detailed performance data, including our year-over-year performance, is included in the Data appendix. Our Scope 1 and 2 greenhouse gas (GHG) emissions data were externally verifiedby Cventure LLC.

This report references indicators from the Global Reporting Initiative (GRI) Standards. In addition, this report contains disclosures in alignment with the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD). Please visit the Reporting Framework Indexfor more information about these disclosures.

2021 ESG Report		FedEx

Chairman's letter

At FedEx, keeping the world connected-in good times and during periods of great need-is who we are and what we do every day. As you will find in the following report, through our environmental, social, and governance (ESG) strategies, FedEx has connected the communities where we live and work in remarkable ways.

Since the pandemic began, FedEx has kept global industrial, healthcare, and at-home supply chains moving, with safety as our top priority. To promote safety, we've implemented additional protocols, communications, and operational changes as we continue our essential operations. From January 2020 to March 2021, FedEx Express shipped more than 80 kilotons of personal protective equipment globally, all while accommodating historic e-commerce volumes. We rigorously planned for the transport of COVID-19 vaccines into communities in need, and on December 14, 2020, at 5:53 a.m. ET, FedEx Express courier Christine Arigo delivered the first COVID-19 vaccine in the United States.

As of the end of March, FedEx is delivering COVID-19 vaccines, related ingredients, and supplies to more than 25 countries around the world, and we are prepared to transport these critical shipments for as long as it takes to eradicate COVID-19.

Environment: As part of our longstanding mission to connect the world responsibly and resourcefully, we recently announced a bold new goal to achieve carbon neutral global operations by 2040. To get there, we will focus on three key areas: vehicle electrification, sustainable energy, and natural carbon sequestration. In pursuit of truly sustainable air operations, we've pledged substantial support to help establish the Yale Center for Natural Carbon Capture. This new center will accelerate research into methods of carbon sequestration at scale, with an initial focus on helping to offset greenhouse gas emissions equivalent to current airline emissions.

Social: Our FedEx culture is built upon our people-service-profit philosophy, a quality-driven mindset, and a pledge to make every FedEx experience outstanding. During the pandemic, we found new ways to connect with our team and our customers as we live out these commitments. For example, we increased outreach regarding benefits like our free telemedicine for FedEx health plan participants and 24/7 confidential counseling for all employees and their household members amid this challenging period.

Maintaining an inclusive workplace has been a foundational practice, and we're committed to continuous improvement.

In 2020, we established a Diversity, Equity,

• Inclusion (DEI) Depot, an online platform to create more awareness of DEI-related resources, events, and team member stories across operating companies. We've also increased educational opportunities-including unconscious bias training-and we maintain employee support communities including Women in Leadership, Black Professionals Network, Asia Network, U.S. Military Veterans, and many others.

Governance: FedEx is committed to the highest levels of ethics, integrity, and reliability. A strong governance framework, starting with the FedEx Board of Directors and its committees, supports the efforts described above and all priorities across the enterprise. The oversight provided by the Board and its committees, which includes our corporate social responsibility and human resource management strategies and programs, is guided by the FedEx Code of Conduct, which applies to every FedEx Board member and employee globally.

At FedEx, we believe a connected world is a better world, and that belief helps guide everything we do. Whether we're transporting vaccines to move the world forward, connecting the world more sustainably, or bringing together a more inclusive global team, I'm proud of each of these connections and the team members who have made these important initiatives possible.

Frederick W. Smith

Chairman and CEO

3

Introduction

Environment

Social

Governance

Data appendix

2021 ESG Report		FedEx

About FedEx

FedEx provides a broad portfolio of transportation, e-commerce, and integrated business solutions through operating companies competing collectively, operating collaboratively, and innovating digitally under the FedEx brand. Our principles help us to deliver more seamlessly and efficiently for customers now and into the future. Our size, scale, and network help us connect people with goods, services, ideas, and technologies. We believe that a connected world is a better world, and that belief guides everything we do.

For more information on our business operations and financial results, please see the About Usand Investor Relationssections of our website.

ESG approach and implementation

Our ESG approach is aligned with our company's mission and values and embedded into our systems and our culture. An emphasis on long-term performance has guided our company since our founding nearly five decades ago and lies at the heart of our business and our decision-making. To help ensure we remain focused on the right priorities for our stakeholders, we conduct regular ESG materiality assessments, most recently in 2019.

Outcomes of our 2019 materiality assessment continue to inform the evolution of our global ESG commitments, strategies, and goals. We prioritize the material ESG areas where we can use our most valuable assets-the talent of our team members, global transportation networks, and logistics expertise-to reduce risks and add the greatest possible value to society. This includes our approach to climate change and environmental sustainability; creating a diverse, equitable, inclusive, and safe workplace; and conducting business in an ethical and professional manner. We align our global community engagement program, FedEx Cares, to help support these ESG priorities. For more detail on our materiality assessment, please see the Materiality section of our 2020 report.

To help ensure we remain focused on the right priorities for our stakeholders, we conduct regular ESG materiality assessments, most recently in 2019.

.Our operating companies, guided by a shared purpose, report on a core set of metrics in support of the enterprise strategy. As part of our ongoing commitment to transparency, we publicly share our performance results, learnings, challenges, and successes. For more information about the policies that inform our sustainability strategy, see our Corporate Social Responsibility Policy Statementswebpage. Please refer to the Data appendixfor FY18-FY20 ESG performance results.

Our mission and principles

Mission

FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation, and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its team members, partners, and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.

Strategic operating principles

Compete collectively	Operate collaboratively	Innovate digitally
Our operating companies	Our networks operate	Our organization
compete collectively	collaboratively to	innovates digitally to
as a broad portfolio	deliver the best	improve our physical
of customer solutions,	service to customers	and digital networks
managed under the	without compromise	now and in the future
unified FedEx brand

4

Introduction

Environment

Social

Governance

Data appendix

2021 ESG Report		FedEx

Global ESG governance

5

Introduction

Environment

Board governance

The FedEx Board of Directors and its committees oversee our global sustainability initiatives. The Board is responsible for reviewing and overseeing our culture and evaluating management's efforts to align corporate culture with our stated values and long-term strategy. The Board has delegated responsibility for specific aspects of our ESG strategy to certain committees as outlined below:

• The Nominating & Governance Committee has oversight responsibility for our corporate social responsibility (CSR) strategies and programs, including with respect to sustainability. The committee receives updates at least annually from our Chief Sustainability Officer (CSO) and provides feedback to inform future activities.
• The Compensation Committee reviews and discusses with management
  our key human resource management strategies and programs, including diversity, equity, and inclusion (DEI) initiatives, workforce demographics, and enterprise healthcare programs.
• The Audit Committee reviews the implementation and effectiveness of the company's corporate integrity and compliance programs.

• The Information Technology Oversight Committee reviews and discusses with management the company's cybersecurity and technology-relatedrisks and the technologies, policies, processes, and practices for managing and mitigating such risks and monitors business continuity and disaster recovery capabilities and contingency plans.

The Board of Directors has determined that each member of the Nominating

• Governance Committee, Compensation Committee, Audit Committee, and Information Technology Oversight Committee is independent and meets the applicable independence requirements of the New York
  Stock Exchange (including the additional requirements for the Audit Committee and Compensation Committee members) and the Board's more stringent standards for determining director independence.

In 2020, the Board received and discussed updates on our strategy and performance, which included COVID-19 economic impacts, health and safety measures, and our role

in supporting the distribution of personal protective equipment (PPE) and vaccines. The Board also discussed key ESG priorities, including climate change risk, cybersecurity, safety, and enterprise health and welfare.

Social

Governance

Data appendix

2021 ESG Report		FedEx