The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Sunday, March 22, 2009

Strategic CSR - FedEx

I will be traveling over the next two to three weeks. I intend to continue sending the Newsletters during this time, but am unsure of my internet access. As such, apologies in advance for any missed Newsletters. Regular service should return by the middle of April!

The article in the url below provides an update on FedEx’s 2003 plan:

“… to replace the company's 30,000 medium-duty trucks over the next 10 years.”

According to the article, FedEx operates the largest fleet of hybrid electrical trucks in the world:

“The vehicles get about 40% better gas mileage and emit 96% less "particulate pollution" than FedEx's regular medium-duty trucks.”

This achievement is not as impressive as it sounds, however. Rather than closing in on its target of 30,000 trucks, FedEx had only 172 on the road at the end of last year. In spite of the best of intentions, FedEx’s commitment to the market has not encouraged other firms to invest in the technology (which would lower unit price across the board):

“[Mitch Jackson, FedEx's director of environmental affairs and sustainability], 44 and a FedEx lifer, figured that other companies would realize the ultimate cost savings and start placing orders for test vehicles. They didn't -- in large part because of the initial sticker shock. Priuses and other passenger hybrids carry a 20% to 25% price premium over comparable nonhybrids; the engines that Mercedes and the Cleveland-based Eaton Corp. produced for FedEx upped costs 75%.”

In addition, in spite of initial promise, the federal government has refused to provide additional incentives, with fuel economy standards for commercial trucks only being introduced last year.

FedEx’s goal of replacing all its 30,000 delivery trucks with hybrid vehicles is still in place. Its timeline, however, is being revised upwards.

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006

Green Business: FedEx's Hybrid-Truck Program Stalls
Why FedEx's ambitious goal of putting 30,000 hybrid vehicles on the road by 2013 has stalled.
From: Issue 129
October 2008
Page 101
By: Melanie Warner
http://www.fastcompany.com/magazine/129/green-business-truck-stop.html