SUPPORTING STATEMENT: At the 2021 UN Climate Change Conference, the United States and other governments agreed
to the Just Transition Declaration, which aligns with the “Just Transition” guidelines in the International Labor Organization’s
Guidelines for a just transition towards environmentally sustainable economies and societies for all. The latter states an
environmentally sustainable future requires “anticipating impacts on employment, adequate and sustainable social protection
for job losses and displacement, skills development and social dialogue.” (See: https://www.ilo.org/wcmsp5/groups/public/@
ed_emp/@emp_ent/documents/publication/wcms_432859.pdf ) Those guidelines emphasize the “pivotal role” of employers
“in bringing about social, economic and environmental sustainability with decent work and social inclusion.”
The World Benchmarking Alliance’s indicators include discrete, time-based indicators, including those tied to developing a just
transition plan through consultation with affected stakeholders; mitigating the negative social impacts of the carbon transition
on workers and communities; establishing a clear process for identifying job dislocation risks for workers and communities; and
developing plans to retain and reskill workers for an inclusive workforce. (See: https://assets.worldbenchmarkingalliance.org/
app/uploads/2021/07/Just-Transition-Methodology.pdf )
In 2021, FedEx announced its goal of becoming carbon-neutral across its operations by 2040. This is laudable; however, FedEx
fails to disclose how this will be achieved in a manner consistent with a just transition, despite the potentially profound impact
on employees and communities. A 2022 study by the World Benchmarking Alliance scored FedEx at just 1.9/20 for its just
transition indicator disclosure and called on the company to increase reporting. (See: https://www.worldbenchmarkingalliance.
org/publication/transport/companies/fedex/ ) The report, which evaluated nearly 100 transport companies, warned that the
sector’s lack of preparation for a just transition “plac[es] a workforce of around 10 million people at risk.”
The need for FedEx to develop and disclose a just transition strategy is clear from the role afforded to automation in its carbon
reduction plan, even though such technologies risk displacing or down skilling workers. FedEx’s efforts include exploring and
developing autonomous delivery and linehaul vehicle technologies.
Additionally, route efficiency initiatives, such as its Last Mile Optimization program –– touted by the company for their ability to
reduce emissions –– could have a profound impact on employment.
With route efficiency and automation playing a key role in FedEx’s climate-strategy, there is an urgent need for the company to
develop a just transition plan to ensure its actions are fair and equitable to affected workers and communities.”