RESOLVED: Shareholders request that the Board of Directors conduct an evaluation and issue a report (at reasonable cost, omitting proprietary information) describing if, and how, FedEx Corporation (“FedEx”) lobbying and policy influence activities (including direct and indirect forms) align with the goal of the Paris Agreement to limit average global warming to 1.5 degrees Celsius (1.5°C) above pre-industrial levels, and how FedEx plans to mitigate the risks presented by any misalignment. Such an assessment should examine the underlying actions taken, in both direct and indirect lobbying, and not rely on publicly stated positions solely to determine alignment with the Paris Agreement’s goals.

SUPPORTING STATEMENT

In an April 2022 global assessment, the Intergovernmental Panel on Climate Change[1] makes it quite clear that nations and fossil-fuel users have fallen short[2] to limit global warming to just 1.5°C, and that such a goal is now almost entirely out of reach unless sudden and dramatic changes are implemented to limit fossil fuel use, re-envision energy and transport systems, and re-think land use. Society now has a 6 to 10% chance of meeting this scenario, an additional study noted.[3]

While corporations are not solely responsible for rising global temperatures, many high-emitting companies have spent years, or decades, intervening in regulatory and policy discussions--through direct lobbying, trade association involvement, and support for policy-focused organizations--to delay global rules that would enable a less disruptive energy transition. Companies therefore have a critical role to play in reversing this course.

Of particular concern are trade associations and other policy organizations that speak for business but too often present major obstacles to addressing the climate crisis. Some companies rely on such entities to launch public relations campaigns to hamper climate progress, and then disassociate those efforts by noting that ‘companies don’t always agree with their trade associations on every issue.’

Corporate lobbying that is inconsistent with the Paris Agreement poses escalating material risks to investors, including growing systemic risks to our financial systems, as delays in curbing greenhouse gases increase the physical risks from extreme weather, threaten regional economic stability, and heighten volatility in investment portfolios.[4] As investors, we view fulfillment of the Paris Agreement’s goal as an imperative to discharging our fiduciary duties, as climate scenarios of 3-4°C or more are unacceptable and uninvestable.

While FedEx has committed to carbon neutrality by 2040 for its operations (including purchasing zero-emissions vehicles for portions of its fleet), it is unclear how FedEx takes account of (if at all) its trade associations or other forms of policy influence. FedEx does not comprehensively disclose its trade association involvement,[5] nor nonprofit memberships or other forms of lobbying. In its latest CDP response, FedEx noted that the US Chamber of Commerce (which nonprofit Influence Map scores as misaligned with the Paris Agreement[6]) had a “mixed” climate record with itself, but did not provide analysis of what that meant.[7]

[1] https://report.ipcc.ch/ar6wg3/pdf/IPCC_AR6_WGIII_SummaryForPolicymakers.pdf

[2] https://www.gov.uk/government/news/window-for-climate-action-closing-fast;

[3] https://www.nature.com/articles/s41586-022-04553-z

[4] https://www.occ.gov/news-issuances/speeches/2021/pub-speech-2021-116.pdf?source=email

[5] https://www.reuters.com/business/fedex-investors-approve-ceo-fred-smiths-pay-2021-09-27/

[6] https://influencemap.org/report/The-US-Chamber-of-Commerce-and-its-Corporate-Members-on-Climate-17631; https://lobbymap.org/influencer/US-Chamber-of-Commerce/projectlink/US-Chamber-of-Commerce-In-Climate-Change

[7] https://www.fedex.com/content/dam/fedex/us-united-states/sustainability/2021/FedEx2021CDPClimateChangeResponse.pdf