ESG - Governance - Political Activity and Contributions

Public Policy and Advocacy

FedEx actively participates in the political process with the ultimate goal of promoting and protecting the economic future of our customers, team members, investors, and businesses. FedEx has been a longtime leader and advocate on policy issues including aviation, trade, transportation, technology and innovation, tax and economic policy, sustainability, postal reform, and many others.

FedEx is subject to extensive regulation at the federal and state levels and can be affected by legislative initiatives across an array of policy issues. FedEx builds working relationships with federal, state, and local government elected officials, agencies, and organizations through direct and indirect lobbying and advocacy efforts on issues that affect FedEx and its operating companies. Through our advocacy efforts FedEx remains focused on policies and issues regardless of political party or a political party agenda and our political contributions and expenditures reflect this approach.

Through our participation and that of our employees, the Government and Regulatory Affairs Department promotes legislative and regulatory actions that further the business objectives of FedEx and attempt to protect FedEx from unreasonable, unnecessary, or burdensome legislative or regulatory actions at all levels of government.

For more information about our perspective on public policies and some of the issues that FedEx is currently working on, visit our FedEx Policy Perspectives webpage.

How We Engage

We have developed a strong team of government affairs professionals that drive our lobbying programs and initiatives. This organization is led by the Corporate Vice President for Government and Regulatory Affairs, who reports directly to the FedEx Executive Vice President, General Counsel and Secretary. Members of the Government and Regulatory Affairs Department work from a global network of offices. We are committed to responsibly engaging in the political process and fully complying with all applicable laws and regulations, our principles of good governance, and our high standards of ethical conduct.

To ensure alignment of legislative and regulatory priorities with business objectives, our Government and Regulatory Affairs Department coordinates with the corporation’s business and regional leadership teams and is directly engaged in their core strategic processes. On an annual basis, the Government and Regulatory Affairs Department engages with the company’s senior business leaders to review long-term strategic priorities, identify associated public policy risks and opportunities, and develop prioritized action plans. The Executive Vice President, General Counsel and Secretary and Corporate Vice President of Government and Regulatory Affairs also meet periodically with FedEx’s Executive Chairman and President and CEO to ensure policy advocacy priorities are aligned to FedEx’s overall business objectives.

Management and Board Oversight of Lobbying and Political Activities

The Governance, Safety, and Public Policy Committee (the “GSPP Committee”) of the FedEx Board of Directors assists the Board in oversight of the company’s political activities and expenditures. The GSPP Committee reviews and discusses with FedEx’s Executive Vice President, General Counsel and Secretary:

public policy, political, and legislative trends and matters that affect or may affect the company’s business, performance, strategies, or reputation;
the company’s political activities and participation in the political process, including direct and indirect political spending and lobbying activities and expenditures;
the company’s contributions to trade associations that engage in political activities;
the steps management has taken to identify, assess, and manage risks relating to the company’s political activities and expenditures; and
the company’s reporting of its political activities and expenditures.

The GSPP Committee also periodically reviews and discusses the Policy on Political Contributions with management and approves any changes to the policy.

Management is responsible for implementing effective reporting and compliance procedures designed to ensure that FedEx’s political activities are conducted and disclosed in accordance with applicable law and our Policy on Political Contributions. In addition, management is responsible for monitoring the appropriateness and effectiveness of the political activities undertaken by the most significant trade associations of which FedEx is a member.

FedEx Policies and Procedures for Political Contributions

FedEx political contributions and expenditures are made to further the best interests of the corporation and our stockholders and employees and are made without regard to the personal political preferences of individual FedEx Board members, officers, and employees.

Political contributions of all types are subject to extensive governmental regulation and public disclosure requirements, and FedEx is fully committed to complying with all applicable campaign finance laws. For example, under U.S. federal law, FedEx cannot directly support candidates for federal office, so we do not. In addition, while some U.S. states allow corporate contributions to state and local candidates or ballot issue campaigns, it is our company policy not to make such contributions. FedEx does not make independent expenditures.

FedEx does not make corporate contributions to groups organized under section 501(c)(4) or section 527 of the Internal Revenue Code, other than membership dues, event sponsorships, and contributions to the organizational committees of the Democratic and Republican national party conventions and the annual conferences of the Democratic and Republican Governors Associations. None of these expenditures are used to directly support any election-related activity or ballot initiatives at the federal, state, or local level.

These limited corporate expenditures are approved by the Corporate Vice President of Government and Regulatory Affairs, in consultation with appropriate members of FedEx senior management.

FedEx’s Code of Conduct prohibits employees from conducting political activities on FedEx property or time, or involving the use of any FedEx resources such as vehicles, telephones, computers, or supplies. FedEx employees are prohibited from making or committing to political contributions on behalf of FedEx.

FedExPAC Contributions

The FedExPAC keeps employees aware of important issues and decisions made by government officials that can affect our business and allows FedEx employees to pool their financial resources to support political candidates, campaigns, and committees in furtherance of the interests of the company and our stockholders and employees.

The political contributions made by the FedExPAC are funded entirely by the voluntary contributions of our employees (no corporate funds are used), and decisions about membership in the FedExPAC have no bearing on an employee's career at FedEx.

FedExPAC is guided by strict U.S. federal law. The FedExPAC’s activities are subject to comprehensive regulation by federal, state, and local governments. FedExPAC files monthly and year-end reports with the Federal Election Commission (“FEC”), which are publicly available on the FEC website here, using the Committee ID# C00068692. These reports provide an itemization of FedExPAC receipts and disbursements, including any political contributions, over a certain amount (currently, $200). Disclosure reports are also provided below.

U.S. Federal and State Lobbying Disclosures

FedEx complies with all applicable federal, state, and local statutes. On a quarterly basis, FedEx submits lobbying disclosures pursuant to the Lobbying Disclosure Act, including federal lobbying activities and expenses. Additionally, FedEx and each individually registered lobbyist files semi-annual reports on federal contributions.

These reports are available on the U.S. Senate's website. The reported expenditures list the aggregate dollar amount of FedEx’s U.S. federal lobbying activities. Disclosure reports are also provided below.

FedEx also files registrations at the state level for each of the U.S. 50 states and the District of Columbia. To view FedEx’s state lobbying disclosures, go to the Office of the Secretary of State of the relevant state and search “FedEx” to locate the report.

Participation and Membership in Trade Associations

Our participation in the political process is designed to promote and protect the economic future of FedEx, including our stockholders and employees, and we maintain memberships with a variety of trade associations and industry organizations expressly for that purpose.

Our memberships include engagements focused on nearly every policy issue of long-term significance to FedEx, and we support organizations that champion public policies on transportation, global trade, sustainability, economic investment, security, and international affairs.

Trade associations often take many positions and address many issues of importance to FedEx in a meaningful manner, but they must also take positions and address issues in a collective industry manner helping us provide:

strong financial returns;
enhanced long-term stockholder value; and
advancement of the best interests of our employees consistent with our corporate values.

However, participation in the political process and as a member of various trade associations comes with the understanding that we may not always agree with every position of the recipients, organizations, or other members of the organization. Membership in trade associations is evaluated and reviewed regularly by the company’s Government Affairs leadership based on the organizations’ expertise in the key policy areas noted above and their support of issues of importance to FedEx. Through our memberships, we strategically seek leadership positions within the organizations through board service or key policy committee participation, and we support the organization’s work through our own direct lobbying, policy advocacy, and issue expertise.

As a general matter, the trade associations of which FedEx is a member, like other membership directed organizations, are driven by consensus. Typically, no one member dictates priorities over the concerns/objections of other members. When we disagree with a position, we employ a range of approaches to make our voice heard. We believe our dissenting voice has greater impact when we participate as a member of these organizations, especially in a leadership capacity, offering a balance of perspective.

We evaluate our memberships based on several criteria, such as:

Executing on industry priorities and effectiveness of these efforts
Managing resources and allocating resources to industry priorities
Approach to representing and communicating about our industry
Understanding and knowledge about the industry now and into the future
Reporting updates on a timely basis with solid analytical skills and value-add information
Responsiveness to company and other members
Accuracy of assessing current issues and issues on the horizon facing our industry
Quality of the work and meeting member expectations about work product
Ability to maintain positive working relationships aligned to FedEx priorities

To assist the Board of Directors in the oversight of FedEx’s political activities and expenditures, the GSPP Committee reviews and discusses with the Executive Vice President, General Counsel and Secretary FedEx’s contributions to trade associations that engage in political activities to ensure continued overall alignment with policies and issues consistent with stated our advocacy efforts. In addition, management is responsible for monitoring the appropriateness and effectiveness of the political activities undertaken by the most significant trade associations of which FedEx is a member.

Membership in trade associations requires that we pay regular dues. See a list of trade associations receiving $50,000 or more in annual payments from FedEx here.

One area where we have used our influence with trade associations on issues of importance to FedEx is diversity, equity, and inclusion. FedEx’s Executive Chairman and President and Chief Executive Officer spoke out publicly against racism and unequal treatment in June 2020. Additionally, FedEx worked with key trade association partners on social justice initiatives focused on diversity, equity, and inclusion. With our support and participation, the U.S. Chamber of Commerce launched the Equality of Opportunity Initiative to develop real, sustainable solutions to help close the race-based opportunity gaps in four areas: education, employment, entrepreneurship, and criminal justice. FedEx’s Executive Vice President, General Counsel, and Secretary serves on the Board of the U.S. Chamber of Commerce. Additionally, the Business Roundtable (BRT) spearheaded a number of initiatives specifically focused on racial equity and justice pertaining to the workforce and the country’s education system. FedEx supported these efforts, primarily the “multiple pathways” employment initiative, which is a business community commitment to better recognize and reward the value of skills, both in the recruitment process and among the current workforce. FedEx’s President and CEO serves on the BRT board of directors.

Climate Lobbying

In March 2021, FedEx announced a goal to take our global operations carbon neutral by 2040. This goal is ambitious, given our industry and scale, and is aligned with the spirit of the net zero ambitions of the Paris Agreement. To underscore the seriousness with which FedEx is approaching this goal and the challenges of climate change, FedEx Executive Chairman and founder Frederick W. Smith testified in front of the House Committee on Transportation and Infrastructure at the hearing “The Business Case for Climate Solutions” in March 2021. Additionally, the FedEx government affairs team met directly with members of U.S. Congress to educate them about the FedEx 2040 carbon neutral operations goal and the pathways towards meeting this goal following the announcement and Mr. Smith’s testimony.

Sustainability and climate policy that positively impacts the transportation and logistics industry remains a critical component of our advocacy strategy today.

FedEx works with various government and industry organizations to lobby for various proposals and initiatives that address climate challenges, particularly as it relates to FedEx and the transportation ecosystem. On occasion, the views of FedEx are not completely aligned with those of other members in external organizations in which we hold membership. Given the variety of policy topics relevant to our company, FedEx focuses engagement with individual membership organizations on the topic areas where their convening power is strongest. For instance, we may focus our engagement with a broad trade association towards specific subgroups focused on expanding international trade and channel more of our sustainability engagement towards another organization altogether.

In instances where there is a lack of alignment on a particular policy position, we continue to utilize our in-house government affairs resources to independently advance the positions that we hold as a company that are not reflected by a trade association. This kind of direct policymaker engagement, in lieu of relying on trade associations, has been a hallmark of FedEx government engagement since the company’s founding in the 1970s. One such example of FedEx’s independent engagement occurred in 2022 when members of the FedEx government affairs team met directly with dozens of congressional offices to advocate for various proposals related to sustainable aviation fuel (SAF) development, vehicle electrification, and related electric vehicle infrastructure needs that were ultimately included in the final Inflation Reduction Act. Across the board, we strive to engage in a productive manner, foster innovation, and improve the transportation sector’s environmental, social, and business performance.

The table below includes notable examples of our engagement with trade associations that seek to shape climate-related policy, and the degree to which FedEx shares or influences organizational perspectives:

Organization	Organization Position on Climate Change	Areas of Influence and Alignment
Airlines for America (A4A)	Members of A4A have committed to working across the aviation industry and with government leaders in a positive partnership to achieve net-zero carbon emissions by 2050.	FedEx actively participates in relevant committees of A4A. Members of A4A have committed to working across the aviation industry and with government leaders in a positive partnership to achieve net-zero carbon emissions by 2050. We are proactively working on efforts to reduce GHGs from aviation at both the national and international level. Nationally, FedEx advocates for the adoption of international standards developed at ICAO, including the timely implementation of CORSIA as well as ICAO’s 2017 standards and recommended practices for aircraft greenhouse gas emissions. FedEx has also publicly supported A4A-led advocacy efforts advancing the commercialization and deployment of SAFs in the aviation industry.
American Trucking Associations (ATA)	ATA’s mission is to serve and represent the U.S. trucking industry with a single, united voice to influence policies beneficial to the industry; promote safety on America’s highways; improve the industry’s image, efficiency, and competitiveness; educate the public about the critical role trucking plays in the economy; research significant industry issues all while striving for a healthy business environment. ATA advocates for science-based laws and regulations to maintain and protect the environment, and to the greatest extent possible, ensure uniformity across all levels of government.	FedEx is a member of the Board of Directors of the American Trucking Associations (ATA). FedEx has a representative on the ATA's Energy and Environment Policy Committee. FedEx engaged ATA for support of first-ever GHG emissions and fuel efficiency regulations for all commercial vehicles in the U.S. before legislative passage and regulatory stakeholder engagement, of which FedEx was an active, and ongoing, member.
Business Roundtable (BRT)	In 2020, the Business Roundtable (BRT) released a new set of guiding principles on climate change, calling on corporations to lead by example in endorsing sound policies to encourage innovation and significantly reduce GHG emissions in support of the objectives of the Paris Agreement. BRT supports the scientific consensus around climate change and that human activity is contributing to this change. As BRT states, “We are committed to supporting our governments in delivering on their commitments under the Paris Agreement on climate change.”	The FedEx Chief Sustainability Officer consulted in the development of the organization’s 2020 sustainability report and policy principles alongside representatives from other BRT member companies. Additionally, FedEx regularly participates in annual updates to this report, among other reporting activities for the organization. In addition, FedEx was a signatory to the BRT’s Statement on the Purpose of a Corporation.
National Association of Manufacturers (NAM)	In 2021, NAM published “The Promise Ahead,” a climate policy roadmap. This document stated that human activity is causing climate change. The organization called for improvements to the existing Paris Agreement as well as a “unified domestic framework” that applies to all emitters and harmonizes GHG regulation across jurisdictions. Additionally, NAM has called for cross-sectoral investment in energy and water efficiency, modernization of the electric grid, and support for commercialization of carbon capture, utilization, and storage technology (CCUS).	FedEx primarily engages with NAM on non-sustainability issues, focused more on transportation, tax and trade policy. However, we have collaborated with them on recommendations for a more sustainable supply chain.
U.S. Chamber of Commerce (“Chamber”)	The U.S. Chamber of Commerce has undertaken a major shift in its approach to climate change and related policy. In January 2021, the organization announced an update to its “Position on Climate Change,” which included support for a market-based approach to accelerate GHG emissions reductions across the U.S. economy and support for climate-related R&D amid an urgent need for action. It states that it supports U.S. participation in the Paris Agreement.	FedEx engages with the Chamber on a variety of policy issues. Sustainability is not a key area of our engagement with the Chamber. FedEx holds a seat on the U.S. Chamber of Commerce Board of Directors.

In addition, FedEx takes action in additional ways regarding climate-related activities and participation. For instance:

Electrification Coalition: To advance fleet electrification efforts, FedEx belongs to the SAFE-affiliated Electrification Coalition. Through engagement with the Electrification Coalition, we support the education of key stakeholders about the fleet electrification journey and related policy considerations.
First Movers Coalition: To help accelerate solutions, we are members of the First Movers Coalition, participating in the Aviation Sector working group, a global initiative working to decarbonize ‘hard-to-abate’ industrial sectors, including the aviation industry, to keep the planet on a 1.5 degree pathway.
Keystone Policy Center: FedEx participated in the drafting of the report, 2021 Decarbonization Dialogue: Consensus-based Recommendations for Federal Decarbonization Policy, with the FedEx Chief Sustainability Officer serving on its Steering Committee and Transportation Working Group. The report is available here. In addition, he also serves on Keystone Policy Center’s Board of Trustees and Keystone Energy Board.

Further, we have reported on our environmental impact since 2009 and remain steadfast in transparently sharing our progress through our annual ESG reports and other disclosures.

For additional information on our engagement with external organizations on climate change legislation, see our 2023 CDP Climate Change Response.