For small and medium-sized enterprises (SMEs) in Asia-Pacific (APAC), sustainability is increasingly seen as a driver of competitiveness rather than simply a matter of compliance. As customer expectations evolve and regulations tighten, more businesses are recognizing that an effective sustainability strategy is not only a means of reducing environmental impact, but also a path to greater efficiency, growth and long-term profitability.
FedEx is working to support the sustainability goals of SMEs by embedding sustainability into its own logistics ecosystem, from more sustainable fleet solutions to data-driven tools that support better decision-making. Beyond reducing carbon emissions, these efforts are designed to drive down operational costs, seize new revenue opportunities and improve customer satisfaction.
At FedEx, sustainability principles inform business decision-making and, as a result, the services it offers customers. Pursuing its goal of carbon neutral operations by 2040 presents opportunities for FedEx to unlock greater efficiencies across its physical network, ultimately for the benefit of customers, team members, communities and the bottom line.
More efficient operations—from route optimization and digital documentation to the use of renewable energy and automation—can eliminate redundant processes and help teams focus on higher-value work. For instance, the FedEx South Pacific Regional Hub in Singapore began using solar panels that meet more than half of the facility’s total electricity demands, while the FedEx Incheon Gateway in South Korea is powered in part by 2,400 rooftop solar panels, reducing reliance on fossil fuels and potentially generating long-term cost savings. Other FedEx facilities across APAC are also being upgraded with energy-efficient systems.
Beyond facility efficiency and renewable energy, FedEx is also looking to alternative fuels to help reduce emissions and power its fleet. FedEx started to use sustainable aviation fuel (SAF) at Los Angeles International Airport (LAX) in 2025; the fuel will account for roughly a fifth of all jet fuel consumed annually by FedEx at LAX, addressing aviation emissions alongside ground transportation.
More Sustainable Deliveries With Smarter Networks
Last-mile delivery, often the most resource-intensive part of the supply chain, is being transformed by electrification and technology. In APAC, FedEx is rolling out electric delivery vehicles (EVs) for last-mile deliveries that are tailored to the needs of local markets.
This shift is already visible in markets like Singapore, where FedEx has introduced custom-built electric vans. In China, EVs now make up more than 20% of the country’s FedEx delivery fleet, while new additions were also made to the fleet in Malaysia, New Zealand, Japan and Thailand. FedEx also completed its first cross-border EV delivery between Malaysia and Singapore. In Taiwan, the company has even introduced electric tricycles to navigate dense urban environments more efficiently.
This transition has business implications beyond sustainability. With fewer emissions, lower fuel costs and reduced maintenance needs, FedEx is creating a more resilient network.
Delivering Measurable Impact for Customers
While FedEx continues to transform its own operations, it also recognizes the need to support customers to meet their sustainability goals. In particular, a company’s ability to measure and manage carbon emissions has become critical.
To address this, FedEx has developed FedEx®Sustainability Insights, a self-serve digital platform that enables customers to track and analyze emissions data related to their shipments across the FedEx network.
This tool provides granular data on shipment-related emissions by mode of transport, service type and geography, enabling businesses to identify high-emissions routes and make emissions-informed logistics decisions.
FedEx has also introduced paperless solutions such as Electronic Trade Documents, which allow customs information to be submitted electronically. This not only reduces paper usage across millions of packages daily but also helps to make cross-border shipping more efficient and increase customer satisfaction.
Making a Difference Beyond Business
FedEx’s sustainability approach also extends into the communities it serves. Through FedEx Cares, the company’s global community engagement program, it supports local sustainability and education initiatives across the region.
In FY25, FedEx has significantly stepped up its support for volunteer-driven environmental initiatives in APAC, with volunteer participation in community projects increasing 20% year-on-year. The number of sustainability-focused community programs also grew 14% year-on-year during the same period. These initiatives have made a tangible impact on local communities and ecosystems, from restoring mangrove forests in Bengkalis, Indonesia to cleaning up riverbanks in Tokyo, Japan. Collectively, FedEx team members have planted 3,465 trees and native plants, helping preserve and protect natural ecosystems where the company operates.
The annual FedEx Cares Purple Tote Campaign remains a cornerstone of the company’s community engagement efforts. In FY25, over 800 team members from across APAC dedicated more than 1,000 volunteer hours to collect and donate more than 3,600 kilograms of essential supplies. Through collaboration with 20 non-profit organizations, these efforts impacted over 1,600 beneficiaries, including young children, the elderly and underserved communities.
FedEx has also expanded its 2025 Library Program, recognizing education as essential to sustainable development in rural and underserved areas. The initiative reached 40 schools and communities across China this year, providing educational resources that benefit approximately 9,000 children and teachers by creating conducive learning environments.
For SMEs looking to give back to their communities, these programs offer useful models of how to align business goals with social impact. Volunteering can also strengthen employee engagement, while partnerships with non-profits can amplify reach and effectiveness.
Strengthening Customer and Employee Loyalty
Whether it’s through more sustainable operations or community initiatives, a strong sustainability strategy can help SMEs attract more environmentally conscious customers, build brand loyalty and differentiate themselves in competitive markets. Increasingly, consumers expect carbon-efficient delivery options and often prefer to buy from brands with credible sustainability practices. This creates a “flywheel effect”: responsible sourcing and shipping contribute to customer satisfaction, which can in turn drive repeat business.
Internally, sustainability also plays a role in talent acquisition and retention. Companies with strong sustainability values may be more likely to attract top talent and foster a culture of engagement. A positive workplace culture, supported by clear values and actionable initiatives, helps improve retention and boost team morale, which are particularly valuable for SMEs competing for skilled talent.
A Collective Effort
Businesses now view sustainability as a core strategy that requires collaboration across the value chain. FedEx works alongside its customers, technology partners and industry peers to help scale solutions that support sustainable, smarter trade across APAC.
Whether through carbon-efficient shipping options, emissions tracking tools or smarter infrastructure, SMEs can make informed decisions to help optimize their environmental performance. By doing so, they are building a foundation for long-term resilience and growth.
Ultimately, sustainability is about unlocking value. Through investment in innovation, smarter operations and data-driven services, FedEx is helping SMEs across the region seize new opportunities and build a logistics strategy that works for both the bottom line and the planet.
