XPO Logistics Inc: Disclose Climate Transition Plan

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WHEREAS: The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 in order to limit global warming to 1.5 °C.[1]

XPO Logistics, Inc., a leading logistics provider, faces increasing climate regulation in key operating corridors like California, Pennsylvania, and New Jersey, which mandate significant emission reductions and zero-emission vehicle targets by mid-century.[2] Seventeen states have set targets for 100% zero-emission truck sales by 2050. XPO acknowledges in its 10-K that changes in environmental regulations could impact operations but overlooks critical climate-related risks that could disrupt its business model, including extreme weather and temperature variability that could damage infrastructure, delay shipments, and inflate operational costs.

XPO Logistics has initiated measures like fleet efficiency, alternative fuels, and safety improvements, but these actions do not constitute a comprehensive Climate Transition Action Plan aligned with the 1.5-degree target. Previously, XPO aimed to reduce LTL carbon emissions by improving load factors and achieving higher fuel efficiency, but these targets did not align with the Paris Agreement.[3] Further, its 2024 ESG report omits earlier goals and lacks any new emission reduction targets, with no emissions data disclosed since 2021. XPO’s silence on a decarbonization plan is a critical oversight.[4]

XPO’s fleet includes a variety of medium and heavy-duty vehicles, with plans to increase linehaul capacity to enhance cost efficiency. By 2030, battery electric vehicles are projected to reach cost parity with diesel, bolstered by greater energy efficiency and lower operational costs.[5] Manufacturers like Daimler and Volvo aim to sell only zero-emission trucks by 2040. Despite these trends, XPO’s decarbonization strategy remains ambiguous, risking its profitability and market position.

By adopting more robust climate targets and a comprehensive CTAP, XPO could enhance its market competitiveness and appeal to sustainability-focused investors, much like UPS and FedEx, which have set ambitious 1.5°C-aligned targets and detailed decarbonization strategies.[6][7] Unlike CH Robinson and Knight-Swift, which have not committed to specific science-based targets or outlined comprehensive CTAPs, XPO could stand out by setting clear, ambitious climate goals. This proactive leadership in climate action could not only gain XPO market share but also position it as a leader among its peers.

BE IT RESOLVED: Shareholders request that XPO issue near and long-term science-based greenhouse gas reduction targets aligned with the Paris Agreement’s ambition of limiting global temperature rise to 1.5 ºC and summarize plans to achieve them.

SUPPORTING STATEMENT: In assessing targets, we recommend,

  • Taking into consideration approaches used by advisory groups like the Science Based Targets initiative;

  • Developing a transition plan that shows how the Company plans to meet its goals, taking into consideration criteria used by advisory groups such as the Transition Plan Taskforce, Task Force for Climate-Related Financial Disclosures, CDP, Climate Action 100+, and Ceres;

  • Applying to join coalitions and/or commitment campaigns that accelerate the deployment of zero emission vehicles in the U.S., such as the Corporate Electric Vehicle Alliance, the Electric Fleet Readiness Group, or EV100.

Resolution Details

Company: XPO Logistics Inc.

Lead Filers:
As You Sow and Mercy Investments

Year: 2025

Filing Date: 
December 2024

Initiative(s): Climate Emissions Reduction Targets and Actions

Status: Filed

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