XPO is purpose-driven. We know our success depends on a strong governance structure, good corporate citizenship, inclusive workplaces, environmental responsibility and ethical business conduct that’s beyond reproach.
To our stakeholders
Sustainability is a gauge of resilience. As we issue our 2019 Sustainability Report, COVID-19 is sweeping across the globe, testing the resilience of our industry in an unprecedented way. At XPO, the strength of our culture is equipping us to meet this and other challenges.
As the crisis unfolded, we adapted to deliver on our responsibility to customers, communities, colleagues and shareholders. We’re listening to our frontline employees and taking measures to protect them as they perform essential services, while working with customers to adjust resources and capacity. Together, we’re working to fight the spread of COVID-19 and maintain the flow of vital supplies to families, communities, hospitals and businesses.
We demonstrated our resilience when our Expedite operation flew pallets of masks to the current epicenter of the pandemic, New York City. It inspired the motto, “We’re feeding the world,” that our supply chain employees embraced when they helped a food manufacturing customer increase pasta production to 8,000 tons a week to provide food to families sheltering in place. It was inherent in our corporate policies and protocols, ranging from pandemic paid sick leave to enhanced workplace cleanings. Finally, we saw our resilience when the global demand for face masks outstripped supply, and our employees began to proactively sew masks for healthcare providers and each other.
Everything we do to keep supply chains moving is rooted in our purpose-driven approach to sustainability. We put safety first; we operate an advanced network of assets and technology solutions; and we hire resourceful people who are motivated to tackle complex challenges. Throughout 2019, we undertook several broad efforts that were built upon our strong culture.
In 2019, we rolled out new benefits for women and families that are among the most progressive in business. These additions reflect how carefully we listen to our employees. Our Pregnancy Care Policy allows pregnant employees to adjust their work life around pregnancy – not the other way around – providing flexible work arrangements and 80 hours of pre-natal paid time off. We also offer up to an additional six weeks of paid time off for family bonding after the birth or adoption of a child. Approximately 1,000 employees have taken advantage of these new benefits.
We also reward those who are eager for training opportunities. Last year, XPO University, our online learning portal, created nearly 340 new courses, including frontline leadership curricula, certifications for sales, dock and freight leadership positions and ethics training. We continued XPO University’s global expansion, now reaching most of our workforce. These efforts culminated in nearly three million training hours for employees across North America and Europe.
A third area of focus is climate change. As the coronavirus pandemic taught us, climate change is best addressed by the coordinated actions of businesses and governments. Throughout 2019, we worked with customers on innovative approaches to tackling this pressing global challenge. In Europe, we continued to invest in alternative fuel vehicles to reduce the carbon footprint of our fleet. We now have more than 200 liquified natural gas (LNG) vehicles that reduce fine-particle emissions and generate up to 70% fewer NO2 emissions than the limit permitted by the Euro VI Standard.
Our expertise in circular economy practices is also growing. We increased the number of initiatives in 2019 focused on keeping materials in the system, ranging from simple actions such as reusing packaging and pallets at our warehouses to implementing complete reverse-logistics operations. At one of our reverse-logistics locations in the US Midwest, for example, we handle all the returned items for one of the world’s largest manufacturers of athletic shoes. Our team evaluates every shoe to assess its quality for resale. For shoes that don’t make the cut, XPO partners with our customer to grind the shoes into plastic pellets for playground surfaces.
While we’re pleased with our continued progress, we remain a young company with many opportunities ahead to strengthen our impact. We’re tracking our business activities closely and responding surgically to data trends as they emerge.
I want to thank my fellow XPO employees for their dedication. Looking ahead, I’m confident that we’ll continue to find ways to maximize value for our shareholders, employees, customers and other stakeholders while managing the business responsibly.
Brad S. Jacobs
Chairman and Chief Executive Officer
We believe sustainability is good business and the right thing to do. Sustainable thinking is embedded in our operations, governance and strategic blueprint, reflecting the expectations of our employees and customers, and our commitment to purpose-led progress. Working with our colleagues, customers, suppliers and other stakeholders, we’re fostering equitable workplaces for our employees, making a difference in our communities and promoting the transition to a low carbon economy.
At XPO, we maintain our dynamic culture by creating safe workplaces, promoting teamwork and encouraging diversity. We seek out talented individuals who want to join us in making a difference and moving the world forward, locally and globally.
Nothing is more important than our employees’ safety – period. Safety is our core value, and it unites us and influences everything we do. We put safety first for each other, our customers, our communities and our environment.
We’re committed to reducing the impact of our operations on the environment, particularly with respect to climate change, greenhouse gas emissions and biodiversity – and we’re helping our customers do the same.
The best way to guarantee our success and that of our stakeholders is to meet and exceed the highest standards of business conduct. We’re proud to be named by Fortune magazine as one of the World’s Most Admired Companies. It reflects how others see us and shows that we’ve earned their trust.