Sustainability drives supply chain decisions for 80 percent of APAC businesses

Federal Express Corporation (FedEx), one of the world’s largest express transportation companies, has released findings from its Asia Pacific (APAC) survey showing that 80 percent of small and medium enterprises (SMEs) in the region now consider environmental concerns when trading with Europe, with sustainability playing an increasingly significant role in logistics decisions.

The survey, which examined consumer and business attitudes on sustainability and cross-border trade, reveals that Southeast Asian markets are leading this trend, with over 55 percent of SMEs in Malaysia and Indonesia prioritizing sustainability in their supply chain choices.

Consumer demand is driving the shift toward sustainable practices, with 84 percent of APAC consumers pushing businesses to develop eco-friendly online shopping options.

Environmental responsibility has become a key differentiator influencing purchasing decisions, with 81 percent of APAC consumers preferring companies that appear to operate more sustainably compared to competitors offering similar products without the same visible operational integrations of sustainability.

While product integrity and competitive pricing remain key preferences for online shoppers, nearly four in 10 APAC consumers are willing to pay premium prices for sustainable packaging.

As environmental awareness grows among consumers, businesses across the region are recognizing that sustainable practices are no longer optional but essential for companies to remain competitive in the digital marketplace.

“We are seeing sustainability shifting from a compliance checkbox to a key driver of growth, resilience, and differentiation in global commerce,” said Salil Chari, regional president for Asia Pacific at FedEx.

“At FedEx, we are committed to supporting this shift, aiming for carbon-neutral operations globally by 2040. We are innovating our services, optimizing our network, and providing smarter digital tools to help businesses turn sustainability ambitions into action, enabling lower-emission shipping decisions that strengthen competitiveness and can reduce environmental impact.”

“Philippine businesses are turning environmental stewardship into a strategic advantage in international markets,” said Maribeth Espinosa, managing director of FedEx Philippines.

“FedEx cross-border trade solutions provide practical tools and trusted expertise that help local exporters meet evolving buyer expectations and compete confidently in a sustainability-driven economy.”

FedEx is investing in cutting-edge technologies and infrastructure to meet the growing demand for sustainable logistics while reducing environmental impact and boosting operational efficiency.

The company’s artificial intelligence-powered Stops Sequencing tool optimizes delivery routes in real time based on package volume and customer specifications, intelligently planning delivery sequences and minimizing unnecessary mileage to reduce carbon emissions while improving operational efficiency.

FedEx also provides customers with visibility needed to make informed sustainability decisions through FedEx Sustainability Insights, a cloud-based platform that offers enhanced transparency into environmental impact by using near-real-time FedEx network data to estimate CO2e emissions for both individual tracking numbers and entire FedEx shipping accounts.

On the aviation side, FedEx recently began using sustainable aviation fuel (SAF) at Chicago O’Hare and Miami International Airports, marking another step in reducing aviation-related emissions within its global air network.

In the last mile, FedEx is transforming urban delivery through fleet electrification, with electric vehicles now deployed across several APAC markets, including Japan, New Zealand, Singapore, and Thailand, accounting for more than 20 percent of the company’s delivery fleet in China.

In Taiwan, electric tricycles have been introduced to better navigate dense urban environments, reducing emissions while improving delivery efficiency.

The company said it remains dedicated to delivering faster, smarter, and more sustainable shipping solutions that empower customers to succeed while delivering a more sustainable future as cross-border trade continues evolving.