Sustainability Report
2022
2022 EXPEDITORS SUSTAINABILITY REPORTTABLE OF CONTENTS

Contents

CEO Letter

ESG Sponsor Letter

CEO Letter

2

Executive Sponsor Letter

35About Expeditors

6

Environment

11

Highlights

About

Environment

SocialGovernance
Board OversightGovernanceIndices29
30

Cybersecurity & Privacy

32

Business Continuity

34

Ethics & Compliance Structure

35

Indices

36
37

Environmental Management

12

SASB Disclosures

Energy & Emissions

14

Task Force on Climate-Related Financial Disclosures (TCFD) 38

Waste

17

Water

17

Social18

Social Responsibility

19

Employee Relations

19

Job Training Programs

21

Community Involvement & Charitable Giving

23

Service Provider Recognition & Appreciation

24

Security, Health & Safety

25

Security

25

Health & Safety272022 EXPEDITORS SUSTAINABILITY REPORT

About this Report
We continually work to provide meaningful disclosure on a wide range of sustainability
efforts taking place throughout our facilities around the world. Throughout this report, we
will show how the pillars of our sustainability program are woven into our business anddemonstrated through our management approach, key initiatives, performance, successstories, and future goals. Each year we aim to enhance our disclosure on Environmental,
Social and Governance (ESG) matters while monitoring developments in ESG reporting.
This year, we remain aligned to the Sustainability Accounting Standards Board (SASB)
disclosures for Marine Transport and Air Freight, and the Taskforce on Climate-related
Financial Disclosures (TCFD).

1

Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndicesA Letter from Our CEO
At Expeditors, we take sustainability
seriously and are proud to present ourcurrent sustainability report, which we update
at least annually to highlight our continuous
progress and latest achievements. This year,
we highlight how we set greenhouse gas(“GHG”) emissions reductions targets andcontinued to take care of our people and ourservice providers as the severe operating
conditions in global supply chains began torecover to pre-pandemic levels toward the endof the year.
Jeff Musser, President
and Chief Executive Officer







2022 EXPEDITORS SUSTAINABILITY REPORTWe are proud of the fact that we have always
put our people first. This strategy, fueled byour unique culture, has been crucial to our
success over the years.

Above all, Expeditors focuses on sustaining
its financial health while meeting ourcustomers’ primary need for pricing
efficiencies.

On the environmental front, we recognize that
we have the greatest positive impact on theenvironment when we help our customers
eliminate waste and pursue their supply chaintransformation strategies.

Given stakeholders’ increased expectations
for companies—including ours—to measure,manage, and report their ESG risks andopportunities, Expeditors can provide customers
increased efficiencies and reduced costs while
minimizing their environmental impacts.

Emissions Reduction Targets – For the firsttime, we set enterprise-wide Scope 1 & 2GHG emissions reduction targets for ouroperations. Further details regarding ourtargets and timelines are included on page
14 of the Environment section below.
Service Provider Appreciation – Once again,
we made special efforts this year torecognize and appreciate our trucking,airline, and ocean carrier partners for their
hard work in the face of what at times felt
like impossible circumstances.
Protecting Our People – We continued toprotect our people with the safety protocols
in our phased approach to COVID-19
response, while complying with widely
varying rules from local health officials in
different countries, such as the lockdowns in
China.

Eliminating Waste – Our core business,freight consolidation, involves the combiningof multiple different shipments in an
efficient manner to maximize space
utilization and, consequently, minimize theconsumption of resources. Our businesssaves money for our customers while being
measurably better for the environment.
Green Supply Chain Transformation –We successfully closed our first Sustainable
Aviation Fuel (“SAF”) arrangement for one of
our customers. We remain uniquely
positioned to help our customers leverage
more fuel-efficient fleets and lower carbon
routing options precisely because we do not
own transportation assets. We remain
neutral and nimble: free to tailor solutions
to customers’ needs and poised toaccelerate the transition to next-generation
assets as they become available.
Data-driven Metrics – On top of this, ourvisibility tools and supply chain “digital twin”
solutions deliver the critical data customers
need to drive and measure their green
supply chain transformation targets,
including our “Living Model” Carbon Modeler
further described on page 16.

We explain our approach and highlight key
accomplishments in greater detail throughout
this report. We invite you to explore what weare doing, ask questions, and provide
valued feedback.
I want to thank our entire team for their tirelessefforts around sustainability in 2022 as we
continued to persevere through unprecedented
supply chain capacity constraints that createdchallenging conditions in which to service ourcustomers at the operational level. By investingin sustainability, continuing to safeguard ourpeople, and recognizing our service providers,
we invest in Expeditors’ future and the future of
our employees, customers, service providers,and communities.
Sincerely,

Jeff Musser
President and Chief Executive Officer2

Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndicesA Letter from Our ESG Executive Sponsor
Expeditors is committed to the fundamental
values implicit in environmental, social andgovernance (ESG) as part of our businessmodel. These values are reflected in thevarious long-standing mechanisms we have inplace to promote the best interests of all
Expeditors’ stakeholders – including
shareholders, employees, service providers,customers, and communities. This
commitment and its results have not goneunnoticed:
Todd Brown, Vice President,
Associate General Counsel,
ESG Executive Sponsor• In 2021, we were honored to place in the
top 3% in the U.S. Environmental
Protection Agency’s SmartWay program
based on average performance rankings
among 742 logistics companies.1• In 2022, we obtained a “low risk” ESG
rating from Sustainalytics/Morningstar,ranking in the top 7% of firms in our
industry group.2
We are proud of the fact that theseachievements are a natural consequence ofexecuting against our core business strategy
effectively and ethically.

Reflecting on 2022, we made significant
investments in the structure of ourEnvironmental Sustainability program as
further detailed below, and we refined andfocused our ESG priorities based on insights
gleaned from a formal ESG materiality
assessment. Seeing our ESG initiatives
continue to advance, we are proud of the factthat we have had our ESG Committee in place
for more than six years now.
WHAT IS THE PURPOSE OF OURSUSTAINABILITY REPORT?
By publishing this report, Expeditors is pleased
to be able to tell our story—how ESG fits into
our company’s culture, mission, and goals,
and how we are making consistent progress
through our initiatives. We hope this reportserves not only as a source of education andvalidation for our stakeholders, but also as asource of inspiration for sustainability efforts
in supply chain and logistics as a whole.

In our report, you will see that:We have always said that superior financial
results are essential—no change there.
We have always said that ours is a place of
unlimited opportunity—no change there.

What is evident from our report is the power of
our unique culture that has organically set inmotion our efforts to:

HOW DO WE APPROACH SUSTAINABILITY
AT EXPEDITORS?
At Expeditors, we have been quietly andsteadfastly going about our work in theseimportant areas for many years.

We have always said our people come first—no change there.



Build Green Teams in our districts
motivated by passionate people seeking
ways to save the planet throughoperational efficiencies while helping
our customers explore green supply
chain solutions
Create opportunities for youth andveterans through Opportunity Knocks
and Avasar
Support our corporate charitable giving
program and encourage districts to get
involved locally through giving andvolunteer activities
Organize Safety Teams in every district
to make sure we continue to protect ourpeople1 The EPA SmartWay program reports performance rankings across six emissions categories: CO grams per mile, NOx grams per mile,
2

Particulate Matter (“PM”) grams per mile, CO2 grams per ton-mile, NOx grams per ton-mile, and PM grams per ton-mile. Expeditors’
average ranking across the six categories placed it #19 out of 742 logistics companies on the list.
See https://www.epa.gov/smartway/smartway-carrier-performance-ranking
2 Expeditors ranked #26 out of 392 firms in the Transportation industry group, as of September 2022.

See https://www.sustainalytics.com/esg-rating/expeditors-international-of-washington-inc/1008148317

2022 EXPEDITORS SUSTAINABILITY REPORT

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Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndices(Continued - A Letter from Our ESG Executive Sponsor)

KEY DEVELOPMENTS AND INITIATIVES
On the environmental front, we madeadditional strides both to manage our own
GHG emissions and to help our customers
eliminate waste and pursue their own supply
chain transformation strategies. These
efforts culminated in several key actions:

We hired a new Director – Environmental
Sustainability – a new role for ourorganization.
We completed a formal ESG materiality
assessment for the first time.
We set our own Scope 1 & 2 GHG
emissions targets as further outlined
on page 14 of the Environment
section below.

As we gain momentum with these steps
forward, we will continue to focus on making
a difference not only by managing our own
emissions, but also by collaborating with ourcustomers and service providers – something
we are well-positioned to do because we
operate as an intermediary at the supply
chain orchestration level (i.e., we are
non-asset based).
METRICS AND REPORTING
On the metrics front, we remain mindful of
the rapidly evolving and varied landscapeof ESG reporting. We continue to monitor

2022 EXPEDITORS SUSTAINABILITY REPORT

competing proposals and standards. These
include the Stakeholder Capitalism Metrics
created by the International Business Councilof the World Economic Forum as outlined intheir report entitled, “Toward Common Metrics
and Consistent Reporting of Sustainable Value
Creation” (with its four organizational pillars:
1) Principles of Governance, 2) Planet, 3)
People, and 4) Prosperity), as amplified in
September 2020 by the supplemental report
entitled, “Measuring Stakeholder Capitalism.”
In addition, the U.S. Securities and Exchange
Commission (“SEC”) is expected to issue newrules to enhance and standardize climaterelated disclosure requirements soon, and the
newly-formed International Sustainability
Standards Board (“ISSB”) has stated that it will
issue the first ISSB Standards in June of 2023,
which will replace the Sustainability
Accounting Standards Board (“SASB”)
Standards starting in 2024.

GRATITUDE
We want to thank all of our employees for theirtireless efforts—year in and year out—toreinforce our culture through their sustainability
efforts worldwide. We also wish to thank our
ESG team members for their work in leading
our sustainability efforts at Expeditors. I am
extremely proud of not only what we are doing,but also how we are doing it: authentically,
tirelessly, methodically, and always in keepingwith our culture, mission, and goals.
Sincerely,

Todd Brown
Vice President, Associate General Counsel
ESG Executive Sponsor

For the purposes of this year’s report, while we
wait for the ESG disclosure frameworks tofurther coalesce, we are once again mapping
our disclosures on a range of ESG topics toselected metrics outlined in the SASB
Standards and in the Task Force on ClimateRelated Financial Disclosures (TCFD) that are
directly relevant to our non-asset, knowledgebased, business model. You will find our SASB
and TCFD disclosures indexed in the Indicessection at the end of this report.

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Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndices

2022 Highlights
Environmental
Data

SocialData

SafetyData

61 hours

0.42

ENERGY

115.398 GWhGovernance
Data

33%*

energy usageof training per employee

Recordable Incident Rate

Women onthe Board

SCOPE 1 EMISSIONS

30

0.45

100%

12%

0.33

9,742.91

metric tons CO2emanagement
trainees
graduated

Days Away Restricted orTransferred (DART) Rate

SCOPE 2 EMISSIONS

45,774.40

metric tons CO2e

SCOPE 3 EMISSIONS

1,139.36

increase in total employee
contributions to Corporate
Matching Gift Campaign

metric tons CO2e

24

WASTE

2,500+

total trees saved since
starting tracking*As of the date of publication of this report.

2022 EXPEDITORS SUSTAINABILITY REPORT

employees completed
required compliancetrainings

Lost Time Incident Rate0

Fatalities

offices provided skill
training or financial
contribution throughOpportunity Knocks Youthprogram5

AboutContents

CEO Letter

ESG Sponsor Letter

Highlights

Products, Services & Markets
Founded in 1979, Expeditors
International of Washington, Inc. is a
global, service-based logistics company
that specializes in transportation andsupply chain management solutions.
We work with customers across industries,
including retail, fashion, technology, oiland energy, manufacturing, healthcare,
automotive, and aerospace.

We offer reliable, cost-effective
transportation choices to our customers
via air, ground, ocean, and multimodal
options and improve customers’ supply
chain performance through our 		technical solutions.
We also provide customs and compliancemanagement, warehousing, anddistribution services.

About

Environment

SocialGovernanceIndices

Freight consolidation is at the core of ourbusiness and involves the combining ofmultiple different shipments in an efficientmanner to maximize space utilization. It
minimizes the consumption of resources,
therefore, saving our customers money while
being measurably better for the environment
by reducing unnecessary waste.
Expeditors uses a non-asset business model
to perform this important supply chain
optimization role, meaning that we do not own
or operate any airplanes, ships, or trucks.
For more information on our services andperformance, please review our 2022 Annual Reporton Form 10-K.

Our Workforce
Our employees are our most valuable asset —they set us apart in the industry by promoting
both operational excellence and customer
service. As of December 31, 2022, we employedapproximately 19,900 people worldwide.

2022 EXPEDITORS SUSTAINABILITY REPORTOur Employees

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Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndices

Countries of Operation

In addition to our corporate headquarters
in Seattle, and our regional headquarters
in London, Dubai, Shanghai, andSingapore, Expeditors operates 176
district offices across the globe. We also
maintain branch offices in several
locations that report into a given district
office.

CultureOur culture is driven by our commitment to ourpeople and devotion to exceptional customer
service. Our vision statement, shown below,
reflects these commitments and further
solidifies the people-first culture we aim
to cultivate.
Our Vision – To create unlimited opportunities
for our people through sustainable growthand strategic focus, inspiring our premiercustomer-focused logistics organization.
We foster a higher level of customer service byemphasizing organic company growth rather
than growth by acquisition. Without fear of amerger, our employees can learn and growfaster, work harder and with more confidence,
and are better rewarded for their effort.
We feel a great sense of pride in our work,
energy in what we do, and focus on customer
satisfaction.

2022 EXPEDITORS SUSTAINABILITY REPORTEuropeNorth Asia

45

21

South Asia
The
Americas70

MiddleEast, Africa,& India24

Our employees embrace
our CORE VALUES and help
support our company culture.

Excellence
Our people challenge themselves every day
to go beyond that which is expected and push
to another level—a level of excellence.

Appearance
A neat office and a neat personal appearance
speak to our commitment to a higher levelof professionalism in everything we do.

Pride
It feels good to be part of something special
and unique, and to know that you are valued.

Confidence
When we trust in ourselves and in ourcoworkers, we can achieve great things
together.
Curiosity
We encourage our people to inquire,investigate, be curious, and grow with theknowledge and inspiration that come witha great discovery.

16

Visionary
We believe in doing more than what may
be asked—to lead with insight and visionthat manage the evolving needs of our clientsand our company.
AttitudeEvery day, we bring the right attitude forservice, for teamwork, and for what it takes
to succeed for our clients and our company.

Sense of Humor
While our business is serious, a sense ofhumor keeps us listening, learning, and having
fun with the talented people we work withand for.
Integrity
The pillars of integrity—fairness, honesty,
and dignity—rest in the heart of successful
relationships with coworkers, our clients,and our service providers.
Resolute
We are resolved to do what we say, to takerisks, to be competitive, and to be determined,
loyal, firm, and fair.

8

Sustainability at Expeditors

Our holistic view ofsustainability embraces
the importance of fivegroups of stakeholders
as espoused by theBusiness Roundtable¹:

ESG Sponsor Letter

RS

Highlights

RS

M

IT I ESU

S

SocialGovernanceIndicesOur Sustainability
Program

BUSINESSROUNDTABLE

UN

Environment

CUSTOMERS

CO

M

About

YEES
PLO
EM

Sustainability is not only the right thing todo, it also enables us to make good businessdecisions by being efficiency-oriented,
highlighting potential risks and opportunities,
and strengthening the lives of our employees,
communities, and future workforce.

CEO Letter

SHAREHOLD
E

Contents

L
PP

IE

Conducting business with integrity iscentral to our mission of excellence
and leadership in the global logistics
industry and we hold ourselves tohigh standards across the threepillars of our sustainability program:Environment
SocialGovernance







Delivering Value to Our Customers:
As indicated in our Mission Statement,
we have always focused on delivering
world-class customer service.
Investing in Our Employees: Our
unique Vision Statement prioritizes our
employees first: “We create unlimited
opportunities for our people throughsustainable growth and strategic focus,
inspiring our premier customer-focusedlogistics organization.”
Dealing Fairly and Ethicallywith Our Suppliers: Through our Total
Value Proposition, we emphasize a “winwin” philosophy with our service providers
so that our success is also theirs.

Supporting the Communities
in which We Work: We have astrong tradition of giving back to thecommunities in which we work throughour Corporate Social Responsibility
activities, as highlighted in the “Social”
section of this report.
Generating Long-term Value for
Shareholders: Our financial performancein terms of cumulative returns to ourshareholders over 40 years speaks
for itself.

We believe in the pursuit ofenvironmental quality and taking
care of the environments in which
we operate. We strive to make thecommunities where we live andwork better places to do both, andthe safety and security of our people
and the security of our customers’
supply chains are a top priority.
To hear more about sustainability at
Expeditors, visit our website.

¹Business Roundtable “Statement on the Purpose of a Corporation”.

2022 EXPEDITORS SUSTAINABILITY REPORT

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Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndices

Key Affiliations & Memberships
Expeditors supports collaborative
solutions to industry issues throughinvolvement in key organizations andinitiatives. Our current memberships
focus on solutions for the largest industry
issues including climate, security, andethics. Despite our non-asset businessmodel, we participate in various climaterelated initiatives focused on helping
our service providers reduce theircarbon footprints.

2022 EXPEDITORS SUSTAINABILITY REPORT

10

Environment

Contents

CEO Letter

ESG Sponsor Letter2022 EXPEDITORS SUSTAINABILITY REPORT

About

Environment

Global locations use Scope 5 to track additional
metrics such as water use, diesel/gasoline forforklifts, garbage/recycling volume, and paper
purchases. Scope 5 enables us to validate data,find opportunities to reduce our impact, andimplement targeted efficiency programs.
Beyond our EMS, several of our locations are
ISO 14001-certified, including two locations in
the United States, one each in France andChina, and seven in Germany. We aim tostrategically increase the number of facilities
that are ISO 14001-certified.

Environment
At Expeditors, we go beyond
environmental compliance. Our
goal is to make a positive
difference through our own
operational footprint and ourpartnerships with customers
and service providers.
Expeditors’ non-asset based
business model provides several
important environmental
advantages, including our ability
to accelerate transitions to more
modern, fuel-efficient fleets asthey become available in themarket, thereby further
improving Expeditors’ and ourcustomers’ overall supply chain
footprint.

Highlights

We are taking additional steps both to manage
our own GHG emissions and to help ourcustomers eliminate waste and pursue theirown supply chain transformation strategies.
In 2022, we set our Scope 1 & 2 emissions
targets. Our focus on short term targets creates
opportunity for a specific direction on portionsof business under our direct control.

SocialGovernanceIndices

As we gain momentum, we will continue tofocus on making a difference not only bymanaging our own emissions, but also bycollaborating with our customers and service
providers – something we are well-positioned
to do as a non-asset based intermediary at the
supply chain orchestration level.
In 2022, we hired a Director of Environmental
Sustainability to drive strategy and provide
additional oversight. Supporting that new role,
our Manager of Environmental Sustainability
focuses on education and implementation.
Our Regional Environmental Leaders, in all fiveglobal geographies, are eyes and ears in thefield monitoring progress and identifying
opportunities. We recalibrated our District
Green Teams to not only encompass existing
local projects but to also take an increased
regulatory monitoring role and present
commercial opportunities to customers.

Environmental Management Structure at Expeditors
EXECUTIVESDISTRICTGREEN TEAMSREGIONAL
ENVIRONMENTAL LEADERS

GLOBALENVIRONMENTAL TEAMPRESIDENT OF
GLOBAL SERVICES

Employee-led teams
present anddeveloping in all
districts. Local
regulatory knowledge
and customerfocused. Leaders
oversee environmental
initiatives.

Identify promote,monitor, andimplement
environmental
initiatives. Monitor
customer programs
and identify regional
opportunities for global
advancement.

Director & Manager
Environmental
Sustainability oversee
the “E” in our ESG
guiding the regionaland green teamleaders in
implementing
environmental
initiatives andcustomer programs.

Sponsors theEnvironmental
Steering Committee
and is responsible forpassing strategic
decisions between the
Global Environment
Team and our
executives.

ESG COMMITTEE

Advises, strategizes,
and ensures alignment
across ESG activities
throughout theorganization.

Work with theirbusiness units to foldour environmental
strategy into ourbusiness strategy.

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Contents

CEO Letter

ESG Sponsor Letter

Listening to our Customers &Service Providers
At Expeditors, we work closely with ourcustomers and service providers to help them
reduce their impact on the environment. In
2022 we saw a much greater ask in relation toenvironmentally sustainable logistics. Green
logistics opportunities focus around four key
areas: avoidance, reduction, insetting andoffsetting GHG footprints. Through regularmanagement meetings, we present tailoredsolutions in each area that will pair best withour core offerings and match our service
provider and carrier partners. Innovative
solutions have been presented to multiple
customers keeping carbon and cost as key
drivers in the overall solutions. These include
modal shifts, supply chain speed optimization,
warehouse space optimization, freightconsolidation, alternative fuels and vehicles,
and data-based decision making.
We provide carbon emissions data to ourcustomers using the Greenhouse Logistics
Emissions Council (GLEC) Framework and
EcoTransIT software tool. This data allows
better understanding of the environmental
impacts of value chains and analyzes supply
chain impacts on a mode and lane basis.
Separate tools have been developed to show
effects of mode shifting or insetting throughthe purchase of SAF (Sustainable Aviation
Fuel) or SMF (Sustainable Marine Fuel).
Working with our service providers and carrier
partners we continue the natural evolution of
our Total Value Approach. There is an2022 EXPEDITORS SUSTAINABILITY REPORT

increased focus on our Environment &Sustainability section. Here we are enhancing
not only the quality of information reviewed
on a regular basis but also how the
information is maintained, evaluated, andinfluences decisions.
Expeditors' service provider contracts requirecompliance with environmental regulations.
We go a step further to include
environmental criteria as part of ourselection process for service providers. We
foster partnerships with service providers
that have strong environmental attributes,
such as operating fuel-efficient fleets, using
energy-efficient equipment, and having
strong environmental programs.
Lasting relationships and forecast planningwith our carriers are paramount to securing
future fleet enhancements. Great examplesof that planning and collaboration took placein Amsterdam and Bangkok where they havesourced multiple electric trucks to provide
pick up and delivery services for ourcustomers. The same approach is being
played out in many more global facilities.
Expeditors is also actively involved in Smart
Freight Centre’s Clean Cargo Working Groupand BSR’s Sustainable Air Freight Alliance,
which work to collaboratively bring together
carriers, shippers, and forwarders to reduce
freight transportation’s environmental
impact.

Highlights

About

Environment

SocialGovernanceIndices

Total Value Approach
Balancing all TVP criteria in
our non-asset model is key
to service provider selection.
Environmental Sustainability
is no different and it is an
important level of focus indetermining service provider
and carrier partnership at
Expeditors.

Relationship &Communication
Pricing& Terms

Operational
Excellence

Total Value
Proposition
Compliance,
Security & Risk

Environment& Sustainability

Innovation,
Improvement &Investment

Technology &Capabilities

Service Provider Management

QualifyEngageRelationshipResults

Contents

Energy & Emissions
As a non-asset based logistics company
serving more than 100 countries, both directly
and indirectly, Expeditors is committed toreducing our impact on climate.
We have direct opportunities to reduce energy
consumption and emissions at Expeditors’
offices and warehouses and indirect
opportunities through our relationships withcustomers and service providers. We provide
supply chain transparency that enables ourcustomers to make informed decisions about
their service providers and logistics solutions,
including their carbon footprint. We also
submit our global climate performance
to CDP annually.

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndices

GWh Energy Use

Expeditors’ Emissions
Targets and Footprint
Expeditors continues to examine
opportunities to reduce the impact of its
operations on the environment, and has
set the following greenhouse gas (“GHG”)
emissions reduction targets for theperiod 2023-2025 measured against a2022 baseline:
SCOPE 1
Reduce Scope 1 CO2 emissions per squarefoot from mobile equipment 20% by theend of 2025 via electric forklifts. This
would result in approximately 95% of theCompany’s forklifts being electric. 1

Scope 1 & 2 Emissions(METRIC TONS CO2e) 3, 4

Scope 3 Emissions(METRIC TONS CO2e) 5

SCOPE 2
Reduce Scope 2 CO2 emissions per squarefoot 15% by the end of 2025. 2
Reducing Electricity
Expeditors districts across theglobe are implementing local
practices to help reduce our
Scope 1 & 2 emissions. Budget
approvals have been made inmultiple locations for moreenergy-efficient LED motion
sensor lighting and employee
led teams have implemented
initiatives to reduce electricity
consumption through signs
and reminders.

2022 EXPEDITORS SUSTAINABILITY REPORTSCOPE -1

SCOPE-2

SCOPE-3

1 In addition, the Company plans to review all new acquisitions of mobile equipment on a going-forward basis to determine to what extent it could use zero emission vehicles and forklifts by a date certain,
based on available technology. Note: currently, some electric forklifts do not provide sufficient power to lift all cargo units handled in our operations. Our goal is to continue to assess feasibility as technology
evolves.
2 In addition, the Company plans to review all new power contracts on a going-forward basis to determine whether renewable energy could be sourced and utilized 100% in all locations, by a date certain.
3 Scope 2 values for FY2020 and FY2021 were recast due to the retroactive application of the updated US EPA eGRID emissions factors and improved data reconciliation procedures.
4 An upturn in business, new facilities, and improved data reconciliation procedures were the primary contributing factors to the increase in Scope 1 and Scope 2 in 2022.
5 Scope 3 includes business travel emissions only (excluding Asia, which is not currently measured).

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Climate-Related Risks andOpportunities
Expeditors monitors climate-related risks
and opportunities and assesses theirpotential impact on our business in the
short, medium, and long term. We monitor
climate-related risks and opportunities
through our engagement with our customers
and service providers and through our active
participation in key initiatives andorganizations focused on climate.
Expeditors’ operational model and success isbased on our ability to meet our customers’
logistics needs. To best do this we use a
non-asset model which provides flexibility towork with a range of air, ocean, and road
carriers.

CEO Letter

ESG Sponsor Letter

Expeditors’ offices are located worldwide tocreate a geographically diverse network thatprovides our customers with local support
wherever they need. Our global operations
allow our network and operating systems tocontinue operating even when a local
operation may be impacted by acute events,
including flooding or other weather issues.
Relying on the strength of our global network
and Business Continuity Plan has proven tobe successful throughout several regional,
national, and global disruptions (seeBusiness Continuity for further details).

Highlights

About

Environment

SocialGovernanceIndicesGiven our geographically diversified, non-asset
business model, we do not perceive any
material risks or opportunities related to climatechange beyond risks and opportunities inherent
in our business at this time. Our flexible
footprint and our ability to change locations,modes, and carriers based on evolving
operating conditions and customer preferencestranslate into a model that may be lesspotentially prone to acute climate-related risks
than more asset-heavy models. We areconfident that the flexibility of our non-asset
based business model, geographically diverse
network, Business Continuity Plan andEnterprise Risk Management Frameworkaround Catastrophic Risks are sufficient for
identifying, assessing, and responding topotential disruptions, including climate-relatedrisks and opportunities.

Risk/Opportunities
We recognize that some operations and offices could be impacted in the long-term by climate change, forexample due to potential compliance costs, or transition risks (e.g., related to a warehouse facility located in anarea expected to experience gradual changes in sea-level). However, it is unlikely that this type of change would
have a substantive financial or strategic impact on our overall business. We also recognize that it is possible thatcertain ports may become more or less advantageous over time; however, we anticipate that major port
operators and governments would adapt their facilities and infrastructure in response to such climate-relatedchanges, and adjacent warehouse and office space may shift accordingly. Similarly, it is possible that customers
will seek out more fuel-efficient routings or options, such as those provided by our consolidation services andmultimodal options, which could create opportunities.

2022 EXPEDITORS SUSTAINABILITY REPORT

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Contents

CEO Letter

ESG Sponsor Letter

Working with Our Customers to Reduce Emissions
We analyze customer supply chains and recommend ways to reduce costs and carbon emissions
through options such as modal shifts, reducing distances travelled and consolidating freight toutilize transportation assets more efficiently. By leveraging our tools and services, our customers
can make informed decisions regarding their transportation footprints. Because many of our tools
are focused on maximizing transportation efficiency, both cost and the environmental footprint ofour customers’ supply chains improve.
Expeditors’ Green Logistics Solutions offer our customers multiple levels of insight throughseveral different tools.
Carbon Dashboard Report: This tool illustrates emissions across a customer’s network, bymode, geography, and business entity. Significant value has been placed in this tool for bothcompanies that are advanced in their decarbonization journey as well as those in the earlystages by setting a solid baseline for their current emissions.
Supply Chain Carbon Diagnostics: This service delivers a more detailed assessment of
supply chain flows and carbon emissions, identifying opportunities and recommendations
for emissions reductions.
Supply Chain Solutions, Carbon Modeling Capabilities: To help customers take a more
expansive view of their supply chain we have developed our Living Model Platform. This
subscription service allows for a steady stream of the customer’s shipping data (across their
network) in order to simulate the activities happening in their supply chain with a single andprecise calculation methodology. This steady stream creates the foundation of their own
digital twin which provides a single, harmonized view of their carbon footprint throughout
their logistics network. This tool is our most comprehensive approach and guides customers
in reducing carbon emissions through balancing business requirements and the associatedcost and lead time needs.

We continue to evolve our reporting reflecting the changing requirements and capabilities in themarket. The GLEC framework remains the go to guidance to allow us to measure our customers'
transportation related emissions and propose and support emission reduction strategies. Our
reporting incorporates EcoTransIT, an EN16258 compliant software tool, widely viewed as theleading logistics emissions tool. The baseline emissions are presented in an interactive
dashboard that allows Expeditors and its customers to both analyze and initiate actions that
reduce carbon emissions. Once the baseline dashboards are established, initiatives (i.e. mode
shift, routing, alternative fuels or vehicles) can be modeled and implemented.

2022 EXPEDITORS SUSTAINABILITY REPORT

Highlights

About

Environment

Global Luxury Brand
Delivery Optimization

SocialGovernanceIndices

HIGHLIGHT

In 2022 we worked with a luxury fashion brand to implement asustainable solution for their China domestic market targeting store
delivery, transfers and returns without impacting service levels to theircustomers. Our solution started with accurate GHG reporting to identify
the most carbon intense lanes. Lead times were analyzed to determine
where mode shifts could be made to secure rail transportation. A
command center was set up in Shanghai to control routes and modes
in order to optimize assets by eliminating "empty" miles. Electricvehicles were utilized where available. In addition, paper was removed
as we digitized the process through document image and mobile
technology.
Through the implementation of multiple sustainable logistics
initiatives, Expeditors was able to reduce a customer's GHG emissions
significantly against a large increase in sales and shipments.

Automated system
reporting withanalytics including
GHG emission reports

Enhanced real time
visibility and reliability

45% cost reduction
from the nonoptimised model

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Contents

Waste
Digitizing operations is a key tenet in what has
been traditionally a paper-intensive business.
We strive to reduce and recycle our paper
along with other waste streams, including
computer equipment, dunnage, pallets, food,and everyday waste. Our Global Business
Operations team communicates best practices
for waste stream reductions to our district
management, who then implement them
locally. We also monitor the number of printed
pages from our online server to identify
opportunities for improvement and track paper
reduction through a Print Ratio dashboard. We
plan to report on additional waste data, such as
recycling, waste to landfill, and compost, in the
future as this information becomes available.

Paper Reduction

Expeditors has a paperless deployment
project that is focused on creating a paperlessoffice environment globally. We utilize various
strategies to reduce our paper consumption,
including:

Dual monitors at workstations

Web-based workflows for every product

Digital copies of documents



Digital customer invoices

These efforts have led to a significant
reduction in our global paper use. Since
tracking in 2015 our global districts havesaved over 26,112,706 pages or theequivalent of approximately 3,000 trees.

2022 EXPEDITORS SUSTAINABILITY REPORTCEO Letter

ESG Sponsor Letter

Highlights

About

Environment

Water

Recycling
Expeditors’ employee-led
Green Teams take ownershipof reducing waste andincreasing recycling efforts
at their local districts.
Various teams across the world have
implemented programs to reduce theconsumption of single-use plastics and tocollect and recycle items that benefit fromcoordinated collection, including batteries andcooking oil. We responsibly dispose of allcomputers and electronic equipment across
our operations in compliance with the Waste
Electrical and Electronic Equipment (WEEE)
Directive and the Restriction of Hazardous
Substances (RoHS) Directive in theEuropean Union.
Expeditors continues to offer recycling in our
digital solutions services, including within
Cargo Signal Solutions, our wholly-owned,
sensor-based logistics business. New plastic
and electronics are increasingly introduced in
the waste stream as the market continues
creating “disposable” devices. To help reduce
this waste, Cargo Signal Solutions has
implemented a recycling program for lithium
metal batteries. In 2022 we recycled 6000+
batteries from our devices and also
developed an in-house process to recycle
more than 25% of the full devices with plans
for future circularity.

Water consumption at our facilities isnonindustrial and used for drinking andsanitation purposes only. However, asignificant number of our facilities are inwater-sensitive areas. As such, our Green
Teams are empowered to proactively
identify water conservation methods basedon their facility’s activities and needs. Past
methods include upgrading to automatic
sinks and toilets and reducing water used
for landscaping. We track water
consumption at 112 facilities, and we plan
to continue increasing the number offacilities that report this information.

SocialGovernanceIndices

District
Initiatives
Our employees are passionate
about reducing the impact wehave on the environment.
United Kingdom: The London district
moved into a new a BREEAM“Excellent” 130,000 sq ft warehousereplacing a less efficient space.
China: Utilized alternative fuel vehicles
for local ocean container drayage for
specific customers through service
provider partners.
The Netherlands: Utilized solar panels
on BREEAM certified warehouse roof
to power building and electric 40 ton
trucks procured for local pick up anddeliveries.
Europe: Implemented and maintained
an electric vehicle pickup/delivery
model for specific customers throughservice provider partners.

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SocialContents

SocialExpeditors’ unwaveringcommitment to make ourcommunities a better place tolive and work is ingrained in our
culture. We integrate positive
actions into our daily practices
and procedures that build skills
and trust with our employees,
service providers, customers,
and communities to support
strong and effective operations.
To fulfill our commitment,
we provide extensive training
and support on health, safety,
and security, give back to thecommunities in which welive and work, and engage
with under-resourced young
adults and veterans on careerdevelopment to help develop
promising jobs for these
individuals.

2022 EXPEDITORS SUSTAINABILITY REPORTCEO Letter

ESG Sponsor Letter

Highlights

About

Environment

People are core to Expeditors, whether it’s ourown employees or those in the community.
Expeditors is committed to building a stronger
business while making a better world.

Our founders sought to create a different
kind of company where people could dowell for themselves – a place of “unlimited
opportunities.” Expeditors’ employees are vitalto our ability to serve our customers, manage
our partnerships with service providers,
and run our business. We are committed
to providing opportunities throughout ouremployees’ careers that help them grow.

Indices

We proactively pursue diversity in our
recruitment process. We have recruitment
programs for youth and veterans through ourjob training program “Opportunity Knocks”
and have recruitment web pages for:

Employee Relations“To create unlimited opportunities forour people through sustainable growthand strategic focus, inspiring our premiercustomer-focused logistics organization.”

Governance

We have formalized in our governing
principles that qualified female and racially/
ethnically diverse individuals must be included
as part of any candidate search.

Social Responsibility

For more than 40 years, Expeditors has set thestandard for excellence in global logistics byprioritizing our employees. Our founders
believed that if we took care of our employees,
they would take care of our customers. This
founding principle remains at the core of ourphilosophy today and is why Expeditors’
Vision Statement is about our people firstrather than logistics.

SocialDiversity, Equity, and Inclusion (DEI)
Diversity, equity and inclusion (DEI) are
fundamental to our vision of unlimited
opportunity for our employees. In 2022, ourUnited States workforce was 44% women and
42% racially/ethnically diverse persons.
Our global practice is to hire local employees
in our offices so that our operations continue
to reflect the diverse and vibrant communities
we serve, and we are extremely proud of ourhighly talented, inclusive and multi-cultural
global workforce.



Cristo Rey Network Alumni – the broadest
U.S. high school network for low-income
students, serving 98% people of color
JA Worldwide Alumni – a global non-profit
youth organization equipping young
people with employment andentrepreneurship skill sets and mindsets
Veterans and Veteran Spouses – service
members of the U.S. armed forces
returning to civilian life

Each web page, including the job openings
shown, is tailored to the respective audience
with the intention of expanding the diversityof our applicants.

We provide relevant training with our Code ofBusiness Conduct and workplace harassment
trainings as well as through self-led options on
LinkedIn Learning. Diversity is also consideredat the leadership level for our executive
succession planning and required for our CEO
and Board of Director candidate searches.

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Contents

Employee Training & Development
Expeditors is a leader in the global logistics
industry with a culture of organic growthand promotion from within that attracts highcaliber candidates. We are committed todeveloping our employees’ capabilities so thatthey grow their knowledge and experience,
have better opportunities to service ourcustomers, and further their careers. We ask
our employees to complete at least 52 hoursof training each year which can be achieved
through Expeditors’ developed training
courses, external webinars, conferences,

CEO Letter

ESG Sponsor Letterand university courses, among others. In
2021, we began providing LinkedIn Learning
to all Expeditors employees and have hadover 25,000 course completions in thisplatform since then. Thanks to the efforts ofour employees, the average hours of
training in 2022 per employee was 61, taken
either through LinkedIn Learning or throughour own internal Expeditors training catalog.

25,000 hoursof LinkedIn training
in 2021-2022

61 hours

2022 EXPEDITORS SUSTAINABILITY REPORT

About

Environment

Our commitment to our employees’
process and "hire-from-within" culture. Our
Professional Development Center (PDC)
houses our online trainings and careerdevelopment tools where goals and annual
reviews can be tracked to support completion.
We encourage a 3+1 approach where
employees have three formal touch points
with their manager throughout the year andcomplete one annual review process, which
are all tracked in the PDC, to support regularcommunication on employee development.

of total training per
employee on average

Management Training Program
For over 30 years, our management
trainee program has provided
employees with the opportunity tospend one year focused on gaining
both operational and managerial
knowledge of Expeditors business,
products and services. Employees
are eligible to apply for the program
once they have been employed atExpeditors for at least one year.

Highlights

On average, there are 5-8 programs eachyear with 8-12 employees per program
depending on district capabilities. Over500 employees have graduated fromthis program with 30 trainees graduatingin 2022.
Many of these graduates currently holddistrict and regional leadership roles,
including several vice presidents.

SocialGovernanceIndices

We also prioritize employee development by
providing upward mobility opportunities. All
job openings are posted internally to allow any
employee the opportunity to apply, and we aim
to retain employees from hire to retire.
In the past two years, we deployed 25 episodesof Career Conversations to our employees.
Career Conversations are internal podcast
interviews with leaders across our networkthat aim to encourage relationships, diversity,
career opportunities, and our company culture
throughout Expeditors. The interviews are 30minute conversations that give employees theopportunity to get to know Expeditors
leadership from diverse voices andbackgrounds and learn about their journey,
often from entry-level roles to theircurrent positions.

Labor Standards and Relations
Our expectations regarding labor standards
are outlined within our Code of BusinessConduct. This includes information on equal
opportunity employment, prohibition ofharassment, intimidation, or discrimination of
any kind, and the prohibition of forced or childlabor. Expeditors is also a party to collective
bargaining agreements with a limited numberof employees outside the U.S.

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Contents

Job Training Programs

CEO Letter

OPPORTUNITY KNOCKS YOUTHPROGRAM STATS

48
Opportunity Knocks YouthWe proudly offer opportunity to youth throughour Opportunity Knocks Youth (OKY) program.
OKY is Expeditors’ internal, annual, paidinternship program to support the professional
development of youth and young adults wholack opportunity or face more obstacles thansome of their peers by offering workplacereadiness, mentorship, skill training, and viable
career pathways. Our Senior Vice President of
Digital Solutions oversees the program, and it
is managed by our Program Director. We havegained candidates through collaboration with
Rey Network of Schools and Year Up, among
others.

ESG Sponsor Letter

have hired interns inoffered since inception in 2008

100+ young
adults have gained
long-term positions

5 countries

with tenure up to 13 years

the pandemic’s continued
2022 Despite
interruptions of internships and

STATS student work-study opportunities:

and provides Expeditors with an expanded
talent pipeline, broader employee diversity,and increased employee development, plus
engagement and positive relationships within
our communities. To further our impact, we
provide a downloadable toolkit through our“Opportunity Knocks in a Box” so that othercompanies can replicate a program like
Opportunity Knocks in their organizations.
Further information about Opportunity Knocks
is available on our website.

2022 EXPEDITORS SUSTAINABILITY REPORT

About

Environment

SocialGovernanceIndices

Our OKY Partner Organizations

7countries

625 targeted internships

Program alumni
have been hired inHighlights

10Tenyears of partnership with
The Cristo Rey Network of Schools

The Cristo Rey Network of Schools:

The broadest US high school network for lowincome students, serving 98% students of color.

During the 2020-21 school year,
Expeditors supplemented remoteclassroom instruction for 400 students
across 15 cities in the Cristo Rey
Network of Schools through hostinga guest interview series featuringexecutive leadership and other subject
matter experts from across thecompany. Guest speakers shared theirunique experiences and perspectives
as well as expanded on topics familiar
to students to help strengthen theconnection between classroom
instruction and practical application.

Year Up:

organization committed to ensuring equitable
access to economic opportunity, education,and justice for all young adults.

Since the expansion to remote outreach,
we have impacted more than 800
students in the USA and India throughworkforce development organizations.
The remote outreach impacted thesestudents via:








Career exploration
Excel skills training
Resume tips, interview skills
and mock interviews
Professional dress &appearance coaching
Guest speaking & student mentoring

Daniel began as an intern in 2012 at 16 years old. He went on to college
while working at Expeditors, gained a degree, and is now a District Sales
Executive.“Expeditors is a great company. As cheesy and cliché as it
sounds, it turns into a family. Starting my career under the Opportunity
Knocks program as an intern paved the way to build myself up not only
as a business professional, but as a person. I am grateful to be in theposition that I am today, and it all became possible with Expeditors
and the OKY program!”

24 offices provided skill training

to apprentices and students,
or financially contributed to
student work-study programs

DANIEL
Philadelphia, PA since 201221

Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndices

Opportunity Knocks for Veterans
Launched in 2015, Opportunity Knocks for
Veterans is a recruiting program that honors
veterans and hires extremely talented andhighly motivated individuals that embody
Expeditors’ cultural attributes. More than
200,000 U.S. service members return tocivilian life each year, and our programsupports veterans in their transition. Our
program has three pillars: recruit and hire,
provide career guidance and mentorship, andrecognize service. Over 50 programvolunteers have coordinated and supported
hiring and recruiting events across the UnitedStates, as we partner with various veteranservice organizations at the state and national
level.
Through partnerships with organizations
such as Hiring Our Heroes, Microsoft
Software and Systems Academy, and veteranowned service providers, Expeditors ishonored to support our veterans and service
members transitioning back to civilian lifeand benefits from adding these talented andmotivated individuals to our organization.
Despite the challenges associated with the
pandemic, the Expeditors Opportunity Knocks
Veterans program was able to hire corporate
fellows through the Hiring our Heroes
Corporate Fellowship Program and continue
volunteer efforts within local communities
supporting Flags for the Fallen and Wreaths
Across America.

The Avasar Foundation | Helping Underprivileged
Youth with Education and Employment
The Avasar Foundation (Avasar) was employee-founded and has
been part of Expeditors India’s Corporate Social Responsibility
empower talented but underprivileged children and youth througheducation, training, skill development, coaching, and mentorship.

Veteran Employees Experience with
Opportunity Knocks for Veterans“What really caught my attention immediately was
Expeditors' company culture and its core values. I
could easily relate to them, thus making my transition
from military to civilian that much easier. Expeditors isa great place for veterans. I love that I can once again
be challenged daily to learn new things, never a dull
day at work. I can also share some of my experiences
and knowledge with the team, hoping that it can also
something I missed once I left the service, I felt I
was part of a team again.”– Fernando Huerta, El Paso, TX“Expeditors is very supportive and understandingof the military community and the "up-and-move"lifestyle that comes along with it. Given the numberof locations that Expeditors has both domesticallyand abroad, there will always be a branch location
somewhere near wherever we might end up next;
almost as important, with the company’s core values
there will be a guaranteed strong continuity between
locations and a feeling of consistency along the way.”– Kiley Irvin, Seattle, WA

2022 EXPEDITORS SUSTAINABILITY REPORT

Avasar’s growing impact through Expeditors includes:
Pre-Primary Schools – 5 schools, providing 100% freeearly childhood care and education, are runningsuccessfully with 300 students. Blended learning was
adopted and digital tablets provided to support learning
online since 2020.
School Development – 7 schools adopted to improve
infrastructure. In 2022, new school buildings of
4 classrooms were constructed and donated to
3 schools; toilet facilities constructed in 2 schools.
Digital Literacy – 54 schools are now equipped withstate-of-the-art computer labs, 12 of which also offer
staff support.
Training Center – 750 college graduates have completed a three-month Job ReadinessTraining program since 2018, which includes computer skills, “soft skills” and English
conversation training.
Scholarships – Started in 2012, our program has funded the education of 210
students over the age of 14 and is largely funded by Expeditors employees. A recent
partnership with Crowdstrike in 2021 provided scholarships to a total of 15 students
between 6 and 18 years of age who may have lost one or both parents due to COVID.
This support covered tuition fees, books, uniform fees, stationery and travel costs inthe form of bus passes for two years.

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Community Involvement& Charitable Giving
At Expeditors, we embrace both theopportunity and the responsibility
to make a positive impact in thecommunities in which we live andoperate. We give to our communities
at the corporate level and globally
through our districts.

CEO Letter

ESG Sponsor Letter

About

Environment

SocialGovernanceIndices

Corporate Initiatives & Donations
Expeditors’ Charitable Giving Committee
meets twice a year to review the organizations
we partner with and donate funds to. We focus
our corporate donations on organizations
involved with research to cure insufferable
diseases and those that help individuals andfamilies meet their basic human needs. We
also allow employees to propose organizations
they would like to see the company support,
which broadens our giving reach and increases
our engagement.

Each year Expeditors conducts a Corporate Matching Gift Campaign. During this campaign
matches 50% of their donations. In 2022, total employee contributions increased 12% overthe previous year, and we were able to support 12% more charitable organizations.
At a corporate level, we donate to various charities such as:

2022 EXPEDITORS SUSTAINABILITY REPORT

Highlights

District Initiatives
communities and create their own charitable
initiatives. Beyond these district initiatives, manyof our employees generously give their money
and time to their communities at a local level.
Employees regularly partake in activities suchas charitable drives to donate supplies to those inneed and racing events to raise funds for various
causes. To further give back to their communities,
all U.S. employees, regardless of tenure, receive one
choice.

AMSTERDAMSALT LAKE CITY

WINDSORIn our Amsterdam office, scrap
wood leftover from shipments
is donated to a localorganization focused onproviding valuable training andskills to youth. The wood is
handcrafted into beautiful fences
and planter boxes. In addition to
making an impact in the lives of
local youth, upcycling thesematerials has a positive impact
on the environment andbeautifies the community.

A team of employees from our:Salt Lake City office usedtheirvolunteer day to volunteer withlocal organization that
donates handmade toys tochildren globally. They spent
the day sanding and oiling afleet of wooden toy cars thatare sure to bring smiles to little
faces in their community andaround the world.

In December, employees
from our Windsor officecooked and served a hearty
meal to homeless youth in
the area. They also ensured
that every person left witha Christmas gift that included
a winter hat, scarf, gloves,
socks, toiletries, sanitizer
and snacks.

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Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SERVICE PROVIDER RECOGNITIONSERVICE PROVIDER APPRECIATION

Our valued partners are an essential ingredient to 		
our success, and we are committed to recognizing
and celebrating achievement through our Service
Provider Rewards and Recognition Program. Our
top local providers are invited to attend a program
where we highlight outstanding performance andshow our appreciation for their partnership.

We have a tradition of showing
appreciation to our truck carriers during
the annual Truck Driver Appreciation Week,
usually held in September. Over the years,
our Districts have embraced the spirit ofthis event by organizing food and othertokens of appreciation to demonstrate
our gratitude for these valuable partners.

SocialGovernanceIndices

London celebrated more than 100 drivers
on Appreciation Day, providing each with
thank you cards, food from a local bakery,and a thermal mug to keep their tea or
coffee hot on the road. All of our drivers
work hard every day to take care of ourcustomers and we appreciate them going
the extra mile!

Expeditors offices in Beijing and Tianjin China held a joint
virtual award meeting for our valued Service Providers,selecting Beijing XiangAnDa Logistics Limit Co Inc as theirService Provider of the Year. Though the event had to be held
online due to the ongoing pandemic, our people were glad tostill be able to express their appreciation to a great partnerand recognize them for their excellent contributions in 2022.

2022 EXPEDITORS SUSTAINABILITY REPORTThis year Ankara did something different.
Knowing our Service Providers share ourvalues, they would also want to give back to
our local community. We provided them with
gifts from a local association which helps
women to thrive in business and benefits the
Leukemia Children's Foundation. They felt it
was a great way to show our appreciation andalso benefit others in a meaningful way.

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Contents

CEO Letter

ESG Sponsor Letter

Security, Health & Safety

Environment

SocialGovernanceIndices

While every Expeditors employee is responsible for following the Security Standards,
we have dedicated teams that ensure the Security Standards are properly followed and routinely updated.

Security Management Structure at Expeditors

Security

2022 EXPEDITORS SUSTAINABILITY REPORT

About

Security Standards Management

Prioritizing security, health and safety is key
to Expeditors’ success. Hear more about
security, health and safety at Expeditorsfrom our Senior Manager of Environment,
Health and Safety here.

At Expeditors, the security of our employees
and our customers’ supply chains is one of
our top priorities. Our security efforts aim
to protect our people, information, systems,
customers’ assets, and our brand. To help
achieve this goal, we have a robust Security
Program built on Expeditors’ Security
Standards – a set of global standards
integrated into our daily practices andprocedures. The Security Standards cover our
employees and our service providers, with the
expectation of strict adherence. Expeditors
is actively involved in industry organizations
and government initiatives to help implement
best practices around supply chain security
throughout the industry. We consider ourselves
leaders in supply chain security and want toensure the entire industry has processes
in place to keep everyone safe.

Highlights

DISTRICTSECURITY MANAGERSREGIONAL
SECURITY MANAGERS

Oversee all aspects of
district security including:
New initiatives

Systems
Awareness

Align efforts withstrategies developedby the Global Security
Team and support

Develops strategies forregional security teams

Expeditors’ Security Standards apply to all districts, incorporate industry
standards, government initiatives, and best practices, and cover thefollowing topics:Security Managers Requirements



Information Security

Personnel SecurityCommunication Protocols

Container Security and Seals



Security Awareness TrainingService Provider Selection andManagement

VP SECURITY,HEALTH & SAFETY

GLOBALSECURITY TEAM



Access Control



Incident Reporting and Analysis

Physical Security and Security Systems

Measurements, Audits, and Follow-up

Oversees Global
Security TeamOUR STANDARDS DRAWUPON GUIDANCE FROM:










Business Alliance for Secure
Commerce (BASC)
Customs Trade Partnership
Against Terrorism (CTPAT)
Transported Asset Protection
Association (TAPA)World Customs Organization SAFE
Framework
EU’s aviation security program,including the tenets of Regulation(EC) No. 300.

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Service Provider Security
Expeditors carefully selects our service
providers to maintain supply chain security.
Potential suppliers must go through our
pre-qualification process and participate in anaudit to confirm they are willing and able tomeet our rigorous security standards. Our
supplier requirements depend on the services
provided and include contractual obligations
that bind our service providers to Expeditors
Security Standards. Other requirements
include in-person reviews of the candidate’ssecurity and safety protocols, proof of
insurance with required coverage amounts,
and compliance with laws. We review our
expectations with our service providers andmeasure their performance on a regular basis.
This review cadence depends on a variety offactors including the level of risk associatedwith the service provider, changes in ownershipor company expansions, among others.

CEO Letter				

ESG Sponsor Letter2022 EXPEDITORS SUSTAINABILITY REPORT

About

Environment

SocialGovernanceIndices

We have been involved in key security
innovation projects such as:

Air Cargo Advance Screening Program
A program by the CBP and U.S.
Transportation Security Administration(TSA) that requires participants to submit
air cargo information in advance forshipments arriving in the United Statesfrom a foreign location.
Certified Cargo Screening Program
A program by TSA that certifies cargo
screening facilities in the United States toscreen cargo prior to providing it toairlines for transport on passenger flights.
The program requires participants to carryout a TSA-approved security program andadhere to a strict chain of custodyrequirements.

Expeditors’ representatives participate in key
security associations such as:Risk management is an important componentof our service provider security. We conduct
annual on-site risk reviews for our key district
service providers based on agreed-uponstandards. In addition, Expeditors follows
a risk-based service provider due diligenceprogram. This program is part of our efforts toensure that our service providers are
conducting business in a compliant manner,and in accordance with applicable laws, rules,
and regulations to support our customers’
logistics needs.

Highlights



Global AEO Participation
Expeditors participates in over
20 supply chain security AEO
programs globally. We continue toevaluate other AEO programs forparticipation and certification.
We have actively participated inPartners in Protection in Canada since2003, the Secure Trade Partnership/
TradeFirst in Singapore since 2009,
and the Authorized Economic Operator(AEO) programs in China, Taiwan, andseveral Member States of the European
Union (EU) since 2010, among others.
Most recently, we received certificationin Australia’s Trusted Trader Program.

American Society for Industrial Security
An organization providing security
certification, career development andresources to a global community of
security practitioners.
Transported Asset Protection Association– A nonprofit coalition of manufacturers,
shippers, carriers, insurers, service
providers, law enforcement, andgovernment agencies tackling the multibillion-dollar problem of cargo theft fromsupply chains.

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Health & Safety
The health and safety of our employees is not
only a pillar of our Code of Business Conduct,
it is synonymous with our culture and mission.
Our employees are our most valuable asset,
and it is critical that we offer a safe working
environment that attracts the best andbrightest in the logistics industry.
Our Health & Safety Program
Since 2010, we have followed our global
Health and Safety program which is focusedon maintaining workplace safety across ouroperations. The program elements include:

Designated local leadership who set
the tone and manage health and safety
Periodic hazard assessments
Internally developed and tailored safety
trainings for all employees



Local emergency response plans

Fire prevention procedures and training
for manual and










To ensure we identify and manage healthand safety risks, we require that each district
perform an annual risk assessment based
business activities. The Safety Manager
oversees completion of the risk assessment
as well as the coordination of any additionalrisk mitigation items that may result fromthe assessment. Our program also requires
updated risk assessments when the working
environment changes, such as a facility
expansion, engineering restructure, or new
facility acquisition. In 2022, Expeditors
completed a total of 440 individual risk
assessments across all of ourfacilities globally.

Highlights

About

Environment

SocialGovernanceIndices

Safety Management Structure at Expeditors
VP SECURITY,HEALTH AND SAFETY
SAFETYMANAGERS

Administer safety
trainings, conduct
annual self-audits, andensure employees
comply with program
elements.

REGIONAL
HEALTH AND SAFETY
MANAGERS

Ensure health andsafety compliancethrough regularcommunications with
Safety Managers attheir districts

SENIOR MANAGER,ENVIRONMENTHEALTH AND SAFETY

Oversee Health and
Safety program at
the corporate level

To manage Health and Safety, we use ourroadmap which includes:Working environments that are clean,professional, and in compliance withour culture and global standards

Regular safety monitoring, review,
and auditsIncident reporting and review

2022 EXPEDITORS SUSTAINABILITY REPORTESG Sponsor Letter

We manage our Health and Safety programat the corporate, regional, and district levels.
Additionally, our Global Business Operations
team completes operational performanceassessments annually on all facilities globally
to monitor compliance.

mechanical handling

Periodic safety reviews of our strategic
service providers

CEO Letter

Working environment enhancements,
such as air quality, noise control,
and radiation protection
Chemical/hazmat safety andcompliance awarenessSpill containment and environmental
response protocols



HazComm and Right to Know focus

High Hazard Work Activities safety

27

Contents

Health & Safety (continued)
Our hazardous waste standard aims to ensure
employees know how to identify, respond to,and correctly manage instances involving
hazardous waste that may arise from ourbusiness. Expeditors provides job-specifictraining to all EHS managers globally on theadherence of our hazardous waste standard
which includes:
l

l

l

l

Development of local Hazardous
Waste Plans
Posting and communication of
Expeditors Hazardous Waste
Identification Chart in all warehousefacilities
Procurement and placement ofHazardous Waste Management
equipment
Hazardous Waste/Dangerous Goods
spill response management			2022 EXPEDITORS SUSTAINABILITY REPORTCEO Letter

ESG Sponsor Letter

Highlights

We track Health and Safety training
completion in our PDC for data analysis
and accountability.

GovernanceIndices

TOTAL CASE INCIDENT RATE
5.5
4.8

.49

20

.58

.45

LOST TIME INCIDENT RATE

.40

.51

.42

20

2

21

2

1

EMPLOYEE FATALITIES

2.3

2.1

We track our Days Away, Restricted, andTransferred (DART), Incident and Lost Time
Rates as a way to measure the success of our
Health and Safety program. Our safety metrics
continue to reflect that Expeditors performs
better than the industry average. We set atarget of 0.75 or less for each of our safety
metrics, and we have continued to meet oursafety goals for the last six years.

Social3.9.58

Safety Metrics

Environment

DART RATE

In 2022, Expeditors employees andcontingent labor completed 57,210 safety
specific trainings that accounted for a totalof 47,245 hours of training.
In 2021, we successfully implemented a newcertification program for all Safety Managers
which requires 12 weeks of health and safety
training and provides consistent foundational
knowledge for employees within these roles. In
2022, Expeditors incorporated the EHS
certification into our operational performancestandards, making it a requirement for all EHS
managers to complete within 12 months of
position appointment.

About

.34

20

Expeditors' Performance

.33

1

0
2

20

0

0
1

2

Industry Average*

DART Rate: Number of incidents that had one ormore lost days, one or more restricted days, or that
resulted in an employee transferring x 200,000/work
hours.

Lost Time Incident Rate (LTIR): An occupational
injury or illness which results in an employee being
unable to work a full assigned work shift x 200,000/
work hours.

Total Case Incident Rate (TCIR): Number ofOccupational Safety and Health Administration(OSHA) recordable cases x 200,000/work hours.

*Industry averages are based on published U.S. Occupational
Safety and Health Administration/Bureau of Labor Statistics
data. They are reported mid-calendar year; therefore, 2022
industry averages are not available for this report.

28

GovernanceContents

Governance
Building value over the long termfor ourselves, our stakeholders,our customers, and our
employees is imperative to thesuccess of Expeditors, and wehave principles and standards inplace to help achieve this.

CEO Letter

ESG Sponsor Letter

Board Oversight
Our Board of Directors (Board) represents ourmost senior governance body and is actively
involved in the company’s sustainability
efforts. As of the date of publication of thisreport, Expeditors has nine directors sitting on
the Board, of which 33% are female. Because
diversity is part of our global culture, we believethat our Board should be comprised of
directors with diverse backgrounds,
experiences, and perspectives that will improveboard decision-making and effectiveness. The
Board is comprised of three committees – theAudit Committee, the Compensation
Committee, and the Nominating and Corporate
Governance Committee (NCGC). The NCGC is
responsible for overseeing our sustainability
program and meets quarterly. Its
responsibilities include reviewing climaterelated matters and identifying industry trends
and opportunities to advance the company’ssustainability initiatives and reporting, among
others. The Vice President, Associate GeneralCounsel, who serves as our ESG Executive
Sponsor, reports annually to the NCGC on
company progress.
Oversight responsibilities for certain areas ofrisk are assigned to the Board's three standing
committees and others are assigned to the full
Board. The Board and its committees regularly
discuss with management the Company’s
strategies, operations, compliance, policies,
cybersecurity and inherent associated risks

2022 EXPEDITORS SUSTAINABILITY REPORT

Highlights

About

Environment

in order to assess appropriate levels of risktaking and steps taken to monitor, mitigate andcontrol such exposures.

Executive Oversight
Expeditors’ ESG Executive Sponsor develops
our company-wide sustainability strategy inconjunction with the Executive Sponsors foreach of the three pillars of our sustainability
program. This cross-functional team includes
several Vice Presidents and Senior Vice
Presidents, reflecting broad, senior-level
representation. Each pillar has a program

ESG Management
Structure at Expeditors

Director
ENVIRONMENTAL

Program Manager
ENVIRONMENTAL

Governancemanager who facilitates sustainability
programs, empowers employees, measuresand reports progress, responds to customer
and investor inquiries, ensures employee
compliance, and more. Senior executive
management is also responsible for theassessment and day-to-day managementof risk and bringing any material risks to theattention of our Board of Directors, who areresponsible for overseeing the conduct ofour business and monitoring significant
enterprise risks.

GOVERNANCE

SOCIAL

Executive Sponsor

SOCIALRESPONSIBILITY

SECURITY, HEALTH& SAFETY

Executive Sponsor

Executive Sponsor

Program Manager
SOCIAL

Program Manager
HEALTH & SAFETY

Program Manager
GOVERNANCE

Employees

Employees
Customers& Service
Providers

Indices

ESG EXECUTIVESPONSORENVIRONMENTAL
Executive Sponsor

SocialEmployees

Employees

Customers& Service
ProvidersCustomers& Service
ProvidersCustomers& Service
Providers30Contents

Code of Business Conduct
and Policy Handbook
Our Code of Business Conduct (Code) is an
important reference that guides employees
on how to do business the right way. It
covers a range of compliance and ethics
topics including anti-corruption, conflicts ofinterest, community activities and politicalcontributions, privacy and data protection,
labor standards, security, health and safety,
and the environment, among others. Our Codeof Business Conduct applies to all employees
and service providers and is published on
our global website. Additionally, the Code iscurrently available on our internal website
in nine languages, and we plan to continue
increasing the number of translations.
Expeditors compiled our policies into aninternal Policy Handbook. The Handbook
serves as an enterprise-wide framework
to harmonize existing policies, categorize
them into relevant themes, link the themes
to more detailed operational standards, andprovide overall policy guidance. The Handbook
provides a coherent structure under which allof Expeditors’ policies are created, enforced,
and reviewed to meet the company’s goals, allwhile referencing the Code, which outlines ourprimary company business principles.

2022 EXPEDITORS SUSTAINABILITY REPORTCEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndices

Policy Framework
Expeditors’ Policy Framework outlines the clear hierarchy ofcontrols for all our governing documents. The Code provides
the governing principles that all other documentation stems
from. Policies establish roles, responsibilities and controls.

GOVERNING
PRINCIPLESPOLICIES

STANDARDS

Standards provide a uniform method of implementing thepolicies and establish performance measures. Procedures
provide step-by-step instructions on how to carry out thestandards and guidelines provide additional suggestions.

Code of Business Conduct & Internal Controls
Senior Management

Related Policies linked to Governing Principles
Policy Committee

Operational Performance Standards
Functional Leaders

Detailed Procedures & Guidelines
Functional Leaders

PROCEDURES & GUIDELINES

31

Contents

Cybersecurity and Privacy
Protecting our stakeholders’ personal data isof the utmost priority to Expeditors. Given thetechnology- and data-intensive nature of ourknowledge-based business model, we haveinvested in mandatory cyber-specific training
and frequent company-wide reminders, and ina number of controls to maintain the privacy
and security of our information and data.

CEO Letter

ESG Sponsor Letter

Expeditors employs a dedicated team ofcybersecurity experts with technical expertise,including several Certified Information Systems
Security Professionals, and cybersecurity staff
in our district offices in each region. We work
to continuously enhance our cybersecurity
capabilities in order to detect and protect
against threats and system compromise,
including running table-top exercises andsimulations.

Highlights

About

Environment

We continue to focus on the key
fundamentals of protect, monitor andrespond and leveraging industry experts andgovernment resources and associations,
including the National Institute of Standards
and Technology Cybersecurity Framework, tosafeguard the security of our systems.

SocialGovernanceIndices

We take a "protect,monitor, and respond"
approach to ourprogram.

Protect
Expeditors implements
various standards andcontrols that aim to protect
data and prevent incidents.

Cybersecurity and Privacy Management Structure at Expeditors
GLOBAL DATAPROTECTION OFFICERDISTRICTCYBERSECURITY TEAMS
Responsible for
global operational
cybersecurity as well as
policy development andcybersecurity compliance.
Leverages its alignment
with our Global IS and
Global Security, Healthand Safety structure
to protect criticalinformation.

Member of legal department.
Works with General Counsel
to update Board on relevant
privacy issues that may
impact our business, manages
Global Privacy Policy andhelps Company navigate
complex, evolving regulatory
landscape of data protection.

2022 EXPEDITORS SUSTAINABILITY REPORTCYBERSECURITY
COMMITTEE
Executive level committee.
Reports twice annually on
cybersecurity matters andcreates action plans frombiannual reviews. Works with
Global Data Protection Officer
and General Counsel to update
Board on cybersecurity mattersto provide quarterly updates toour Enterprise Risk Committee
and annual updates to our
Board of Directors on cyberrisk, information security, andtechnology risk as well as
policy development.

BOARD
OF DIRECTORS
Full board level oversightof cybersecurity matters.
Two of our Board members
have extensive cybersecurity
experience. In addition,
our Board's cybersecurity
expert meets with our Chief
Information Officer ("CIO")
on a quarterly basis, and theCompany's CIO andcybersecurity experts reportto the full Board at least
once annually.

MonitorWe measure the success of
our protection efforts throughassessments and audits andmonitor our systems for any
incidents that may occur.

Respond
We believe in continuous
improvement and implement
action plans based on ourmonitoring efforts. We havededicated teams able torespond to incidents ifthey occur.

32

Contents

CEO Letter

ESG Sponsor Letter

Privacy and Data Protection
We believe privacy and data protection forma critical element of corporate responsibility
for every organization. Customer trust — inour products, our services and our businesspractices — is foundational to our mission.
We recognize that we cannot protect ourcustomers and achieve our mission without
a deep commitment to information security
and data privacy ourselves.
As a part of our privacy complianceinfrastructure, Expeditors has a Global
Privacy Policy that regulates our collection,use, and disclosure of individuals’ personal
information; determines responsibility if
there is a violation; and assures the rights
of individuals to access their information inaccordance with applicable laws. Mandatory
annual training for all employees is included
within this policy. We also maintain an online
Privacy Statement that describes some or
all of the ways we gather, use, disclose, andmanage customer, third-party service provider
or employee personal information. We havein place industry-accepted physical, technicaland administrative security measuresappropriate to our business to safeguard andsecure the personal information we process.

2022 EXPEDITORS SUSTAINABILITY REPORT

Highlights

About

Environment

SocialGovernanceIndices

The Six Privacy Principles
Our processing of personal data follows
all six of the following privacy principles:1

Lawful, fair andtransparent

2

Purposelimitation

3

Data
minimization4

Data
accuracy5

Dataretention

6

Security andconfidentiality

Lawful, fair and transparent. We collect, use
and retain personal data in a fair, lawful, andtransparent manner by issuing privacy notices that
explain why and how we process personal data. Our
privacy notices contain the following information:
type of personal data we collect/use; purposes ofcollecting/using the data; third parties to whom
we disclose/transfer the data; security safeguards
employed; and a data subject’s rights.
Purpose limitation. We collect, use and retain
only personal data that is relevant and useful to ourbusiness operations and as needed to fulfill our legal
and business obligations. Personal data may not becollected in advance and stored for potential future
purposes unless required or permitted by law. This
simply means that personal data collected for one
purpose should not be used for a new, incompatible
purpose. There is an exception however, whenfurther processing is purely for statistical purposes
in which case, we will ensure that the data isanonymized or pseudonymized.
Data minimization. We will not collect data that
we do not have a legitimate purpose to collect andwe will not use it for something other than what itwas collected for. For example, in connection withan online service, we will not collect personal data
(e.g., contact details) that is not strictly necessary
in connection with the provision of that service,unless a data subject chooses to provide such
additional data to us.

Data accuracy. We are responsible for taking all
reasonable steps to ensure that personal data is
accurate and, where necessary, current. We
take reasonable steps to ensure any inaccurate
data is either erased or rectified without delay.
Data retention. Personal data may be stored in a
local Expeditors branch, at an Expeditors national,
regional or global headquarters, at the locations of
our service providers and customers, at one or moreof our international data centers, and in the cloud.
We will retain personal data only for as long as itis necessary to fulfill the purposes for which it wascollected (including, for the purpose of meeting any
legal, accounting or other reporting requirements
or obligations), for a period in accordance with ourrecord retention policy. If destroying or erasing
personal data is not mandatory by law, we may
make it anonymous such that it cannot be tracked
back to the individual.
Security and confidentiality We have inplace appropriate technical and organizational
security measures to protect personal data
against accidental or unlawful destruction orloss, alteration, unauthorized disclosure or access.
Similar to the manner in which we protect ourcustomers’ confidential information, the same
standards extend to all personal data that
we process.

33

Contents

Business Continuity
Our Flexible Framework Adapts
to All Types of Events
Expeditors’ ability to meet the toughest supply
chain challenges instills a great sense of
pride. We’ve successfully navigated throughhurricanes, typhoons, wildfires, political unrest
and cyber-attacks. The COVID-19 pandemic
was no different. Although the pandemicpresented its own unique challenges, including
unprecedented levels of supply chain
disruptions, delays and other operational
impacts, Expeditors persevered. Through thestrength of our worldwide Business Continuity
Plan (BCP) and our dedicated employees, wewere able to safely continue our operations
and reduce the impact on our customers.

CEO Letter

ESG Sponsor Letter

Our BCP provides a framework for protecting
the safety of our people and minimizing
adverse impacts on our operations and ourcustomers’ businesses. Within the plan
employees can find additional guidance on
how it should be implemented. The planalso includes protocols on cybersecurity andhow to escalate in response to an attack on
Expeditors’ system along with information on
key communication systems and tools.The
BCP strengthens our ability to resume regular
operations, process shipments, communicate
status updates to our global network, andreroute shipments as needed during times ofcrisis. The BCP also sets us up for successthrough its flexibility and enables us torespond to multiple disasters, of various types
and levels of severity, even if they are
occurring simultaneously in different
locations.

Highlights

Environment

SocialGovernanceIndices

BCP Framework
The BCP is made up of four
overarching steps and a wide
range of interconnected systems,
processes, and standard
operating procedures.

PREPARETRAINING

RE-ASSESS

Our People
Our Customers

TESTING

Our Service Providers
Our Systems
Our FacilitiesRESPONDCRISISMANAGEMENTTEAMSRECOVERCOMMUNICATION

1.

2022 EXPEDITORS SUSTAINABILITY REPORT

About

Prepare:Expeditors
prepares our
employees throughtraining on theinfrastructure,processes andstrategic teams
in place to respondto an event.

2.

Respond:Our employees
respond to theevent using theirtraining to protect
our people andmitigate adverse
impacts.

3.

Recover:

After the event
passes our
employees work
to return all facetsof operations tonormal levels.

4.

Re-assess:Once we haverecovered, weanalyze how
Expeditors
responded tothe event andmake continuous
improvements.

34

Contents

Ethics & Compliance
Structure
Ethics Reporting
We encourage our employees to raise ethicalconcerns by providing two ways tocommunicate concerns: our open-door policy
and our ethics helpline. Our open-door policy
encourages direct communication between
employees and leadership by ensuring that ouremployees know they can talk to any
supervisor, manager, or executive. Our ethics
helpline is operated by an independent
third-party and allows employees to report theirconcern anonymously if they choose.
Employees can find a direct link to the ethics
helpline in the Code. We take any reports ofCode violations seriously. Our Chief Ethics andCompliance Officer reviews all submissions,and periodically communicates findings to our
Audit Committee. Expeditors follows up with
employees who have raised concerns basedon their original method of communication,either directly through the open-door policy orindirectly through the hotline, even if
employees chose to report anonymously.

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndicesCompliance & Related Training
Given our global nature, we take acomprehensive approach to compliance andstrictly adhere to all applicable regulations.
We require annual training for our employees
to ensure that we remain compliant with themost up-to-date standards. Each year, every
employee goes through a one-hour Code ofBusiness Conduct training course and morethan 10 hours of mandatory compliancerelated training, based on role.
In 2022, 100 percent of our employees
completed the required trainings, globally,
which include:












Anti-Corruption
Code of Business Conduct
Competition and Antitrust
Confidential Information and Computer
Security
Cybersecurity Level II
Data Privacy and Protection
Internal Controls
International Traffic in Arms Regulations(ITAR)
U.S. Sanctions and Export
Controls AwarenessWe also provide a voluntary Sustainability
course to educate employees on company
efforts. The course shares messages
from senior leadership that focus on oursustainability programs.

2022 EXPEDITORS SUSTAINABILITY REPORT

35

IndicesContents

Indices
Voluntary Reporting
Frameworks
When applying voluntary
frameworks to our non-asset
business model, we focus
on what we can control. For
example, we include our Scope
1 and 2 GHG emissions fromour office locations and freightconsolidation warehouses but
exclude metrics that do not
apply to our business modelsuch as those tied to emissions
from airplanes, ships or trucks,
which we do not own or operate.
Set forth to the right and below
are the relevant sections of
SASB and TCFD.

2022 EXPEDITORS SUSTAINABILITY REPORTCEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndices

SASB DISCLOSURESMarine Transportation (2018) & Air Freight & Logistics (2018)
SASB Code

Accounting Metric(abbreviated)

Response

GREENHOUSEGAS EMISSIONS
Greenhouse
Gas Emissions
2022: 9742.91 metric tons CO2e

TR-AF-110a.1
TR-MT-110a.1

Gross global Scope 1 emissions(metric tons CO2e)

TR-AF-110a.2
TR-MT-110a.2

Discussion of long-term and shortterm strategy or plan to manage
Scope 1 emissions, emissions
reduction targets, and an analysis ofperformance against those targets

See pages 12 & 14

(1) Total energy consumed, (2) % fueloil, (3) % renewable(1) 605,296 GJ(2) Not applicable(3) Not determined

TR-MT-110a.3

EMPLOYEEHEALTHAND SAFETY
Employee Healthand Safety
TR-MT-320a.1

Lost time incident rate (LTIR)

2022: 0.33
Target: 0.75

TR-AF-320a.1(1) Total recordable incident rate
(TRIR), and (2) fatality rate for (a) direct
employees and (b) contract employees

2022:(1) TRIR: 0.42 (direct employees: 0.29;
contract employees: 1.18
Target: 0.75.
(2) Fatality Rate: 0.037

Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndicesTASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

Question

Response

GOVERNANCE: Disclose the organization’s governance around climate-related risks and opportunities.
1 Describe the board’s oversight of climate-related risks and opportunities.

See page 30.

2 Describe management’s role in assessing and managing climate-related risks andopportunities.

For further details on our environmental management see page 12 and for broader
sustainability/ESG oversight, which includes climate, see page 30.

STRATEGY: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning wheresuch information is material.
3 Describe the climate-related risks and opportunities the organization has identified over the
short, medium, and long term.
4 Describe the impact of climate-related risks and opportunities on the organization’s business,strategy, and financial planning.

See page 15.

5 Describe the resilience of the organization’s strategy, taking into consideration different climaterelated scenarios, including a 2°C or lower scenario.

2022 EXPEDITORS SUSTAINABILITY REPORT

38

Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndicesTASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) (CONT'D)

Question

Response

RISK MANAGEMENT: Disclose how the organization identifies, assesses, and manages climate-related risks.
6 Describe the organization’s processes for identifying and assessing climate-related risks.

7 Describe the organization’s processes for managing climate-related risks.

We identify, assess and manage climate-related risks through our ESG Committee
in conjunction with certain of our enterprise risks, which are reviewed as part of ourEnterprise Risk Management framework that is overseen by our Nominating and Corporate
Governance Committee. We utilize our Business Continuity Plan and Enterprise Risk
Management Framework around Catastrophic Risks to identify and assess potential
disruptions, including climate-related risks. See pages 30 & 34 for further details.

8 Describe how processes for identifying, assessing, and managing climate-related risks
are integrated into the organization’s overall risk management.

METRICS AND TARGETS: Disclose the metrics and targets used to assess and manage relevant climate-related risks andopportunities where such information is material.
9 Disclose the metrics used by the organization to assess climate-related risks and opportunities
in line with its strategy and risk management process.

10 Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, andthe related risks.

11 Describe the targets used by the organization to manage climate-related risks andopportunities and performance against targets.
2022 EXPEDITORS SUSTAINABILITY REPORT

See page 14.

We operate under a non-asset model and do not own airplanes, ships, or trucks. Based on
our current assessment of climate-related risks and opportunities, Expeditors does not haveclimate-related metrics that are material from a financial perspective. Please see page 14
for our energy and emissions metrics.
See page 14 for information on our targets.

39

Contents

CEO Letter

ESG Sponsor Letter

Highlights

About

Environment

SocialGovernanceIndices

Disclaimer on Forward-Looking
Statements:
Certain statements contained in this report are“forward-looking statements,” based on
management’s views with respect to future eventsand underlying assumptions that involve risks anduncertainties. These forward-looking statements
include statements regarding our sustainability
goals and plans, including our plans to reduce our
GHG emissions in line with our Scope 1 & 2 GHG
emissions targets; our plans to disclose additional
data regarding waste, water consumption, energy
usage, and emissions; the future risks andopportunities to our business related to climatechange, including potential short, medium and longterm financial, operational, and reputational
impacts; planned further investments in our ESG
strategy, program, systems and goals; potential
advancements in technology; our ability to help ourcustomers accurately calculate and model the
carbon footprint of their supply chains; and ourability to help our service providers transition tomore fuel-efficient fleets. Forward-looking
statements involve many risks and uncertainties
that could cause actual results to differ materiallyfrom those expressed or implied in suchstatements. We presently consider the following tobe among the important factors that can cause
actual results to differ materially from thecompany's expectations: costs of compliance withexisting and future environmental, social or
governance requirements, including those related toclimate change; our ability to leverage the strengthof our carrier relationships to secure space; thestrength of our non-asset-based operating model;
our ability to remain a strong, healthy, unified andresilient organization where people want to work;
2022 EXPEDITORS SUSTAINABILITY REPORT

our ability to purchase or lease sufficient costeffective electric forklifts to reduce our Scope 1
emissions; our ability to identify cost-effective
sources of renewable energy to reduce our Scope 2
emissions; and any change in our targets andprograms as our ESG programs evolve. These andother factors are discussed in the Company’s
regulatory filings with the Securities and Exchange
Commission, including those in “Item 1A. Risk
Factors” of the Company’s Annual Report on Form
10-K for the fiscal year ended December 31, 2022.
The forward-looking statements contained in thisreport speak only as of the date of publication ofthis report, which is March 21, 2023 and theCompany does not assume any obligation to updatethem except as required by law.

40

Sustainability Report2022