About this document. UPS Attention: Sustainability Report Editor 55 Glenlake Parkway N.E. Atlanta, Georgia 30328

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1 UPS Corporate Sustainability Report: Supplemental Data Table of Contents Water 2 Effluents and Waste 3 Compliance 5 Key Performance 7 Indicators About this document In, UPS reported its annual Corporate Sustainability Report to the GRI G4 framework at the In accordance Comprehensive level for the second consecutive year. The In accordance - Comprehensive level is the most rigorous option available under the G4 framework. As part of the G4 framework, we conducted an updated global materiality assessment in. The results of this assessment guided our Corporate Sustainability Report structure to ensure the content is focused on the most material sustainability issues for UPS. As a result, some topics that we disclosed in previous years are no longer included in our Corporate Sustainability Report. While some of these issues did not meet our threshold for materiality, we provide information on them because they are important elements of disclosures we provide to other sustainability entities or are of particular importance to select stakeholders. The disclosures contained in this supplemental document are provided in the same format as the associated GRI aspects. The connection between the contents of this report and our GRI G4 disclosures can be found in Appendix F of our Corporate Sustainability Report, available here: For questions on this supplemental document, or our Corporate Sustainability Report, please contact sustainability@ups.com, or write to: UPS Attention: Sustainability Report Editor 55 Glenlake Parkway N.E. Atlanta, Georgia

2 Water EN8 Over the next few decades, UPS, like many companies around the world, will see water scarcity and water stress issues that affect a significant number of locations where we have operations. While our own water needs are modest relative to other industries, water scarcity and water stress can be harmful to local communities. To address this concern, UPS has a global water stewardship strategy based on three pillars: Transparency Disclosing comprehensively measured water data for our domestic and international operations. Conservation Applying best practices for water conservation throughout the company, focusing on the top 20 percent of facilities with the highest water use. These facilities represent 80 percent of our total water usage and cost. Engagement Collaborating with world leaders on water and reporting, by sharing our knowledge, and helping them disseminate ideas and guidance. Our approach to water conservation is similar to how we manage our global logistics network we leverage our infrastructure and technology, our systems and processes, and our people. In our experience, the best results come when we combine all three. Our approach to washing our vehicles demonstrates this in action: We wash vehicles only as necessary to maintain a clean and professional appearance. We use an enzyme wash agent that is better for the environment and reduces the need for rinse water. At some of our larger hub facilities, we reclaim water from vehicle washing activities. In, we continued to assess and implement water conservation techniques that we have employed in the past, and sought new techniques and technologies that are suitable to the types of buildings and facilities we operate. We are particularly interested in improving water efficiency in cooling towers, irrigation systems, and water-cooled ice machines used to maintain hydration of employees during warm weather. In some cases, local ordinances require that our facilities maintain landscape appearance in ways that currently require significant volumes of water for irrigation. In, we implemented weather-forecasting technology in two California facilities, as well as other methods to maintain landscape appearance with less water. In, our overall water consumption increased slightly over the prior year the first time since 2010 across our three business segments. Our total water consumption was 1.35 billion gallons (5.12 billion liters or 5.12 million cubic meters (m 3 ). The table below shows global water consumption over the past four years, as measured in millions of cubic meters. The water intensity Key Performance Indicator (KPI) from our U.S. Domestic Package Segment, our largest business segment, is presented on page 7. In this segment, we have successfully maintained a downward trend in water consumption since Water consumption decreased slightly in compared to, despite increases in revenue and number of packages processed. This is due to engaging district and facility managers in our water stewardship strategy and using the World Business Council for Sustainable Development s Global Water Tool to gather better data. In some cases, unusual water consumption patterns enabled us to alert facility managers to anomalies with underlying causes, such as undetected leaks, that could be easily corrected. We continue to increase our data-gathering capabilities for water by refining and collecting better information from our international operations. Global Water Consumption U.S. Domestic Package International Package Global Supply Chair & Freight % Change 13/ % % % Total Water Consumption % 2

3 Effluents and Waste UPS is currently collecting and disclosing data for solid, hazardous, and non-hazardous waste for operations in the U.S., based on information provided by our waste disposal vendors. Because UPS is not involved in manufacturing, our management and mitigation of effluents and waste is limited primarily to solid waste disposal and recycling from supplier packaging, pallets, scrap metal, office paper, plastics and mixed recycling, and facilitygenerated waste from aircraft maintenance, vehicle maintenance, and facility operations. The complete breakdown of waste by type in the U.S. is shown in the table on the next page. Waste Management Solid Waste Management EN23 In, our solid waste disposal increased 6.9 percent compared to in U.S. facilities, due to package volume growth in the U.S. Domestic Package segment and in the U.S. operations of our Supply Chain & Freight segment. Efforts to improve our recycling programs and reporting at more than 1,200 U.S. facilities resulted in a 28.6 percent increase in reported tonnage of solid waste recycled compared to, following a 69.6 percent increase in compared to. By fully utilizing a national vendor for recycling, UPS is better equipped to manage recycling efforts and report data more comprehensively. In, this recycling effort saved UPS more than US$4.0 million in disposal costs, which benefits all our sustainability stakeholders. Hazardous and Non-hazardous Waste Management The hazardous and non-hazardous wastes we manage come from aircraft, vehicles, and facility operations. These wastes typically include spent antifreeze, used oil, spent solvents, spill residues, paint wastes, used filters, batteries, e-waste, scrap metal and leaking packages. We work with local vendors to recycle or dispose non-hazardous waste. In, UPS operating facilities in the U.S. generated 1,394 tons of hazardous waste a 1 percent decrease compared to. Vendors are well established, observe industry standard safety procedures, and are regularly audited by UPS and/or an external auditor to ensure compliance with laws and regulations. Our contracts with national and local vendors specify that we receive a cradle to grave certification letter that details responsible waste and disposal methods. Zero Waste Initiative The Vision 2050 of the World Business Council for Sustainable Development describes a pathway toward a more sustainable future. One of the pathway s ambitious elements aims at not a particle of waste, with landfills phased out within the next two decades. We began incorporating this element into our environmental sustainability program in. We first identified two facilities that were good candidates for diverting at least 90 percent of waste from landfill or incineration the generally recognized definition for zero waste programs. These facilities served as pilot projects in to collect baseline data and establish a waste transition process. As of, five UPS facilities met the zero waste criteria. We continue to deploy zero waste initiatives at 13 additional facilities throughout the US. No hazardous waste generated within the U.S. is shipped outside of the U.S.; data is not available for locations outside of the U.S. 3

4 UPS Vehicle Retirement UPS employs a structured vehicle retirement process based on the performance and cost to maintain the vehicle. As an example, UPS delivery vehicles are typically retired after 20 years of service. We utilize all salvageable parts from the vehicle, drain and recycle all fluids, then recycle the remainder of the vehicle. In, the retirement of UPS vehicles in the U.S. produced 41,559 tons of scrap metal. This is the first year we are reporting data on scrap metal from vehicle retirement. Waste Disposal & Recycling (U.S. tons) U.S. Domestic Package, Supply Chain & Freight Incinerated Landfilled Recovery Recycled Total 1. Solid Waste Disposal Total 0 77, ,102 National vendors 75,444 Local vendors 1, Solid Waste Recycling Total , ,994 Corrugated containers National vendors 22,802 Pallets & wood waste National vendors 86,565 Metals National vendors 8,868 Mixed recycling National vendors 14,759 Office paper National vendors 782 Plastics National vendors Hazardous Waste Total ,394 damaged packages, etc. National vendors 1 damaged packages, etc. Local vendors Non-Hazardous Waste Total ,579 52,205 54,875 damaged packages, etc. National vendors ,496 Electronic waste National vendors 910 Batteries National vendors 2 14 Scrap metal from vehicle retirement National vendors 41,559 damaged packages, etc. Local vendors ,226 Total Waste by Disposal Method 1,451 77,401 1, , ,365 1 Approved national vendor approval process consists of vendor site visits, audits and other internal controls 2 Rechargeable and non-rechargeable batteries excluding automotive batteries 4

5 Compliance Our policy is to comply with all applicable laws and regulations of all countries in which we operate, and in accordance with our company s high standards of business conduct. This is the policy stated in our Code of Business Conduct, which governs all employees and representatives of UPS. Through our Corporate Environmental Affairs Department, we have established site- and activity-specific programs for environmental compliance and pollution prevention. We continually evaluate new technologies and seek opportunities to improve environmental performance where possible. Everyone who is part of the UPS organization is expected to support efforts to maintain a leadership role in protecting the environment. Our environmental responsibilities include: Properly storing, handling, and disposing of hazardous materials and other waste. Managing wastewater and storm water in compliance with applicable regulations. Monitoring and maintaining the integrity of underground storage tanks. Complying with laws regarding clean air. Protecting against and appropriately responding to spills and releases. Seeking ways to minimize waste and prevent pollution. Environmental Policy and Responsibility Organizational responsibility for executing our environmental policies and management approach, as outlined below, rests with Rhonda Clark, Chief Sustainability Officer. Mrs. Clark is responsible for managing all sustainability initiatives and strategies, including company-wide performance metrics. Managers of relevant business units and departments are accountable for specific performance metrics. Our management approach includes an Environmental Policy Statement and a set of Environmental Guidance Statements that specify how the policy is to be implemented. These Statements are available at ups.com/sustainability. UPS has in place an extensive Environmental Management System (EMS) in the United States for monitoring environmental performance and following up on issues and opportunities that may arise from our monitoring activities. We developed the EMS to mirror most of the principles of the ISO standard. To ensure that our policies are enforced, we employ Region Environmental Managers and District Environmental Coordinators who monitor and maintain compliance with environmental regulations, train other operational personnel, and raise awareness of the environmental aspects of our operations. Environmental training programs cover a wide range of topics, including, among others: Water and air quality; Automotive environmental procedures; Hazardous waste management; Spill response plans; and Underground storage tanks. Our environmental training and auditing programs identify areas for improvement and outline strategies. We use a number of metrics to manage our compliance effort. Environmental programs in non-u.s. facilities are guided by the UPS Global Environmental Standards Manual. This manual mirrors our environmental programs in the U.S and is largely consistent with the ISO structure. The manual provides environmental guidelines and specific detail for compliance with regulations as determined by national, provincial, state, and local laws. Environmental Managers in our international regions work directly with facility personnel to ensure compliance is maintained. We are currently certified to ISO in a number of locations in Europe within our Supply Chain and Freight business segment in response to business demands. We are taking a similar approach in the U.S. 5

6 Compliance (continued) Agency Environmental Inspections EN29 UPS operates in a highly regulated environment due to the volume of various materials, wastes, and effluents required to maintain a large number of operating facilities and diverse fleet of ground vehicles and airplanes. Compliance procedures are extensive and detailed, and even seemingly small procedural errors in documenting our compliance can lead to financial penalties. Nevertheless, we strive for error-free performance and the lowest possible risk to UPS and our stakeholders. We therefore cooperate fully with all environmental regulatory agencies that oversee our facilities and activities, and report transparently on the results of their inspections. In, federal and state environmental agencies in the United States conducted 919 environmental inspections at UPS facilities, a 6.2 percent increase from. Of the total environmental inspections, 764 were conducted in our U.S. Domestic Package segment and 155 were conducted in our Supply Chain & Freight segment. We had a total of 48 notices of violation as compared to 44 in. We paid a total of three fines in, with total penalties of US$9,370. One penalty occurred in the U.S. Domestic Package segment and two in the Supply Chain & Freight segment. For comparison, we paid twelve fines in, with total penalties of US$48,378, all occurring in the U.S. Domestic Package segment. Incidental Spills EN24 An incidental spill is defined as a spill or release that is required to be reported to a federal or state regulatory agency. A spill at UPS typically occurs on pavement or in a building, and requires a cleanup either by trained company personnel or an outside spill response contractor. In, the volume of reportable spills in the U.S. declined 31.6 percent to 2,827 gallons (compared to 4,133 gallons in ). The total number of reportable spills in declined 25 percent to 87 spills (compared to 116 spills in ). Our spills typically occur from accidents and equipment failure; in the number of reportable spills declined 50 percent across these two areas. We continue to address common causes in an effort to reduce the number and volume of spills moving forward. Outside the U.S., we conduct spill management programs as part of implementing our Global Environmental Standards Manual. Multi-year data for this KPI is presented on page 7. The overall success of our environmental program is reflected in the result of our KPI Penalties as a Percent of Total Inspections achieving a combined result of 0.33 percent for both our U.S. Domestic Package and Supply Chain & Freight segments in. Multi-year data for this KPI is presented on page 7. 6

7 Key Performance Indicators (KPIs) KPI DESCRIPTION RESULT Water Consumption Normalized U.S. Domestic Package Water consumption (U.S.) includes all facility related water and water used to wash vehicles expressed in cubic meters Water usage in our largest business segment continues to decrease Units m 3 /1,000 packages m 3 /US$1,000 of revenue Penalties as a Percentage of Total Environmental Inspections U.S. Domestic Package, U.S. Supply Chain & Freight 0.62% 1.18% 1.14% 2.30% Total environmental penalties remain low Environmental related fines paid (U.S.) as a percent of total environment related agency inspections. 0.00% 0.13% 1.69% 1.29% penalty % U.S. SP penalty % U.S. SC&F Units Number of Reportable Spills U.S. Domestic Package, U.S. Supply Chain & Freight Spills that meet criteria of being federal or state reportable Number and volume of spills decline spills U.S. SP spills U.S. SC&F Units Results improved from Results declined from 7