Your Partner in Sustainability

Transcription

1 Your Partner in Sustainability 1

2 Your Partner in Sustainability UPS pursues sustainable business practices worldwide through operational efficiency, conservation initiatives and industry-leading innovations. Now we can help you do the same. Leading by example In 2008, UPS became the first global shipping, delivery and logistics company to join the U.S. Environmental Protection Agency s (EPA) Climate Leaders program, committing to set aggressive emissions-reduction goals using EPA-approved carbon reporting. Climate Leaders includes over 200 companies, ranging from Fortune 100 corporations to small businesses, representing approximately 10% of the GDP. This industrygovernment partnership provides guidance and recognition to companies developing long-term climate change strategies. Going above and beyond A voluntary EPA program, SmartWay SM educates shippers on the fuel-efficiency of carriers based on EPA reports. In 2008 and 2009, UPS won SmartWay s Excellence Award, which recognizes freight-industry leaders that have made significant contributions to protecting the environment. Though the outstanding performance rating is capped at a Shipper Index Factor of 1.25, UPS actually surpassed that rating in 2008 with a 2.66 for Package operations (including tractors) and 2.37 for its Freight and Supply Chain Solutions logistics operations. And with emissions of 1,235 grams CO 2 /mile, the UPS small package fleet, including package cars and tractor trailers, is 33%* more efficient than the national average. *Calculations based on SmartWay Transport Partnership Carrier FLEET Model User Guide, February 26, In 2008, UPS became the first shipping company to join Climate Leaders. Based on its emissions, UPS s small package fleet is 33% more efficient than the national average. 2 More options, less energy One of the cornerstones of our emissions reduction program is the use of the most fuel-efficient mode of transportation available, which still meets the delivery-time requirements of our customers. Using our flexible intermodal network, we reduce our carbon impact by moving shipments from air to ground and from ground to rail when possible. Rail transportation is four times less energy intensive than truck, and UPS uses rail transport extensively to gain significant carbon reductions far more than any other package delivery company in the United States. In 2008, shifts from ground to rail and air to ground together prevented absolute emissions of 3 million metric tonnes of CO 2. EPA SmartWay program teaches and UPS s own experience proves that intermodal shipping can dramatically reduce fuel use and carbon emissions. In 2008, UPS intermodal shifts prevented absolute emissions of 3 million metric tonnes of CO 2.

3 Environmentally preferable package delivery UPS is the first major delivery company to offer a third-partyverified carbon neutral shipping option for U.S. shipments. Our carbon neutral shipping process is certified by The CarbonNeutral Company, one of the world s leading carbon offset and carbon management businesses. Our carbon calculator is also third-party-verified by SGS, the world s leading verification and certification company. The UPS carbon neutral shipping option offers our customers a convenient, easy-to-use method to effectively neutralize the climate impact of their shipments by purchasing carbon offsets that fund environmental projects. UPS is purchasing only certified assets to support this service (e.g., Voluntary Carbon Standard (VCS), Gold Standard, Climate Action Reserve). UPS is the first major delivery company to offer a third-partyverified carbon neutral shipping option for U.S. shipments. Precision matters when mitigating our customers carbon footprint. No third party can maintain an accurate carbon neutral product without company-specific information and calculations based on an accurate company carbon inventory. Because we know our own scope 1, 2 and 3 emissions better than anyone else, we are able to more precisely report the carbon emitted to move your shipments. UPS uses company-specific factoring for each mode of transport to ensure the right emissions calculations are attached to the right shipments. And we conduct a true-up calculation with company inventory from the same year that the shipment occurred to correct any difference between predicted and actual emissions. Acting responsibly UPS produced and published its first sustainability report in 2003, using 2002 data, and adhered to the Global Reporting Initiative (GRI) format. The GRI is the most widely accepted global standard for reporting. UPS has published annual, consecutive sustainability reports using the GRI format. In the UPS 2008 Corporate Sustainability Report, we increased the level of transparency even further and reported scope 1, 2 and 3 global emissions. UPS published the package delivery industry s first sustainability report in 2003 and has published one every year since. 3

4 Exceptional reporting The Carbon Disclosure Project (CDP) annually surveys the manner in which companies disclose environmental impact, focusing on greenhouse gas emissions and reduction targets and risks. In 2009, the CDP elevated UPS to the top-50 companies on its Carbon Disclosure Leadership Index. In 2009, UPS achieved a score of 82, an increase of 19 points from Eighty-two percent of global 500 companies report to the CDP. UPS has publicly disclosed to the CDP the past seven years. UPS was named to the Carbon Disclosure Leadership Index of the top-50 global companies. Confronting climate change Climate Counts ranked UPS first in its consumer shipping category in Climate Counts scores the companies on their climate impact to encourage corporate climate responsibility and conscious consumption. The scores are based on criteria including meas ured climate footprint, reducing impact on global warming, supporting climate legislation, and publicly disclosing climate actions clearly and comprehensively. Climate Counts ranked UPS first in consumer shipping for Working to reduce airline emissions Air transport is the most energy intensive transport mode for package delivery companies, so airline carbon dioxide (CO 2 ) emissions are typically one of the greatest contributors to overall emissions. In 2008, UPS Airlines emissions were 53% of our global footprint. The metric for measuring airline carbon (CO 2 ) intensity is based on the amount of CO 2 emitted to transport one ton of cargo one nautical mile, or CO 2 lbs per available ton mile (CO 2 lbs/atm). In 2008, UPS s CO 2 intensity factor was 1.42 CO 2 lbs/atm. We are pursuing an aggressive CO 2 intensity reduction target of 20% from This represents a planned 42% improvement between 1990 and UPS is pursuing a 20% reduction in airline emissions (CO 2 lbs/ ATM) by 2020.

5 A 20-year head start In 1985, UPS made the strategic decision to buy 757s instead of additional 727s. We needed more lift capacity, and 757s are over 30% more efficient. As a result, UPS implemented a solution that was a win for the business, as well as for sustainability. UPS purchased our first ten 757 aircraft in 1987, and continued to add them for a total of 75 by This action saved 1.1 billion gallons of fuel and over 14 million metric tonnes of carbon from 1995 to 2008 alone. UPS no longer operates any 727s in its air fleet. Taking the initiative to reduce noise In response to emerging regulation, airlines were required to address noise reduction. Early on, UPS chose to replace engines on its s, which achieved the added benefit of an immediate 20% reduction in fuel consumption. Not only did this meet the noise reduction requirements, it increased fuel efficiency, saving 50 million gallons of fuel between 1995 and To additionally reduce fuel consumption, UPS retired its last in 2004 and its last in The entire fleet of UPS aircraft is Stage IV compliant under ICAO standards. UPS adopts a beyond-compliance commitment when it comes to aircraft noise reduction. In 1997, UPS met the FAA s Stage III noise regulations with 100% of its jet fleet, nearly three years ahead of the Noise and Capacity Act s 1999 deadline. In 2003, UPS took the initiative to bring our entire fleet into compliance with the International Civic Aviation Organization s (ICAO) Stage IV noise levels, though the requirement only applies to new aircraft purchased after UPS met the requirement fleet-wide in

6 The rolling laboratory UPS has been exploring alternative fuels and advanced technologies for more than 70 years. As early as 1935, the company deployed its first electric vehicle. In the 1970s, UPS vehicles in Canada were converted to propane, and in 1985, UPS adopted the package delivery industry s first Compressed Natural Gas (CNG) package car. When UPS launched the industry s first Hybrid Electric Vehicle (HEV) in 2001, it was the only U.S. package delivery company with an HEV in operation. And in 2006, UPS tested and deployed the world s first hydraulic hybrid delivery vehicle (HHV). UPS operates over 1,900 alternative-fuel/ advancedtechnology vehicles. Today, UPS employs a rolling laboratory philosophy using our alternative-fuel/advanced-technology fleet as a way to learn about new technologies allows advancements to be adapted for use in the larger UPS fleet. Our alternative-fuel/ advanced-technology vehicles have traveled more than 165 million miles worldwide since 2000, 20.5 million miles of that just in Our fleet is now comprised of more than 1,900 alternative-fuel/advanced-technology vehicles and includes: CNG, propane, HEV, hydraulic hybrid, electric, liquid natural gas and liquid petroleum gas. 6 additional recognition The Dow Jones Sustainability Index (DJSI) tracks the financial performance of industry-leading companies in terms of corporate sustainability. UPS has been on the North America index since Inclusion on the DJSI indexes is an important reflection of global sustainability leadership in the eyes of shareholders, financial analysts and other stakeholders. In 2009, UPS scored above the transportation industry s average in each of the three criteria social, economic and environment. UPS was ranked #85 in Newsweek magazine s 2009 Top 500 Greenest Companies in America, and was second behind United Technologies in the transportation/industrial sector. UPS s IT and data operations landed the company on the Uptime Institute s 2009 Global Green 100 list. Corporations were recognized for demonstrating a high-level of commitment to increasing energy efficiency and reducing their carbon footprint. As the industry leader in sustainability, UPS is ready to help you with your own initiatives. Learn more at responsibility.ups.com.

7 additional recognition (continued) The 2008 Environmental Defense Fund s Annual Innovation Report recognized UPS for Continuous Descent Approach (CDA) procedures for landing and noise reduction over communities and Telematics. UPS received the 2008 Alternative Vehicle Institute s Green Fleet Award as recognition of historic and ongoing commitment to incorporating a diverse range of fuels, vehicles and technologies into both our domestic and worldwide fleet. Definitions of scope 1, 2 and 3 emissions: Scope 1: Direct greenhouse gas emissions from sources that you own or control Scope 2: Direct greenhouse gas emissions resulting from the generation of purchased electricity, heat or steam Scope 3: Greenhouse gas emissions from sources not owned or directly controlled by you but related to activities such as vendor supply chains, delivery services, and employee travel and commuting 7

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