Delivery Services Sustainability Evaluation


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Using a set of relevant criteria to evaluate the progress top companies in the delivery service industry are making to become environmentally sustainable and determining which company should be considered "Most Improved" in terms of progress toward sustainability over the past decade.

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  • UPS CSR report- airline emissions represent 53 percent of the company’s global CO2 inventory.
  • 1. USPS is the first federal agency to publicly report its greenhouse gas (GHG) emissions and to receive third party verification of the results. (
  • Lead by example-” Because we have one of the nation’s largest workforces, with a reach that touches every city and town, we believe we have an obligation to embrace “green” ways of doing business.” John Potter CEO of USPS (
  • Higher environmental standards: 15,000 metric tons of carbon equivalent emissions prevented per yr Lobby recycling: Total number of participating sites = 8,064 Increase of 150% from 2005
  • In 2008, average facility energy intensity was 94,400 Btu/ft2 17% reduction from 2003
  • Low volatile organic compound paints, recycled-content materials, low-flow plumbing fixtures, native plants in landscaping to reduce irrigation requirements.
  • Basic measuring and reporting: Scope 2 and 3 Data not yet utilized Not currently fully measuring/reporting facility energy Fedex acquired DHL in the US may have drawn energy away from their green efforts ( Fuel: 20% improvement in fuel efficiency by 2020 (Fedex) vs. DHL targeting 30% reduction by 2020 ( Partnerships- founding member of CAREX, group that promotes alternative freight transport via rail in Europe and CEO sits on the co-chaihr for the Energy Security Leadership Council Recycling: Fedex recycled 17.6 million pounds or roughly 8,000 metric tons of solid waste, does not mention total of solid waste
  • Delivery Services Sustainability Evaluation

    1. 1. Delivery Industry: Most Improved By Teo Tertel, Ian Kerwin and Amanda Miller
    2. 2. Delivery Industry Overview <ul><li>202 Million packages per year (USPS) </li></ul><ul><li>200 Billion pieces of mail per year (USPS) </li></ul><ul><li>Top Four Companies in the US: </li></ul><ul><ul><li>USPS, FedEx, UPS and DHL </li></ul></ul><ul><li>DHL used 632 million liters of fuel in 2008 </li></ul><ul><li>USPS revenue of 74 million in 2008 </li></ul><ul><li>Special Challenges: </li></ul><ul><ul><li>Airplane Fuel- 53% of UPS CO2 inventory </li></ul></ul><ul><ul><li>Paper and packaging is their business </li></ul></ul>
    3. 3. Criteria for Most Improved <ul><li>Commitment: Sustainability Goals </li></ul><ul><li>Energy used and GHG tracking & reduction </li></ul><ul><ul><li>Fuel Efficiency </li></ul></ul><ul><ul><li>Alternative fuels and alternative energies </li></ul></ul><ul><li>Facilities </li></ul><ul><ul><li>Energy use and green building </li></ul></ul><ul><li>EMS: implementation and certification </li></ul><ul><li>Partnerships and Awards </li></ul><ul><li>Recycling and Waste </li></ul>
    4. 4. USPS: Motivation <ul><li>“ Adopting sustainable practices is not only good for the environment; it also helps to reduce operational costs.” -- USPS Sustainability VP Sam Pulcrano </li></ul><ul><li>4 Main Sustainability Goals: </li></ul><ul><ul><li>Reduce facility energy use/intensity 30% by 2015 </li></ul></ul><ul><ul><li>Increase alternative fuel 10% by 2015 </li></ul></ul><ul><ul><li>Reduce petroleum fuel use 20% by 2015 </li></ul></ul><ul><ul><li>Reduce greenhouse gas emissions 20% by 2020 </li></ul></ul>
    5. 5. USPS: Major Initiatives “ USPS has always been eager to find new ways to deliver the mail more effectively and efficiently.”
    6. 6. Energy Used: Fuel Efficiency <ul><li>Fleet of 200,000 vehicles travel 1 billion miles each year, using 100 million gallons of gas </li></ul><ul><li>43,000 Alternative-fuel vehicles = 20% of 220,000 vehicles </li></ul><ul><ul><li>Largest civilian fleet of alt. fuel-capable vehicles in world </li></ul></ul><ul><li>Carrier Optimal Routing improves both logistics and energy efficiency by using a detailed mapping system to create more fuel-efficient and safer delivery routes </li></ul><ul><li>“ Fleet of feet”: 1/3 of deliveries made on foot </li></ul><ul><ul><li>10,000+ letter carriers walk/bike their routes every day </li></ul></ul>
    7. 7. Energy Used: Fuel Efficiency <ul><li>Currently testing Chevy Equinox Fuel Cell Electric Vehicles </li></ul><ul><ul><li>Hydrogen fuel-cell technology has potential to create most fuel-efficient and environmentally friendly vehicles on the market. </li></ul></ul><ul><ul><li>Retiring 10,000 non-energy efficient vehicles from its fleet in 2009 </li></ul></ul><ul><li>Plan to increase use of alternative fuels: electricity, E-85, biodiesel, propane and compressed natural gas. </li></ul>
    8. 8. Greenhouse Gas Emissions <ul><li>Reduce Scope 1 and Scope 2 GHG emissions 20% by 2020. </li></ul><ul><ul><li>Includes direct emissions from facilities/vehicles and indirect emissions from facility electricity </li></ul></ul><ul><li>Emissions Report: </li></ul><ul><ul><li>Direct: 1,769,022 CO2 metric tons </li></ul></ul><ul><ul><li>Indirect: 3,545,931 CO2 metric tons </li></ul></ul><ul><li>In 2008, first full GHG emissions inventory of 34,000 facilities, 220,000 vehicles and contracted surface /air transportation. </li></ul><ul><ul><li>1 st government agency to report GHS emissions </li></ul></ul>
    9. 9. USPS: Major Initiatives <ul><li>MBDC collaborated w/ USPS to achieve Silver level of Cradle to Cradle Certification for 500 million Priority Mail & Express Mail envelopes/packages distributed each year. </li></ul><ul><li>Half billion Priority Mail/Express Mail packages/envelopes now meet higher environmental standards </li></ul><ul><li>Recycled 200,000 tons of paper, plastics and other waste in 2009 </li></ul><ul><li>Decrease in GHS emissions of 1.67 million barrels of oil </li></ul><ul><li>Expanding Lobby Recycling to include additional 2,435 Post Offices </li></ul>
    10. 10. Reduced Facility Energy Use <ul><li>Utility Management System: captures energy use and cost data of largest facilities for electricity, natural gas and steam. </li></ul><ul><ul><li>Largest 2,000 facilities = 75% of energy use </li></ul></ul><ul><li>In 2008, consumed 30.7 trillion Btu across 34,000 facilities </li></ul><ul><ul><li>15% reduction in energy use since 2003 </li></ul></ul><ul><li>Energy audits at most energy-intensive buildings </li></ul><ul><ul><ul><li>Cost savings of $44 million by end of 2008 </li></ul></ul></ul>
    11. 11. Green Building <ul><li>All new building construction exceed energy efficiency req’s </li></ul><ul><ul><li>Perform energy modeling on multiple design concepts </li></ul></ul><ul><ul><li>Meet LEED certification requirements </li></ul></ul><ul><li>Exploring renewable energy with favorable return </li></ul><ul><ul><li>10 buildings with on-site solar systems </li></ul></ul><ul><li>Enterprise Energy Management System: improve performance, reduce cost/consumption, increase efficiency and improve energy planning. </li></ul><ul><li>Environmental Management System </li></ul><ul><ul><li>ISO 14001 certificated, implemented ? </li></ul></ul>
    12. 12. Waste and Recycling <ul><li>In 2009, USPS generated 455,000 metric tons of municipal solid waste </li></ul><ul><ul><li>Recycled 232,000 metric tons of that waste. </li></ul></ul><ul><ul><li>Integrated waste management program </li></ul></ul><ul><li>Pollution prevention awareness and training program targeted to all levels of employees to encourage waste prevention </li></ul><ul><li>Developing strategies to expand recycling of undeliverable Standard Mail and piloting “zero waste to landfill” programs </li></ul>
    13. 13. Partnerships and Awards <ul><li>75 environmental awards, including: </li></ul><ul><ul><li>40 White House Closing the Circle </li></ul></ul><ul><ul><li>10 Environmental Protection Agency WasteWise Partner of Year </li></ul></ul><ul><ul><li>Climate Action Champion </li></ul></ul><ul><ul><li>Direct Marketing Association Green Echo </li></ul></ul><ul><ul><li>Postal Technology Int’l Environmental Achievement for 2009. </li></ul></ul><ul><li>Participating in voluntary sustainability-related programs </li></ul><ul><ul><li>California Climate Action Registry </li></ul></ul><ul><ul><li>EPA WasteWise Program </li></ul></ul><ul><ul><li>Department of Energy Clean Cities Program </li></ul></ul><ul><ul><li>Int’l Post Corporation Envmt’l Measurement/Monitoring System </li></ul></ul>
    14. 14. 2009 Outcomes/Accomplishments <ul><li>Reducing energy intensity w/ cost avoidance of $150 million per yr. </li></ul><ul><li>Saving $42 million in fuel costs just during quarter 1 of FY 2010. </li></ul><ul><li>Forming Green Teams saving $4 million in 2009. </li></ul><ul><li>Saving $3 million during agency-wide energy challenge in 2009. </li></ul><ul><li>Avoiding approximately $1 million in costs in 2009 using green IT initiatives. </li></ul><ul><li>Recycling more than 200,000 tons of waste materials in 2009. </li></ul>
    15. 15. USPS: Stakeholder Reaction <ul><li>All 200 packaging suppliers agreed to complete the required inspections associated with Cradle-to-Cradle Certification </li></ul><ul><li>Despite evident improvements regulators are still pushing legislation for DNM (do not mail) policies in several states citing environmental impacts </li></ul><ul><li>44% of retail postal transactions are now done online as customers enjoy the convenience of greener offerings </li></ul>
    16. 16. USPS: Unique Details <ul><li>USPS does not receive any funding from the government </li></ul><ul><ul><li>Financial resources are revenue based </li></ul></ul><ul><ul><li>$150M annual investment in energy efficiency </li></ul></ul><ul><li>80% of fuel consumption (580 million GGE) results from contracted transportation services </li></ul><ul><ul><li>Target shift towards surface transport and overall improvement </li></ul></ul><ul><li>Purchased over 36,000 Flex-Fuel vehicles </li></ul><ul><ul><li>Limited E-85 infrastructure has prompted exploration of converting ICE fleet to run on battery </li></ul></ul>
    17. 17. FedEx: Least improved <ul><li>Basic measuring and reporting </li></ul><ul><li>Efficiency: 2.2 pounds per available ton mile vs. UPS 1.42 pounds </li></ul><ul><li>Fuel: lack of current numbers and low goals </li></ul><ul><li>EMS- implemented in 1999 but still not certified </li></ul><ul><li>Partnerships- strength in CEO and partnerships </li></ul><ul><li>Awards- few significant awards </li></ul><ul><li>Recycling- unsure percent of waste and 8,000 vs. 232,000 metric tons recycled by USPS </li></ul><ul><li>Other: Still collecting data on water, unimpressive recycled content in packaging available at the stores </li></ul>
    18. 18. QUESTIONS?