Your Partner in Sustainability                                 1
Your Partner in Sustainability    UPS’s environmental        Greater airline efficiency                                   ...
actinG responsibly                                                                         UPS has publicly disclosed to t...
the choice is clear                          The SmartWay Excellence Award honors organizations that have                 ...
8    XXXXXXXX © 2009 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color...
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  1. 1. Your Partner in Sustainability 1
  2. 2. Your Partner in Sustainability UPS’s environmental Greater airline efficiency in 2008. By comparison, FedEx chose to install hush kits3, which met the noise reduction requirements but increased fuel usage. ups airlines has platform reflects our Air transport is the most energy intensive transport mode in the ship- ping sector, so airline carbon dioxide (CO2) emissions are typically one the most fuel- UPS has made a beyond-compliance commitment when it comes pursuit of sustainable of the greatest contributors to overall emissions. In 2008, UPS Airlines’ efficient fleet to aircraft noise reduction. In 1997, UPS met the FAA’s Stage III noise regulations with 100% of its jet fleet, nearly three years emissions were 53% of our global footprint. business practices in the package ahead of the Noise and Capacity Act’s 1999 deadline. Both UPS and FedEx have announced the same goal to reduce airline sector. worldwide through carbon emissions 20% by 2020, with a baseline year of 2005.1 In 2003, UPS took the initiative in establishing a metric that meas- ured the entire fleet to the International Civic Aviation Organiza- The metric for measuring performance is the amount of CO2 operational efficiency, emitted to transport one ton of cargo one nautical mile, or CO2 lbs tion’s (ICAO) Stage IV noise levels, though the requirement only applies to new aircraft purchased after 2006. UPS met the require- conservation initiatives per available ton mile (CO2 lbs/ATM). The key difference is the actual level of airline efficiency at which each company performs. ment fleet-wide in 2008. and industry-leading Based on this metric, UPS Airlines has the most fuel-efficient fleet in environmentally sensitive innovations. Now the package airline sector.* In 2008, our efficiency factor was 1.23 CO2 lbs/ATM (converted to statute miles from a published factor of packaGe delivery we can help you do 1.42 CO2 lbs/ATM using nautical miles) — far superior to FedEx’s ups is the first 2008 published factor of 2.18 CO2 lbs/ATM (using statute miles). UPS is the first major delivery company in the U.S. to offer a third- the same. Despite our leadership position, we are pursuing our aggressive party-verified carbon neutral shipping option. Our carbon neutral major delivery CO2 reduction target of 20 percent from 2005-2020. This represents shipping process is verified by The CarbonNeutral Company, one company in of the world’s leading carbon offset and carbon management busi- the u.s. to a 42% improvement between 1990 and 2020. To compare, when nesses. Our carbon calculator is also third-party verified by SGS, FedEx achieves their CO2 reduction goal in 2020, they will be at the world’s leading verification and certification company. offer a third- the approximate efficiency level UPS Airlines operated at nearly The UPS carbon neutral shipping option offers our customers party-verified 20 years ago in 1990. * asedonacomparisonofmajordeliverycompaniesinthepackagedeliverysector B a convenient, easy-to-use method to reduce the climate impact carbon neutral thatpublishedefficiencyfactorsinpoundsperavailabletonmile(ATM). of their shipments by purchasing carbon offsets that fund envi- shipping ronmental projects. UPS is purchasing only certified assets (e.g., option. Voluntary Carbon Standard (VCS), Gold Standard, Climate Action a 23-year head start Reserve). To encourage participation, UPS also provides a match In 2008, FedEx announced that they were replacing their aging, fuel- ups no longer of offsets up to $1 million through 2010. inefficient 727 fleet with 757 aircraft2, which are 30+% more efficient. operates any Precision matters when mitigating your carbon footprint. No third In fact, twenty-three years prior to our competitor’s announce- 727s in its air party can maintain an accurate carbon neutral product without company-specific calculations based on an accurate company car- ment, UPS made the strategic decision to replace 727s with 757s, fleet. bon inventory. Because we know our own scope 1, 2 and 3 emis- purchasing our first 10 in 1987 and continuing to add 757 aircraft sions, we are able to more precisely capture the carbon emitted for a total of 75 by 1999. This action has saved 1.1 billion gallons to move your shipments. UPS uses company-specific factoring for of fuel from 1995-2008. each mode of transport to ensure the right emissions calculations are attached to the right shipments. And we conduct an actual2 takinG the initiative to reduce noise true-up calculation with company inventory from the same year 3 Both FedEx and UPS have had to address noise reduction in our the entire fleet that the shipment occurred. airlines. Early on, UPS chose to replace engines on its 727-100s. Not of ups aircraft is FedEx offers no carbon-neutral service. only did this meet the noise reduction requirements, it increased stage iv compli- fuel efficiency, saving 50 million gallons of fuel between 1995 and ant under icao 2006. UPS later retired its last 727-200 in 2004 and its last 727-100 standards.
  3. 3. actinG responsibly UPS has publicly disclosed to the CDP the past seven years. the industry’s The CDP acts on behalf of 475 institutional investors, holding UPS produced and published the package industry’s first sustain- $55 trillion in assets under management and some 60 purchasing ability report in 2003, using 2002 data, and adhered to the Global first sustain- organizations such as Wal-Mart, PepsiCo and Cadbury. Eighty-two Reporting Initiative (GRI) format. UPS is the only company in the ability report percent of global 500 companies report to the CDP. package sector with annual, consecutive sustainability reports was published This year the CDP gave DHL a score of 63 and FedEx 59. Neither DHL using the GRI format. In the UPS 2008 Corporate Sustainability Report, we reported scope 1, 2 and 3 global emissions. Our current by ups in nor FedEx was named to the Carbon Disclosure Leadership Index GRI score is B. 2003. FedEx’s first report was published in 2008 and did not report on confrontinG Global warminG scope 2 or 3 emissions. Scope 1 emissions were estimated using Climate Counts ranked UPS first in consumer shipping in 2009. climate counts a revenue relationship.4 FedEx does not use the GRI format. Climate Counts scores the world’s largest companies on their ranked ups climate impact to encourage corporate climate responsibility first in con- the rollinG laboratory and conscious consumption. sumer shipping ups operates The scores are based on criteria including measured climate UPS has been exploring alternative fuels and advanced technolo- for 2009. gies for more than 70 years. As early as 1935, the company the largest “footprint,” reducing impact on global warming, supporting climate legislation, and publicly disclosing climate actions clearly deployed its first electric vehicle. In the 1970s, vehicles in Canada private fleet and comprehensively. The higher the score, the greater the com- were converted to propane, and in 1985, UPS adopted the first of alternative- mitment to fighting global warming. UPS scored a 69, ahead of Compressed Natural Gas (CNG) package car. While 2001 saw the fuel/advanced- TNT, USPS and FedEx. FedEx was ranked last, with a score of 55.5 launch of the industry’s first Hybrid Electric Vehicle (HEV), the only package delivery company at the time with an HEV in operation. technology And in 2006 UPS tested and deployed the world’s first hydraulic vehicles. leadinG by example hybrid delivery vehicle. In 2008, UPS became the first shipping company to join the in 2008, ups Today, UPS employs a “rolling laboratory” philosophy — using its U.S. Environmental Protection Agency’s (EPA) Climate Leaders became the alternative-fuel/advanced-technology fleet as a way to learn about program, committing to set aggressive emissions-reduction goals first shipping how new technologies and advancements can be adapted for use using EPA-approved carbon reporting. in the larger fleet. Our alternative-fuel/advanced-technology company to Climate Leaders includes over 200 companies, ranging from For- join climate vehicles have traveled more than 165 million miles worldwide tune 100 corporations to small businesses, representing approxi- since 2000, 20.5 million miles of that just in 2008. mately 10% of the GDP. This EPA industry-government partnership leaders. Our fleet now comprises more than 1,700 alternative-fuel/ provides guidance and recognition to companies developing long- advanced-technology vehicles, the largest private fleet in the term climate change strategies. sector currently operating in the U.S. and abroad as of July 6, As of December 2009, FedEx has not joined the program. 2009. These vehicles include CNG, propane, HEV, hydraulic hybrid, electric, liquid natural gas and liquid petroleum gas. GoinG above and beyond4 exceptional reportinG A voluntary EPA program, SmartWay educates shippers on how to ups’s small 5 ups was named select efficient carriers based on EPA reports. For 2008 and 2009, package fleet The Carbon Disclosure Project (CDP) annually surveys the manner in which companies disclose environmental impact, focusing on to the carbon UPS has won SmartWay’s Excellence Award. Though the outstand- is 33% more ing performance rating is capped at 1.25, UPS actually surpassed greenhouse gas emissions and reduction targets and risks. In 2009, disclosure efficient than that rating in 2008 with a 2.66 for Package (including tractors) the CDP elevated UPS to the top-50 companies on its “Carbon the national leadership and 2.37 for Freight Supply Chain Solutions. Disclosure Leadership Index.” index of the And with 1,235 grams CO2/mile, the UPS small package fleet, average. This year UPS achieved a score of 82, an increase of 19 points from 2008. Evaluating the point spread from the index, only 17 top-50 global including package cars and tractor trailers, is 33%6 more efficient companies. than the national average of 1,847 grams CO2/mile. companies worldwide scored higher than UPS.
  4. 4. the choice is clear The SmartWay Excellence Award honors organizations that have the transportation industry’s average in each of the three as the industry made outstanding contributions to reducing climate change emis- criteria — social, economic and environment. leader in UPS FedEx sions and other air pollutants, while advancing environmental UPS was ranked #85 in Newsweek magazine’s 2009 Top 500 performance and efficiency. sustainability, Greenest Companies in America, and was second behind United 2009 Carbon Disclosure 82 59 Technologies in the transportation/industrial sector. ups is ready Project Score to help you more options, less enerGy UPS’s IT and data operations landed the company on the Uptime Carbon Disclosure in 2008, Institute’s 2009 Global Green 100 list. Corporations were recog- with your own Leadership Index — X O One of the cornerstones of our emissions reduction program is to use the most energy-efficient mode of transportation available ups intermodal nized for demonstrating a high-level commitment to increasing initiatives. Top-50 Global Companies energy efficiency and reducing their carbon footprint. while still meeting the delivery-time requirements of our custom- shifts prevented learn more at 2009 Dow Jones The 2008 Environmental Defense Fund’s Annual Innovation Report responsibility not ers. Using our intermodal network, we reduce our carbon impact absolute emissions was awarded to UPS for Continuous Descent Approach (CDA) Sustainability Index (DJSI) 83 public by moving shipments from air to ground and ground to rail when of 3 million metric procedures and Telematics. — North America possible. Rail transportation is four times less energy intensive than truck, and UPS uses rail transport extensively to gain significant tonnes of co2. UPS received the 2008 Alternative Vehicle Institute’s Green Fleet U.S. Environmental carbon reductions — far more than any other package delivery Award as recognition of historic and ongoing commitment to Protection Agency (EPA) X O company in the United States. incorporating a diverse range of fuels, vehicles and technologies Climate Leaders into both our domestic and worldwide fleet. In 2008, shifts from ground to rail and air to ground together pre- 2009 U.S. Environmental vented absolute emissions of 3 million metric tonnes of CO2. Protection Agency (EPA) X O EPA SmartWay teaches, and UPS’s own experience proves, that inter- Sources SmartWay Excellence Award modal shipping can dramatically reduce fuel use and carbon emissions. 1 FedExGlobalCitizenshipReport2008, pgs. 13 and 29. 2 “FedEx Announces Goals and Reports on Progress to Reduce Aircraft Emissions FedEx uses almost no rail at all. Newsweek’s Top 500 and Increase Vehicle Fuel Efficiency 20 Percent by 2020.” FedEx Newsroom. FedEx. November 12, 2008. Web. December 3, 2009. Greenest Companies 85 93 .com/node/11976. in America deliverinG on the promise 3 FedExGlobalCitizenshipReport2008, p. 31. In announcements during the past two years, UPS has reported ups initiatives 4 FedExGlobalCitizenshipReport2008, p. 29. Global Green 100 5 ScorecardSectors–ConsumerShipping. Climate Scores – Scorecard Overview. List — Uptime Institute X X on a vast array of initiatives equating to the reduction of more have resulted in n.d. Web. December 3, 2009. than 14,625,332 metric tonnes of CO2 since 1995. This equates co2 reductions /scorecard_sectors.php?id=24. Climate Counts 69 55 to removing more than 2.7 million passenger vehicles* from the 6 Calculations based on SmartWayTransportPartnershipCarrierFLEETModelUser equivalent to Guide, February 26, 2008. road. FedEx’s publicly reported initiatives have produced a carbon Reporting — GRI format X O savings of only 860,560 metric tonnes of CO27, equal to taking removing more 7 Copy to come, Copy to come. Reporting — scope 1, 2 more than 143,000 cars* off the highway. than 2.7 million X O and 3 * passenger vehicles X yes/ranked from the road. O no/not ranked additional recoGnition6 The Dow Jones Sustainability Index (DJSI) tracks the financial 7 performance of industry-leading companies in terms of corporate sustainability. UPS has been on the North America index since 2004. Inclusion on the DJSI indexes is an important reflection of global sustainability leadership in the eyes of shareholders, finan- cial analysts and other stakeholders. In 2009, UPS scored above Contact your UPS Salesperson
  5. 5. 8 XXXXXXXX © 2009 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.