August ups.com/sustainability

Transcription

1 August 2016

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4 A history of environmental innovation 4

5 Why sustainability matters to UPS Sustainability is integral to our business. Using our scope and scale, we:» Incubate cutting-edge vehicle technologies and alternative fuels» Pioneer sustainable solutions with customers, and» Leverage our integrated, optimized network to drive more efficient global trade. To be competitive, we must do more. Our relentless pursuit of efficiency is a differentiator for our stakeholders:» Governments expect more from companies through increased regulation» Customers desire greater supply chain transparency» Employees seek employers with shared values» Investors look at business performance and risk mitigation 5

6 Legacy of sustainability reporting» Leadership First report published in 2003 (2002 data)» Transparent Global Reporting Initiative (GRI) G4 Comprehensive» Comprehensive Global CO2e emissions, including all business segments and supply chain» Credible Third-party assurance of report and GHG inventory» Focused Report content aligned with stakeholder priorities 6

7 Environmental Responsibility 7

8 We measure every source of GHG emissions associated with UPS and address them all through our Greenhouse Gas Reduction Strategy. This worldwide, enterprise wide approach helps us reduce emissions from transportation operations and facilities, as well as those associated with customers and suppliers in our value chain. 8

9 ORION: On-Road Integrated Optimization and Navigation» Analyzes stops for the day and identifies an optimized route» 2015: Deployed to 70 percent of U.S. routes» 2016: Deployed to all U.S. drivers» Annual savings at full deployment: 100 million miles 100,000 CO2 metric tonnes 10 million gallons of fuel 9

10 Alternative fuel and advanced technology fleet continues to grow 10

11 Rolling laboratory tests new technologies in real time 11

12 Driving toward 1 billion miles Annual Performance 2015 Progress 2017 and Beyond Miles Driven 300 Million >350 Million Conventional Gas & Diesel Gallons Avoided 49 Million > 66 Million Percentage of Total Ground Fuel 10% ~12% 12

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14 Integrated network enables intermodal shifting to maximize efficiency» Network flexibility allows shifts to most fuel-efficient mode of transport; air, ground, and rail» Rail used extensively to reduce long-distance shipping carbon emissions Shifts from air to ground & ground to rail help us avoid 3 million metric tonnes of CO2e per year. 14

15 UPS is moving more volume and emitting less carbon 2020 Goal Reduce carbon intensity by 20% Progress through 2015 Reduced carbon intensity by 14.5% Carbon reduction has been realized across all business segments in the face of growing package volume. 15

16 The UPS global forestry initiative» Addresses climate change with forest protection and planting» Focuses on preserving critical ecosystems to maximize impact» The UPS Foundation supports organizations around the world on tree-planting projects More than 5 million trees have been planted through

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19 UPS carbon neutral shipping» Available for UPS shipments to anywhere in the world» Nominal fee covers the offset cost plus carbon calculation» Flexible options Online option offers selection on a per-package basis Contractual basis provides set price based on shipping history» SGS verification & Natural Capital Partners (formerly The Carbon Neutral Company) certification UPS has purchased 228,000 metric tonnes of carbon offsets since

20 Encouraging sustainable packaging» Eco Responsible Packaging Program certifies customer packaging materials and processes» Packaging design and testing for enhanced sustainability» UPS Reusable Express Envelopes enable two shipments using just one envelope» UPS Billing Center and UPS Paperless Invoice allow secure online processing while reducing paper use Right-sized boxes enable us to move more shipments without adding vehicles and planes. 20

21 Shipping materials» Packaging that protects items from damage to reduce additional manufacturing and shipping» Environmentally responsible materials» Appropriately sized packaging to reduce waste Companies that meet criteria can use the Eco Responsible Packaging Program label to show customers they have met rigorous standards. 21

22 Collaborating with others NGOs» World Resources Institute» The Interstate Clean Transportation Corridor» Green Freight Europe and Green Freight Asia» World Business Council for Sustainable Development» World Economic Forum» Business for Social Responsibility (BSR) Future of Fuels project» Sustainable Packaging Coalition Government Organizations» U.S. Environmental Protection Agency s SmartWay program» Federal Aviation Administration» Natural Resources Canada, Office of Energy Efficiency» Agence de l Environnement et de la Maîtrise de l Énergie Seeking perspectives that address climate change, resource conservation, and other environmental issues 22

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