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Driving for Sustainability
Ed RogersSenior Director of Global Sustainability
UPS
Driving for Sustainability November 10, 2015
Edward M. RogersSenior Director of Global Sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Who We Are
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS is Committed to More
Environmental Responsibility
Empowered People
Connected Community
Economic Enhancement
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS’s Global Sustainability Principles
Sustainability DefinedThe business strategies and activities
that meet the needs of the enterprise and its stakeholders today while protecting, maintaining and enhancing the human
and natural resources that will be needed in the future.
Social Responsibility
Environmental Responsibility
Economic EnhancementConnect
Communities and Empower People
Preserve and Protect the Planet
Strengthen the Enterprise and
our StakeholdersAct Responsibly
Deliver“Eco-
Friendly” Services
Operate Efficiently
Reduce, Reuse, Recycle
Lead by Example
Conserve Energy Protect Natural Resources
Promote Wellness and Safety
Embrace Diversity, Inclusion
and Human Rights
Grow BusinessProfitably
Develop People
Build the Brand
Provide CompetitiveCompensation
Support Communities
Support Global Trade
Provide Value-Added Solutions
Focus on Customers
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Click icon to add pictureMeasurement and ReportingAchieving Industry-Leading Reporting & Disclosure Standards
UPS’s second GRI “G4 Comprehensive” Report published this year• Transparent: Published one of the first “In Accordance-Comprehensive” Global
Reporting Initiative G4 reports in the United States in 2014
• Comprehensive: Global Report - Includes global Scope 1, 2 & 3 CO2e emissions (Scope 3: All applicable categories reported since 2013 report, 9 of the 15)
• Credible: 3rd party Assurance of Report & Greenhouse Gas inventory (Deloitte), GHG verification by SGS, GRI Checked with GRI’s “Materiality Matters” check
• Focused: Updated materiality analysis guides report content, mapping company interests with stakeholder interests to guide priorities and provide another level of transparency
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© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
What Matters MostMateriality Matrix
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Greenhouse Gases and Logistics
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
“The UPS Rolling Laboratory”Alternative Fuel & Advanced Technology Vehicles
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Alternative Fuel and Advanced Technology Fleet
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Carbon Intensity of Alternative FuelsULSD
Ethanol
Biodiesel (Soy)
Renew. Diesel (Soy)
CNG
Hydrogen (NG)
Electricity
Renew. Diesel (Tallow)
Biodiesel (Grease)
Dairy CNG
Landfill CNG
0 10 20 30 40 50 60 70 80 90 100
Carbon Intensity (adjusted gCO2e/MJ)
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Alternative Fuel Options Today
Propane
Natural Gas
(CNG)
Electric
Renewable Diesel
(RD) with subsidy
Availability
Energy CostLanded $MMBTU
Petroleum Fuels
Low availabilityWidely Available Today
Low Cost
High Cost
Renewable Natural
Gas with subsidy
Natural Gas (LNG)
Other Advanced
Drop-In Fuels
Biodiesel*Ethanol*
with subsidy
EV Fuel Cell(Hydrogen)
* Limited to blending with gasoline or diesel
RD and RNG are viable options
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Capitalize on Renewable Natural GasUPS is in a unique position with CNG/LNG fleet to utilize RNG at scale.
• RNG is available. CA reserves could meet 25% of CA diesel fuel (CANGVC)
• Access requires gas quality upgrades and pipeline connections
• Current subsidy for RNG is better in transport versus electricity
• RNG lowers the carbon intensity for CNG, LNG, EV and future GTL fuels
Natural Gas(Methane)
Gas to Liquids (GTL) Diesel,
Gasoline, Jet
Renewable Natural Gas (RNG Bio-methane)
CNG, LNG
Transport Fuel Conversion Costs
Conversion and Pipeline Connection
Anaerobic DigestionLandfill, Waste Water Treatment,
Etc.
Electricity
EV Electric Vehicles
Natural Gas Grid
Future Fuel Cell Vehicles (Hydrogen)
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
14% Overall Carbon Intensity Reduction
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
B2C Deliveries
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Sustainable Shipping Solutions
UPS My Choice™
Schedules a pickup only when needed
Allows customers to control delivery time
and location
Provides customers a centralized package pickup
and delivery location
Result: Fewer Trips, Less Fuel, Reduced Emissions
UPS Access Point™UPS Smart Pickup™
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Manage | Shipping Materials
Right-sized boxes enables us to move more shipments
without adding vehicles and planes
• Eco Responsible Packaging Program certifies customer packaging materials and processes
• Packaging design and testing for enhanced sustainability
• UPS Express® Reusable Envelopes enable two shipments using just one envelope
• UPS Billing Center and UPS Paperless® Invoice allows secure online processing while reducing paper use
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Mitigate | Carbon Neutral Shipping
UPS has purchased 175,000 metric tonnes of carbon offsets since 2010
• 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 & The Carbon Neutral
Company Certification
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Mitigate | Carbon Neutral Offsets
• High Quality Projects:• Gold Standard• Verified Carbon Standard• Climate Action Reserve
• 2014 projects included the Garcia River, Big River, and Salmon Creek Forests in Northern California
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Optimized logistics network
Intermodal shifting for energy conservation and emissions reduction• Network flexibility allows for UPS to shift to the most fuel-efficient mode of
transport• Use rail extensively to reduce carbon emissions for long-distance shipping
• With intermodal shifting, we avoided approximately 3.1 million metric tonnes of carbon emissions in 2014 while keeping service commitments
• Nearly 2.2 million metric tonnes avoided by shifting from air to ground
• 0.9 million metric tonnes avoided by shifting volume from ground to rail
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
ORION: On-Road Integrated Optimization and Navigation
• Analyzes stops for the day and identifies an optimized route
• 2014: Deployed to 23,000 U.S. Drivers; realized a six- to eight-mile reduction per route
• 2016: Deployed to all U.S. Drivers; annual Savings at Full Deployment:
• 100 million miles
• 100,000 CO2 metric tonnes
• 10 million fuel gallons
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
How many facilities,and where?
How much inventory, and where?
Which modes and routes?
Reduce negative impact, create positive good!
Network Optimization
Transportation Optimization
SustainabilityInventory Optimization
Customer Supply Chain Optimization
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 25
Solutions to Help Manage Climate ImpactUPS My Choice® service allows receivers to control delivery time and location, conserving fuel and improving experience
UPS SurePost™ service combines the consistency and reliability of the UPS® Ground network with “final mile” delivery often provided by the U.S. Postal Service
UPS Access Point provides customers centralized locations — such as convenience stores, gas or petrol stations, or businesses with extended hours — for deliveries and pickups
Eco Responsible Packaging Program enables a more sustainable approach to packaging, conserving resources by improving packaging materials and quality
UPS On-Demand Packaging produces a shipping carton exactly the size needed exactly at the point where merchandise is packed for shipment
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Recognition
sustainability.ups.com
CNG … EV … Fuel Cells … Hybrids … LNG … Propane … RNG … Synthetic Fuels …
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