Delivery Industry:Most ImprovedBy Teo Tertel, Ian Kerwin and Amanda Miller

Delivery Industry Overview

202 Million packages per year (USPS)

200 Billion pieces of mail per year (USPS)

Top Four Companies in the US: USPS, FedEx, UPS and DHL

DHL used 632 million liters of fuel in 2008

USPS revenue of 74 million in 2008

Special Challenges: Airplane Fuel- 53% of UPS CO2 inventory Paper and packaging is their business

Criteria for Most Improved

Commitment: Sustainability Goals

Energy used and GHG tracking & reduction Fuel Efficiency Alternative fuels and alternative energies

Facilities Energy use and green building

EMS: implementation and certification

Partnerships and Awards

Recycling and Waste

USPS: Motivation

“Adopting sustainable practices is not only good for the environment; it also helps to reduce operational costs.”

-- USPS Sustainability VP Sam Pulcrano

4 Main Sustainability Goals: Reduce facility energy use/intensity 30% by 2015 Increase alternative fuel 10% by 2015 Reduce petroleum fuel use 20% by 2015 Reduce greenhouse gas emissions 20% by 2020

USPS: Major Initiatives

“USPS has always been eager to find new ways to deliver the mail more effectively and efficiently.”

Energy Used: Fuel Efficiency

Fleet of 200,000 vehicles travel 1 billion miles each year, using 100 million gallons of gas

43,000 Alternative-fuel vehicles = 20% of 220,000 vehicles Largest civilian fleet of alt. fuel-capable vehicles in world

Carrier Optimal Routing improves both logistics and energy efficiency by using a detailed mapping system to create more fuel-efficient and safer delivery routes

“Fleet of feet”: 1/3 of deliveries made on foot 10,000+ letter carriers walk/bike their routes every day

Energy Used: Fuel Efficiency

Currently testing Chevy Equinox Fuel Cell Electric Vehicles Hydrogen fuel-cell technology has potential to create

most fuel-efficient and environmentally friendly vehicles on the market.

Retiring 10,000 non-energy efficient vehicles from its fleet in 2009

Plan to increase use of alternative fuels: electricity, E-85, biodiesel, propane and compressed natural gas.

Greenhouse Gas Emissions

Reduce Scope 1 and Scope 2 GHG emissions 20% by 2020. Includes direct emissions from facilities/vehicles and

indirect emissions from facility electricity

Emissions Report: Direct: 1,769,022 CO2 metric tons Indirect: 3,545,931 CO2 metric tons

In 2008, first full GHG emissions inventory of 34,000 facilities, 220,000 vehicles and contracted surface /air transportation. 1st government agency to report GHS emissions

USPS: Major Initiatives

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.

Half billion Priority Mail/Express Mail packages/envelopes now meet higher environmental standards

Recycled 200,000 tons of paper, plastics and other waste in 2009

Decrease in GHS emissions of 1.67 million barrels of oil

Expanding Lobby Recycling to include additional 2,435 Post Offices

Reduced Facility Energy Use

Utility Management System: captures energy use and cost data of largest facilities for electricity, natural gas and steam. Largest 2,000 facilities = 75% of energy use

In 2008, consumed 30.7 trillion Btu across 34,000 facilities 15% reduction in energy use since 2003

Energy audits at most energy-intensive buildings Cost savings of $44 million by end of 2008

Green Building

All new building construction exceed energy efficiency req’s Perform energy modeling on multiple design concepts Meet LEED certification requirements

Exploring renewable energy with favorable return 10 buildings with on-site solar systems

Enterprise Energy Management System: improve performance, reduce cost/consumption, increase efficiency and improve energy planning.

Environmental Management System ISO 14001 certificated, implemented ?

Waste and Recycling

In 2009, USPS generated 455,000 metric tons of municipal solid waste Recycled 232,000 metric tons of that waste. Integrated waste management program

Pollution prevention awareness and training program targeted to all levels of employees to encourage waste prevention

Developing strategies to expand recycling of undeliverable Standard Mail and piloting “zero waste to landfill” programs

Partnerships and Awards

75 environmental awards, including: 40 White House Closing the Circle 10 Environmental Protection Agency WasteWise Partner of

Year Climate Action Champion Direct Marketing Association Green Echo Postal Technology Int’l Environmental Achievement for 2009.

Participating in voluntary sustainability-related programs California Climate Action Registry EPA WasteWise Program Department of Energy Clean Cities Program Int’l Post Corporation Envmt’l Measurement/Monitoring

System

2009 Outcomes/Accomplishments

Reducing energy intensity w/ cost avoidance of $150 million per yr.

Saving $42 million in fuel costs just during quarter 1 of FY 2010.

Forming Green Teams saving $4 million in 2009.

Saving $3 million during agency-wide energy challenge in 2009.

Avoiding approximately $1 million in costs in 2009 using green IT initiatives.

Recycling more than 200,000 tons of waste materials in 2009.

USPS: Stakeholder Reaction

All 200 packaging suppliers agreed to complete the required inspections associated with Cradle-to-Cradle Certification

Despite evident improvements regulators are still pushing legislation for DNM (do not mail) policies in several states citing environmental impacts

44% of retail postal transactions are now done online as customers enjoy the convenience of greener offerings

USPS: Unique Details

USPS does not receive any funding from the government Financial resources are revenue based $150M annual investment in energy efficiency

80% of fuel consumption (580 million GGE) results from contracted transportation services Target shift towards surface transport and overall

improvement

Purchased over 36,000 Flex-Fuel vehicles Limited E-85 infrastructure has prompted

exploration of converting ICE fleet to run on battery

FedEx: Least improved

Basic measuring and reporting

Efficiency: 2.2 pounds per available ton mile vs. UPS 1.42 pounds

Fuel: lack of current numbers and low goals

EMS- implemented in 1999 but still not certified

Partnerships- strength in CEO and partnerships

Awards- few significant awards

Recycling- unsure percent of waste and 8,000 vs. 232,000 metric tons recycled by USPS

Other: Still collecting data on water, unimpressive recycled content in packaging available at the stores

QUESTIONS?