Conservation and Technology Help UPS Deliver Better Fuel Efficiency

Company Avoids Driving 63.5 million miles in 2010

UPS (NYSE: UPS) today released the latest edition of its annual Sustainability Report, disclosing it had once again managed to reduce the amount of fuel it’s using to deliver each package in the United States.

UPS’s U.S. package volume rose 1.8 percent in 2010 compared to 2009, but it reduced the amount of fuel consumed per package by 3.3 percent. The company attributed the improvement to deploying the right vehicle on the right routes, using technology to minimize the miles driven and focusing on how behavior can affect fuel use.

All told, technology enabled UPS to avoid driving more than 63.5 million miles in 2010 with an associated emissions avoidance of 68,000 metric tonnes. That distance is the equivalent of 251,987 trips to the International Space Station.

“Fuel represents not only a major cost factor for UPS but also a major source of emissions that impact the environment. It makes sense for UPS to report extensively on how the company is doing its best to lower its net fuel use,” said Scott Wicker, UPS chief sustainability officer.

The new report, found at ups.com/sustainability, spotlights key ways that UPS technology has reduced fuel consumption:

• Routing technology, which enabled UPS to reduce the miles flown and driven.
• Loading optimization so that more packages are being delivered with fewer vehicles on the road.
• Telematics, which provides data on how a vehicle performs mechanically as well as on a driver’s route and behavior behind the wheel. Telematics saved 15.4 million minutes of engine idling time in 2010.

“The data we gather from Telematics enables us to make small adjustments with big payoffs,” said Wicker. “For example, one of our metrics is ‘stops per mile,’ which measures our ability to deliver more packages with fewer engine restarts. Increasing the number of stops per mile by just 0.01 percent in 2010 was the equivalent of not driving 9.13 million miles.”

In this year’s report, UPS has increased its reporting in several areas. Water usage, Scope 3 emissions, the financial value of in-kind transportation donations to charity, details about carbon offset purchases and the company’s long-term “decarbonization” strategy all are detailed. UPS also becomes the first U.S. corporation to use a major accounting firm, Deloitte & Touche LLP, to “assure” its sustainability report. The report also was reviewed by the Global Reporting Initiative.

Other highlights include:

• UPS’s alternative fuel/advanced technology vehicle fleet topped 200 million miles driven since 2000.
• More than 5,289 employees now are included in the UPS Circle of Honor, which recognizes drivers who have driven for 25 years without an avoidable accident.  Collectively these drivers have driven 5 billion miles, the equivalent of circling the earth 188,000 times.
• Total charitable contributions reached $97.1 million in 2010.
• Employees logged 1.2 million volunteer hours in 2010.
• UPS’s greenhouse gas inventory (direct and indirect) was verified and certified by third-parties for the first time.

“This sustainability report outlines how UPS supports social, environmental and economic value not only today but for the foreseeable future,” added UPS Chairman and CEO Scott Davis.

 

Dave Matthews Band Caravan Signs with UPS to Offset Carbon Footprint of its Tour

Atlanta, July 13, 2011

Logistics Leader Joins the Festival to “Move the Music”

The Dave Matthews Band Caravan, a longtime leader in “greening” initiatives, is working with UPS (NYSE: UPS) to help create a more sustainable concert tour this summer.

“We’re joining the festival to move the music in a sustainable way,” said Ron Rogowski, UPS vice president, sponsorship & events. “We will demonstrate to the live music industry that speed, efficiency and reliability need not be sacrificed in the name of sustainability.”

UPS already has assumed responsibility for the logistics planning and actual movement of the huge stage, lighting and production equipment being used by the Dave Matthews Band on its four-city “Caravan” tour, which opened June 24 in Atlantic City and most recently performed July 8-to-10 in Chicago. The tour continues in New York Aug. 26-to-28 and concludes in Seattle from Sept. 2-to-4.

“We’ve worked so hard to reduce our carbon footprint over the last two decades,” said Patrick Jordan, spokesman for Dave Matthews Band. “Every year our mission is to figure out how to make our touring even more sustainable.”

For the tour’s concert movements, UPS is taking a three-step approach, devising the most efficient transport solution possible leveraging its multimodal network; precisely measuring the carbon footprint of the moves, and then purchasing the necessary certified carbon CO2 offsets to mitigate the emissions.

“Managing the logistics of a concert tour is not unlike what UPS does every day for customers in the high-tech and healthcare sectors; both demand flawless execution,” Rogowski noted. “UPS is uniquely qualified to handle both the environmental and logistical challenges associated with delivering live concert events and we’re proud to be working with the Dave Matthews Band Caravan as a founding partner in our sustainable touring logistics program.”

UPS takes a comprehensive approach to its sustainability efforts, which includes utilizing a wide range of transport modes to help its customers find the right balance between price, speed and environmental impact. Every day, the logistics company coordinates the movement of millions of shipments using a global network of trucks, aircraft, trains and ships, nimbly shifting between modes to maximize efficiency while ensuring customers receive the service they require.

UPS became the first package carrier in the United States to unveil a carbon neutral program in 2009, building on the company’s legacy of sustainable business practices and satisfying the demand for eco-friendly products. The calculation to measure the carbon (CO2) impact of the customers’ shipments is based on current and historical operational data, including distance and transport mode and a comprehensive carbon inventory that is third-party verified.

UPS’s proprietary calculation methodology and processes are verified by Societe Generale de Surveillance (SGS). In addition, the carbon offset process also is certified by The CarbonNeutral Company.  The calculator is based on the Greenhouse Gas Protocol, the most widely used international standard for carbon accounting and reporting.

When a customer elects to neutralize their shipments, UPS calculates the carbon impact and then purchases high-quality certified carbon offsets on the customer’s behalf. UPS will target “Voluntary Carbon Standard” or “Climate Action Reserve” certified offsets.

UPS long has been a leader in exploring and implementing transportation solutions that improve efficiency, beginning with the use of electric vehicles in the 1930s and extending to its present day fleet of nearly 2,000 alternative fuel vehicles, which have logged more than 200 million miles since 2000. Throughout its history, UPS has continually demonstrated its commitment to reducing its environmental impact through initiatives focused on fuel, water and energy conservation, emissions reduction and waste management.

UPS has been recognized repeatedly by a wide range of sustainability-focused organizations for its industry-leading environmental and social responsibility efforts. Most recently, in 2010, UPS earned the No. 1 ranking on the Climate Counts scorecard in the consumer shipping sector for the second consecutive year. The logistics company also was ranked first in social responsibility among all eligible delivery companies by Fortune in its “World’s Most Admired” 2010 survey.

UPS (NYSE: UPS) and Live Nation Entertainment (NYSE: LYV) announced an alliance in May 2011 through which UPS serves as the exclusive global package, shipping and logistics sponsor of Live Nation Entertainment and select Live Nation Entertainment tours and venues. UPS also serves as an Official Sustainability Partner of Live Nation Entertainment with both parties working together to reduce transportation emissions and waste. In addition, UPS provides carbon neutral shipping in North America for ticket orders for events at Live Nation owned and operated venues and merchandise purchased from the Live Nation Entertainment Store.