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Driving for Sustainability
Ed Rogers
Senior Director of Global Sustainability
UPS

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Driving for Sustainability November 10, 2015
Edward M. Rogers
Senior Director of Global Sustainability

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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.
Who We Are

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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.

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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.

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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.
UPS is Committed to More
Environmental
Responsibility
Empowered
People
Connected
Community
Economic
Enhancement

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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.
UPS’s Global Sustainability Principles
Sustainability Defined
The 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 Business
Profitably
Develop
People
Build the Brand
Provide Competitive
Compensation
Support
Communities
Support
Global
Trade
Provide Value-
Added Solutions
Focus on Customers

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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.
Measurement and Reporting
Achieving 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
8

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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 Most
Materiality Matrix

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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.
Greenhouse Gases and Logistics

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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.
“The UPS Rolling Laboratory”
Alternative Fuel & Advanced Technology Vehicles

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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.
Alternative Fuel and Advanced Technology Fleet

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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.
Carbon Intensity of Alternative Fuels
ULSD
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)

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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.
Alternative Fuel Options Today
Propane
Natural
Gas
(CNG)
Electric
Renewable
Diesel
(RD) with
subsidy
Availability
Energy
Cost
Landed
$MMBTU
Petroleum
Fuels
Low availability Widely 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

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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.
Capitalize on Renewable Natural Gas
UPS 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 Digestion
Landfill, Waste Water Treatment,
Etc.
Electricity
EV
Electric
Vehicles
Natural Gas Grid
Future
Fuel Cell
Vehicles
(Hydrogen)

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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.
14% Overall Carbon Intensity Reduction

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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.
B2C Deliveries

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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.
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™

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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.
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

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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.
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

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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.
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

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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.
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

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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.
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

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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.
How many facilities,
and where?
How much inventory,
and where?
Which modes and routes?
Reduce negative impact,
create positive good!
Network
Optimization
Transportation
Optimization
Sustainability
Inventory
Optimization
Customer Supply Chain Optimization

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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. 25
Solutions to Help Manage Climate Impact
UPS 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

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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.
Recognition

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sustainability.ups.com