UPS’s 15th annual Sustainability Report provides a complete update on the company’s sustainability efforts, including a new goal to reduce absolute greenhouse gas (GHG) emissions 12 percent by 2025 across global ground operations, a goal developed using methodology from the Science Based Targets initiative.
The use of renewable energy is critical to reach this ambitious goal, so UPS also established three supporting targets to drive investments in renewable energy, fuels, technologies and infrastructure:
- 25 percent of the electricity it consumes will come from renewable energy sources by 2025, a significant increase from 0.2 percent in 2016.
- 40 percent of all ground fuel will be from sources other than conventional gasoline and diesel by 2025, an increase from 19.6 percent in 2016.
- 25 percent of new vehicles purchased annually will be an alternative fuel and advanced technology vehicle by 2020, up from 16 percent in 2016.
UPS operates more than 8,300 alternative fuel and advanced technology vehicles worldwide. The company’s fleet includes electric, hybrid electric, hydraulic hybrid, compressed natural gas (CNG), liquefied natural gas (LNG), propane and lightweight fuel-saving composite body vehicles. In addition to its use of alternative vehicles, UPS uses millions of gallons of lower-carbon footprint renewable diesel and renewable natural gas (RNG) in its fleet each year.
These initiatives reinforce the company’s commitment to reducing its environmental impact despite growth in e-commerce deliveries, which are driving up energy used to operate facilities and power its vehicle fleet.
“Because of our size and scale, we know our commitments can shape markets, advance technologies and be a catalyst for infrastructure investments,” said David Abney, UPS Chairman and CEO. “We rely on the ingenuity of our employees, suppliers and technology partners to help us reach goals that will transform the shipping industry and spur innovation.”
The UPS vision entails a future smart logistics network of advanced technology vehicles and facilities powered by more diverse and sustainable energy sources, including on-site solar, off-site wind, renewable natural gas, renewable hydrogen, and renewable diesel delivered via advanced energy system infrastructure. UPS already deploys many of these technologies in its ground fleet and facilities, and plans to significantly increase their use in its worldwide fleet.
Since 2009, UPS has invested more than $750 million in alternative fuel and advanced technology vehicles and fueling stations globally. The company used more than 97 million gallons of alternative and lower-carbon fuels in its ground fleet in 2016 and recently made an $18 million investment in on-site solar energy systems across eight facilities. UPS uses its Rolling Laboratory approach to determine which alternative fuels and technologies work best in each situation. From old-fashioned pedal power and electrically-assisted bicycles, to electric, hybrid electric, natural gas, renewable natural gas, propane and renewable diesel, UPS puts sustainability innovation into action, all over the world.
In addition to its environmental efforts, UPS has also established goals to continue its industry-leading employee safety performance and commitment to local communities. This includes a goal to reach 20 million volunteer hours by the end of 2020, as well as a pledge to donate $127 million in charitable contributions in 2020 through The UPS Foundation. These efforts support communities around the world, including UPS’s work with partners to deliver life-saving blood, medicines and vaccines to remote communities and its support of relief organizations.
These goals and other achievements from 2016 are highlighted in UPS’s 2016 Sustainability Report, which was prepared in accordance with the new GRI Standards: Comprehensive option. To view the full Report, please visit ups.com/sustainability.
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