UPS Sets New Automotive Goal to Improve Fuel Efficiency by 20 Percent

UPS (NYSE:UPS) has set a new automotive goal to improve the miles per gallon (MPG) performance of its entire U.S. package delivery fleet by 20 percent between 2000 and 2020.

The goal was announced today as UPS released the latest annual update of its corporate Sustainability Report, available at ups.com/sustainability.

The new goal builds on gains UPS already has made by increasing its U.S. MPG 10% between 2000 and 2009 and applies to a U.S. ground fleet of 60,000 vehicles.

"Our automotive efficiencies over the last decade show a genuine commitment to conserving fuel and decreasing the emissions associated with the packages we deliver," said Bob Stoffel, UPS senior vice president and the executive responsible for UPS's sustainability program. "This new goal for the next decade is an important milestone in UPS's continuing dedication to finding and using new technology and processes that help us meet our customers' needs in a sustainable way."

For example in 2009, UPS drivers logged 77.3 million more miles than in 2000, yet fuel consumption decreased by 3.2 million gallons. Fuel efficiency levels were improved through improved vehicle technology, effective vehicle maintenance procedures, fuel conservation efforts, sophisticated routing technology and operational initiatives such as minimizing engine idling. Alternative fuel technology and vehicle deployments also improve UPS's fuel efficiency.

The automotive goal complements UPS's announcement last year that it will improve the carbon efficiency (CO2/ATM) of its airline by an additional 20% by 2020, for a cumulative reduction of 42 percent since 1990. The airline represents 53% of the company's global carbon footprint.

Also in the new Sustainability Report, UPS announced its 2009 achievements and objectives:

Community

* UPS maintained generous charitable giving, totaling $97.6 million despite a difficult economic year.
* The UPS Foundation expanded its focus on urgent humanitarian aid and disaster relief by providing financial support, in-kind transportation and logistics expertise.
* The company launched UPS Road Code, a safe-driving program for teenagers through a partnership with the Boys & Girls Clubs of America.

Marketplace

* UPS became the first major global package carrier to offer a carbon neutral service for deliveries in the U.S.
* Supplier diversity remained strong with nearly $1.6 billion spent with small and diverse businesses.

Environmental

* UPS deployed 245 new "green" vehicles running on compressed natural gas, adding to a fleet of nearly 2,000 alternative fuel vehicles.
* With 10 other members of the Air Transportation Association of America, UPS signed a memorandum of understanding with two potential aviation biofuel developers in 2009.
* UPS began reporting in greater detail on greenhouse gas emissions, including providing information on global CO2e emissions for Scope 1 and 2 for the first time and capturing and reporting more Scope 3 data from more sources.

The new report also outlines the company's continued efforts to be increasingly transparent and accountable, using hard data to guide the company in setting tougher goals and increasing third-party engagement to enhance credibility. For the first time, the UPS Sustainability Report has been assured by Deloitte & Touche LLP and checked by the Global Reporting Initiative.