New UPS Sustainability Report Sets Carbon Reduction Goal

Atlanta, July 07, 2009

Industry Challenged to Fully Disclose Emissions Data

In a significant move that once again demonstrates its environmental leadership, UPS (NYSE:UPS) has adopted a plan to cut the carbon emissions of its airline by an additional 20 percent by 2020, for a cumulative reduction of 42 percent since 1990.

The goal is laid out in the latest edition of UPS's Sustainability Report, released today at the website responsibility.ups.com/sustainability. The report shows the UPS Airlines already is a leader in fuel efficiency in the package delivery sector with an efficiency factor of 1.42 CO2 pounds per Available Ton Mile.

The report further discloses UPS's total global carbon inventory including Scope 1 (direct) emissions as well as Scope 2 and 3 (indirect) emissions, a level of reporting unusual for its industry.

"We believe this is important not just for UPS but also for our customers and society," UPS Chairman and CEO Scott Davis writes in the Sustainability Report. "The fact is that customers rely on the transportation and logistics industry as part of their supply chains. They need accurate information from the industry in order to calculate their own CO2 inventories and report them to the public. For that reason, we advocate full disclosure (Scopes 1, 2 and 3) for the entire transportation and logistics industry."

The aircraft goal is the first of a series of carbon reduction goals that the company plans to set in the coming years, according to Bob Stoffel, UPS senior vice president and the executive responsible for UPS's sustainability program.

"We set our first goal for aircraft emissions because our jet planes are the source of 53% of UPS's carbon output," Stoffel added.

UPS intends to achieve its 2020 airline goals by investing in more fuel-efficient aircraft types and engines; fuel-saving operational initiatives, and the introduction of biofuels.

The report extensively outlines UPS's approach to reducing its environmental impact and explains how the company intends to make improvements going forward.  The report also discusses in detail how the company uses an integrated and flexible transportation network to reduce its carbon intensity and save fuel.

"This is the most comprehensive, data-rich and global report we have ever produced since UPS released the industry's first report in 2002," Stoffel said. "It is a showcase of our renewed commitment to transparency and sustainable business practices."