Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Impact
• Employee Well-being
• Supply Chain Sustainability

Environmental Achievements

• Reduced CO2e per package delivered by 14% from 2010 to 2020
• Achieved 22% alternative fuel purchases as a percent of total ground fuel in 2020
• Achieved 7.8% renewable electricity from renewable sources in 2020
• Diverted 60% of waste from landfills in the U.S. in 2020

Social Achievements

• Launched Equity, Justice and Action (EJA) task force to ensure alignment with core DEI principles
• Conducted inaugural UPS Culture Survey
• Expanded internal business incubation and disruption program
• Created health and safety programs to reward employees throughout the pandemic
• Contributed more than $33 million in funding, in-kind and technical support for Health & Humanitarian initiatives

Governance Achievements

• Established a full-time director-level position to develop and manage a robust stakeholder engagement program
• Published inaugural SASB standards table
• Began work to enable publishing of inaugural TCFD report in 2021
• Featured on Barron’s list of America’s Most Sustainable Companies for the fourth consecutive year

Climate Goals & Targets

Environmental Challenges

• Increased absolute GHG emissions by 13.2% above the 2015 baseline due to accelerated e-commerce growth
• Water scarcity and water stress issues affecting significant number of operational locations

Mitigation Strategies

• Broadened planning horizons to focus on carbon neutrality by 2050
• Global water stewardship strategy based on transparency, conservation, and engagement

Supply Chain Management

Responsible Procurement

• Supplier Diversity Strategy
• Supplier’s Principles Agreement
• Anti-Corruption Compliance Manual for Third-Party Representatives

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Comprehensive option

Third-party Assurance: Deloitte & Touche LLP (limited assurance on sustainability disclosures, reasonable assurance on GHG emissions)

Sustainable Products & Innovation

• Carbon neutral shipping

Awards & Recognition

• Barron’s list of America’s Most Sustainable Companies

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Engagement
• Governance
• Diversity, Equity, and Inclusion (DEI)
• Employee Engagement

Environmental Achievements

• Achieved 5% renewable electricity powering facilities in 2021 (target 25% by 2025)
• Achieved 26% alternative fuel used in ground operations in 2021 (target 40% by 2025)
• 3.2M trees planted in 2021 (totaling 22M since 2012, target 50M by 2030)

Social Achievements

• Achieved 33% of annual charitable donations from The UPS Foundation targeted toward underserved women, youth and marginalized communities in 2021 (target 25% annually)
• 27% women in full-time management and 37% ethnically diverse management as of May 31, 2022 (targets 30% and 40% respectively by 2025)
• 1.1M volunteer hours in 2021 (100K in underserved Black communities), totaling 24M since 2011 (target 30M by 2030)

Governance Achievements

• All directors (other than CEO) are independent; independent Board Chair
• All members of the Audit, Compensation & Human Capital, Nominating & Corporate Governance and Risk Committees are independent
• Human capital management oversight added to Compensation Committee responsibilities

Climate Goals & Targets

Environmental Challenges

• Continued uncertainties related to the COVID-19 pandemic
• Changes in general economic conditions
• Industry evolution and significant competition
• Global climate change
• Interruptions in business from natural or man-made events

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: CDP, GRI, SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance, Ethics and Compliance
• Greenhouse Gas Emissions and Energy Use
• Employee Health, Safety and Wellness
• Employee Training and Development
• Employee Diversity and Inclusion
• Data Privacy and Cybersecurity
• Community Impact of Operations
• Resilience and Adaptation
• Societal Benefits of Business Activities
• Sustainable Customer Solutions

Environmental Achievements

• Reduced total gross scope 1, 2 and 3 CO2e emissions by 8.1% below the prior year period to 30,626 ('000) tonnes.
• 10.9% of total electricity was generated from renewable sources for owned and leased facilities (up from 8.2% in 2022).
• Purchased 169 million gallons of alternative fuels, representing 28.8% of total ground fuel usage (up from 26.5% in 2022).

Social Achievements

• Launched an Emergency Child Care Initiative for U.S.-based frontline workers, reducing turnover among the pilot group from 31% to 4%.
• Launched the SMB Global Business Academy, providing exporting, e-commerce and logistics training to over 200 diverse-owned SMBs.
• Pledged $1 million to support Wellspring Living’s Welcome Home campaign for human trafficking survivors.

Governance Achievements

• Established robust anti-corruption training for all management and employees in International Finance and Accounting or Brokerage.
• Implemented a Third-Party Due Diligence program for approximately 1,800 vendors.
• No significant instances of non-compliance with laws and regulations during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Limited supply and high cost of renewable and biofuels, particularly SAF.
• Fragmented public policy hindering the decarbonization efforts.
• Variability in interim progress towards emission reduction goals due to asset transition and volume fluctuations.

Mitigation Strategies

• Investing in hardware and software technologies to improve operational efficiency and reduce fuel consumption.
• Exploring and deploying zero-emission tailpipe solutions (BEVs, hydrogen vehicles).
• Actively engaging with suppliers and advocating for public policies that support the production and use of renewable and biofuels.

Supply Chain Management

Supplier Audits: Approximately 1,800 vendors through a Third-Party Due Diligence program.

Responsible Procurement

• Code of Business Conduct
• Third-Party Due Diligence program
• Sustainability best practices platform for outside service providers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in local weather patterns
• Increase in sea levels

Transition Risks

• Regulatory changes
• Market shifts
• Limited SAF supply and high cost
• Fragmented public policy

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy and alternative fuels

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Deloitte & Touche LLP

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 14
• 15
• 16
• 17

The report aligns with various UN SDGs through initiatives related to climate action, responsible consumption and production, decent work and economic growth, industry, innovation and infrastructure, sustainable cities and communities, and partnerships for the goals.

Sustainable Products & Innovation

• UPS carbon neutral shipping
• ORION platform with Dynamic Optimization
• UPSNav
• Carbon Impact Analysis solution