Local Messengers and Local Delivery
Chief Sustainability Officer
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- UPS ranks among ‘America’s Best Employers’ (Forbes)
- UPS earns spot among 50 most community-minded companies in America (2021 The Civic 50 annual survey)
- Ware2Go (a UPS company) earns 2021 Green Supply Chain award
- Carol B. Tomé (UPS CEO) receives CARE Impact Award for Global Leadership
- UPS Asia Pacific recognized with a bronze for workforce culture
- South Carolina Chamber presents UPS with 2021 Diversity & Inclusion Award
- UPS earns three honours at Spirit of Alliance Awards
- UPS named a Best Place to Work for Disability Inclusion (2021 Disability Equality Index)
- Carol B. Tomé (UPS CEO) was named to the Top 100 Women CEOs of 2021 (Women We Admire)
- Sustainalytics (Morningstar: 19.3 Low Risk)
UPS Sustainability Report
Evaluation of UPS
UPS developed goals and identified progress to meet those goals, but they are not specifically linked to sustainable development goals (SDGs). They have the SDGs separately identified in the social impact section of the report.
It is mentioned in the report that meeting the goals is not only in UPS power, but it also depends on the scalable solutions to replace fossil fuel, for example the sustainable fuel aviation or electric vehicles. However, UPS is being proactive and is allocating resources in the social impact area to compensate for the fossil fuel consumption.
In terms of supply chain, UPS simply claims “to be resilient against problems related to the environment, labour practices and human rights.” There is no additional information of how that is evaluated and reported. The only metrics related to supply chain are the number of audits conducted to evaluate commitment to the UPS Code of Business Conduct.
Deloitte & Touche LLP provided a limited level of assurance on management’s assertion over the disclosures in the 2021 GRI Index and SASB reports, specifically over the Statement of Greenhouse Gas emissions for the year ended December 31, 2021.
This earns UPS a C with neutral outlook. The company has. along way to go in order to become fully sustainable.
UPS Company Activity
United Parcel Service, Inc. is involved in the business of logistics and package delivery and also provides supply chain management services. The logistics services include transportation, distribution, contract logistics, ground freight, ocean freight, air freight, customs brokerage, insurance, and financing, in approximately 200 countries and territories.
Additionally, it offers truckload brokerage services, supply chain solutions to the healthcare and life sciences industry, shipping, visibility, and billing technologies, and financial and insurance services. The company operates a fleet of approximately 121,000 package cars, vans, tractors, and motorcycles; and owns 59,000 containers. UPS was founded by James E. Casey and Claude Ryan on August 28, 1907 and is headquartered in Atlanta, GA.
UPS Sustainability Activity - As per company declarations
At UPS the company’s sustainability efforts include investments in next-generation vehicles, in innovative delivery methods for crowded cities, in route optimization technologies, and in developing people to drive the innovations needed for a carbon neutral future.
Specifically, UPS is reimagining a network that includes electric ground and air vehicles, cleaner-burning fuel and climate-conscious facilities. Additionally, a commitment to diversity and inclusion is perceived as enabling progress within the company and therefore UPS is encouraging a culture where equity, transparency, courage, authenticity and a sense of belonging not only in the workplace but also among customers, suppliers and the communities served. Furthermore, the motto, “You belong at UPS’ strengthens the long-term commitment towards building a more inclusive and equitable UPS.
UPS is intending to reduce carbon emissions, specifically through achieving carbon neutrality by 2050. However, the ability to meet environmental goals specifically, depends on significant technological advancements of sustainable alternative solutions, including aviation fuel and alternative fuel vehicles, which may require to expend significant additional resources to acquire assets or on remediation efforts. UPS is then prioritising other business, social, governance or sustainable investments, while remaining committed to being responsive to climate change and reducing our carbon footprint. As such, through The UPS Foundation (TUPSF), the company is providing targeted relief for marginalised, underserved and remote communities globally.
Certificate & Labels, Standards and Frameworks
- GRI Content Index
- Task Force on Climate-related Financial Disclosures (TCFD)
- Sustainability Accounting Standards Board (SASB)
- The Greenhouse Gas Protocol
- Carbon Disclosure Project (CDP)
UPS in the news: Press Reviews and Social Media
- Reuters (June 17, 2021, Sebastien Malo) – UPS, TForce settle pollution allegations in five states
According to the Environmental Protection Agency (EPA) between 2015 and 2020 UPS and TForce have failed to inform environmental regulators about the excessive amounts of hazardous waste they process at their facilities. Moreover, the companies, above mentioned, have been accused of leaking hazardous substances when packages damaged, for which EPA requires them to pay $3.8 million in exchange for EPA to drop the administrative claims. UPS and TForce have 24 months to come into compliance, through enhanced reporting and employee training, with the Resource Conservation & recovery Act at 183 facilities across 5 states.
- HuffPost (Dec 13, 2021, by Dave Jamieson) UPS Pays $1 Million To Settle Wage Theft Allegations Over Charitable Deductions
Members of the Teamsters Local 804 which represents workers at 14 UPS facilities brought the case up where they said that in 2019 and 2020 the company diverted $1 or $2 from their checks towards charitable contributions to United Way, even though it didn’t have their written permission to do so.
Furthermore, in the complaint it is also mentioned that managers were subject to “compelling adverse consequences” if they didn’t meet the quota, or to “compelling positive consequences” if they did. UPS agreed to pay $1 Million, but did not comment on the litigation.
- Reuters (November 11, 2021, by Daniel Wiessner) – UPS workers’ Calif. class action alleges bias against women
In the lawsuit workers claim that men are paid better with more chances to advance, while women are placed in dead-end jobs. Three women filed the complaint regarding women, 40 and older are given fewer hours and job duties and are supervised more closely than younger male employees. In the complaint is also mentioned that the company’s male dominated senior management ignores issues related to disparities between men and women, as well as the lack of effective procedures for filling complaints or enforce its company’s anti-discrimination policies. No response or comment was received from UPS at the moment the article was published.
Highlights from UPS Sustainability Report
- 31% ethnically diverse members on Board of Directors
- 46% women on Board of Directors
- In 2021, achievements regarding waste management include increased national vendor contracts and enhanced recycling reporting. For example in the U.S. UPS diverted 72 percent of waste from landfills
- Published first Task Force on Climate-related Financial Disclosures (TCFD) report in 2021
- In 2021, created a full time director-level position to develop and manage a robust ESG stakeholder engagement program
- SAF supply limited and has not reached economies of scale making it cost prohibitive for adoption at UPS
Targets vs Progress Reported
|40% alternative fuel in ground operations by 2025||- In 2021 UPS purchased 156 million gallons of alternative fuels, 26% of the total ground fuel usage, up from 24% in 2020
- 30+ urban logistic projects to improve short deliveries in cities around the world using eQuads and electric bikes
- Out of 121,000 package cars, vans, tractors, and motorcycles, up to 10K are custom-built all electric delivery vans, 10,300 natural gas vehicles (additional 9,300 to purchase between 2022-2024) and 125 pre-order Tesla’s new fully electric semi-tractors, currently at 25% close to reaching the target
- 3B miles driven on alternative fuel since 2000
|25% renewable electricity powering facilities by 2025, 100% renewable electricity in facilities by 2035||- In 2021, 5% of the total energy consumed was generated from renewable sources
- 155M gallons of renewable natural gas purchased since 2014
- 100% renewable electricity in both global data centres (as of January 1, 2022)
- ~75% electricity from renewable sources in European facilities
|30% sustainable aviation fuel (SAF) by 2030||- SAF supply limited and has not reached economies of scale making it cost prohibitive for adoption at UPS
- 10 electric Vertical Takeoff and Landing (eVTOL) aircrafts arriving in 2024
|50% reduction in CO2 per global small package by 2035 (2020 baseline)||- 2.55kg of CO2 per packaged delivered in 2021, up from 2.51 in 2020 from Scope 1 and 2 emissions|
|50 million trees planted with a focus in urban communities by 2035 (2012 baseline)||- 3.2 million trees planted in 2021, with a total of 22M trees planted since 2012|
|Positively impact 1 billion lives by 2040||- 23M in funding, in-kind and technical support
- 2.2K shipments of humanitarian supplies
- 30+ humanitarian crises responses to globally
|25% of charitable donations targeted toward underserved women, youth and marginalised communities||- 3% of charitable donations in 2021
- 14K women entrepreneurs were trained and coached
- $200K awarded to the Miranda Family Foundation for arts equity grants
- $19.5M+ addressed systemic barriers for target population
|30% women in full-time management globally by 2025||- 27% women in full-time management at UPS
- 46% Board of Directors comprised women
- 36% women at C-level executives
|40% ethnically diverse company management by 2025||- 37% ethnically diverse company management
- 31% Board of Directors comprised of ethnically diverse members
- 36% ethnically diverse executives
|30 million volunteer hours by 2030 (2015 baseline)||- 24M volunteer hours by UPS employees, families and friends since 2011|
|1M volunteer hours dedicated to underserved Black communities by 2030||- 100K volunteer hours recorded in underserved Black communities|