UPS Drives 1 Billion Cleaner Miles Meeting Goal Early
August 02 2016 - 9:00AM
UPS (NYSE: UPS) today announced the company has achieved its goal
of driving 1 billion miles in its alternative fuel and advanced
technology fleet one year earlier than planned, and marked more
than 10 years of learning from its “Rolling Laboratory.” UPS’s
long-term commitment to sustainability is transforming commercial
transportation and logistics, spurring growth in the clean fuels
market and powering critical engineering advances. The company’s
wider sustainability progress is detailed in the 14th annual
Sustainability Report, released today.
“We had a big sustainability goal as we set out to make the most
of our rolling laboratory by driving 1 billion clean miles in
alternative fuel vehicles – that’s the equivalent of well over
4,000 trips to the moon,” said David Abney, Chairman and CEO, UPS.
“While attaining this goal is new, our commitment to seeking out
alternative fuels actually dates back to the 1930s when UPS tested
electric vehicles. With more than 100,000 drivers logging more than
3 billion miles per year, our future depends on our ability to meet
the growing demand for global trade while reducing our impact on
the environment.”
UPS deepened its commitment to alternative fuels in 2012, when
it set the goal of reaching 1 billion miles driven with alternative
fuels by the end of 2017. Shattering that goal one year early,
about 12 percent of the conventional diesel and gasoline fuel
previously used by UPS’s ground fleet is now being replaced by
alternative fuels including renewable natural gas and renewable
diesel.
“The question wasn’t should we make alternative fuels work?”
said Mike Whitlatch, UPS’s vice president of global energy and
procurement. “Instead, it was ’What’s the best way to make
alternative fuels work for UPS, and for the environment?’ After
more than a decade of focus, we are now driving more than 1 million
miles globally each business day in our alternative fuel and
advanced technology fleet.”
Recognizing alternative fuels and advanced technologies each
have unique advantages depending on the routes and geographies in
which they are used, UPS deploys the more than 7,200 vehicles in
the Rolling Lab to determine what works best in each situation.
From old-fashioned pedal power and electric-assisted bicycles in
dense urban areas like London and Hamburg to electric and hybrid
electric vehicles in the U.S., and natural gas, renewable natural
gas and propane globally, UPS is putting sustainability innovation
into action, all over the world.
“Many congested cities around the world are implementing zero
tailpipe emissions zones, and UPS is keeping ahead of the curve by
investing in advanced technologies and creating the commercial
delivery fleet of the future,” said Abney.
By the end of 2016, UPS will have invested more than $750
million in alternative fuel and advanced technology vehicles and
fueling stations globally since 2009. That continued investment,
combined with supportive government policies, and a collaborative
set of partners has helped to expand development and utilization of
alternative fuels, vehicles and infrastructure throughout the
world.
Along the way UPS learned several lessons that can help other
companies make sustainability investments that create long-term
payoffs:
- Encourage innovation. What started out as an
“approach” has become an ecosystem of innovation and progress
shaped by collaboration with suppliers, policy makers and other
stakeholders. UPS applied its expertise in logistics to the
sustainability challenge and leveraged the scale of its 100,000
vehicle fleet to drive technology, market, and infrastructure
improvements that make cleaner fuels and technologies economically
viable.
- Adapt and tailor the solution. The best
solution is not always the perfect solution. The fuels and vehicles
that work in one region or one setting may not make sense in
another. Technology constraints, range, infrastructure
availability, government policies and local air quality goals all
play a role in determining vehicle deployment and fuel
selection.
- There’s no substitute for real-world big data.
UPS is able to see 30,000 delivery route optimizations per minute
through its On-Road Integrated Optimization and Navigation (ORION)
system, which uses fleet telematics and algorithms to reduce the
number of miles driven. The application of this big data approach
to the UPS Rolling Lab’s fleet has been a key enabler to improving
performance and reducing costs. When fully implemented, ORION is
expected to help UPS avoid 100 million miles driven every year,
reduce greenhouse gas emissions by 100,000 metric tonnes annually,
and avoid 10 million gallons of fuel per year.
- It takes consistent, unwavering commitment from
leadership. Long-term investments don’t always pay off in
the short term. Economic and market forces are constantly changing,
and the political environment that is necessary to foster
investment and infrastructure development can be unpredictable. It
took UPS more than a decade to reach a point where the accumulation
of miles driven by its fleet was rising nearly exponentially. That
wouldn’t have happened without a long-term commitment.
- Partner, promote and report progress. Sharing
progress and learnings with key stakeholders and partnering with
alternative fuel and technology developers, non-profits, government
agencies and industry trade groups have been critical to the
Rolling Laboratory’s success. UPS reports its progress annually in
its Sustainability Report, and includes key metrics such as CO2
emissions, energy consumption, and alternative fuel and advanced
technology miles driven, among others. Together, these metrics
demonstrate the positive impact of the company’s sustainability and
social responsibility programs.
***To obtain more information on UPS’s sustainability
initiatives, please visit ups.com/sustainability. For media assets
(b-roll, photos, videos, etc.), please visit this page.
About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a
broad range of solutions including transporting packages and
freight; facilitating international trade, and deploying advanced
technology to more efficiently manage the world of business. UPS is
committed to operating more sustainably – for customers, the
environment and the communities we serve around the world.
Learn more about our efforts at ups.com/sustainability.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. The company can be found on the web at
ups.com® and its corporate blog can be found at longitudes.ups.com.
To get UPS news direct, visit pressroom.ups.com/RSS.
Kristen Petrella
404-828-4182
kpetrella@ups.com
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