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Carbon Reduction and Avoidance 


Our successes in addressing climate change were numerous again in 2012. They are all based on our comprehensive ability to measure, manage, and mitigate greenhouse gas emissions throughout our global operations, as described later in this Report and summarized below. 

With intermodal shifting, we avoided approximately 3.3 million metric tonnes of carbon emissions while keeping commitments to customers. The total includes nearly 2.4 million metric tonnes avoided by shifting delivery volume from air to ground, and 0.9 million metric tonnes avoided by shifting volume from ground to rail. 

With telematics, we avoided 14,000 metric tonnes of carbon emissions by preventing 206 million minutes of idling time that would have consumed 1.5 million gallons of fuel. 

With telematics and other technologies, we avoided 13,000 metric tonnes of carbon emissions by reducing stops per mile, which avoided more than 12.1 million miles of driving and consumption of 1.3 million gallons of fuel compared to 2011. 

We improved efficiency at UPS Airlines, primarily by reducing block hours (see Success in Air Fleet Efficiency) by 1.1 percent even though shipping volume for the airline rose 4.8 percent compared to 2011. Since 2008, we have increased our package volume per block hour by 15 percent, which ultimately reduces carbon. 

We continued to bring the fuel and emissions efficiency of our freight business closer to the high level of our package delivery business: 

• By increasing the pounds of freight hauled per gallon of fuel through load and dispatch optimization, we avoided consumption of 1 million gallons of fuel. 

• In the U.S., our freight vehicles avoided 2,600 metric tonnes of emissions, primarily by dropping idle time per driver per day by 61 percent compared to 2011. The equivalent fuel savings was 250,000 gallons. 

We again logged many more miles in our growing fleet of alternative fuel and advanced technology vehicles: 

• The fleet increased to 2,688 vehicles. 

• It logged 49 million miles in 2012 – a 43 percent increase compared to 2011. 

• Total miles driven since 2000 reached 295 million (see table in Ground Fleet Efficiencies

• Our new goal for the alternative fuel fleet is 1 billion miles driven by 2017, more than double the previous goal of 400 million. 

With so many strong performances in our operating units, we achieved a result that surpassed even our high expectations: an absolute reduction in Global Scope 1 and 2 CO2e emissions compared to 2011

• Scope 1 and 2 emissions declined by 2.1 percent year-overyear, even though shipping volume increased 2.3 percent. 

• All three of our business segments contributed to the reduction, which means it was truly global in scale and widely distributed throughout our operations. 

• In our U.S. Domestic Package segment, we increased the number of ground packages delivered per gallon of fuel for the fourth straight year (see
 Ground Fleet Efficiencies).


Marketplace 


We increased the scale of our dedicated infrastructure for healthcare customers in the Asia Pacific region by nearly 377,000 square feet (35,000 m2) with new facilities in Hangzhou, Shanghai and Sydney. Our healthcare distribution network now includes 36 dedicated facilities around the world. 

We successfully fulfilled the demanding expectations associated with being the Official Logistics and Express Delivery Supporter for the London 2012 Olympic and Paralympic Games. 

Behind the scenes, we accurately measured the greenhouse gas emissions associated with all our activities for the Games, which spanned the globe and also included travel and hospitality for all UPS employees and 700 visitors we invited to London. 

We then purchased carbon offsets to effectively zero out our entire carbon footprint for the Games. For more information, see page 51 of this Report and our Corporate Sustainability Report for 2011 (ups.com/sustainability). 


Workplace 


All four KPIs related to the UPS workplace showed positive progress in 2012: two for employee satisfaction (see Workplace Introduction) and two for safety on the job. 

We substantially expanded UPS University, which provides thousands of educational choices to employees online. 


Community 


Total Charitable Contributions, our community-focused KPI, increased to US$97.5 million. 

UPS employees, families and friends donated 1.8 million volunteer hours to non-profit organizations, a new high. 

More than 1,400 UPS employees stepped forward to become Sustainability Ambassadors within the company and in their communities, acting as advocates for the environment at work, at home, and in their communities.

The GRI Reporting section of this Report is organized and presented according to the 3.1 framework established by the Global Reporting Initiative (GRI).