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Sustainability Story: UPS Navigation System

Post Series: Investment Committee Commentary Q3 2018
Sustainability Story: UPS Navigation System

Every day, United Parcel Service (UPS) delivers 20 million packages across more than 220 countries and territories around the world and is forced to manage a rather significant carbon footprint from its 119,000 vehicles. The firm has set a number of environmental goals to be reached by 2025, including a 12% reduction in absolute greenhouse gas emissions compared to 2015 levels. Since UPS is planning to grow its operations at the same time, it needs to find ways to be more resource efficient. For one, it is investing in alternative fuel and electric vehicles, which UPS plans will comprise 25% of its fleet in 2025, up from 12% today.

Perhaps more interestingly, UPS is also adjusting the way it delivers packages. In Dublin, Ireland it is testing an “eco package hub” concept, a local mini distribution center from which drivers will make deliveries by bike or foot. In 2016, UPS launched ORION, a route-optimization software designed to find the most efficient delivery route every day. The system even minimizes the number of left turns, which saves fuel by reducing the time of idling. In 2017, ORION helped keep 100,000 metric tonnes of CO2 out of the atmosphere, which is equivalent to keeping more than 21,000 cars off the road for a year.

Source: UPS 2017 Sustainability Report

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