Innovation

UPS partnered with The CarbonNeutral Company to establish the carbon neutral shipment program, offering shippers within the U.S. the option of charging customers an additional small fee to offset the carbon footprint of shipping their packages. The UPS stores incorporated the program, charging various fees for each package depending on the service it is using. Through adding additional fees to the CarbonNeutral packages, UPS is able to accomplish their sustainable goals in an extremely cost-effective manner. The extra revenue received from the program is allocated towards emission reduction projects that help to offset the CO2 emissions generated from the transportation processes. Some projects that reduced their carbon footprint included the construction of rainforests and landfill gas sites.

The CarbonNeutral program directly relates to UPS’s mission. Their goal is to “help the world grow more prosperous by providing transportation and logistics solutions that facilitate trade.” In order to maintain and make the world more prosperous, they must create environmental sustainability while continually sourcing materials and carrying out processes that make the company successful.

Inspiration

The push for the program was started by former Senior Vice President for supply chain, strategy, engineering, and sustainability for UPS, Robert Stoffel. He stated notably, “Our customers wanted a convenient, cost-effective means to address climate change in a real and tangible way.” So therefore he helped establish a program that accomplishes those specific requirements. Stoffel hoped that he could make the future of the company sustainable for itself, its customers, and the environment in which they operate.

The passion for going green did not stop at the corporate level. According to Ahmad Salem, a Multicenter Operator, the program is bigger than just the Rahway UPS store he is currently operating. He is hopeful that it will create a ripple effect and change how people do business, not just with UPS but outside of it as well. “Going green is the goal. With UPS being so large, being environmentally conscious is big. They are leading by example and are hopefully causing others to change. I maintain a strict policy of making the CarbonNeutral packages the only package option we sell to our customers.”

Overall impact

UPS is hoping that its sustainability efforts protect the environment and enhance the economy. Right now, they are taking huge steps towards those goals with programs like their CarbonNeutral packaging program. UPS is able to successfully track their carbon emissions and understand how much they need to offset.

The program is not only funding carbon offsets but also assists in the funding of conservation projects. Some projects UPS has invested in included reforestation, landfill gas destruction, wastewater treatment, and methane destruction. The Garcia River Forest, managed by the Conservation Fund, works with UPS to help support sustainable conservation in the forest. With projects like the forest, UPS is assisting in the preservation and protection of the forest. It allows the maintenance of the current supply of trees in the forest but also allows for a future where they can grow more trees and reduce more carbon dioxide in the air.

Business benefit

In the CarbonNeutral program, UPS is able to successfully track their carbon emissions right to the root. Part of the program is tracking and measuring the carbon footprint of each package in order to calculate how much emissions they need to offset from their business. In doing so, UPS is more conscious and aware of the specifics of their processes. The program provided UPS an environmentally-friendly structure for their business.

In the UPS Store we interviewed, we saw how involved the program was with their services. All domestic shipments were CarbonNeutral certified, which showed the store's dedication to the program. In the store's case, the added fees from the CarbonNeutral packages allowed them to contribute and donate to the carbon offset projects without cutting into their revenue. An added benefit of the program was that it strengthened the reputation of the company with their customers. According to the store operator, "A lot of people return to the store because they like that UPS is a very secure and environmentally friendly company.” Customers are more comfortable in doing business with UPS since they are pushing for a sustainable and successful future.

Social and environmental benefit

Carbon emissions contribute to climate change and, as a result, can yield serious consequences on humans and other living organisms. With the adoption of the CarbonNeutral program, UPS utilizes carbon neutral shipping which essentially lowers their footprint and allows them to accomplish their sustainable goals. Correspondingly, because of the CarbonNeutral program, there will be less pollution which can lead to a healthier planet. Companies may be inspired and decide to join UPS by implementing the CarbonNeutral program themselves.

Interview

Ahmad Salem, Multicenter Operator