UPS announced yesterday it is the first express company to offer US customers the option ofoffsetting CO2 emissions of domestic parcel transportation and will also match customer offsets.
Under its carbon neutral programme, UPS will offer US shippers the option of paying a smallfee to calculate and offset the climate impact of the shipment of each of their packages. Theper-package price for the optional service is $0.05 for UPS Ground services and $0.20 for UPS NextDay Air, UPS 2nd Day Air and UPS 3 Day Select services.
Based on customer feedback, a flat fee is used to make it simple and convenient for thosewishing to participate. The price includes the cost of calculation, administrative costs associatedwith the service and the cost of the offsets. Offsets will be purchased based on the carbonassociated with participating customer shipments. To encourage customers to participate in thisflat fee programme, UPS will match the offset purchases, effectively doubling the offsets purchasedin 2009-2010, up to $1 million.
“Our customers told us they wanted an easy, credible way to join us in our efforts to reducethe environmental impact of their supply chains,” said Bob Stoffel, senior vice president,engineering, strategy, supply chain and sustainability. “These services complement UPS’s ownsustainability efforts while offering customers a new option to address the environmentalchallenges of their supply chains.”
The UPS carbon neutral service initially is available to the roughly one million US customerswho use UPS Internet Shipping with their UPS account number. UPS plans to extend the programmeto other UPS customers in 2010.
UPS Internet Shipping users simply check a box for carbon neutral shipping when they near thecompletion of their transaction on ups.com. UPS then will purchase high-quality certifiedcarbon offsets. Initially, these will include offsets certified to the “Gold Standard,” “VoluntaryCarbon Standard” or “Climate Action Reserve.”
The calculation to measure the CO2 impact of the customers’ shipments is based on a varietyof current and historical operational data, including distance and transport mode. UPS’scalculation methodology and processes are verified by Societe Generale de Surveillance (SGS), aninspection, verification, testing and certification company. The calculator is based onGreenhouse Gas Protocol, the most widely used international standard for carbon accounting andreporting. In addition, the carbon offset process is also certified by The CarbonNeutral Company.
In a second, related move, UPS also announced a carbon analysis service for its high-volumecustomers. Under this plan, available only on a contract basis, UPS will calculate the carbonimpact of a customer’s entire UPS shipping activity. The calculations then can be used by theshipper to purchase offsets directly or through UPS. The proprietary calculator used for thisservice also is verified by SGS.
“We believe these steps are important not just for UPS, but also for our customers,” Stoffelnoted. “Our global economy depends upon reliable transportation, so we all have aresponsibility to do everything we can to reduce our carbon footprint on the environment.”
UPS has extensive programmes for conservation, reducing fuel use and emissions by its air andground transportation operations and using alternative fuel technologies.
