UPS takes specific steps to reduce energy use in our 2,909 facilities worldwide. Our energy consumption in the United States is comprised of stationary sources of energy (electricity, natural gas, propane and heating oil) and mobile sources of energy (gasoline, diesel, Jet A, and compressed natural gas).

2007 Goal: Pending

In 2006, our total energy consumption increased by 4 percent. Energy consumption per package also increased by .07 percent.

UPS's energy use increased due to several factors:

• Time in transit and service enhancements require additional fuel use due to mode changes.
• Growth in online commerce is changing our delivery distribution. Our volume has shifted from 80 percent commercial and 20 percent residential to 70 percent commercial and 30 percent residential. Residential deliveries require more driving.

Our fuel conservation strategies are critical to our efforts to operate our business as efficiently and environmentally responsible as possible.

UPS continues to evaluate the collective impact of our multiple fuel and energy initiatives to determine a goal.

Ongoing Infrastructural Initiatives:

• Package Flow Technology: Continue to rollout technology to U.S. facilities designed to improve delivery efficiency and energy savings.
• Solar: Solar power provides 70 percent of the power needs at our Palm Springs, Calif., sorting facility. Since its deployment in July 2003, the 100 kilowatt solar panel initiative has produced over 523,000 kilowatt hours of energy, reducing our CO2 output by 1 million pounds. This is the equivalent of removing 99 passenger cars from the road for a year.
• Additionally, UPS has several facilities in California currently using "green" power as part of their electricity supply. This power comes from biomass sources. Biomass refers to a waste-to-energy process and can take the form of converting landfill gas, human and animal waste or agricultural waste to energy.

Ongoing Facility Initiatives:

• Energy-efficient lighting upgrade program.
• Energy-efficient motors and low friction belts for conveyer systems.
• High-speed roll-up doors to open and close quickly when vehicles are departing and arriving at the buildings, which reduces heating and air conditioning loss.
• Pressurized heating systems and dock door seals to prevent the infiltration of outside air in cooler climates.
• Motion sensors and timers for office lighting to reduce wasteful use of energy.
• High efficiency HVAC equipment.

Recycling and energy initiatives:

• UPS recycling initiatives impact the energy consumption of our suppliers. In 2006, UPS recycled 36,800 tons of solid waste materials including metals, plastics, paper, corrugated materials, pallets and wood waste.
• Additionally, in 2006, UPS purchased 36,300 tons of materials with recycled content. Solid waste recycling and purchasing materials with recycled content saves energy because it takes less energy to make products from recycled materials than producing them from raw materials. These purchases have the equivalent energy savings of removing 6,984 passenger cars from the road for a year.

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