Significant advances in technology, globalization and consumerism over the past several years have ushered in a new age of commerce. To date, the supply chain has generally been managed in a linear fashion, where the movement of goods, information and funds are at best loosely connected. The emerging practice of "synchronizing commerce" is part of a vast marketplace in which goods, information and funds flow with speed, precision, security and efficiency.

UPS helps manage supply chain activities for companies large and small in 150 countries. UPS helps small businesses act like large ones by providing access to a broad portfolio of services, technology and funding. By helping businesses better manage demand and supply cycles, synchronized commerce comes with the promise of creating new and lasting growth opportunities around the world by engaging more people in global trading.

UPS is an integral player in the world of synchronized commerce. We help our customers streamline their operations and integrate their supply chains to better serve their customers, drive efficiencies, eliminate waste and create more sustainable business models. We also have worked with customers to help them design and facilitate their own recycling needs.

We have invested billions of dollars to create an unparalleled worldwide infrastructure of physical assets, technology and people that positions us to capitalize on the opportunities that synchronized global commerce presents.

As a result, we have great confidence in our future prospects. However, in the spirit of constructive dissatisfaction that has driven UPS for nearly a century, we recognize that there is work to be done to become an even more sustainable enterprise in the next century.

Our approach balances the economic, environmental and social aspects of our business. This includes, but is not limited to:

Economic

• Maintaining a profitable company that provides competitive returns to our shareholders.
• Growing our business by bringing added value to customers through a wide array of solutions to meet their needs.
• Improving business efficiency.
• Supporting and stimulating the removal of barriers that inhibit the flow of commerce among trading partners and nations.
• Being a catalyst for economic development in the places we operate.

Social

• Extending our equal opportunity practices to more countries.
• Seeking solutions that provide UPS share ownership opportunities for employees worldwide.
• Investing in more training and development opportunities for our people around the world, giving them the tools to sustain safe, productive and meaningful careers.
• Developing and implementing a comprehensive strategy and protocols for philanthropy, community involvement and volunteerism wherever we operate in the world.

Environmental

• Researching, testing and using new technologies and fuels that reduce consumption and emissions.
• Deploying new operational procedures and technologies that optimize our network and reduce waste.
• Implementing our environmental initiatives on a global basis.

Finally, not only are we committed to update the measurements presented in this report on an annual basis, but to add new ones as appropriate. We will make these measurements more global in scope as our ability to collect and monitor international data improves.

At UPS, we know that our future performance and accountability are more important than past accomplishments. We endorse responsible, ethical growth and believe accountability for achieving such growth is an essential element of operating a successful business.

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