Recognizing the environmental impacts of this sector, UPS states that it is “particularly focused on the environmental performance of [its] energy-intensive business assets…” Like its competitors, UPS has established fuel efficiency and carbon dioxide (CO2) reduction goals aimed at minimizing the company’s ecological and financial risks. UPS is seeking to reduce the CO2 emissions from its aircraft 20% per available ton mile by 2020, using a 2005 baseline. The company also aims to improve the fuel efficiency of its vehicle fleet 20% by 2020, using 2000 as its baseline. Three percent of UPS’s vehicle fleet are comprised of alternative vehicle technologies or use alternative fuels. UPS uses its integrated assets to transport U.S. urgent (overnight and two-day) and ground shipments through the same pick up and delivery network. Portfolio 21 sees UPS’s integrated routing and focus on route optimization as a competitive advantage. In support of UPS’s goal to improve fuel efficiency while simultaneously reducing CO2 emissions, Portfolio 21 has also asked the company to increase its capital spending on alternative vehicles.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 8/31/14 and may not reflect current opinions or subsequent events.