UPS Sets Sights On 30% Sustainable Aviation Fuel By 2035

UPS Inc. UPS — like many shipping and delivery companies — has a goal to reach net-zero emissions by 2050, including scope 1, scope 2 and scope 3 emissions. 

But how will UPS get there?

At an investor and analyst conference Wednesday, UPS shared some medium-term environmental, social and governance goals for 2035 that will move the company closer to net-zero emissions.

1. UPS will reduce CO2 emissions by 50% per package delivered for global small package operations by 2035, using 2020 as the base year. 

As demands for e-commerce and home delivery continue to rise, emissions per package can be a useful metric.

2. All UPS facilities will be powered by renewable electricity by 2035. 

Renewable energy investments continue to increase as wind and solar energy prices decrease, and reducing reliance on fossil fuels is on the minds of investors, companies and customers.

3. Sustainable aviation fuel will account for 30% of fuel used for the company's global air fleet by 2035.

Because air is the mode of transportation that releases the most emissions per ton-mile, making headway in this area can have drastic impacts on a company's overall transportation-related emissions.

"We are creating a new UPS, rooted in the values of the company. Our strategic priorities are evolving to reflect the changing needs of our customers and our business, and what matters most to our stakeholders," Carol Tomé, chief executive officer at UPS, said in a release. 

UPS also has 2025 goals to reach 25% renewable electricity in facilities and 40% alternative fuels in ground operations. While it might not seem like a lot of time to achieve these goals, 2035 is about halfway to 2050 — the year by which many companies such as UPS have commitments to reach net-zero emissions. 

These 2035 goals were announced the same day Tomé said UPS is considering launching outsourced same-day delivery initiatives. This move has potential to fill a hole in the company's offerings. However, the impacts of increasing same-day delivery services often coincide with faster, more emissions-intensive modes of transportation.  

Shippers like UPS will have to continue to balance providing customers with the convenience of same-day delivery and achieving the emissions-reductions that customers and investors want.

Click here for more FreightWaves articles by Alyssa Sporrer.

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