Delivery Services Sustainability Evaluation
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Transcript of Delivery Services Sustainability Evaluation
Delivery Industry:Most ImprovedBy Teo Tertel, Ian Kerwin and Amanda Miller
Delivery Industry Overview
202 Million packages per year (USPS)
200 Billion pieces of mail per year (USPS)
Top Four Companies in the US: USPS, FedEx, UPS and DHL
DHL used 632 million liters of fuel in 2008
USPS revenue of 74 million in 2008
Special Challenges: Airplane Fuel- 53% of UPS CO2 inventory Paper and packaging is their business
Criteria for Most Improved
Commitment: Sustainability Goals
Energy used and GHG tracking & reduction Fuel Efficiency Alternative fuels and alternative energies
Facilities Energy use and green building
EMS: implementation and certification
Partnerships and Awards
Recycling and Waste
USPS: Motivation
“Adopting sustainable practices is not only good for the environment; it also helps to reduce operational costs.”
-- USPS Sustainability VP Sam Pulcrano
4 Main Sustainability Goals: Reduce facility energy use/intensity 30% by 2015 Increase alternative fuel 10% by 2015 Reduce petroleum fuel use 20% by 2015 Reduce greenhouse gas emissions 20% by 2020
USPS: Major Initiatives
“USPS has always been eager to find new ways to deliver the mail more effectively and efficiently.”
Energy Used: Fuel Efficiency
Fleet of 200,000 vehicles travel 1 billion miles each year, using 100 million gallons of gas
43,000 Alternative-fuel vehicles = 20% of 220,000 vehicles Largest civilian fleet of alt. fuel-capable vehicles in world
Carrier Optimal Routing improves both logistics and energy efficiency by using a detailed mapping system to create more fuel-efficient and safer delivery routes
“Fleet of feet”: 1/3 of deliveries made on foot 10,000+ letter carriers walk/bike their routes every day
Energy Used: Fuel Efficiency
Currently testing Chevy Equinox Fuel Cell Electric Vehicles Hydrogen fuel-cell technology has potential to create
most fuel-efficient and environmentally friendly vehicles on the market.
Retiring 10,000 non-energy efficient vehicles from its fleet in 2009
Plan to increase use of alternative fuels: electricity, E-85, biodiesel, propane and compressed natural gas.
Greenhouse Gas Emissions
Reduce Scope 1 and Scope 2 GHG emissions 20% by 2020. Includes direct emissions from facilities/vehicles and
indirect emissions from facility electricity
Emissions Report: Direct: 1,769,022 CO2 metric tons Indirect: 3,545,931 CO2 metric tons
In 2008, first full GHG emissions inventory of 34,000 facilities, 220,000 vehicles and contracted surface /air transportation. 1st government agency to report GHS emissions
USPS: Major Initiatives
MBDC collaborated w/ USPS to achieve Silver level of Cradle to Cradle Certification for 500 million Priority Mail & Express Mail envelopes/packages distributed each year.
Half billion Priority Mail/Express Mail packages/envelopes now meet higher environmental standards
Recycled 200,000 tons of paper, plastics and other waste in 2009
Decrease in GHS emissions of 1.67 million barrels of oil
Expanding Lobby Recycling to include additional 2,435 Post Offices
Reduced Facility Energy Use
Utility Management System: captures energy use and cost data of largest facilities for electricity, natural gas and steam. Largest 2,000 facilities = 75% of energy use
In 2008, consumed 30.7 trillion Btu across 34,000 facilities 15% reduction in energy use since 2003
Energy audits at most energy-intensive buildings Cost savings of $44 million by end of 2008
Green Building
All new building construction exceed energy efficiency req’s Perform energy modeling on multiple design concepts Meet LEED certification requirements
Exploring renewable energy with favorable return 10 buildings with on-site solar systems
Enterprise Energy Management System: improve performance, reduce cost/consumption, increase efficiency and improve energy planning.
Environmental Management System ISO 14001 certificated, implemented ?
Waste and Recycling
In 2009, USPS generated 455,000 metric tons of municipal solid waste Recycled 232,000 metric tons of that waste. Integrated waste management program
Pollution prevention awareness and training program targeted to all levels of employees to encourage waste prevention
Developing strategies to expand recycling of undeliverable Standard Mail and piloting “zero waste to landfill” programs
Partnerships and Awards
75 environmental awards, including: 40 White House Closing the Circle 10 Environmental Protection Agency WasteWise Partner of
Year Climate Action Champion Direct Marketing Association Green Echo Postal Technology Int’l Environmental Achievement for 2009.
Participating in voluntary sustainability-related programs California Climate Action Registry EPA WasteWise Program Department of Energy Clean Cities Program Int’l Post Corporation Envmt’l Measurement/Monitoring
System
2009 Outcomes/Accomplishments
Reducing energy intensity w/ cost avoidance of $150 million per yr.
Saving $42 million in fuel costs just during quarter 1 of FY 2010.
Forming Green Teams saving $4 million in 2009.
Saving $3 million during agency-wide energy challenge in 2009.
Avoiding approximately $1 million in costs in 2009 using green IT initiatives.
Recycling more than 200,000 tons of waste materials in 2009.
USPS: Stakeholder Reaction
All 200 packaging suppliers agreed to complete the required inspections associated with Cradle-to-Cradle Certification
Despite evident improvements regulators are still pushing legislation for DNM (do not mail) policies in several states citing environmental impacts
44% of retail postal transactions are now done online as customers enjoy the convenience of greener offerings
USPS: Unique Details
USPS does not receive any funding from the government Financial resources are revenue based $150M annual investment in energy efficiency
80% of fuel consumption (580 million GGE) results from contracted transportation services Target shift towards surface transport and overall
improvement
Purchased over 36,000 Flex-Fuel vehicles Limited E-85 infrastructure has prompted
exploration of converting ICE fleet to run on battery
FedEx: Least improved
Basic measuring and reporting
Efficiency: 2.2 pounds per available ton mile vs. UPS 1.42 pounds
Fuel: lack of current numbers and low goals
EMS- implemented in 1999 but still not certified
Partnerships- strength in CEO and partnerships
Awards- few significant awards
Recycling- unsure percent of waste and 8,000 vs. 232,000 metric tons recycled by USPS
Other: Still collecting data on water, unimpressive recycled content in packaging available at the stores
QUESTIONS?