When John Jackson is on his route, he’s delivering more than just packages.
“Some of my customers come and out and greet me when I make the delivery out of the propane delivery truck,” the New Orleans UPS driver said. “They’re really excited that UPS is investing in the environment. I’m proud to know that I’m making a difference, and it feels good to help the environment.”
Jackson is one of the UPS alternative and advanced technology fleet drivers from around the world who have saved more than 1 billion alternative fuel miles, avoided using 134 million gallons of conventional gas and diesel and reduced greenhouse gas emissions by more than 370,000 metric tons one year ahead of UPS’ schedule.
In 2012, UPS (NYSE: UPS), the Atlanta-based global leader in logistics that transports packages and freight, set the goal to reach 1 billion miles driven with alternative fuels by the end of 2017.
UPS announced that goal was reached on Tuesday, August 2, 2016.
UPS reps said about 12 percent of the conventional diesel and gasoline fuel previously used by the company’s ground fleet is being replaced by alternative fuels including renewable natural gas and renewable diesel.
“We had a big sustainability goal as we set out to make the most of our ‘Rolling Laboratory’ by driving 1 billion clean miles in alternative fuel vehicles,” David Abney, UPS Chairman and CEO, said. “That’s the equivalent of well over 4,000 trips to the moon. While attaining this goal is new, our commitment to seeking out alternative fuels actually dates back to the 1930s when UPS tested electric vehicles. With more than 100,000 drivers logging more than 3 billion miles per year, our future depends on our ability to meet the growing demand for global trade while reducing our impact on the environment.”
UPS reps said the company’s long-term commitment to sustainability is transforming commercial transportation and logistics, spurring growth in the clean fuels market and powering critical engineering advances.
“The question wasn’t should we make alternative fuels work?” Mike Whitlatch, UPS’s vice president of global energy and procurement, said. “Instead, it was ’What’s the best way to make alternative fuels work for UPS, and for the environment?’ After more than a decade of focus, we are now driving more than 1 million miles globally each business day in our alternative fuel and advanced technology fleet.”
UPS’ Rolling Lab includes 7,200 vehicles ranging from old-fashioned pedal power and electric-assisted bicycles in dense urban areas like London and Hamburg to electric and hybrid electric vehicles in the U.S. and natural gas, renewable natural gas and propane-using vehicles globally.
“Many congested cities around the world are implementing zero tailpipe emissions zones, and UPS is keeping ahead of the curve by investing in advanced technologies and creating the commercial delivery fleet of the future,” CEO Abney said.
UPS reps said from 2009 to the end of this year, the company, which serves more than 220 countries and territories worldwide, will have invested more than $750 million in alternative fuel and advanced technology vehicles and fueling stations. They said that continued investment, combined with supportive government policies and a collaborative set of partners has helped to expand development and utilization of alternative fuels, vehicles and infrastructure throughout the world.
UPS reps said the project helped them learn several lessons that other companies can benefit from when striving to make sustainability investments pay off:
• Encourage Innovation
UPS reps said what started as an “approach” has become an ecosystem of innovation and progress shaped by collaboration with suppliers, policy makers and other stakeholders. UPS applied its expertise in logistics to the sustainability challenge and leveraged the scale of its 100,000-vehicle fleet to drive technology, market and infrastructure improvements that make cleaner fuels and technologies economically viable, they said.
• Adapt And Tailor The Solution
The best solution is not always the perfect solution, UPS reps found. The fuels and vehicles that work in one region or one setting may not make sense in another. Technology constraints, range, infrastructure availability, government policies and local air quality goals all play a role in determining vehicle deployment and fuel selection, they said.
• There’s No Substitute For Real-World Big Data
UPS reps said they are able to see 30,000 delivery route optimizations per minute through its On-Road Integrated Optimization and Navigation (ORION) system, which uses fleet telematics and algorithms to reduce the number of miles driven. The application of this big data approach to the UPS Rolling Lab’s fleet has been a key enabler to improving performance and reducing costs, they said. When fully implemented, ORION is expected to help UPS avoid 100 million miles driven every year, reduce greenhouse gas emissions by 100,000 metric tons annually and avoid 10 million gallons of fuel per year.
• It Takes Consistent, Unwavering Commitment From Leadership
Long-term investments don’t always pay off in the short term, UPS found. Economic and market forces are constantly changing, and the political environment necessary to foster investment and infrastructure development can be unpredictable. Reps said it took UPS more than 10 years to reach a point where the accumulation of miles driven by its fleet was rising nearly exponentially. That wouldn’t have happened without a long-term commitment, they said.
• Partner, Promote And Report Progress
Sharing progress and learnings with key stakeholders and partnering with alternative fuel and technology developers, non-profits, government agencies and industry trade groups have been critical to the Rolling Laboratory’s success, UPS reps said. UPS reports its progress annually in its Sustainability Report, and includes key metrics such as CO2 emissions, energy consumption and alternative fuel and advanced technology miles driven. Together, these metrics demonstrate the positive impact of the company’s sustainability and social responsibility programs, they said.
