UPS announces strategic priorities, financial targets and ESG goals
UPS will be using its investor and analyst conference today to highlight priorities for its Customer First, People Led, Innovation Driven strategy; discuss targeted areas of growth including small and medium-sized businesses, healthcare and international; provide 2023 financial targets; and discuss newly established ESG targets.
Through the Customer First strategy, the company aims to “remove friction when doing business with UPS”, as measured by gains in Net Promoter Score, or NPS. The company has targeted a 2023 NPS score of 50 or higher.
With the People Led strategy, UPS is aiming to improve the employee experience and increase the likelihood that an employee recommends UPS as “a great place to work”. The company has established a 2023 “likelihood to recommend” target of 80% percent or higher. The Innovation Driven strategy focuses on technology and productivity initiatives.
“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,” said Carol Tomé, UPS chief executive officer.
The company will also discuss its 2023 financial targets, which include:
- Consolidated revenue ranging from approximately $98 billion to approximately $102 billion.
- Consolidated adjusted operating margin ranging from approximately 12.7 percent to approximately 13.7%.
- Cumulative capital spending from 2021–2023 of approximately $13.5 billion to approximately $14.5 billion.
- Adjusted return on invested capital ranging from approximately 26 percent to approximately 29 percent.
On the EGS front, UPS is announcing a new set of company-wide ESG targets, including its pledge to be carbon neutral across scope 1, 2 and 3 emissions in its global operations by 2050.
The interim 2035 environmental sustainability targets include:
- 50% reduction in CO2 per package delivered for its global small package operations (2020 base year).
- 100% of company facilities powered by renewable electricity.
- 30% of the fuel used in its global air fleet be sustainable aviation fuel.
UPS has published its ESG strategy at investors.ups.com/esg.