UPS offers customers green option

UPS has became the first small package carrier to offer its customers the ability to offset the carbon dioxide emissions generated by the transport of their packages within the United States. Under the UPS carbon neutral program, UPS will offer US shippers the option of paying a small fee to calculate and offset the climate impact of the shipment of each of their packages.

The per-package price for the optional service is $0.05 for UPS Ground services and $0.20 for UPS Next Day Air, UPS 2nd Day Air and UPS 3 Day Select services. Based on customer feedback, a flat fee is used to make it simple and convenient for those wishing to participate. The price includes the cost of calculation, administrative costs associated with the service and the cost of the offsets.

Offsets will be purchased based on the carbon associated with participating customer shipments. To encourage customers to participate in this flat fee program, UPS will match the offset purchases, effectively doubling the offsets purchased in 2009-2010, up to $1m.

The calculation to measure the CO₂ impact of the customers’ shipments is based on a variety of current and historical operational data, including distance and transport mode. UPS’s calculation methodology and processes are verified by Societe Generale de Surveillance (SGS), an inspection, verification, testing and certification company. The calculator is based on Greenhouse Gas Protocol, the most widely used international standard for carbon accounting and reporting. In addition, the carbon offset process is also certified by The CarbonNeutral Company.

“Our customers told us they wanted an easy, credible way to join us in our efforts to reduce the environmental impact of their supply chains,” said Bob Stoffel, senior vice president, engineering, strategy, supply chain and sustainability. “These services complement UPS’s own sustainability efforts while offering customers a new option to address the environmental challenges of their supply chains.”