United Parcel Service (UPS), one of the leading shippers in the United States, became the first small package carrier to offer customers the chance to buy carbon offsets to neutralize the greenhouse gas emissions generated by the transport of their packages. We asked our community what questions they had and then added a few of ours and connected with Scott Wicker, VP Sustainability, to learn more about this effort.
View the press release here. View list of brands that offer carbon offsets including UPS and 12 other shippers.
COD: Congratulations on taking a leadership role in climate change. Can you walk us through how your program works for customers?
SCOTT: Customers with UPS Internet Accounts simply check a box for carbon neutral shipping when they near the completion of their transaction on . The cost is 5 cents for a ground package and 20 cents for an air package. We then purchase high-quality certified carbon offsets. If a company wants to calculate their carbon footprint in the aggregate, we offer that service for a contractual fee and then buy offsets on their behalf.
COD: The optional carbon offset service provides customers with the opportunity to add a flat fee relating to neutralize the greenhouse gas emissions generated by the transport of their package. Can you give us some insight into your back-end calculations?
SCOTT: We decided to offer a flat fee because our customers told us that’s what they wanted — a convenient and easy way to address climate change. The fees were determined based on historic package data. Our back-end calculations for both our transactional and contractual offering is based on our intimate knowledge of the UPS network — the modes of transportation we use (which may be rail, air or ground), both direct and indirect emission sources (Scopes 1, 2 and 3), and our accurate company emissions inventory. We’ve been reporting our carbon emissions since 2002.
COD: What emissions calculation methodology are you using or have you created?
SCOTT: It’s a proprietary calculator that uses the carbon data associated with our transportation network and our knowledge of how our transportation network and operations work, and the standardized protocols being used around the world.
COD: The process is being certified by The CarbonNeutral Company. Can you give us some details into the affiliation between UPS and The CarbonNeutral Company?
SCOTT: We wanted UPS carbon neutral to be credible and thought the best way to establish credibility was through third-parties. We used the CarbonNeutral Company Protocol to get our program certified by The CarbonNeutral Company. They examined our processes and determined that they complied with their standards. The same process was used with SGS for our calculator, which they verified.
COD: The program is currently offered at UPS.com. What if I buy something from an online retailer that offers UPS shipping, will there be an option in the future for me to neutralize my greenhouse gas emissions at that point?
SCOTT: Right now, the answer today is “no”. The online retailer would have to sign up for our contractual service make special arrangements, which is possible. They should contact their UPS representative if they are interested. We hope to roll out UPS carbon neutral to more customer groups in 2010
COD: What about at Mail Box, Etc., is there any talk about extending the UPS offer to brick-and-motor stores in the future?
SCOTT: We hope so. It will all depend on how popular the service proves to be.
COD: As part of the announcement of this program, you have also announced a carbon analysis service for high-volume UPS customers. How will this work?
SCOTT: The process begins with the calculation of the customer’s carbon footprint based on their UPS shipments. Once an accurate emissions number is complete, we can purchase offsets using our certified process. This information also can be used to help companies “green” up their supply chains, including consulting that can offer new distribution and transportation strategies, packaging solutions, and damages reduction.
COD: Carbon offsets continue to receive a good deal of criticism. What’s the bottom line, are carbon offsets a useful tool or not?
SCOTT: We don’t see offsets as the total solution. First, every company needs to do whatever it can to reduce its environmental impact by using resources wisely, operating efficiently and through conservation. But carbon offsets can supplement those efforts. And it sends a strong message to your customers that you care about the environment and are willing to act. The key is to acquire high-quality verified offsets that meet high standards.
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Interview: Scott Wicker, VP Sustainability, UPS on UPS’s Per-Package Carbon Offsets Service: United Parcel Serv..
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