UPS Environmental Policy Statement.

We Strive to Protect the Environment for Our People and Our Communities. We consider the environmental impact of our business and operations. Our responsibility for the environment ranges from the construction, maintenance, and operation of our facilities to the maintenance and operation of our fleets—both ground and air—to the conservation of resources.

In an effort to maintain a leadership role in protecting the environment, we continually strive to improve technology and environmental performance. All our people are responsible for pollution prevention, resource conservation, and compliance with applicable environmental laws and regulations.

We comply with current and applicable regulatory and government agency requirements and seek to anticipate and lead in complying with such requirements.

Environmental Guidance Statements.

These Environmental Guidance Statements provide explicit guidance for managing our environmental affairs. They serve as objectives from which more detailed environmental performance goals can be set that benefit our customers, our company and our environment.

Environmental Compliance. We will conduct our environmental compliance program in accordance with UPS’s Business Conduct and Compliance Program, including auditing and monitoring to ensure compliance with applicable laws, regulations and company requirements and prompt correction of deficiencies.

Air Emissions. We will evaluate the emissions from our facilities, vehicles and aircraft, and strive to reduce them. We will promote the use of clean fuels in our vehicles, taking into consideration emerging regulatory requirements, cost-effective technologies and the engagement of sound business opportunities.

Resource Conservation. We will monitor the use of electricity, fuel, and water at our facilities and seek opportunities to conserve their use. We will strive to improve the fuel efficiency of our vehicles and aircraft through preventive maintenance, technology applications and fuel conservation practices.

Waste Management. We will reduce waste through source reduction, reuse, and cost-effective recycling. We will reduce waste from damaged packages by recommending packaging improvements to customers when appropriate, and continually improving package handling. We will seek opportunities to purchase recycled and recyclable products of acceptable quality. We will responsibly dispose of waste remaining from our business and operations.

Petroleum Storage Systems.

We will maintain systems with high standards for corrosion protection, spill, and overfill prevention and release detection. We will maintain spill contingency plans and regularly monitor our systems for product releases. We will respond to releases of product without delay, assess the environmental impact, and take appropriate remedial action.

Pollution Prevention. We will maintain Pollution Prevention Practices in our business and operations. We will responsibly control discharges of water from our facilities.

Training. We will identify training needs for achieving our Environmental Policy and Guidance Statements, and provide appropriate training for our people.

Sustainability. We continue to review all aspects of our business, including: systems, procedures, equipment and operating processes. These efforts are being developed in tandem with our plans for growth and profitability. Our plan includes:

• Transportation network optimization to minimize the miles driven/flown
• Investments in fuel-saving technologies to reduce our dependency on fossil based fuels
• Energy conservation via facility design, operational practices, renewable energy and retrofitting
• Maintain long standing engagements with globally recognized institutions, standards, and reporting processes
• Offer a wide portfolio of logistic and reporting services to help customers manage, reduce and mitigate their environmental impact

All these measures include both ongoing and new initiatives for the entire enterprise. We utilize technology-enabled, behavior-based and engineering-based approaches to address our environmental footprint.