UPS to boost purchases of alternative-fuel vehicles by 2020

Global parcel delivery giant UPS Inc. will add more alternative-fuel and advanced-technology vehicles to its fleet and increase its reliance on renewable energy sources, even as steep growth in e-commerce deliveries drives up energy demands for both facilities and vehicles, the company said today.

UPS plans that by 2020, one in four new vehicles it purchases annually will be an alternative-fuel or advanced-technology vehicle, up from 16 percent in 2016, the company stated in its "2016 Corporate Sustainability Report."

The company currently operates more than 8,300 alternative-fuel and advanced-technology vehicles worldwide, including electric, hybrid electric, hydraulic hybrid, compressed natural gas (CNG), liquefied natural gas (LNG), propane, and lightweight fuel-saving composite-body vehicles, UPS said.

In terms of energy sources, UPS said it uses millions of gallons each year of renewable diesel and renewable natural gas (RNG) in its fleet, burning fuels with a lower carbon footprint than standard gasoline or diesel.

The commitment to accelerate its purchases of alternative-fuel vehicles reinforces UPS' overall green logistics goals in three areas, the company said:

• Reducing its greenhouse gas (GHG) emissions from global ground operations 12 percent by 2025
• Sourcing 25 percent of the electricity it consumes from renewable energy sources by 2025, a dramatic increase from 2016's 0.2 percent
• Obtaining 40 percent of all ground fuel from sources other than conventional gasoline and diesel by 2025, an increase from 19.6 percent in 2016

"Because of our size and scale, we know our commitments can shape markets, advance technologies, and be a catalyst for infrastructure investments," UPS Chairman and CEO David Abney said in a release. "We rely on the ingenuity of our employees, suppliers, and technology partners to help us reach goals that will transform the shipping industry and spur innovation."

UPS has invested more than $750 million in alternative fuel and advanced technology vehicles and fueling stations globally since 2009. Recent examples in 2017 included spending $18 million on solar energy panels and $90 million on building compressed natural gas (CNG) fueling stations and adding 390 CNG tractors and "terminal trucks" to its alternative-fuel fleet.