Interview with Peter Harris, VP, International Sustainability, UPS

The Sustainabilist, in conversation with Peter Harris, Vice President, International Sustainability at UPS, to talk about their initiatives of increasing delivery efficiency and reducing emissions.

As UPS is the Official Logistics Partner for Expo 2020, what are some of the initiatives and ideas that are planned keeping in mind the key themes of the event ‘Sustainability’ and ‘Mobility’?

As the Official Logistics Partner of Expo 2020 Dubai, UPS is committed to supporting growing demand across the region to ensure a seamless delivery of the first World Expo to be held in the Middle East, Africa and South Asia region. UPS is applying its decades of expertise in sustainable logistics to manage and mitigate the environmental impacts of the Expo while supporting its ambition to deliver one of the most sustainable events in history. Expo 2020 Dubai is all about the future, and one in which UPS endeavors to play an important role in advancing a more sustainable delivery network. We have been collaborating with regional leaders and partners since 2017, to minimise the environmental impact of Expo 2020 and deliver a sustainable event.

For instance, in October 2019, we collaborated with SAP to test electrically assisted quad cycles for future deployment in the region. These electric quad cycles, for potential use during Expo 2020 Dubai, will enable us to identify more sustainable, productive, and effective operations in logistics, while making it possible to deliver the last mile with zero carbon footprint.

In order to successfully organise an event of such a large scale and to carry out efficient sustainable logistical operations in general, it is essential that there is a steady public-private sector partnership. Tell us a bit about how UPS is going about that aspect?

UPS continues to expand its footprint in ISMEA and globally through private-public partnerships. We are spearheading partnerships with city officials, urban planners, and other partners, such as Expo 2020 Dubai, to address sustainability issues through innovative urban delivery solutions. UPS strives to create a more sustainable company and world by employing disruptive, cutting-edge technologies to build a safer and cleaner fleet for the communities in which we deliver.

We are as well proud of our collaboration with the UAE Ministry of Climate Change and Environment (MOCCAE) and other public and private partners aiming to collectively promote a green transition of the road freight sector. Together, we will work towards addressing sustainability challenges across the Emirates, and help the UAE in achieving its sustainability goals in the transportation sector. The transition to clean energy and technologies is a priority for both UPS and the UAE, and is well aligned with the country’s UAE Green Agenda 2030 and the National Climate Change Plan 2017-2050.

We are also working on projects in other cities around the world, while collaborating with policymakers, academic institutions, and nongovernmental organisations, to shape urban logistics policy. In the UK, we joined a consortium to deploy smart-grid technology, which enables simultaneous recharging of an entire fleet of electric vehicles without the need for the expensive upgrade to the power supply grid. Electric vehicles are an integral component within UPS’s alternative fuel and advanced technology fleet. A cost effective deployment of electric vehicles will play a key role in ensuring the global trend toward urbanisation is sustainable.

UPS recently announced plans to purchase more vehicles that would run on alternate fuel to help reduce the company’s carbon footprint. What is the vision of UPS in terms of sustainability, with clean energy as one of its elements?

Moving our world forward by delivering what matters is driving us towards sustainable solutions. We are passionate about adopting alternative fuels for our fleet, including hybrid and electric vehicles. Our journey toward a less carbon-intensive future is enabled through one of the industry’s largest private alternative fuel and advanced technology fleets, and a ‘rolling laboratory’ of more than 12,000 vehicles that drive more than 1 million cleaner miles each business day. UPS is leading the charge on electrification of our fleet over the next five years, including investments with Tesla, Workhorse, Arrival, and other manufacturers.

What are some of the technological innovations UPS is using to further increase their delivery efficiency and reduce emissions?

Through our Smart Global Logistics Network, UPS is driving operational and sustainable improvements for our business, while providing improved speed and service for our customers, from pickup to the final mile. Recognising the importance of corporate environmental and social responsibility, investors are increasingly recognising the importance of sustainability to the short- and long-term prosperity of business, both in terms of risk mitigation and opportunity generation. This is consistent with sustainability steadily moving from a peripheral, ‘nice to do’, activity, to a central function of the business.

Customers are in search of sustainable logistics solutions. Some customers want to buy specific solutions, such as UPS carbon neutral, while some want to go further and develop innovation partnerships. This is a logical extension of the way in which sustainability is moving to the centre stage of business.

UPS has developed and rolled out a tool called On-Road Integrated Optimization and Navigation (ORION), to ensure UPS drivers use the most optimised delivery routes, with regards to distance, fuel, and time. Using this technology has generated annual savings of more than 100,000 metric tonnes of CO 2, 100 million miles, and 10 million gallons of fuel. Other last mile delivery solutions that are reducing miles and emissions include UPS My Choice, which allows consumers to choose a convenient time and place of delivery from their mobile device. Moreover, UPS Access Point network provides a consolidated delivery location, such as a gas station or convenience store, for multiple consumers in the same area.

Other ways in which UPS is increasing efficiencies while reducing emissions is through our investments in alternative fuels. Since 2009, UPS has invested more than USD 1 billion in alternative fuel, advanced technology vehicles, and fueling stations globally. Our partnership with Arrival, an electric vehicle manufacturer in the UK, is helping us develop an extended range delivery vehicle that uses battery technology and a smart on-board electric system to give it a 150-mile range. With roughly 1,000 electric or hybrid electric vehicles already in operation in cities around the world, UPS expects to continue to lead the charge on electrification of medium-duty vehicles.

What is UPS’ involvement in helping create smarter cities, not just in UAE, but worldwide?

UPS recognised the challenges that mega-cities would face years ago. We see this, day in and day out. UPS strives to support in creating smart, digitally enabled cities across the communities that we serve, by leading the way with a wide range of studies, tests, and partnerships. Our services and integrated network allow shippers to simplify their supply chains by using fewer carriers, and to adapt their transportation requirements and expenditures as their businesses evolve.

UPS is marshalling the scale of its evertransforming smart global logistics network to encourage innovation within the energy and automotive industry. In London, for instance, UPS has deployed smart grid technology, while we are commissioning 35 electric vehicles (EVs) to be trialled in both London and Paris.

Apart from fleet electrification, we are also partnering with cities to rethink transport in dense urban cores, and create innovative last-mile delivery solutions that minimise congestion and pollution. We previously worked with the city of Hamburg to develop and deploy innovative delivery techniques, including replacing our large delivery vehicles with a smaller, city-friendly fleet. We have since expanded this model and introduced eBikes in other cities in Europe.