In 2006, U.S. federal and state environmental agencies conducted 541 inspections at UPS facilities in the United States. Nine of those inspections resulted in penalties, totaling US$8,950. Additionally during 2006, UPS Supply Chain Solutions^® and Freight reported three penalties totaling US$3,820. This measurement is a snapshot of our past performance. The number of inspections is controlled by federal and state agencies.

2007 Goals:

This measurement is a lagging indicator. No goal intended. In 2006 UPS penalties as a percentage of inspections declined to 0.94%.

Ongoing Initiatives:

• UPS maintains environmental compliance by annually certifying its internal environmental auditors and by continuously focusing on the quality of the environmental programs and standards in its operations.
• 210 environmental auditors have completed our annual internal certification process.
• Additionally, 606 employees that have achieved fuel management systems certification.

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