We have thorough training programs and standards in place to prevent accidental spills. We exceed federal reporting guidelines by requiring that facilities report to UPS Corporate Environmental Affairs all spills that can impact the environment. By closely measuring information about every spill, our goal is to improve our programs and processes by understanding where failures occur. When a spill does occur, we focus on quick response, thorough clean up and accurate reporting to the appropriate authorities.

We have a “zero spill” objective in our operations, which is an aggressive goal for a company delivering nearly 15.6 million packages daily with 94,542 vehicles.

2007 Goals:

Reduce spills to as close to zero as possible.

In 2006, reportable spills decreased from 42 to 33 for U.S. Package Operations. Total reportable spill volume decreased to 1,195 gallons. Additionally, UPS Supply Chain Solutions^® and Freight had two reportable spills totaling 344 gallons in 2006.

As the chart below indicates, 58 percent of 2006 spills are from vehicle incidents including accidents, equipment failures and road debris.

Ongoing Initiatives:

• Reduce auto accidents.
• Maintain environmental management controls.
• Reduce improperly packaged items by educating customers on proper packaging techniques. The UPS Package Design and Test Lab recently developed new box strength guidelines for small package carrier shipments. Ensuring that our customers are using proper packaging materials and packing techniques helps facilitate damage-free shipments.

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