2022 | GRI

CautionaryNoteRegardingForward-LookingStatements

Thisreport,ourotherreportsandourfilingswiththeSecuritiesandExchangeCommission(“SEC”)

containandinthefuturemaycontain“forward-lookingstatements”withinthemeaningofthePrivate

SecuritiesLitigationReformActof1995.Statementsotherthanthoseofcurrentorhistoricalfact,andall

statementsaccompaniedbytermssuchas“will,”“believe,”“project,”“expect,”“estimate,”“assume,”

“intend,”“anticipate,”“target,”“plan”andsimilarterms,areintendedtobeforward-looking

statements.Forward-lookingstatementsaremadesubjecttothesafeharborprovisionsofthefederal

securitieslawspursuanttoSection27AoftheSecuritiesActof1933andSection21EoftheSecurities

ExchangeActof1934.

Fromtimetotime,wealsoincludewrittenororalforward-lookingstatementsinotherpubliclydisclosed

materials.Suchstatementsrelatetoourintent,belief,andcurrentexpectationsaboutourstrategic

direction,prospects,andfutureresults,andgiveourcurrentexpectationsorforecastsoffutureevents;

theydonotrelatestrictlytohistoricalorcurrentfacts.Managementbelievesthattheseforward-looking

statementsarereasonableasandwhenmade.However,cautionshouldbetakennottoplaceundue

relianceonanysuchforward-lookingstatementsbecausesuchstatementsspeakonlyasofthedate

whenmade.

Forward-lookingstatementsaresubjecttocertainrisksanduncertaintiesthatcouldcauseactualresults

todiffermateriallyfromourhistoricalexperienceandourpresentexpectationsoranticipatedresults.

Theserisksanduncertaintiesinclude,butarenotlimitedto:consequencesrelatedtotheimpactofthe

COVID-19pandemiconus,ourcustomersandsuppliersandontheglobaleconomy;changesingeneral

economicconditionsintheU.S.orinternationally;significantcompetitiononalocal,regional,national

andinternationalbasis;changesinourrelationshipswithoursignificantcustomers;ourabilitytoattract

andretainqualifiedemployees;strikes,workstoppagesorslowdownsbyouremployees;increasedor

morecomplexphysicalordatasecurityrequirements;asignificantdatabreachorinformation

technologysystemdisruption;ourabilitytomaintainourbrandimage;legal,regulatoryormarket

responsestoglobalclimatechange;interruptionsinorimpactsonourbusinessfromnaturalorman-

madeeventsordisastersincludingterroristattacks,epidemicsorpandemics;exposuretochanging

economic,political,regulatoryandsocialdevelopmentsininternationalandemergingmarkets;our

abilitytorealizetheanticipatedbenefitsfromacquisitions,dispositions,jointventuresorstrategic

alliances;theeffectsofchangingpricesofenergy,includinggasoline,dieselandjetfueland

interruptionsinsuppliesofthesecommodities;changesinexchangeratesorinterestrates;ourabilityto

accuratelyforecastourfuturecapitalinvestmentneeds;increasesinourexpensesorfundingobligations

relatingtoemployeehealth,retireehealthand/orpensionbenefits;ourabilitytomanageinsuranceand

claimsexpenses;changesinbusinessstrategy,governmentregulationsoreconomicormarket

conditionsthatmayresultinimpairmentofourassets;potentialadditionalU.S.orinternationaltax

liabilities;potentialclaimsorlitigationrelatedtolaborandemployment,personalinjury,property

damage,businesspractices,environmentalliabilityandothermatters;ourabilitytorealizethe

anticipatedbenefitsfromourtransformationinitiatives;andotherrisksdiscussedinourfilingswiththe

SecuritiesandExchangeCommissionfromtimetotime,includingourAnnualReportonForm10-K+for

theyearendedDecember31,2022,andsubsequentlyfiledreports.Youshouldconsiderthelimitations

on,andrisksassociatedwith,forward-lookingstatementsandnotundulyrelyontheaccuracyof

predictionscontainedinsuchforward-lookingstatements.Wedonotundertakeanyobligationto

updateforward-lookingstatementstoreflectevents,circumstances,changesinexpectationsorthe

occurrenceofunanticipatedeventsafterthedateofthosestatements.

2022 | GRI

Companyenvironmental,socialandgovernance(“ESG”)goalsareaspirationalandnotguaranteesor

promises;noassurancescanbeprovidedthatanysuchgoalswillbemetduetodependenceon

technologicalinnovationsandotheravailableresourcesneededtodriveenvironmentalchange,manyof

whichareoutsideofourcontrol.StatisticsandmetricsrelatingtoESGmattersareestimatesandmaybe

basedonassumptionsorevolvingstandards.

This Report

UPShasreportedinaccordancewiththeGlobalReportingInitiative(GRI)Standardsfortheperiod

(January1,2022toDecember31,2022).WehaveupdatedthisGRIContentIndexwithrelevantdata

andinformationinaccordancewiththeGlobalReportingInitiative(GRI)SustainabilityReporting

Standards(UniversalStandards2021andthelatestTopicStandards).

ManagementofUnitedParcelService,Inc.(“UPS”)isresponsibleforthecompleteness,accuracyand

validityofthedisclosuresinthisGRIContentIndex,asof,andfortheyearended,December31,2022.

Managementisresponsibleforthecollection,quantificationandpresentationofthedisclosuresandfor

theselectionofthecriteriawhichmanagementbelievesprovideanobjectivebasisformeasuringand

reportingonthedisclosurescontainedherein.Measurementofcertaindisclosuresincludesestimates

andassumptionsthataresubjecttoinherentmeasurementuncertaintyresulting,forexample,from

accuracyandprecisionofconversionandotherfactors.Theselectionbymanagementofdifferentbut

acceptablemeasurementmethods,inputdataorassumptionsmayhaveresultedinmateriallydifferent

amountsormetricsbeingreported.

Managementassertsthatthedisclosuresinthis2022GRIContentIndexasofandfortheyearended

December31,2022arepresentedinaccordancewiththeGRISustainabilityReportingStandards.We

engagedDeloitte&ToucheLLPtoperformareview(limitedassurance)onmanagement’sassertion

relatingtothedisclosuresinthis2022GRIContentIndex,aswellasanexamination(reasonable

assurance)onmanagement’sassertionrelatingtotheStatementofGreenhouseGasEmissionsforthe

yearendedDecember31,2022,inaccordancewithattestationstandardsestablishedbytheAmerican

InstituteofCertifiedPublicAccountants(AICPA).

+ThissymbolindicatesthatinformationatthislinkwasnotsubjecttoDeloitte&ToucheLLP’sreview,and,

accordingly,Deloitte&ToucheLLPdoesnotexpressaconclusionoranyformofassuranceonsuchinformation.The

auditedfinancialstatementsincludedinthe2022AnnualReportonForm10-KwereauditedbyDeloitte&Touche

LLPanditsauditreport,datedFebruary20th,2023,isincludedtherein.

➯ThissymbolindicatesthatinformationatthislinkwasnotsubjecttoDeloitte&ToucheLLP'sreview,and,

accordingly,Deloitte&ToucheLLPdoesnotexpressaconclusionoranyformofassuranceonsuchinformation.

2022 | GRI

Contents

GRI2GeneralDisclosures:OrganizationandReportingPractices . . . . . . . . . . . . . . . . . . . . . . . . . 5

GRI2GeneralDisclosures:ActivitiesandWorkers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

GRI2GeneralDisclosures:Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

GRI2GeneralDisclosures:Strategy,PoliciesandPractices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

GRI2GeneralDisclosures:StakeholderEngagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

GRI3MaterialTopics:ProcesstoDetermineMaterialTopics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

205Anti-Corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

206Anti-CompetitiveBehavior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

302Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

305Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

401Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

403OccupationalHealthandSafety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

404TrainingandEducation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

405DiversityandEqualOpportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

418CustomerPrivacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

AppendixA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

AppendixB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

2022 | GRI

GRI 2: GENERAL DISCLOSURES: The organization and its

reporting practices

2-1Organizationaldetails

UnitedParcelService,Inc.(“UPS”),foundedin1907,istheworld’spremierpackagedeliverycompany

andaleadingproviderofglobalsupplychainmanagementsolutions.

Weoperateoneofthelargestairlinesandoneofthelargestfleetsofalternativefuelvehiclesundera

globalUPSbrand.Wedeliverpackageseachbusinessdayforapproximately2millionshipping

customersto11milliondeliverycustomersinover220countriesandterritories.In2022,wedelivered

anaverageof24millionpackagesperday,totaling6.2billionpackagesduringtheyear.Totalrevenuein

2022was$100.3billion.

UPSisanincorporated,publiclytradedcompany,withitsprincipalexecutiveofficesinAtlanta,GA,USA.

Wehaveasignificantpresenceinalltheworld’smajoreconomies.Regionsareidentifiedas:North

America,Europe,AsiaPacific,MiddleEastandAfrica(AMEA),andLatinAmerica(LATAM).

2-2Entitiesincludedintheorganization’ssustainabilityreporting

Theentitiesincludedinoursustainabilityreportingalignwithourfinancialreporting.

UPShastworeportingsegments:U.S.DomesticPackageandInternationalPackage.Ourremaining

businessesarereportedasSupplyChainSolutions.U.S.DomesticPackageandInternationalPackageare

togetherreferredtoasourglobalsmallpackageoperations.

2-3Reportingperiod,frequencyandcontactpoint

Thisreportpresentsdataforthe2022reportingyearofJanuary1,2022,toDecember31,2022,whichis

alignedtothecompany'sAnnualReportonForm10-K+unlessotherwiseindicated.Weissueour

sustainabilityreportsonanannualbasis.ThisreportwaspublishedonApril12,2023.

Pleasesendcommentsorquestionsaboutthisreportto[email protected]orinwritingto:

UPS

Attention:Sustainability

Building1,Floor4

55GlenlakeParkway

Atlanta,Georgia30328

2-4Restatementsofinformation

UPShasnotmadeanyrestatementsofinformationfromprioryears’reporting.

2022 | GRI

2-5Externalassurance

TheAuditCommitteeoftheBoardofDirectorshasengagedDeloitte&ToucheLLP,anindependent

thirdparty,toprovideassuranceonthisreport.

Deloitte&ToucheLLPwasengagedtoconductanexamination,inaccordancewithattestation

standardsestablishedbytheAmericanInstituteofCertifiedPublicAccountants(AICPA),toprovidea

reasonablelevelofassuranceonmanagement’sassertionovertheStatementofGreenhouseGas

EmissionsforScope1,2and3.Additionally,Deloitte&ToucheLLPwasengagedtoconductareview,in

accordancewithattestationstandardsestablishedbyAICPA,toprovidealimitedlevelofassuranceon

management’sassertionoverthedisclosuresinthe2022GRIContentIndex.Theassuranceperiodwas

fortheyearendedDecember31,2022.

SeeAppendixAandAppendixBattheendofthisreportforDeloitte&ToucheLLP'sassurancereports.

GRI 2: GENERAL DISCLOSURES: Activities and workers

2-6Activities,valuechainandotherbusinessrelationships

Nosignificantchangeshavetakenplacecomparedtothepreviousreportingperiod.

Totalnumberofoperations

Over2,400worldwideoperating

facilities

Quantityofproductsor

servicesprovided

6.2billionpackagesdelivered

Weofferabroadrangeofindustry-leadingproductsandservicesthroughourextensiveglobalpresence.

Ourservicesincludetransportationanddelivery,distribution,contractlogistics,oceanfreight,airfreight,

customsbrokerageandinsurance.

Oursupplychainpartnerstendtobeotherserviceproviders,ratherthanrawmaterialorfinishedgoods

suppliers.Supplychainpartnerscanbebroadlygroupedintothreecategories:

• ProductionSuppliersrepresentthemajorityofourtotalprocurementspending.Theyprovide

purchasedtransportationservicesandenergytooperateourgloballogisticsnetwork.Atthe

regionandcountrylevels,wecontractwithsuppliersoftransportationservices,suchasairlines,

truckingcompanies,railroadsandoceancarriers,aswellasfuelsuppliers.Wealsocontractwith

third-partyrepresentativesthatprovidedomesticdeliveryservicesincertaincountriesand

territories.

• CapacitySuppliersprovidetheequipmentandfacilitieswepurchaseorlease,andmaintain.This

portionofoursupplychainincludesanumberofsuppliersofstrategicassets,suchasjet

aircraft,majorfacilities,andalternativefueloradvancedtechnologyvehicles.Weworkwith

originalequipmentmanufacturerstodesignanddevelopourgroundandairfleetsinawaythat

seekstoreducetheirenvironmentalimpacts.

• SupportSuppliersprovidestandardizedproductsandservicesthatsupportourbusiness,suchas

marketing,advertising,humanresources,shippingmaterialsandotherprofessionalservices.

2022 | GRI

2-7Employees

SeeDisclosure401-1—Newemployeehiresandemployeeturnover,andDisclosure405-1—diversity

andequalopportunity.Therewerenosignificantvariationsinemployeesbygenderorregionwhen

comparedtolastyear.

UPSemployeesperformthemajorityofworkassociatedwithourorganization’sactivities.Wemaintain

alargeworkforce.Wealsoregularlyhirealargenumberofpart-timeandseasonalworkers.Employee

censusdata,reportedinheadcount,iscompiledinandextractedfrominternalsystemsandgathered

fromsubsidiaries.

TotalPermanentEmployeeBase

(asof9/30/2022)

Gender

Geography

Total

AbsoluteNumber Male Female U.S.

Outsidethe

U.S.

FullTime 223,684 44,216 208,441 59,614 268,055

PartTime 185,426 72,730 230,896 27,358 258,254

Subtotal 409,110 116,946 439,337 86,972 526,309

OtherEmployees

5,870 3,564 4,023 5,527 9,550

TotalPermanentEmployees 414,980 120,510 443,360 92,499 535,859

1

ThemajorityofUPSemployeesarenon-guaranteedhouremployees

Informationaboutgenderdoesnotinclude369employeeswhodonotself-identifyaseithermaleorfemale

IncludesEurope,APAC,AmericasandISMEA

Representsemployeesfromthefollowingbusinessunits:Coyote,Marken,Bomi,Roadie,Ware2GoandDeliverySolutions

TotalTemporaryEmployeeBase(asof9/30/2022)

Gender

Geography

Total

AbsoluteNumber Male Female U.S.

Outsidethe

U.S.

Temporary 2,408 2,023 3,611 2,490 6,101

Informationaboutgenderdoesnotinclude1,670employeeswhodonotself-identifyaseithermaleorfemale

2-8Workerswhoarenotemployees

Omitted:Dataoncontractors,agentsandthird-partyserviceprovidersisunavailableduetonotbeing

tracked.Wewillbereviewingwaystoaddressallrequirementsofthisdisclosureonayearlybasisaswe

definetheneedtocapturethisinformation.

2022 | GRI

GRI 2: GENERAL DISCLOSURES: Governance

2-9Governancestructureandcomposition

ThehighestgovernancebodyoftheCompanyistheBoardofDirectors(the"Board").Informationonthe

compositionoftheBoardispresentedintheNoticeof2023AnnualMeetingofShareownersandProxy

Statement➯forour2023annualmeetingofshareowners(the"ProxyStatement")➯underthe

captions"CorporateGovernance"and"OurBoardofDirectors."TheBoardhasfourcommittees

composedentirelyofindependentdirectorsasdefinedbytheNewYorkStockExchange(NYSE)andby

ourdirectorindependencestandards:theAuditCommittee,theCompensationandHumanCapital

Committee,theNominatingandCorporateGovernanceCommittee,andtheRiskCommittee.TheBoard

alsohasanExecutiveCommitteethatmayexerciseallofthepowersoftheBoardinthemanagementof

ourbusinessandaffairs,exceptforthosepowersexpresslyreservedtotheBoardunderDelawarelawor

otherwiselimitedbytheBoard.AdditionalinformationispresentedintheProxyStatement➯underthe

caption"CommitteesoftheBoardofDirectors."

OurwebsitealsoincludesdetailedinformationaboutothercorporategovernancemattersatUPS,

includingourpoliciesandprocesses.

2-10Nominationandselectionofthehighestgovernancebody

Eachdirectoriselectedannuallybytheshareownersforaone-yearterm.TheBoardhasdelegatedto

theNominatingandCorporateGovernanceCommitteetheresponsibilityforreviewingand

recommendingnomineesformembershipontheBoardandappointmentstoBoardcommittees,

includingevaluatingandmakingarecommendationtotheBoardastotheindependenceofalldirectors.

AdditionalinformationondirectornominationandselectionispresentedintheProxyStatement➯

underthecaption"SelectingDirectorNominees"andBoardbiographiesunderthecaption"OurBoard

ofDirectors."



2-11Chairofthehighestgovernancebody

TheBoardChairpositionisheldbyanindependentmemberoftheBoard.

AdditionalinformationonourboardleadershipstructureispresentedintheProxyStatement➯under

thecaption"BoardLeadershipStructure".



2-12Roleofthehighestgovernancebodyinoverseeingthemanagementofimpacts

UPSiscommittedtomaintainingrobustgovernancepracticesthatbenefitthelong-terminterestsofall

stakeholders.Weregularlyreviewandupdateourcorporategovernancepracticesinresponsetothe

evolvingneedsofourbusiness,shareownerandotherstakeholderfeedback,regulatorychangesand

othercorporatedevelopments.

TheBoard'soversightresponsibilitiesincludestrategicplanning,riskmanagement,successionplanning,

humancapitalmanagement,compliance,internalaudit,politicalengagementandfinancialreporting.

Thisincludesoversightofclimate-relatedmattersasapartoftheCompany’soverallbusinessstrategy.

2022 | GRI

TheBoardconsidersclimate-relatedrisksinnumerousways,includingthroughitsstandingcommittees.

TheBoard’sRiskCommittee,consistingentirelyofindependentdirectors,isresponsibleforoversightof

management’sidentificationandevaluationofenterpriserisks,includingtheCompany’sclimate-related

risks.Economic,environmentalandsocialsustainabilityrisks,andopportunitiesareconsideredaspart

ofourcomprehensiveenterpriseriskmanagementprogram.Underourenterpriseriskmanagement

process,risks,includingclimate-related,areidentified,prioritizedandassignedanowner,whois

responsiblefordevelopingmitigationplans.TheRiskCommitteereviewstheseitemson,atleast,an

annualbasis.

TheBoard’sNominatingandCorporateGovernanceCommittee,consistingentirelyofindependent

directors,hasadditionaloversightresponsibilityforclimate-relatedrisksandopportunities.The

committeereceivesregularupdatesanddiscussestheCompany’sprogresstowardsitssustainability-

relatedgoalsaswellastheassociatedrisksandopportunities,withfeedbackfromthesediscussions

sharedwiththefullBoard.

TheBoard’sAuditCommittee,consistingentirelyofindependentdirectors,isresponsibleforoverseeing

theannualengagementoftheindependentthirdpartythatprovidesassuranceontheCompany’s

annualsustainabilityreport.

ThefullBoardoverseesthedevelopmentoftheCompany’sclimate-relatedgoals.Additionally,the

BoardregularlyreviewstheCompany’srisks,opportunitiesandprogresswithrespecttoitsclimate-

relatedgoals.IncludedasapartofthesereviewsarereviewsoftheCompany’sannualsustainability

reportspriortopublication.

UPSprovidesBoardmemberswithvariousopportunitiestodevelopandenhancetheirknowledgeof

climate-relatedtopics.Forexample,UPSmaintainsadirectorengagementprogramwheredirectors

meetwithindividualELTmembers,visitcompanyoperations,participateinemployeeeventsand

receivein-depthsubjectmatterupdatesoutsideofregularboardmeetings.



2-13Delegationofresponsibilityformanagingimpacts

TheBoarddelegatesauthorityforday-to-daymanagementoftheCompanyanditsoperations,including

thoserelatedtoclimatematters,totheELT.TheBoardanditscommitteesregularlyreceiveupdates

frommanagementregardingtheeffectivenessofpoliciesandprocedures,progressregardingtargets,

risksandopportunities,globalcompliancestandardsandotherpriorityclimate-relatedtopics.

TheCompany'sChiefCorporateAffairsandSustainabilityOfficer(CCASO),whoisamemberoftheELT

andadirectreporttotheChiefExecutiveOfficer(CEO),isresponsibleforleadingclimate-related

discussionswiththeBoard.TheCCASOleadstheCompany’senvironmental-relatedefforts,community

relations,publicaffairs,communicationsandTheUPSFoundation.TheCCASOreportsquarterlytothe

NominatingandCorporateGovernanceCommitteeandannuallytothefullBoardonclimate-related

matters.

Additionally,effortstomonitor,assessandmanageclimate-relatedrisksaresupportedacrosstheELT.

Forexample,theChiefFinancialOfficer(CFO)co-chairstheCompany’sSustainabilityCouncilwiththe

CCASO.TheCCASOalsoservesontheCompany’sexecutiveofficerlevelriskcommittee,whichmeets

quarterlytoreviewtheCompany’senterpriseriskstrategy,includingclimate-relatedrisks.

MembersoftheCompany’ssustainabilitydepartmentleadandparticipateinnumeroussustainability

workinggroupsthroughouttheCompany.Theseeffortsarefocusedonmeasuringanddrivingprogress

towardUPS’ssustainabilitygoals,assessingandmanagingclimate-relatedrisksandopportunities,

furtheringenvironmentalinnovationandengagingwithstakeholders.

Theoutcomesfromtheseandothereffortsprovideamulti-layeredapproachfacilitatingUPSexecutives'

andtheBoard'sunderstandingofclimate-relatedtopicsandexecutionofplanstomanageimpacts.

2022 | GRI

2-14Roleofthehighestgovernancebodyinsustainabilityreporting

ThefullBoardoverseesthedevelopmentoftheCompany’sclimate-relatedgoals.Additionally,the

BoardregularlyreviewstheCompany’srisks,opportunitiesandprogresswithrespecttoitsclimate-

relatedgoals.TheUPSBoardalsoreviewsandprovidesfeedbackontheCompany’sannualsustainability

reportspriortopublication.

2-15Conflictofinterest

TheUPSCodeofBusinessConduct➯(the"Code")andourRelatedPersonsTransactionPolicy➯,which

areavailableonourinvestorrelationswebsite,setoutourprocessesandpoliciesforavoidingor

managingconflictsofinterest.

OurAuditCommitteeisresponsibleforoverseeingtheCode.TheCoderequiresemployeesand

directorstoavoidconflictsofinterest,definedassituationswheretheperson’sprivateinterestsconflict,

ormayappeartoconflict,withtheinterestsofUPS.

Wealsomaintainarelatedpersontransactionspolicythatappliestoanytransactionorseriesof

transactionsinwhich:(1)theCompanyoranyofitssubsidiariesisaparticipant;(2)any“related

person”(asdefinedtherein)hasorwillhaveamaterialdirectorindirectinterest;and(3)theaggregate

amountinvolvedsincethebeginningoftheCompany’slastcompletedfiscalyearwillexceedormay

reasonablybeexpectedtoexceed$100,000.

Thepolicyprovidesthatrelatedpersontransactionsthatmayariseduringtheyeararesubjecttothe

AuditCommittee’sreasonablepriorapproval.Indeterminingwhethertoapproveorratifyatransaction,

theAuditCommitteewillconsider,amongotherfactorsitdeemsappropriate,whetherthetransaction

isontermsnolessfavorablethantermsgenerallyavailabletoanunaffiliatedthirdpartyunderthesame

orsimilarcircumstance,theextentoftherelatedperson’sinterestinthetransaction,whetherthe

transactionwouldimpairindependenceofanon-employeedirectorandwhetherthereisabusiness

reasonfortheCompanytoenterintothetransaction.TheCompanydidnotengageinanyrelated

persontransactionsin2022thatrequiredisclosure.

Atleastannually,eachdirectorandexecutiveofficercompletesaquestionnaireinwhichtheyare

requiredtodiscloseanybusinessrelationshipsthatmaygiverisetoaconflictofinterest,including

transactionswheretheCompanyisinvolvedandwhereanexecutiveofficer,adirectororarelated

personhasadirectorindirectmaterialinterest.WealsoreviewtheCompany’sfinancialsystemsand

anyidentifiedrelatedpartytransactionsarereviewedforpotentialconflictsofinterest.TheNominating

andCorporateGovernanceCommitteereviewsasummaryofthisinformationandmakes

recommendationstotheBoardregardingeachBoardmember’sindependence.

2-16Communicationofcriticalconcerns

TheBoarddelegatesauthorityforday-to-daymanagementoftheCompanyanditsoperations,including

thoserelatedtoclimatematters,totheELT.TheBoardanditscommitteesregularlyreceiveupdates

frommanagementregardingtheeffectivenessofpolicies,procedures,progressregardingtargets,risks

andopportunities,globalcompliancestandardsandotherpriorityclimate-relatedtopics.

In2022,nomattersidentifiedascriticalconcernsarose.



2022 | GRI

2-17Collectiveknowledgeofthehighestgovernancebody

Boardmembersundertakeanumberofeffortstoenhancetheirknowledgeofclimate-relatedtopics.

Forexample:

• WemaintainaformaldirectorengagementprograminwhichdirectorsmeetwithindividualELT

members,visitcompanyoperations,participateinemployeeeventsandreceivein-depth

subjectmatterupdatesoutsideofregularboardmeetingsonaquarterlybasis.These

engagementsencouragetheongoingexchangeofideasandinformationbetweendirectorsand

managementandfacilitatetheBoard’soversight,includingwithrespecttoenvironmental,social

andgovernance(ESG)topics.

• TheBoardanditsCommitteesreceiveregularreportsfromourCCASO,CFOandChiefHuman

ResourcesOfficerandChiefDiversity,Equity&InclusionOfficer(CHRO/CDEIO)regarding

environmentalandsocialtopics.

• TheBoard’sresponsibilitiesincludestrategicoversight.Thisincludesoversightofclimate-related

mattersasapartoftheCompany’soverallbusinessstrategy.Theexecutionoftheresponsibility

includesreviewingmaterialandholdingdiscussionsthatadvanceunderstanding,skillsand

experiencerelatedtosustainability.

• Additionally,knowledgeisadvancedwiththeBoard'sreviewofUPS'ssustainabilityreportseach

yearandtheAuditCommittee'soversightandapprovaltosecurethird-partyassuranceforthe

Company'ssustainabilityreports.

2-18Evaluationoftheperformanceofthehighestgovernancebody

TheBoardemploysbothanongoinginformalandaformalannualprocesstoevaluateitsperformance

andthecontributionsofindividualdirectorstothesuccessfulexecutionoftheBoard’sobligations.The

BoardChairconsiderstheperformanceoftheBoardandtheBoard’sCommitteesandhasinformal

discussionsaboutindividualdirectorcontributionstotheBoard.TheBoardChairsharesfeedbackfrom

thesediscussionswiththefullBoardandwithindividualBoardmembers.Inaddition,during2022,the

BoardChairmetindividuallywitheachdirectortodiscussoverallBoardeffectivenessandperformance

andpotential2023Boardagendaitems.

Foradditionalinformation,pleaseseetheProxyStatement➯underthecaption"BoardandCommittee

Evaluations".

2-19Remunerationpolicies

UPSofferscompetitivehourlywages,salariesandtotalcompensationplanstobothfull-timeandpart-

timeemployees.Weprovideourunion-representedemployeeswithindustry-leadingpayandbenefits.

UPSpoliciesprovideforequalremunerationirrespectiveofgenderandcomplywithallapplicablelaws

andregulations.

UPS’sexecutivecompensationprogramsaredesignedto:driveorganizationalperformancebytyinga

significantportionofpaytocompanyperformance;attract,retainandmotivatebycompetitivelyand

fairlycompensatingourexecutiveofficers;encouragelong-termstockownershipandcareerswithUPS;

andaligntheinterestsofourexecutivestolong-termvaluecreation.Executivecompensationpolicies

andprogramsaredescribedinthesectionoftheProxyStatement➯captioned"Executive

Compensation."

2022 | GRI

2-20Processtodetermineremuneration

TheCompensationandHumanCapitalCommittee,consistingentirelyofindependentdirectors,is

responsibleforsettingtheprinciplesthatguidecompensationdecision-making,establishingthe

performancegoalsunderourexecutivecompensationplansandprograms,andapprovingcompensation

fortheexecutiveofficers.Thecommitteeisalsoresponsibleforoverseeingperformanceandtalent

management,diversity,equityandinclusion,workculture,andemployeedevelopmentandretention.

Theprimaryprocessforsettingcompensationlevelsforournon-managementemployeesiscontract

negotiationsviacollectivebargaining.Morethan70%ofourU.S.employeesarerepresentedbyunions,

primarilythoseemployeeshandlingortransportingpackages.Inaddition,approximately3,400ofour

pilotsarerepresentedbytheIndependentPilotsAssociation.

Feedbackfromstakeholderengagementistakenintoaccountinsettingandstructuringcompensation.

TheCompensationandHumanCapitalCommitteeconductsareviewofdirectorcompensationgenerally

everyyeartoverifytheprogramstructureisconsistentwithbestpracticesandcurrenttrends.The

CompensationandHumanCapitalCommitteeengagesanindependentcompensationconsultantto

provideadviceonthecompetitivenessofUPS’snon-employeedirectorcompensationprogramand

recommendschangestokeeptheprogrammarketcompetitive.

Weprovideshareownerstheopportunitytovoteannually,onanadvisorybasis,onthecompensationof

ournamedexecutiveofficers,asdescribedintheProxyStatement➯underthecaption"Compensation

DiscussionandAnalysissection"and"AdvisoryVotetoApproveNamedExecutiveOfficer

Compensation."

2-21Annualtotalcompensationratio

SeeourProxyStatementunderthecaption"MedianEmployeetoCEOPayRatio."

Omitted:Theratioofthepercentageincreaseinannualtotalcompensationofthehighest-paidindividualtothe

medianpercentageincreaseinannualtotalcompensationforallemployeesiscurrentlyunavailable.Wewillbe

reviewingwaystoaddressallrequirementsofthisdisclosureonayearlybasisaswedefinetheneedtocapturethis

information.

GRI 2: GENERAL DISCLOSURES: Strategy, policies and

practices

2-22Statementonsustainabledevelopmentstrategy

Asaninnovation-drivencompanyguidedbyastrongpurpose,ourculturecentersaroundthevalues

establishedbyourfounderJimCasey.Hebelievedthatweshouldgivebacktothecommunitieswe

serveandthatwehavearesponsibilitytoallstakeholdersforsocialandenvironmentalstewardship.We

approachsustainabledevelopmentholisticallytoensureourcross-functionalsustainabilityinitiatives

alignwithourCustomerFirst,PeopleLed,InnovationDrivenstrategy.Theexecutionofourstrategywill

helpusreachourgoalsofcarbonneutralityby2050andimprovingthewell-beingofonebillionlivesby

2040.Wehaveanactionplantogetusthere,andwearecommittedtopursuingplanet-friendly

solutionsthatenableustocontinuetotakecareofouremployeesandserveourcustomers,

stakeholdersandcommunitieswithoutcompromisingtheabilityoffuturegenerationstomeettheir

ownneeds.

ForthefulllengthCEOletter,seeourProxyStatement➯

2022 | GRI

2-23Policycommitments

Corporateresponsibilityisfundamentaltodeliveringonourpurpose.SeeOurCompany/Governanceon

About.UPS.com➯forUPSpoliciesthathelpguideourcommitmenttoethical,sustainablebusiness.

2-24Embeddingpolicycommitments

TheUPSCodeofBusinessConduct➯setsoutthebehaviorweexpectfromouremployees,suppliers,

consultantsandthird-partyrepresentatives.TheCodeisbuiltonhonestyandintegrity.TheCodeis

availablein22languagessothatouremployees,agents,andthird-partyrepresentativesinother

countriesandterritoriescanfullyunderstandourguidingprinciples.Ourpolicyistocomplywithall

applicablelaws,rulesandregulationsinthemorethan220countriesandterritorieswhereweoperate.

TheCodeincludespoliciesandproceduresthatprohibitUPSemployees,andothersactingonour

behalf,fromengaginginanyunlawfulactivities.

UPSsupportstheprotectionofbasichumanrightsthroughoutitsworldwideoperationsandis

committedtoasafeworkenvironmentthatisfreeofthreats,intimidationandphysicalharm.Wedonot

discriminateagainstanyapplicantforemploymentoranyemployeeinanyaspectoftheiremployment

atUPSbecauseofage,race,religion,sex,disability,sexualorientation,genderidentity,militarystatus,

pregnancy,nationalorigin,veteranstatus,otherlegallyprotectedcharacteristicorbasis,oranyunlawful

means.

Wepromoteunderstandingofourpoliciesbyemployeeswithrefresherandjob-specificcourseson

complianceandethicsusingarisk-basedapproachtoidentifythemostappropriateaudiences.

Employeesmustattesttothespecificpolicy(s)thatiscoveredinthetraining.Ourcurrentcompliance

andethicstrainingsinclude:

• Anti-Corruption/Anti-BriberyCompliance

• Third-PartyAnti-CorruptionCompliance

• Third-PartyDueDiligenceTraining

• Antitrust/CompetitionLawCompliance

• InformationSecurityandPrivacy

• InsiderTradingCompliance

• ConflictsofInterestCompliance

• FraudPrevention

• RecordsandInformationManagement

• Anti-Harassment

• Gifts,HospitalityandEntertainment

• RegulatedGoods/CustomerCompliance

• DangerousGoodsSalesTraining

• LobbyingDisclosureTraining

2022 | GRI

2-25Processestoremediatenegativeimpacts

SeetheUPSCodeofBusinessConduct➯,"ReportingConcerns,AskingQuestionsandVoicing

Opinions."

Throughoutitsglobaloperations,theCompanyworkswithmanyotherunions,associations,andwork

councilswherewehavecollectives.OurU.S.agreementshavespecificprovisionsregardingthemethods

forresolvinggrievances.Theseprovisionsmandateperiodicmeetingsofunionandcompany

representatives,withescalationtothenextlevelifthepartiescannotagreeonaresolution.

2-26Mechanismsforseekingadviceandraisingconcerns

SeeDisclosure205–Anti-CorruptionManagementApproach.

2-27Compliancewithlawsandregulations

SeeDisclosure205—Anti-CorruptionManagementApproach.

UPShadnosignificantinstancesofnon-compliancewithlawsandregulationsduringthereporting

period.

Weareinvolvedinanumberofjudicialproceedingsandothermattersarisingfromtheconductofour

business.Althoughtherecanbenoassuranceastotheultimateoutcome,wehavegenerallydenied,or

believewehavemeritoriousdefensesandwilldeny,liabilityinallpendingmatters,includingthe

mattersdescribedinNote10ofourAnnualReportonForm10-K+,andweintendtovigorouslydefend

eachmatter.Weaccrueamountsassociatedwithlegalproceedingswhenandtotheextentaloss

becomesprobableandcanbereasonablyestimated.Theactualcostsofresolvinglegalproceedingsmay

besubstantiallyhigherorlowerthantheamountsaccruedonthoseclaims.

Formattersastowhichwearenotabletoestimateapossiblelossorrangeoflosses,wearenotableto

determinewhetheranysuchlosswillhaveamaterialimpactonouroperationsorfinancialcondition.

Forthesematters,wehavedescribedthereasonsthatweareunabletoestimateapossiblelossor

rangeoflossesinourAnnualReportonForm10-K(Note10)+.

2-28Membershipassociations

Thisisnotacomprehensivelist,butalistofassociationswhereUPSplaysasignificantrole:

• AmericanTruckersAssociations:leveragesthestrengthandsizeoftheirmembershipinorderto

develop,advocate,andadvanceinnovativeresearch-basedpoliciesthatpromotehighway

safety,security,environmentalsustainabilityandprofitability.

• TheNorthAmericanCouncilforFreightEfficiency:anassociationcommittedtodoublingthe

efficiencyofNorthAmericangoodsmovement.

• ZemoPartnership:apublic-privateorganizationwiththemissionofacceleratingtheshifttolow-

carbonroadfuelsandtechnologies.

• AirlinesforAmerica:advocatesandformspartnershipsforairlinesafety,jobcreation,

infrastructuremodernizationandenvironmentalresponsibility.

• SustainableAviationBuyersAlliance:workstoacceleratethepathtocarbon-neutralair

transportbydrivinginvestmentinsustainableaviationfuel(SAF),catalyzingSAFproductionand

technologicalinnovation,andsupportingmemberengagementinpolicymakingefforts.

2022 | GRI

• TruckersAgainstTrafficking(TAT):anorganizationwiththeaimtoeducate,equip,empower,

andmobilizemembersofthetrucking,busandenergyindustriestocombathumantrafficking.

• TheUnitedNationsGlobalLGBTIStandardsofConductforBusiness:helpsdevelopgreater

equalityforlesbian,gay,bi,transandintersexpeoplethroughoutourglobaloperations.

GRI 2: GENERAL DISCLOSURES: Stakeholder Engagement

2-29Approachtostakeholderengagement

Weconsiderstakeholderengagementanessentialaspectofourcorporategovernance.Maintaining

openandhonestdialoguewithourstakeholdersisanimportantcomponentofourcorporateculture.As

acomponentofthisengagement,weregularlyengagewithabroadrangeofstakeholdergroups

throughourpublicaffairsexternalfacingteamsandothers.Wealsorespondtoincoming

correspondencefromvariousstakeholdergroupsandconsultwithseniorUPSleadershipandoutside

firmstoidentifynewstakeholdergroupsthatareoutsideofourregularengagementeffortsresulting

fromourpublicaffairsandcommunityrelationsprograms.

Forexample,eachyearweundertakeanEnvironmental,SocialandGovernance(“ESG”)stakeholder

assessmentinwhichwediscussprogressonourESGjourney.Wealsoareregularlyenhancingexisting

andevaluatingnewengagementprogramsalignedtoourgoals.Inrecognitionofthepowerofourlarge

workforcetoinfluencepositiveESGactionsbothinsideandoutsideUPS,in2021welaunchedtheUPS

SustainabilityTrailblazersemployeeengagementprogram.Thisisanemployee-ledprogramspanningall

functionsoftheCompany,aimingtoaddressESGmattersatUPSandinthecommunitiesweserve.In

2022,weexpandedtheprogramtoourinternationalbusinessbylaunchingchaptersinEuropeandthe

MiddleEast,withnewprogramsinotherregionslaunchingsoon.Wealsoinvestedintheprogram

throughsoftwarethatimprovestheemployeeESGexperienceandprovidesgreateraccesstoESG

relatededucationalmaterials.

Belowaresomeoftheprimaryengagementmechanismsenabledacrossourmajorstakeholdergroups.

• Communities:TheUPSFoundation,employeevolunteerprogram,humanitarianreliefand

resilienceactivities

• Customers:periodicbusinessreviewsandregularmeetings,marketresearch,UPS.com,social

media,UPS-sponsoredevents,UPSdrivers,employees

• Employees:UPSCultureSurvey,businessresourcegroups,dailypreworkcommunications

meetings,healthandsafetycommittees,UPSers.com,socialmedia,unionrepresentatives,joint

labor-managementcommittees,townhallmeetings,theUPSSustainabilityTrailblazers

employeeengagementprogram

• Governments:globaladvocacyandrelationshipbuilding,multifacetedthoughtleadership

strategy,facilityvisitsandtargetedoutreach,collaborativepartnerships

• Influencers:regularandproactivedialogue,topic-specificconferencesandevents

• Investors:investorconferences,quarterlyearningscommunications,annualshareholder

meeting,AnnualReportonForm10-K+,QuarterlyReportonForm10-Q,ProxyStatement➯,

pressreleases,one-on-oneandsmallgroupmeetings,ratingsandrankings,investorwebsite

2022 | GRI

• UPSRetirees:UPSers.com,virtualandin-personevents

• Suppliers:topsuppliermeetings,supplierdiversitystrategy(includingconferences,events,

training,etc.),researchanddevelopmentofalternativevehicletechnologies,one-on-one

meetingswithsuppliers,includingassessmentsandreviews,developmentofasustainability

bestpracticesplatformforoutsideserviceproviders,innovationworkshopsandcoachingfor

diverse-ownedSMBstoenablegreateraccesstogrowthopportunities

2-30Collectivebargainingagreements

Morethan70%ofourU.S.employeesarerepresentedbyunions,primarilythoseemployeeshandlingor

transportingpackages.Inaddition,approximately3,400ofourpilotsarerepresentedbythe

IndependentPilotsAssociation.

SeeManagementofMaterialTopicsinsections401-Employmentand404-OccupationalHealthand

Safetyforadditionalinformationonunionandnon-unionemployees.

GRI 3: MATERIAL TOPICS: Process to determine material

topics

3-1Processtodeterminematerialtopics

UPSconductsglobalassessmentstodeterminematerialtopics

.Ouranalysisincludes,amongother

things:

• Evaluationofsustainabilityframeworksandstandards,ratingsandrankingsassessments,in

additiontogeneralandindustryspecificexternalresearchreports

• InterviewingmembersofourELT,whohavedirectresponsibilityforexecutingallcompany

strategy

• InterviewingseniorUPSmanagersaroundtheworldtobetterunderstandtheirpointsofview

onissuesrelevanttotheirrespectiveregions

• Gatheringfeedbackfromcustomers,regulatorsandothergovernmentagencies,

nongovernmentalorganizations(NGOs),includingsocialandenvironmentalactivists,academics,

andinvestors

WeevaluatedalistoftopicsfromtheGRIframeworkandexaminedtheseissuesindepth,including

areaswithactualandpotential,negativeandpositiveimpact,aswellasbroadersustainabilitytrends.

Eachissue’srelativeimportancewasevaluatedbasedonanassessmentoffeedbackandwasconsidered

indeterminingfinalreportcontent.

TheprimaryresultofthisassessmentwastodetermineESGissuesofimportancetoUPS.Indicator3-2

liststhetopicsaddressedwithinthisreport.

IntheGRI,materialityreferstoaspectsthatreflecttheorganization’ssignificanteconomic,environmental,andsocialimpacts;

orsubstantivelyinfluencetheassessmentsanddecisionsofstakeholders.Inatraditionalsecuritieslawcontext,amatteris

"material"ifthereisasubstantiallikelihoodthatareasonablepersonwouldconsideritimportant;themagnitudeoftheitemis

suchthatitisprobablethatthejudgmentofareasonablepersonrelyinguponthereportwouldhavebeenchangedor

influencedbytheinclusionorcorrectionoftheitem.

2022 | GRI

3-2Listallthematerialtopicsidentifiedintheprocessfordefiningreportcontent

ESGPriorityTopicsContent

ESGPriorityTopics

UNSustainable

DevelopmentGoals

Alignment

CorrespondingGRITopic-SpecificStandard

Governance,Ethicsand

Compliance

12,16

205-Anti-Corruption,206-Anti-Competitive

Behavior

GreenhouseGasEmissionsand

EnergyUse

3,7,8,9,11,12,13,

14,15

302-Energy,305-Emissions

EmployeeHealth,Safetyand

Wellness

3,8

401-Employment,403-OccupationalHealth

andSafety

EmployeeTrainingand

Development

4,5,8

404-TrainingandEducation

EmployeeDiversityand

Inclusion

5,8

405-DiversityandEqualOpportunity

DataPrivacyandCybersecurity 16 418-CustomerPrivacy

CommunityImpactof

Operations

ThisissuearoseduringtheESGmateriality

processbutdoesnotmapdirectlytoaGRI

Topic-SpecificStandard.

However,seeourSocialImpactReport➯for

additionalinformation.

ResilienceandAdaptation

1,2,3,5,7,8,9,10,

11,17

ThisissuearoseduringtheESGmateriality

processbutdoesnotmapdirectlytoaGRI

Topic-SpecificStandard.

SocietalBenefitsofBusiness

Activities

all

ThisissuearoseduringtheESGmateriality

processbutdoesnotmapdirectlytoaGRI

Topic-SpecificStandard.

SustainableCustomerSolutions 7,11,13

ThisissuearoseduringtheESGmateriality

processbutdoesnotmapdirectlytoaGRI

Topic-SpecificStandard.

However,seeourSustainableServices➯page

foradditionalinformation



2022 | GRI

3-3Managementofmaterialtopics

CommunityImpactofOperations

Today,morethanhalfoftheworld’spopulationlivesincities,withtheshareofurbandwellersexpected

toincreasefurtheroverthecomingdecades.Thisgrowthcontributestothechallengesofemissions

pollutionandcongestion,causednotonlybytheincreasingnumberofresidentsbutalsobye-

commerceactivityandevolvingbusinessmodelslikeride-sharing.UPScontinuestocollaboratewith

variouscitypartnersandotherstakeholderstodevelopandtestinnovativedeliverysolutionsindense

urbanareas.Theseincludeelectricvehiclesandarangeofbicycle-andtricycle-baseddeliverysolutions,

allofwhichoperatewithzeroemissions.Wehavefoundthatpedal-poweredvehiclesarewell-suitedfor

makingmultipledeliveriesindenseurbanareasastheyaremoremaneuverablethanpackagecarsand

mayaccessroutesthatothervehiclescannot,suchasbicyclelanesandnarrowcitystreets.

ResilienceandAdaptation

ThroughtheEnterpriseRiskManagementprocess,UPSreviewsmultiplepotentialclimate-relatedrisks

andopportunities.UPSprioritizesrisksintooneoftworisklevelclassifications,Tier1orTier2.To

determineTier1andTier2status,weuseariskassessmentmatrixandheatmap.Climate-relatedrisk

andopportunitiesareevaluatedbasedontheimpacttoOurMission/Brand,aswellastheimpacttoour

FinancialandOperationalperformance.Thethreespecificelementsareratedona1-5scale.Theresults

oftheriskassessmentarethenplottedonaheatmaptodeterminetierstatus.Risksandopportunities

thatrequireBoardawarenessandthatmaybematerialandinherentlyhighrisktotheorganizationare

definedasTier1risks.Tier2risksaredefinedaspotentiallysignificant,emergingandapproaching

materiallimits.

SocietalBenefitsofBusinessActivities

TheUPSFoundation(TUPSF)utilizesthecompany’sglobalnetworktodelivertargetedsupportto

marginalized,underservedandremotecommunitiesglobally.Theseeffortsareorganizedaround

buildingmoreeffectivepublic-privatepartnershipstoenhancecommunitydisasterriskreductionand

preparednessefforts,bysupportingurgentresponseandspeedingpost-crisisrecovery.Everyyear,

globalcrisescanresultindevastatinghumansufferingthatdemandscoordinated,swiftreliefefforts.

Thesecrisescandisruptbusinesses,destroyinfrastructureandbringcommercetoahalt.

Inadditiontoaddressinghealthandhumanitariancrises,TUPSFworkstoadvanceequityandeconomic

empowermentefforts.Weaddresssystemiceducationalandeconomicbarriersbycreating

opportunitiesforunderservedandunderrepresentedwomen,youthandmarginalizedcommunities.

TheWomenExportersProgram(WEP)helpswomenentrepreneursaroundtheworldtotradeacross

borders,overcomechallengesandforgenewfuturesbyprovidingaccesstoglobalmarkets.Through

partnershipswithorganizationssuchasInternationalTradeCentre(ITC)SheTrades,wehelpto

strengthenwomenentrepreneurs’exportskills,providebusinessopportunitiesthatimprovetheir

technicalcompetitivenessandfosteraninclusivebusinessecosystem.

2022 | GRI

SustainableCustomerSolutions

Weofferourcustomerssustainablesolutionstohelpminimizetheenvironmentalimpactsassociated

withtheirsupplychains.

• Analysis-OurCarbonImpactAnalysissolutionusesadashboardthatallowscustomerstoview

theiremissionsdatainmultipleways,suchasbymode,servicelevelorbusinessunit.Basedona

customer’semissions,weofferoptimizationtechniquesthatimproveefficiencyandreduce

impact.

• Shipping-UPScarbonneutralshippingisaneasy,cost-effectivewaytooffsetGHGemissions

fromshipmentsofanysize.WithourUPSSmartPickup™service,customerscanschedulea

pickuponlywhenneeded,avoidingunnecessarytripsandemissions.

• Receiving-UPSMyChoice®servicesenablecustomerstoadjustdeliverytimesorlocations,

whileUPSAccessPoint™locationsenablepackagepickupfromacentralizedlocation.These

solutionsenhancecustomerconvenienceandhelpavoidunnecessarytrips,milesandemissions.

• Returning-Wesimplifyreturnswithturnkeypackaging,preprintedlabelsandconvenientdrop-

offlocations.UPSReturns™Managerallowscustomerstoprintreturnlabelsdirectlyfromthe

UPStrackingresultspageandprovidesmerchantswithonlinemanagementandvisibilityof

returns.UPS’sreverselogisticssolutionsalsohelpcustomersreclaimandrefurbishproductsto

beusedagain.

AdditionaldiscussiononthemanagementofmaterialtopicsisprovidedintheTopic-SpecificStandards

sectionofthisreport.

TOPIC-SPECIFIC STANDARDS

TOPIC-SPECIFIC STANDARDS: 205 Anti-Corruption

205(3-3)Managementofmaterialtopics

TheUPSCodeofBusinessConduct➯(Code)setsoutthebehaviorweexpectfromouremployees,the

processesavailabletothemforraisingconcernsaboutethicalconductandthechannelsweuseto

respond.

Ourpolicyistocomplywithallapplicablelaws,rules,andregulationsinthemorethan220countries

andterritorieswhereweoperate.TheCodeincludespoliciesandproceduresthatprohibitUPS

employees,andothersactingonourbehalf,fromengaginginanti-competitivebehaviororanyunlawful

activities.TheseactivitiesincludeviolationsoftheU.S.ForeignCorruptPracticesAct,theU.K.Bribery

Actandotherapplicableanti-briberylaws,rulesandregulations.

Wepromoteunderstandingoftheseregulationswithrefreshercoursesandjob-specificcourseson

complianceandethicsforemployees,usingarisk-basedapproachtoidentifythemostappropriate

audiences.Anti-corruptiontrainingisrequiredforallmanagementandallemployeesininternational

FinanceandAccountingorBrokeragewhomayinteractwithgovernmentofficials.

WemanageaThird-PartyDueDiligenceprogramformorethan1,500vendorsthatinteractwithour

customersorgovernmentagencies,whichincludesapre-engagementscreeningofthesevendors,a

commitmenttoadheretotheCode➯aswellasanannualrecertificationofthevendorrelationship

basedoncontinuouscompliancemonitoring.

2022 | GRI

Weencourageemployeestoraiseconcernsaboutcompliance,ethicsorbusinessconductwiththeir

directsupervisorsorhumanresourcesrepresentatives.Employeesandbusinesspartnersmayalso

submitareporttotheUPSEthicsHotlineonlineorbyphone.Bothchannelsaremonitoredbyan

independentserviceproviderandareavailable24-hoursaday,sevendaysaweek.Reportsmaybe

anonymous,andtranslatorsareavailabletoassistwhenneeded.

Ourcommitmenttointegrityincludesaresponsibilitytofosteranenvironmentthatallowsourpeopleto

reportconcernsaboutourlegalandethicalobligationswithoutfearofretaliationand/orretribution.We

investigatethesecasesandtakecorrectiveanddisciplinaryactionuptoandincludingdismissalwhere

appropriate.

Wefollowamulti-layeredprocessdesignedtofurthercompliancethroughoutourbusiness.Ourglobal

complianceteamfacilitatesthisprocessforemployeesaroundtheworld.

WealsouseanannualBusinessComplianceandEthicsQuestionnairetosurveyourmanagementteam

toidentifyevents,situationsorrelationshipsthatcouldposeethicalorlegalrisks.

Inadditiontotraining,weconductsystematicriskassessmentsofUPSsites,auditingforevidenceof

fraud,corruptionandotherprocessrisks.Aspartofthisprocess,wereviewsignificantchangesinaUPS

businessentityoritsregulatoryenvironmentthatcouldbeconsideredtoincreasetheriskofunethical

practicesorinadequatecontrols.

Theinformationwegeneratethroughtheseactivitiesisprovidedtoourseniormanagement,including

theELT,forreviewandresponse.Wealsoregularlysharetheresultsofourcompliance,ethicsand

businessconductactivitieswiththeBoardofDirectors,includingthroughtheBoard'sRiskandAudit

committees.

205-1Operationsassessedforrisksrelatedtocorruption

UPSconductednumerousAnti-CorruptionandFraudRiskAssessmentsofourbusinessunitsin2022and

usedcorruption-relatedmetricstoprioritizeauditactivity.In2022,weconducted83auditsthat

includedcorruptiontesting,and13corruption-specificaudits.Theseauditsincludedbusinesseswith

whichwehavebothdirectandthird-partyrelationships.

Omitted:UPSconductsanumberofcorruption-relatedauditsbutdoesnotreportonthepercentageor

significantrisksduetoconfidentiality.

205-2Communicationandtrainingaboutanti-corruptionpoliciesandprocedures

TheCode➯prohibitsemployees,andothersactingonourbehalf,fromengaginginanti-corruption

behaviororanyunlawfulactivities.TheseactivitiesincludeviolationsoftheU.S.ForeignCorrupt

PracticesAct,theU.K.BriberyActandotherapplicableanti-briberylaws,rulesandregulations.

UPShasarobustanti-corruptioncommunicationandtrainingprocess.Morethan56,000UPSemployees

areeligibletoreceiveanti-corruptiontraining,includingallfull-timemanagers,supervisorsand

specialists,allemployeesofInternationalFinanceandAccountingorBrokerage,andallnon-

managementemployeeswhomayinteractwithnon-U.S.governmentemployees.AsofDecember2022,

89%ofeligibleemployeeshadcompletedthistraining.

UPSalsoreviewsthird-partyprovidersworldwideviaanannualThird-PartyDueDiligenceprocessand

ongoingaudits,aswellasmonitoringtheircompliancewithourethicalstandards.

Omitted:Duetoconfidentialityandcompetitivereasons,UPSdoesnotdisclosethenumberorpercentageof

businesspartnersthattheanti-corruptionpolicieshavebeencommunicatedtointotalorbybusinesspartnertype

orregion.

2022 | GRI

205-3Confirmedincidentsofcorruptionandactionstaken

Wearenotawareofanyconsequentialincidentsofcorruptionin2022.

TOPIC-SPECIFIC STANDARDS: 206 Anti-Competitive

Behavior

206(3-3)Managementofmaterialtopics

SeeDisclosure205—Anti-CorruptionManagementofMaterialTopics

206-1LegalActionsforanti-competitivebehavior,anti-trustandmonopolypractices

Weareinvolvedinanumberofjudicialproceedingsandothermattersarisingfromtheconductofour

business.Althoughtherecanbenoassuranceastotheultimateoutcome,wehavegenerallydenied,or

believewehavemeritoriousdefensesandwilldeny,liabilityinallpendingmatters,includingthe

mattersdescribedinour2022AnnualReportonForm10-K+,andweintendtovigorouslydefendeach

matter.

Detailsrelatedtoanysignificantlitigationandenforcementmattersrelatedtocompetitionlaware

disclosedinour2022AnnualReportonForm10-K+,Note10—LegalProceedingsandContingencies.

TOPIC-SPECIFIC STANDARDS: 302 Energy

302(3-3)Managementofmaterialtopics

UPSsupportsglobaleffortstomitigatetheimpactofclimatechangeandcontributestopublic

discussionsaboutenvironmentalsustainability.Thisincludescollaboratingwithleadingnon-

governmentalorganizations(NGOs)andregulators.Wealsoparticipateinpublicpolicyforums,where

weadvocateforprudentinnovationandinvestmentinnewtechnologiesandinfrastructure

development.Weareguidedbyaclearpurposetomoveourworldforwardbydeliveringwhatmatters

throughourCustomerFirst,PeopleLed,InnovationDrivenstrategy.

Ourguidingprinciplesare:

• Leadwithintegrity,

• Executeaholisticvisionofsustainability,

• Deliverimpactnotjustpromises,

• De-linkvolumegrowthfromthatofGHGemissions,and

• Takeafiscallyresponsibleapproachbasedonsoundengineeringprinciples.

InkeepingwithourpurposeandmindfuloftheESGissuesthatmattermosttoourstakeholders,we

announcedambitioussustainabilitygoals,includingagoalofcarbonneutralityacrossScope1,2and3

emissionsby2050.

2022 | GRI

RoadmaptoCarbonNeutralityby2050

Wesetagoaltoachievecarbonneutralityby2050acrossScope1,2,and3emissions(asmeasuredin

eandusingmarket-basedScope2emissions).Ourtargetsarebasedonsoundengineering

principles.Wedonotcurrentlybelievethat,basedonsuchprinciples,scalablesolutionsforaircraftexist

atthistimethatwouldallowfortheachievementofascience-basedtargetby2030or2035,asrequired

bytheScience-BasedTargetsinitiative(SBTi).

Settinggoalsalonedoesnotdefineourstrategy.Rather,aroadmapisnecessarytoshowstakeholders

howweintendtoachievethesegoals.Weintendtohave40%alternativefuelusedinourground

operationsand25%renewableelectricitypoweringourfacilitiesby2025.By2035,weintendtouse30%

sustainableaviationfuel(SAF),achievea50%reductioninCO

eperpackagedeliveredforourglobal

smallpackageoperations(froma2020baseline),anduse100%renewableelectricitytopowerour

facilities.

UPSEnvironmentalSustainabilityGoalsDefined:

40%alternativefuelusedinourgroundoperationsby2025

Fuelingroundoperationsisdefinedasallfuelusedinon-roadandoff-roadvehiclesformobileground

operations.Thisincludesourtractor-trailers(“feeders”),packagecars,groundsupportequipmentfor

loading/unloadingaircraft,forkliftsinourfacilitiesandshiftersformovingtrailers.Alternativefuelsare

anyfuelsotherthanconventionalgasolineanddiesel,suchascompressednaturalgas(CNG),liquified

naturalgas(LNG),propane,bio-diesel,renewablediesel,ethanolandrenewablenaturalgas(RNG).

25%renewableelectricitypoweringourfacilitiesby2025

Renewableelectricityincludeswindandsolarrenewableelectricityoutsideofelectricitycurrently

providedonthegridfromrenewablesources.Thisenergymaybesourcedfromon-sitesolarprojectsor

theprocurementofrenewableelectricitythroughpowerpurchasingagreements(PPAs)andother

financialmethods.

30%SAFinourairnetworkby2035

Wearecommittedtosourcing30%ofouraviationfuelfromsustainablesourcesby2035.SAFisa

biofuelusedtopoweraircraftandhassimilarpropertiestoconventionaljetfuelbutwithalessercarbon

footprint.CurrentSAFavailabilityislimited,anditscostisapproximatelytwotofourtimesgreaterthan

conventionaljetfuel.Wehavejoinedabuyerallianceforsustainableaviationfueltohelpsenddemand

signalstoincreasesupplyandlowercost.

50%reductioninCO

eperpackagedeliveredby2035(2020baseline)

Werecognizethataswecontinuetoservecustomersaroundtheworldandmeettheirshippingneeds,

wemustdelinkthegrowthofourbusinessfromincreasesinGHGemissions.Thekeyindicatorofour

carbonreductionperformanceisCO

eperpackagedelivered.IncludedinthismetricarethetotalScope

1and2emissionsforourglobaloperations.RatherthanonlycalculatingCO

,weuseCO

e,the

equivalentsumofCO

,CH

andN

O.

Wearefocusedonfiveleverstoachievecarbonneutralityby2050:(1)efficiencyandinnovation,(2)

increasingSAFprocurement,(3)fleetelectrification,(4)renewable/biofuelintervalsolutions,and(5)

renewableelectricitytransitionstrategies.

2022 | GRI

Efficiencyandinnovation

Startingfromthebaseyearof2020,wehavesetagoaltoreduceCO

eperpackagedeliveredby50%by

2035.Weaimtoachievethisbymeetingthemilestonesdescribedabove,alongwithnetwork

efficienciestoreducemilesdrivenandflown,fleetelectrificationandenablingmoresustainable

packagingtoflowthroughoursortationequipment.Wecontinuetoworktoreduceenergy

consumptioninotherwaysaswell,suchasswitchingtoLEDlightingandmoreefficientconveyor

motors.

OurGHGemissionsstrategyincludesimprovingouroperationalefficiencyandreducingfuel

consumption.Specificexamplesincludeinvestinginnewtechnologieslikeelectricverticaltake-offand

landing(eVTOL)aircraft,andweareexploringusingelectricaircraftinoursmallfeedernetwork,aswell

asreducingemissionsthroughenginewashingandreducingdiscretionaryfuelcarried.

Efficiencyiscoretosustainability:thegreenestmileistheonenotdrivenorflown.UPScontinuesto

enhanceitsaward-winningOn-RoadIntegratedOptimizationandNavigation(ORION)platformwith

DynamicOptimization,whichrecalculatesindividualpackagedeliveryroutesthroughoutthedayas

trafficconditions,pickupcommitmentsanddeliveryorderschangetooptimizeroutesandminimize

milesdriven.ORIONissupplementedwithUPSNav,anavigationtoolintegratedintothehandheld

devicespackagedeliverydriverscarry,thatprovidesdetailedturn-by-turndirectionstoguidelocal

deliverydrivers,notjusttoaddresses,buttospecificpackagedrop-offandpickuplocationslikeloading

docksthatarenotvisiblefromthestreet.

IncreasingSAFprocurement

Inairtransportationwehavecommittedtosource30%ofouraviationfuelfromsustainablesources.At

thecurrenttime,SAFsupplyremainslimited.Ithasnotreachedeconomiesofscaleinproduction,

makingitcostprohibitiveforwideadoption.Overthenextseveralyears,UPSwillcontinuetowork

withintheindustry,includingwithfuelproducers,customersandpeerstoacceleratethecommercial

availability,scale,cost-effectiveness,andtheshifttoSAF,suchasthroughourmembershipofthe

SustainableAviationBuyersAlliance(SABA).

Fleetelectrification

Akeypartofourcarbonreductionstrategyinvolveselectrifyingourpackagedeliverycars.Weare

collaboratingwithvehiclemanufacturerstoensurealignmentwithUPSspecifications,whichincludes

advancedcontrolandsafetyfeatures.Weareutilizingelectric-assistcyclestoreduceouremissionsand

tohelpreducecongestionindenselypopulatedareas.Wehaveworkedwithoursupplierstodeploye-

assistcyclesspecificallydesignedwithchangesinurbandeliveryinmind.Weintendtoincreasethe

deploymentofthesesolutionsinthefuture.TargeteddeploymentisalreadyoccurringwithinEuropean

citiesandselectU.S.cities.

Renewable/biofuelintervalsolutions

Weareinvestinginalternativefuelvehicleswithinourgroundoperations.Thisservesasabridging

solutionthatwillcontributetocarbonreductionsaswetransitionourfleettozero-emissiontailpipe

vehicles.In2022,wepurchased162milliongallonsofalternativefuels,whichrepresented26.5%ofour

totalgroundfuelusage,upfrom25.9%in2021.

2022 | GRI

Renewableelectricitytransitionstrategies

Wewillcontinuetoacquirerenewableelectricityforuseinourfacilities.In2022,8%ofourtotal

electricitywasgeneratedfromrenewablesourcesforownedandleasedfacilities.Thisincludesrooftop

solararraysonfacilitiesandprocuredrenewableelectricityusedinouroperations.

Anyinformationrelatingtoforwardlookingstatements,goals,andprogressagainstgoalswasnotsubjectto

Deloitte’sreviewand,accordingly,Deloittedoesnotexpressaconclusionoranyformofassuranceonsuch

information.

302-1Energyconsumptionwithintheorganization

TotalEnergyConsumption

GlobalEnergy

(‘000GJs)

2022 2021

PercentChange

(2022/2021)

BaseYear(2020)

DirectEnergy 222,447 218,659 1.7% 209,483

IndirectEnergy 7,206 6,885 4.7% 6,939

TotalEnergy 229,653 225,544 1.8% 216,422

2022 | GRI

EnergyConsumptionWithintheOrganizationbySource

GlobalEnergy(‘000GJs) 2022

PercenttoTotal

Energy2022

2021

BaseYear

(2020)

DirectEnergy

AirlineFuel 146,119 63.6% 144,179 137,555

Conventional 146,119 63.6% 144,179 137,539

Renewable 0 0.0% 0 16

GroundVehicleFuel 69,471 30.3% 69,055 66,684

Diesel 32,371 14.1% 33,300 33,372

Gasoline 24,939 10.9% 23,720 21,957

CNG 4,637 2.0% 4,478 4,497

Propane/LPG 664 0.3% 795 797

LNG 985 0.4% 1,330 1,892

RenewableFuel(Biomass) 5,875 2.6% 5,432 4,169

FacilityHeat 6,857 3.0% 5,425 5,244

NaturalGas 6,511 2.8% 5,275 5,076

HeatingOil 22 0.0% 27 49

Propane 324 0.1% 123 119

DirectEnergySubtotal 222,447 96.9% 218,659 209,483

IndirectEnergy

Electricity 6,660 2.9% 6,577 6,412

RenewableElectricity 546 0.2% 308 527

IndirectEnergySubtotal 7,206 3.1% 6,885 6,939

TotalEnergy 229,653 100.0% 225,544 216,422

Tocalculateenergyconsumption,thefuelvolumeisdeterminedandthecorrespondingunitconversion

factorfromtheArgonneNationalLaboratoryGREETmodelisapplied.Energyhasbeenreportedforthe

entitiesoverwhichUPShasoperationalcontrol.Foradditionalinformation,pleaserefertosection305-1

GHGReportingScopeandBoundary.

2022 | GRI

302-2Energyconsumptionoutsidetheorganization

EnergyConsumptionOutsidetheOrganization.

GlobalEnergy(‘000GJs) 2022 2021

Percent

Change

(2022/2021)

BaseYear

(2020)

Upstream

1.PurchasedGoodsandServices

NotReported NotReported

Not

Reported

2.CapitalGoods

1

NotReported NotReported

Not

Reported

3.FuelandEnergy-Related(not

incl.Scope1and2)

NotReported NotReported

Not

Reported

4.TransportationandDistribution 112,292 136,402 (17.7)% 113,042

5.WasteGeneratedin

Operations

1

NotRelevant NotReported

Not

Reported

6.BusinessTravel 679 620 9.6% 625

7.EmployeeCommuting 24,546 30,939 (20.7)% 30,418

8.LeasedAssets

2

NotRelevant NotRelevant NotRelevant

Downstream

9.Transportationand

Distribution

2

NotRelevant NotRelevant NotRelevant

10.ProcessingofSoldProducts

2

 NotRelevant NotRelevant NotRelevant

11.UseofSoldProducts

2

NotRelevant NotRelevant NotRelevant

12.End-of-lifeTreatmentofSold

Products

1

NotRelevant NotReported

Not

Reported

13.LeasedAssets

NotRelevant NotRelevant NotRelevant

14.Franchises NotRelevant 377 390

15.Investments

NotRelevant NotRelevant NotRelevant

TotalEnergyConsumption

Outsidethe

Organization

137,517 168,338 (18.3)% 144,475

1

Energyinformationnotreportedasoutlinedinomissionlanguagebelow.



2

CategorynotrelevanttoUPSoperations

Omitted:Informationregardingstandards,methodologies,assumptions,calculationtoolsandconversionfactors

usedarecurrentlyunavailable.Wewillbereviewingwaystoaddresstherequirementsofthisdisclosureonayearly

basisaswedefinetheneedtocapturethisinformation.EmissionsinformationisavailableinAppendixB:

StatementofGHGEmissions.

2022 | GRI

302-3Energyintensity

GlobalEnergy

('000GJs/$MRevenue)

EnergyIntensityWithintheOrganization

2022 2021 BaseYear(2020)

Revenue($M) $100,338 $96,223 $81,479

DirectEnergy 2.217 2.272 2.571

IndirectEnergy 0.072 0.072 0.085

TotalEnergy 2.289 2.344 2.660

2022 | GRI

302-4Reductionofenergyconsumption

ReductionofEnergyConsumption

EnergySavedDuetoConservationandEfficiencyImprovements

Contributing

Factors/

Initiatives

Absolute

Energy

Avoided

2022vs.

2020(‘000

gigajoules)¹

2022

Energy

Intensity

2020

Energy

Intensity

Comments

Absolute Energy Avoided

Package

intensity

(16,662) 37.08 34.39 1)Energyintensityfactorexpressedin

gigajoulesper1,000packages.

2)ScopeisallUPSoperationswithinthe

organizationalboundary

3)Includesalldirectandindirectenergyusage

4)Avoidedabsoluteenergy=(2020energy

intensityx2022#ofpackages)—(2022energy

intensityx2022#ofpackages)

Absolute Energy Avoided

Revenue

intensity

37 2.29 2.66 1)Energyintensityfactorexpressedin

gigajoules.RevenueinbillionsUSD

2)ScopeisallUPSoperationswithinthe

organizationalboundary



3)Includesalldirectandindirectenergyusage

4)Avoidedabsoluteenergy=(2020energy

intensityx2022revenue)—(2022energy

intensityx2022revenue)

Absoluteenergyavoidedin2022wasestimatedfromtheenergyintensityfactorimprovementsfrom2020(baselineyear)to

2022.Thisbaseyearwasselectedasitisthesamebaseyearforourenvironmentalgoals.FormoreinformationseeAppendixB,

sectionBaseYearGHGEmissions.

Omitted:Informationiscurrentlyunavailableforthefollowing:Standards,methodologies,assumptionsand/or

calculationtoolsused.Wewillbereviewingwaystoaddresstherequirementsofthisdisclosureonayearlybasisas

wedefinetheneedtocapturethisinformation.

2022 | GRI

302-5Reductionsinenergyrequirementsofproductsandservices

SeeDisclosure302-4—ReductionofEnergyConsumption.

Omitted:Informationregardingstandards,methodologies,assumptionsand/orcalculationtoolsusediscurrently

unavailable.Wewillbereviewingwaystoaddresstherequirementsofthisdisclosureonayearlybasisaswedefine

theneedtocapturethisinformation.

TOPIC-SPECIFIC STANDARDS: 305 Emissions

305(3-3)Managementofmaterialtopics

UPSiscommittedtodecarbonizingourtransportationservicesandprovidingtransparencyregardingour

progress.Webelievethattobeeffectiveinourcarbonreductionendeavors,comprehensivereporting

oftheentiretyofourGHGemissionsiskey.OnlywithdisclosureofScope1,2and3GHGemissionscan

stakeholdersobjectivelyassessourGHGemissionsandemissionreductionefforts.

Wemanageemissionsandenergywiththesameapproach.SeeDisclosure302(Energy)–3-3

Managementofmaterialtopics.

305-1Direct(Scope1)GHGemissions

SeeAppendixBatendofdocument.

305-2Indirect(Scope2)GHGemissions

SeeAppendixBatendofdocument.

305-3Otherindirect(Scope3)GHGemissions

SeeAppendixBatendofdocument.

305-4GHGemissionsintensity

SeeAppendixBatendofdocument.

2022 | GRI

305-5ReductionofGHGemissions

2022CarbonIntensityEmissionsAvoidedSinceBaseYear(2020)

AbsoluteCO₂e

Emissions

AvoidedSince

2020(metric

tonnes)

2022

CO₂e

Intensity

2020

CO₂e

Intensity

Comments

PackageIntensity (1,109,000) 2.66 2.51 1)CO₂eintensityfactorexpressedin

kgCO₂eperpackage

2)ScopeisUPSglobal,scope1and

scope2

3)AvoidedabsoluteCO₂e=

(2020CO₂eIntensityx2022#of

packages)–(2022CO₂eIntensityx

2022#ofpackages)

RevenueIntensity 14,000 0.33 0.42 1)CO₂eintensityfactorexpressedin

MTCO₂e.Revenueinmillions

2)ScopeisUPSglobal,scope1,

scope2andscope3

3)AvoidedabsoluteCO₂e=(2020

CO₂eIntensityx2022revenue)–

(2022CO₂eIntensityx2022revenue)

TOPIC-SPECIFIC STANDARDS: 401 Employment

401(3-3)Managementofmaterialtopics

Throughoutour115-yearhistory,UPShastransformedfrommessengersonbicyclestoanationwide

packagedeliverycompanytoaworldwidenetworkofapproximately536,000UPSemployees.We

believeincreatinganinclusiveandequitableenvironmentthatrepresentsabroadspectrumofdiverse

backgrounds,culturesandstakeholders.Byleveragingdiversitywithrespecttogender,age,ethnicity,

skillsandotherfactors,andcreatinginclusiveenvironments,webelievewecanimproveorganizational

effectiveness,cultivateinnovationanddrivegrowth.

2022 | GRI

OurBoardofDirectors,directlyandthroughtheBoard’sCompensationandHumanCapitalCommittee,

isresponsibleforoversightofhumancapitalmatters.Effectiveoversightisaccomplishedthrougha

varietyofmethodsandprocessesincludingregularupdatesanddiscussionsaroundhumancapital

transformationefforts,technologyinitiativesimpactingtheworkforce,healthandsafetymatters,

employeesurveyresultsrelatedtocultureandothermatters,hiringandretention,employee

demographics,laborrelationsandcontractnegotiations,compensationandbenefits,succession

planningandemployeetraininginitiatives.Inaddition,theCompensationandHumanCapital

Committeecharterwasrecentlyexpandedtoincludeoversightofperformanceandtalentmanagement,

diversity,equityandinclusion,workcultureandemployeedevelopmentandretention.Webelievethe

Board’soversightofthesemattershelpsidentifyandmitigateexposuretolaborandhumancapital

managementrisks,andispartofthebroaderframeworkthatguideshowweattract,retainanddevelop

aworkforcethatalignswithourvaluesandstrategies.

SpecificactionstakentoenhancetheexperienceofbeingpartoftheUPSteam:

• Incorporatingabetterbusinessmodeltoprovidebothchallengingandrewardingemployee

experiences.Thisincludesredesigningrolesandresponsibilitiestoleverageourpeoplemore

effectivelytoenhanceengagementandimproveretention;eliminatingoverlapsand

redundanciesacrossteamsanddrivingmorealignmenttosupportmoremission-focused

problemsolvingandpolicyadvocacy;andrebalancingtheteamtostrengthencapabilitiesin

domesticandinternationaloperationsversusacorporate-centricstructure.

• EnsuringUPSemployeeshaveavoiceandseatatthetablebydeepeningourcommitmentto

inclusionandopennesstonewideas.

• Conductingmulti-levelcultureandengagementsurveystobetterunderstandhowourbeliefs

andbehaviorsalignwithourstrategy.Identifyingwhatmotivates,empowersandinspiresour

employeeshelpsusidentifyexistingstrengths,aswellasopportunityareas,inourdesireto

drivebusinessresultsandsupportUPS’scontinuoustransformation.Tomeasureoursuccess,

wemonitoranemployeelikelihoodtorecommendscore.

• Creatingatechnology-enabledoperatingmodelfortheHumanResourcesorganizationthat

positionsUPStobetterattract,developandretaintalent,allowingHRleaderstofocusonthe

department’sotherpriorities.

• StreamliningHealthandSafetyresourcesandprocessestofocusonriskcontroland

personalizedsolutions.Wearealsoenhancingourmentoring-basedapproachtobetterinstilla

safetycultureamongnewUPSemployees.

2022 | GRI

401-1Newemployeehiresandemployeeturnover

NewHires

AgeGroup Gender Geography

Employee

Categories

<30 30-50 >50 Male Female

African-

American

Hispanic

Asian-

American

Other

Senior/Middle

Management

13% 58% 29% 73% 27% 16% 13% 6% 3%

EntryLevel

Management

42% 42% 16% 62% 38% 24% 19% 2% 5%

Administrative

/Technical

26% 52% 22% 44% 56% 25% 13% 4% 3%

Non-

management

31% 46% 23% 83% 17% 25% 19% 2% 4%

Total 30% 47% 23% 78% 22% 24% 19% 3% 4%

1Datacollectedon9/30/22toaccountforyear-roundemployeesratherthanseasonalpeakhires.Doesnotincludeacquisitions

after2015.

2Informationaboutgendergloballyisreportedasapercentageofthoseindividualswhohaveself-disclosed

3MinoritygrouprestrictedtoU.S.employees.

4Indicatestwoormore.

ToseeworkforcedemographicinformationusingU.S.governmentmandatedreportingcategories,see

ourEEO-1➯.Datadoesnotincludeanyacquisitionsfrom2015throughthepresent.

Followingisouraspirationalgoalforglobalwomenrepresentationinfull-timemanagementroles,witha

targetyearof2025,alongwithourgoalforethnicallydiversemanagement.

2022 | GRI

2025Year-endaspirationalgoals:

• 30%womeninfull-timemanagementrepresentedintheUPSworkforceglobally.Asof

December31,2022,wewereat27%.

• 40%ethnicallydiversefull-timemanagementintheUnitedStatesUPSworkforce.Asof

December31,2022,wewereat37%.

Increasingthepercentageofwomeninoperationsroleswillbeimportanttooursuccess.Weare

expandingourinitiativestofurtherourrepresentationofwomeninoperationsmanagementroles,

specificallyinourhubsandpackagecenterfacilities.WorkingwithourWomeninOperationsBRGsand

seniorleaders,wearebuildingspecifictraining,mentoringanddevelopmentprogramstoensure

candidatesaregiventheskillsandsupporttosuccessfullyadvance.

Wecontinuetoseeacceleratedprogressofourethnicallydiverserepresentationthroughoursustained

commitmenttoinvestinginourpeople,employeeengagement,andfosteringaculturewhereequity

andasenseofbelongingarethenorminourworkplace.OurUPSersrepresenttherichdiversityfoundin

communitiesacrosstheU.S.andaroundtheworld,makingourcompanyoneofthemostdiverseinthe

logisticsandsupplychainindustry.

Anyinformationrelatingtoforward-lookingstatements,goals,andprogressagainstgoalswasnotsubjectto

Deloitte’sreviewand,accordingly,Deloittedoesnotexpressaconclusionoranyformofassuranceonsuch

information.

405-2Ratioofbasicsalaryandremunerationofwomentomen

UPSprovidesforequalremunerationpoliciesgloballyirrespectiveofgenderandhaspoliciesand

proceduresinplacetosupportourcompliancewithapplicablelawsandregulations.

Omitted:Informationpertainingtotheratioofthebasicsalaryofwomentomenforeachemployeecategoryisnot

currentlyavailable.Wewillbereviewingwaystoaddresstherequirementsofthisdisclosureonayearlybasisaswe

definetheneedtocapturethisinformation.

TOPIC-SPECIFIC STANDARDS: 418 Customer Privacy

418(3-3)Managementofmaterialtopics

Privacyandthesecurityofourcustomers’informationandshipmentsareprioritiesforUPS.Aspotential

threatstodigitalandphysicalassetsevolve—fromcybercrimetoterrorism—weundertakeactivities

tohelpprevent,detectandminimizetheeffectsofcybersecurityincidents.

Wehaveinvestedandcontinuetoinvestintechnologysecurityinitiatives,informationtechnologyrisk

managementanddisasterrecoveryplans.

Confidentialityandcustomerrelationshipsarecriticalcomponentsofourassetsecurityprogram,and

thereforewecannotdisclosespecificdetailsaboutthetechniquesemployed.

UPShasdevelopedaGlobalPrivacyProgramtoaddresscompliancewithprivacylawsinthecountriesin

whichweoperate.TheProgramissupportedbyanetworkofDataProtectionOfficersandothertrained

employees.

2022 | GRI

418-1Substantiatedcomplaintsconcerningbreachesofcustomerprivacyandlossesof

customerdata

Todateweareunawareofanymaterialdatabreachorsystemdisruption,includingacyber-attack.We

cannotprovideanyassurancesthatsucheventsandimpactswillnotoccurandbematerialinthefuture.

Oureffortstodeter,identify,mitigateand/oreliminatefuturebreachesmayrequiresignificant

additionaleffortandexpenseandmaynotbesuccessful.

2022 | GRI

APPENDIX A

2022 | GRI

APPENDIX B

Statement of Greenhouse Gas (GHG) Emissions for the

year ended December 31, 2022

305-1Direct(Scope1)GHGemissions

305-2Indirect(Scope2)GHGemissions

GlobalCO2eEmissions

('000tonnes)

2022 2021

%Change

(2022/2021)

BaseYear(2020)

Scope1 15,845 15,668 1.1% 15,088

Scope2(market-

based)

632 654 (3.4)% 728

GrossScope1and

2

16,477 16,322 0.9% 15,816

Scope3 16,862 19,486 (13.5)% 18,595

GrossScope1,2

and3

33,339 35,808 (6.9)% 34,411

Totalvoluntary

carbonoffsetsfor

carbonneutral

shipping

(337) (298) 13.1% (273)

NetGlobalCO₂e

Emissions

33,002 35,510 (7.1)% 34,138

2022 | GRI

GlobalCO

eEmissions

('000tonnes)

EmissionsbyBusinessUnit

U.S.DomesticPackage

2022 2021

BaseYear

(2020)

Scope1 8,773 11,825 10,129

Scope2 493 561 632

TotalScope1and2 9,266 12,386 10,761

Scope3 6,983 9,945 10,269

TotalScope1,2,and3 16,249 22,331 21,030

InternationalPackage

2022 2021

BaseYear

(2020)

Scope1 6,741 3,782 4,908

Scope2 48 32 19

TotalScope1and2 6,789 3,814 4,927

Scope3 3,766 2,540 2,656

TotalScope1,2,and3 10,555 6,354 7,583

SupplyChainSolutions

2022 2021

BaseYear

(2020)

Scope1 331 61 51

Scope2 91 61 77

TotalScope1and2 422 122 128

Scope3 6,113 7,001 5,670

TotalScope1,2and3 6,535 7,123 5,798

Totals

2022 2021

BaseYear

(2020)

Scope1 15,845 15,668 15,088

Scope2 632 654 728

TotalScope1and2 16,477 16,322 15,816

Scope3 16,862 19,486 18,595

TotalScope1,2and3 33,339 35,808 34,411

2022 | GRI

EmissionsbyGreenhouseGasScope&Type('000tonnes)

GreenhouseGas

Type

Scope1 Scope2

2022 2021

BaseYear

(2020)

2022 2021

BaseYear

(2020)

CarbonDioxide(CO

)

15,657.3 15,478.0 14,913.4 628.9 650.9 723.5

Methane(inCO

47.1 45.5 39.7 1.3 1.4 1.8

Methane(CH

)

1.7 1.6 1.4 0.0 0.1 0.1

NitrousOxide(in

140.8 138.3 128.7 1.8 2.0 2.4

NitrousOxide(N

0.5 0.5 0.5 0.0 0.0 0.0

EmissionsbyGreenhouseGasScope&Type('000tonnes)

GreenhouseGas

Type

Scope3 Totals

2022 2021

BaseYear

(2020)

2022 2021

BaseYear

(2020)

CarbonDioxide(CO

)

16,795.0 19,396.4 18,509.7 33,081.2 35,526.5 34,148.1

Methane(inCO

7.6 10.1 10.2 56.1 57.1 51.7

Methane(CH

)

0.3 0.4 0.4 2.0 2.0 1.8

NitrousOxide(in

59.0 79.6 74.8 201.7 219.8 205.9

NitrousOxide(N

0.2 0.3 0.3 0.8 0.8 0.8

2022 | GRI

Biomass CO

Emissions

('000 tonnes, not included in above totals)

2022 2021

%Change

(2022/2021)

BaseYear(2020)

MobileCombustion–Biomass

CO₂(e.g.,ethanol,bio-diesel)

737 663 11.16% 470

StationaryCombustion–

BiomassCO₂

0 0 0

TotalBiomassCO₂(reported

separatelyasperGHG

Protocol)

737 663 11.2% 470

Scope2CO

eEmissions('000tonnes)

2022 2021

%Change

(2022/2021)

BaseYear(2020)

Scope2(market-based

method)

632 654 (3.36)% 728

Scope2(location-based

method)

660 676 (2.37)% 775

GHGreportingpolicies

ThestatementofGHGemissionshasbeenpreparedbasedonacalendarreportingyearthatisthesame

asourfinancialreportingyear:January1,2022toDecember31,2022.Organizationalresponsibilityfor

ourGHGEmissionsreportingrestswithourChiefCorporateAffairsandSustainabilityOfficer.

Scope1and2GHGemissionsinformationispreparedinaccordancewiththeWorldResourcesInstitute/

WorldBusinessCouncilforSustainableDevelopmentGreenhouseGasProtocol:ACorporateAccounting

andReportingStandard(RevisedEdition).

Scope3GHGemissionsinformationispreparedinaccordancewiththeWorldResourcesInstitute/World

BusinessCouncilforSustainableDevelopmentGreenhouseGasProtocol:CorporateValueChain(Scope

3),AccountingandReportingStandard.

Collectively,theCorporateAccountingandReportingStandard(RevisedEdition)andtheCorporate

ValueChain(Scope3),AccountingandReportingStandardarereferredtoasthe“GHGProtocol”inthis

document.ThefollowingincludesinformationonGHGemissionsbybusinessunitandemissionsource,

aswellasintensitydisclosures.

2022 | GRI

BaseyearGHGemissions

ThebaseyearGHGemissionsforScope1,2,and3is2020.

UPSwillchangethebaseyearasneededtoproperlytrackprogressagainstcurrentsustainabilitygoals.

TheGHGProtocolstates,“Selectionandrecalculationofabaseyearshouldrelatetothebusinessgoals

andtheparticularcontextofthecompany:Forthepurposeofreportingprogresstowardsvoluntary

publicGHGtargets,companiesmayfollowthestandardsandguidanceinthischapter.”Shouldnew

emissions-relatedsustainabilitygoalsbepublishedwithanewbaseyear,thebaseyearforthe

greenhousegasinventorywillbechangedtoreflectthenewgoalbaseyearforconsistencywiththe

GreenhouseGasProtocol.Inaddition,thescience-basedtargetsinitiativesuggests,“Itisrecommended

thatcompaniesusethesamebaseyearsforallneartermtargets.”AlthoughUPSdoesnotcurrently

haveascience-basedtarget,UPSrecognizesSBTi’sleadershipinthespaceandfeelsthatitssuggestion

foraconsistentbaseyearisappropriateforconsideration.Usingtwobaseyearsintheinventoryand/or

goalsdoesnotalignwiththisrecommendationfromSBTiandUPSwillonlyusethebaseyearfromthe

mostrecentlyupdatedgoalsforconsistency.Themostrecentgoalshaveabaseyearof2020,whichwill

beusedasthebaseyearuntilnewgoalsarecreatedorwarranted.



Greenhousegases

GHGemissionsfiguresarereportedinmetrictonnesofcarbondioxideequivalents(CO

e)andinclude

threeofthesevengreenhousegasescoveredbytheGHGProtocol—carbondioxide(CO

),methane

(CH

)andnitrousoxide(N

O).Hydrofluorocarbons(HFCs),Perfluorocarbons(PFCs),sulfurhexafluoride

(SF6)andnitrogentriflouride(NF

)emissionswereomittedfromourreporting,astheyarenota

significantsourceofgreenhousegasesfortheCompany.

TheGHGProtocoldefinesglobalwarmingpotential(GWP)as“afactordescribingtheradiativeforcing

impact(degreeofharmtotheatmosphere)ofoneunitofagivenGHGrelativetooneunitofCO

."By

usingGWPs,GHGemissionsfrommultiplegasescanbestandardizedtoacarbondioxideequivalent

(CO

e).

The Global Warming Potentials of GHGs

Gas GWP Reference

Carbon Dioxide (CO

) 1

FifthAssessmentReport(AR5)

publishedbyIntergovernmental

PanelonClimateChange

Methane (CH

) 28

Nitrous Oxide (N

265

GHGReportingScopeandBoundary

TheStatementofGreenhouseGasEmissionsincludesScope1(direct),Scope2(indirect)andScope3

(indirect)emissionsthatwerereportedforoperationswithintheorganizationalboundarydescribed

below.GHGemissionshavebeenreportedfromtheentitieswhereUPShasoperationalcontrolas

definedbytheGHGProtocol.UPSisaglobalcompanyoperatinginmorethan220countriesand

territories.UPShastworeportingsegments:U.S.DomesticPackageandInternationalPackage.Our

remainingbusinessesarereportedasSupplyChainSolutions.U.S.DomesticPackageandInternational

Packagearetogetherreferredtoasourglobalsmallpackageoperations.

2022 | GRI

U.S.DomesticPackageprovidestime-definitedeliveryservicesforexpressletters,documents,packages

andpalletizedfreightviaairandgroundservicestoandfromall50states.

InternationalPackageincludessmallpackageoperationsinEurope,Asia,Canada,LatinAmerica,the

IndianSubcontinent,MiddleEastandAfrica.

SupplyChainSolutionsconsistsofourforwarding,truckloadbrokerage,logisticsanddistributionand

otherbusinesses.

OperationalBoundary–DetailedDescriptionScope1and2

Source:Scope1-Jet-A(mobile)

• U.S.PackageOperations:AlljetfuelusedforUPS-ownedaircraftandleasedaircraftforwhich

UPShasoperationalcontrol(U.S.flights).Wehavedefinedoperationalcontrolasthoseleases

onaUPSoperatinglicensethatareflownandmaintainedbyUPS.

• InternationalPackageOperations:AlljetfuelusedforUPS-ownedaircraft(Internationalflights).

AircraftincludethoseontheUPSoperatinglicense,flownbyUPSpilotsandmaintainedbyUPS.

• SupplyChainSolutions:N/A—allSupplyChainSolutionsmovedonUPS-ownedaircraftis

capturedinpackageoperations(U.S.andInternational)

Source:Scope1-DieselandGasoline(mobile)

• U.S.PackageOperations:AlldieselandgasolineusedinUPS-owned/leasedvehiclestotransport,

pickupanddeliversmallpackages

• InternationalPackageOperations:AlldieselandgasolineusedinUPS-owned/leasedvehiclesto

transport,pickupanddeliversmallpackages

• SupplyChainSolutions:DieselandgasolineusedinUPS-owned/leasedvehiclestotransport,

pickupanddeliverfreightorpackages

Source:Scope1-CNG(mobile)

• U.S.PackageOperations:AllcompressednaturalgasusedinUPS-ownedvehiclestotransport,

pickupanddeliversmallpackages

• InternationalPackageOperations:AllcompressednaturalgasusedinUPS-ownedvehiclesto

transport,pickupanddeliversmallpackages

• SupplyChainSolutions:AllcompressednaturalgasusedinUPS-ownedvehiclestotransport,

pickupanddeliverfreightorpackages

Source:Scope1-Propane/LPG(mobile)

• U.S.PackageOperations:AllpropanefuelusedinUPS-ownedvehiclestotransport,pickupand

deliversmallpackages

• InternationalPackageOperations:AllpropanefuelusedinUPS-ownedvehiclestotransport,

pickupanddeliversmallpackages

• SupplyChainSolutions:N/A—fueltypeisnotasourceofemissionsfromthisbusinessunit

2022 | GRI

Source:Scope1-LNG(mobile)

• U.S.PackageOperations:AllliquefiednaturalgasusedinUPS-ownedvehiclestotransport,

pickupanddeliversmallpackages

• InternationalPackageOperations:N/A—fueltypeisnotasourceofemissionsfromthis

businessunit

• SupplyChainSolutions:AllliquefiednaturalgasusedinUPSownedvehiclestotransport,pickup

anddeliverfreightorpackages

Source:Scope1-Biomass(mobile)

• U.S.PackageOperations:Renewablenaturalgas,renewablediesel,renewablegasoline,ethanol

andbio-dieselusedinUPSfleet.CH

andN

OarereportedinScope1andCO

2

emissionsfor

biomassfuelsarereportedseparatelyaspertheGHGprotocol.

• InternationalPackageOperations:Renewablenaturalgas,renewablediesel,renewablegasoline,

ethanolandbio-dieselusedinUPSfleet.CH

andN

OarereportedinScope1andCO

emissions

forbiomassfuelsarereportedseparatelyaspertheGHGprotocol.

• SupplyChainSolutions:Renewablenaturalgas,renewablediesel,renewablegasoline,ethanol

andbio-dieselusedinUPSfleet.CH

andN

OarereportedinScope1andCO

emissionsfor

biomassfuelsarereportedseparatelyaspertheGHGprotocol.

Source:Scope1-NaturalGas,HeatingOil,Propane(stationary)

• U.S.PackageOperations:Naturalgas,propaneandheatingoilforfacilitiesweownorlease

• InternationalPackageOperations:Naturalgas,propaneandheatingoilforfacilitiesweownor

lease

• SupplyChainSolutions:Naturalgas,propaneandheatingoilforfacilitiesweownorlease

Source:Scope2-Electricity(stationary)

• U.S.PackageOperations:Electricityusageforfacilitiesweownorlease

• InternationalPackageOperations:Electricityusageforfacilitiesweownorlease

• SupplyChainSolutions:Electricityusageforfacilitiesweownorlease

OperationalBoundary–DetailedDescriptionScope3

Noteregardingtheinterpretationofvaluechainpartner:Definitionfromprioryearconsideredusageof

primarydata(e.g.fuelused)versussecondarydata(e.g.estimatesusingmiles).Definitionnowbeing

usediswhetherdataisavailablewithininternalsystemsorobtainedfromsupplier.Pleasenote,this

changedoesnotaffecttheprecisionoftheUPSemissionscalculations.

UpstreamScope3Emissions

Category1:PurchasedGoodsandServices

• Emissionsincluded/excluded(UPSscopeandboundary):Theupstreamextraction,production,

andtransportationofgoodsandservicespurchasedbyallUPSoperations,nototherwise

includedinCategories2-8.Noexclusions.

• Descriptionofmethodology:Economicinput-outputlifecycleassessmentwithadjustmentsfor

inflation.CorporateSustainabilityandCorporateControllersreviewallgeneralledgercodesfor

applicabilityandappropriatesub-categorization.(EIO-LCA)model.

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:0%

2022 | GRI

Category2:CapitalGoods

• Emissionsincluded/excluded(UPSscopeandboundary):Theupstreamextraction,production

andtransportationofcapitalexpenditurespurchasedbyallUPSoperations.Includesbuildings,

aircraft,vehiclesandinformationtechnology.Noexclusions.

• Descriptionofmethodology:Economicinput-outputlifecycleassessmentwithadjustmentsfor

inflation.CorporateSustainabilityandCorporateControllersreviewallgeneralledgercodesfor

applicabilityandappropriatesub-categorization.(EIO-LCA)model.

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:0%

Category3:Fuel-andEnergy-RelatedActivitiesNotIncludedinScope1or2

• Emissionsincluded/excluded(UPSscopeandboundary):Includestheupstream(well-to-pump)

emissionsfromrawmaterialextractionuptothepointof(butexcluding)combustionforthe

followingglobalfuelsources:Jet-A,Diesel,gasoline,CNG,LPG,LNG,naturalgas,heatingoiland

propane.Includestheupstreamemissionsforthetransmissionanddistributionlossesof

purchasedelectricity.Noexclusions.

• Descriptionofmethodology:ThesameprimarydatathatisusedtocalculatetheScope1and2

emissionsforallenergyusageisusedtocalculatetheupstreamemissions;theactualquantityof

energyconsumedismultipliedbytheappropriatelifecycleemissionfactor.

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:0%

Category4:TransportationandDistribution(Upstream)

• Emissionsincluded/excluded(UPSscopeandboundary):Theemissionsfrompurchased

transportation(air,ground,railandocean)forthepickup,transportationanddeliveryof

packages/freightforourglobaloperationsincludesemissionsassociatedwith:

◦ U.S.PackageOperations-Packagesmovedbythirdpartiesviaground,railandair

◦ InternationalPackageOperations-Packagesmovedbythirdpartiesviaground,railand

air

◦ SupplyChainSolutions-Freightmovedbythirdpartiesviaground,rail,airandocean

DoesnotincludeScope2emissionsfromthird-partytransportationcompaniesoranyoptional

lifecycleassessment(LCA)emissions.Sourcehasbeenexcludedduetolackofmeansto

measureemissionsource.

• Descriptionofmethodology:Theprimarymethodusedtocalculatetheupstreamemissions

frompurchasedtransportationistomultiplytheactualweightanddistancetraveledforeach

shipmentbytheappropriateemissionfactorfromtheGHGProtocol.

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:0%

Category5:WasteGeneratedinOperations

• Emissionsincluded/excluded(UPSscopeandboundary):NotRelevant-Wedonotreportonthis

category.AsoutlinedintheGHGprotocol,ademinimisemissionsapproachisusedto

determineexclusionfromtheinventory.

• Descriptionofmethodology:NotRelevant

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:NotRelevant

2022 | GRI

Category6:BusinessTravel

• Emissionsincluded/excluded(UPSscopeandboundary):Includestheemissionsthatoccurfrom

airandrailtravel,rentalcarsandtheuseofpersonalvehiclesforbusiness-relatedactivitiesfor

ourglobaloperations.Doesnotincludeanyoptionallifecycleemissionsfromhotelstays.

Sourcehasbeenexcludedduetolackofmeanstomeasureemissionsource.

• Descriptionofmethodology:TravelagentprovidesadetailedbreakdownofGHGemissions

baseduponactualtravelactivity.

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:13%

Category7:EmployeeCommuting

• Emissionsincluded/excluded(UPSscopeandboundary):Includestheemissionsthatoccurfrom

thetransportationofouremployeesbetweentheirhomesandtheirworkplaceforourglobal

operations.Doesnotincludeanyoptionalemissionsfromemployeeteleworking.Sourcehas

beenexcludedduetolackofmeanstomeasureemissionsource.

• Descriptionofmethodology:Actualnumberofemployeesmultipliedbyaveragegallonsused

peremployee(UPScalculatedthisfactor)multipliedbytheemissionfactorforgasoline(8.81kg

CO2pergallon).TheUPSfactorforestimatedgallonsperemployeewascreatedbycombininga

hostofinformationfromtheU.S.Censusdata,andothersources

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:0%

Category8:UpstreamLeasedAssets

• Emissionsincluded/excluded(UPSscopeandboundary):NotRelevant—Wedonotreporton

thiscategorysincethecategoryasdescribedbytheWRIGuidelinesisnotapplicabletoour

businessbecauseupstreamleasedassetsareincludedinourScope1and2emissions.

• Descriptionofmethodology:NotRelevant

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:NotRelevant

DownstreamScope3Emissions

Category9:TransportationandDistribution

• Emissionsincluded/excluded(UPSscopeandboundary):NotRelevant—Wedonotreporton

thiscategorysincethecategoryasdescribedbytheWRIGuidelinesisnotapplicabletoour

businessbecauseUPSdoesnotofferasoldproduct.Foroursoldservice,emissionsfromnon-

UPSvehiclesarereportedincategory4becausetheyarepurchaseddirectlybyUPS.

• Descriptionofmethodology:NotRelevant

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:NotRelevant

Category10:ProcessingofSoldProducts

• Emissionsincluded/excluded(UPSscopeandboundary):NotRelevant—Wedonotreporton

thiscategorysincethecategoryasdescribedbytheWRIGuidelinesisnotapplicabletoour

businessbecauseUPSdoesnotofferanintermediatesoldproduct.

• Descriptionofmethodology:NotRelevant

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:NotRelevant

2022 | GRI

Category11:UseofSoldProducts

• Emissionsincluded/excluded(UPSscopeandboundary):NotRelevant—Wedonotreporton

thiscategorysincethecategoryasdescribedbytheWRIGuidelinesisnotapplicabletoour

businessbecauseUPSdoesnotofferanintermediatesoldproduct.

• Descriptionofmethodology:NotRelevant

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:NotRelevant

Category12:End-of-LifeTreatmentofSoldProducts

• Emissionsincluded/excluded(UPSscopeandboundary):NotRelevant-Wedonotreportonthis

category.AsoutlinedintheGHGprotocol,ademinimisemissionsapproachisusedto

determineexclusionfromtheinventory.

• Descriptionofmethodology:NotRelevant

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:NotRelevant

Category13:DownstreamLeasedAssets

• Emissionsincluded/excluded(UPSscopeandboundary):NotRelevant—Wedonotreporton

thiscategorysincethecategoryasdescribedbytheWRIGuidelinesisnotrelevantbecauseUPS

doesnothaveanysignificantdownstreamleasedassets.

• Descriptionofmethodology:NotRelevant

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:NotRelevant

Category14:Franchises

• Emissionsincluded/excluded(UPSscopeandboundary):NotRelevant-Wedonotreportonthis

category.AsoutlinedintheGHGprotocol,ademinimisemissionsapproachisusedto

determineexclusionfromtheinventory

• Descriptionofmethodology:NotRelevant

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:NotRelevant

Category15:Investments

• Emissionsincluded/excluded(UPSscopeandboundary):NotRelevant—Wedonotreporton

thiscategorysincethecategoryasdescribedbytheWRIGuidelinesisnotrelevantbecauseUPS

doesnothaveanysignificantinvestmentsthatfitthiscategory.

• Descriptionofmethodology:NotRelevant

• %emissionscalculatedusingdataobtainedfromvaluechainpartners:NotRelevant

2022 | GRI

Uncertainty

AscalculationsofGHGemissionscontainuncertaintyforavarietyofreasons,weconductedan

uncertaintyanalysistoquantifyestimatesofthelikelyorperceiveddifferencebetweenthereported

GHGemissionsandaqualitativedescriptionofthelikelycausesofthedifferencesuchasuncertaintyin

datainputsandcalculationmethodologies;uncertaintyassociatedwithmathematicalequationsusedto

characterizetherelationshipbetweenvariousparametersandemissionprocesses;anduncertainty

associatedwithquantifyingtheparametersusedasinputstoestimationmodels.UsingtheGHG

Protocol“MeasurementandEstimationUncertaintyofGHGEmissions”guidance,weanalyzedthedata

collectedtoinformourestimateofeachemissionsourceandqualitativelyevaluatedtheuncertainty

associatedwiththeestimate.WethenperformedMonteCarlosimulationsvia@Riskstatisticalanalysis

softwareata95%confidenceintervaltoestimatetheuncertaintyforourcurrentyearGHGinventoryas

follows:

Scope Uncertainty

MainSourceof

Uncertainty

Comments

Scope

±1%

Jet Fuel

Basedontheuncertaintyofthesubcomponentsof

Scope1,JetFuelhasthelargestrangeofuncertainty

betweentheupperandlowerlimits.

Scope

±4%

Domestic Operations

Basedontheuncertaintyofthesubcomponentsof

Scope2,DomesticOperationshasthelargestrange

ofuncertaintybetweentheupperandlowerlimits.

Scope

±7% CapitalizedGoods Basedontheuncertaintyofthesubcomponentsof

Scope3,CapitalizedGoodshasthelargestrangeof

uncertaintybetweentheupperandlowerlimits.

GHGemissionfactors

Thecarbondioxideequivalentemissionsassociatedwiththeactivitiesdescribedinthedetailed

descriptionofouroperationalboundariesweredeterminedonthebasisofmeasuredorestimated

energyandfueluse,multipliedbyrelevantcarbonemissionfactors.Publishedemissionfactorswere

usedtocalculateemissionsfromoperations.Renewableelectricityuseissupportedthroughenergy

attributecertificatesandsuppliercontracts.

2022 | GRI

GHGemissionfactorsbysource

Emissions

Source

EmissionFactorEmployed

Scope1—

Global

GHGProtocolEmissionFactorsfromCross-SectorTools,March2017

EPAEmissionFactorHub_Nov2015v2

Scope2—

U.S.

U.S.EnvironmentalProtectionAgencyeGRIDdatayear2020

2022Green-e®ResidualMixEmissionsRates(2020Data)

Scope2—

Canada

1

NationalInventoryReport,GreenhouseGasSourcesandSinksinCanada(Published

2021;Datayear2019)

Scope2—

Other

OECD/IEA)

2021EuropeanResidualMix(AssociationofIssuingBodies)

Scope3—

Global

Categories1and2:GHGProtocolScope3Evaluator-Economicinput-outputlife

cycleassessment(EIO-LCA)model

Category3:ArgonneNationalLaboratoryGREET_12021Model

Category3:USEnvironmentalProtectionAgencyeGRID2020

Category4:EPASmartWayCarrierRankingsandEmissionRates(railroadonly)

Category6:EPAEmissionFactorsforGHGInventories,March2018

Category4,7,14:GHGProtocolEmissionFactorsfromCross-SectorTools,March

2017

Categories5and12:2020UKGovernmentGHGConversionFactorsforCompany

Reporting

Methodology

ForScope1and2,primaryusagedataisusedtocalculateGHGEmissions.Theprimarydataiscollected

throughvariousinternalprocessesanddatasystemswhichareenteredintooursustainability

performancemanagementsoftwarethatquantifiesassociatedemissionsthroughtheapplicationofthe

GHGemissionfactorsdescribedabove.GHGemissioncalculationsforScope3usevarioussourcesof

secondarydatasinceprimarydataisunavailable.Thesecondarydatausedvariesfrommilesdriven,

numberofpackagespickedup/deliveredtoestimatedshipmentinformation(weightanddistanceper

shipment).TheappropriateGHGfactorisappliedtoestimatetheemissionsreported.

2022 | GRI

CarbonoffsetpurchasesfromUPScarbonneutralproduct

AcarbonoffsetisacertifiedfinancialinstrumentaimedatareductioninGHGemissions.Theoffsetswe

purchasemeetthekeystandardofadditionally,whichmeansthatthecarbonreductionprojectin

question(suchasreforestation)producedareductioninCO

egenerationorsequestrationofCO

ein

additiontowhatwouldhavebeenachievedbyactivitiesalreadyplannedorunderway.UPSiscurrently

notusingtheseoffsetstomeetourGHGgoals.Theyarepurchasedandretiredonbehalfofour

customersthatareelectingtooffsettheGHGemissionsassociatedwiththeshipmentoftheirpackages

andfreight.Thetablebelowisasummaryofcarbonoffsetspurchasedonbehalfofourcustomers.

ProjectName

Project

Location

Offset

Standard

Project

Type

2022Metric

Tonnes

Retired

2021Metric

Tonnes

Retired

AcreAmazonian

Rainforest

Brazil VCS Forest

Conservation

n/a 110,000

UlubeluGeothermal Indonesia CER Geothermal 9,705 10,295

WolfCreekLandfill U.S.

(Georgia)

CAR LandfillGas n/a 56,050

CholCharoenGroup

Wastewater

Treatmentwith

BiogasSystem1

Thailand VCS Wastewater

Methane

Destruction

18,863 113,130

Darkwoods Canada VCS Reforestation n/a 8,409

AmayoWindPower

Project

Nicaragua Gold Renewable

Energy

10,832 n/a

AntaiWasteGas China GSVER WasteGas

Recovery

10,000 n/a

GasDistributionLeak

Reduction

Bangladesh CDM Resource

Recovery

43,000 n/a

GolaRainforest

ProtectionREDD+

SierraLeone VCS Forest

Protection

46,685 n/a

Portfolio-Nicaragua

Amayo

Nicaragua Gold Renewable

Energy

77,414 n/a

WindPortfolio

Power

India,China CDM Renewable

Energy

14,677 n/a

Praktijkcentrum

Sterksel

Netherlands VCS Methane

Recovery

4,340 n/a

RucasAmazonian

Rainforest

Brazil VCS Forest

Conservation

101,769 n/a

TotalCarbonOffsets 337,285 297,884

2022 | GRI

305-3Otherindirect(Scope3)GHGemissions

GlobalCO₂eEmissions('000

tonnes)

2022 2021

BaseYear

(2020)

TotalScope3Emissions 16,862 19,486 18,595

Upstream

1 PurchasedGoodsandServices 1,611 1,740 1,828

2 CapitalGoods 2,424 2,544 3,821

FuelandEnergyRelated(notincl.

Scope1and2)

3,250 3,198 2,703

JetA(welltopump) 1,825 1,800 1,700

Diesel(welltopump) 505 520 516

Gasoline(welltopump) 428 406 371

CNG(welltopump) 77 75 69

Propane/LPG(welltopump) 9 11 10

LNG(welltopump) 32 43 58

Biomass(welltopump) 260 240 -114

NaturalGas,HeatingOil,Propane

(stationary)

78 66 55

Electricity(T&Dlosses/generationof) 37 37 38

4 TransportationandDistribution 7,868 9,712 8,036

SubcontractedAir 3,782 4,683 4,266

SubcontractedGround 3,655 4,527 3,136

SubcontractedRail 319 365 425

SubcontractedOcean 112 137 209

5 WasteGeneratedinOperations NotRelevant 90 37

6 BusinessTravel 48 43 44

7 EmployeeCommuting 1,661 2,093 2,059

8 LeasedAssets NotRelevant NotRelevant NotRelevant

Downstream

9 TransportationandDistribution NotRelevant NotRelevant NotRelevant

10 ProcessingofSoldProducts NotRelevant NotRelevant NotRelevant

2022 | GRI

11 UseofSoldProducts NotRelevant NotRelevant NotRelevant

End-of-LifeTreatmentofSold

Products

NotRelevant 12 11

13 LeasedAssets NotRelevant NotRelevant NotRelevant

14 Franchises NotRelevant 54 56

15 Investments NotRelevant NotRelevant NotRelevant

Additionalinformationregardingtheincludedgreenhousegases,baseyear,GWPandcalculation

standardscanbefoundin305-1and305-2.

Omitted:InformationregardingbiogenicCO

emissionsforeachscope3categoryiscurrentlyunavailable.Wewill

bereviewingwaystoaddressallrequirementsofthisdisclosureonayearlybasis.

305-4GHGemissionsintensity

Global CO

('000 tonnes/ $M Revenue)

e Intensity

Global CO₂e

('000 tonnes/ $M

Revenue)

Totals

2022 2021 Base Year (2020)

Revenue in millions

$100,338 $96,223 $81,479

Scope 1 0.158 0.163 0.185

Scope 2 0.006 0.007 0.009

Total Scope 1 and 2

0.164 0.170 0.194

Scope 3 0.168 0.203 0.228

Total Scope 1, 2 and 3

0.332 0.373 0.422

2022 | GRI

Global CO

e Emissions

('000 tonnes)

e by Fuel Type

2022

2022 Percent to

Total

2021

BaseYear

(2020)

Airline Fuel

10,751

65.2%

10,608 10,120

Ground Vehicle Fuel

4,762

28.9%

4,778 4,695

Diesel

2,426

14.7%

2,496 2,501

Gasoline

1,867

11.3%

1,776 1,644

CNG

267

1.6%

258 259

Propane/LPG

0.3%

54 54

LNG

107

0.7%

145 206

Biomass (CH₄ and N₂O only)

0.3%

43 25

HFCs (fugitive)

NotMaterial

6 6

Facility Fuel

332

2.0%

282 273

Natural Gas

309

1.9%

272 262

Heating Oil

0.0%

2 3

Propane

0.1%

8 8

Facility Electricity

632

3.8%

654 728

Grand Total

16,477

100%

16,322 15,816

AdditionalinformationregardingtheincludedgreenhousegasescanbefoundinDisclosures305-1and

305-2.

2022 | GRI