PHILADELPHIA – Twenty-eight percent of the United Parcel Service’s (UPS) voting shareholders voted “yes” on a proposal urging the Atlanta-based package delivery company to reduce its significant carbon footprint. The vote count, announced after the company’s May 5th annual meeting, comes just weeks after Environment America sent nearly 9,000 petitions urging UPS to electrify its delivery trucks to reduce global warming pollution.
“The convenience of a fast delivery shouldn’t have such an outsized impact on our planet,” said Morgan Folger, Destination: Zero Carbon campaign director for Environment America. “UPS could change that by ditching fossil fuels and committing to an all zero-emission fleet of big brown trucks. UPS could be a shipping industry leader not only in volume, but also in sustainability, if it sets targets to cut emissions across the corporation’s operations.”
Giant global companies such as UPS need to take action quickly for the world to avoid the worsening impacts of climate change. From hurricanes to wildfires and drought, the devastating impacts of global warming are repeatedly hitting home or close to it. The largest contributor to the climate crisis in the United States is transportation and UPS, with its 127,000 delivery vehicles, can have a big impact on the problem by zeroing out emissions from its ground fleet. To date, UPS has only committed to ordering 10,000 electric vehicles and doesn’t have a public plan to fully transition to electric vehicles.
The shareholder proposal calls on UPS to set “short, medium, and long-term science-based greenhouse gas emissions reduction targets” to achieve net-zero emissions by 2050.” The proposal was filed by Green Century Capital Management° along with the investment firms, Trillium Asset Management and Zevin Asset Management. Green Century is Environment America's affiliated environmentally responsible mutual fund company, and both organizations are members of The Public Interest Network, which operates and supports organizations committed to a shared vision of a better world and a strategic approach to social change.
“While the vote did not earn a majority, a significant number of UPS investors support setting science-based emissions targets,” continued Folger. “Corporations such as UPS have an obligation to take responsibility for their contribution to climate change. UPS has committed to carbon neutrality, but without clear targets to reduce pollution based on science, the company could continue to rely on fossil fuels for decades. To meet the urgency of the climate crisis, UPS should commit to 100% zero-emission purchases for its entire delivery fleet by 2030.”
Environment America is not a registered investment adviser. Environment America is not providing any investment advice to any recipient of this communication.
About Green Century Capital Management
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (the Funds). The Green Century Funds are a family of fossil fuel free, environmentally responsible, and diversified mutual funds in the United States. Green Century Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of March 31, 2022, the United Parcel Service, Inc. comprised 0.72%, 0.77%, and 0.00% of the Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
The percentage in favor was calculated by (i) dividing the number of votes in support of the proposal by (ii) the sum of the number of votes voted in support of and against the proposal. Abstentions and broker non-votes were not included in the calculation.
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