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SUSTAINABILITY
PUTTING OUR STAMP ON
A GREENER TOMORROW
2011 REPORT
2011 United States Postal Service — Key Performance Indicators
                                                           Units                         FY 2007           FY 2008           FY 2009          FY 2010          FY 2011

Revenue                                                    $Billions                       $74.78            $74.93            $68.09          $67.05           $65.71

Net profit (loss)                                          $Billions                       ($5.14)           ($2.81)           ($3.79)         ($8.50)          ($5.07)

Mail volume                                                Billion pieces                  212.23            202.70            176.74          170.57           167.93

Delivery points                                            Million points                  147.99            149.19            150.12          150.86           151.49

Career employees                                           # of employees                684,762           663,238           623,128          581,775          557,251

Post Offices, plants and administration                    # of facilities                 34,318            34,175            33,264          33,620           33,260

Greenhouse gas emissions1                                  Million MTC02e                      n/d             13.37            13.03           12.31            12.39

Facility energy use2                                       Trillion BTU                       30.1              30.7             25.7             23.8             25.1

Transportation fuel use3                                   Million GGE                      795.8              729.7            720.5           700.9            718.0

Solid waste recycled                                       Short tons                          n/d         288,211           219,649          221,655          215,879


2011 USPS Sustainability Target Snapshot                                                                     ▲ Achieving goal	           ● On-target	        ✖ Off-target

                                                                                                                                              Progress
Focus                        Objective and Target                                                                 Baseline       FY 2011      [% change           Status
                                                                                                                                              from baseline]

Greenhouse gas               Reduce greenhouse gas emissions (GHG) 20% by FY 2020                                     13.37
                                                                                                                                   12.39           (7.4%)            ●
emissions                    (million MTCO2).                                                                       FY 2008

                                                                                                                      33.72
Facility energy use          Reduce total facility energy use 30% by FY 2015 (trillion BTU).                                       25.08          (25.6%)            ●
                                                                                                                    FY 2003

                             Reduce total postal vehicle petroleum fuel use 20% by FY 2015                           140.67
                                                                                                                                  152.34             8.3%            ✖
                             (million GGE).                                                                         FY 2005

Transportation               Reduce total contract transportation petroleum fuel use 20% by                         580.13
                             FY 2020 (million GGE).                                                                               563.14           (2.9%)            ✖
fuel                                                                                                              FY 2008 4

                             Increase postal vehicle alternative fuel use 100% (i.e. 10% annually)                     0.94
                                                                                                                                    2.14          128.1%             ●
                             by FY 2015 (million GGE).                                                              FY 2005

Solid waste                                                                                                            53%
                             Divert 50% of solid waste from landfill to recycling by FY 2015.                                       46%            (6.8%)            ✖
diversion–recycling 5                                                                                               FY 2008

                                                                                                                      5,456
Water reduction              Reduce water use 10% by FY 2015 (million gallons).                                                    4,064          (25.5%)            ▲6
                                                                                                                    FY 2007

Environmentally              Increase the number of environmentally preferable products (EPP)                        8,006 7
                             available in the supplier catalog 50% by FY 2015.                                                     8,679            8.4 %            ✖
preferable products                                                                                                 FY 2010

Reduction of                                                                                                          508.4
                             Reduce spending on consumables 30% by FY 2020 ($ million).                                            314.9          (38.1%)            ▲
consumables                                                                                                         FY 2008

Notes: n/d: no historical data available                        results due to a leased fuel correction.                6
                                                                                                                          	Water use baseline in 2007 was estimated
1
  	Total GHG reported in million metric tons of carbon       4
                                                               	A typographical error in the 2010 Annual                   using expenditures and unit cost. FY 2010 and
   dioxide (CO2) equivalents (MTC02e).                          Sustainability Report (ASR) listed the contract            2011 water use was based on an extrapolation
                                                                transport goal baseline as FY 2005; the baseline is        from actual facility water use data. FY 2011
2
  	Total facility energy reported in British Thermal
                                                                FY 2008.                                                   extrapolation added more than 1,600 sites to
   Units (BTU).
                                                                                                                           improve our water use estimates.
3
  	Total transportation fuel use includes postal owned,
                                                             5
                                                               	Restated target as “divert solid waste from landfills
                                                                by 50%” from “reduce solid waste 50%” in
                                                                                                                        7
                                                                                                                          	Re-stated the EPP count baseline to 8,006 from
   General Services Administration (GSA) leased, and
                                                                previous reports to better reflect recycling progress      11,131 in the FY 2010 report due to changes in
   contract vehicle fuel use and is reported in Gasoline
                                                                as a percentage of total solid waste generation.           EPP counting practices.
   Gallon Equivalents (GGE). Restated 2007–2009
From the Postmaster General
Leaner, greener, smarter, faster
Good for the planet — and good for business


T
         he United States Postal Service delivers the mail to every
        home and business in America. It’s a big job — and it takes
        a big organization to do it.

         We have almost 557,000 employees, more than
213,000 vehicles and approximately 33,000 Post Offices and
other facilities. Together, they form America’s most essential
communications network.

This means our job isn’t over when the mail is delivered. The Postal
Service also has a special responsibility to make our organization as
sustainable as possible.

Our mantra is “leaner, greener, smarter, faster.” To achieve these
goals, we’re adjusting the size of our workforce and delivery network,
eliminating waste, reducing energy consumption and encouraging
our employees and customers to conserve. When the Postal Service
is more efficient, everyone benefits.

So please take a few moments to review our sustainability report.
As you’ll see, the Postal Service is a big organization, and we’re
working hard to reduce our impact on the planet we all share.
This is good for the environment, and it’s also good for business.




                                 Patrick R. Donahoe
                            Postmaster General and
                             Chief Executive Officer



                                                                         2011 USPS Annual Sustainability Report | iii
Message from the Chief Sustainability Officer

W
                ith plans for significant network            reducing facility energy use 30 percent by 2015
               re‑alignment, the Postal Service              continues to exceed our annual targets despite a slight
               is ushering in one of the most                increase in facility energy use this year.
               transformational periods in its history.
During this time of unprecedented change and                 We have been preparing a greenhouse gas emission
economic challenge, we have established targets to           inventory every year since 2007, and we now offer
lead our organization toward a more sustainable future.      USPS BlueEarth™, our new carbon accounting service
We measure, and will continue to publically report           so our business customers can determine their own
progress toward our goals. We continue to work on            carbon footprint for the mailing and shipping services
new strategies to reach our targets and define new and       the Postal Service provides.
better practices in support of our sustainability efforts.   We continue our efforts to reduce the growth in fuel
Our vision is to be a sustainability leader by building a    use by optimizing our delivery routes and efficient use
culture of conservation throughout the Postal Service.       of our vehicle fleet. However, the number of delivery
We will implement sustainable business practices by          points we serve continues to grow even during these
engaging our employees, customers, suppliers, mail           tough economic times. The net result is that delivery
service providers and our federal peers.                     growth is outpacing our ability to improve efficiency.

We have had many challenges and achievements                 In anticipation of an improved financial situation that
during 2011. Our recycling efforts had a banner year         will allow us to replace our existing fleet of vehicles,
with $24 million in revenue. Our progress toward             we continue to test alternative technologies. New
                                                             types of alternative fuel vehicles were deployed for
                                                             street testing, while some existing postal vehicles were
                                                             retrofitted with new technology to understand how it
                                                             may help improve our fleet efficiency.

                                                             In 2011, we embarked on a special project to
                                                             communicate “Green” directly to our customers with
                                                             our Go Green stamps. We have featured the stamps
                                                             throughout this report. The design team originally
                                                             planned a four-stamp panel, but the enthusiasm and
                                                             ideas for the project kept growing and eventually
                                                             resulted in a 16-stamp panel (see front cover). We hope
                                                             the excitement and pride experienced by our postal
                                                             design team signal a broader willingness on the part of
                                                             each of us to embrace more sustainable practices.




                                                             Thomas G. Day
                                                             Chief Sustainability Officer


iv | 2011 USPS Annual Sustainability Report
About this report

T
         he purpose of this report is to detail our      USPS is committed to transparency and continues to
        corporate sustainability efforts and practices   improve its data collection efforts used to measure and
        through 2011. We are now in the fourth year of   analyze our performance. Within this report, results
        our corporate sustainability commitment and      were calculated using actual information reported
have increased our interpretive content from previous    through internal databases or by estimation protocols.
years by presenting additional charts and graphs.        Data restatements or clarifications are footnoted on
                                                         the inside front cover. We clarified our solid waste
As a quick reference, a re-formatted performance         performance target as “diverting 50 percent of our
snapshot can be found on the inside front cover to       solid waste from landfill” and not as stated in our
summarize our key corporate indicators and report on     2010 report, to “reduce solid waste to landfill by
progress toward our corporate sustainability targets.    50 percent.” This more accurate description reflects
                                                         our recycling progress as a percentage of total solid
We also included a Corporate Highlights section
to review sustainability-focused events that             waste generation. We also restated the environmentally
                                                         preferable products counts to adjust for improvements
occurred during 2011. Our corporate sustainability
                                                         in product accounting.
performance targets and practices are reviewed in
the Environmental Stewardship, Services and Product      Lastly, we note our performance target baseline
Stewardship, and Supply Chain Stewardship sections.      year(s) established to measure our progress over time
Employee and community engagement are in the             may vary. This is due in part by mandated federal
People and Community section.                            regulatory baseline reporting year requirements for
                                                         transportation fuel use and energy, and to better align
This sustainability report is also provided online
                                                         our performance targets with those established by
at usps.com/green. We encourage the reader to
                                                         federal executive order.
explore our sustainability website, which offers
additional content and features. The Postal Service      Thank you for exploring this report and joining us on
is a dynamic enterprise and we welcome the reader
                                                         our sustainability journey.
to take a look at our Annual Report to Congress and
Comprehensive Statement on Postal Operations
at http://about.usps.com to learn more about our
business.

Our reporting conforms to version 3.0 of the
Global Reporting Initiative (GRI) sustainability
guidelines, the most widely respected international
reporting standard for public sustainability
performance disclosure. Our updated 2011 GRI
application statement and content index will be
provided upon receipt at http://usps.com/green.
Learn more about GRI reporting at
https://www.globalreporting.org.




                                                                                 2011 USPS Annual Sustainability Report | v
vi | 2011 USPS Annual Sustainability Report
Contents

Corporate highlights  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  	      1


Environmental stewardship .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  	           5

     Carbon footprint: GHG emissions  .  .  .  .  .  .  .  .  .  .  	                 5
     Energy conservation and management  .  .  .  .  .  .  .  . 	                     7
     Fleet and transportation management  .  .  .  .  .  .  .  .  	                10
     Waste reduction and recycling .  .  .  .  .  .  .  .  .  .  .  .  	           14
     Water conservation and management  .  .  .  .  .  .  .  .  	                  16
     Environmental management and
     regulatory compliance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  	      17


Services and product stewardship .  .  .  .  .  .  .  .  .  .  .  .  	             19


Supply chain stewardship .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	       21


People and community .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  	       23




                                                                                   2011 USPS Annual Sustainability Report | vii
From left, Deputy Postmaster General
Ronald Stroman discusses fuel
cell technology with Engineering
Systems Vice President Mike Amato
and Technology Innovation Manager
Han Dinh.




viii | 2011 USPS Annual Sustainability Report
Corporate highlights
Go Green stamps dedication ceremony                          “With these Go Green stamps, the Postal Service
                                                             is reminding us of the important steps we can take
                                                             each day to have an impact on the world around us,”
                                                             Jackson said.


                                                             Record performance turning trash to
                                                             cash — nets $24 million in revenue
                                                             Recycling not only helps the environment and reduces
                                                             waste, it generates revenue for the Postal Service —
                                                             $24.4 million in FY 2011.

                                                             We recycled over 215,000 tons of material in 2011. By
                                                             using our distribution network in new ways, improving
                                                             contract services and working with recycling vendors
EPA Administrator Lisa Jackson.                              to maximize revenue through economies of scale, we
                                                             are starting to see results.
Stamps reflect our American culture, icons and
lifestyles. As only the Postal Service can, we have          Strong recyclable commodity pricing during 2011
issued stamps on nearly every imaginable topic. Our          played a part in our record revenue earnings, but
Go Green stamps dedication ceremony was held                 the real story is a long-term strategy of continuous
at Thurgood Marshall Academy Public Charter High             improvement.
School in Washington, DC.

Dedicating officials were Deputy Postmaster General
                                                             USPS BlueEarth carbon accounting
Ron Stroman and Environmental Protection Agency              service to be released in 2012
(EPA) Administrator Lisa Jackson.
                                                             The new USPS BlueEarth carbon calculator developed
“We’re creating a culture of conservation at the Postal      in 2011 and scheduled for launch in 2012, provides
Service that will have a lasting impact in our workplace     business customers with a carbon accounting
and our communities,” Stroman said. “These Go Green          statement for their mailing and shipping activity.
stamps carry 16 simple, green messages that have the
power to help make the world a better place for us and       Postal Service business customers are increasingly
future generations.”                                         requesting information about the greenhouse gas
                                                             emissions associated with USPS services.

                                                             The calculator will use proprietary USPS methodology
                                                             to calculate greenhouse gas (GHG) emissions and
                                                             takes into consideration the type of shipping or mailing
                                                             product, size and weight, how it’s processed and
                                                             transported and the distance the package or envelope
                                                             travels.




DPMG Ronald Stroman, left, speaks with Moo Ho Bae, a
senior at the Thurgood Marshall Academy in Washington, DC.




                                                                                     2011 USPS Annual Sustainability Report | 1
Corporate highlights




                                                                  Climate Registry awards USPS
                                                                  gold status recognition for action
                                                                  on greenhouse gas emissions
                                                                  USPS was awarded Gold status by The Climate
                                                                  Registry for its leadership in reducing GHG emissions
                                                                  by more than 5 percent. The Postal Service is among
                                                                  the first of the Registry’s over 400 members and the
                                                                  first government agency to achieve the recognition.

                                                                  “Winning this Climate Registered Gold Award
The report is designed to provide our business                    exemplifies the Postal Service’s efforts to reduce
customers with accurate GHG data they can then use                greenhouse gases. Our sustainability efforts
to calculate their own carbon footprint. USPS BlueEarth           continue to be excellent examples of USPS as an
carbon accounting is a “no fee” service that will provide         environmentally responsible organization. Our call to
statements monthly, quarterly and annually.                       action is to be leaner, greener, faster and smarter,” said
                                                                  Postmaster General Pat Donahoe.
“The marketplace for carbon accounting is growing. We
see this as a significant step forward in offering more           “We’re doing our best to create a culture of
services to our customers” said Chief Sustainability              conservation throughout USPS. Our work to
Officer Tom Day.                                                  improve the environment demonstrates leadership
                                                                  in the adoption of sustainable business practices by
                                                                  employees, customers, suppliers, the mailing industry
                                                                  and federal government peers,” Day said.




USPS recognized for GHG reduction. From left, Joe Corbett, CFO and executive vice president; Louis Atkins, president,
National Association of Postal Supervisors; Frederic Rolando, president, National Association of Letter Carriers; PMG Pat
Donahoe; Tony Vegliante, chief Human Resources officer and executive vice president; Jeanette Dwyer, president, National
Rural Letter Carriers’ Association; Bob Rapoza, president, National Association of Postmasters of the United States; DPMG
Ron Stroman; John Hegarty, national president, National Postal Mail Handlers Union; Doug Tulino, vice president, Labor
Relations; Tom Day, chief sustainability officer; Mark Strong, president, National League of Postmasters of the United States;
and Megan Brennan, COO and executive vice president.




2 | 2011 USPS Annual Sustainability Report
Corporate highlights




The Climate Registry is a nonprofit collaboration among
North American states, provinces, territories and
                                                            USPS completes environmental
native sovereign nations, which sets consistent and         assessment under National
transparent standards to calculate, verify and publicly     Environmental Policy Act
report GHG emissions in a single registry.
                                                            The National Environmental Policy Act (NEPA) requires
Learn more about The Climate Registry at                    all federal agencies to implement policy goals to
http://www.theclimateregistry.org.                          protect, maintain and enhance the environment.
                                                            Knowing the importance of preparing environmental
DRIVE delivers results, innovation,                         assessments, the Postal Service announced plans
                                                            during 2011 to undertake a mail processing network
value and efficiency for USPS                               rationalization initiative to create a more streamlined
                                                            processing and distribution network using fewer
                                                            facilities to handle an existing and projected decline in
                                                            mail volumes.

                                                            To understand whether operational changes from this
                                                            initiative could impact the environment, we prepared an
                                                            assessment in accordance with established NEPA and
                                                            Postal Service regulations. The effort was started in
                                                            October 2011 and completed in early 2012. We found
                                                            that our network rationalization plans would have no
                                                            significant adverse impacts to physical and cultural
                                                            resources or quality of the environment.
The Postal Service began a management process
called DRIVE in 2011 to help it steer through an
unprecedented period of organizational transformation.      Energy awareness helps create a
DRIVE stands for Delivering Results, Innovation, Value      culture of conservation at USPS
and Efficiency.
                                                            “We’re changing our business model and looking to
It is a portfolio of strategic projects and initiatives     save money and resources,” USPS Deputy Postmaster
designed to help us achieve our ambitious                   General Ron Stroman told employees at an event
performance and financial goals. DRIVE represents the       in Washington, DC, kicking off National Energy
Postal Service’s commitment to maintain a viable and        Awareness Month. “This includes a commitment to
affordable delivery network for our nation now and into     sustainability and conserving energy,” Stroman said.
the future. The effort starts with increasing operational
efficiency through better resource management and           “We want to position the Postal Service as a
fostering sustainable practices. Sustainability, a core     sustainability leader by creating a culture of
corporate function within the DRIVE process, has            conservation that engages our employees, customers
set key initiatives, including ensuring federal, state      and suppliers,” said Chief Sustainability Officer Tom
and local compliance, reducing energy consumption           Day at the event.
and improving our sustainability culture by engaging
employees, customers and suppliers.                         Since 2003, the Postal Service has reduced total facility
                                                            energy use by over 25 percent, nearly the amount of
                                                            energy used by 90,000 average U.S. households in
                                                            a year. USPS also reduced energy intensity, which
                                                            is energy use per square foot of building space, by
                                                            22.4 percent in the same time period.




                                                                                     2011 USPS Annual Sustainability Report | 3
Corporate highlights




                                                           Supplier Sustainability Excellence
                                                           award
                                                           Each year the Postal Service recognizes supplier
                                                           achievements that enable us to reduce costs, enhance
                                                           services and provide us with sustainable business
                                                           solutions. Carolina Cabinet Company was the recipient
                                                           of our Supplier Sustainability Excellence Award for their
                                                           performance during 2011, which included the design,
                                                           manufacture and delivery of counters and casework
                                                           for USPS retail lobbies. The company created
                                                           modern designs using bamboo wood and other
                                                           eco‑friendly materials that enhance the retail customer
                                                           experience — and have resulted in lower costs for the
                                                           Postal Service. Carolina Cabinet Company also was
                                                           able to document its green manufacturing processes
                                                           that reflect its larger commitment to recycling and
                                                           energy-efficient lighting.

Postal Service leadership trainees
make the case for sustainability
The Postal Service’s leadership programs are designed
to develop high-performing leaders to meet the
changing needs of USPS into the future. They include
a demanding curriculum offered over a six-month
period, with classroom instruction and mentoring by
existing and future executives on key topics in business
finance, project management, leadership principles
and presentation skills. The programs culminate with a
business case presentation.

The 2011 classes were challenged with creating a
“sustainability business growth model” to improve
USPS waste reduction and recycling and to
develop strategies to engage employees in Green
Team initiatives. The participants used their new
understanding of sustainability to present a business
case of their findings before an executive review panel
chaired by Chief Sustainability Officer Tom Day.


     The average U.S. household uses
     95 million BTU a year. Learn more
     at http://buildingsdatabook.eren.
     doe.gov/.




4 | 2011 USPS Annual Sustainability Report
Environmental stewardship
W
             e define our approach to environmental     We are committed to transparency and third-party
            stewardship as taking responsibility for    verification and continue to strive for continuous
            our choices and having a willingness        improvement in our greenhouse gas (GHG) reporting.
            as a business to minimize our               Since 2007, we have prepared an annual, third-party
environmental impacts.                                  verified GHG emissions inventory to track our progress.

We believe practicing sustainable environmental         To report our GHG emissions, we are compliant with
stewardship can allow us to derive business value       established protocols set forth by The Climate Registry,
from environmental excellence and holds the             the International Post Corporation and under Federal
potential for decreasing our environmental impact,      Executive Order 13514.
increasing operational efficiencies, evaluating
alternatives and improving financial performance.       We track our emissions against established corporate
                                                        GHG targets. Our overall target is to reduce GHG
We have established policies for regulatory             emissions 20 percent by FY 2020 using FY 2008 as
conformance, pollution prevention and sustainable       a baseline.
practices to reduce our environmental footprint
over time. We review how our business may impact
the environment and have established targets and
reduction strategies for greenhouse gas emissions,
energy, transportation fuel use, waste reduction and
water conservation.

We measure progress toward these targets and
continually evaluate new ideas and best practices
to reach them. We don’t believe there is any
single or quick fix. Rather, the key is our corporate
commitment to practicing sustainability over time.
The Environmental Stewardship sections in this
report review our progress and strategies toward
achieving our targets.


Carbon footprint: GHG emissions
Taking steps now to reduce our carbon footprint
has become part of the Postal Service’s overall
environmental stewardship strategy.

We believe looking at our carbon footprint can offer
new opportunities to evaluate less carbon-intensive
practices and has the potential to drive greater
efficiencies and reduce costs in how we use our
natural resources.

We also believe it may inspire new customer-
driven products and services, such as our USPS
BlueEarth carbon accounting service.




                                                                                2011 USPS Annual Sustainability Report | 5
Environmental stewardship




   ✔✔ CARBON FOOTPRINT                                                   Total Greenhouse Gas Emissions
                                                                         Total greenhouse gas emissions
                                                                                                                          Target
   Target: Reduce GHG emissions 20% by FY 2020 from
      FY 2008 baseline (Scope 1, 2 and 3).
                                                                             2008      5.28                8.09                    13.37
   Progress: Total GHG emissions from FY 2008 to                         (Baseline)
      FY 2011 decreased overall by 7.4% or by almost
      985,000 metric tons. Total GHG emissions increased
      from FY 2010 to FY 2011 by 0.7% or 83,000 metric                       2009      5.03                8.01                    13.03
      tons.

      Our overall 7.4% decrease in GHG emissions is nearly
      equal to removing 200,000 passenger vehicles from                      2010      4.78                7.52                    12.31
      the road for a year.



   WHAT ARE CARBON DIOXIDE (CO2) EQUIVALENTS?                                2011      4.70                7.69                    12.39

   The CO2 equivalent is a metric that many
                                                                          0                   5                      10               15
   organizations use to report their total GHG emissions
                                                                                        Million Metric Tons of CO2 Equivalents
   in terms of CO2. Emissions from non CO2 GHG are
   compared to CO2 based on their global warming                            Scope 1 and 2                    Scope 3
   potential, with CO2 having a global warming
   potential of 1.
   Learn more about CO2 equivalents at the U.S. Environmental Protection Agency (EPA) website:
   http://www.epa.gov/cleanenergy/energy-resources/calculator.html.

                                                                         To better evaluate the full range of our GHG emissions,
     On Oct. 5, 2009, President                                          we also have set individual performance targets for our
     Obama signed Executive Order                                        Scope 1 and 2 emissions and Scope 3 emissions.
     13514 to establish an integrated                                    The Postal Service goal for Scope 1 and 2 GHG
     strategy toward sustainability                                      emissions is a 20 percent reduction by FY 2020, using
     in the federal government and                                       FY 2008 as a baseline. The Postal Service defines
                                                                         its Scope 1 and 2 GHG emissions boundaries as
     to make reductions in GHG
                                                                         Scope 1 direct GHG emissions from the combustion
     emissions a priority.                                               of fossil fuels in owned boilers, furnaces and vehicles,
                                                                         and Scope 2 indirect GHG emissions from steam and
     The executive order requires                                        electricity purchases.
     agencies to measure, manage
                                                                         In FY 2011, our Scope 1 and 2 GHG emissions
     and reduce GHG emissions                                            decreased 11 percent, or 583,000 metric tons since
     toward agency-defined targets.                                      baseline FY 2008.

     As a self-funded agency, the                                        The Postal Service goal for Scope 3 GHG emissions is
                                                                         a 20 percent reduction by FY 2020 using FY 2008 as a
     Postal Service voluntarily
                                                                         baseline. The Postal Service defines its Scope 3 GHG
     conforms to the executive order                                     emissions boundaries to include contract vehicle
     GHG reporting protocol.                                             fuel use, employee travel, contract waste disposal,
                                                                         transmission and distribution losses from electricity
                                                                         purchases, buildings with fully serviced leases and
                                                                         contracted waste disposal and wastewater treatment
                                                                         operations.


6 | 2011 USPS Annual Sustainability Report
Environmental stewardship




                                                           amount of energy it takes to power 270,000 homes
    The Postal Service is the largest                      a year. Because of our facility energy requirements,
    member of the International Post                       we have both a business need and an environmental
    Corporation (IPC), a cooperative                       responsibility for conservation and efficiency.
    association of 24 members in                           We have aggressive energy reduction targets and
    Europe, North America and the                          are making significant progress in lowering energy
                                                           consumption and cost.
    Asia Pacific Regions.
                                                           Facility energy reduction
    We participate in the IPC
                                                           We established two facility energy targets: to reduce
    sustainability efforts to coordinate                   both our total facility energy consumption and our
    postal industries around the globe                     facility energy intensity 30 percent by FY 2015 using
    in reducing their carbon footprint.                    FY 2003 as the baseline. We continued to make
                                                           progress toward our FY 2015 targets even with a slight
    We report our carbon emission                          increase in facility energy use during 2011. As a federal
                                                           agency, the Postal Service has aligned our facility
    inventory to the IPC each
                                                           energy targets with the Energy Independence and
    calendar year using the IPC                            Security Act of 2007.
    Environmental Measuring and
                                                           How does an organization with hundreds of thousands
    Monitoring System protocol.                            of employees and tens of thousands of buildings go
                                                           about reducing energy? No one-size-fits-all technology
In FY 2011, Scope 3 GHG emissions increased over           or approach works for such a large and diverse
FY 2010 but have demonstrated an overall decreasing        business as the Postal Service.
trend by 5 percent or 402,000 metric tons since
                                                           Our energy management practices include improving
baseline FY 2008.
                                                           our understanding of how we use energy so we can
There are many factors that contribute to GHG              make informed decisions, investing in our buildings
emissions. Progress toward reducing our GHG                with energy efficient technology and fostering a
footprint starts with understanding what segments          conservation culture.
of our operations impact GHG emissions and then
developing goals and practices toward reducing them.

The Postal Service has set goals for energy and
vehicle performance. In fact, the Postal Service is the
first federal agency to add energy and fuel reduction
metrics to our managers’ national performance
assessment score. Learn more about GHG
emissions at the U.S. EPA website:
http://www.epa.gov/greeningepa/ghg/.


Energy Conservation and Management
The Postal Service’s inventory of over 33,000 buildings,
totaling 280 million square feet of floor space, is the
largest retail network in the country. It takes a lot of
energy to run all those facilities.

In FY 2011, our energy costs were over $577 million,
as we consumed 25 trillion BTU. That is nearly the



                                                                                    2011 USPS Annual Sustainability Report | 7
Environmental stewardship




                                                                     Total facility energy use
                                                                   Total Facility Energy Use
    ✔✔ FACILITY ENERGY USE                                                                          Target
                                                                        2003                 33.7
    Target: Reduce total facility energy consumption (BTU)
       and energy-use intensity (BTU/sf of building space)              2004                 34.6
       30% by FY 2015 from a FY 2003 baseline.                          2005                 37.3
    Progress: Total facility energy consumption was                     2006                 36.4
       reduced overall from FY 2003 to FY 2011 by 8.6 trillion
                                                                        2007                 30.1
       BTU or 25.6%. Total facility energy use increased from
       FY 2010 to FY 2011 by 5.4% or 1.3 trillion BTU. Total            2008                 30.7
       facility energy use intensity (BTU/sf) was reduced
       22.4% since FY 2003.
                                                                        2009                 25.7
                                                                        2010                 23.8
       The Postal Service total facility energy use reduction of
       25% is nearly equivalent to the amount of energy used            2011                 25.1
       by 90,000 average U.S. households in a year.                            0     10        20              30   40       50
                                                                                                Trillion BTU


Energy measurement and auditing efforts have                       We continued to employ rigorous technical and
driven development of energy management systems                    financial evaluation processes to review our buildings
to better quantify and evaluate our energy use. Our                for energy improvement, capital investment funding and
Utility Management System now provides data on                     energy impacting repair and alterations projects.
approximately 75 percent of USPS utility consumption.
Utility cost and consumption data are used along with              Two examples highlight our facility energy investment
our Enterprise Energy Management System data,                      achievements during 2011 are:
which helps us measure, monitor and compare facility               ■■    The 392,000-square-foot Detroit network distribution
energy use.                                                              center was upgraded with advanced lighting and
USPS continually checks its energy performance                           heating/cooling systems. The change saves nearly
tracking methods. After submitting the FY 2011                           $470,000 and 34.8 billion BTU in energy, almost
Annual GHG and Sustainability Data Report to the                         equal to 350 U.S. households annually.
federal government, our further review discovered                        The building was retrofitted with energy-efficient
inconsistencies in the way heating fuels are identified in               fluorescent lighting. Also, photo sensors enhance the
source data systems. In FY 2012, we are evaluating the                   work environment with natural light and occupancy
effect of accounting for the discrepancy. If a resulting                 sensors eliminate unnecessary lighting.
change in total BTU consumed or energy intensity                         The boiler and chiller plant, along with dozens of air
in BTU/GSF is significant, USPS will restate this                        handler units, were upgraded to avoid unnecessary
performance in the 2012 Annual Sustainability Report.                    heating and cooling, saving energy and water. Digital
                                                                         controls automatically program thermostats and
This information, along with data from the completion
                                                                         allow outside air intake, providing “free” cooling
of over 350 energy audits in 2011, enable us to better
                                                                         during temperate weather. Large fans were installed
target energy investment projects and facility energy
                                                                         to provide better air mixing. Water-efficient, low-flow
management opportunities.
                                                                         aerators on lavatory faucets save water and heating
Facility energy impacting projects totaled over                          costs.
1,000 by the end of 2011, producing an impressive                  ■■    The Palatine, IL, Processing and Distribution
achievement — an estimated energy reduction of
                                                                         Center is saving $510,000 annually due to lighting
1 trillion BTU per year. That is expected to result in
                                                                         and heating/cooling system upgrades. The
annual savings of $22 million.
                                                                         591,000-square-foot facility yielded annual savings
                                                                         of nearly 25.2 billion BTU in energy, equal to
                                                                         250 U.S. households annually.


8 | 2011 USPS Annual Sustainability Report
Environmental stewardship




  Computerized lighting controls and energy efficient       21,000 notebook computers and 85,000 printers. Our
  fluorescent fixtures were installed throughout the        network printers have the default set to duplex printing
  workroom floor. Occupancy sensors were put in             (front and back). Paper is made from a minimum
  administrative and support areas to eliminate lighting    30 percent post-consumer recycled content and the
  unoccupied space. HVAC upgrades included                  Postal Service has an established recycling program
  digital controls to improve outside air intake and        for ink and toner cartridges. IT has consolidated the
  automatically regulate thermostats.                       purchasing options for printer, copier, fax machine, and
  New variable speed drive fans and pumps run only          multifunctional device to better manage equipment
  when needed, avoiding unnecessary energy use.             quality and network support services. Power-saving
  These improvements reduce energy and water                mode and energy-efficient monitors have been
  evaporation loss during cooling tower operations.         incorporated into employee computer workstations.

As we look to the future, continued capital investment      These features all act to reduce energy and the
in energy project funding must take into account            purchase of consumables, key Postal Service
our current financial constraints. Consideration of         performance targets. The widespread use of online
alternative financing, including exploring renewable        web and video conferencing services continues to
energy opportunities, where cost effective, may offer       accelerate internal communications while reducing
competitive financial and environmental benefits.           employee travel and our carbon footprint. The Postal
                                                            Service has become the second largest user of Cisco
Fostering a conservation culture remains key to our         Unified MeetingPlace™ services, with an average of
corporate energy management effort. By purposefully         10,000,000 minutes per month.
integrating our energy data collection tools to specific
facility energy opportunities, along with educating
and promoting employee energy awareness, we strive
to continuously drive behavioral change within our
organization.

Data Center and IT Network Services
Data centers may consume 10 to 100 times more
power than a typical office building. Over the past
several years, the Postal Service has consolidated its
data center operations into two locations: Eagan, MN,
and San Mateo, CA. We have begun benchmarking
data center operations by measuring power usage
effectiveness (PUE), which characterizes overall data
center efficiency.

The PUE is becoming the standard performance
benchmark in data center energy management. It will
help manage our data center energy footprint and
environmental impacts along with the ever increasing
need to upgrade information technology services.
We have implemented a number of energy efficiency
practices, including virtualization, or running different
operating systems on the same hardware, as well as
improvements to cooling, heating and temperature
control systems.

IT services group continues to introduce green network
strategies. The Postal Service network supports
and maintains nearly 125,000 desktop computers,


                                                                                    2011 USPS Annual Sustainability Report | 9
Environmental stewardship




Fleet and transportation management                          Delivery route optimization:
                                                             USPS IT technology at work
                                                             How we go about traveling to our daily delivery
                                                             destinations makes a difference in the amount of fuel
                                                             we use and overall emissions we produce. We have
                                                             developed an advanced innovative web tool called
                                                             WebCOR to help optimize carrier delivery routes.

                                                             The software provides computer modeling to configure
                                                             carrier delivery routes to determine safe and more
                                                             efficient lines of travel. The program makes objective
                                                             decisions based on data and mail volumes to reduce
                                                             unnecessary travel and mileage. Benefits include
                                                             improved safety and a reduction in fuel and energy. By
                                                             using optimization in FY 2011, we eliminated more than
To maintain our delivery commitment to the nation, the       6,800 delivery routes, while at the same time seeing
Postal Service operates the largest civilian vehicle fleet   growth in new city and rural delivery points by over
in the United States.                                        735,000.
                                                                                                    WebCOR
This vast delivery infrastructure offers both challenges                                            software
and opportunities in vehicle performance. Vehicle                                                   helps create
emissions are a primary contributor of greenhouse                                                   more efficient
gases and also impact air quality. Vehicle maintenance                                              delivery
services may generate regulated wastes and fueling                                                  routes.
operations that can impact land and water resources.

USPS has established vehicle fleet performance targets
to reduce petroleum consumption for our postal-
owned fleet and contract transportation partners. We
also have an established target to increase the use of
alternate fuels. As a federal agency, we are required to
report petroleum use reduction efforts and alternative
fuel utilization to the U.S. Department of Energy
annually in accordance with the Energy Policy Act
                                                             The postal-owned vehicle fleet
of 2005.                                                     The fleet of vehicles we own is used mainly to deliver
                                                             mail from local Post Offices to the communities we
Reducing overall petroleum consumption continues             serve. For two decades, the core of our vehicle fleet
to be a challenge, because the total number of annual        has been the long-life vehicle (LLV), which traveled
delivery points that our vehicles must travel to serve       an average of about 18.5 miles per day in FY 2011. It
our customers continues to grow. Our present strategy        presently makes up the largest portion of our delivery
is to reduce petroleum consumption by optimizing             fleet.
delivery routes and vehicle fleet size. To reduce the
environmental impact of our vehicle maintenance              The LLV is custom designed for right-hand-side driving
operations, we have established polices and best             and made to withstand rigorous driving conditions of
practices, such as pollution prevention and having           up to 500 stops and starts a day. Our current plan
closed-loop contract services to reuse and minimize          is to sustain our existing LLV fleet through continued
waste generation.                                            maintenance while we decide on longer-term fleet
                                                             options.




10 | 2011 USPS Annual Sustainability Report
Environmental stewardship




✔✔ POSTAL-OWNED PETROLEUM FUEL USE                              Postal-owned vehicle fleet snapshot
Target: Reduce postal vehicle petroleum fuel use 20%
                                                                                                                         Total Rural
   by FY 2015 from FY 2005 baseline.                                                        Total
                                                                                                         Total Petroleum and City
                                                                              Vehicle       Miles
                                                                  Year                                   Consumption     Delivery
Progress: Postal vehicle petroleum fuel use increased                         Fleet Size    Traveled
                                                                                                         (in GGE)        Points
   from FY 2005 to FY 2011 by 8.3% or 11.7 million GGE.                                     (Billions)
                                                                                                                         (Millions)
   Postal vehicle petroleum fuel use increased from FY
   2010 to FY 2011 by 4.6% or 6.8 million GGE.                   2008          221,047        1.269           146.8           126.38

  The Postal Service added over 735,000 new city and             2009          218,687        1.249           145.4           127.38
  rural delivery points during FY 2011.
                                                                 2010          215,625        1.258           145.6           128.08

   WHAT IS A GGE?                                                2011          213,881        1.292           152.3           128.82

   Gasoline gallon equivalent or GGE is a factor that           Postal-owned vehicle fleet size trends lower through delivery
   describes the number of gallons of a fuel, other than        route optimization initiatives, while rural and city delivery points
   gasoline, which has the equivalent amount of energy          the Postal Service must service year to year continues to
   as 1 gallon of gasoline. It is commonly used when            increase.
   comparing alternative fuel, such as ethanol usage to
   gasoline.
   Learn more about fuel reduction planning and GGE at the U.S. Department of Energy website: http://www.afdc.energy.gov/afdc.

Our network optimization efforts have increased                  Fuel market volatility risk remains a key concern
delivery efficiency, which has lowered the overall               to providing affordable mail service, since the
growth rate of petroleum fuel use. We track and report           Postal Service does not pass on fuel surcharges
our postal-owned fleet petroleum fuel use against an             to customers. Alternative fuel technology is one
established target.                                              strategy to manage this risk. Our use of alternative fuel
                                                                 technology will adjust as the marketplace for alternative
Through network optimization, our vehicle fleet size             fuel technology continues to evolve. Our performance
was reduced by 1,700 vehicles during FY 2011 by                  target tracks total alternative fuel use across the full
eliminating 6,800 delivery routes. Despite that reduction        spectrum of alternative fuel-capable vehicles in our
in vehicles, our postal-owned vehicle fleet increased            fleet.
its petroleum fuel consumption by 6.8 million gasoline
                                                                 2011 Alternative fuel-capable vehicle fleet
gallon equivalent (GGE) compared to FY 2010. That
                                                                 snapshot
change was due in large part to growth in new rural
and city delivery points.                                          Type                                                No. of AFV
                                                                   Ethanol (E85)/gasoline                                39,754
Alternative fuel vehicles
We have been testing and operating alternative fuel                Compressed Natural Gas (CNG)                             227
vehicles for decades. We currently have vehicles                   Electric                                                  35
capable of running on compressed natural gas,
                                                                   Propane                                                   30
ethanol, electric, propane and biodiesel. Delivery
vehicles that can run on ethanol, or E85, make up the              Conventional hybrid                                      910
largest part of our alternative fuel fleet due to that fuel’s
                                                                   Total AFV 2011                                        40,956
accessibility.
                                                                   USPS operates a diverse fleet of alternative-fuel
The heavy use demands on our fleet vehicles are                    vehicles and has been in the forefront of testing
a challenge to alternative fuel vehicle technology                 alternative-fuel vehicle technology.
in terms of environmental performance, reliability,
available support infrastructure and necessary capital
investment.



                                                                                                 2011 USPS Annual Sustainability Report | 11
Environmental stewardship




                                                               Alternative Fuel Vehicle Use
                                                                Alternative fuel vehicle use
     ✔✔ POSTAL-OWNED ALTERNATIVE                                                                                 Target
           FUEL USE                                                             0.94
                                                                   2005
                                                               (Baseline)
     Target: Increase total alternative fuel use                              0.76
                                                                   2006
        100% (10% annually) by FY 2015 from
        FY 2005 baseline.                                                      0.80
                                                                   2007
     Progress: Total alternative fuel use
                                                                   2008                         1.52
        increased from FY 2005 to FY 2011 by
        128% or 1.2 million GGE. Alternative fuel use                                                   2.01
                                                                   2009
        decreased from FY 2010 to FY 2011 by
        2% or 43,000 GGE.                                                                               2.19
                                                                   2010
        Postal-owned alternative fuel use is on target                                                  2.14
                                                                   2011
        to reach our FY 2015 goal.
                                                                        0.0                1.0                     2.0          3.0
                                                                                     Million Gasoline Gallon Equivalent (GGE)



Highlights in our alternative fuel fleet operations in             operational efficiency of our delivery fleet, the Postal
2011 include:                                                      Service solicited suppliers to submit proposals to
                                                                   repower the LLV drive-train. Solicitations were issued
Electric LLV conversion. Contract awards were                      for both gasoline and diesel repowered drive-train
issued to five electric vehicle suppliers to convert               technology. Contract awards were issued during 2011.
five gasoline-powered LLVs to all-electric vehicles.               The repowered drive-train vehicles are scheduled to be
Each supplier offered a distinct technology approach,              deployed in 2012 in the Washington, DC, metropolitan
providing the Postal Service an opportunity to evaluate            area for testing and fuel efficiency performance.
current state-of-the-art technology. During 2011,
after extensive testing at a Department of Energy
(DOE) facility, the five all-electric drive train LLVs were
delivered to USPS for deployment at delivery locations
in the Washington, DC, metropolitan area.

Electric 2-ton vehicle testing. We began testing
10 Navistar eStar 2-ton electric step vans in 2011. (See
back cover.) The vehicles are rated for up to 100 miles
on a single charge and can be fully recharged in six to
eight hours.

The program is part of the America Recovery and
Reinvestment Act funded through DOE. The fully
electric vehicles are being field tested in three locations:
Los Angeles, CA; Manhattan, NY; and Fairfax, VA; over
a multi-year period to collect data on fuel efficiency,
energy use, maintenance and vehicle utilization.

Repowering LLVs. Several advancements in
automotive technology have occurred since the LLV
was introduced into the postal fleet in 1987. In an effort
to determine how this technology could improve the




12 | 2011 USPS Annual Sustainability Report
Environmental stewardship




Contract transportation partners                            Vehicle fleet maintenance operations practicing
Our contract transportation partners fleet includes         pollution prevention
highway vehicles, employee-owned vehicles used              We continue to employ greener practices at our vehicle
to deliver mail and transportation by rail, ship and        fleet maintenance operations by implementing pollution
air. Contract operators must transport mail between         prevention strategies. Used motor oil, transmission fluid
processing facilities and regionally. They are a            and antifreeze generated at our vehicle maintenance
significant contributor to our total petroleum use          facilities are picked up for recycling by an authorized
and currently represent over 40 percent of our GHG          contractor.
inventory. Our present strategy is to achieve reductions
in petroleum fuel use by our contract transportation        We purchase re-refined motor oil and recycled
vehicle operations through continued optimization           antifreeze to run our vehicles. Up to 85 percent less
of our network. Our performance target takes into           energy is consumed in the re-refining of used oil
account total petroleum fuel use from a variety of          compared to traditional refining of crude oil, so its use
sources that provide contract transportation services.      reduces our carbon footprint. A newly signed contract
                                                            also will include the purchase of re-refined automatic
                                                            transmission fluid for our vehicles. We have found
    Contract transportation fuel                            purchasing recycled product is of the same or greater
    is a significant contribution to                        quality as new products, and through economies of
                                                            scale and innovative contracting, pricing is the same or
    total fleet fuel use. Contract                          below the cost of new products.
    transportation provides regional
                                                            We also use re-treaded tires in our vehicle fleet. The
    network service and may travel
                                                            Postal Service has a national contract service to re-
    longer distances. Optimization                          tread used tires that our fleet generates. Retreads are
    and network operation                                   not only cost effective, but they are also dependable,
    efficiencies are key strategies to                      reliable and safe.

    minimizing the growth of contract
    transportation fuel use.

                                                           Total fuel vehicle use
                                                           Total Vehicle Fuel Use



   ✔✔ CONTRACT TRANSPORTATION                              2008                      581.4                        148.3       729.7
       FUEL USE

   Target: Reduce contract transportation
     petroleum fuel use 20% by FY 2020 from                2009                      573.2                        147.4       720.5
     FY 2008 baseline.

   Progress: Contract transportation petroleum
     use decreased from FY 2008 to FY 2011                 2010                      553.2                        147.8       700.9
     by 2.9% or 17 million GGE. Contract
     transportation increased from FY 2010 to
     FY 2011 by 1.9% or 10.4 million GGE.
                                                           2011                      563.5                        154.5       718.0
     Contract transportation fuel use represents
     over 40% of our GHG inventory.
                                                                  0    100   200       300      400      500      600   700       800
                                                                             Million Gasoline Gallon Equivalent (GGE)

                                                           Fuel use:    Contract and GSA-Leased Transport          Postal-Owned




                                                                                           2011 USPS Annual Sustainability Report | 13
Environmental stewardship




                                                            Reduce and re-use
                                                            A large component of our waste stream is Standard
                                                            Mail bulk-priced mail pieces, such as printed matter,
                                                            flyers, circulars and advertising that can’t be forwarded
                                                            or returned.

                                                            Reducing the amount of undeliverable Standard Mail
                                                            that enters our network is key, and in 2008 USPS
                                                            created the “Move Update” standard, which requires
                                                            large mailers to more frequently match their address
                                                            records with USPS change-of-address records. We
                                                            extended “Move Update” to Standard Mail, which has
                                                            further decreased the amount of undeliverable mail
                                                            entering the system — another important factor in
                                                            reducing overall waste generation.

                                                            Mail transport equipment. Sorting and moving
                                                            mail requires an array of rolling equipment, pallets,
                                                            containers and trays all commonly referred to as mail
Waste reduction and recycling
Waste reduction and recycling have significant
environmental benefits. Recycling keeps waste out of             ✔✔ SOLID WASTE AND RECYCLING
landfills and avoids landfill fees. It’s less energy and         Target: Divert solid waste sent to landfill 50% by
water intensive, decreases GHG and conserves natural               FY 2015 from FY 2008 baseline.
resources.
                                                                 Progress: Recycled 46% of solid waste in FY 2011
Simply put, recycling helps sustain the environment.               or more than 215,000 tons of solid waste recycled
We have been active participants in EPA’s WasteWise                and sent 252,000 tons to landfill.
program, which supports and assists businesses in
                                                                   The Postal Service generated over $24.4 million in
working toward eliminating waste disposal costs. In                recycling revenue during 2011.
FY 2011, we recycled over 215,000 tons of material.
This reduced our carbon footprint, and more
importantly, kept these recyclables out of landfills.          2011 Material Recycling Composition
                                                                          Metal
We have put significant effort into improving our                                               Tires
recycling, and believe we have developed a long-                      Plastic
term sustainable recycling business model for our
organization.

The next several years will prove very challenging
as mail volume continues to drop and our network,                      Mixed
which underpins our recycling efforts, undergoes                       Recyclables
consolidation and re-alignment. In meeting this                                                   Mixed Paper
challenge, we will make the necessary adjustments to
our recycling business model to stay on track.                          Cardboard

We established a zero waste proof of concept over the
last several years and set an overall target for reducing
our waste. Our approach is to focus on efforts to
reduce, reuse and recycle our waste.



14 | 2011 USPS Annual Sustainability Report
Environmental stewardship




transport equipment, or MTE. The containers we use          launched in 2009. More than 10,000 locations now
are designed for durability and extending their life even   offer customers lobby mail recycling. This effort
longer can reduce replacement and waste disposal            continues to reduce waste being sent to landfills.
costs.
                                                            Regulated waste management and recycling. We
We have established guidelines to make better re‑use        have been active in reducing and better managing
of our mail transportation equipment at Post Offices        regulated wastes such as electronic waste or e-waste,
and processing centers. To redistribute, repair and         and universal waste (i.e., batteries), through value-
replace our MTE, the Postal Service operates a              based recycling contracting services and pollution
network of mail transportation equipment service            prevention strategies. These approaches not only
centers across the country.                                 reduce risk, but also drive efficiencies that benefit our
                                                            bottom line. By continuous efforts to improve these
In FY 2011, our service centers recycled over               contracting tools, we are starting to see results.
5,000 tons of MTE that could not be repaired or
reused, resulting in $1.7 million in recycling revenue.     Electronic waste. We participate in a federal
                                                            working group sponsored by the Office of the Federal
Recycling and value-based contracting — reverse             Environmental Executive and have established e-waste
logistics                                                   stewardship practices.
By using our distribution network in new ways, such
                                                            E-waste may contain heavy metals like lead, cadmium
as reverse logistics, we can increase recycling tonnage
                                                            and mercury that are harmful to human health and
through economies of scale.
                                                            the environment. To properly manage e-waste,
We can use value-based recycling contracts that             we developed three core principles: secure data
include revenue sharing, along with performance             destruction, recycle and reuse, and avoid landfill waste.
tracking and reporting.
                                                            A centerpiece of our effort has been to use our existing
This is central to the Postal Service sustainability        transportation network to centralize collection of
mission. We know that if it isn’t measured, it isn’t        e-waste. Using secure mail transport containers, we
managed. To reduce costs and increase revenue,              ship e-waste using regular equipment return routes
we backhaul recyclables such as mixed paper from            from processing centers to our materials distribution
local Postal Offices during daily return trips to our       center in Topeka, KS.
distribution centers.

This allows facilities that aren’t geographically near
each other to cost-effectively participate in large-scale
recycling. At the same time, it avoids solid-waste
disposal costs and landfilling.

Also, by using our existing transportation network, we
avoid fees from recycling vendors who would make
costly stops at each local office. In FY 2011, more than
12,000 facilities participated in the backhaul recycling
program, recycling more than 215,000 tons of mixed
paper, cardboard, plastic and scrap metal — and
earning $24.4 million in recycling revenue.

We also encourage customers to recycle by asking
them to discard unwanted mail in Post Office lobby
recycling bins, instead of our trash cans. Our “Read,
Respond and Recycle” mail lobby campaign was




                                                                                    2011 USPS Annual Sustainability Report | 15
Environmental stewardship




This allows us to consolidate e-waste from around the
country. By taking advantage of economies of scale,
                                                            Water conservation and management
we have been able to participate in no cost e-waste         Stewardship of our water resources is essential to
collection and revenue-sharing contract partnerships.       our environment and health. The energy needed to
In FY 2011, our Topeka materials distribution center        heat, move and treat water also impacts two of our
recycled over 700 tons of e-waste, resulting in             key performance targets: energy use and our carbon
$345,000 in revenue sharing.                                footprint. Our business is not water-use intensive,
                                                            but we can do our part where it counts. Our water
Lithium ion batteries. The Postal Service awarded
                                                            stewardship management efforts are designed to
a revenue-sharing contract for recycling lithium ion
                                                            reduce water consumption and minimize our impact on
batteries used for our Intelligent Mail scanning devices.
                                                            water quality.
More than 350,000 of these handheld devices have
                                                            Most of the water we use is for restrooms, irrigation
been widely deployed throughout USPS to capture
                                                            and cooling and maintenance activities to support our
and share information about each mail piece as it
                                                            facilities. We are taking the first steps to set targets and
moves through our system. Each lithium ion battery is
                                                            better understand our water footprint and consumption
rechargeable and has a two-year life span.
                                                            patterns. We estimated our 2008 and 2009 water
We expanded this effort to include all spent lithium        use by using expenditures and unit cost. Beginning
ion batteries used in laptop computers, power tools,        in 2010, we expanded the data collection capabilities
cameras, two-way radios and other devices. By using         of our national utility management system to include
our network, the Postal Service has increased recycling     actual facility water use data. In 2011, we added over
of these batteries from 1,200 pounds in 2010 to             1,600 facilities into the system to improve our water use
almost 10,000 pounds in 2011, resulting in more than        estimates.
$2,500 in revenue sharing.

Tritium exit signs. USPS has been actively replacing            ✔✔ WATER
tritium signs throughout our network. Although tritium
exit signs pose little or no threat to public health,           Target: Reduce water use 10% by FY 2020 from
the Nuclear Regulatory Commission requires proper                 FY 2007 baseline.
recordkeeping and disposal of all radioactive materials.
                                                                Progress: Water use was reduced from FY 2007 to
Our reclamation contract has been active since 2009               FY 2011 by 25.5%, or 1.4 billion gallons. Water
and has resulted in recycling several hundred of these            consumption decreased from FY 2010 to FY 2011
signs within our organization. Learn more about NRC               by 17% or 819 million gallons.
tritium exit sign disposal at http://www.nrc.gov/
                                                                USPS has over 33,000 facilities across our entire
reading-rm/doc-collections/fact-sheets/fs-tritium.html/.
                                                                 network, so collecting water-use data is a
                                                                 challenge. However, we continue to work to
                                                                 measure our water footprint.




16 | 2011 USPS Annual Sustainability Report
Environmental stewardship




                                                            Environmental management and
                                                            regulatory compliance
                                                            Each year the Postal Service performs environmental
                                                            reviews at our facilities to assist in maintaining
                                                            compliance with regulations, minimize risk and uphold
                                                            best practices. In 2011, we conducted over 400 facility
                                                            environmental reviews and third-party tank inspections
                                                            at over 150 locations.

                                                            Our review program focuses on facilities with regulated
                                                            activities, such as water and air permits, hazardous
                                                            waste handling and underground storage tanks and
                                                            fueling locations, which are more likely to be at risk of
                                                            non-compliance. The program conducts regulatory
                                                            reviews at these facilities and evaluates non-regulatory
                                                            deficiencies that could lead to non-compliance.
                                                            These proactive environmental reviews benefit the
We have taken a more direct approach to reducing our        organization by identifying and correcting deficiencies
impact on water quality. According to the EPA, nonpoint     and instilling best practices to maintain compliance.
source pollution remains the nation’s largest source
of water degradation. This type of pollution occurs
from rainfall and snowmelt, or when irrigation picks up
pollutants and deposits them into bodies of water. It
is less noticeable and tends to happen slowly, so it is
more difficult to control.

Runoff from postal fleet vehicle washing may negatively
affect water quality. It may contain detergents, grit,
sediments and vehicle fluids that can be released
into the environment. To mitigate these impacts, our
centralized contract services require all vehicle washing
contractors to use wash water recovery and waste
water disposal as part of their service.

Learn more about nonpoint source
pollution at the U.S. EPA website:
http://water.epa.gov/polwaste/nps/outreach/point1.cfm.




                                                                                   2011 USPS Annual Sustainability Report | 17
The
                                                      several dollars per thousand          “Those are real changes in terms
                                                      on the price. And we’re always        of improved forest management
                                                      working to maximize delivery          as well as continued growth in
    Business Case                                     efficiencies.”                        recycling post-consumer fibers.”


    for Green                                         Says Brophy: “Incorporating
                                                      green-friendly marketing practices
                                                      helps us align our business
                                                                                            Technology keeps improving
                                                                                            Jerry Cerasale, senior vice
    Adapted from Deliver Magazine. See full article   practices with our mission, which     president for government
    at: www.delivermagazine.com. Printed with         is to serve the consumer interest.”   affairs for the Direct Marketing
    permission.                                                                             Association (DMA), says that




    I
       t’s not always easy going                      The forest for the trees              a majority of national print
       green — but many marketers                                                           companies purchase certified
                                                      Consumer Reports isn’t alone          paper and soy-based ink.
       are finding that the benefits of
                                                      in making green a focus of its
       eco-friendly messaging can be
                                                      business efforts. Currently,          “There have been vast
    well worth the effort.
                                                      5,000 businesses in the               improvements in the technology
    As the director of publishing                     United States and Canada              in making soy-based ink,”
    operations for Consumer Reports                   are certified by the nonprofit        Cerasale says. “I’d say that every
    magazine, Meta Brophy                                                                           marketer I know uses it.”
    has witnessed firsthand
                                                                                                     Indeed, the biggest
    the impact of eco-
                                                                                                     leap has occurred
    friendly marketing on a
                                                                                                     among printers.
    business’s bottom line.
                                                                                                     According to Cerasale,
    In recent years, Brophy                                                                          they are 100-percent
    and her colleagues                                                                               environmentally
    have worked diligently                                                                           conscious. “They are
    to incorporate green                                                                             trimming paper sizes
    principles into the                                                                              the best they can and
    publication’s marketing                                                                          recycling every bit of
    practices. For instance,                                                                         scrap in their plant,” he
    they have become more                                                                            reports. “If there is a bad
    conscientious about paper stock,                  Forest Stewardship Council            run, they recycle that paper. It’s a
    mailing frequency, envelopes and                  (FSC), a non-governmental             win-win for them. They’re greener
    nearly every other element of                     advocate for responsible forest       and it saves them money.”
    the magazine’s mail advertising.                  management, meaning they              Marketers are also are doing a
    The payoff, she says, has been                    follow FSC guidelines to ensure       better job in reducing the number
    tremendous.                                       environmentally sound forestry        of mailings that are duplicates
                                                      practices.                            and/or undeliverable as
    “We have saved hundreds of
    thousands of dollars over the last                That number includes some of          addressed. In addition, Cerasale
    six-plus years by implementing                    the largest companies in the          says an increasing number have
    new, and changing existing,                       world, including many direct          begun to reduce the amount of
    programs,” says Brophy. “We’ve                    marketing giants, according to Ian    paper used in packaging.
    switched to lighter weight papers.                Hanna, U.S. director of business      But there is still work to be done.
    We produce more open-window                       development for the FSC.              Cerasale said the DMA would
    envelopes, thereby eliminating
                                                      “This has taken the market to a       like to see all envelopes and
    the need for window patch
                                                      place of ubiquity,” Hanna says.       stationery mail stamped with the
    material — which can save
                                                                                            logo “Please Recycle.”



18 | 2011 USPS Annual Sustainability Report
Services and product stewardship

F
        rom offering a semipostal stamp to support         We make it easy for customers to do business with
       wildlife conservation that has raised more          us from the comfort of their homes or offices. Almost
       than $620,000 to delivering on services             anything you can do at the Post Office, you can do
       and products that support environmental             online at USPS.com, from purchasing postage-paid
stewardship, we are actively helping the environment.      shipping labels and scheduling free package pickups,
                                                           to changing your address or putting your mail on
                                                           hold, to buying stamps and ordering packaging and
                                                           supplies.

                                                           We encourage our customers to “skip the trip” and do
                                                           it all through the Internet. Doing your postal business
                                                           online not only adds convenience and saves time and
                                                           fuel costs — it benefits the environment.

                                                           Our calculator shows the amount of fuel, money
We continue to look at providing more market-driven        and greenhouse gas emissions you save based on
solutions for environmental products and services that     how far you drive, your car’s fuel efficiency and how
can be supported by our network.                           often you go to the Post Office. Check it out at
                                                           http://www.usps.com/green-calculator.
Our new product carbon accounting service, USPS
BlueEarth, is an example of our dedication and             Eco-responsible packaging and products
support for the sustainability efforts of our customers,   We continue to evaluate how we can offer our
as well as a way for us to better understand our own       customers more green products, while maintaining high
environmental impacts.                                     quality and affordability. Protecting the contents of the
                                                           products we ship is our top priority. Quality counts.
Our website, www.usps.com/green, spotlights ways
customers can also save money, do business with the        USPS has partnered with suppliers to ensure that
Postal Service and help the environment. Business          the design and manufacturing of stamps, postcards,
mailers can find out how to be “environmailists”           Priority Mail and Express Mail boxes and envelopes
by creating effective direct mail and engagement           use recyclable material where possible. Many of
campaigns that minimally impact the environment.           our signature product lines have been certified by a




                                                                                  2011 USPS Annual Sustainability Report | 19
Annual sustainability report_2011
Annual sustainability report_2011
Annual sustainability report_2011
Annual sustainability report_2011
Annual sustainability report_2011
Annual sustainability report_2011
Annual sustainability report_2011
Annual sustainability report_2011
Annual sustainability report_2011

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Annual sustainability report_2011

  • 1. SUSTAINABILITY PUTTING OUR STAMP ON A GREENER TOMORROW 2011 REPORT
  • 2. 2011 United States Postal Service — Key Performance Indicators Units FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Revenue $Billions $74.78 $74.93 $68.09 $67.05 $65.71 Net profit (loss) $Billions ($5.14) ($2.81) ($3.79) ($8.50) ($5.07) Mail volume Billion pieces 212.23 202.70 176.74 170.57 167.93 Delivery points Million points 147.99 149.19 150.12 150.86 151.49 Career employees # of employees 684,762 663,238 623,128 581,775 557,251 Post Offices, plants and administration # of facilities 34,318 34,175 33,264 33,620 33,260 Greenhouse gas emissions1 Million MTC02e n/d 13.37 13.03 12.31 12.39 Facility energy use2 Trillion BTU 30.1 30.7 25.7 23.8 25.1 Transportation fuel use3 Million GGE 795.8 729.7 720.5 700.9 718.0 Solid waste recycled Short tons n/d 288,211 219,649 221,655 215,879 2011 USPS Sustainability Target Snapshot ▲ Achieving goal ● On-target ✖ Off-target Progress Focus Objective and Target Baseline FY 2011 [% change Status from baseline] Greenhouse gas Reduce greenhouse gas emissions (GHG) 20% by FY 2020 13.37 12.39 (7.4%) ● emissions (million MTCO2). FY 2008 33.72 Facility energy use Reduce total facility energy use 30% by FY 2015 (trillion BTU). 25.08 (25.6%) ● FY 2003 Reduce total postal vehicle petroleum fuel use 20% by FY 2015 140.67 152.34 8.3% ✖ (million GGE). FY 2005 Transportation Reduce total contract transportation petroleum fuel use 20% by 580.13 FY 2020 (million GGE). 563.14 (2.9%) ✖ fuel FY 2008 4 Increase postal vehicle alternative fuel use 100% (i.e. 10% annually) 0.94 2.14 128.1% ● by FY 2015 (million GGE). FY 2005 Solid waste 53% Divert 50% of solid waste from landfill to recycling by FY 2015. 46% (6.8%) ✖ diversion–recycling 5 FY 2008 5,456 Water reduction Reduce water use 10% by FY 2015 (million gallons). 4,064 (25.5%) ▲6 FY 2007 Environmentally Increase the number of environmentally preferable products (EPP) 8,006 7 available in the supplier catalog 50% by FY 2015. 8,679 8.4 % ✖ preferable products FY 2010 Reduction of 508.4 Reduce spending on consumables 30% by FY 2020 ($ million). 314.9 (38.1%) ▲ consumables FY 2008 Notes: n/d: no historical data available results due to a leased fuel correction. 6 Water use baseline in 2007 was estimated 1 Total GHG reported in million metric tons of carbon 4 A typographical error in the 2010 Annual using expenditures and unit cost. FY 2010 and dioxide (CO2) equivalents (MTC02e). Sustainability Report (ASR) listed the contract 2011 water use was based on an extrapolation transport goal baseline as FY 2005; the baseline is from actual facility water use data. FY 2011 2 Total facility energy reported in British Thermal FY 2008. extrapolation added more than 1,600 sites to Units (BTU). improve our water use estimates. 3 Total transportation fuel use includes postal owned, 5 Restated target as “divert solid waste from landfills by 50%” from “reduce solid waste 50%” in 7 Re-stated the EPP count baseline to 8,006 from General Services Administration (GSA) leased, and previous reports to better reflect recycling progress 11,131 in the FY 2010 report due to changes in contract vehicle fuel use and is reported in Gasoline as a percentage of total solid waste generation. EPP counting practices. Gallon Equivalents (GGE). Restated 2007–2009
  • 3. From the Postmaster General Leaner, greener, smarter, faster Good for the planet — and good for business T  he United States Postal Service delivers the mail to every home and business in America. It’s a big job — and it takes a big organization to do it. We have almost 557,000 employees, more than 213,000 vehicles and approximately 33,000 Post Offices and other facilities. Together, they form America’s most essential communications network. This means our job isn’t over when the mail is delivered. The Postal Service also has a special responsibility to make our organization as sustainable as possible. Our mantra is “leaner, greener, smarter, faster.” To achieve these goals, we’re adjusting the size of our workforce and delivery network, eliminating waste, reducing energy consumption and encouraging our employees and customers to conserve. When the Postal Service is more efficient, everyone benefits. So please take a few moments to review our sustainability report. As you’ll see, the Postal Service is a big organization, and we’re working hard to reduce our impact on the planet we all share. This is good for the environment, and it’s also good for business. Patrick R. Donahoe Postmaster General and Chief Executive Officer 2011 USPS Annual Sustainability Report | iii
  • 4. Message from the Chief Sustainability Officer W  ith plans for significant network reducing facility energy use 30 percent by 2015 re‑alignment, the Postal Service continues to exceed our annual targets despite a slight is ushering in one of the most increase in facility energy use this year. transformational periods in its history. During this time of unprecedented change and We have been preparing a greenhouse gas emission economic challenge, we have established targets to inventory every year since 2007, and we now offer lead our organization toward a more sustainable future. USPS BlueEarth™, our new carbon accounting service We measure, and will continue to publically report so our business customers can determine their own progress toward our goals. We continue to work on carbon footprint for the mailing and shipping services new strategies to reach our targets and define new and the Postal Service provides. better practices in support of our sustainability efforts. We continue our efforts to reduce the growth in fuel Our vision is to be a sustainability leader by building a use by optimizing our delivery routes and efficient use culture of conservation throughout the Postal Service. of our vehicle fleet. However, the number of delivery We will implement sustainable business practices by points we serve continues to grow even during these engaging our employees, customers, suppliers, mail tough economic times. The net result is that delivery service providers and our federal peers. growth is outpacing our ability to improve efficiency. We have had many challenges and achievements In anticipation of an improved financial situation that during 2011. Our recycling efforts had a banner year will allow us to replace our existing fleet of vehicles, with $24 million in revenue. Our progress toward we continue to test alternative technologies. New types of alternative fuel vehicles were deployed for street testing, while some existing postal vehicles were retrofitted with new technology to understand how it may help improve our fleet efficiency. In 2011, we embarked on a special project to communicate “Green” directly to our customers with our Go Green stamps. We have featured the stamps throughout this report. The design team originally planned a four-stamp panel, but the enthusiasm and ideas for the project kept growing and eventually resulted in a 16-stamp panel (see front cover). We hope the excitement and pride experienced by our postal design team signal a broader willingness on the part of each of us to embrace more sustainable practices. Thomas G. Day Chief Sustainability Officer iv | 2011 USPS Annual Sustainability Report
  • 5. About this report T  he purpose of this report is to detail our USPS is committed to transparency and continues to corporate sustainability efforts and practices improve its data collection efforts used to measure and through 2011. We are now in the fourth year of analyze our performance. Within this report, results our corporate sustainability commitment and were calculated using actual information reported have increased our interpretive content from previous through internal databases or by estimation protocols. years by presenting additional charts and graphs. Data restatements or clarifications are footnoted on the inside front cover. We clarified our solid waste As a quick reference, a re-formatted performance performance target as “diverting 50 percent of our snapshot can be found on the inside front cover to solid waste from landfill” and not as stated in our summarize our key corporate indicators and report on 2010 report, to “reduce solid waste to landfill by progress toward our corporate sustainability targets. 50 percent.” This more accurate description reflects our recycling progress as a percentage of total solid We also included a Corporate Highlights section to review sustainability-focused events that waste generation. We also restated the environmentally preferable products counts to adjust for improvements occurred during 2011. Our corporate sustainability in product accounting. performance targets and practices are reviewed in the Environmental Stewardship, Services and Product Lastly, we note our performance target baseline Stewardship, and Supply Chain Stewardship sections. year(s) established to measure our progress over time Employee and community engagement are in the may vary. This is due in part by mandated federal People and Community section. regulatory baseline reporting year requirements for transportation fuel use and energy, and to better align This sustainability report is also provided online our performance targets with those established by at usps.com/green. We encourage the reader to federal executive order. explore our sustainability website, which offers additional content and features. The Postal Service Thank you for exploring this report and joining us on is a dynamic enterprise and we welcome the reader our sustainability journey. to take a look at our Annual Report to Congress and Comprehensive Statement on Postal Operations at http://about.usps.com to learn more about our business. Our reporting conforms to version 3.0 of the Global Reporting Initiative (GRI) sustainability guidelines, the most widely respected international reporting standard for public sustainability performance disclosure. Our updated 2011 GRI application statement and content index will be provided upon receipt at http://usps.com/green. Learn more about GRI reporting at https://www.globalreporting.org. 2011 USPS Annual Sustainability Report | v
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  • 7. Contents Corporate highlights . . . . . . . . . . . . . . . . . . . 1 Environmental stewardship . . . . . . . . . . . . . . . . 5 Carbon footprint: GHG emissions . . . . . . . . . . 5 Energy conservation and management . . . . . . . . 7 Fleet and transportation management . . . . . . . . 10 Waste reduction and recycling . . . . . . . . . . . . 14 Water conservation and management . . . . . . . . 16 Environmental management and regulatory compliance . . . . . . . . . . . . . . . . 17 Services and product stewardship . . . . . . . . . . . . 19 Supply chain stewardship . . . . . . . . . . . . . . . . . 21 People and community . . . . . . . . . . . . . . . . . . 23 2011 USPS Annual Sustainability Report | vii
  • 8. From left, Deputy Postmaster General Ronald Stroman discusses fuel cell technology with Engineering Systems Vice President Mike Amato and Technology Innovation Manager Han Dinh. viii | 2011 USPS Annual Sustainability Report
  • 9. Corporate highlights Go Green stamps dedication ceremony “With these Go Green stamps, the Postal Service is reminding us of the important steps we can take each day to have an impact on the world around us,” Jackson said. Record performance turning trash to cash — nets $24 million in revenue Recycling not only helps the environment and reduces waste, it generates revenue for the Postal Service — $24.4 million in FY 2011. We recycled over 215,000 tons of material in 2011. By using our distribution network in new ways, improving contract services and working with recycling vendors EPA Administrator Lisa Jackson. to maximize revenue through economies of scale, we are starting to see results. Stamps reflect our American culture, icons and lifestyles. As only the Postal Service can, we have Strong recyclable commodity pricing during 2011 issued stamps on nearly every imaginable topic. Our played a part in our record revenue earnings, but Go Green stamps dedication ceremony was held the real story is a long-term strategy of continuous at Thurgood Marshall Academy Public Charter High improvement. School in Washington, DC. Dedicating officials were Deputy Postmaster General USPS BlueEarth carbon accounting Ron Stroman and Environmental Protection Agency service to be released in 2012 (EPA) Administrator Lisa Jackson. The new USPS BlueEarth carbon calculator developed “We’re creating a culture of conservation at the Postal in 2011 and scheduled for launch in 2012, provides Service that will have a lasting impact in our workplace business customers with a carbon accounting and our communities,” Stroman said. “These Go Green statement for their mailing and shipping activity. stamps carry 16 simple, green messages that have the power to help make the world a better place for us and Postal Service business customers are increasingly future generations.” requesting information about the greenhouse gas emissions associated with USPS services. The calculator will use proprietary USPS methodology to calculate greenhouse gas (GHG) emissions and takes into consideration the type of shipping or mailing product, size and weight, how it’s processed and transported and the distance the package or envelope travels. DPMG Ronald Stroman, left, speaks with Moo Ho Bae, a senior at the Thurgood Marshall Academy in Washington, DC. 2011 USPS Annual Sustainability Report | 1
  • 10. Corporate highlights Climate Registry awards USPS gold status recognition for action on greenhouse gas emissions USPS was awarded Gold status by The Climate Registry for its leadership in reducing GHG emissions by more than 5 percent. The Postal Service is among the first of the Registry’s over 400 members and the first government agency to achieve the recognition. “Winning this Climate Registered Gold Award The report is designed to provide our business exemplifies the Postal Service’s efforts to reduce customers with accurate GHG data they can then use greenhouse gases. Our sustainability efforts to calculate their own carbon footprint. USPS BlueEarth continue to be excellent examples of USPS as an carbon accounting is a “no fee” service that will provide environmentally responsible organization. Our call to statements monthly, quarterly and annually. action is to be leaner, greener, faster and smarter,” said Postmaster General Pat Donahoe. “The marketplace for carbon accounting is growing. We see this as a significant step forward in offering more “We’re doing our best to create a culture of services to our customers” said Chief Sustainability conservation throughout USPS. Our work to Officer Tom Day. improve the environment demonstrates leadership in the adoption of sustainable business practices by employees, customers, suppliers, the mailing industry and federal government peers,” Day said. USPS recognized for GHG reduction. From left, Joe Corbett, CFO and executive vice president; Louis Atkins, president, National Association of Postal Supervisors; Frederic Rolando, president, National Association of Letter Carriers; PMG Pat Donahoe; Tony Vegliante, chief Human Resources officer and executive vice president; Jeanette Dwyer, president, National Rural Letter Carriers’ Association; Bob Rapoza, president, National Association of Postmasters of the United States; DPMG Ron Stroman; John Hegarty, national president, National Postal Mail Handlers Union; Doug Tulino, vice president, Labor Relations; Tom Day, chief sustainability officer; Mark Strong, president, National League of Postmasters of the United States; and Megan Brennan, COO and executive vice president. 2 | 2011 USPS Annual Sustainability Report
  • 11. Corporate highlights The Climate Registry is a nonprofit collaboration among North American states, provinces, territories and USPS completes environmental native sovereign nations, which sets consistent and assessment under National transparent standards to calculate, verify and publicly Environmental Policy Act report GHG emissions in a single registry. The National Environmental Policy Act (NEPA) requires Learn more about The Climate Registry at all federal agencies to implement policy goals to http://www.theclimateregistry.org. protect, maintain and enhance the environment. Knowing the importance of preparing environmental DRIVE delivers results, innovation, assessments, the Postal Service announced plans during 2011 to undertake a mail processing network value and efficiency for USPS rationalization initiative to create a more streamlined processing and distribution network using fewer facilities to handle an existing and projected decline in mail volumes. To understand whether operational changes from this initiative could impact the environment, we prepared an assessment in accordance with established NEPA and Postal Service regulations. The effort was started in October 2011 and completed in early 2012. We found that our network rationalization plans would have no significant adverse impacts to physical and cultural resources or quality of the environment. The Postal Service began a management process called DRIVE in 2011 to help it steer through an unprecedented period of organizational transformation. Energy awareness helps create a DRIVE stands for Delivering Results, Innovation, Value culture of conservation at USPS and Efficiency. “We’re changing our business model and looking to It is a portfolio of strategic projects and initiatives save money and resources,” USPS Deputy Postmaster designed to help us achieve our ambitious General Ron Stroman told employees at an event performance and financial goals. DRIVE represents the in Washington, DC, kicking off National Energy Postal Service’s commitment to maintain a viable and Awareness Month. “This includes a commitment to affordable delivery network for our nation now and into sustainability and conserving energy,” Stroman said. the future. The effort starts with increasing operational efficiency through better resource management and “We want to position the Postal Service as a fostering sustainable practices. Sustainability, a core sustainability leader by creating a culture of corporate function within the DRIVE process, has conservation that engages our employees, customers set key initiatives, including ensuring federal, state and suppliers,” said Chief Sustainability Officer Tom and local compliance, reducing energy consumption Day at the event. and improving our sustainability culture by engaging employees, customers and suppliers. Since 2003, the Postal Service has reduced total facility energy use by over 25 percent, nearly the amount of energy used by 90,000 average U.S. households in a year. USPS also reduced energy intensity, which is energy use per square foot of building space, by 22.4 percent in the same time period. 2011 USPS Annual Sustainability Report | 3
  • 12. Corporate highlights Supplier Sustainability Excellence award Each year the Postal Service recognizes supplier achievements that enable us to reduce costs, enhance services and provide us with sustainable business solutions. Carolina Cabinet Company was the recipient of our Supplier Sustainability Excellence Award for their performance during 2011, which included the design, manufacture and delivery of counters and casework for USPS retail lobbies. The company created modern designs using bamboo wood and other eco‑friendly materials that enhance the retail customer experience — and have resulted in lower costs for the Postal Service. Carolina Cabinet Company also was able to document its green manufacturing processes that reflect its larger commitment to recycling and energy-efficient lighting. Postal Service leadership trainees make the case for sustainability The Postal Service’s leadership programs are designed to develop high-performing leaders to meet the changing needs of USPS into the future. They include a demanding curriculum offered over a six-month period, with classroom instruction and mentoring by existing and future executives on key topics in business finance, project management, leadership principles and presentation skills. The programs culminate with a business case presentation. The 2011 classes were challenged with creating a “sustainability business growth model” to improve USPS waste reduction and recycling and to develop strategies to engage employees in Green Team initiatives. The participants used their new understanding of sustainability to present a business case of their findings before an executive review panel chaired by Chief Sustainability Officer Tom Day. The average U.S. household uses 95 million BTU a year. Learn more at http://buildingsdatabook.eren. doe.gov/. 4 | 2011 USPS Annual Sustainability Report
  • 13. Environmental stewardship W  e define our approach to environmental We are committed to transparency and third-party stewardship as taking responsibility for verification and continue to strive for continuous our choices and having a willingness improvement in our greenhouse gas (GHG) reporting. as a business to minimize our Since 2007, we have prepared an annual, third-party environmental impacts. verified GHG emissions inventory to track our progress. We believe practicing sustainable environmental To report our GHG emissions, we are compliant with stewardship can allow us to derive business value established protocols set forth by The Climate Registry, from environmental excellence and holds the the International Post Corporation and under Federal potential for decreasing our environmental impact, Executive Order 13514. increasing operational efficiencies, evaluating alternatives and improving financial performance. We track our emissions against established corporate GHG targets. Our overall target is to reduce GHG We have established policies for regulatory emissions 20 percent by FY 2020 using FY 2008 as conformance, pollution prevention and sustainable a baseline. practices to reduce our environmental footprint over time. We review how our business may impact the environment and have established targets and reduction strategies for greenhouse gas emissions, energy, transportation fuel use, waste reduction and water conservation. We measure progress toward these targets and continually evaluate new ideas and best practices to reach them. We don’t believe there is any single or quick fix. Rather, the key is our corporate commitment to practicing sustainability over time. The Environmental Stewardship sections in this report review our progress and strategies toward achieving our targets. Carbon footprint: GHG emissions Taking steps now to reduce our carbon footprint has become part of the Postal Service’s overall environmental stewardship strategy. We believe looking at our carbon footprint can offer new opportunities to evaluate less carbon-intensive practices and has the potential to drive greater efficiencies and reduce costs in how we use our natural resources. We also believe it may inspire new customer- driven products and services, such as our USPS BlueEarth carbon accounting service. 2011 USPS Annual Sustainability Report | 5
  • 14. Environmental stewardship ✔✔ CARBON FOOTPRINT Total Greenhouse Gas Emissions Total greenhouse gas emissions Target Target: Reduce GHG emissions 20% by FY 2020 from FY 2008 baseline (Scope 1, 2 and 3). 2008 5.28 8.09 13.37 Progress: Total GHG emissions from FY 2008 to (Baseline) FY 2011 decreased overall by 7.4% or by almost 985,000 metric tons. Total GHG emissions increased from FY 2010 to FY 2011 by 0.7% or 83,000 metric 2009 5.03 8.01 13.03 tons. Our overall 7.4% decrease in GHG emissions is nearly equal to removing 200,000 passenger vehicles from 2010 4.78 7.52 12.31 the road for a year. WHAT ARE CARBON DIOXIDE (CO2) EQUIVALENTS? 2011 4.70 7.69 12.39 The CO2 equivalent is a metric that many 0 5 10 15 organizations use to report their total GHG emissions Million Metric Tons of CO2 Equivalents in terms of CO2. Emissions from non CO2 GHG are compared to CO2 based on their global warming Scope 1 and 2 Scope 3 potential, with CO2 having a global warming potential of 1. Learn more about CO2 equivalents at the U.S. Environmental Protection Agency (EPA) website: http://www.epa.gov/cleanenergy/energy-resources/calculator.html. To better evaluate the full range of our GHG emissions, On Oct. 5, 2009, President we also have set individual performance targets for our Obama signed Executive Order Scope 1 and 2 emissions and Scope 3 emissions. 13514 to establish an integrated The Postal Service goal for Scope 1 and 2 GHG strategy toward sustainability emissions is a 20 percent reduction by FY 2020, using in the federal government and FY 2008 as a baseline. The Postal Service defines its Scope 1 and 2 GHG emissions boundaries as to make reductions in GHG Scope 1 direct GHG emissions from the combustion emissions a priority. of fossil fuels in owned boilers, furnaces and vehicles, and Scope 2 indirect GHG emissions from steam and The executive order requires electricity purchases. agencies to measure, manage In FY 2011, our Scope 1 and 2 GHG emissions and reduce GHG emissions decreased 11 percent, or 583,000 metric tons since toward agency-defined targets. baseline FY 2008. As a self-funded agency, the The Postal Service goal for Scope 3 GHG emissions is a 20 percent reduction by FY 2020 using FY 2008 as a Postal Service voluntarily baseline. The Postal Service defines its Scope 3 GHG conforms to the executive order emissions boundaries to include contract vehicle GHG reporting protocol. fuel use, employee travel, contract waste disposal, transmission and distribution losses from electricity purchases, buildings with fully serviced leases and contracted waste disposal and wastewater treatment operations. 6 | 2011 USPS Annual Sustainability Report
  • 15. Environmental stewardship amount of energy it takes to power 270,000 homes The Postal Service is the largest a year. Because of our facility energy requirements, member of the International Post we have both a business need and an environmental Corporation (IPC), a cooperative responsibility for conservation and efficiency. association of 24 members in We have aggressive energy reduction targets and Europe, North America and the are making significant progress in lowering energy consumption and cost. Asia Pacific Regions. Facility energy reduction We participate in the IPC We established two facility energy targets: to reduce sustainability efforts to coordinate both our total facility energy consumption and our postal industries around the globe facility energy intensity 30 percent by FY 2015 using in reducing their carbon footprint. FY 2003 as the baseline. We continued to make progress toward our FY 2015 targets even with a slight We report our carbon emission increase in facility energy use during 2011. As a federal agency, the Postal Service has aligned our facility inventory to the IPC each energy targets with the Energy Independence and calendar year using the IPC Security Act of 2007. Environmental Measuring and How does an organization with hundreds of thousands Monitoring System protocol. of employees and tens of thousands of buildings go about reducing energy? No one-size-fits-all technology In FY 2011, Scope 3 GHG emissions increased over or approach works for such a large and diverse FY 2010 but have demonstrated an overall decreasing business as the Postal Service. trend by 5 percent or 402,000 metric tons since Our energy management practices include improving baseline FY 2008. our understanding of how we use energy so we can There are many factors that contribute to GHG make informed decisions, investing in our buildings emissions. Progress toward reducing our GHG with energy efficient technology and fostering a footprint starts with understanding what segments conservation culture. of our operations impact GHG emissions and then developing goals and practices toward reducing them. The Postal Service has set goals for energy and vehicle performance. In fact, the Postal Service is the first federal agency to add energy and fuel reduction metrics to our managers’ national performance assessment score. Learn more about GHG emissions at the U.S. EPA website: http://www.epa.gov/greeningepa/ghg/. Energy Conservation and Management The Postal Service’s inventory of over 33,000 buildings, totaling 280 million square feet of floor space, is the largest retail network in the country. It takes a lot of energy to run all those facilities. In FY 2011, our energy costs were over $577 million, as we consumed 25 trillion BTU. That is nearly the 2011 USPS Annual Sustainability Report | 7
  • 16. Environmental stewardship Total facility energy use Total Facility Energy Use ✔✔ FACILITY ENERGY USE Target 2003 33.7 Target: Reduce total facility energy consumption (BTU) and energy-use intensity (BTU/sf of building space) 2004 34.6 30% by FY 2015 from a FY 2003 baseline. 2005 37.3 Progress: Total facility energy consumption was 2006 36.4 reduced overall from FY 2003 to FY 2011 by 8.6 trillion 2007 30.1 BTU or 25.6%. Total facility energy use increased from FY 2010 to FY 2011 by 5.4% or 1.3 trillion BTU. Total 2008 30.7 facility energy use intensity (BTU/sf) was reduced 22.4% since FY 2003. 2009 25.7 2010 23.8 The Postal Service total facility energy use reduction of 25% is nearly equivalent to the amount of energy used 2011 25.1 by 90,000 average U.S. households in a year. 0 10 20 30 40 50 Trillion BTU Energy measurement and auditing efforts have We continued to employ rigorous technical and driven development of energy management systems financial evaluation processes to review our buildings to better quantify and evaluate our energy use. Our for energy improvement, capital investment funding and Utility Management System now provides data on energy impacting repair and alterations projects. approximately 75 percent of USPS utility consumption. Utility cost and consumption data are used along with Two examples highlight our facility energy investment our Enterprise Energy Management System data, achievements during 2011 are: which helps us measure, monitor and compare facility ■■ The 392,000-square-foot Detroit network distribution energy use. center was upgraded with advanced lighting and USPS continually checks its energy performance heating/cooling systems. The change saves nearly tracking methods. After submitting the FY 2011 $470,000 and 34.8 billion BTU in energy, almost Annual GHG and Sustainability Data Report to the equal to 350 U.S. households annually. federal government, our further review discovered The building was retrofitted with energy-efficient inconsistencies in the way heating fuels are identified in fluorescent lighting. Also, photo sensors enhance the source data systems. In FY 2012, we are evaluating the work environment with natural light and occupancy effect of accounting for the discrepancy. If a resulting sensors eliminate unnecessary lighting. change in total BTU consumed or energy intensity The boiler and chiller plant, along with dozens of air in BTU/GSF is significant, USPS will restate this handler units, were upgraded to avoid unnecessary performance in the 2012 Annual Sustainability Report. heating and cooling, saving energy and water. Digital controls automatically program thermostats and This information, along with data from the completion allow outside air intake, providing “free” cooling of over 350 energy audits in 2011, enable us to better during temperate weather. Large fans were installed target energy investment projects and facility energy to provide better air mixing. Water-efficient, low-flow management opportunities. aerators on lavatory faucets save water and heating Facility energy impacting projects totaled over costs. 1,000 by the end of 2011, producing an impressive ■■ The Palatine, IL, Processing and Distribution achievement — an estimated energy reduction of Center is saving $510,000 annually due to lighting 1 trillion BTU per year. That is expected to result in and heating/cooling system upgrades. The annual savings of $22 million. 591,000-square-foot facility yielded annual savings of nearly 25.2 billion BTU in energy, equal to 250 U.S. households annually. 8 | 2011 USPS Annual Sustainability Report
  • 17. Environmental stewardship Computerized lighting controls and energy efficient 21,000 notebook computers and 85,000 printers. Our fluorescent fixtures were installed throughout the network printers have the default set to duplex printing workroom floor. Occupancy sensors were put in (front and back). Paper is made from a minimum administrative and support areas to eliminate lighting 30 percent post-consumer recycled content and the unoccupied space. HVAC upgrades included Postal Service has an established recycling program digital controls to improve outside air intake and for ink and toner cartridges. IT has consolidated the automatically regulate thermostats. purchasing options for printer, copier, fax machine, and New variable speed drive fans and pumps run only multifunctional device to better manage equipment when needed, avoiding unnecessary energy use. quality and network support services. Power-saving These improvements reduce energy and water mode and energy-efficient monitors have been evaporation loss during cooling tower operations. incorporated into employee computer workstations. As we look to the future, continued capital investment These features all act to reduce energy and the in energy project funding must take into account purchase of consumables, key Postal Service our current financial constraints. Consideration of performance targets. The widespread use of online alternative financing, including exploring renewable web and video conferencing services continues to energy opportunities, where cost effective, may offer accelerate internal communications while reducing competitive financial and environmental benefits. employee travel and our carbon footprint. The Postal Service has become the second largest user of Cisco Fostering a conservation culture remains key to our Unified MeetingPlace™ services, with an average of corporate energy management effort. By purposefully 10,000,000 minutes per month. integrating our energy data collection tools to specific facility energy opportunities, along with educating and promoting employee energy awareness, we strive to continuously drive behavioral change within our organization. Data Center and IT Network Services Data centers may consume 10 to 100 times more power than a typical office building. Over the past several years, the Postal Service has consolidated its data center operations into two locations: Eagan, MN, and San Mateo, CA. We have begun benchmarking data center operations by measuring power usage effectiveness (PUE), which characterizes overall data center efficiency. The PUE is becoming the standard performance benchmark in data center energy management. It will help manage our data center energy footprint and environmental impacts along with the ever increasing need to upgrade information technology services. We have implemented a number of energy efficiency practices, including virtualization, or running different operating systems on the same hardware, as well as improvements to cooling, heating and temperature control systems. IT services group continues to introduce green network strategies. The Postal Service network supports and maintains nearly 125,000 desktop computers, 2011 USPS Annual Sustainability Report | 9
  • 18. Environmental stewardship Fleet and transportation management Delivery route optimization: USPS IT technology at work How we go about traveling to our daily delivery destinations makes a difference in the amount of fuel we use and overall emissions we produce. We have developed an advanced innovative web tool called WebCOR to help optimize carrier delivery routes. The software provides computer modeling to configure carrier delivery routes to determine safe and more efficient lines of travel. The program makes objective decisions based on data and mail volumes to reduce unnecessary travel and mileage. Benefits include improved safety and a reduction in fuel and energy. By using optimization in FY 2011, we eliminated more than To maintain our delivery commitment to the nation, the 6,800 delivery routes, while at the same time seeing Postal Service operates the largest civilian vehicle fleet growth in new city and rural delivery points by over in the United States. 735,000. WebCOR This vast delivery infrastructure offers both challenges software and opportunities in vehicle performance. Vehicle helps create emissions are a primary contributor of greenhouse more efficient gases and also impact air quality. Vehicle maintenance delivery services may generate regulated wastes and fueling routes. operations that can impact land and water resources. USPS has established vehicle fleet performance targets to reduce petroleum consumption for our postal- owned fleet and contract transportation partners. We also have an established target to increase the use of alternate fuels. As a federal agency, we are required to report petroleum use reduction efforts and alternative fuel utilization to the U.S. Department of Energy annually in accordance with the Energy Policy Act The postal-owned vehicle fleet of 2005. The fleet of vehicles we own is used mainly to deliver mail from local Post Offices to the communities we Reducing overall petroleum consumption continues serve. For two decades, the core of our vehicle fleet to be a challenge, because the total number of annual has been the long-life vehicle (LLV), which traveled delivery points that our vehicles must travel to serve an average of about 18.5 miles per day in FY 2011. It our customers continues to grow. Our present strategy presently makes up the largest portion of our delivery is to reduce petroleum consumption by optimizing fleet. delivery routes and vehicle fleet size. To reduce the environmental impact of our vehicle maintenance The LLV is custom designed for right-hand-side driving operations, we have established polices and best and made to withstand rigorous driving conditions of practices, such as pollution prevention and having up to 500 stops and starts a day. Our current plan closed-loop contract services to reuse and minimize is to sustain our existing LLV fleet through continued waste generation. maintenance while we decide on longer-term fleet options. 10 | 2011 USPS Annual Sustainability Report
  • 19. Environmental stewardship ✔✔ POSTAL-OWNED PETROLEUM FUEL USE Postal-owned vehicle fleet snapshot Target: Reduce postal vehicle petroleum fuel use 20% Total Rural by FY 2015 from FY 2005 baseline. Total Total Petroleum and City Vehicle Miles Year Consumption Delivery Progress: Postal vehicle petroleum fuel use increased Fleet Size Traveled (in GGE) Points from FY 2005 to FY 2011 by 8.3% or 11.7 million GGE. (Billions) (Millions) Postal vehicle petroleum fuel use increased from FY 2010 to FY 2011 by 4.6% or 6.8 million GGE. 2008 221,047 1.269 146.8 126.38 The Postal Service added over 735,000 new city and 2009 218,687 1.249 145.4 127.38 rural delivery points during FY 2011. 2010 215,625 1.258 145.6 128.08 WHAT IS A GGE? 2011 213,881 1.292 152.3 128.82 Gasoline gallon equivalent or GGE is a factor that Postal-owned vehicle fleet size trends lower through delivery describes the number of gallons of a fuel, other than route optimization initiatives, while rural and city delivery points gasoline, which has the equivalent amount of energy the Postal Service must service year to year continues to as 1 gallon of gasoline. It is commonly used when increase. comparing alternative fuel, such as ethanol usage to gasoline. Learn more about fuel reduction planning and GGE at the U.S. Department of Energy website: http://www.afdc.energy.gov/afdc. Our network optimization efforts have increased Fuel market volatility risk remains a key concern delivery efficiency, which has lowered the overall to providing affordable mail service, since the growth rate of petroleum fuel use. We track and report Postal Service does not pass on fuel surcharges our postal-owned fleet petroleum fuel use against an to customers. Alternative fuel technology is one established target. strategy to manage this risk. Our use of alternative fuel technology will adjust as the marketplace for alternative Through network optimization, our vehicle fleet size fuel technology continues to evolve. Our performance was reduced by 1,700 vehicles during FY 2011 by target tracks total alternative fuel use across the full eliminating 6,800 delivery routes. Despite that reduction spectrum of alternative fuel-capable vehicles in our in vehicles, our postal-owned vehicle fleet increased fleet. its petroleum fuel consumption by 6.8 million gasoline 2011 Alternative fuel-capable vehicle fleet gallon equivalent (GGE) compared to FY 2010. That snapshot change was due in large part to growth in new rural and city delivery points. Type No. of AFV Ethanol (E85)/gasoline 39,754 Alternative fuel vehicles We have been testing and operating alternative fuel Compressed Natural Gas (CNG) 227 vehicles for decades. We currently have vehicles Electric 35 capable of running on compressed natural gas, Propane 30 ethanol, electric, propane and biodiesel. Delivery vehicles that can run on ethanol, or E85, make up the Conventional hybrid 910 largest part of our alternative fuel fleet due to that fuel’s Total AFV 2011 40,956 accessibility. USPS operates a diverse fleet of alternative-fuel The heavy use demands on our fleet vehicles are vehicles and has been in the forefront of testing a challenge to alternative fuel vehicle technology alternative-fuel vehicle technology. in terms of environmental performance, reliability, available support infrastructure and necessary capital investment. 2011 USPS Annual Sustainability Report | 11
  • 20. Environmental stewardship Alternative Fuel Vehicle Use Alternative fuel vehicle use ✔✔ POSTAL-OWNED ALTERNATIVE Target FUEL USE 0.94 2005 (Baseline) Target: Increase total alternative fuel use 0.76 2006 100% (10% annually) by FY 2015 from FY 2005 baseline. 0.80 2007 Progress: Total alternative fuel use 2008 1.52 increased from FY 2005 to FY 2011 by 128% or 1.2 million GGE. Alternative fuel use 2.01 2009 decreased from FY 2010 to FY 2011 by 2% or 43,000 GGE. 2.19 2010 Postal-owned alternative fuel use is on target 2.14 2011 to reach our FY 2015 goal. 0.0 1.0 2.0 3.0 Million Gasoline Gallon Equivalent (GGE) Highlights in our alternative fuel fleet operations in operational efficiency of our delivery fleet, the Postal 2011 include: Service solicited suppliers to submit proposals to repower the LLV drive-train. Solicitations were issued Electric LLV conversion. Contract awards were for both gasoline and diesel repowered drive-train issued to five electric vehicle suppliers to convert technology. Contract awards were issued during 2011. five gasoline-powered LLVs to all-electric vehicles. The repowered drive-train vehicles are scheduled to be Each supplier offered a distinct technology approach, deployed in 2012 in the Washington, DC, metropolitan providing the Postal Service an opportunity to evaluate area for testing and fuel efficiency performance. current state-of-the-art technology. During 2011, after extensive testing at a Department of Energy (DOE) facility, the five all-electric drive train LLVs were delivered to USPS for deployment at delivery locations in the Washington, DC, metropolitan area. Electric 2-ton vehicle testing. We began testing 10 Navistar eStar 2-ton electric step vans in 2011. (See back cover.) The vehicles are rated for up to 100 miles on a single charge and can be fully recharged in six to eight hours. The program is part of the America Recovery and Reinvestment Act funded through DOE. The fully electric vehicles are being field tested in three locations: Los Angeles, CA; Manhattan, NY; and Fairfax, VA; over a multi-year period to collect data on fuel efficiency, energy use, maintenance and vehicle utilization. Repowering LLVs. Several advancements in automotive technology have occurred since the LLV was introduced into the postal fleet in 1987. In an effort to determine how this technology could improve the 12 | 2011 USPS Annual Sustainability Report
  • 21. Environmental stewardship Contract transportation partners Vehicle fleet maintenance operations practicing Our contract transportation partners fleet includes pollution prevention highway vehicles, employee-owned vehicles used We continue to employ greener practices at our vehicle to deliver mail and transportation by rail, ship and fleet maintenance operations by implementing pollution air. Contract operators must transport mail between prevention strategies. Used motor oil, transmission fluid processing facilities and regionally. They are a and antifreeze generated at our vehicle maintenance significant contributor to our total petroleum use facilities are picked up for recycling by an authorized and currently represent over 40 percent of our GHG contractor. inventory. Our present strategy is to achieve reductions in petroleum fuel use by our contract transportation We purchase re-refined motor oil and recycled vehicle operations through continued optimization antifreeze to run our vehicles. Up to 85 percent less of our network. Our performance target takes into energy is consumed in the re-refining of used oil account total petroleum fuel use from a variety of compared to traditional refining of crude oil, so its use sources that provide contract transportation services. reduces our carbon footprint. A newly signed contract also will include the purchase of re-refined automatic transmission fluid for our vehicles. We have found Contract transportation fuel purchasing recycled product is of the same or greater is a significant contribution to quality as new products, and through economies of scale and innovative contracting, pricing is the same or total fleet fuel use. Contract below the cost of new products. transportation provides regional We also use re-treaded tires in our vehicle fleet. The network service and may travel Postal Service has a national contract service to re- longer distances. Optimization tread used tires that our fleet generates. Retreads are and network operation not only cost effective, but they are also dependable, efficiencies are key strategies to reliable and safe. minimizing the growth of contract transportation fuel use. Total fuel vehicle use Total Vehicle Fuel Use ✔✔ CONTRACT TRANSPORTATION 2008 581.4 148.3 729.7 FUEL USE Target: Reduce contract transportation petroleum fuel use 20% by FY 2020 from 2009 573.2 147.4 720.5 FY 2008 baseline. Progress: Contract transportation petroleum use decreased from FY 2008 to FY 2011 2010 553.2 147.8 700.9 by 2.9% or 17 million GGE. Contract transportation increased from FY 2010 to FY 2011 by 1.9% or 10.4 million GGE. 2011 563.5 154.5 718.0 Contract transportation fuel use represents over 40% of our GHG inventory. 0 100 200 300 400 500 600 700 800 Million Gasoline Gallon Equivalent (GGE) Fuel use: Contract and GSA-Leased Transport Postal-Owned 2011 USPS Annual Sustainability Report | 13
  • 22. Environmental stewardship Reduce and re-use A large component of our waste stream is Standard Mail bulk-priced mail pieces, such as printed matter, flyers, circulars and advertising that can’t be forwarded or returned. Reducing the amount of undeliverable Standard Mail that enters our network is key, and in 2008 USPS created the “Move Update” standard, which requires large mailers to more frequently match their address records with USPS change-of-address records. We extended “Move Update” to Standard Mail, which has further decreased the amount of undeliverable mail entering the system — another important factor in reducing overall waste generation. Mail transport equipment. Sorting and moving mail requires an array of rolling equipment, pallets, containers and trays all commonly referred to as mail Waste reduction and recycling Waste reduction and recycling have significant environmental benefits. Recycling keeps waste out of ✔✔ SOLID WASTE AND RECYCLING landfills and avoids landfill fees. It’s less energy and Target: Divert solid waste sent to landfill 50% by water intensive, decreases GHG and conserves natural FY 2015 from FY 2008 baseline. resources. Progress: Recycled 46% of solid waste in FY 2011 Simply put, recycling helps sustain the environment. or more than 215,000 tons of solid waste recycled We have been active participants in EPA’s WasteWise and sent 252,000 tons to landfill. program, which supports and assists businesses in The Postal Service generated over $24.4 million in working toward eliminating waste disposal costs. In recycling revenue during 2011. FY 2011, we recycled over 215,000 tons of material. This reduced our carbon footprint, and more importantly, kept these recyclables out of landfills. 2011 Material Recycling Composition Metal We have put significant effort into improving our Tires recycling, and believe we have developed a long- Plastic term sustainable recycling business model for our organization. The next several years will prove very challenging as mail volume continues to drop and our network, Mixed which underpins our recycling efforts, undergoes Recyclables consolidation and re-alignment. In meeting this Mixed Paper challenge, we will make the necessary adjustments to our recycling business model to stay on track. Cardboard We established a zero waste proof of concept over the last several years and set an overall target for reducing our waste. Our approach is to focus on efforts to reduce, reuse and recycle our waste. 14 | 2011 USPS Annual Sustainability Report
  • 23. Environmental stewardship transport equipment, or MTE. The containers we use launched in 2009. More than 10,000 locations now are designed for durability and extending their life even offer customers lobby mail recycling. This effort longer can reduce replacement and waste disposal continues to reduce waste being sent to landfills. costs. Regulated waste management and recycling. We We have established guidelines to make better re‑use have been active in reducing and better managing of our mail transportation equipment at Post Offices regulated wastes such as electronic waste or e-waste, and processing centers. To redistribute, repair and and universal waste (i.e., batteries), through value- replace our MTE, the Postal Service operates a based recycling contracting services and pollution network of mail transportation equipment service prevention strategies. These approaches not only centers across the country. reduce risk, but also drive efficiencies that benefit our bottom line. By continuous efforts to improve these In FY 2011, our service centers recycled over contracting tools, we are starting to see results. 5,000 tons of MTE that could not be repaired or reused, resulting in $1.7 million in recycling revenue. Electronic waste. We participate in a federal working group sponsored by the Office of the Federal Recycling and value-based contracting — reverse Environmental Executive and have established e-waste logistics stewardship practices. By using our distribution network in new ways, such E-waste may contain heavy metals like lead, cadmium as reverse logistics, we can increase recycling tonnage and mercury that are harmful to human health and through economies of scale. the environment. To properly manage e-waste, We can use value-based recycling contracts that we developed three core principles: secure data include revenue sharing, along with performance destruction, recycle and reuse, and avoid landfill waste. tracking and reporting. A centerpiece of our effort has been to use our existing This is central to the Postal Service sustainability transportation network to centralize collection of mission. We know that if it isn’t measured, it isn’t e-waste. Using secure mail transport containers, we managed. To reduce costs and increase revenue, ship e-waste using regular equipment return routes we backhaul recyclables such as mixed paper from from processing centers to our materials distribution local Postal Offices during daily return trips to our center in Topeka, KS. distribution centers. This allows facilities that aren’t geographically near each other to cost-effectively participate in large-scale recycling. At the same time, it avoids solid-waste disposal costs and landfilling. Also, by using our existing transportation network, we avoid fees from recycling vendors who would make costly stops at each local office. In FY 2011, more than 12,000 facilities participated in the backhaul recycling program, recycling more than 215,000 tons of mixed paper, cardboard, plastic and scrap metal — and earning $24.4 million in recycling revenue. We also encourage customers to recycle by asking them to discard unwanted mail in Post Office lobby recycling bins, instead of our trash cans. Our “Read, Respond and Recycle” mail lobby campaign was 2011 USPS Annual Sustainability Report | 15
  • 24. Environmental stewardship This allows us to consolidate e-waste from around the country. By taking advantage of economies of scale, Water conservation and management we have been able to participate in no cost e-waste Stewardship of our water resources is essential to collection and revenue-sharing contract partnerships. our environment and health. The energy needed to In FY 2011, our Topeka materials distribution center heat, move and treat water also impacts two of our recycled over 700 tons of e-waste, resulting in key performance targets: energy use and our carbon $345,000 in revenue sharing. footprint. Our business is not water-use intensive, but we can do our part where it counts. Our water Lithium ion batteries. The Postal Service awarded stewardship management efforts are designed to a revenue-sharing contract for recycling lithium ion reduce water consumption and minimize our impact on batteries used for our Intelligent Mail scanning devices. water quality. More than 350,000 of these handheld devices have Most of the water we use is for restrooms, irrigation been widely deployed throughout USPS to capture and cooling and maintenance activities to support our and share information about each mail piece as it facilities. We are taking the first steps to set targets and moves through our system. Each lithium ion battery is better understand our water footprint and consumption rechargeable and has a two-year life span. patterns. We estimated our 2008 and 2009 water We expanded this effort to include all spent lithium use by using expenditures and unit cost. Beginning ion batteries used in laptop computers, power tools, in 2010, we expanded the data collection capabilities cameras, two-way radios and other devices. By using of our national utility management system to include our network, the Postal Service has increased recycling actual facility water use data. In 2011, we added over of these batteries from 1,200 pounds in 2010 to 1,600 facilities into the system to improve our water use almost 10,000 pounds in 2011, resulting in more than estimates. $2,500 in revenue sharing. Tritium exit signs. USPS has been actively replacing ✔✔ WATER tritium signs throughout our network. Although tritium exit signs pose little or no threat to public health, Target: Reduce water use 10% by FY 2020 from the Nuclear Regulatory Commission requires proper FY 2007 baseline. recordkeeping and disposal of all radioactive materials. Progress: Water use was reduced from FY 2007 to Our reclamation contract has been active since 2009 FY 2011 by 25.5%, or 1.4 billion gallons. Water and has resulted in recycling several hundred of these consumption decreased from FY 2010 to FY 2011 signs within our organization. Learn more about NRC by 17% or 819 million gallons. tritium exit sign disposal at http://www.nrc.gov/ USPS has over 33,000 facilities across our entire reading-rm/doc-collections/fact-sheets/fs-tritium.html/. network, so collecting water-use data is a challenge. However, we continue to work to measure our water footprint. 16 | 2011 USPS Annual Sustainability Report
  • 25. Environmental stewardship Environmental management and regulatory compliance Each year the Postal Service performs environmental reviews at our facilities to assist in maintaining compliance with regulations, minimize risk and uphold best practices. In 2011, we conducted over 400 facility environmental reviews and third-party tank inspections at over 150 locations. Our review program focuses on facilities with regulated activities, such as water and air permits, hazardous waste handling and underground storage tanks and fueling locations, which are more likely to be at risk of non-compliance. The program conducts regulatory reviews at these facilities and evaluates non-regulatory deficiencies that could lead to non-compliance. These proactive environmental reviews benefit the We have taken a more direct approach to reducing our organization by identifying and correcting deficiencies impact on water quality. According to the EPA, nonpoint and instilling best practices to maintain compliance. source pollution remains the nation’s largest source of water degradation. This type of pollution occurs from rainfall and snowmelt, or when irrigation picks up pollutants and deposits them into bodies of water. It is less noticeable and tends to happen slowly, so it is more difficult to control. Runoff from postal fleet vehicle washing may negatively affect water quality. It may contain detergents, grit, sediments and vehicle fluids that can be released into the environment. To mitigate these impacts, our centralized contract services require all vehicle washing contractors to use wash water recovery and waste water disposal as part of their service. Learn more about nonpoint source pollution at the U.S. EPA website: http://water.epa.gov/polwaste/nps/outreach/point1.cfm. 2011 USPS Annual Sustainability Report | 17
  • 26. The several dollars per thousand “Those are real changes in terms on the price. And we’re always of improved forest management working to maximize delivery as well as continued growth in Business Case efficiencies.” recycling post-consumer fibers.” for Green Says Brophy: “Incorporating green-friendly marketing practices helps us align our business Technology keeps improving Jerry Cerasale, senior vice Adapted from Deliver Magazine. See full article practices with our mission, which president for government at: www.delivermagazine.com. Printed with is to serve the consumer interest.” affairs for the Direct Marketing permission. Association (DMA), says that I t’s not always easy going The forest for the trees a majority of national print green — but many marketers companies purchase certified Consumer Reports isn’t alone paper and soy-based ink. are finding that the benefits of in making green a focus of its eco-friendly messaging can be business efforts. Currently, “There have been vast well worth the effort. 5,000 businesses in the improvements in the technology As the director of publishing United States and Canada in making soy-based ink,” operations for Consumer Reports are certified by the nonprofit Cerasale says. “I’d say that every magazine, Meta Brophy marketer I know uses it.” has witnessed firsthand Indeed, the biggest the impact of eco- leap has occurred friendly marketing on a among printers. business’s bottom line. According to Cerasale, In recent years, Brophy they are 100-percent and her colleagues environmentally have worked diligently conscious. “They are to incorporate green trimming paper sizes principles into the the best they can and publication’s marketing recycling every bit of practices. For instance, scrap in their plant,” he they have become more reports. “If there is a bad conscientious about paper stock, Forest Stewardship Council run, they recycle that paper. It’s a mailing frequency, envelopes and (FSC), a non-governmental win-win for them. They’re greener nearly every other element of advocate for responsible forest and it saves them money.” the magazine’s mail advertising. management, meaning they Marketers are also are doing a The payoff, she says, has been follow FSC guidelines to ensure better job in reducing the number tremendous. environmentally sound forestry of mailings that are duplicates practices. and/or undeliverable as “We have saved hundreds of thousands of dollars over the last That number includes some of addressed. In addition, Cerasale six-plus years by implementing the largest companies in the says an increasing number have new, and changing existing, world, including many direct begun to reduce the amount of programs,” says Brophy. “We’ve marketing giants, according to Ian paper used in packaging. switched to lighter weight papers. Hanna, U.S. director of business But there is still work to be done. We produce more open-window development for the FSC. Cerasale said the DMA would envelopes, thereby eliminating “This has taken the market to a like to see all envelopes and the need for window patch place of ubiquity,” Hanna says. stationery mail stamped with the material — which can save logo “Please Recycle.” 18 | 2011 USPS Annual Sustainability Report
  • 27. Services and product stewardship F  rom offering a semipostal stamp to support We make it easy for customers to do business with wildlife conservation that has raised more us from the comfort of their homes or offices. Almost than $620,000 to delivering on services anything you can do at the Post Office, you can do and products that support environmental online at USPS.com, from purchasing postage-paid stewardship, we are actively helping the environment. shipping labels and scheduling free package pickups, to changing your address or putting your mail on hold, to buying stamps and ordering packaging and supplies. We encourage our customers to “skip the trip” and do it all through the Internet. Doing your postal business online not only adds convenience and saves time and fuel costs — it benefits the environment. Our calculator shows the amount of fuel, money We continue to look at providing more market-driven and greenhouse gas emissions you save based on solutions for environmental products and services that how far you drive, your car’s fuel efficiency and how can be supported by our network. often you go to the Post Office. Check it out at http://www.usps.com/green-calculator. Our new product carbon accounting service, USPS BlueEarth, is an example of our dedication and Eco-responsible packaging and products support for the sustainability efforts of our customers, We continue to evaluate how we can offer our as well as a way for us to better understand our own customers more green products, while maintaining high environmental impacts. quality and affordability. Protecting the contents of the products we ship is our top priority. Quality counts. Our website, www.usps.com/green, spotlights ways customers can also save money, do business with the USPS has partnered with suppliers to ensure that Postal Service and help the environment. Business the design and manufacturing of stamps, postcards, mailers can find out how to be “environmailists” Priority Mail and Express Mail boxes and envelopes by creating effective direct mail and engagement use recyclable material where possible. Many of campaigns that minimally impact the environment. our signature product lines have been certified by a 2011 USPS Annual Sustainability Report | 19