If you had to brainstorm a list of industries ready-made for doing business more sustainably, package delivery may not make the top spot: delivering goods requires fairly high levels of energy and materials. On Tuesday, one of the giants in this field, UPS, released its corporate sustainability report, and demonstrated that, even with the inevitable challenges built into this business model, innovative thinking and practice can significantly reduce the environmental footprint of delivery service.

Among the accomplishments the company cited in its report:

• Preventing the emission of 1 million metric tonnes of carbon by shifting to a greater use of rail transport.
• The elimination of 100 million driven miles from 2003-2008 through the use of route optimization technology.
• Contributing to more efficient disaster relief: “In 2008, we donated more than US$3 million in financial aid, provided essential in-kind services, and put trained disaster logistics employees on the ground on two continents.”
• Introducing the hydraulic hybrid vehicle into its fleet; the company expects this vehicle to operate with 40% more efficiency than a conventional diesel-powered truck.
• Saving 1.3 tons of paper by “replacing internal paper labels with direct printing on packages.”

Perhaps the biggest goal outlined in the report involves the company’s plans for reducing air transport emissions. As the world’s ninth-largest airline, operation of planes accounts for 53% of the company’s overall carbon footprint. UPS plans to address this issue by committing to a 20% reduction in carbon emission in 2020 (from 2005 levels). The company believes it can achieve this goal through the introduction of

• More fuel-efficient aircraft types and engines
• Fuel Saving Operational Initiatives
• Introduction of biofuels

Finally, UPS has made one more commitment that will create further credibility for its future sustainability reports: the company has contracted with Deloitte & Touche to perform third-party reviews of these reports, beginning with the 2009 edition.

Package delivery has multiple built-in challenges for greener operations; UPS certainly seems to have established itself as leader in tackling these challenges.

Impressed? Or not…? Let us know what you think below…