AmazonScience/document-haystack

1Sustainability2We are the world’s premier package delivery company and a leading provider of global supply chain 3management solutions. We offer a broad range of industry-leading products and services through our extensive 4global presence. Our services include transportation and delivery, distribution, contract logistics, ocean freight, 5air freight, customs brokerage and insurance.6We operate one of the largest airlines and one of the largest fleets of alternative fuel vehicles under a global UPS 7brand that stands for quality and reliability. We deliver packages each business day for approximately 1.6 million 8shipping customers to 10.2 million delivery recipients in over 200 countries and territories. In 2023, we delivered 9an average of 22.3 million packages per day, totaling 5.7 billion packages during the year. Our success depends 10on economic stability, global trade and a society that welcomes opportunity. We understand the importance of 11acting responsibly as a business, an employer and a corporate citizen.12The board considers key economic, environmental and social sustainability risks and opportunities as part of its 13involvement in and oversight of UPS’s strategic planning. The board also regularly reviews the effectiveness of 14our risk management and due diligence processes related to material sustainability topics. In executing its 15responsibilities, the board recently delegated oversight of environmental sustainability matters to the Nominating 16and Corporate Governance Committee. The Nominating and Corporate Governance Committee monitors the 17development, implementation, and progress of the Company’s environmental sustainability goals and regularly 18reports on those matters to the board. Authority for day-to-day management of sustainability matters has been 19delegated to management. Our Chief Corporate Affairs and Sustainability Officer reports directly to the 20Company’s CEO and regularly reports to the board regarding sustainability strategies, priorities, goals and 21performance. In addition, the board is regularly briefed on issues of concern for customers, unions, employees, 22retirees, investors, governmental entities and other stakeholders. For additional information on board oversight, 23see page 14.24Each year we publish corporate sustainability reports showcasing the goals, recent achievements and challenges 25of our commitment to balancing the economic, environmental and social aspects of our business. In response to 26stakeholder interest, we have recently accelerated the timing of these reports to provide stakeholders with more 27current information in advance of our Annual Meeting. These reports are available at https://about.ups.com/us/28en/social-impact/reporting.html. Our sustainability goals are aspirational and may change. Statements regarding 29our goals are not guarantees or promises that they will be met.30Human Capital Management31Our success is dependent upon our people, working together with a common purpose. As we seek to capture 32new opportunities and pursue growth, we believe that transforming the UPS employee experience is foundational 33to our success. This requires a thoughtful balance between the culture we have cultivated over the years and the 34new perspectives we need to take the business into the future. We believe that UPS employees are among the 35most motivated and highest-performing in the industry, and provide us a competitive advantage. To assist with 36employee recruitment and retention, we continue to review the competitiveness of our employee value 37proposition, including benefits and pay, training, talent development and promotion opportunities.38We have approximately 500,000 employees (excluding temporary seasonal employees), of which 414,000 are in 39the U.S. and 86,000 are located internationally. Our global workforce includes approximately 85,000 40management employees (42% of whom are part-time) and 415,000 hourly employees (48% of whom are part-41time). More than 70% of our U.S. employees are represented by unions, primarily those employees handling or 42transporting packages. Many of these employees are employed under a national master agreement and various 43supplemental agreements with local unions affiliated with the International Brotherhood of Teamsters 44("Teamsters"). In the third quarter of 2023, the Teamsters fully ratified a new national master agreement that 45expires July 31, 2028. In addition, approximately 3,300 of our pilots are represented by the Independent Pilots 46Association (“IPA”). Our agreement with the IPA becomes amendable September 1, 2025.47 4817