SUSTAINABILITY METRICS PROJECTFostering Innovation in Postal Service

Environmentally Preferable Shipping Supplies

Michael R. Barr, Alicia M. Case, and Kim WerdemanNational University

Introduction

• Problem Statement– Opportunity for sustainable integration necessary for

Retail shipping supplies• Packaging Tape• Bubble Mailers• Bubble Packaging Material

Mission Statement (Vision)• “To be a sustainability leader”

– Building a Culture of Conservation throughout the Postal Service– Continually evaluates how to offer more “green, high quality,

affordable products– Protecting contents of products shipped are a top priority

Introduction

• Current Operation• Obtains products from partnering suppliers• Some products have certification by a 3rd party eco-

labeling program

Introduction

• Industry Best Practices• Better sustainable packaging• Reduced energy usage• Reduced Raw Material Consumption• Increased Recyclability• Reduced Greenhouse Gas Emissions• Decreased Waste Generation• Increased Re-use

Risks

• Assign High/Medium/Low impact on project risk:• Project Size• Project Decision-Making• Project Schedule• Buy-In from Stakeholders• Buy-In from Management

Mitigation Samples•Add more time to project schedule•Add another analysis•Additional testing•Additional product samples•Phased curover of products•Expose stakeholders to samples of proposed products

Measurement Strategy and Metrics

• Key Performance Indicators– Revenue

• $11 Billion in packaging sales out of $65 Billion in FY2011

– Mail Volume• 167.9 Billion Pieces in FY 2011

– Green House Gas Emissions• 12.39 Million MTCO2e in FY 2011

Measurement Strategy and Metrics

• Action Plan– Split current retail sales measurements into

two groups• sales of existing Cradle2Cradle products• sales of products that have room for improvement

– packing materials such as tape, packing peanuts, bubble wrap

– postal products such as self-inking stamps and digital scales

– Reduce retail sales of non-sustainable products

Measurement Strategy and Metrics

• Action Plan– Phase out all non CtoC products and replace

• Padded mailers– made with recycled cushioning fiber padding

• Bubble packaging– made from 35% recycled plastic

• Biodegradable packing peanuts– compostable

• Packing tape– made of 25% recycled resin or– natural GSO gummed tape

Data Analysis

• Baseline data collection– how much of what the USPS currently sells is not

eligible for Cradle to Cradle certification?– Of what is not eligible, what can be replaced with

more sustainable products?

• Once baseline data has been collected and sustainable sources obtained; a program to phase out all current supplies and phase in new products can be implemented.

Accountabilities

Executive SponsorsJoseph Corbett Chief Financial Officer, Executive Vice President

Nagisa Manabe Chief Marketing & Sales Officer, Executive Vice President

Internal StakeholdersThomas Day Chief Sustainability Officer

Sam Pulcrano Vice President, Corporate Communications

Susan Brownell Vice President, Supply Management

Gary Reblin Vice President, Domestic Products

External Stakeholders

Business Value Sources Environmentally Preferable Packaging and Products

Plan Business Values Goals/Objectives Relationship to Project

Marketing and Sales Revenue Growth Growing environmentally preferable packaging and product markets through lean, efficient and “green” processes can lead to revenue growth.

Finance, Supply Management

Expense Reduction Specifying and optimizing environmentally preferable packaging and product markets through lean, efficient and “green” processes can lead to expense reduction.

Brand Equity and Design

Brand Recognition Improvement Helps to maintain brand awareness which plays a major role in a customer’s buying decision

Finance, Strategy Leadership Position Development Helps Postal Service maintain “Most trusted Federal government organization” status and recognition as a leader in Environmental Stewardship.

Marketing and Sales Market Expansion Abilities Research shows consumers becoming increasingly aware and concerned about environmental impact of the products they purchase.

Finance, Supply Management

Product Quality Improvement Ensures commitment, helps to define quality and institute product quality control, and identify and address problems.

Chronicle of Activities

Milestones/Deliverables Target Date

Environmentally Preferable Packaging and Products Metric Project approved and funded; Begin final program development and rollout to selected vendor partners; Plan and budget for FY 2014 operational and capital appropriation.

12/20/2012

Update Management Team on progress and request approval for appropriation 12/22/2012

Operational (Expense) and Capital Budget submission to Finance;Select targeted Environmentally Preferable Packaging and Products for C-to-C Certification

03/20/2013

Capital Budget approval from Capital Investment Committee (CIC) 05/20/2013

Operational (Expense) and Capital Budget approval from Finance 06/20/2013

C-to-C Certification of Environmentally Preferable Packaging and Products complete; 09/20/2013

Begin FY 2014.Newly C-to-C Certified Environmentally Preferable Packaging and Products production and distribution begins to retail network.Begin metrics measurement.

10/01/2013

FY 2014, Q1 ends.Metrics measurement due for corporate progress reporting

12/31/2013

FY 2014, Q2 ends.Metrics measurement due for corporate progress reporting

03/31/2014

FY 2014, Q3 ends.Metrics measurement due for corporate progress reporting

06/30/2014

FY 2014 ends.Metric measurements due for corporate progress reporting, FY 2014 Corporate Sustainability Report

09/30/2014

Recommendations to Improve Process

• Receive bids for non-CtoC products• Receive product samples• Replace non-CtoC products with

sustainable products• Promote fact that all retail products are

sustainable

References• 2011 Sustainability Report (2012). Retrieved from http://about.usps.com/what-

we-are-doing/green/report/2011/key-indicators.htm

• USPS Sustainability Report. (2011). Retrieved from http://about.usps.com/what-we-are-doing/green/report/2011/annual_sustainability_report_2011.pdf

• USPS Website. (2012). Retrieved from http://about.usps.com/who-we-are/postal-facts/welcome.htm 

• Wooster, J. & Nuttall, J. (2007). The Dow Chemical Company. Case studies for improved sustainability in packaging. Retrieved from http://www.tappi.org/content/events/07place/papers/wooster.pdf

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