What’s up with the ‘G’ in ESG?

Governance – what it means and why it matters
GinESGdesktop.jpg GinESGtablet.jpg GinESGmobile.jpg

ESG is an increasingly popular topic these days. It refers to three key factors used to measure the long-term environmental, social and ethical (governance) impact of a company.

What ‘G’overnance means: UPS’s governance practices are the foundation for its commitment to being an ethical and responsible global business.

Simply put, at UPS we:

  • Create an environment of accountability, transparency and trust
  • Hold ourselves responsible for managing the business
  • Advance our environmental and social initiatives
  • Allocate capital responsibly and know where to focus our time and money

Why it matters: UPS’s governance practices help us live up to our purpose and deliver superior service and results while creating long-term value for shareholders. And our commitment to ethics and integrity can be found in our actions.

Our commitment to integrity is about creating a climate for continued success. The goal is to have an environment where people can make good decisions and know they’re doing the right thing in every business situation.

Governance in action:

  • Great diversity on our Board of Directors and Executive Leadership team
  • Stakeholder-friendly reporting (sustainability report)
  • Managing compliance and evaluating risks by entirely independent committee

We also have Darrell Ford serving as our CHRO and chief diversity, equity and inclusion officer and Laura Lane as our first chief sustainability officer – both reporting directly to our CEO.

Committed to lead: The UPS Sustainability Trailblazers group has a “G” team that focuses on our culture and transparency for all stakeholders. They also educate UPSers and the outside world on UPS’s sustainability efforts to strengthen our purpose.

The “G” team is growing with passion – within six months this team of volunteers doubled in size. It’s made up of UPSers around the world led by Virginia Rada, Tammy Cummings, Christiane Meixner, Elizabeth Ibarra, Dan Canale, Stephany Brown and Lauren Gokhale.

What they’re saying: “Governance covers all activities and company policies governing our Board of Directors, management teams, and every single employee. We ALL play a role,” explained Virginia Rada, UPS communications supervisor and G-team leader.

Dive deeper: Some studies show that a company's brand reputation and customer loyalty, and even investor dollars are influenced not just by the quality of goods and services provided, but also by things like:

  • How a company treats its employees
  • Is the company a good environmental steward
  • Do its actions have a positive impact on communities
  • How well does it fosters diversity and inclusion

UPS’s reputation for ethical behavior has enabled us to attract and retain the best people and loyal customers.

Related Stories