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Sustainability at the US Postal Service New York PCC June 21, 2017 Thomas G. Sustainability at the US Postal Service New York PCC June 21, 2017 Thomas G. Day Chief Sustainability Officer United States Postal Service

We are committed to be a sustainability leader by creating a culture of Conservation We are committed to be a sustainability leader by creating a culture of Conservation throughout the Postal Service and leading the adoption of Sustainable business practices by engaging our employees, customers, suppliers, the mailing industry, and our federal peers. As a foundation to this vision, we strive to ensure compliance with environmental regulatory requirements in all aspects of our operations. Our call to action is to be leaner, greener, faster, smarter in support of the overall goal to deliver mail at the lowest cost with minimal impact upon the environment.

We issue our ASR each year on Earth Day, reporting on our previous Fiscal We issue our ASR each year on Earth Day, reporting on our previous Fiscal Year’s performance. Each year we analyze our results to determine focus for future efforts, for example: Instituted a standardized National Recycling Operation for Mixed Paper Waste. Will result in a 85 -90% diversion from landfill to recycling by 2020.

§ USPS issued Annual Sustainability Report (ASR); incorporates Global Reporting Initiative (GRI) 4. 0 § USPS issued Annual Sustainability Report (ASR); incorporates Global Reporting Initiative (GRI) 4. 0 – publicly available at USPS. com § Strategic Sustainability Performance Plan (SSPP) – submitted to White House Council on Environmental Quality – scorecard overview publicly reported by Office of Management & Budget § Environmental Measurement and Monitoring System (EMMS) – submitted to International Post Corporation – available on IPC website – 3 rd party audit by Pw. C § Annual GHG emissions inventory § Climate Registry protocol - 3 rd party audit

§The US Postal Service is committed to being a leader in Sustainability §We also §The US Postal Service is committed to being a leader in Sustainability §We also are committed to assisting our customers to achieve their own Sustainability initiatives.

Carbon Accounting Federal Recycling Program Secure Destruction Carbon Accounting Federal Recycling Program Secure Destruction

Carbon Accounting Carbon Accounting

What is a Carbon Footprint and what are Greenhouse Gas (GHG) Emissions? What is a Carbon Footprint and what are Greenhouse Gas (GHG) Emissions?

The definition – straight from Wikipedia A carbon footprint has historically been defined as The definition – straight from Wikipedia A carbon footprint has historically been defined as "the total sets of greenhouse gas (GHG) emissions caused by an organization, event, product or person. "

"A measure of the total amount of carbon dioxide (CO 2) and methane (CH 4) emissions of a defined population, system or activity, considering all relevant sources, sinks and storage within the spatial and temporal boundary of the population, system or activity of interest. Calculated as carbon dioxide equivalent (CO 2 e) using the relevant 100 year global warming potential (GWP 100). "

USPS Blue. Earth™ Carbon Accounting Statement (report) Report designed to support our customers’ efforts USPS Blue. Earth™ Carbon Accounting Statement (report) Report designed to support our customers’ efforts to estimate and manage their greenhouse gas (GHG) emissions.

USPS Blue. Earth™ Carbon Accounting Statement (report) § Report covers emissions from all activities USPS Blue. Earth™ Carbon Accounting Statement (report) § Report covers emissions from all activities the Postal Service conducts. § Does not cover production or transportation done before the mail is accepted by the Postal Service or any use or disposal of the mail after it is delivered

USPS Blue. Earth™ Carbon Accounting Statement (report) § Displays the carbon dioxide equivalent (CO USPS Blue. Earth™ Carbon Accounting Statement (report) § Displays the carbon dioxide equivalent (CO 2 -e) impact in metric tons (MT) that the Postal Service incurs for your parcels and/or mail pieces. § Month § Quarter § Fiscal Year § Year Ending in Selected Month § Report designed to support our customers’ efforts to estimate and manage their greenhouse gas (GHG) emissions.

Federal Recycling Program Federal Recycling Program

Improper Disposal is Harmful to the Environment § The average U. S. household spends Improper Disposal is Harmful to the Environment § The average U. S. household spends $1, 407 per year on new electronics § The average home has twenty-four (24) used, unwanted electronics § 130 million cell phones are retired each year § Electronics contain hazardous materials (such as lead) that cause health and environmental damage when trashed instead of recycled § Only 10 -15% of all used electronics are being recycled § In a USPS survey, 35% of respondents said that they are not willing to travel ANY distance to recycle electronics at a local collection center

USPS Introduced a Comprehensive Recycling Program for Federal Agencies § US Postal Service 1 USPS Introduced a Comprehensive Recycling Program for Federal Agencies § US Postal Service 1 st to Deploy § Supplements Existing Recycling Programs § All Domestic Sites, including § Alaska, Hawaii, § Puerto Rico, Virgin Islands, Guam § Includes Agency and Employee § Small Electronics and Printer Cartridges § At No Cost for U. S. Federal Agencies § Simple to Launch and to Use

Web based (two web sites) 1. For official equipment only, shipped from the agency Web based (two web sites) 1. For official equipment only, shipped from the agency location 2. For employee’s personally owned equipment only, shipped from home Simple Process 1. 2. 3. 4. Enter information on web site Print label Pack in box (not provided, recommend re-use of boxes) USPS picks up with existing mail. Provides a Process to Separate Federal Assets from Employee Owned Equipment

§ Media Games & Games Systems § DVD & Blu-ray Players § Media Games & Games Systems § DVD & Blu-ray Players

Secure Destruction Secure Destruction

Each year USPS® returns over 1. 2 billion pieces of Undeliverable-As. Addressed (UAA) First-Class Each year USPS® returns over 1. 2 billion pieces of Undeliverable-As. Addressed (UAA) First-Class Mail® to mailers Large mailers send mail that is processed at USPS® facilities prior to being sent out for delivery. Secure Destruction eliminates UAA Return to Sender mail at the USPS® facility. Secure Destruction Service Secure Destruction was created in response to mailers asking to reduce handling costs for “Return to Sender” mail with Privacy Protected Information (PPI) Applies only to letter-sized First-Class Mail® Performed by USPS® employees in USPS® facilities An opt-in service for mailers provided at no additional fee

Secure Destruction may be of interest to mailers who face the risk of liabilities Secure Destruction may be of interest to mailers who face the risk of liabilities if they don’t properly and securely destroy PPI Protected by… Health Insurance Portability and Accountability Act of 1996 Financial Records Consumer Records Health Records Protected by. . . Family Educational Rights and Privacy Act of 1974 Protected by… Financial Services Modernization Act of 1999 Target Types of PPI Student Records Credit Card Records Governed by… Payment Card Industry Data Security Standard Federal Government Records Protected by… State Security Breach Notification Laws Protected by… Privacy Act of 1974

What additional in-house quality controls are used to ensure undeliverable SD mail is securely What additional in-house quality controls are used to ensure undeliverable SD mail is securely destroyed ? Mail Verification - All SD mail generated undergoes individual mailpiece verification prior to destruction Standard Handling Procedures - Mail that is not eligible or that could not be processed is handled per standard procedures Postal Inspection Service - Periodic security assessments of Secure Destruction processes and procedures are conducted Office of the Inspector General - Per Title 18, United States Code, investigations will occur for any allegations of mail theft by individuals and entities under contract with the Postal Service The Postal Service has a long history of protecting the sanctity of the mail.

Securely destroying mail within USPS® processing facilities provides three types of benefits: Environmental - Securely destroying mail within USPS® processing facilities provides three types of benefits: Environmental - Reduces the carbon footprint of UAA mail through recycling and eliminating unnecessary reverse logistics associated with returning mailpieces to the sender Economic - Reduces the costs for mailers for handling and destroying RTS mail in-house or through third party contactors Security - Strengthens mailers’ information security programs, processes, and procedures

Secure Destruction shreds to a smaller size than the NAID standard USPS® uses industrial Secure Destruction shreds to a smaller size than the NAID standard USPS® uses industrial cross-cut shredders NAID maximum shred size: • Width: 0. 75 inch • Length 2. 5 inches • Surface Area: 1210 mm 2 USPS® maximum shred size: • Width: 0. 24 inch (6 mm) • Length: 1 inch (25. 4 mm) • Surface Area: 152 mm 2 Current level of destruction exceeds the level required to meet the NAID standard Excerpt from the NAID Auditing Criteria June 2014

USPS Secure Destruction shred size is more stringent than NAID, DIN, and common US USPS Secure Destruction shred size is more stringent than NAID, DIN, and common US industry practice for documents with sensitive and/or confidential information NAID Surface Area: 1210 mm 2 Dimension: 0. 75” x 2. 5” DIN Standards Level 3 Surface Area: ≤ 320 mm 2 or Strip width: ≤ 2 mm DIN Standards Level 4 Surface Area: ≤ 160 mm 2 and Strip width: ≤ 6 mm (0. 24”) Common Industry Practice Surface Area: 252 mm 2 Dimension: 0. 63” x 0. 63” (5/8” x 5/8”) USPS SD Standard Surface Area: 152 mm 2 Dimension: 0. 24” x 1”

A USPS Secure Destruction industrial cross-cut shredder and paper shred size is pictured below A USPS Secure Destruction industrial cross-cut shredder and paper shred size is pictured below

Secure Destruction CIOSS Plant Locations ( 60 Nationwide) Area SD Plants Baltimore MD Little Secure Destruction CIOSS Plant Locations ( 60 Nationwide) Area SD Plants Baltimore MD Little Rock AR Charlotte NC Raleigh NC Baton Rouge LA North Houston TX Richmond VA Greenville SC Southern MD Birmingham AL North Texas Charleston WV Memphis TN El Paso TX Oklahoma City OK Cleveland OH Nashville TN Fort Myers FL San Antonio TX Columbus OH Pittsburgh PA Jackson MS Shreveport LA Lancaster PA Eastern Austin TX Greensboro NC Capital Metro North Metro GA Rochester NY Jacksonville FL West Palm FL Albuquerque NM Phoenix AZ Southern Louisville KY Detroit MI Great Lakes Palatine IL Anchorage AK Portland OR Indianapolis IN St Louis MO Billings MT Reno NV Milwaukee WI Northeast Central MA Morgan NY #1 Hartford CT San Juan PR Honolulu HI Santa Clarita CA Colorado Springs, CO Salt Lake City UT Sacramento CA Des Moines IA Seattle WA Kansas City MO Northern NJ Pacific Western Omaha, NE Las Vegas NV Spokane WA Minneapolis MN Wichita KS

Existing and new equipment are used to complete the process 1 2 Label and Existing and new equipment are used to complete the process 1 2 Label and Sort Mailpieces Letter-size First-Class Mail® enters the USPS® Combined Input-Output Sub System (CIOSS) processing facility. Verify Mailpieces UAA RTS mail is labeled and sorted for Secure Destruction. USPS® CIOSS Undeliverable Mail Processing (PARS) 3 All SD mail is verified by USPS® employees prior to destruction. 4 5 Recycle Shredded Paper Shred Mailpieces USPS® facilities recycle shredded SD mail. All verified SD mail is fed into an industrial cross-cut shredder at the USPS® facility.

USPS mail verification staff follow a detailed process to evaluate that all mailpieces are USPS mail verification staff follow a detailed process to evaluate that all mailpieces are properly marked for secure destruction 1 Verify that the yellow label says “Secure Destruct”. 4 If there is also a first name on the label, verify that it matches the first name on the letter. 2 Verify that the mail class printed on the label matches the mail class on the letter. Note all SD mail should have a “ 1” on the 5 Verify that the mailpiece has a mailer applied IMB. SD label to indicate first class mail 3 If there is a surname on the label, verify that it matches the 6 last name on the letter. Verify that “ACS<-” appears on the yellow label in the upper right.

Secure Destruction Monthly Mail Volume FY 16 Secure Destruction Monthly Mail Volume FY 16

Secure Destruction Monthly Mail Volume FY 17 Secure Destruction Monthly Mail Volume FY 17

Environmental Benefits YTD FY 17 (Oct – March) Metric Current YTD 21, 296, 008 Environmental Benefits YTD FY 17 (Oct – March) Metric Current YTD 21, 296, 008 Mail Volume Potential MT GHG Eliminated 851. 8 MT Paper Variance -57, 909, 328 Target 79, 205, 336 543. 4 Recycled Capture Rate 2. 69% -814. 3 -1477. 5 -7. 31% 1666. 2 2020. 9 10. 00%

SD Mail Service Expansion to FPARS/Flats Update: § Contract bids received, reviewed analyzed. § SD Mail Service Expansion to FPARS/Flats Update: § Contract bids received, reviewed analyzed. § Recommendation for award put forward to Contracting Officer. § Notice of Intent to Award issued to successful bidder on April 18 th. § Final contract documents in process of being signed. § New flats shredder will be an HSM FA 500. 3 Model

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