<SEC-DOCUMENT>0001214659-21-003812.txt : 20210401
<SEC-HEADER>0001214659-21-003812.hdr.sgml : 20210401
<ACCEPTANCE-DATETIME>20210401162022
ACCESSION NUMBER:		0001214659-21-003812
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20210401
DATE AS OF CHANGE:		20210401
EFFECTIVENESS DATE:		20210401

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNITED PARCEL SERVICE INC
		CENTRAL INDEX KEY:			0001090727
		STANDARD INDUSTRIAL CLASSIFICATION:	TRUCKING & COURIER SERVICES (NO AIR) [4210]
		IRS NUMBER:				582480149
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15451
		FILM NUMBER:		21798338

	BUSINESS ADDRESS:	
		STREET 1:		55 GLENLAKE PARKWAY NE
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30328
		BUSINESS PHONE:		4048286000

	MAIL ADDRESS:	
		STREET 1:		55 GLENLAKE PARKWAY NE
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30328

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TRILLIUM ASSET MANAGEMENT, LLC
		CENTRAL INDEX KEY:			0000884541
		IRS NUMBER:				042549211
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		TWO FINANCIAL CENTER
		STREET 2:		60 SOUTH STREET, SUITE 1100
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02111
		BUSINESS PHONE:		617-423-6655

	MAIL ADDRESS:	
		STREET 1:		TWO FINANCIAL CENTER
		STREET 2:		60 SOUTH STREET, SUITE 1100
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02111

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TRILLIUM ASSET MANAGEMENT CORP
		DATE OF NAME CHANGE:	20000519

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FRANKLIN RESEARCH & DEVELOPMENT CORP
		DATE OF NAME CHANGE:	19990326
</SEC-HEADER>
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<TYPE>PX14A6G
<SEQUENCE>1
<FILENAME>p41217px14a6g.htm
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<P STYLE="margin: 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notice of Exempt Solicitation Pursuant to Rule
14a-103</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Name of the Registrant: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">United Parcel Service, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Name of persons relying on exemption: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Trillium Asset Management, LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Address of persons relying on exemption: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&zwj;Two Financial Center, 60 South Street, Suite
1100, Boston, MA 02111</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The attached written materials are submitted pursuant
to Rule 14a-6(g) (1) promulgated under the Securities Exchange Act of 1934.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>United Parcel Service, Inc (UPS)<BR>
<U>Shareholder Proposal No.7:<BR>
Report on Paris-based climate change goals</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Zevin Asset Management, LLC, a registered investment advisor, and Trillium
Asset Management, LLC seek your support<SUP>1</SUP> for <B>Proposal No. 7 on the United Parcel Service, Inc. </B>(&ldquo;UPS&rdquo; or
&ldquo;the Company&rdquo;) 2021 proxy ballot. The resolved clause states:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I><U>Resolved</U></I></B><I>: Shareholders request UPS
issue a report, at reasonable cost and omitting proprietary information, describing if, and how, it plans to reduce its total contribution
to climate change and align its operations with the Paris Agreement&rsquo;s goal of maintaining global temperature increases at or below
1.5 degrees Celsius. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Proposal is a straightforward request for UPS to consider adopting
comprehensive goals that we believe will help our Company manage the intensifying risks and opportunities of climate change. Investors
believe that UPS&rsquo;s current climate change strategy does not appear to address the Company&rsquo;s <B><U>total</U></B> carbon footprint
or the science-based objectives of the Paris Climate Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">UPS has taken some positive steps on climate change. However, in view
of UPS&rsquo;s carbon-intensive shipping and logistics business, we believe the Company needs a climate change strategy that fully addresses
the impacts of its airplane fleet and aligns with the Paris Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>For the following reasons, we urge UPS investors to vote <U>FOR
Proposal No. 7</U> urging the board to consider closing gaps in the Company&rsquo;s approach to climate change.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>Summary</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>UPS&rsquo;s climate change strategy does not appear to adequately address its airplane fleet, which accounts for 60% of its direct
emissions.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>To meet the intensifying physical and transition risks associated with climate change and keep pace with peers, UPS should not delay
in setting greenhouse gas (GHG) reduction goals for its airplane fleet.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD>UPS&rsquo;s approach should be clearly based on the science of the Paris Agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">***</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">_____________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>1</SUP> This communication is an exempt proxy solicitation <FONT STYLE="color: #1A1A1A">submitted
pursuant to Rule 14a-6(g)(1) promulgated under the Securities Exchange Act of 1934. </FONT>This is not a solicitation of authority to
vote your proxy and Zevin Asset Management, LLC and Trillium Asset Management, LLC will not accept proxies if sent. Zevin Asset Management,
LLC and Trillium Asset Management, LLC urge shareholders to vote for the proposals discussed in this communication following the instructions
provided on the management&rsquo;s proxy mailing. The cost of this communication is being borne entirely by Zevin Asset Management, LLC
and Trillium Asset Management, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><B>1.</B></TD><TD><B><U>UPS&rsquo;s climate change strategy does not appear to adequately address its airplane fleet, which accounts for 60% of its
direct emissions.</U></B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">UPS has clear greenhouse gas (GHG) reduction goals related to road
transportation.<SUP>2</SUP> However, as UPS confirms in its Statement of Opposition, there is no analogous GHG reduction goal for its
airplane fleet.<SUP>3</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">UPS has stated that it is engaging with industry peers and NGOs to
promote sustainable aviation fuel, and concurrent with those efforts it is evaluating potential emission reduction targets that would
include &ldquo;targets related to our airline fuel emissions.&rdquo;<SUP>4</SUP> In the interim, UPS has stated that it is focusing on
replacing older aircraft and making other fleet improvements to address airline emissions. However, because the GHG emissions from its
airline account for 60 percent of the Company&rsquo;s direct footprint<SUP>5</SUP> and have increased by 22 percent from 2015 to 2019&mdash;leading
to a 16 percent increase in total operational footprint<SUP>6</SUP> &mdash;the company&rsquo;s current efforts are not enough.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Why is UPS satisfied with GHG emissions reduction goals that do not
include its airline? We believe UPS cannot afford to side step this issue. Our Company should act now to consider overall short-, medium-,
and long-term, absolute GHG emission reduction targets for the Company's full carbon footprint, including its airline, aligned with the
Paris Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><B>2.</B></TD><TD><B><U>To meet the intensifying physical and transition risks associated with climate change and keep pace with peers, UPS should not
delay in setting GHG reduction goals for its airplane fleet.</U></B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">UPS should not wait to set an airplane fleet emissions goal, because
its fleet is such an important part of its total corporate emissions. As of 2020, UPS had 277 aircraft that were owned or on finance leases,
along with 311 additional aircraft on operating leases and charters from others, with an additional 13 aircraft on order.<SUP>7</SUP>
In 2019, it was reported that UPS plans to add 50 more airplanes in the coming years.<SUP>8</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The growth in UPS&rsquo;s airline means that UPS&rsquo;s emissions
footprint should continue to rise rapidly, which could put our Company behind peers, off-pace to achieve the reductions necessary to align
with the Paris Agreement, and could inhibit preparations for a low-carbon regulatory atmosphere, potentially leaving UPS unable to meet
customer and shareholder expectations. The Climate Action 100+, a group of 575 investors with $52 trillion in assets under management,
has asked companies to reduce emissions in line with the Paris Agreement.<SUP>9</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">_____________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>2</SUP> <FONT STYLE="font-size: 10pt; color: #1155CC"><U>https://sustainability.ups.com/sustainability-strategy/environmental-responsibility#:~:text=As%20a%20global%20logistics%20company,global%20ground%20operations%20by%202025</U></FONT><FONT STYLE="font-size: 10pt">.
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>3</SUP> Statement of Opposition, 2021 UPS Proxy Statement, page
82.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>4</SUP> Statement of Opposition, 2021 UPS Proxy Statement, page
82.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>5</SUP> Statement of Opposition, 2021 UPS Proxy Statement, page
82.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>6</SUP> <FONT STYLE="font-size: 10pt">2019 UPS GRI Content Index,
page 52. <FONT STYLE="color: #1155CC"><U>https://sustainability.ups.com/media/2019-gri-index.pdf</U></FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>7</SUP> <FONT STYLE="font-size: 10pt">2020 UPS 10-K at p. 18 <FONT STYLE="color: #1155CC"><U>https://www.sec.gov/ix?doc=/Archives/edgar/data/1090727/000109072721000013/ups-20201231.htm</U></FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>8</SUP> <FONT STYLE="color: #1155CC"><U>https://www.supplychaindive.com/news/ups-add-50-planes-air-fleet-2022/564368/</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>9</SUP> https://www.climateaction100.org/</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">UPS&rsquo;s significant airline impacts <FONT STYLE="color: #4D5156; background-color: white">&mdash;</FONT>
and its lack of a specific GHG reduction goal to address those impacts <FONT STYLE="color: #4D5156; background-color: white">&mdash;</FONT>
might put it out-of-step with the scientific-based aims of the Paris Climate Agreement. In 2018, the Intergovernmental Panel on Climate
Change updated the goals of the 2015 Paris Agreement to advise that net carbon emissions must fall 45 percent by 2030 and reach net zero
by 2050 to limit warming below 1.5 degrees Celsius, thereby preventing the worst consequences of climate change. However, in 2020, the
UN reported the world is &ldquo;way off-track&rdquo; from achieving these goals.<SUP>10</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Climate change impacts present risks to investors.<SUP>11</SUP> A warming
climate is associated with increased supply chain disruptions, reduced resource availability, lost production, commodity price volatility,
infrastructure damage, political instability, reduced worker efficiency, and adverse health impacts that disproportionately affect low-income
communities and communities of color.<SUP>12,13</SUP> The U.S. Environmental Protection Agency identifies the transportation sector as
the largest producer of greenhouse gas (GHG) emissions and its emissions are steadily increasing.<SUP>14</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">UPS has acknowledged that its airplane fleet is an important element
of material climate change risks facing the Company. These regulatory, financial, and reputational risks are reviewed by UPS on page 15
of the 2020 10-K (emphasis added):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><I>In the U.S., Congress in the
past several years has considered various bills that would regulate GHG emissions, but these bills so far have not received sufficient
Congressional support for enactment. Nevertheless, some form of federal climate change legislation is possible in the future. Even in
the absence of such legislation, the Environmental Protection Agency could determine to regulate GHG emissions, especially aircraft or
diesel engine emissions, and this could impose substantial costs on us.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><I>In addition, the impact that
the recent re-entry into the Paris climate accord may have on future U.S. policy regarding GHG emissions, on CORSIA and on other GHG regulation
is uncertain. The extent to which other countries implement that accord could also have an adverse direct or indirect effect on us.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>_____________________________</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><SUP>10</SUP></I> <FONT STYLE="color: #1155CC"><U>https://library.wmo.int/doc_num.php?explnum_id=10211</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><SUP>11</SUP></I> https://cornerstonecapinc.com/wp-content/uploads/No-Place-to-Hide_Climate-Change-and-Systemic-Financial-Risk.pdf</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><SUP>12</SUP></I> https://www.ipcc.ch/sr15/</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><SUP>13</SUP></I> https://www.washingtonpost.com/climate-solutions/2020/06/29/climate-change-racism/</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><SUP>14</SUP></I> https://cfpub.epa.gov/ghgdata/inventoryexplorer/</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><I>Potential costs to us of increased
regulation regarding GHG emissions in the U.S. or abroad, <B><U>especially aircraft</U></B> or diesel engine emissions, include an increase
in the cost of the fuel and other energy we purchase and capital costs associated with updating or replacing our aircraft or vehicles
prematurely. We cannot predict the impact any future regulation would have on our cost structure or our operating results. It is possible
that such regulation could significantly increase our operating costs and that we may not be willing or able to pass such costs along
to our customers. Moreover, even without such regulation, increased awareness and any adverse publicity in the global marketplace about
the GHGs emitted by companies in the airline and transportation industries could harm our reputation and reduce customer demand for our
services, especially our air services.<SUP>15</SUP></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">It appears that UPS&rsquo;s peers are rising to the challenge. FedEx
and DHL have made long term commitments to reduce all emissions &ndash; FedEx is targeting carbon neutrality by 2040 and DHL aims to eliminate
all logistics related emissions by 2050.<SUP>16,17</SUP> These commitments evidence long-term thinking and preparedness. UPS could also
consider the use of Sustainable Aviation Fuel (SAF), which can reduce airplane emissions by up to 80%. Many airlines (Lufthansa, American,
British Airways, JetBlue, and more) are already entering into long-term efforts to purchase a limited supply of SAF;<SUP>18,19,20,21</SUP>
this could inhibit UPS&rsquo;s access to this solution. In a world with a low-carbon regulatory framework, the transition costs could
escalate rapidly for UPS, underscoring the advantage of quickly instituting long-term thinking.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Concrete, time-bound goals would help UPS tackle the climate impacts
of its airplane fleet. We know that UPS believes in the utility of sustainability goals, as our Company is already working toward a range
of 2025 environmental goals.<SUP>22</SUP> We believe this makes good business sense, because clear goals can provide a shared sense of
purpose and help drive improvement toward the management team&rsquo;s objectives. <FONT STYLE="background-color: white">According to
the Statement of Opposition, our Company is &quot;evaluating adopting additional, enterprise-wide short-, medium- and long-term emission
reduction targets that will result in additional GHG reductions, including targets relate to our airline fuel emissions.&quot;<SUP>23
</SUP>While we appreciate the Company's commitment to evaluation, </FONT>UPS should join with fellow companies that have large airplane
fleets and act now to set a GHG reduction target that covers its airplane fleet&rsquo;s emissions.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">_____________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>15</SUP> 2020 UPS 10-K, page 15. <FONT STYLE="color: #1155CC"><U>https://www.sec.gov/ix?doc=/Archives/edgar/data/1090727/000109072721000013/ups-20201231.htm</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>16</SUP> https://newsroom.fedex.com/newsroom/sustainability2021/</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>17</SUP> https://www.dpdhl.com/en/responsibility/environment-and-solutions.html</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>18</SUP> https://www.lufthansagroup.com/en/responsibility/climate-environment/fuel-consumption-and-emissions/sustainable-aviation-fuel.html</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>19</SUP> https://www.lanzatech.com/2021/02/09/british-airways-fuels-its-futures-with-second-sustainable-aviation-fuel-partnership/</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>20</SUP> https://news.aa.com/news/news-details/2021/American-Airlines-Builds-on-Commitment-to-Sustainable-Fuels-with-KuehneNagel-OPS-OTH-03/default.aspx</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>21</SUP> http://mediaroom.jetblue.com/investor-relations/press-releases/2020/08-13-2020-152953291</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>22</SUP> https://sustainability.ups.com/media/committed-to-more_sustainability-at-ups.pdf<FONT STYLE="font-size: 10pt">;
<FONT STYLE="color: #1155CC"><U>https://sustainability.ups.com/progress-report/goals-and-progress/</U></FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>23</SUP> Statement of Opposition, 2021 UPS Proxy Statement, page
82.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>3. UPS&rsquo;s approach should b<FONT STYLE="font-size: 10pt">e
clearly based on the science of the Paris Agreement.</FONT></U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As referenced above, the Paris Agreement represents a global consensus
of governments to take action to avoid catastrophic 1.5 C warming. The objectives and science of the Paris Agreement also provide a helpful
guide for companies like UPS to shape their approach. With transportation representing 15.9 percent of global emissions,<SUP>24</SUP>
we believe it is imperative that UPS do its part to reduce emissions in line with science <FONT STYLE="color: #4D5156; background-color: white">&mdash;
</FONT>and that reduction should include its airplane fleet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">UPS&rsquo;s current goal of a 12 percent reduction in absolute GHG
emissions for global ground operations by 2025 provides our Company with a strong foundation to achieve deeper reductions over time. That
being said, the Company does not appear to be on track to meet this goal&mdash;in 2019, they reported a 5.4 percent increase in absolute
emissions since the 2015 baseline year.<SUP>25</SUP> Additionally, UPS&rsquo;s current goal does not include the Company&rsquo;s airplane
fleet, a significant driver of UPS&rsquo;s overall emissions. Neither does the goal commit the Company to the further reductions necessary
to meet the net-zero emissions by 2050 required by the Paris Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Science Based Targets Initiative (SBTi) provides guidance for companies
to set science-based targets with third-party verification.<SUP>26</SUP> As noted in SBTi&rsquo;s most recent progress report, companies
with science-based targets have reduced their combined emissions by 25 percent since 2015, in contrast with a 3.4 percent increase in
emissions from energy and industrial processes over the same period.<SUP>27</SUP> Committing to a verified, science-based, net-zero by
2050 target would help assure investors and customers that UPS is doing its part to combat the climate crisis while proactively managing
its climate-related risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>Conclusion</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">In closing, we believe UPS would
benefit from a more rigorous approach to reducing GHG emissions which includes the substantial emissions coming from its airplane fleet.
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">Our Company can and should engage
with industry peers and work toward the development of sustainable fuels that will decrease such emissions over time. However, this does
not preclude considering a reasonable and transparent goal for total emissions in the interim. Indeed, clear goals (resulting from UPS&rsquo;s
own analysis and judgement) could help UPS accelerate the change necessary to manage climate-related risks and opportunities. At the same
time, investors would have more information to evaluate UPS&rsquo;s strategy and ability to thrive in a low-carbon future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Shareholders are urged to vote <U>FOR</U> Proposal
No. 7 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>following the instructions provided on the Company&rsquo;s
proxy mailing.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>***</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>_____________________________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>24</SUP> https://www.wri.org/blog/2020/02/greenhouse-gas-emissions-by-country-sector</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>25</SUP> https://sustainability.ups.com/media/2019-progress-report.pdf,
page 10.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>26</SUP> https://sciencebasedtargets.org/</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>27</SUP> https://sciencebasedtargets.org/resources/files/SBTiProgressReport2020.pdf,
page 6.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>For questions regarding <B>UPS Proposal No. 7 (Report on Paris-based
climate change goals)</B>, please contact Kate Monahan, Director of Shareholder Advocacy, Trillium Asset Management, <FONT STYLE="font-size: 10pt; color: #1155CC"><U>kmonahan@trilliuminvest.com</U></FONT></I><I>
<FONT STYLE="font-size: 10pt">or 617-532-6651.</FONT></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>IMPORTANT NOTICE: <I>The views expressed are those of the authors
as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be
a forecast of future events or a guarantee of future results. These views may not be relied upon as investment advice. The information
provided in this material should not be considered a recommendation to buy or sell any of the securities mentioned. It should not be assumed
that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected
by the authors on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased,
sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not
guaranteed by us as to its timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is for
informational purposes and should not be construed as a research report.</I></B></P>

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