UPS (NYSE:UPS) announced its strategic priorities and objectives at the conference attended by investors and analysts. Investors.ups.com At the event, which can be viewed at www.UPS.com, UPS highlighted the priorities of its customer-first, people-centric and innovation-driven strategy. In the event, where targeted growth areas including small and medium-sized enterprises, health services and international organization were also discussed, 2023 financial targets as well as environment, society and governance targets were revealed.
- Prioritizing the Customer: UPS's Customer First strategy aims to provide the best digital experience powered by the company's global smart logistics network. With this strategy, the company will outline the steps it is taking to make doing business with UPS easier and more rewarding. The Customer First strategy focuses on eliminating the difficulties encountered in running a business. This is measured as gains in the Net Promoter Score (NPS). The company aims to have a Net Promoter Score of 2023 or higher for 50.
- People Oriented: With this strategy, UPS will leverage the practices it implements to improve the employee experience and increase the likelihood that an employee will recommend UPS as a great place to work. The company has set a target of employees recommending the company for 2023 at 80 percent or more.
- Based on Innovation: UPS will highlight its technology and productivity initiatives, demonstrating its approach to creating shareholder value by consistently delivering higher return on investment capital and returns to shareholders through dividends and share repurchases.
“We are creating a new UPS that is rooted in the company's values,” said Carol Tomé, UPS CEO. “Our strategic priorities are changing to reflect the changing needs of our customers and our business, and what matters most to our stakeholders.”
2023 Financial Targets
The company evaluates the following topics in line with its 2023 financial targets:
- Consolidated revenue of approximately $98 billion to $102 billion.
- Consolidated regulated operating profit of approximately 12,7 percent to 13,7 percent.
- Retained capital expenditure of approximately $2021 billion to $2023 billion from 13,5-14,5.
- Regulated return on investment capital of approximately 26 percent to 29 percent.
Because it is not possible to foresee or provide a reconciliation that reflects the impact of valuation adjustments on future pensions or the impact of potential unexpected adjustments, the company can only provide guidance on operating profit and return on investment capital on a regulatory basis.
Environment, Society, Governance Goals
UPS also announced a new set of company-wide environmental, social and governance goals, including a commitment to offset carbon emissions in scopes 2050, 1 and 2 by 3. Environmental sustainability goals for 2035 include:
- Reducing carbon dioxide emissions by 50 percent for each package delivered as part of global small package operations.
- Running 100 percent of company facilities with renewable energy.
- 30% of the fuel used in the global air fleet is sustainable aviation fuel.