Doha: UPS recently hosted its investor and analyst conference where the company highlighted priorities for its Customer First, People Led, Innovation Driven strategy, and discussed targeted areas of growth which include small and medium-sized businesses, healthcare and international. During the event, the company also announced its 2023 financial targets and discussed newly established ESG targets.
The company’s Customer First strategy strives to provide the best digital experience powered by its global smart logistics network. The company will showcase the actions it is taking to make it simpler and more helpful to do business with UPS. Customer First focuses on removing friction when doing business with UPS, as measured by gains in Net Promoter Score, or NPS. The company has targeted a 2023 NPS score of 50 or higher.
The company discussed the measures it is taking to improve the employee experience and increase the likelihood that an employee recommends UPS as a great place to work. The company has established a 2023 “likelihood to recommend” target of 80 percent or higher. By highlighting technology and productivity initiatives, the company addressed its approach to creating shareowner value by delivering consistently higher returns on invested capital, as well as returns to shareowners through dividends and share repurchases.
“We are creating a new UPS, rooted in the values of the company. Our strategic priorities are evolving to reflect the changing needs of our customers and our business, and what matters most to our stakeholders,” said Carol Tomé, UPS Chief Executive Officer.
The company discussed its 2023 financial targets which include: Consolidated revenue ranging from approximately $98bn to approximately $102bn; Consolidated adjusted operating margin ranging from approximately 12.7 percent to approximately 13.7 percent; Cumulative capital spending from 2021–2023 of approximately $13.5bn to approximately $14.5bn; and Adjusted return on invested capital ranging from approximately 26 percent to approximately 29 percent.
The company also announced a new set of company-wide ESG targets, including its pledge to be carbon neutral across scope 1, 2 and 3 emissions in its global operations by 2050. Interim 2035 environmental sustainability targets include: about 50 percent reduction in CO2 per package delivered for its global small package operations; 100 percent of company facilities powered by renewable electricity; and 30 percent of the fuel used in its global air fleet be sustainable aviation fuel.
