1.1

Statement from the most senior decision-maker of the organization

1

1.2

Description of key impacts, risks, and opportunities.

Because mail volumes are closely tied to larger macroeconomic trends, economic distress led to a difficult year for our business. The Board and management acted to adjust our plans—cutting costs, reordering priorities, realigning resources to a reduced workload, and refocusing our growth initiatives to better address changing conditions.

The effects of a declining economic environment, the sharp rise in fuel costs, and other factors such as an accelerating shift of transactions and messages from the mail to the internet, resulted in an annual net loss of $2.8 billion dollars.

Additional discussion on these issues can be found in the 2008 Annual Report (pages 21, 24-26) and the 2008 Comprehensive Statement (pages 53-54).

1, 11-12

2.1

Name of the organization.

United States Postal Service

1

2.2

Primary brands, products, and/or services.

8

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Additional information on USPS operations can be found in the 2008 Comprehensive Statement (pages 6-8).

8

2.4

Location of organization’s headquarters.

The United States Postal Service
475 L’Enfant Plaza SW
Washington, DC 20260-4232

—

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

The Postal Services operates within the United States and its territories, and contracts with other national postal operators to provide global delivery service. USPS maintains five International Service Centers (ISCs) which distribute and dispatch mail to foreign countries or to gateway exchange offices.

7

2.6

Nature of ownership and legal form.

8

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

7

2.8

Scale of the reporting organization.

Additional financial and operational information can be found in the 2008 Annual Report (pages 48-66).

2

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

2

2.10

Awards received in the reporting period.

1, 11, 29

3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

5

3.2

Date of most recent previous report (if any).

5

3.3

Reporting cycle (annual, biennial, etc.).

5

3.4

Contact point for questions regarding the report or its contents.

Please e-mail us at sustainability@usps.gov

We can also be reached at
USPS Office of Sustainability
475 L’Enfant Plaza SW
Washington, DC 20260-4232

—

3.5

Process for defining report content.

5

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).

7

3.7

State any specific limitations on the scope or boundary of the report.

There are no specific limitations on the scope or boundary of this report. However, we may choose to include additional metrics in future reports as we refine our sustainability strategy and our data collection efforts.

—

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

This report covers all operations, as defined in the 2008 Annual Report and 2008 Comprehensive Statement on Postal Operations. We intend to report on the same operations in future years.

—

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

Energy consumption and total miles traveled are estimated based on spend. Municipal solid waste generated and recycled is estimated. Scope 1 and Scope 2 GHG emissions have been third-party verified.

13-29

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

Not applicable; 2008 represents our first reporting effort.

—

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Not applicable; 2008 represents our first reporting effort.

—

3.12

Table identifying the location of the Standard Disclosures in the report.

38-43

3.13

Policy and current practice with regard to seeking external assurance for the report.

5

4.1

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

For additional details on governance structure, see “USPS Leadership” at usps.com/about or the 2008 Comprehensive Statement (pages 7-8).

8

4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

Carolyn Lewis Gallagher serves as the independent Chairman of the Board of Governors.

—

4.3

For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

The 11-member Board of Governors consists of 9 independent, non-executive members.

—

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

32

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

Compensation for Postal Service leadership is linked to performance through the National Performance Assessment (NPA) and through approved goals. For members of the Board of Governors, compensation is set by statute and thus not directly linked to performance.

39

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

Governors and all employees are covered by 5 CFR Part 2635, Government Ethics for Executive Branch Employees. This document can be found at www.usoge.gov/laws_regs/regulations/5cfr2635.html. The Postal Service’s legal department maintains a database of Governors’ and officers’ assets and financial interests to ensure that conflicts of interest are avoided.

40

4.7

Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.

Each governor of the Postal Service’s Board of Governors is appointed by the President with the advice and consent of the Senate. It is in the President’s best interest to select governors that are qualified to advise Postal Service leadership on all relevant topics, including economic, environmental, and social topics.

40

4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

For additional information on mission and values, please refer to the 2008 Comprehensive Statement (pages 5, 25 - 33, 49 - 51).

11

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

The Board of Governors directs and establishes policies, objectives, and long-range goals for the Postal Service in accordance with title 39 of the United States Code.

For additional information on governance, please refer to the 2008 Comprehensive Statement (pages 6-8).

—

4.10

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

The Postal Service’s Board of Governors evaluates its own performance annually under the direction of the Governance and Strategic Planning Committee. It is in the Committee’s best interest to incorporate economic, environmental, and social performance into these discussions.

40

4.11

Explanation of whether and how the precautionary approach or principle is addressed by the organization.

As an organization with utmost concern for our environment, we intend to utilize sound judgment with every decision related to our impact. In addition, our conservation culture encourages all employees to consider the consequences of their activities, both at work and in their personal lives.

40

4.12

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

While the Postal Service is not subject to Executive Order 13423 or the renewable energy provisions of the Energy Policy Act of 2005 (EPAct), it seeks to fulfill the spirit and intent of these energy directives by voluntarily reporting its progress to the Federal Energy Management Program to create a more comprehensive view of energy management efforts across the federal government. Many of our energy and fuel use reduction goals are based on guidance provided in the Executive Order and EPAct.

14

4.13

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: has positions in governance bodies, participates in projects or committees, provides substantive funding beyond routine membership dues, or views membership as strategic.

8, 14,

26

4.14

List of stakeholder groups engaged by the organization.

USPS has not yet embarked on a comprehensive process to engage stakeholders around environmental and social issues. However, this report represents a step toward those conversations and we hope that through this first attempt at communicating our sustainability performance, we can expand the dialogue. In the future, we plan to engage employees, customers, business partners, and other stakeholders more broadly to provide guidance on our sustainability progress and performance over time.

11-36

4.15

Basis for identification and selection of stakeholders with whom to engage.

See 4.14.

11-36

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

See 4.14. General information on stakeholder engagement can be found in the 2008 Comprehensive Statement (pages 9-11, 28, 32, 39)

11

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

As mentioned above, USPS has not yet embarked on a comprehensive process to engage stakeholders around environmental and social issues. However, general information on key topics and concerns raised through stakeholder engagement can be found in the 2008 Comprehensive Statement (page 12).

26

DMA: EC

Disclosure of management approach: Economic

Additional information on economic performance are provided in the 2008 Annual Report (pages 47 - 51, 65).

2, 7

EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

For more information on USPS’s economic indicators, please reference the 2008 Annual Report (pages 47 - 51).

2

EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change.

Climate change is an important global issue with potential impacts to natural systems, human health, and economic prosperity. Measurement and management of the greenhouse gases (GHG) that may contribute to climate change is a management imperative. We are working to improve our understanding of GHG impact, mitigate risk factors, ensure compliance with regulations, and identify new business opportunities.

—

EC3

Coverage of the organization’s defined benefit plan obligations.

Additional information on benefit plan obligations can be found in the 2008 Comprehensive Statement (page 7, 17).

30

EC4

Significant financial assistance received from government.

8

EC8

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Looking at the entire mail value chain, the Postal Service is just a small part of an economic engine that generates hundreds of billions of dollars in sales, salaries, and supplies that benefit communities — large and small — from coast to coast.

33-36

EC9

Understanding and describing significant indirect economic impacts, including the extent of impacts.

7

DMA: EN

Disclosure of management approach: Environmental

11

EN3

Direct energy consumption by primary energy source.

USPS monitors direct energy use by segmenting into transportation and facility use.

13

EN4

Indirect energy consumption by primary source.

13

EN5

Energy saved due to conservation and efficiency improvements.

USPS is working to quantify energy savings that can be directly attributed to conservation and efficiency improvements.

15, 18

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

16, 15, 19

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

15, 16

EN16

Total direct and indirect greenhouse gas emissions by weight.

23

EN17

Other relevant indirect greenhouse gas emissions by weight.

23

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

EN

Total weight of waste by type and disposal method.

23

EN26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

11, 23-28

EN29

Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

13-29

DMA: LA

Disclosure of management approach: Labor Practices and Decent Work

30

LA1

Total workforce by employment type, employment contract, and region.

For additional information on the USPS workforce, please refer to the 2008 Annual Report (pages 23, 64).

2

LA4

Percentage of employees covered by collective bargaining agreements.

More than 85% of our career employees are covered by collective bargaining agreements. Our labor force is primarily represented by the American Postal Workers Union (APWU), National Association of Letter Carriers (NALC), National Postal Mail Handlers Union (NPMHU), and National Rural Letter Carriers Association (NRLCA).

—

LA5

Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

Our collective bargaining agreements require that we provide advance notice to our unions of certain matters that relate to wages, hours or working conditions. The period of advance notice varies depending on the terms of the bargaining agreement and the nature of the issue. By law, we also provide a program of consultation with management associations (National Association of Postal Supervisors, National League of Postmasters, and National Association of Postmasters of the United States), representing supervisory, managerial, and other non-bargaining employees in the field. These consultations provide the opportunity to address issues and to participate directly in the planning and development of programs and policies impacting members of these associations.

—

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.

For additional information on workplace safety, please refer to the 2008 Comprehensive Statement (pages 54-55).

2, 31

LA8

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

In addition to our Employee Assistance Program, we offer the National Medical and Occupational Health Program, through which we provide preventative medical programs in health counseling, education, and training, manage the medical records of employees, and assist in the prevention of job-related injuries and illness.

—

LA11

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

Information on skills management and learning can be found in the 2008 Comprehensive Statement (pages 25, 26).

—

LA12

Percentage of employees receiving regular performance and career development reviews.

All non-bargaining unit management and administrative employees are subject to annual reviews. At this time, bargaining unit employees do not receive annual performance reviews as per the terms of each negotiated agreement.

2

LA13

Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.

Additional information on workplace diversity is provided in the 2008 Comprehensive Statement (pages 26-27).

31

DMA: HR

Disclosure of management approach: Human Rights

Additional information is available in the 2008 Comprehensive Statement (pages 25-33).

28

HR4

Total number of incidents of discrimination and actions taken.

Additional information is available in the 2008 Comprehensive Statement (pages 31, 32).

2

HR5

Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.

There were no operations identified in which the right to exercise freedom of association and collective bargaining were at significant risk in 2008.

43

DMA: SO

Disclosure of management approach: Society

33-36

SO1

Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

—

SO5

Public policy positions and participation in public policy development and lobbying.

While the Anti-Lobbying Act (18 U.S.C. 1913) prohibits USPS from using postal funds to communicate with Congress except through ‘official channels’, USPS may contact Congress directly to educate or urge action on postal policy issues.

43

DMA: PR

Disclosure of management approach: Product Responsibility

23-28

PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

—

PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Information about the Postal Service’s customer satisfaction measurement practices can be found in the 2008 Comprehensive Statement (pages 10, 11).

LT2

Breakdown of fleet composition.

Information on fleet composition can be found in the 2008 Annual Report (page 27).

—

LT3

Description of policies and programmes on the management of environmental impacts, including: 1) Initiatives on sustainable transportation (e.g., hybrid vehicles), 2) modal shift, and 3) route planning.

18-21

LT4

Description of initiatives to use renewable energy sources and to increase energy efficiency.

15-17,

LT5

Description of initiatives to control urban air emissions in relation to road transport (e.g., use of alternative fuels, frequency of vehicle maintenance, driving styles, etc.).

18, 24

LT14

Description of policies and programs for public access to mail services (e.g., distance to Post Office and mailboxes).

7

LT15

Provision of logistics and transportation core competencies to deliver humanitarian needs locally and globally.

33-36