®

Achieving Zero Waste:

A Greening the Mail Initiative

Presented by Ronald Robbins Co-Chair, Improving Mail Recyclability and Source Reduction Subcommittee,

Greening the Mail Task Force

Colchester, VTPCC Workshop

September 17,2008

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Overview

The Vision of Zero Waste How do We achieve it? Customer Focused Zero Waste

Source ReductionWaste Reduction

Discarded Lobby Mail Recycling The Backhaul Concept & Contracts Greenhouse Gas Implications Conclusions

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The Vision of Zero Waste

A Zero Waste strategy improves upon "cleaner production" and "pollution prevention" strategies by providing a visionary endpoint that leads us to take larger, more innovative steps.

● Two Basic Sub-Strategies:

Source Reduction: Reducing “Undeliverable as Addressed” (UAA) Mail

Waste Reduction: Recycling 100% of All Waste (incl. UAA and DLM Mail)

Managing Waste as a Commodity

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How Do we Achieve Zero Waste?

Start with a Vision of Sustainability

Inventory Major USPS Solid Waste Streams

Show Market Opportunities for Commodity Sales

Leverage Strategies that minimize waste sorting

Work with Mailers to Reduce UAA Mail and

Right Understanding Leads to Right Action

● Know your Costs and Market Opportunities

For more ideas see: www.zerowaste.org

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Customer Focused Zero Waste

Zero Waste Extends to Our Customers ● 1st Reduce Costs of UAA Mail (Source

Reduction … everyone benefits)● All Mail is Recyclable● USPS Northeast Area provides Lobby

Recycling Serves as the Model for the National Rollout

of Lobby Recycling Provides Solution Where Community

Program Does not Recycle Mail

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FY04-FY08 UAA Volumes / CostsFY04-FY08 UAA Volumes / CostsFY04 FY08

Vol(Billions)

Cost(Millions)

Vol(Billions)

Cost(Millions)

UnitCost

Forwarding 1.985 $ 422 1.789 $ 326 $ .18

Return-To-Sender 1.603 $ 822 1.436 $ 727 $ .51

Waste 6.135 $ 270 6.851 $ 365 $ .05

Other $ 343 $ 221

Total 9.7 $ 1,856 10.1 $ 1,639

Impact Of Undeliverable –As-Addressed (UAA)

Customer Focused Zero Waste – Source Reduction

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Postal Service™ Goal To Cut Cost Of Processing Undeliverable-As-Addressed (UAA) Mail In Half By 2010

High-Quality Addressing — Current, Correct, And Complete

Improve List Quality Manage Change-of-Address

Success Depends Upon Mailers And Postal Service Working Together To Achieve The Goal!

Strategic Transformation Plan

Customer Focused Zero Waste – Source Reduction

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Each Year, Approximately 16% Of The American Population Moves Or Changes Their Mailing Address

USPS® Processes Over 43 Million Permanent Change-of-Address Orders Each Year

Number One Reason Why Mail Is Undeliverable-As-Addressed

● 68% Of UAA Related To Customer Moves

Moving Customers And The Mail

Customer Focused Zero Waste – Source Reduction

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Move Update Requirement Coming Changes

New Move Update Requirements Scheduled For Implementation In November 2008

Federal Register Announcement Published September 28, 2007:

● Standard Mail Added● Frequency Changed To Every 95 Days

Same Options Available For Compliance With Move Update Requirement

● Alternative Method Not Allowed ForStandard Mail

Customer Focused Zero Waste – Source Reduction

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Move Update Methods

NCOANCOALink Link ®® (Change-of-Address)(Change-of-Address)

Intelligent Mail Intelligent Mail ®® – OneCode ACS – OneCode ACS ™™

Alternative MethodsAlternative Methods

FASTFASTforward forward ®®

Ancillary Service EndorsementsAncillary Service Endorsements

ACS ™ – Address Change ServiceACS ™ – Address Change Service

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www.usps.com/ncscwww.usps.com/ncsc www.ribbs.usps.govwww.ribbs.usps.gov

Customer SupportCustomer Support

1-800-238-31501-800-238-3150

For More Information

Your Postal Customer Council Is Always A Great Resource For Information!

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Economics of Zero Waste ($/ton)

Waste Value as Waste

Value as a Commodity

Benefit of Zero Waste

Wood -$120 0 $120

Mixed Paper -$120 $85 $205

Cardboard -$120 $140 $260

Plastic -$120 $200 $320

Metal -$120 $220 $340

Aluminum* -$120 $2,580 $2,700

Lead* -$4,000 $2,400 $6,400

Copper* -$120 $7,880 $8,000

For Metal Market Values See: http://www.metalprices.com/#

Customer Focused Zero Waste – Waste Reduction

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Turning Waste into A Commodity

Baled & Shredded Undeliverable Mail: Increases Value & Prevents Identify Theft

Customer Focused Zero Waste – Waste Reduction

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Discarded Lobby Mail Recycling Goals:● Increase USPS revenue through the sale of

recyclable materials ● Decrease USPS solid waste disposal costs

through increased recycling ● Enhance the public image of the USPS and

practice Corporate Social Responsibility

Discarded Lobby Mail Recycling

Customer Focused Zero Waste – Waste Reduction

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Internal Program Drivers

Management Commitment● Overall Total Costs of Handling UAA Mail $365

million in 2008 ● Our Recycling Revenue goal is $40 million by 2010● Discarded Lobby Mail is also an enormous

solid waste disposal cost 15.6 Million Post Office Boxes in the USA

Each Post Office Box generates 77 pounds of standard mail per year – rule of thumb for determining DLM waste volumes

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External Program Drivers

Heightened Public Visibility●Public & congressional concerns with recycling

of mail GAO audit of USPS recycling program

●USPS is most trusted federal agency in America Enables USPS to Recycle Discarded Mail

●Our actions have synergistic impacts on recycling in the Direct Marketing industry and among consumers

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Analysis of Discarded Lobby Mail Generation

15.6 Million Post Office Boxes generate the following volumes of Discarded Lobby Mail;

Nationwide, an estimate 604,566 tons of DLM was

generated in FY07

Nationwide, an estimate 604,566 tons of DLM was

generated in FY07

An estimated 356,694 tons of DLM was discarded in USPS Lobbies in FY07*

An estimated 356,694 tons of DLM was discarded in USPS Lobbies in FY07*

*Source: Calculations derived from 2006 Household Diary Study; 2007 Postmaster General’s Annual Report and; USPS National Delivery Statistics website

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Discarded Lobby Mail: Key Elements

Postmaster Commitment● But Employees are the key to success● A District Recycling Plan; Creates “buy in”

Standard Box Customer Notice

Backhauling Infrastructure

Standard Blue Recycling Containers●Identifies Acceptable Mixed Paper types.

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Discarded Lobby Mail Container

Conventional Recycle Logo USPS Recycle Message

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USPS SOAR Logo – Saving of America’s Resources

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Northeast Area DLM Recycling

2007 FINDINGS

7,175 tons of DLM recycled in 2007● 93% of Area’s 3,200 Retail facilities

Participate

DLM Recycling generated $292,000● Substantially reduced Retail trash and

waste disposal costs

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Western New York140-149

Boston021-022

NORTHEAST AREA

Albany120-123,128-139

New Hampshire

030-038

Vermont054,056-059

Connecticut060-069

Southeastern New England

020,023-029

Massachusetts010-019,055

Maine039-049

Recycling ContractsNovember 2008

J.C. Fibers

Solvay Paperboard AmerisouthRecycling

Goodman & Sons

Willimantic Waste Paper

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Nearly 9/10thths of a Billion Pounds Recycled

Miscellaneous (glass, textile),

179,586

Cardboard, 91,073,100

Other Ferrous Metals,

44,999,772

Electronic Equipment,

137,334

Mixed Plastics, 1,230,368

Aluminum, 6,248,799

Mercury Lamps, 381,963

Wood, 29,145,612

Tires, 4,534,245

Mixed Paper, 694,911,340

USPS Northeast Area Ten Year Summary: 1997 to 2006

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2006: USPS Northeast Area GHG Reductions

Metals, 513

Other, 569

Paper, 68,171

Plastic, 15,591

Plastic Paper Metals Other

85,203 MTCEThis is equivalent to the elimination

of 35,823,424 gallons of gasoline

MTCE = Metric Ton Carbon Equivalent

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USPS Northeast Area Carbon Footprint Recycling & Waste prevention offset

Delivery Fleet Greenhouse Gas Emissions

The Annual Carbon Calculus GHGMTCE

IMPACT

USPS NEA Recycling/Prevention Impact

85,203 CREDIT

USPS NEA Delivery Fleet Emissions

84,787 DEBIT

NET IMPACT (Carbon Benefit) 416 NEUTRAL

Source: EPA Warm Model Calculations: 2008MTCE = Metric Tons Carbon Equivalent

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Conclusions

Leadership Creates Zero Waste Vision● Continual Improvement essential● Team work, Contracts, Vehicles, Plans & tracking

system are key to success Long Term Sustainable Program

● Increase mailer usage of Move Update Programs, especially the Intelligent Mail Barcode Program

● Establish nationwide Recycling Infrastructure Strategic Commitment to Recycling

● Consistent with USPS Sustainability & Climate Change Initiatives

● Program Expansion aimed at meeting Customer’s needs

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“You can help reduce waste at the source by taking

advantage of USPS products and services that improve

address quality and the USPS will do it’s best to make the

mailing industry sustainable, now and in the future”

Conclusions