February 10, 2026 • 6 minute read
Author: Phyllis Jackson, Senior Manager, US Marketing, UPS

Key Points

• Sustainable business practices are top of mind for many manufacturers. Recent data shows that 62% of manufacturers actively track sustainability regulations and 75% prioritize sustainable packaging materials.¹
• Sustainability goal setting starts with visibility. You can’t manage what you can’t see or measure. Begin by tracking emissions across warehousing and transportation.
• Manufacturers can collaborate with suppliers to build sustainability goals into their contracts.

Meeting your production demands and following sustainable business practices aren’t mutually exclusive—but achieving both is a balancing act. Carlos Roman, Strategic Lead, UPS, shares insight into how manufacturers can harmonize operational efficiency with environmental responsibility.

Q&A With Carlos Roman

Q: What challenges do manufacturers face when trying to balance productivity with environmental responsibility?

A: “Manufacturers are under pressure to deliver products fast and at a low cost. While they may be concerned that introducing emissions goals and sustainable practices may add friction or come at the cost of performance, sustainability and efficiency initiatives are not in conflict. In fact, with the right processes in place, the two will work hand in hand.

The key is being intentional about how you integrate efficiency with environmental responsibilities and compliance. It comes down to integrating sustainable practices from the very beginning. You have to set the right goals and the right leadership habits. You may also have to rethink some of these long-standing operational practices and processes, too.”

Q: What are some of the first steps manufacturers can take?

A: “Sustainability goal setting starts with visibility. You can’t manage what you can’t see or measure.

A good start for manufacturers would be tracking emissions across warehousing and transportation. It’s key to look at emissions from end-to-end within production, logistics, and the entire supply chain. Get the quick wins. Start there and eventually those changes will have a ripple effect.”

Q: What are some of the small sustainability wins that have an impact?

A: “While increasing alternative fuel utilization is a primary strategy for UPS in our goal of carbon neutrality by 2050, we’re also working to reduce the environmental impact of every route we drive by investing in innovative technology solutions, like the On-Road Integrated Optimization and Navigation (ORION) platform. In fact, as of 2024, 30% of UPS’ ground fuel comes from alternative sources, which equates to over four billion miles driven on alternative fuels since 2020.²

On the operational side, manufacturers can boost their sustainability efforts with changes as simple as using energy-efficient lighting and utilities. For example, more than 15% of global UPS facilities are powered by renewable electricity, as of 2024, and select operations run through the night. There are energy reduction costs when you work in off-peak hours.

Other things that add up quickly include automating systems, reducing overproduction, and rightsizing the warehouse layout.”

Q: How does inventory management help with sustainability?

A: “Reducing waste equates to good business. If you’re creating products you don’t need, there’s wasted energy, products, and materials. If those products don’t sell, then you have dead stock. Focusing on reducing waste helps from an inventory management standpoint and saves environmental resources, too.”

Q: The manufacturer-supplier relationship is so important. How can both sides work together to reduce environmental impact?

A: “Sustainability isn’t just about production. It’s about the upstream, the downstream, and collaboration throughout the supply chain. Communication with suppliers can be as simple as setting shared sustainability goals early in the relationship. Or discussing better solutions for package design, shipment consolidation, or sourcing. Supplier accountability has to be included. Manufacturers could even include emission and sustainability goals in their supplier contracts.”

Q: Technology is so integral to production, but how can AI, automation, and digital twins help manufacturers meet their sustainability targets?

A: “Technology provides a huge opportunity to connect all the dots. For example, AI can help identify where waste is occurring or why it’s happening. You can then incorporate automation to address that waste and help standardize processes to boost efficiencies.

Digital twins — virtual replicas of physical operations — allow companies to test a process in a digital environment before making the real-world change. While a digital twin can be complex to implement, it offers a way to quickly experiment and learn without using valuable resources.”

Q: How can UPS help manufacturers realize their sustainability goals?

A: “Our logistics professionals can help manufacturers understand and identify best-in-class solutions and practices so they can set goals and then learn the steps to achieve those goals.

For the big picture, we can help with optimization — inventory, warehouse, and supply chain. Manufacturers need to have sustainability as a pillar in the business’s strategic development and consider ways to use less energy or create less waste. We can provide that consultative direction.

On the product side, our products range from carbon-neutral shipping, which supports projects that help offset emissions associated with our customers’ shipments, to more advanced carbon analysis and reporting dashboards for clients. (Read more about carbon neutral credentials.) There’s also packaging made with recycled materials.”

Q: What should manufacturers be thinking about when planning for the next 5-10 years to meet increasing emissions and sustainability targets?

A: “The expectations and regulations around sustainability and emissions reductions are only going to grow. Manufacturers should consider making sustainable practices more integral to their core business operations. Sustainability isn’t just an initiative you can use for marketing. It needs to be woven into your operations and the way you conduct business.”

¹ “Survey Reveals Manufacturing Professionals Increasingly Prepared for Sustainability Regulations, but Gaps Remain,” Specright, February 13, 2025.
² UPS’ 2024 Greenhouse Gas Emissions statement obtained reasonable assurance from Deloitte & Touche LLP

Individual results and options will vary. UPS makes no promises of any specific outcome in this document but instead provides only example outcomes based on certain UPS customer experiences.