UK Gender Pay Gap Report, 2018

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What We Stand ForWe believe that diversity is critical to our business. The extent that UPS embraces a diverse workforce and practices inclusion directly impacts our success. As a global company doing business in over 220 countries, diversity exists everywhere around us, but it is our approach to inclusion that helps UPS to recognise, develop and maximise the skills of our global team.

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At UPS, we have a strong commitment towards a diverse and inclusive workplace where everyone can reach their true potential. Equal opportunities, fair treatment and an inclusive workplace environment are of utmost importance. UPS again proved its commitment to diversity and inclusion on a global scale in 2018 by donating $10 million to diversity and inclusion programs around the world.

UPS utilizes Business Resource Groups (BRGs) to serve as an extension of the company’s broader diversity and inclusion strategy. They reflect UPS’s culture of teamwork and integrity and are a valuable skill and development tool for employees of all backgrounds. Our BRGs enable unique thinking into different points of view and perspectives that can help us meet our enterprise growth objectives and initiatives across business units. We enable the power of diverse thinking to influence our company, its leadership, and the solutions and services we provide our customers.

At UPS, we continue to strive for progression. Within our organization, we are working hard to increase diverse representation across all business units and at all levels. Attracting, developing and advancing women at all levels remains critical to our business and is an essential element of an inclusive workplace.

Diversity and inclusion makes up our everyday activities across the globe. We don’t just want to comply, we want to set the example. UPS is expanding its mind-set outside our organization this year to further our dedication to it.

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Understanding the Pay GapWHAT DOES THE PAY GAP MEAN? The gender pay gap is defined as the difference in the average pay between men and women.

In common with many other large employers, our gender pay gap is driven by employing more males then females at a senior level and employing more females in junior and support roles.

We are committed to understanding and proactively reducing the gap by taking actions that will improve the diversity and inclusion of our business.

WHAT ABOUT EQUAL PAY? We have a gender-neutral approach in determining pay for our roles at all levels and we regularly monitor this to ensure we continue to meet legal and moral obligations.

Jennifer Herkt HR Director

DAY TO DAY WORK Every day we act to improve progression opportunities for women in our business.

• We provide inclusive leadership training and education, helping to raise awareness of and challenge unconscious bias.

• We actively seek to ensure diversity in hiring managers and others involved in recruitment and selection decisions.

• We promote employee stories through our internal communications, highlighting the diversity of our workforce.

• Through our people development process, we identify and nurture a pipeline of talented women.

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Living an Inclusive CultureUPS is involved in a number of initiatives and programmes to ensure that the value we place on diversity and inclusion is put into practice.

EMPLOYEE NETWORKSOur business resource group, the Women’s Leadership Development (WLD) brings together female and male colleagues from across the organisation and at all levels to challenge and inspire them.

It focuses on the professional and personal development of its membership through strategic planning initiatives that:

• Address the challenges unique to women in business;

• Provide tools necessary for business success;

• Unveil programs and resources to accelerate growth for the business and the community;

• And encourage leadership.

DRIVING CHANGE WITH OTHERSUPS is a founding member of the Catalyst CEO Champions for Change, and our active partnership with Catalyst at all levels helps to accelerate progress for women.

Aligning with our viewpoint that diversity and inclusion are part of our core values, UPS is also a member and signatory of The CEO Action for Inclusion pledge.

STATUTORY DISCLOSURESUPS has three legal entities with at least 250 employees: UPS Limited, UPS SCS (UK) Limited, and Polar Speed Distribution Limited. Under the regulations we are required to report our gender pay gap data for each of these entities, as set out below.

Advancing the diversity and inclusion movement is a corner-stone of our company’s values. Our support for initiatives that will make a real difference in people’s lives in our communities is an extension of our dedication to help advance social and gender equality around the globe. \– Eduardo Martinez, UPS Chief Diversity and Inclusion Officer

COMPANY

UPS Ltd

UPS SCS Polar Speed

MEAN PAY GAP (%)

-8.17

-18.32

+12.68

MEDIAN PAY GAP (%)

-8.96

-2.24

+0.78

MEAN BONUS GAP (%)

+10.64

-35.42

+7.29

MEDIAN BONUS GAP (%)

+44.09

-65.69

+60.46

PROPORTION OF MALES RECEIVING BONUS (%)

10.27

21.84

4.52

PROPORTION OF FEMALES RECEIV-ING BONUS (%)

11.40

12.08

8.93

DECLARATIONI confirm that UPS’s gender pay gap calculations are accurate and meet the requirements of the Regulations. The calculations, data and assertions contained in this publication are in line with the methodology provided in The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

COMPANY

UPS Ltd

UPS SCS

Polar Speed

TOP QUARTILE - MALES

88.09

75.20

67.19

TOP QUARTILE - FEMALES

11.91

24.80

32.81

UPPER MID QUARTILE - MALES

90.04

67.74

87.30

UPPER MID QUARTILE - FEMALES

9.96

32.26

12.70

LOWER MID QUARTILE - MALES

81.58

70.97

82.81

LOWER MID QUARTILE - FEMALES

18.42

29.03

17.19

LOWER QUARTILE - MALES

70.27

66.13

75.00

LOWER QUARTILE - FEMALES 29.73

33.8725.00

PROPORTION OF MALES AND FEMALES BY PAY QUARTILE (%)

MARK VALE UPS PRESIDENT, UK, IRELAND & NORDICS

PHOTOKey: % < 0 denotes male pay > female; % > 0 denotes male pay < female.

Find Out More UPS strives to create a workplace that is inclusive and nurtures employees by encouraging, valuing and leveraging diversity of thought, perspective and approach to foster an environment where both business and personal objectives are achieved.

© 2018 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

To learn more about the company’s diversity and inclusion practices, visithttps://sustainability.ups.com/committed-to-more/diversity-and-inclusion/

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