1. No category

Making Commerce Flow More
Efficiently and Sustainably,
For Everyone
Transportation and Logistics are the
Circulatory System of the Economy
Ryder provides transportation and
logistics solutions that ease complexity
and increase efficiency for companies
of all sizes. Our people, vehicles, and
network of operations keep goods and
materials flowing efficiently so that the
economy can grow and thrive. We’re
branching out into new solutions that
help Ryder and its customers reduce
energy consumption and greenhouse gas
emissions. We provide jobs and careers
for an ever-more diverse population,
and give a portion of our profits back
to our communities. All these contributions
to sustainability stem from the same
source: our commitment to getting
the right results, the right way.
Ryder System, Inc. Corporate Sustainability Report
2
Corporate Sustainability Starts
with Corporate Governance
Our long-term sustainability springs from
a commitment to high ethical standards
and strong corporate governance that
goes well beyond laws, rules, and regulations.
We take the long view about everything
essential to our business, and we’re transparent
about our plans for succeeding today while
investing for tomorrow. This includes expanding
our engagement with stakeholders to share the
many ways our industry can become more efficient
with energy and reduce greenhouse gas emissions.
Because sustainability for Ryder means success
for all our stakeholders: shareholders, customers,
employees, suppliers, communities, and society.
In 2011, we committed to substantially
expanding our reporting on sustainability, well
beyond existing communications and resources
already available to stakeholders. For example,
this Report includes expanded and enhanced
disclosures as well as newly introduced metrics
related to the environment, our operations, and
the workplace.
3
Ryder System, Inc. Corporate Sustainability Report
Ryder is Innovating for the Environment
Ryder addresses the whole ecosystem
of transportation and logistics with new
solutions that are energy-efficient and
help to reduce greenhouse gas emissions.
We’re investing in low-emission
technologies, using resources and
facilities more efficiently, and giving
customers more options for greening
their supply chain and fleet networks.
From sustainable leasing for commercial
fleets to fresh ideas for global supply
chains, Ryder is planting the seeds of
environmental innovation for tomorrow.
In 2011, Ryder invested in 240 heavy-duty,
low-emission trucks powered by natural gas
and deployed them in Arizona, California, and
Michigan. In addition, we’re partnering with
the public sector to create a new natural gas
trucking corridor spanning much of Southern
California. This corridor is a vital addition to the
nation’s growing infrastructure for low-emission
commercial transportation. Please see page 51
for more information.
Ryder System, Inc. Corporate Sustainability Report
6
Ryder Keeps Sustainability
Safe and Secure
In nature, survival of the fittest is the rule.
The same goes for supply chains and
homeland security: the fittest transportation
and logistics companies deliver most
effectively. Keeping cargo safe and
secure helps to make global commerce
more efficient and sustainable. Thefts
that prevent goods from reaching their
destinations cost time, money, energy,
and emissions to replace. The financial
and environmental costs of vehicle
accidents and breakdowns also ripple
outward long afterward. Ryder is an
industry leader in transportation safety
and in keeping supply chains and national
frontiers safe and secure – especially at
some of North America’s most challenging
border crossings.
In 2011, Ryder’s Group Director of International
Safety, Health and Security, Bill Anderson,
was recognized by Security magazine as one
of the industry’s most influential security
executives. On page 35 of this Report, he
offers a perspective on effective strategies
for addressing growing threats to commercial
transport vehicles, cargoes, and national
security. Our reporting on security begins
on page 34.
7
Ryder System, Inc. Corporate Sustainability Report
Ryder Invests in its People
and Communities
Like trees, healthy communities rely
on deep roots in order for their leaves
and branches to grow and reach upward.
Ryder’s roots go back nearly 80 years,
including a long tradition of giving back
through philanthropy and employee
volunteerism. At the same time, we
are embracing greater diversity in our
workforce, finding new ways to invest
in developing our people’s full potential,
and playing a more active role in society’s
search for sustainable development.
The more we can help our customers,
people, and communities flourish, the
bigger the difference we can make.
In 2011, Ryder joined the U.S. Chamber of
Commerce Veterans Employment Advisory
Council (VEAC), which helps improve career
opportunities for veterans, and we pledged
to hire a total of 1,000 veterans by 2013 as part
of the Chamber’s “Hiring Our Heroes” program.
Before the year ended, we hired more than 600
veterans and made grants totaling US$125,000
to organizations assisting veterans in their return
to civilian society.
Ryder System, Inc. Corporate Sustainability Report
10
Table of Contents
Profile
Governance
Environment
Ryder in Context
15
Board of Directors
About This Report
16
Executive Statement:
Lynn Martin
on Governance 31
2011 Achievements
& Recognition
CEO Letter
Corporate Overview
30
17
19
21
Stakeholder Perspective:
Will Allen,
Growing Power
25
Stakeholder Perspective:
Rex Lowe,
iGPS
26
Ethics and
Compliance
Security Reducing Carbon
in Customer
Transportation
and Logistics
Policy and
Responsibility
People
Executive Statement:
Bill Anderson
on Meeting
Security Threats
35
Safety 59
Charitable Giving
Safety Strategies
60
Special Feature:
Drivers of the Year
Stakeholder Perspective:
Peter Giamalva,
American Red Cross 74
62
Diversity and
Inclusion
64
41
43
32
34
Community
Special Feature:
The Green Challenge 44
Recruiting
65
Fuel and Emission
Reduction – Strategies
and Technologies
45
Health and
Wellness
65
Executive Statement:
Nanci Tellam
on Natural Gas
46
Special Feature: Ryder and
Howard University 66
Executive Statement:
Scott Perry
on NACFE
49
Learning and
Development
67
Employee
Engagement
68
Emission Reporting
50
Special Feature:
Natural Gas Trucks
Come to Commercial
Leasing and Rental
51
Stakeholder Perspective:
Mark Smith,
U.S. Dept. of Energy 52
11
Resource
Conservation
53
Compliance
56
Ryder System, Inc. Corporate Sustainability Report
72
Metrics
Scope 1 and 2 Greenhouse Gas Emissions
50
Scope 1 Greenhouse Gas Emissions by Source
50
Scope 3 Greenhouse Gas Emissions
50
Electricity Use
53
Gas Use
53
Water Use
54
Automotive Waste Stream Recycling Summary
54
Electronic Waste Stream Recycling
55
Paper & Cardboard Recycling
55
Employee Injuries
63
Vehicle Collisions
63
Charitable Giving
72
Profile
Liquefied natural gas tractor
(left) and compressed natural
gas tractor (right), Rancho
Dominguez, California
Profile
Ryder in Context
Well-managed and cost-efficient transportation
and logistics are essential to the health of
the economy. Distribution from farms and
manufacturers to distributors and retailers
has always been part of a thriving marketplace.
Today, these activities have splintered due to
specialization, globalization, and the internet.
It is no longer unusual for small businesses to
have global supply chains or sell their products
to multinational corporations – and vice versa.
In this economy, everyone needs transportation,
whether it is across town, across the country,
or across international borders. The U.S.
Chamber of Commerce reported in 2008 that
transportation accounts for 7% of the value
of output in the U.S. agriculture and natural
resources sector, 4.7% of the retail sector,
and 3.2% of the manufacturing sector.
Well-managed transportation and logistics are
just as essential to sustainable development,
because transportation accounts for a far
higher percentage of greenhouse gas emissions
than value of output. The U.S. Environmental
Protection Agency (EPA) calculates that
freight transportation by truck accounts
for approximately 20% of greenhouse gases
generated in the U.S. – and these emissions
are projected to grow rapidly over the next
two decades due to higher demand and aging
fleets with declining emissions performance.
Many of the private trucking fleets in North
America are owned and operated by small
businesses that do not have the infrastructure,
manpower, tools, and technologies to operate
their fleets at optimum efficiency. Nor do
they have the expertise to measure and
track the environmental impact of their
transportation operations.
Ryder System, Inc. provides transportation and
logistics solutions that help companies of all
sizes operate more efficiently for their bottom
line and for the environment. Ryder delivers
these benefits by:
•
•
•
•
•
Providing truck leasing, truck rental, and
supply chain options that enable customers
to use their resources more efficiently and
focus on core competencies.
Configuring vehicles and supply chains
to deliver an optimum balance of operating
and environmental performance for
customer needs.
Maintaining vehicles and training drivers
to optimize fuel efficiency, emission
performance, and safety.
Leveraging its core expertise in freight
transportation and logistics to support
technology development and advance public
policy, such as with adoption of low-emission
natural gas vehicles.
Reporting on its sustainability performance
with transparent metrics that enable
customers and society to make more
informed decisions about the benefits of
doing business with companies like Ryder.
Ryder System, Inc.
Headquarters, Miami, Florida
15
Ryder System, Inc. Corporate Sustainability Report
Profile
About This Report
This Report covers the calendar year
2011, which corresponds to Ryder’s
fiscal year. Our previous Corporate
Sustainability Reports covered 2008
through 2010. This Report addresses
sustainability from the three perspectives
generally considered to be essential:
economic, environmental, and social.
Ryder tractor trailer
We have included a significant amount of new
material compared to previous Reports, while
maintaining most of our previous metrics in
order to ensure comparability over time. New
material includes:
•
•
•
•
more detailed and comprehensive
disclosures about carbon emissions;
new metrics related to the environment,
the workplace, and society;
perspectives on public policy issues from
senior executives at Ryder; and
perspectives on sustainability from a number
of Ryder stakeholder organizations, including
customers, the U.S. Department of Energy,
and the American Red Cross.
In addition to this Corporate Sustainability
report, we encourage readers to view our Online
Annual Review, which is available in the Investor
Center on our website (investors.ryder.com).
Ryder System, Inc. Corporate Sustainability Report
16
Profile
2011 Achievements
and Recognition
Achievements
Opened our first natural gas vehicle maintenance
facility, as part of a breakthrough public/private
partnership in Southern California (see page 51)
Began renting and leasing liquefied natural gas
(LNG) and compressed natural gas (CNG) trucks
to customers in Southern California, Michigan,
and Arizona
Launched our new Flex-to-Green lease
solution, which helps customers and private
fleet operators jump-start their sustainability
programs with alternative fuel vehicles
(see page 37)
Earned our first anti-terrorism certifications for
our Asia and Trans-Pacific logistics operation from
the Customs-Trade Partnership Against Terrorism
(C-TPAT) and Partners in Protection (PIP)
Became a charter member of the U.S. Chamber
of Commerce Veterans Employment Advisory
Council and the first corporate partner of Hire
Heroes USA, which helps companies hire U.S.
military veterans (see page 65)
Launched new learning management system
in order to improve employee access to training
content and give them enhanced tools to manage
their development
Recognition
From Customers
Carrier of the Year award in the category “Truck Intermodal Logistics
Partner of the Year,” from Toyota Motor Sales U.S.A.
Best Service Logistics Supplier award from Cisco
Above & Beyond Award from Delphi for protecting its operations during
Hurricane Alex in 2010
Supply Partner Award from Domino’s Pizza – one of only seven given
out in 2011
From the Press
Ranked among the top companies in the Transportation and Logistics
sector of the annual Newsweek Green Rankings
“75 Green Supply Chain Partners” – Inbound Logistics magazine
“Top 10 3PL Excellence Award” from readers of Inbound Logistics
magazine – the 14th consecutive year that Ryder has placed in the
top five companies receiving the award
“Top 100 3PLs” – Food Logistics magazine
“100 Great Supply Chain Partners” – SupplyChainBrain magazine
Quest for Quality Award from Logistics Management magazine –
for the fourth year in a row
Best Investor Relations Professional in the Airfreight & Surface
Transportation Sector, from Institutional Investor magazine
From Stakeholder Organizations
Another perfect score (10 out of 10) from GovernanceMetrics International
Best Ranked Financial Disclosure Procedures in North America,
from IR Global Rankings
National NGV Achievement Award from NGVAmerica and the
Clean Vehicle Education Foundation (CVEF)
17
Ryder System, Inc. Corporate Sustainability Report
Profile
Summary Financial Highlights, 2011 vs. 2010
Dollars in millions
2011
2010
Ryder Facts
% Change
Global Organization Profile**
Operating Overview
Revenue
Operating revenue*
Earnings from continuing
operations before income taxes
Comparable earnings from
continuing operations before
income taxes*
Earnings from continuing operations
Comparable earnings from
continuing operations*
Net earnings
$6,050
$4,815
$ 5,136
$ 4,158
0,
$279
$
186
0,
$285
0,
$171
$
$
189
125
0,
$181
0,
$170
$
$
117
118
18
16
50
51
38
54
44
Headquarters
Miami, FL USA
Total Employees
North America
Europe
Asia
27,500
25,900
1,300
300
Number of Operations/Locations
8 07 fleet management operating locations in
U.S., Canada, U.K., and Germany. (U.S. 539,
Canada 35, U.K./Germany 56, onsite U.S. 167,
onsite Canada 10)
30 million square feet of warehouse space,
leased and operated in North America and Asia.
Total Vehicles Maintained
195,900
Fleet Composition
Financial Data
Total assets
Total debt
Shareholders’ equity
Return on average shareholder’s equity
Adjusted return on average capital*
Debt to equity
Free cash flow*
Capital expenditures paid
$ 7,618
$ 3,382
$ 1,318
11.9%
5.7%
257%
$ (257)
$ 1,699
$6,652
$2,747
$1,404
8.4%
4.8%
196%
$258
$1,070
$3.31
$ 2.37
$3.49
$3.28
$25.77
$1.12
$ 2.22
$ 2.25
$ 27.44
$1.04
15
23
(6)
350 bps
90 bps
6100 bps
(200)
59
Per Common Share Data
Earnings from continuing
operations – Diluted
Comparable earnings from
continuing operations – Diluted*
Net earnings – Diluted
Book Value
Cash dividends
40
57
46
(6) 8
Other Data
Full Service Lease Vehicles
Contract Maintenance Vehicles
Rental Vehicles
121,000
35,300
39,600
Customers
Full Service Lease
Contract Maintenance
Commercial Rental
Supply Chain/
Dedicated Contract Carriage
United States
Canada
Mexico
Asia
DCC
13,000
1,400
39,700
Ticker Symbol
R
Common Stock Exchange Listings
New York Stock
Exchange
Dow Jones Transportation Average, Standard
& Poor’s 500 Index
Component of
637
318
45
83
34
157
**As of December 31, 2011
Common shareholders of record
8,926
Common shares outstanding
51,143,946
Number of vehicles managed
205,200
Number of employees
27,500
9,192
51,174,757
182,100
25,900
*R
epresents a non-GAAP financial measure – for details of this measure and
a reconciliation to the GAAP measure, please refer to Item 6 – Selected Financial Data;
and Item 7 – Management's Discussion and Analysis of Financial Condition and Results
of Operations under the "Overview," "Full Year Consolidated Results," "Financial
Resources and Liquidity" and "Non-GAAP Financial Measures" discussion, which
are contained in our 2011 Annual Report on Form 10-K. The Annual Report is available
in the Investors area of our website at investors.ryder.com.
Ryder System, Inc. Corporate Sustainability Report
18
Profile
A Message from Greg Swienton,
Chairman and Chief Executive Officer
Everything we do at Ryder begins with a foundation of ethics and integrity.
We always look for ways to apply our high standards and disciplined
approach, which drives us to integrate sustainability even further into
our business model. In 2011, we brought our customers new ways to
operate more sustainably. We further developed our internal capabilities,
supported and developed our greatest asset – our people – and increased
our support to the communities we serve. You can read about all these
developments in this Report.
Along with all our successful investments in people, processes, and
technology, we also had a very strong year as measured in financial
terms. This demonstrates that it’s possible to innovate, deliver outstanding
service, and achieve strong results for all constituencies, if you have
a plan and focus on executing it. It also indicates that Ryder is very well
positioned to integrate sustainability into business success, because the
economic benefits we offer our customers come with environmental and
social benefits as well.
We make transportation and logistics more efficient for other companies
in ways that also reduce fuel consumption and greenhouse gas emissions.
We take waste, cost, and complexity out of their transportation activities
and supply chains, so they can focus on making the rest of their business
more efficient and effective.
We demonstrated two new examples of this blend of economic and
environmental value in 2011. In this Report, you can read about a new
natural gas transportation program that Ryder helped to establish in
California. We partnered with public agencies to share investment
and bring low-emission, heavy-duty natural gas vehicles and support
infrastructure to the marketplace. Customers want a natural gas option,
but have concerns about the costs associated with purchasing and
maintaining the new technology on their own. It takes innovation and
collaboration to create a natural gas solution and then attract customers
with a range of cost-effective leasing, maintenance, commercial rental,
and fueling programs. We’re honored that the U.S. Department of
Energy valued our contribution enough to offer a perspective on the
project in this Report.
The second example is the Green Challenge we’ve developed for our
customers’ supply chains. Because we provide transportation and
supply chain solutions to demanding companies, locally, regionally,
and globally, we have developed the ability to identify inefficiencies
involving both vehicles and facilities. Companies often aren’t able to
see these inefficiencies as clearly as we can from our broader industry
perspective. They often tolerate some of these inefficiencies because
they lack the proven processes and expertise to identify the right steps
and confidently identify the return on investment. That’s where the Green
Challenge comes in. We have the necessary technical expertise and we’ve
packaged it in a systematic way. Now customers will be able to see how
much energy they can save in the context of a supply chain engagement
with Ryder, and exactly what it will take to get there. They just have to let
us put our capabilities to work for them.
The Green Challenge illustrates one of the realities of sustainable business:
it will require more intelligent cooperation. The world runs on a network
of supply chains, all sharing transportation and logistics. We have to make
them more efficient. At the same time, choosing whom you decide to work
with in the future as your supply chain partner is a critical decision. That’s
why we always build relationships with the philosophy of getting the right
19
Ryder System, Inc. Corporate Sustainability Report
Profile
“Ryder is very
well positioned
to integrate
sustainability
into business
success, because
the economic
benefits we offer
our customers
come with
environmental
and social
benefits as well.”
results the right way. We want our customers to know that when they
decide to partner with us, they are making the right choice.
Our people continue to be our most valuable differentiator in the
marketplace and we have a long history of recognizing their good work
and contributions to our business. Part of our commitment to our people
is to make sure they also have the tools and resources to be successful.
We took an important step in this area a few years ago when we identified
and communicated a set of competencies that define leadership success
within our organization. We’ve built upon that foundation by adding
new systems and technologies designed to help employees meet their
full potential. In 2011, we made a significant investment in training and
development with the launch of a web-based Learning Management
System that improves employee access to relevant training content and
gives them the tools to manage their development. We will continue
to focus on developing our people and fostering innovation as a strategy
to drive long-term profitable growth.
We also maintained our charitable commitments. In particular, we
continued our primary philanthropic partnership with the American
Red Cross. This is a natural partnership for us because as a leader in
transportation and logistics, we recognize the complexity and importance
of providing timely resources needed to respond to disasters. When you’re
in the midst of a natural disaster, as so many people in this country were
in the past five years, you understand that there’s nothing better than the
sight of trucks arriving with help. They bring the relief supplies to people
in great need. As a member of the American Red Cross Annual Disaster
Giving Program, we’ve brought the whole relationship together. We’re
happy to include a perspective from the organization in this Report and
to spread the word about its important role in society.
We are now taking the momentum of 2011 forward in many ways.
Our work in progress includes enhancing our compliance system and
re-launching our Code of Business Conduct, so that they mean more
and do more for everyone at Ryder. We’ve introduced new key
performance indicators for sustainability in this Report, and in 2012
we’ll be evaluating how to set meaningful sustainability goals that
drive our performance in the right directions.
Another development we’re looking forward to is celebrating and
recognizing Ryder’s 80th year in business in 2013. As proud as we are
of the company’s sustained success over such a long period, we never
stop looking for ways to evolve and innovate. We have a tremendous
opportunity to contribute to the sustainability of our economy because
of the nature of our business. We need to make more potential customers
aware of how working with Ryder benefits them economically and
environmentally, and how those benefits cascade throughout society.
We prepared our Corporate Sustainability Report to help us get that
message out, and I thank you for taking the time to read it.
Greg Swienton
Chairman and Chief Executive Officer
Ryder System, Inc.
Ryder System, Inc. Corporate Sustainability Report
20
Profile
Corporate Overview
This overview of Ryder describes
our major business segments and
strategy and summarizes our economic
contributions to the markets and
societies we serve. For information
on our financial goals and performance,
please refer to our Online Annual
Review and updated disclosures
available in the Investor Center on
our website (investors.ryder.com).
Segments and Strategy
Our overall strategy is to provide transportation
and logistics solutions that are more attractive
to companies than owning and managing
their own transportation and logistics and
related processes. This strategy applies equally
to small businesses that need a few trucks for
local deliveries and to multinational corporations
that manage large fleets and global supply
chains. We make our solutions more attractive
by mastering a wide range of transportation
and logistics services. Among our competitive
differentiators are our vehicles, our professional
technicians and drivers, our maintenance
facilities and procedures, our warehouse
management, our engineering expertise,
and the integration of these elements for
maximum performance.
21
Ryder is increasingly well positioned to
benefit from major trends shaping the
future of our industry:
•
•
•
•
•
Increasing complexity of vehicle technology
and maintenance requirements.
New regulatory and emissions standards.
Tighter capital availability.
Continuous pressure on manufacturers
to optimize their global supply chains.
Heightened focus on supply chain security
and transportation safety.
At Ryder, we have embraced the challenges
of making transportation and logistics safer,
more secure, more cost effective, and more
environmentally friendly, which creates still
more opportunity for us to add value for
our customers.
Ryder System, Inc. Corporate Sustainability Report
Profile
Global Fleet Management Solutions (FMS)
Our Global Fleet Management Solutions
segment provides full service leasing, contract
maintenance, contract-related maintenance, and
commercial rental of trucks, tractors, and trailers
to customers principally in the U.S., Canada,
and the U.K. These solutions enable customers
to improve the uptime and reliability of their
fleets, thereby minimizing fleet-related business
disruptions and risks. Alongside these operating
benefits, our solutions enable customers to focus
on their core business, lower their costs, and
redirect capital to other parts of their business.
FMS focuses primarily on contractual-based
full-service leasing and contract maintenance
services for companies that need one or more
vehicles. The segment also provides:
•
•
•
transactional solutions, such as commercial
vehicle rental for customers who need to
supplement their private or leased fleet on
a short-term basis;
value-added services such as insurance,
vehicle administration, and fuel services that
are part of a full-service lease or maintenance
agreement; and
a used vehicle sales program stocked with
well-maintained vehicles that come with
well-documented operating histories.
Global Supply Chain Solutions (SCS)
Our Global Supply Chain Solutions segment
optimizes customer logistics and transportation
networks by intelligently managing the
coordinated flows of goods and materials,
funds, and information – from accessing raw
materials all the way to delivering finished
products to end users. SCS solutions draw on
our expertise in three related areas: professional
services (strategy, design, and engineering),
distribution operations (warehousing), and
transportation solutions.
SCS also includes a substantial business in
dedicated contract carriage, which combines
full-service truck leasing, professional drivers,
and value-added services for fleet sizing, route
design and planning, scheduling, regulatory
compliance, and more. Our dedicated contract
carriage solution is popular with customers
whose business demands precise transportation
timing and special care in cargo handling, as well
as other value-added driver services.
In addition to our proven capabilities in all
the services that SCS offers, Ryder provides
specific expertise in logistics-intensive industries
such as retail, automotive manufacturing,
consumer electronics, and the food and
beverage industry. Our deep expertise in
the industries we serve enables us to deliver
greater economic and environmental benefits
to customers and society.
Left: FMS maintenance
and used vehicle
sales center
Right: SCS automotive
warehouse facility
Ryder System, Inc. Corporate Sustainability Report
22
Profile
Economic Benefit
In addition to helping other companies
operate more efficiently, Ryder makes direct
economic contributions to society in the form
of compensation, job creation, dividends,
philanthropy, taxes, and fees. We also make
indirect economic contributions, such as by
creating new services for customers, actively
seeking diverse suppliers, and supporting the
development of small and diverse businesses.
Compensation
We ended 2011 with 27,500 employees in the
U.S., Canada, Europe, and Asia. In 2011, we
provided a discretionary award to employees
who are not ordinarily eligible for incentive
bonuses. We chose to make this award to
approximately 13,000 people in 2011 because
of their loyalty and hard work during an historic
economic downturn in the preceding years
and our strong results in 2011. We encourage
employees to become shareowners in Ryder,
so that they can participate more fully in the
company’s financial success. We have six
share-based compensation programs, including
a discounted share purchase program for all
employees. As of the end of 2011, 7,177 active
employees were shareowners in the company.
In addition to the quantitative economic
benefit related to employees, Ryder offers a
qualitative benefit. Unlike the great majority of
companies that hire drivers and mechanics out
of necessity – and consider them cost centers
– Ryder recognizes these individuals for their
professional skills, invests in their careers,
and views them as value generators. Further
information on this topic is included on page 65.
Dividends
In 2011, Ryder increased its dividend for the
seventh time since 2005. Shareowners received
US$58 million in dividends, funded entirely from
the profits we earn in our business.
Taxes and Fees
The taxes and fees that Ryder pays to local
and national governments, primarily in North
America, help fund schools, community
infrastructure, regulatory oversight and services.
In 2011, Ryder paid more than US$423 million
in U.S. federal and state taxes.
23
Creating New Solutions
Ryder is embedded in the economy because
of the nature of the business. We therefore are
in a position to exert a positive influence on
how the economic infrastructure evolves and
grows. One of the ways we execute on this
opportunity is by creating new green solutions
for customers. One example from 2011 is our
Flex-to-Green lease, which makes it easy for
businesses to incrementally convert their dieselpowered vehicles to low-emission, alternativefuel vehicles for their fleets and test them in
operation before making a major commitment.
This type of innovation can drive growth
for Ryder, for vehicle manufacturers, and for
supporting businesses in parts and maintenance.
It also moves the economy in a more sustainable
direction by giving customers cost-effective, riskadjusted ways to make positive environmental
choices that are also good for business. In our
SCS segment, we introduced a new co-location
solution that integrates forward and reverse
logistics in the same facility. This saves space,
time, emissions, and money for companies
such as consumer electronics providers, which
may take in significant volumes of returns from
consumers, retailers and distributors.
Supporting Entrepreneurs
When growing businesses reach a certain size,
they need transportation solutions that are more
substantial, flexible and affordable than using
commercial package delivery services – yet
they don’t want to tie up capital in a truck, van,
tractor or trailer. Entrepreneurs at this point need
be able to rent or lease a range of vehicle sizes,
with different pricing and payment options and
a menu of supporting services, even including
drivers, all from a supplier near their own base
of operations. Ryder offers all these choices and
more, from more than 850 locations in North
America and the U.K., so that virtually any small
business can find a transportation solution that
fits its current needs and longer-term growth
plans. In addition, Ryder’s 57 used vehicle
sales centers across North America provide
small businesses with a large inventory of well
maintained, Ryder Road ReadyTM used vehicles
at a great price. We have been in business nearly
80 years, so we know from experience that small
businesses become big businesses if they have
the right support from strong suppliers who
deliver the right results, the first time.
Ryder System, Inc. Corporate Sustainability Report
Profile
Supplier Diversity
A more diverse economy is a more robust
and resilient economy, which in turn benefits
everyone. This is why we actively seek to
increase the diversity in our own company and
in the companies that supply us with goods and
services. We have built an extensive database
of potential small and diverse suppliers and
continue to expand it to keep pace with our
growth and changing needs. We engage with
numerous organizations representing diverse
suppliers, and we provide 24-hour access to
Ryder’s Small Business and Supplier Diversity
Program via a web portal (http://www.ryder.com/
suppliers_diversity.shtml). Interested suppliers
can register with us online, learn about specific
needs, and provide us with information about
their capabilities. In 2011, we sourced US$336
million, or 8.01% of our total negotiable spend,
with small and diverse suppliers. These figures are
up significantly from 2010, when Ryder sourced
US$179 million or 4.6% of total negotiable spend
with small and diverse suppliers.
Supplier Diversity
% of total spend directed to Minority and Women's Business
Enterprise suppliers
8.01
4.60
3.88
2009
Ryder System, Inc. Corporate Sustainability Report
8.22
2010
2011
2012
Goal
24
Profile
Growing food is not that hard. Growing healthy food, sustainably, is one
of the hardest things there is. It’s harder than being a pro athlete. You
never finish a project like this. You constantly learn and move forward.
Never step backward. Regardless of what kind of challenges you have, you
move forward. Some organizations miss this, and then they really struggle.
You can’t ever think you’ve got it figured out. You’ve got to stay humble.
I learned these values growing up on a farm, and they have carried over
into how we conduct ourselves at Growing Power. We do more than
farming, because we have opportunities to do food production and
influence policy. But our business is a farming environment, on more
than 200 acres. On a farm, everybody works hard, and you work as a team.
You also have to keep expectations high for young people. That’s what my
parents did and I’ve transferred it to my business because we work with
youth all the time.
Stakeholder Perspective:
Will Allen
Growing Power, CEO
“Transportation
is about more
than time and
money. It’s also
about quality
and reputation.
If you’re going
to aim for a certain
level, you have
to start running
your business
that way now.”
25
We advise thousands of farmers and entrepreneurs around the world,
and one of the messages is that transportation is very important. You have
to look at it in a lot of ways at once, because transportation is about more
than time and money. It’s also about quality and reputation – especially
in the food business. People always ask me how we afford to do it the way
we do it, leasing trucks from Ryder. I say, if you’re going to be a leader,
if you’re going to aim for a certain level, you have to start running your
business that way now. Otherwise you’ll never get where you want to go.
We advise people to look at transportation and logistics as a way to save
money somewhere else, or as a way to get to customers they couldn’t
reach otherwise. And I don’t just mean distance. We have customers now
that certify our trucks before we can deliver to them. As a supplier, you
have to think along with your customers.
Eventually, you reach a tipping point where a certain piece of equipment
makes you more profitable, not less. Let’s say a newer truck with more
reliable refrigeration costs more, but it means I’m going to save money
because I lose less product. I’ve got to take the long view, and take that
step forward. Of course, we’ve also got to have a truck company that we
can trust and that takes good care of us when something happens. To
sustain anything, it has to be a win for all parties. If it’s not, it’s not going
to last too long.
The only way to be successful and sustainable in a business is to be
passionate about it. You can’t be afraid to take a risk that could take you
to a new level. I’m thinking out past the end of my life for sustaining this
company. That’s the way we should all be thinking if we’re in business.
Ryder System, Inc. Corporate Sustainability Report
Profile
Our mission at iGPS is to shrink the carbon footprint in the supply chain.
We do this with an engineered pallet that is lighter than conventional
options, so it saves energy every time it’s transported. It’s a standard
size that never changes, so it can be loaded more completely. That
translates into fewer truckloads on the road to move the same volume
of a customer’s products. The pallet’s standard size and strength also
reduces product damage, which costs the United States economy billions
of dollars every year. Our pallet is more hygienic than wood pallets, so
it doesn’t cross-contaminate, and it’s safer for workers, so it helps
reduce lost-time injuries. All these benefits help make supply chains
more efficient and more sustainable.
But we don’t stop there. The next part of our strategy is called iDepot.
Conventional pallets often need to go back to base to get repaired
or restored, which means they spend a lot of time in transit without
doing anything useful. Our pallets can almost always turn right around
and take their next load. This has the potential to take a tremendous
amount of travel out of the pallet distribution system.
Stakeholder Perspective:
Rex Lowe
iGPS, President
“Ryder has not
just handled
our unique
transportation
and logistic
challenge – they
have made our
strategy work
better and faster
than we could
have done it
on our own.”
To make iDepot work, we have to solve a unique logistics problem: our
pallets are starting from hundreds of origination points, not from a home
base, and they could be going to any one of thousands of iGPS customers.
So instead of the fixed transportation equation that most companies
have, we’ve got a dynamic equation that is changing by the day and the
hour. Furthermore, production and consumption in the United States are
geographically far apart: production is heavily weighted in the middle
of the country and consumption is heavily weighted on the coasts.
Ryder is the right supply chain partner for us because they have everything
we need to solve this logistics challenge. They have vehicles ready to roll
throughout the country, they have sophisticated technology for tracking
and planning, and they can look out across the whole country and take
advantage of existing freight movements to take iGPS pallets to their next
destination. So whenever we need to move pallets from one customer
to another, or to a temporary holding area, Ryder handles it with whatever
type of transportation mode is most efficient.
Perhaps most importantly, they do all this with exceptional reliability.
If a factory or distributor doesn’t have the iGPS pallets they have ordered,
that might shut down their operations. We could insure against this by
building in a buffer of extra pallets and physical depots, but that would
go against our business model. So we need a combination of speed,
efficiency, and reliability that not everyone can provide.
In my career, I have been in the position of buying and managing
transportation, which has taught me what it takes to dial it in. Ryder
has not just handled our unique transportation and logistic challenge –
they have made our strategy work better and faster than we could have
done it on our own. That means iGPS can concentrate on growing the
business to a scale where our economic and environmental benefits
flow through the supply chains of businesses everywhere.
Ryder System, Inc. Corporate Sustainability Report
26
Governance
Ryder Transportation
Management Center,
Ft. Worth, Texas
Governance
The most essential component
of our sustainability as a company
is our fundamental commitment to the
highest ethical standards of corporate
governance. This living commitment
goes beyond laws, rules, and regulations
to their original source in the principles
of character and leadership. As such,
we continually raise our sights and aim
to go beyond the performance we have
already achieved. This is what drives us
to manage our company for sustainable
performance, and to evolve the company
toward a greater contribution to the
sustainability of our society and
the environment.
In this chapter, we detail a number of steps we
took in 2011 to take our governance processes
to an even higher level. We have received
excellent grades from outside assessors for
a number of years, including a perfect score
from GovernanceMetrics International in 2011.
We believe this is due in part to our willingness
to share more information than regulators
require, which strengthens the bonds of trust
we have with our stakeholders. We present
this Corporate Sustainability Report in the
same spirit.
29
Board of Directors
Our highest governance body at Ryder is our
Board of Directors. The Board is composed
of twelve Directors, eleven of whom are
“independent” as defined under the New York
Stock Exchange’s (NYSE) listing standards
and according to the director independence
standards in our own Corporate Governance
Guidelines. The sole inside Director is Gregory
T. Swienton, Ryder’s Chief Executive Officer and
Chairman of the Board. The Board undertakes an
annual review of director independence, and our
independent directors meet regularly in executive
session without management present as part of
each regularly scheduled Board meeting. The
Board also includes a strong lead independent
director, E. Follin Smith, to enhance the Board’s
independent oversight of the company and
uphold effective governance standards.
Ryder System, Inc. Corporate Sustainability Report
Management meeting at
the Ryder Transportation
Management Center,
Ft. Worth, Texas
Governance
Board of Directors
James S. Beard
Retired President of
Caterpillar Financial
Services Corporation and
served as Vice President
of Caterpillar Inc.
3,5
John M. Berra 3,5
Retired Chairman of Emerson
Process Management, and
Executive Vice President of
Emerson Electric Company
Robert J. Eck 5,7
President and Chief
Executive Officer of
Anixter International, Inc.
L. Patrick Hassey 6,7
Retired Chairman and
Chief Executive Officer of
Allegheny Technologies, Inc.
Michael F. Hilton 5,7
President and Chief
Executive Officer of
Nordson Corporation
Tamara L. Lundgren
President and Chief
Executive Officer of
Schnitzer Steel Industries,
Inc. (effective October 2012)
Lynn M. Martin 5,7
Former U.S. Secretary
of Labor (retired from
Ryder's Board May 2012)
Luis P. Nieto, Jr. 1,3
Retired President of the
Consumer Foods Group
for ConAgra Foods, Inc.
Eugene A. Renna 1,4
Retired Executive Vice
President of ExxonMobil
Corporation and former
President and Chief
Operating Officer of
Mobil Corporation
Abbie J. Smith 2,3
Professor of Accounting at
the University of Chicago
Booth School of Business
E. Follin Smith* 1,8
Former Executive Vice
President, Chief Financial
Officer and Chief
Administrative Officer
of Constellation Energy
Group, Inc.
Gregory T. Swienton **
Chairman and Chief
Executive Officer of
Ryder System, Inc.
Directors are held accountable to the same
Principles of Business Conduct that apply
to all Ryder employees. Ryder seeks broad
diversity of experience and expertise among
its Directors, regularly reaching outside the
transportation sector and corporate ranks for
distinguished individuals who bring the Board
complementary strengths. Currently nine of the
Directors are men, and three are women. Ten
Directors are white, one is Hispanic, and one is
African-American.
Shareholders and other interested parties
wishing to communicate with our independent
directors as a group can do so through an
external toll-free hotline number, which is
available on the Corporate Governance page
of our website, or by mail. In addition, anyone
with concerns about the company’s accounting,
internal controls, or auditing matters can
communicate directly to members of our
Audit Committee. All of these communications
procedures can be accessed on our website.
Our Board has four standing committees: Audit,
Compensation, Corporate Governance and
Nominating, and Finance. Each Committee
is comprised solely of independent directors.
We have adopted charters for each Committee
that comply with the NYSE’s corporate
governance listing standards, applicable
provisions of the Sarbanes-Oxley Act of 2002,
and SEC rules. Each charter sets forth the
specific responsibilities of each Committee
and provides for a periodic review of such
charter and the applicable Committee’s
performance. The specific Charters are available
for review on the Corporate Governance page
of our website. Each Committee has the
authority to retain independent advisors
and consultants.
The board receives strong support from Ryder’s
second-highest governance body, which is
the executive leadership team. The team is
comprised of the CEO, Chief Operating Officer,
Chief Financial Officer, Chief Legal Officer, Chief
Administrative Officer, and the presidents of our
Fleet Management Solutions and Supply Chain
Solutions segments. The executive leadership
team reports to the Board on company operations
and executes the company’s strategy. The only
member of the executive leadership team who
serves on the Board is Gregory T. Swienton,
the CEO and Chairman of the Board.
On an annual basis, our independent directors
(on recommendation from our Compensation
Committee) approve the compensation package
for our CEO. The Compensation Committee
reviews and approves the compensation
packages for each of our other executive officers.
Our compensation policies and decisions are
focused on pay-for-performance principles and
are strongly aligned with the short- and longterm interests of our shareholders. In 2011,
our shareholders approved by approximately
94% the compensation of our named executive
officers as part of the Company’s first “Say on
Pay” vote. Our Board has decided that we will
hold “Say on Pay” votes on an annual basis
going forward.
Board of Directors Key
We invite you to communicate any questions or
concerns you may have to the independent members
of Ryder’s Board of Directors.
*Lead Independent Director
**Chairman of the Board
Online:
http://www.ryder.com/aboutus_corpgov_bcontact.shtml
Audit Member
Audit Chair
3
Finance Member
4
Finance Chair
5
Compensation Member
6
Compensation Chair
7
Corporate Governance and Nominating Member
8
Corporate Governance and Nominating Chair
1
2
Hansel E. Tookes 1,7
Retired President of
Raytheon International
and former Chairman and
Chief Executive Officer of
Raytheon Aircraft Company
Ryder System, Inc. Corporate Sustainability Report
Telephone:
(800) 815-2830 (7 days a week/24 hours a day)
Mail:
Ryder System, Inc.
Independent Directors
c/o Corporate Secretary
11690 NW 105th Street
Miami, FL 33178
30
Governance
An effective board of directors is independent, and has good governance
as its highest priority. You want to support a strong entrepreneurial spirit
in the CEO or Chairman, and you also want to encourage independent
points of view and alternative ways of thinking about problems. It’s not for
the sake of disagreement, but to make sure you examine all perspectives
before coming to a cohesive strategy. Ryder has a tradition of choosing
directors who are not afraid of establishing their points of view in a civil,
congenial manner.
This is easier to say than to do. The hardest, fastest learning curve I
was ever on was learning corporate governance for public companies.
Fortunately, Ryder has a history of strong governance and a commitment
to monitoring the effectiveness of policy and decision-making. This is vital
because it’s a complex world out there. Trucking and logistics companies
are strongly affected by the business cycle and by changes in technology
and regulation. Any organization that tries to get too complex can run into
trouble. Ryder strives to simplify operational complexities in its business,
which is a great achievement.
Executive Statement:
Lynn Martin
On Governance
“A strong,
independent
board encourages
innovative ideas
and makes sure
they work for
Ryder, customers,
and for society.”
Lynn Martin served on Ryder’s Board of Directors
for 19 years. She contributed this statement shortly
before retiring from the Board in May of 2012 and
being named Director Emeritus.
31
Ryder is truly a transparent company as well. Every company makes
mistakes, but it’s not the mistakes that get you in trouble. What gets you
in trouble is covering them up. We don’t make many mistakes, but if we do,
we tell you what they are and how we’re going to fix them. People want
to work for companies that behave this way.
I was the first woman on Ryder’s Board of Directors and then also
went on to be the first lead independent director on the Ryder Board.
In my experience, diversity is about more than gender and ethnicity.
It’s about experience and understanding. You need a board that can
see and understand different things – on top of the excellence they bring
regarding business and governance. Today our Board reflects a great
continuum of people who match that measure of excellence with their
diversity of ideas and opinions.
Sustainability is an area where boards need an abundance of good
ideas and different perspectives. For Ryder, sustainability is a business
imperative. It is not a set of talking points in a speech. Sustainability is
part of what distinguishes our company when customers are making
business decisions, and that will drive our success. People will always
need transportation and logistics. The issue is, how do we deliver those
in the least harmful way for society that is also the best way to ensure
future growth and profit for Ryder and its customers.
That is a lot to take on and get right. A good example is Ryder’s investment
in becoming one of the first companies in the country to offer customers
heavy-duty trucks running on natural gas. This is not common in the
United States today, but it will be common in the future, and Ryder
is one of the companies making sure it happens. It is the responsibility
of a strong, independent board of directors to look at and encourage
innovative ideas, and make sure the good ideas work for Ryder, for
customers, and for society.
Lynn Martin
Director Emeritus
Ryder System, Inc. Corporate Sustainability Report
Governance
Ethics and Compliance
Principles of Business Conduct
Our culture of high ethical performance is set
by the company’s leadership and communicated
throughout the company in a variety of ways and
venues, including in person, in writing, online,
and at group events. Anyone in the company can
reference our standards and practices for ethical
behavior at any time, by consulting our Principles
of Business Conduct (http://www.ryder.com/
aboutus_corpgov_principles.shtml). The
principles cover all areas of professional conduct
including conflicts of interest, confidentiality,
legal and regulatory matters, and mechanisms
to report known or suspected wrongdoing.
During 2011, we initiated a broad strategic review
of our Principles of Business Conduct to identify
ways to improve its content and accessibility,
and to make it more effective for communication
and training purposes. Based on that review,
we began a project to revise the Principles of
Business Conduct in 2012. Among the changes
we intend to make are the following:
•
•
•
Making the language of the document clearer
and easier to understand.
Restructuring the document so that needed
information is easier to find.
Adding language to capture ethical behaviors
and procedures that are already well
established at Ryder but currently lack
the status of principles or policies.
Ethics and Compliance Program
Our highest governance body for ethics,
business standards, and compliance at Ryder
is our Corporate Compliance Steering
Committee, which consists of senior leaders
from the following departments: Audit,
Corporate Communications, Compliance,
Corporate Accounting & Finance, Human
Resources, Information Technology, Legal,
Operations, and Safety, Health & Security.
This committee reviews and prioritizes ethics
and compliance issues and ensures that key
stakeholders are informed of changes in relevant
laws and policies that may affect our business.
The committee’s areas of oversight are broad
and interrelated, including our compliance with
laws and regulations (such as the Sarbanes-Oxley
Act and the Foreign Corrupt Practices Act),
Ryder System, Inc. Corporate Sustainability Report
insider trading, conflicts of interest, competitive
intelligence, antitrust, export controls, data
protection, ethics, anti-money laundering,
document retention, employment, and corporate
compliance in all the countries where we
conduct business.
The committee’s decisions and priorities are
executed by our Global Compliance Team, which
is also responsible for updating the committee,
our management, the executive leadership
team, and the Board of Directors on specific
compliance and ethics risks facing the company.
In addition, the team:
•
•
•
oversees our confidential and anonymous
reporting mechanisms, including
investigations conducted as a result of any
ethics or compliance complaint;
manages the company’s risk assessment
process to continually identify new
or enhanced risks; and
develops audit protocols to ensure adherence
to implemented policies.
One of the most dynamic aspects of our
compliance program is employee training. In
2011, our goal was to train Ryder's entire salaried
population of 6,737 employees. We reached
98% of our 2011 goal with 6,625 employees
completing our annual compliance training
program, compared to 6,300 in 2010. We
regularly conduct more focused trainings on
a non-annual basis, such as training on legal
issues for human resources professionals and
issues targeted to specific departments or
locations, such as anti-bribery and corruption
for international employees and competitive
intelligence for sales employees. We continue
to increase the amount of training we conduct
online, to reduce costs and environmental
impacts associated with travel for in-person
training. We are also exploring new ways to
use existing online training platforms, such as
those used for safety, to deliver compliance
training to frontline employees including drivers,
technicians, and warehouse personnel.
To refresh our employees’ awareness of the
need to report compliance issues internally,
we created a new compliance mascot, an ostrich
called EARL (for “Evading Action Resolves
Little”). We chose an ostrich as our mascot
because most people are taught that ostriches
tend to bury their heads in the sand if they see
something of concern. EARL, however, does not
behave this way, because he reports what he
sees. EARL’s message to Ryder employees is that
at Ryder, speaking up about a compliance
32
Governance
problem – anonymously if necessary – is a
positive, constructive action that benefits
everyone. We began rolling out EARL and his
message early in 2012, and he appears on a
newly developed Helpline Poster issued
to all locations worldwide.
External Assessment of Compliance Program
In 2011, we commissioned an external review
of our compliance program, with a focus on
elements of our culture as they related to the
effectiveness of our program. Our long-standing
principle has been to prevent errors and
infractions before they can occur. We do this
by proactively improving our compliance
culture, systems, methods, and technologies.
We received recommendations from the external
reviewers early in 2012 and began to implement
them in the first quarter. Among other things,
we expect to bring online ethics and compliance
training to thousands more Ryder employees,
primarily drivers, technicians, and warehouse
workers, who do not have a Ryder email
address or a dedicated computer workstation
as part of their job. We also expect to revise
our Principles of Business Conduct as discussed
on the previous page. Further information
will be available in our next Corporate
Sustainability Report.
Data Security
Data security is increasing in importance as
a governance matter for many companies,
in part because of hacking of corporate
databases. While Ryder has experienced
no significant data breaches, we follow the
issue closely because many of our workers are
embedded in our customers’ operations and
many of our customers share sensitive business
information with us. We also take proactive steps
to stay ahead of potential threats. In 2011, for
example, we commissioned an outside review
of our data security practices relative to industry
best practices. As a result, we continue
to enhance our data security practices in
response to a quickly evolving technology
and regulatory environment.
Data security at Ryder
33
Ryder System, Inc. Corporate Sustainability Report
Governance
Security
Ryder has become a recognized
industry leader in transportation
and supply chain security. We are
committed to bringing higher levels
of security to our operations and the
customers we serve, and to sharing
best practices with industry partners
and government regulators to improve
overall security in our industry.
Security is one of the invisible ingredients
of business success in every industry. In the
transportation and logistics industry, we face
challenges many companies don’t, because so
much of our business depends on mobile assets
that traverse the roads, highways, and national
borders of the North American continent.
At Ryder, we recognize the high importance of
cargo and vehicle security to our sustainability,
and we make it a matter of committed corporate
governance and leadership. We know that
keeping our own business secure is not enough,
because organized threats such as terrorism and
smuggling require collective action to anticipate
and deter them. (See page 35 for a perspective
by Bill Anderson, Group Director International
Safety, Health and Security, who in 2011 was
named by Security magazine as one of the
industry’s most influential security executives.)
Trailer security seal check,
Miami, Florida
Ryder Security Principles
Ensure high awareness of security issues,
threats, and protection strategies at all levels
of Ryder management
Design security programs that keep our public/
mobile engagements safe and secure
Create a workplace environment that keeps
employees secure
Innovate to establish new best practices
for securing customer value chains
Earn and maintain customer confidence in our
ability to keep their inventory and business
information well guarded
Engage, educate, and collaborate with policy
makers and industry partners
Ryder System, Inc. Corporate Sustainability Report
34
Governance
Corporate supply chains are subject to more security threats than ever.
The list now includes drug-related violence, political unrest, corruption,
and terrorism along with the ever-present risks of smuggling and cargo
theft. To effectively address security concerns in this dynamic environment,
we need to be just as dynamic and innovative in our approach.
This starts with information and communication. Effective partnering
with customers, industry groups, and government agencies allows us
to share experiences and solutions that protect our assets and supply
chains as well as the general public. Communication and information
exchange is particularly important for recognizing emerging threats
that may be apparent to only a few of us today – because it will take
the cooperation of many of us to meet those threats tomorrow.
Information is also the heart of an effective risk assessment. Proprietary
information should be supplemented with open source information,
partner information, site visits, and other data. It’s especially important
to be honest about weaknesses and level of readiness to respond – both
within our own organization and up and down the chain.
Executive Statement:
Bill Anderson
On Meeting Security Threats
“In our work with
global companies
and their supply
chains, we are
steadily building
a library of
best practices.”
In 2011, Bill Anderson was recognized by Security magazine
as one of the most influential security executives.
35
When it comes to controlling threats, our experience at Ryder suggests
that it’s best to plan at a global level and implement locally. Our corporate
security department administers the various government-authorized
security programs, such as the U.S. Customs-Trade Partnership Against
Terrorism (C-TPAT) and Canada’s Partners in Protection program, and
creates a single set of customs and supply chain security policies and
procedures for all our operations. The role of local management is to
implement these procedures based on intimate knowledge of Ryder's
facilities and customers’ requirements.
In our work with global companies and their supply chains, we are steadily
building a library of best practices. One example is Ryder STAR, a webbased tool for scheduling and managing security-related activities at all
global operations. Another example is real-time vehicle monitoring using
dedicated security staff. The industry has learned that simply putting
a GPS unit on a vehicle is typically not enough to detect and respond
to a potential breach. Other examples include implementing extra security
measures at cross-border locations, anticipating extortion risk and bribery
risk, and taking a first-hand look at what your supply chain partners are
doing on the ground to anticipate, evaluate, and mitigate security threats.
Our adversaries strive to overcome our defenses. When we are static they
are able to observe, test, and plan methods to defeat those defenses. Our
challenge is to keep innovating, based on shared information and effective
communication with our partners.
Bill Anderson
Group Director, International Safety, Health and Security
Ryder System, Inc. Corporate Sustainability Report
Governance
Security Systems
Customs and Border Security
Our Corporate Security group is responsible
for the oversight of trade compliance and
operational functions related to the movement
of freight through the global supply chain. Ryder
is certified as a Third Party Logistics Provider
(3PL) in the Customs-Trade Partnership Against
Terrorism (C-TPAT) for logistics operations in
the U.S., Canada, Mexico, and Asia. Before we
became certified under C-TPAT, we worked with
the U.S. Department of Homeland Security
in 2003 to ensure that the Partnership would
achieve its security goals in the real world
of international logistics and transportation
services. We have continued to work closely with
the Department and its component agencies,
such as U.S. Customs and Border Protection,
to identify opportunities for public-private
cooperation. For example, in 2010 we hosted
industry conferences to initiate information
sharing between customers, business partners,
and government security agencies. More
information about these conferences is available
in our Corporate Sustainability Report for 2010.
In 2011, we continued to build on, extend, refine,
and integrate numerous systems we have
in place for customs and border security. We
operate a state-of-the-art security monitoring
center in Mexico City to manage customs and
border security for the heavy flow of traffic
between Mexico and the U.S. Within this facility
and others we increased our capabilities for realtime monitoring of our vehicles as they approach
the border, go through cross-border procedures,
and then proceed on to their destination. We
know from experience that this is a vulnerable
stage of any journey between Mexico and the
U.S., because Ryder is responsible for a large
number of trucks that pass through such major
crossings as El Paso and Laredo in Texas. Realtime monitoring includes checking in with
drivers and tracking GPS data, live video, and
other information flowing in from our security
systems. When we suspect that a vehicle or
cargo has been compromised, we can divert
it immediately for additional inspections by
government border authorities – a level of publicprivate cooperation that Ryder pioneered and
still leads.
Ryder System, Inc. Corporate Sustainability Report
Rental Fleet Security
The rental business of our FMS segment makes
commercial trucks available on a transactional,
or short-term, basis to a wide variety of
businesses. Often these customers are new
to us, which can present a security concern.
One of the ways we address this concern is by
owning, operating, and staffing all of our rental
operations with Ryder employees, which means
we control their security policies, procedures,
training, and IT systems. These capabilities,
along with our proprietary screening system for
customers and drivers, enable us to comply fully
with “know your customer” regulations (such
as in the U.S. Patriot Act) aimed at preventing
rentals to individuals and organizations with
whom U.S. citizens and residents are prohibited
from doing business. As for our vehicles, we
secure them from theft with a broad set of
integrated measures including key control,
facility security, yard checks, GPS tracking,
security inspections and audits, communication
and awareness, and training of rental personnel
to recognize and report suspicious activity.
We cooperate closely with law enforcement
agencies to improve the flow of information,
and meet regularly with industry partners,
organizations, and government regulators to
improve overall security in the truck rental and
leasing industry. For example, we are a member
of TRALA (Truck Rental and Leasing Association)
and we assist TRALA in the development of
training materials and establishment of industry
standards regarding the improvement of truck
and car rental security. In addition, we have
regular meetings with Department of Homeland
Security and U.S. Customs and Border Protection
staff to share information and discuss methods
of improving truck rental and border security.
Crisis Management
We take a tiered approach to Crisis Management
Planning. At the corporate level, we have
a long-standing and robust Crisis Management
Plan to ensure that appropriate executive,
financial, and technical resources are applied
in response to crisis events that could impact
our employees, customers, assets or the
corporation as a whole. At the local level,
each Ryder site has documented Emergency
Response Plans including plans for severe
weather, fires, evacuations, chemical spills,
and other similar events. Sites that are critical
for Ryder and our customers’ continued
operations have documented Business
Continuity and Disaster Recovery plans
to minimize the impact of crisis events.
36
Governance
The principles underlying our Crisis
Management Plan are as follows:
•
•
•
•
•
Protect our people as the highest priority.
Prevent crisis events from occurring, to the
extent possible.
Ensure that crisis managers are notified
in time to lead intervention efforts.
Anticipate the steps that need to be
taken during a crisis, and then plan for
and practice them.
Engage with the public sector and customers
to ensure proper awareness, communication,
and planning.
These principles were put to the test on the
tenth anniversary of September 11, 2001. After
receiving notification from U.S. authorities of
a credible terrorist threat, we decided that the
benefits of continuing to conduct certain types
of truck rental activity over that weekend were
outweighed by the second principle above –
the best way to manage a crisis is to prevent it
from occurring. Accordingly, we temporarily
suspended rentals to consumers and new
commercial customers until the anniversary
passed, without incident.
Stakeholder Engagement
Ryder is a publicly traded service business
in a closely regulated industry, and operates
in thousands of locations throughout North
America, the U.K., and Asia. These factors
make it essential to our sustainability that we
successfully engage with investors, employees,
customers, our industry, the public sector, and
our communities. In this section we discuss
stakeholder engagement with investors,
customers, our industry, and the public sector.
For information about engagement with our
employees and communities, see “People
– Employee Engagement” on page 68.
Investor Relations
Ryder is known for its transparency in financial
reporting. This commitment to transparency
arises from our determination to get the right
results, the right way. We want our investors
to value Ryder for the right reasons, which are
the factors that increase Ryder’s total return to
shareowners over time. Accordingly, we conduct
a vigorous, engaged, and proactive program of
investor relations for a company of our size and
market capitalization. This program includes:
our strategy and operating results. Presentations
at these events are web cast and accessible
at investors.ryder.com.
• Visits to investors in their offices throughout
the year, hosting investors at the company’s
headquarters in Miami to interact with
the management team, and hosting tours
of operating facilities.
• Quarterly conference calls (with advance
public notice) that are fully accessible to the
public to discuss recent operating results
and future business trends.
• A dedicated Investor Relations section of our
website, accessible at investors.ryder.com.
• An Annual Review and reports on Ryder’s
financial performance available online
at investors.ryder.com.
In 2011, Ryder continued to expand the
company’s investor base, in particular by building
relationships with European shareholders who
owned approximately 11% of shares outstanding
by year-end. In addition, four new firms initiated
stock research coverage of Ryder during 2011,
increasing the number of sell-side brokers
publishing research on the company from
11 to 14 firms.
Customer Engagement
Like all successful businesses, Ryder solicits
customer feedback and quantifies customer
satisfaction and engagement. What is less
common among Fortune® 500 companies is that
we also challenge our customers to become
more environmentally sustainable. In 2011, we
formalized this approach with two new services.
In our SCS segment, we developed an initiative
for our customers called the Green Challenge.
In essence, the Green Challenge simplifies and
quantifies the financial and operational logic
of adopting a more environmentally friendly
approach in supply chain outsourcing. We don’t
take any options off the table, but we make sure
our greener options are presented clearly and
persuasively, so that companies can make more
informed choices about the vehicles and the
warehouses we operate in serving them. Many
companies have not done this kind of analysis
of their outsourcing activities before, so we are
doing it for them.
In our FMS segment, we launched Flex-to-Green:
a flexible leasing solution that lets customers
replace diesel-powered vehicles that are leased
from Ryder with alternative fuel vehicles when
they are ready. The Green Challenge and
• Ongoing dialogue with all relevant
Flex-to-Green are described in more detail in
participants in the equity markets.
• Participation in numerous equity investment “Environment” on page 44 and in "Profile" on
conferences during the year to communicate page 23, respectively.
37
Ryder System, Inc. Corporate Sustainability Report
Governance
We also engage our customers about security
issues, because we often have more insight into
current trends and opportunities than they do.
This is because as an industry leader in both size
and management commitment, we operate at
the intersection of all the major influences on
security trends in our industry: current threats,
evolving technology, political concerns, publicprivate collaboration, and more. We bring our
perspectives, innovations, and best practices
to customers in a way that makes it easy for
them to understand and participate with us.
We take this responsible approach because we
know from experience that engaging everyone
with aligned interests is the best way to increase
overall security in the transportation and
logistics industry.
Industry and Public Sector Engagement
The collaborative approach we advocate for
addressing industry-wide issues, as described
above, requires that we successfully engage
our peers, competitors, and industry partners
in productive dialog. We pursue this dialog
in a wide array of trade associations that
address issues important to the company
and our stakeholders at both the federal and
state levels. Key associations include the U.S.
Chamber of Commerce, National Association
of Manufacturers, Truck Rental and Leasing
Association, American Trucking Associations,
BIPAC, American Benefits Council, Florida
Chamber of Commerce, and fifty individual
state trucking associations.
Our engagement with the public sector includes
the public-private collaborations described
above; lobbying for legislative solutions to
industry challenges; and contributing funds to
federal U.S. and select state candidates through
the Ryder Employees Political Action Committee
(Ryder PAC). We view our participation in
these activities as part of our responsibility
to engage in our society’s public dialog on
important issues, based on our expertise with
an essential aspect of the nation’s economic
and environmental infrastructure.
Ryder PAC is governed by its Board of Directors,
whose members represent our diverse
businesses and employees. The Board sets
criteria for evaluation of candidates for state and
federal office across the nation, and proposes
candidates to support for public office. These can
be incumbents, challengers, or candidates for
open seats. The Ryder PAC makes contributions
from funds gathered from eligible employees
to federal and selected state candidate campaign
committees and political party organizations.
The Ryder PAC does not disburse corporate
funds to political candidates or committees.
Disbursements to qualified candidates and
organizations are listed at www.fec.gov.
Ryder PAC’s Board has set specific criteria for its
financial support:
•
•
•
•
The candidate demonstrates a clear
understanding of how government
policies affect Ryder’s freedom to compete
in the marketplace.
The candidate’s voting record and/or
business philosophy is aligned with company
positions on key legislative issues.
The candidate has a good chance
to be elected.
The candidate represents a district that
includes Ryder employees or facilities, and/or
serves on key legislative committees.
Our Government Relations activities are
disclosed under the Lobby Disclosure Act (LDA).
We file semi-annual and quarterly reports with
the Secretary of the U.S. Senate and the Clerk
of the U.S. House of Representatives, reporting
total lobbying expenditures and contributions
made to members of Congress, as well as
sharing issues and disclosing our employees
and contractors participating in our advocacy
activities. You can access these reports at
www.house.gov and www.senate.gov.
Ryder has established a policy addressing the
governance of corporate political contributions
to candidates, parties, and organizations as
allowed under federal and state laws. Among
other provisions, the policy includes strict
approval procedures for contributions and the
reporting of those contributions to Ryder’s Board
of Directors on an annual basis. The policy is part
of our Principles of Business Conduct, which are
available online at http://investors.ryder.com/
governance/principles-of-business-conduct/
default.aspx.
Ryder System, Inc. Corporate Sustainability Report
38
Environment
Routine maintenance
ensures optimum tractor
performance, reducing fuel
use and carbon emissions
Environment
Reducing Carbon in Customer
Transportation and Logistics
Ryder plays an important role
in advancing the environmental
sustainability of commercial
transportation and logistics, particularly
in North America. When companies
outsource their transportation and
logistics operations to us, they get the
benefits of our environmental expertise,
practices, and infrastructure. With
best-in-class vehicle technologies,
maintenance services, logistics
engineering, and fueling services, we
offer our customers industry-leading
performance, optimized fuel efficiency,
and reduced carbon emissions.
Yet an estimated 90% of the five million trucks
in business fleets in the U.S. and Canada
are privately owned and operated, often by
businesses that do not have the infrastructure,
manpower, tools, and technologies to operate
their fleets at the level we do. Nor do they have
the expertise to effectively measure and track
the environmental impact of their transportation
operations, as Ryder does.
discuss all these topics in detail in this chapter,
beginning with brief introductions to five major
differentiators that help customers improve
their environmental sustainability: vehicles,
people, supply chain solutions, green services,
and carbon reporting to customers.
24,000 square-foot state-ofthe-art maintenance facility,
Fulton, Georgia
So one of our primary opportunities as a
sustainable business is to win more business
and increase our positive influence on the
sustainability of trucking fleets in the U.S.,
Canada, and the U.K. The corresponding
challenge is to continue improving our
own environmental performance, including
maximizing efficiencies of the facilities
and vehicles we manage and operate. We
41
Ryder System, Inc. Corporate Sustainability Report
Environment
Vehicles
Global Supply Chain Solutions
We help vehicle leasing and rental customers
improve the carbon footprint of their fleets in
three main areas:
Ryder’s SCS segment provides customers
with new strategies and practical advice
for operating entire supply chains more
efficiently. Our warehousing and transportation
teams bring those strategies and ideas to life
in actual facilities and transportation lanes
that knit customer supply chains together more
tightly – for both economic and environmental
benefits. We describe our SCS segment in
“Profile” on page 22.
•
•
•
We provide the latest engine technologies
and vehicles specified for optimum
fuel efficiency, because a better-equipped
vehicle can deliver both required
operating performance and improved
environmental performance.
We maintain our vehicles rigorously,
to ensure that they are delivering
the performance we expect and promise
to customers.
We offer alternative fuel and advanced
technology vehicles, which are designed
from the start for better emission
performance compared to conventional
diesel vehicles.
Our supply chain customers also benefit from
these vehicle strategies when they include our
transportation services in a Ryder supply chain
solution. For a detailed discussion of our vehicle
strategies and programs, see page 45.
People
Ryder drivers are dedicated professionals with
substantial experience, training, and willingness
to adopt and master new techniques and
technologies for environmental stewardship.
We back up our drivers with teams of dedicated
maintenance professionals working with stateof-the-art tools and technologies. They too play
a major role in the environmental performance
of Ryder vehicles, and we make sure they
have training and facilities worthy of their
contribution. For more information see
“People” starting on page 59.
A lighting retro-fit
and occupancy sensor
installation reduced
energy usage by 50%
in this Ryder-operated
customer warehouse,
Roanoke, Texas
Ryder System, Inc. Corporate Sustainability Report
Green Services
Ryder is committed to developing new ways
to help customers improve their environmental
sustainability – in ways that are easy for
customers to test, adopt, and expand. Examples
range from offering flexible leasing programs
for alternative fuel vehicles to giving supply
chain customers data-driven ideas for improving
their overall energy efficiency. For detailed
examples in this chapter, see “The Green
Challenge” on page 44 and “Natural Gas” on
page 51. Our Flex-to-Green service is described
in “Profile” on page 23.
Carbon Reporting to Customers
One of Ryder’s most important innovations
for the environment is giving customers
carbon footprint data on the parts of their
supply chain operations that Ryder manages.
These reports supplement the standard
transportation management data we already
provide to customers. The reports are based
on a standardized carbon footprint metric
we developed, which normalizes emissions
to ton-miles. Many companies do not have
the capabilities, resources, or sustainability
strategies necessary to capture this information
in their own operations. We know from
experience that measuring carbon emissions,
fuel use, waste streams, and other aspects
of our environmental performance is essential
to improving our business performance. We
therefore believe that providing our customers
with similar intelligence can help them improve
both environmental sustainability and overall
business performance.
42
Environment
Policy and Responsibility
Environmental Policy
Ryder adopted a company-wide Environmental
Policy in 1991 and implemented specific
management programs designed to create
sustainable solutions and value for our company
and our customers. This Policy, which we
update periodically to reflect changes in our
business, establishes baseline standards for
all of our businesses worldwide and serves as
the cornerstone of our overall environmental
philosophy of continuous improvement. To
support our people in adhering to the policies,
we developed a Control Manual that provides
step-by-step guidance for implementing
environmental policies and practices throughout
the organization.
Environmental Management System
Ryder’s Environmental Management System
(EMS) incorporates elements of the global ISO
14001 environmental management standard
along with other environmental best practices
that are unique to our operations and services.
Ryder’s EMS is designed to:
these front-line managers are responsible
for employee training, implementing policies,
and environmental compliance at their location.
At least once per year, the Corporate Governance
and Nominating Committee of our Board
of Directors meets with our Environmental
Services department to discuss environmental
issues and initiatives, including a review of key
operational data impacting the environment;
legislative and regulatory initiatives; energy
conservation activities; and carbon reduction
strategies for Ryder facilities and operations.
Education and Awareness
To advance adoption of natural gas vehicles in
U.S. commercial ground transportation fleets,
we participated in an event near Capitol Hill in
Washington, D.C. called “NGVs Take The Hill.”
The event brought together policy-makers,
corporations, and media to highlight the use of
natural gas as a clean, domestic, and abundant
alternative to foreign oil. One of the vehicles
exhibited was a heavy-duty natural gas truck
from our leasing fleet.
Compressed natural
gas tractor, "NVGs Take
the Hill" event
• Identify and control environmental impacts
associated with business activities.
• Improve environmental performance
continually.
• Implement procedures that routinely evaluate
and revise objectives based on identified
environmental impacts and performance.
The EMS also establishes the basis for
customer-specific EMS programs that conform
to the ISO standard. Selected Ryder locations
have achieved certification to the ISO 14001
standard. We have achieved ISO 9001 and 14001
certifications at several customer sites, including
locations in the U.K., Mexico, and Canada.
Responsibility
Responsibility for environmental sustainability
rests with the head of the Environmental
Services department, which reports up
to Ryder’s Chief Legal Officer. Within each
operating business unit, environmental
oversight responsibilities are assigned
to facility and area operating managers
as part of their regular duties. As designated
Environmental and Emergency Coordinators,
43
Ryder System, Inc. Corporate Sustainability Report
Environment
The Green
Challenge
At Ryder, we know that a more efficient supply
chain is also a greener supply chain. Higher efficiency
means better use of resources, and that translates
into lower energy consumption and better emission
performance. Most customers, though, are focused
on reducing costs, increasing uptime, and lowering
the risks associated with disruptions in manufacturing
and distribution. They’re happy to have an environmental
benefit, but it’s not the main focus.
Green
Challenge
In 2011, we began evaluating how to show
customers a new way to think about supply
chain outsourcing – a progressive yet practical
approach that moves environmental benefits
closer to center stage. We call it the Green
Challenge. The essential message to customers
is that they can leverage their engagement
with Ryder to gain significantly increased
environmental benefits.
We still provide outstanding increases in
efficiency and reliability, but with an even
lower carbon footprint than before. And we
provide all the technology, resources, knowhow, and support the customer needs to get
the desired results.
Customers can accept the Green Challenge at
varying levels of intensity. It could be as simple
as changing to a hybrid or alternative-fuel vehicle
for the transportation services we provide. This
may cost a little more at the start, but delivers
clear cuts in greenhouse gas emissions right
away and continues to deliver environmental
efficiencies over time. Or companies could
implement our more extensive proposals,
which include facility retrofits, new distribution
network designs, alternative transport modes,
and other investments that deliver long-term
environmental benefits. Even companies that
don’t accept the Green Challenge get valuable
new perspectives on how they could go greener
in the future.
improvements in environmental performance
and run multiple variables through proprietary
models and calculators. The result is a customized
proposal that might include any of the following:
• Natural gas or hybrid vehicles owned
and operated by Ryder.
• Transportation from Ryder-managed
SmartWay® carrier partners – the best
operators with the lowest carbon footprint.
• Intermodal strategies incorporating lower carbon modes such as rail transport.
• Carbon offsets for transportation emissions.
• Green building solutions for lighting, heating,
and cooling.
• More energy-efficient operating equipment
in warehouses.
• Greener shipping materials.
• Recycling processes.
• Support for green contractor selection.
• Management tools for emission tracking
and reporting.
We believe that it’s time for Ryder and other
environmental leaders to step forward and
challenge customers because of important
trends that are already evolving.
One trend is that consumer-facing companies
are seeing more consumer interest in
environmental performance. Some have even
changed their strategy to compete on this factor.
These companies – and their suppliers – need
to show environmental improvements to remain
competitive. Another trend is that measuring
and reporting on greenhouse gases has
become a standard practice for most leading
companies across the industry, including Ryder.
Companies that appear on the Carbon Disclosure
Leadership Index, for example, continually seek
to enhance corporate governance and disclosure
regarding energy usage and carbon mitigation
(see page 48).
These and other trends tell us that customers
will be more receptive than ever to practical
environmental proposals that meet real business
needs with measurable results.
Before we present the Green Challenge to a
customer, we assess the company’s potential
Ryder System, Inc. Corporate Sustainability Report
44
Environment
Fuel and Emission Reduction –
Strategies and Technologies
Diesel Fuel and Exhaust Fluid
We deliver only low-emission ultra-low-sulfur
diesel (ULSD) fuel in all our fueling stations.
We offer Diesel Exhaust Fluid (DEF) at our 550
full-service Ryder locations in North America
to support our customers who operate Ryder
vehicles with Selective Catalytic Reduction
(SCR) technology. SCR is one of the primary
technologies used to meet 2010 vehicle emission
standards set by the U.S. Environmental
Protection Agency (EPA). DEF is a non-toxic
solution required for vehicles using SCR.
In 2011, we began constructing bulk storage
and dispensing equipment for DEF pumps
in anticipation of growing demand.
Natural Gas
In 2011, Ryder made a major new commitment to
alternative vehicle technology with our purchase
of 240 new heavy-duty natural gas trucks for
deployment in customer fleets in Arizona,
California, and Michigan. Natural gas generates
fewer greenhouse gas emissions than diesel
fuel. There is an abundant supply of natural gas
in North America, where the great majority of
our operations are located, which substantially
reduces costs and environmental impacts
compared to fuels produced from imported oil.
The majority of the natural trucks we purchased
in 2011 are part of our project with the San
Bernardino Associated Governments (SANBAG)
to establish a natural gas freight corridor in
Southern California in partnership with the U.S.
Department of Energy (DOE) and the California
Energy Commission. For more information, see
the Executive Statement from Nanci Tellam on
the following page and the special feature on the
project on page 51.
Ryder dispenses
approximately 400 million
gallons of fuel to thousands
of customers each year
45
Ryder System, Inc. Corporate Sustainability Report
Environment
The potential benefits of natural gas vehicles are significant – and so
are the challenges. Natural gas vehicles are among the lowest-emitting
vehicles in the world, and in many cases they are less expensive to refuel
than diesel-powered vehicles. The U.S. has abundant reserves of natural
gas, which would help us avoid the negative consequences of imported oil.
Yet natural gas vehicles still have significant challenges to overcome
before they can become a bigger factor in the economy. Transportation
companies can’t operate the vehicles without refueling and maintenance
stations, and there’s little incentive to build them without enough
customers and vehicles to use them. This keeps costs high for both
vehicles and infrastructure. To overcome this challenge, we need to
align the public and private sectors, find good opportunities to share
investments, and bring the technical knowledge and benefits of natural
gas vehicles to paying customers.
Executive Statement:
Nanci Tellam
On Natural Gas
“We need to align
the public and
private sectors,
find opportunities to
share investments,
and bring the
benefits of natural
gas vehicles to
paying customers.”
We know this approach can work, because we are proving it in Southern
California. In 2011, Ryder began to offer leasing and rental customers 202
heavy-duty natural gas trucks. Independent estimates indicate that this
new fleet will displace more than 1.5 million gallons of diesel fuel with
domestically produced natural gas, and reduce emissions by well over
4,000 metric tons of greenhouse gases, every year.
We were able to do this because the San Bernardino Associated
Governments had already joined with the U.S. Department of Energy
and the California Energy Commission to develop a natural gas corridor
in San Bernardino County, which reaches from near Los Angeles to the
Nevada border. They needed a fleet partner willing to purchase trucks
and develop infrastructure in a public/private partnership, and Ryder had
the financial strength, technical expertise, and customer base in place
to complete the equation.
We can now see that the economic and regulatory conditions for natural
gas vehicles are improving, even though new challenges may arise.
For example, we are closely watching developments related to hydraulic
fracturing, or “fracking,” for production of domestic natural gas. At Ryder,
we believe that the way forward is to improve the methods and technology
for extracting domestic natural gas, not to forego the benefits of the
gas itself.
Like other companies in the transportation sector, we are ready to deploy
more environmentally friendly vehicles to the extent that the benefits
justify the costs. While the future looks good for natural gas vehicles,
the opportunities for leadership are still abundant.
Nanci Tellam
Group Director, Environmental Services and Sustainability
Ryder System, Inc. Corporate Sustainability Report
46
Environment
Telematics and RydeSmart®
Ryder’s RydeSmart telematics technology
is designed to help customers improve vehicle
operations and lower operating expenses
including fuel costs. RydeSmart is deployed in
approximately 23,000 leased and rental vehicles,
helping fleet managers achieve a 10% to 15%
reduction in fuel and CO2 consumption through
improved routing and reduction of unauthorized
idle time. For more information visit
www.rydesmart.ryder.com.
Ryder customers also have access to our
proprietary fleet management and diagnostic
technology, FleetCare. This tool provides
customers with immediate web-based access
to fleet data to help transportation managers
analyze trends and recognize opportunities for
increased efficiencies. In addition, for customers
who employ their own drivers, Ryder provides
online driver training programs through Ryder
Pro-TREAD. This system includes courses that
improve driving skills and performance, and
teaches drivers simple techniques to reduce
fuel consumption. Companies can access
driver training through Pro-TREAD at
www.rydersafetyservices.com.
SmartWay® Program
The SmartWay program is a voluntary public/
private partnership initiated by the EPA in
2004 to improve the fuel efficiency of the
country’s commercial freight industry through
a combination of education, information sharing,
and incentives. The five elements of the
SmartWay program include:
•
•
•
•
•
transportation industry must adopt best
practices more widely to achieve measurable
increases in fuel efficiency. (This is also our
purpose for engaging in other programs and
partnerships, such as NACFE; see page 49).
Ryder is a SmartWay Carrier Partner for
Ryder-owned and operated vehicles and a
SmartWay Logistics Partner for our supply
chain operations and an Affiliate Partner for
Ryder’s leasing business.
In addition, we promote SmartWay participation
by the freight companies we manage on behalf
of our customers. Ryder purchased more than
US$4 billion in transportation services in 2011,
and SmartWay participation is a selection factor
when we source those services. We measure
SmartWay participation of the companies we
manage by distance traveled (freight miles)
and cargo carried (freight tons). SmartWay
carriers accounted for 87% of all freight miles
we managed in 2011, compared to 92% in 2010.
SmartWay carriers accounted for 70% of all
freight tons we managed in 2011, compared to
77% in 2010. These decreases are due primarily
to increased data reporting requirements for
carriers in 2011. This reduced the participation
by carriers and therefore the number of carriers
in the data pool we receive from the program.
Even so, we increased the proportion of
SmartWay carriers we work with in our
transportation management activities to
32% in 2011, up from 29% in 2010.
Fuel Island Service Employee,
Sacramento, California
A partnership in which freight carriers and
shippers commit to benchmark operations,
track fuel consumption, and improve
performance annually.
A testing, verification, and designation
program to help freight companies identify
equipment, technologies, and strategies
that save fuel and lower emissions.
A competitive grant program that makes
investing in fuel-saving equipment easier
for freight carriers.
A program that ranks light-duty cars
and small trucks and identifies superior
environmental performers with the
SmartWay logo.
Guidance and resources for countries seeking
to develop freight sustainability programs
modeled after SmartWay.
Ryder is actively engaged with the SmartWay
program, because we believe that the
47
Ryder System, Inc. Corporate Sustainability Report
Environment
RydeGreen hybrid straight
truck, Austin, Texas
RydeGreenSM
Our RydeGreen line of tractors and trailers
includes both conventional and alternative
technology vehicles. RydeGreen conventional
tractors are equipped with SmartWay verified
technologies that help increase miles per gallon.
RydeGreen equipment is also eligible to receive
the SmartWay designated tractor certification.
The RydeGreen hybrid medium-duty straight
truck can deliver fuel efficiency up to 30% better
than conventional vehicles in standard in-city
pickup and delivery applications. Lower fuel
consumption avoids carbon emissions and
the hybrid’s battery power mode dramatically
reduces diesel emissions when the vehicle is
operating. Every gallon of diesel fuel that is not
burned avoids 22.2 pounds of CO2 emissions.
Carbon Disclosure Project
The Carbon Disclosure Project (CDP) is an
independent not-for-profit organization
holding the largest database of corporate
climate change information in the world.
Thousands of organizations from across the
world’s major economies measure and disclose
their greenhouse gas emissions and climate
change strategies through CDP. Ryder has
voluntarily responded to the Carbon Disclosure
Project annually since 2008. In 2009, the CDP
introduced a performance component to the
reporting by scoring CDP responses. The
disclosure score reflects the comprehensiveness
of a company’s response in terms of the
depth and breadth of its answers. The score
is normalized to a 100 point scale.
We have consistently improved our CDP score
each year, receiving a 50 in 2008, 61 in 2009,
68 in 2010, and an 83 in 2011, earning Ryder
recognition in the Carbon Disclosure Leadership
Index. Ryder’s 2011 score of 83 places the
company in the “High” score category. A “High”
score suggests good internal data management
and understanding of the issues that climate
change presents to the company’s business.
For more information about the Carbon
Disclosure Project visit www.cdproject.net.
To access our most recent response to the CDP
annual disclosure survey, visit www.ryder.com/
greencenter or visit cdproject.net.
Ryder System, Inc. Corporate Sustainability Report
48
Environment
One of the things we’ve learned at Ryder is that there is no one-size-fits-all
strategy for increasing fuel economy in a commercial fleet. We operate
and maintain many different kinds of trucks, and they’re traveling the full
variety of “lanes,” or routes. We use a variety of technologies to help us
measure and manage fuel economy. So, we understand that there are
many variables involved in fuel economy. Getting more miles per gallon,
in some cases, is all about the driver controlling speed. In others, it’s more
about the configuration of the tractor that’s pulling the trailer, or how we
plan the route for a truck that has to make a lot of stops.
All these variables make it hard for companies with smaller fleets to dial
in exactly what’s right for them. Even companies with larger private fleets
that can control all the variables may not have the manpower or expertise
in-house to assess every new fuel-efficiency technique or technology that
comes along. If the commercial transportation industry is going to improve
its fuel efficiency and emissions profile, we need to focus on what works
and get it deployed.
Executive Statement:
Scott Perry
On NACFE
“If the commercial
transportation
industry is going
to improve its
fuel efficiency
and emissions
profile, we need
to focus on what
works and get
it deployed.”
This is a major reason Ryder joined the North American Council for
Freight Efficiency (NACFE) and participated in its first major project:
a benchmarking study of fuel-efficiency strategies and technologies
adopted by commercial fleets. Another reason was to expand our internal
knowledge base. We’re data-driven at Ryder, so we saw immediate value
in quality data about what other good companies are doing. On top of
that, a fair number of the companies that participated in the study are also
Ryder customers. We were happy to see that Ryder is ahead of the curve
in many areas, and we also gained valuable insights about areas where
others are ahead of us.
One of the beneficial outcomes for our industry is that the study
results make it easy for other companies to compare their fleets to the
benchmarks and understand which lessons learned they should consider
applying to their own business.
Another important benefit is that the Council and its members now
can have a data-driven conversation with manufacturers about which
technologies we want to see developed further and brought to market
faster. That in turn will benefit everyone, because when manufacturers
have more confidence about the market for their solutions, they can make
investments that bring down costs. We can also have more informed
conversations with regulators and take a more focused approach to
influencing public policy in areas such as alternative fuels.
For all these reasons, Ryder is fully engaged with NACFE and
supporting its work to improve fuel efficiency of commercial
transportation in North America.
Scott Perry
Vice President of Supply Management, Fleet Management Solutions
49
Ryder System, Inc. Corporate Sustainability Report
Environment
Emission Reporting
This Corporate Sustainability Report continues
our past practice of expanding our disclosures
regarding carbon emissions. As in past years,
we disclose our absolute emissions in accordance
with standards established within the Greenhouse
Gas Protocol:
•
•
•
Scope 1 Direct Emissions for all operations
owned and controlled by Ryder, including
on-site natural gas combustion and fuel use
in Ryder owned and operated vehicles, for
the U.S. and Canada.
Scope 2 Indirect Emissions for purchased
electricity at owned or leased locations in
the U.S. and Canada.
Scope 3 Indirect Emissions associated
with employee business travel. This is one
of 15 categories specified in the Greenhouse
Gas Protocol Corporate Value Chain (Scope 3)
Accounting & Reporting Standard.
Scope 1 and 2 Greenhouse Gas Emissions
Enterprise, U.S. & Canada (metric tonnes of CO e)
2
2009
2010
2011
Scope 1
473,934
466,862
459,452
Scope 2
96,177
92,400
88,643
Total
570,110
559,262
548,095
Note: Figures reported include rounding effects.
Scope 1 Greenhouse Gas Emissions by Source
Enterprise, U.S. & Canada (metric tonnes of CO e)
2
2009
2010
2011
Mobile
439,911
434,150
427,246
Stationary
34,023
32,712
32,206
Total
473,934
466,862
459,452
We reduced both Scope 1 and Scope 2 greenhouse gas emissions in 2011. Key performance drivers
were traveling fewer miles primarily in our dedicated contract carriage business (Scope 1 mobile
sources), using less fuel in our facilities (Scope 1 stationary sources), and reducing electricity usage
primarily in our SCS segment (Scope 2). We describe our strategies and performance regarding
energy use in our facilities later in this chapter, on page 53.
Scope 3 Greenhouse Gas Emissions
Enterprise, U.S. & Canada (metric tonnes of CO e)
2
Category 6: Employee
Business Travel
2009
2010
2011
Not Available
14,925
18,838
In 2011, we recorded higher emissions in the employee business travel category of Scope 3
emissions, primarily because we expanded our data capture to include employee use of rental
cars. As in prior years, we continued to reduce our need for employee travel by using low-emission
alternatives such as video teleconferencing, online meetings, and digital training courses.
Ryder System, Inc. Corporate Sustainability Report
50
Environment
Natural Gas
Trucks
Come to
Commercial
Leasing
and Rental
In 2011, Ryder made substantial capital investments
to establish three new fleets of natural gas vehicles
in California, Arizona, and Michigan. The California
fleet is the first deployed into a large commercial
truck leasing and rental operation, making natural
gas vehicles accessible to a variety of businesses that
might otherwise lack the resources to invest in newer
technology. The Arizona and Michigan fleets each
support a full-service leasing customer seeking
to reduce fuel costs and emissions with ultra-lowemission natural gas trucks.
Natural gas tractor
maintenance, Rancho
Dominguez, California
The California fleet totals 202 heavy-duty
natural gas vehicles for our Southern California
operations network, where our customers can
access them through short-term rentals,
long-term leases, or through our dedicated
logistics services. These trucks include both
liquefied and compressed natural gas (LNG
and CNG) configurations. CNG vehicles produce
95% less particulate matter, 80% less nitrogen
oxide, and provide an overall reduction of 23%
in greenhouse gas emissions compared to
diesel engines, according to the U.S. Department
of Energy.
We plan to maintain the new vehicles at three
strategically located maintenance shops along
the San Bernardino corridor, including locations
in Orange, Rancho Dominguez, and Fontana,
51
California. Each maintenance facility will be
properly equipped for the indoor repair of natural
gas vehicles.
The purchase of the trucks and our infrastructure
build-out represent an investment by Ryder
of nearly US$19.4 million. This amount was
matched by state and federal funding sources,
including US$9.95 million from the U.S.
Department of Energy’s Alternative Fuel and
Advanced Vehicles Pilot Program funded through
the American Recovery and Reinvestment
Act of 2009 (ARRA) and US$9.3 million via the
California Energy Commission’s Alternative and
Renewable Fuel & Vehicle Technology Program.
Ryder was selected as the fleet partner for the
project because we have the capabilities and
resources to successfully partner with major
public agencies in a large-scale project. Just
as important, our customers look to us for ways
to improve their environmental performance
in logistics and transportation (see “The Green
Challenge” on page 44).
Here are some of the benefits that Ryder and its
project partners anticipate when the natural gas
corridor project in San Bernardino County is fully
implemented in 2012 (based on guidelines from
California’s Carl Moyer Memorial Air Quality
Standards Attainment Program):
•
•
•
•
•
Replace more than 1.51 million gallons
of diesel use annually with 100%
domestically produced low-carbon liquefied
and compressed natural gas.
Contribute to the maintenance and
creation of more than 400 U.S. green
automotive jobs.
Reduce more than 9.2 million pounds
of greenhouse gas emissions per year.
Reduce more than 131 tons of nitrogen
oxide emissions annually.
Completely eliminate 2.65 tons
of diesel particulate emissions from
local neighborhoods.
In Arizona, we established a new dedicated
natural gas fleet for Golden Eagle Distributors,
Inc., a leading beverage distributor in the
state. Golden Eagle is converting its entire
23-vehicle fleet to CNG vehicles leased from
and maintained by Ryder. In Michigan, UBCR is
one of the state’s largest recycling companies.
It is leasing 16 natural gas trucks from Ryder.
To support UBCR and future customers in the
region who lease or rent natural gas vehicles, we
have also upgraded two facilities in Michigan so
that they are properly equipped for the indoor
maintenance of natural gas vehicles.
Ryder System, Inc. Corporate Sustainability Report
Environment
The Department of Energy’s Clean Cities initiative is approaching its
20th anniversary, and its number one goal remains the same: reducing
America’s dependence on petroleum. As part of the American Recovery
and Reinvestment Act, Clean Cities, through the Department, was
authorized to solicit and invest in alternative fuel projects. Approximately
two-thirds of the projects selected had a natural gas component, including
the corridor project proposed by the San Bernardino Area Governments
in Southern California. Seeing an opportunity for industry partnership,
the local and state agencies that proposed the project selected Ryder as
the fleet partner.
Stakeholder Perspective:
Mark Smith
U.S. Dept. of Energy, Vehicle
Technologies Deployment Manager
“Ryder is to be
commended for
helping show that
alternative fuels
don’t need to be
‘alternative’ forever.”
The Clean Cities initiative invested in this project because of its direct
petroleum reduction as well as its potential to set a foundation for future
adoption of alternative fuels. The corridor approach makes it possible
for companies with long-distance, heavy-duty trucks in their fleets to
switch over to natural gas. These vehicles typically spend every day on
the road traveling hundreds of miles. Increasing the regional and national
availability of natural gas for these fleets can make a big difference,
in comparison to smaller fleets that stay closer to home. In addition,
establishing a long-distance corridor in any area makes it possible for
local fleets along that route to leverage the fueling and maintenance
infrastructure. It’s a win for both national and regional fleets, which we
will need for any alternative fuel to break through.
In addition to fueling sites, we need strong fleet partners that are willing
to try out new and different technologies. Companies like Ryder that step
up to the role have to be willing and able to make substantial investments
of their own. They must have the confidence in their decisions to ride out
the bumps and bring their customers along with them. Once they’ve made
this commitment, they’re the perfect spokespeople to communicate this
message to other fleets.
The Department of Energy can do a lot to help projects along and
overcome obstacles, but for alternative fuels to take hold, we need
successful corporations to describe the benefits of alternative fuels and
encourage others in the private sector to use them. Ryder not only touches
a lot of other businesses in multiple industries; they know how to talk
to Wall Street.
The outlook for natural gas is good. Petroleum prices are high and natural
gas prices are low. With the new corridor in Southern California, we have
a backbone from the West Coast to Salt Lake City. Smaller corridors are
going in around the country. Once we connect them up, we will begin
to reach the critical mass we need to bring costs down for vehicles and
infrastructure. Ryder is to be commended for helping show that alternative
fuels don’t need to be “alternative” forever. They can be part of a smart
transportation strategy for successful companies.
Ryder System, Inc. Corporate Sustainability Report
52
Environment
Resource Conservation
Electricity Use
Enterprise, U.S. and Canada (gigawatt hours)
Ryder-Owned Facilities
Consistent with our long-standing commitment
to operational efficiency and to using resources
as efficiently as possible, we are measuring and
reporting our electricity, natural gas, water, and
sewer use for all U.S. and Canada operations.
Improving energy efficiency is central to our
carbon reduction strategy and the sustainable
solutions we provide to our customers.
166
161
156
Energy Conservation in Facilities
Conserving energy in our facilities is a matter
of continuous improvement. This process
includes both system-wide initiatives, such
as a recent program to replace existing lighting
in our FMS facilities with energy-efficient
lighting, and regular local application of the
Energy Conservation Checklists we have
developed specifically for our facilities in the
U.S. and Canada. These Checklists include best
practices for facility management, lighting,
and atmospheric controls, all aimed at
conserving energy. We also evaluate energy
performance as a standard element in our
environmental due diligence process for
purchasing or leasing a facility.
In 2011, we reduced electricity use in our facilities
3.1%, notably including increased energy
efficiency in a number of supply chain facilities
in Canada. Gas usage also came in lower, led
by our FMS segment in the U.S.
2009
2010
2011
Note: Figures reported include rounding effects.
Gas Use
Enterprise, U.S. and Canada (thousands of cubic feet)
Ryder-Owned Facilities
611,619
589,280
579,182
2010
2011
Information technology (IT) systems account
for a growing proportion of our facility-based
energy consumption for two reasons: IT
becomes an ever more important part of our
corporate infrastructure and we are aggressively
reducing consumption from other sources, such
as lighting, heating, and cooling. We pursue
a number of strategies aimed at reducing
IT energy consumption, such as employing
server virtualization technologies at our major
data centers. In 2010 and 2011, we reduced
the number of general shared-use servers we
require, which in turn lowered energy needs
in our data centers.
2009
53
Ryder System, Inc. Corporate Sustainability Report
Environment
Water Conservation
The activity most responsible for water
consumption at Ryder is vehicle washing.
Vehicle washing is performed daily at most
Ryder facilities, and we collect more than two
million gallons of vehicle wash water annually.
We conduct all vehicle washing according
to our aggressive reuse and recycling policies.
We also handle wastewater in compliance
with all environmental regulations, including
treatment prior to disposal or recycling. In 2011,
water use at Ryder-owned facilities in the U.S.
and Canada increased 4.5% compared to the
prior year, primarily due to an increase in water
use in the company's FMS business segment.
Water Use
Automotive waste streams. We recycle virtually
all automotive waste streams, such as used oil,
oily water, oil filters, solvents and refrigerants.
We also recycle more than 50,000 automotive
batteries annually, as well as 10,000 drums of
used filters annually. We have steadily reduced
the amount of waste we generate year-over-year
by implementing aggressive waste management
programs, as well as reuse and continuous-use
technologies whenever possible. In 2011, we
applied this closed-loop recycling strategy to 2.7
million gallons of used oil, 1.1 million gallons of
oily water, 8,183 drums of oil filters, and 28,619
gallons of solvent. This is a total volume of 4.29
million gallons, representing a 9.8% increase
from 4.12 million gallons in 2010.
Automotive Waste Stream Recycling Summary
Enterprise, U.S. and Canada (thousands of gallons)
Volume1
(millions of
gallons)
CO2e Metric
Tonnes
Avoided2
Passenger
Vehicle
Emissions
Equivalent3
Tree
Conservation
Equivalent3
2009
4.08
22,332
4,271
578,754
2010
4.12
21,693
4,139
560,798
2011
4.29
22,302
4,267
578,132
Ryder-Owned Facilities
290,570
234,014
224,026
Total volume of oil, oily water, automotive waste filters, and solvents recycled.
Metric tons avoided through closed loop recycling of used oil and solvents versus burning
for one-time energy use.
3
Equivalents from EPA Calculator (CO2e) 2009-2010,
www.epa.gov/cleanenergy/energy-resources/calculator.html.
1
2
2009
2010
2011
Waste Management and Recycling
We conduct a wide range of onsite and offsite
recycling and reuse technologies as part of
our overall waste management and recycling
program. In particular, we devote considerable
attention to managing automotive waste
streams associated with vehicle maintenance
and fueling activities, and technology waste
streams associated with information technology
systems. We also use products made from
recycled materials to a large and growing
extent. This includes using retread tires and
re-refined motor oils (see “Products from
Recycled Materials” on the following page).
Automotive waste streams are monitored at all Ryder maintenance facilities
Ryder System, Inc. Corporate Sustainability Report
54
Environment
Technology waste streams. We recycle all
retired electronic components, computers, and
component parts at all of our locations in the
U.S. and Canada. Electronic components are
fully evaluated prior to end-of-life destruction
to ensure all reuse and redeployment options are
exhausted, thereby maximizing the useful life of
the equipment and reducing overall technology
lifecycle costs and emissions. We partner
with national and regional recycling and reuse
companies to collect and dismantle electronic
components including glass, mercury, and
hazardous materials, to ensure that electronic
scrap material does not end up in a landfill.
E-waste recycle partners are compliant with
EPA Responsible Recycling Standards and/
or E-Standards Recycling Program Standards.
Extending the useful life of computers and
electronics keeps toxic materials out of landfills
and also avoids emissions that are released
during manufacturing of new products.
By maximizing the useful life of electronic
equipment, Ryder can minimize disposal
costs and extend the life cycle of equipment.
In 2011, our electronic waste stream recycling
totaled 56 tons, a substantial increase from
2010 driven primarily by equipment retirements
which vary from year to year depending on IT
upgrade programs.
Electronic Waste Stream Recycling
Enterprise, U.S. and Canada (tons)
61
56
38
2009
2010
55
2011
Paper & Cardboard Recycling
Enterprise, U.S. & Canada (tons)
7,498
5,828
3,449
2009
2010
2011
Products from Recycled Materials. We use
re-refined motor oil at more than 325 FMS
locations in the U.S. and Canada, accounting for
approximately 1.2 million gallons (about 40%)
of the 3 million gallons of engine oil we use in
our operations annually. The motor oil is
collected from oil change locations including
Ryder shops, then processed at refineries
and redistributed. This new oil meets all
API standards, is supported by all engine
manufacturers, and will not have a negative
effect on maintenance or degrade optimum
performance of our vehicles. In addition, the
new oil requires less energy to manufacture than
virgin stock from crude and results in reduction
of greenhouse gases and metal emissions.
We also use retread tires, which consist of
used tire casings fitted with new treads. These
tires require significantly less oil to produce
than a new tire, consume less energy in the
manufacturing process, and save on landfill
space because fewer tires require disposal. The
energy needed for a retread is estimated to be
70% less than what is required to manufacture
a new tire. We use more than 600,000 tires
annually, nearly 50% of which are retreads.
Ryder System, Inc. Corporate Sustainability Report
Environment
Ryder trucks are equipped
with customized vehicle
spill kits
Energy from Solid Waste. More than 40%
of Ryder U.S. locations manage their nonhazardous solid waste using landfills that
extract energy from waste by-products.
This has two benefits. By capturing methane
emissions that occur as wastes break down,
the landfills prevent release of methane –
a greenhouse gas – into the atmosphere.
And because methane can be converted to
fuel for residential and commercial use, the
landfills are also generating renewable energy.
Compliance
Environmental Auditing and
Due Diligence
To ensure compliance with established
policies and procedures, Ryder requires all
locations to conduct annual environmental
self-inspections. Our Environmental Services
department audits more than 600 locations
annually. As part of our due diligence for
property acquisitions and dispositions, lease
renewals, and company acquisitions, we perform
more than 300 environmental investigations
each year. These due diligence investigations
are part of our comprehensive process for
evaluating and mitigating potential risks.
Fuel Storage and Compliance
Ryder Fuel Services, a wholly owned subsidiary
of Ryder, performs compliance management,
alarm management, service management, and
fuel management services, with more than 500
locations and 1,700 tank systems.
Spill Response
We have established standardized emergency
response procedures to ensure immediate
response to all vehicle and facility spills and
releases. We use an emergency spill response
center to expedite the dispatch of emergency
spill response teams to spill sites anywhere
in the U.S. All Ryder trucks are equipped with
a Ryder vehicle spill kit, which provides the driver
with everything needed for fast and effective
spill response. Customized kits are also available
for our customers.
Ryder System, Inc. Corporate Sustainability Report
56
People
Technician, West Palm
Beach, Florida
People
In this chapter, we describe strategies,
policies, and innovations for safety, and
we highlight important new programs,
events, and investments aimed at
continually renewing Ryder’s most
important resource: our people.
Our highest priority is to keep our people safe
on the job so that they can continue to make
their valuable contributions to Ryder and our
customers. We also recognize the environmental
benefits of safety. Transportation companies
that operate safely don’t need to use additional
resources to replace damaged vehicles,
generate additional emissions in transporting
replacement loads, or clean up hazardous
material spills. That’s why we build safety into
everything we do and look for technologies and
best practices that help people perform safely
at a high level. This year we have expanded our
disclosures regarding our safety performance.
We also introduce our Drivers of the Year, who
are standout safety performers, as well as
excellent representatives of their colleagues
throughout Ryder.
Along with safety, we focus significant
attention and resources on keeping Ryder
strong through human resource development.
We believe that preparing for the future is
an essential requirement for sustainability.
That’s why we are expanding and refining our
learning and development capabilities: so we
can better identify and prepare the managers
and leaders of tomorrow.
Safety
Safety Management System
Ryder’s Safety Management System provides
the framework of procedures and standards
that help our employees work safely every day.
An integral part of the system is measuring
safety performance using a range of metrics
and indicators, including both industry-standard
measures and more stringent, improvementfocused measures that we have developed and
59
adopted internally. This helps to ensure factbased, data-driven approaches to preventing
injuries and collisions. Our focus on prevention
includes particular attention to observation
and training. Ryder also uses electronic reporting
and ongoing audit programs to watch for
patterns that could lead to safety issues in
the future.
Each year we develop a series of monthly
Operational Safety Plans that focus on specific
target prevention activities for every location.
We distribute each new plan throughout the
company with a web-based software system,
Safety Tracking and Reporting (STAR). We also
use STAR to track completion of the Operational
Safety Plan agenda each month to communicate,
store, and customize safety related activities
for every team.
At the local level, Safety Steering Committees
drive the day-in, day-out work of keeping safety
a top priority. One of the most important roles
for the Committees is fostering a strong sense of
accountability between co-workers, including both
employees and managers. The Committees also:
•
•
•
Establish and communicate safety objectives.
Report to Ryder management on safety
performance monthly.
Recognize good safety performance.
CSA Program
During 2011, we established a communications,
tracking, and reporting system to ensure
effective participation in the Compliance, Safety,
Accountability (CSA) program of the Federal
Motor Carrier Safety Administration (FMCSA).
The CSA program, rolled out in December
of 2010, establishes a new enforcement and
compliance model for FMCSA. This model
includes gathering safety and compliance
data from transportation providers, evaluating
it, and using the resulting intelligence to
make “interventions” in how transportation
Ryder System, Inc. Corporate Sustainability Report
People
companies, enforcement agencies, and other
parties behave and interact.
We are fully engaged with the CSA program,
which touches all aspects of our business –
from driving operations in our dedicated
contract carriage business and our Global
Supply Chain Solutions (SCS) segment to the
maintenance services performed by our Global
Fleet Management Solutions (FMS) segment.
Our FMS maintenance services assist our
customers in maintaining the highest CSA
vehicle maintenance scores, a key component
of the programs scoring methodology. Because
2011 was the first full year for CSA, and a number
of issues remain unresolved regarding how
scores are assembled and published, we expect
to begin reporting on CSA more fully within our
next Sustainability Report.
Policies and Practices
As our society changes, technology evolves,
and our roads become more heavily traveled by
a growing population, Ryder continues to update
and refine the company’s safety policy and
practices. In 2011, for example, we completed
a multi-faceted analysis of the potential safety
hazards of operating a cell phone while driving.
As a result of the study, we established a new
policy that prohibits cell phone use for company
drivers while they are operating a vehicle.
Other safety policies and programs that remain
in effect include the following:
• “Captain of the Ship” policy, which empowers
every employee to be accountable for their
safety, such as when road conditions may
not be safe for a driver to complete a run
or working conditions may not be safe for
a technician to perform a task. See more
on this policy on page 61.
• Drug and Alcohol Policy, which prohibits
the use of drugs and alcohol by all of our
employees, as well as contract workers and
supplier personnel, who are on our premises
or performing any work for Ryder.
• Fatigue Management Program, which
educates drivers about the dangers of
operating a vehicle while the driver’s
alertness and performance is sufficiently
impaired by fatigue. This program consists
of training, risk evaluation of work
schedules, resources and proposed
routes, communication processes,
and safety reviews.
Ryder System, Inc. Corporate Sustainability Report
Safety Strategies
Training
Safety training is a fact of life at Ryder. Our
drivers, maintenance workers, and warehouse
employees complete multiple trainings each
year, including more than 127,000 web-based
safety trainings in 2011. As with other forms
of training at Ryder, we emphasize online and
local training that minimizes travel costs and
environmental impacts.
Technology
In 2011, we continued to expand our use of
innovative safety technologies. As in the past, we
focused on technologies (and combinations of
technologies) that have demonstrated their value
in increasing safety while streamlining related
processes such as management supervision
and remedial training. For example, many of our
vehicles are equipped with telematics technology
that gathers and transmits information on driving
behaviors that are important to safety, such
as rates of acceleration, lane changing, speed
cornering, and hard braking. Ryder managers
also access telematics data, so they can give
positive reinforcement and conduct the right
coaching and training when it’s needed.
One of our more innovative applications of safety
technology in 2011 was adding video-capture
capability on some of our vehicles to record
what is happening around the vehicle and in the
driver’s compartment. This information can be
combined with telematics data to reconstruct
what happened when a driver conducted an
unsafe or potentially unsafe maneuver. We
began a 30-vehicle pilot test in 2011 with a
customer that uses our dedicated contract
carriage service to gauge both safety and fuelefficiency benefits of combining vehicle behavior
data with video of driver behavior. This is a true
pilot test, because the customer is one of the
largest companies in one of the world’s largest
industries. If it is effective, the solution could be
applied in thousands of vehicles to improve their
safety and performance.
60
People
Captain of the Ship
Recognition for Employees
One of the best tests of a safety program is how
effectively individuals are empowered to execute
it when they spot an unsafe condition. At Ryder,
our empowerment policy is called “Captain of
the Ship.” If a driver judges that road conditions
are not safe enough to make or complete a run,
being “Captain of the Ship” gives that driver the
power to say so without penalty. The same goes
for our technicians, who are trained to recognize
unsafe working conditions if they should arise.
Our policy is to trust the judgment of our people,
instead of risking their safety or their loyalty.
Ryder’s safety awards and incentive
programs are designed to encourage handson involvement, teach the right behaviors,
and reinforce our safety culture. The annual
Chairman’s Safety Awards program, now in
its 13th year, recognizes employees across all
business segments that achieve the highest
overall rankings based on safety metrics,
such as lost workdays and injury and collision
frequency. Other recognition programs provide
incentives, including those for drivers who
reach driving milestones without a preventable
collision. In 2011, 314 drivers qualified for
Mileage Club Awards and 406 drivers won
Driver of the Month awards.
Sleep Apnea
In 2011, we instituted a new safety program for
sleep apnea, a disorder characterized by pauses
in breathing during sleep. An apnea sufferer
literally stops breathing for numerous short
periods of time while sleeping. Drivers with
sleep apnea rarely get a good night’s sleep, are
often fatigued at work, and do not experience
restorative sleep when they pull off the road to
rest. This makes sleep apnea a major concern
in the transportation industry.
While anyone can be affected by sleep apnea,
it is most often found in larger people who are
relatively sedentary compared to the general
population due to their work or lifestyle. In fact,
a study by the FMCSA concluded that 28% of
commercial drivers suffer from this condition
and almost 92% of people afflicted with sleep
apnea are male. Two government advisory
panels subsequently recommended that truck
drivers should be screened for sleep apnea if
they have a body mass index of 35 or higher –
equivalent to a someone six feet tall weighing
258 pounds.
We responded to this data by implementing a
sleep apnea program within our SCS segment
in the U.S. to identify drivers with severe sleep
apnea. Accordingly, we are funding all costs
associated for those drivers identified as high
risk for sleep apnea during their recurrent
Department of Transportation physical
examination. This includes all costs for the sleep
study evaluation, as well as costs associated
with any required treatment. We believe the
cost of this program is outweighed by the many
benefits of keeping our seasoned drivers safe
and healthy and preventing fatigue-related
collisions on the road.
61
2011 Mileage Club Award Winners
Miles Driven
Without a
Preventable Collision
Number of Award
Winners
250,000
129
500,000
119
1 million
55
2 million
8
3 million
3
We reward our technicians and other service
employees through the Ryder Performance
Challenge (RPC) program. The program
rewards employees who meet quantitative
targets focused on safety, customer
satisfaction, productivity, and quality execution.
We annually recognize employees throughout
the organization for their commitment to
Ryder’s safety efforts, quality service to our
customers, and individual contributions that
make us successful.
Ryder System, Inc. Corporate Sustainability Report
People
Drivers of
the Year
James “Jimmy” Hendrix
Driver of the Year, DCC
AT&T,
Team 13
James Estepp
Driver of the Year, SCS
GM Customer Care and After Sales,
Team 15
“I get my motivation from the people “I consider the customers that I
around me. They’re all professionals. deliver to as my customers. Make
They’ve been at it a long time. I want them happy. Make them feel you’re
doing it the way they want it done.
to be an example to others, just as
Just treat them as your customer,
they have been an example to me.”
instead of Ryder’s customer.”
Jimmy drives for Ryder's AT&T account based
out of Suwanee, Georgia. He has been with
Ryder for 16 years, and during his 42-year
professional driving career he has driven
over 2 million miles without a preventable
collision, violation, or injury.
Ryder System, Inc. Corporate Sustainability Report
James drives for Ryder’s General Motors Service
Parts Operation account based in Roanoke, Texas.
In addition to remaining injury free, he has driven
2.5 million preventable collision and violationfree miles during his 22 years with Ryder and
a total of 3 million preventable collision and
violation-free miles over the course of his
impressive 36-year professional driving career.
62
People
Safety Performance
Because the majority of our operations take
place in the U.S., our primary safety metrics
include those defined by the U.S. Occupational
Health and Safety Administration (OSHA) for
employee injuries and by the U.S. Department
of Transportation (DOT) for vehicle collisions.
These are also two of the most transparent,
comparable metrics in the transportation
and logistics industry, because all companies
regulated by the agencies mentioned above
are required to report on the respective metrics
according to their definitions.
We kept employee injuries low again in 2011,
at 3.18 recordable incidents per 200,000 hours
worked. Within the overall results, both SCS
and FMS reduced OSHA recordable injuries
compared to 2010 (see chart to the left). This
success is due to the relevant strategies and
programs described in this chapter, and it affects
the great majority of our workers. The injury rate
for our SCS is higher than for FMS because it
includes warehouse workers subject to a much
wider range of potential recordable incidents –
even when those incidents do not result in any
material loss of worker time.
Employee Injuries
Vehicle Collisions
U.S., OSHA recordable incidents per 200,000 hours
U.S. & Canada, DOT recordable collision rate per million miles
Global Fleet Management Solutions
Global Supply Chain Solutions
Global Supply Chain Solutions
0.34
4.90
4.77
0.29
4.49
1.86
2009
1.77
2010
1.66
2011
2009
2010
0.29
2011
Our DOT recordable collision rate remained
at the same low level as in 2010, and was once
again among the best in our industry particularly
among providers of dedicated contract carriage.
This success is due to the relevant strategies
and programs described in this chapter. When a
collision does occur, we investigate root causes
to identify ways to prevent recurrence, and then
adjust our safety training and management
practices as necessary.
CSA Results
As noted earlier, the Compliance, Safety,
Accountability (CSA) program of the FMCSA
covers all operations in which we provide both
drivers and trucks for our customers. Ryder
fully engaged with the CSA program in 2011,
its first full year of implementation. CSA metrics,
including “BASIC scores” and an average of
those scores, show that our dedicated contract
63
Ryder System, Inc. Corporate Sustainability Report
Designated safety areas
help prevent injuries
People
carriage business segment operates more
safely than leading companies that focus
on dedicated contract carriage as their core
business. Nevertheless, we are not publishing
our 2011 CSA results because 2011 was the first
full year of the program and a number of issues
remain regarding how scores are assembled
and published. Instead, we are analyzing our
2011 results for opportunities to improve our
performance even further. We expect to begin
reporting on CSA more fully within our next
Sustainability Report, including disclosures of
our results found on the FMSCA website where
you can view our scores. http://csa.fmcsa.dot.gov/
default.aspx
Diversity and Inclusion
At Ryder, we embrace diversity and inclusion
because in a very real sense, it keeps us
competitive. As the world becomes more mobile
and connected, demographics are changing,
and customers and prospects are becoming
more diverse. It’s essential to have a workforce
made up of individuals who contribute a variety
of approaches and perspectives, to help capture
market opportunities. In particular, we believe
diversity and inclusion supports us in four key
areas of our business: strategic alignment,
talent management, customer retention and
growth, and operational efficiencies and costeffectiveness (see graphic).
Ryder’s Diversity and Inclusion Business Case
Supports Ryder’s mission, goals,
and strategic objectives
Strategic Alignment
Helps ensure Ryder responds to changes
in workforce and market conditions
Enhances Ryder’s ability to attract, hire,
and retain the best talent
Talent Management
Allows Ryder employees to develop and contribute
to their fullest potential
Customer Retention
& Growth
Operational
Efficiencies & Cost
Effectiveness
Results in more innovative solutions
for our customers/prospects giving us
a competitive advantage
Results in quality customer service and a more
positive customer experience
Leads to continuous improvement, increased
productivity, and more creative and efficient
business processes
Reduces costs through decreased voluntary turnover
and lower recruitment costs
Our commitment to diversity and inclusion
starts at the top of the company, where CEO and
Chairman of the Board Greg Swienton chairs our
Diversity & Inclusion (D&I) Council. The Council
includes 11 cross-functional business leaders
from Ryder, and its mission is to guide the
company in achieving three D&I goals:
•
•
•
Increasing diversity representation
by becoming an attractive employer
for diverse talent.
Developing the diverse talent we already
have in the organization to drive
corporate strategy.
Driving innovation and growth through
diversity of thought.
Ryder System, Inc. Corporate Sustainability Report
64
People
Recruiting
Ryder grew its net employee base globally by
1,600 people in 2011, utilizing a broad range of
recruiting venues and processes such as online
outreach, attending career fairs, and engaging
with institutions of higher learning (see sidebar
about Howard University on the following page).
One of the highlights of our recruiting success in
2011 was hiring more than 600 military veterans.
Ryder’s military recruiting program recognizes
the service that veterans have provided and also
the training and education they have already
received. Military recruiting also supports our
strategic goal of becoming a more attractive
employer for diverse talent, as described on
the previous page.
In 2011, Ryder joined the U.S. Chamber of
Commerce Veterans Employment Advisory
Council (VEAC), which helps improve career
opportunities for veterans through publicprivate cooperation. As a member of VEAC,
and knowing that military members and their
families offer a very diverse and talented pool of
candidates, we made a commitment to attend
more than 30 military career fairs in the U.S. in
2012 and pledged to hire a total of 1,000 veterans
by 2013 as part of the Chamber’s “Hiring Our
Heroes” program. In addition to recruiting more
veterans and training our hiring managers on
how to engage and assess veterans’ experiences
and capabilities, we are providing support to
veterans themselves in the form of information
on job seeking and successful transition into
the civilian workforce.
Health and Wellness
Competitive Compensation
and Benefits
In addition to paying competitive wages and
salaries to our employees, we also provide a full
package of benefits along with a professional
staff and vendors dedicated to administering
those benefits, and a commitment to stay
abreast of health and wellness issues.
Our current benefits programs are listed
on our website: http://www.ryder.com/
careers_workhere_benefits.shtml. In general,
we offer:
• Life, medical, prescription, vision, and dental insurance coverage
• Flexible spending accounts (health care
and dependent care)
• 401(k) savings plan with company match
• Employee stock purchase plan
• Time off (vacation, illness, family leave,
bereavement)
• Tuition reimbursement program
• Employee assistance program
• Domestic partner benefits (same
or opposite sex)
• Adoption assistance
• Employee discount programs
• Scholarship programs (for children
of employees)
• Wellness and more
Ryder has pledged to hire
1,000 military veterans
by 2013
65
Ryder System, Inc. Corporate Sustainability Report
People
Howard
University &
Ryder Share
Excellence in
Supply Chain
Management
Moore has been quick to bring in other
Ryder subject matter experts. When Amer
Hamdan, Director of Supply Chain Excellence
for Ryder, presented an overview of warehouse
management systems and distribution center
operations, students also got to meet Stacy
Moses, Director of Operations for Ryder’s
FMS segment.
Howard is bringing plenty of opportunity
to Ryder as well, particularly for recruiting.
CESCM serves both undergraduate and Masters
students at Howard, which has one of the most
diverse student bodies in the U.S. It is closely
tied to the Institute for Supply Management
(ISM) – the largest and one of the most respected
supply management associations in the world.
Supply chain management teams from Howard
have recently won distinction in national
business case competitions, and The Princeton
Review‘s 2011 edition of The Best 300 Business
Schools ranked Howard’s MBA program number
one in the category “Greatest Opportunity
for Minority Students.”
Supply chain management has become as interesting
to academia as it is to corporate CEOs. Universities
worldwide are building their competencies, often
reaching out to corporate leaders in supply chain
services to make sure students get plenty of real-world
perspectives along with their classroom work. Now one
of the best institutions in the U.S., Howard University,
has reached out to Ryder.
Howard, located in Washington DC, was founded
in 1867 and is a globally recognized HBCU
(Historically Black College or University). It’s
also one of the country’s leading institutions
specializing in supply chain management,
with a highly regarded Center for Excellence
in Supply Chain Management (CESCM) within
the School of Business. CESCM has built a
high-powered Advisory Board to ensure that
its students have access to the best corporate
thinking and experience with supply chain
issues. The Advisory Board includes Jim Moore,
Vice President of Operational Excellence for
our Supply Chain Solutions segment. Other
companies represented include Carrier-UTC,
Dell, FMC Technologies, Eaton, IBM, Grainger,
Terex, Tyco, and Unilever.
Ryder System, Inc. Corporate Sustainability Report
Stacy Moses, Ryder FMS Director of Operations, and
Grayson Mitchell, Supply Chain Management student,
Howard University's School of Business
Aliah Kennon and Charles Solomon, Supply Chain
Management students, Howard University's School
of Business
66
People
Learning and Development
Employee Performance Management
In 2010, Ryder set out to transform how the
company develops and evaluates leaders.
The motivation for this transformation was
a recognition that Ryder is in position to grow
substantially given current trends driving
outsourcing, and we seek the best talent in the
industry to support that growth. We want to
maximize this opportunity with more innovative
solutions and without backing away from our
commitment to the highest standards of ethical
behavior. Achieving superior results requires
leadership at all levels of the company.
Our first step in the transformation was to
establish a talent management organization with
a broad mandate to make talent management a
vital, strategic business function in its own right.
In 2011, we addressed this mandate in a way that
is highly characteristic of Ryder: we started with
governance, to make sure we get the right results,
the right way.
We succeeded in developing a talent
management governance model for setting
direction, making decisions, defining standards,
and setting priorities. Another major success
was creating a leadership competency model
that specifies the qualities that Ryder seeks in
its leaders. The four cornerstone qualities are
character, judgment, relationships, and results.
Based on this model, we created focused
leadership development programs. With the
model and development programs established
we were able to start changing how we evaluate
leadership performance.
Learning Management System
We implemented a new learning management
system in 2011 that streamlined the ways
we deliver and manage corporate training
programs. With the new system:
•
•
•
Employees can access a full curriculum
of training modules.
Managers can assign training content to
employees, track completion of the content,
and easily view employee training results
using reports and dashboards.
Business units can post and assign content.
Women’s Leadership Forum
One of our learning and development
successes of 2011 was our first Women’s
Leadership Forum, which brought together
70 women in top positions at Ryder. The theme
of the Forum was “Learn, Connect, Execute,
Advance.” Attendees heard talks by Ryder
senior executives (both men and women) and
outside speakers on a variety of topics related
to leadership for women. We plan to repeat the
Forum in the future. In the near term, task forces
are already at work on strategies and action
plans to address key issues that came to the
forefront during the Forum.
At that point, we took another step that is
characteristic of Ryder: We assembled a crossfunctional group from all divisions across the
U.S. and Canada. Its mission was to redesign the
performance management process for all Ryder
salaried employees. The group recommended a
new Employee Performance Management (EPM)
process that is aligned with Ryder’s strategies
and goals. EPM will include an automated
system that tracks common EPM elements (such
as goals and metrics) across Ryder divisions.
67
Ryder System, Inc. Corporate Sustainability Report
People
Ryder employee
shift meeting,
Harman warehouse,
Union City, Georgia
Employee Engagement
We communicate clearly and frequently
with our employees globally to engage them
and make them aware of developments within
our company and our industry. We value the
feedback and input of our employees as an
important contribution to our commitment
to engagement and innovation. We regularly
communicate with our employees online, in
print, with audio CDs, broadcast media, and
in face-to-face interaction with Ryder’s
leadership through localized visits and town
hall-style meetings. Our social media channels
include a Facebook page, Twitter feed, and
YouTube channel.
We encourage our employees to ask questions,
share feedback, and make suggestions
through a number of interactive feedback
programs. We also provide anonymous toll-free
hotlines and email systems for employees to
make confidential reports, or to seek guidance
about legal, ethical, or compliance issues (see
page 32).
Ryder System, Inc. Corporate Sustainability Report
68
Community
Ryder is a national partner
of the American Red Cross
Community
Ryder has conducted charitable giving
for many decades, and our people have
been volunteering for organizations,
events, and causes that Ryder
supports for just as long. In recent
years, we have refined our approach
by designating a primary companywide charitable partnership focused
on disaster recovery, and by giving
our local management and employees
a voice in determining which causes
to support in communities where Ryder
has large concentrations of employees.
In 2011, we continued these focus areas while
also working to further align our charitable
giving with Ryder’s overall mission, core values
and guiding principles. With important decisions
ahead of us, we focused on sustaining our level
of support for our communities and increasing
strategic alignments in areas with immediate
impact. For example, we increased support
for veteran and military-related organizations,
including those that provide access to financial
resources and that help military veterans find
jobs (Ryder hired more than 600 veterans in
2011). We also funded a variety of programs
and organizations that support diversity and
inclusion and which are well aligned with
Ryder’s efforts to increase workforce and
management diversity.
71
Ryder employees volunteer
at The Drake House,
Roswell, Georgia
Ryder's partnership with
the United Way goes back
nearly four decades
Ryder System, Inc. Corporate Sustainability Report
Community
Charitable Giving
Charitable Giving
Enterprise, U.S. and Canada (US$ millions)
We make contributions to non-profit
organizations primarily through the Ryder
Charitable Foundation. Funded entirely by
operating profits of Ryder System, Inc., the
Foundation focuses national grant-making on
disaster recovery, through a strong national
partnership with the American Red Cross.
Local grant-making supports a range of
initiatives in local communities where significant
numbers of our employees live and work. In
addition to making cash grants, the Foundation
supports and coordinates volunteer work by
Ryder employees.
In addition to supporting causes near Ryder’s
headquarters in South Florida, local grantmaking is conducted by our Public Affairs
Councils representing major employee facilities
in the metropolitan areas of Atlanta, Georgia;
Detroit, Michigan; and Dallas/Fort Worth, Texas.
The mission of these three Councils is to identify
ways for local employees to give back to their
communities and make recommendations for
charitable funding from the Ryder Charitable
Foundation that is meaningful and relevant to
the employees whom the Councils represent.
The Foundation retains oversight of local grantmaking activities to ensure its good governance
and consistency with Ryder’s principles and
values as a company.
Ryder System, Inc. Corporate Sustainability Report
1.50
1.57
1.34
2009
2010
2011
Figures above do not include the dollar value of in-kind
contributions, employee funded donations, employee
volunteer hours, employee hours and expenses related
to service on non-profit boards of directors, donated
consulting expertise, donations made by Ryder operations
outside the U.S., or the value of discounted services
provided to non-profits.
In addition to grants made by Ryder and the
Ryder Charitable Foundation, giving back
includes donations by employees and their
families to United Way charities and in-kind
donations of transportation services for nonprofit organizations that we support. Community
support through all three of these categories
increased in 2011 compared to 2010 despite
the lingering effects of a recession followed
by a slow and uneven economic recovery.
Increased donations demonstrate our
commitment to giving back in the communities
where we live and work, and our pledge
to expand the absolute dollar level of our
charitable giving, as appropriate, based
on the financial health and profitable growth
priorities of the business. The chart above
shows the evolution of charitable giving over
the past three years. The table on the following
page lists highlights of our charitable giving
program for 2011.
72
Community
Charitable Giving Highlights
National partnership program with the
American Red Cross
Highest-ever annual financial contribution
to United Way campaign
Major sponsorship of “Moving Things”
exhibit at Miami Science Museum
Completion of long-term capital commitment
to University of Miami
Approximately US$34,000 in grants made
by Ryder Public Affairs Councils in Georgia,
Michigan and Texas
Approximately US$41,000 in grants made
to promote diversity and inclusion
US$125,000 in grants made to veteran
and military-related organizations
“Ryder Cares” employee awareness
campaign about charitable giving
Our largest charitable giving recipients
in 2011 were:
•
•
•
•
•
ready to respond rapidly and effectively in the
event of natural or man-made disasters. In this
Report, we are proud to include a Stakeholder
Perspective from a representative of the
American Red Cross (see page 74).
In addition to a three-year pledge of US$1 million
as part of our program membership, we also:
•
•
•
•
•
•
•
provide in-kind donations of trucks;
sponsor local Red Cross community
awareness events;
support local disaster relief efforts
with volunteers;
encourage our employees to make their
own donations, and match the donations
from employee fund-raisers;
offer preferred pricing for rental vehicles
to all Red Cross chapters in the U.S.;
offer access to discounted used vehicles
through Ryder’s Used Vehicle Sales
division; and
provide free training to help the American
Red Cross improve its operational
response capabilities.
United Way
Ryder has supported the United Way of MiamiDade for nearly four decades. During annual
fundraising campaigns held at our headquarters
in Miami, employees donate to United Way, and
Ryder then matches or exceeds the employee
donations with a grant from the Ryder Charitable
Foundation. In 2011, our employees pledged
more than US$236,000, an increase of nearly
10% compared to 2010. The Foundation also
increased its match by nearly 10%, pledging
US$275,000 compared to US$250,000 in 2010.
The total figure, topping US$511,000, was a new
high for our United Way campaign support.
American Red Cross, as part of a three-year
commitment of US$1 million.
United Way, as part of an annual campaign
drive that has resulted in US$2.1 million in
employee and Ryder-matched contributions
to the organization over the past five years.
University of Miami, as part of a ten-year
commitment of nearly US$2 million.
St. Thomas University, as part of a five-year
Volunteer Work
commitment of US$0.3 million.
Miami Science Museum, as part of a five-year The Ryder Charitable Foundation coordinates
commitment of US$0.3 million.
volunteer activities related to organizations
the Foundation supports. In 2011, for example,
American Red Cross
Ryder employees supported disaster response
activities of the American Red Cross following
Ryder is one of 34 members of the “Annual
weather-related natural disasters in the Southern
Disaster Giving Program” of the American Red
United States. The Foundation also conducts its
Cross. We selected American Red Cross as our
“Ryder Cares” program to educate employees
primary national philanthropic partner after
about its charitable giving, to encourage their
careful consideration of many alternatives.
We have profound respect for the organization’s participation in the United Way and other
fund-raising efforts, and to recognize employee
unique heritage, and we also share with it an
volunteers. One of Ryder’s 2011 Drivers of the
understanding of the value of logistics and
Year, for example, James Estepp, was selected
transportation. In the case of the American Red
for the honor in part due to his volunteer work
Cross, transportation and logistics are vital
(see “People” page 62).
because of the organization’s mission: being
73
Ryder System, Inc. Corporate Sustainability Report
Community
The American Red Cross is the only charitable organization chartered
by the United States Congress with the responsibility to provide disaster
relief in the U.S., and we also take part in disaster relief overseas in
support of Red Cross societies in other countries. The Red Cross is not
a government entity, and relies on the support of donors to fulfill its
humanitarian mission.
This makes corporate partners essential to us. When disasters strike,
the American public is generous with its support, but we can’t wait to
act. We are required to get there before the funds come in and take the
lead in critical areas, such as shelter. That means we must be ready
now for whatever might happen tomorrow, whether they are tornadoes,
hurricanes, floods, earthquakes, wildfires – we have them all.
With multi-year financial pledges from corporate sponsors like Ryder,
we can plan and prepare. When a disaster strikes, we can go into action
immediately. In 2011, we opened more than 1,000 shelters, served 6.7
million meals, provided 2.7 million relief items to people who had to
leave their homes and supported nearly 28,000 disaster workers with
meals and transportation.
Stakeholder Perspective:
Peter Giamalva
American Red Cross National
Headquarters, Division
Vice President, Development
“Ryder doesn’t
just tell people
to volunteer.
It encourages
employees to
find out about
becoming a
volunteer, which
enables people
to find their
own motivation.”
But providing disaster services at home and abroad is only part of our
mission. The Red Cross also supplies more than 40 percent of the nation’s
blood; teaches CPR, First Aid and other skills that save lives; and supports
military members and their families.
Financial support is important, but so is donating blood or giving time.
The Red Cross depends on volunteers, and we urge our corporate
sponsors to help us get people interested in volunteering. It takes
persistence, time and effort.
Ryder understands this, because the company doesn’t just tell
people to volunteer. It encourages employees to find out about
becoming a volunteer, which enables people to find their own motivation.
Ultimately, that internal motivation is what makes a person a good
volunteer and keeps them at it over time.
One of our most important messages is that volunteering for the
American Red Cross helps you first. You learn how to prepare for
emergencies in your home, your family, your place of worship or your
business. It may seem like a small thing, but it can save a life right
in your own neighborhood. And there are also opportunities to work
beyond your community at a regional or national level when a major
disaster takes place.
The Red Cross is very grateful to Ryder and its employees for your
strong support.
Ryder System, Inc. Corporate Sustainability Report
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