1. business and industrial

Ryder System, Inc.
Corporate
Sustainability
Report
Published December 2011
Ryder System, Inc. Corporate Sustainability Report
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A Message from Our Chairman and Chief Executive Officer
Progress at a Glance
Corporate Overview
Business Segment Descriptions
Strategy and Analysis
Financial Highlights
About This Report
Environment
Safety & Security
People & Community
Governance
Ethics & Compliance
A Message from Greg Swienton,
Chairman and Chief Executive Officer
Dear friends,
Our Corporate Responsibility Report, first issued in 2008, covered Ryder’s history
and dedication to corporate responsibility.We are pleased to follow up with this Corporate
Sustainability Report covering our 2009 and 2010 performance.
As you will see, we have made exceptional progress across many areas of our business.
Ryder was recently named an Inbound Logistics Magazine Green Supply Chain Partner for
the third consecutive year and included as a top company in the Newsweek Green
Rankings for the second consecutive year.We have continued to research, test, and introduce
new vehicle technologies that provide our customers with energy-efficient, low-emission
solutions. We collaborated with equipment manufacturers, government agencies, and
customers to launch a first-of-its-kind natural gas project for commercial heavy duty
trucks in Southern California.We continue to invest in innovative technologies to ensure
driver safety.Through the Ryder Charitable Foundation, we enhanced our national giving
strategy by partnering with the American Red Cross as a member of its Annual Disaster
Giving Program. Our employees also continue to give their personal time as volunteers
in their communities. These are just a few examples of our commitment to corporate
responsibility and sustainability.
Looking forward, our sustainability strategy includes continuing our progress and
driving innovation in the following areas:
4 optimizing the transportation and supply chain networks of our customers by using
the most efficient modes and latest technologies;
4 reducing emissions from our vehicles and water consumption at our facilities;
4 continuing to evaluate and improve our industry-leading safety and security
processes and training throughout our organization;
Ryder signed its first lease
customer in 1938
Ryder was founded by
Jim Ryder in 1933
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4 increasing employee volunteer engagement with charitable organizations; and
4 tracking and measuring progress in diversity hiring, and employee training and
development.
At Ryder, we believe that maintaining high standards for governance and ethics,
operating with integrity in our business practices, and enhancing employee engagement
will lead to exceptional performance.We go beyond what is required to ensure that we
work toward the greatest good for our key stakeholders: customers, employees, suppliers,
and investors. Our actions and investments continue to demonstrate our commitment
to achieving results the right way, while also serving as involved members of the
communities where we live and work.
As a leading provider of transportation and logistics solutions, our stakeholders
expect us to be stewards of real-world efficiency and sustainability. We take this
expectation seriously in all that we do and we will continue to deliver on our promises
with character and accountability.
Our Ryder team welcomes your feedback on our
performance, and we invite you to follow us on Facebook,
Twitter and YouTube. Thank you for reading this report,
and for your interest in Ryder.
Greg Swienton
Chairman and Chief Executive Officer
Ryder System, Inc.
In 1945, Ryder signed its first
Dedicated Contract Carriage account
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Progress at a Glance
Focus Area
Environment
Accomplishments
Looking Forward
Improved Carbon Disclosure Project score each
reporting year and expanded disclosures to include
Scope 1, 2, and 3 emissions.
Significantly expanded carrier participation in the
U.S. EPA SmartWay® Transport Program.
Signed agreement to implement first-of-its-kind
natural gas project for commercial heavy duty truck
lease and rental fleets in Southern California.
Expanded natural gas vehicle capability to Arizona
and Michigan in 2011.
Reduced energy and water consumption in U.S.
and Canada operations.
Safety & Security
Ranked as a top U.S. company for security practices
in the Transportation, Logistics, Supply Chain, and
Warehousing industry sector in the 2009 and 2010
Security Benchmarking Survey, published in Security
Magazine.
Completed C-TPAT border security certification
for Ryder Supply Chain Solutions Asia.
Conducted over 192,000 online safety training lessons.
Launched a Sleep Apnea Wellness program to reduce
the effects of fatigue among Ryder drivers with this
condition.
Continued to leverage cutting-edge onboard vehicle
technologies to reduce collisions and improve safe
driving behavior.
People &
Community
Selected the American Red Cross as Ryder’s national
charitable partner and became a member of the
Annual Disaster Giving Program.
Redesigned leadership competency model to be the
basis for decision making related to hiring, performance
assessments and professional development.
Launched a Diversity & Inclusion Council, Mentoring
Program, and Diversity Scorecard linking executive
pay to diversity goals.
Governance,
Ethics &
Compliance
Recognized by GovernanceMetrics International
(GMI) in 2010 as one of The 20 Most Responsible
Companies. Received GMI’s highest overall rating, a
perfect 10, for corporate governance and corporate
behavior.
Created the role of a strong lead independent director
to facilitate and strengthen Ryder’s Board of Directors’
independent oversight of the company and to uphold
effective governance standards.
Appointed a Chief Privacy Officer to oversee and
manage the company’s data privacy and security
processes and procedures.
Conducted more than 12,000 online compliance
training lessons around the world in 2009 and 2010.
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Continue to optimize the transportation and supply
chain networks of our customers by using the most
efficient modes and latest technologies.
Continue to reduce emissions, energy, and water
consumption for Ryder owned and operated facilities
and vehicles.
Continue to identify opportunities to replicate Ryder’s
natural gas project model in other municipalities
across the U.S.
Launch and implement updated Security Management
Fundamentals training for supply chain employees.
Continue to support increased collaboration between
government agencies and the private sector to
improve transportation security.
Implement updated safety processes and training
throughout all maintenance locations servicing
alternative fuel vehicles.
Increase total employee volunteer engagement
with the American Red Cross and other charitable
organizations in the U.S.
Continue to identify critical talent gaps and
implement programs, processes, and technologies to
track and help fill those gaps.
Continue to track and measure progress against
diversity hiring, development, and training goals.
Continue compensation policies strongly focused
on pay-for-performance principles, including annual
"Say-on-Pay" vote by shareholders.
Enhance and expand online compliance training to
improve access for hourly employees.
Evaluate ethics and compliance programs to benchmark
against best practices and to maximize effectiveness.
Corporate Overview
Our Mission:
Ryder is
committed to
being the leading
provider of
outsourced
transportation
and logistics
solutions in our
target markets.
We strive to
provide
exceptional
service to our
customers and
achieve superior
results for our
shareholders
through our
guiding principles
and core values.
Ryder System, Inc. is a FORTUNE® 500 provider of leading-edge
transportation, logistics, and supply chain management solutions. Ryder's
product offerings include: Fleet Management Solutions, which provides
leasing, rental and programmed maintenance of trucks, tractors and trailers
to commercial customers; Supply Chain Solutions, which manages the
movement of materials and related information from the acquisition of raw
materials to the delivery of finished products to end-users; and Dedicated
Contract Carriage, which provides a turn-key transportation service that
includes vehicles, drivers, routing, and scheduling. Ryder serves customer
needs throughout North America, Europe and Asia.
Our Guiding Principles
our commitment to training and
4 Our commitment to enhancing
development, as well as diversity,
long-term value is achieved by
we expect to have the best and
operating the business profitably,
most passionate people in the
responsibly, and ethically.
industry.
4 Our success depends on our
4 Our high ethical standards also
ability to deliver consistent
ensure that we operate the
superior service and solutions
business in a safe and environwhile being innovative and
mentally responsible manner.
responsive to customers’ needs.
4 Our people provide us with the
competitive edge, and through
Ryder pioneered the practice of preventive
fleet maintenance in 1949 by opening
service locations to keep fleets moving
Ryder System, Inc. incorporates as a
public company in 1955 and is listed on
the New York Stock Exchange in 1960
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Global Organizational Profile
Headquarters
Miami, Florida, USA
Total Employees
25,900*
North America
24,600
Europe
1,000
Asia
300
Number of
Operations/Locations
810 fleet management
operating locations in U.S.,
Canada, UK, Germany
Over 28 million square feet
of warehouse space (in
North America and Asia)
leased and operated
Total Vehicles Maintained
182,100
Our Core Values
4 Integrity ensures we achieve the
desired results the right way.
4 Our leadership competencies
center on good character,
judgment, relationships, and
results.
4 Collaboration enables us to
unleash our collective potential.
4 Quality performance and
services ensure we deliver on
our promises, and our customers
can truly “rely on us.”
Corporate Strategies
Fleet Composition
Full Service Lease Vehicles
119,600
Contract Maintenance Vehicles 32,900
Rental Vehicles
40,500
Total Customers
Full Service Lease
12,600
Contract Maintenance
1,400
Commercial Rental
14,000
Supply Chain/Dedicated
Contract Carriage
624
Ticker Symbol
R
Common Stock Exchange
Listings
New York Stock Exchange
Component of
Dow Jones Transportation
Average
Standard & Poor’s 500 Index
* As of December 31, 2010
Becoming one of the first transportation
companies to purchase a UNIVAC computer in
the 1950s, Ryder ushers in the computer age
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4 Be recognized by customers as
the premier provider of outsourced transportation solutions
in our target markets by
performing these functions
more efficiently and cost
effectively than they could
themselves.
4 Accelerate growth through
exceptional operational execution,
introduction of new products/
services, and targeted acquisitions.
4 Develop an enhanced innovation
culture to further capture
long-term, profitable growth
opportunities.
4 Attract, develop, and retain the
most capable talent, allowing
employees to maximize their
potential.
In 1957 Ryder goes international by
expanding truck leasing and rental
operations into Canada
Business Segments
Fleet Management
Solutions (FMS)
FMS 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 UK. Through the
FMS business, Ryder provides customers
with flexible solutions designed to improve
their competitive positions by allowing
them to focus on their core business, lower
their costs, and redirect capital to other parts
of their business. Our solutions also enable
customers to improve the uptime and reliability
of their fleets, thereby minimizing fleetrelated business disruptions and risks.
Ryder's FMS product offering is comprised
primarily of contractual-based full service
leasing and contract maintenance services.
The company also offers transactional fleet
solutions including commercial truck rental,
maintenance services, and value-added fleet
support services such as insurance, vehicle
administration, and fuel services. In addition,
we provide our customers with access to a
large selection of used trucks, tractors, and
trailers through our used vehicle sales program.
Supply Chain Solutions (SCS)
Ryder’s SCS business offers a broad
range of innovative lead logistics management
services that are designed to optimize a
customer's global supply chain by directing
the movement of materials, funds, and
information from the acquisition of raw
materials to the delivery of the finished
product to the end-user. The SCS product
offering is organized into three categories:
professional services (strategy, design, and
engineering), distribution operations
(warehousing), and transportation solutions.
Ryder’s solutions help companies
dramatically improve service and speed to
market. Our deep expertise in key industry
verticals paired with unprecedented
operational excellence help our customers
meet their unique challenges and realize
measurable ROI.
Ryder is recognized as a leader in
transportation by Business Week in 1959
Dedicated Contract
Carriage (DCC)
Ryder’s DCC solution combines the
equipment, maintenance, and administrative
services of a full service lease with drivers
and additional services to provide a
customer with a dedicated transportation
solution that is designed to increase their
competitive position, improve risk
management, and integrate their
transportation needs with their overall
supply chain. Such additional services
include routing and scheduling, fleet sizing,
safety, regulatory compliance, risk
management, technology, and
communication systems support. Ryder's
DCC solution offers a high degree of
specialization to meet the needs of
customers with high service requirements
such as tight delivery windows, high-value
or time-sensitive freight, closed-loop
distribution, and multi-stop shipments.
Ryder expands operations
to the United Kingdom in 1971
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Strategy and Analysis
Ryder’s Business Model
Transformation
During the past decade, Ryder has made
substantial changes to our business model
that have helped position the company for
long-term, sustainable, profitable growth.
Our contractual based business has increased
from 43% of revenue in the early 1990s to
90% currently, reducing our sensitivity to
shorter-term, cyclical business trends.
Foundational process changes, such as
centralized asset management, improved
contract terms and enforcement, vehicle
procurement/disposition processes, and
appropriate metrics and incentives have
provided significant savings to our cost
structure. Enhanced and focused sales and
marketing capabilities enable us to better
leverage long-term outsourcing trends.
Our strong financial foundation and access
to capital provide us with the ability to
support organic growth, acquisitions, and
strategic investments. The strength of the
new business model also enables Ryder to
deliver increased and positive free cash flow
over an economic cycle.
Sustainable Implications
We believe that our business objectives
and sustainability goals are not mutually
exclusive. Companies select Ryder so that
they can benefit from best practices that
improve the efficiency and cost effectiveness
of their operations. Many of these practices
also present opportunities to make a positive
impact on a business’ carbon footprint.
The solutions we implement for customers
are part of an overall strategy to improve
transportation efficiencies. Examples of
these solutions include preventive vehicle
maintenance, technologies to optimize routes
and reduce idling, and driver training
techniques to reduce fuel consumption, as
well as alternative fuel options and logistics
engineering strategies that optimize distribution networks to reduce miles. These
activities and solutions all have associated
environmental and economic benefits.
Marketplace Opportunities
The transportation and logistics markets
present significant growth opportunities,
and Ryder is increasingly well positioned to
benefit from major trends currently driving
and shaping the future of our industry.
These include: increasing complexity of
vehicle technology and maintenance
requirements; new regulatory and emissions
standards; tighter capital availability; the
continuous need of manufacturers to optimize
global sourcing and supply chain networks;
and increased demand for timely, technologydriven information tools related to businesses’
transportation functions. In addition, as a result
of the most recent economic downturn,
many companies delayed fleet replacement
decisions, resulting in pent-up marketplace
demand to update a North American fleet
that is currently the oldest in recent history.
These trends create an environment for
Ryder implements North America’s first
large scale Just-In-Time supply delivery
system supporting a new auto plant in
Kentucky in 1989
meaningful growth in our business, as well
as opportunities for employees to grow
their careers and share in the rewards of
Ryder’s success over time.
Now more than ever, our largest
marketplace opportunities for growth also
present us with the greatest opportunity to
positively impact the overall sustainability
of the transportation industry.The addressable
private fleet market in the U.S. and Canada
represents 5 million vehicles.Those businesses
that do not outsource transportation
operations represent 4.2 of those 5 million
vehicles on the road. Many of these private
fleets 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.
These factors create a compelling reason
for more companies to outsource transportation and supply chain management to
an experienced provider. At Ryder, we are
not only well positioned to meet this growing
demand, but we can do so while having a
positive impact on the environment. Due to
the nature of our business, we provide the
highest-quality, cost-effective, outsourced
transportation and logistics solutions and are
able to extend the benefits of our environmental expertise, practices, and infrastructure
to those businesses that might otherwise
not have access to this level of resources.
Security magazine named Ryder’s head
of Corporate Security as one of the
industry's "Most Influential" in 2011
Click Here to Learn More 4
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Strategy and Analysis
Business Strategy
Our Fleet Management Solutions
business strategy is to be the leading leasing
and maintenance service provider for light,
medium, and heavy duty commercial
vehicles. We will accomplish this through
several goals and priorities, including:
4 Improving customer retention levels.
4 Implementing sales growth initiatives
for our contractual product offerings
with a focus on the conversion of private
fleets and commercial rental customers
to full service lease customers.
4 Optimizing asset utilization and
management.
Acquisitions play an important role in
enhancing our growth strategies in the
U.S., Canada, and the UK. From 2008
through 2011, we completed seven FMS
acquisitions through which we acquired
vehicles and contractual customers and
then applied our business processes and
standards across the new operations.
Our Supply Chain Solutions business
strategy is to offer our customers functional
execution and proactive solutions based on
our expertise in this area. This strategy
revolves around several goals and priorities,
including:
4 Further diversifying our customer base
through expansion.
4 Developing services specific to the
needs of the retail and consumer
packaged goods (CPG) industry.
4 Creating a culture of innovation that
fosters new solutions for our customers’
supply chain needs.
4 Training and developing employees to
share best practices and improve talent.
The 2010 acquisition of Holland,
Michigan-based Total Logistic Control
(TLC), an independently run, wholly
owned subsidiary of SUPERVALU,
expanded our Supply Chain Solutions
offering with firmly established, comprehensive
food, beverage, and CPG capabilities.
Our Dedicated Contract Carriage business
strategy focuses on customers who require
specialized equipment, handling, or
integrated services. This strategy includes:
4 Increasing market share with customers
in targeted industries.
4 Leveraging the support and talent of
our FMS sales team to develop joint
sales programs.
4 Aligning the DCC business with other
SCS product lines to create revenue
opportunities and improve operating
efficiencies in both segments.
Toyota recognized Ryder as its
2010 Carrier of the Year
Ryder selected by Inbound Logistics
magazine readers as a Top 3PL in 2011
Click Here to Learn More 4
Click Here to Learn More 4
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Financial Highlights
In millions
Ryder System,Inc.
$
5,599
05
2010
Dollars in millions
2009
2008
$
06
Operating Overview:
Revenue
$ 5,136
$4,887
$ 5,999
Operating revenue (1)
$ 4,158
$4,063
$4,590
Earnings from continuing
operations before income taxes
$
186
$
144
$ 409
Comparable earnings
from continuing operations
before income taxes(1)
$
189
$
157
$ 432
Earnings from cont. operations
$
125
$
90
$
258
Comparable earnings
from continuing operations (1)
$
117
$
95
$
267
07
$
08
$
118
$
62
$ 200
Dollars in millions
6,363
$5,999
$4,887
09
10
Net earnings
6,136
$5,136
Revenue
In millions
$
05
221
229
$
$
244
247
06
$
Financial Data:
$
07
Total assets
$6,652
$6,260
$6,690
Total debt
$ 2,747
$2,498
$ 2,863
Shareholders’ equity
$1,404
$ 1,427
$267
258
08
$
$ 1,345
$
$
95
90
09
Return on average
shareholders’ equity
8.4%
4.4%
11.2%
$
10
Adjusted return on average capital
(1)
Debt to equity
Free cash flow
(1)
$
Capital expenditures paid
4.8%
4.1%
7.3%
196%
175%
213%
258
$ 1,070
$
614
$ 652
$
248
252
$
117
$125
Earnings from continuing operations
341
Dotted bars represent comparable earnings
from continuing operations (1)
$ 1,230
Per Common Share Data:
Per Share
$
05
Earnings from continuing
operations – Diluted
$ 2.37
$
1.62
$
4.51
$
3.94
3.99
06
Comparable earnings from
continuing operations –Diluted (1) $ 2.22
$
1.70
$ 4.68
Net earnings – Diluted
$ 2.25
$ 1. 11
$ 3.50
Book value
$ 27.44
$26. 71
$ 24.17
3.41
3.53
$
$
4.13
4.19
$
07
$
$4.68
4.51
08
$
Cash dividends
$ 1.04
$ 0.96
$ 0.92
$
$
1.70
1.62
09
Other Data:
$
Common shareholders of record
9,192
Common shares outstanding 51,174,757
(2)
9,482
9,713
2.22
2.37
10
$
53,419,721 55,658,059
Number of vehicles managed
182,100
186,800
198,900
Number of employees
25,900
22,900
28,000
Earnings per diluted common share
from continuing operations
Dotted bars represent comparable earnings per share
from continuing operations (1)
1
Represents a non-GAAP financial measure – for details of this measure and a reconciliation to the GAAP measure, please refer to “Overview”, “Financial
Resources and Liquidity” and “Non-GAAP Financial Measures” discussion presented in Management’s Discussion and Analysis of Financial Condition and
Results of Operations contained in this Annual Report.
2
Includes our global fleet of owned and leased vehicles, as well as vehicles under contract maintenance agreements.
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About This Report
his report highlights Ryder’s progress towards
improving the communities and environments
where we do business. Information in this
report is for 2009 and 2010 (except where noted),
primarily for our operations in the U.S. and Canada.
Information and data disclosed in this report is
consistent with the performance indicators provided
by the Global Reporting Initiative versions G3
and G3.1. Information on GRI can be found at
www.globalreporting.org.
We believe that the information presented here is
an accurate and fair representation of our corporate
sustainability programs and results.This report has been
reviewed and approved by Ryder senior management.
Questions and comments about this report can
be sent to communications@Ryder.com.
Logistics Management magazine
recognized Ryder with a 2011
Quest for Quality award
Ryder named 2011 Best Service
Logistics Supplier by Cisco
Click Here to Learn More 4
Click Here to Learn More 4
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Ryder is committed to
implementing industry-leading
environmental practices that
reduce risk, drive operational
efficiency, and deliver value to our customers.We are continually
integrating sustainability indices
into the supplier
selection process to ensure we are
partnering with
responsible parties and will continue to give our customers
access to the most innovative, environmentally sound solutions.
Implemented natural gas project for
commercial heavy duty truck fleets in
Southern California, deploying 202
natural gas vehicles
Click Here to Learn More 4
12
Ryder Europe is specifying LED rear light
clusters on all new trucks, which have a
lifetime rating of 100,000 hours compared
to 800 hours for regular bulbs
Our environmental
strategy is focused on
reducing emissions and
waste, as well as identifying alternative vehicle
technologies and fuels
that can be cost-effectively deployed in our
customers’ operations.
Ryder’s Group Director of Environmental
Services and Sustainability reports through
the company’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 Environmental and
Emergency Coordinators, 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 meets with our Environmental
ENVIRONMENTAL POLICIES
AND MANAGEMENT SYSTEMS
4 Implement procedures that routinely
evaluate and revise objectives based on
identified environmental impacts and
performance.
Ryder EMS establishes the basis for
customer-specific EMS programs that
conform to the ISO standard. Based on
individual customer needs, select 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 UK,
Mexico, and Canada.
“Ryder is dedicated to developing and implementing
effective environmental practices in all of its business
Environmental management plays a key
role in business planning at all levels of Ryder’s
organization.This ensures that environmental
policies are fully integrated into our business
process. In 1991, before “green” became a
business buzzword, Ryder adopted a corporate
Environmental Policy and implemented
specific management programs designed to
create sustainable solutions and value for our
company and our customers. This Policy,
which is updated periodically to reflect
changes in our business, established baseline
standards for all of our businesses worldwide
and serves as the cornerstone of our overall
environmental philosophy of continuous
improvement. To support employees and
managers in meeting environmental goals, an
Environmental Policy and Control Manual
has been developed and distributed to our
operations worldwide. This manual defines
corporate policies and provides step-by-step
guidance for implementing environmental
management practices.
Our commitment to developing
responsible environmental practices is shared
by employees at all levels of the company.
activities, and to continually monitoring these practices
to identify opportunities for improvement.”
From Ryder System, Inc. Environmental Policy 4click here for more information
Services department to discuss environmental
issues and initiatives, including a review of
key operational data impacting the environment, legislative and regulatory initiatives,
energy conservation, and carbon reduction
strategies for Ryder facilities and operations.
Our Environmental Management
System (EMS) incorporates elements of the
global ISO14001 environmental management
standard along with other environmental best
practices that are unique to our operations
and services. Ryder’s EMS is designed to:
4 Identify and control environmental
impacts associated with business activities.
4 Improve environmental performance
continually.
Improved Carbon Disclosure Project
Score from 50 to 83 in 2011 and expanded
scope of disclosures to include all Scope
1, 2, and some Scope 3 emissions
Ryder recycles virtually all automotive waste
streams from our maintenance facilities
Expanded EPA SmartWay® Transportation
partnership efforts by providing customers
with detailed information on total carbon
footprint and CO2 per ton/miles
Click Here to Learn More 4
13
Environmental Auditing and
Due Diligence
To ensure compliance with established
policies and procedures, annual environmental
self-inspections are required at each of our
locations. Inspection results are verified by
the Ryder Environmental Services team
which audits all of our locations to ensure
environmental accountability throughout
our operations. Audits are scored and
corrective action plans are required within
30 days of completing the audits.
As part of our due diligence for property
acquisitions and dispositions, lease renewals
and terminations, and company acquisitions
or sales, we perform more than 600 audits
and approximately 300 environmental
investigations each year. These due diligence
investigations are part of our comprehensive
process for evaluating potential risks.
VEHICLE EMISSIONS AND
FUEL TECHNOLOGY
With best-in-class vehicle technologies,
maintenance, and fueling services, we provide
our customers with the latest fuel and vehicle
emission technologies that ensure maximum
performance, optimum fuel conservation,
and reduced carbon emission outputs.
Onboard technologies like RydeSmart® help
fleets reduce fuel consumption and emissions
U.S. EPA SmartWay® Transport
Partnership
Ryder is committed to tracking and
measuring vehicle emissions through our
participation in the U.S. EPA SmartWay®
Transportation Partnership. SmartWay is
a voluntary public/private partnership
designed to improve vehicle fuel efficiencies
and thereby reduce greenhouse gas emissions.
Ryder is a SmartWay Carrier partner for
Ryder-owned vehicles and a Logistics
Partner for our supply chain operations.
4 SmartWay® carriers accounted for 92% of
all freight miles managed by Ryder in 2010
versus 90% in 2009 and 86% in 2008.
4 SmartWay® carriers accounted for 77%
of all freight tons managed by Ryder in
2010 versus 72% in 2009 – an increase
of 5% year over year.
Vehicle Emissions Reduction
Technology
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 10,000 leased
vehicles and 11,000 rental vehicles, helping
fleet managers achieve a 10 to15% reduction
in fuel consumption through improved
routing and reduction of unauthorized idle
time. Estimated emission reductions
associated with our customers’ use of
RydeSmart is over 12,600 tons of CO2
annually. For more information visit
www.RydeSmart.Ryder.com online.
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.
Fuel Efficiency and Emission
Reduction
In 2010, we committed to offering
Diesel Exhaust Fluid (DEF) at every full
service Ryder location in North America to
support our customers who operate vehicles
that use Selective Catalytic Reduction
(SCR) technology to meet 2010 emission
standards set by the U.S. EPA. DEF is a
non-toxic solution that is required to
maintain proper operation of model year
2010 and later vehicles using SCR to
convert nitrogen oxide in the exhaust to
harmless nitrogen and water vapor. DEF is
now available at all 550 Ryder service
locations in the U.S. In anticipation of
In 2010, Ryder Europe delivered its
first leased 10-ton electric truck to
London-based customer, Bunzl, for use
in the catering and hospitality sector.
This truck has been designed specifically
for stop-start travel and will have a
maximum range of approximately
80 miles. Trials
show that one
charge can
last for up to
three days.
Launched alternative fuels website to
help customers and fleet owners reduce
transportation costs and understand the
advantages of natural gas, hybrid, and
electric vehicle technologies
Recognized as an Inbound
Logistics Green Partner for
three consecutive years
Click Here to Learn More 4
Click Here to Learn More 4
14
increasing DEF demand, bulk storage and
DEF pumps are being added at our largest
shop facilities throughout North America.
We continue to offer RydeGreenSM, a line
of tractors and trailers, designed to reduce
fuel consumption and greenhouse gas
emissions. The tractors are equipped with
SmartWay® Verified Technologies eligible
for the U.S. EPA SmartWay® Designated
Tractor certification.
Ryder’s RydeGreenSM Hybrid is a
medium-duty straight truck that has the
potential to provide up to 30 to 40%
improved fuel efficiency in standard in-city
pickup and delivery applications. Diesel
emissions are dramatically reduced when
the vehicle is operating in hybrid mode
on battery power.
Fuel Storage and Compliance
Ryder Fuel Services, a wholly owned
subsidiary of Ryder, performs remote
monitoring and compliance management
for more than 2,200 Ryder- and customeroperated fuel storage tanks, 24 hours a day,
365 days a year.
RYDER’S COMMITMENT TO
ALTERNATIVE FUELS
As the leader in commercial truck
full service leasing, we have the unique
ability to influence and reach a broad
and diverse base of customers and to
increase access to alternative fuels and
state-of-the-art vehicle technologies on
a national level. As a result, in April 2010,
the San Bernardino Associated Governments Board selected Ryder as its fleet
For every gallon
of diesel fuel that
is not burned when
a hybrid truck is in
battery mode, 22.2 pounds of
CO2 emissions are avoided.
partner in a groundbreaking heavy-duty
natural gas truck rental and leasing project in
Southern California. The $38.7 million
project is being funded as part of a joint
public/private industry partnership between
the U.S. Department of Energy, the California
Energy Commission, and Ryder. State and
federal sources will provide $19.3 million of
the total project funding, including $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 $9.3 million via the California
Energy Commission’s Alternative and
Renewable Fuel & Vehicle Technology
Program. Demonstrating Ryder’s strategic
When fully implemented, this project will:
4 Replace more than 1.51 million gallons
of diesel use annually with 100%
domestically produced low-carbon
liquefied and compressed natural gas.
4 Contribute to the maintenance and
creation of more than 400 U.S. green
automotive jobs.
4 Reduce more than 9.2 million pounds
of greenhouse gas emissions per year.
4 Reduce more than 131 tons of nitrogen
oxide emissions annually.
4 Completely eliminate 2.65 tons of
diesel particulate emissions from local
neighborhoods.
NOTE: Estimates based on California’s Carl Moyer program guidelines.
commitment to alternative fuels, the
company is committing $19.4 million of
our own capital to the project. This is the
first time that natural gas trucks have been
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 project will make available 202
heavy-duty natural gas powered trucks,
including both liquefied and compressed
Ryder Liquefied Natural Gas (LNG) and
Compressed Natural Gas (CNG) tractors
natural gas (LNG and CNG) configurations.
These ultra low-emission trucks have been
deployed into our Southern California
operations network, where our customers
can access them through short-term rentals,
long-term leases, or through our dedicated
logistics services.To support these trucks, we
are constructing two new natural gas refueling
stations within the region and will work with
our customers to identify and leverage the
existing natural gas refueling infrastructure
already located throughout Southern California.
As part of our core product offering, we
will maintain the vehicles at three strategically
located maintenance shops in Orange,
Rancho Dominguez, and Fontana, Calif.
Each maintenance facility will be properly
equipped for the indoor repair of natural gas
vehicles. With natural gas fuel prices trending
significantly and consistently lower than
Supply & Demand Chain Executive
Green Supply Chain Award
(2009/2010)
Ranked in the top 250 U.S. companies
in the 2010 and 2011 Newsweek Green
Rankings
Click Here to Learn More 4
Click Here to Learn More 4
15
diesel fuel, our customers who incorporate
natural gas vehicles into their fleet have the
opportunity to realize additional cost savings.
In 2011, in response to customer interest
and demand, Ryder expanded its natural gas
vehicle capabilities into Arizona and Michigan.
WASTE MANAGEMENT
We are dedicated to proactive waste
management practices with onsite and offsite
recycling and reuse technologies. Typical
wastes generated by our operations are those
associated with vehicle maintenance and
fueling activities.
Automotive Waste Streams
We operate approximately 760 vehicle
maintenance facilities throughout the U.S.
and Canada. Our state-of-the-art waste
management programs ensure that most
waste streams in our shops are recycled.
waste management programs, as well as
re-use and continuous-use technologies
whenever possible.
Waste Recycling & Reuse
In 2010, Ryder began distributing
re-refined motor oil to 200 Fleet Management Solutions locations in the U.S. 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 gas
and metal emissions.
Our recycling best practices include:
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.
4 Recycling more than 50,000
automotive batteries annually.
4 Recycling all parts cleaning solvents,
automotive fluids, and refrigerants.
4 Donating or recycling all used electronic
equipment.
Automotive Waste Stream Recycling Summary
Year
2006
2007
2008
2009
2010
Volume1
(Gallons)
CO2e Metric
Tons Avoided2
Passenger Vehicle
Emissions Equivalent3
Tree Conservation
Equivalent3
4,859,624
4,413,238
4,440,991
4,079,779
4,116,341
25,590
23,930
23,810
22,332
21,693
5,086
4,577
4,554
4,271
4,139
689,113
620,174
617,067
578,754
560,798
1) Total volume of oil, oily water, automotive waste filters, and solvents recycled.
2) 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) 9-2010, www.epa.gov/cleanenergy/energy-resources/calculator.html.
Through partnerships with vendors and the
implementation of technologies designed to
better manage and maintain vehicles, we
have achieved significant reductions in several
vehicle-related waste streams.
We recycle virtually all automotive
waste streams, such as used oil, oily water,
used oil filters, and used solvents. We have
reduced the amount of waste we generate
year over year by implementing aggressive
4 Crushing used oil filters prior to
recycling, which reduces the number of
collections at each location. (We recycle
almost 10,000 drums of used filters
annually.)
4 Using retread tires. (Retread tires use the
original tire casing and replace the worn
tread with a new tread while still delivering
the same performance and safety.) These
tires require significantly less oil to produce
Ryder peforms more than 600
environmental audits each year
Vehicle Washing - Waste Water
Recovery
Vehicle washing is performed daily at
most Ryder facilities. All vehicle wash services
are performed in accordance with our
aggressive reuse and recycling policies to
ensure vehicle waste water is handled appropriately in accordance with all environmental
regulations, and is collected and treated prior
to disposal or recycling. More than 2 million
gallons of vehicle wash water are collected
annually from vehicle wash operations.
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
Significantly expanded carrier
participation in the U.S. EPA
SmartWay® Transport Program
16
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.
Technology Asset Waste Streams
The disposal of technology assets (computers, monitors, keyboards, scanners, printers,
etc.), if not managed carefully can result in
Paper and Cardboard Recycling
Results:
2008: Ryder recycled more than
3,800 tons of office paper and
cardboard, resulting in a total
reduction of more than 2,600 tons
of greenhouse gas emissions.
2009: Ryder recycled more than
3,400 tons of office paper and
cardboard, resulting in a total
reduction of more than 2,400 tons
of greenhouse gas emissions.
2010: Ryder recycled more than
5,800 tons of office paper and
cardboard, resulting in a total
reduction of more than 4,000 tons
of greenhouse gas emissions.
Electronic Waste Stream Recycling Summary:
Year
Tons Recycled
2008
62
2009
56
2010
34
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
has reduced disposal costs and extended the
life cycle of equipment.
E N E R G Y C O N S E R VAT I O N
Reducing Energy &
increased costs, risks, and environmental
Water Consumption
impact. To manage this impact, we recycle
We have stepped up our
all retired electronic components and
efforts
to manage energy use
component parts at all of our locations in
and
reduce
greenhouse gas
the U.S. and Canada. Electronic components
emissions
to
become even more sustainable.
are fully evaluated prior to end-of-life
Consistent
with
our long-standing
destruction to ensure all reuse and redecommitment
to
operational
efficiency and
ployment options are exhausted, thereby
maximizing the
useful life of the
Employee conservation awareness campaigns combined with strategic
equipment and
green building upgrade program have helped reduce energy use at Ryder.
reducing overall
2008
2009
2010
technology lifecycle costs and
Electric
emissions.We
(Kilowatt Hours)
175,468,594
169,206,171
161,815,807
partner with
Gas
national and
(Million Cubic Feet) 661,279
624,563
603,143
regional recycling
Water
and reuse compa(Million Gallons)
377,187
341,761
348,728
nies to collect and
dismantle electo using resources as efficiently as possible,
tronic components including glass, mercury,
we are measuring and reporting our
and hazardous materials, to ensure that
electronic scrap material does not end up in a electricity, natural gas, water, and sewer use
landfill. E-waste recycle partners are compliant for all North American operations. Improving
energy efficiency is central to our carbon
with U.S. EPA Responsible Recycling
reduction strategy and the sustainable
Standards and/or E-Standards Recycling
solutions we provide to our customers.
Program Standards. Recycling electronics
We are continually updating and
improving Energy Conservation Checklists
designed specifically for our facilities in the
U.S. and Canada that include best practices
for facility management, lighting, and
atmospheric controls.These tools offer noto low-cost tips for saving energy. Low cost
improvements and aggressive management
can deliver significant returns and environA Ryder maintenance facility
mental benefits.We’ve found that even simple
RydeSmart® helps customers reduce
fuel consumption by 10 to 15%
Click Here to Learn More 4
Ryder hosted Safety & Fuel Conservation
Seminars back in the 1960s, before these
concepts became buzz words
17
electricity conservation
management practices can
easily achieve 3 to 5%
savings. Some examples include:
4 Replacing manual
thermostats with locking,
programmable thermostats
and setting thermostats to 68
degrees in the winter and 76 degrees in
the summer.
4 Installing timers or sensing controls
on all non-security lighting at fuel islands,
washbays, and storage areas.
4 Routine inspection and replacement of
weather stripping on doors and caulking
around windows every three years to
prevent heating and cooling loss.
4 Routine maintenance on heating and air
conditioning systems, replacement, and
cleaning filters regularly.
Green Building Upgrades
Beginning in 2009, Ryder embarked on
a project to convert lighting in our FMS
facilities to more luminaire and energy
efficient technology.The project targeted older
buildings first, replacing old metal halide
fixtures that have a lumens/watt rating of
3.51, with newer fluorescent lamp assemblies
that have a lumens/watt rating of 65.8. In
effect, the fluorescent lamp assembly, specified
by Ryder, provides 23,085 lumens compared
to 15,876 lumens from comparable metal
halide fixtures – an improvement of 45%.
This resulted in significantly improved
average light levels in the maintenance
technician workspace.
In addition to being much more efficient
on lumens per watt, we have realized substantial
benefits on energy conservation. Average
annual energy consumption for facilities
equipped with metal halides is 74,793
kilowatt hours. After the conversion, energy
consumption dropped to 53,492, a reduction
of 28.5%. These energy conservation
results translate directly into a reduced
carbon footprint.
We are also prioritizing energy efficient
and sustainable solutions for our Supply
Chain Solutions distribution centers.
Improvements include the installation of
skylights to take advantage of natural lighting,
fluorescent fixtures to improve energy
efficiency, and motion and daylight sensors.
Ryder continues to place a high priority on
energy conservation in new site selection criteria.
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. In 2010, this
performance scoring process was rolled out
broadly. The disclosure score reflects the
comprehensiveness of a company’s response in
terms of the depth and breadth of its answers.
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. The score is normalized to a 100
point scale and 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 the most
recent copy of Ryder’s Carbon Disclosure
Project questionnaire, visit
www.ryder.com/greencenter.
Ryder names its first full-time executive
to lead the company's environmental
program in 1986
SCOPE 1, 2, AND 3
EMISSIONS REDUCTIONS
4Scope 1 Direct Emissions
For operations owned and controlled
by Ryder, including on-site natural gas
combustion and owned/operated vehicles.
Year
2008
2009
2010
Emissions (Metric Tons)
565,488
470,481
461,828
4Scope 2 Indirect Emissions
For purchased electricity at owned/
leased locations.
Year
2008
2009
2010
Emissions (Metric Tons)
109,728
91,090
86,420
4Scope 3 Indirect Emissions
Beginning in 2009, Ryder implemented
initiatives to better track, report and reduce
Scope 3 (indirect) emissions associated with
employee business travel. Using improved
communication technologies to encourage
web-based meeting conferencing and digital
online conferencing. Ryder reduced the
amount of “short-flight miles” by more than
390 miles in 2010 over 2009. Short-flight
miles (less than 280 miles) are more fuel
intensive than longer-flight miles.
To further reduce Scope 3 indirect
emissions associated with employee air miles
traveled, working with our travel partner we
have established new travel guidelines and
policies to better manage business travel.This
includes the development of enhanced travel
management dashboard tools that provide
visibility for all employee travel.We also utilize
a Green Travel Benchmark that computes and
quantifies overall company Scope 3 emissions
Ryder reduced energy and water
consumption in U.S. and Canada
operations
18
associated with business travel in accordance
with GHG Protocol. In 2010, Ryder Scope 3
emissions associated with employee business
travel was 13,510 metric tons.
Greener Information Technology
(IT) Solutions
As information technology systems and
services continue to move away from paperbased management to more
automated, digital management resources, the demand
for electricity to support these
systems also increases. By developing
more sustainable alternatives for managing
IT infrastructure, Ryder has decreased costs,
energy use, and greenhouse gas emissions.
Optimizing processes and using existing
servers and storage resources has resulted in
enhanced utilization of our IT assets and a
reduction in overall energy consumption.
By employing server virtualization technologies at four major data centers in the U.S.,
we have reduced the number of general
shared-use servers from 300 to 20. An
additional 100 dedicated-use servers are
targeted for consolidation.
Our Green IT Goals include:
G R E E N S U P P LY C H A I N S
Carbon Footprint Measurement
An increased emphasis on carbon
management brings an increased demand for
emissions disclosure and reporting. In addition
to providing environmentally sound transportation and supply chain solutions, our
customers are looking to us to provide
specific data related to carbon emissions
associated with their transportation activities.
To assist current and prospective customers
looking to measure, analyze, and report their
transportation emissions, we have developed
a standard Carbon Footprint Metric.This
reporting tool is used in conjunction with
our fleet and logistics services, fuel efficient
equipment, energy tracking and conservation
programs, and other environmentally sound
customer solutions.
The Carbon Footprint Metric provides
a platform for providing customers with a basic
tool to compute CO2 emissions associated
with vehicle transportation. The metric has
been developed in conjunction with and to
supplement standard transportation management data reported to customers. We
have elected to report our Carbon Footprint
4 Reduce data power consumption.
4 Optimize data center capacity and use.
4 Eliminate unused, underused, and
redundant servers, where possible.
4 Consolidate physical servers using
virtualization technologies.
4 Consolidate applications and software
programs from multiple servers to
one shared resource.
4 Develop environmental procurement
specifications for the purchase of
future IT equipment.
4 Evaluate power management tools
to control end-user power.
Ryder was recognized by the 2011
CDP in its Carbon Disclosure
Leadership Index
Click Here to Learn More 4
19
Metric calculation on a ton-mile basis because any increase or decrease in tons per
mile or miles per load correlates to changes
in the customer’s carbon footprint.
Education and Awareness
We also understand that efficient execution
in a logistics and transportation network is
good for business and for the environment.
As a leading transportation and logistics
provider, we play a meaningful role in raising
awareness in the marketplace about the
important impact global supply chains have
on sustainable business. To further support
our customers and the business community
in understanding the green benefits of
managing an efficient supply chain network,
we have sponsored Florida International
University’s Annual Green Supply Chain
Forum in Miami annually since 2008. The
Forum invites experts in industry and government to help businesses determine ways
to quantify their environmental efforts. In
2010, the Forum focused on four core areas:
4
4
4
4
Technology and the green supply chain;
Understanding the future of regulations;
Market demands; and
Framework for ranking performance.
People & Community
The work we do often puts us in
potentially dangerous situations and
requires us to be constantly vigilant
and responsible regarding safety.
Our demonstrated commitment
to safety has earned us a reputation as an industry leader. Because
safety is an underlying value and goal of the company, our focus
is sustained by multiple safety programs and
initiatives.We are committed to rewarding and
recognizing those individuals and
teams who meet their safety goals because delivering
world-class safety performance is critical to the
company’s long-term success.
Conducted over 130,000 online
driver training sessions
Industry leader in safety performance
as proven through benchmark studies
and Comprehensive Safety Analysis
(CSA) Scoring
Click Here to Learn More 4
20
SAFETY MANAGEMENT SYSTEM
Ryder’s Safety Management System
includes formalized procedures and standards
that provide the framework allowing our
employees to work safely every day. Safety
performance is measured utilizing leading
indicators as well as injury and collision
frequency and severity. Proactive measures
include frequent behavior observations and
training, as well as other incident prevention
activities. We measure each location’s
compliance with these established procedures
through electronic reporting and ongoing
audit programs.
Operational Safety Plans are developed
each year that focus on causation to target
prevention activities throughout the organ-
at all levels of management and with each
employee.The accountability system includes
establishing objectives, communicating these
objectives and expectations, monitoring
performance through monthly reporting and
scorecard teleconference calls, and recognizing
good performance. Safety Steering Committees
establish the management, accountability, and
communications process at the local level
to successfully implement our safety program.
Safety Training and Performance
The Ryder safety organization develops
safety communications and training programs,
conducts research on new safety-related
technology and manages the implementation
of these technologies, provides our operations
with standardized safety dashboards and trend
data, and performs audits, major investigations,
and supports new business start-ups.
For customers, our safety team provides
value-added safety services through
www.rydersafetyservices.com where
customers can access safety and compliance
training, products, and services.
In 2009 and 2010, we made progress in
several areas including:
Ryder is committed to protecting its employees, customers, and
the general public. Safety, health, and security are key business
objectives and values that must not be compromised.
ization. The Operational Safety Plan is
distributed throughout our company utilizing
a proactive web-based software system,
Safety Tracking and Reporting (STAR). In
addition to defining the preventive safety
agenda for each month, the STAR system
also provides a tracking mechanism that
monitors completion of the Operational
Safety Plan on a monthly basis.
We have a strong system of accountability
4 Continued the use of innovative vehicle
safety technologies such as GreenRoad,
Smart Drive, Iteris, Eaton Vorad, and
CruiseKing.
4 Launched an upgraded version of
Ryder’s incident management system
designed to provide quick visibility to
claims at all management levels and
promote an immediate corrective
action response from field operations.
In 2009 and 2010, approximately
192,000 online safety training
lessons were completed. Over
350,000 lessons have been
completed since the inception of
this training program in 2005.
4 Implemented a cell phone prohibition
for company drivers while driving.
4 Developed and implemented a Sleep
Apnea Wellness Program to reduce the
effects of driver fatigue among drivers
with this condition.
4 Established a communications, tracking,
and reporting system to ensure satisfactory
performance to the Federal Motor
Carrier Safety Administration’s
Compliance, Safety and Accountability
program.
4 Fulfilled requirements to become a
member of ISNetworld, a global resource
that connects corporations with safe,
reliable service partners.
4 Improved maintenance safety processes
linking safety procedures with
maintenance tasks.
4 Strengthened safety audit processes.
4 Provided technical safety direction for
the maintenance of compressed natural
gas and liquid natural gas vehicles.
Ranked as a top U.S. company for security
practices in the Transportation, Logistics,
Supply Chain, and Warehousing industry
sector in 2009 and 2010 Security Benchmarking Survey, by Security Magazine
Implemented several key safety initiatives
in the UK including a Return to Work
Program, Training and Management
Scorecard and Accountability processes
Click Here to Learn More 4
21
Drug and Alcohol Policy
We recognize that drug and alcohol
abuse impairs judgment, significantly increases
the risk of injury, and poses a threat to safety.
Our Drug and Alcohol Policy applies to all
of our employees, including contract and
supplier personnel who are expected to
abide by the policy while on our premises
or while performing any work for Ryder.
The annual Ryder Driver of the Year program recognizes three
drivers who exemplify Ryder’s commitment to working and driving
safely while delivering outstanding customer service. Ryder has
recognized driver safety excellence for 38 years.
Safety Recognition
Ryder’s safety awards and incentive
programs are designed to encourage hands-on
involvement, teach the right behaviors, and
reinforce our safety culture. The annual
Chairman’s Safety Awards program, now in
its 12th year, recognizes employees across
all business segments who achieve the
highest overall rankings based on safety
metrics such as lost work days, and injury
and collision frequency.
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. We
also recognize individual employees who
worked during the previous year without a
preventable collision or injury.
Transportation of Hazardous Goods
Although transportation of hazardous
goods is not a service that Ryder has targeted
for growth or development, our policy on
the transportation of hazardous goods applies
to any instance in which a Ryder employee,
including lease employees and owner-operators, is directly involved in such transportation, including loading and unloading,
packaging, labeling, and vehicle operation.
These employees are required to receive
HazMat Security Awareness training.
Hosted U.S./Mexico and Northern Border
Security Conferences with support of the
Department of Homeland Security to improve
collaboration and share best practices among
government agencies and business partners
22
Hours of Service
We have strict policies and procedures
relating to Hours of Service regulatory
requirements for all of our drivers. We do
not permit any driver employed by, or
leased to, Ryder to violate these regulations.
Violations can result in disciplinary action
up to and including termination. All of our
drivers and location managers are required
to know, understand, and comply with these
regulatory requirements, including logging
and reporting of Hours of Service. On a
monthly basis, our Compliance team selects
locations to be audited and Hours of Service
records are submitted by these locations to
our log audit vendor. The results of these
audits, and any records that contain violations,
are returned to the location manager for
review and corrective action.
Fatigue Management
We recognize the adverse effects of
fatigue on the safety and health of our
employees and those with whom our
employees interact. It is the responsibility
of both Ryder employees and management
to work together to minimize these effects.
Ryder’s Fatigue Management Program is
in place to ensure that no Ryder driver shall
operate a vehicle on company business while
the driver’s ability or alertness is so impaired
by fatigue as to make it unsafe to operate a
motor vehicle.This program consists of training,
risk evaluation of work schedules, resources
and proposed routes, communication
processes, and safety reviews.
Completed C-TPAT border security
certification for Ryder Supply Chain
Solutions Asia
Click Here to Learn More 4
Safety Performance Results
FMS Safety Performance Results
U.S. OSHA Recordable Injury Frequency Rate*
2010
2009
Fleet Management
1.78
1.86
Solutions
Canada Total Injury Frequency
2010
Fleet Management
1.44
Solutions
United Kingdom
Injury Frequency Improvement
from 2009 to 2010
Lost Workday Rate Improvement
from 2009 to 2010
2009
2.54
46%
13%
SCS Safety Performance Results
U.S. OSHA Recordable Injury Frequency Rate*
2010
4.91
2009
4.12
4.89
5.98
4.90
4.77
Canada Total Injury Frequency
2010
Canada Logistics
6.60
2009
5.50
Supply Chain
Solutions
Dedicated Contract
Carriage
U.S. Logistics
SECURITY
Through improving relationships and
collaboration with international government
security agencies and critical business
partners, Ryder has become a recognized
industry leader in transportation and supply
chain security. We are committed not only
to bringing higher levels of security to our
operations and the customers we serve, but
also to sharing best practices with industry
partners and government regulators to
improve overall security in the transportation
and logistics industry.
Our security goals are to:
4 Create an environment where employees
are secure in their workplace;
4 Provide the most innovative security
best practices to secure our customers’
supply chains;
4 Design security programs that seek to
ensure that our public engagements
remain safe and secure;
4 Ensure that our customers are confident
that their inventory and business
information is well guarded;
4 Continue proactive involvement with
key policy makers and policy making
bodies impacting the truck leasing,
truck rental, logistics, and transportation
sectors; and
4 Ensure that all levels of management
have increased awareness of security
issues, threats, and protection strategies.
Collisions per Million Miles** – U.S. and Canada
Supply Chain
Solutions
Dedicated Contract
Carriage
U.S. Logistics
Canada Logistics
2010
2.31
2009
2.09
2.70
3.18
2.77
3.10
2.57
2.70
* OSHA Recordable Injury Rates for the U.S. Transportation
and Warehouse Industry Segment can be found on the
Bureau of Labor Statistics website at
http://bls.gov/iag/tgs/iag48-49.htm#fatalities_injuries_and_illnesses.
**Collision Frequency data for U.S. carriers can be compared
on the Federal Motor Carrier Safety Administration website
at http://ai.fmcsa.dot.gov/sms/.
Customs and Border Security
Our Corporate Security group is
responsible for the oversight of customs
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.
In April 2010, we hosted a U.S.-Mexico
Border Security Conference to initiate
Launched a Sleep Apnea Wellness program
to reduce the effects of fatigue among Ryder
drivers with this condition
23
information sharing between customers,
business partners, and government security
agencies and to reinforce our commitment
to proactively improving levels of safety
and security. The conference took place
at our state-of-the-art Transportation
Management Center in Ft. Worth, Texas,
and featured presentations by the U.S.
Department of Homeland Security and its
component agency, U.S. Customs and
Border Protection, International SOS, and
LoJack Supply Chain Integrity.
In November 2010, Ryder hosted a
North American Border Security Conference,
primarily to address security threats and
customs compliance on the U.S./Canada
border. The conference, which took place
at our Operations Management Center in
Novi, Michigan, featured presentations by
the U.S. Department of Homeland Security
and its component agency, U.S. Customs
and Border Protection, the U.S. Chamber
of Commerce, Canada Border Services
Agency, the Royal Canadian Mounted
Police, and state homeland security advisors
from Idaho, Michigan, and Wisconsin.
Rental Fleet Security
We have strong programs in place to
improve security around the company’s
rental fleet. Ryder’s rental business primarily
serves commercial rental customers that
need to supplement their private fleet of
vehicles on a short-term basis either because
of seasonal increases in their business or
Ryder’s Driver of the Year award has
recognized safety and service excellence
for 38 years.
Click Here to Learn More 4
projects that require additional transportation
resources. Our commercial rental fleet also
provides Ryder’s contractual full service
lease customers with additional vehicles to
handle peak or seasonal needs.
All of our rental operations are companyowned and operated, and staffed by Ryder
employees. This helps to ensure proper
control of our rental operations, since we
control the policies, procedures, training,
and IT systems. Our rental vehicle security
programs include appropriate customer
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 staff to share information and discuss methods of improving
truck rental security.
We take actions to comply with various
“know your customer” regulations (such as
the U.S. Patriot Act) to enable us to form a
reasonable belief that we know the identity
Ryder’s security program is also designed to help prevent vehicle
theft through 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.
identification and screening processes
against various government watch lists and
other approved lists of individuals and
organizations with which U.S. citizens and
residents are prohibited from doing business.
Our fleet security policies not only apply
to rental vehicles, but are also part of any
new lease, used vehicle sales, and supply
chain contract process prior to releasing
assets and vehicles into the custody and
control of customers and their agents.
Ryder’s security program is also
designed to help prevent vehicle theft
through 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 regularly meet 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
of each customer.
We have implemented specific policies and
procedures that are activated based on alerts
from the U.S. Department of Homeland
Security through the National Terrorism
Advisory System.We also implement specific
temporary security measures for special
events that require a heightened level of
security. In the event of a security incident,
it is our policy and practice to cooperate
fully with all law enforcement agencies. We
have maintained a long-standing commitment
to this policy and will continue to do so in
the future.
Our partnership with government law
enforcement agencies helps to improve the
flow of information to advance and enhance
the security infrastructure.
Crisis Management
We take a tiered approach to Crisis
Management Planning. 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. At the
corporate level, we have a long standing
and robust Crisis Management Plan to
ensure that the appropriate executive,
financial, and technical resources are
applied in response to crisis events which
could impact our employees, customers,
assets or the corporation as a whole. Our
Crisis Management Plan was developed on
the following principals:
4 Protect Ryder's human capital as our
highest priority;
4 Minimize the impact of crisis events
through preparation and prevention,
when possible;
4 Ensure that appropriate individuals are
notified of unanticipated crisis events as
quickly as possible so that intervention
efforts can be applied at the earliest stages;
4 Identify the steps that need to be taken
during a crisis event in advance through
effective planning, practice, and review; and
4 Engage with the public sector and our
customers to ensure proper awareness,
communication, and planning.
Ryder was the first transportation
industry recipient of the National Safety
Council's highest honor, the Green
Cross for Safety medal
Conducted over 192,000 online
safety training lessons
24
Ryder employees are the driving force behind our company’s
success.With diverse experiences and backgrounds, a passion
for continuous improvement and
customer service, and a commitment
to helping others in need, our people
are the finest at what they do when it comes to delivering the
best solutions and making meaningful
contributions in their communities.
Launched a Diversity & Inclusion Council,
Mentoring Program, and Diversity Scorecard
linking executive pay to diversity goals
Selected the American Red Cross as
Ryder’s national charitable partner, with a
$1 million multi-year commitment, making
Ryder a member of the Annual Disaster
Giving Program
Click Here to Learn More 4
Click Here to Learn More 4
25
COMMUNITY
Ryder Charitable Foundation
We make contributions to non-profit
organizations primarily through the Ryder
Charitable Foundation. Funded entirely by
Ryder System, Inc., the Foundation
emphasizes support for those communities
where significant numbers of employees
live and work.The Foundation offers support
through cash grants and coordinating
volunteerism of employees.The focus areas
of Foundation giving are health and human
needs, education, and cultural arts.
More information about the Foundation
can be found in the About Us section of
Ryder’s corporate website under Corporate
Giving.
Foundation Giving Per Focus Area
2010
Cultural
Arts
Human
Needs
Education
In 2009, Ryder established local Public
Affairs Councils at its major employee
facilities in Atlanta, Ga., Novi, Mich., and
Dallas/Ft. Worth, Texas. The mission of
these 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 that the Councils represent.
The Foundation supports Ryder’s
overall company focus on creating a diverse
2009
2010
Ryder Charitable Foundation Giving
and inclusive working environment for
employees. As part of this effort, the
Foundation has funded numerous organizations such as the National Gay & Lesbian
Task Force, Women Executive Leadership,
United Negro College Fund, and The
Hispanic Scholarship Fund.
The Ryder Foundation has supported
many colleges and universities within the
United States for many years through our
Employee Matching Gifts to Education
program, as well as through direct donations
to universities/colleges.
The Foundation also has a longstanding
history of funding community organizations
near our South Florida corporate Headquarters, including major funding to
Camillus House (an organization that
provides humanitarian services to the poor
and homeless), Miami Science Museum,
St. Thomas University, Salvation Army, and
the Zoological Society of Florida.
National Charitable Partner
As a transportation and logistics
provider, we understand the complexity and
depth of timely resources needed to respond
to disasters. In June 2009, Ryder announced
it was committing $1 million over three years
to the American Red Cross through the
Ryder Charitable Foundation to support
national and local disaster preparedness and
Redesigned leadership competency
model to be the basis for decision
making related to hiring, assessing,
developing, and promoting people
response efforts, making it a proud member
of the American Red Cross Annual Disaster
Giving Program. Whether through financial
support, vehicle donations, or volunteer time
from our employees, our goal is to do all we
can to help increase the efficiency, capacity,
and cost effectiveness of American Red
Cross operations so the organization can
continue to prepare and respond quickly
and effectively in times of disaster.
Of this gift, $850,000 was designated to
the national American Red Cross Disaster
Relief Fund, and the remaining $150,000
was directed to the local Greater Miami &
the Keys chapter. In times of disaster, in
addition to providing
financial support to
national headquarters
and the Greater
Miami & the Keys
chapter, we provide
in-kind donations of trucks, sponsor local
Red Cross events, and support local disaster
relief efforts.
We have also extended preferred pricing
for rental vehicles to all Red Cross chapters
in the U.S., and we have given the Red
Cross access to discounted used vehicles
through Ryder’s Used Vehicle Sales division.
In addition, we leveraged our expertise in
logistics to help the Red Cross improve its
operational response capabilities by providing
Red Cross employees with free Six Sigma
Disaster Logistics Training conducted by
Ryder supply chain engineers.
Employee Volunteerism and Giving
Outside of formal company-sponsored
programs, Ryder employees all over the world
are moved to volunteer their own time and
generously donate money out of their own
pockets to make a difference. This grassroots
effort, “Ryder Cares,” includes everything
from donations for our troops overseas, toy and
clothing drives, participation in charity walks
and runs, and fundraisers for local food banks.
Began multi-phased transformation of
Ryder’s health and welfare benefits
strategy to focus on consumerism,
accountability, wellness, and prevention
26
Ryder is also tapping into our base of
more than 20,000 U.S. employees as part of a
grassroots volunteer effort to support disaster
preparedness and response activities in
communities in which we operate. In the
fall of 2009, we held volunteer kick-off
sessions at Ryder’s Headquarters, as well as
in some of the company’s large employee
facilities in Alpharetta, Ga., Dallas, Texas,
and Novi, Mich. In 2010, we launched a
national employee volunteer program through
VolunteerMatch, a web-based volunteer system
that makes it as easy as possible for any
employee to identify and register for local
Red Cross volunteer opportunities that
match their interests and schedule, as well
as track volunteer activities and hours.
Ryder has also supported the United
Way of Miami-Dade for nearly four decades.
During annual fundraising campaigns held
at our Headquarters in Miami, employees
are inspired to raise thousands of dollars,
matched by a contribution from the Ryder
Charitable Foundation. In 2010, we
surpassed our United Way Campaign goal,
raising over $215,000 in employee pledges
that were added to a $250,000 contribution
from the Ryder Charitable Foundation for
a total Ryder contribution of over
$465,000 to benefit the United Way of
Miami-Dade.The pledged employee amount
was a 5% increase from the 2009 campaign and
our largest employee contribution to date.
Ryder employees serve as board members
of many not-for-profit organizations promoting economic development, education,
performing arts, animal welfare, education,
and social service agendas. Current board
affiliations include but are not limited to:
American Red Cross; Barry University; Big
Brothers, Big Sisters of Greater Miami; Boy Scouts
of America/South Florida Council; Easter Seals;
Greater Miami Chamber of Commerce; Healthy
Mothers, Healthy Babies Coalition of Broward;
Humane Society of Greater Miami; Junior
Achievement of Greater Miami; Mercy Hospital
Foundation; Miami Science Museum; Nat Moore
Foundation; Sarcoma Foundation; St.Thomas
University; United Way of Miami-Dade;
Zoological Society of Florida.
PEOPLE
Ryder’s reputation as an industry
leader has been earned over the
course of close to 80 years in
business. While our solutions and
innovations are certainly worthy of
recognition, the true source of
Ryder leadership comes from our
people.
Ryder received the Corporation of the Year
Award in the Transportation Industry from
Michigan Minority Business Development
Council in 2009
Employee Representation
Approximately 2,900 of our employees
in the U.S. are represented by labor unions.
These employees are principally represented
by the International Brotherhood of Teamsters,
The International Association of Machinists
and Aerospace Workers, and the United Auto
Workers. Wages and benefits for these represented employees are governed by 99 labor
agreements that are negotiated periodically.
Talent Management & Recruiting
We are a service business that relies
heavily on our talented people, and at Ryder,
managing that talent is a key business strategy.
Business decisions around managing the
supply and demand of our diverse talent
are made purposefully in order to achieve
superior business performance and enable
our people to meet their full potential,
now, and in the future.
The largest proportion of Ryder’s
workforce is made up of non-management
employees, including shop maintenance
technicians and service island personnel,
professional drivers, and warehouse workers.
The bulk of these workers are in the United
States. As the overall United States workforce
population ages, the transportation industry
is faced with a shortage of qualified drivers
Ryder received the Supplier of the Year
for Diversity Efforts from Toyota in
Georgetown, Ky. in 2009 and 2010
Click Here to Learn More 4
27
and technicians. In response to this, Ryder’s
workforce planning strategy is heavily
focused on developing a pipeline of diverse,
talented people with the right aptitude and
skills, who meet the company’s high
standards for customer service, safety, and
compliance. To build this pipeline, we have
been implementing new and innovative
approaches to recruiting by partnering
with technical and vocational schools,
leveraging our employer brand, and tapping
into social networks. Ryder will continue
to source and attract talent as a competitive
advantage.
One of our strategic recruiting initiatives
includes hiring from the military because
we understand the unique work experiences
and value the leadership qualities inherent
in military personnel. Specifically, the distinct
logistical, mechanical, and management skills
learned through military service are a great
asset to Ryder’s organization. While we
have been a long time supporter of hiring
veterans, in 2011, we launched a number of
new initiatives and partnerships to increase
our focus on recruiting veterans for roles
important to Ryder’s operations including
diesel mechanics, professional truck drivers,
logistics managers, and other professional
support positions.
Our focus on organizational development
and learning goes well beyond building the
functional and technical skills needed for
our employees to do their jobs. Our culture
is embedded with expectations around our
leadership qualities. We communicate these
qualities to our current and potential
employees via the Ryder Leadership
Competency Model. This model continues
to define our expected leadership behaviors
in four key categories: character, judgment,
relationships, and results. When our leaders
are most effective, they excel in these four
equally important dimensions. Beginning
in 2010, Ryder began hiring, assessing,
developing, and promoting people using
these competencies as our framework for
decision making. Leadership behavior is now
integrated into our performance management
process and employees have access to a new
interactive on-line training tool to help
improve competency development. We also
Health & Wellness
Our approach to health and wellness is
simple: help people stay healthy, help those
with chronic conditions better manage
their care, and identify, as best as possible,
those who are heading toward a health care
episode before it happens.We must do this
while at the same time maintaining a
benefits cost structure that is affordable for
our employees and the company.
We believe in the importance of continuing to provide employees with access to
quality health care services and financial
protection programs. Our health care strategy
is centered on curtailing the rise of health
care expenses for both employees and the
company. This is accomplished through the
promotion of consumerism, prevention,
wellness, and quality of care.
The transformation of our health and
wellness program
began in 2010,
in advance of
the Health Care
and Education
Affordability
We believe in the importance of continuing to provide employees
with access to quality health care services and financial protection
programs. Our health care strategy is centered on curtailing the
rise of health care expenses for both employees and the company.
continue to further build our leaders’
expertise in all aspects of these categories
through the delivery of an enterprise wide
Management Development Program for
supervisors and managers, as well as a
Leadership Program for high potential
managers. Going forward, we will continue
to implement innovative training and
development programs for functional,
technical, and leadership skills in accordance
with the strategic needs of the business.
Recognized in the Human Rights Campaign’s
2011 Corporate Equality Index with a score of
93 out of 100 points for Lesbian, Gay, Bisexual
and Transgender Equality
Reconciliation Act being signed into law.
This transformation included the
introduction of proactive new approaches
to help Ryder and our employees use
health care dollars as effectively as possible,
as well as a greater emphasis on wellness
and preventive services. Beginning in 2010,
all covered employees and family members
enrolled in a PPO Plan are covered at 100%,
for in-network preventive medical services
and colonoscopies, with no deductible. All
Ryder defines leadership in four key
categories: character, judgement,
relationships, and results
Click Here to Learn More 4
28
U.S. employees who enrolled in any Ryder
medical plan were automatically enrolled in
a new Health Advocate program, fully funded
by Ryder. This program provides employees
with a dedicated Personal Health Advocate,
typically a registered nurse, who will work
with them one-on-one to resolve a range
of clinical and insurance-related issues that
typically overburden employees and their
families. In recognition of the increased importance of Healthcare Flexible Spending
Accounts, we have increased the amount of
pre-tax dollars employees can save in their
accounts from $3,000 to $4,000.
Diversity & Inclusion
At Ryder, diversity and inclusion is a
strategic business imperative. We recognize
that a diverse and inclusive culture enables
our company to better serve our customers,
creates a more productive and engaging
workplace for our employees, and ultimately
accelerates business growth and success.
Our commitment to diversity and inclusion
is represented by our core values of integrity,
service, and performance as well as leadership
competencies of character, judgment,
relationships, and results.
Our efforts in this area are led by the
Department of Diversity and Inclusion which
works directly with our Chairman and the
leadership team to establish the strategic
direction. A video by our Chairman about
our commitment to diversity and inclusion
is available on the Company’s website at
www.Ryder.com.
Ryder’s Diversity and Inclusion Council
is led by our Chairman and CEO.The
Council consists of eleven cross-functional
Ryder’s vision for diversity and inclusion is to create a supportive,
collaborative work environment that values individual differences
and similarities, promotes respect for all individuals and their
ideas, and enables everyone to contribute their full potential while
achieving our business objectives.
leaders, who represent a variety of
diversity dimensions that reflect
the many perspectives of our
workforce.The Council is
responsible for helping guide
our initiatives and programs in
support of our diversity and
inclusion vision and mission.
Supplier Diversity
To be successful, we recognize that
Supplier Diversity should be guided by
adhering to a practice of inclusion rather
than exclusion of diverse suppliers. Working
with and forming partnerships with minorityand women-owned businesses is core to
this mission. The mission of Ryder's Small
Business and Supplier Diversity Program is
to actively pursue and develop partnerships
with qualified small and diverse businesses
that enhance Ryder's overall commitment
to delivering exceptional customer service,
driving economic growth, and building global
market share.We depend on the contributions
of diverse suppliers to develop a strong foundation of customer loyalty and entrepreneurship to succeed in today's competitive
marketplace. We believe that excellence in
supplier diversity contributes to excellence in
supply chain and transportation management.
Ryder invests significant time and
effort in identifying small businesses
to provide various products and
services to support our operations.
As a result we have developed an
extensive database of suppliers
across the U.S. that meets our needs.
This database is continuously being
updated to reflect changes in our
business requirements.
We utilize multiple sources to support our
efforts to engage small business participation.
We also utilize databases maintained at
numerous regional chapters of minority,
small business, and veterans organizations.
Ryder has a web portal that allows
suppliers to become familiar with our Small
Business and Supplier Diversity Program
as well as an opportunity for prospective
suppliers to register online at
http://www.ryder.com/suppliers_home.shtml.
The online registration form allows
procurement professionals to query supplier
profiles based on specific information
provided by the supplier.
In 2010, Ryder sourced $179 million
or 4.6% of our total negotiable spend with
small business/diverse suppliers. This
represents an increase from 2009, where
Ryder sourced $117 million or 3.96%
of our total negotiable spend with small
business/diverse suppliers.
Ryder strives to ensure that veteran-owned, hubzone,
disadvantaged, and women-owned small business concerns
have an equitable opportunity to compete for subcontracts.
In 2011, Ryder joined forces with the
U.S. Chamber of Commerce to hire
more veterans by joining the Veterans
Employment Advisory Council
Click Here to Learn More 4
In 1969, Ryder hired its first
female professional driver
29
Maintaining high ethical standards,
good corporate governance practices,
and full compliance with the laws
that govern our
business are essential to preserving world-class
business standards and investor confidence.
Online compliance training implemented
with 6,046 individual users in 2009 and
6,368 individual users in 2010 around
the world
In 2011, Ryder received an A-rating
for its overall investor program from
Investor Relations Magazine
30
Our Board of Directors
is composed of eleven Directors,
ten of whom are “independent”
as defined under the New York
Stock Exchange’s (NYSE) listing
standards. In addition, our
Board has adopted categorical
director independence standards
which are part of our Corporate
Governance Guidelines. Pursuant
to these Guidelines, the Board
undertakes an annual review of
director independence. Our
independent directors meet
regularly in executive session
without management present
as part of each regularly
scheduled Board meeting.
Our Board of Directors is held accountable
to the same Principles of Business Conduct
which are applicable to all Ryder employees.
Our Chief Executive Officer serves as
Chair of the Board.Through this rule, we
believe that our CEO is in the best position
to identify emerging issues facing the company,
communicate company performance to the
Board, and set the Board agendas.The Board
has also recently created the role of a strong
lead independent director to enhance the
Board’s independent oversight of the company
and uphold effective governance standards.
Our Board has four standing committees:
Audit, Compensation, Corporate Gover-
nance 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.
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
long-term 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 determined
that such votes will be held on an annual
basis going forward.
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, through
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 executive leadership team is
comprised of the company’s CEO, Chief
Financial Officer, Chief Legal Officer, Chief
Ryder rated highly in several categories
for Small-to-Mid Cap companies in
Investor Relations Magazine’s annual
survey of buy- and sell-side analysts
Ryder recognized in 2010 as one of the Top 20
Companies for Best Corporate Governance.
Administrative Officer, and the presidents of
our Fleet Management Solutions and Supply
Chain Solutions operating units.The executive
leadership team supports the Board of
Directors in executing the company’s strategy
and overseeing the company’s operations.
The only member of the executive leadership
team who serves on the Board is our CEO.
Risk Management
We understand that risk is present in
our everyday business and that risk-taking is
a necessary part of growing and operating a
business. Therefore, we have implemented
an enterprise risk management (ERM)
program to provide management and our
Board with a robust and holistic top-down
view of key risks facing the company. The
Board is responsible for oversight of our ERM
process and the CEO and executive leadership
team are responsible for risk identification,
management, and communication under our
ERM processes. All significant risks identified
by our ERM program are communicated to,
and discussed with, the Board and/or one of
the relevant Committees on a regular basis.
STAKEHOLDER ENGAGEMENT
As an international corporate citizen,
Ryder interacts with a variety of stakeholders
that affect, and are affected by, our services
In 2009, 2010, and 2011, Ryder was named as
having the Best Investor Relations Officer in the
Air Freight and Surface Transportation Industries
by Institutional Investor Magazine
31
and operations. Active engagement and
dialogue with our stakeholders is a vital part
of our business strategy and an essential aspect
of corporate governance at Ryder. The
manner in which we engage with our
stakeholders varies according to the nature
of our relationship with them.
Employees
We communicate clearly and frequently
with our employees globally to engage them
and make them aware of developments
within the company and the industry.
We value the feedback and input of our
employees as an important contribution
to our commitment to engagement and
innovation.
4 We regularly communicate with our
employees through an integrated
program that includes print, online,
audio CDs and broadcast media, as well
as face-to-face interaction with Ryder’s
leadership through localized visits and
town hall-style meetings.
4 Recognizing that technology has
fundamentally changed how we operate
YouTube channel in 2010.
4 Employees are encouraged to ask
questions, and share feedback and
suggestions about policies and initiatives
through a number of interactive
feedback programs.
4 We provide anonymous toll-free
hotlines and e-mail systems for employees
to make confidential reports, or to seek
guidance about legal, ethical, or
compliance issues.
Investors
We are committed to providing our
shareholders and the investment community
with access to information that is timely,
material, accurate, and complete, and which
fairly and accurately presents our financial
condition and results of our operations, in a
manner consistent with all applicable legal
and regulatory requirements. Our investor
relations program includes:
4 Ongoing dialogue with participants in
the equity markets, including stock
Customers
Ryder strives to continually deliver on
our promises to customers. To improve customer engagement and service, we utilize a
number of mechanisms to obtain feedback
from customers about our products and
service performance, including:
4 A defined customer satisfaction
measurement process;
4 Proactive, regular customer satisfaction
and retention surveys which are tracked
in a secure, web-based system that allows
for trend analysis and other management
reporting. A closed- loop process
Ryder warehouse employees attend a town
hall meeting.
Ryder strives to continually deliver on our promises to
customers. To improve customer engagement and service,
we utilize a number of mechanisms to obtain feedback from
customers about our products and service performance.
by offering new ways to engage with
customers, colleagues, and the world
at large, in 2010 we introduced our first
social media policy.The policy encourages
employees to engage in business-related
social networks as a means of fostering
productivity, enhancing creativity,
building stronger, more successful business
relationships, and ultimately contributing
to our success. Ryder launched a
Facebook page, Twitter feed, and
2009
ensures action plans are implemented
where necessary to continually improve
performance;
4 Formal and informal research to identify
industry trends impacting current and
future product and service offerings; and
4 Regular and ongoing customer-directed
communications and training programs
including webinars, newsletters, and
face-to-face customer forums.
In 2007, 2008, and 2009, Ryder ranked in the
top ten for Best Overall Investor Relations
Program by Investor Relations Magazine
research analysts, as well as current and
potential shareholders.
4 Participation in numerous equity
investment conferences during the year
to communicate our strategy and operating
results. Presentations at these events are
web cast and accessible at
http://investors.ryder.com.
4 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 to
enhance our investors' understanding of
our business.
4 Quarterly conference calls that are fully
accessible to the public to discuss recent
Recognized by GovernanceMetrics
International in 2010 as one of The
20 Most Responsible Companies
Click Here to Learn More 4
32
operating results and future business
trends. Information regarding quarterly
conference calls is published via a press
release and is also available on our website.
4 A dedicated Investor Relations section
of our website, accessible at
http://investors.ryder.com.
4 An annual review and reports on Ryder’s
financial performance available online at
http://investors.ryder.com.
Suppliers
Our global suppliers are key to our
operations, and we are committed to
long-term, mutually beneficial relationships
with them. Ryder works with suppliers
who deliver the best quality, service, and
highest value-to-cost ratio. Our suppliers
are innovative and dedicated to promoting
continuous improvement in their operations,
and are also committed to compliance and
high ethical standards.
4 Suppliers interested in working with
Ryder can visit the supplier registration
section of our website in order to have
the opportunity to bid on upcoming
Ryder business.
4 Ryder’s Supplier Code of Conduct is
available on our website and covers
compliance with employment laws,
conflicts of interest, gifts, bribery and
corruption, antitrust and fair dealing,
environmental stewardship, and other
related policies.
4 Our Small Business and Supplier
Diversity Program actively pursues and
develops partnerships with qualified
small and diverse businesses.
Government Affairs
We continually monitor emerging government issues and activities, and develop
and implement government relations strategies to achieve our business objectives. We
view our participation in the political
Ryder participates in a natural gas vehicle event on Capitol Hill in Washington, DC.
process, including collaborating with governments, lobbying for solutions, and
contributing funds to federal U.S. and select
state candidates through the Ryder Employees
Political Action Committee (Ryder PAC) as
an important part of our responsibility to
our stakeholders and in the best interests of
our company. Our Government Relations
activities include:
4 Developing and advocating positions on
important public policy issues that are
core to our business, specifically those
that affect the way customers use or have
access to our products or services. Areas
of activity include tax policy, civil justice
reform, energy and climate change,
health care and employment, transportation
policy, free trade, and transportation
safety and security.
4 Membership and participation 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:
In 2008, 2009, and 2011, Ryder was
ranked in the Top 5 U.S. Companies for
Best Disclosure Procedures by Investor
Relations Global Rankings
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.
In 2010, we worked closely with the
U.S. Congress to:
4 Pass legislation allowing for accelerated
depreciation of new equipment purchases
helping to stimulate the economy and
create jobs.
4 Introduce legislation to provide incentives
to convert medium- and heavy-duty
trucks to natural gas fuels and build natural
gas fueling stations – an important step
toward reducing America’s dependence
on foreign oil.
4 Promote legislation in support of tax
reform and fair liability practices for
business and the transportation industry.
Ryder has only had four CEOs
in its almost 80 year history
33
We believe that public policy is best made
by those who know and understand our issues. As allowed under federal election finance law, we sponsor the Ryder Employees
Political Action Committee, an employeemember political action committee that supports political candidates whose views are
consistent with the company's goals.
Ryder's PAC is governed by a 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.
The Board also advises the Government
Relations staff in its decisions on whom to
support for public office. The PAC supports
incumbents, challengers, and candidates for
open seats.
The Ryder PAC makes contributions
from funds gathered from eligible employees
to federal and select state candidate campaign
committees and political party organizations.
The Ryder PAC disburses no corporate
funds to political candidates or committees.
Disbursements to qualified candidates and
organizations are listed at www.fec.gov.
The PAC’s Board has set specific criteria
by which to choose candidates to receive
contributions:
4 The candidate demonstrates a clear
understanding of the impact of government
policies on our ability to compete in the
marketplace.
4 The candidate's voting record and/or
pro-business philosophy supports our
position on key legislative issues.
4 The candidate has a good chance to be
elected, given sufficient financial support.
4 The candidate represents a district
which includes Ryder employees or
facilities, and/or serves on key legislative
committees.
are filed 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. These reports can be accessed at
www.house.gov and www.senate.gov.
In 2010, Ryder developed 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 adopts strict approval procedures for
contributions and the reporting of those
contributions to Ryder’s Board of Directors
on an annual basis. The policy can be found
in our Principles of Business Conduct.
Our Government Relations activities are
disclosed under the Lobby Disclosure Act
(LDA). Semi-annual and quarterly reports
In 2010, Ryder introduced its social
media policy and launched on
Facebook, Twitter, and YouTube
Shareholders can communicate with
Ryder's independent Directors by
visiting the "Contact our Board"
page on Ryder's website.
Click Here to Learn More 4
34
It is essential to ensure that we conduct business fairly, honestly,
and ethically at all levels of the organization. Our Principles of
Business Conduct, which are the
foundation of our model for
ethical behavior, cover all areas of
professional conduct including conflicts of
interest, confidentiality, compliance, and
mechanisms to report known or suspected
wrongdoing.
Created the role of a strong lead independent
director to facilitate and strengthen Ryder’s
Board of Directors’ independent oversight
of the company and to uphold effective
governance standards
35
Launched quarterly internal
compliance publication,“Clear Signals,”
featuring actual stories of employees
who have demonstrated ethical behavior
Our Global Compliance Team
is committed to ensure that employees,
customers, and vendors are aware of the
legal and ethical obligations related to
getting the right results the right way.
This team develops training initiatives
and policies related to the Sarbanes-Oxley
Act, Foreign Corrupt Practices Act, insider
trading, conflicts of interest, competitive
intelligence, antitrust, export controls, data
protection, ethics, anti-money laundering,
government contracting, due diligence
for acquisitions, document retention,
employment, and corporate compliance in
the U.S., Canada, Europe, Mexico, and Asia.
In addition, the team is also responsible
for updating our management, executive
team, and Board of Directors on key
compliance and ethics risks facing the
company, overseeing anonymous reporting
and complaint resolution proceedings,
supervising sensitive investigations conducted
by internal and external resources, and
auditing compliance with various regulations
and policies. Ryder’s compliance program
is also reviewed by external resources.
Our Corporate Compliance and
Risk Steering committee consists of Vice
President- and Director-level representatives
from Human Resources, Tax, Audit,
Safety/Security, Legal, Risk Management,
Compliance, Operations, Information
Technology, Environmental, Government
Relations, and Corporate Accounting.
This committee reviews and prioritizes
compliance and risk issues and ensures that
key stakeholders are informed of changes
in the law or relevant policy that could
impact our business.
Online compliance training was rolled
out to more than 6,000 individual users in
2009 and 6,300 individual users in 2010. In
2009 and 2010, face-to-face training and
risk assessment interviews were conducted
with key management personnel in China,
Singapore, Hong Kong, Germany, UK,
Mexico, and Canada on compliance and
Sarbanes-Oxley issues.
Ryder's commitment to ethical business
is governed by our Principle’s of Business
Conduct, which apply in every location in
which we do business around the world, as
well as to every employee, officer, director
and member of the Board of Directors
36
In the U.S., monthly webinars are
conducted by internal employment lawyers
on legislation and policies for Human
Resource managers. In addition, Litigation
Avoidance Training is conducted monthly
for operations staff in various cities throughout
the U.S. This eight-hour course discusses
state and federal employment laws, as well
as ethics issues. Over the past eight years,
several thousand managers have been trained.
In 2009, two anonymous risk awareness
surveys were completed by 79% of our
employees who have access to e-mail, which
covered awareness of policies and regulations
governing the business as well as the effectiveness of compliance and ethics training.
One survey was developed and scored by
our external training vendor, and we were
able to assess how we compare in our risk
profile to other similarly situated companies.
The other risk awareness survey was
developed internally and focused on location
specific risks.
To stay up to date on Ryder’s sustainability initiatives, visit the Sustainability
section of our online newsroom at http://newsroom.ryder.com.
Ryder System, Inc. Corporate Sustainability Report