Postal Service and Mailing Industry Mail-Related Recycling:
Accomplishments and Postal Opportunities--Interim Results
(20-DEC-07, GAO-08-348R).
In fiscal year 2006, the United States Postal Service (USPS) was
responsible for discarding about 6.1 billion pieces of
undeliverable-as-addressed Standard Mail (a class of bulk
advertising mail that includes catalogs and circulars). Some of
this mail was recycled, but a large quantity of it was treated as
waste and simply thrown away. Standard Mail is increasing in
prominence due, in part, to its importance to businesses,
nonprofits, and others as an effective way for (1) providing
consumers with information on their products and services and (2)
soliciting contributions from mail recipients. Some mail
recipients, however, view Standard Mail as an annoyance that also
poses privacy and environmental concerns. According to the
Environmental Protection Agency, Standard Mail accounted for
about 5.8 million tons, or 2.4 percent, of municipal solid waste
(otherwise known as trash or garbage) in 2005. Of this amount, 64
percent was placed in a landfill or incinerated, and 36 percent
was recycled. The 2006 Postal Accountability and Enhancement Act
required GAO to report--by December 20, 2007--on, among other
matters, USPS mail-related recycling accomplishments and
additional recycling opportunities. For mail-related recycling
accomplishments (initiatives), we expanded our work to include
the mailing industry and other stakeholders, as appropriate. For
this report on our interim results, our objectives were as
follows: (1) describe the recent initiatives of USPS, the mailing
industry, and other stakeholders with respect to four
mail-related recycling topics, and (2) convey
stakeholder-identified opportunities for USPS to engage in, or
encourage others to engage in, activities related to these
topics, as well as factors to consider--such as mission
compatibility, logistics, and cost--in deciding whether to adopt
these opportunities.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-08-348R
ACCNO: A79131
TITLE: Postal Service and Mailing Industry Mail-Related
Recycling: Accomplishments and Postal Opportunities--Interim
Results
DATE: 12/20/2007
SUBJECT: Environmental protection
Landfills
Mail delivery problems
Policy evaluation
Postal facilities
Postal service
Recycling
Waste disposal
Waste management
Mail processing operations
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GAO-08-348R
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* [2]GAO's Mission
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December 20, 2007
Congressional Requesters
Subject: Postal Service and Mailing Industry Mail-Related Recycling:
Accomplishments and Postal Opportunities--Interim Results
In fiscal year 2006, the United States Postal Service (USPS) was
responsible for discarding about 6.1 billion pieces of
undeliverable-as-addressed Standard Mail (a class of bulk advertising mail
that includes catalogs and circulars).^1 Some of this mail was recycled,
but a large quantity of it was treated as waste and simply thrown away.
Standard Mail is increasing in prominence due, in part, to its importance
to businesses, nonprofits, and others as an effective way for (1)
providing consumers with information on their products and services and
(2) soliciting contributions from mail recipients.^2 Some mail recipients,
however, view Standard Mail as an annoyance that also poses privacy and
environmental concerns. According to the Environmental Protection Agency,
Standard Mail accounted for about 5.8 million tons, or 2.4 percent, of
municipal solid waste (otherwise known as trash or garbage) in 2005. Of
this amount, 64 percent was placed in a landfill or incinerated, and 36
percent was recycled.
The 2006 Postal Accountability and Enhancement Act required GAO to
report--by December 20, 2007--on, among other matters, USPS mail-related
recycling accomplishments and additional recycling opportunities.^3 For
mail-related recycling accomplishments (initiatives), we expanded our work
to include the mailing industry and other stakeholders, as appropriate.
For this report on our interim results, our objectives were as follows:
^1Approximately 6 percent of all Standard Mail was
undeliverable-as-addressed.
^2In fiscal year 2005, Standard Mail surpassed First-Class Mail to become
the largest class of mail by volume.
^3Pub. L. No. 109-435 (Dec. 20, 2006).
o describe the recent initiatives of USPS, the mailing industry,
and other stakeholders with respect to four mail-related recycling
topics,^4 and
o convey stakeholder-identified opportunities for USPS to engage
in, or encourage others to engage in, activities related to these
topics, as well as factors to consider--such as mission
compatibility,^5 logistics, and cost--in deciding whether to adopt
these opportunities.
To accomplish our objectives we, among other activities, (1) interviewed a
wide range of USPS officials and stakeholders from about 40 other
organizations, including representatives from the mailing, paper
recycling, and environmental advocacy industries; (2) reviewed and
analyzed relevant documentation; (3) toured various facilities, including
USPS facilities in Baltimore and Philadelphia, a paper recycling facility,
and a printing facility; and (4) attended meetings of the "Greening the
Mail Task Force"--a committee convened in September 2007, comprised of
USPS, mailing industry, and other stakeholders, and focused on addressing
environmental issues regarding the mail. We primarily focused on Standard
Mail because of its increasing prominence in the mailstream, its
contribution to municipal solid waste, and the issues some mail recipients
have related to Standard Mail--as reflected in numerous "Do Not Mail"
state legislative initiatives. We conducted our work from April through
December 2007 in accordance with generally accepted government auditing
standards.
On December 6 and 7, 2007, we briefed your staff on the interim results of
our analysis. This report formally conveys the information provided in
those briefings (see Enclosure). In summary:
o USPS, the mailing industry, and other stakeholders have
undertaken numerous mail-related recycling initiatives, but the
extent to which these initiatives have been adopted is unknown.
USPS initiatives include (1) developing a policy and guidelines
for a nationwide mail-related recycling program, (2) centralizing
and attempting to expand its waste removal and recycling contracts
nationwide, (3) partnering with New York City to create a pilot
mail recycling program, (4) introducing new tools to reduce
undeliverable-as-addressed mail volumes and costs, and (5) forming
a "Greening the Mail Task Force" to, among other activities,
promote increased mail recycling. For their part, the mailing
industry and other stakeholders have initiated, among other
activities, a collaborative campaign to encourage mailers to print
recycling logos on magazines, envelopes, and other mailpieces; a
"Magazine PAPER Project" to provide technical assistance and
expertise to magazine companies interested in using
environmentally responsible paper; and a "Catalog Choice" Web site
to enable mail recipients to stop receiving unwanted catalogs.
Additionally, the Direct Marketing Association, whose members
generate the majority of Standard Mail volume, will require all
its members to adopt certain environmentally friendly practices by
June 2008. While numerous initiatives are under way, data are
limited on the extent to which these initiatives have been
adopted.
o Stakeholders identified opportunities for USPS to engage in, or
encourage others to engage in, mail-related recycling. For
example, according to stakeholders, USPS could (1) implement a
"mail-back" program in locations with limited access to municipal
paper recycling, (2) offer discounted postal rates for mailers
that use recycled content and/or other "green" attributes in their
mailpieces, and (3) take additional steps to educate mail
recipients about the recyclability of mail. However, several
factors--such as mission compatibility, logistics, and cost--would
need to be considered in deciding whether USPS should adopt these
or other opportunities.
^4The four mail-related recycling topics are: (1) recycling
undeliverable-as-addressed mail, mail discarded in USPS facilities, and
other mail-related materials, such as plastic wrappings and cardboard; (2)
reducing undeliverable and unwanted mail; (3) increasing the use of
recycled content or reusable materials in mail; and (4) promoting
increased recycling of mail-related materials.
^5USPS' mission is to provide affordable, high-quality universal postal
services on a self-financing basis.
This report is intended to meet our reporting time frames as mandated by
the 2006 Postal Accountability and Enhancement Act. We plan to issue a
more comprehensive report on this subject, including a qualitative
analysis of how each identified opportunity may influence USPS' costs and
revenues, in the spring of 2008.
We provided USPS with a draft of the enclosure, and we have incorporated
its technical comments, as appropriate.
- - - - -
We are sending copies of this report to the Postmaster General,
appropriate congressional committees, and other interested parties. We
also will make copies available to others upon request. In addition, the
report will be available at no charge on the GAO Web site at
http://www.gao.gov.
If you or your staff has any questions about this report, please contact
me at (202) 512-2834 or [email protected]. Contact points for our Offices
of Congressional Relations and Public Affairs may be found on the last
page of this report. Key contributions to this report were made by
Kathleen Turner, Assistant Director; Samer Abbas; Jeff Jensen; Daniel
Paepke; and Stephanie Purcell.
Katherine Siggerud
Director, Physical Infrastructure Issues
Enclosure
Congressional Requesters
The Honorable Joseph I. Lieberman
Chairman
The Honorable Susan M. Collins
Ranking Member
Committee on Homeland Security and Governmental Affairs
United States Senate
The Honorable Thomas R. Carper
Chairman
The Honorable Tom Coburn
Ranking Member
Subcommittee on Federal Financial Management, Government Information,
Federal Services, and International Security
Committee on Homeland Security and Governmental Affairs
United States Senate
The Honorable Henry A. Waxman
Chairman
The Honorable Tom Davis
Ranking Member
Committee on Oversight and Government Reform
House of Representatives
The Honorable Danny K. Davis
Chairman
The Honorable Kenny Marchant
Ranking Member
Subcommittee on Federal Workforce, Postal Service, and the District of
Columbia
Committee on Oversight and Government Reform
House of Representatives
Enclosure
Postal Service and Mailing Industry Mail-Related Recycling:
Accomplishments and Postal Opportunities:
GAO Briefing:
Dec. 6 and 7, 2007:
GAO Briefing - Interim Results:
Introduction:
Objectives:
Scope and Methodology:
Background:
Objective 1: Initiatives:
* Summary:
Objective 2: Postal Opportunities:
* Summary (Slide 25):
Introduction:
The United States Postal Service (USPS) delivered approximately 213
billion pieces of mail in fiscal year (FY) 2006. About 102 billion of
these pieces, or 48 percent, were sent as �Standard Mail� (a class of
bulk mail).
While USPS currently receives about half of its revenue from First-
Class Mail, Standard Mail became the largest class of mail (by volume)
in FY 2005 and is expected to grow in prominence in the future.
Standard Mail includes circulars, printed matter, catalogs,
newsletters, and direct mail and is the primary class used for mailing
advertisements.
Businesses, nonprofits, and others view Standard Mail as an important
medium for providing information on their products and services and for
soliciting contributions from mail recipients.
About 6 percent of Standard Mail (about 6.1 billion mailpieces) were
undeliverable-as-addressed (UAA) in FY 2006 and were therefore subject
to additional handling by USPS. The remainder of Standard Mail is
received, often read, and eventually discarded (and possibly recycled)
by mail recipients.
According to the Environmental Protection Agency (EPA), paper comprised
about one-third of municipal solid waste (otherwise known as trash or
garbage) in 2005. Standard Mail accounted for about 5.8 million tons,
or 2.4 percent, of municipal solid waste generated. Of this amount:
* 64 percent was discarded (i.e., placed in a landfill or incinerated),
and:
* 36 percent was recycled.
Numerous states proposed �Do Not Mail� legislation in 2007, largely to
limit the receipt of unwanted Standard Mail. Proponents of these
legislative initiatives cite the following three principal issues with
respect to Standard Mail:
* annoyance,
* environmental concerns, and:
* privacy and personal security.
Objectives:
The 2006 Postal Accountability and Enhancement Act (PAEA) required GAO
to report�by December 20, 2007�on, among other matters, USPS mail-
related recycling accomplishments and additional recycling
opportunities. For mail-related recycling accomplishments
(initiatives), we expanded our work to include the mailing industry and
other stakeholders, as appropriate. Consequently, this briefing will
* Describe recent USPS, mailing industry, and other initiatives
associated with the following four mail-related recycling topics: Topic
1: Recycling UAA mail, mail discarded at USPS facilities by mail
recipients (discarded lobby mail), and other mail-related materials,
such as plastic wrappings and cardboard. Topic 2: Reducing
undeliverable and unwanted mail. Topic 3: Increasing the use of
recycled content or reusable materials in mail.
Topic 4: Promoting increased recycling of mail-related materials.
* Convey stakeholder-identified opportunities for USPS to engage in, or
encourage others to engage in, activities in the above topics, as well
as factors to consider�such as mission compatibility,
logistics,[Footnote 6] and cost�in deciding whether to adopt the
opportunities.
Scope and Methodology:
To accomplish our objectives, we, among other activities, (1)
interviewed a wide range of USPS officials and stakeholders from about
40 other organizations, including representatives from the mailing,
paper recycling, and environmental advocacy industries; &PS reviewed
and analyzed relevant documentation; (3) toured various facilities,
including facilities in Baltimore and Philadelphia, a paper recycling
facility, and a printing facility; and (4) attended meetings of the
�Greening the Mail Task Force��a committee comprising USPS, mailing
industry, and other stakeholders to address environmental issues
regarding the mail.
We primarily focused on Standard Mail because of its increasing
prominence in the mailstream, its contribution to municipal solid
waste, and the issues some mail recipients have related to Standard
Mail�as reflected in numerous �Do Not Mail� state legislative
initiatives.
While efforts are under way to measure the overall environmental impact
attributable to the mailing industry, these efforts are not yet
completed. Consequently, our focus is on recycling as a means to
eliminate mail and mail-related materials from municipal solid waste.
We provided USPS with a draft of these slides and incorporated its
technical comments, as appropriate.
We conducted our work from April through December 2007 in accordance
with generally accepted government auditing standards.
Background: Scope of the Mailing Industry:
The mailing industry is large and includes the employees of:
* USPS;
* businesses, organizations, and others (mailers) that mail items
through USPS and that rely on the mail to maintain contact with their
customers;
* preparers of the mail, including printers and businesses that send
and/or receive mail on behalf of another party; and:
* vendors and suppliers of the hardware, software, and labor related to
mail, such as companies who help mailers improve the accuracy of their
mailing lists.
Background: Managing UAA Mail Is Costly:
USPS is responsible for managing waste from mail that (1) cannot be
delivered as addressed (i.e., UAA mail) and (2) mail recipients discard
at its facilities.
Since UAA mail cannot be delivered, it results in additional USPS
handling. Depending on the type (class) of UAA mail, USPS may need to
forward it to the addressee, return it to the sender, send it to a USPS
mail recovery center (for First-Class Mail), or�as is generally the
case for Standard Mail�treat it as waste.[Footnote 7]
A USPS study reported that UAA mail cost the agency more than $1.8
billion in FY 2004;[Footnote 8] 67 percent of these costs resulted from
forwarding mail to the intended recipient or returning it to the
sender.[Footnote 9]
* USPS estimates that creating and sending mail that cannot be
delivered costs businesses more than double this amount annually.
Background: USPS Offers Tools to Mailers to Decrease UAA Mail:
To qualify for Standard Mail rates, mailers must use, among other
things, tools for improving the quality of their address list�often
referred to as �list hygiene.� A sample of these tools includes the
following:
* Move Update�a series of tools mailers can use to update their mailing
lists. One such tool, the National Change-of-Address file, helps
mailers correct their customer address records following a customer�s
move by providing the customer�s new address.
* Address Element Correction�a tool that mailers can use to correct bad
addresses within their mailing lists.
* Delivery Point Validation�a tool that verifies the address on a
mailpiece using USPS� address database.
Objective 1: Initiatives:
Summary:
USPS, the mailing industry, and other stakeholders have undertaken
numerous mail-related recycling initiatives, but the extent to which
these initiatives have been adopted is unknown.
USPS has undertaken numerous initiatives (either independently or in
consultation with other stakeholders) to:
Topic 1: Recycle UAA mail, discarded lobby mail, and other mail-related
materials.
Topic 2: Reduce undeliverable and unwanted mail.
Topic 3: Increase the use of recycled content or reusable materials in
mail.
Topic 4: Promote increased recycling of mail-related materials.
The mailing industry and other stakeholders have also undertaken
initiatives in most of these areas.
While numerous initiatives are under way, data are limited on the
extent to which the initiatives have been adopted.
Topic 1: USPS Initiatives to Recycle UAA Mail, Discarded Lobby Mail,
and Other Mail-Related Materials:
Overall, while USPS has had a mail-related recycling program in place
since the early 1990s, the desire to (1) increase revenues from
recycling and (2) reduce waste removal costs caused USPS to develop a
policy and guidance needed to adopt a nationwide mail-related recycling
program. Specifically:
* USPS recently published its policy (a Management Instruction), a
business case evaluation, and a recycling implementation plan to
provide policies, guidance, and justification for implementing a mail-
related recycling program nationwide. USPS is also developing more
detailed guidelines for establishing mail-related recycling programs in
postal facilities.
- The Management Instruction encourages, but does not require, facility
managers to implement mail-related recycling programs, as feasible, in
their facilities.
* USPS also has identified and will report on its �Islands of
Excellence��a report highlighting successful USPS mail-related
recycling programs around the country.
- While the report�s release date is unknown, we expect USPS� Northeast
Area to be highlighted.[Footnote 10] This Area has been inducted into
the EPA�s �Waste Wise Hall of Fame� for its various recycling
initiatives.
* Further, USPS recently developed an evaluation tool (environmental
scorecard) to measure and rank environmental compliance throughout
USPS. As part of its evaluation, USPS measures revenue generated by
mail-related recycling activities in each of USPS� nine geographic
Areas.
Second, USPS is centralizing and attempting to increase its waste-
related contracts as follows:
* To increase recycling of UAA mail, discarded lobby mail, and other
mail-related materials (recyclable mail-related materials), in January
2006, USPS selected the Memphis, Tennessee, Category Management Center
(Memphis CMC) to negotiate and monitor all waste removal and recycling
contracts nationwide.[Footnote 11]
- The contracts (1) are intended to increase recycling revenues and
reduce costs associated with waste removal and (2) operate primarily
through two methods:
* backhauling which uses USPS� vehicles and labor to haul recyclable
mail-related materials to a centralized postal facility, or:
* milk runs which generally use non-USPS equipment and labor to pick up
recyclable mail-related my materials and deliver them to a central USPS
or recycling facility.
- For example, the CMC contract with Rand-Whitney for Pennsylvania
facilities established backhauling and milk runs to transport
recyclable mail-related materials from 457 postal facilities.
* According to Rand-Whitney, this increased USPS recycling revenue by
$177,000, reduced its waste disposal costs by $98200, and resulted in a
total savings of $275,000 from July 206 through June 2007.[Footnote 11]
* As of November 2007, Memphis CMC managed various waste removal and
recycling contracts for 13 percent of all USPS facilities. USPS could
not supply data on the extent to which the remaining 87 percent of USPS
facilities are recycling mail-related materials under separate
contractual arrangements.
* According to USPS officials, contracts managed by Memphis CMC
resulted in approximately $6.6 million in recycling revenues and waste
removal cost savings in FY 2007.
* In FY 2010, USPS hopes to generate $40 million in revenue from its
expanded use of centralized waste removal/recycling contracts.[Footnote
13]
Third, in May 2007, USPS partnered with New York City to create a pilot
program termed �New York City SOARs!� (Saving Of America�s Resources)
to, among other things:
* identify opportunities for establishing and expanding recycling
programs in USPS facilities in New York City, such as placing recycling
bins in postal facility lobbies, and:
* recognize practices that can be used in other USPS facilities.
Topic 2: USPS Initiatives to Reduce Undeliverable and Unwanted Mail:
USPS established a goal for reducing UAA mail costs by 50 percent
between FY 2004 and FY 2010.
* USPS set this goal in 2006, but clarified it in the summer of 2007.
As clarified, the goal applies to the cost�not the volume�of UAA mail.
* Costs associated with First-Class Mail will contribute more to the
cost reduction goal than those associated with Standard Mail. This is
because the majority (of UAA mail costs) is associated with forwarding
and returning UAA mail. First-Class UAA Mail is forwarded to the g
recipient or returned to the sender, while Standard Mail typically is
not.
USPS is developing performance measures to assess its progress in.
meeting this goal. However, in the interim, USPS is using increases in
the number of Address Change Service requests made by mailers as a
proxy for measuring its performance.[Footnote 14]
USPS recently modified Move Update�a tool mailers use to update their
mailing list addresses for individuals who have moved. For the first
time�effective November 2008�Standard Mailers will be required to use
Move Update to qualify for postage discounts. In addition, these
mailers will be required to increase the frequency of their updates
from 185 days to 95 days prior to each mailing.
USPS also is introducing Intelligent Mail Barcodes (Intelligent Mail)�a
tool that allows USPS and mailers to track a mailpiece and, in some
cases, determine its delivery status. Because mailers could use
delivery status information to identify UAA mailpieces and correct
their mailing lists, USPS officials believe Intelligent Mail likely
will reduce UAA mail volumes.
* USPS and Bank of America have signed a performance-based negotiated
service agreement�the first of its kind�to provide reduced postage
rates based, in part, on the bank�s UAA mail reduction.
- USPS plans to use Intelligent Mail to assess whether the bank has
reduced its UAA mail volumes.
- USPS expects the negotiated service agreement to help it evaluate the
effectiveness of Intelligent Mail before it is fully implemented in
2009.
USPS is using the Postal Automated Redirection System (PARS) to reduce
UAA mail costs. For mail recipients who have moved and filed a change
of address order with USPS, PARS, among other things, identifies UAA
mail when it is sorted and redirects it to the correct destination. By
rerouting a mailpiece to the correct address before it is sent
elsewhere, PARS reduces the number of mailpieces that are delivered to
incorrect addresses. Eliminating the need to forward mailpieces to
recipients and/or return them to the senders reduces the overall cost
of processing UAA mail.
Topic 3: USPS Initiatives to Increase the Use of Recycled Content or
Reusable Materials in Mail:
According to USPS officials, USPS uses 100 percent recycled paperboard
in its Priority Mail and Express Mail packages and envelopes.[Footnote
15] Additionally, according to postal officials, USPS' marketing
materials typically contain 10 percent postconsumer recycled
content.[Footnote 16]
A collaborative effort of USPS and mailing industry representatives,
including envelope manufacturers and other stakeholders, has improved
the recyclability of mail-related adhesives through the use of
specially engineered adhesives any advanced recycling equipment and
techniques.
USPS has approved the use of reusable mailpieces (e.g., two-way
envelopes that could reduce paper consumption) in the mailstream.
Topic 4: USPS Initiatives to Promote Increased Recycling of Mail-
Related Materials:
In January 2008, USPS plans to launch internal and external �green� Web
sites. The external site will promote mail recycling to the general
public, while the internal site is aimed at postal employees and will
contain USPS� environmental policy (the Management Instruction) and
other guidance.
In addition to its focus on recycling at USPS facilities, the �New York
SOARs!� pilot program also promotes recycling of mail-related materials
in non-USPS facilities such as businesses, retailers, and government
agencies.
USPS convened the �Greening the Mail Task Force� in September 2007 to
promote increased mail recycling, among other matters.
* The task force�which intends to operate as a long-standing committee
to address matters of mutual interest�includes USPS officials, mailing
industry representatives, and other stakeholders and has met twice as
of December 6, 2007.
* Task force members formed the following five subcommittees to address
initial environmental issues regarding the mail:
- education/awareness on sustainability and value of the mail;
- improve recyclability and source reduction;
- recycling collection of the mail;
- life cycle analysis of mail; and:
- standards/self-certification.
Topic 1: Mailing Industry and Other Stakeholder Initiatives to Recycle
UAA Mail, Discarded Lobby Mail, and Other Mail-Related Materials:
Because USPS has responsibility for handling UAA mail and recycling
mail-related materials, the mailing industry and other stakeholders do
not have initiatives in Topic 1.
Topics 2, 3, and 4: Mailing Industry and Other Stakeholder Initiatives
The Direct Marketing Association (DMA), whose members generate about 80
percent of Standard Mail volume, has two initiatives under way that
address three of the four mail-related recycling topics (reducing
undeliverable and unwanted mail, increasing the use of recycled content
or reusable materials in mail, and promoting increased recycling of
mail-related materials). The initiatives involve DMA�s development of:
an �Environmental Resolution� to improve its members� business
practices and, more particularly, the establishment of a set of 15
environmental commitments (the �Green 15�) relating to (1) paper
procurement and use, (2) list hygiene and data management, (3) mail
design and production, (4) packaging, and (5) recycling and pollution.
* The �Green 15� was established in May 2007 and requires DMA members
to adopt �green� practices, such as the use of recycled content and
responsibly sourced virgin fiber (certified paper), as appropriate, by
June 2008.
* DMA offers guidance to help members implement these practices.
* DMA does not know to what extent these practices have been adopted;
however, it intends to develop enforcement measures and use its ethics
policy group to regulate compliance when the �Green 15� becomes
mandatory in June 2008.
a Web-based tool (the Environmental Tool and Optional Policy Generator)
to help members develop their environmental policies and practices.
* Members also can use the tool to meet the standards and practices set
forth in DMA�s �Environmental Resolution� and �Green 15.�
* DMA does not collect data on the extent to which its members use the
Web-based tool.
Topic 2: Mailing Industry and Other Stakeholder Initiatives to Reduce
Undeliverable and Unwanted Mail:
DMA initiatives:
Mail Preference Service (Service)�Developed in 1972, the Service allows
individuals to remove their names from all DMA member mailing lists for
a $1 fee.
* In early 2008, DMA plans to improve the Service by enabling mail
recipients to choose companies (DMA members) from which they no longer
wish to receive mail. Presently, the Service is an �all or nothing� opt-
out program.
* As of November 2006, 4.5 million people had registered for the
Service.
* DMA currently requires members to update their mailing lists against
the Service on a quarterly basis. As part of the �Green 15,� beginning
in June 2008, DMA will require its members�on a monthly basis�to
eliminate individuals who have opted out of member mailings.
�Commitment to Consumer Choice��Beginning in October 2008, DMA members
must provide a notice on all their advertising mailpieces informing
recipients that they can opt-out of future mailings.
�Deceased Do Not Contact� list�DMA�s Web site provides mail recipients
with the opportunity to register the names of deceased individuals for
removal from DMA members� mailing lists.
Other selected mailing industry and stakeholder initiatives:
The 2007 National Postal Forum included a symposium on address quality
that highlighted techniques mailers can use to improve address quality
and reduce UAA mail.
In 2006 and 2007, the Mailers� Technical Advisory Committee published
reports that focused on (1) improving addressing techniques and (2)
developing a means to certify the accuracy of mailing lists purchased
by mailers.
* The committee is a collaboration of USPS and mailing industry
officials which, like the �Greening the Mail Task Force,� uses work
groups to study issues of mutual interest.
Initiated in October 2007, the �Catalog Choice� Web site enables mail
recipients to stop receiving unwanted catalogs. As of December 3, 2007,
about 255,000 mail recipients had registered, opting out of over 3.1
million catalogs.
* Catalog Choice is a project of the Ecology Center and is endorsed by
the National Wildlife Federation and the Natural Resources Defense
Council. Dec. 6 and 7, 2007 GAO Briefing - Interim Results 22
Topic 3: Mailing Industry and Other Stakeholder Initiatives to Increase
the Use of Recycled Content or Reusable Materials in Mail:
DMA initiatives:
As part of the �Green 15,� mailers will be required to purchase paper
with postconsumer recycled content, where appropriate.
The Environmental Tool and Optional Policy Generator encourages
mailers, among other things, to purchase paper containing postconsumer
recycled content. DMA does not collect data on the extent to which its
members (1) use this tool or (2) purchase paper containing postconsumer
recycled content.
Other selected mailing industry and stakeholder initiatives:
A major catalog retail company partnered with Environmental Defense to
use paper with a minimum of 10 percent postconsumer recycled content.
A major envelope manufacturing company offers 10 �green� attributes in
envelopes (e.g., recycled content, soy- based inks, and chlorine-free
bleaches).
* According to a company official, 80 percent of its envelope sales
include at least one �green� attribute.
�The Magazine PAPER Project,� an initiative of Co-op America, provides
technical assistance and expertise to magazines interested in using
paper containing postconsumer recycled content and certified
paper.[Footnote 17]
* According to Co-op America�s Web site, as of December 6, 2007, 114
magazines had committed to using �environmentally responsible paper�
(�Magazine Paper Heroes�).
Topic 4: Mailing Industry and Other Stakeholder Initiatives to Promote
Increased Recycling of Mail-Related Materials:
DMA initiatives:
* The �Recycle Please� campaign�launched in collaboration with the
Envelope Manufacturers Association and the Magazine Publishers of
America�encourages mailers to print recycling logos on mailpieces.
- The extent to which mailers currently participate in this program is
unknown. However, DMA members will be required to participate as part
of the �Green 15� in June 2008.
Other selected mailing industry and stakeholder initiatives:
* The �Recycling Magazines is Excellent� program disseminates
advertisements and other promotional materials, such as signage on city
buses, to inform consumers that magazines are recyclable.
- The program is a collaboration between the National Recycling
Coalition, Verso Paper, and Time, Inc, among others, and has been
implemented in four pilot areas (Boston, MA; Prince George�s County,
MD; Portland, OR; and Milwaukee, WI).
- In Boston and Prince George�s County�the two locations where the
pilot has been completed�the program increased magazine recycling by
22.8 percent and 10.8 percent, respectively.
* The American Forest and Paper Association (AF&PA) is partnering with
other organizations to promote the recycling of all paper, including
mail.
- AF&PA set a goal of recycling 55 percent of the paper consumed in the
United States by 2012.
Objective 2: Opportunities:
Summary:
Stakeholders identified numerous opportunities for USPS to engage in,
or encourage others to engage in, activities associated with the four
mail-related recycling topics. However, several factors�such as mission
compatibility, logistics, and cost�would need to be considered in
deciding whether to adopt these opportunities. Specifically,
stakeholders indicated that USPS could:
Increase recycling of UAA mail, discarded lobby mail, and other mail-
related materials by:
* including postal Districts in its evaluation of environmental
compliance and offering appropriate incentives,
* implementing a �mail-back� program, and:
* coordinating with the paper recycling industry to, among other
things, identify recycling obstacles and transportation opportunities.
Reduce UAA and unwanted mail by:
* considering additional performance-based negotiated service
agreements.
Increase use of recycled content or reusable materials in mailings by:
* considering initiating a discounted postal rate for mailers that use
paper with �green� attributes.
Promote increased recycling of mail by:
* taking additional steps to educate mail recipients about the
recyclability of mail.
Topic 1: USPS Opportunities to Recycle UAA Mail, Discarded Lobby Mail,
and Other Mail-Related Materials:
Opportunity: To expand existing mail-related recycling programs and to
initiate new efforts, USPS could include postal Districts�in addition
to postal Areas�in its evaluation of environmental compliance as it
relates to mail-related recycling activities. USPS could also consider
offering appropriate incentives to accomplish these objectives.
Factors to consider:
* Mission compatibility:
- USPS must balance recycling efforts with its mission of providing
universal access to postal services.
- USPS employees may not perceive mail recycling as compatible with
their postal duties.
* Logistics:
- Some postal facilities lack space for storing UAA mail, discarded
lobby mail, and other mail-related materials intended for recycling.
- Backhauling may be difficult in rural areas where central collection
facilities may not be geographically convenient.
* Cost:
- Revenue from recycling may not cover program costs throughout all
USPS Districts.
Opportunity: To provide mail recycling opportunities to mail recipients
who live in locations where access to municipal paper recycling is
limited,[Footnote 18] USPS could implement a program to enable mail
recipients to send (�mail-back�) their discarded mail to a central
facility using USPS� delivery network.
* Mail recipients could be provided with preaddressed packages to send
their discarded mail� similar t~existing programs (e.g., inkjet
cartridges, cellular phones, and unused prescription drugs) to
predetermined location for recycling.
* If implemented in states with pending �Do Not Mail� legislative
initiatives, a mail-back program of this type could reduce the
perceived -need for such legislation.
Factors to consider:
* Mission compatibility:
- If logistic and/or cost issues present difficulties, a mail-back
program could interfere with USPS' mission of providing universal
access to postal services.
* Logistics:
- USPS would face a number of challenges in developing mechanisms for
collecting and transporting the returned mail through -is delivery,
retail, and/or processing networks.
* Cost:
- The costs of implementing such a program are uncertain. In existing
mail-back programs for other products, the manufacturers subsidize
program costs.
Opportunity: To address the shortage of recycled content for use in
producing recycled paper, USPS could coordinate with the paper
recycling industry to (1) identify�and, possibly, resolve�any existing
obstacles to the recycling of mail-related materials and (2) determine
whether these parties could assist USPS in transporting mail-related
materials to paper recycling facilities.
* Representatives of the paper recycling industry stated that mail-
related adhesives can pose recycling problems depending on the
technology used. According to officials at the paper recycling facility
we visited, such adhesives continue to pose recycling
problems.[Footnote 19]
* AF&PA, for example, is interested in collaborating with USPS to
increase mail-related recycling to help accomplish its goal of
recovering (i.e., preventing landfill disposal or incineration) 55
percent of paper consumed in the United States by 2012.
Factors to consider:
* Mission compatibility:
- USPS could be drawn into a contentious debate on the merits of
various forest certification programs offered by the paper and paper
recycling industries.[Footnote 20]
* Logistics:
- USPS would need to develop an implementation framework, possibly
including an approach to sharing costs and revenues with the private
sector.
* Cost:
- The cost of resolving obstacles to the recycling of mail-related
materials, including the staff resources involved in collaborating, is
unknown.
Topic 2: USPS Opportunity to Reduce Undeliverable and Unwanted Mail
Opportunity: To reduce UAA mail, USPS could consider additional
performance-based negotiated service agreements, similar to the
agreement with Bank of America.
Factors to consider:
* Mission compatibility:
- No factors identified.
* Logistics:
- Implementing additional agreements can be complex and requires
approval by the Postal Regulatory Commission and USPS� Board of
Governors.
* Cost:
- No factors identified.
* Other:
- Feasibility�In view of concerns expressed by the commission,[Footnote
21] USPS (and, possibly, mailers) may be reluctant to pursue additional
agreements.
Topic 3: USPS Opportunity to Increase the Use of Recycled Content or
Reusable Materials in Mail Opportunity: To encourage the use of
recycled content or reusable materials in mail, USPS could consider
creating a discounted postal rate (�Green Rate�) for mailers that use
recycled content, certified paper, and/or other �green� attributes in
their mailpieces.
Factors to consider:
* Mission compatibility:
- How will USPS determine which �green� attributes to include in a
�Green Rate�? Is doing so beyond its mission?
- The inclusion of certified rain a �Green Rate� could draw USPS into a
contentious debate on the merits of various forest certification
programs.
* Logistics:
- USPS would need to develop mechanisms to monitor and enforce a �Green
Rate.�
* Cost:
- By itself, a �Green Rate� may decrease USPS net revenues. Therefore,
USPS may need to seek other revenues, including a rate increase for
other mail.
- Establishing, monitoring, and enforcing a �Green Rate� likely would
require additional staff and other resources.
Topic 4: USPS Opportunity to Promote Increased Recycling of Mail-
Related Materials:
Opportunity: Stakeholders routinely informed us that mail recipients
are often unaware that mail can be recycled. To increase the public�s
awareness and promote recycling of discarded mail, USPS could take
additional steps to educate mail recipients.
* Specifically, USPS could collaborate on the ongoing initiatives of
the mailing, paper recycling, and environmental advocacy industries,
and other stakeholders, as appropriate, including the following:
- �Recycle Please,�
- "Recycling Magazines is Excellent,�
- �The Magazine PAPER Project,� and:
- An ongoing initiative by the National Recycling Coalition to improve
and update industry-wide recycling logos and develop a logo
specifically for mail recycling.
* Furthermore, USPS could take unilateral actions to encourage mail
recipients to recycle their mail, wherever possible. For example, USPS
could:
- send postcards to mail recipients informing them that mail can be
recycled or composted,
- include a mail-related recycling message in its postmarks and/or
stamps, and:
- develop signage promoting mail-related recycling for display in its
facilities.
Factors to consider:
* Mission compatibility:
- No factors identified.
* Logistics:
- As previously discussed, one-third of U.S. communities lack access to
paper recycling.
* Cost:
- Collaboration may require additional staff and other resources.
- The costs to conduct an advertising campaign or develop signage,
stamps, and/or suitable postmarks are unknown.
[End of section]
Footnotes:
[6] Logistical factors include USPS� management of the movement,
storage, and handling of mail.
[7] While undeliverable Standard Mail is generally not forwarded to the
addressee, mailers can pay USPS an additional fee to have their
undeliverable Standard Mail returned to them.
[8] This represented about 2.6 percent of USPS� total expenses ($69.0
billion) in FY 2004.
[9] The remaining 33 percent of costs were associated with waste
processing ($270 million � 15 percent), address correction ($187
million � 10 percent), change-of-address form processing ($132 million
� 7 percent), and administration and support ($24 million � 1 percent).
[10] USPS divides the country into nine geographic Areas and 80 smaller
organizational units called �Districts.� Each postal facility reports
to its District, which in turn reports to its Area.
[11] USPS received a White House �Closing the Circle� award in 2007 for
the Memphis CMC�s contracting activities in Pennsylvania and
Mississippi.
[12] Once recyclables are no longer thrown out as waste, USPS generates
less waste, thereby reducing its disposal costs. Rand Whitney received
25 percent of the total savings.
[13] This figure does not include savings associated with reduced waste
removal costs.
[14] This service is available to mailers who, for a fee, can sign up
to receive electronic notices when their mailpieces are UAA. Depending
on the type of service the mailer chooses to use (e.g., �Address
Service Requested�), the electronic notice (1) eliminates USPS�
obligation to either forward a First-Class Mail mailpiece to the
recipient or return it to the mailer and (2) informs Standard Mailers
when a mailpiece is UAA.
[15] USPS� commitment to incorporate environmental concerns in these
products resulted in a �Cradle to Cradle� certification from a
consulting firm that helps clients create �ecologically intelligent
products.�
[16] EPA defines postconsumer recycled content as (1) paper fiber that
has passed through its end-usage as a consumer item or (2) paper fiber
that is recovered from municipal solid waste.
[17] Certified paper is paper that originates from certified forests.
Forest certification programs are designed to recognize and promote
environmentally-responsible forestry.
[18] According to a 2006 study referenced by AF&PA, 31 percent of U.S.
communities lack access to paper recycling.
[19] Although some mail-related adhesives pose problems for this plant,
officials stated that they would continue to accept USPS UAA mail.
[20] These programs are designed to recognize and promote
environmentally-responsible forestry.
[21] In its decision to approve the agreement, the commission reported
that while it endorses the concept of the agreement, some of the data
that USPS intends to use to determine cost savings are outdated and
unreliable. Using more recent data, the commission estimated that the
agreement could result in increased costs to USPS.
(542135)
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