Ryder System, Inc.

Corporate

Sustainability

Report

Published December 2011

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Ryder System, Inc. Corporate Sustainability Report

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

Our Corporate Responsibility Report, first issued in 2008, covered Ryder’s historyand dedication to corporate responsibility. We are pleased to follow up with this CorporateSustainability 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 LogisticsMagazine Green Supply Chain Partner forthe 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 introducenew vehicle technologies that provide our customers with energy-efficient, low-emissionsolutions. We collaborated with equipment manufacturers, government agencies, andcustomers to launch a first-of-its-kind natural gas project for commercial heavy dutytrucks in Southern California. We continue to invest in innovative technologies to ensuredriver safety. Through the Ryder Charitable Foundation, we enhanced our national givingstrategy by partnering with the American Red Cross as a member of its Annual DisasterGiving Program. Our employees also continue to give their personal time as volunteersin their communities. These are just a few examples of our commitment to corporateresponsibility and sustainability.

Looking forward, our sustainability strategy includes continuing our progress anddriving 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;

Dear friends,

A Message from Greg Swienton, Chairman and Chief Executive Officer

Ryder was founded byJim Ryder in 1933

Ryder signed its first leasecustomer in 1938

2

Greg SwientonChairman and Chief Executive OfficerRyder System, Inc.

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 engagementwill lead to exceptional performance. We go beyond what is required to ensure that wework toward the greatest good for our key stakeholders: customers, employees, suppliers,and investors. Our actions and investments continue to demonstrate our commitmentto achieving results the right way, while also serving as involved members of thecommunities where we live and work.

As a leading provider of transportation and logistics solutions, our stakeholdersexpect us to be stewards of real-world efficiency and sustainability. We take thisexpectation seriously in all that we do and we will continue to deliver on our promiseswith 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.

In 1945, Ryder signed its first Dedicated Contract Carriage account

3

Progress at a Glance

4

Improved Carbon Disclosure Project score each reporting year and expanded disclosures to includeScope 1, 2, and 3 emissions.

Significantly expanded carrier participation in theU.S. EPA SmartWay®Transport Program.

Signed agreement to implement first-of-its-kind natural gas project for commercial heavy duty trucklease and rental fleets in Southern California. Expanded natural gas vehicle capability to Arizonaand Michigan in 2011.

Reduced energy and water consumption in U.S.and Canada operations.

Ranked as a top U.S. company for security practicesin the Transportation, Logistics, Supply Chain, andWarehousing industry sector in the 2009 and 2010Security Benchmarking Survey, published in SecurityMagazine.

Completed C-TPAT border security certificationfor Ryder Supply Chain Solutions Asia.

Conducted over 192,000 online safety training lessons.

Launched a Sleep Apnea Wellness program to reducethe effects of fatigue among Ryder drivers with thiscondition.

Continued to leverage cutting-edge onboard vehicletechnologies to reduce collisions and improve safedriving behavior.

Selected the American Red Cross as Ryder’s nationalcharitable partner and became a member of the Annual Disaster Giving Program.

Redesigned leadership competency model to be thebasis for decision making related to hiring, performanceassessments and professional development.

Launched a Diversity & Inclusion Council, MentoringProgram, and Diversity Scorecard linking executivepay to diversity goals.

Recognized by GovernanceMetrics International(GMI) in 2010 as one of The 20 Most ResponsibleCompanies. Received GMI’s highest overall rating, aperfect 10, for corporate governance and corporatebehavior.

Created the role of a strong lead independent directorto facilitate and strengthen Ryder’s Board of Directors’independent oversight of the company and to upholdeffective governance standards.

Appointed a Chief Privacy Officer to oversee andmanage the company’s data privacy and securityprocesses and procedures.

Conducted more than 12,000 online compliancetraining lessons around the world in 2009 and 2010.

Environment

Safety & Security

People & Community

Governance, Ethics & Compliance

Continue to optimize the transportation and supplychain networks of our customers by using the mostefficient modes and latest technologies.

Continue to reduce emissions, energy, and waterconsumption for Ryder owned and operated facilitiesand vehicles.

Continue to identify opportunities to replicate Ryder’snatural gas project model in other municipalitiesacross the U.S.

Launch and implement updated Security ManagementFundamentals training for supply chain employees.

Continue to support increased collaboration betweengovernment agencies and the private sector to improve transportation security.

Implement updated safety processes and trainingthroughout all maintenance locations servicing alternative fuel vehicles.

Increase total employee volunteer engagement with the American Red Cross and other charitableorganizations in the U.S.

Continue to identify critical talent gaps and implement programs, processes, and technologies totrack 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 toimprove access for hourly employees.

Evaluate ethics and compliance programs to benchmarkagainst best practices and to maximize effectiveness.

Focus Area Accomplishments Looking Forward

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Ryder pioneered the practice of preventivefleet maintenance in 1949 by opening service locations to keep fleets moving

Ryder System, Inc. incorporates as apublic company in 1955 and is listed onthe New York Stock Exchange in 1960

Our Mission:Ryder is committed tobeing the leadingprovider of outsourced transportation and logistics solutions in ourtarget markets. We strive to provide exceptional service to our customers andachieve superiorresults for ourshareholdersthrough our guiding principlesand core values.

Corporate Overview

Ryder System, Inc. is a FORTUNE® 500 provider of leading-edge transportation, logistics, and supply chain management solutions. Ryder'sproduct offerings include: Fleet Management Solutions, which providesleasing, rental and programmed maintenance of trucks, tractors and trailersto commercial customers; Supply Chain Solutions, which manages themovement of materials and related information from the acquisition of rawmaterials to the delivery of finished products to end-users; and DedicatedContract Carriage, which provides a turn-key transportation service thatincludes vehicles, drivers, routing, and scheduling. Ryder serves customerneeds throughout North America, Europe and Asia.

Our Guiding Principles

4 Our commitment to enhancing long-term value is achieved by operating the business profitably, responsibly, and ethically.

4 Our success depends on our ability to deliver consistent superior service and solutions while being innovative and responsive to customers’ needs.

4 Our people provide us with thecompetitive edge, and through

our commitment to training and development, as well as diversity, we expect to have the best and most passionate people in the industry.

4 Our high ethical standards also ensure that we operate the business in a safe and environ-mentally responsible manner.

5

Our Core Values

4 Integrity ensures we achieve thedesired 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

4 Be recognized by customers as the premier provider of out-sourced 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.

Headquarters Miami, Florida, USA

Total Employees 25,900*

North America 24,600

Europe 1,000

Asia 300

Number of 810 fleet managementOperations/Locations operating locations in U.S.,

Canada, UK, GermanyOver 28 million square feet of warehouse space (in North America and Asia) leased and operated

Total Vehicles Maintained 182,100

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 624Contract Carriage

Ticker Symbol R

Common Stock Exchange New York Stock ExchangeListings

Component of Dow Jones Transportation AverageStandard & Poor’s 500 Index

* As of December 31, 2010

Global Organizational Profile

6

In 1957 Ryder goes international byexpanding truck leasing and rentaloperations into Canada

Becoming one of the first transportation companies to purchase a UNIVAC computer inthe 1950s, Ryder ushers in the computer age

Fleet Management

Solutions (FMS)FMS provides full service leasing, contract

maintenance, contract-related maintenance,and commercial rental of trucks, tractorsand trailers to customers principally in theU.S., Canada and the UK. Through theFMS business, Ryder provides customerswith flexible solutions designed to improvetheir competitive positions by allowingthem to focus on their core business, lowertheir costs, and redirect capital to other partsof their business. Our solutions also enablecustomers to improve the uptime and reliabilityof their fleets, thereby minimizing fleet-related business disruptions and risks.

Ryder's FMS product offering is comprisedprimarily of contractual-based full serviceleasing and contract maintenance services.The company also offers transactional fleetsolutions including commercial truck rental,maintenance services, and value-added fleetsupport services such as insurance, vehicleadministration, and fuel services. In addition,we provide our customers with access to alarge selection of used trucks, tractors, andtrailers through our used vehicle sales program.

Supply Chain Solutions (SCS)

Ryder’s SCS business offers a broadrange of innovative lead logistics managementservices that are designed to optimize acustomer's global supply chain by directingthe movement of materials, funds, and information from the acquisition of rawmaterials to the delivery of the finishedproduct to the end-user. The SCS productoffering is organized into three categories:professional services (strategy, design, andengineering), distribution operations(warehousing), and transportation solutions.

Ryder’s solutions help companies dramatically improve service and speed tomarket. Our deep expertise in key industryverticals paired with unprecedented operational excellence help our customersmeet their unique challenges and realizemeasurable ROI.

Dedicated Contract Carriage (DCC)

Ryder’s DCC solution combines theequipment, maintenance, and administrativeservices of a full service lease with driversand additional services to provide a customer with a dedicated transportationsolution that is designed to increase theircompetitive 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'sDCC solution offers a high degree of specialization to meet the needs of customers with high service requirementssuch as tight delivery windows, high-valueor time-sensitive freight, closed-loop distribution, and multi-stop shipments.

Business Segments

7

Ryder expands operationsto the United Kingdom in 1971

Ryder is recognized as a leader in transportation by Business Week in 1959

Security magazine named Ryder’s headof Corporate Security as one of the industry's "Most Influential" in 2011

Click Here to Learn More 4

Ryder implements North America’s first large scale Just-In-Time supply delivery system supporting a new auto plant in Kentucky in 1989

Ryder’s Business Model Transformation

During the past decade, Ryder has madesubstantial changes to our business modelthat have helped position the company forlong-term, sustainable, profitable growth.Our contractual based business has increasedfrom 43% of revenue in the early 1990s to90% currently, reducing our sensitivity toshorter-term, cyclical business trends.Foundational process changes, such as centralized asset management, improvedcontract terms and enforcement, vehicleprocurement/disposition processes, and appropriate metrics and incentives haveprovided significant savings to our coststructure. Enhanced and focused sales andmarketing capabilities enable us to betterleverage long-term outsourcing trends. Our strong financial foundation and accessto capital provide us with the ability tosupport organic growth, acquisitions, andstrategic investments. The strength of thenew business model also enables Ryder todeliver increased and positive free cash flowover an economic cycle.

Sustainable Implications We believe that our business objectives

and sustainability goals are not mutuallyexclusive. Companies select Ryder so thatthey can benefit from best practices thatimprove the efficiency and cost effectivenessof their operations. Many of these practicesalso present opportunities to make a positive

impact on a business’ carbon footprint. The solutions we implement for customersare part of an overall strategy to improvetransportation efficiencies. Examples ofthese solutions include preventive vehiclemaintenance, technologies to optimize routesand reduce idling, and driver training techniques to reduce fuel consumption, aswell as alternative fuel options and logisticsengineering strategies that optimize distri-bution networks to reduce miles. These activities and solutions all have associatedenvironmental and economic benefits.

Marketplace OpportunitiesThe transportation and logistics markets

present significant growth opportunities,and Ryder is increasingly well positioned tobenefit from major trends currently drivingand shaping the future of our industry.These include: increasing complexity of vehicle technology and maintenance requirements; new regulatory and emissionsstandards; tighter capital availability; thecontinuous need of manufacturers to optimizeglobal sourcing and supply chain networks;and increased demand for timely, technology-driven information tools related to businesses’transportation functions. In addition, as a resultof the most recent economic downturn,many companies delayed fleet replacementdecisions, resulting in pent-up marketplacedemand to update a North American fleetthat is currently the oldest in recent history.

These trends create an environment for

meaningful growth in our business, as wellas opportunities for employees to growtheir careers and share in the rewards ofRyder’s success over time.

Now more than ever, our largest marketplace opportunities for growth alsopresent us with the greatest opportunity topositively impact the overall sustainabilityof the transportation industry. The addressableprivate fleet market in the U.S. and Canadarepresents 5 million vehicles. Those businessesthat do not outsource transportation operations represent 4.2 of those 5 millionvehicles on the road. Many of these privatefleets are owned and operated by smallbusinesses that do not have the infrastructure,manpower, tools, and technologies to operatetheir fleets at optimum efficiency. Nor dothey have the expertise to measure andtrack the environmental impact of theirtransportation operations.

These factors create a compelling reasonfor more companies to outsource trans-portation and supply chain management toan experienced provider. At Ryder, we arenot only well positioned to meet this growingdemand, but we can do so while having apositive impact on the environment. Due tothe nature of our business, we provide thehighest-quality, cost-effective, outsourcedtransportation and logistics solutions and areable to extend the benefits of our environ-mental expertise, practices, and infrastructureto those businesses that might otherwisenot have access to this level of resources.

Strategy and Analysis

8

Business StrategyOur Fleet Management Solutions

business strategy is to be the leading leasingand maintenance service provider for light,medium, and heavy duty commercial vehicles. We will accomplish this throughseveral goals and priorities, including:4 Improving customer retention levels.4 Implementing sales growth initiatives

for our contractual product offeringswith a focus on the conversion of privatefleets and commercial rental customers to full service lease customers.

4 Optimizing asset utilization and management.

Acquisitions play an important role inenhancing our growth strategies in theU.S., Canada, and the UK. From 2008through 2011, we completed seven FMSacquisitions through which we acquired vehicles and contractual customers andthen applied our business processes andstandards across the new operations.

Our Supply Chain Solutions businessstrategy is to offer our customers functionalexecution and proactive solutions based onour 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, whollyowned subsidiary of SUPERVALU, expanded our Supply Chain Solutions offering with firmly established, comprehensivefood, beverage, and CPG capabilities.

Our Dedicated Contract Carriage businessstrategy focuses on customers who requirespecialized 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.

Ryder selected by Inbound Logisticsmagazine readers as a Top 3PL in 2011

Click Here to Learn More 4

Strategy and Analysis

9

Toyota recognized Ryder as its2010 Carrier of the Year

Click Here to Learn More 4

RyderSystem,Inc.

Revenue

Earnings from continuing operationsDotted bars represent comparable earningsfrom continuing operations (1)

$5,999

$244

$252

$267$258

$95$90

$229

$247

$221

Earnings per diluted common share from continuing operationsDotted bars represent comparable earnings per sharefrom continuing operations (1)

$3.94

$4.19

$4.68$4.51

$1.70$1.62

$3.53

$3.99

$3.41

$5,599

$6,136

$6,363

$248

$4.13

$4,887

$5,136

1 Represents a non-GAAP financial measure – for details of this measure and a reconciliation to the GAAP measure, please refer to “Overview”, “FinancialResources 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.

Dollars in millions 2010 2009 2008

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 operationsbefore income taxes(1) $ 189 $ 157 $ 432

Earnings from cont. operations $ 125 $ 90 $ 258

Comparable earningsfrom continuing operations (1) $ 117 $ 95 $ 267

Net earnings $ 118 $ 62 $ 200

Dollars in millions

Financial Data:

Total assets $6,652 $6,260 $6,690

Total debt $2,747 $2,498 $2,863

Shareholders’ equity $1,404 $ 1,427 $ 1,345

Return on average shareholders’ equity 8.4% 4.4% 11.2%

Adjusted return on average capital(1) 4.8% 4.1% 7.3%

Debt to equity 196% 175% 213%

Free cash flow (1) $ 258 $ 614 $ 341

Capital expenditures paid $ 1,070 $ 652 $ 1,230

Per Common Share Data:

Earnings from continuing operations – Diluted $ 2.37 $ 1.62 $ 4.51

Comparable earnings from continuing operations –Diluted(1) $ 2.22 $ 1.70 $ 4.68

Net earnings – Diluted $ 2.25 $ 1 . 1 1 $ 3.50

Book value $ 27.44 $26.71 $ 24.17

Cash dividends $ 1.04 $ 0.96 $ 0.92

Other Data:

Common shareholders of record 9,192 9,482 9,713

Common shares outstanding 51,174,757 53,419,721 55,658,059

Number of vehicles managed(2) 182,100 186,800 198,900

Number of employees 25,900 22,900 28,000

$117$125

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06

07

08

09

10

$2.22$2.37

05

06

07

08

09

10

In millions

In millions

Per Share

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06

07

08

09

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Financial Highlights

his report highlights Ryder’s progress towardsimproving the communities and environmentswhere 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 isconsistent with the performance indicators providedby the Global Reporting Initiative versions G3and G3.1. Information on GRI can be found atwww.globalreporting.org.

We believe that the information presented here isan accurate and fair representation of our corporatesustainability programs and results. This report has beenreviewed and approved by Ryder senior management.

Questions and comments about this report canbe sent to communications@Ryder.com.

Ryder named 2011 Best ServiceLogistics Supplier by Cisco

Click Here to Learn More 4

Logistics Management magazinerecognized Ryder with a 2011Quest for Quality award

Click Here to Learn More 4

About This Report

11

Ryder Europe is specifying LED rear lightclusters on all new trucks, which have alifetime rating of 100,000 hours comparedto 800 hours for regular bulbs

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 forcommercial heavy duty truck fleets inSouthern California, deploying 202 natural gas vehicles

Click Here to Learn More 4

12

Expanded EPA SmartWay® Transportationpartnership efforts by providing customerswith detailed information on total carbonfootprint and CO2 per ton/miles

Our environmentalstrategy is focused on

reducing emissions and

waste, as well as identify-

ing alternative vehicle

technologies and fuels

that can be cost-effec-

tively deployed in our

customers’ operations.

ENVIRONMENTAL POLICIESAND MANAGEMENT SYSTEMS

Environmental management plays a keyrole in business planning at all levels of Ryder’sorganization. This ensures that environmentalpolicies are fully integrated into our businessprocess. In 1991, before “green” became abusiness buzzword, Ryder adopted a corporateEnvironmental Policy and implementedspecific management programs designed tocreate sustainable solutions and value for ourcompany and our customers. This Policy,which is updated periodically to reflectchanges in our business, established baselinestandards for all of our businesses worldwideand serves as the cornerstone of our overallenvironmental philosophy of continuousimprovement. To support employees andmanagers in meeting environmental goals, anEnvironmental Policy and Control Manualhas been developed and distributed to our operations worldwide. This manual definescorporate policies and provides step-by-stepguidance for implementing environmentalmanagement practices.

Our commitment to developing responsible environmental practices is sharedby employees at all levels of the company.

Ryder’s Group Director of EnvironmentalServices and Sustainability reports throughthe company’s Chief Legal Officer. Withineach operating business unit, environmentaloversight responsibilities are assigned to facilityand area operating managers as part of theirregular duties. As Environmental andEmergency Coordinators, these front linemanagers are responsible for employee training,implementing policies, and environmentalcompliance at their location.

At least once per year, the CorporateGovernance and Nominating Committeeof our Board meets with our Environmental

Services department to discuss environmentalissues and initiatives, including a review ofkey operational data impacting the envi-ronment, legislative and regulatory initiatives,energy conservation, and carbon reductionstrategies for Ryder facilities and operations.

Our Environmental Management System (EMS) incorporates elements of theglobal ISO14001 environmental managementstandard along with other environmental bestpractices that are unique to our operationsand services. Ryder’s EMS is designed to: 4 Identify and control environmental

impacts associated with business activities.4 Improve environmental performance

continually.

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 theISO 14001 standard.

We have achieved ISO 9001 and 14001 certifications at several customersites, including locations in the UK,Mexico, and Canada.

Improved Carbon Disclosure ProjectScore from 50 to 83 in 2011 and expandedscope of disclosures to include all Scope1, 2, and some Scope 3 emissions

Click Here to Learn More 4

“Ryder is dedicated to developing and implementing

effective environmental practices in all of its business

activities, and to continually monitoring these practices

to identify opportunities for improvement.”

From Ryder System, Inc. Environmental Policy 4click here for more information

Ryder recycles virtually all automotive waste

streams from our maintenance facilities

13

Launched alternative fuels website tohelp customers and fleet owners reducetransportation costs and understand theadvantages of natural gas, hybrid, andelectric vehicle technologies

Environmental Auditing and Due Diligence

To ensure compliance with establishedpolicies and procedures, annual environmentalself-inspections are required at each of ourlocations. Inspection results are verified bythe Ryder Environmental Services teamwhich audits all of our locations to ensureenvironmental accountability throughoutour operations. Audits are scored and corrective action plans are required within30 days of completing the audits.

As part of our due diligence for propertyacquisitions and dispositions, lease renewalsand terminations, and company acquisitionsor sales, we perform more than 600 auditsand approximately 300 environmental investigations each year. These due diligenceinvestigations are part of our comprehensiveprocess for evaluating potential risks.

VEHICLE EMISSIONS ANDFUEL TECHNOLOGY

With best-in-class vehicle technologies,maintenance, and fueling services, we provideour customers with the latest fuel and vehicleemission technologies that ensure maximumperformance, optimum fuel conservation,and reduced carbon emission outputs.

U.S. EPA SmartWay® TransportPartnership

Ryder is committed to tracking andmeasuring vehicle emissions through ourparticipation in the U.S. EPA SmartWay®

Transportation Partnership. SmartWay is a voluntary public/private partnership designed to improve vehicle fuel efficienciesand thereby reduce greenhouse gas emissions.Ryder is a SmartWay Carrier partner forRyder-owned vehicles and a LogisticsPartner 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 tech-nology is designed to help customers improvevehicle operations and lower operating expenses including fuel costs. RydeSmart isdeployed in approximately 10,000 leased vehicles and 11,000 rental vehicles, helpingfleet managers achieve a 10 to15% reductionin fuel consumption through improvedrouting and reduction of unauthorized idletime. Estimated emission reductions associated with our customers’ use of RydeSmart is over 12,600 tons of CO2

annually. For more information visitwww.RydeSmart.Ryder.com online.

Ryder customers also have access to ourproprietary fleet management and diagnostictechnology, FleetCare. This tool providescustomers with immediate web-based accessto fleet data to help transportation managers

analyze trends and recognize opportunities forincreased efficiencies. In addition, for customerswho employ their own drivers, Ryder providesonline driver training programs throughRyder Pro-TREAD. This system includescourses that improve driving skills and performance, and teaches drivers simpletechniques to reduce fuel consumption. Companies can access driver training throughPro-TREAD at www.rydersafetyservices.com.

Fuel Efficiency and Emission Reduction

In 2010, we committed to offeringDiesel Exhaust Fluid (DEF) at every fullservice Ryder location in North America tosupport our customers who operate vehiclesthat use Selective Catalytic Reduction(SCR) technology to meet 2010 emissionstandards set by the U.S. EPA. DEF is a non-toxic solution that is required to maintain proper operation of model year2010 and later vehicles using SCR to convert nitrogen oxide in the exhaust toharmless nitrogen and water vapor. DEF isnow available at all 550 Ryder service locations in the U.S. In anticipation of

Recognized as an Inbound Logistics Green Partner for three consecutive years

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. Onboard technologies like RydeSmart® help

fleets reduce fuel consumption and emissions

Click Here to Learn More 4

Click Here to Learn More 4

14

Ranked in the top 250 U.S. companiesin the 2010 and 2011 Newsweek GreenRankings

increasing DEF demand, bulk storage andDEF pumps are being added at our largestshop facilities throughout North America.

We continue to offer RydeGreenSM, a lineof tractors and trailers, designed to reducefuel consumption and greenhouse gasemissions. The tractors are equipped withSmartWay® Verified Technologies eligiblefor the U.S. EPA SmartWay® DesignatedTractor certification.

Ryder’s RydeGreenSM Hybrid is amedium-duty straight truck that has the potential to provide up to 30 to 40% improved fuel efficiency in standard in-citypickup and delivery applications. Dieselemissions are dramatically reduced whenthe 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 managementfor more than 2,200 Ryder- and customer-operated fuel storage tanks, 24 hours a day,365 days a year.

RYDER’S COMMITMENT TOALTERNATIVE FUELS

As the leader in commercial truck full service leasing, we have the uniqueability to influence and reach a broadand 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 Govern-ments Board selected Ryder as its fleet

partner in a groundbreaking heavy-dutynatural gas truck rental and leasing project inSouthern California. The $38.7 million project is being funded as part of a jointpublic/private industry partnership betweenthe U.S. Department of Energy, the CaliforniaEnergy Commission, and Ryder. State andfederal sources will provide $19.3 million ofthe total project funding, including $9.95million from the U.S. Department of Energy’sAlternative Fuel and Advanced VehiclesPilot Program funded through the AmericanRecovery and Reinvestment Act of 2009(ARRA), and $9.3 million via the CaliforniaEnergy Commission’s Alternative and Renewable Fuel & Vehicle Technology Program. Demonstrating Ryder’s strategic

commitment to alternative fuels, the company is committing $19.4 million ofour own capital to the project. This is thefirst time that natural gas trucks have beendeployed into a large commercial truckleasing and rental operation, making naturalgas vehicles accessible to a variety of businessesthat might otherwise lack the resources toinvest in newer technology.

The project will make available 202heavy-duty natural gas powered trucks, including both liquefied and compressed

natural gas (LNG and CNG) configurations.These ultra low-emission trucks have beendeployed into our Southern California operations network, where our customerscan access them through short-term rentals,long-term leases, or through our dedicatedlogistics services. To support these trucks, weare constructing two new natural gas refuelingstations within the region and will work withour customers to identify and leverage theexisting natural gas refueling infrastructurealready located throughout Southern California.As part of our core product offering, we will maintain the vehicles at three strategicallylocated maintenance shops in Orange,Rancho Dominguez, and Fontana, Calif.Each maintenance facility will be properlyequipped for the indoor repair of natural gasvehicles. With natural gas fuel prices trendingsignificantly and consistently lower than

Supply & Demand Chain ExecutiveGreen Supply Chain Award(2009/2010)

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.

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.

Ryder Liquefied Natural Gas (LNG) and

Compressed Natural Gas (CNG) tractors

Click Here to Learn More 4 Click Here to Learn More 4

15

Significantly expanded carrier participation in the U.S. EPASmartWay® Transport Program

Ryder peforms more than 600 environmental audits each year

diesel fuel, our customers who incorporatenatural gas vehicles into their fleet have theopportunity to realize additional cost savings.

In 2011, in response to customer interestand demand, Ryder expanded its natural gasvehicle capabilities into Arizona and Michigan.

WASTE MANAGEMENT

We are dedicated to proactive wastemanagement practices with onsite and offsiterecycling and reuse technologies. Typicalwastes generated by our operations are thoseassociated with vehicle maintenance andfueling activities.

Automotive Waste StreamsWe operate approximately 760 vehicle

maintenance facilities throughout the U.S.and Canada. Our state-of-the-art wastemanagement programs ensure that mostwaste streams in our shops are recycled.

Through partnerships with vendors and theimplementation of technologies designed tobetter manage and maintain vehicles, wehave achieved significant reductions in severalvehicle-related waste streams.

We recycle virtually all automotivewaste streams, such as used oil, oily water,used oil filters, and used solvents. We havereduced the amount of waste we generateyear over year by implementing aggressive

waste management programs, as well as re-use and continuous-use technologieswhenever possible.

Waste Recycling & ReuseIn 2010, Ryder began distributing

re-refined motor oil to 200 Fleet Manage-ment Solutions locations in the U.S. Themotor oil is collected from oil change locations including Ryder shops, thenprocessed at refineries and redistributed.This new oil meets all API standards, issupported by all engine manufacturers, and will not have a negative effect onmaintenance or degrade optimum performance of our vehicles. In addition,the new oil requires less energy to manu-facture than virgin stock from crude and results in reduction of greenhouse gas and metal emissions.

Our recycling best practices include:

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 theoriginal 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

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 retreadis 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.

Vehicle Washing - Waste WaterRecovery

Vehicle washing is performed daily atmost Ryder facilities. All vehicle wash servicesare performed in accordance with our aggressive reuse and recycling policies to ensure vehicle waste water is handled appro-priately in accordance with all environmentalregulations, and is collected and treated priorto disposal or recycling. More than 2 milliongallons of vehicle wash water are collected annually from vehicle wash operations.

Spill Response We have established standardized

emergency response procedures to ensureimmediate response to all vehicle and facilityspills and releases. We use an emergency spillresponse center to expedite the dispatch ofemergency spill response teams to spill sites

Year Volume1 CO2e Metric Passenger Vehicle Tree Conservation(Gallons) Tons Avoided2 Emissions Equivalent3 Equivalent3

2006 4,859,624 25,590 5,086 689,113

2007 4,413,238 23,930 4,577 620,174

2008 4,440,991 23,810 4,554 617,067

2009 4,079,779 22,332 4,271 578,754

2010 4,116,341 21,693 4,139 560,798

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.

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Automotive Waste Stream Recycling Summary

anywhere in the U.S. All Ryder trucks areequipped with a Ryder Vehicle Spill Kit whichprovides the driver with everything neededfor fast and effective spill response. Customizedkits are also available for our customers.

Technology Asset Waste Streams The disposal of technology assets (com-

puters, monitors, keyboards, scanners, printers,etc.), if not managed carefully can result in increased costs, risks, and environmental

impact. To manage this impact, we recycleall retired electronic components and component parts at all of our locations inthe U.S. and Canada. Electronic componentsare fully evaluated prior to end-of-life destruction to ensure all reuse and rede-ployment options are exhausted, therebymaximizing theuseful life of theequipment and reducing overalltechnology life-cycle costs andemissions. Wepartner with national and regional recyclingand reuse compa-nies to collect anddismantle elec-tronic components including glass, mercury,and hazardous materials, to ensure that electronic scrap material does not end up in alandfill. E-waste recycle partners are compliantwith U.S. EPA Responsible RecyclingStandards and/or E-Standards RecyclingProgram Standards. Recycling electronics

keeps toxic materials out of landfills and alsoavoids emissions that are released during man-ufacturing of new products. By maximizingthe useful life of electronic equipment, Ryderhas reduced disposal costs and extended thelife cycle of equipment.

ENERGY CONSERVATION

Reducing Energy &Water Consumption

We have stepped up ourefforts to manage energy useand reduce greenhouse gasemissions to become even more sustainable.Consistent with our long-standing commitment to operational efficiency and

to using resources as efficiently as possible,we are measuring and reporting our electricity, natural gas, water, and sewer usefor all North American operations. Improving energy efficiency is central to our carbon reduction strategy and the sustainablesolutions we provide to our customers.

We are continually updating and improving Energy Conservation Checklists designed specifically for our facilities in theU.S. and Canada that include best practicesfor facility management, lighting, and atmospheric controls. These tools offer no-to low-cost tips for saving energy. Low costimprovements and aggressive managementcan deliver significant returns and environ-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 ConservationSeminars back in the 1960s, before theseconcepts became buzz words

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.

2008 2009 2010

Electric

(Kilowatt Hours) 175,468,594 169,206,171 161,815,807

Gas

(Million Cubic Feet) 661,279 624,563 603,143

Water

(Million Gallons) 377,187 341,761 348,728

A Ryder maintenance facility

Employee conservation awareness campaigns combined with strategic

green building upgrade program have helped reduce energy use at Ryder.

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Electronic Waste Stream Recycling Summary:

Year Tons Recycled

2008 62

2009 56

2010 34

Ryder reduced energy and water consumption in U.S. and Canada operations

electricity conservationmanagement practices caneasily 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 olderbuildings first, replacing old metal halidefixtures that have a lumens/watt rating of3.51, with newer fluorescent lamp assembliesthat have a lumens/watt rating of 65.8. Ineffect, the fluorescent lamp assembly, specifiedby Ryder, provides 23,085 lumens comparedto 15,876 lumens from comparable metalhalide fixtures – an improvement of 45%.This resulted in significantly improved average light levels in the maintenancetechnician workspace.

In addition to being much more efficienton lumens per watt, we have realized substantialbenefits on energy conservation. Averageannual energy consumption for facilitiesequipped with metal halides is 74,793kilowatt hours. After the conversion, energy consumption dropped to 53,492, a reductionof 28.5%. These energy conservation

results translate directly into a reducedcarbon footprint.We are also prioritizing energy efficient

and sustainable solutions for our SupplyChain 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 onenergy conservation in new site selection criteria.

Carbon Disclosure Project The Carbon Disclosure Project (CDP) is

an independent not-for-profit organizationholding the largest database of corporate climate change information in the world.Thousands of organizations from across theworld’s major economies measure and disclose their greenhouse gas emissions andclimate change strategies through CDP.

Ryder has voluntarily responded to theCarbon Disclosure Project annually since 2008. In 2009, the CDP introduced a performance component to the reportingby scoring CDP responses. In 2010, thisperformance scoring process was rolled outbroadly. The disclosure score reflects thecomprehensiveness of a company’s response interms of the depth and breadth of its answers.We have consistently improved our CDPscore each year, receiving a 50 in 2008, 61 in2009, 68 in 2010, and an 83 in 2011, earningRyder recognition in the Carbon DisclosureLeadership Index. Ryder’s 2011 score of 83places the company in the “High” scorecategory. The score is normalized to a 100point scale and a High score suggests goodinternal data management and understandingof the issues that climate change presents tothe company’s business. For more informa-tion about the Carbon Disclosure Projectvisit www.cdproject.net. To access the mostrecent copy of Ryder’s Carbon DisclosureProject questionnaire, visitwww.ryder.com/greencenter.

SCOPE 1, 2, AND 3 EMISSIONS REDUCTIONS

4Scope 1 Direct EmissionsFor operations owned and controlled

by Ryder, including on-site natural gascombustion and owned/operated vehicles.

Year Emissions (Metric Tons)2008 565,488

2009 470,481

2010 461,828

4Scope 2 Indirect EmissionsFor purchased electricity at owned/

leased locations.

Year Emissions (Metric Tons)2008 109,728

2009 91,090

2010 86,420

4Scope 3 Indirect Emissions Beginning in 2009, Ryder implemented

initiatives to better track, report and reduceScope 3 (indirect) emissions associated withemployee business travel. Using improvedcommunication technologies to encourageweb-based meeting conferencing and digitalonline conferencing. Ryder reduced theamount of “short-flight miles” by more than390 miles in 2010 over 2009. Short-flightmiles (less than 280 miles) are more fuelintensive than longer-flight miles.

To further reduce Scope 3 indirectemissions associated with employee air milestraveled, working with our travel partner wehave established new travel guidelines andpolicies to better manage business travel. Thisincludes the development of enhanced travelmanagement dashboard tools that providevisibility for all employee travel. We also utilizea Green Travel Benchmark that computes andquantifies overall company Scope 3 emissions

Ryder names its first full-time executiveto lead the company's environmentalprogram in 1986

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associated with business travel in accordancewith GHG Protocol. In 2010, Ryder Scope 3emissions associated with employee businesstravel was 13,510 metric tons.

Greener Information Technology(IT) Solutions

As information technology systems andservices continue to move away from paper-

based management to moreautomated, digital manage-ment resources, the demand

for electricity to support thesesystems also increases. By developing

more sustainable alternatives for managingIT infrastructure, Ryder has decreased costs,energy use, and greenhouse gas emissions.Optimizing processes and using existingservers and storage resources has resulted inenhanced utilization of our IT assets and areduction in overall energy consumption.By employing server virtualization tech-nologies at four major data centers in the U.S.,we have reduced the number of generalshared-use servers from 300 to 20. An additional 100 dedicated-use servers aretargeted for consolidation.

Our Green IT Goals include:

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.

GREEN SUPPLY CHAINS

Carbon Footprint Measurement An increased emphasis on carbon

management brings an increased demand foremissions disclosure and reporting. In additionto providing environmentally sound trans-portation and supply chain solutions, ourcustomers are looking to us to provide specific data related to carbon emissions associated with their transportation activities.To assist current and prospective customerslooking to measure, analyze, and report theirtransportation emissions, we have developeda standard Carbon Footprint Metric. This reporting tool is used in conjunction withour fleet and logistics services, fuel efficientequipment, energy tracking and conservationprograms, and other environmentally soundcustomer solutions.

The Carbon Footprint Metric providesa platform for providing customers with a basictool to compute CO2 emissions associatedwith vehicle transportation. The metric hasbeen developed in conjunction with and tosupplement standard transportation man-agement data reported to customers. Wehave elected to report our Carbon Footprint

Metric calculation on a ton-mile basis be-cause any increase or decrease in tons permile or miles per load correlates to changesin the customer’s carbon footprint.

Education and Awareness We also understand that efficient execution

in a logistics and transportation network isgood for business and for the environment.As a leading transportation and logisticsprovider, we play a meaningful role in raisingawareness in the marketplace about theimportant impact global supply chains haveon sustainable business. To further supportour customers and the business communityin understanding the green benefits ofmanaging an efficient supply chain network,we have sponsored Florida InternationalUniversity’s Annual Green Supply ChainForum in Miami annually since 2008. TheForum invites experts in industry and gov-ernment to help businesses determine waysto quantify their environmental efforts. In2010, the Forum focused on four core areas:

4 Technology and the green supply chain; 4 Understanding the future of regulations; 4 Market demands; and4 Framework for ranking performance.

Ryder was recognized by the 2011CDP in its Carbon DisclosureLeadership Index

Click Here to Learn More 4

19

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 performanceas proven through benchmark studiesand Comprehensive Safety Analysis(CSA) Scoring

Click Here to Learn More 4

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Ranked as a top U.S. company for securitypractices in the Transportation, Logistics,Supply Chain, and Warehousing industrysector in 2009 and 2010 Security Bench-marking Survey, by Security Magazine

Click Here to Learn More 4

SAFETY MANAGEMENT SYSTEM

Ryder’s Safety Management System includes formalized procedures and standardsthat provide the framework allowing ouremployees to work safely every day. Safetyperformance is measured utilizing leadingindicators as well as injury and collisionfrequency and severity. Proactive measuresinclude frequent behavior observations andtraining, as well as other incident preventionactivities. We measure each location’s compliance with these established proceduresthrough electronic reporting and ongoingaudit programs.

Operational Safety Plans are developedeach year that focus on causation to targetprevention activities throughout the organ-

ization. The Operational Safety Plan is distributed throughout our company utilizinga proactive web-based software system,Safety Tracking and Reporting (STAR). Inaddition to defining the preventive safetyagenda for each month, the STAR systemalso provides a tracking mechanism thatmonitors completion of the OperationalSafety Plan on a monthly basis.

We have a strong system of accountability

at all levels of management and with eachemployee. The accountability system includesestablishing objectives, communicating theseobjectives and expectations, monitoringperformance through monthly reporting andscorecard teleconference calls, and recognizinggood performance. Safety Steering Committeesestablish the management, accountability, andcommunications process at the local levelto successfully implement our safety program.

Safety Training and PerformanceThe Ryder safety organization develops

safety communications and training programs,conducts research on new safety-relatedtechnology and manages the implementationof these technologies, provides our operationswith standardized safety dashboards and trenddata, and performs audits, major investigations,and supports new business start-ups.

For customers, our safety team providesvalue-added safety services throughwww.rydersafetyservices.com where customers can access safety and compliancetraining, products, and services.

In 2009 and 2010, we made progress inseveral areas including:

4 Continued the use of innovative vehiclesafety 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.

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 satisfactoryperformance to the Federal Motor Carrier Safety Administration’s Compliance, Safety and Accountability program.

4 Fulfilled requirements to become a member of ISNetworld, a global resourcethat 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.

Implemented several key safety initiativesin the UK including a Return to Work Program, Training and ManagementScorecard and Accountability processes

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.

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.

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Completed C-TPAT border securitycertification for Ryder Supply Chain Solutions Asia

Click Here to Learn More 4

Safety RecognitionRyder’s safety awards and incentive

programs are designed to encourage hands-oninvolvement, teach the right behaviors, andreinforce our safety culture. The annualChairman’s Safety Awards program, now inits 12th year, recognizes employees acrossall business segments who achieve thehighest overall rankings based on safetymetrics such as lost work days, and injuryand collision frequency.

We reward our technicians and otherservice employees through the Ryder Performance Challenge (RPC) program.The program rewards employees who meetquantitative targets focused on safety, customer satisfaction, productivity, andquality execution.

We annually recognize employeesthroughout the organization for their commitment to Ryder's safety efforts, qualityservice to our customers, and individualcontributions that make us successful. Wealso recognize individual employees whoworked during the previous year without apreventable collision or injury.

Drug and Alcohol PolicyWe recognize that drug and alcohol

abuse impairs judgment, significantly increasesthe risk of injury, and poses a threat to safety.Our Drug and Alcohol Policy applies to allof our employees, including contract andsupplier personnel who are expected toabide by the policy while on our premisesor while performing any work for Ryder.

Transportation of Hazardous GoodsAlthough transportation of hazardous

goods is not a service that Ryder has targetedfor growth or development, our policy onthe transportation of hazardous goods appliesto any instance in which a Ryder employee,including lease employees and owner-oper-ators, is directly involved in such trans-portation, including loading and unloading,packaging, labeling, and vehicle operation.These employees are required to receiveHazMat Security Awareness training.

Hours of ServiceWe have strict policies and procedures

relating to Hours of Service regulatory requirements for all of our drivers. We donot permit any driver employed by, orleased to, Ryder to violate these regulations.Violations can result in disciplinary actionup to and including termination. All of ourdrivers and location managers are requiredto know, understand, and comply with theseregulatory requirements, including loggingand reporting of Hours of Service. On amonthly basis, our Compliance team selectslocations to be audited and Hours of Servicerecords are submitted by these locations toour log audit vendor. The results of theseaudits, and any records that contain violations,are returned to the location manager forreview and corrective action.

Fatigue ManagementWe 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 managementto work together to minimize these effects.Ryder’s Fatigue Management Program isin place to ensure that no Ryder driver shalloperate a vehicle on company business whilethe driver’s ability or alertness is so impairedby fatigue as to make it unsafe to operate amotor vehicle. This program consists of training,risk evaluation of work schedules, resourcesand proposed routes, communicationprocesses, and safety reviews.

Hosted U.S./Mexico and Northern Border Security Conferences with support of the Department of Homeland Security to improvecollaboration and share best practices amonggovernment agencies and business partners

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.

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Ryder’s Driver of the Year award has recognized safety and service excellencefor 38 years.

Click Here to Learn More 4

Launched a Sleep Apnea Wellness program to reduce the effects of fatigue among Ryderdrivers with this condition

SECURITY

Through improving relationships andcollaboration with international governmentsecurity agencies and critical business partners, Ryder has become a recognizedindustry leader in transportation and supplychain security. We are committed not onlyto bringing higher levels of security to ouroperations and the customers we serve, butalso to sharing best practices with industrypartners and government regulators to improve overall security in the transportationand 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 confidentthat 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.

Customs and Border SecurityOur Corporate Security group is

responsible for the oversight of customscompliance and operational functions related to the movement of freight throughthe global supply chain. Ryder is certifiedas a Third Party Logistics Provider (3PL) inthe Customs-Trade Partnership AgainstTerrorism (C-TPAT) for logistics operationsin the U.S., Canada, Mexico, and Asia.

In April 2010, we hosted a U.S.-MexicoBorder Security Conference to initiate

information sharing between customers,business partners, and government securityagencies and to reinforce our commitmentto proactively improving levels of safetyand 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 itscomponent agency, U.S. Customs and Border Protection, International SOS, andLoJack Supply Chain Integrity.

In November 2010, Ryder hosted a

North American Border Security Conference,primarily to address security threats andcustoms compliance on the U.S./Canadaborder. The conference, which took placeat our Operations Management Center inNovi, Michigan, featured presentations bythe U.S. Department of Homeland Securityand its component agency, U.S. Customsand Border Protection, the U.S. Chamberof Commerce, Canada Border ServicesAgency, the Royal Canadian Mounted Police, and state homeland security advisorsfrom Idaho, Michigan, and Wisconsin.

Rental Fleet SecurityWe have strong programs in place to

improve security around the company’srental fleet. Ryder’s rental business primarilyserves commercial rental customers thatneed to supplement their private fleet ofvehicles on a short-term basis either becauseof seasonal increases in their business or

Safety Performance Results

FMS Safety Performance Results

SCS Safety Performance Results

U.S. OSHA Recordable Injury Frequency Rate*

2010 2009Fleet Management 1.78 1.86

Solutions

U.S. OSHA Recordable Injury Frequency Rate*

2010 2009Supply Chain 4.91 4.12

Solutions

Dedicated Contract 4.89 5.98

Carriage

U.S. Logistics 4.90 4.77

Collisions per Million Miles** – U.S. and Canada

2010 2009Supply Chain 2.31 2.09

Solutions

Dedicated Contract 2.70 3.18

Carriage

U.S. Logistics 2.77 2.57

Canada Logistics 3.10 2.70

Canada Total Injury Frequency

2010 2009Fleet Management 1.44 2.54

Solutions

Canada Total Injury Frequency

2010 2009Canada Logistics 6.60 5.50

United Kingdom

Injury Frequency Improvement 46%from 2009 to 2010

Lost Workday Rate Improvement 13%from 2009 to 2010

* 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/.

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Conducted over 192,000 onlinesafety training lessons

Ryder was the first transportation industry recipient of the National SafetyCouncil's highest honor, the Green Cross for Safety medal

projects that require additional transportationresources. Our commercial rental fleet alsoprovides Ryder’s contractual full servicelease customers with additional vehicles tohandle peak or seasonal needs.

All of our rental operations are company-owned and operated, and staffed by Ryderemployees. This helps to ensure propercontrol of our rental operations, since wecontrol the policies, procedures, training,and IT systems. Our rental vehicle securityprograms include appropriate customer

identification and screening processesagainst various government watch lists andother approved lists of individuals and organizations with which U.S. citizens andresidents are prohibited from doing business.Our fleet security policies not only applyto rental vehicles, but are also part of anynew lease, used vehicle sales, and supplychain contract process prior to releasing assets and vehicles into the custody andcontrol of customers and their agents.

Ryder’s security program is also designed to help prevent vehicle theftthrough key control, facility security, yardchecks, GPS tracking, security inspectionsand audits, communication and awareness,and training of rental personnel to recognizeand report suspicious activity.

We regularly meet with industry partners,organizations, and government regulatorsto improve overall security in the truckrental and leasing industry. For example, we are a member of TRALA (TruckRental and Leasing Association) and we

assist TRALA in the development of trainingmaterials and establishment of industrystandards regarding the improvement oftruck and car rental security. In addition,we have regular meetings with Departmentof Homeland Security staff to share infor-mation and discuss methods of improvingtruck rental security.

We take actions to comply with various“know your customer” regulations (such asthe U.S. Patriot Act) to enable us to form areasonable belief that we know the identity

of each customer. We have implemented specific policies and

procedures that are activated based on alertsfrom the U.S. Department of HomelandSecurity through the National TerrorismAdvisory System. We also implement specifictemporary security measures for specialevents that require a heightened level of security. In the event of a security incident,

it is our policy and practice to cooperatefully with all law enforcement agencies. Wehave maintained a long-standing commitmentto this policy and will continue to do so inthe future.

Our partnership with government lawenforcement agencies helps to improve theflow of information to advance and enhancethe security infrastructure.

Crisis ManagementWe take a tiered approach to Crisis

Management Planning. At the local level,each Ryder site has documented EmergencyResponse Plans including plans for severeweather, fires, evacuations, chemical spills,and other similar events. Sites that are criticalfor Ryder and our customers’ continued operations have documented BusinessContinuity and Disaster Recovery plans tominimize the impact of crisis events. At thecorporate level, we have a long standingand robust Crisis Management Plan to ensure that the appropriate executive, financial, and technical resources are applied in response to crisis events whichcould impact our employees, customers, assets or the corporation as a whole. OurCrisis Management Plan was developed onthe 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 througheffective planning, practice, and review; and

4 Engage with the public sector and our customers to ensure proper awareness, communication, and planning.

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.

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Launched a Diversity & Inclusion Council,Mentoring Program, and Diversity Scorecardlinking executive pay to diversity goals

Click Here to Learn More 4

Selected the American Red Cross asRyder’s national charitable partner, with a$1 million multi-year commitment, makingRyder a member of the Annual DisasterGiving Program

Click Here to Learn More 4

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.

25

Began multi-phased transformation ofRyder’s health and welfare benefitsstrategy to focus on consumerism, accountability, wellness, and prevention

COMMUN I T Y

Ryder Charitable FoundationWe make contributions to non-profit

organizations primarily through the RyderCharitable Foundation. Funded entirely byRyder System, Inc., the Foundation emphasizes support for those communitieswhere significant numbers of employeeslive and work. The Foundation offers supportthrough cash grants and coordinating volunteerism of employees. The focus areasof Foundation giving are health and humanneeds, education, and cultural arts.

More information about the Foundationcan be found in the About Us section ofRyder’s corporate website under CorporateGiving.

In 2009, Ryder established local PublicAffairs Councils at its major employee facilities in Atlanta, Ga., Novi, Mich., and Dallas/Ft. Worth, Texas. The mission ofthese Councils is to identify ways for localemployees to give back to their communitiesand make recommendations for charitablefunding from the Ryder Charitable Foun-dation that is meaningful and relevant tothe employees that the Councils represent.

The Foundation supports Ryder’soverall company focus on creating a diverse

and inclusive working environment foremployees. As part of this effort, the Foundation has funded numerous organi-zations such as the National Gay & LesbianTask Force, Women Executive Leadership,United Negro College Fund, and The Hispanic Scholarship Fund.

The Ryder Foundation has supportedmany colleges and universities within theUnited States for many years through ourEmployee Matching Gifts to Educationprogram, as well as through direct donationsto universities/colleges.

The Foundation also has a longstandinghistory of funding community organizationsnear our South Florida corporate Head-quarters, including major funding toCamillus House (an organization that provides humanitarian services to the poorand homeless), Miami Science Museum, St. Thomas University, Salvation Army, andthe Zoological Society of Florida.

National Charitable PartnerAs a transportation and logistics

provider, we understand the complexity anddepth of timely resources needed to respondto disasters. In June 2009, Ryder announcedit was committing $1 million over three yearsto the American Red Cross through theRyder Charitable Foundation to supportnational and local disaster preparedness and

response efforts, making it a proud memberof the American Red Cross Annual DisasterGiving Program. Whether through financialsupport, vehicle donations, or volunteer timefrom our employees, our goal is to do all wecan to help increase the efficiency, capacity,and cost effectiveness of American RedCross operations so the organization cancontinue to prepare and respond quicklyand effectively in times of disaster.

Of this gift, $850,000 was designated tothe national American Red Cross DisasterRelief Fund, and the remaining $150,000was directed to the local Greater Miami &the Keys chapter. In times of disaster, in addition to providingfinancial support tonational headquartersand the GreaterMiami & the Keyschapter, we providein-kind donations of trucks, sponsor localRed Cross events, and support local disasterrelief efforts.

We have also extended preferred pricingfor rental vehicles to all Red Cross chaptersin the U.S., and we have given the RedCross access to discounted used vehiclesthrough Ryder’s Used Vehicle Sales division.

In addition, we leveraged our expertise in logistics to help the Red Cross improve itsoperational response capabilities by providingRed Cross employees with free Six SigmaDisaster Logistics Training conducted byRyder supply chain engineers.

Employee Volunteerism and GivingOutside of formal company-sponsored

programs, Ryder employees all over the worldare moved to volunteer their own time andgenerously donate money out of their ownpockets to make a difference. This grassroots effort, “Ryder Cares,” includes everythingfrom donations for our troops overseas, toy andclothing drives, participation in charity walksand runs, and fundraisers for local food banks.

Redesigned leadership competency model to be the basis for decision making related to hiring, assessing, developing, and promoting people

Foundation Giving Per Focus Area

2010

Ryder Charitable Foundation Giving

HumanNeeds Education

Cultural Arts

2009 2010

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Ryder is also tapping into our base ofmore than 20,000 U.S. employees as part of agrassroots volunteer effort to support disasterpreparedness and response activities incommunities in which we operate. In thefall of 2009, we held volunteer kick-off sessions at Ryder’s Headquarters, as well asin some of the company’s large employeefacilities in Alpharetta, Ga., Dallas, Texas,and Novi, Mich. In 2010, we launched a national employee volunteer program throughVolunteerMatch, a web-based volunteer systemthat makes it as easy as possible for any employee to identify and register for localRed Cross volunteer opportunities thatmatch their interests and schedule, as wellas track volunteer activities and hours.

Ryder has also supported the UnitedWay of Miami-Dade for nearly four decades.During annual fundraising campaigns heldat our Headquarters in Miami, employeesare inspired to raise thousands of dollars,matched by a contribution from the RyderCharitable Foundation. In 2010, we surpassed our United Way Campaign goal,raising over $215,000 in employee pledgesthat were added to a $250,000 contributionfrom the Ryder Charitable Foundation fora total Ryder contribution of over$465,000 to benefit the United Way ofMiami-Dade. The pledged employee amountwas a 5% increase from the 2009 campaign andour largest employee contribution to date.

Ryder employees serve as board membersof many not-for-profit organizations pro-moting economic development, education,performing arts, animal welfare, education,and social service agendas. Current boardaffiliations include but are not limited to:

American Red Cross; Barry University; BigBrothers, Big Sisters of Greater Miami; Boy Scoutsof America/South Florida Council; Easter Seals;Greater Miami Chamber of Commerce; HealthyMothers, Healthy Babies Coalition of Broward;Humane Society of Greater Miami; JuniorAchievement of Greater Miami; Mercy HospitalFoundation; Miami Science Museum; Nat MooreFoundation; Sarcoma Foundation; St. ThomasUniversity; United Way of Miami-Dade; Zoological Society of Florida.

P E O P L E

Ryder’s reputation as an industryleader has been earned over thecourse of close to 80 years inbusiness. While our solutions andinnovations are certainly worthy ofrecognition, the true source ofRyder leadership comes from ourpeople.

Employee RepresentationApproximately 2,900 of our employees

in the U.S. are represented by labor unions.These employees are principally representedby the International Brotherhood of Teamsters,The International Association of Machinistsand Aerospace Workers, and the United AutoWorkers. Wages and benefits for these rep-resented employees are governed by 99 laboragreements that are negotiated periodically.

Talent Management & RecruitingWe 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 thesupply and demand of our diverse talentare made purposefully in order to achievesuperior business performance and enableour people to meet their full potential,now, and in the future. The largest proportion of Ryder’s

workforce is made up of non-managementemployees, including shop maintenancetechnicians and service island personnel,professional drivers, and warehouse workers.The bulk of these workers are in the UnitedStates. As the overall United States workforcepopulation ages, the transportation industryis faced with a shortage of qualified drivers

Ryder received the Supplier of the Yearfor Diversity Efforts from Toyota inGeorgetown, Ky. in 2009 and 2010

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Ryder received the Corporation of the YearAward in the Transportation Industry fromMichigan Minority Business DevelopmentCouncil in 2009

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Ryder defines leadership in four key

categories: character, judgement,

relationships, and results

and technicians. In response to this, Ryder’sworkforce planning strategy is heavily focused on developing a pipeline of diverse,talented people with the right aptitude andskills, who meet the company’s high standards for customer service, safety, andcompliance. To build this pipeline, we havebeen implementing new and innovativeapproaches to recruiting by partneringwith technical and vocational schools,leveraging our employer brand, and tappinginto social networks. Ryder will continueto source and attract talent as a competitiveadvantage.

One of our strategic recruiting initiativesincludes hiring from the military becausewe understand the unique work experiencesand value the leadership qualities inherentin military personnel. Specifically, the distinctlogistical, mechanical, and management skillslearned through military service are a greatasset to Ryder’s organization. While wehave been a long time supporter of hiringveterans, in 2011, we launched a number ofnew initiatives and partnerships to increaseour focus on recruiting veterans for roles

important to Ryder’s operations includingdiesel mechanics, professional truck drivers,logistics managers, and other professionalsupport positions.

Our focus on organizational developmentand learning goes well beyond building thefunctional and technical skills needed forour employees to do their jobs. Our cultureis embedded with expectations around ourleadership qualities. We communicate thesequalities to our current and potential employees via the Ryder Leadership Competency Model. This model continuesto define our expected leadership behaviorsin four key categories: character, judgment,relationships, and results. When our leadersare most effective, they excel in these fourequally important dimensions. Beginningin 2010, Ryder began hiring, assessing, developing, and promoting people usingthese competencies as our framework fordecision making. Leadership behavior is nowintegrated into our performance managementprocess and employees have access to a newinteractive on-line training tool to helpimprove competency development. We also

continue to further build our leaders’ expertise in all aspects of these categoriesthrough the delivery of an enterprise wideManagement Development Program forsupervisors and managers, as well as a Leadership Program for high potentialmanagers. Going forward, we will continueto implement innovative training and development programs for functional, technical, and leadership skills in accordancewith the strategic needs of the business.

Health & WellnessOur approach to health and wellness is

simple: help people stay healthy, help thosewith chronic conditions better managetheir care, and identify, as best as possible,those who are heading toward a health careepisode before it happens. We must do thiswhile at the same time maintaining a benefits cost structure that is affordable forour employees and the company.

We believe in the importance of con-tinuing to provide employees with access toquality health care services and financial protection programs. Our health care strategyis centered on curtailing the rise of healthcare expenses for both employees and thecompany. This is accomplished through thepromotion of consumerism, prevention,wellness, and quality of care.

The transformation of our health andwellness programbegan in 2010,in advance ofthe Health Careand EducationAffordability

Reconciliation Act being signed into law.This transformation included the introduction of proactive new approachesto help Ryder and our employees usehealth care dollars as effectively as possible,as well as a greater emphasis on wellnessand preventive services. Beginning in 2010,all covered employees and family membersenrolled in a PPO Plan are covered at 100%,for in-network preventive medical servicesand colonoscopies, with no deductible. All

Recognized in the Human Rights Campaign’s2011 Corporate Equality Index with a score of93 out of 100 points for Lesbian, Gay, Bisexualand Transgender Equality

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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.

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U.S. employees who enrolled in any Rydermedical plan were automatically enrolled ina new Health Advocate program, fully fundedby Ryder. This program provides employeeswith a dedicated Personal Health Advocate,typically a registered nurse, who will workwith them one-on-one to resolve a rangeof clinical and insurance-related issues thattypically overburden employees and theirfamilies. In recognition of the increased im-portance of Healthcare Flexible SpendingAccounts, we have increased the amount ofpre-tax dollars employees can save in theiraccounts from $3,000 to $4,000.

Diversity & InclusionAt Ryder, diversity and inclusion is a

strategic business imperative. We recognizethat a diverse and inclusive culture enablesour company to better serve our customers,creates a more productive and engagingworkplace for our employees, and ultimatelyaccelerates business growth and success.Our commitment to diversity and inclusionis represented by our core values of integrity,service, and performance as well as leadershipcompetencies of character, judgment, relationships, and results.

Our efforts in this area are led by theDepartment of Diversity and Inclusion whichworks directly with our Chairman and theleadership team to establish the strategicdirection. A video by our Chairman aboutour commitment to diversity and inclusionis available on the Company’s website atwww.Ryder.com.

Ryder’s Diversity and Inclusion Councilis led by our Chairman and CEO. TheCouncil consists of eleven cross-functional

leaders, who represent a variety ofdiversity dimensions that reflectthe many perspectives of our workforce. The Council is responsible for helping guideour initiatives and programs insupport of our diversity and inclusion vision and mission.

Supplier DiversityTo be successful, we recognize that

Supplier Diversity should be guided by adhering to a practice of inclusion ratherthan exclusion of diverse suppliers. Workingwith and forming partnerships with minority-and women-owned businesses is core tothis mission. The mission of Ryder's SmallBusiness and Supplier Diversity Program isto actively pursue and develop partnershipswith qualified small and diverse businessesthat enhance Ryder's overall commitmentto delivering exceptional customer service,driving economic growth, and building globalmarket share. We depend on the contributionsof diverse suppliers to develop a strong foun-dation of customer loyalty and entrepre-neurship to succeed in today's competitivemarketplace. We believe that excellence insupplier diversity contributes to excellence insupply chain and transportation management.

Ryder invests significant time andeffort in identifying small businessesto provide various products andservices to support our operations.As a result we have developed anextensive database of suppliers

across the U.S. that meets our needs.This database is continuously beingupdated to reflect changes in ourbusiness requirements.

We utilize multiple sources to support ourefforts 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 SmallBusiness and Supplier Diversity Program as well as an opportunity for prospectivesuppliers to register online athttp://www.ryder.com/suppliers_home.shtml.The online registration form allows procurement professionals to query supplierprofiles based on specific information provided by the supplier.

In 2010, Ryder sourced $179 millionor 4.6% of our total negotiable spend withsmall business/diverse suppliers. This represents an increase from 2009, whereRyder sourced $117 million or 3.96% of our total negotiable spend with smallbusiness/diverse suppliers.

In 1969, Ryder hired its firstfemale professional driver

Ryder strives to ensure that veteran-owned, hubzone,

disadvantaged, and women-owned small business concerns

have an equitable opportunity to compete for subcontracts.

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.

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In 2011, Ryder joined forces with theU.S. Chamber of Commerce to hiremore veterans by joining the VeteransEmployment Advisory Council

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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 implementedwith 6,046 individual users in 2009 and6,368 individual users in 2010 around the world

In 2011, Ryder received an A-rating for its overall investor program fromInvestor Relations Magazine

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In 2009, 2010, and 2011, Ryder was named ashaving the Best Investor Relations Officer in theAir Freight and Surface Transportation Industriesby Institutional Investor Magazine

Our Board of Directorsis 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 accountableto the same Principles of Business Conductwhich are applicable to all Ryder employees.

Our Chief Executive Officer serves asChair of the Board. Through this rule, we believe that our CEO is in the best positionto identify emerging issues facing the company,communicate company performance to theBoard, and set the Board agendas. The Boardhas also recently created the role of a stronglead independent director to enhance theBoard’s independent oversight of the companyand uphold effective governance standards.

Our Board has four standing committees:Audit, Compensation, Corporate Gover-

nance and Nominating, and Finance. EachCommittee is comprised solely of independentdirectors. We have adopted charters for eachCommittee that comply with the NYSE’scorporate governance listing standards, applicable provisions of the Sarbanes-OxleyAct of 2002, and SEC rules. Each chartersets forth the specific responsibilities of eachCommittee and provides for a periodic review of such charter and the applicableCommittee’s performance. The specificCharters are available for review on theCorporate Governance page of our website.Each Committee has the authority to retainindependent advisors and consultants.

On an annual basis, our independent directors (on recommendation from ourCompensation Committee) approve thecompensation package for our CEO. TheCompensation Committee reviews and approves the compensation packages foreach of our other executive officers. Ourcompensation policies and decisions are focused on pay-for-performance principlesand are strongly aligned with the short- andlong-term interests of our shareholders. In2011, our shareholders approved by approxi-mately 94% the compensation of our namedexecutive officers as part of the Company'sfirst "Say-on-Pay" vote. Our Board determinedthat such votes will be held on an annualbasis going forward.

Shareholders and other interested partieswishing to communicate with our independentdirectors as a group can do so through anexternal toll-free hotline number, throughthe Corporate Governance page of our website,or by mail. In addition, anyone with concernsabout the company’s accounting, internalcontrols, or auditing matters can communicatedirectly to members of our Audit Committee.All of these communications procedures canbe accessed on our website.

Our executive leadership team is comprised of the company’s CEO, ChiefFinancial Officer, Chief Legal Officer, Chief

Administrative Officer, and the presidents ofour Fleet Management Solutions and SupplyChain Solutions operating units. The executiveleadership team supports the Board of Directors in executing the company’s strategyand overseeing the company’s operations.The only member of the executive leadershipteam who serves on the Board is our CEO.

Risk ManagementWe understand that risk is present in

our everyday business and that risk-taking isa necessary part of growing and operating abusiness. Therefore, we have implementedan enterprise risk management (ERM) program to provide management and ourBoard with a robust and holistic top-downview of key risks facing the company. TheBoard is responsible for oversight of our ERMprocess and the CEO and executive leadershipteam are responsible for risk identification,management, and communication under ourERM processes. All significant risks identifiedby our ERM program are communicated to,and discussed with, the Board and/or one ofthe relevant Committees on a regular basis.

STAKEHOLDER ENGAGEMENT

As an international corporate citizen,Ryder interacts with a variety of stakeholdersthat affect, and are affected by, our services

Ryder rated highly in several categoriesfor Small-to-Mid Cap companies in Investor Relations Magazine’s annual survey of buy- and sell-side analysts

31

Ryder recognized in 2010 as one of the Top 20

Companies for Best Corporate Governance.

Recognized by GovernanceMetrics International in 2010 as one of The 20 Most Responsible Companies

Click Here to Learn More 4

and operations. Active engagement and dialogue with our stakeholders is a vital partof our business strategy and an essential aspectof corporate governance at Ryder. Themanner in which we engage with our stakeholders varies according to the natureof our relationship with them.

EmployeesWe communicate clearly and frequently

with our employees globally to engage themand make them aware of developmentswithin the company and the industry. We value the feedback and input of ouremployees 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 wellas face-to-face interaction with Ryder’sleadership through localized visits and town hall-style meetings.

4 Recognizing that technology has fundamentally changed how we operate

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 encouragesemployees 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

YouTube channel in 2010.4 Employees are encouraged to ask

questions, and share feedback and suggestions about policies and initiativesthrough a number of interactive feedback programs.

4 We provide anonymous toll-free hotlines and e-mail systems for employeesto make confidential reports, or to seek guidance about legal, ethical, or compliance issues.

CustomersRyder strives to continually deliver on

our promises to customers. To improve cus-tomer engagement and service, we utilize anumber of mechanisms to obtain feedbackfrom customers about our products andservice 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 allowsfor trend analysis and other managementreporting. A closed- loop process

ensures action plans are implemented where necessary to continually improve performance;

4 Formal and informal research to identifyindustry trends impacting current and future product and service offerings; and

4 Regular and ongoing customer-directedcommunications and training programs including webinars, newsletters, and face-to-face customer forums.

InvestorsWe are committed to providing our

shareholders and the investment communitywith access to information that is timely,material, accurate, and complete, and whichfairly and accurately presents our financialcondition and results of our operations, in amanner consistent with all applicable legaland regulatory requirements. Our investorrelations program includes:4 Ongoing dialogue with participants in

the equity markets, including stock

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 tointeract 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

In 2007, 2008, and 2009, Ryder ranked in thetop ten for Best Overall Investor RelationsProgram by Investor Relations Magazine2009

32

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.

Ryder warehouse employees attend a town

hall meeting.

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’sfinancial performance available online at http://investors.ryder.com.

SuppliersOur global suppliers are key to our

operations, and we are committed to long-term, mutually beneficial relationshipswith them. Ryder works with supplierswho deliver the best quality, service, andhighest value-to-cost ratio. Our suppliersare innovative and dedicated to promotingcontinuous improvement in their operations,and are also committed to compliance andhigh 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 AffairsWe continually monitor emerging gov-

ernment issues and activities, and developand implement government relations strate-gies to achieve our business objectives. Weview our participation in the political

process, including collaborating with gov-ernments, lobbying for solutions, and contributing funds to federal U.S. and selectstate candidates through the Ryder EmployeesPolitical Action Committee (Ryder PAC) asan important part of our responsibility toour stakeholders and in the best interests ofour company. Our Government Relationsactivities 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, transportationpolicy, 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:

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 theU.S. Congress to:4 Pass legislation allowing for accelerated

depreciation of new equipment purchaseshelping 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 naturalgas 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.

In 2008, 2009, and 2011, Ryder wasranked in the Top 5 U.S. Companies forBest Disclosure Procedures by InvestorRelations Global Rankings

33

Ryder participates in a natural gas vehicle event on Capitol Hill in Washington, DC.

Ryder has only had four CEOsin its almost 80 year history

We believe that public policy is best madeby those who know and understand our is-sues. As allowed under federal election fi-nance law, we sponsor the Ryder EmployeesPolitical Action Committee, an employee-member political action committee that sup-ports political candidates whose views areconsistent with the company's goals.

Ryder's PAC is governed by a Board ofDirectors whose members represent our di-verse businesses and employees. The Boardsets criteria for evaluation of candidates forstate and federal office across the nation. The Board also advises the GovernmentRelations staff in its decisions on whom tosupport for public office. The PAC supportsincumbents, challengers, and candidates foropen seats.

The Ryder PAC makes contributionsfrom funds gathered from eligible employeesto federal and select state candidate campaigncommittees and political party organizations.The Ryder PAC disburses no corporate

funds to political candidates or committees.Disbursements to qualified candidates andorganizations are listed at www.fec.gov.

The PAC’s Board has set specific criteriaby which to choose candidates to receivecontributions: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.

Our Government Relations activities aredisclosed under the Lobby Disclosure Act(LDA). Semi-annual and quarterly reports

are filed with the Secretary of the U.S. Senate and the Clerk of the U.S. House ofRepresentatives, reporting total lobbying expenditures and contributions made tomembers of Congress, as well as sharing issues and disclosing our employees andcontractors participating in our advocacy activities. These reports can be accessed atwww.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 federaland state laws. Among other provisions, thepolicy adopts strict approval procedures forcontributions and the reporting of thosecontributions to Ryder’s Board of Directorson an annual basis. The policy can be foundin our Principles of Business Conduct.

34

In 2010, Ryder introduced its socialmedia policy and launched onFacebook, Twitter, and YouTube

Shareholders can communicate withRyder's independent Directors by visiting the "Contact our Board"page on Ryder's website.

Click Here to Learn More 4

Created the role of a strong lead independentdirector to facilitate and strengthen Ryder’sBoard of Directors’ independent oversight of the company and to uphold effective governance standards

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.

35

Launched quarterly internal compliance publication, “Clear Signals,” featuring actual stories of employeeswho have demonstrated ethical behavior

Our Global Compliance Teamis committed to ensure that employees,customers, and vendors are aware of thelegal and ethical obligations related to getting the right results the right way.

This team develops training initiativesand policies related to the Sarbanes-OxleyAct, Foreign Corrupt Practices Act, insidertrading, conflicts of interest, competitive intelligence, antitrust, export controls, dataprotection, ethics, anti-money laundering,government contracting, due diligence for acquisitions, document retention, employment, and corporate compliance inthe U.S., Canada, Europe, Mexico, and Asia.

In addition, the team is also responsiblefor updating our management, executiveteam, and Board of Directors on key compliance and ethics risks facing thecompany, overseeing anonymous reportingand complaint resolution proceedings, supervising sensitive investigations conductedby internal and external resources, and auditing compliance with various regulations

and policies. Ryder’s compliance programis also reviewed by external resources.

Our Corporate Compliance and Risk Steering committee consists of VicePresident- and Director-level representativesfrom Human Resources, Tax, Audit, Safety/Security, Legal, Risk Management,Compliance, Operations, InformationTechnology, Environmental, GovernmentRelations, and Corporate Accounting. This committee reviews and prioritizescompliance and risk issues and ensures thatkey stakeholders are informed of changesin the law or relevant policy that could impact our business.

Online compliance training was rolledout to more than 6,000 individual users in2009 and 6,300 individual users in 2010. In2009 and 2010, face-to-face training andrisk assessment interviews were conductedwith key management personnel in China,Singapore, Hong Kong, Germany, UK,Mexico, and Canada on compliance andSarbanes-Oxley issues.

In the U.S., monthly webinars are conducted by internal employment lawyerson legislation and policies for Human Resource managers. In addition, LitigationAvoidance Training is conducted monthlyfor operations staff in various cities throughoutthe U.S. This eight-hour course discussesstate 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 awarenesssurveys were completed by 79% of our employees who have access to e-mail, whichcovered awareness of policies and regulationsgoverning the business as well as the effec-tiveness of compliance and ethics training.One survey was developed and scored byour external training vendor, and we wereable to assess how we compare in our riskprofile to other similarly situated companies.The other risk awareness survey was developed internally and focused on locationspecific risks.

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Ryder's commitment to ethical business is governed by our Principle’s of BusinessConduct, which apply in every location inwhich we do business around the world, aswell as to every employee, officer, directorand member of the Board of Directors

To stay up to date on Ryder’s sustainability initiatives, visit the Sustainabilitysection of our online newsroom at http://newsroom.ryder.com.

Ryder System, Inc. Corporate Sustainability Report