UPM annual report 2014

UPM Annual Report 2014

CONTENTS

RESPONSIBILITY 45–59

UPM is committed to sustainable development. Responsibility and a holistic

approach to environmental issues are key building blocks of UPM’s safe

and responsible business operations and product development.

The changing operating

environment drives companies

to seek sustainable solutions

Global megatrends, such as population

growth, urbanisation, changes in consumer

behaviour and power shift of economies, cause

stress to the environment. For example, the

increasing scarcity of raw materials, climate

change, the loss of biodiversity and the avail-

ability of clean water are all global environ-

mental challenges.

These megatrends will change our business

environment and the way companies operate.

The competition for non-renewable and renew-

able natural resources will intensify and may

also lead to conflicts. However, renewable

natural resources offer an advantage since they

can be used generation after generation, pro-

vided that they are managed in a sustainable

manner.

The Biofore strategy is based on

resource efficiency and renewability

For UPM, these megatrends create also new

opportunities, particularly in bio-based prod-

ucts. Our products manufactured from renew-

able and recyclable materials respond to global

challenges.

UPM’s Biofore strategy is based on using

renewable and recyclable raw materials in a

sustainable way. This means consuming

resources such as raw materials, water and

energy, in a prudent and responsible way while

achieving energy, production and cost effi-

ciency. Less waste is produced, giving products

more economic and environmental value.

Resource efficiency encompasses various

areas, such as:

• Using natural resources as efficiently and

productively as possible – creating more

with less

• Moving from the use of non-renewable

resources to using renewable resources

• Taking environmental aspects into consid-

eration early in the product design phase

• Reducing the environmental footprints

of products

• Increasing the recyclability of products

and raw materials

UPM is committed to responsible

and ethical business practices

All UPM activities comply with local laws and

regulations. The company respects international

human rights agreements and agreements con-

cerning labour rights, including the UN Decla-

ration of Human Rights, the ILO Declaration

on Fundamental Principles and Rights at Work,

and the OECD Guidelines for Multinational

Enterprises.

The company is also a signatory of the UN

Global Compact initiative whose ten universal

principles are derived from international agree-

ments in the areas of human rights, labour

standards, the environment and anti-corruption.

Furthermore, UPM has promoted global

sustainability projects by participating in the

World Business Council for Sustainable Devel-

opment (WBCSD) and by active dialogue with

The Forests Dialogue organisation and with

other organisations focusing on ethical conduct,

such as WWF, IUCN and Changemaker.

OPENING UPM BIOFORE

STATIONS IN URUGUAY

The “Palmares de Cuico” path was the first UPM

Biofore station opened in Paysandú, Uruguay.

The site is a part of an agreement between UPM’s

plantation company Forestal Oriental and the

government of the Paysandú region to create and

promote tourist areas. For visitors, the UPM Biofore

stations offer the possibility to come and enjoy the

countryside as well as to familiarise themselves with

eucalyptus plantations and environmental protection.

The sites have been selected based on their potential

tourist values. Some places have a beautiful landscape,

some are home to rare species and plants, and others

may have a cultural value.

The aim is to promote these areas alongside the

region’s existing tourist services.

In the interests of ensuring safe and optimum enjoy-

ment of the sites and facilities, Forestal Oriental has

released advertisements and produced brochures,

signs and visitor guides.

There are currently nine UPM Biofore stations under

development in Río Negro, Paysandú, Tacuarembó

and Florida.

Read more:

www.upm.com/responsibility

Anticipating and managing risks

Code of Conduct

Environmental performance

Responsible sourcing and forestry

Creating competitive

advantage and long-term value

High performing people

Resource efficiency

Ecolabels and certification

New business

opportunities with ecodesign

Biofuels

Biocomposites

Biochemicals

Value creation with stakeholders

Dialogue, feedback and

engagement

MORE WITH BIOFORE

RESPONSIBILITY

AS A SOURCE OF COMPETITIVE ADVANTAGE

EVENTS IN 2014

12 March:

UPM expands its

certification services in Finland

and prepares its own PEFC group

certificate

4 April:

UPM donates EUR

100,000 for the new children’s

hospital in Helsinki

6 May:

WWF Poland and UPM

Raflatac continue to co-operate in

protecting rivers in Poland

18 June:

UPM and WWF Finland

enter versatile co-operation

25 June:

UPM BioVerno wins EU

Sustainable Energy Europe Award

11 September:

UPM is listed as the

industry leader in the global Dow

Jones Sustainability Index

15 October:

UPM achieves top

position with the highest possible

score in the CDP Climate Perfor-

mance Leadership Index

30 October:

UPM Raflatac an-

nounces that all its production sites

and terminals in China are certified

to FSC and PEFC forest certification

standards

11 November:

UPM is announced

as sector leader for the materials

industry in CDP’s global forests

report

13 November:

UPM receives its

own PEFC group certificate in

Finland

4 December:

UPM and WWF Fin-

land enter co-operation to promote

the sustainability of wood-based

liquid biofuels

1 2 3

Our existing and new businesses that

make use of renewable and reusable

raw materials form the core of the

Biofore strategy. UPM aims to create

more with less in all its operations.

The efficient use of raw materials and

energy brings savings in terms of

the environment and costs.

UPM is listed as the best company

in the paper and forest industry

sector in the Dow Jones European

and World Sustainability Indices

(DJSI) 2014-2015. UPM is included

in these indices for the third time

in a row.

In 2014, the company’s main focus areas

in corporate responsibility were the Step

Change in Safety initiative, the improve-

ment of contractor safety and the Clean

Run environmental campaign. Special

attention was also paid to the further

development of responsible sourcing

activities.

Responsibility

supports business development

Aerial view of UPM’s plantations

in Tacuarembó, Uruguay.