UPM annual report 2015

IN BRIEF

STRATEGY

BUSINESSES

STAKEHOLDERS

GOVERNANCE

ACCOUNTS

near misses are investigated using root cause analysis. In 2015, a total of 47,121 near-miss and safety observation reports were recorded. In 2015, safety efforts concentrated on avoiding the most common accident types like slip, trip and fall accidents and hand injuries. In addition, UPM improved contractor safety and implemented actions based on a fatal accident in 2014 as well as further developed the overall behavioural safety. In the new biorefinery in Lappeenranta, Finland, safety was very high on the agenda during the first operational year with the help of external audits. At the beginning of the year, there were some process safety incidents but the operation was stabilised towards the end of the year. Safety work will continue to be one of the key focus areas. In 2014, UPM set the new short-term target: to achieve LTAF 3 by the end of 2017. An additional target is to avoid fatali- ties or serious accidents. The ultimate target of the safety work is to ensure that neither UPM employees nor contractors are subjected to any risks when working at UPM’s premises. Safety improvement initiatives continue in all business areas. Many of the activities in 2015 will continue during 2016. The focus will be on behavioural safety, full implementation of UPM safety standards, contractor safety improvement, reduction of hand injuries and improvement of safety during lifting opera- tions. Amajor effort was carried out as UPM built a common environmental and safety reporting system “One Safety”. Use of the tool UPM requires its contractors to follow safety guidelines which enable them to carry out their work safely whilst on UPMpremises. The safety induction is a prerequisite before starting work at a UPM site. By the end of 2015, over 65,000 UPM safety inductions to contrac- tors were completed. In 2015, several contractor safety improve- ment projects were carried out or initiated will be rolled out in spring 2016. Efforts on contractor safety

in businesses such as common meetings with contractors inWood Sourcing and Forestry, a contractor safety programme in UPMPaper ENAmaintenance operations and improved safety in outsourced maintenance operations in UPMTimber. The largest investment pro- jects at UPMKymi, Finland and at UPM Changshu, China had a strong focus on safety with good results. There were only one LTA accident at UPMKymi and no LTA contractor To support the wellbeing of its personnel, UPM is working in close co-operation with employ- ees and external organisations who are respon- sible for occupational health. In 2015, UPM continued the health theme that was originally launched in 2014 as the “Focus on Health” campaign. The aim of the health theme is to support continuous improvement of employees’ health, quality of life and ability to perform. In 2015, UPM launched quarterly health themes, which were recovery, physical activity, nutrition and brain health. Several health and wellbeing initiatives were launched at various UPM sites and busi- nesses under these themes. The “Personal Health Plan” project which was piloted in 2014 continued at several sites in Finland during 2015. This health project consisted of a medical check, wellness assess- ment and personal support based on individual health improvement action plans. According to the self-evaluation, improvement of the well- being targets during personal support was on average from 4.2 to 6.7 (scale 1-10). The annual employee engagement survey (EES) results also correlate with positive development. To improve wellbeing at work, UPM is monitoring employees using several metrics and indicators on a yearly basis. The indicators include, for example, the annual employee engagement survey (EES), follow-up of safety and absence indicators and occupational health checks aligned with national legal requirements. accidents at UPMChangshu. Health theme continued

Staying healthy with WASH

UPM wants to make sure that all its employees, regardless of their country or location, work in an environment that is as healthy as possible. In line with this goal, UPM is the first forest industry company to commit to the WASH (Water, Sanitation and Hygiene) programme launched by WBCSD. The programme requires companies to monitor the water, sanitation and hygiene conditions within their organisation and to make any required improvements. UPM joined the WASH programme in 2014. The company sent out a survey to all its production facilities enquiring about local water, sanitation and hygiene conditions in 2015. All production facilities from around the world responded to the survey and evaluated whether conditions at their sites could be improved. In 2016, a survey will be sent to sales offices, followed by forest management and wood sourcing teams in 2017. Tap water is fit to drink in most European countries, but subcontractors working at a plantation in South America, for example, should always carry safe bottled water to quench their thirst. Similarly UPM analyses and manages the opportunities and threats related to healthy working environments. UPM’s significant operating sites are not located in areas, where employees face risks related to HIV/ AIDS, malaria or tuberculosis.

Continued development in UPM’s safety culture and performance

Read more: www.upm.com/responsibility, www.upmbiofore.com

In addition to LTA, it includes modified duty cases and accidents requiring medical treatment. The safety of the external workforce improved as well. UPM’s contractors had 92 lost-time accidents (114 in 2014). Unfortunately, there was a fatal contractor accident in 2015 at UPMopera- tions in the UK during foresting work. The rate of absenteeism due to sickness and accidents at work was 3.7% (3.4%) globally. Absenteeism due to accidents at work remained at the same level as in 2014. Good performance in safety is recognised with company-wide safety awards. The 2015 UPM Safety Award of the best improver was given to UPMChangshu paper mill for improved safety culture. In April, UPM celebrated the company’s third Safety Week in connection with the World Day for Safety and Health at Work organised by the International Labour Organization (ILO). Driving continuous improvement in safety Regardless of severity, employees and the exter- nal workforce working for UPMmust report all near misses and make safety observations. These are reported, investigated and corrective actions taken to prevent their reoccurrence. High-risk

Safety is an essential part of UPM’s activities and business management system. Equal safety requirements are applied to all employees as well as to visitors and contractors working at the company’s premises. All employees in Finland and Germany are represented by joint employer–worker health and safety committees as defined in local legislation. The aim of these location-based committees is to monitor and advise on occupational health and safety issues and programmes.

Absenteeism due to sickness and accidents at work, UPM workforce % absence hours/theoretical working time

Total recordable injury frequency, UPM workforce

Lost-time accident frequency, UPM workforce

15

5

15

2015 was the first year after the “Step Change in Safety 2012-2014” initiative. The next step is to take safety from campaign mode to com- pany-wide culture. Positive development continued in occupational safety indicators. In 2015, UPM’s lost-time accident fre- quency (LTAF, the number of lost-time work accidents per one million hours of work) was 3.9 (4.4). The result is UPM’s best. At the end of the year, 12 production units achieved more than one year without any lost-time accidents. In addition, TRIF (total recordable injury frequency) improved in 2015 being 10.6 (11.6).

12

4

12

9

3

9

6

2

6

3

1

3

0

0

0

2013

2013

2014

2013

2011

2012

2014

2015

2015

2011

2012

2014

2015

UPM Raflatac UPM Paper Asia UPM Plywood Total injuries/one million hours worked UPM Biorefining UPM Energy UPM Paper ENA

UPM Energy

UPM Raflatac UPM Paper Asia UPM Plywood Number of lost-time work accidents/ one million hours worked UPM Biorefining UPM Energy UPM Paper ENA

UPM Raflatac UPM Paper Asia

UPM Plywood

UPM Biorefining

UPM Paper ENA

■ Accidents at work ■ Sick leave

contents

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UPM Annual Report 2015

UPM Annual Report 2015