UPM annual report 2015

UPM Annual Report 2015

contents

UPM promotes reading

The two village schools of Quebracho in Paysandú, Uruguay

welcomed UPM Foundation’s book donation with great enthusiasm.

“We aim to improve the reading habits of school children in a new

way but also improve the amount of interest that their families

display for reading and education in general. The idea is to go

around the neighbourhood and visit children and hundreds of

families and spend time with them by reading and lending books,”

says Rosario Maldonado who is the head teacher of one of the

schools involved.

“With the help of UPM Foundation we renewed our library and

received some 170 new books from our wish list. The children are

happy as they like to listen to stories and read encyclopaedias but

families are also happy with the experiment.”

UPM also supports reading among refugee children in Germany

through German Stiftung Lesen (German Reading Foundation).

Reading is fundamental to human development and a prerequisite

for full participation in today’s media-led and culturally diverse

society.

Read more:

www.upm.com/responsibility

IN BRIEF

STRATEGY

BUSINESSES

STAKEHOLDERS

GOVERNANCE

ACCOUNTS

first investment in a new, innovative produc-

tion facility in Finland as part of the transfor-

mation of the forest industry. The biorefinery

received significant domestic and international

publicity. The visit of two heads of state, Fin-

land and Sweden, was a public recognition for

the work and courage required to renew.

Engagement in the Slush event as a key

partner was also a new opening. Slush is the

world’s leading event where start-up and tech-

nology companies meet. At Slush, UPMwas

looking for partners to develop solutions in

circular economy and customer-friendly digital

solutions and aid in the utilisation of non-core

patents and industrial internet.

UPM also continued co-operation with

WWF Finland to promote the sustainability of

forestry and the sustainability of wood-based

liquid biofuels.

Sponsorships supporting

company strategy

UPM focuses on sponsorship initiatives that

are future-oriented and support innovation

and sustainable values or local vitality. The

company’s guidelines for sponsorships and

donations are applied in all businesses. UPM

does not financially support political parties

or individual candidates.

An important sponsorship agreement was

signed with the Technological University of

Uruguay (UTEC) to facilitate regional high

level technical education in Fray Bentos. The

target is to advance technical skills and engi-

neering, particularly in mechatronics, renew-

able energy, transport and logistics. The

investment in education will create further

development opportunities, enhancing the

overall competitiveness and competence pool

of the forest industry in Uruguay in the future.

Another significant sponsorship was

signed with Guides and Scouts of Finland. The

target is to strengthen the youth’s relationship

with forests by encouraging them to see the

forests from a versatile perspective and by

using innovative mobile applications.

The focus of the local sponsorship was to

support the vitality of UPMproduction loca-

tions. UPM spent approximately EUR 3.6

million on local sponsorships and donations.

For commercial sponsorships, UPM spent

approximately EUR 800,000.

UPM’s support for its Uruguayan UPM

Foundation continued with EUR 367,000.

The foundation supports and encourages

training, entrepreneurship, employment and

healthy living and entertainment in local

communities in the Uruguayan countryside.

EUR 60,000 was donated to charities or

other non-profit purposes, including a dona-

tion to the German Stiftung Lesen founda-

tion for supporting reading among refugee

children in Germany.

Continuous development

with corrective actions

Should stakeholders have concerns or sus-

pect misconduct, they are encouraged to

contact UPM’s Stakeholder Relations func-

tion or local units or use the UPMReport

Misconduct channel accessible via the com-

pany website. A claim can be made confiden-

tially and anonymously. The company has

agreed internal procedures on how to address

possible misconduct.

UPM does not tolerate any violations of the

UPMCode of Conduct. Employees can ask for

advice from appointed Code of Conduct contact

persons or report misconduct anonymously through

UPMReport Misconduct channel. Misconduct

reports are reviewed carefully and UPM takes

corrective actions when necessary.

In 2015, UPM received approximately 210

inquiries and concerns expressed by stakeholders.

The concerns related mainly to environment,

forestry and biodiversity. 12 cases were reported

through UPMReport Misconduct channel. The

complaints related mainly to suspected cases of

fraud and suspected failures to adhere to the com-

pany’s HR Rules or compliance procedures. Five

cases related to discrimination were reported, but

none were found to be justified. None of the cases

were related to society, environment, human rights

violations, corruption or labour practices. Some of

the reported cases led to disciplinary action includ-

ing warnings or terminations of employment.

UPM’s Biofore strategy forms the foundation of UPM’s

stakeholder dialogue. The key focus areas and activities vary

locally and according to stakeholder needs. Find out more

about our activities in 2015 in this picture.

the focus of upm’s stakeholder engagement work

Communities

Media

Customers

Investors

NGOs

Government

and

regulators

Employees

Suppliers

Future-oriented, trusted partner with clear

requirements and expectations

Good governance, supplier collaboration projects and

responsible sourcing practices

Efficiency, cost leadership, innovativeness, continuous

development and compliance with supplier requirements

Total shareholder value

Clear and reliable disclosure

and communications,

investor meetings and events

Attractive investment

Reliable partner, service offering, product

safety and quality, product profiles and

ecolabels, supply chain performance

Collaboration, customer satisfaction surveys, best

practice sharing, strengthened customer focus

Mutual business success and Biofore opportunities

High level of environmental and

social responsibility performance

Dialogue, transparency and

co-operation in climate-related topics

in particular

Understanding expectations to

development of performance,

partnerships

Safe and motivating

working environment

Continuous development of

safety culture and

leadership capabilities

Employee engagement

Fulfil regulatory require-

ments, employment and

competitiveness

Network to ensure UPM

view is heard

Ensure competitiveness

and a fair operating

environment

Stakeholders’ main concerns and expectations

Key engagement activities

UPM’s target

Responsible, safe neighbour, employment

opportunities, dialogue on local topics

Open door events, stakeholder visits,

sponsorship and local community projects

License to operate and good collaboration

Publish interesting content

Proactive media outreach

UPM messaging incorporated

in content

Read more on Code of Conduct renewal

p. 10, materiality analysis p. 11 and climate

actions p. 59. Concrete examples of our

commitment to stakeholder engagement can

be found in the cases throughout this report.