UPM annual report 2015

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UPM Annual Report 2015 UPM Annual Report 2015 51 52
contents
In 2015, 77% (76%) of UPM’s overall sales
of paper, chemical pulp, plywood and timber
products was ecolabelled. This figure includes
FSC, PEFC and EU Ecolabels, and national
ecolabels. UPM aims to have all applicable
products ecolabelled by 2030.
UPM's ecolabelled sales*)
EU Ecolabelled sales
47% (incl. products
with multiple labelling)
Sales without
ecolabels 23%
Other
ecolabels
sales 30%
(FSC, PEFC,
SFI, German
Blue Angel)
*) incl. Paper, Pulp,
Plywood, Timber and ProFi
IN BRIEF STRATEGY BUSINESSES STAKEHOLDERS GOVERNANCE ACCOUNTS
Product stewardship is a key element in UPM’s
responsible practices. Our products are made
of renewable, recyclable and biodegradable
materials, and our rawmaterial base creates a
strong foundation for product stewardship and
circular economy. UPM’s product stewardship
covers the entire manufacturing process from
rawmaterial sourcing to the delivery, use and
end-of-life management of all products.
Ecodesign and product safety mean that all
the impacts the rawmaterials and manufactu-
ring processes have on the products and the
environment are taken into consideration and
minimised early on in the design stage. Raw
materials, water and energy are used in a
resource efficient way. UPMprovides its custo-
mers with products that are safe to use. The
company’s product stewardship is comple-
mented by open and transparent product
communication.
In January 2015, UPM launched the com-
mercial production of renewable diesel UPM
BioVerno. New UPMProFi composite applica-
tions were also introduced during the year.
Other examples of product stewardship:
• Lighter UPMValor printing paper
• Thermoformable UPMGrada wood
material
• Share of ecolabelled products
• The UPMRestricted Substance List (RSL)
• RafCycle recycling solution for label waste
Ecolabels and product declarations
as a sign of transparency
UPMprovides product declarations to grant
customers easy access to information concern-
ing the product stewardship and the supply
chain. Product profiles are developed for vari-
ous customer needs, for instance to ensure that
products do not contain hazardous chemicals.
Ecolabels help customers make responsible
choices and provide stakeholders with impor-
tant information. Third-party verified environ-
mental certificates and labels tell customers
about the environmental performance of our
products.
UPM is globally the largest producer of EU
ecolabelled newsprint, office papers and
graphic papers. The company also provides its
customers with the opportunity to choose
papers that have been granted a well-known
local ecolabel, such as the German Blue Angel
label or the Nordic Ecolabel. All UPM busi-
nesses have FSC and PEFC chain of custody
certification, which means that customers can
use these certifications in their marketing if
they wish to do so.
The product safety profiles developed by
UPM in 2014 were third-party verified and
extended to new product groups in 2015. The
company’s new UPMBioVerno diesel has been
granted the Finnish Key Flag symbol.
UPMupdated its product stewardship
target in 2015. The previous target of a 25%
increase in the share of ecolabelled products by
2020 was achieved ahead of schedule. The new
target is to acquire an ecolabel for all relevant
products by 2030.
Prioritising product stewardship
Sustainable forestry and
fibre sourcing the cornerstones
of UPM’s business
A 20-year tradition of guiding
the biodiversity
Biodiversity has been one key element
in UPM’s forestry and wood sourcing
strategy for more than 20 years. UPM
has enhanced a new working culture
by actively taking part in various species
and habitat projects in co-operation
with stakeholders.
UPM’s biodiversity programme aims
to maintain and increase biodiversity
in forests as well as promote best practices
in sustainable forestry and wood sourcing.
“It is great that maintaining biodiversity
plays such an important role in UPM’s
strategy. I hope that UPM’s example also
encourages other companies to include
ecosystem services in their environmental
responsibility themes and to see the
opportunities offered by new nature-based
solutions in their business strategies”, says
Timo Tanninen, Director General, Ministry
of the Environment.
Biodiversity supports ecosystem services
including air quality, climate, water
purification, pollination, preventing erosion
and raw material provision. Preserving
biodiversity will help to support adaptation
to potential impacts on climate change.
It is also important for maintaining the
health and strength of wildlife populations.
Read more:
Wood is a renewable material and the primary
rawmaterial for UPM’s businesses. Wood is
UPM’s most important rawmaterial. The
company is committed to sustainable forestry,
monitors the origin of wood and ensures that
wood is legally logged from sustainably man-
aged forests.
At the end of 2015, UPM owned 704,000
hectares of forest in Finland and 75,000 hec-
tares of forest in the United States. The com-
pany additionally has 236,000 hectares of
forest plantations in Uruguay. Forests owned
by UPMhouse approximately 50,000 protected
sites with a total area of approximately 148,000
hectares. The company is also responsible for
managing nearly 900,000 hectares of forests
owned by private forest owners and 57,000
hectares of forest plantations.
Forest certification is an excellent tool for
promoting sustainable forestry. Certification is
based on standards that have been created in
an open stakeholder process, and compliance
with these standards is monitored by an inde-
pendent third party. All of UPM’s forests are
certified, and the company also promotes
certification in privately owned forests, for
instance through group certification.
During 2015, UPM’s Finnish FSC group
certification scheme grew to cover over
100,000 hectares of forest. The company also
worked together with FSC Finland to launch a
pilot project for promoting the certification of
small privately owned forests. All the wood
sourced by UPM is covered by third-party
verified chains of custody.
UPMupdated its forest and biodiversity
targets in 2015. The previous target of main-
taining the share of certified fibre at 85%was
nearly achieved as 84% (83%) of the wood used
in the UPMmills is certified. The new target is
to reach 100% level by 2030.
UPM is both a major forest owner
and a purchaser of wood
Global deforestation, which is caused by the
growing need for food production and wood,
particularly in the tropics, is an essential con-
cern for the entire forest industry. UPM recog-
nises that deforestation is a global challenge
and responds to it in its own operations, for
instance by actively participating in interna-
tional collaboration.
UPM does not use wood from tropical
rainforests as rawmaterial, or accept wood
Pairing low carbon with
high efficiency
UPM BioVerno renewable diesel is an
excellent ecodesign example, combining
both high levels of functionality and
environmental benefits.
The high quality and higher cetane number
of UPM BioVerno increases the power of the
engine and provides cleaner combustion in
the engine, resulting in significantly lower
tailpipe emissions.
In addition to fulfilling high quality
requirements, the fuel provides important
environmental benefits such as decreasing
CO2 emissions by up to 80% during its
lifecycle, and also decreasing hazardous
harmful tailpipe emissions compared to
conventional fossil diesel fuels.
“The results showed that even as a 30%
blending component, the accumulated
hydrocarbon emissions were reduced by
more than half and the carbon monoxide
emissions by more than 40% compared to
reference fossil diesel. Our tests also showed
good results in NOx emissions and
efficiency,” says Dr. Ing. Thorsten Schnorbus,
Manager Passenger Car Diesel, FEV.
UPM initiated BioVerno field tests in urban
buses together with Helsinki Region
Transport (HSL) and the VTT Technical
Research Centre. The fleet tests are a part
of the Helsinki Region Transport initiative
that is aiming for emission-free public
transport.
Read more: