UPM annual report 2015

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Controlled and resource efficient production
IN BRIEF STRATEGY BUSINESSES STAKEHOLDERS GOVERNANCE ACCOUNTS
UPMhas certified all its European pulp and
paper mills, the UPMFray Bentos pulp mill in
Uruguay, and the UPMChangshu paper mill in
China in accordance with the EU Eco-Manage-
ment and Audit Scheme (EMAS). EMAS
requires participants to have an Environmental
Management System and to publish a third-
party verified Environmental Statement, which
increases the credibility and reliability of
environmental data. In November 2015, the EU
awarded UPM a recognition certificate for
being one of the pioneers of the 20-year-old
EMAS scheme. In order to improve energy
efficiency, UPM introduced ISO 50001 certifi-
cation systems in Germany and a national
energy efficiency system (ETJ+) in Finland.
Investments in environmental
performance
Investments ensure that UPM is able to con-
tinue its good environmental performance.
UPM’s investments in environmental perfor-
mance are part of the Group’s investment pro-
gramme and aim to improve the efficient and
responsible use of energy, water and raw
materials.
In 2015, the company’s environmental
investments totalled EUR 28 (12) million. The
single largest investment was made to waste-
water treatment and air protection at the UPM
Changshu paper mill in China.
UPM’s environmental protection costs
totalled EUR 129 (127) million, including
depreciation. The main cost items were effluent
treatment, waste management and air pollu-
tion control. Effluent treatment amounted to
Certified management systems help UPM to
control and improve the performance of the
company’s production sites in matters related
to the environment, health, safety and quality.
The company uses rawmaterials, water, energy
and other resources in a responsible manner
and continuously improves energy, production
and cost efficiency.
Almost all of UPM’s production sites, as well
as its wood sourcing operations, are covered by
environmental, quality and occupational
health and safety systems which are certified in
accordance with the ISO 9001, ISO 14001 and
OHSAS 18001 standards. Additionally, several
production sites have an ISO 22000 food safety
management system.
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■ per tonne of chemical pulp
■ per tonne of paper
UPM’s process wastewater volumes
m³/t
Water is one of the most important natural
resources and of crucial importance to UPM.
Water resources and the natural water cycle
have an essential impact on our operations in
forests, plantation forestry and the production
of energy, pulp and paper. The company’s target
is to minimise the impact of operations on local
water resources, safeguard the natural water
cycle in forests and maintain the functioning of
aquatic ecosystems.
UPM’s main production plants are located in
areas where there is sufficient water available.
The water used by UPMplants comes from
rivers, lakes or groundwater resources. UPM
uses water responsibly in terms of the com-
pany’s water consumption and effluent quality.
Reducing water consumption is a
continuous target at all UPM mills
Using less water also means using less electric-
ity, chemicals and thermal energy. The water
used in different processes is recycled as much
as possible.
All of UPM’s pulp and paper mills are
required to have both a mechanical and a bio-
logical wastewater treatment facility. In order to
ensure the best possible treatment result and
share best practice, UPM’s wastewater treat-
ment facility team has continued its work. The
results have been good and the number of inci-
dents has decreased.
UPMhas thoroughly studied the ecological
state of the effluent discharge areas at all UPM
pulp and paper mill sites using a number of
bio-indicators. The international ISO water
footprint standard, which has been in the mak-
ing for several years, was published in 2015.
UPM’s pioneering work in water footprint
research contributed to the final standard.
Hydropower plays an important role in
UPM’s versatile energy production portfolio. In
many areas, constructing hydropower facilities
has affected the reproduction opportunities of
migratory fish species. This has traditionally
been compensated by fish planting obligations
and fish management fees set by authorities.
UPM is currently participating in a two-year
project administered by the Natural Resources
Institute Finland in which suitable means for
restoring migratory fish stocks and supporting
their natural reproduction are studied.
UPMwas the first forest industry company
to sign the WASH Pledge (Water, Sanitation
and Hygiene). During 2015, access to drinking
water and sanitary conditions has been deter-
mined at all UPMproduction plants. This work
will continue in 2016.
UPMupdated its water-related targets in
2015. The previous target of reducing the COD
load by 20% by 2020 proceeded well as the
target was nearly achieved in 2015. The second
target of reducing the wastewater volume by
15% proved to be challenging. The new targets
include reducing water consumption by 30%,
reducing COD emissions by 40% and introduc-
ing the use of recycled nutrients at wastewater
treatment plants by 2030.
UPM Annual Report 2015 57 UPM Annual Report 2015 58
Water plays an increasingly important role
CONTINUOUS River
monitoring
Uruguayan environmental authorities
and UPM have conducted a continuous
monitoring of the Fray Bentos mill’s
environmental performance with the help
of several independent researchers and
environmental experts during ten years.
“Throughout the programme we have not
found any evidence that pulp mill effluents
would have an environmental impact on
water quality and biology of Río Uruguay
since the start-up of the mill in 2007,”
says biologist Jukka Tana. Tana has been
a member of the researcher group since
the very beginning of the work.
Between 2005 and 2007 the research
group concluded baseline studies of water
quality and biology of Rio Uruguay to
analyse the river as the receiving water
of the mill effluents. After the start-up
these analyses have been continued as
a permanent monitoring programme. Tana
says the monitoring programme has been
one of the most comprehensive research
works ever conducted in a pulp mill
emission studies.
“We have also recruited local fishermen to
keep a record of their fish catches. The fish
community and population structure has
remained unchanged at all three study
areas and the condition of the fish caught
has been observed to be in a good state.”
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2015 2014 2013
Thanks to UPM’s internal Clean Run
environmental campaign, the number
of environmental deviations has
decreased from 2013 by 70%.
The number of environmental
deviations at UPM pulp and paper mills
EUR 49 (44) million, waste management to
EUR 34 (41) million and air pollution control
to EUR 5 (4) million. One of the focus areas in
2015 was the closer monitoring of environmen-
tal costs.
Positive development in number of
environmental non-conformances
The number of environmental non-conform-
ances has seen a significant decrease since
UPM’s internal Clean Run campaign was
launched in 2012. Almost 2,000 anticipatory
environmental observations were reported in
2015. The goal of UPM’s campaign is to further
improve the company’s environmental perfor-
mance, share best practice, and improve and
maintain environmental awareness.
No major environmental incidents
occurred at UPMproduction plants in 2015,
and UPMwas not ordered to pay any signifi-
cant fines due to non-conformances. A total of
28 (37) temporary deviations from permit
limits or major deviations from the environ-
mental limits set by UPM occurred at the
company’s pulp and paper mills during the
year. The most notable deviations were either
small oil leaks to nearby waters or biological
sludge losses fromwastewater treatment
plants. UPM immediately reported deviations
from permit limits to the local authorities and
undertook corrective measures to normalise
the situation and prevent similar situations
from occurring in the future.
UPM has reduced wastewater volumes
per tonne of paper by 16% and per
tonne of chemical pulp by 16% over
the last ten years.
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