UPM Annual Report 2016

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UPM Annual Report 2016 UPM Annual Report 2016 50 51
In brief Strategy Businesses Governance Accounts Stakeholders
Customers
Communities
Media
Suppliers
Investors
NGOs
Government
and
regulators
Employees
BUSINESS COMMUNITIES
GOVERNMENT
AND REGULATORS SUPPLIERS NGOS MEDIA
UPM PULP Finland: Inauguration of the UPM Kymi
mill expansion. Logistics in Pietarsaari.
Tree planting events, Local waters
project and Me & My City co-oper­
ation. Recruitment events for students.
Uruguay: Regional technical university,
UPM Foundation activities. CPA report
on UPM’s socio-economic impact.
Discussions with the
Government of Uruguay
regarding the development
of logistics infrastructure.
CARU results and 10-year
fish monitoring results
published in Uruguay (p.65).
Safety trainings
with contractors.
Finland: Sustainable
plantations seminar
in Helsinki. Uruguay:
Aves Uruguay,
BioUruguay, DESEM,
Vida Silvestre
Communications
on mill events,
mill visits.
UPM BIOFUELS Co-operation with universities
and research institutes (VTT, LUT),
associations (Association for
Finnish Work) and certification
bodies & auditors (ISCC). Participation
in seminars and conferences.
Discussions with Finnish and
EU politicians and authorities
on future biofuel policies.
Safety trainings
with contractors.
Co-operation with
the below50 coali-
tion, Roundtable
on Sustainable Bio-
materials and WWF
Finland.
Visits to biorefinery,
interviews.
UPM TIMBER Active participation in local events e.g.
Lappee-Jukola orienteering event.
Forest owner visits at the sawmills.
Active co-operation with
local authorities on logistics,
traffic and permits. Sawmill
visits.
Induction and trainings
for maintenance and
logistic companies.
Seikku sawmill media
event: the new log
sorting line and wood
trade situation.
UPM ENERGY Inauguration of a new hydropower
unit in Harjavalta. Participation in
Energia 2016 congress to raise UPM
Energy’s profile in the Finnish energy
industry.
Discussions with Finnish
politicians and authorities on
energy policy development.
Collaboration with local
authorities on new hatching
facility for migrant fish in
Harjavalta, Finland.
Close collaboration
related to hydropower.
Discussions on
fish migration with
NGOs
Inauguration of
the new hydropower
unit in Harjavalta,
Finland.
UPM RAFLATAC Local sponsorships e.g. Icehearts in
Finland and river clean-up in North
Carolina, USA.
Active co-operation with
local authorities regarding
environmental investment in
Changshu, China.
Label Life Awards for
suppliers, supplier
audits, joint projects
and workshops.
Sustainability
partnerships with
WWF Poland and
WWF South Africa.
Reforestation project
of Jaguari River in
Brazil.
Factory visits, press
conferences on main
events.
UPM SPECIALTY
PAPERS
Local community and responsibility
programmes: Green Future in China
and local waters school project in
Finland. Tree planting days in Finland
and in China. Mini Library Project
continued and My Heaven My Water
Article Competition in China.
Inauguration of the third
paper machine at UPM
Changshu, China. High Tech
status of the Changshu mill.
My Heaven My Water article
competition in co-operation
with Suzhou Water
Resources Bureau.
Trainings on
compliance,
responsibility
and safety.
Joint programmes
on sustainable forest
management and
sustainable paper
with the China
Sustainable Paper
Alliance (CSPA)
and China Green
Foundation (CGF).
Press conferences
regarding the paper
machine inauguration
and sustainability,
media roundtable,
mill visits and social
media development.
UPM PAPER ENA Participation in the Junction hackathon
in Finland and Reading together —
Living together project in Germany.
Recruitment events in mill communities
for students. Search for new industrial
use for empty mill premises. Zero Solid
Waste programme in Finland. Local
sponsorships.
Dicussions on Finnish
operating environment and
competitiveness of the forest
industry, discussions with
local authorities in the US
on the Madison mill closure
and energy-related topics in
Germany.
Continuous dialogue
and development of
co-operation based
on annual supplier
survey and audits.
Local sponsorship
with WWF Finland.
Mill visits and back-
ground meetings,
active dialogue
around various topics
incl. restructuring.
Responsible Fibre
concept (p. 35).
UPM PLYWOOD Inauguration of Otepää mill expansion
in Estonia, open doors at several mills,
international student conference on
sustainability in Moscow. Apprentice-
ship programme at the mills.
Active participation in
the industry associations’
work. Hosting policy maker
visits to the various mills.
Media visit to Otepää
mill. Background
meetings and brief-
ings e.g. on mill shift
systems.
WOOD
SOURCING
AND FORESTRY
Local events to demonstrate modern
forestry methods and to discuss
sustainable forestry topics (Ärjänsaari
p. 48). Dialogue with communities
on logging plans. Co-operation with
the Guides and Scouts of Finland. Tree
planting events. Forest Fair in Finland.
Discussions with EU and
Finnish politicians and author-
ities on forest and biomass
policies. Discussion with
Finnish authorities on
sustainable forestry, voluntary
forest protection and active
forest ownership promotion.
Development of mobile
solutions to forest
owners. Supplier audits.
Joint UPM Safety Team.
Management training
programme for con-
tractors. Nature
management card
trainings.
Joint projects with
WWF Finland,
BirdLife and Osprey
Foundation. Meetings
and forest visits.
Press conferences
and background
discussions on new
products and services
and wood market.
UPM’s Biofore strategy forms the foundation of
UPM’s stakeholder dialogue. The key focus areas
and activities vary locally and according to stake­
holder needs. Find out more about our activities in
2016 in this picture. The table on the right describes
the activities in UPM’s businesses in more detail.
THE FOCUS OF UPM’S STAKEHOLDER ENGAGEMENT WORK
1 Total shareholder value
2 Increasing long-term
shareholder value
3 Clear and reliable disclosure
and communications, investor
meetings and events 1 Future-oriented, trusted partner with clear
requirements and expectations
2 Competitive advantage through cost leadership,
innovativeness with continuous development and
compliance with supplier requirements
3 Strengthened supplier governance, supplier
collaboration projects and responsible sourcing
practices
1 High level of environmental and
social responsibility performance
2 Understanding expectations to
development of performance,
partnerships
3 Dialogue, transparency and
co-operation in human rights and
climate-related topics in particular
1 Safe and motivating
working environment
2 Employee
engagement
3 Continuous development
of safety culture and
leadership capabilities
1 Fulfil regulatory
requirements, employment
and competitiveness
2 Ensure competitiveness
and a fair operating
environment
3 Network to ensure
UPM view is heard
1 Stakeholders’ main concerns
and expectations
2 UPM’s target
3 Key engagement activities
1 Responsible, safe neighbour,
employment opportunities,
dialogue on local topics
2 Legitimacy and good collaboration
3 Open door events, stakeholder
visits, sponsorship and local
community projects
1 Publish interesting content
2 UPM messaging incorporated
in content
3 Proactive media outreach
1 Reliable partner, service offering, product safety
and quality, product profiles and ecolabels,
environmental and supply chain performance
2 Mutual business success and Biofore opportunities
3 Collaboration, strengthened customer focus, regular
customer satisfaction surveys, best practice sharing
CONTENTS
Extensive and assured information
UPMuses the G4 reporting guidelines published by the Global Reporting
Initiative to measure and report on corporate responsibility at Group level.
UPM’s corporate responsibility reporting for the year 2016 has been
compiled in compliance with the “In accordance” – Core option of the
GRI G4 Guidelines.
The core responsibility information for 2016 in English, which has been
marked as assured in the GRI content index, has been assured by an inde­
pendent third party, PricewaterhouseCoopers Oy (see the Independent
Assurance Report on page 88), and congruence between the English and
Finnish versions has been checked. A shortened version of the GRI content
index can be found on pages 86–87. The entire GRI content index, including
detailed descriptions of the scope of the reporting and data collection
techniques, is available in English a .
Stakeholder engagement and sustainability are important to UPM.
The company is committed to the principles of inclusivity, materiality and
responsiveness as defined in the AA1000 AccountAbility Principles Standard
(2008).
UPMprovides comprehensive environmental information, verified by
third parties, from corporate level to the mills and individual products.
Ecolabelled products, product declarations and certified operations show­
case the stakeholders about company’s sustainability, transparency and risk
management (read more about UPM’s product stewardship on page 56).
UPM businesses
actively engage with
stakeholders
In addition to the group-wide UPM Code of Conduct revision
and related trainings, UPM’s businesses had their additional
focus areas in stakeholder dialogue in 2016. Customer collab­
oration is presented on pages 52-53, employee activities
on pages 40-45.
INNOVATION EVENTS
RESULTED IN NEW CONNECTIONS
AND SOLUTIONS
Innovation is a major part of UPM’s Biofore
strategy. New products and processes are
developed both in house and in collaboration
with research institutes, universities and partner
companies, and increasingly often with start-ups
and growth companies.
Collaborating brings new ideas and makes the
innovation process agile and flexible. It helps
bring new innovations to the market more cost
effectively and at a quick pace. The collaboration
benefits both parties and UPM is pleased to be a
part of smaller companies’ growth and supporting
students.
In the autumn of 2016, UPM took part in three
major innovation events in Finland: Junction
hackathon, Accenture Digital Innovation Challenge
(ADIC) and Slush. The target was to find new
collaborative partners and solutions to some
concrete challenges.
Read more: