UPM Annual Report 2016

Stakeholders

UPM Annual Report 2016

In brief

Strategy

Governance

Accounts

Businesses

Product

stewardship

Product stewardship is a key element in UPM’s responsibility practices. Our products are

made of renewable, recyclable and biodegradable materials, and our raw-material base

creates a strong foundation for product stewardship and circular economy.

CONTENTS

The actual value of products is based on their purpose of use, such

as reading in the case of paper or construction in the case of timber

products. The fact that UPM’s products replace products made of

non-renewable rawmaterials adds to their value. We also constantly

strive to make products that are as efficient as possible from environ

ment point of view. UPM’s product stewardship covers the entire

lifecycle of all products from the design phase and rawmaterial

sourcing to the end-use and even beyond.

Ecodesign and product safety mean that all the impacts the raw

materials and manufacturing processes have on the products and

the environment are considered and minimised early on in the

design stage. Rawmaterials, water and energy are used in a resource-

efficient way. UPMprovides its customers with products that are

safe to use. Open and transparent product communication is part

of UPM’s product stewardship thinking.

In 2016, UPM Specialty Papers introduced several lighter

products. UPMRaflatac launched label products that improve the

recyclability of its customers’ end products and carried out several

lifecycle assessment (LCA) projects with customers (read more on

the right). The comprehensive new Responsible Fibre™ concept

introduced by UPMPaper ENAmakes UPM’s environmental and

social responsibility an integral part of products.

UPMBiochemicals and the University of Helsinki Institute for

Molecular Medicine Finland (FIMM) started a joint research project

with the purpose of investigating the applicability of UPM’s new

cellulose-based gel material for cancer research. UPMRaflatac

launched new labels for authenticating products and preventing

counterfeit products from entering the market in order to improve

consumer safety. Both cases are good examples of new products or

projects that create larger social and societal value and promote the

Sustainable Development Goals (SDG) of the UN. During the year,

the UN Global Compact named renewable diesel UPMBioVerno as

an example of a product innovation promoting the SDG 13 (Climate

Action).

Ecolabels and product declarations as a sign

of transparency

UPMprovides product declarations to grant customers easy access

to information concerning the responsibility of products and the

supply chain. They are developed for various customer needs, for

instance to verify that products do not contain hazardous chemicals.

Ecolabels help customers make responsible choices and provide

stakeholders with important information. Third-party verified

environmental 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 businesses 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.

In 2016, UPM’s biorefinery extended sustainability certification to

cover all of its output streams from the Lappeenranta Biorefinery

in Finland under the ISCC PLUS (International Sustainability and

Carbon Certification Scheme).

UPM’s aim is that all applicable products will be ecolabelled by

2030.

CO-OPERATION BEHIND

A WINE LABEL

UPM Raflatac collaborated with Cielo e

Terra, one of Italy’s largest wine bottlers,

for the lifecycle assessment of their wine

brand Freschello. A lifecycle assessment

involves the analysis of a product’s environ

mental impact throughout its entire lifecycle,

from raw material sourcing through to

manufacturing and recycling. It provides

valuable insight into the product’s value

chain, revealing the lifecycle stages with

the most significant environmental impact.

The analysis revealed that Freschello’s most

significant environmental impact is caused

by the process of manufacturing the glass

bottles in which the wine is sold. Another

major impact was related to the winery’s

energy consumption and chosen energy

sources.

Thanks to the analysis, it is possible to

provide more accurate information about

the environmental impact of the product.

For several years, Cielo e Terra has been

a member of UPM Raflatac’s RafCycle

recycling concept for label stock waste.

With the help of the concept, waste

generated during the self-adhesive label

lifecycle is reused. Thanks to RafCycle,

Cielo e Terra has managed to reduce its

waste disposal fees.

For example, UPM uses release liners

in the manufacturing of recycled paper.

Other by-products of the label

manufacturing process are used as raw

material for UPM ProFi wood plastic

composite products, or for energy

generation at UPM’s production plants.

Share of ecolabelled

products

69%

TARGETS

2030