UPM Annual Report 2016

UPM Annual Report 2016

In brief

Strategy

Businesses

Governance

Accounts

Stakeholders

14 15 16

The number of environmental

deviations at UPM pulp

and paper mills

100

CONTENTS

Resource-

efficient

production

The company uses rawmaterials, water, energy and other resources in

a responsible manner and continuously improves its energy, production

and cost efficiency. Cost and material efficiency and good environmental

performance helps UPM to contribute towards achievement of several

UN’s Sustainable Development Goals (SDGs).

Almost all of UPM’s production plants, 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 plants have an ISO 22000 food safety management system.

In order to improve energy efficiency, UPMhas introduced the

ISO 50001 certification system in Central Europe and a national energy

efficiency system (ETJ+) in Finland. In 2016, UPM’s pulp business area

developed a joint integrated management system for its four pulp mills.

A similar project has started for UPM’s paper mills in Finland.

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-Management 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 local environmental data.

Investments in environmental performance

UPM’s investments in environmental performance are part of the

Group’s investment programme. In 2016, the company’s environmental

investments totalled EUR 22 (28) million. The single largest investment

was UPM Schongau power plant retrofit to achieve lower air emissions.

UPM’s environmental protection costs totalled EUR 120 (129) million,

including depreciation. The main cost items were effluent treatment,

waste management, and air pollution control. Effluent treatment

amounted to EUR 48 (49) million, waste management to EUR 28 (34)

million, and air pollution control to EUR 5 (5) million.

Steady decline in number of environmental

non-conformances

There has been a significant decrease in the number of environmental

non-conformances since UPM’s internal Clean Run programme was

launched in 2012. Over 2,300 preventive environmental observations

were reported in 2016. The goal is to improve UPM’s environmental

performance, share best practices and promote environmental awareness.

In 2016, UPM introduced a global reporting tool, One Safety, for all

UPMers and contractors. The aim is to have a common, UPMway of

managing and reporting safety and environment-related operations.

One Safety tool covers environment, health and safety, product and

process safety as well as security. The tool was successfully implemented

at most UPM sites during the year.

No major environmental incidents occurred at UPMproduction

plants in 2016, and UPMwas not required to pay any significant fines

due to non-conformances. A total of 22 (28) temporary deviations from

permit limits or major deviations from the environmental limits set

by UPM occurred at the company’s pulp and paper mills over the course

of the year. The most significant single deviations were related to bio

logical sludge losses from effluent treatment plants or occasional odours

from pulp mills. UPM immediately reported deviations to local stake

holders and authorities, and undertook corrective measures to normalise

the situation and prevent similar situations from occurring in the future.

Certified management systems help UPM to control and improve

the performance of the company’s production facilities in matters

related to the environment, quality and health and safety.

2,300

preventive environmental

observations