UPM Annual Report 2016

UPM Annual Report 2016

In brief

Strategy

Businesses

Governance

Accounts

Stakeholders

CONTENTS

Responsible water use

The company’s target is to minimise the impact of its operations on

water resources, safeguard the natural water cycle in forests, and

maintain the functioning of aquatic ecosystems.

All UPM’s largest production plants are located in areas where there

is sufficient water available. The water used by UPMplants comes from

rivers, lakes or groundwater resources. UPMuses water responsibly in

terms of the company’s water consumption and effluent quality. This has

also been acknowledged by the CDPWater Programwhich has rated

UPMwith a score of “A-“. This is a leadership position in CDP’s ranking.

CDP’s Water Program annually identifies companies that have proven

their leadership in the sustainable management of water through

concrete actions.

Responsibility targets for 2030 encourage forward

Using less water also means using less electricity, chemicals and thermal

energy. The water used in different processes is recycled to the extent it’s

reasonable.

All of UPM’s pulp and paper mills are required to have both a mechan-

ical and a biological effluent treatment. In order to ensure the best possi

ble treatment result and share best practice, UPM’s wastewater treat

ment facility team continued its work in 2016. The results have been

good and the number of incidents has decreased steadily.

The company’s pulp and paper mills began their planning work for

achieving the 2030 targets set last year (learn more about the UPM

Changshu paper mill research programme on page 38). In order to

achieve its nutrient recycling target, UPMhas launched nutrient tests

at Finnish mills in collaboration with partners found through the Baltic

Sea Action Group (p. 69). The FinnishMinistry of the Environment has

granted funding for a joint project established by UPM together with Yara

to develop nutrient recycling. Funding has been granted for 2017–2018.

The school project called Local waters, originally launched in Rauma,

was expanded to other UPMpulp and paper mill locations in Finland.

The purpose of the project is to encourage pupils’ interest in natural

sciences through hands-on research carried out at waterways. In addition

to UPM, the Finnish Environment Institute (SYKE), the organisation

puhdasmerivesi.fi

and local Rotary Clubs are involved in the project.

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 aiming to determine suitable means for restoring

migratory fish stocks and supporting their natural reproduction. The

project began in 2015 and is administered by the Natural Resources

Institute Finland. The ecological state of the effluent discharge areas at

UPMpulp and paper mill sites has been studied using a number of bio-

indicators.

Water resources and the natural water cycle

have a significant impact on UPM’s operations

in forests, plantations and the production of

energy, pulp and paper.

UPM FRAY BENTOS PULP MILL

DOES NOT IMPACT ON URUGUAY RIVER

The recent report by CARU (Comisión Administradora del

Río Uruguay) confirms that the UPM Fray Bentos mill fulfils

the strictest environmental criteria and the operation of the

pulp mill does not have an impact on the Uruguay river.

CARU published its monitoring results in November 2016,

corresponding to 50 inspections carried out since 2011.

The monitoring work includes the mill’s effluent discharge to

the Uruguay river as well as water quality in the river itself

and at the mouth of the Gualeguaychú river. The cumulative

environmental data proves that the mill fulfils all the environ-

mental criteria set by the authorities. All together there have

been 67 inspections up to December 2016.

UPM is pleased that the results are finally published by

CARU. For UPM, it is important that the performance of

the mill has been ratified. The performance is in line with

the environmental results of all of the monitoring processes

conducted by government and independent sources and

which have been publicly available on the company’s

website since the start-up of the mill in November 2007.

At the same time, UPM further reinforces its commitment

to comply with Uruguayan law and international standards,

sharing mill-related information transparently.

CARU is a permanent joint organisation between Uruguay

and Argentina that directs and regulates the objectives and

interests of both countries in the shared segment of the

Uruguay river.

In addition, a report on a 10-year study of the water

quality and biology of the Uruguay river was published

in 2016. The results show that there have been no

differences in fish number, abundance or biomass between

the reference areas and the receiving area adjacent to the

pulp mill effluents. The study was conducted by the Faculty

of Sciences of Uruguay and international experts and

reviewed by the National Environment Directorate of

Uruguay (DINAMA).

Read more:

www.upm.com/responsibility, www.upm.uy

(es)

11 12 13 14 15 16

10 09 08

■

Per tonne of chemical pulp

■

Per tonne of paper

UPM’s COD load

kg/t

The COD load has decreased by

23% per tonne of paper, and by 40%

per tonne of chemical pulp, over the

last ten years. However, in 2016 load

increased due to production increase

of chemical pulp.

AOX indicates the amount of halogens

bound to the organic compounds present

in the effluent. Over the last ten years,

the AOX load per tonne of bleached

chemical pulp decreased by 43%.

However, in 2016 load increased due

to production increase of chemical pulp.

11 12 13 14 15 16

10 09 08

0.20

0.15

0.10

0.05

UPM’s AOX load per tonne

of bleached chemical pulp

kg/t

Reduction in effluent

load since 2008

27%

TARGETS

2030

UPM has reduced wastewater

volumes per tonne of paper by

11% and per tonne of chemical

pulp by 22% over the last ten

years.

11 12 13 14 15 16

10 09 08

■

Per tonne of chemical pulp

■

Per tonne of paper

UPM’s process wastewater volumes

m³/t