UPM Annual Report 2016

UPM Annual Report 2016

In brief

Strategy

Businesses

Governance

Accounts

Stakeholders

CONTENTS

Circular

economy

at UPM

UPMhas followed the principles of circular economy in its operations

for a long time. Today, megatrends like population growth and

urbanisation, digitalisation, climate change and sustainability highlight

the importance of circular economy and generate new opportunities.

New technologies give UPMnew ways to create innovative

solutions. These technologies include the likes of industrial

biotechnology, new uses of fibre, 3D printing, and energy technologies.

UPMutilises wood by-products, such as bark, sawdust and wood

chips, for pulp and energy generation. Many of UPM’s new products are

made of by-products and waste from traditional production processes.

UPM aims to use every single wood fibre innovatively and efficiently

and to offer high-quality alternatives to non-renewable materials.

Recycling waste is part of circular economy

Reducing the amount of solid waste and increasing recycling and

recovery are important targets at all UPMmills. To us, yesterday’s

waste is the valuable rawmaterial of tomorrow.

Nearly all organic production residues, including bark and wood

residues, as well as fibre-containing solids from deinking and effluent

treatment, are used in energy generation at mill sites.

Ash originating from bioenergy production forms the most

significant proportion of UPM’s solid waste. Ash is used on a large scale

in applications ranging from landscaping to road building.

UPMhas developed innovative ways to reduce its own waste and

residues and recycle waste in new products.

RECYCLING NUTRIENTS

FOR A HEALTHIER BALTIC SEA

Advanced nutrient recovery and recycling practices directly reduce pollution of

local water resources.

A good example of this practice can be found at the UPM Rauma mill. This mill

co-treats its own effluents and those from the city. This combined effort in treating

effluents significantly reduces the amount of nutrients that end up in the Baltic Sea.

Nearly 100% of the nitrogen and phosphorus present in the city’s effluents can

be reused at the co-treatment plant, meaning that they no longer contribute to

eutrophication of the sea. The waste heat derived from the effluents is used to dry

out sludge from the treatment plant, which, in turn, is used for energy and heating

production in the city of Rauma. The ash generated during this process is reused

for landscaping applications.

In autumn 2016, Raki2, a nutrient recycling programme run by the Ministry of

the Environment of Finland, provided the funding for a joint project established

by UPM together with the fertiliser and crop nutrition expert Yara. The project

focuses on the possibilities for reusing nutrients in agriculture. These nutrients are

retrieved from the sludge generated by the pulp and paper mill’s effluent treatment

plants, as well as ash from the incineration process.

Nutrient recycling is a good example of the circular economy concept, whereby

natural resources are recycled and reused as many times as possible. UPM’s target

is to start using 100% recycled nutrients in all of its effluent treatment plants by

2030. This target is included within UPM’s commitment to the Baltic Sea Action

Group (BSAG), which promotes the restoration of the Baltic Sea’s ecological

balance.

Other good examples of the company’s efforts in promoting

circular economy:

•

UPM is the world’s largest user of recovered paper for the

production of its graphic papers, consuming 2.8 (3.1) million

tonnes of recovered paper in 2016

•

The share of recycled fibre represents one third of all fibre

rawmaterials used in UPM’s paper production

•

UPM’s renewable diesel, UPMBioVerno, is produced from

crude tall oil, a residue of pulp production

•

UPMProFi utilises the cellulose fibres and plastic polymers

that are surplus by-products from self-adhesive label

manufacture and gives them a new life

UPM’s aim is that the company’s mills will not send any waste

to landfill by 2030. This target has already been achieved at most

of the paper mills located in Central Europe. In Finland, the UPM

has a Zero SolidWaste project which aims to find the best practice

for recycling ash, sludge, dregs, wood-based waste and landfill

waste. UPM’s research activities also focus on utilising and

recycling production side streams more efficiently.

At UPM circular economy, in short,

means reusing materials and products

several times and creating added

value through smart solutions.

In circular economy, we also avoid

generating waste, and strive to

increase the use of renewable

energy and materials.

EFFICIENT RECYCLING OF WASTE

STRENGTHENS UPM’S POSITION AS

FORERUNNER IN CIRCULAR ECONOMY

Zero solid waste to landfill is one of UPM’s 2030

responsibility targets. Most of UPM’s mills in Central

Europe have already reached this goal.

UPM’s mills in Finland are involved in a Zero

Solid Waste project which aims to find solutions

for recycling and create value from ash, sludge,

dregs, wood-based waste and landfill waste.

UPM Jämsä River Mills is one of the forerunners

in the project. In 2016, no waste from the mills was

sent to landfill. All waste is recycled in its current

form or after further treatment. Forms of waste that

cannot be used at the mill or by any other party

are incinerated for energy.

Oil, metal, plastic, paper and cardboard waste

are collected for recycling and hazardous waste

is forwarded for further treatment. Non-recyclable

wood, plastic, paper and cardboard waste are

sent to be used as raw material for recovered fuel

and, for example, to the UPM Rauma power plant

for incineration. Ash from power plants and, for

example, soil are sent to be used in soil enrichment

or in excavation work.

The efficient recycling of different forms of waste

reduces landfill costs and creates revenue.

Read more:

www.upmbiofore.com

PRODUCTS

FROM

SIDESTREAMS

& WASTE

SIDESTREAMS

WATER

ENERGY

Resource

efficiency

Recycling

RENEWABLE

FIBRE-BASED

PRODUCTS

VALUE

CREATION

Product

stewardship

Raw materials

& water

The total amount of solid waste sent

to landfill has decreased over the last

ten years by 30%. However, from

2012 to 2013 the total amount of

waste sent to landfill increased

significantly. This is due to the fact

that former reuse possibilities for ash

ceased at one of UPM's paper mills.

Starting from 2014, new methods of

recycling were established. However,

in 2016 amount of waste increased

due to production increase of

chemical pulp.

11 12 13 14 15 16

10 09 08

200

150

100

UPM’s total waste to landfills

1,000 t

of UPM’s total process waste

recycled or recovered

89%

TARGETS

2030