Biofore Magazine 2022

By Mika Mikkola Photography UPM

MONEY TALKS

53

U PM’s purpose is to create a future beyond fossils. Sus tainably managed forests and plantations as well as low-emission energy generation form the basis of our long-term value creation. This drives performance, enables growth, promotes innovative climate-positive products andmakes a positive low-carbon future possible. Climate change mitigation and resource scarcity require fur ther electrificationof society and the rapid reductionof the use of fossil-based fuels and materials. Russia’s war in Ukraine and the current energy crisis in Europe havemade fossil energy even less appealing and have emphasised the importance of supply securi ty and competitiveness.

All this drives demand for renewable and recyclable materials and reliable, com petitive low-emission energy. Inmanyways, UPMis in a strong position to respond to these challenges. We are com mitted to the UN’s 1.5-degree climate target and have ambitious CO 2 emission reduction targets. Forests, carbon-free energy and climate-positive products play an impor tant role in the transition to a low-carbon economy. We believe that climate change mitigation and our business success gohand in hand.

We believe that climate change mitigation and our business success go hand in hand.

UPM’s investment in sustainable choices is good business. Enabling sustainable choices

We have systematically developed our forest assets and ex panded the plantations in Uruguay, continuously improv ing the productivity of our operations. When the UPM Paso de los Toros pulp mill starts up by the end of Q1 2023, we will have grown our pulp business by more than 50%. Mean while, our plantations have established a new renewable raw material base for growing global fibre needs. At the same time, we have created permanent new carbon storage of 55million tonnes in our Uruguayan plantations. When thinking about energy, there are two crucially impor tant topics: the European energy crisis and climate change. Europe needs to cut ties with Russian fossil energy imports. In the short term, this means that we need a lot of new carbon-free energy generation and, at the same time, we need savings and flexibility in energy consumption. Our growing energy generation is set to be in high demand in the current energy market situation. UPM Energy’s carbon-free electricity generation will increase by nearly 50%with the start up of the Olkiluoto 3 nuclear power plant unit in Finland. It is currently in its testing phase. On the other hand, our energy-consuming businesses are very experienced in planning and adjusting to short-term changes in the energymarkets. This helps to save costs but is also important for the stability of the electricity system. Our climate-positive products also notably contribute to miti gating climate change. As an example, our biofuels and biochem ical businesses are all about decarbonising traffic and replacing fossils.We aimto grow in these attractive businesses significantly in the coming years. We are currently building the world’s first biochemicals refinery in Leuna, Germany and it is scheduled to start up by the end of 2023. We enable our customers and consumers to make more sustainable choices. This is good business for us all.

VICE PRESIDENT, INVESTOR RELATIONS, UPM