UPM Annual Report 2016

Accounts

In brief

Strategy

Businesses

Stakeholders

Governance

More on responsibility

Age structure of UPM employees 2016 persons

UPM’s electricity consumption per tonne of paper kWh/t

UPM’s solid waste to landfills per tonne of paper kg/t

UPM’s solid waste to landfills per tonne of converted product kg/t

UPM workforce by region

Employees’ years of service with UPM

persons

persons

2,000

12 10

30 25 20 15 10

20,000

5,000

3,000 2,500 2,000 1,500 1,000 500 0

4,000

1,500

15,000

8 6 4 2 0

3,000

1,000

10,000

2,000

500

5,000

1,000

5 0

0

0

0

07

10 09 08

11 12 13 14 15 16

07

10 09 08

11 12 13 14 15 16

07

10 09 08

11 12 13 14 15 16

<1

1–5

>30

≤20

≥65

Asia

6–10

World

11–15

16–20

21–30

21–25

26–30

31–35

36–40

41–45

46–50

51–55

56–60

61–64

Europe

Americas

Rest of the

The electricity consumption per tonne of paper decreased by 14% over the last ten years due to continuous improvements of energy efficiency.

Solid waste to landfills per tonne of converted product decreased by 87% over the last ten years. Since 2007, the figure includes UPM Raflatac’s label products only.

The amount of solid waste sent to landfills has decreased by 50% over the last ten years. However, from 2012 to 2013, the amount 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, with further options for recycling still being investigated.

■ 2014, total 20,414* ) ■ 2015, total 20,184 ■ 2016, total 20,811

■ 2014, total 20,414 ■ 2015, total 19,578 ■ 2016, total 19,310

* ) 2014 figure for UPM employees, since 2015 for UPM workforce including employees and supervised external workers

Lost-time accident frequency, UPM workforce

UPM’s fossil carbon dioxide emissions per tonne of paper kg/t

UPM’s CO 2 emission-free power generation capcaity MW

Ratio of female to male salaries, weighted basic salary 2016

Sources of UPM’s greenhouse gas emissions* ) , 2016

UPM’s eco-labeled sales* )

%

25

800

2,500

120 100

EU Eco-labeled sales (incl. products with multiple labelling)

Stationery fuel combustion

20

2,000

Sales without eco-labels

600

Indirect emissions from supply chain

80 60 40 20 0

15

1,500

400

10

1,000

200

5

500

Other eco-labeled sales (FSC, PEFC, SFI,

Indirect emissions from purchased power

0

0

0

07

10 09 08

11 12 13 14 15 16

07

10 09 08

11 12 13 14 15 16

07

10 09 08

11 12 13 14 15 16

German Blue Angel)

UK

USA

China

Russia

France

Poland

Finland

■ CO

2 from purchased electricity

■ Biomass ■ Hydro ■ Nuclear

Uruguay

Germany

per tonne of paper

* ) incl. Paper, Pulp, Plywood, Label material, Timber and Biocomposites

* ) measured in CO 2

-equivalents

■ CO

2 from on-site energy generation

per tonne of paper

Compared to the previous year UPM’s overall greenhouse gas emissions have remained about the same. According to the calculation, approximately 50% of the direct and indirect greenhouse gas emissions are related to UPM’s energy use, but raw materials, transportation and processing of sold products also have a significant impact. More details are available at www.upm.com/responsibility.

In 2016 on-site CO 2 emissions (Scope 1) decreased mainly because of change in energy supply at UPM Hürth mill. CO 2 of purchased electricity (Scope 2) increased mainly due to higher CO 2 factors in Germany and Finland.

The ratio is calculated by comparing weighted average of basic salaries of women to men on the same job grades, for the nine biggest countries in terms of salaried employees. These countries cover 90% of UPM's total number of salaried employees.

Lost-time accident frequency (LTAF) is the number of lost-time accidents per one million hours of work. LTAF improved significantly over the last ten years.

In 2016, 69% (70%) of UPM’s overall sales of paper, chemical pulp, plywood, label material, timber and biocomposite products was ecolabelled. This figure includes FSC, PEFC and EU Ecolabels, and national ecolabels. Compared to previous year’s reporting the scope has widened to include label material sales. UPM aims to have all applicable products ecolabelled by 2030.

UPM’s capacity for CO 2 free power generation has increased over the last ten years. emission-

CONTENTS

ACCOUNTS

168

169

UPM Annual Report 2016

UPM Annual Report 2016