UPM Annual Report 2016

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In brief

Strategy

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Accounts

Lost time accident frequency for employees and contractors

3.7 6.2

TARGETS 2030

Absenteeism due to sickness and accidents at work, UPM workforce

Coverage of One Safety tool 75% of UPM employees In 2016, a total of 44,000 safety related near-miss and safety observation reports were recorded.

% absence hours/ theoretical working time

UPM’s safety journey continues UPM’s management system enforced by the “Step Change in Safety 2012-2014” initiative also forms a solid foundation for future years. It means a systematic approach, by means of audits and reporting, as well as a preventive and engaging safety culture. The positive trend continued with the annual employee engagement survey (EES): the Occupational Health and Safety score increased 1 percentage point compared to the previous year’s result. All 13 UPM safety standards were updated in 2016. These standards describe the minimum requirements that apply to all UPMpersonnel as well as contrac tors working at UPMpremises or under UPM supervision. UPM safety audits were conducted in production units within all business areas. The purpose of these audits is to evaluate unit operations against agreed OHS criteria (UPM safety standards, guidelines and legislation). Based on audit results, most of the units have been able to further improve safety compared to the results of previous audits. One Safety – a global UPM safety tool Regardless of severity, UPM employees and contractors are encouraged to report all near misses and to make safety and environment observations. In 2016, UPM introduced a global reporting tool, One Safety, for all UPMers and contractors. The reporting tool covers environment, health and safety, product and process safety as well as security. (Read more on the right). Quarterly health themes To support the wellbeing of its personnel, UPM is working in close co- operation with employees and external occupational health organisations. All UPM employees in Finland and Germany are represented by joint employer–worker health and safety committees as defined in local legislation. The aim of these location-based committees is to monitor and advise on occupational health and safety issues and programmes. In 2016, UPM continued with its quarterly health themes. The aim is to support the continuous improvement of employees’ health, quality of life and ability to perform. In 2016, themes related to good sleep, weight and nutrition, and intoxicants (e.g. alcohol and tobacco). Additionally, free-time accidents prevention, such as safe work practices at home and safe winter or summer sports were covered. Several health and wellbeing initiatives were launched at various UPM sites and businesses globally with positive results. Thanks to a campaign at the plywood mills in Finland, free-time accidents were halved. Health and wellbeing coaching, which started in 2014, continued at different businesses and sites in Finland. To improve wellbeing at work, UPM is monitoring employees using several metrics on a yearly basis. These indicators include the annual employee engagement survey (EES), safety and absence indicators and occupational health checks aligned with national legal requirements. There is no high incidence or high risk of disease among UPM employees related to their occupation. UPM analyses and manages the opportunities and threats related to healthy working environments. In almost all of the production sites, there can be a risk of disease related to employees’ occupation, even when adequate protection is in use. Employees can be exposed to noise causing auditory trauma or dust and chemicals causing occupational dermatitis or asthma. To minimise health hazards UPMhas standardised processes, for example for risk assessment, personal protective equipment and chemical management. In addition, occupational health workplace surveys are conducted to assess the working environment. The majority of UPM’s employees work in areas with no or only minimal risk of HIV/AIDS, malaria or tuberculosis. Instructions and support are available for employees travelling to critical areas.

13 14 15 16

UPM Energy

UPM Raflatac

UPM Plywood

UPM Biorefining

UPM Paper ENA

38,400 safety walks and discussions

UPM Specialty Papers

■ Accidents at work ■ Sick leave

Total recordable injury frequency and lost-time accident frequency, UPM workforce

13 14 15 16

Driving continuous improvement in safety

UPM Energy

UPM Raflatac

UPM Plywood

UPM Biorefining

UPM Paper ENA

UPM Specialty Papers

■ Total recordable injury frequency* ) ■ Lost-time accident frequency** ) * ) Total injuries/one million hours worked ** ) Number of lost-time accidents/ one million hours worked

PROACTIVE OBSERVATION PREVENTS ACCIDENTS

UPM’s new global reporting tool, One Safety was successfully implemented at most UPM sites in 2016. The aim is to have a common, UPM way of managing safety and environment-related operations, and to increase our commitment to safety and the environment. According to studies, proactive observation is the best way to prevent and reduce accidents. With the new global way of working, UPM wants to encourage employees to pay attention to their working environment, record potential deficiencies and report incidents through the system. The main features of the tool are the recording of observa - tions, near-miss situations and accidents, managing investi- gations and corrective actions for incidents, preparing risk assessments and reliable reporting. Proactive observation is also promoted during regular safety walks. External contractors working at UPM premises can also record their observations to the system. With the tool, UPM is also able to report and following-up the contractor TRIF. The system also includes risk assessments related to work permits and various tasks. Thanks to One Safety, there has also been an increase in observations related toenvironmental risks.

In 2016, UPM’s lost-time accident frequency (LTAF, the number of lost- time work accidents per one million hours of work) was 3.7 (3.9). The TRIF (total recordable injury frequency) improved, standing at 9.3 (10.6). The TRIF includes LTA cases as well as modified duty cases and accidents requiring medical treatment. The safety of the external workforce improved as well. UPM’s contractors had 76 lost-time accidents (92 in 2015). The figures show a positive development in terms of safety at UPM. Unfortunately, there were two fatal accidents in 2016: one involving a UPM employee at a Finnish paper mill and another involving a contractor in UPM operations in Uruguay during forestry work. Thorough root cause analyses have been conducted and key learnings have been shared to avoid any future severe accidents, with a view to our continuous target of zero accidents. Good safety performance is recognised with company-wide safety awards. The 2016 UPM Safety Award for the best improver was given to UPMFray Bentos pulp mill in Uruguay. In April, UPM celebrated the company’s fourth Safety Week in connection with the World Day for Safety and Health at Work organised by the International Labour Organization (ILO).

Safety is an essential part of UPM’s activities and business management system. Equal safety requirements are applied to all employees, visitors and contractors working at UPM’s premises.