UPM Annual Report 2016

Stakeholders

In brief

Strategy

Businesses

Governance

Accounts

Product stewardship Product stewardship is a key element in UPM’s responsibility practices. Our products are made of renewable, recyclable and biodegradable materials, and our raw-material base creates a strong foundation for product stewardship and circular economy.

69%

TARGETS 2030

Share of ecolabelled products

The actual value of products is based on their purpose of use, such as reading in the case of paper or construction in the case of timber products. The fact that UPM’s products replace products made of non-renewable rawmaterials adds to their value. We also constantly strive to make products that are as efficient as possible from environ­ ment point of view. UPM’s product stewardship covers the entire lifecycle of all products from the design phase and rawmaterial sourcing to the end-use and even beyond. Ecodesign and product safety mean that all the impacts the raw materials and manufacturing processes have on the products and the environment are considered and minimised early on in the design stage. Rawmaterials, water and energy are used in a resource- efficient way. UPMprovides its customers with products that are safe to use. Open and transparent product communication is part of UPM’s product stewardship thinking. In 2016, UPM Specialty Papers introduced several lighter products. UPMRaflatac launched label products that improve the recyclability of its customers’ end products and carried out several lifecycle assessment (LCA) projects with customers (read more on the right). The comprehensive new Responsible Fibre™ concept introduced by UPMPaper ENAmakes UPM’s environmental and social responsibility an integral part of products. UPMBiochemicals and the University of Helsinki Institute for Molecular Medicine Finland (FIMM) started a joint research project with the purpose of investigating the applicability of UPM’s new cellulose-based gel material for cancer research. UPMRaflatac launched new labels for authenticating products and preventing counterfeit products from entering the market in order to improve consumer safety. Both cases are good examples of new products or projects that create larger social and societal value and promote the Sustainable Development Goals (SDG) of the UN. During the year, the UN Global Compact named renewable diesel UPMBioVerno as an example of a product innovation promoting the SDG 13 (Climate Action). Ecolabels and product declarations as a sign of transparency UPMprovides product declarations to grant customers easy access to information concerning the responsibility of products and the supply chain. They are developed for various customer needs, for instance to verify that products do not contain hazardous chemicals. Ecolabels help customers make responsible choices and provide stakeholders with important information. Third-party verified environmental certificates and labels tell customers about the environmental performance of our products. UPM is globally the largest producer of EU ecolabelled newsprint, office papers and graphic papers. The company also provides its customers with the opportunity to choose papers that have been granted a well-known local ecolabel, such as the German Blue Angel label or the Nordic Ecolabel. All UPM businesses have FSC® and PEFC™ chain of custody certification, which means that customers can use these certifications in their marketing if they wish to do so. In 2016, UPM’s biorefinery extended sustainability certification to cover all of its output streams from the Lappeenranta Biorefinery in Finland under the ISCC PLUS (International Sustainability and Carbon Certification Scheme). UPM’s aim is that all applicable products will be ecolabelled by 2030.

CO-OPERATION BEHIND A WINE LABEL

UPM Raflatac collaborated with Cielo e Terra, one of Italy’s largest wine bottlers, for the lifecycle assessment of their wine brand Freschello. A lifecycle assessment involves the analysis of a product’s environ­ mental impact throughout its entire lifecycle, from raw material sourcing through to manufacturing and recycling. It provides valuable insight into the product’s value chain, revealing the lifecycle stages with the most significant environmental impact. The analysis revealed that Freschello’s most significant environmental impact is caused by the process of manufacturing the glass bottles in which the wine is sold. Another major impact was related to the winery’s energy consumption and chosen energy sources. Thanks to the analysis, it is possible to provide more accurate information about the environmental impact of the product. For several years, Cielo e Terra has been a member of UPM Raflatac’s RafCycle ® recycling concept for label stock waste. With the help of the concept, waste generated during the self-adhesive label lifecycle is reused. Thanks to RafCycle, Cielo e Terra has managed to reduce its waste disposal fees. For example, UPM uses release liners in the manufacturing of recycled paper. Other by-products of the label manufacturing process are used as raw material for UPM ProFi wood plastic composite products, or for energy generation at UPM’s production plants.

Read more: www.upm.com/responsibility www.upmbiofore.com

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UPM Annual Report 2016

UPM Annual Report 2016