UPM Annual Report 2016

Governance

In brief

Strategy

Businesses

Stakeholders

Accounts

GRI content index – short version

UPM follows the Global Reporting Initiative’s (GRI) sustainability reporting guidelines (version G4) in its corporate responsibility reporting. The reporting follows the core option of the GRI G4 guidelines. This shortened version of the GRI index shows where the specific G4 indicators are addressed in the annual report and UPM’s internet pages. More information on the general standard disclosures as well as on omissions, further explanation and disclosures on the management approach can be found in the actual GRI content index which is available at www.upm.com/responsibility. AR = Annual Report 2016 GRI index = GRI content index, published as pdf on www.upm.com.

CODE

GRI CONTENT

LOCATION

OMISSION 1)

ASSURANCE 2)

Category: Social – Labor Practices and Decent Work Employment, Labor/Management Relations

General Standard Disclosures 1) ASPECT

G4 – LA1 G4 – LA4

Total number and rate of employee turnover

AR 42, web

x x

INDICATORS G4 – 1 to 2 G4 – 3 to 16 G4 – 17 to 23 G4 – 24 to 27 G4 – 28 to 33

LOCATION

ASSURANCE 2)

Minimum notice period(s) regarding operational changes

AR 43

Strategy and Analysis Organizational Profile

AR

Occupational Health and Safety

AR, GRI index AR, GRI index

G4 – 10 to 11

G4 – LA5 G4 – LA6 G4 – LA7

Workforce represented in formal joint health and safety committees Injuries, occupational diseases, lost days, absentee rate and fatalities Workers with high incidence or high risk of diseases related to their occupation

AR 45

x x

x x x x x x x

Identified Material Aspects and Boundaries

AR 42, 44–45

Stakeholder Engagement

AR AR

AR 45

Training and Education

Report Profile Governance

G4 – LA9

Average hours of training per year per employee

AR 42

x

G4 – 34 to 41, 44-47, 49

AR, GRI index

G4 – LA10 Programs for skills management and lifelong learning G4 – LA11 Employees receiving performance and career development reviews

AR 41, 43 AR 19, 41 GRI index

Ethics and Integrity

G4 – 56

AR

x

UPM – 1

Human capital return on investment (UPM indicator)

Specific standard disclosures CODE GRI CONTENT

Diversity and Equal Opportunity, Equal remuneration for Women and Men

LOCATION

OMISSION 1)

ASSURANCE 2)

G4 – LA12 Composition of governance bodies and breakdown of employees G4 – LA13 Ratio of basic salary and remuneration of women to men Supplier Assessment for Labor Practices G4 – LA14 New suppliers screened using labor practices criteria G4 – LA15 Significant negative impacts for labor practices in the supply chain

AR 42, 77, web

x x

x x

G4 – DMA Disclosures on management approach (DMA)

GRI index

AR 168

Category: Economic Economic Performance

AR 59

x x

G4 – EC1

Direct economic value generated and distributed

AR 55

x

GRI index

x

Labor Practices Grievance Mechanisms G4 – LA16 Number of grievances about labor practices

G4 – EC2

Financial implications and other risks and opportunities due to climate change

AR 20–23, 66

x

x

AR 49

x

G4 – EC3 G4 – EC4

Coverage of the organization's defined benefit plan obligations

AR 119-122 AR 38, 116

x x

Category: Social – Human rights Investment

Financial assistance received from government

Market Presence, Economic Impacts, Procurement Practices Proportion of senior management hired from the local community

G4 – HR1 G4 – HR2

Human rights screening or clauses in significant investment agreements Employee training on human rights policies or related procedures Non-discrimination, Freedom of Association and Collective Bargaining

GRI index GRI index

x x

G4 – EC6 G4 – EC8 G4 – EC9

AR 42 AR 54 AR 61

x x x

Significant indirect economic impacts

Proportion of spending on locally-based suppliers

G4 – HR3 G4 – HR4

Incidents of discrimination and corrective actions taken

AR 49

x x

Category: Environment Materials

Supporting the right to freedom of association and collective bargaining in risk areas

GRI index

Child labor, Forced and compulsory labor, Indigenous rights

G4 – EN1 G4 – EN2

Materials used by weight or volume

AR 70, web AR 61, web

x x

G4 – HR5 G4 – HR6 G4 – HR8

Operations and suppliers identified as having significant risk of child labor

GRI index GRI index GRI index

x x x

Percentage of materials used that are recycled input materials

Operations and suppliers identified as having significant risk of forced or compulsory labor

Energy

Incidents of violations involving rights of indigenous people

G4 – EN3

Energy consumption within the organization

AR 60, 67, 70-71, web

x

Supplier Human Rights Assessment G4 – HR10 New suppliers screened using human rights criteria G4 – HR11 Significant negative human rights impacts in the supply chain Human Rights Grievance Mechanisms G4 – HR12 Number of grievances about human rights impacts

AR 59

x x

G4 – EN5 G4 – EN6

Energy intensity

AR 169

x x

GRI index

x

Reduction of energy consumption

AR 66

Water

AR 49

x

G4 – EN8 G4 – EN9

Total water withdrawal by source

AR 70

x x

Category: Social – Society Local Communities

Water sources significantly affected by withdrawal of water

AR 65, web

Biodiversity G4 – EN11 Location and size of land holdings in biodiversity-rich habitats G4 – EN12 Significant impacts in protected or other biodiversity-rich areas G4 – EN14 Species with extinction risks in areas affected by operations Emissions G4 – EN15 Direct greenhouse gas emissions (Scope 1) G4 – EN16 Indirect greenhouse gas emissions (Scope 2) G4 – EN17 Other indirect greenhouse gas emissions (Scope 3) G4 – EN18 Greenhouse gas emissions intensity G4 – EN19 Reduction of Greenhouse gas emissions G4 – EN21 NOx, SOx, and other significant air emissions Effluents and Waste G4 – EN22 Total water discharge by quality and destination G4 – EN23 Total amount of waste by type and disposal method G4 – EN24 Total number and volume of significant spills Products and Services G4 – EN27 Mitigating environmental impacts of products and services Compliance G4 – EN29 Significant fines and non-monetary sanctions for non-compliance Transport G4 – EN30 Significant environmental impacts of transporting Overall G4 – EN31 Total environmental protection expenditures and investments G4 – EN13 Habitats protected or restored

G4 – SO1 G4 – SO2

Local community engagement, impact assessments, and development programs

GRI index GRI index

x

x x

AR 58, web AR 58, web AR 58, web

x x x x x x x x x x x x x x

Operations with significant negative impacts on local communities

Anti-corruption

G4 – SO3 G4 – SO4 G4 – SO5

Total number and percentage of operations assessed for risks related to corruption Communication and training on anti-corruption policies and processes

GRI index GRI index

x x

x x x

web

Confirmed incidents of corruption and actions taken

AR 49

AR 71, 169, web

Public Policy

AR 169, web AR 169, web

G4 – SO6

Political contributions by country and recipient/beneficiary

AR 49

x

Anti-competitive Behavior

AR 169

GRI index

x

G4 – SO7

Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes

AR 66 AR 71

Compliance

G4 – SO8

Significant fines and non-monetary sanctions for non-compliance with laws and regulations

GRI index

x

AR 64, 71 AR 71, web

Supplier Assessment for Impacts on Society

G4 – SO9

New suppliers screened using criteria for impacts on society

AR 59

x x

AR 63

G4 – SO10 Significant negative impacts on society in the supply chain

GRI index

x

GRI index

G4 – EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization

Grievance Mechanisms for Impacts on Society

G4 – SO11 Grievances about impacts on society

AR 49

x

Category: Social – Product Responsibility Customer Health and Safety

AR 19, 25, 27, 31, 37, 39, 64–69

x

G4 – PR1

Product categories for which health and safety impacts are assessed for improvement

AR 57

x

AR 63

x

Product and Service Labeling, Marketing Communications Type of product information required by procedures Results of surveys measuring customer satisfaction

G4 – PR3 G4 – PR5 G4 – PR6

AR 57 AR 52

x x x

AR 61, 169, web

x

Sale of banned or disputed products

GRI index

AR 63

x

Compliance

Supplier Environmental Assessment

G4 – PR9

Significant fines and non-monetary sanctions for non-compliance with laws and regulations

GRI index

x

G4 – EN32

New suppliers screened against environmental criteria

AR 59

x x

1) See actual GRI content index for general standard disclosure as well as for omissions and explanations. 2) The assurance report by PricewaterhouseCoopers Oy can be found on page 88.

G4 – EN33 Significant negative impacts on environment in the supply chain

GRI index

x

Grievance Mechanisms G4 – EN34 Grievances about environmental impacts

AR 49

x

CONTENTS

86

87

UPM Annual Report 2016

UPM Annual Report 2016