UPM Annual Report 2017

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Stakeholders

In brief

Strategy

Businesses

Governance

Accounts

Driving continuous safety improvements

Lost-time accident frequency for UPM workforce only and UPM workforce including contractors

3.3 4.3

TARGETS 2030

Absenteeism due to sickness and accidents at work, UPM workforce

% absence hours/ theoretical working time

In 2017, UPM’s lost-time accident frequency (LTAF, the number of lost-time work accidents per one million hours of work) was 3.3 (3.7). Total recordable injury frequency (TRIF) improved, reaching 8.2 (9.3). The TRIF includes LTA cases as well as modified duty cases and accidents requiring medical treatment. The safety of the external workforce also improved. The frequency of accidents including UPM’s contractors was 4.3 (LTAF) and 8.5 (TRIF) in 2017. Despite UPM’s efforts, there were eight serious accidents and three fatal contractor accidents in 2017: two accidents inWood Sourcing and Forestry in Finland and one fatal accident at Shotton paper mill in the UK. Thorough root cause analyses have been conducted and key learning points have been shared to avoid any serious accidents in the future, with a view to achieving UPM’s permanent target of zero accidents. Good safety performance is recognised with company-wide safety awards. The 2017 UPM Safety Award for the most improvement was given to UPM Kymi integrated pulp and paper mill in Finland. UPM life-saving standards UPM’s management system enforced through the “Step Change in Safety 2012–2014” initiative provides a solid foundation and a systematic approach. Audit results and findings are an integral part of UPM’s continuous safety improvements. OHS focus areas in 2017 were risk management, process safety and the implementation of six life-saving standards. At the beginning of 2017, UPM introduced six life-saving standards, considered to be the most effective in preventing serious accidents. The standards help UPM employees and contractors to stay safe while performing certain duties with higher risk, including working at height, permission to work, mobile equipment and cranes as well as the isolation of energised equipment. Global UPM safety reporting All UPM employees and contractors are encouraged to report all near misses and to make safety and environment observations. This information is available for sharing and learning in One Safety, UPM’s global reporting tool, which was introduced in 2016. It covers environment, health and safety, product and process safety and security. Since the beginning of 2018, all UPM sites have had access to the tool. External contractors working on UPMpremises can also record their observations using the system. The main uses of the tool are the recording of observations, near-miss situations and accidents, managing investigations and corrective actions for incidents, preparing risk assessments and reliable reporting. Proactive observation is also promoted during regular safety walks. Promoting employees’ health and wellbeing To support the wellbeing of its personnel, UPM is working closely with employees and external occupational health organisations. 71% of UPM employees are represented by a well-balanced, formal management-worker health-and-safety committees. The aim of these location-specific committees is to monitor and advise on occupational health and safety issues and programmes. In 2017, UPM continued with its quarterly global health and safety themes. The aim is to support the continuous improvement of employees’ health, quality of life and ability to perform. In 2017, themes included organisational climate, travelling, as well as health and a hectic life. Additionally, several health and wellbeing initiatives were launched at various UPM sites and businesses based on local needs and these produced positive results. Activities covered topics from physical and mental wellbeing to health and nutrition. In Finland, for example, more than 1,500 employees (20% of UPMpersonnel in Finland) participated in different types of health and wellbeing programmes in 2017.

14 15 16 17

UPM Energy

UPM Raflatac

UPM Plywood

UPM Biorefining

UPM Paper ENA

UPM Specialty Papers

■ Accidents at work ■ Sick leave

SIGNIFICANCE • People are at the core of business. Ensuring the health and safety of employees, visitors and all other people impacted by our operations is of paramount importance • Employees’ wellbeing is built on supportive working environment, healthy lifestyle and work-life balance • Safety and wellbeing have a direct impact on employee engagement and UPM’s business success

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

14 15 16 17

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

TARGET • Ensure safe and healthy working environment and wellbeing of employees and contractors

OUR WAY • Development of preventive safety culture • Training of personnel and contractors on safe working practices and safety requirements • Regular audits and evaluations of all safety processes • Correcting identified safety issues or vulnerabilities quickly • One Safety — a global UPM reporting tool • Close co-operation with employees and external occupational health organisations • Quarterly health-related themes • Focus on 2030 targets on preventive safety culture, LTAF, TRIF and absenteeism rate

SAFETY AS A TOP PRIORITY

UPM Raflatac’s project to extend a storage area and install a new coating line in the Wroclaw factory, Poland, involved a meticulous approach to safety right from the start. Safety rules were included in the agreement with the contractors and the main contractors were required to have their safety specialist present on site. A lot of progress was achieved through discussions, under standing what kind of work needed to be done and regularly exploring ways to improve safety with contractor supervisors. At the peak of the project, there were approximately 100 contractors’ employees on site every day. In the daily meetings, safety was always included as the first point on the agenda. UPM’s six life-saving standards have played an important part in the day-to-day work throughout the project. The topics were discussed at the first training sessions with the contractors.

Coverage of One Safety tool 100% of UPM employees since the beginning of 2018

In 2017, a total of

47,800 safety-related near-miss and safety observation reports were recorded

33,000 safety walks and discussions took place