UPM Annual Report 2017

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Stakeholders

In brief

Strategy

Businesses

Governance

Accounts

Responsible water use

SIGNIFICANCE • Water resources around the world are under increasing pressure, but each watershed is unique • Forests have a crucial role in the water cycle • Water is an essential resource for production and is also needed for cooling machinery

UPM's pulp and paper mills continue working towards the 2030 targets: reducing effluent load (COD) and wastewater volume and using 100% recycled nutrients for effluent treatment. Examples of UPM's activities in 2017 include the efforts made at the UPMNordland paper mill in Germany and the UPMChangshu paper mill in China (read more on the right). The nutrient target was piloted at UPMKaukas, and UPM already has several mills utilising recycled nutrients at biological wastewater treatment plants. As UPM already optimises its use of nutrients, switching to recycled nutrients reduces local eutrophication as nutrients are removed from other nearby sources. The FinnishMinistry of the Environment has granted funding for a joint project established by UPM together with Yara to develop nutrient recycling, with funding granted for 2017–2018. The ecological state of the effluent discharge areas at UPMpulp and paper mill sites has been studied using a number of bio-indicators. The school project called Local waters, originally launched in Rauma, continued at UPMpulp and paper mill locations in Finland. The purpose of the project is to encourage pupils’ interest in natural sciences through hands-on research at waterways. In addition to UPM, the Finnish Environ ment Institute (SYKE), the organisation puhdasmerivesi.fi and local Rotary Clubs are involved in the project. Other stakeholder projects have taken place, for example at the River Oder in Poland in co-operation with the local WWF organisation and at the Jaguari River in Brazil in co-operation with various local parties. Hydropower plays an important role in UPM’s versatile energy production portfolio. In many areas, constructing hydropower facilities has affected the reproduction opportunities of migratory fish species. This has traditionally been compensated by fish planting obligations and fish management fees set by authorities. UPMparticipated in a two-year project to determine suitable means for restoring migratory fish stocks and supporting their natural reproduction. In 2017, UPM decided to participate in the project at the River Pielisjoki in Finland, in which learnings from earlier studies are being put into practice, to establish a hatching area for endangered lake salmon to reproduce in.

Water flows through every part of our business. It flows in and out of our production processes, it passes through our forests which help to purify and regulate its movement, and we even leverage its flow to create an important source of renewable energy.

TARGET • Minimise the negative impacts of operations on water resources

UPMuses water responsibly in terms of the company’s water consumption and effluent quality. This has also been acknowledged by the CDPWater Programwhich has rated UPM as one of the leaders on the 2017 A List for water. CDP’s Water Program annually identifies companies that have proven their leadership in the sustainable management of water through specific actions. UPM is a signatory of CEOWater Mandate by the UN Global Compact. Responsibility targets for 2030 encourage forward thinking Using less water also means using less electricity, chemicals and thermal energy. The water used in different processes is recycled as much as possible and returned to watersheds. All of UPM’s pulp and paper mills are required to have both a mechanical and a biological effluent treatment process. In order to ensure the best possible treatment result and to share best practices, UPM operates a global specialist network. The results have been positive and the number of incidents has decreased steadily.

OUR WAY • Operations in areas with sufficient water resources • Efficient water use with suitable recycling techniques • Treatment of used water with best available techniques • Water returned to original watersheds always when possible • Local co-operation to minimise negative impacts and ensure water availability to all • Focus on 2030 targets

UPM REDUCES WATER USE AT ITS PAPER MILLS

UPM has set challenging water-related responsibility targets for 2030, reflecting the Global Sustainable Development Goals (SDGs). The UPM Changshu paper mill in China and the UPM Nordland paper mill in Germany are at the forefront of developing new technologies which aim to reduce water use and cut emissions through an intensive R&D programme. In Germany, UPM Nordland will improve its wastewater treatment by investing in water purification technology. To be able to reuse treated wastewater in the paper mill process, organic material and dissolved salts have to be removed. After the treatment, approximately 20% of water can be reused at the first phase, which means the corresponding amount of fresh water, as well as wastewater sent to the river Ems, can be reduced. In China, the UPM Changshu mill aims to decrease water consumption by 50% per paper tonne. In addition, their wastewater discharge is approaching zero emissions. UPM is currently piloting new solutions and technologies, together with partners, to recycle the water after it is released from the wastewater treatment plant. The paper mills are making significant steps on the road towards closing water circulations, which is the ultimate goal.

UPM’s AOX load per tonne of bleached chemical pulp kg/t