UPM Annual Report 2017

Governance

In brief

Strategy

Businesses

Stakeholders

Accounts

GRI content index – short version

UPM follows the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards in its corporate responsibility reporting. The reporting has been prepared in accordance with the GRI Standards: Core option. This shortened version of the GRI index shows where the disclosures of material topics are addressed in the Annual Report and UPM’s internet pages. More information on the general 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 2017 GRI index = GRI content index, published as pdf on www.upm.com .

The English version of the corporate responsibility information for 2017 has been assured by an independent third party, PricewaterhouseCoopers Oy (see the Independent Assurance Report on page 92), and identified as assured in the GRI content index. Congruence between the English and Finnish versions has been checked.

The company is committed to the principles of inclusivity, materiality and responsiveness as defined in the AA1000 AccountAbility Principles Standard (2008). UPM provides comprehensive environ­ mental information, verified by third parties, on all aspects from corporate level to the mills and individual products. Ecolabelled products, product declarations and certified operations inform stakeholders about the company’s sustainability, transparency and risk management (read more about UPM’s product stewardship on page 60).

GRI STANDARD

DISCLOSURE

LOCATION

OMISSION 1) ASSURANCE 2)

GRI STANDARD

DISCLOSURE

LOCATION

OMISSION 1) ASSURANCE 2)

GRI 100: Universal standards GRI 102: General Disclosures 2016 1)

GRI 400: Social Standard Series GRI 401: Employment 2016

102–1 to 102–13 Organizational Profile

AR, web

102-8

401–1 New employee hires and employee turnover

AR 46, web

x x

102–14 to 102–15 Strategy

AR AR

GRI 402: Labor/Management Relations 2016 GRI 403: Occupational Health and Safety 2016

402–1 Minimum notice periods regarding operational changes

GRI index

102–16 to 102–17 Ethics and integrity

403–1 Workers representation in formal joint management-worker health and safety committees 403–2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities 403–3 Workers with high incidence or high risk of diseases related to their occupation 404–1 Average hours of training per year per employee 404–2 Programs for upgrading employee skills and transition assistance programs 404–3 Percentage of employees receiving regular performance and career development reviews UPM–1 Human Capital Return on Investment (UPM indicator) 405-2 Ratio of basic salary and remuneration of women to men AR 180 406–1 Incidents of discrimination and corrective actions taken 407–1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk 408–1 Operations and suppliers at significant risk for incidents of child labor AR 77 AR 49 AR 46 405–1 Diversity of governance bodies and employees

x

102–18 to 102–31 Governance 102–33 to 102–36

AR, web

AR 46,49, web

x

x

102–40 to 102–44 Stakeholder Engagement 102–45 to 102–56 Reporting practice

AR, web

102-41

AR, GRI index

GRI index

x

GRI 103: Management Approach 2016

103–1 Explanation of the material topic and its boundary 103–2 The management approach and its components 103–3 Evaluation of the management approach 201–1 Direct economic value generated and distributed 201–2 Financial implications and other risks and opportunities due to climate change. 201–3 Defined benefit plan obligations and other retirement 201–4 Financial assistance received from government 202–2 Proportion of senior management hired from the local community 204–1 Proportion of spending on local suppliers 205–1 Operations assessed for risks related to corruption 205–2 Communication and training about anti-corruption policies and procedures 205–3 Confirmed incidents of corruption and actions taken

GRI index GRI index GRI index

GRI 404: Training and Education 2016

x

x x

AR 45–46, GRI index

GRI 200: Economic Standard Series GRI 201: Economic Performance 2016

AR 17, 47

x

x

AR 59

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

AR 20–23, 70

x

GRI index

x x x x x

GRI 405: Diversity and Equal Oppornity 2016

AR 46, 78, 180, web

AR 126–129 AR 123–124

GRI 202: Market Presence 2016

GRI index

GRI 406: Non-discrimination 2016 GRI 407: Freedom of Association and Collective Bargaining 2016

GRI index

GRI 203: Indirect Economic Impacts 2016 203–2 Significant indirect economic impacts

AR 58, 74–75, web

GRI 204: Procurement Practices 2016

GRI index

GRI 408: Child Labor 2016

GRI index

x

GRI 205: Anti-corruption 2016

AR 105

GRI index

x

GRI 409: Forced or Compulsory Labor 2016 409–1 Operations and suppliers at significant risk for incidents of forced or compulsory labor GRI 411: Rights of Indigenous People 2016 411–1 Incidents of violations involving rights of indigenous peoples GRI index GRI 412: Human Rights Assessment 2016 412–1 Operations that have been subject to human rights reviews or impact assessments AR 19, 105 GRI index

x

AR 77

x x x x

GRI 206: Anti-competitive behaviour 2016 206–1 Legal action for anti-competitive behaviour, anti-trust, and monopoly practices

GRI index

GRI 300: Environmental Standard Series 1) GRI 301: Materials 2016

412–2 Employee training on human rights policies or procedures 412–3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening 413–1 Operations with local community engagement, impact assessments, and development programs 413–2 Operations with significant actual and potential negative impacts on local communities

GRI index GRI index

301–1 Materials used by weight or volume 301–2 Recycled input materials used 302–1 Energy consumption within the organization

AR 74, web AR 65, web

GRI 302: Energy 2016

AR 71, 74, 181, web

GRI 413: Local Communities 2016

GRI index

x

x

302–3 Energy intensity

web

GRI index

x

302–4 Reduction of energy consumption 303–1 Water withdrawal by source

AR 70 AR 74

GRI 414: Supplier Social Assessment 2016 414–1 New suppliers that were screened using social criteria

AR 65

x x x x x x

GRI 303: Water 2016

414–2 Negative social impacts in the supply chain and actions taken GRI index

x

303–2 Water sources significantly affected by withdrawal of water AR 69, web

GRI 415: Public Policy 2016

415–1 Political contributions

AR 52

GRI 304: Biodiversity 2016

304–1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 304–2 Significant impacts of activities, products, and services on biodiversity

AR 62–63, web

GRI 416: Customer Health and Safety 2016 416–1 Assessment of the health and safety impacts of product and service categories AR 60

AR 62–63, web

x

GRI 417: Marketing and Labeling 2016

417–1 Requirements for product and service information and labeling AR 60–61

GRI 419: Socioeconomic compliance 2016 419–1 Non-compliance with laws and regulations in the social and economic area

GRI index

304–3 Habitats protected or restored

AR 62–63, web

x x

304–4 IUCN Red List species and national conservation list species with habitats in areas affected by operations

web

1) See actual GRI content index for general standard disclosure as well as for omissions, explanations and reporting principles. 2) The assurance report by PricewaterhouseCoopers Oy can be found on page 92.

GRI 300: Environmental Standard Series GRI 305: Emissions 2016

305–1 Direct (Scope 1) GHG emissions

AR 75, 181, web

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

305–2 Energy indirect (Scope 2) GHG emissions 305–3 Other indirect (Scope 3) GHG emissions

AR 181, web AR 181, web

305–4 GHG emissions intensity 305–5 Reduction of GHG emissions

AR 181

AR 70 AR 75

305–7 NOx, SOx, and other significant air emissions 306–1 Water discharge by quality and destination

GRI 306: Effluents and Waste 2016

AR 68, 75 AR 75, web

306–2 Waste by type and disposal method

306–3 Significant spills

AR 67

306–5 Water bodies affected by water discharges and/or runoff

GRI index

GRI 307: Environmental Compliance 2016 307–1 Non-compliance with environmental laws and regulations

AR 67

GRI 308: Supplier Environmental

308–1 New suppliers that were screened using environmental criteria AR 65

Assessment 2016

308–2 Negative environmental impacts in the supply chain and actions taken

GRI index

x

CONTENTS

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91

UPM Annual Report 2017

UPM Annual Report 2017