UPM Annual Report 2018

First page Table of contents Previous page 76-77 Next page Last page

UPM AT A GLANCE

STRATEGY

BUSINESSES

SOCIETY AND ENVIRONMENT

GOVERNANCE AND COMPLIANCE

REPORT OF THE BOARD OF DIRECTORS

FINANCIAL STATEMENTS

AUDITOR’S REPORT

OTHER FINANCIAL INFORMATION

UPM’s total waste to landfills 1,000 t

STICKING TOGETHER

200

A well-functioning recycling process ensures that all the recovered paper material is used as effectively as possible. Enhancing recyclability was a key target when UPM Raflatac, UPM Communication Papers and UPM’s Central European Research Centre joined forces. The challenge was that the glues used in magazine stickers have caused problems in the paper recycling process. A solution to the problem was found through cooperation, when experts from various businesses developed a new type of adhesive. The new recycling- friendly adhesive ensures that labels are no longer an issue in the paper recycling stream. The paper recycling and production knowledge of UPM Communication Papers and R&D with the product development knowledge of UPM Raflatac were closely linked in the collaboration. INGEDE, the International Association of the Deinking Industry, was also involved in the product development process.

150

100

12 11 10

13 14 15 16 18 17

The total amount of solid waste sent to landfill has decreased over the last ten years by 19%. However, in 2013 the amount increased significantly because former reuse possibilities for ash ceased at one of the paper mills. Starting from 2014, new methods of recycling were established.

90%

of UPM’s total process waste recycled or recovered

TARGETS 2030

READ MORE: upm.com/circulareconomy

CIRCULAR ECONOMY AT THE CORE

• UPM is the world’s largest consumer of recovered paper for the production of its graphic papers, using 2.5 (2.6) million tonnes of recovered paper in 2018. This means that recycled fibre represents approximately 30% of all fibre rawmaterials used in UPM’s paper production. • The recycled release base paper product family is the first commercial glassine product of its kind. The release base papers used in the production are collected from end users and desiliconised in a unique process. The pulp is then reused for papermaking. • Lignin, a by-product from pulp production, is used inWISA BioBond gluing technology, which is used in plywood manufacturing. • Ash from biomass-based energy generation is used in several product applications from soil stabilisation to the cement industry, or internally replacing caustic soda or PCC (read more on the right). • The use of recycled nutrients at UPM’s effluent treatment plants is increasing steadily. • A recycled fertilizer was developed and tested together with Yara Suomi in a project co-funded by the FinnishMinistry of the Environment. The sludge from our Finnish pulp and paper mills’ manufacturing processes was dried and complemented with mineral nutrients. No profitable business could be generated but collaboration continues to find further end-uses for sludge. Target of zero solid waste to landfills We aim to become a Zero SolidWaste to Landfill company globally by 2030. This means that UPMwill not deposit any process waste at landfill sites, and no process waste will be incinerated without energy recovery. Ash originating from bioenergy production forms the most significant proportion of our solid waste, with 94% being recycled. Nearly all organic production residues, including bark and wood residues as well as fibre- containing solids from deinking and effluent treatment, are used in energy generation at mill sites. UPM’s Zero SolidWaste to Landfill target has already been achieved at many of UPM’s production sites. In Finland, UPM implemented a Zero Solid Waste project to discover best practice for certain waste streams, which helped mills to reach zero solid waste status. Special effort is put on green liquor dregs as one of the most challenging residues from pulp production, and a new product innovation is currently under development.

Many of our products are made from side streams, residues and waste. We actively develop new solutions to speed up the transition to circular economy and the responsible use of renewable materials, responding to climate change and resource scarcity. Recycling is part of a circular economy We have developed innovative ways to reduce our own waste and residues and to recycle waste into new products. Examples of our efforts to promote circular economy include the following: • UPMBioVerno renewable diesel and naphtha are produced from crude tall oil, a residue of chemical pulp production. • UPMRaflatac collects label waste from its customers and partners, and recycles it using a variety of RafCycle® recycling solutions, including UPMProFi. • UPMRaflatac has developed innovative solutions such as thin film • UPMProFi biocomposite utilises the cellulose fibres and plastic polymers generated as manufacturing surplus from self-adhesive label material production. In 2018, 30% of plastic polymers used in UPM ProFi are based on recycled materials and the share will be increased further. materials, wash-off adhesives and label materials containing recycled content to promote a circular plastics economy.

SIGNIFICANCE • Circular economy addresses two key global challenges: climate change and resource scarcity • Demand and competition for raw materials are growing • Circular economy makes use of materials more efficient and creates a competitive advantage TARGET • Promote material efficiency and circular economy – reduce, reuse and recycle OUR WAY • Circular economy thinking • Reuse materials and products several times and create value through smart solutions • Recycle and reuse production waste and utilise by-products • Sustainable and innovative new businesses and solutions for a future beyond fossils • Focus on 2030 responsibility target: no process waste to landfills or incineration without energy recovery

A BREAKTHROUGH IN RECYCLING ASH

The UPM Schongau paper mill in Germany and SMI developed together a new process for precipitated calcium carbonate (PCC) from residue ash. Around 30% of traditional calcium carbonate, manufactured by burning natural limestone at a very high temperature, can now be replaced. The new product has had a number of positive impacts at the mill. Annually, it reduces CO 2 emissions by 10,800 t, lowers energy consumption by 13,500 MWh and has led to a reduction in heavy traffic on the roads, cutting the number of truck rides into and out of the mill by 2,500. ”The carbon dioxide that results from the burning process is captured directly within this alternative filler material. This way, it is not released into the environment. For us, this pioneering manufacturing process and the end product are perfect examples of innovation and resource efficiency, leading us towards closing the natural resource circle,” says Heiko Hilbert , leading the project at UPM Schongau.