UPM Annual Report 2019

UPM in changing world

2030

Sustainable and safe solutions for global consumer demand

2020

Climate solutions

Innovation

THE NEED FOR RESPONSIBLE CHOICES

Responsible operations and value chain

Circular economy

A FUTURE BEYOND FOSSILS

Our innovations create value and business opportunities that go beyond fossils. We offer renewable, recyclable and low-impact alternatives to non-renewable materials.

High performing people

Sustainable forestry

Renewable and recyclable products, and innovations based on these products, are an essential part of the bioeconomy, both now and in the future.

and is a more effective carbon sink in the long term. Sustainable forestry safeguards biodiversity, the good status of water bodies and the benefits of forests for humans. Sustainable forest management requires investment and continuous development. This secures the economic value of forests and wood supply. The benefits are widely distributed across rural areas, balancing out regional disparities. This is the foundation of a sustainable bioeconomy.

Forests play an important role in mitigating climate change, and sustainable forest management ensures that forests are adapting to the changing climate. Renewable wood and recyclable products reduce the world’s dependency on fossil- based and other non-renewable raw materials.

sustainable choices. The demand for responsibly produced renewable materials and products increases as a result of sustainable consumer choices and increasing regulation.

We need sustainable choices Population growth, urbanisation and rising living standards, particularly in emerging markets in Asia, create new consumer demand that stretches far into the future. Demographic change creates new needs. Digitalisation and e-commerce change consumer behaviour. The demand for daily consumer goods and the need for packaging materials and labelling continue to increase. People also move more, use more energy and invest in lifestyle choices, all of which increases the demand for our products. While consumer demand grows, natural resources are dwindling. Mitigating climate change and tackling other environmental challenges requires

Responsible operations and a circular economy create a competitive advantage A circular economy and resource efficiency offer solutions to climate change and the scarcity of natural resources. Many of the challenges we face could be solved entirely or in part if materials and products were recycled and used more efficiently. Globally, approximately 60% of the wood fibre used in the production of paper and boards is recycled. However, only some 18% of plastics and 20% of electronic waste is recycled. Responsible business conduct and product design encompass the entire value chain, from sourcing rawmaterials to the recycling or disposal of end products.

We use and reuse our resources efficiently and ensure responsible business conduct throughout our value chain

We offer sustainable and safe solutions and innovate for a future beyond fossils

We commit to UN’s target to limit global temperature rise to 1.5°C

Sustainable forestry preserves forests and increases carbon sinks Sustainable forestry and land use respond to resource scarcity and climate change, while also creating the prerequisites for financial growth. A sustainably managed forest grows more, creates renewable raw materials, adapts better to climate change

Mitigating climate change is urgent The main cause of climate change is the use of fossil fuels. We must quickly reduce our usage and move to low-emission or zero-carbon energy sources. This requires a versatile energy portfolio that guarantees a sufficient supply of clean energy for society.

Climate actions on page 86 Sustainable forestry on page 88 Circular economy on page 96 Product stewardship on page 82 Innovation on page 22 and 52

We ensure sustainable forestry and keep forests full of life

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UPM IN CHANGING WORLD

UPM IN CHANGING WORLD

UPM ANNUAL REPORT 2019

UPM ANNUAL REPORT 2019

CONTENTS