UPM Annual Report 2019

People

Based on local need, we also launched several health and wellbeing initiatives at various UPMsites and in various businesses. Having a zero-accident mindset In 2019, UPM’s lost-time accident frequency (LTAF: the number of lost-time work accidents per one million hours of work) was 2.9 (2.7). The total recordable injury frequency (TRIF) was 7.1 (6.9). The TRIF includes LTA cases as well as cases of modified duties and accidents requiring medical treatment. The frequency of accidents involving UPM’s contractors was 4.2 (LTAF) and 6.2 (TRIF) in 2019. Despite our efforts for continuous improvement, there was one fatal accident and three serious accidents in 2019. The accidents were thoroughly investigated and corrective actions were taken. Key learning points were also shared in order to prevent serious accidents in the future. Our permanent target is to have zero accidents, with good safety performance recognised through company-wide safety awards. In 2019, the UPMHürth paper mill in Germany received the UPMSafety Award for making long-term improvements.

mindset and creating newmomentum in safety. We actively use the global One Safety tool for proactively reporting safety incidents. All our employees and contractors are required to report all near-misses and to make safety and environmental observations. One Safety tool supports us in achieving our targets and allows us to proactively share the insights gained from incidents across the company. The tool also supports effective safety steering and OHS risk management. The One Safety mobile application, which allows employees to report their observations immediately, was launched in 2019. We are working closely with employees and external occupational health organisations to support the wellbeing of our personnel. Our aim is to support the continuous improvement of employees’ health, quality of life and ability to perform. Wellbeing topics are covered in e-learning training sessions, which are highly applicable to both work life and free time. Promoting employees’ health and wellbeing

CASE

SETTING THE BAR TO ZERO ACCIDENTS Top management from corporate and mills gathered together at the UPM Safety Summit in Augsburg to discuss safety. Although the number of lost-time accidents has significantly declined over the past few years, our ultimate goal is to prevent all serious accidents. Safety and wellbeing have a direct impact on employee engagement and our business success. We have to pay more attention to our achievements and positive safety results. Having an established safety culture is the primary concern. We are pushing for leadership that encourages people to act responsibly. When people feel that they can have an impact on issues, they are more engaged with maintaining safety.

STRENGTHENING OUR SAFETY CULTURE Our proactive safety culture is based on our values, the UPM Code of Conduct and UPM Safety Rules.

In 2019, our OHS focus areas were contractor safety and the evaluation of the ISO 45001 occupational health and safety management system in all businesses. We have continued our work on the six life- saving standards and identification of the top risks, as well as OHS auditing. Annual

safety audits are an integral part of our OHS management system. Cross- functional auditing provides valuable feedback about selected OHS processes and daily activities. In 2019, we focused on further involving every employee in safety. New e-learnings

on safe driving and travelling and the six UPM life-saving standards were launched. The UPM Safety Summit brought together over 90 business leaders to learn about the latest world-class safety solutions and the human factor. The event was dedicated to our shared commitment to a zero-accident

In 2019, a total of 51,000

34,000 safety-related near-miss and safety observation reports were recorded safety walks and discussions took place

Total recordable injury frequency (TRIF)

Absenteeism rate %

20

4

3

15

2

10

1

5

0

0

15

16

17

18 19

Target

15

16

17

18 19

Target

UPM workforce Including contractors

Sick leave Accidents at work

Absenteeism rate below 2 for UPM employees

TARGETS 2030 TRIF below 2 for UPM workforce and contractors (continuous)

TARGETS 2030

4.0

6.8

achieved for “% absence hours from theoretical working time”

achieved for “Total injuries per one million hours worked”

72

73

OUR WAY

OUR WAY

UPM ANNUAL REPORT 2019

UPM ANNUAL REPORT 2019

CONTENTS