UPM Annual Report 2020

CONTENTS

BEYOND FOSSILS 12

STRATEGY​

BUSINESSES

6

10

24

38

CEO REVIEW We are well positioned to grasp the opportunities that bioeconomy offers for value creation and business growth.

KEY FIGURES AND HIGHLIGHTS Our focus is to ensure the performance of all our operations.

GLOBAL MEGATRENDS DRIVE DEMAND ​TOWARDS A FUTURE BEYOND FOSSILS FROM FOREST TO SUSTAINABLE PRODUCTS​

14

BIOFORE STRATEGY ​ENSURING PERFORMANCE SPEARHEADS FOR GROWTH​ INNOVATING FOR THE FUTURE​ VALUE​ FROM RESPONSIBILITY RISKS AND OPPORTUNITIES

26 28 30 32 34 36

THE BIOFORE COMPANY UPM BIOREFINING UPM ENERGY UPM RAFLATAC​ UPM SPECIALTY PAPERS UPM COMMUNICATION PAPERS UPM PLYWOOD UPM BIOCHEMICALS UPM BIOMEDICALS UPM BIOCOMPOSITES ACTIONS FOR FUTURE GROWTH

40 42 48 50 52 54 56 58 60 61 62

16

30

18

TRANSFORMATIVE GROWTH PROJECTS PROCEEDED

CREATING SHAREHOLDER VALUE​

20

OUR RESPONSIBILITY TARGETS FOR 2030

22

Our pulp project in Uruguay and biochemicals project in Germany are on budget and well on track with the planned start-up timeline.

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2020

64

98

116

74

16

COMMITTED TO CLIMATE ACTIONS

SAFETY FIRST Fast response and enabling safety culture have helped us continue operations during the coronavirus pandemic.

66

CREATING VALUE WITH PEOPLE

SIGNIFICANT DECISIONS​ REMUNERATION BOARD OF DIRECTORS​ GROUP EXECUTIVE TEAM ASSURANCE REPORT

100 107 110 112 114

REPORT OF THE BOARD OF DIRECTORS FINANCIAL STATEMENTS AUDITOR’S REPORT OTHER FINANCIAL INFORMATION

118

Our aspiration is high when we look at the opportunities to respond to the global challenge.

80

RESPONSIBILITY THROUGHOUT THE VALUE CHAIN

146 215 219

86

ACTIONS FOR ENVIRONMENT

96

SUMMARY OF OUR SOCIETAL AND ENVIRONMENTAL IMPACTS

4

5

UPM ANNUAL REPORT 2020

UPM ANNUAL REPORT 2020