SUSTAINABLE FORESTRY Our business is based on the sustainable use of forests: We grow and harvest forests to create renewable and sustainable materials and products.
In Finland, we continued transplant- ing threatened wood-inhabiting fungi in cooperation with the Natural Resources Institute Finland and the University of Helsinki. Together with the Centre for Economic Development, Transport and the Environment and other stakeholders, we implemented species and habitat projects, such as restoring the habitat of the endan- gered northern crested newt, implementing artificial burnings and removing invasive alien species from burning environments. We also started a project to restore spring habitats. In collaboration with the Osprey Foundation and North Carelian Ornitho- logical Society, we continued building a network of artificial nests for birds of prey. We continued to participate in for- est- and environment-related stakeholder forums. In Finland, we took part in a biodiversity roundtable process led by the Ministries of Environment and Agriculture and Forestry. We also continued to actively collaborate with FSC International to promote sustainable forest management globally. We joined PEFC International as an international stakeholder member to further strengthen our work to develop sustainable forestry.
In 2020, improvement was measured in all quantitive biodiversity indicators. To gain more and more robust data on biodi- versity, further indicators and monitoring processes are developed. For example, the regular monitoring of deadwood is being developed to be able to include it to our list of indicators. In 2020, we developed a biodiversity framework for our plantations and other company-owned land in Uruguay. (Read more on page 44.) Third-party-verified supply chain We always know the origin of our wood. Our wood does not originate from illegal logging or from areas where human rights or forests with high conservation values are threat- ened. Our wood sourcing does not cause land-use change. We don’t use genetically modified trees. Our compliance with these requirements is confirmed by independent third-party verification. All UPM-owned forests are certified or in the process of certification if acquired recently. We also promote forest certifica- tion to private forest owners and our other customers. We have established the FSC® group certification scheme. In 2020, our FSC group covered approximately 460,000 hectares in Finland and over 13,000 hec- tares in Uruguay. We actively participate in developing forest certification on a national and global level. We have active dialogue with the FSC® and PEFC organisations and we par- ticipate in national and international work- ing groups for certification development. CDP recognised UPM as one of only ten Triple A List companies globally for its significant actions to mitigate climate risk and prevent deforestation. Collaboration with stakeholders For decades, we have worked together with researchers, academic institutions, environ- mental organisations and other stakehold- ers to develop our sustainable forestry prac- tices. In 2020, we continued our long-time partnerships with the Osprey Foundation in Finland and with Aves Uruguay and Vida Silvestre in Uruguay. In Russia, we ran a joint project with WWF Russia and pub- lished joint guidelines on sustainable forest management for wood suppliers.
SIGNIFICANCE • Renewable wood is our most important raw material • Forest biodiversity is the basis for all benefits gained from forests • Sustainable forestry is an important means to adapt to climate change • Forests and wood-based products play a unique role in climate change mitigation • Forests are part of the water cycle • Forests support the wellbeing of local communities TARGETS • Climate-positive forestry and maintaining forest carbon sinks • Improving and maintaining biodiversity • Securing all forest ecosystem services OUR WAY • Third-party-verified and credible certification systems for all of our own forests • Third-party-verified and certified chain of custody systems to ensure 100% wood traceability • No wood from tropical rainforests or from forest plantations that have been established by converting natural forests • No operations in areas where the rights of indigenous peoples are endangered • No plantation operations in water- stressed areas • Strong stakeholder engagement • Focus on 2030 responsibility targets amounts of oak and black alder saplings to increase biodiversity. The intensified competi- tion within the more diverse group of species brings balance to the ecosystem and reduces the risk that one species will overpower the others and cause damage. Most species provide opportunities to expand the range of wood-based products. Thriving mixed forests also increase carbon sequestra- tion, which is important in combating climate change. UPM is the first forest company to set the target to verifiably improve the state of forest nature in its own forests in Finland.
Finland and Uruguay are the most impor- tant countries for our wood sourcing. At the end of 2020, we owned a total of about 870,000 hectares of forest land in Finland, Uruguay and the USA. Most of this land is in Finland, totalling roughly 515,000 hectares, followed by Uruguay (280,000 hectares) and the United States (76,000 hectares). We also lease about 152,000 hectares in Uruguay and manage around 1.2 million hectares of private forest globally. We fol- low the same strict sustainability standards everywhere we operate. Approximately 180,000 hectares (20%) of the land we own is protected. Protected areas include valuable habitats, natural forests and other valuable areas. We own three modern nurseries, one in Finland and two in Uruguay. The nurseries provide high-quality seedlings and are an important platform for research. In Fin- land, we started to produce small amounts of alder and oak. Increasing the share of deciduous trees in our Finnish forests has positive impacts on biodiversity, climate and forest health (read more on the right). In 2020, we started to construct our third nursery in Central Uruguay. The new nursery, scheduled to start-up in 2022, will ensure the annual planting capacity required to supply the new UPM Paso de los Toros pulp mill is met. Forests and climate We are committed to climate-positive forestry and improving biodiversity. Forests and forest biodiversity are both beneficial for the climate. We want to ensure that our forests continue to act as carbon sinks, stay
resilient and diverse in changing condi- tions, and continue to thrive and grow for generations to come. Maintaining our forests as carbon sinks means that they growmore than we harvest. We manage our forests to main- tain their health and ability to grow and absorb more carbon. In 2020, the five year annual average carbon sink of UPM’s own and leased forests was approximately 6.1 million tonnes of CO 2 equivalents (1.1 mil- lion tonnes in Finland, 4.9 in Uruguay and 0.1 in the US). Together with the scientific community we further develop the meas- urements and monitoring of forest carbon. Harmonising the methodologies for differ- ent countries for both soil and tree carbon is the key area of development. Improving biodiversity We continuously work to have a positive impact on biodiversity in the company forests in Finland. We implement biodi- versity actions as part of everyday forestry operations, through forest protection and collaborative stakeholder projects. In 2020, we published our biodiversity indicators for monitoring our progress towards the target. The indicators are developed together with researchers and currently are:
Certified fibre share %
Responsible sourcing on page 80 Responsible product lifecycle on page 82
100% certified fibre by 2030
CASE DECIDUOUS TREES IMPROVE CLIMATE RESISTANCE
UPM FORESTS AND PLANTATIONS 2008
Forest and plantation land, own and leased (1,000 ha)
UPM will double the number of deciduous trees in its forests in Finland. Deciduous trees improve forest growth and yield and increase the diversity of forest species. Biodiversity makes forests more resilient to the effects of climate change such as adverse weather conditions and remain healthier. With the goal, one fifth of trees on sites that accommodate birch will be deciduous. UPM’s own nursery in Joroinen has also grown small
• Tree species • Forest age
Forest growth (million m 3 )
• Forest structure • Protected areas • Valuable habitats • Habitat restoration • Species and habitat projects • Indicator development
Wood harvested from UPM forests and planta- tions (million m 3 ) Value of forests and plantations, including land (EURm)