UPM Annual Report 2021

RESPONSIBILITY

UPM

BEYOND FOSSILS

STRATEGY

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2021

ment, are used to generate energy for mill sites. The fibrous residues that are not incinerated are used in brick manufacturing or as soil amendment materials. Overall, ash originating from bio

mass-based energy generation makes up the largest share of our solid waste. In 2021, 96% of the ash was used in various applications, such as in soil stabilisation, road construction and the cement industry,

or internally to replace caustic soda or as raw material for paper filler production. In particular, the UPM Caledonian paper mill in Scotland has significantly improved the use rate of their ash. The mill has experi enced challenges due to changes in local regulation. During recent years, several recovery options were explored. Using ash in manufacturing of cement blocks is today the main end use and has resulted to good ash utilisation rate of 98% in 2021. UPM BioVerno renewable diesel and naphtha are produced from crude tall oil, a residue from chemical pulp production. Lignin, a side stream of pulp production, is used in WISA BioBond gluing technology, replacing fossil-based phenol used in ply wood manufacturing. The use widened in 2021 and will be further expanded in 2022. If lignin is not used as material its energy content is recovered. Lime is another side stream of pulp production which can be used as liming agent or for pH adjustment. We are also actively enhancing circu larity over the product lifecycle by using recovered materials. UPM Raflatac collects label waste frommore than 250 partners globally and recycles it with its RafCycle® service. The service takes the self-adhesive label waste and gives it new life as paper liner, magazine paper or biocomposite ma terial. UPM Specialty Papers has developed UPM LinerLoop™, a unique concept where collected release liners are desiliconised and used to produce new high-performance release liner base papers. We also have a long history of using recovered paper to produce new graphic paper. In 2021, we used approximately 1.7 (1.8) million tonnes of recovered paper. Recycled fibre account ed for 22% (26%) of all fibre materials used in UPM’s paper production. We are amember of INGEDE (International Association of the Deinking Industry), and a shareholder of CLIC Innovation Ltd., a Finn ish open innovation cluster with the aimof finding breakthrough solutions in bioecono my, circular economy and energy systems. We are also amember of 4evergreen, a cross-in dustry alliance to promote low-carbon and circular fibre-based packaging (page 88). UPMRaflatac is an active member of the Ellen MacArthur Foundation, the global Active engagement with circular economy networks

Making use of residues, side streams and recovered materials Most organic production residues, such as bark, wood residues and fibre-containing solids from deinking and effluent treat

Process waste to landfills 1,000 t

120

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CIRCULAR BIOECONOMY AT UPM

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30

FUTURE BEYOND FOSSILS

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17

21

19

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Target

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No process waste to landfills or to incineration without energy recovery

TARGETS 2030

S T A

Residues, sidestreams,

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CIRCULAR ECONOMY PRODUCTS FROM PULP SIDE STREAMS

O N

A B L

T E R

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recovered materials

TARGETS 2030 100% of nutrients used at effluent treatment from recycled sources by 2030 89% recycling or recovery achieved for our total process waste 35% achieved

C A

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UPM Pulp and Tapojärvi Oy, a Finnish specialist in mining and mill services, are working together to find new ways to use the side streams generated from pulp mills. Moist green liquor dregs are one of the trickiest side streams to recycle and UPM has been trying to find a solution to this for a long time. UPM’s three pulp mills in Finland generate approximately 60,000 tonnes of waste dregs a year. In the project, green liquor dregs are processed into construction materials, such as belite cement, the production of which generates up to 85% fewer CO 2 emissions than conventional cement. Another product under development, low-carbon stabilising cement, can be used to strengthen and reinforce the soil, increasing its bearing capacity. The treatment of green liquor dregs requires the proper machinery and this was found at the UPM Tervasaari mill in Valkea koski, Finland. Extensive industrial-scale tri als will be carried out in the spring of 2022 in the decommissioned lime kiln. The idea is to utilise both green liquor dregs and ash. Use of side streams improves the resource efficiency of the pulp business. Green liquor dregs will soon no longer be dumped into landfills but instead be used as raw material for products with the potential to decrease emissions in the construction industry.

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thought leader of the transition towards a circular economy. UPM Specialty Papers and UPMRaflatac are members of CELAB, to further promote the development of a circular business model in the self-adhesive label industry. Together with Pohjolan Voima, we are participating in the Finnish UUMA4 programme targeting to enhance the use of secondary rawmaterials in earth construc tion. We are also active in several projects related to side stream use.

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Innovation for the future on page 28 Sustainable product lifecycle on page 86

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www.upm.com/responsibility

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UPM ANNUAL REPORT 2021

UPM ANNUAL REPORT 2021