UPM Annual Report 2021
ACCOUNTS FOR 2021
ACTIONS FOR ENVIRONMENT
REDUCING ENERGY USE AND EMISSIONS TO AIR Our energy portfolio consists mostly of energy sources that do not cause fossil CO 2 emissions. We use energy efficiently and increase the share of renewable and low-emission energy.
We are constantly seeking new solutions to minimise our environmental impact by selecting optimised energy sources and generation methods, as well as by improv ing energy efficiency. We favour the use of renewable and other carbon-neutral energy sources. Bio mass-based fuels account for 70% (72%) of our fuel usage. As the use of weather-dependent energy sources increases around the world, the need for balancing power within energy systems will grow. Hydropower is the most effective and sustainable method of produc ing balancing power and we have significant hydropower assets in Finland. The majority of our energy consumption originates from the paper and pulp mills’ production where electricity and heat are needed in mechanical pulping, pumping and drying. We generate steam and elec tricity through combined heat and power (CHP) plants at all of our pulp mills and at almost all of our paper mills. At some mills, all or part of this energy is produced by external or co-owned power plants. We are looking for ways to improve our energy efficiency across our operations with audits, innovations and investments. In 2021, we reached our annual target of increasing energy efficiency by 1%. As a result of the energy-saving invest ments carried out in 2021, we reduced our energy costs by EUR 1.7 (0.3)million, avoided emitting 5,400 (2,400) tonnes of CO 2 and achieved a 33,000 (13,000)MWh reduction in energy consumption. The annual savings are Continuous improvement in energy efficiency
OUR WAY • Committed to the UN Business Ambition for 1.5°C and The Climate Pledge • Committed to continuous improvements in energy efficiency and to an increased share of renewable and low-emission energy • Scientific verification of our CO 2 emission reduction targets • Use of Best Available Techniques (BAT) • Focus on 2030 responsibility targets UPMEnergy is investing in CO 2 free pow er generation. TVO’s Olkiluoto 3 EPR nucle ar power plant unit in Finland is scheduled to commence regular electricity production in July 2022. The extensive modernisation project at our hydropower plant in Kuusan koski, Finland will also be finalised in the first quarter of 2023 (page 44). The UPMChangshu paper mill in China has actively participated in the newly opened green electricity market in China by signing a contract for 14 GWh of solar power for 2021 with the first batch of companies. This is a step forward for the mill in using renewable energy. UPMTimber became the first business to use only renewable energy in production in 2020. In 2021, UPMPlywood decided to gradually shift to only using zero-carbon electricity. Currently, six of UPMRaflatac's ten factories use 100% renewable electricity. In 2021, we set a new target to stop using coal and peat in on-site energy genera
IMPACT • Minimising the use of fossil fuels is the most important way to mitigate climate change TARGETS • Significantly cut fossil CO 2 emissions across the whole supply chain and increase energy efficiency • Minimise other air emissions in production and transportation
EUR 1.9 (0.8)million, 6,100 (8,600) tonnes of CO 2 and 35,000 (44,000)MWh of energy. Reducing emissions to air in production In 2021, we decreased our fossil CO 2 emissions from energy generation (Scope 1) and purchased electricity (Scope 2) by 8% compared to the previous year. This was possible due to an increase in electricity purchased from CO 2 free sources and due to a paper mill closure in Finland and the sale of a paper mill in the UK. At the UPMNordland paper mill in Ger many, we are building a natural gas-based combined heat and power (CHP) plant. At the UPMHürth paper mill in Germany, we have partnered with E.ON to replace the fossil fuel-based steam supply with a biomass-fired boiler that will provide steam for the mill. Both projects are expected to be finalised in 2022. After completion, they will contribute to reaching our fossil CO 2 emission reduction target for 2030.
UPM ANNUAL REPORT 2021
UPM ANNUAL REPORT 2021
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