UPM Annual Report 2021

RESPONSIBILITY

UPM

BEYOND FOSSILS

STRATEGY

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2021

suppliers were able to provide us their CO 2 emission data in 2021 and about 60% of our maritime deliveries are calculated with supplier data. Close co-operation with suppliers is needed to achieve the reduction target. In 2022, a group-wide programme to manage supply chain emissions will be started. Another positive development is the emission reduction of maritime transport with an investment in modern vessels (left).

tion by 2030. Currently coal is the main fuel at the UPMChangshu mill in China, where alternatives have not been available historically. Peat is used in Finland. On the whole, coal and peat usage decreased by 9% compared to year 2020. At UPMChangshu, the modification of the natural gas boiler was finalised in 2020, resulting in a further reduction of NOx emissions and achieving a very low emis sion rate of 50 mg/Nm3. Odour issues have been reported at some of our pulp and paper mills, especially during the summer. Odour is mainly gen erated by an accumulation of solids in the process and the related sulphur compounds, which is then typically released through cooling towers and aerators. The problem is usually solved by keeping process delays within the operating window, avoiding any accumulation of solids and limiting the us age of sulphur. In some cases, oxidation may be required to improve the situation. In line with our Clean Run approach, we investi gated the cases thoroughly and shared best practices across mills. Collaboration with supply chain to reduce emissions In addition to fossil CO 2 emissions fromour own energy generation (Scope 1) and pur chased electricity (Scope 2), we also evaluate the emissions fromother indirect sources (Scope 3), such as purchasedmaterials, transportation and the processing of sold products. Our evaluation shows that 44%of our overall CO 2 emissions are directly related to our energy use and 56% to Scope 3. In early 2020, we set a target to reduce the fossil CO 2 emission levels of our supply chain by 30% by 2030 (from 2018 levels). Our focus is on reducing emissions from lo gistics and the most relevant rawmaterials such as pulp, pigments, chemicals and paper. We are collaborating with Together for Sustainability (TfS), a chemical industry initiative, to create standardised ways of reporting emissions from purchased products, rawmaterials and transportation. In 2021, we continued to work closely with several suppliers about their CO 2 emis sion reporting. We aim to receive more actual data from our suppliers instead of using average CO 2 factors from databases. For example, already 64% of our pigment

Sources of UPM’s fossil CO  emissions

On-site energy generation 24%, 2.7 million t

Purchased electricity 20%, 2.3 million t

Other indirect sources* 56%

*Other indirect sources such as purchased materials, transportation or processing of sold products 56%, 6.3 million t

Climate change on page 31 Responsible sourcing on page 82 Clean Run concept on page 138

Fossil CO 2 emissions

mio t

CASE

8

FUEL AND HEAT RESOURCES USED TWh

ELECTRICITY GENERATION THROUGH OWN POWER PLANTS AND SHAREHOLDINGS TWh 2021 2020 Mill CHP 5.5 5.2 Hydropower 3.5 3.5 Nuclear power 4.7 4.9 Thermal power 0.3 0.1 Total 14.0 13.7

STATE-OF-THE-ART VESSELS FOR SUSTAINABLE SEA TRANSPORTATION

CAPACITY TO GENERATE POWER THROUGH OWN POWER PLANTS AND SHAREHOLDINGS

2021 2020

6

Black liquor

20.1

19.4

Nominal MW

Bark and other biomass Heat recovered from TMP production Renewable fuels total

5.9

6.5

4

Hydropower Nuclear power Thermal power

726 588 154

Nearly 11 billion tonnes of cargo are transported by ship each year. UPM is dependent on shipping to get its products to customers across the world. It also provides shipping services to other companies. The whole sector is scrambling to rapidly reduce emissions by investing in energy-efficient vessels with new technologies and cleaner fuels. We have invested in a fleet of seven new vessels built and owned by Bore Ltd and Wijnne Barends BV but operated by UPM. Emissions, mainly NOx, SO 2 and soot par ticles but also CO 2 , will be reduced thanks to LNG fuel. The new vessels replacing the current ones are more fuel efficient and they can be transformed to use biofuels in the future. The vessels will sail from Finland to Poland, Sweden, Germany, the Nether lands, the UK, France and Spain. Cargoes will consist of UPM products such as paper, pulp, timber and plywood, while north bound routes will see raw materials such as china clay, woodchips and pulpwood being carried for use by various businesses. UPM will become the first forest industry company to upgrade its transportation network with environmentally smart vessels. The first vessel is planned to be delivered to UPM in early 2022 and the rest of the fleet during 2022.

0.8

1.1

26.8 27.0

2

Peat

0.5 0.4 7.2 0.5 2.5 0.3

0.6 0.3 6.4 0.6 2.7 0.2

UPM Energy in total

1,468

Purchased heat

Mill site combined heat and power (CHP) Mill site hydropower Mill site power generation in total

0

Natural gas

1,164

15 17 18

19 20 21

Target

Oil

7

CO 2 from purchased electricity CO 2 from on-site energy generation

ELECTRICITY CONSUMPTION TWh

Coal

1,171 2,639

Fossil recovered fuel

2021 2020 11.7 11.9

Total

38.2 37.8

Total UPM

Total

TARGETS 2030 65% reduction of UPM’s total CO 2 emissions (Scope 1 and 2) from 2015 levels 27% reduction achieved for UPM’s total CO 2 emis sions (Scope 1 and 2) TARGETS 2030 No coal and peat usage in on-site energy generation by 2030 9% reduction achieved in 2021

CASE NEW CO 2 REPORTING TOOL HELPS US REACH OUR TARGET OF REDUCING EMISSIONS BY 65% All mills report their energy consumption (fuels, heat, and electricity) and tonnes of emitted CO 2 monthly in our new reporting tool, introduced in 2021. Our goal is to reduce CO 2 emissions from fuels and purchased electricity by 65% by 2030. The development is compared to 2015, and the corresponding data has been uploaded to the tool retrospectively. The progress of the emission reduction target can thus be monitored compre hensively and transparently.

The tool helps us with strategic planning, decision making and analysis of the measures taken at our sites. If the numbers show that we are behind our annual reduction target, we can react immediately. Different businesses previously used various systems. The new tool integrates all data in one place, making it easier to analyse and com pare data. The tool also helps businesses and individual sites by providing real-time data on their emissions and increases the reliability of information reported to customers and other stakeholders. The same data can be used in product development.

TARGETS 2030 20% reduction of acidifying flue gases from 2015 level

27% achieved for the UPM average product

www.upm.com/responsibility

94

95

UPM ANNUAL REPORT 2021

UPM ANNUAL REPORT 2021

Made with FlippingBook - professional solution for displaying marketing and sales documents online