UPM Annual Report 2022

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2022

SAFETY FIRST CREATING VALUE FOR PEOPLE AND SOCIETY

contractors. The corrective and preventive actions were initiated and the key learning points were shared across all businesses to prevent similar accidents from happening in the future. We recognise exemplary safety perfor mance with company-wide awards. Forestal Oriental, the company responsible for forest operations in Uruguay, received the UPM Safety Award 2022. Forestal Oriental demonstrated a comprehensive and con sistent safety performance in line with the company strategy. Strong focus on process safety We continued our systematic work to develop process safety. We developed a UPM-wide standard for process safety and a training concept for UPMers. Process safety risk assessments were incorporated into the investment process, and the key elements of process safety were also in tegrated into loss prevention surveys that are conducted in our mills by an external partner. We held training sessions on Be havioural Science for Leadership in Safety for UPMers in various businesses. With this training, we aim to support our managers to lead safety so that it is a natural part of daily management and way of working. In 2022, we were once again able to conduct safety audits face-to-face on sites. Annual safety audits are an integral part of our OHS management system. Cross-func tional auditing provides valuable feedback about selected OHS processes and daily activities. Vision for health and wellbeing We formulated a vision for UPM Health and Wellbeing in 2022. This takes a holistic perspective that is divided into four themes: body, mind, heart and soul. The health and wellbeing pulse survey, conducted in May, showed that due to the COVID-19 pandemic, the past few years have been stressful for many employees, and that we should pay more attention to each other’s wellbeing. To improve in these areas, we organised a Safety and Wellbeing week across UPM in 2022 with different local initiatives. During the week, we launched a wellbeing app, introduced various health and wellbeing challenges,

Total recordable injury frequency (TRIF)

10

8

Our focus areas in occupational health and safety were the wellbeing of our employees, process safety and behavioural science-based leadership.

6

4

2

0

21

22

19 20

18

Target

UPM workforce Including contractors

TARGETS 2030

TRIF below 2 for UPM workforce and including contractors

CASE

5.9 achieved for total injuries per one million hours worked

NEW WAYS OF HANDLING PROCESS SAFETY

TARGETS 2030

Absenteeism rate below 2 for UPM employees

Process safety refers to good design prin ciples, safe operating practices, technical implementations and the maintenance of systems related to hazardous substances. The earlier it is incorporated in the process design, the lower the risk of a negative event impacting operations. Our aim is to integrate process safety in safety management across all sites and businesses as part of our 2030 sustainabil ity targets. The new process safety standard defines the procedures and sets minimum requirements. It is about new ways of work ing, best practices in technical solutions and applying a systematic approach in everything we do. Training will start in 2023 and we will also provide advanced training for those working on process safety, such as oper ators, maintenance people and technical inspectors. The company’s expanding biofuel and biochemicals businesses throughout these chemical industries require significantly stricter risk management. Our pulp and paper businesses will also be included in the first wave of the implementation.

4.5 absence rate achieved as % of theoretical working hours

Our safety work is based on long-term planning, effective communications and leadership. Safety is incorporated in all our daily operations and in new and ongoing projects, and proactive safety forms an integral part of project plans and site prac tices. Thorough investigation of incidents and effective risk management play an important role in making our operations safer. We also share safety observations and best practices in our business units to improve safety. We aim to have zero accidents. Despite our continuous efforts to prevent all acci dents, in 2022, we unfortunately had three fatal accidents concerning our contractors in the Paso de los Toros project in Uruguay and five serious accidents, one in Finland and in Uruguay and three in Germany. The fatal accidents were related to internal traffic at the construction site, cable pulling activity and working at heights. All accidents were thoroughly investigated in close co-operation with authorities and

40,000 safety-related near-miss and safety observation reports In 2022, a total of

safety walks and discussions 31,000

and held online events that focused on the body, mind, heart and soul. UPM Plywood received ISO 45001 Oc cupational Health and Safety certification in 2022. UPM Raflatac, UPM Timber, UPM Pulp, UPM Communication Papers and UPM Specialty Papers have received the certification before. Our actions to ensure business continui ty during COVID-19 are based on long-term continuous risk assessments. We ad dressed both local and global coordination and preventing the spread of COVID-19 remained our focus in 2022. We supported our employees’ wellbeing with a variety of health and safety measures globally, includ ing support and tools for remote working, such as an info hub on the intranet and an application for taking breaks and boosting wellbeing at work. We also offer online training to build up resilience.

UPM WORKFORCE INCLUDING CONTRACTORS Total injuries per one million hours worked, TRIF Lost-time accidents per one million hours worked, LTAF

2022

2021

2020

5.9 3.3

7.2 3.5

6.2 3.5

Serious accidents

5 3

3 0

2 0

Fatalities

UPM WORKFORCE

2022

2021

2020

Total injuries per one million hours worked, TRIF Lost-time accidents per one million hours worked, LTAF

6.4 3.2

6.3 3.1

5.3 2.8

Serious accidents

3 0

2 0

1 0

Fatalities

% absence hours from theoretical working time*

4.5

4.1

3.9

Occupational diseases*

6

5

1

www.upm.com/responsibility

* Reflects own employees

70

71

UPM ANNUAL REPORT 2022

UPM ANNUAL REPORT 2022