UPM Annual Report 2022

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2022

RESPONSIBLE WATER USE ACTIONS FOR ENVIRONMENT

cesses” together with several industrial and academic partners. The project was initiated by the Finnish innovation cluster CLIC. In 2022, as a result of this project, a measure ment method for microplastics in water is under development, together with universi ties, in our research centre in Lappeenranta. In Uruguay, we continue supporting the Rio Negro Initiative to improve the status of the river. We are also funding the refurbish ment of the municipal wastewater treatment plant and sewer systems in Paso de los Toros and neighbouring towns where temporary and permanent housing facilities have been built.

Continuous improvement towards 2030 targets Each pulp and paper mill has a dedicated plan to reach its reduction targets related to water use and effluent load by 2030. In 2022, we made a number of improvements in the paper machine and pulp drying machine process controls and assessed the water saving potential of those actions through several studies. Several mills have started to use advanced process controls and predictive analytic models to optimise their wastewater treat ment plant. Together with the supplier, a new method based on image analysis of bio-slud ges was also investigated to improve the monitoring of the effluent treatment process. Exploring new ways of working, new technologies and new partnerships with potential chemical and machinery suppliers continued in 2022. Some of the new tech nologies, such as using new water fractions from our future biorefinery, were piloted. UPM Augsburg paper mill in Germany has successfully tested a new filtration pro cess to replace warm water used in paper machine showers. The technology would allow the mill to reduce water use even fur ther from an already ‘best of the class’ level. The work will continue in 2023. Both UPM Kaukas and UPM Pietarsaari pulp mills in Finland improved their water management during the year. At UPM Kau kas, we invested in the softwood fibre line, reducing the COD load (Chemical Oxygen Demand). At UPM Pietarsaari, modifica tions were made to the bleaching processes of the two production lines to decrease chemical consumption and improve the wastewater treatment plant operations. We have a target to use 100% nutri ents from recycled sources in our effluent treatment by 2030. In 2022, 33% (35%) was achieved. For example, the UPM Changshu paper mill in China has further increased the ratio to almost 80% in 2022 by replacing urea with its side stream product ammonia. Reject waters from the biogas plant are now in regular use to replace urea at the UPM Tervasaari wastewater treatment leading to a 43% share of recycled nutrients. Collaboration with stakeholders In 2021, we joined a two-year project “Circu lar Economy of Water in Industrial Pro

Process wastewater volumes

m 3 /t

50

40

Water has a crucial role in our business, from sustainable forestry to production and logistics. It is also an important source of renewable energy.

30

20

10

0

22

Target

08 18 19 20 21

Per tonne of paper Per tonne of chemical pulp

www.upm.com/responsibility

CASE

As a signatory of the UN Global Compact’s CEO Water Mandate, we follow recognised principles in water stewardship. We use water in a way that is environmentally sustainable, socially equitable and econom ically beneficial. CDP recognised UPM with an A score for its significant actions to enhance water stewardship. Our water management Pulp and paper production is our most wa ter-intensive operation. Approximately 95% of the water we use in production is inter nally recirculated, and only a small fraction eventually leaves the process as effluent and needs to be replaced. Using less water also means using less energy and fewer chemicals. All wastewater from our pulp and paper mills is cleaned in both mechanical and biological effluent treatment processes. According to the water risk analysis carried out with the help of the WWF Water Risk Filter tool, our production sites are in areas with low to medium water scarcity. The tool also provides scenarios on water risks related to climate change for 2030 and 2050. The scenarios also show that our main pro duction sites are in areas of low to medium basin risk, with only one exception. While the UPM Changshu paper mill near Shanghai is expected to face the highest rise in water risk by 2050, the mill has made substantial improvements in water efficiency in recent years, leading to a 21% reduction of process wastewater volume over the last five years.

RIVER KYMI’S CONDITION IMPROVED

CASE

The Water and Environment Association of the River Kymi has been researching the state of the river for over 50 years. The first measurements describing the state of the ecological region at the lowest level of the river, the benthic zone, were published in 1968. The methods and the accuracy related to species diversity measurement have improved over the years. In 2018, the benthic survey of the River Kymi rapids was carried out for the first time in joint monitoring, where samples were taken from upstream rapids of the UPM Kymi mill and from four rapids downstream of the load. In all the rapids in the main river, the benthic fauna corresponded very well to the benthic community of a natural rapids area according to the ecological state variables. Species classified as threatened were also present. The condition and biodiversity of the river have improved considerably compared to past decades as wastewater treatment methods have become more efficient. The latest results, published in 2022, indicate that the environmental impact of the UPM Kymi mills’ water load on the midge communities is low and that the benthic com munities indicate a slightly oligotrofic river condition, i.e., having a low level of nutrients.

NEW COMMITMENT TO DIVERT SHIP-GENERATED WASTEWATER DISCHARGE FROM SEA TO LAND We are the first Finnish company, acting as a shipper and charterer, to discharge our ship-generated wastewater on land and to utilise various circular economy solutions in wastewater treatment. The new model will be implemented in the ports of Rauma, Hamina, Kotka and Pietarsaari in Finland. The latest commitment to the Baltic Sea Action Group (BSAG) was made for 2022– 2026, focusing on promoting BSAG’s Ship Waste Action initiative. It has established a model whereby cargo ship effluents are discharged at the port and their nutrients are recycled through circular economy solutions. We are exploring opportunities to use recycled nutrients from ship-generated wastewater in our own wastewater treat ment plants, for example. This contributes to our 2030 target of using only recycled nutrients in our wastewater treatment plants. We and BSAG will also explore the pos sibility of discharging cargo hold washing waters on land for possible further reuse.

IMPACT • Our measures ensure that the impact of our operations on watercourses are minimised so that clean water is available for surrounding communities • Our efforts to protect and restore aquatic ecosystems enhance the quality of watercourses and the natural habitat of species living there TARGETS • Use water responsibly • Continuously reduce the effluent load and wastewater volume generated by our operations • Use only recycled nutrients in wastewater treatment

OUR WAY • Water-intensive operations in areas with sufficient water resources • Efficient water use with appropriate recycling techniques • Treatment of used water according to the Best Available Techniques • Best practice sharing in internal and external expert networks • Returning water to its original watershed when possible • Co-operation with local stakeholders to further improve the quality of local waterways • Focus on 2030 responsibility targets

TARGETS 2030 30% reduction of wastewater volumes from 2008 level

from 2008 level TARGETS 2030

40% reduction in effluent load (COD)

13%

39% reduction achieved for the UPM average product

reduction achieved for the UPM average product

90

91

UPM ANNUAL REPORT 2022

UPM ANNUAL REPORT 2022