UPM Annual Report 2022

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2022

Our sustainable product design concept includes circularity aspects throughout the product lifecycle (page 96). Our envi ronmental 2030 targets ensure resource efficiency and contribute to the UN Sustain able Development Goals. Our circularity targets By 2030, we will not deposit any process waste at landfill sites, and no process waste will be incinerated without recovering the energy. On average in 2022, 90% (89%) of our process waste was recycled or recov ered, of which 21% is energy recovery. Today, 58% (59%) of our production sites use 100% of the process waste. The total amount of waste to landfills decreased by 40% (3%) compared to 2021. This was due to the four months’ strike in Finland, the sale of UPM Shotton paper mill and the continuous improvement efforts at all sites. We share best practices, research results and ideas throughout the company, and have several internal working groups focusing on the use and valorisation of side streams. Green liquor dregs are a side stream originating from pulp production and one of our most challenging residues to use. We are putting a lot of effort into devel oping ways to find a sustainable use for it.

Our other circularity target is to use 100% nutrients from recycled sources in our effluent treatment by 2030. In 2022, 33% (35%) was achieved. 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 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 2022, 97% (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. The UPM Caledonian paper mill in Scotland, in particular, has significantly improved the use rate of their ash despite challenges due to changes in local regula tion. The mill has explored several recovery options in recent years. Using ash in the manufacturing of cement blocks is today the main end use and has resulted in an ash

Process waste to landfills 1,000 t

120

90

60

30

0

0

18

22

20

21

Target

19

TARGETS 2030 No process waste to landfills or to incineration without energy recovery

TARGETS 2030 100% of nutrients used at effluent treatment from recycled sources 90% recycling or recovery achieved for our total process waste 33% achieved

ADVANCING A CIRCULAR BIOECONOMY ACTIONS FOR ENVIRONMENT

We are using materials, energy and water efficiently, and many of our products are made from side streams, residues or recovered materials.

CASE

PLASTIC SAWN-TIMBER WRAPPING RECYCLED

the re-manufacturing of new sawn-timber wrap pers. The customers also receive compensation for their recycling collaboration. The concept has been welcomed by custom ers. The recycling concept began in Finland, but we are exploring opportunities to expand it to foreign-export customers. Earlier in 2022, UPM Timber switched to sawn-timber wrapping containing recycled plastic. The long-term goal is to stop using fossil-based plastics altogether. In the future, sawn-timber wrappers could be made of wood raw material, other bioplastics or a combination of the two.

Our goal is to minimise waste, maximise the utilisation of side streams and create added value through smart solutions. We are constantly looking for partners to co-create circular innovations linked to side stream use and valorisation, product development and supply chain efficiency. In response to climate change, we are actively developing new solutions to accel erate the transition to a circular bioecon omy and aim to continuously reduce our environmental impact.

IMPACT • Resource efficiency and a circular bioeconomy respond to resource scarcity, contribute to climate change mitigation and provide new sustainable solutions for customers and consumers TARGET • Efficient use of all material streams and the implementation of a circular bioeconomy; renew, reduce, reuse, recycle and recover

OUR WAY • Circularity as part of our Sustainable Product Design concept • Circular use of materials, nutrients and water • Use of residues, side streams and recovered materials • Cross-industry and cross-business collaboration • Focus on 2030 responsibility targets

UPM Timber and Lassila & Tikanoja, a recycling company, have launched a new recycling concept where the used plastic sawn-timber wrapping is picked up from customers and recy cled into new wrapping. The Finnish log-house manufacturer Honkarakenne was also involved in piloting the recycling concept. Plastic wrapping that was previously sent to energy waste is now collected from customers for further processing at L&T’s plastic recycling plant. At the plant, the material is washed and renewed into recycled granulate, which is then used for

www.upmtimber.com

92

93

UPM ANNUAL REPORT 2022

UPM ANNUAL REPORT 2022