UPM Annual Report 2024
WE ARE UPM
GOVERNANCE
ACCOUNTS AND PERFORMANCE
Our strategy
Our businesses
Sustainability
We take action at our production sites Most of our energy consumption is related to production processes at our pulp and paper mills, where electricity and heat are needed for mechanical pulping, pumping and drying. We generate steam and electricity through combined heat and power (CHP) plants.
Biomass-based fuels account for 80% (76%) of our fuel consumption at produc tion sites. At some mills, all or part of the required energy is produced by external or co-owned power plants. We are seeking ways to improve our energy efficiency across our operations through audits, innovations and invest
ments. Improvements usually also lead to a reduction in CO 2 and other air emissions. We work with suppliers to reduce CO 2 emissions We also assess emissions from other indi rect sources (Scope 3), such as purchased materials, transport and the processing of sold products. Our target is to reduce fossil CO 2 emissions from materials and logistics by 30% by 2030 (from 2018 levels). These account for a significant share of our total Scope 3 emissions. To achieve this, we have launched the -30 by 30 programme. New and existing suppliers are required to provide data on the carbon footprint of the goods and services sold to UPM, including all relevant emissions from the supplier’s own upstream supply chain and operations. In 2024, we achieved a reduction of 22% compared to 2018 for the target scope. Our total Scope 3 emissions were 8.2 million tonnes, an increase of 6% compared to the previous year. Approximately 80% of our supply of pigments, pulp and chemicals is already covered by primary CO 2 emissions data from suppliers, and more than 66% of our deliveries are calculated based on supplier data.
where alternatives have been unavailable in the past. Peat is used in Finland. We are on course to meet our 2030 target for acidifying flue gases (NO X ja SO 2 ), al though emissions increased in 2024 with the start-up of our new pulp mill in Uruguay. We did not meet our target of improving energy efficiency by 1% annually.
9.7 TWh Electricity consumption (9.6)
Capacity to generate power through own power plants and shareholdings Nominal MW Hydropower 729 Nuclear power 1,089 Thermal power 133 UPM Energy in total 1,951 Mill site combined heat and power (CHP) 1,560 Mill site hydropower 7 Mill site power generation in total 1,567 Total UPM 3,518
80% Share of biomass-based fuels at production sites (76%)
Fossil CO 2 emissions
Electricity generation and consumption by country 2024 TWh
mio t
14
8
12
Sources of UPM’s fossil CO 2 emissions On-site energy generation 19%, 2.2 million t
6
10
8
99% Share of UPM Energy’s CO 2 free electricity (99%)
4
6
Purchased energy 10%, 1.2 million t
Other indirect sources* 71%
4
2
2
0
0
15
16
17
18
19
20
21
22
23
24
Target
Germany Finland
China
Uruguay
US
UK
Other
*Other indirect sources such as purchased materials, transportation or processing of sold products 71%, 8.2 million t
CO 2 from on-site energy generation (Scope 1) CO 2 from purchased energy (Scope 2)
Electricity consumption Electricity generation, mills Electricity generation, UPM Energy
UPM is a net seller of carbon neutral electricity in Finland and Uruguay.
UPM has been reducing its fossil CO₂ emissions rapidly towards the 2030 target.
Fuel consumption by country 2024 TWh
Fossil CO 2 emissions by country 2024 mio t
CASE STUDY
2.0
10 12 14 16 18
NEW MODERN TECHNOLOGY LNG VESSELS HAVE EXCEEDED EXPECTATIONS
CHALLENGE The key sustainability challenge in maritime transport is to reduce greenhouse gas emis sions and other pollutants while maintaining operational efficiency. This requires the use of cleaner fuels and the implementation of advanced technologies. ACTION In 2022, UPM introduced seven new liquefied natural gas (LNG) powered vessels to its European maritime operations. These vessels, equipped with dual-fuel engines, were ex pected to reduce CO 2 emissions by 25%. The
1.5
introduction of LNG vessels also contributes to UPM’s -30 by 30 programme.
1.0
0 2 4 6 8
IMPACT After one year of operation, the LNG vessels have reduced greenhouse gas emissions by more than 26% per tonne transported per quarter compared to 2020 levels. This figure accounts for the well-to-wheel emissions, in cluding the methane slip. The use of LNG has also led to significant reductions in emissions of nitrogen gas (NOx), sulphur dioxide (SO2), and particles, improving air quality in harbour areas.
0.5
0
Finland
Germany
China
Uruguay
US
UK
Other
Finland
Germany
China
Uruguay
US
UK
Other
Scope 1 Scope 2
Black liquor Peat
Natural gas Recovered fuel
Bark and other biomass Oil
Coal
UPM uses mainly renewable fuels in Finland and Uruguay. Natural gas is used in Germany and coal is used only in China.
The largest fossil CO₂ emissions come from purchased energy in Germany and fuels in China.
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UPM ANNUAL REPORT 2024
UPM ANNUAL REPORT 2024
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