UPM Annual Report 2025
We are UPM
Governance
Accounts and performance
Sustainability
UPM in brief
Our strategy
Our businesses
Fossil CO 2 emissions
Electricity generation and consumption by country 2025 TWh
Actions for the environment
mio t
14
8
12
6
10
8
4
6
4
2
2
0
0
15
17
18
19
20
21
22
23
24
25
Target
Finland
Germany
China
Uruguay
US
UK
Other
CO 2 from purchased energy (Scope 2) CO 2 from on-site energy generation (Scope 1)
Electricity consumption Electricity generation, CHP plants at the 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 2025 TWh
Fossil CO 2 emissions by country 2025 mio t
1.5
10 12 14 16 18 20
1.0
0 2 4 6 8
0.5
0
Finland
Germany
China
Uruguay
US
UK
Other
Finland
Germany
China
Uruguay
US
UK
Other
Scope 2 Scope 1
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 mainly used in Germany and coal in China.
The largest fossil CO₂ emissions come from purchased energy in Germany and fuels in China.
Toward CO 2 -free energy Our energy portfolio consists primarily of sources that do not cause fossil CO 2 emissions. As the green transition progresses, more fossil-free electricity and expertise in optimizing energy use will be required.
Our role as an electricity producer and consumer
UPM is the second largest electricity producer in Finland and the largest electricity consumer. Our dual role has given us valuable expertise as price and supply volatility has become the new normal in the electricity markets. We help maintain the balance of the electricity system by reducing con sumption at our paper mills or increasing production at our hydropower plants when there is a risk of electricity shortages. UPM Energy is a major electricity supplier in Finland, with assets and shareholdings in Finnish hydropower, nuclear power, and, to a lesser extent, thermal power. Hydropower is the most effective and sustainable method of producing balancing power for the increased volatility of the electricity grid.
Nuclear power provides reliable baseload electricity generation based on Finland’s unique safe solution for the final disposal of spent fuel. 99% of UPM Energy’s electricity is CO 2 -free. The start of operations at the OL3 nuclear power plant unit in Finland has increased UPM Energy’s CO 2 -free electricity generation by nearly 50%. We continuously develop our energy portfolio by managing our CO 2 -free electricity generation assets in UPM Energy and converting our energy- consuming operations to lower-emission energy sources. We generate significantly more electricity than we consume. This net sales position increased to over 7 TWh with OL3 and the UPM Paso de los Toros pulp mill in Uruguay.
We are working to meet our emissions reduction targets In 2025, we reduced our fossil CO 2 emissions from energy generation (Scope 1) and pur chased energy (Scope 2) by 15% compared to the previous year, in line with our target of reducing emissions by 65% by 2030. The use of coal and peat decreased by 5% compared to 2024. Our target is to stop using
We take action on our production sites Most of our energy consumption is related to the production processes at our pulp and paper mills. These processes require electricity and heat for mechanical pulping, pumping, and drying. We generate steam and electricity through combined heat and power (CHP) plants. Biomass-based fuels account for 81%
coal and peat for on-site energy generation by 2030. Coal is still the main fuel at the UPM Changshu paper mill in China, where alter natives have been unavailable in the past. Peat is used in Finland. We are on track to meet our 2030 target for acidifying flue gases (NO X and SO 2 ). We did not meet our target of improving energy efficiency by 1% annually.
56
57
UPM Annual Report 2025
UPM Annual Report 2025
Made with FlippingBook - Online Brochure Maker