UPM Biofore Magazine 1-2018

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03 EDITORIAL

30 FULL GREEN AHEAD IN NORWAY According to ZERO, a Norwegian environmental non-governmental organisation, sustainable biofuels will play an important part in future transportation and the bioeconomy. 34 THE FUTURE OF FOOD LABELS New eating habits and the rapid rise of the middle class in emerging markets are fuelling growth in food labelling. 38 FISH-FRIENDLY HYDROPOWER Hydropower is clean and renewable, but harnessing energy from running water can disrupt aquatic ecosystems. New solutions are being tested to help restore fish stocks. 42 RED FLOWER OF REMEMBRANCE Every year 45 million red paper poppies are produced as a symbolic gesture of remembrance for fallen soldiers. The pulp used in poppies comes fromUPMKaukas pulp mill and the paper is manufactured by James Cropper paper mill in Great Britain. 45 RENEWABLE CARBON – KEY TO A SUSTAINABLE CHEMICAL INDUSTRY Michael Carus, a pioneer of the bio- and CO 2 economy, writes about “Renewable Carbon Economy” in the Bioforesight column.

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08 PRESIDENT AND CEO JUSSI PESONEN: A FUTURE OF GROWTH BEYOND FOSSILS

UPM’s bioeconomy products offer sustain­ able solutions to the challenges of global megatrends. It provides an excellent spring­ board for UPM’s future expansion and earnings growth.

14 LONG-TERM COMMITMENT IN URUGUAY

Since planting its first eucalyptus seedlings in Uruguay 30 years ago, UPMhas grown into a major driver of local employment and entrepreneurship. The ripple effects travel far and wide. 18 PLANNING FOR THE FUTURE UPMplans to invest EUR 2 billion in a new mill to be located near the city of Paso de los Toros in Uruguay. The newmill would have capacity to produce about 2 million tonnes of eucalyptus pulp annually. Strong, durable birch plywood protects the growing volume of low-emission liquefied natural gas (LNG) sailing the seven seas. 24 STRONG IN CHINA FOR 20 YEARS Long-term commitment has brought UPM a strong foothold in China's growth market. Investments made over the years provide a good basis for future growth. 29 MORE EFFICIENT AND CLEANER CHANGSHU The three-year “More with Biofore in China” research programme aims to improve the energy efficiency and environmental performance of the UPMChangshu paper mill. 20 GAS SAILS SAFELY IN BIRCH PLYWOOD

EDITOR-IN-CHIEF Elisa Nilsson

MANAGING EDITORS Sini Paloheimo, Satu Peltola

EDITORIAL STAFF Heli Aalto, Veera Eskelin, Markku Herrala, Sari Hörkkö, Kristiina Jaaranen, Klaus Kohler, Anneli Kunnas,

Marjut Meronen, Marika Nygård, Maarit Relander-Koivisto, Säde Rytkönen, Annika Saari, Tommi Vanha, Päivi Vistala-Palonen.

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46 GROWING BY DOING THE RIGHT THING

DESIGN Valve

Integrity is an asset for decision making, management and operations. Business success boils down to an individual mindset of wanting to make the right choices.

PRINTING Erweko Oy

COVER UPM Finesse Silk 200 g/m² PAGES UPM Finesse Silk 130 g/m²

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48 IN TIME

50 BRASSICA CARINATA – A NEW PROFITABLE WINTER CROP ALTERNATIVE In Uruguay, Brassica carinata – an excellent rawmaterial for the sustainable production of biofuels – is bringing additional income for farmers during the winter.

UPM-KYMMENE CORPORATION PO Box 380 FI-00101 Helsinki Tel. +358 (0)204 15 111 www.upm.com www.upmbiofore.com

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We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. We employ around 19,100 people worldwide and our annual sales are approximately EUR 10 billion. Our shares are listed on NASDAQ OMX Helsinki. UPM BIOFORE – BEYOND FOSSILS. www.upm.com

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