UPM-Biofore-Magazine-2-2019

UPM’S STAKEHOLDER MAGAZINE 2/2019

THE FUTURE LIES IN CITIES

A new era for UPM in Uruguay

Sharp eye on climate change

Innovations lay fossils to rest

Take a look around you. Almost everything you see can soon be made from bio-based materials. Solutions for the challenge of rising global consumption are growing in responsibly managed forests and plantations. We make good use of wood fibres, molecules and residues to create sustainable fossil-free alternatives in a variety of end uses. We lead the forest-based bioindustry into a sustainable, innovation-driven and exciting future beyond fossils. upm.com/biofore

FROM FOSSILS TO BIOECONOMY

INSPIRED by the limitless opportunities of bioeconomy DELIVERING renewable and responsible solutions INNOVATING for a future beyond fossils

BIOFORE IS UPM’S GLOBAL STAKEHOLDER MAGAZINE

Edi tor ial

Urbanisation calls for sustainable solutions

The global population is growing fast, and people’s lifestyles are changing. In the near future, the size of the consuming middle class is expected to increase by nearly 2 billion. In 2014, about half of the world’s population lived in cities, and by 2050, the proportion will grow to two thirds. People are attracted by urban lifestyles and job opportunities, but there are also other potential reasons for future waves of emigration. The World Bank estimates that up to 140 million people may have to relocate due to climate change by 2050. Time magazine reports that climate change-forced migration might affect as many as 25 million to one billion people by 2050. The world is witnessing the emergence of many megacities with more than 10 million residents. In 1990 there were ten, and by 2030 the number is predicted to exceed 40. According to a UN estimate, countries like China and India will form clusters of big cities in the near future. It is a huge challenge to provide suitable housing, efficient logistics, cleaner energy solutions, and other infrastructure in these fast-growing cities, not to mention jobs and basic services. At the same time, technology can prove invaluable: the internet of things, for instance, can enable new types of smart cities where recycling is organised much more efficiently. In any case, as the population grows, there will be a growing need for new consumer products and the rawmaterials needed to make them. Mitigating climate change is a common challenge facing all of humankind. The most effective way to start is by radically reducing the use of fossil rawmaterials. We at UPMpride ourselves on being part of the solution by offering numerous alternatives to fossil-based products and actively developing new bioeconomy innovations. At the same time, we ensure that forests continue to yield bio-based rawmaterials, while also serving as efficient carbon sinks into the future. That’s why we plant 50 million trees a year: one hundred every minute. The world needs sustainable ecosystems based on the use of renewable rawmaterials in a circular economy. No one can tackle the challenge of climate change alone, however. Many side-by-side solutions are needed, along with the commitment and cooperation of various partners. Let’s work together to build a future beyond fossils!

HANNA MAULA Vice President, Communications and Brand, UPM

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2/2019 |  03

Content s

03 Editorial 04 Contents

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BIOFORE IN BUSINESS

08 Making history in Uruguay Buyers applaud UPM’s bold decision to build a new pulp mill in Paso de los Toros. 12 New dawn for Durazno UPM’s new plant will create 10,000 permanent full-time jobs and spur spending across Uruguay. 16 Biojet fuel set for take-off As air transport keeps increasing, biofuels offer the only solution to the challenge of cutting aviation emissions.

20 The power of one The growing number of single-person households drives a need for smaller, moresustainable packaging.

24

INNOVATION IN BIOFORE

24 Laying fossils to rest UPM’s new 100%wood-based Forest Film is a plastic-free labelling breakthrough. 26 Healing naturally FibDex is a new wood-based surgical dressing that offers multiple benefits in wound care.

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04 | UPM BIOFORE BEYOND FOSSILS

Content s

28 Winds of change Water, wind and solar offer a fully competitive alternative to conventional energy sources. 31 Cities – hope or doom of the planet? While urbanisation causes problems, cities are also the hotbed of solutions to global challenges. 34 Sharp eye on climate change A new report predicts the impacts of climate change on UPM’s business. 38 Fuelling the future Panu Routasalo explains why biofuels offer a climate-positive solution that society cannot afford to ignore. 40 Wonders of wood New wood buildings are breaking ground for future innovation in architecture. 43 Putting a roof on carbon We look at recent examples of exciting new timber-based architectural concepts. 48 Textbook or e-learning? Schools around the world are finding that print and digital work in harmony for a great learning experience. TRENDING

31

EDITOR-IN-CHIEF Hanna Maula

MANAGING EDITORS Sini Paloheimo, Saara Töyssy EDITORIAL STAFF Heli Aalto Marko Erola Veera Eskelin Markku Herrala Sari Hörkkö Kristiina Jaaranen Marko Janhunen Sanna Juvonen Klaus Kohler Anneli Kunnas Marjut Meronen Virpi Mäenanttila Marika Nygård Säde Rytkönen Annika Saari Tommi Vanha Päivi Vistala-Palonen

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ENGLISH EDITOR Silja Kudel

DESIGN Valve

PRINTING Erweko Oy

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

BIOFORESIGHT

50 Inclusion – a choice worth making 51 Forests in focus

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

IN TIME

48

54 Investments and recognitions for responsibility

upm.com

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 19,000 people worldwide and our annual sales are approximately EUR 10.5 billion. Our shares are listed on NASDAQ Helsinki Ltd. UPM BIOFORE – BEYOND FOSSILS. upm.com

2/2019 |  05

JOIN THE PATH Follow the path and discover the secrets of Finland’s unique forests. Experience the forest like never before and learn how we can work together to preserve its rich diversity.

Visit upmforestlife.com today.

SPOT THE SPECIES

You can find over150 species in UPM Forest Life. Some of them can be found also on the pages of this magazine. Do you recognise them? Use your phone’s QR reader to explore them.

Black woodpecker DRYOCOPUS MARTIUS

Cranberry blue AGRIADES OPTILETE

Lingonberry VACCINIUM VITIS-IDAEA

upmforestlife.com

Biofore in bus iness

TEXT Matti Remes   PHOTOGRAPHY UPM

CUSTOMERS APPLAUD URUGUAY INVESTMENT UPM is embarking on the most ambitious investment in its history by building a new pulp mill in Uruguay. This historic leap is also welcomed as great news among pulp buyers.

L ocated in Paso de los Toros, the new met with Chinese customers who eagerly anticipate the new production facility. “They wish we could accelerate the project pulp mill will significantly increase the volume of UPM’s pulp trade and improve the group’s earning power. In addition, it is a move warmly welcomed by the company’s customers. Bernd Eikens , Executive Vice President at UPMBiorefining, recently and finish it sooner. It’s encouraging to hear that there is already strong demand for the newmill’s products. In this respect, the road is paved for a successful project,” Eikens states. Pulp demand on the up With demand for market pulp estimated to increase by approximately 3% annually, UPM’s customers and their hunger for pulp offer good indication of market prospects in the near future. Demand is driven by increased urbanisation and the growing purchasing power of the middle class, especially in developing economies. These megatrends are increasing the demand for tissue, packaging and speciality papers.

“If you look at some of the Asian countries and China in particular, there is huge growth potential for pulp even though the tissue market has grown substantially. The same applies to Africa and various other countries around the world,” Eikens explains. He also points out that pulp has good market prospects in developed countries too, as wood fibre is a rawmaterial required for the manufacture of various products replacing fossil fuel-based plastic. “As the population ages, demand is growing for fibre-based products such as nappies and other sanitary products.” Excited to grow together The production capacity of the new Paso de los Toros pulp mill will be over 2.1 million tonnes of eucalyptus pulp. This means that UPM’s pulp production capacity will increase by more than 50%. The production facility is scheduled to start up in the second half of 2022. “It is exciting to grow with our customers,” Eikens states. UPM’s investment is well timed, as only a limited amount of new pulp-producing capacity

u

08 | UPM BIOFORE BEYOND FOSSILS

“It’s encouraging to hear that there is already strong demand for the new mill’s products. In this respect, the road is paved for a successful project.” – Bernd Eikens

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THE INVESTMENT will grow UPM’s current pulp capacity by more than 50%, resulting in a step change in the scale of UPM's pulp business as well as in UPM's future earnings.

THE EUCALYPTUS availability for the mill is secured through UPM’s own and leased plantations as well as through wood sourcing agreements with private partners. The plantations that UPM owns and leases in Uruguay cover 382,000 hectares.

is expected on the market during the next three years. The new pulp mill is a USD 2.7 billion investment that requires years of planning. In addition, the mill needs access to competitive, sustainably produced wood resources. The largest risks associated with the pulp market relate to fluctuations in the global economy. As with all other commodities, the demand but even more the price of pulp is subject to fluctuation. “Right now, the price of pulp is significantly lower than last year. But this is something we have to work with.” Eikens expects the new pulp mill to yield profit even in varying market conditions as it will be one of the world’s most competitive pulp mills. The mill’s key assets include its efficient system of wood sourcing and logistics. Its competitive edge is sharpened by the size of the pulp mill capacity, the best available production technology available and skilled personnel. “When the efficiency and cost structure are in order, we don’t have to reduce production even if the market price of pulp decreases. Lower prices are a problem for production facilities that have high production costs because they have to scale down their production.”

The investment will have an enormous impact on UPM’s business operations and long-term value creation.

which started up in 2007.

Uruguay rich in synergies Prior to sealing the deal on the

“We know Uruguay well, and we already have an established organisation with a pool of skilful employees there.” Eikens adds that the synergy benefits of the twomills are substantial, as the newmill can utilise UPM’s existing organisation in Uruguay, from human resources management to financial administration. “We can also share our production andmaintenance expertise. Minimising transport distances from the forest plantations to the pulp mills can in turn critically improve the cost- efficiency of both mills. In addition, we are able to use the same vessels and port logistics in the outbound transport of pulp.”

investment, UPMmapped out various alternative locations for the new pulp mill. Uruguay was chosen because it meets all the credentials for responsible forest industry. The country is stable both politically and socially. In addition, the local legislation provides clear regulations on the use of forest plantations, which contributes to a responsible model of business. Another key factor was that UPM has systematically increased the number of its forest plantations in Uruguay, and the group already has another operational pulp mill in the country — the Fray Bentos pulp mill,

10 | UPM BIOFORE BEYOND FOSSILS

THE MILL IS DESIGNED to fully meet the strict Uruguayan environmental regulations as well as international standards and recommendations for modern mills. The mill’s environmental performance will be verified with comprehensive and transparent monitoring. The mill’s initial annual production capacity is 2.1 million tonnes.

Biofore strategy, which is based on transforming wood resources into renewable, innovative, high-quality bioeconomy products. Pulp fibre is an essential rawmaterial in the manufacture of various products. “The investment will have an enormous impact on UPM’s business operations and long-term value creation. After all, it is the largest investment in the company’s history. It affects all company functions as well as our most important interest groups,” notes Eikens. “I’m sure investors will follow the progress of the project with great interest.” 

Major push for all-round improvement In recent years, UPMhas systematically developed a more market-oriented approach with its extensive pulp customer base. “In practice, UPM only produced pulp for its own paper mills before 2008. Since then, we have developed our organisation, becoming a significant operator in the global pulp market. And, the larger UPM grows, the more professional expertise we will require. We have to improve our resource efficiency and step up our processes, production planning and logistics.” Eikens points out that the investment in Paso de los Toros is comprehensively linked to UPM’s

WHAT’S THE SPECIES?

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TEXT Daniel Dawson   PHOTOGRAPHY Presidencia Uruguay; Andrés Bartet

UPM’s growth project opens A NEW ERA IN CENTRAL URUGUAY

12 | UPM BIOFORE BEYOND FOSSILS

U PM’s largest-ever investment is set to have a profound impact on Uruguay’s economy and society, especially in the central region of the country. “The installation of the UPMplant in the town of Pueblo Centenario has influences throughout the region,” says Carmelo Vidalín , the governor of the Durazno province in which UPM’s new plant will be located. “Duraznenses from across the province see the plant as an opportunity for economic growth through access to better employment opportunities,” he adds. “They also see it as an opportunity for development by virtue of access to new technologies, logistics, transport, education, health and services.” An economic powerhouse According to a recent study by Deloitte, one of the four largest accounting firms in the world, the economic impacts of the project will be substantial. Overall, UPMwill invest more than USD 3 billion in building the pulp mill, a pulp terminal at the port of Montevideo and improving the local infrastructure. This will be matched by an estimated USD 1.2 billion public investment, which will be used to improve associated public infrastructure. Once the construction phase has been completed and the new pulp mill comes into operation, UPMPaso de los Toros, will continue to create value for the Uruguayan economy. For instance, the construction phase of the project by itself is expected to create more than 6,000 full-time jobs at its peak and pump almost USD 1.2 billion into the Uruguayan economy. Additional public infrastructure spending – from dredging the port entrance inMontevideo to upgrading roads and bridges as well as connecting the country’s capital to Durazno by rail – will also add to this. Once completed, this central Uruguayan rail systemwill be able to haul double the amount of cargo that is moved, lowering the logistical costs for other industries interested in the region.

UPM’s new pulp mill in Durazno, close to the city of Paso de los Toros, will create 10,000 jobs and spur social spending across Uruguay.

CARMELO VIDALÍN

BASED ON SOCIOECONOMIC impact studies, the mill is estimated to increase Uruguay’s GDP by about 2% and the annual value of Uruguay’s exports by about 12%. When completed, about 10,000 permanent jobs are estimated to be created in the Uruguayan economy.

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Jobs, jobs, jobs Deloitte estimates that the completed mill will annually contribute USD 1.35 billion to the economy, or about 2% of the country’s annual GDP. Of that total amount, UPMPaso de los Toros will generate directly (including its operations and those of contractors over whomUPMhas direct oversight) USD 900 million per year, with the rest coming from indirect and induced impacts. “The increase in regional GDP is expected to be 10%,” says Vidalín. “It will generate income for the city of Durazno, but also for many of the other cities and the east of the province.” The economic impacts will not be limited to just Durazno. UPM is expected to pay USD 105 million in taxes each year and make USD 66 million in social security contributions. These payments will be re-distributed throughout Uruguay. Overall, the new pulp mill is expected to create about 10,000 permanent full-time jobs across the country. These will include about 600 people employed directly by UPM and 4,000 associated jobs, through direct contractors, including plant maintenance workers, truck drivers and forestry workers, among others. An additional 6,000 full-time jobs are expected to be created indirectly, along the value chain and in the whole country. According to Deloitte’s report the project will have several positive externalities, contributing significantly to job creation and the development of the area, which comprises some of the departments that perform poorly in several socioeconomic and development indicators. The ripple-effect on social infrastructure One of the major challenges facing Vidalín and his fellow Duraznenses is the need to improve many local services. About 5,000 new workers are expected to move into Pueblo Centenario and the nearby Paso de los Toros, both of which currently have a combined population of 15,000 people. Vidalín said that his administration is already in talks to expand healthcare services in the province and UPMhas agreed to help invest in housing projects. Álvaro García , Director of the Planning and Budget Office of Uruguay (OPP), will work with UPM and local governments to manage

THE ECONOMIC IMPACTS of the mill project will be substantial. UPM invests USD 3 billion in building the pulp mill, a pulp terminal at the port of Montevideo and improving the local infrastructure. This will be matched by an estimated USD 1.2 billion public investment – from upgrading roads and bridges as well as connecting the country’s capital to Durazno by rail.

14 | UPM BIOFORE BEYOND FOSSILS

“Everything that has to do with education, health, social security, public and road safety, housing and all aspects that have to do with people’s lives are being considered in the development program.”

– Àlvaro García

the mill’s effluent to be minimal. “UPMwill construct a wastewater treatment plant that uses the best available technology,” says Rodgers. “In other words, they will build a spectacular treatment system. It will treat the waste materials and produce a very high-quality effluent that will conform to the high standards that Uruguay has set for the mill.” Rodgers adds that the Uruguayan government will increase the minimum flow of the Rio Negro river which flows downstream from the nearby hydroelectric dam. This will be done in accordance with the guidelines defined by the Environmental Directorate of Uruguay and based on the results of the Environmental impact study of the pulp mill. In doing so, he states that the overall health of the river should improve. Rodgers is confident that the regulators in Uruguay will hold the newmill to the same high standards as they held UPM’s first plant in Fray Bentos. “With the Fray Bentos mill, which was the first large pulp mill in the country, the Uruguayan government actually had real-time monitoring that was reported in their office on an ongoing basis, so at any point in time they could look at the actual performance of the mill,” says Rodgers.

these associated developments through its “Central Region Program”. “Everything that has to do with education, health, social security, public and road safety, housing and all aspects that have to do with people's lives are being considered in this Central Region Program,” he says. Education will be especially important in making sure that Duraznenses and other Uruguayans are able to benefit from the investment. Vidalín estimates that 5% of the jobs created by the newmill in Durazno will be taken by university- educated professionals with an additional 10% going to technicians and specialists. “Aware of the need for training for employment, this administration together with institutions such as INEFOP (Uruguay’s National Institute for Employment and Vocational Training), is carrying out training plans so that our people can access the upcoming job offers,” says Vidalín. Conforming to world-class eco standards Another concern for both residents and Uruguayans at large is the environment. Bruce Rodgers , an environmental consultant at Ecometrix who helped advise UPM on the placement of their second plant, expects the environmental impact of

Building a better Uruguay Vidalín and García share Rodgers’ belief that the environmental impact of the plant will be minimal. The Fray Bentos mill, says Vidalín, has had excellent environmental performance since it came online 12 years ago, and cites it as one of the reasons why he is confident that there will be no adverse environmental impact fromthe new mill. Here, UPM’s Finnish roots have a role to play as well. The fact that Finland is known for its commitment to environmental sustainability has also helped inspire confidence in UPM’s operations among local officials. “An investment of this kind is a sustainable development, which considers the economic, environmental and social aspects altogether,” García adds. “For Uruguay, this is very important.” In turn, Vidalín and García hope that the success of UPM’s two pulp mills in Uruguay will inspire more investments of a similar nature. “In addition to the benefits that the investment itself offers, it is a great signal to the world that Uruguay is a serious, responsible country, where there is respect for institutions and respect for investors,” says García. “It is a big boost for global investors to continue believing in Uruguay and investing in Uruguay.” 

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Air transport volumes keep increasing, but the world meanwhile faces an urgent need to reduce emissions. The only viable solution is to rapidly increase the use of biofuels in aviation.

BIOJET FUEL SET FOR TAKE-OFF

TEXT Marko Erola   PHOTOGRAPHY UPM

16 | UPM BIOFORE BEYOND FOSSILS

N othing has slowed down the increasing popularity of air transport: not hurricanes, financial crises, or even terrorist attacks. Ten years ago, the annual number of air passengers was 2.5 billion. Today, that number is 4.5 billion. So far, only 20% of the world’s population has travelled by air, and the International Air Transport Association predicts the number of air passengers will double by 2037. This year, 100 million Asian passengers will take their first flight. As a consequence of increased air traffic, emissions levels have risen as well. The 40 million flights made annually—averaging more than 100,000 flights per day—release 900 million tonnes of carbon dioxide into the atmosphere. The aviation industry is a significant source of greenhouse gas emissions: for comparison, if it were a country, it would rank between the fifth and sixth biggest polluters, Japan and Germany. Between January and June 2019, aviation emissions again increased by almost 3.5% on the corresponding period last year. If the current forecasts prove correct, aviation alone may use up half of the IPCC’s carbon budget for restricting the average temperature increase to 1.5°C. In the worst-case scenario, aviation emissions may more than triple by the middle of this century.

Offsetting is just the start The aviation sector is aware of the issue. Over the last ten years, the sector has invested USD 1 trillion in aeroplanes that reduce fuel consumption by a quarter that of the previous generations of aircraft. Fuel usage has also been reduced by streamlining airfield operations and optimising flight routes. In addition, airlines almost invariably offer their passengers the option of offsetting their emissions or supporting the use of bio-jet fuel by paying a little extra for their flight. And of course high hopes have been pinned on emissions reduction schemes. The EU’s internal air transport has been included in the emissions trading system since 2012, and the UN’s aviation organisation (ICAO) has set a cap for the growth of aviation emissions, aiming to ensure that any increase in emissions above 2020 levels are to be offset elsewhere. The ICAO’s emissions reduction scheme, CORSIA, already has 192 participating countries, so the reduction potential is significant — at least in theory. In practice, however, airlines are merely monitoring their emissions. The next step is a voluntary pilot phase scheduled to begin in 2021, after which the voluntary initial phase begins in 2024. Offsetting emissions will not become obligatory until 2027. Even then, effective implementation of the system means that energy production, industry and other modes of transport must also reduce their emissions sufficiently to release offsetting permits for purchase.

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THE POTENTIAL of bio-jet fuels is highlighted by the fact that they currently account for only a mere 0.01% of all jet fuel consumed.

fuels are typically only 20% of those generated by fossil-based jet fuel. The potential of bio-jet fuels is further highlighted by the fact that they currently account for only a mere 0.01% of all jet fuel consumed. The market leader in bio-jet fuels, SkyNRG, reports that it has supplied bio-jet fuel to over 30 airlines for more than 150,000 flights. SkyNRG’s bio- jet fuel is manufactured from used cooking fats, and it can be mixed with fossil-based jet fuel. Typically, bio-jet fuel only makes up a small percentage of the fuel mixture, with the rest being fossil-based fuel. The reason for this is that bio-jet fuel is currently over three times more expensive than fossil-based jet fuel. In practice, a price gap so huge means that bio-jet fuel will not be widely adopted without public support. More expensive flight tickets? Regardless of its apparent benefits, increasing the use of bio-jet fuel is not a straightforward option. The aviation sector employs almost 66 million people. The annual value of its services and products is USD 2.7 trillion. In value terms, one third of globally

Researchers at the Chalmers University of Technology in Gothenburg doubt that the offsetting agreements will achieve their objectives. “According to our analysis, transferring the emissions reductions of Sweden’s other sectors to the aviation sector within the framework of the EU’s emissions trading and CORSIA can only reduce carbon emissions by 0.8% a year, which is significantly lower than what is required by the two-degree goal,” explains Assistant Professor Jörgen Larsson . Great hopes for renewable fuels More powerful engines, emissions reduction schemes and operational optimisation are estimated to reduce aviation emissions by 2–3% annually. The reduction is sizeable, yet not nearly sufficient to stop the growth of emissions, let alone reduce them. As 99% of flight emissions and 50% of airfield emissions are caused by the combustion of jet fuel, and alternatives such as hydrogen-driven and electric planes are still in their infancy, the most immediate and effective way to reduce aviation emissions is the use of biofuels. The emissions of sustainable aviation

traded goods are transported by air. It is difficult for politicians to increase the cost of flying by raising passenger and fuel taxes or by obligating airlines to use bio-jet fuel — especially now as the rate of bankruptcy amongst airlines is higher than ever before due to the investment backlog and the high price of jet fuel, which has continued to climb for almost four years consecutively. Many countries charge a passenger tax, but few countries tax jet fuel on domestic flights. An international jet fuel tax has been proposed, but no firm decisions have been made and none

HOW TO TRAVEL MORE ECOLOGICALLY:

Consider whether there are lower-emission options for your flight. Choose an airline that has a modern fleet. Favour direct routes and fly towards the destination right from the start. Avoid large, crowded airports. Make use of public transport. Offset your flight emissions and support the use of bio-jet fuels.

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“It is difficult to achieve the targets for renewable bio-jet fuel without public support measures, especially when governments support other transport modes directly and fossil fuels are backed up by deep-rooted structural support.” – Maarten van Dijk

Sources: Finnair, KLM

18 | UPM BIOFORE BEYOND FOSSILS

are expected anytime soon. There are strong indications that bio-jet fuel quotas are likely to become instituted sooner. As the first country in the world to adopt a bio-jet fuel quota, Norway requires that at least 0.5% of all jet fuel used must be bio-jet fuel from 2020 onwards. The quota will be raised to 30% over a period of ten years. Similar quotas are planned by Sweden, Finland, Spain and France. SkyNRG anticipates that quotas will become commonplace over the next five years. Even so, it will remain impossible to reach the emission targets without political will. “It is difficult to achieve the targets for renewable bio-jet fuel without public support measures, especially when governments support other transport modes directly and fossil fuels are backed up by deep-rooted structural support,” states Maarten van Dijk , CEO at SkyNRG.

Multi-billion market Approximately 280 million tonnes of jet fuel are consumed annually. The ICAO predicts this figure will almost triple to 852 million tonnes by 2050. In order to reach the ICAO’s emissions reduction target, half of this amount must be bio-jet fuel. Van Dijk estimates that the annual consumption of bio-jet fuel will reach at least 200 million tonnes, even if all other emissions reduction measures exceed expectations. Amere 1% share of the bio-jet fuel market is worth billions of euros. There are many operators eager to seize their share of the market, including diesel producers, fuel suppliers, technology enterprises and airlines —United Airlines, British Airways and KLMhaving already made sizeable investments in bio-jet fuel. With bio-jet fuel set for a speedy take-off, biofuel producers and technology enterprises should hurry to the boarding gate – a golden opportunity awaits. 

High ambitions for new biorefinery UPM Biofuels biorefinery does not currently supply to the aviation sector – but bio-jet fuel plays a big role in plans for UPM’s forthcoming second biorefinery slated for the city of Kotka. The envisaged next-generation biorefinery would produce approximately 500,000 tonnes (five times the production volume of the Lappeenranta biorefinery) of advanced biofuels for transport and biofeedstock for the chemical industry. The plan is to use wide raw material base, i.e. solid and liquid waste and reject fractions at the biorefinery, which is set to be substantial in size, even on a Europe-wide scale. Other raw materials used at the plant would include solid biomass and Brassica carinata, a sustainable oil plant that sequesters and stores carbon in the soil. Technical and commercial feasibility studies are currently underway for the Kotka biorefinery. replaced by sustainable biofuels. This creates demand, to which the industry will respond by creating supply. This starts a positive cycle that contributes to slowing down the rate of climate change,” explains Maiju Helin , Head of Sustainability and Market Development at UPM Biofuels and UPM’s representative in international aviation forums planning emissions reductions. “As a result of biomandates, a certain percentage of fossil fuels must be

Flying responsibly UPM’s production is spread across various continents, and the company has over 19,000 employees and customers in 110 countries. With such far-flung operations, UPM personnel have no choice but to travel by air. Last year, flights by personnel generated 10,000 tonnes of carbon dioxide emissions, which is comparable to the annual emissions of approximately 1,000 Finns. UPM’s air travel levels have remained relatively constant over the last few years. The number of flights taken by UPM employees dropped dramatically 15 years ago with the introduction of e-meeting applications. E-conferencing tools have long been the first choice for all cross-border meetings. Employees travel only when absolutely unavoidable. In compliance with its brand promise, Beyond Fossils, UPM constantly endeavours to reduce its emissions and to manufacture products that replace fossil fuels. In Finland, the company’s sustainably managed forests sequester 500,000 tonnes of carbon dioxide annually. In Uruguay, UPM has created a 40-million-tonne carbon stock from scratch by establishing eucalyptus plantations.

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The power of one TEXT Geni Raitisoja   PHOTOGRAPHY Fabio Pilotti; Aska; James Tye

20 | UPM BIOFORE BEYOND FOSSILS

WHAT’S THE SPECIES?

U rbanisation is disposable income, urbanisation is one of the main factors contributing to the rise of single-person households. In an interview with Smithsonian.com’s Joseph Stormberg, Eric Klinenberg, author of Going Solo , observed that cities enable people to live alone but still go out in public with each other. Single-person households are a relatively new phenomenon according to Klinenberg, who points out that until the 1950s, there was no society in the history of our species that supported large numbers of people living alone. Estimates put the number of single person households at 330 million at the end of 2016, and Euromonitor expects that number to rise by 120 million by 2030 globally. themselves in some of the world’s most cosmopolitan cities, to see how living alone influences purchasing decisions, especially in food and dining, among singletons. the number of single-person households is expected to rise by 120 million by 2030. This trend drives a need for smaller, more sustainable packaging. changing the way we live – literally. Along with lower marriage and fertility rates, ageing populations and rising We spoke with Lulu, Anna and Alice, three women who live by Outpacing the growth of any other household type worldwide,

ANNA KUUSELA’S lifestyle means she often finds herself sitting around a restaurant table rather than eating at home. But when she does, she uses apps to order food for takeaway.

to supermarkets or ordering from online supermarkets; it’s just more convenient, since the products are pre-packaged and ready for use. We cook at home, but we also buy some dishes from restaurants; this is because in China, we can have up to 25 small dishes to sample throughout a meal.” In China, which is the world’s biggest e-commerce market, even fresh fruits and produce can be ordered online. “I mostly use online supermarket Hema to shop for groceries. I have a friend who cooks at home, but she has not been inside a supermarket in years. Ordering home is so easy. You choose whatever fruits or vegetables you want online and they are delivered within 20 minutes, usually for free, no matter the time or weather,” Lulu explains.

Technology as an enabler “I don’t eat a lot of takeout, maybe about once or twice a week through food-ordering apps like Eleme,” says Lu Ying , co-founder of Future Urban Living. “I often eat out when I have business meetings or have made plans with friends. Eating out is not just about getting something to eat because I’m hungry; it’s just as much about the social aspect of it.” Lulu lives in Shanghai, where eating out is the norm rather than the exception. Lulu attributes this to the fact that Asian meals are comprised of many different dishes. “It’s not unusual even for families who cook at home to supplement their cooking with something already prepared for variety. When I visit my grandparents for dinner, they buy ingredients from the local wet market. I prefer going

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MILAN-BASED Alice Casiraghi places a premium on sustainability. She likes supporting small, family- owned shops to promote organic and local products.

needed. But I also – and I think this is a skill that many people have lost – try to rescue food before it goes bad. For example, by turning overripe berries into jam or even by simply remembering to put food into the freezer before it goes bad." Anna Kuusela , a life coach and author of The Wander Woman’s Playbook , is a Finnish transplant to London and a staunch advocate against food waste. “I travel a lot and often have meetings with clients, so it makes more sense sometimes not to cook for myself. I don’t want to buy food and then end up throwing it away because I’m not home to eat it.” Anna uses apps like Ocado to order food for takeaway. “I also order fruits and vegetables through Abel & Cole. They deliver a box with enough ingredients for about two big salads, and since I live alone, it’s usually enough for four servings. I like their farm-to-table approach and the fact that they pick up the empty box from my flat, too.”

As more and more consumers in countries like China – whether they live alone or not – leave the local wet markets for the convenience offered by supermarkets, the need for labels for packaged foods will grow. At the same time, brand owners are likely to respond to the growing trend of single person households by launching smaller package sizes instead of the family or value saver packs that have been popular in years past. Waste not, want not Milan-based Alice Casiraghi , a service designer by trade who co-founded Future Urban Living with Lulu, places a premium on sustainability. “I am not a fan of chain supermarkets, because I see a lot of waste in their packaging. I prefer going to small shops run by families and putting my purchases in a reusable bag,” she notes. “I’m lucky to live in a country with high quality produce and I want to make sure I respect food by not wasting it. Part of this is buying only what’s

u

Single-person households have the advantage of autonomy. As consumers, this gives singletons immense power – to choose products that reflect their beliefs and values. Sustainability, especially of the packaging used, is proving to be one of the most important determinants of what makes it into a singleton’s shopping basket.

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As sustainability becomes even more important in singletons’ purchase decisions, brand owners need to be able to provide more sustainable packaging alternatives.

Since 2001, the number of single- person households has risen by 50%, to 330 million in 2016.

raised some questions. “I make coffee at home in the morning. It’s the only thing I have for breakfast. Have you noticed howmuch trash takeaway coffee produces? I’m always surprised at the amount of plastic waste it creates.” Alice, too, tries to avoid overly packaged products. “I try and reduce the amount of plastic waste I generate by buying shampoo and conditioner bars, so they don’t come in bottles. I have started making my own toothpaste, for example, it’s really quite easy.” “It’s easier in Europe to carry a reusable water bottle, but this could be difficult in places where tap water is not safe to drink. I also try to avoid eating and drinking on the go. It’s part of Italian culture to sit down for food – whether it’s just for an espresso or for a full meal. If I have no other choice, though, I’ll choose unpackaged options like a focaccia or a panino,” Alice explains. As sustainability becomes even more important in singletons’ purchase decisions, brand owners need to be able to provide more sustainable packaging alternatives. The range of fibre-based packaging materials offered by UPM Specialty Papers meets consumer and brand requirements for renewable and recyclable alternatives to fossil-based materials. “We’re usually too busy to have a proper meal at lunch here in London, so you end up buying a sandwich and a drink and then eating it ‘al desko,’” Anna says with a laugh. “I tend to make a conscious decision about what I buy, but I am also practical. Sometimes you can only make the best choice among what’s possible. One thing I still do here – a habit I picked up in Finland – is that I always carry a canvas bag for my shopping. That way, I can at least avoid using plastic bags.” 

Reading the labels Lulu, Alice and Anna all share a preference for organic and local

produce. “I read the labels carefully to check if a product is organic,” says Lulu. “I try to eat organic as much as possible. I buy fruits and vegetables locally and eat what’s in season. Eating seasonal means food is cheaper and fresher. Organic seems like a fairer option, with better quality and superior products, although of course it’s not always guaranteed.” Anna, who describes her diet as “almost vegan,” chooses organic for health reasons. “My health is important to me. One of the good things about living in a melting pot like London is the number of choices available. I don’t mind paying a premium for organic because I think it’s important that we take care of ourselves.” Alice also prefers supporting small, family-owned shops to promote organic and local products. “Buying from specialty shops might be a bit more expensive, but I prefer it to chain supermarkets. Thankfully, I can afford to make these kinds of choices. I know there are people, like those who are just starting out, who cannot do the same.” Conscious consumption patterns Single-person households have the advantage of autonomy. They can freely decide what to spend their money on, with only their personal preferences in mind. As consumers, this gives singletons immense power – to choose products that reflect their beliefs and values. Sustainability, especially of the packaging used, is proving to be one of the most important determinants of what makes it into a singleton’s shopping basket. Takeaway coffee is something commuters all over the world pick up almost without a second thought. For Lulu, though, this requisite prop for working people everywhere has

By 2020, single-person households will account for 18% of total households globally.

Most of the more than 16 million people who live alone in the US are between

the ages of 35 and 64.

Single-person households are the most common household type in the EU.

In Sweden, 59% of

households have only one member.

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Innovat ion in Biofore

TEXT Matti Remes   PHOTOGRAPHY Janne Lehtinen, UPM

FOREST FILM LAYS FOSSILS TO REST Wood-based labelling innovations offer a great example of how UPM’s dedicated efforts to develop materials replacing fossil-based raw materials are starting to pay off with commercial breakthroughs. D emand for renewable packaging materials is increasing rapidly, especially in consumer products such as food and cosmetics. The same trend is visible in labelling materials: consumers are eager to replace fossil-based resources with renewable rawmaterials. UPMRaflatac and UPMBiofuels of UPMRaflatac’s film label stock business in the EMEIA region. “We are now taking the first concrete steps to fulfil our promise of gradually eliminating fossil-based based polypropylene, is the first labelling material of its kind on the market, affirms Tuomo Wall , Director

As versatile as plastic International food and cosmetics companies are spearheading efforts to increase the use of renewable and completely recyclable packaging materials. Unilever, for example, aims to start using completely reusable, recyclable or compostable plastic packaging by 2025. Procter & Gamble has announced that they will decrease their use of virgin plastic produced Forest Film label stock comes with a promise of complete chain-of-custody traceability, meaning that its origins and production chain are verified by an independent third party.

rawmaterials. At some point, we aim for all of Raflatac’s plastic films to be produced from either recycled or renewable rawmaterials,” Wall promises. In tandemwith Forest Film, UPM Raflatac has also launched a new Fossil Free Adhesive, which is likewise produced wholly from renewable rawmaterials. Together with UPM Raflatac’s labelling materials, it forms part of a comprehensive solution in which every component supports sustainability.

have together developed a new product in direct response to this rising demand. Forest Film is a new labelling innovation made fromUPM BioVerno naphtha produced at UPM’s Lappeenranta Biorefinery. Renewable naphtha is a fossil-free rawmaterial made from crude tall oil, a residue from pulp production. Forest Film, being made of wood-

24 | UPM BIOFORE BEYOND FOSSILS

FOREST FILM is a great example of how UPM’s ongoing work to replace fossil-based raw materials is bringing exciting innovations to the market.

from crude oil by 50% by 2030. “We support the phase-out of fossil- based plastic. Every tonne of labelling materials produced from renewable plastic replaces a tonne of fossil-based plastic,” notes Wall. Labelling materials produced from bio-based plastics have exactly the same properties as traditional plastics. This means that they can be used as a drop-in solution in current production without requiring any process modification. Customers are increasingly aware that a product’s environmental friendliness should amount to more than marketing speeches. Forest Film label stock comes with a promise of complete chain-of-custody traceability, meaning that its origins and production chain are verified by an independent third party.

with dairy company Arla, packaging company Elopak and chemical company Dow. The value chain is structured so that Dow refines plastic granules fromUPMBioVerno naphtha, and Elopak then uses the granules to produce packaging for Arla. The thin plastic films used in cartons to make them leak-proof are produced from the renewable plastic. “Wood-based plastic significantly reduces the need for fossil-based plastic, and the new packaging can be recycled the same way as before,” Snellman says. 

Breakthrough moment Forest Film is a great example of how UPM’s ongoing work to replace fossil-based rawmaterials is bringing exciting innovations to the market. “It is also a shining example of successful collaboration within the group. One UPM business produces the rawmaterial, which is then refined into products by another,” says Marko Snellman , Commercial Manager at UPMBiofuels. Forest Film’s value chain also includes other partners who produce plastic rawmaterials from renewable naphtha and then produce the plastic film supplied to Raflatac. Snellman emphasises that new solutions are often invented in ecosystems bringing together different industries. In February, UPMBiofuels launched a collaborative venture

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TEXT Vesa Puoskari   PHOTOGRAPHY Janne Lehtinen; UPM

WHAT’S THE SPECIES?

Natural wound care

New wound care dressing made from a sustainable, wood-based raw material can speed-up healing and brings new convenience to patient care.

F ibDex® is a new wound care product created by UPM in collaboration with researchers from the University of Helsinki and surgeons and nursing staff from the Helsinki Burn Centre. FibDex is the third biomedical product based on renewable and responsible wood-based rawmaterials to be commercialised by UPM. Dr Jane Spencer-Fry , Director of Biomedicals at UPM, says that medical professionals have responded positively to this innovation made from natural raw materials. “Surgeons and nurses are really interested in this new product, which is more comfortable for patients and can speed up their recovery. Clinical trials showed the wound care dressing provides significant benefits for the treatment of skin graft donor sites.” A biomedical innovation The innovation was conceived when Marjo Yliperttula , Professor of Biopharmaceutics at the University of Helsinki, developed an interest in nanofibrillar cellulose. Biomedical soon became the focus of her medical research. “During the initial studies, nanofibrillar cellulose proved to be a material that is extremely compatible with human tissues,” explains Yliperttula.

26 | UPM BIOFORE BEYOND FOSSILS

THE WORLD’S FIRST wood-based FibDex wound dressing is based on nanocellulose, which has been shown to be compatible with human cells and tissue.

According to patients who took part in the clinical trial, FibDex was comfortable throughout treatment, but more importantly it was reported that there was a significant improvement in scar quality and vascularity. “Changing burn patients’ wound dressings can be a very painful procedure, so both patients and nurses benefit fromFibDex. It’s more comfortable for the patient and frees up nursing resources for other tasks,” adds Spencer-Fry. Based on the clinical trial results, FibDex was awarded the CEmark, as it fulfils the standards and legislative requirements set for medical devices to be sold on the European market. Aiming for global markets As UPM’s biomedical products are newcomers to the biomedical and clinical applications markets, it will take a lot of work to increase recognition of both the company and its products. UPM is currently looking for partners to distribute the products. “We are aiming for global markets. In addition to Europe, the product can be sold in in countries outside of the European Union which accept the European CEmark. The United States and China have different regulatory requirements,” says Spencer-Fry. “Thanks to GrowDex® hydrogel for 3D cell culture, we have learnt how wood-based materials can benefit our customers, researchers and patients. We used this knowledge and expertise to our advantage when developing FibDex.” 

changed. This does not happen with FibDex as the dressing is only applied once at the start of treatment. During the healing process FibDex gradually peels away from the donor site once the skin beneath has healed,” notes Yliperttula. Treating patients becomes easier FibDex is particularly suited to treating large wound areas. The dressing, made from nanofibrillar cellulose, provides a moist environment for optimal healing and absorbs fluids from the wound. Just one dressing is required throughout the whole treatment.

Yliperttula and her research team proved that nanofibrillar cellulose could be used for cell culture and wound care as well as various other applications. “Skin grafts are used to treat severe burns, skin cancer and plastic surgeries. Skin is removed from the patient’s back, for example, and transplanted onto the part of the body needing treatment,” she explains. Skin graft donor sites are very painful and can be difficult to heal. “The donor site must be dressed, but as the skin heals and grows, the new skin can stick to the dressing and peel away when the dressing is

“We are thrilled to bring a new product to the market that will improve patient treatment and recovery, whilst reducing time demands on busy healthcare professionals,” confirms Spencer-Fry.

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