UPM-Biofore-Magazine-3-2016-EN

C ON T E N T S

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32 Investors buy forest

03 EDITORIAL

– UPM guarantees steady timber demand and sustainable profits.

06 CONTENTS

“UPM has made balanced adjustments in a challenging environment,” says Björn Wahlroos, Chairman of the Board.

08 IN TIME

28 BIOCHEMICALS – NEW VALUE FROM WOOD

40 OTEPÄÄ RAMPS UP

UPM PLYWOOD PRODUCTION UPM’s modernized plywoodmill in Otepää, Estonia is set to double its production capacity this autumn. 43 WHAT’S BEHIND A WINE LABEL? Italian wine bottler Cielo e Terra and UPMRaflatac partner to

10 SHAREHOLDER VALUE ALWAYS COMES FIRST All strategic steps taken by UPM in recent years have served the interests of shareholders, affirms UPM’s Chairman of the Board BjörnWahlroos. 14 MEGATRENDS DRIVE PULP DEMAND Pulp is a versatile rawmaterial, and its demand is on a trajectory of constant growth, particularly in emerging markets. 19 WHY RESPONSIBLE INVESTMENT IS A WIN-WIN STRATEGY More andmore investors are investing in responsible businesses – and with very good reason. 22 FOCUSING ON HUMAN RIGHTS IN BUSINESS Business and human rights expert Anna Triponel shares insights on how the UNGuiding Principles have changed business over the last five years.

UPMBiochemicals leads the industry as a developer of wood-based chemicals.

EDITOR-IN-CHIEF Elisa Nilsson

EDITORIAL STAFF Heli Aalto, Sari Hörkkö,

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Kristiina Jaaranen, Terhi Jokinen, Monica Krabbe, Anneli Kunnas, Johan Lindh, Sami Lundgren, Marjut Meronen, Nina Norjama, Sini Paloheimo, Aili Piironen, Annika Saari, Kaisa Vainikka, Päivi Vistala-Palonen.

30 CLEANER MARINE SHIPPING WITH UPM BIOVERNO

With the marine industry striving to drive down emissions, recent tests promise a bright future inmarine use for UPMBioVerno. 32 INVESTORS SEE FORESTS AS MORE THAN JUST TREES A growing number of local and international investors are taking an interest in Finnish forest estates – and wisely so. ‘Words Matter’ is a UPM-sponsored project that inspires vocational school students to improve their reading skills through rapmusic. 38 SUPPORTING TEACHER EDUCATION IN URUGUAY The UPMFoundation in Uruguay supports in-service training of teachers in Río Negro Department to update and strengthen their pedagogical skills. 35 RAPPING FOR LITERACY

understand and reduce environ­ mental impacts using lifecycle assessment.

Global demand for bleached pulp is predicted to grow 2.5% annually for the next ten years.

DESIGN Valve

PRINTING Erweko Oy

44 LUXURY IS NEVER OUT OF FASHION

COVER UPM Finesse Silk 200 g/m² PAGES UPM Finesse Silk 130 g/m² UPM-KYMMENE CORPORATION PO Box 380 FI-00101 Helsinki Finland Tel. +358 (0)204 15 111 www.upm.com www.upmbiofore.com

Inspiring looks, exquisite texture and a luxuriant finish: what works for fashion also makes a great fashion supplement – starting with a paper that oozes style.

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46 WHY COMPLIANCE IS SMART BUSINESS

Operating responsibly brings a competitive edge in several ways.

Shift’s Anna Triponel helps businesses embed human rights issues in their corporate DNA.

48 INVESTING IN

A SUSTAINABLE FUTURE Investors learn how to integrate environmental, social and governance (ESG) issues into their portfolio decisions at the annual PRI in Person conference.

26 NUTRIENT RECYCLING FOR A HEALTHIER BALTIC SEA

UPM is employing novel approaches to minimize its impact on local water resources.

06 | BIOFORE

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