UPM Pulp Matters 2024

UPM PULP MAGAZINE 2024 FIBRES FOR THE FUTURE PULP MATTERS

FIBRE PHENOMENA P. 6

MARKET REVIEW P. 16

CUTTING EDGE P. 18

UPM PASO DE LOS TOROS REACHES FULL CAPACITY

GAINING FOOTHOLD IN NORTH AMERICA

UNLEASHING THE FULL POTENTIAL OF PULP

PULP MATTERS

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CONTENT 1/2024

4–5 EDITORIAL GROWING TOGETHER WITH OUR CUSTOMERS 6–15 FIBRE PHENOMENA UPM PASO DE LOS TOROS RIGHT ON TRACK 16–17 IN FOCUS SETTING SIGHTS ON NORTH AMERICA 18–21 CUTTING EDGE TURNING PULP INTO PERFORMANCE 22–25 THE PERSONAL TOUCH FOREST OWNERSHIP IS AN INVESTMENT FOR THE FUTURE 26–27 PULP PORTFOLIO Q&A: UPM PULP SUSTAINABILITY HANDBOOK 28–29 BUSINESS BLUEPRINT PULP AT THE CORE OF CIRCULARITY 30–31 NEWS PULP CONNECT, SUSTAINABLE PACKAGING SURVEY, ECOVADIS RECOGNITION & NOKIAN TYRES PARTNERSHIP

UPM’S TECHNICAL SUPPORT IN NORTH AMERICA FINDS THE PERFECT PRODUCT FIT FOR EACH CUSTOMER

06 EUCALYPTUS ECONOMY The UPM Paso de los Toros mill has various positive impacts on the local economy and regional development.

22 FOREST PARTNERSHIP María Marta Albicette and Carlos Viola have turned family land into a profitable plantation forest.

PULP MATTERS ISSUE 2024 Alvar Aallon katu 1, PL 380,

Production and layout: Vapa Media Printing house: Grano

28 THE BIG QUESTIONS

FI-00101 Helsinki www.upmpulp.com

PULP MATTERS is published in English and Chinese.

PEFC/02-31-80

Publisher: UPM Pulp Editor-in-chief: Sari Hörkkö Editorial board: Fang Deng, Mira Huang, Sari Hörkkö, Tomas Wiklund & Roberto Mirande

The UPM Pulp Sustainability Handbook answers our customers’ questions about a whole range of sustainability-related issues.

Promoting Sustainable Forest

Cover: UPM Fine 170 g Paper: UPM Fine 120 g

Management www.pefc.org

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PULP MATTERS 2024

EDITORIAL

Growing together with our customers Backed with our strong eucalyptus business, UPM is ready to answer the growing global need for renewable fibres.

“CLOSE COOPERATION WITH ALL OUR STAKEHOLDERS AND PARTNERS IS KEY TO ACHIEVING GREAT THINGS.”

Dear Reader, In this issue of Pulp Matters magazine, we celebrate a major milestone, as the UPM Paso de los Toros pulp mill has successfully ramped up to nominal production capacity. Our world-class platform in Uruguay – with its highly productive plantations, best available technologies, and efficient logistics – consolidates UPM’s global presence as a competitive and sustainable fibre supplier. Besides highlighting our operations in Uruguay, we introduce the team serving our customers in North America, the world’s third largest pulp market. Boosted by our increased supply of eucalyptus pulp, we are determined to become a long-term partner for current and future clients in our new strategic market. Despite the generally positive pulp demand outlook on a global level, the challenges vary in different geographies. The Nordic, and European, forest-based industry is facing tight wood supply and elevated costs. After Russian wood imports were banned, the availability of softwood fibre has become more challenging, and the shortage of raw material is now beginning to make a serious mark on the entire industry. In line with these market and cost developments, we were unfortunately forced to temporarily curtail the production

at our UPM Kaukas and UPM Kymi pulp mills in Finland this autumn for approximately three weeks. However, even in this challenging market situation, we believe we are well equipped to find solutions in cooperation with our customers. With our uniquely comprehensive range of both hardwood and softwood pulp products, and strengthened Technical Marketing and Services team, we can help you find the optimal fibre mix for each specific requirement. Close cooperation is key to achieving great things – not only with customers but also all other stakeholders and partners. Our Paso de los Toros growth project would not have been possible without teaming up with various suppliers and contractors throughout the value chain, and active dialogue and cooperation with the surrounding society, local communities and authorities. As an example, we present the story of a landowner couple who have collaborated with UPM for almost 15 years and made a long-term investment by diversifying their agricultural business into forestry. Similarly, we are here for our customers in the long run, now supplying UPM Euca pulp of consistent quality from two world-class pulp mills in Uruguay well into the future.

Tomas Wiklund Senior Vice President, Pulp Sales UPM Fibres

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FIBRE PHENOMENA

TEXT: TIMO NYKÄNEN PHOTOS: UPM & ANDRITZ

UPM PASO DE LOS TOROS RIGHT ON TRACK

UPM’s new pulp mill in Uruguay has moved successfully from ramp-up phase to full capacity. As part of UPM’s entire forestry value chain the mill has various positive impacts on the local economy and regional development.

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FIBRE PHENOMENA

The UPM Paso de los Toros pulp mill has been created as an efficient single-line operation representing state-of-the-art design in the industry.

T he UPM Paso de los Toros pulp mill achieved an important milestone in the first half of this year when it reached full nominal capacity – a month before its first scheduled maintenance shutdown in June. With an annual production capacity of 2.1 million tonnes of eucalyptus pulp the mill increases UPM’s pulp capacity by more than 50%. According to Marcos Battegazzore , VP Pulp and Forestry Operations at UPM Uruguay, the first 18 months in operation have been an intensive period, requiring a steep learning curve. All activities and services including subcontractors along the entire

“WE ARE LOOKING FORWARD TO SEEING THE FULL POTENTIAL OF THE MILL.” value chain – from tree nurseries and harvesting to maintenance and logistics – are now up to speed. “The start-up and ramp-up periods of a pulp mill are kind of a discovery phase where you find out which things were perfectly implemented during the design and installation phases, and where there is need for adjustments and improvements. We are now in the normal running phase and looking forward to seeing the full potential of the mill,” Battegazzore says. He adds that the shutdown was a complete success, and the overall stability of the mill has been at very good level after starting up again. “Maintenance shutdowns are important in securing stable, safe and environmentally sound operations. We have continued to develop and fine-tune our production and have been running consistently even above the designed capacity for the last few months,” Battegazzore notes.

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FIBRE PHENOMENA

CONNECTION TO THE WORLD Although UPM has accumulated a great deal of experience and know-how from operating the Fray Bentos pulp mill now for almost 20 years – and managing forestry operations in Uruguay for over three decades – the Paso de los Toros mill is a unique setup especially regarding its logistical platform. Because of the mill’s inland location, the rebuilt and improved railroad connecting the mill to the new deep sea pulp terminal in the port of Montevideo is an essential part of the supply chain. The state-owned railroad is part of the Uruguayan government’s infrastructure plan, executed as a public-private partnership. While the 273-kilometre rail connection was being renewed trucks have been used for transporting pulp to the port. “We have progressed this year as planned by gradually ramping up the train deliveries in quarterly phases. In May the first pulp transport by rail was successfully delivered from Paso de los Toros to Montevideo, and we have since increased the amount of pulp transported by train on a weekly basis. By the end of the year we are aiming to have shifted fully from trucks to rail, with four to five daily trains travelling between mill and port,” Battegazzore explains. The first shipment of pulp from UPM’s pulp terminal in Montevideo sailed in May 2023, and all operations have worked smoothly since the beginning, Battegazzore says. “We have so far loaded more than 60 ships and delivered

ROOTS OF FOREST INDUSTRY IN PROGRESSIVE LEGISLATION UPM’s history of planting eucalyptus in Uruguay dates back to 1990 – almost to the beginning of the plantation forestry industry in the country. The national forest law passed by the Uruguayan government in 1987 was aimed at diversifying the country’s land use and industrial structure and advancing the protection of native forests. Lucia Basso , Chief Executive Director of Plantesia, a company specialised in timberland assets management in South America, explains that the law, based on the Uruguayan soil classification, created an excellent plan for a pioneering land management programme. This helped to identify forest priority soils that had low fertility for traditional uses such as cattle grazing but with good potential for forestry. “This development was further supported with tax exemptions and subsidies, which are no longer in force, targeted at the forest industry – they helped to attract investments,” Basso says. She considers these measures to have been highly successful as today forestry is Uruguay’s leading export industry, with a total value of almost USD 3,000 million, representing 6% of the country’s GDP. “The sector has grown so that we have reached just over 1 million hectares of planted forests. Despite this,

pulp to all of our market areas – APAC, North America and Europe – and also regularly receive shipments of chemicals for pulp production, such as caustic soda and sulfuric acid.” UPM EUCA FROM TWO TOP CLASS MILLS A key factor behind the smooth progression of the Paso de los Toros project has been the UPM Fray Bentos pulp mill and its expert staff, some of whom have relocated to the new mill. They have also been an invaluable resource in training new mill operators. Fray Bentos recently reached a milestone of its own by producing the mill’s 20 millionth tonne of UPM Euca pulp. “We’re proud of how the Fray Bentos mill has consolidated itself as a benchmark in the field and how, in fact, it launched the entire modern pulp industry in Uruguay. Initially there were many questions raised locally, for example, regarding the environmental impacts and safety of the industry, but our professional organisation was quickly able to demonstrate the mill’s solid performance in all aspects,” Battegazzore notes. He emphasises that the goal from the very beginning has been to make sure that the quality of UPM Euca is exactly the same from both mills. “In terms of quality parameters and papermaking properties, it’s important that our customers can rely on the consistency of the product. Much of this is of course due to the consistent quality of the raw material and optimised mix of eucalyptus species established on our plantations.”

850+ people 6% share of energy generation in Uruguay working at mill site daily 2.1 million t/a eucalyptus pulp

“THERE IS STILL PLENTY OF ROOM FOR THE SUSTAINABLE

GROWTH OF FORESTRY IN URUGUAY.”

Lucia Basso CEO, Plantesia President, Sociedad de Productores Forestales

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FIBRE PHENOMENA

“UPM’S SUSTAINABLE FORESTRY CONCEPT ENSURES THE QUALITY OF OPERATIONS WITH THE CONSEQUENT CARE FOR NATURAL RESOURCES AS WELL AS THE SAFETY OF WORKERS.”

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FIBRE PHENOMENA

UPM’s total value chain in Uruguay has created

approximately 7,000 direct and 10,000 induced jobs in the country. Pictured: Leticia Tognazzolo and Juan Artucio.

forests currently use only around 6% of the land area. Originally about 4 million hectares of forest priority soils with low productivity for other agricultural activities were identified, so there is still plenty of room for the sustainable growth of forestry,” Basso estimates. Besides heading Plantesia, Basso is president of SPF (Sociedad de Productores Forestales), the association of forest owners in Uruguay. Providing a network for different operators within the field, the association is also involved in, for example, areas such as forest fire prevention, research, communication and labour-related legal issues. POSITIVE SOCIAL IMPACTS OF SUSTAINABLE FORESTRY Investments into forestry have created jobs, export income, educational opportunities and better transport connections and services for Uruguay, especially in rural inland areas. The Paso de los Toros pulp mill project impacts most strongly on the relatively less developed central and north eastern regions in the country. In the case of the pulp industry the entire value chain from wood supply to logistics is located in Uruguay. UPM’s operations alone represent more than 3% of Uruguay’s GDP. “Forestry is one of the sectors that has best integrated all its phases into a production chain, from the primary silvicultural phase to industrialisation and commercialisation. In addition to horizontal integration with transportation and logistics, R&D and technology,” Basso points out. Having recently travelled to Finland for the first time, Basso was impressed with her visit to a local forest and experiencing Finnish forest management practices first hand. She says comparing Nordic forests to Uruguayan plantations isn’t really possible – mainly because native Finnish forests are managed with up to 80-year rotations, while eucalyptus plantations are harvested every 10 to 12 years. However, the principles of sustainable forest management are exactly the same. “UPM’s sustainable forestry concept supports both environmental and social aspects, ensuring the quality of operations with the consequent care for natural resources as well as the safety of workers,” Basso notes. SUCCESSFUL TEAM EFFORT UPM’s total value chain in Uruguay – including plantation operations, both pulp mills, related logistics and contractors – has created approximately 7,000 direct and 10,000 induced jobs in the country. According to Marcos Battegazzore, UPM’s own staff at the Paso de los Toros site has grown from about 500 to currently approximately 850 people working at the mill daily. He wants to give thanks to the entire operations team in Uruguay for making the largest investment in UPM’s history a success. “This has obviously been a major exercise for both our own teams and external operators. I’m extremely happy with the collective success we have so far achieved and will together continue the process of continuous learning and improvement,” Battegazzore concludes.

“I’M EXTREMELY HAPPY WITH THE COLLECTIVE

SUCCESS WE HAVE SO FAR

ACHIEVED, AND WILL TOGETHER CONTINUE THE PROCESS OF CONTINUOUS LEARNING AND IMPROVEMENT.”

Marcos Battegazzore VP Pulp & Forestry Operations UPM Uruguay

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IN FOCUS

TEXT: TIMO NYKÄNEN PHOTOS: NED RISSKY

Boosted by increased capacity from the Paso de los Toros pulp mill, UPM is gaining a solid foothold in North America. SETTING SIGHTS ON NORTH AMERICA

UPM Pulp Sales North American team, from the left: Jean-François Royer, Justin Pressley, Monique Claverie, Hanna Taye, Claudia Perez and Darren Barker.

Being flexible and adaptive in this sense is one way of differentiating ourselves from competitors,” Royer notes. Considering other competitive advantages, he also highlights UPM’s entire sustainability story and sustainable forestry operations in Uruguay. “Most of our customers sell directly to consumers so it’s very important they can source products from a supplier with a good sustainability track record. And we have the data to prove it –

pulp produced in UPM’s Finnish mills to the marketplace. Here UPM’s technical support is on hand to help customers, for example, to find the optimal ratio for combining hardwood and softwood in the end product. In general the team expects to see growth in its targeted end-use markets due to increasing consumer demand. “There’s obviously fluctuation in pulp demand in the marketplace but increasing quality and sustainability requirements are good news

Having successfully established itself as a reliable pulp supplier in Europe and the Asia-Pacific region during the last decade, UPM Pulp took the next logical step of entering North America – the world’s third largest pulp market. The company began developing its presence in the market in unison with the construction of the new UPM Paso de Los Toros pulp mill in Uruguay, as this increased UPM’s pulp capacity by more than 50%. The mill reached its nominal annual production capacity of 2.1 million tonnes of eucalyptus pulp in the spring of 2024. Darren Barker , Sales Director for UPM Pulp in North America, says he is very happy with how the local team has succeeded in building up the business and developing trust with customers. “Pulp is very much a global business, and a relationship business. Creating trust takes time but UPM has an excellent global reputation and high quality products to build upon. When we started in this market in 2021 we were delivering around 100,000 tonnes of pulp, and now going into 2025 we’re looking to supply more than 300,000 tonnes. I’m really proud of that result,” Barker says, adding that the most essential part of UPM’s success is the reliable delivery of products with consistently high quality. SUSTAINABLE, FLEXIBLE AND CUSTOMER-CENTRIC Barker’s colleague Jean-François Royer , Senior Sales Manager for the region, has experience of other market areas from his previous job and he sees customer expectations to be somewhat different in North America. “A specific difference is that we deliver our pulp directly to the customers’ production sites. Many customers here run with fairly lean stock, so it’s crucial that we’re able to provide on-time deliveries.

for example our latest platinum score in the EcoVadis responsibility assessment,” Royer points out. Barker adds that one of UPM’s strengths is its service model, having a team with “ boots on the ground” working in close contact with customers. Barker and Royer travel frequently, working mostly out of their home

for UPM. Another interesting development is how we’re continuing to see less pulp produced locally here in North America and more and more being imported,” Royer says. “I believe we have every opportunity to become the premier eucalyptus pulp supplier in North

PULP IS VERY MUCH A GLOBAL – AND A RELATIONSHIP – BUSINESS.

America. We have a great brand and sustainability reputation, quality products and customer support, and strong support from the organisation. Also in softwood we can provide unique value for specific end uses,” Barker adds.

offices in Florida and Montreal respectively. The team also includes Monique Claverie , Senior Manager for Technical Marketing and Services, logistics coordinators Justin Pressley and Tisa Garcia as well as customer service specialists Claudia Perez and Hanna Taye . Administrative headquarters are located in UPM’s offices in Naperville, Illinois, a suburb of Chicago.

BUILDING A GLOBAL REACH Looking forward, Barker wants to emphasise the importance of teaming up with customers who are ‘in it for the long term’ and want to grow together with UPM. “Our purpose here is to optimise our North American offering by bringing all necessary resources from UPM’s global organisation to serve our customers and build long-lasting relationships,” Barker concludes.

OPPORTUNITIES IN A GROWING MARKET Barker says the primary market in North America for UPM Euca pulp delivered from Uruguay is premium tissue products, for which he thinks the pulp is a perfect fit. The team has also begun to introduce softwood

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CUTTING EDGE

TEXT: TIMO NYKÄNEN PHOTOS: NED RISSKY

Turning pulp into performance In charge of UPM Pulp’s technical marketing and services in North America, Monique Claverie wants to help customers unleash the full potential of pulp.

Monique Claverie examining tissue samples with Roberto Mirande, Director, Technical Marketing and Services at UPM Pulp.

M onique Claverie , Senior Manager, Technical Marketing and Services for UPM Pulp in North America, joined the team in UPM’s newest market area in May 2024. With a degree in Chemical Engineering from the University of Maine, and previous experience within the paper industry – particularly as quality manager for a tissue producer – she is the perfect fit for the new role.

I n her new role Claverie is looking forward most to creating relationships with customers and utilising her technical background in helping them be successful in their own businesses. “I think it’s extremely important to have a technical link between customers’ technical teams and our

production facilities. Relationship building and getting to meet many of our customers in person is one of my main tasks in the beginning, as well as visiting all our pulp mills. I suppose I’m an extrovert among engineers as I enjoy that part of my job the most,” she laughs. Claverie adds that only by gaining a deep understanding of customers and their products is she able to accurately find the pulp product best suited to specific needs. “We’re somewhat unique in the North American market because UPM offers both hardwood and softwood pulps, and that also provides us with a certain flexibility for optimising our offering. So, my job –

“IT’S EXTREMELY IMPORTANT TO HAVE A TECHNICAL LINK BETWEEN THE CUSTOMERS’ TECHNICAL TEAMS AND OUR PRODUCTION FACILITIES”, SAYS MONIQUE CLAVERIE.

“For the past six years I’ve been working for a tissue paper manufacturer. Besides handling in house quality at the plant, I worked closely with customers on product development and making sure they had exactly the right grade of tissue for their needs. I think it’s useful to have been a pulp consumer on the other side of the table – especially considering a large part of UPM’s pulp volume in North America goes to the tissue industry,” Claverie says. She adds that North America differs from other market areas in how a uniquely large share of tissue products are manufactured utilising TAD (Through Air Drying) technology. This involves using hot air to dry tissue sheets, resulting in softer and bulkier products compared to conventional methods.

by utilising our R&D facilities and the extensive know how of our global team – is to find the perfect fit for that customer’s end use from our broad portfolio.”

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CUTTING EDGE

A good example of Claverie’s work in practice is a current case where a specialty paper manufacturer required a product with a lot of air resistance but is using a machine with limited drainage capability. “In this case we tested their pulp samples in our R&D centre to get data that could be compared with our products. We then ran a simulation programme to see how our different pulps would perform on their machine. Based on this I was able to make a well-informed recommendation for the most suitable product,” Claverie explains. Considering the main elements of good customer service and building trustworthy relationships, Claverie highlights responding quickly to potential quality issues and working in close cooperation to understand the root cause and implement corrective actions. “I believe in creating partnerships by providing information transparently and backed with meaningful data so that customers feel they can rely on us,” she notes. M uch like her colleagues – Sales Director Darren Barker and Senior Sales Manager Jean-François Royer who are introduced in this issue’s Market Review article – Claverie works mostly from her home office and does a lot of travelling. Her husband also works in the industry. “I’ve lived all my life in different parts of Maine – except for a five-year period in Michigan. Currently we live ‘way Downeast’ near the Canadian border, where we have 10 acres on the bay. I love the outdoors and gardening, and my husband keeps bees and makes our own maple syrup.” With environmental values close to her heart, she says one of the reasons for taking on the new position was UPM’s strong sustainability story. She considers this a competitive advantage for the company in a market that tends to be very careful about regulatory constraints. “I feel really good about the choices UPM is making regarding sustainability. Naturally it helps when you can stand behind the company values and believe in what you are selling,” Claverie concludes.

“I BELIEVE IN CREATING

“Relationship building and getting to meet many of our customers in person is one of my main tasks in the beginning,” says Monique Claverie.

PARTNERSHIPS BY PROVIDING INFORMATION TRANSPARENTLY AND BACKED WITH MEANINGFUL DATA SO THAT CUSTOMERS FEEL THEY CAN RELY ON US.”

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THE PERSONAL TOUCH

FOREST OWNERSHIP IS AN INVESTMENT FOR THE FUTURE

Through almost 15 years of collaboration with UPM, María Marta Albicette and Carlos Viola have turned family land into a profitable plantation forest.

TEXT: ANNA VENEJÄRVI PHOTOS: MARIA MARTA ALBICETTE

M aria Marta Albicette and Carlos Viola , are agricultural engineers and landowners in the Río Negro department of Uruguay. The couple lives in the town of Young but works about 80 kilometres away on an agricultural property in Paso de los Mellizos. Albicette and Viola own 1,065 hectares of land, most of which they inherited from their grandparents. The family has dedicated 500 hectares to agriculture, 500 hectares to cattle – and 65 hectares to forestry. Around 14 years ago the couple planted their first forest in partnership with UPM. In addition the couple leases 600 hectares of neighbouring forested fields from UPM. In this way the family uses a total of 1,100 hectares for livestock farming, dedicated to 1,000 steers of breeds intended for meat production.

T he Viola-Albicette family had a piece of land suitable for planting a forest, but no capital for the project or prior knowledge of forestry. However, cooperation with UPM’s forestry experts made it all project possible. Eucalyptus trees of the dunnii and grandis varieties are now growing in their forest. The rotation period of these trees in Uruguay is 10-12 years. “We signed a cooperation agreement with UPM in 2010 and in 2022 we harvested our first tree crop. So the next harvest will be in about 10 years’ time,” Viola says. The couple is one of more than 900 local Uruguayan wood producers participating in UPM’s Fomento Programme launched in 2006. The goal of the programme is to cover a large part of the wood required by the Fray Bentos and Paso de los Toros pulp mills with timber supplied by local producers associated with UPM.

María Marta Albicette and Carlos Viola recently visited the Paso de los Toros pulp mill, located around 160 kilometres from their agricultural property in Paso de los Mellizos.

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THE PERSONAL TOUCH

More than 900 local Uruguayan wood producers participate in UPM’s Fomento partnership programme.

A lthough Albicette and Viola were not physically involved in activities such as planting the forest, as forest owners they were kept informed of the project’s progress. “We received regular progress reports and all the information we needed. We also went on a tour of our forest with UPM representatives,” Albicette says. The harvesting plans were communicated early on, and the price of wood was negotiated with the owners. “Uruguay is a small country where many people know each other, so communication with the forest professionals working in the area was immediate and easy. We were also invited to participate in various activities and were happy to do so,” she adds. The couple recently visited the Paso de los Toros pulp mill, located around 160 kilometres from Paso de los Mellizos. The partnership also inspired them to travel to Finland this past summer. “We contacted UPM when visiting Helsinki and they invited us to their facilities and introduced their activities. We were warmly welcomed and felt part of the company,” Albicette recalls. A lbicette and Viola have always paid close attention to sustainable development indicators and, as forest owners, are committed to protecting species and respecting local communities. They expect their partner to act according to the same principles.

“WORKING WITH ONE OF THE WORLD’S LARGEST FORESTRY COMPANIES WAS A GOOD

“Since 2000 I have been involved with sustainable forestry development courses and know how the practices have been implemented in different countries. In my opinion UPM is doing a good job: they are respectful and meet harvesting targets without forgetting their social responsibility. I consider the company a reliable operator that has quickly gained prestige in Uruguay,” Albicette says. F orestry is still a young industry in Uruguay compared to, for example, cattle raising, which has a long tradition in the country. However, more and more people are investing in Uruguay’s forests, and pulp and other wood-based products have become the country’s largest export. For Albicette and Viola planting a forest in partnership with UPM delivered the desired return on investment. “As a business, the first rotation period was profitable for us. We wouldn’t have been able to plant the forest on our own, so working with one of the world’s largest forestry companies was a good option for us,” Viola says. “We thought of our forest project as a great savings account: someone would take really good care of our assets,” Albicette explains. The couple hopes that their forests will be a nest egg for future generations as well. They have two children and three grandchildren, all of whom love the countryside. “For now, they are still in other careers, but we hope they will continue our work at some point.”

UPM also offers around 75,000 hectares in unplanted areas over which producers in the Fomento programme have priority in case they wish to locate their livestock there for grazing. U PM offers various business models for Uruguayan local landowners. In the leasing model UPM pays producers a certain annual income per hectare. Another option is that the producer carries out forestry activities supported by UPM, with UPM committing to buy the wood produced. Albicette and Viola chose the third option: UPM planted and took care of the forest and covered all the costs, but at the same time committed to paying a certain percentage of the wood at the end of the rotation period. “We trust UPM as a user of our land. Having experienced one growing cycle we can say that this option was the best for us, even though it took 11 years to get the income,” says Viola. “However, we understand that it may not be the best option for families that need the income regularly every year. There were uncertainties in the process, such as not knowing the price of wood at the end of the cycle, and how much wood would ultimately be obtained. It was all new to us,” Albicette adds.

OPTION FOR US.”

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PULP PORTFOLIO

The new UPM Pulp Sustainability Handbook answers the ‘Big Questions’ about forest use, carbon emissions, how we work in the places we operate, and what we are doing to deal with a whole range of sustainability- related issues.

HOW DID YOU COME UP WITH THE ‘BIG QUESTIONS’? The Big Questions in the handbook are about stepping back from just telling customers what we do, and instead thinking more from a customer’s perspective. The questions are drawn from this, through the many interactions we have with them, and also help to shape our sustainability focus and priorities. Our customers also want to have conversations with their own customers, to help them understand what’s going on in our forests and plantations, and why forest-related industries are critical to meeting emissions reduction goals globally. We wanted to put things in clearer terms: “Shouldn’t we be saving trees, not cutting them down?” is a great example. They’re questions the person on the street might ask. HOW CAN UPM’S CUSTOMERS MAKE USE OF THE HANDBOOK? While it began as an internal tool, the handbook has now been put online to provide a comprehensive snapshot so readers can dip in and out, depending on what they might need. A lot of detailed data is provided through other means to customers – the handbook is more about sharing key talking points and facts about all sorts of topics that fit under sustainability. We will add new stories to our handbook and update and evolve it continuously in the future.

WHERE DID THE IDEA FOR THE HANDBOOK COME FROM? The main idea was to get a better grip on the sustainability story for UPM Pulp’s business, rather than just the UPM Group’s overview. We wanted a way of talking about UPM Pulp to our customers in a clearer way that directly relates to their business. For example, if we made a great investment to reduce carbon emissions in a UPM paper businesses, this is fantastic for our own targets, but it won’t help our pulp customer’s emissions profile. The other element was about what sustainability means for us – the scale and number of issues is huge, so we wanted to bring it together coherently in one place. The handbook helps understand how everything fits together and how we track our progress. WHAT IS THE ROLE OF PULP IN THE TRANSITION BEYOND FOSSILS? Pulp plays a huge part in our modern-day world – it’s in so many aspects of daily life, whether that’s in our tissue and hygiene products, the magazines we read, or in the online retailer’s packaging – it’s everywhere. In terms of transitioning beyond fossil fuels, we need alternatives. You might associate fossils with transport, heating and manufacturing – but they are also ubiquitous in many end products, such as plastics, synthetic fillers and rubbers. If we want to reduce or eliminate these fossil-based materials, we need something else. Pulp is one alternative for multiple applications. And while recycled and alternative fibres have a big role to play, the virgin tree fibres that we use are an available and critical source for creating the products we all rely on. It can seem counterintuitive to talk about cutting down trees as being a solution to climate change, but if you’re moving beyond fossils, then biomass and renewables have a huge part to play – and that’s where we see our role.

Q&A UPM Pulp Sustainability Handbook

Scan the QR code to read the handbook online:

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BUSINESS BLUEPRINT

The UPM Kaukas mill site demonstrates an innovative and resource efficient circular bioeconomy The UPM Kaukas mill site demonstrates an innovative and resource efficient circular bioeconomy The UPM Kaukas mill site demonstrates an innovative and resource efficient circular bioeconomy. PULP AT THE CORE OF CIRCULARITY

Tall oil

Sawdust & chips

Tall oil

Sawdust & chips

Final regeneration felling 60–100 years

PULP MILL

Final regeneration felling 60–100 years

PULP MILL Softwood pulp Heat and electricity Turpentine, lignin, ash, green liquor dregs

Softwood pulp Heat and electricity Turpentine, lignin, ash, green liquor dregs

Certified fibre fromeach harvesting cycle

SAWMILL

Certified fibre from each harvesting cycle

BIOREFINERY

SAWMILL

Sawn timber

BIOREFINERY

Renewable diesel and naphtha, turpentine, pitch

2 nd thinning 45–65 years

Plantinga newforest

Sawn timber

Renewable diesel and naphtha, turpentine, pitch

2 nd thinning 45–65 years

Plantinga new forest

Sustainably managed forests

Softwood pulp

Bark

Sustainably managed forests

Softwood & hardwood pulp

Bark

Ash for land construction and fertilisers

Ash for land construction and fertilisers

PAPER MILL Coated printing papers

Seedling stand management 3–15 years

PAPERMILL Coated printing papers

Seedling stand management 3–15 years

Bark & sawdust

1 st thinning 20–45 years

Bark & sawdust

1 st thinning 20–45 years

BIOMASS POWER PLANT District heat and electricity

Bark

BIOMASS POWER PLANT District heat and electricity

Bark

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PULP MATTERS 2024

NEWS

UPM receives platinum score in EcoVadis responsibility assessment In this year’s assessment EcoVadis has awarded UPM a platinum score based on the company’s sustainability performance in four categories: Environment, Labour and Human Rights, Ethics and Sustainable Procurement. Only 1% of the 130,000 global companies assessed received a platinum rating. UPM scored 81/100 in the Manufacture of Pulp, Paper, and Paperboard industry. EcoVadis assesses the performance of globally operating companies in more than 220 purchasing categories and in more than 180 countries. The rating is based on a comprehensive assessment of the companies’ sustainability activities, including verified public information on supply chain practices.

Survey shows cost as main barrier for sustainable packaging Results from a recent survey conducted by UPM and the Pentawards, targeted at leading packaging designers, show that despite the ambitions to develop more sustainable packaging, price was highlighted as a key challenge by the majority of respondents. Although many of the designers acknowledged the importance of using sustainable materials for innovative packaging solutions, the cost frequently deterred their clients, leading many to choose the cheapest option instead. One respondent stated: “Everyone wants to be green, until they see that being green is usually more expensive.” While another noted: “I think the production end, or the manufacturers, are not yet completely ready for this kind of change.” Commenting on the survey findings Robert Taylor , Sustainability Director at UPM Raflatac, stated: “While cost has been highlighted as a barrier to embracing sustainable packaging design, it’s important to take a moment to consider what is the true cost of not doing so. We need a holistic approach that considers the value creation potential in a market that is growing twice as fast for sustainable products. This is especially key as the impact of new regulation and green finance kicks in, with carbon taxes, plastics taxes and Extended Producer Responsibility (EPR) fees just a few examples. Reducing packaging is one of the most effective ways to lower impact and cost. Using less raw material, water and energy and generating less waste or having more effective supply chains brings savings and reduces the environmental footprint.”

UPM and Nokian Tyres introduce first concept tyre with UPM BioMotion™ Renewable Functional Fillers UPM Biochemicals and premium tyre developer and manufacturer Nokian Tyres have formed a partnership that will see UPM’s CO₂-negative Renewable Functional Fillers (RFF) introduced as a renewable alternative to traditional CO₂- intensive fillers used in tyres. Functional fillers represent approximately 30% of a tyre and consist of materials such as primarily carbon black and precipitated silica. According to an initial test series by Nokian Tyres, replacing functional fillers with UPM BioMotion™ RFF offers great potential for more sustainable tyres and therefore UPM BioMotion is a highly relevant component on the path towards sustainable mobility.

New Pulp customer portal first step in pulp customers’ digital journey

Aiming to be an industry forerunner in digitalisation UPM is focused on developing digital solutions throughout the value chain, starting with customers. Our new customer portal, UPM Pulp Connect, is currently being developed – based on feedback received from the first pilot users. The aim is to start using the portal later this year. With UPM Pulp Connect our customers have access to all documents, data and contacts important to their

business with UPM in one location. Anssi Käki , VP for UPM Pulp’s Supply Chain & Tools and Processes, sees the portal as the start of a great journey together with our customers. “We have the necessary resources, skills, tools and, most importantly, the will to learn from our customers on how to develop further in serving them better.”

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PULP MATTERS 2024

TRANSFORMING THE WORLD OF MATERIALS

The most efficient way to mitigate climate change is to reduce the use of fossil raw materials. UPM combines responsible forestry and bio-based innovations into new renewable and recyclable materials that help consumers and businesses reduce their carbon footprint. Together we create a future beyond fossils.

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