UPM annual report 2014

First page Previous page 48-49 Next page Last page

1 2 3 Our existing and new businesses that make use of renewable and reusable raw materials form the core of the Biofore strategy. UPM aims to create more with less in all its operations. The efficient use of raw materials and energy brings savings in terms of the environment and costs. UPM is listed as the best company in the paper and forest industry sector in the Dow Jones European and World Sustainability Indices (DJSI) 2014-2015. UPM is included in these indices for the third time in a row.

MORE WITH BIOFORE : RESPONSIBILITY AS A SOURCE OF COMPETITIVE ADVANTAGE

4 R E N E W A B I L I T Y A N D R E C Y C L A B I L I T Y I N N O V A T I O N

Value creation with stakeholders Dialogue, feedback and engagement

T H I R D - P A R T Y R E C O G N I T I O N

In 2014, the company’s main focus areas in corporate responsibility were the Step Change in Safety initiative, the improve- ment of contractor safety and the Clean Run environmental campaign. Special attention was also paid to the further development of responsible sourcing activities.

New business opportunities with ecodesign Biofuels

RESPONSIBILITY 45–59

E M P L O Y E E E N G A G E M E N T A N D S A F E T Y

Biocomposites Biochemicals

Creating competitive advantage and long-term value High performing people Resource efficiency Ecolabels and certification

UPM is committed to sustainable development. Responsibility and a holistic approach to environmental issues are key building blocks of UPM’s safe and responsible business operations and product development. Responsibility supports business development

Anticipating and managing risks Code of Conduct Environmental performance Responsible sourcing and forestry

EVENTS IN 2014

12 March: UPM expands its certification services in Finland and prepares its own PEFC group certificate 4 April: UPM donates EUR 100,000 for the new children’s hospital in Helsinki 6 May: WWF Poland and UPM Raflatac continue to co-operate in protecting rivers in Poland 18 June: UPM and WWF Finland enter versatile co-operation 25 June: UPM BioVerno wins EU Sustainable Energy Europe Award 11 September: UPM is listed as the industry leader in the global Dow Jones Sustainability Index 15 October: UPM achieves top position with the highest possible score in the CDP Climate Perfor- mance Leadership Index 30 October: UPM Raflatac an- nounces that all its production sites and terminals in China are certified to FSC and PEFC forest certification standards 11 November: UPM is announced as sector leader for the materials industry in CDP’s global forests report 13 November: UPM receives its own PEFC group certificate in Finland 4 December: UPM and WWF Fin- land enter co-operation to promote the sustainability of wood-based liquid biofuels

The changing operating environment drives companies to seek sustainable solutions Global megatrends, such as population growth, urbanisation, changes in consumer behaviour and power shift of economies, cause stress to the environment. For example, the increasing scarcity of raw materials, climate change, the loss of biodiversity and the avail- ability of clean water are all global environ- mental challenges. These megatrends will change our business environment and the way companies operate. The competition for non-renewable and renew- able natural resources will intensify and may also lead to conflicts. However, renewable natural resources offer an advantage since they can be used generation after generation, pro- vided that they are managed in a sustainable manner. The Biofore strategy is based on resource efficiency and renewability For UPM, these megatrends create also new opportunities, particularly in bio-based prod- ucts. Our products manufactured from renew- able and recyclable materials respond to global challenges. UPM’s Biofore strategy is based on using renewable and recyclable raw materials in a sustainable way. This means consuming resources such as raw materials, water and energy, in a prudent and responsible way while achieving energy, production and cost effi- ciency. Less waste is produced, giving products more economic and environmental value.

Resource efficiency encompasses various areas, such as: • Using natural resources as efficiently and productively as possible – creating more with less • Moving from the use of non-renewable resources to using renewable resources • Taking environmental aspects into consid- eration early in the product design phase • Reducing the environmental footprints of products • Increasing the recyclability of products and raw materials UPM is committed to responsible and ethical business practices All UPM activities comply with local laws and regulations. The company respects international human rights agreements and agreements con- cerning labour rights, including the UN Decla- ration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises. The company is also a signatory of the UN Global Compact initiative whose ten universal principles are derived from international agree- ments in the areas of human rights, labour standards, the environment and anti-corruption. Furthermore, UPM has promoted global sustainability projects by participating in the World Business Council for Sustainable Devel- opment (WBCSD) and by active dialogue with The Forests Dialogue organisation and with other organisations focusing on ethical conduct, such as WWF, IUCN and Changemaker.

OPENING UPM BIOFORE STATIONS IN URUGUAY

The “Palmares de Cuico” path was the first UPM Biofore station opened in Paysandú, Uruguay.

The site is a part of an agreement between UPM’s plantation company Forestal Oriental and the government of the Paysandú region to create and promote tourist areas. For visitors, the UPM Biofore stations offer the possibility to come and enjoy the countryside as well as to familiarise themselves with eucalyptus plantations and environmental protection. The sites have been selected based on their potential tourist values. Some places have a beautiful landscape, some are home to rare species and plants, and others may have a cultural value.

The aim is to promote these areas alongside the region’s existing tourist services.

In the interests of ensuring safe and optimum enjoy- ment of the sites and facilities, Forestal Oriental has released advertisements and produced brochures, signs and visitor guides. There are currently nine UPM Biofore stations under development in Río Negro, Paysandú, Tacuarembó and Florida.

Aerial view of UPM’s plantations in Tacuarembó, Uruguay.