UPM annual report 2014

Yesterday’s waste is today’s raw material

The majority of UPM’s production sites, as well as its wood sourcing operations, are covered by envi- ronmental, quality and occupational health and safety systems which are certified in accordance with the ISO 9001, ISO 14001 and OHSAS 18001 standards. UPM has certified all its European pulp and paper mills, the UPM Fray Bentos pulp mill in Uruguay, and the UPM Changshu paper mill in China in accordance with the EU Eco-Manage- ment and Audit Scheme (EMAS). EMAS requires participants to have an Environmental Manage- ment System and to publish a third-party verified Environmental Statement, which increases the credibility and reliability of environmental data. UPM has participated in EMAS for 20 years. UPM products have been granted several ecola- bels, such as the EU Ecolabel, the German Blue Angel label and the PEFC and FSC forest certifica- tion labels. UPM is the largest producer of EU Ecolabelled newsprint, graphic and office papers. Ecolabels demonstrate that UPM’s products meet the envi- ronmental performance criteria expected by third parties. Read more about the EU Ecolabel for converted paper products on the right. Ecodesign: part of product development UPM businesses have adopted an ecodesign approach in their product development, which means the systematic integration of environmental aspects into product design at an early stage, cover- ing the whole lifecycle. Some examples of UPM’s ecodesign: UPM’s products are manufactured from renewable, biodegradable and recyclable raw materials. Taking care of the entire lifecycle

UPM is the world’s largest user of recovered paper for the production of graphic papers.

RESPONSIBILITY 45–59

UPM is committed to maximising the reuse of materials and minimising the generation of waste.

Nearly all organic production residues, including bark and wood residues, as well as fibre-contain- ing solids from deinking and effluent treatment, are used in energy generation at mill sites. Today, approximately 90% of UPM’s production waste is reused or recycled. Ash resulting from bioenergy production forms the most significant proportion of UPM’s solid waste. Ash is used on a large scale in applica- tions ranging from landscaping to road building. UPM has developed innovative ways to reduce its own waste or residues and reuse waste in new products. See the picture on the right. UPM is also the world’s largest user of recov- ered paper for the production of graphic paper, consuming 3.4 million tonnes of recovered paper in 2014. At UPM, 35% of all fibre used in UPM’s paper production is recycled fibre. By 2020, UPM aims to reduce the amount of its solid waste sent to landfill by 40% compared with the 2008 level. The reduction target was increased in 2012 because of the good progress made.

FI/28/002 Please collect used paper for recycling.

HAMELIN GROUP ADOPTS EU ECOLABEL FOR CONVERTED PAPER PRODUCTS

UNTIL THE END OF ITS LIFECYCLE

UPM ProFi composite products are made from the surplus paper and plastic left over from the production of self-adhesive label materials.

The European Union has extended the scope of the EU Ecolabel to cover converted paper products. It is the very first official EU Ecolabel criteria created by an external consortium. Hamelin Group, together with UPM, played a key role in developing the new criteria. Hamelin Group was the first UPM customer to adopt the EU Ecolabel for a wide range of its stationery products, such as notebooks and envelopes. According to Virginie Ori, Director of Sustainable Development for Hamelin Group, the new criteria are an excellent opportunity to highlight the best practices of the company. “Products with the EU Ecolabel have a reduced environmental impact throughout their lifecycle, from the sourcing of raw materials to the production, use and recyclability of the product at the end of its life.” “So we decided to certify all our products that fell within the scope of the criteria and even included the principles in our product ecodesign processes from a very early stage. Our customers expressed their interest in the demanding criteria, as they responded to their requirements,” she says.

UPM’s new product ELURIT is another excellent example of circular economy: how to prolong the lifecycle of raw materials by creating innovative products from waste. The product is made of fly ash that comes from the thermal recovery of the biogenic waste materials. ELURIT is the result of research and development work conducted at the UPM Schongau mill in Germany. It will bring about other economic and environmen- tal benefits since the use of fly ash significantly decreases landfill quantities and disposal costs.

UPM’s renewable diesel, UPM Bio- Verno, is produced from crude tall oil, a residue of pulp production.

Read more: www.upm.com/ responsibility

Read more: www.upm.com/responsibility

UPM’s construction product Cinerit is made of fly ash from the thermal recovery of biogenic waste materials.

- New UPM Valor publication paper - Thermoformable UPM Grada wood material - UPM BioVerno renewable diesel - The UPM Biofore Concept Car

35% OF ALL FIBRE USED IN PAPER PRODUCTION IS RECYCLED.

UPM's ecolabeled sales *)

EU Ecolabeled sales 50% (incl. products with multiple labelling)

Sales without ecolabels 24 % Other eco- labeled sales

UPM’s aim is to deliver “More with Biofore” by continuously reducing the environmental impact of its products over the whole lifecycle. For this ambitious goal to be achieved, resource effi- ciency needs to play a key role in all company operations. Product safety is an important part of product stewardship and provides customers with products that are safe to use and environmentally sound.

26% (FSC, PEFC, SFI, German Blue Angel)

UPM’s total waste to landfills 1,000 t

The total amount of solid waste sent to landfill has decreased over the last ten years by over 30%. However, from 2012 to 2013 the total amount of waste sent to landfill increased significantly. This is due to the fact that former reuse possibilities for ash ceased at one of UPM’s paper mills. In 2014, new methods of reuse were established, with further options for reuse still being investigated.

250

UPM’s new product ELURIT, made of fly ash, can be used at the pulping and bleaching stages of the papermaking processes.

200

*) incl. Paper, Pulp, Plywood, Timber and ProFi

150

In 2014, 76% (75%) of UPM’s overall sales of paper, chemical pulp, plywood and timber products was ecolabelled. This figure includes FSC, PEFC and EU Ecolabels, and national ecolabels. By 2020, UPM aims to increase the share of ecolabelled products by 25% compared with the 2008 level.

100

Read more on product safety (p. 47), UPM Valor printing paper (p. 26), UPM BioVerno renewable diesel (p. 18) and UPM Biofore Concept Car (p. 32).

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UPM Annual Report 2014

UPM Annual Report 2014

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