Climate Change Data

UPM-Kymmene Corporation

Climate Impact & Sustainability Data (2019, 2020, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:5.8 million tCO2e (Scope 1 & 2)
Renewable Energy Share:70% of total energy use

ESG Focus Areas

  • Climate change
  • Sustainable forestry
  • Circular economy
  • Responsible sourcing
  • Diversity & Inclusion

Environmental Achievements

  • Reduced fossil CO2 emissions (Scope 1 and 2) by 6% compared to 2018
  • 89% of total process waste was recovered or recycled
  • Achieved zero solid waste to landfill target for the third consecutive year (UPM Timber)
  • Three pulp mills in Finland improved environmental performance
  • Several improvements carried out in effluent treatment units of the UPM Fray Bentos mill in Uruguay

Social Achievements

  • 96% of active employees completed Code of Conduct training
  • Employee engagement index 71% favourable
  • Diversity and Inclusion index 70% favourable
  • Launched FibDex®, a wound dressing created from wood-based nanofibrillar cellulose
  • UPM Biofuels received the RSB certificate for the cultivation of Carinata in 2019

Governance Achievements

  • Renewed the UPM Code of Conduct and introduced a new training concept for all employees
  • UPM was named a Global Compact LEAD participant for its commitment to the UN Global Compact
  • Revised the UPM Supplier and Third-Party Code
  • Board made USD 2.7 billion investment decision to construct a pulp mill in Uruguay

Climate Goals & Targets

Long-term Goals:
  • Climate-positive product portfolio
  • Climate-positive land use
  • 100% certified fibre
Medium-term Goals:
  • Reduce fossil CO2 emissions (Scope 1 and 2) by 65% by 2030
  • Achieve 80% of UPM spend qualified against UPM Supplier and Third Party Code
Short-term Goals:
  • Reduce water consumption by 30% by 2030
  • Reduce effluent load (COD) by 40% by 2030

Environmental Challenges

  • Slower global economic growth impacting sales prices and deliveries
  • Decreased demand for graphic papers in Europe
  • Weakening demand for spruce and birch plywood
  • Increased competition in some product segments
  • Uncertainties regarding global trade and protectionism
Mitigation Strategies
  • Continuous improvement in competitiveness and resource efficiency
  • Adjusting paper production capacity to profitable customer demand
  • Focus on more attractive paper end-use segments
  • Disciplined planning and selection of investments
  • Cost management and mill programmes

Supply Chain Management

Supplier Audits: 185 supplier audits conducted

Responsible Procurement
  • UPM Supplier and Third-Party Code
  • Supplier audits based on systematic risk assessment
  • Joint development plans with suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather conditions
  • Storms
  • Droughts
  • Flooding
Transition Risks
  • Changes in regulation
  • Market shifts
  • Carbon pricing
  • Competition for renewable raw materials
Opportunities
  • Growth in demand for sustainable products and energy
  • Resource efficiency and renewability as competitive advantages

Reporting Standards

Frameworks Used: GRI Standards: Core option, AA1000 AccountAbility Principles

Certifications: ISO 14001, EMAS, ISO 9001, ISO 22000 (five factories), FSC® and PEFC™ chain of custody, ISCC and RSB (biofuels)

Third-party Assurance: PricewaterhouseCoopers Oy

UN Sustainable Development Goals

  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 12
  • SDG 13
  • SDG 15

Responsibility targets contribute positively to these SDGs

Sustainable Products & Innovation

  • UPM BioVerno renewable diesel and naphtha
  • UPM Raflatac Forest Film™
  • 100% wood-based, fully recyclable beverage carton
  • FibDex® wound dressing
  • UPM ProFi biocomposite
  • UPM Formi composite material

Awards & Recognition

  • UN Global Compact LEAD participant
  • Industry leader in Dow Jones Sustainability Indices
  • MSCI ESG rating of AAA
  • CDP Triple A List
  • RobecoSAM Sustainability Yearbook Gold Class distinction
  • Corporate Knights ranking of 23rd in the world’s 100 most sustainable corporations
  • FSC® Asia-Pacific Leadership Award

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:5.4 million tCO2e/year (Scope 1 and 2)
Renewable Energy Share:72% of total energy use
Water Consumption:190 million m3/year (process wastewater)

ESG Focus Areas

  • Climate change
  • Biodiversity
  • Sustainable forestry
  • Circular economy
  • Responsible sourcing
  • Employee well-being
  • Diversity and inclusion
  • Compliance

Environmental Achievements

  • Fossil CO2 emissions (Scope 1 and 2) reduced by 6% compared to 2019
  • 89% of UPM’s total process waste was recovered or recycled
  • Achieved fossil-free sawn timber production
  • 83% of all wood used by UPM is sourced from certified forests
  • Five-year annual average carbon sink of UPM’s own and leased forests was approx. 6.1 m tonnes of CO2 equivalents

Social Achievements

  • Employee engagement index 71% favourable
  • Responses to the Employee Engagement Survey’s Diversity and Inclusion index 71% favourable
  • No fatalities or serious accidents in UPM operations
  • Launched a new Report Misconduct channel for employees and stakeholders
  • Implemented several voluntary measures to support employees affected by restructuring

Governance Achievements

  • Established a Green Finance Framework and issued the first Green Bond
  • Linked syndicated revolving credit facility to biodiversity and climate targets
  • Updated the UPM Code of Conduct and Supplier and Third-Party Code
  • Renewed compliance training programs

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality
Medium-term Goals:
  • Reduce CO2 emissions (Scope 1 and 2) by 65% from 2015 levels by 2030
  • Reduce supply chain emissions by 30% from 2018 levels by 2030
  • Achieve 100% certified fibre by 2030
  • Reduce effluent load (COD) by 40% from 2008 levels by 2030
  • Reduce wastewater volume by 30% from 2008 levels by 2030
  • Achieve 100% nutrients used at effluent treatment from recycled sources by 2030
  • Achieve a diversity and inclusion index score of 95% by 2030
  • Reach employee engagement and enablement indices clearly above external high-performing norms by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • COVID-19 pandemic impacting demand and operations
  • Declining demand for graphic papers
  • Low pulp prices
  • Supply chain disruptions
  • Climate change impacts on operations and raw material availability
  • Geopolitical and economic uncertainty
Mitigation Strategies
  • Implemented cost-reduction measures (EUR 130 million annual savings)
  • Closed underperforming mills and streamlined operations
  • Developed alternative sourcing strategies
  • Implemented strict health and safety measures during the pandemic
  • Committed to science-based targets for emissions reduction
  • Invested in renewable energy and energy efficiency
  • Strengthened stakeholder engagement
  • Developed a Green Finance Framework and issued a Green Bond

Supply Chain Management

Supplier Audits: 117 supplier audits in 2020

Responsible Procurement
  • UPM Supplier and Third-Party Code
  • EcoVadis assessments
  • TfS initiative
  • FSC® and PEFC certification

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Floods
  • Droughts
  • Impacts on hydropower availability and wood harvesting
Transition Risks
  • Unpredictable regulation and subsidies
  • Changing costs of greenhouse gas emissions
  • Changes in EU energy policies
Opportunities
  • Growing need for renewable and recyclable solutions
  • Development of climate-positive products and solutions

Reporting Standards

Frameworks Used: GRI Standards: Core option, AA1000 AccountAbility Principles

Certifications: ISO 9001, ISO 22000, FSC®, PEFC, ISCC, RSB, ISCC PLUS

Third-party Assurance: PricewaterhouseCoopers Oy

UN Sustainable Development Goals

  • Goal 6: Clean water and sanitation
  • Goal 7: Affordable and clean energy
  • Goal 8: Decent work and economic growth
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action
  • Goal 15: Life on land

UPM’s responsibility targets contribute positively to achieving these SDGs.

Sustainable Products & Innovation

  • UPM BioVerno diesel and naphtha
  • UPM Raflatac Forest Film™ label material
  • UPM Raflatac PP PCR label film
  • UPM Formi EcoAce biocomposite
  • WISA-SpruceWR water repellent plywood
  • GrowDex® and GrowDase® hydrogels
  • GrowInk™ hydrogels

Awards & Recognition

  • UN Global Compact LEAD participant
  • Industry leader in Dow Jones Sustainability Indices
  • CDP Triple A score for climate change, deforestation, and water stewardship
  • Corporate Knights’ list of the world’s 100 most sustainable corporations
  • EcoVadis Platinum level
  • Bloomberg Gender-Equality Index
  • Water Efficiency Front Runner award (China)

Reporting Period: 2023

Environmental Metrics

Scope 1 Emissions:2.1 million tCO2e
Scope 2 Emissions:1.6 million tCO2e
Scope 3 Emissions:7.6 million tCO2e
Renewable Energy Share:76% of total fuel usage at production sites

ESG Focus Areas

  • Climate change
  • Biodiversity
  • Circular bioeconomy
  • Responsible sourcing
  • Human rights
  • Employee wellbeing
  • Community engagement

Environmental Achievements

  • Reduced fossil CO2 emissions from on-site combustion and purchased energy by 17% compared to 2022
  • 87% of process waste recycled or recovered
  • UPM Paso de los Toros pulp mill began operations, generating surplus renewable electricity
  • Increased CO2-free electricity production by almost 50% with OL3 nuclear power plant unit

Social Achievements

  • Launched Employee Resource Group (BeU) for LGBTIQ+ community
  • Implemented gender pay equity review process
  • Completed Code of Conduct training for 98% of active employees
  • UPM Paso de los Toros mill created approximately 10,000 new permanent jobs in Uruguay

Governance Achievements

  • Updated Green Finance Framework, receiving a “Dark Green” rating from S&P Global Ratings
  • Joined UN Global Compact Forward Faster Initiative
  • Improved reporting controls and data availability in preparation for CSRD

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2040
Medium-term Goals:
  • Reduce fossil CO2 emissions by 65% (Scopes 1 and 2) and 30% (Scope 3) by 2030
  • Achieve 40% female representation in professional and managerial roles by 2030
  • Achieve net-positive impact on biodiversity in own forests in Finland and Uruguay
Short-term Goals:
  • Turn EBIT positive for UPM Paso de los Toros mill during H1 2024

Environmental Challenges

  • Unprecedented destocking significantly affected market deliveries
  • Falling pulp and energy prices
  • Geopolitical uncertainty and exceptional economic cycles
  • Supply chain disruptions
  • Sodium hydroxide leak at Paso de los Toros pulp mill
  • Criticism of operations in Finland and Uruguay regarding harvesting levels, single-use products, and water scarcity
Mitigation Strategies
  • Margin management and decisive action to reduce variable and fixed costs
  • Adjusted capacity to low demand
  • Implemented corrective measures and notified authorities after sodium hydroxide leak
  • Responded to stakeholder concerns at local, national, and international levels
  • Developed alternative sourcing strategies
  • Continued dialogue with NGOs

Supply Chain Management

Supplier Audits: 95 audits in 2023

Responsible Procurement
  • UPM Supplier and Third-Party Code
  • Responsible Procurement Guidebook
  • EcoVadis assessments
  • –30 by 30 programme for CO2 emission reductions

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Droughts
  • Forest fires
Transition Risks
  • Policy changes
  • Market shifts
  • Changes in cost structures
Opportunities
  • Development of energy-efficient products
  • Growth in renewable fuels and biochemicals

Reporting Standards

Frameworks Used: GRI Standards, SASB, AA1000 AccountAbility Principles

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 22000, FSC™, PEFC, ISCC, ISCC PLUS, RSB

Third-party Assurance: PricewaterhouseCoopers Oy

UN Sustainable Development Goals

  • Goal 6: Clean water and sanitation
  • Goal 7: Affordable and clean energy
  • Goal 8: Decent work and economic growth
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action
  • Goal 15: Life on land

UPM's initiatives contribute to these goals through sustainable forestry, renewable energy production, responsible sourcing, and product innovation

Sustainable Products & Innovation

  • UPM BioVerno renewable diesel and naphtha
  • UPM Biochemicals
  • UPM Biocomposites
  • WISA BioBond adhesive technology
  • Recyclable paper packaging for fresh foods

Awards & Recognition

  • EcoVadis Platinum level
  • ICIS Best Process Innovation Award
  • ITMF Sustainability and Innovation Award
  • Label Industry Global Awards Sustainability Award