NEW on www.upm-kymmene.com/traceit: Audit trip in Russian Karelia

UPM carried out a supplier audit and logging site check in Russian Karelia in October 2006. One of the reasons for this audit was the report published in September by Greenpeace stating that wood from these areas would not be legal. We wanted to verify the operations of our local supplier. The conclusion is that the supplier has operated in compliance with Russian law and in accordance with the instructions of the local authorities. Thus wood supplied to UPM from these sites is legally sourced.

For more details please see the video clip captured on video during the audit in addition to UPM's supplier audit report and Det Norske Veritas (DNV) verification report now available on www.upm-kymmene.com/traceit..

The audit was carried out by our own auditors accompanied by the supplier, Russian authorities and a representative from DNV, an independent third party auditor. The audit was made according to the principles of UPM's origin of wood tracking system.

Knowing the origin of wood is a requirement of UPM's Forestry and Wood Sourcing Guidelines. It is important for UPM to verify that the wood raw material supplied to the company's mills is sustainably sourced, legally logged and not from protected forest areas. The guidelines also commit the company to verify that its suppliers are operating responsibly and are complying with the company's policies and guidelines.

UPM regularly carries out supplier audits in Russia based on the statement of origin to monitor performance of and compliance with UPM's policies and guidelines. UPM focuses its audits on new suppliers, terminal operators and those suppliers with logging operations near protection areas. However, all of UPM's suppliers are audited within a three year period.

The supplier audit results provide fact based on information which is used to give feedback and strengthen cooperation with our suppliers. These are important steps towards the continuous improvement of UPM's operations.