UPM earns 2007 Green Supply Chain Award in North America

UPM's expertise and diligence in logistics was recognized this year when the company's North American operations won the 2007 Green Supply Chain Award from the Supply Chain and Logistics Association of Canada. This is a new award introduced by SCL and sponsored by the federal Department of Transport Canada to recognize companies that set and exceed high standards for environmental performance and sustainability in the handling and shipment of their products to customers.

"UPM's North American operations exemplify the spirit of the award by operating in an ethical manner and continuously seeking ways to improve environmental performance," said David Long, President of SCL Canada.

UPM is working closely with its shipping agents to reduce fuel consumption and greenhouse gas emissions. The logistics division of UPM also contributes to these goals through expert coordination in the movement of paper products from the mills to customers.

"UPM is definitely a leader in the area of supply chain management toward the ultimate goal of sustainability," said Mr. Long. "Today's customers and consumers are making choices based on which company uses best practices in the manufacture and transportation of products. Corporate responsibility in terms of the environment is a factor more than ever before."

SCL Canada selected two winners of the 2007 Green Supply Chain Award. UPM won in the shipper category while the award for carriers went to J.D. Smith and Sons, a leader in transportation and third-party logistics, headquartered in Toronto.

Companies that practice more environmentally sustainable ways of moving raw materials and finished products also benefit from cost savings. By reducing fuel consumption in the supply chain, manufacturing companies can better cope with the high cost of energy. "The challenge for North American industry is to try to beat the wage gap with companies in Asia," said Mr. Long. "So the supply chain must be inexpensive and efficient. In the end, good supply chain management also is good for the environment."

Phil Riebel, Director of Environmental Affairs for UPM North America, accepted the Green Supply Chain Award at SCL Canada's recent 40th Anniversary Annual Conference. Riebel said that at a global level, the company is continuously educating and evaluating its shippers in the area of environmental performance and sustainability. This includes saving fuel and producing less carbon dioxide.

"Our shippers are seeing that increased environmental awareness will also reduce their costs. We have been told that some of the drivers have even taken it to a personal level and avoid idling their car engines beyond 10 seconds when they are picking up a coffee. It all counts toward reducing greenhouse gases like CO2 which are the main cause for global warming."

Riebel said UPM was pleased to be recognized for its efforts to positively impact the sustainability of the forest industry through good supply chain management. "UPM has a strong record of environmental leadership and firm commitment to promoting green logistics in our operations across the globe," he told the SCL Association gathering.