Targets show direction

Our responsibility principles are accompanied by operational targets that create the framework of responsibility for all company operations.

Each target identifies the baseline and sets the direction for further improving the company's performance in the coming years.

The principles and respective targets recognise and highlight areas where the company has the most impact on our stakeholders. The targets were created in co-operation with UPM’s business areas to ensure that they are in line with operational strategies.

 KEY AREA OF  
 RESPONSIBILITY​

​TARGET

     ACHIEVEMENT 2011

 ECONOMIC​ ​ ​
 PROFIT

 Shareholder value  
 creation​

• Operating profit margin 
  exceeding 10%

• Return on equity at least 5 
  percentage points above the yield of a 10-year risk-free investment

• Gearing ratio to be kept 
  below 90%​

• Operating profit margin,  excl. special items, 6.8%

• Return on equity, excl. 
  special items, 6.7%

 

• Gearing ratio 48%​

 GOVERNANCE

 Accountability and  
 compliance​​

• Code of Conduct training
  and monitoring further 
  developed​

• By the end of 2011, 82% of employees had taken the Code of Conduct  training.

 SOCIAL​ ​ ​
 LEADERSHIP

 Responsible 
 leadership

• Continuous improvement in Employee Engagement  Index​

• 5 percentage point 
  improvement in Employee 
  Engagement Index.​

 PEOPLE  
 DEVELOPMENT

 High performing
 people​

• Continuous improvement 
  in Change Management 
  and Innovation Indices​

 

• 3 percentage point
  improvement in Change 
  Management Index

• 4 percentage point 
  improvement in Innovation Index​

WORKING
CONDITIONS

Safe and encouraging working environment​

• 10% annual improvement  
  in lost-time accident frequency  (2009–2011)

 

• Global absenteeism below 
   3.5% (2009–2011)​

 • A long term positive
  development in global lost-time accident frequency  continued.

 • The target was not met.​

COMMUNITY INVOLVEMENT

Local commitment​​

 • Continuous sharing of best practices of local stakeholder initiatives​

• Local stakeholder initiatives further developed. Global alignment is under development.​

ENVIRONMENTAL​ ​ ​
PRODUCTS

Taking care of the entire lifecycle

• Environmental management systems certified in 100% of  production units by 2020

• Environmental declarations
  for 100% of product groups 
  by 2020

• 25% growth in the share of 
  eco-labeled products by 
  2020**​

 • A few small production sites are not yet certified.

 • Environmental declarations developed for timber products.

• The share decreased in 2011 due to the acquisition of new paper mills.

CLIMATE

Creating climate solutions

• 15% reduction in fossil CO2
  by 2020​

 • No improvement in 2011 due to the acquisition of new paper mills. 

WATER

Using water responsibly

• 15% reduction in waste 
  water volume by 2020***

• 15% reduction in COD load 
   by 2020***​

• Reduction in waste water volume in line with the target.

• Reduction in COD load in 
  line with the target.​

FOREST

​Keeping forests full of life 

• 80% share of certified fibre by 2020​

• 78% share of certified fibre reached.​

WASTE

Reduce, reuse and recycle

• 25% reduction in waste to
  landfill by 2020​

 • Reduction in landfill waste in line with the target.​

 
* Best-in-class = leading the industry sector

** Includes paper, timber, plywood

*** Numerical targets relevant for pulp and paper production