Raw material purchasing and responsible sourcing play an important role in the overall sustainability of UPM's operations.
UPM consumes a lot of wood, pulp, fibre, chemicals, fillers, pigments and other raw materials in manufacturing its many products. Therefore, we are committed to responsible sourcing and expect our suppliers to have an equally high level of standards in their operations. We believe that high standards of sustainability can only be achieved by working closely with suppliers.
UPM has taken the initiative to strengthen its relationship with suppliers to make more information available about the environmental and social aspects of sourcing. As a result, UPM's understanding of the complete lifecycle of products is continuously evolving, and the environmental performance of UPM products continues to improve.
Strict supplier requirements
UPM sources raw materials from suppliers all over the world. In order to guarantee responsibility in our sourcing activities, we have developed a responsible sourcing framework that is based on the company’s Code of Conduct and responsibility principles. In practice, our suppliers must demonstrate adherence to basic requirements related to financial health, environmental impact, waste management, labour practices, health and safety and product safety.
The responsible sourcing framework includes a Supplier Code that applies to all providers of products and services. In addition to adhering to the law and conducting business in an ethical and sustainable manner, the Code defines the minimum compliance requirements from suppliers in the following areas:
Economic responsibility
• Financial health
• Risk management
• Liability insurance
Environmental responsibility
• Impact on soil, water, biodiversity and air
• Continuous improvement
• Waste management
Social responsibility
• International labour standards as defined by ILO and UN Global Compact.
• Child or forced labour
• Corruption or bribery
• Human rights
Health and Safety
• Safety and security of employees, visitors and others
• Site safety requirements
Product Safety
• Material restrictions set by applicable laws, regulations and UPM
Further requirements, such as for wood sourcing, pulp and chemicals, are covered in detailed, category-specific requirements.
UPM’s sourcing experts are given the task of implementing the framework during supplier qualification and in on-going supplier relationship management. They use a number of tools to accomplish the task, including supplier questionnaires, supplier audits and performance monitoring against agreed key performance indicators.