Responsibility is good business

UPM leads the integration of bio and forest industries into a sustainable future. For us, this is captured in one word – Biofore. It means versatile use of recyclable and renewable wood biomass, combined with innovation, efficiency and responsibility. We show every day that innovative and responsible business can be efficient and profitable, bringing quality of life and prosperity to our stakeholders.

 


1. Responsible value chain and production

  • Anticipating risks and ensuring compliance
  • Minimised impacts to environment
  • Responsible sourcing and forestry

Anticipating risks and ensuring compliance with UPM's Code of Conduct lay the foundation for UPM's responsible business operations. We minimise the environmental footprint of our products throughout their lifecycle. We are committed to responsible sourcing and sustainable forest management. With regard to our suppliers, we require them to apply the principles of UPM's Supplier Code and fulfil social, environmental and economic responsibility criteria. The safety of our suppliers is as important to us as the safety of our own employees.
Wood is the most valuable raw material source for us. Our priority is therefore to ensure that all wood fibre we use comes from sustainable sources.

2. Focus on people

  • High performing and engaged people
  • Responsible leadership
  • Ethical behaviour and respecting human rights
  • World class safety culture and wellbeing

Achieving our ambitious targets requires high performing people and teams to drive the business transformation. This also highlights the importance of being an attractive employer with inspiring and empowering leaders who offer diverse opportunities to perform and grow. To ensure the success of our businesses and the people who make it happen, UPM’s management is placing particular emphasis on performance orientation and employee engagement. The wellbeing of our people is enhanced through numerous local programmes and communal activities. The company’s Code of Conduct addresses human rights, labour rights, good business conduct, occupational safety and environmental practices. The Code of Conduct is complemented by more detailed policies, rules and guidelines, and training on these documents is provided regularly.

3. Value for customers through products

  • Innovative, renewable and recyclable products
  • Ecolabelled and safe products
  • New business opportunities through ecodesign

We offer a wide range of innovative, renewable and recyclable products for our customers. Many of these are a sustainable alternative to fossil-based solutions. With ecodesign, we systematically integrate environmental and social aspects into product design at an early stage, covering the entire lifecycle. We design safe products with a sustainable afterlife, seeking third party proof of this. We offer product declarations and environmental data for our products and they have been granted several ecolabels. UPM's comprehensive expertise in utilising wood biomass and recycling creates a strong foundation for developing new businesses.

4. Developing the company through stakeholder dialogue at all levels

 We see that our success is determined by good business ethics, as well as continuous dialogue and transparent interaction with our stakeholders. We actively engage with the communities in which we operate and where our economic impact is significant. We are, for example, one of the biggest taxpayers in Finland and we pay taxes where we operate and where the value is created. We share common interests with our stakeholders and aim to find innovative ways to develop the company together. To deliver true stakeholder value, UPM focuses on ensuring good co-operation, regular discussion and interaction at all levels. These tools and channels enhance knowledge and understanding of the company's activities and targets, as well as building long-term trust with the key stakeholder groups.

5. Responsibility is good business

  • Transparent performance/operations
  • Resource efficient companies perform at a level of 5% above average

More with Biofore is good business. Making more out of less is central to UPM's resource efficiency as well as a major source of cost efficiency and competitiveness. Using ecodesign we are developing new innovative products and sustainable businesses. All this is made real by high performing people and teams. With all these strategic actions and by ensuring transparency in all operations we show our shareholders and financiers that responsibility brings business benefits. As an example, according to McKinsey & Company, Bloomberg and Osmosis Investment Management, the most resource efficient large public companies have outperformed global benchmark indices on average by more than 5% per year over the past eight years.

Responsibility

UPM targets sustainable operations

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Investor Relations: +358 (0)204 15 0033 ir@upm.com