Responsibility is integrated into everything we do

We have built a robust framework for our responsible way of operating including, for example, the UPM Code of Conduct and management systems in order to turn our commitment into real actions.

Responsibility concerns every UPM employee

At UPM the Group Executive Team is in charge of managing corporate responsibility, determining the course of action and guiding the development work.

Group level corporate responsibility is managed by the Environment and responsibility team. The day-to-day work, in turn, is integrated into the company’s business operations.

As a tool to both manage and improve our performance in responsibility we apply certified management systems related to, for example, the environment and health and safety.

Setting the standard for responsibility and ethical business practices

The UPM Code of Conduct forms the framework for all company operations and sets out the standards of responsible behaviour for each individual employee at UPM globally.

The company’s Code of Conduct addresses issues such as compliance with laws, rules and regulations, human rights, labour rights, good business conduct, occupational safety and environmental practices.

The Code of Conduct is updated regularly and complemented by more detailed policies, rules and guidelines such as the UPM Human Resources Rules, UPM Equality Rules, UPM Occupational Health and Safety Rules and UPM Environmental Rules. Training concerning these guidelines is provided regularly.

UPM’s suppliers are also required to commit to the principles of the Code of Conduct.

UPM monitors and assesses its anti-corruption and anti-bribery activities, and an Ethics Advisory Committee has been established to perform these tasks. The committee oversees UPM’s compliance with company rules and reports to the Audit Committee regularly.

All UPM activities comply with local laws and regulations. The company respects international human rights agreements and agreements concerning labour rights, including the UN Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises.

The company is also a signatory of the UN Global Compact initiative, whose ten universal principles are derived from international agreements in the areas of human rights, labour standards, the environment and anti-corruption. In 2015, UPM was invited to join the UN Global Compact LEAD group intended for global sustainability leaders.

Furthermore, UPM promotes global sustainability projects through active dialogue with The Forests Dialogue (TFD) organisation and other organisations focusing on ethical conduct, such as WWF, BirdLife, and Vida Silvestre.

Code of Conduct

UPM’s Code of Conduct forms the framework for all company operations and sets out standards of behaviour for all UPM employees

Supplier requirements

UPM follows clearly defined selection and follow-up processes when evaluating suppliers.

Reporting

We believe in transparent reporting and provide comprehensive environmental and product safety-related information, verified by third parties.

Corporate governance – structures and policies

UPM’s control and governance is divided among the General Meeting of Shareholders, the Board of Directors and the President and CEO. In the operational management of the company, the President and CEO is assisted by the Group Executive Team.

In matters pertaining to the preparation of group and business area strategies and development initiatives, the President and CEO is assisted by the Strategy Team. Each of the company’s business areas and functions has its own management team.

In addition to laws and regulations applicable to Finnish listed companies, UPM complies with and bases its corporate governance on the recommendations of the Finnish Corporate Governance Code issued by the Securities Market Association.

Managing risks

Our business operations are subject to various risks which may have an adverse effect on the company. UPM regards risk management as a systematic and proactive means to analyse and manage the opportunities and threats related to its business operations. This includes also risks avoided by careful planning and evaluation of future projects and business environment. Feedback from stakeholders adds real value by contributing to risk management and mitigation, as well as the development of competitive advantage and continuous innovation. 

Certified management systems in place

UPM applies management systems to both manage and continuously improve its performance in the areas of environment and health and safety, as well as quality.

Almost all of UPM’s production sites, as well as its wood-sourcing and forestry operations, have a verified environmental management system in place. UPM’s aim is that all of its production units will have an environmental management system certification, including possible new units and acquisitions.