UPM uses the G4 Guidelines published by the Global Reporting Initiative (GRI) to measure and report on corporate responsibility at Group level. UPM's corporate responsibility reporting in 2015 has been prepared to meet the GRI G4 'In accordance' - Core option. Standard disclosures for 2015 in English with a reference to external assurance in the GRI content index have been externally assured by an independent third party PricewaterhouseCoopers Oy. Furthermore, UPM is committed to the principles of inclusivity, materiality and responsiveness,as defined in the AA1000 AccountAbility Principles Standard (2008).
The index below shows where the G4 indicators are addressed in the Annual Report (AR), on UPM’s webpage or in the GRI content index .
DMAs for all reported categories can be found below.
Corporate responsibility is an integral part of all our operations and is seen as source of competitive advantage. UPM is strongly committed to continuous improvement in economic, social and environmental performance. UPM promotes responsible practices throughout the value chain and is active in finding sustainable solutions in co-operation with its customers, suppliers and partners.
The Group Executive Team, headed by the President and CEO, is in charge of managing corporate responsibility, determining the course of action and guiding development work.
UPM’s Biofore strategy and the Code of Conduct lay the foundations for responsible business operations and continuous improvement.
Environmental data of all UPM’s production sites is collected in a common database.
UPM’s energy-related data (fuels, air emissions, waste) includes its own power plants and a respective share of co-owned or associated power plants, which correspond to UPM’s energy supply. External power plants or boilers are considered under heat supply and, for Hürth, this is also the case for electricity as there is a direct supply from the neighbouring power plant. Data measurement techniques depend on local and national requirements and therefore can vary between production sites. If relevant, this is taken into account when summarising data for corporate reporting. UPM uses rolling base year approach for reporting on applicable environmental indicators.
Information about material usage is aggregated data from UPM’s sourcing unit.
Information about energy usage is aggregated data from UPM’s energy unit based on information provided by the production units and power plants. For energy saving reporting, the reduction of electricity and heat is included. Total energy is reported by energy type.
If not measured, the amount of water withdrawal is reported based on reasonable estimates.
UPM reports on emission of fossil CO2, NOX, SO2 and particulates as air emission related performance indicators. These indicators include emissions from UPM power plants and a respective share of co-owned or associated power plants that corresponds to UPM’s energy supply. External power plants or boilers are considered under heat supply, and, for Hürth, this is also the case for electricity as there is a direct supply from the neighbouring power plant. Direct fossil CO2 is calculated based on fuel usage. Calculation is done according to the European Emissions Trading System, other national requirements or based on official calculation factors. NOX, SO2 and particulates are usually measured online. Emissions of TRS by UPM’s pulp mills are converted to SO2 and included in the overall SO2 figure. Indirect CO2 emissions (scope 2 and scope 3) are calculated based on data availability, either with secondary emission factors or previous year’s primary emission factors. Detailed information about scope 3 calculation is published at UPM’s webpage. In EN15 and EN16 the emissions are reported as CO2 only. In EN17 the emissions are reported as CO2 equivalents (including CH4 and N2O) using IPCC’s GWP values.
UPM reports on effluent flow, COD, BOD and AOX as water-related performance indicators. These are calculated based on mill level data from sampling or continuous monitoring. If the wastewater is treated in municipal or external effluent treatment plants, the values included in the total sums are the loads before effluent treatment. In the calculation of average load per product unit, these mills are excluded. Conversion is done in the case of different measurement scopes, e.g. BOD7 and BOD5.
UPM reports the sum of non-hazardous waste and by-products divided to recycling as material, energy recovery, composting, landfill, incineration, and temporary storage, and the sum of hazardous waste divided to recycling as material, energy recovery, incineration and other disposal. Recycled or recovered non-hazardous waste is reported as by-product. Waste figures are reported in dry tonnes, except for hazardous waste. The disposal method is determined by both direct information from the sites or from information provided by waste contractors.
As a guiding principle to calculate and report environmental costs and investments, UPM has based its instructions on European Commission recommendation 2001/453/EC of 13 June 2001 (Official Journal L 156, 13/06/2001) on the recognition, measurement and disclosure of environmental issues in the annual accounts and annual reports of companies and Kirjanpitolautakunta: Yleisohje ympäristöasioiden kirjaamisesta, laskennasta ja esittämisestä tilinpäätöksessä 24.10.2006
Personnel figures base on the UPM global total headcount definition including employees classified as active and inactive and are calculated as heads ifnot otherwise stated. The terms personnel and employees are used as synomyms and refer to UPM’s own employees.
Workforce includes UPM’s own employees as well as supervised workers.
Personnel figures base on the UPM global total headcount definition including employees classified as active and inactive and are calculated as heads if not otherwise stated. The terms personnel and employees are used as synomyms and refer to UPM’s own employees.
All contract types are divided into two categories: permanent and fixed term. Permanent contracts include all contracts that are valid until further notice as well as employees not covered under employment contracts such as the US, where all employees are classified as “Employment at Will”.
The percentage of employees covered under collective bargaining agreements include all employees (both active and inactive) regardless of their contract type and working time status and includes all countries where UPM has operations.
Turnover is calculated using the number of all types of employment endings regardless of whether they are voluntary or involuntary (Number of leavers 1. Jan.–31. Dec/Total headcount 31. Dec). Separate calculation is provided showing turnover specifically for voluntary employment endings. The calculation method has been changed in 2014 and employees with contract expiries and who later have a contract extension have been excluded. Seasonal employees continue to be excluded from the calculation. In 2015 voluntary employment endings have been further clarified to include only reasons related to resignation.
The PPR Process is fully automated for salaried employees; however, shopfloor employees have not been fully integrated into the automated PPR Tool. PPR completion rates are based on all employees who are not withdrawn at the time of reporting.
Number of training hours per employee are calculated based on the UPM active headcount definition as of the end of the year. Trainings include internal and external training.
Lost-time accidents per million hours worked (Including UPM employees and temporary/agencyhired workers). (The number of accidents at workresulting in absence or disability one or more days)/(Actual hours worked)*1,000,000. UPM also reports on contractor accidents. Working hours in the calculation of contractor LTAF have not been collected based on a time attendance system. They are an estimate, and several calculation methods are applied in the group for calculating the estimate. The development of the calculation methods continues in 2016.
Including UPM employees and temporary/agency hired workers. Calculation is as follows: (‘LTA at work excluding contractors (number of LTAs which are one or more days)’+’Modified duty’+‘Medical treatment’)/’Actual hours worked (UPM)’*1,000,000.
Absence percentage due to illness and accidents at work. Illness includes Absence hours due illness, Absences due to accidents during travelling to/ from work, and Absence hours due to accidents during time off work. Accidents at work include Absences due to accidents at work and Absences due to occupational diseases and illnesses. These figures are added and then divided by Theoretical working time and then multiplied by 100.
Number of new cases which have been officially diagnosed and reported as occupational diseases during the reporting year.
The Code of Conduct completion rate is calculated against the employees classified as active as per our definition and those who are shown as active asof 31 December of the year in question. Training is provided for all employees who are included in our global headcount of active employees definition.
UPM suppliers are qualified against the UPM Supplier Code that defines suppliers’ minimum compliance requirements in terms of responsibility with regard to matters such as environmental impact, human rights, labour practices, health and safety, and product safety. Supplier spend covers all UPM business-to-business spend including wood and wood-based biomass sourcing and excluding energy.