Our activities and products have an impact on society at large. Understanding our influence is a prerequisite for us to develop our operations and to respond to the needs of surrounding societies. At UPM we are constantly aiming to better understand and communicate our added value. In the UPM Annual Report 2017 (pages 74 - 75) we tell about UPM’s direct and indirect value creation. In 2017, we assessed in greater detail the monetary value of the key environmental and social impacts in selected areas. Impacts were calculated when possible and relevant, showing qualitative and quantitative indicators. This work was a continuation to a pilot study made in 2016. The study included five evaluation cases focusing on natural and social capital issues relevant to our stakeholders according to the materiality analysis.
There were at that time several potential methodologies for impact valuation. The Social Capital Protocol and the Natural Capital Protocol of the World Business Council for Sustainable Development (WBCSD) were seen as the most appropriate methodologies to describe and valuate the impacts of UPM.
According to a study made by the Research Institute of the Finnish Economy (Etla), UPM is the company producing the most added value in Finland when taking into account the added value produced by companies themselves and the indirect added value resulting from purchases.
In a rapidly changing world, companies consider even more carefully how to create added value also in the future.
Pulp is a versatile raw material, and its demand is on a trajectory of constant growth, particularly in emerging markets. UPM has strengthened its foothold in these growing markets by investing in all its pulp mills