Committed to community involvement

We support the sustainable development of the societies where we operate. Our economic impact is significant both locally and nationally, and covers all of our stakeholders. UPM pays taxes where operations are performed and where value is created.

Prosperity from the forest value chain

UPM’s economic impact is significant in the surrounding communities, but also nationally – UPM is, for example, one of Finland’s biggest tax payers. The most important impacts are related to employment, logistics, raw materials supply, tax revenues, and income from exports and investments. The economic impacts cover all UPM key stakeholders – from investors and employees to customers, local communities and decision makers.

Direct economic value generated and distributed by UPM in 2015 (EUR million):

​​ ​Direct economic value created​​ ​Economic value distributed
​Sales10,138Operating costs-7,577
​Income from sale of assets69​Employee wages and benefits​-1,257
​Income from financial investments7Payments to providers of loans​-39
​Other income​-7Dividend distribution​-373
Corporate income taxes paid and donations-172
10,207-9,418
  • Economic value retained: 789 EUR million​ ​ ​ ​

Our wood sourcing creates thousands of job opportunities

UPM is both a major forest owner and a purchaser of wood. UPM’s wood sourcing operations are closely integrated with the UPM businesses that use wood as a basic raw material. UPM sources all wood assortments to ensure optimal utilisation of this valuable raw material. In 2015, UPM sourced 26.1 million cubic metres of wood from around the world. The majority of wood is purchased from private forest owners who numbered nearly 22,000 in 2015.

A network of local entrepreneurs takes care of harvesting, logistics and forestry work operations. There were nearly 6,000 harvester drivers and more than 5,000 truck drivers working for the entrepreneurs in 2015. UPM wood sourcing creates employment opportunities for thousands of people living in rural areas within the UPM wood sourcing spheres.

Wood deliveries to UPM mills in 2015:

​1,000 m32015​
​Finland ​17,697
​Germany​1,543
​Austria1,013
​Russia​272
​United Kingdom​271
​Estonia​135
​United States867
​Uruguay​4,293
​Total​26,090


We pay corporate income taxes where added value is created

UPM pays corporate income taxes where added value is created and profit generated. Taxes are paid in accordance with the local tax legislation and regulations of the country in question.

Due to UPM’s corporate and operational structure, UPM reports and pays its corporate income taxes mainly in the production countries and in the countries where innovations are being developed.

UPM’s significance to local tax revenue is especially emphasised at the locations of production sites.
In addition to Finland, UPM has major investments in production in Uruguay, Germany, China, the UK and the USA, for example. Corporate income taxes and property taxes paid by UPM are reported by country. In addition to these taxes paid by UPM, the local impact is augmented by the taxes paid to the local municipalities by UPM’s employees as well as those indirectly employed by UPM to perform various services at the production sites.

Based on the standards of behaviour required by UPM’s Code of Conduct, UPM’s tax policy describes the main principles and guidelines of taxation at UPM. UPM is committed to paying all the relevant statutory indirect, direct and other taxes and to file, report and disclose the information required to comply with the prevailing legal requirements and transparency objectives of UPM.

There are four major principles in our tax policy. They are:

  • Compliance with relevant statutory legislation and rules
  • Management of tax risks, both financial and non-financial
  • Transparency of tax issues and an overall requirement of commercial rationale concerning tax-related transactions
  • Continuous enhancement of shareholder value by aiming for efficient, optimum and cost effective tax processes, business transactions and structures.

Supporting the vitality of local communities

Building and maintaining good relations with and supporting the vitality of local communities close to our operations are essential for us and our business success.

UPM’s engagement with communities is founded on decades of close cooperation. In many cases the community has grown around UPM's operations over the years. We aim to be a good neighbour to the surrounding communities.

In restructuring situations, UPM works in close co-operation with various authorities and other external parties and provides financial support for retraining and re-employment, launching of new businesses and relocation.

Case Uruguay: Supporting social development through The UPM Foundation

The UPM Foundation has been active in Uruguay since 2006, promoting development in rural areas of Uruguay through education, training and entrepreneurship, to foster a culture of safe and healthy living. In 2015, the Foundation reached more than 100 communities with 22 projects.

From upmbiofore.com
Feb 26 2016

Bringing teenagers back to school

One of the UPM Foundation’s latest successes has been bringing 15-18 years old teenagers living in rural areas back into the educational system in Uruguay.