Supply chain
Practical Guide
Know with whom you trade
The UPM way
UPM wants to identify and address the risks relating to its business partners before entering a business relationship with them. We also monitor our business partners throughout the business relationship. UPM is committed to responsible sourcing practices and expects its business partners to comply with applicable laws and to share the principles outlined in the UPM Code of Conduct. In the Supplier and Third-Party Code, we define requirements for our suppliers and third-party intermediaries. We also require our suppliers to ensure that their relevant suppliers and sub-contractors for the UPM business relationship are committed to the same.
Examples and good practices for you
- Openly declare your own commitment to business integrity.
- Define requirements for your business partners and communicate them transparently. Ensure that these requirements cover the scope of this Supplier and Third-Party Code.
- If your supplier or subcontractor is providing products or services connected to your agreement with UPM, ensure through contract that they comply with the UPM Supplier and Third-Party Code or equivalent standards set in your own policies.
- Assess your business partners' risks related to labor and human rights, anti-bribery and anti-corruption, material or service quality, environmental emissions, and other compliance areas. Use tools such as background checks and audits, both before entering into a business relationship and during it.
- Screen your business partners against applicable sanctions lists.
- Conduct regular credit and financial checks within your supply chain. Watch for red flags, such as complex or unusual payment structures, multiple payments from various parties, or requests for payments to an unrelated account or third-party.
- Set performance targets for your key and high-risk suppliers, for example, in environmental and social impact areas, and monitor their progress.
- Actively support your business partners in continuously improving their responsible business practices.
- Monitor compliance with the requirements you have set for your business partners. Reserve the right to audit, and conduct risk-based audits that include follow-up and corrective actions.
- Take appropriate measures if you find any misconduct.
- Keep records of all business transactions to demonstrate the legality of your business. These may be required by authorities in, for example anti-money-laundering or anti-corruption investigations, and under applicable laws and regulations related to money laundering, terrorist financing, tax evasion, fraud and other financial crimes.
Engaging with stakeholders and society
The UPM way
Our goal is to be a trusted partner. UPM aims to understand stakeholder-specific expectations and engage in dialogue with various stakeholders to discuss UPM's targets, operating principles, and challenges we face. We respect the right to different opinions, as we want to foster meaningful dialogue with our stakeholders and society. We strive to contribute to the social and economic development of the communities affected by our operations and minimize any negative impacts of our operations on those communities.
Examples and good practices for you
- Assess the potential impact of your operations on employees, local communities, and other stakeholders. Take steps to mitigate or avoid any negative impact. Where feasible, implement social investment initiatives.
- Identify your stakeholders and their expectations and listen to their views. Make sure you have adequate systems for documenting possible complaints and use them consistently.
- Engage with different stakeholders and be open to dialogue.
- Provide transparent, fact-based information on your impacts and performance to local stakeholders and society.
- If your business operations change or cause increased environmental impacts or other changes that may significantly affect your stakeholders’ wellbeing, inform them proactively and explain what actions you have taken in response. Examples include leaks or spills, increased odor, or expansion of production.
- Establish a channel for collecting feedback from the community and stakeholders.
