UPM is in a unique position to advance circular economy and to take the world towards a future beyond fossils. Responsibility is integrated into UPM's Biofore strategy as a solid foundation for long-term value creation. Responsibility also plays an important role in UPM's financing and gives the investors a great opportunity to promote activities, such as climate change mitigation and adaptation and the UN Sustainable Development Goals together with us.  

UPM is one of the first companies to link the pricing mechanism of a syndicated revolving credit facility to both biodiversity and climate targets.

UPM has established a framework for green financing which describes the activities and investments that supports UPM in its way towards Beyond Fossils.  The framework encompasses all debt instruments with funds dedicated for green activities and investments.

‘Use-of-proceeds’-based financing such as loans and bonds form an additional part of UPM’s sustainable financing.

Green Finance Framework is based on the 2018 version of the Green Bond Principles published by the International Capital Markets Association (ICMA) and the 2020 version of the Green Loan Principles, published by the ICMA, the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA) respectively.

Eligible categories

The net proceeds of the green debt raised by UPM will be used to finance or re-finance Eligible Assets and Projects from following categories:

1. Sustainable forest management
2. Climate positive products and solutions
3. Pollution prevention and control, including waste management
4. Water and wastewater management
5. Energy efficiency initiatives
6. Renewable energy
   
   

UPM will annually publish a report on the allocation and impact of Green Bonds issued under this framework.