Our activities and products have economic, social and environmental impacts. Understanding these impacts is a prerequisite to develop our operations and ensure sustainable value creation. We promote responsible practices throughout the value chain and support the sustainable development of the communities where we operate.
Committed to societal value creation
We create value through our operations and products
We promote responsible practices throughout the value chain and actively seek sustainable solutions in co-operation with our customers, suppliers and partners. Creating value for society through our operations and products is an essential element of our Biofore strategy.
Our activities and products have an impact on society as a whole, both positive and negative. We constantly aim to better understand and communicate our direct and indirect impacts across our operations and we prioritise our efforts accordingly. We strive to minimise negative impacts while maximising sustainable value creation for society. We disclose our societal and environmental impacts as part of our Annual Report.
In our extended pulp and paper mills’ EMAS statements (EU Eco-Management and Audit Scheme), we address our local environmental performance as well as societal impacts. As part of these reports, we provide verified concrete information on, for example, our contribution to employment, our tax revenue and purchasing power, and our co-operation with communities.
Economic benefits are generated for all our key stakeholders
UPM’s economic impact is significant in the surrounding communities. The company’s operations contribute to local, regional and national economies by generating economic benefits for different stakeholder groups. The related direct monetary flows below indicate the extent of added value globally in 2022 (EUR million).
|Direct economic value created|
|Income from sale of assets||76|
|Income from financial investments||11|
|Economic value distributed|
|Employee wages and benefits||-1,181|
|Payments to providers of loans||-95|
|Corporate income taxes paid and property taxes||-349|
- Economic value retained: 1,394 EUR million
Employment multiplies when taking into account our suppliers’ indirect impact
At the end of 2022, we had around 17,200 employees in 44 countries. In addition, thousands of people were employed by the companies providing materials and services to us.
We have about 20,000 material and service suppliers globally. Our sourcing network includes suppliers from private forest owners to international corporations. For example, forestry operations, like harvesting and logistics, are handled by a network of local entrepreneurs. UPM Wood Sourcing and Forestry creates employment opportunities for thousands of people living in rural areas within our wood sourcing spheres.