To be able to deliver real value to our stakeholders, we focus on ensuring good co-operation, a regular dialogue and true interaction with them at all levels.
Added value through stakeholder engagement
Stakeholder engagement is based on trust and mutual understanding
Our most important stakeholders are customers, investors and financiers, employees, suppliers, authorities and key decision-makers, the media, non-governmental organisations and local communities. The approach to each varies based on business focus, region and individual stakeholder groups.
Well-functioning stakeholder engagement is essential for our success. We work regularly with our diverse range of stakeholders to better listen to their views and needs. Likewise, it is equally important to communicate and discuss our company’s targets, operating principles, values and the business environment with the stakeholders. This is how we create mutual understanding and trust about the business and the factors impacting it.
UPM is primarily viewed as an economic operator, so financial success, stability, future outlook and growth are fundamental themes for most stakeholders. In addition, our environmental performance and social responsibility play a significant role in our ability to operate and affect the long-term success of our businesses.
To address these different needs, and in recognition of the varying levels of emphases these themes hold for different stakeholders, we aim to provide a balanced view of the economic, environmental and social aspects of our business activities.
Stakeholder engagement is part of our strategy process
Regular stakeholder mapping in all businesses is an essential part of stakeholder relations, along with the systematic gathering of feedback and views from different sources. This way, UPM aims to ensure that sufficient consideration is given to stakeholder needs during the strategic development and decision-making processes.
UPM’s Biofore strategy forms the foundation of UPM´s stakeholder dialogue. UPM’s most important stakeholders are customers, investors and financiers, employees, suppliers, authorities and key decision makers, the media, non-governmental organisations and local communities. How we work with each of them varies based on business focus, region and individual stakeholder groups.
Stakeholder engagement is measured continuously
The level of stakeholder engagement is measured by several key performance indicators. Feedback from stakeholders adds real value by contributing to risk management and mitigation, as well as the development of competitive advantage and continuous innovation. It also helps third parties to understand key challenges and opportunities in the company’s operating environment.
High standards of responsible behaviour
The UPM Code of Conduct sets the standards of responsible behaviour towards these stakeholders for each and every UPM employee globally. The standards cover topics relating to legal compliance and disclosure, conflicts of interest, gifts and bribes, HR practices, human rights questions and environmental matters.
Should stakeholders have concerns or suspect misconduct, they are encouraged to contact UPM’s Stakeholder Relations function or use the UPM Report Misconduct channel accessible via our company website. A claim can be made confidentially and anonymously. The company has agreed internal procedures on how to address possible misconduct.
In addition, we welcome any questions and feedback.
UPM’s materiality analysis (UPM AR 2020, page 69) highlights the most important issues for UPM and its stakeholders. The analysis uses feedback from different stakeholder enquiries and the company’s risk mapping, based on which the importance and potential impact of different issues or activities on UPM’s operations are assessed.