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Committed to societal value creation

Our operations and products have economic, social and environmental impacts in both positive and negative ways. Recognizing and understanding these impacts is key in developing our operations and ensuring sustainable value creation.

We promote responsible practices throughout the value chain. This includes supporting the well-being and development of the communities where we operate.

We continuously assess and communicate the direct and indirect impacts of our operations. This helps us focus our efforts where they matter the most. We strive to minimize negative impacts while maximizing sustainable value creation for society.

Detailed information about our societal and environmental impacts is available in our Annual Report. Our pulp and paper mills’ EMAS statements (EU Eco-Management and Audit Scheme) provide verified information on our local contribution to employment, tax revenue, and community engagement.

Economic benefits for all our key stakeholders

UPM’s operations contribute to local, regional and national economies by generating economic benefits for various stakeholder groups. The direct monetary flows below indicate the extent of added value globally in 2024 (€ million). 

Economic value retained: 595 EUR million

Direct and indirect employment impact

At the end of 2024, we employed around 15,800 employees in 43 countries. In addition, we work with about 23,000 material and service suppliers globally. Our sourcing network includes suppliers from private forest owners to international corporations.

For example, forestry operations, such as harvesting and logistics, are managed by a network of local entrepreneurs. Our wood sourcing and forestry operations create employment opportunities for thousands of people living in rural areas.

Contributing to society through taxes

Our businesses play a significant role in contributing to the societal development of surrounding communities through the tax revenue we generate. We pay corporate income taxes where added value is created and profit is generated. Taxes are paid in accordance with local legislation and regulations.

In addition to income taxes, our various production inputs and outputs are also subject to taxation, which we either pay (e.g. energy tax or property tax such as taxes on real estate) or collect (e.g. VAT, payroll tax and social security contributions). Read more in our Annual Report 2024 and the company's tax strategy.

Impact valuation

Impact valuation is an emerging field that aims to determine the monetary value of the negative and positive impacts that companies’ activities have on society and the environment. We have investigated how monetization our quantified impacts could improve understanding of their scale and enable comparison with financial information.

A few years ago, we conducted a pilot study to determine the monetary value of our key environmental and social impacts. The study included qualitative and quantitative indicators, and the quantified impacts were monetized when relevant and possible. Five evaluation cases were included in the study: climate change, treated wastewater, waste, citizen wellbeing and employee wellbeing.

Pilot study on impact valuation for UPM

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