KEYS TO BUILDING A SUSTAINABLE FUTUREPäivi Rissanen, Director Sustainability UPM Paper ENAMarch 15, 2018
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UPM – The Biofore Company
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PURPOSEWe create value by seizing the limitless potential of bioeconomy.
VISIONWe lead the forest-based bioindustry into a sustainable, innovation-driven, and exciting future. The competence, integrity and drive of our people make us unique.
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Megatrends drive demand for sustainable and safe solutions
Resource scarcity
Population growth, urbanisation
Climate change
Digitalisation
Social responsibility
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Efficient use of renewable materials and energy
Renewable and recyclable products
Innovations and new businesses
Responsibility integrated in all operations
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Sustainability is the sum of three dimensions
• Human rights • Employee safety
and well-being
EnvironmentalResponsibility
FinancialResponsibility
SocialResponsibility
• Natural Capital• Environmental impacts
• Profit
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KEY #1RENEWABLE RAW MATERIAL
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Use of recycled fibre
Sustainable forest management
Resource efficiency
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WOOD FIBRE –the foundation for sustainability
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Sustainableand safe products for everyday use
LABEL MATERIALSfor food packaging, drinks bottles and for communicating information
SPECIALTY PAPERSfor food packaging
WOOD MATERIALSfor construction and design features
TIMBERfor ensuring high quality indoor air
ELECTRICITYfor lighting and heating
PULP AND BIOFUEL BASED MATERIALSfor packaging, transport, storage and hygiene products
PUBLICATION PAPERSfor reading and advertising
OFFICE PAPERSfor printing
WOOD MATERIALSfor furniture and the home
LABELSfor food products
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KEY #2CLIMATE CHANGE MITIGATION
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Sustainableforest
management
Energy-efficientprocesses
Renewable andrecyclable products
Renewable energy
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PAPER –a small carbon footprint, a big statement about responsibility
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Carbon footprint of a magazine
*Source: VTT LEADER project
Carbon footprint 140 g CO2 / magazine –equals ca. 1 km car driving
• Wood sourcing
• Other raw materials
Forest
Transportation of raw materials: 5 g CO2• Wood sourcing: 5 g CO2
• Pigments: 20 g CO2
Printing*:40 g CO2
Distribution to consumers:5 g CO2
Transportation to printing:2 g CO2
Use:0 g CO2
Recycled fibre
Paper production
Paper production:60 g CO2 = 90 g CO2 /
magazine
Printing
DistributionRecovered paper
Consumer
= 50 g CO2 /magazine
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KEY #3SOCIAL RESPONSIBILITY
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Respectinghuman rights
Local stakeholder engagementTaking care of
employees
0Accidents
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VALUE –through responsible operations
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Local societal value creation
UPM KAUKAS
UPM Kaukas comprises of a pulp and paper mill, biorefinery, sawmill, co-owned biofuel power plant, UPM R&D centre and wood sourcing and forestry operations
EMPLOYMENT EFFECT
160 summer jobs
2,600 indirectly employed*
*Source: City of Lappeenranta
1,700 external employees in pulp mill maintenance shutdown
1,775jobs
at the mill site when jobs provided by subcontractors are included
INDIRECT EFFECT(PURCHASE POWER)
• UPM Kaukas employees EUR 30 million
• Consumption through indirect employment EUR 38-45 million
• Stimulating effect of consumption on regional economy EUR 68-75 million
LOCAL TAXES*
• Estimated municipal tax on personnel wages
• Municipal share of corporation tax • Real estate tax• Estimated effect indirect employment
has on taxes
• Students performing upper-secondary vocational education and training completed an on-the-job learning placement
• Active collaboration with various schools and educational institutions
COLLABORATION WITHEDUCATIONAL INSTITUTIONS
EUR
31-34m 47
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Public Domain/Regulation Consumers Investors
14
Why sustainability matters…
• Incidents trigger steady increase of focus on all aspects of sustainability
• NGO campaigns are highly credible and become regulatory mainstream, e.g. forest use, human rights, diversity
• Consistent focus on sourcing strategies, certificates, reporting and regulatory compliance
• Sustainability needs broadened to also include social and economic aspects
• Consistent sourcing strategies and credible reporting becomes buying criterion
• Believe that resource efficiency pays off
• Market growth in renewable and sustainable technologies favors ESG focused companies
• ESG compliant companies have better risk management
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Thank you!