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Upm’S Stakeholder Magazine 3/2016

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Upm’S Stakeholder Magazine 3/2016 UPM’S STAKEHOLDER MAGAZINE 3/2016 RESPONSIBILITY BRINGS STABILITY Investing in a sustainable future The strategic wisdom of ethical investment Focusing on human rights in business Responsibility Responsible Fibre™ verified by UPM guarantees that the product meets the industry’s most demanding environmental and social is a good responsibility criteria verified by a third party. BIOFORE IS UPM’S GLOBAL STAKEHOLDER MAGAZINE investment The sign of As the leader in integrating the bio and forest industries, UPM takes responsibility for building a sustainable and healthy future for future generations. At the same ORDER YOUR PERSONAL HARD COPY AT time we recognize our responsibility to our employees, [email protected] responsibility. shareholders, customers, partners and other stakeholders. We must be able to prove every day that being profitable and increasing social value go hand in hand. Our responsibility criteria cover the whole lifecycle of a product This issue of Biofore discusses responsibility as an SUBSCRIBE TO OUR PRESS from forestry and sourcing to sustainable production. They also investment. Investors – as well as all other stakeholders RELEASES AT www.upm.com/media cover the social responsibility aspects that are important for us. – value responsibly operating companies that fuel positive environmental, economic and social change Explore and experience the world of Responsible Fibre™ UPM through business. These companies have the ability to at responsiblefibre.upm.com. You will see how every little create both shareowner value and social value in ways TWITTER choice can make a difference. – The Biofore Company which are sustainable. In our main story (pages 10–13) @UPM News, UPM’s Chairman of the Board Björn Wahlroos states www.twitter.com/ UPM leads the integration of b io that a responsibly operating company manages risks UPM News UPM – The Biofore Company. and forest industries into a new, generally better than others and will generate more stable www.upm.com shareholder returns in the long term. He also emphasizes sustainable and innovation-driven future. the responsibility of the company to other stakeholders Our company consists of six business LINKEDIN and society as a whole. www.linkedIn.com/ areas: UPM Biorefining, UPM Energy, Responsibility is the very core of UPM’s Biofore company/ UPM Raflatac, UPM Specialty Papers, Climate strategy. For us, responsible business means focusing UPM-Kymmene UPM Paper ENA (Europe & North America) not only on our own operations but on the whole value and UPM Plywood. Our products are chain, and finding sustainable business solutions in made of responsibly sourced, renewable active dialogue with our customers, suppliers and YOUTUBE raw materials. They offer alternatives partners. www.youtube.com/ to replace non-renewable fossil-based Responsibility is about values Biodiversity upmdotcom materials. and commitment, but first and foremost, it is about actions. We develop new innovative and As always, actions speak louder than words. FACEBOOK sustainable businesses. Biofuels, bio- Water www.facebook.com/ composites and biochemicals are UPMGlobal based on our extensive know-how and Elisa Nilsson strong position in the forest biomass Vice President, sourcing and processing value chain. Brand and Communications, UPM We live by our values – trust and Social Responsibility be trusted, achieve together, responsibility criteria renew with courage. 3/2016 | 03 An increasing number of investors are looking to invest in responsible companies with open reporting principles. 04 | BIOFORE 3/2016 | 05 CONTENTS Investors buy forest 03 EDITORIAL – UPM guarantees steady timber demand and 06 CONTENTS 10 32 sustainable profits. 08 IN TIME “UPM has made balanced adjustments in a challenging 28 BIOCHEMICALS – NEW VALUE 40 OTEPÄÄ RAMPS UP environment,” says Björn 10 SHAREHOLDER VALUE ALWAYS FROM WOOD UPM PLYWOOD PRODUCTION Wahlroos, Chairman of COMES FIRST UPM Biochemicals leads the industry UPM’s modernized plywood mill in EDITOR-IN-CHIEF the Board. Elisa Nilsson All strategic steps taken by UPM in as a developer of wood-based Otepää, Estonia is set to double its recent years have served the interests chemicals. production capacity this autumn. EDITORIAL STAFF Heli Aalto, Sari Hörkkö, of shareholders, affirms UPM’s Kristiina Jaaranen, Terhi Jokinen, Chairman of the Board Björn Wahlroos. 30 CLEANER MARINE SHIPPING 43 WHAT’S BEHIND A WINE LABEL? Monica Krabbe, Anneli Kunnas, Johan Lindh, Sami Lundgren, WITH UPM BIOVERNO Italian wine bottler Cielo e Terra Marjut Meronen, Nina Norjama, 14 MEGATRENDS DRIVE PULP DEMAND With the marine industry striving to and UPM Raflatac partner to Sini Paloheimo, Aili Piironen, Annika Saari, Kaisa Vainikka, Pulp is a versatile raw material, and its 14 drive down emissions, recent tests understand and reduce environ- Päivi Vistala-Palonen. Global demand for demand is on a trajectory of constant promise a bright future in marine use mental impacts using lifecycle bleached pulp is predicted DESIGN for UPM BioVerno. assessment. growth, particularly in emerging to grow 2.5% annually Valve markets. for the next ten years. PRINTING 32 INVESTORS SEE FORESTS AS MORE 44 LUXURY IS NEVER OUT Erweko Oy THAN JUST TREES OF FASHION 19 WHY RESPONSIBLE INVESTMENT COVER IS A WIN-WIN STRATEGY A growing number of local and Inspiring looks, exquisite texture UPM Finesse Silk 200 g/m² international investors are taking an More and more investors are investing and a luxuriant finish: what works PAGES in responsible businesses – and with interest in Finnish forest estates – and for fashion also makes a great fashion UPM Finesse Silk 130 g/m² wisely so. supplement – starting with a paper very good reason. UPM-KYMMENE CORPORATION that oozes style. PO Box 380 35 RAPPING FOR LITERACY FI-00101 Helsinki 22 FOCUSING ON HUMAN RIGHTS Finland IN BUSINESS ‘Words Matter’ is a UPM-sponsored 46 WHY COMPLIANCE IS Tel. +358 (0)204 15 111 project that inspires vocational school SMART BUSINESS Business and human rights expert www.upm.com Anna Triponel shares insights on students to improve their reading Operating responsibly brings a www.upmbiofore.com how the UN Guiding Principles 22 skills through rap music. competitive edge in several ways. have changed business over the Shift’s Anna Triponel helps last five years. businesses embed human rights 38 SUPPORTING TEACHER EDUCATION 48 INVESTING IN issues in their corporate DNA. IN URUGUAY A SUSTAINABLE FUTURE 26 NUTRIENT RECYCLING FOR The UPM Foundation in Uruguay Investors learn how to integrate A HEALTHIER BALTIC SEA supports in-service training of environmental, social and governance UPM is employing novel approaches teachers in Río Negro Department (ESG) issues into their portfolio to minimize its impact on local to update and strengthen their decisions at the annual PRI in water resources. pedagogical skills. Person conference. 06 | BIOFORE 3/2016 | 07 IN TIME From Finnish woods to Chinese nurseries DJSI LEADER Demand for Nordic timber is at an all-time high in the Chinese FIVE TIMES IN furniture industry, especially in the children’s furniture segment. A ROW “China is the third largest market for UPM Timber, and the furniture industry is our main end-use segment,” says Mikko Hyvärinen, UPM has been listed as the forest Director of Sales and Supply Management. and paper industry leader in the Finnish timber has a good reputation in China, and Finland is Dow Jones Sustainability Europe seen as a dependable business partner. “Nordic wood is perfect Index (DJSI) for 2016–2017. for children’s furniture, since it is 100% non-toxic, safe and long- This is the fifth time that UPM has lasting,” says Hyvärinen. LABEL retained its leadership position. Chinese furniture-makers appreciate the high quality and beautiful In October, UPM was included EXPANSION light shade of Nordic timber, which adds a touch of Scandinavia on the CDP Climate A List, to Chinese nurseries. “UPM Timber is honoured to be involved in meaning the company received IN POLAND creating a safe and healthy environment for Chinese children to an “A” grade for its actions to play, sleep and live in,” Hyvärinen adds. UPM Raflatac is expanding its asset mitigate climate change. This platform in Wroclaw, Poland. UPM Raflatac is the eighth year that UPM has Old meets new will strengthen its position by building a received recognition from the new coating line at the Wroclaw label stock CDP’s climate change program for in Helsinki’s market square factory. By installing a new coating line and its climate actions and transparent related reel handling and slitting capacity climate reporting. additions, the company aims to meet Plywood is the starring material in new designer market stalls that will rejuvenate increasing demand for self-adhesive label Helsinki’s 200-year old Market Square. The design is based on a competition stock in Europe. The new line is planned to won by four Aalto University students. The prototype is a sturdy combination come on stream in the first half of 2018. of plywood and canvas celebrating the simple beauty of Nordic design. The plywood was supplied by UPM. “The winning stall is original, yet connected to local tradition. The materials are surprisingly light and beautiful,” described the jury. The new stalls are set to grace the Market Square in summer 2017 when Finland celebrates 100 years of independence. THE NAME Junction of innovators You can now read SAYS IT ALL UPM was looking to connect with innovators and find Biofore Magazine and As of 1 October 2016, the UPM Paper Asia exciting new digital solutions for its supply chain at the other interesting stories at business area was renamed UPM Specialty Junction hackathon in Helsinki in November. Junction is Europe’s Papers. The new name highlights the leading hackathon, bringing together top developers, designers and www.upmbiofore.com. business area’s strategic focus on entrepreneurs from across the world. UPM offered participants the challenge of specialty papers and its global creating digitalized solutions, services and data analytics utilizing supply chain data.
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