Products for Future Consumers We Are the Industry Leader in the Global Dow Jones Sustainability Index
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UPM’S STAKEHOLDER MAGAZINE 2/2017 Products for future consumers We are the industry leader in the global Dow Jones Sustainability Index. Creating value responsibly Being recognised by the world’s leading sustain ability raters is important. But what is more important is knowing we are making a positive societal impact. For us responsibility is about values, commitments and – above all – actions. From responsible sourcing to the end of the product life cycle – and beyond. No compromises, no exceptions. Join us in creating value by seizing the limitless opportunities of the bioeconomy. UPM – the Biofore Company. www.upm.com Global Compact LEAD Biofore creates value BIOFORE IS UPM’S GLOBAL STAKEHOLDER MAGAZINE and well-being Did you know, that UPM submits some 350 patent applications annually across the world? And that last year, the company was granted more patents than any other ORDER YOUR PERSONAL HARD COPY AT company in Finland; over 50? [email protected] In this issue, among other fascinating topics we explore various breakthrough innovations that open up new business opportunities and have resulted from our Biofore strategy. SUBSCRIBE TO OUR PRESS Great examples are found among our new products RELEASES AT www.upm.com/media UPM as well as the technologies we have created. Wood-based biofuels and chemicals. Bio-composites. – The Biofore Company New lignin-based adhesive technology used in plywood manufacturing. The substitution of oil-based components TWITTER UPM leads the forest-based in adhesive resin with a lignin-based technology. Chemical @UPM News, bioindustry into a sustainable, industry innovation award winning cellulose-based www.twitter.com/ UPM News innovation-driven and exciting hydrogel that promotes cell growth. The list goes on. future across six business areas: As stated by the head of technology Jyrki Ovaska: “Developing new products is a journey of discovery. UPM Biorefining, UPM Energy, During the long journey, new routes keep opening up UPM Raflatac, UPM Specialty LINKEDIN for further development of the materials for yet new www.linkedin.com/ Papers, UPM Paper ENA and applications…” company/ UPM Plywood. UPM provides The end goal of these explorations is crystallised in UPM-Kymmene sustainable and safe solutions to the word of UPM’s redefined mission: “We create value the growing global consumption. by seizing the limitless potential of bioeconomy.” Products are made of renewable These are the opportunities we seize with enthusiasm, YOUTUBE and recyclable materials. every single day. www.youtube.com/ upmdotcom The group employs around 19,300 people worldwide and Elisa Nilsson its annual sales are approximately Vice President, EUR 10 billion. UPM shares are Brand and Communications, UPM FACEBOOK www.facebook.com/ listed on NASDAQ OMX Helsinki. UPMGlobal 2/2017 | 03 CONTENTS The seedlings raised in Joroinen are prime genetic 03 EDITORIAL stock forming the foundation of Finland’s thriving forests. 06 CONTENTS 20 08 IN TIME Environmentally sound pulp-based products help 10 ASIAN CONSUMERS to win the war on disease. IN POLE POSITION The focus of the global marketplace 16 has shifted to Asia’s growing cities, and demand for digital services and renewable biomaterials is set to grow rapidly. 16 HELPING TO WIN THE WAR ON DISEASE Environmentally sound pulp-based materials are helping health-care facilities to control infections and ‘super bugs’, while also rationalizing costs. 19 LABELS IMPROVE HEALTHCARE SAFETY Healthcare is a clear area of growth for UPM Raflatac labelling solutions, For Frank Tang and Janet Zhang, with added momentum from new product safety and practical packaging regulations against falsified design are key when buying medicines. 44 children’s furniture. 20 THE CRADLE OF HEALTHY FORESTS The genome of a forest sleeps in seeds Buses operating within the Helsinki and seedlings. A tree nursery looks area, Finland, will use only renewable after them like their own children. fuels by the year 2020. This will Good seedlings form the foundation significantly improve air quality. of a healthy forest. 25 TEAMWORK IN TOP-QUALITY SCIENCE UPM Biomedicals fosters collaboration in the field of biomedical innovation, 46 delivering breakthroughs from which people, companies and all of society benefit. 04 | BIOFORE What kind of products will the world need in 2030, and how will bioeconomy meet the 10 challenges of a growing demand? 28 HIGH-QUALITY LABELS 46 CLEANER ROAD TRAFFIC WITH ATTRACT BEER BUYERS RENEWABLE FUELS Beer enthusiasts not only appreciate With traffic on the rise, transport varied flavours in craft brews, but also emissions must be brought under an appealing package, starting with control in order to curb climate an eye-catching label. change. UPM BioVerno biofuel is EDITOR-IN-CHIEF a step in the right direction. Elisa Nilsson 31 ABSORBED IN BOOKS EDITORIAL STAFF 50 MARKET AGILITY IN ELECTRICITY Heli Aalto, Markku Herrala, In Germany, many bookshops not Sari Hörkkö, Kristiina Jaaranen, only sell books, but also introduce CONSUMPTION PROVIDES Klaus Kohler, Monica Krabbe, customers to interesting new titles. A COMPETITIVE EDGE Anneli Kunnas, Pauliina Leppänen, Marjut Meronen, Marika Nygård, UPM Energy offers a brand-new Saara Pakarinen, Sini Paloheimo, service by selling expertise to major Maarit Relander-Koivisto, 34 EVERYBODY LOVES WOOD industrial consumers of electricity. Mari Ruissalo, Annika Saari, Wood is a beloved material that smells Hisense Sun, Reetta Södervik, Ari Voutilainen, Jessie Yao. good and feels good to touch. It even has positive effects on our health. 52 TOUGHER THAN THE REST DESIGN Families with children need decking Valve that is not only durable and low- PRINTING 38 STRONG PATENT PORTFOLIO maintenance, but also cosy and easy Erweko Oy SECURES FUTURE VALUE CREATION on the eye. UPM ProFi is up for the COVER UPM innovations are protected by a challenge. UPM Finesse Silk 200 g/m² strong patent portfolio, which not only provides a competitive edge, but also PAGES UPM Finesse Silk 130 g/m² a solid basis for future value creation. 54 SUSTAINABLE VITICULTURE IN SOUTH AFRICA UPM-KYMMENE CORPORATION PO Box 380 From soil management to wine bottle 42 BONDING BREAKTHROUGH: FI-00101 Helsinki labels, sustainability is the watchword THE NEW LIFE OF LIGNIN Finland of top wines grown in Cape Floral Tel. +358 (0)204 15 111 WISA BioBond marks the beginning Kingdom. of a new era in plywood production. www.upm.com www.upmbiofore.com UPM Plywood's bonding innovation largely replaces oil-based phenol with 58 RESPONSIBLE FIBRE IS environmentally sustainable lignin. A DIFFERENTIATOR Sustainability and Nordic origins have become important competitive assets 44 CHINESE FAMILIES CHARMED for UPM’s copy paper brands in China. BY NORDIC TIMBER Functional children’s furniture made of Nordic wood is becoming a big hit in China. 2/2017 | 05 Purpose We create value by seizing the limitless potential of bioeconomy. 06 | BIOFORE We lead the forest-based Purpose bioindustry into a sustainable, innovation-driven, and exciting future. The competence, integrity and drive of our people make us unique. Vision 2/2017 | 07 IN TIME New German Investment agreement biorefinery in the pipeline for a possible new UPM is planning to construct an industrial-scale biorefinery at the Frankfurt-Höchst industrial park pulp mill in Uruguay in Germany. The biorefinery’s annual production capacity would be 150,000 tonnes of bio- In November, UPM and the Government of Uruguay signed an investment monoethylene glycol (bMEG), bio-monopropylene agreement, which outlines the local prerequisites for a potential pulp mill glycol (bMPG) and lignin produced from wood- investment. The site of the mill would be close to the city of Paso de los based raw material and sourced from sustainably Toros, in central Uruguay. The agreement details the roles, commitments managed deciduous forests in Central Europe. and timeline for both parties as well as the relevant items to be agreed Bio-monoethylene glycol can be used in textiles, prior to the final investment decision. bottles, packaging materials and de-icing fluids. “Robust infrastructure is elemental for industrial development. The Uses for bio-monopropylene glycol include Government of Uruguay is stating their serious intent with this agreement pharmaceutical products, cosmetics and and timeline. The agreement sets the foundation for UPM’s planning of detergents. Lignin is a component in resins that a state-of-the-art pulp mill investment,” says Jaakko Sarantola, UPM’s are used as binders in wood-based products Senior Vice President, Uruguay Development. and in plastics, foams and coating materials. The commercial and technical preliminary planning phase is estimated to take approximately 12 months. The project is based on more than five years of technological R&D work and piloting. UPM is looking to strengthen its position UPM INVESTS as Europe’s leading plywood producer by IN FINLAND expanding its Chudovo plywood mill in Russia. The EUR 50 million investment will expand AND RUSSIA both the mill’s production capacity and product You can read range. A new biothermal power plant will be built at the mill site, reducing the need for fossil Biofore Magazine and fuels. The project is scheduled for completion other interesting stories by the end of 2019. UPM will further enhance the efficiency of its at www.upmbiofore.com. Kaukas pulp mill in Lappeenranta, Finland, by investing EUR 30 million in the renewal of selected stages of the production process. The demand for pulp continues to grow, particularly in personal care products, packaging and other consumer products. The modernised sections of the mill will be operational in spring 2018. 08 | BIOFORE EXTERNAL RECOGNITION FOR RESPONSIBILITY UPM has been ranked as the top company in the forest and paper industry sector in the Dow Jones European and World Sustainability Indices (DJSI) for 2017-2018. This is the fifth time UPM has received this recognition. The index evaluates companies’ actions to curb climate change and their practices related to supply chain, employees, Global partnership with FSC governance and risk management.