Measurable responsibility


UPM's corporate responsibility principles are the foundation on which UPM has been developing its operations for many years already. The principles reflect what the company is, but equally they describe what UPM wants to be.


Each principle has been matched with certain measures and an action plan. This will ensure responsible operations throughout the company.


"UPM wants to reach its strategic and financial goals in a socially and ecologically sustainable way. The foundation for responsibility is profitable operations and value creation from products which are sustainable throughout their lifecycle," says Tapani Korpeinen, UPM's Chief Financial Officer with responsibility for Corporate Strategy.


The foundation for social responsibility is UPM's respect for human rights and provision of equal opportunities. "We aim for a safe and encouraging working environment, active employee participation and continuous learning," says Riitta Savonlahti, Executive Vice President, Human Resources.


The primary raw material used for UPM's products is natural and renewable wood. Products are recyclable. UPM manages forests sustainably while enhancing biodiversity and protecting water resources. The energy required to manufacture the products is mainly renewable and mitigates climate change.


"For as long as we can remember, the forest industry has known it has "the best possible story" in respect of sustainable products and operations," says Päivi Salpakivi-Salomaa, Vice President of Environmental Affairs.



KEY AREA OF RESPONSIBILITY

UPM PRINCIPLE

MEASURE

ENVIRONMENTAL
PRODUCTS
  • Products which are sustainable over their lifecycle
  • Renewable raw materials
  • Recyclable or biodegradable products
  • High share of certified products
  • Third-party environmental eco-labels
  • Lifecycle assessment
CLIMATE
  • Best-in-class* carbon footprint
  • Improve energy efficiency
  • Maximise use of carbon-neutral energy
  • Increase biobased energy
WATER
  • Sustainable use of water resources
  • Best-in-class* water footprint and effluent quality
  • Net water consumption
FOREST
  • Sustainable forest management
  • Maximise share of certified fibre and meet UPM biodiversity programme targets for managed forests
WASTE
  • Minimal waste
  • Minimise solid waste to landfill
  • Reuse waste
ECONOMIC
PROFIT
  • Value creation
  • Operating profit margin exceeding 10%
  • Return on equity at least 5 percentage points above the yield of a 10-year risk-free investment
  • Gearing ratio to be kept below 90%
GOVERNANCE
  • Accountability and compliance
  • Group Management System
  • Code of Conduct
SOCIAL
LEADERSHIP
  • Responsible leadership
  • High employee engagement
  • Behaviour in line with company values and Code of Conduct
  • Change management practices in place
PEOPLE DEVELOPMENT
  • High performing people
  • Personal performance reviews with employees and target setting
  • Development of key competencies
WORKING CONDITIONS
  • Safe and encouraging working environment
  • Ensuring human rights
  • Equal opportunities
  • Good employee/employer relations
  • Zero accidents goal and continuous actions to reduce absenteeism
  • End-to-end responsibility throughout the supply chain
COMMUNITY INVOLVEMENT
  • Local commitment
  • Employment opportunities
  • Co-operation and initiatives with local stakeholders
  • Responsible restructuring
 

 

*Best-in-class = leading the industry sector