The sustainable alternative

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1 PAPER The sustainable alternative Choose responsibly. Choose UPM Paper.

2 Sustainability is A journey 2

3 At UPM we understand sustainable development as a journey. We are continually improving our environmental, social and economic performance. Lowering the environmental footprint of our paper products over their lifecycle is an ongoing part of that journey. We continually ask ourselves, how can we make paper even more sustainable by: reducing our use of fossil fuels sourcing sustainable raw materials choosing responsible suppliers reducing our carbon and water footprint reducing waste and emissions. Is paper a sustainable product? Paper meets the key fundamental principles of sustainability. Its primary raw material, wood, is natural and renewable. It is recyclable and can be re-used several times to make new products. It is biodegradable. Forests, the source of UPM papers primary raw material, are sustainably managed. It can be produced using renewable energy. We believe we have a good story to tell. Our desire is to get a little closer to our destination each day. Paper meets the key fundamental principles of sustainability. Look around you how many products match these features like paper? 3

4 Renewable, recyclable and powered by bioenergy Paper, naturally. 4

5 Natural & renewable raw material Paper is one of the most sustainable products in use today. The forest industry has contributed significantly to an increase in forest area in Europe. The European forests have grown by over 30% since and are increasing by an area four times the size of London every year 2. Recover & recycle! Over 50% of paper made in Europe is made from recycled fibre. Wood fibres can be recycled 4 to 6 times before they become too weak for further use in papermaking but even then they can be used as a source of fuel for renewable bio energy. Virgin fibre will always be needed to supplement recycled fibre and maintain desired quality. Bioenergy producer The paper industry is the largest producer of renewable energy of any manufacturing sector in Europe. Half of the energy used in paper manufacturing is based on bio energy. UPM produces 30% of the renewable energy in Finland. Over 60% of UPM s energy portfolio is CO 2 neutral. EXCEPTIONALLY SUSTAINABLE There aren t many industries around that can aspire to becoming genuinely sustainable. The pulp and paper industry, however, is one of them. It is inherently sustainable. Jonathan Porritt, Chairman, UK Sustainability Development Commission 1) UNECE, FAO, The Development of Forest Resources, 1950 to ) CEPI, Forest fact Sheet, July

6 Forests are excellent carbon sinks Sustainably managed forests are locking up atmospheric carbon and helping to mitigate climate change. UPM forests in Finland alone bind almost an equal amount of carbon in growing trees each year than the company s Finnish and German pulp and paper mills produce as direct CO 2 emissions. Each year, over 100 billion tonnes of CO 2 is stored in wood products from sawn timber to school books. Recycling paper and wood products prolong the time that carbon is stored in products. Electronic & printed media go hand in hand The common misperception is that electronic media is more environmentally friendly than printed media. Different media channels complement and support each other. The ultimate question is not a choice between electronic media or paper, but what is the best combination with the least overall impact. Sustainable reading An entire year s edition of a weekly magazine (52 issues) uses less energy than two months normal use of a dishwasher. needs less water than one person uses during a weekend at home. produces the same amount of fossil CO 2 emissions as a normal petrol-fuelled car during a 25 km drive. (example from UPM s Rauma mill) 6

7 DID YOU KNOW? In Europe, the annual growth of forests in m 3 exceeds the annual harvest. The forests in Europe are also growing by an area of 6,450 km 2 annually the equivalent of 4,363 football pitches of new forest every day. source: CEPI Confederation of European Paper Industries Reading the news from a morning paper can result in 20% fewer carbon dioxide emissions than using a PC for just 30 minutes. source: Swedish Royal Institute for Technology Industries PAPER IS A SUSTAINABLE PART OF TODAY S MEDIA MIX It s a powerful communication tool based on a renewable resource and recyclable material. 7

8 Responsible Come rain or shine. 8

9 Vision UPM The Biofore Company. As the frontrunner of the new forest industry UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. We reshape markets through cost leadership, change readiness and leading innovation. Purpose We create value from renewable and recyclable materials by combining expertise and technologies within fiber based, energy-related and engineered materials businesses. 9

10 1. sustainable WOOD SOURCINg 2. recovering AND RECYCLINg 3. managing CARBON FOOTPRINT 4. reducing WATER CONSUMPTION 5. meeting ECO STANDARDS What does sustainability mean in UPM s paper? 1. raw material is sourced from sustainably managed forests. 2. recycled and recovered paper is an important raw material. 3. The carbon footprint is low. 4. Water consumption is continually reduced. 5. eco-labels prove our commitment. We consider paper s environmental impact throughout its lifecycle Pulp mill Power plant Customers Consumers Wood products, e.g. saw mill Paper mill Forest Recovered paper 10

11 1. sustainable WOOD SOURCINg 2. recovering AND RECYCLINg 3. managing CARBON FOOTPRINT 4. reducing WATER CONSUMPTION 5. meeting ECO STANDARDS Raw material is sourced from sustainably managed forests UPM s mills use 17 million m 3 of wood annually, 11% of which is from company owned forests. UPM owns and manages over 1.7 million hectares of forest, all of which are FSC or PEFC certified. UPM has developed a global biodiversity programme and has signed a UN business and biodiversity declaration. UPM s forests offer an excellent environment for research and field testing of forest management practices. Global multi-site chain of custody UPM has developed a global multisite chain of custody to ensure the sustainable and legal origin of fibre in UPM paper products. This unique system tracks FSC and PEFC fibre along the supply chain and covers: forestry and wood sourcing global pulp sourcing paper and pulp mills sales offices worldwide The availability of FSC and PEFC certified wood determines the product label used. UPM is Finland s largest private forest owner and wood processor. 100% of the wood fibre used at UPM s paper and pulp mills originates from sustainably managed forests. 11

12 1. sustainable WOOD SOURCINg 2. recovering AND RECYCLINg 3. managing CARBON FOOTPRINT 4. reducing WATER CONSUMPTION 5. meeting ECO STANDARDS The world s largest user of recovered paper in graphic papers In 2009, one third of the raw material used in paper manufacturing was recycled paper. The qualities of the product being produced and the location of the mill determine in which grades recycled fibre is used. UPM s annual consumption of recycled paper would fill in the Empire State Building nearly three times. 12

13 1. sustainable WOOD SOURCINg 2. recovering AND RECYCLINg 3. managing CARBON FOOTPRINT 4. reducing WATER CONSUMPTION 5. meeting ECO STANDARDS River barges transporting with fewer emissions A river barge carries 30 containers of recycled paper from Paris to UPM Chapelle Darblay mill every week. The barge returns to Paris loaded with paper reels destined for printing houses. The new transportation system reduces the amount of road transportation and CO 2 emissions. River transportation replaces 4,500 truck journeys annually and decreases transport CO 2 emissions by ca. 40%. 13

14 1. sustainable WOOD SOURCINg 2. recovering AND RECYCLINg 3. managing CARBON FOOTPRINT 4. reducing WATER CONSUMPTION 5. meeting ECO STANDARDS A frontrunner in renewable energy UPM has invested EUR 1 billion in renewable energy during the last 10 years. Globally, over 60% of fuels used at mill site power plants are renewable and CO 2 neutral. The share in Finland is approx. 80%. THE SHARE OF RENEWABLE AND CO 2 NEUTRAL ENERGY IN ENERGY GENERATION % Eu target by 2020 OECD all USA Japan EU-15 UPM total UPM Finland 14

15 1. sustainable wood sourcing 2. recovering and recycling 3. managing carbon footprint 4. reducing water consumption 5. meeting eco standards UPM has significantly decreased its fossil CO 2 emissions per tonne of paper UPM GLOBAL UPM finland CO 2 t/t CO 2 t/t % % UPM acquired - Changshu and Miramichi paper mills in Haindl paper mills in 2001 UPM produces 30% of Finland s renewable energy. 15

16 1. sustainable WOOD SOURCINg 2. recovering AND RECYCLINg 3. managing CARBON FOOTPRINT 4. reducing WATER CONSUMPTION 5. meeting ECO STANDARDS UPM Kymi integrated mill site holds best-in-class carbon footprint UPM Kymi pulp mill s new recovery boiler is top-class in energy efficiency, and the mill boasts the lowest air emissions in the industry. UPM Kymi s electricity selfsufficiency increased from 60% to 80%. The share of biofuels in the total energy production increased to over 90%. UPM Kymi has achieved the lowest air emissions in the industry thanks to its new recovery boiler. 16

17 1. sustainable WOOD SOURCINg 2. recovering AND RECYCLINg 3. managing CARBON FOOTPRINT 4. reducing WATER CONSUMPTION 5. meeting ECO STANDARDS UPM continuously reduces its water footprint Water consumption has nearly halved during the last 15 years. UPM s aim is to reduce the amount of process water usage per tonne of paper with 15% by UPM commits itself to sustainable water use and has joined the Water Footprint Network, United Nations CEO Water Mandate & the Baltic Sea Action Group. UPM has launched a development project to calculate the water footprint of its processes and products. 17

18 PEFC/ Promoting Sustainable Forest Management 1. sustainable WOOD SOURCINg 2. recovering AND RECYCLINg 3. managing CARBON FOOTPRINT 4. reducing WATER CONSUMPTION 5. meeting ECO STANDARDS Environmental labels support consumer choices The labels are a way to communicate the environmental quality of a product. The certificates are awarded by independent third parties. They include criteria which can be based on one or several environmental aspects. Label Recovered fibre use Wood raw material Energy use Chemicals Emissions Waste management x x x x EU Ecolabel 1 x x x x x x FI/11/001 Nordic Swan 2 x x x x x x German Blue Angel x x x Austrian Eco-label x x x x x x 1) no EU Ecolabel criteria available for newsprint paper, label paper or industrial packaging paper. 2) all papers that are awarded with the EU Ecolabel are automatically also approved for Nordic Swan 18

19 1. sustainable WOOD SOURCINg 2. recovering AND RECYCLINg 3. managing CARBON FOOTPRINT 4. reducing WATER CONSUMPTION 5. meeting ECO STANDARDS EU Ecolabel better performance over the product lifecycle EU Ecolabel meets strict criteria for use of natural resources chemicals energy consumption emissions to air and water waste management fibre source: at least 10% of fibre has to be from certified forests (PEFC, FSC). FI/11/001 A majority of UPM s paper products are the EU Ecolabel awarded. A majority of UPM products fulfil the criteria of leading environmental product labels. 19

20 Printed in May Cover: UPM Finesse premium silk 250 g/m 2. Text pages: UPM Finesse premium silk 170 g/m 2. Made of paper awarded the EU Ecolabel reg. nr FI/11/001.

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