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ENVIRONMENTAL performance in 2 UPM Rauma

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 22, people. UPM is present in 67 countries and have production units in 17 countries. UPM s annual sales exceed EUR 1 billion. UPM s shares are listed on the Helsinki stock exchange. UPM The Biofore Company www.upm.com UPM Rauma UPM s Rauma mill is located by the sea on the west coast of Finland, near Rauma s city centre. Metsä Fibre Oy s pulp mill, Forchem Oy s tall oil distillation plant and Rauman Voima Oy s biofuel power plant, which also uses the auxiliary company name Rauma BioEnergy, are also based at the mill site. UPM delivers raw and chemically treated water to the mill site, and is responsible for the joint treatment of industrial and municipal waste waters. The companies have forged a close collaboration in energy production. The Rauma mill has four paper machine lines, a fl uff pulp line, a twin-line debarking plant, two grinderies, three TMP plants, a surface water treatment plant, a biological effl uent treatment plant and a landfi ll site for industrial waste. The paper machines manufacture magazine paper two are supercalendered (SC) paper and the other two lightweight coated (LWC) paper. The paper produced in Rauma is used to print magazines, sales catalogues and various types of advertising products. Besides paper, the mill produces fl uff pulp for manufacturing hygiene products and tableware. UPM Corporate ENVIRONMENTAL statement 2 UPM pulp and paper mills UPM Rauma Environmental Performance 2 is a supplement to the Corporate Environmental Statement of UPM s pulp and paper mills (available at www.upm.com) and provides mill-specific environmental performance data and trends for the year 2. The annually updated mill supplements and the UPM Corporate Environmental Statement together form the joint EMAS Statement of UPM Corporation. The next Corporate Environmental Statement and also this supplement will be published in 214. Rauma BioEnergy s power plant is also located at the UPM mill site. This plant procures operation, maintenance and environmental services from UPM. Over 9% of the energy produced by Rauma BioEnergy is generated using renewable fuels. As the power plant is a separate company, its operations have only been included in this EMAS report with regard to vicarious liability. Production capacity 1,21, tonnes of paper 15, tonnes of fl uff pulp Personnel 69 Products Uncoated magazine paper: UPM Max UPM Cat Coated magazine paper: UPM Star UPM Ultra UPM Cote UPM Cote Silk UPM Ultra Silk Fluff pulp Certificates Quality Management System ISO 91 Environmental Management System ISO 141 Occupational Health and Safety Management System OHSAS 181 EMAS Eco Management and Auditing Scheme FSC Chain of Custody and PEFC Chain of Custody (CoC) The certifi cates can be found on the UPM website at www.upm.com > Responsibility > Principles and Performance > Certifi cate Finder > Unit > Paper & Pulp > UPM Rauma paper mill Environmental labels European Union Ecolabel FI//1 PEFC/2-31-8 2 UPM RAUMA, ENVIRONMENTAL PERFORMANCE IN 2

Environmental year 2 In 2, the Rauma paper mill continued its work to increase productivity and improve practices. The production volume increased slightly compared to the previous year. Energy-saving projects continued in pulp production and the operation of the paper machines. Energy effi ciency improved and this work will continue in 213. In paper production, the targets for water consumption and solids loss were not achieved, but the levels did improve compared to 2. The specifi c emissions of the mill were in compliance with BAT levels in all areas. The quantities of chemicals stored at the mill have decreased and, as a result, the Finnish Safety and Chemicals Agency (Tukes) now only requires the mill to provide a major accident prevention policy document instead of a safety report. The Rauma mill is committed to maintaining the current level of safety. A serious incident occurred during the periodic inspection of an SO 2 storage container when a small amount of SO 2 gas was released into the air due to a broken seal. Corrective measures have been agreed on in order to prevent similar situations in the future. There were no signifi cant environmental non-conformances at the mill site during the year. In February, the effl uent treatment plant experienced a short power failure; this only had a minor effect on the treatment result. In August, the temperature of the effl uent treatment plant temporarily exceeded the internal alarm limit, but this did not affect the treatment result. The heavy rain in October resulted in higher than normal fl ow rates at the treatment plant. The Rauma forest industry did not agree on a shutdown period so the treatment plant was in operation throughout the year. The reliability of the treatment plant was improved by renewing the control system. An investment will be made into a new cooling tower in order to improve temperature control at the plant. The preparatory work for this began in the summer of 2 and the tower will come into use in the spring of 213. Noise control measures continued in accordance with planned development activities. The noise distribution model will next be updated in 213. The fi rst construction area for the Sampaanalankenttä construction project was prepared in accordance with the environmental permit so that the fi lling work can begin in 213. Test stabilisation fi elds were created in December 2. The construction work will signifi cantly improve the mill s reuse of waste. The design phase of the wind power plants that are to be constructed in the mill area continued. Work is being done to promote the permit process of the project. Stakeholders did not raise any signifi cant concerns. At least for now, a decision on constructing a biodiesel plant in Rauma has not been made. Constant improvement while making operations more effective The mill s processes and operations are constantly being developed, personnel and partners trained and risks to the environment minimised. All fi gures indicate that the mill s operations comply with the Best Available Technology (BAT) criteria. A programme called Clean Run has been launched at UPM. A number of anticipatory environmental observations were made at the mill and the work in this area will continue in the future. Risk mapping documents and risk management plans are kept up to date. Our operations are evaluated by the environmental authorities and independent external environmental experts. The mill works in co-operation with various parties at a regional level. We participate in drawing up regional environmental programmes, analysing the state of waters and planning programmes of measures in compliance with the Water Framework Directive. In particular, we want to take part in projects aimed at improving the state of the Rauma sea area and the Baltic Sea. The EU Ecolabel has been awarded to all production at the paper mill. The label shows that a product has been manufactured in a way that saves energy and water, minimises the amount of waste, favours renewable natural resources and uses raw materials that are as environmentally friendly as possible. The EU Ecolabel is the only independent environmental label valid throughout Europe. Kari Pasanen, General Manager Eerik Ojala, Environmental Manager UPM RAUMA, ENVIRONMENTAL PERFORMANCE IN 2 3

Air Water UPM s share of the sulphur dioxide and nitrogen dioxide emissions from energy production increased compared to 2. Energy production also increased compared to 2. There was a slight increase in the total amount of fossil carbon dioxide although the fossil carbon dioxide emissions of the paper mill decreased slightly. 2% 15 25 2 15 1 5 FOSSIL CARBON DIOXIDE, CO 2 1, t/a 3 4 5 6 7 8 9 1 Rauma BioEnergy, UPM s share Paper mill An operational committee made up of representatives from UPM, Metsä Fibre and the city of Rauma is in charge of developing the co-treatment and monitoring its success. The monitoring programmes for the effl uent treatment plant and the water system are being managed by the authorities. The treatment results of the effl uent treatment plant were good and the process was not disturbed by the temperature. Annual total emissions complied with BAT levels. 1 5 SULPHUR DIOXIDE, SO 2 t/a STATE OF THE SEA AREA 25 2 15 NURMES 1 5 WIND ROSE, m/s 3 4 5 6 7 8 9 1 KYLMÄPIHLAJA Calm.5 2.9 3. 4.9 5. 6.9 >7. Rauma BioEnergy, UPM s share Rauma BioEnergy, other A B RAUMA NITROGEN OXIDES, NO 2 The wind rose shows the direction of the wind. Wind directions and speeds were measured at Sinisaari, Rauma in 2. The measurement point is approximately.5 kilometres from the mill, towards the city. Source: Finnish Meteorological Institute, Ilmanlaadun seuranta Rauman Sinisaaressa 2 (Monitoring air quality in Sinisaari, Rauma in 2) 1, 8 6 4 2 t/a 3 4 5 6 7 8 9 1 RIHTNIEMI Excellent Good Satisfactory HANHINEN Passable Poor No results 2 km Source: Lounais-Suomen vesi- ja ympäristötutkimus Oy Rauma BioEnergy, UPM s share Rauma BioEnergy, other A City of Rauma treatment plant B. Forest industry treatment plant, where the waste waters of the city of Rauma have been treated since 22 The figure shows the state of the sea area near the Rauma mill. Noise The waste water load from the forest industry and the joint treatment plant is now so low that the state of the sea water can no longer be significantly improved by making treatment more efficient. A noise control plan has been drawn up for the areas causing the most disturbances in order to reduce mill noise. The plan started being implemented in 2 and it will continue in 213. The noise distribution model will next be updated in 213. Preventive noise control is performed in accordance with the principle of continual improvement. 4 UPM RAUMA, ENVIRONMENTAL PERFORMANCE IN 2

Waste 5 4 3 2 1 BIOLOGICAL OXYGEN DEMAND, BOD 7 t/d 5 4 3 2 1 CHEMICAL OXYGEN DEMAND, COD Cr t/d Ash and kaolin were used to close both UPM-owned and municipal waste management areas. The Other waste category consists of metal and hazardous waste. The amounts of waste in the fi g- ure have been calculated as dry weights. The landfi ll monitoring programme is being managed by the authorities. 1 8 6 4 2 3 4 5 6 7 8 9 1 PHOSPHORUS, P kg/d 3 Permit, 3-month moving avg 4 5 6 7 8 City of Rauma UPM and Metsä Fibre 9 SUSPENDED SOLIDS INTO THE SEA 1 Permit, 3-month moving avg 1, 8 6 4 2 3 3 4 4 5 5 6 6 7 7 8 8 9 Permit, 3-month moving avg NITROGEN, N kg/d City of Rauma UPM and Metsä Fibre 9 PROCESS WATER CONSUMPTION 1 1 Permit, 3-month moving avg The majority of solid waste can be reused, with the exception of household waste. Ash is generated at the Rauma BioEnergy power plant, but UPM organises the disposal of the ash in accordance with a mutual agreement. The landfi ll area complies with the latest environmental requirements. Waste fractions are stored in dedicated areas, which enable them to be reused in the future. In 213, the aim is to continue using ash and other recycled materials from the forest industry in the surface structures of landfi lls and in the construction of storage areas. New ways of reusing materials in earthworks are also being researched. Ash will be used to replace other construction materials. t/d % (22 = 1%) 1 15 8 6 9 BY-PRODUCTS AND WASTE 4 6 t/a 2 3 75, 3 4 5 6 7 8 9 1 3 4 5 6 7 8 9 1 6, 45, 3, 15, EMISSIONS INTO WATERWAYS IN THE RIVER BASIN DISTRICT OF RIVER KOKEMÄENJOKI ARCHIPELAGO SEA BOTHNIAN SEA 3 4 5 6 7 8 9 1 PHOSPHORUS NITROGEN Natural leaching Fallout into waterways Other humaninduced load Forestry Agriculture Fur production Peat production Fish farming Industry and business operations Dispersed settlement Communities Natural leaching Fallout into waterways Other humaninduced load Forestry Agriculture Fur production Peat production Fish farming Industry and business operations Dispersed settlement Communities Ash for landfill use Ash for reuse Landfill waste Other Stockpiled ash The ecological classification of the bodies of surface water within the area of the programme of measures was good in the southern part of the Rauma coast and satisfactory further north. The share of the total nutrient load in surface waters produced by industry and businesses was small at less than 2%, of which only about 1% was useful to algae (caused eutrophication). Source: Länsi-Suomen ympäristökeskus (West Finland Regional Environment Centre), Kokemäenjoen Saaristomeren Selkämeren vesienhoitoalueen vesienhoitosuunnitelma vuoteen 215 (River basin management plan for the River Basin District of River Kokemäenjoki Archipelago Sea Bothnian Sea until 215) UPM RAUMA, ENVIRONMENTAL PERFORMANCE IN 2 5

Environmental parameters 2 The fi gures for production and the consumption of raw material and energy are given as whole numbers at corporate level in the Environmental Statement 2 for UPM s pulp and paper mills. Production capacity * Waste amounts given as dry weights. Paper RaumaCell 1,21, t 15, t Raw materials Pulp and chemicals Information available in the UPM Corporate Environmental Statement. Energy Air Emissions Biogenic and fossil fuels Purchased energy (UPM) Particulates Sulphur dioxide, SO 2 Nitrogen oxides, NO X Fossil, CO 2 Biogenic 75.6%, fossil 24.4% Information available in the UPM Corporate Environmental Statement. Raw water Process and cooling water 16,54,417 m 3 Emissions to water Clean cooling waters Process effl uent Biological oxygen demand, BOD 7 Chemical oxygen demand, COD Cr Solids Phosphorus, P Nitrogen, N 947,879 m 3 13,788,39 m 3 16 t 3,161 t 263 t 5 t 55 t Landfill waste* Temporarily stored waste intended for re-use Reused waste Kaolin Process waste (UPM) Process waste (Rauma BioEnergy) Domestic waste (UPM) Domestic waste (Rauma BioEnergy) Ash Kaolin Ash Kaolin Metal waste etc. (UPM) Metal waste etc. (Rauma BioEnergy) Recycled fi bre etc. Wood waste 18 t 154 t 535 t (529 t + NO X 5.791 t from propane) 63,955 t 74 t 36 t 4 t 32.7 t.7 t 27,418 t 315 t 3,872 t 178 t 518 t 97 t 45 t 377 t To incineration Energy waste 1,948 t Hazardous waste 22 t Size of mill area 198 ha 6 UPM RAUMA, ENVIRONMENTAL PERFORMANCE IN 2

Achievement of objectives for 2 Due to several shutdowns, the solids loss and water consumption calculated per product tonne exceeded the targets. Environmental non-conformances were avoided. The solids loss target of the paper machines, less than 1.1%, was not achieved. The water consumption target of the paper machines, less than 1.5 cubic metres per tonne, was not achieved. Energy effi ciency was improved. Work will continue to enable the mill to achieve its overall goal. Noise control performance had room for improvement, but the noise level remained below noise limits. The operation of the effl uent treatment plant was rationalised in compliance with the development activities. Over 5% of ash was reused. Environmental objectives for 213 The most important measures for improving safety and protecting the environment in 213 are Preventing environmental non-conformances and achieving the Clean Run objectives Decreasing water consumption and solids loss Water consumption less than.3 cubic metres per tonne Solids loss less than 1.4% of production Improving the reliability of the effl uent treatment plant by increasing cooling capacity Enhancing energy effi ciency Continuation of the Sampaanalankenttä construction project Reuse percentage of ash over 7% VALIDATION REG.NO. FI - 58 Accredited verifier DNV Certification Oy/ Ab (FI-V-2) has audited the Environmental Management System of UPM Rauma, the Environmental Performance in 2 report and the joint Environmental Statement 2 of UPM s paper and pulp mills. On the basis of this audit, it was stated on 22/3/213 that the UPM Rauma Environmental Management System, this Environmental Performance in 2 report and the information regarding UPM Rauma in the Environmental Statement 2 of UPM s pulp and paper mills comply with the requirements of the EU s EMAS Regulation (EC) No. 21/29. UPM RAUMA, ENVIRONMENTAL PERFORMANCE IN 2 7

UPM-Kymmene Corporation Rauma Tikkalantie 1 P.O. Box 95 26 Rauma, Finland Tel. +358 241 4 Fax +358 241 4318 For further information, please contact: info.rauma@upm.com Eerik Ojala Environmental Manager Tel. +358 241 43143 eerik.ojala@upm.com www.upm.com Timo Pitkänen Energy Manager Tel. +358 241 436 timo.pitkanen@upm.com Jari Mäki-Petäys Director, Fibre Processing and Maintenance Tel. +358 241 432 jari.maki-petays@upm.com Raija Lehtorinne Communications Manager Tel. +358 241 43179 raija.lehtorinne@upm.com UPM Fine, 14 g/m 2. Printed 6/213.