UPM

Overall approach

6/10
- Overarching commitment on deforestation
  
  3/4
  
  Overall commitment
  
  Zero deforestation/Deforestation-free commitment or, for timber, pulp & paper companies only, commitment to well implemented harvest and no deforestation of HCV & HCS areas
  
  3/4
  
  "We do not accept deforestation and do not cause forest loss in our operations. We know the origin of the wood we use and are using third-party verified chain-of-custody systems to trace the origin of it. We always make sure, that our whole supply chain operates responsibly, and we do not accept deforestation in any parts of the chain. We always regenerate the forests after harvesting." [...] "UPM’s business relies on forests, and our most important raw material is renewable wood. [...] We have additionally adopted the target of sourcing all our wood from certified forests by 2030,”
  
  Open source document
  Open source document
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Signatory
  
  Yes
  
  1/1
  
  "UN Global Compact - Since 2003, UPM has been a signatory of the United Nations Global Compact initiative, a global network of businesses and other stakeholders from around the world committed to sustainability and responsible business practices. The core values of the Global Compact are presented as ten principles, which cover human rights, labour standards, the environment and anti-corruption."
  
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "Forests are a home to wildlife, they protect water systems. They are a source of wellbeing and recreation. Forests also provide renewable material for various products, from everyday necessities to ground-breaking innovations, and alternatives to fossil materials. And that’s why they are more important than ever." [...] We are committed to climate positive forestry and to the improvement of biodiversity to mitigate climate change and safeguard the vitality of our planet. This commitment is also the basis for a profitable business for us."
  
  Open source document
- Deforestation as a business risk
  
  1/1
  
  Business risk
  
  Yes
  
  1/1
  
  Type of risk if Other. Also add any relevant details: NA
  
  What revenue comes from industries relevant to each forest risk commodity?: NA
  
  What type of risk is recognised?: Financial; Operational; Competition
  
  What poportion of a company’s annual revenue depends on each forest risk commodity?: 100%
  
  What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: NA
  
  "The rising social inequality and strain on our natural ecosystem have intensified the expectations for companies to deliver economic, social and environmental benefits and complement the actions being taken by governments. Changes in regulation, taxation or subsidies could have an effect on our performance, competitiveness and the costs and availability of raw materials. Environmental regulations may continue to become more stringent. As policies, legislation or stakeholder expectations, or the application of them, change, additional costs in complying with more stringent requirements may be imposed on us. Management: Responsible operations in the value chain enhance the ability to operate and influence long-term business success, including environmental management systems, sustainable forestry and compliance."
  
  Open source document
- High-level management of deforestion
  
  0/1
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  0/1
- Reporting on emissions from land-use change
  
  0/1
- Disclosure of conservation activity
- Disclosure of reforestation activity
- Target to reduce emissions in scope 1/2
  
  Reduce emissions
  
  Yes
  
  0/0
  
  Is this target aligned with/verified by SBTi?: Yes
  
  Type of climate target: Net-zero emissions
  
  What is the target date for the company to achieve their climate target?: 2040
  
  "As a signatory of Climate Pledge UPM will Measure and report greenhouse gas emissions on a regular basis Implement decarbonisation strategies in line with the Paris Agreement through real business changes and innovations, including efficiency improvements, renewable energy, materials reductions, and other carbon emission elimination strategies Neutralise any remaining emissions to achieve net-zero annual carbon emissions by 2040 — a decade ahead of the Paris Agreement’s goal of 2050"
  
  Open source document
Commodity score

31/90
- Pulp & Paper
  
  29/90
  - Commitment Strength
    
    6/17
    - Commodity-specific deforestation commitment
      
      2/4
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        ""Our wood sourcing and forestry causes zero deforestation: We do not harvest wood from tropical rainforests or plantations that were formerly rainforest." [...] "UPM expects that its pulp suppliers practice sustainable forestry by developing and implementing policies and tools which balance the economic, environmental and social aspects of sustainable forestry. Credible forest certification scheme(s) make the best tools for this purpose. The supplier shall have a third party certified “origin of wood” or “chain-of-custody” monitoring system, which traces and verifies the origin of wood from the forest to the pulping process. UPM requires that all pulp deliveries of the supplier fulfil the latest valid FSC controlled wood and PEFC Due Diligence System requirements. Suppliers delivering pulp to UPM mills shall also be compliant with the respective national legislation fighting illegal timber, e.g. The European Union Timber Regulation" [...] "All the fibre we use will be 100% certified by 2030."
        
        Open source document
        Open source document
        Open source document
      - Target date
        2028-2030
        
        0.1/1
        
        Target date
        
        2028-2030
        
        0.1/1
        
        What actions or steps are identified for time-bound implementation?: Increased certified fiber
        
        ""Our wood sourcing and forestry causes zero deforestation: We do not harvest wood from tropical rainforests or plantations that were formerly rainforest." [...] "UPM expects that its pulp suppliers practice sustainable forestry by developing and implementing policies and tools which balance the economic, environmental and social aspects of sustainable forestry. Credible forest certification scheme(s) make the best tools for this purpose. The supplier shall have a third party certified “origin of wood” or “chain-of-custody” monitoring system, which traces and verifies the origin of wood from the forest to the pulping process. UPM requires that all pulp deliveries of the supplier fulfil the latest valid FSC controlled wood and PEFC Due Diligence System requirements. Suppliers delivering pulp to UPM mills shall also be compliant with the respective national legislation fighting illegal timber, e.g. The European Union Timber Regulation" [...] "All the fibre we use will be 100% certified by 2030."
        
        Open source document
        Open source document
        Open source document
      - Interim target date
        No
        
        0/0.5
    - Commitment to a traceable supply chain
      
      0/7.5
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    6/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
      
      Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces
      
      How far back in the supply chain does this commitment apply?: Supplier level
      
      "UPM Supplier and Third-Party Code is based on the ten principles of the United Nations Global Compact initiative, the United Nations Guiding Principles on Business and Human Rights, and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work. [..] The UPM Supplier/Third-Party needs to: • Respect universal human rights such as freedom of thought, opinion, expression, religion and freedom from any discrimination based on e.g. race, age, nationality, gender or sexual orientation or any form of harassment. • Respect local laws on working time and compensation, freedom of association, and right to collective bargaining. • Respect children’s rights and not use or tolerate the use of child labour. Follow minimum age set by local laws or International Labor Organization’s (ILO) definition of minimum age of 15 years, whichever is higher Ensure no form of forced labour is used or tolerated in any of its operations or activities. • Ensure the health, safety, and security of its employees and visitors as well as other people impacted by its operations. • Comply with UPM’s safety requirements when working at or visiting UPM sites and carry out necessary safety training. "
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      "Respect people and human rights [...] The UPM Supplier/Third-Party needs to: • Respect universal human rights such as freedom of thought, opinion, expression, religion and freedom from any discrimination based on e.g. race, age, nationality, gender or sexual orientation or any form of harassment."
      
      Open source document
    - Commitment to remediation
      Yes
      
      1/1
      
      Commitment to remediation
      
      Yes
      
      0.5/1
      
      What does the commitment cover?: Social harm
      
      "We constantly strive for better understanding of our impacts across our operations and business relationships and we prioritise our efforts accordingly. We monitor and work to remediate adverse impacts on human rights that we are aware of and that our activities have caused or contributed to. Remediation is specified case-by-case based on verified impacts."
      
      Open source document
    - Commitment to test Free, Prior and Informed Consent
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      Commitment to test Free, Prior and Informed Consent
      
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      How far back in the supply chain does this commitment apply?: Suppliers
      
      "UPM complies with applicable forest certification requirements on recognizing and upholding the rights, customs and culture of Indigenous Peoples, as defined in international conventions, declarations and treaties on the rights of indigenous peoples, such as the UN Declaration on the Rights of Indigenous Peoples (UNDRIP) and ILO Convention 169 on Indigenous and Tribal People. UPM ensures through its human rights due diligence and third-party certification that its own forestry operations and wood sourcing do not violate land tenure or land use rights of traditional or indigenous peoples groups. Risk assessments, community consultations, including Free, Prior, and Informed Consent (FPIC) when applicable, and access to grievance channels are embedded in our forestry operations and certification requirements. "
      
      Open source document
    - Commitment to respect customary rights to land, resources, and territory
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    17/56
    - Reporting proportion of compliant volumes
      
      0/0
    - Reporting is independently verified
      No
      
      0/2
    - Suppliers aligned with deforestation commitments across supply chain
      Yes, encouraged
      
      0/3
      
      Suppliers aligned with deforestation commitments across supply chain
      
      Yes, encouraged
      
      0/3
      
      "The UPM Supplier and Third-Party Code defines the minimum level of performance that UPM requires from all of its suppliers and third-parties, such as agents, advisers, joint venture partners, local partners or distributors acting on behalf of UPM. UPM also requires all its suppliers to promote the same requirements in their own supply chains. All suppliers working on our premises must be introduced to UPM's safety requirements. There are area-specific requirements for certain materials or services. These include the following: All wood sourced for UPM products shall originate from sustainably managed forests and from legal sources and shall be covered by a third-party verified chain of custody. UPM aims to use certified fibre to the highest possible degree and promotes a global increase in the use of certified wood. The company's wood sourcing actions do not cause deforestation, nor do they threaten the rights of indigenous people. UPM does not use genetically modified trees or wood originating from rainforests. UPM additionally expects it s wood suppliers to commit to promoting biodiversity. UPM requires all its suppliers to be fully compliant with local regulations on chemicals and product safety."
      
      Open source document
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What is the nature of that participation?: Attending & contributing to meetings; Providing support/ advice/ experience/ expertise
      
      What initiatives does the company participate in?: Finnish Osprey Foundation and Vida Silvestre in Uruguay
      
      "We were an active international stakeholder member of the PEFC (the Programme for the Endorsement of Forest Certification, PEFC/02-44-41) and participated in the development of the PEFC forest certification system, reflecting our aim to promote sustainable forest management globally. In Finland, we participated in updating the forest management standards in both the FSC™ (Forest Stewardship Council™, FSC N003385) and the PEFC schemes. We also collaborated with the Finnish Osprey Foundation and Vida Silvestre in Uruguay."
      
      Open source document
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      For what percentage of material produced or sourced by the company has forest risk been assessed?: NA
      
      How frequently are assessments conducted?: Not specified
      
      "The responsibility risk assessment is based on the country of origin, sourced material or service and complexity of supply chain. We use EcoVadis and other assessments, supplier audits and joint development plans to carry out more detailed evaluations of suppliers’ activities."
      
      Open source document
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "The UPM Supplier/Third-Party needs to: • Comply with all applicable laws and regulations. [...] Give UPM permission to verify compliance with this Supplier and Third-Party Code through dialogue and, if considered necessary by UPM, through on-site audits. Reasonable notice will be given for the audits, conducted by UPM’s internal or external resources." [...] "Compliance with applicable Laws: Operations shall be conducted in line with respective legislation of the country of operations regarding silviculture, use of wood, wood harvesting, harvesting rights, rights of the forest owner, rights of the other stakeholders and trading of wood. Special attention must be paid to authorities’ instructions concerning environment, biodiversity, protection of nature and species, waste management, employees and operational health and safety.[...] UPM has a right to make audits or issue 3rd party to make audits in order to verify that the supplier operates according to these requirements. UPM has the right to terminate the contract or suspend the deliveries that do not comply with the requirements set in this appendix."
      
      Open source document
      Open source document
    - Accessible grievance mechanism
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      Accessible grievance mechanism
      
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      Which issues does the grievance mechanism cover?: Social; Environmental
      
      What is the nature of the grievance mechanism used by the company?: Own mechanism; That of external company
      
      Report immediately to their UPM contact person any suspected or observed breach of this Supplier and Third-Party Code that may affect the business relationship or UPM. An anonymous misconduct report, including one concerning UPM employees, can be made via: Web: www.upm.com/reportmisconduct Email: reportmisconduct@upm.com Post: UPM-Kymmene Corporation Head of Internal Audit/Complaint P.O. Box 380 FI-00101 Helsinki Finland UPM will review carefully reports of misconduct and keep them strictly confidential to the fullest extent possible." [...] "If you want to report a violation of law or UPM policies (UPM Code of Conduct or UPM Supplier and Third-Party Code), please use the UPM Report Misconduct channel"
      
      Open source document
      Open source document
    - Report volumes of commodity sourced/used
      Reporting total volume
      
      3/3
      
      Report volumes of commodity sourced/used
      
      Reporting total volume
      
      3/3
      
      Total volume: 11.3 million tonnes
      
      Reporting certified/compliant volume: NA
      
      What product types/sectors is this in?: Pulp manufacturing
      
      What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA
      
      Reporting non-certified/non-compliant volume: NA
      
      UPM report their 2021 totals of pulp in a table within their annual report "DIRECT UPSTREAM Market pulp 1.7m t [...] Recovered paper 1.7m t [...] Purchased paper for converting 0.5m t [...] DIRECT DOWNSTREAM Paper 7.4m t [...] Chemical pulp 3.8m t"
      
      Open source document
    - Monitor compliance for labour rights and FPIC
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      3/5
      
      Monitor compliance for labour rights and FPIC
      
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      2.5/5
      
      What is the status of those FPIC processes?: NA
      
      What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
      
      What steps has the company taken to implement their labour rights commitment?: Auditing
      
      Regarding their human rights requirements: "The UPM Supplier/Third-Party needs to: • Give UPM permission to verify compliance with this Supplier and Third-Party Code through dialogue and, if considered necessary by UPM, through on-site audits. Reasonable notice will be given for the audits, conducted by UPM’s internal or external resources. • Respond to UPM’s surveys precisely and in a timely manner."
      
      Open source document
    - Monitor compliance for zero tolerance approach and customary rights
      No
      
      0/5
    - Upstream: Impact assessments for land development/acquisition
      Yes
      
      4/4
      
      Upstream: Impact assessments for land development/acquisition
      
      Yes
      
      4/4
      
      How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: Not specified
      
      For what percentage of production units has an ESIA been carried out as part of the land use planning process?: NA
      
      "We apply several precautionary measures and safeguards to avoid and minimize potential adverse environmental and social impacts on our surrounding communities: Environmental and Social Impact Assessments Continuos human rights due diligence in our own operations and supply chain[...] As a member of TfS, we have access to a wider pool of EcoVadis assessments and TfS audit reports. In 2021, we conducted some 340 (290) environmental and social risk assessments with EcoVadis. The number of on-site audits was limited due to COVID-19 restrictions; however, on-site audits were carried out at logging sites and at some mills"
      
      Open source document
      Open source document
    - Upstream: Reporting production/processing locations
      Reports location of company-owned processing facilities
      
      1/4
      
      Upstream: Reporting production/processing locations
      
      Reports location of company-owned processing facilities
      
      1/4
      
      What is the total area of land (in ha) that is available for future production, e.g. concessions?: NA
      
      What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: 900,000 ha
      
      What type of conservation designation and/or conservation status is used?: NA
      
      What is the total area in production (in ha)?: 900,000 ha
      
      In what country(ies) does the company operate and/or source material?: Uruguay, Finland, China, Denmark
      
      What is the area, in hectares of production units, on which non-DCF commodities are produced or processed, by country and jurisdiction: NA
      
      From what sub-national jurisdiction(s) does the company source material?: NA
      
      What types of ecosystems are these?: Boreal, temperate, tropical
      
      In what jurisdiction(s)/subnational region does the company operate and/or source material?: NA
      
      For what percent are boundaries (of holdings under conservation) disclosed?: NA
      
      For what percent are point locations (of land holdings and processing facilities) disclosed: NA
      
      For what percent are boundaries disclosed?: NA
      
      For what percent are point locations (of certified land holdings) disclosed?: NA
      
      For what percent are boundaries (of certified land holdings) disclosed?: NA
      
      For what percent are point locations (of holdings under conservation) disclosed?: NA
      
      What is the volume of each forest risk commodity that the company produced/processed/sourced in the previous year from each national or subnational location?: NA
      
      What is the total land area owned, managed, or controlled by the company for the forest risk commodity?: 900,000 ha
      
      "Our forests in Finland and the USA are open to the local community. We see them as providing limitless potential for new bioeconomy innovations and wood supply for our mills. We own a total of about 900 000 hectares of forestry land in Finland, Uruguay and Minnesota, USA. Most of this land is located in Finland, totalling roughly 515,000 hectares, followed by Uruguay (305,000) and the United States (76,000 hectares). We also lease about 161,000 hectares in Uruguay and manage around 1,3 million hectares of private forest." [...] "We are currently constructing a new worldclass pulp mill near Paso de los Toros in Uruguay and an efficient pulp terminal in the port of Montevideo"
      
      Open source document
      Open source document
    - Downstream: Reporting suppliers
      No
      
      0/4
    - Upstream: Monitor compliance of production/processing
      No
      
      0/4
    - Upstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Timber
  
  32/90
  - Commitment Strength
    
    6/17
    - Commodity-specific deforestation commitment
      
      2/4
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "No deforestration ever. Rainforests are off-limits. [...] The key principles behind our forestry and wood-sourcing activities:100% responsible and controlled sources: Wood supply chain 100% certified with 3rd party verification: All the wood we use certified by 2030: 100% regeneration with 50 million new trees planted yearly, equivalent to 100 trees per minute." [...] "Our wood sourcing and forestry causes zero deforestation: We do not harvest wood from tropical rainforests or plantations that were formerly rainforest."
        
        Open source document
        Open source document
      - Target date
        2028-2030
        
        0.1/1
        
        Target date
        
        2028-2030
        
        0.1/1
        
        What actions or steps are identified for time-bound implementation?: Certified supply chains, other unclear
        
        "No deforestration ever. Rainforests are off-limits. [...] The key principles behind our forestry and wood-sourcing activities:100% responsible and controlled sources: Wood supply chain 100% certified with 3rd party verification: All the wood we use certified by 2030: 100% regeneration with 50 million new trees planted yearly, equivalent to 100 trees per minute." [...] "Our wood sourcing and forestry causes zero deforestation: We do not harvest wood from tropical rainforests or plantations that were formerly rainforest."
        
        Open source document
        Open source document
      - Interim target date
        No
        
        0/0.5
    - Commitment to a traceable supply chain
      
      0/7.5
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    6/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces
      
      How far back in the supply chain does this commitment apply?: Supplier level
      
      Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
      
      "UPM Supplier and Third-Party Code is based on the ten principles of the United Nations Global Compact initiative, the United Nations Guiding Principles on Business and Human Rights, and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work. [..] The UPM Supplier/Third-Party needs to: • Respect universal human rights such as freedom of thought, opinion, expression, religion and freedom from any discrimination based on e.g. race, age, nationality, gender or sexual orientation or any form of harassment. • Respect local laws on working time and compensation, freedom of association, and right to collective bargaining. • Respect children’s rights and not use or tolerate the use of child labour. Follow minimum age set by local laws or International Labor Organization’s (ILO) definition of minimum age of 15 years, whichever is higher Ensure no form of forced labour is used or tolerated in any of its operations or activities. • Ensure the health, safety, and security of its employees and visitors as well as other people impacted by its operations. • Comply with UPM’s safety requirements when working at or visiting UPM sites and carry out necessary safety training. "
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      "Respect people and human rights [...] The UPM Supplier/Third-Party needs to: • Respect universal human rights such as freedom of thought, opinion, expression, religion and freedom from any discrimination based on e.g. race, age, nationality, gender or sexual orientation or any form of harassment."
      
      Open source document
    - Commitment to remediation
      Yes
      
      1/1
      
      Commitment to remediation
      
      Yes
      
      0.5/1
      
      What does the commitment cover?: Social harm
      
      "We constantly strive for better understanding of our impacts across our operations and business relationships and we prioritise our efforts accordingly. We monitor and work to remediate adverse impacts on human rights that we are aware of and that our activities have caused or contributed to. Remediation is specified case-by-case based on verified impacts."
      
      Open source document
    - Commitment to test Free, Prior and Informed Consent
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      Commitment to test Free, Prior and Informed Consent
      
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      How far back in the supply chain does this commitment apply?: Suppliers
      
      "UPM complies with applicable forest certification requirements on recognizing and upholding the rights, customs and culture of Indigenous Peoples, as defined in international conventions, declarations and treaties on the rights of indigenous peoples, such as the UN Declaration on the Rights of Indigenous Peoples (UNDRIP) and ILO Convention 169 on Indigenous and Tribal People. UPM ensures through its human rights due diligence and third-party certification that its own forestry operations and wood sourcing do not violate land tenure or land use rights of traditional or indigenous peoples groups. Risk assessments, community consultations, including Free, Prior, and Informed Consent (FPIC) when applicable, and access to grievance channels are embedded in our forestry operations and certification requirements. "
      
      Open source document
    - Commitment to respect customary rights to land, resources, and territory
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    20/56
    - Reporting proportion of compliant volumes
      
      0/0
    - Reporting is independently verified
      Yes, using a third-party verification scheme or certification scheme
      
      2/2
      
      Reporting is independently verified
      
      Yes, using a third-party verification scheme or certification scheme
      
      2/2
      
      Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC certification
      
      Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA
      
      Which processes or groups does the company use for third party verification?: FSC, PEFC certification
      
      What methods are used for verification?: FSC, PEFC certification
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: NA
      
      What percent of the company's supply volume is verified using company verification systems?: 83%
      
      "All wood used in our products comes from sustainably managed forests and from legal sources. All our wood supplies are covered by a third-party verified chain of custody. We aim to use certified fibre to the highest possible degree and to promote a global increase in the use of certified wood. Today, 83% (2020) of the wood we use is certified."
      
      Open source document
    - Suppliers aligned with deforestation commitments across supply chain
      Yes, encouraged
      
      0/3
      
      Suppliers aligned with deforestation commitments across supply chain
      
      Yes, encouraged
      
      0/3
      
      "The UPM Supplier and Third-Party Code defines the minimum level of performance that UPM requires from all of its suppliers and third-parties, such as agents, advisers, joint venture partners, local partners or distributors acting on behalf of UPM. UPM also requires all its suppliers to promote the same requirements in their own supply chains. All suppliers working on our premises must be introduced to UPM's safety requirements. There are area-specific requirements for certain materials or services. These include the following: All wood sourced for UPM products shall originate from sustainably managed forests and from legal sources and shall be covered by a third-party verified chain of custody. UPM aims to use certified fibre to the highest possible degree and promotes a global increase in the use of certified wood. The company's wood sourcing actions do not cause deforestation, nor do they threaten the rights of indigenous people. UPM does not use genetically modified trees or wood originating from rainforests. UPM additionally expects it s wood suppliers to commit to promoting biodiversity. UPM requires all its suppliers to be fully compliant with local regulations on chemicals and product safety."
      
      Open source document
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What initiatives does the company participate in?: Finnish Osprey Foundation and Vida Silvestre in Uruguay
      
      What is the nature of that participation?: Attending & contributing to meetings; Providing support/ advice/ experience/ expertise
      
      "We were an active international stakeholder member of the PEFC (the Programme for the Endorsement of Forest Certification, PEFC/02-44-41) and participated in the development of the PEFC forest certification system, reflecting our aim to promote sustainable forest management globally. In Finland, we participated in updating the forest management standards in both the FSC™ (Forest Stewardship Council™, FSC N003385) and the PEFC schemes. We also collaborated with the Finnish Osprey Foundation and Vida Silvestre in Uruguay."
      
      Open source document
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      For what percentage of material produced or sourced by the company has forest risk been assessed?: NA
      
      How frequently are assessments conducted?: Not specified
      
      "The responsibility risk assessment is based on the country of origin, sourced material or service and complexity of supply chain. We use EcoVadis and other assessments, supplier audits and joint development plans to carry out more detailed evaluations of suppliers’ activities."
      
      Open source document
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "The UPM Supplier/Third-Party needs to: • Comply with all applicable laws and regulations. [...] Give UPM permission to verify compliance with this Supplier and Third-Party Code through dialogue and, if considered necessary by UPM, through on-site audits. Reasonable notice will be given for the audits, conducted by UPM’s internal or external resources." [...] "Compliance with applicable Laws: Operations shall be conducted in line with respective legislation of the country of operations regarding silviculture, use of wood, wood harvesting, harvesting rights, rights of the forest owner, rights of the other stakeholders and trading of wood. Special attention must be paid to authorities’ instructions concerning environment, biodiversity, protection of nature and species, waste management, employees and operational health and safety.[...] UPM has a right to make audits or issue 3rd party to make audits in order to verify that the supplier operates according to these requirements. UPM has the right to terminate the contract or suspend the deliveries that do not comply with the requirements set in this appendix."
      
      Open source document
      Open source document
    - Accessible grievance mechanism
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      Accessible grievance mechanism
      
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      What is the nature of the grievance mechanism used by the company?: Own mechanism; That of external company
      
      Which issues does the grievance mechanism cover?: Social; Environmental
      
      If other type of mechanism, specify: Email, hotline, speak up service
      
      Report immediately to their UPM contact person any suspected or observed breach of this Supplier and Third-Party Code that may affect the business relationship or UPM. An anonymous misconduct report, including one concerning UPM employees, can be made via: Web: www.upm.com/reportmisconduct Email: reportmisconduct@upm.com Post: UPM-Kymmene Corporation Head of Internal Audit/Complaint P.O. Box 380 FI-00101 Helsinki Finland UPM will review carefully reports of misconduct and keep them strictly confidential to the fullest extent possible." [...] "If you want to report a violation of law or UPM policies (UPM Code of Conduct or UPM Supplier and Third-Party Code), please use the UPM Report Misconduct channel"
      
      Open source document
      Open source document
    - Report volumes of commodity sourced/used
      Reporting total volume
      
      3/3
      
      Report volumes of commodity sourced/used
      
      Reporting total volume
      
      3/3
      
      What product types/sectors is this in?: Wood production
      
      Reporting certified/compliant volume: NA
      
      Reporting non-certified/non-compliant volume: NA
      
      Total volume: 28.4 million m3
      
      What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA
      
      "UPM Forests and Plantaions: Forest and plantation land owned and leased (1,000 ha) 2021 1,057: Forest growth (million m3) 8.8: Wood harvested from UPM forests and plantations (million m3) 3.6 [...] INDIRECT UPSTREAM Private forest owners supplying wood to UPM 23,000 [...] DIRECT UPSTREAM Wood 26m m3 [...] DIRECT DOWNSTREAM Plywood and veneer 0.7m m3 [...] Sawn timber 1.7m m3"
      
      Open source document
    - Monitor compliance for labour rights and FPIC
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      3/5
      
      Monitor compliance for labour rights and FPIC
      
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      2.5/5
      
      What steps has the company taken to implement their labour rights commitment?: Auditing
      
      What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
      
      What is the status of those FPIC processes?: NA
      
      Regarding their human rights requirements: "The UPM Supplier/Third-Party needs to: • Give UPM permission to verify compliance with this Supplier and Third-Party Code through dialogue and, if considered necessary by UPM, through on-site audits. Reasonable notice will be given for the audits, conducted by UPM’s internal or external resources. • Respond to UPM’s surveys precisely and in a timely manner."
      
      Open source document
    - Monitor compliance for zero tolerance approach and customary rights
      No
      
      0/5
    - Upstream: Impact assessments for land development/acquisition
      Yes
      
      4/4
      
      Upstream: Impact assessments for land development/acquisition
      
      Yes
      
      4/4
      
      How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: Not specified
      
      For what percentage of production units has an ESIA been carried out as part of the land use planning process?: NA
      
      "We apply several precautionary measures and safeguards to avoid and minimize potential adverse environmental and social impacts on our surrounding communities: Environmental and Social Impact Assessments Continuos human rights due diligence in our own operations and supply chain[...] As a member of TfS, we have access to a wider pool of EcoVadis assessments and TfS audit reports. In 2021, we conducted some 340 (290) environmental and social risk assessments with EcoVadis. The number of on-site audits was limited due to COVID-19 restrictions; however, on-site audits were carried out at logging sites and at some mills"
      
      Open source document
      Open source document
    - Upstream: Reporting production/processing locations
      Reports location of company-owned processing facilities
      
      1/4
      
      Upstream: Reporting production/processing locations
      
      Reports location of company-owned processing facilities
      
      1/4
      
      For what percent are point locations (of certified land holdings) disclosed?: NA
      
      For what percent are boundaries (of holdings under conservation) disclosed?: NA
      
      What is the total land area owned, managed, or controlled by the company for the forest risk commodity?: 900,000 ha
      
      From what sub-national jurisdiction(s) does the company source material?: NA
      
      What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: 900,000 ha company forests
      
      What is the area, in hectares of production units, on which non-DCF commodities are produced or processed, by country and jurisdiction: NA
      
      In what country(ies) does the company operate and/or source material?: Uruguay, Finland, China, Denmark
      
      What types of ecosystems are these?: Boreal, temperate, tropical
      
      In what jurisdiction(s)/subnational region does the company operate and/or source material?: NA
      
      What type of conservation designation and/or conservation status is used?: NA
      
      What is the total area in production (in ha)?: 900,000 ha
      
      For what percent are point locations (of holdings under conservation) disclosed?: NA
      
      What is the total area of land (in ha) that is available for future production, e.g. concessions?: NA
      
      For what percent are point locations (of land holdings and processing facilities) disclosed: NA
      
      For what percent are boundaries (of certified land holdings) disclosed?: NA
      
      For what percent are boundaries disclosed?: NA
      
      What is the volume of each forest risk commodity that the company produced/processed/sourced in the previous year from each national or subnational location?: NA
      
      "Our forests in Finland and the USA are open to the local community. We see them as providing limitless potential for new bioeconomy innovations and wood supply for our mills. We own a total of about 900 000 hectares of forestry land in Finland, Uruguay and Minnesota, USA. Most of this land is located in Finland, totalling roughly 515,000 hectares, followed by Uruguay (305,000) and the United States (76,000 hectares). We also lease about 161,000 hectares in Uruguay and manage around 1,3 million hectares of private forest."
      
      Open source document
    - Downstream: Reporting suppliers
      No
      
      0/4
    - Upstream: Monitor compliance of production/processing
      No
      
      0/4
    - Upstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      Yes, for its suppliers
      
      2/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes, for its suppliers
      
      2/4
      
      What percentage of the company's supply chain volume does that represent?: 1.6 million M3
      
      For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA
      
      How frequently is compliance assessed?: systematically and regularly but not specified
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: NA
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA
      
      How is compliance monitored?: Certification; Internal monitoring and verification systems
      
      "The UPM Supplier and Third-Party Code defines the minimum level of performance that UPM requires from all of its suppliers and third-parties, such as agents, advisers, joint venture partners, local partners or distributors acting on behalf of UPM. UPM also requires all its suppliers to promote the same requirements in their own supply chains. [...] There are area-specific requirements for certain materials or services. These include the following: - All wood sourced for UPM products shall originate from sustainably managed forests and from legal sources and shall be covered by a third-party verified chain of custody. UPM aims to use certified fibre to the highest possible degree and promotes a global increase in the use of certified wood. The company’s wood sourcing actions do not cause deforestation, nor do they threaten the rights of indigenous people. UPM does not use genetically modified trees or wood originating from rainforests. UPM additionally expects its wood suppliers to commit to promoting biodiversity [...] Suppliers shall be assessed systematically and regularly from an economic, social and environmental perspective. When risks are identified, suppliers shall be evaluated in more detail through surveys, supplier audits and/or joint development plans. If any discrepancies are discovered, the supplier shall be required to take corrective measures."
      
      Open source document
      Open source document
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: Yes
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: joint action plans
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      What criteria does the policy specify for blacklisting or exclusion?: compliance with deforestation commitments
      
      Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
      
      "Suppliers shall be assessed systematically and regularly from an economic, social and environmental perspective. When risks are identified, suppliers shall be evaluated in more detail through surveys, supplier audits and/or joint development plans. If any discrepancies are discovered, the supplier shall be required to take corrective measures"
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
Commitment strength

6/17

Avg. score
Implementation and Reporting

18/56

Avg. score
Associated Human Rights Abuses

6/17

Avg. score

Profile

UPM is a forest industry company based in Finland, with operations in 15 countries including Argentina, Uruguay and Indonesia. UPM produces, processes and trades timber and paper. UPM is selected as a powerbroker for timber and pulp & paper.

Sector

Industry sector

Construction & Engineering, Paper Packaging

Segments

Producer, Trader, Processor, Manufacturer

Finland

Company Type

Company type

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Full corporate sector performance data Forest 500 assessment methodology

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Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.

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Total

Score:

Total score:

36%

Profile

How we assess the Forest 500

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UPM

Total

Score:

Total score: 36%

Profile

How we assess the Forest 500

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Total score:

36%