UPM

Overall approach

7/16
- Overarching commitment on deforestation
  
  4/6
  
  Deforestation commitment
  
  Zero-deforestation
  
  4/6
  
  Commodities (if applicable): 0
  
  "Our promise: Our wood sourcing and forestry causes zero deforestation."
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Signatory
  
  Yes
  
  1/1
  
  Which initiatives?: World Business Council for Sustainable Development Forest Solutions Group; UN Global Compact
  
  If Other Initiative, specify::
  
  "Together with other Forest Solutions Group (FSG) members of the World Business Council for Sustainable Development (WBCSD), UPM has made a contribution to this important topic in the form of the Low Carbon Technology Partnerships initiative (LCTPi)." "UPM has been again recognised as a UN Global Compact LEAD participant for its strong commitment to responsible business."
  
  Open source document
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "Forests are dear to many: 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."
  
  Open source document
- Deforestation as a business risk
  
  1/1
  
  Business risk
  
  Yes
  
  1/1
  
  Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Operational
  
  "Our business is based on forests. This is a strong reason to ensure that forests grow for many generations to come. Forests must remain forests."
  
  Open source document
- High-level management of deforestion
  
  0/1
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  0/3
- Reporting on emissions from land-use change
  
  0/3
- Disclosure of conservation activity
- Disclosure of reforestation activity
Commodity score

42/84
- Pulp & Paper
  
  43/84
  - Commitment Strength
    
    15/28
    - Commitment to protect priority forests
      
      10/12
      - Commitment details
        Zero-gross deforestation
        
        6/8
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        6/8
        
        Which certification schemes are used?: FSC; PEFC
        
        "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. All of UPM's own forests and eucalyptus plantations are certified according to the FSC and/or PEFC-certification schemes. In addition, UPM has an FSC and PEFC Group Certificate in Finland , which are open to private forest owners." "The supplier must guarantee that the wood is not from untouched natural forests, illegal fellings, fromnature protection areas or protected forests where wood harvesting is prohibited by law or by authorityinstructions and neither from plantations which have been established replacing natural forests (FSCSTD-40-005 V3-1). Among the supplied wood there are neither species listed in Annex 1, 2 or 3 of theConvention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), norgenetically modified (GMO) wood (FSC-STD-40-005 V3-1)."
        
        Open source document
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "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. All of UPM’s own forests and eucalyptus plantations are certified according to the FSC® and/or PEFC™certification schemes. In addition, UPM has an FSC® and PEFC™ Group Certificate in Finland , which are open to private forest owners." "The supplier must guarantee that the wood is not from untouched natural forests, illegal fellings, fromnature protection areas or protected forests where wood harvesting is prohibited by law or by authorityinstructions and neither from plantations which have been established replacing natural forests (FSCSTD-40-005 V3-1). Among the supplied wood there are neither species listed in Annex 1, 2 or 3 of theConvention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), norgenetically modified (GMO) wood (FSC-STD-40-005 V3-1)."
        
        Open source document
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        1.3/1.3
        
        Target date
        
        Current/2020/Pre-2020
        
        1.3/1.3
        
        "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. All of UPM’s own forests and eucalyptus plantations are certified according to the FSC® and/or PEFC™certification schemes. In addition, UPM has an FSC® and PEFC™ Group Certificate in Finland , which are open to private forest owners." "The supplier must guarantee that the wood is not from untouched natural forests, illegal fellings, fromnature protection areas or protected forests where wood harvesting is prohibited by law or by authorityinstructions and neither from plantations which have been established replacing natural forests (FSCSTD-40-005 V3-1). Among the supplied wood there are neither species listed in Annex 1, 2 or 3 of theConvention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), norgenetically modified (GMO) wood (FSC-STD-40-005 V3-1)."
        
        Open source document
        Open source document
      - Interim target date
        Yes
        
        0.7/0.7
        
        Interim target date
        
        Yes
        
        0.7/0.7
        
        What date is given for the interim milestone(s)?: Current
        
        Target date is current - see 3.2
        
        Open source document
        Open source document
    - Commitment to reduce use of virgin wood fibre
      
      5/8
      - Commitment details
        Yes
        
        4/4
        
        Commitment to reduce use of virgin wood fibre
        
        Yes
        
        4/4
        
        Type of commitment: Recycled content
        
        "Recycled fibre accounts for nearlyone third of all fibre used in UPM’s paperproduction, and we are the world’s largestuser of recovered paper in graphic paperproduction."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
        
        Commitment applies to all regions, suppliers and operation
        
        No
        
        0/2
        
        "Recycled fibre accounts for nearlyone third of all fibre used in UPM’s paperproduction, and we are the world’s largestuser of recovered paper in graphic paperproduction."
        
        Open source document
      - Target date
        No target date
        
        0/1.3
        
        Target date
        
        No target date
        
        0/1.3
        
        "Recycled fibre accounts for nearlyone third of all fibre used in UPM’s paperproduction, and we are the world’s largestuser of recovered paper in graphic paperproduction."
        
        Open source document
      - Interim target date
        Yes
        
        0.7/0.7
        
        Interim target date
        
        Yes
        
        0.7/0.7
        
        What date is given for the interim milestone(s)?: Current
        
        Target date is current - see 3.2
        
        Open source document
    - Commitment to a traceable supply chain
      
      0/8
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        No target date
        
        0/1.3
      - Interim target date
        No
        
        0/0.7
  - Social Considerations
    
    7/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: ILO; Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "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."
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/4
    - Gender equality in the supply chain
      Discrimination/Gender Rights/Harassment
      
      1/4
      
      Gender equality in the supply chain
      
      Discrimination/Gender Rights/Harassment
      
      1/4
      
      "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
      
      2/2
      
      Commitment to remediation
      
      Yes
      
      2/2
      
      "Environmental provisions: Expenditures that result from remediation of an existing condition caused by past operations and that do not contribute to current or future revenues are expensed. The recognition of environmental provisions is based on current interpretations of environmental laws and regulations. Such provisions are recognised when it is likely that the liability has been incurred and the amount of such liability can be reasonably estimated. Amounts provisioned do not include third-party recoveries [...] The Group has provisions for normal environmental remediation costs."
      
      Open source document
    - Commitment to ensure Free, Prior and Informed Consent
      No commitment
      
      0/4
  - Reporting and Implementation
    
    21/38
    - Reporting against commitments
      
      4/6
      - Commitment to protect priority forests
        Yes
        
        2/2
        
        Commitment to protect priority forests
        
        Yes
        
        2/2
        
        In their 2019 Annual Report, UPM states that 82% of their wood use is certified.
        
        Open source document
      - Commitment to reduce use of virgin wood fibre
        Yes
        
        2/2
        
        Commitment to reduce use of virgin wood fibre
        
        Yes
        
        2/2
        
        "Recycled fibre accounts for nearlyone third of all fibre used in UPM’s paperproduction, and we are the world’s largestuser of recovered paper in graphic paperproduction."
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/2
    - Reporting is independently verified
      
      1/4
      - Commitment to protect priority forests
        Yes: third-party
        
        1.3/1.3
        
        Commitment to protect priority forests
        
        Yes: third-party
        
        1.3/1.3
        
        Which processes or groups does the company use for third party verification?: FSC, PEFC
        
        For what percent of the company’s supply volume is third-party verification of performance relative to commitments conducted?: 82%
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC
        
        In their 2019 Annual Report, UPM states that 82% of their wood use is certified.
        
        Open source document
      - Commitment to reduce use of virgin wood fibre
        No
        
        0/1.3
      - Commitment to a traceable supply chain
        No
        
        0/1.3
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What initiatives does the company participate in?: Innovations with Elopak and Dow
      
      What is the nature of that participation?: Attending & contributing to meetings
      
      "By collaborating with other sustainability frontrunners, UPM has launched innovations such as a 100% wood-based, fully recyclable milk carton created in collaboration with Dow and Elopak. Another outcome of partnering is UPM Raflatac Forest Film, a 100% wood-based label material made from UPM BioVerno naphtha."
      
      Open source document
    - Risk assessments for forest risk
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      How frequently are assessments conducted?: 0 Not specified
      
      For what percentage of material produced or sourced by the company has forest risk been assessed?: 0 Not specified
      
      "In addition to conducting risk assessments as part of our supplier selection, we carry out continuous risk assessments covering our entire existing supplier base. Risk assessments are an integral part of our supplier management activities. We utilize them to reveal possible shortcomings in supplier performance and compliance. We have introduced a risk management process that covers all of our counterparties. The process includes an automated screening and alert functionalities. Our supplier assessment process covers supplier-specific financial, quality and supply risks, as well as any potential human rights and environmental risks. Human rights and environmental risk assessment is based on the country of origin (Transparency International), commodity specific risk and supply chain complexity. We extend risk assessments to several tiers, especially when commodities are originating from forestry, agriculture and mining industries."
      
      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 [...] 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."
      
      Open source document
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Report Misconduct channel
      
      Details of the mechanism: Social
      
      "Any potential violations against UPM Insider Policy or suspected infringement of financial market regulations, such as MAR and Securities Markets Act, can be reported by using UPM’s Report Misconduct channel [...] You may report your complaints or concerns relating to violations of the UPM Code of Conduct, any policies or rules thereunder or any applicable laws or regulations to the Head of Internal Audit, Chief Compliance Officer and Security Director through this channel."
      
      Open source document
      Open source document
    - Report volumes of commodity
      Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
      
      4/4
      
      Report volumes of commodity
      
      Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
      
      4/4
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 82%
      
      Which certification schemes are used?: FSC; PEFC
      
      What is the certified volume?: 10.25 million tons
      
      What is the non-certified/non-compliant volume?: 2.25 million tons
      
      In their 2019 Annual Report UPM report that they use inputs of: 27.5 million m3 of wood, 2.3 million tons of recovered paper, and 1.7 million tons of market pulp. This resulted in production of 8.2 million tons of paper, 3.7 million tons of chemical pulp, and 0.6 million tons of converting materials. "82% (81%) of wood consumed in our mills was sourced from certified forests in 2019, and all wood sourced by UPM is FSC Controlled Wood and from PEFC Controlled Sources."
      
      Open source document
    - Upstream: Impact assessments for land development/acquisition
      Yes
      
      4/4
      
      Upstream: Impact assessments for land development/acquisition
      
      Yes
      
      4/4
      
      "In 2019, UPM conducted over 400environmental and social risk assessments with EcoVadis and initiatedfirst TfS audits."
      
      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?: 0 Not specified
      
      What type of conservation designation and/or conservation status is used?: 0 Not specified
      
      In what country(ies) does the company operate and/or source material?: USA, Mexico, Brazil, Argentina, Uruguay, UK, Germany, Finland, Spain, France, Italy, Poland, Estonia, Russia, Austria, Turkey, China, India, Singapore, Indonesia, Thailand, Vietnam, Australia, New Zealand
      
      What is the total area in production (in ha)?: 0 Not specified
      
      For what percent are point locations (of holdings under conservation) disclosed?: 0 Not specified
      
      What is the total land area owned, managed, or controlled by the company for the forest risk commodity?: 0 Not specified
      
      For what percent are point locations (of certified land holdings) disclosed?: 0 Not specified
      
      From what sub-national jurisdiction(s) does the company source material?: 0 Not specified
      
      For what percent are boundaries (of holdings under conservation) disclosed?: 0 Not specified
      
      For what percent are point locations (of land holdings and processing facilities) disclosed?: 0 Not specified
      
      For what percent are boundaries (of certified land holdings) disclosed?: 0 Not specified
      
      In what jurisdiction(s)/subnational region does the company operate and/or source material?: 0 Not specified
      
      What types of ecosystems are these?: 0 Not specified
      
      What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: 0 Not specified
      
      For what percent are boundaries disclosed?: 0 Not specified
      
      UPM publishes an interactive map of its processing mills, with addresses.
      
      Open source document
    - Upstream: Monitor compliance of production/processing
      No
      
      0/4
- Timber
  
  41/84
  - Commitment Strength
    
    14/28
    - Commitment to protect priority forests
      
      14/17
      - Commitment details
        Zero-gross deforestation
        
        8/10.7
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        8/10.7
        
        Which certification schemes are used?: FSC; PEFC
        
        "All of UPM’s own forests and eucalyptus plantations are certified according to the FSC® and/or PEFC™certification schemes. In addition, UPM has an FSC® and PEFC™ Group Certificate in Finland , which are open to private forest owners." "The supplier must guarantee that the wood is not from untouched natural forests, illegal fellings, fromnature protection areas or protected forests where wood harvesting is prohibited by law or by authorityinstructions and neither from plantations which have been established replacing natural forests (FSCSTD-40-005 V3-1). Among the supplied wood there are neither species listed in Annex 1, 2 or 3 of theConvention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), norgenetically modified (GMO) wood (FSC-STD-40-005 V3-1)."
        
        Open source document
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        3/3
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        3/3
        
        "All of UPM’s own forests and eucalyptus plantations are certified according to the FSC® and/or PEFC™certification schemes. In addition, UPM has an FSC® and PEFC™ Group Certificate in Finland , which are open to private forest owners." "The supplier must guarantee that the wood is not from untouched natural forests, illegal fellings, fromnature protection areas or protected forests where wood harvesting is prohibited by law or by authorityinstructions and neither from plantations which have been established replacing natural forests (FSCSTD-40-005 V3-1). Among the supplied wood there are neither species listed in Annex 1, 2 or 3 of theConvention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), norgenetically modified (GMO) wood (FSC-STD-40-005 V3-1)."
        
        Open source document
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        2/2
        
        Target date
        
        Current/2020/Pre-2020
        
        2/2
        
        "All of UPM’s own forests and eucalyptus plantations are certified according to the FSC® and/or PEFC™certification schemes. In addition, UPM has an FSC® and PEFC™ Group Certificate in Finland , which are open to private forest owners." "The supplier must guarantee that the wood is not from untouched natural forests, illegal fellings, fromnature protection areas or protected forests where wood harvesting is prohibited by law or by authorityinstructions and neither from plantations which have been established replacing natural forests (FSCSTD-40-005 V3-1). Among the supplied wood there are neither species listed in Annex 1, 2 or 3 of theConvention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), norgenetically modified (GMO) wood (FSC-STD-40-005 V3-1)."
        
        Open source document
        Open source document
      - Interim target date
        Yes
        
        1/1
        
        Interim target date
        
        Yes
        
        1/1
        
        What date is given for the interim milestone(s)?: Current
        
        Target date is current - see 3.2
        
        Open source document
        Open source document
    - Commitment to a traceable supply chain
      
      0/11
      - Commitment details
        No traceability commitment
        
        0/5.3
        
        Commitment to a traceable supply chain
        
        No traceability commitment
        
        0/5.3
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/3
      - Target date
        No target date
        
        0/2
      - Interim target date
        No
        
        0/1
  - Social Considerations
    
    7/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: ILO; Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "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."
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/4
    - Gender equality in the supply chain
      Discrimination/Gender Rights/Harassment
      
      1/4
      
      Gender equality in the supply chain
      
      Discrimination/Gender Rights/Harassment
      
      1/4
      
      "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
      
      2/2
      
      Commitment to remediation
      
      Yes
      
      2/2
      
      "Environmental provisions: Expenditures that result from remediation of an existing condition caused by past operations and that do not contribute to current or future revenues are expensed. The recognition of environmental provisions is based on current interpretations of environmental laws and regulations. Such provisions are recognised when it is likely that the liability has been incurred and the amount of such liability can be reasonably estimated. Amounts provisioned do not include third-party recoveries [...] The Group has provisions for normal environmental remediation costs."
      
      Open source document
    - Commitment to ensure Free, Prior and Informed Consent
      No commitment
      
      0/4
  - Reporting and Implementation
    
    20/38
    - Reporting against commitments
      
      3/6
      - Commitment to protect priority forests
        Yes
        
        3/3
        
        Commitment to protect priority forests
        
        Yes
        
        3/3
        
        In their 2019 Annual Report, UPM states that 82% of their wood use is certified.
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/3
    - Reporting is independently verified
      
      2/4
      - Commitment to protect priority forests
        Yes: third-party
        
        2/2
        
        Commitment to protect priority forests
        
        Yes: third-party
        
        2/2
        
        Which processes or groups does the company use for third party verification?: FSC, PEFC
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC
        
        For what percent of the company’s supply volume is third-party verification of performance relative to commitments conducted?: 82%
        
        In their 2019 Annual Report, UPM states that 82% of their wood use is certified.
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/2
    - 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
      
      What initiatives does the company participate in?: Collaborating with universities
      
      "UPM collaborates with expert organizations in various development projects. Our research partners in Finland include the Natural Resources Institute Finland, the Finnish Environment Institute and the Universities of Helsinki and Eastern Finland. Partnering with external experts supports our target to be a forest bioeconomy frontrunner."
      
      Open source document
    - 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?: 0 Not specified
      
      How frequently are assessments conducted?: not specified
      
      "In addition to conducting risk assessments as part of our supplier selection, we carry out continuous risk assessments covering our entire existing supplier base. Risk assessments are an integral part of our supplier management activities. We utilize them to reveal possible shortcomings in supplier performance and compliance. We have introduced a risk management process that covers all of our counterparties. The process includes an automated screening and alert functionalities. Our supplier assessment process covers supplier-specific financial, quality and supply risks, as well as any potential human rights and environmental risks. Human rights and environmental risk assessment is based on the country of origin (Transparency International), commodity specific risk and supply chain complexity. We extend risk assessments to several tiers, especially when commodities are originating from forestry, agriculture and mining industries."
      
      Open source document
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "We verify that the wood supplied to our mills is sustainably sourced, legally logged and procured according to the basic requirements of international forest certification schemes and the EU Timber Regulation, US Lacey Act and other regional jurisdictions." "The UPM Supplier/Third-Party needs to: • Comply with all applicable laws and regulations [...] 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."
      
      Open source document
      Open source document
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Report Misconduct channel
      
      Details of the mechanism: Social
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No
      
      "Any potential violations against UPM Insider Policy or suspected infringement of financial market regulations, such as MAR and Securities Markets Act, can be reported by using UPM’s Report Misconduct channel [...] You may report your complaints or concerns relating to violations of the UPM Code of Conduct, any policies or rules thereunder or any applicable laws or regulations to the Head of Internal Audit, Chief Compliance Officer and Security Director through this channel."
      
      Open source document
      Open source document
    - Report volumes of commodity
      Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
      
      4/4
      
      Report volumes of commodity
      
      Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
      
      4/4
      
      Which certification schemes are used?: FSC; PEFC
      
      What is the non-certified/non-compliant volume?: 0.67 million m3
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 82%
      
      What is the certified volume?: 3.03 million m3
      
      In their 2019 report, UPM reported that they harvest 3.7 million m3 of wood from their own forests and plantations. "82% (81%) of wood consumed in our mills was sourced from certified forests in 2019, and all wood sourced by UPM is FSC Controlled Wood and from PEFC Controlled Sourced."
      
      Open source document
    - Upstream: Impact assessments for land development/acquisition
      Yes
      
      4/4
      
      Upstream: Impact assessments for land development/acquisition
      
      Yes
      
      4/4
      
      "In 2019, UPM conducted over 400environmental and social risk assessments with EcoVadis and initiatedfirst TfS audits."
      
      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 in production (in ha)?: 0 Not specified
      
      What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: 0 Not specified
      
      For what percent are boundaries (of holdings under conservation) disclosed?: 0 Not specified
      
      For what percent are point locations (of holdings under conservation) disclosed?: 0 Not specified
      
      For what percent are boundaries (of certified land holdings) disclosed?: 0 Not specified
      
      What type of conservation designation and/or conservation status is used?: 0 Not specified
      
      In what jurisdiction(s)/subnational region does the company operate and/or source material?: 0 Not specified
      
      What is the total land area owned, managed, or controlled by the company for the forest risk commodity?: 0 Not specified
      
      What is the total area of land (in ha) that is available for future production, e.g. concessions?: 0 Not specified
      
      For what percent are point locations (of certified land holdings) disclosed?: 0 Not specified
      
      For what percent are point locations (of land holdings and processing facilities) disclosed?: 0 Not specified
      
      What types of ecosystems are these?: 0 Not specified
      
      In what country(ies) does the company operate and/or source material?: USA, Mexico, Brazil, Argentina, Uruguay, UK, Germany, Finland, Spain, France, Italy, Poland, Estonia, Russia, Austria, Turkey, China, India, Singapore, Indonesia, Thailand, Vietnam, Australia, New Zealand
      
      From what sub-national jurisdiction(s) does the company source material?: 0 Not specified
      
      For what percent are boundaries disclosed?: 0 Not specified
      
      UPM publishes an interactive map of its processing mills, with addresses.
      
      Open source document
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Upstream: Monitor compliance of production/processing
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      Yes for its suppliers only
      
      3/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes for its suppliers only
      
      3/4
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 0 Not specified
      
      How frequently is compliance assessed?: Not specified
      
      Details of monitoring: Using internal monitoring and verification systems; Using third party verification
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 0 Not specified
      
      What percentage of the company's supply chain volume does that represent?: 0 Not specified
      
      "UPM REQUIREMENTS FOR SUPPLIERS OF WOOD: [...] 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
    - Downstream: Engagement with non-compliant suppliers
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: None
      
      What criteria does the policy specify for blacklisting or exclusion?: Non-compliance with requirements for wood suppliers
      
      "UPM REQUIREMENTS FOR SUPPLIERS OF WOOD: [...] 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
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
Commitment strength

14/28

Avg. score
Reporting and Implementation

21/38

Avg. score
Social considerations

7/18

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

Paper & packaging, Forestry

Segments

Producer, Trader, Processor, Manufacturer

Finland

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.

upm_logo.png

Total

Score:

Total score:

48%

Profile

How we assess the Forest 500

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Disclaimer

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UPM

Total

Score:

Total score: 48%

Profile

How we assess the Forest 500

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Disclaimer

Total score:

48%