UPM forestry meets global megatrends

FIPP Insider

12th December 2018

London

Timo Lehesvirta

Sustainable Forestry Lead, Forest Global, UPM

| © UPM

Megatrends drive demand for sustainable and safe solutions

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Biofore fits well into the changing world

Efficient use of renewable materials and energy

Renewable and recyclable products

Innovations and new businesses

Responsibility integrated in all operations

Population growth, urbanisation

Resource scarcity, role of renewables

Digitalisation

Climate change

Responsibility and compliance

| © UPM

| © UPM

Limitless opportunities of bioeconomy

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Responsible

operations and

value chain

Circular economy

Sustainable and safe

solutions for growing global

consumer demand

Innovation

High

performing

people

Sustainable

forestry

2020

2030

| © UPM

VisionWe lead the forest-based bioindustry

into a sustainable, innovation-driven,

and exciting future.

The competence, integrity and drive

of our people make us unique.

ValuesTrust and be trusted

Achieve together

Renew with courage

PurposeWe create value by seizing the

limitless potential of bioeconomy.

| © UPM

Global businesses – local presence

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54production plants

in 12 countries

19,100employees

in 46 countries

12,000customers

in 120 countries

90,000shareholders

in 35 countries

25,000b-to-b suppliers

in 75 countries

UPM’s sales by market 2017

EUR 10 billion

13%North America

62%Europe

5%Rest of the world

20%Asia

| © UPM

Biomolecules

Fibres

Logs

Trees

Biofuels

Biochemicals

Pulp

Paper

Packaging

Tissue

Labelling materials

Biocomposites

Sawn timber

Plywood

Energy

Evolution of wood usage

5 | © UPM

| © UPM

UPM and forests

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27Mm3

Wood delivered globally

to UPM mills annually

50MTree seedlings

planted annually

30,000Wood trade transactions

with private forest owners

in Finland annually

85%Of wood used in

UPM products certified

100%Of wood and

wood fibre from

sustainable sources

| © UPM

How to produce wood?

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Tree plantationSemi-natural forest

Wood

Biodiversity

Climate

Water and soil

People

| © UPM

UPM forestry fundamentals

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Knowing the origin of wood

Protecting waters

Zero deforestation

Enhancing biodiversity

Maintaining carbon sinks

Respecting stakeholders

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Biodiversity as a basis for bioeconomy

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Timber Pulp and paper Fuel Energy

Carbon sink Wellbeing Food Water protection

BIODIVERSITY

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UPM biodiversity program – indicators

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Native trees –diversified species composition

Dead wood –increased volumes of decaying wood

Valuable habitats –protected biodiversity hot spots

Forest structure –diversified structural variation

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Biodiversity projects with stakeholders

• Continuous cover forestry

• Habitat restoration

• Grove forests

• Fire habitats

• Esker forests

• Species projects

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| © UPM

Modern forestry

DeadwoodRetention

tree

Retention tree groups

Habitatrestoration

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| © UPM

Brook

Brook

Grove

Grove

Grove

Spring

Spring

Small lake

Rocky patch

Fertile bog

Mire

300 m

Grove

Valuable habitats

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| © UPM

Biodiversity research

• Euconnus fimetarius

• Monotoma spinicollis

• Cryptophagus fallax

• Bisnius subuliformis

• Philonthus parvicornis

• Eucinetus haemorrhoidalis

• Lacon conspersus

• Dorcatorma substriata

• Cis submicans

• Tomoxia bucephala

• Corticeus longulus

• Phutobaenus ababilis

• Anaspis brunnipes

• Allandrus undulatus

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Threatened species

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Forests as carbon sink

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| © UPM

Targeting to net positive impact on biodiversity

As the first the forest company, we are committed to achieving

net positive impact on biodiversity. We want to further develop

modern forestry and create methods for biodiversity

measurement, tailored for the forest sector.

Our project is collaborative initiative. We want to invite expert

stakeholders from academic world, authorities and NGOs

to work with us.

This new biodiversity target is included to our 2030

responsibility targets.

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| © UPM

Ecosystem service integration into product value chain

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1,000kgof UPM pulp

8,000,000lCleans water

> 800species

>200kgProvides food

4,000kgBinds carbon

5,5 m3 of wood:

UPM and Finnish Environment Institute

| © UPM

UPM Raflatac – Biodiversity in product value chain

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Finland

South Africa

| © UPM

Thank you and stay tuned!

We will continue the discussion on sustainability in our upcoming white paper released soon.

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