OPPORTUNITIES FROM
ENVIRONMENTAL
SUSTAINABILITY
Philippe Riebel
VP Environmental Affairs
UPM-Kymmene Corporation
2 | © UPM
Contents
• About UPM
• The Biofore Company
• Opportunities from sustainability
• Examples
- Effluent management
...
3 | © UPM
UPM Today
• 24,000 employees
• Sales 9.5 billion euros (2008)
• Three business groups:
• Production in 15 countr...
4 | © UPM
VISION
PURPOSE
We create value from renewable and
recyclable materials by combining
expertise and technologies w...
5 | © UPM
The
Biofore
Company
The integration
of bio and forest
industries
Sustainable and
innovation-driven
Renewable raw...
6 | © UPM Source: FIFF
Bio-based products
have substantial markets
Wood-based biomass procurement and logistics
Bioenergy ...
7 | © UPM
Some UPM Examples
• Existing UPM products are based primarily on
renewable raw materials (wood), and they are
re...
8 | © UPM
Opportunities from
Environmental Sustainability
1. Risk Mitigation
• Preventing risks by effective environmental...
9 | © UPM
9
OPPORTUNITIES
FROM
SUSTAINABILITY
Examples
10 | © UPM
Example 1:
Effluent Management
Key Area: WATER
Topic
• Ensuring proper operation of biological effluent treatme...
11 | © UPM
Example 2:
Water is the next Carbon
Key Area: WATER
Topic
• Freshwater scarcity and management is a
rapidly gro...
12 | © UPM
Example 3:
Sustainable Forest Biomass
Key Area: BIODIVERSITY
Topic
• Ensuring availability of biomass raw mater...
13 | © UPM
Example 4:
Energy Efficiency
Key Area: CLIMATE
Topic
• Cost of fossil fuels, electricity, EU Emissions Trading ...
14 | © UPM
Carbon Footprint Reduction
Key Area: CLIMATE
Since 1990, fossil CO2 emissions per tonne of paper have decreased...
VALUE CREATION IN
THE MARKET PLACE
16 | © UPM
Enhanced Revenue Generation
Example for Printing Papers
• A growing % of global customers are
integrating susta...
17 | © UPM
2008 – Webby Award
Best Corporate Web Site
www.upmforestlife.com
18 | © UPM
Example 5:
Advantage of Sustainable Paper
Key Area: SUSTAINABLE PRODUCTS
Topic
• Key customers are using produc...
19 | © UPM
Example 6:
Third-Party Eco-Labels
Key Area: SUSTAINABLE PRODUCTS
Topic
• Customers have specific requests regar...
20 | © UPM
Environmental Life Cycle of Paper
• UPM's target is to minimise the environmental impact of a paper
throughout ...
21 | © UPM
Why the EU Eco-label? (EU Flower)
• Covers key elements of the life-cycle, not only fibre
• Water and energy us...
22 | © UPM
Summary
• YES - Environmental sustainability can give a
competitive edge
• Sustainable products over the life-c...
23 | © UPM
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Opportunitiesfromenvironmentalsustainabilityupmphilriebelfinal 12700793782597 Phpapp01

  1. 1. OPPORTUNITIES FROM ENVIRONMENTAL SUSTAINABILITY Philippe Riebel VP Environmental Affairs UPM-Kymmene Corporation
  2. 2. 2 | © UPM Contents • About UPM • The Biofore Company • Opportunities from sustainability • Examples - Effluent management - Water Footprint - Sustainable biomass - Energy efficiency and carbon footprint - Enhanced revenue generation • Sustainable Paper Advantage • Eco-labels • Summary
  3. 3. 3 | © UPM UPM Today • 24,000 employees • Sales 9.5 billion euros (2008) • Three business groups: • Production in 15 countries, worldwide sales network • Listed in the NASDAQ OMX Helsinki stock exchange Finnish pulp mills Hydro power assets Shares of associated companies in pulp and energy Biofuels Forests & Timber Magazine Fine Newsprint Speciality papers Labels RFID tags and inlays Plywood Wood plastic composites Energy and pulp Paper Engineered materials
  4. 4. 4 | © UPM VISION PURPOSE We create value from renewable and recyclable materials by combining expertise and technologies within fiber based, energy-related and engineered materials businesses. We reshape markets through cost leadership, change readiness and leading innovation As the frontrunner of the new forest industry UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. UPM - The Biofore Company.
  5. 5. 5 | © UPM The Biofore Company The integration of bio and forest industries Sustainable and innovation-driven Renewable raw material Low CO2 emissions New bio-based products Recyclable and renewable products Carbon locked in the products New approach to biomass value chain
  6. 6. 6 | © UPM Source: FIFF Bio-based products have substantial markets Wood-based biomass procurement and logistics Bioenergy – heat and electricity for industry and households Biofuels for transport Biomaterials Biochemicals Nano products Added value Volume grows Second generation biodiesel: emissions 85% lower than with fossil fuels Pulp, paper, plywood and timber products e.g. bio oil and bio ethanol e.g. composite products
  7. 7. 7 | © UPM Some UPM Examples • Existing UPM products are based primarily on renewable raw materials (wood), and they are recyclable • New sustainable businesses and products - UPM ProFi wood-plastic composite (Finland and Germany) • Renewable and bio-based energy production (study phase) - 2nd generation bio-diesel from forest residues, used as transportation fuel - ~ 85% less CO2 emissions compared to fossil fuels - Only non-food raw material are used
  8. 8. 8 | © UPM Opportunities from Environmental Sustainability 1. Risk Mitigation • Preventing risks by effective environmental management • Engaging in key forums to ensure sustainable regulations and standards • Applying best practices consistently in all regions of the world 2. Cost Reduction • Direct cost reduction due to higher efficiency (ex: energy, water) • Lower product costs due to eco-design over the product life-cycle 3. Revenue Enhancement (new business and markets) • Environmental performance and services • New sustainable products • Effective communications and marketing Cost Cost Sales margin / Revenue
  9. 9. 9 | © UPM 9 OPPORTUNITIES FROM SUSTAINABILITY Examples
  10. 10. 10 | © UPM Example 1: Effluent Management Key Area: WATER Topic • Ensuring proper operation of biological effluent treatment plant following process interferences in the pulp and paper mill Action • Environmental management system (ex: certified to ISO 14001 standard) • Risks identified and ranked • Operational procedures in place • Operator and management training done • Investments in infrastructure and monitoring Opportunity • Effective reaction, less down time and lower cost • No legal issues and no image risks
  11. 11. 11 | © UPM Example 2: Water is the next Carbon Key Area: WATER Topic • Freshwater scarcity and management is a rapidly growing global challenge • Water footprint standards development Action • Water Footprint Pilot Project launched at UPM Nordland paper mill with the Water Footprint Network – Case Study Opportunity • Developing internal expertise • Contributing to standard development 0 10 20 30 40 50 60 98 99 00 01 02 03 04 05 06 07 08 per tonne of chemical pulp per tonne of paper m3/t Process wastewater volumes per tonne of paper or pulp produced
  12. 12. 12 | © UPM Example 3: Sustainable Forest Biomass Key Area: BIODIVERSITY Topic • Ensuring availability of biomass raw material to operate the UPM Caledonian paper mill biomass energy plant built in Scotland in 2009 Action • Promote stump biomass harvesting and increase know-how among staff and stakeholders • Created operating instructions, guidelines and harvesting protocol • Address concerns: soil, water, biodiversity, carbon • Influenced how biomass harvesting is considered as part of forest certification Opportunity • Secure approval of authorities • Secure raw material for carbon-neutral energy production
  13. 13. 13 | © UPM Example 4: Energy Efficiency Key Area: CLIMATE Topic • Cost of fossil fuels, electricity, EU Emissions Trading Scheme Action • More energy self-sufficient , 40% higher production capacity since 1997 • Renewable energy and best-available-technology investments (over €1 billion in 10 yrs) • 12 modern biomass energy plants built since 1990 • 3 pulp mill recovery boilers modernised • Internal energy audit program Opportunity • Lower energy costs, opportunities to sell power & steam • Sell carbon allowances on EU ETS • Lower carbon footprint (more attractive products)
  14. 14. 14 | © UPM Carbon Footprint Reduction Key Area: CLIMATE Since 1990, fossil CO2 emissions per tonne of paper have decreased by: → 40 % in UPM Globally → 64 % in UPM Finland * UPM acquired - Changshu and Miramichi paper mills in 2000 - Haindl paper mills in 2001 CO2 t/t 0 0,2 0,4 0,6 90 92 94 96 98 00 02 04 06 08 CO2 t/t 0 0,2 0,4 0,6 90 92 94 96 98 00 02 04 06 08
  15. 15. VALUE CREATION IN THE MARKET PLACE
  16. 16. 16 | © UPM Enhanced Revenue Generation Example for Printing Papers • A growing % of global customers are integrating sustainability into purchasing decisions • Increased price can be obtained by up to 6% of customers and up to 6% by volume • In some cases, it can generate the whole order Environmental performance, services and effective marketing are essential
  17. 17. 17 | © UPM 2008 – Webby Award Best Corporate Web Site www.upmforestlife.com
  18. 18. 18 | © UPM Example 5: Advantage of Sustainable Paper Key Area: SUSTAINABLE PRODUCTS Topic • Key customers are using product scorecards - Paper Profile - Environmental Paper Assessment Tool • They cover the life-cycle of papermaking: - Forest management, mill operations - Purchased power, certifications - Paper composition, …and more Action • Making scorecards and information available to customers Opportunity • Customers are including UPM's sustainability score as part of their overall paper purchasing scorecard or decision • Top score means more business for UPM
  19. 19. 19 | © UPM Example 6: Third-Party Eco-Labels Key Area: SUSTAINABLE PRODUCTS Topic • Customers have specific requests regarding eco-labels, which can influence business - Ex: FSC, recycled fibre • Independently verified environmental claims help customers send the right message Action • Improve performance, label and market products • Environmental services, sales and customer education programs can influence decisions Opportunity • More business, competitive advantage
  20. 20. 20 | © UPM Environmental Life Cycle of Paper • UPM's target is to minimise the environmental impact of a paper throughout its entire life cycle
  21. 21. 21 | © UPM Why the EU Eco-label? (EU Flower) • Covers key elements of the life-cycle, not only fibre • Water and energy use • Air and wastewater emissions • Fossil fuel use • Solid waste management • Chemical use • Requires good overall environmental performance • An official label (EU Commission), third party certified • 100 UPM products are labeled
  22. 22. 22 | © UPM Summary • YES - Environmental sustainability can give a competitive edge • Sustainable products over the life-cycle is KEY Renewable, Recyclable, Biodegradable Climate (low carbon) Water (sustainable use) Forest (certified, maintain and increase biodiversity) Waste (minimize and re-use) • Marketing and communications (a must!) Eco-labels Sending a simple and effective message
  23. 23. 23 | © UPM

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