More • Environmental value • Responsibility • Lifecycle approach • Energy consumption • Carbon footprint • Impact on water resources • Material intensity • Use of renewable and sustainable raw materials • Resource efficiency • Recyclability • Product safety Less • Use of oil-based raw materials • Harmful substances • Waste

1. Fuji Xerox DocuWorld
HOW SUSTAINABLE
IS YOUR PAPER
Fuji Xerox DocuWorld
Singapore, 21 Aug 2013
Ma Yuanyuan
Environmental Marketing Manager APAC
UPM (China) Co., Ltd.

2. Fuji Xerox environmental roadmap
| © UPM Internal2

3. CONTENTS
UPM group and growth in Asia PacificUPM group and growth in Asia Pacific
Sustainable needs from business
How sustainable is your paper

4. UPM Group
• Sales 10,4 billion euros in 2012
• 22,000 employees
• Listed in the NASDAQ OMX Helsinki stock
exchange
Current business
| © UPM4
New opportunities
Biofuels BiochemicalsComposites
Current business
PlywoodLabelsPulp Forest & Timber PaperEnergy

5. Sales network and production plants
| © UPM January 2013Public5
67 production plants in 17 countries:
- Europe: 55
- USA 5
- Brazil 1
- Uruguay 1
- China 2
- Australia 1
- Malaysia 1
- South-Africa 1
Global sales network

6. UPM – The Biofore Company
VISION
UPM leads the integration of bio and forest industries
into a new, sustainable and innovation-driven future.
PURPOSE
| © UPM6 January 2013Public
PURPOSE
Value creation from renewable and
recyclable materials

7. UPM recognised as Supersector Leader in
the Dow Jones Sustainability Indexes
“UPM has emerged as the new frontrunner in the forestry and
paper sector. Its “Biofore” business strategy strongly promotes
economic, social, and environmental sustainability throughout
its business operations.”
| © UPM
SAM Research on UPM’s sustainability performance
in the Supersector Leader report
7 Aug-13External

8. UPM in Asia Pacific
Tokyo
Seoul
Beijing
Changshu
Shanghai
Wuhan
Chengdu
Shenzhen
Guangzhou
Hong Kong
Chongqing
Mumbai
Tianjin
Shenyang
Xiamen
| © UPM Public January 20138
9 Regional warehouses in China
9 Sales Offices
ShenzhenHong Kong
Singapore
Sydney
1 Paper Mill
Johor Bahru
Paper
Engineered Materials
3 Labelstock factories
10 Slitting terminals
Brisbane
Auckland
Melbourne
Adelaide
Jakarta
Bangkok
Bangalore Ho Chi Minh

9. UPM growth in Asia Pacific
• UPM Paper Asia as a new business division in the corporate latest
structure 2013
• China and Asia Pacific is a strategic growth for UPM
| © UPM Public January 20139
Turnover, USD Sales volume, tonsAnnual average: 15% Annual average: 10%
2002 20122002 2012

10. UPM as a long term business partner with
Fuji Xerox globally
| © UPM Public January 201310

11. CONTENTS
UPM group and growth in Asia PacificUPM group and growth in Asia Pacific
Sustainable needs from business
How sustainable is your paper

12. Global sustainability mega drivers and
impacts on business
Environmental Trend
Climate change
Biodiversity loss
Water stress
Global
megatrends
driving
resource scarcity
and increase of
raw material
costs
Solutions are
resource
efficiency and
renewable
resources
Scarce
Resources
| © UPM External Aug-1312
costs Resources
Water
Energy
Food
Metals
Other raw materials
Economic &
Consumer
Growth
3 billion more
middle income
consumers by
2030
Population
Growth
9.2 billion by
2050

13. Sustainability means more for UPM customers
More Less
• Environmental value
• Responsibility
• Lifecycle approach
• Energy consumption
• Carbon footprint
• Impact on water resources
• Material intensity
| © UPM13
• Use of renewable and sustainable
raw materials
• Resource efficiency
• Recyclability
• Product safety
Material intensity
• Use of oil-based raw materials
• Harmful substances
• Waste
Aug-13External

14. Leading companies take care of environment
| © UPM External Aug-1314
• Fuji Xerox
Office Paper
• Hearst ELLE Magazine
(Chinese version)
• Times Publishing
Group

15. CONTENTS
UPM group and growth in Asia PacificUPM group and growth in Asia Pacific
Sustainable needs from business
How sustainable is your paper

16. Key environmental elements of paper
Forest
Climate
| © UPM
TRANSPAREN
CY
16
Safety
Water

17. How do you rate the key environmental
elements ?
PoorPoor BasicBasic GoodGood OutstandingOutstanding
Forest ? ? ? ?
Climate ? ? ? ?
| © UPM External Aug-1317
Climate ? ? ? ?
Water ? ? ? ?
Safety ? ? ? ?
Proof ? ? ? ?

18. Forest
| © UPM18
Forest
Forest
Safety
Climate
Water

19. Poor – wood origin is not known or it comes
from disputed areas or biodiversity hotspots
| © UPM19

20. Basic – legal but not certified
| © UPM20

21. Good – legal and certified
| © UPM21

22. Outstanding – legal, certified &
biodiversity integrated in operations
| © UPM22

23. UPM Paper is made from sustainably managed
forests
• We trace the origin of the wood we use
– 100% of it is legally harvested from sustainably managed
forests
• Certified and controlled wood
– 78% of the wood we use is certified, 100% is Controlled
Wood
| © UPM23
Wood
– Our target is to have 85% certified wood by 2020
• Reforestation
– UPM plants millions of trees each year under forest
management plans spanning up to 50 years in length
Aug-13External

24. • UPM was certified in 2006
• Fuji Xerox Singapore Document Supplies
Division was FSC certified in march 2010
• Well accepted global forest certification
scheme
• Wood used for paper making is from
FSC certified copy paper
| © UPM
• Wood used for paper making is from
sustainable managed forests
• Credibility and trust among customers / end
users, lower risk
• Using FSC paper, contribute to global
forest protection, help to mitigate climate
change, enjoy better environment
24 UPM

25. Climate
| © UPM25
Climate
Forest
Safety
Climate
Water

26. • How do we minimize carbon footprint?
Energy efficiency
Fossil CO2 free energy
• 80% of UPM's power generation is free
from fossil CO2 emissions
Biomass based energy
Paper with the lowest carbon footprint
UPMs Fossil CO2 free power generation
capacityMW
| © UPM
Biomass based energy
• 60% of the fuel used by UPM is biomass
• Outstanding results in carbon disclosure
In 2012, UPM received high scores in the Nordic
Carbon Disclosure Leadership Index, for
disclosing information on carbon and energy.
UPM received the highest Carbon Disclosure
score within the materials sector: (99 points out
of 100)
26 External

27. UPM paper Carbon Footprint
• The calculation is based on the Carbon
Footprint Framework for paper and
Board products developed by CEPI (the
Confederation of European
Paper Industry)
www.cepi.org
• All the calculation and data are verified
| © UPM External Aug-1327
• All the calculation and data are verified
by third party Inspecta
Carbon stored in paper
Total fossil CO2 emission
per ton of paper

28. Fuji Xerox Carbon Neutral Paper in Australia,
produced by UPM Changshu Mill
| © UPM External Aug-1328
Performer Carbon neutral Sustainable Environment Carbon Neutral

29. Water
| © UPM29
Water
Forest
Safety
Climate
Water

30. • Water reusing rate on paper machine is over 97%
• UPM copy paper water consumption is 4.5 m3/ton of
paper, among the lowest in the industry
Sustainable use and minimum impact
UPM Changshu Mill PM1
| © UPM30 Aug-13External
BAT Upper Limit BAT Lower Limit
0
10
20
2006 2007 2008 2009 2010 2011 2012
ton/tp
Note: BAT, the Best Available Technology

31. • Effluent is cleaned to the highest standards by the
professional waste water treatment system
Sustainable use and minimum impact
1000
UPM Changshu Mill PM1, COD
Water take from the
local river
Water after
treatment
| © UPM31 Aug-13External
0
200
400
600
800
UPM Actual Gov. Limit

32. What have we achieved in the last 10 years?
- UPM Changshu paper mill
WATER USE*)
–65 %
WASTE TO LANDFILL *)
–65 %
| © UPM32
65 %
ENERGY USE*)
–25 %
CERTIFIED FIBRE
@75 %
* Per paper tonne

33. Safety
| © UPM33
Safety
Forest
Safety
Climate
Water

34. Paper safe to use and recycle
• Paper Safety is vitally important to
users’ health!
• No restricted hazardous chemicals and
heavy metals in UPM paper
• Third party test report verification
| © UPM
• EU Food contact grade
External Aug-1334

35. Proof
| © UPM35
Proof
Forest
Safety
Climate
Water

36. UPM Paper – verified environmental
information
| © UPM External Aug-1336

37. How sustainable is your paper?
PoorPoor BasicBasic GoodGood OutstandingOutstanding
Forest
Origin not known or
from disputed areas or
bio diversity hotspots
Legal, not certified Legal and certified
Legal and certified,
biodiversity integrated
in operations
Climate No care
Comply with the Realized and reduce
Minimize CO2 ,
Footprint analysis and
| © UPM External Aug-1337
Climate No care
Comply with the
regulation limits
Realized and reduce
CO2
Footprint analysis and
disclosure
Water No responsible use
Comply with the
regulation limits
Reduce consumption
BAT and continuous
improvement
Safety
Hazardous substance
use
Comply with the
restrictions
No hazardous
substance
No hazardous
substances and Verified
by third part y
Proof No proof
Basic information
available
Eco-label criteria
fulfilled
Verified for
internationally
recognized eco-label,
Footprint analysis