UPM-Kymmene Oyj SWOT & PESTLE Analysis

Strength

1. Industry leader in responsibility and sustainable operations: UPM has made consistent efforts for responsibility and the efforts have been widely recognized from several third parties. Responsibility is integrated into all operations from wood sourcing to logistics UPM has emerged as industry leader in various fields. UPM has been recognized a Global Compact LEAD company. It was recognized for its world class equipment to corporate responsibility it was among the 36 global companies and the only forest-industry company participating in UN Global Compact LEAD. UPM is also listed as industry leader in forest and paper sector in Dow Jones Sustainability World and Europe Indices (DJSI) for 2019-2020. UPM also received a rating of AAA in MSCI ESG ratings assessment. UPM was one of the only six triple A list companies globally for its actions to mitigate climate risk. UPM was ranked 23rd in the Corporate Knights list of the worlds 100 most sustainable corporations.

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Initiatives to reduce environmental impact throughout product lifecycle: All of UPM operations have either direct or indirect impacts on the environment. Being fully aware of the impacts, UPM targets to reduce the environmental footprints of its operations and products through the lifecycle. It aims to do so starting from the sourcing of raw materials till the recycle and reuse of the product after it is used. All of its mill sites put special emphasis on preventing air and water pollution, reducing waste and energy consumption and also reducing the impacts of noise and odor. It has undertaken multiple initiatives for it. For wooden raw materials, it uses wood from certified sustainable forestry and also assesses the chemical pulp suppliers. For the chemicals which are used, UPM makes it a point to audit the suppliers and also requires certification of environmental management systems. In order to reduce the emissions from power plants, Finnish forest industry company complies with the limit values. It uses renewable fuels and natural gas and engages in emission trading. It also involves in recycling of the products after use.

2. Focus on energy efficiency initiatives: UPM strives to improve energy efficiency in all its operations. Its target is to improve the energy efficiency by 1% every year. It has achieved great energy efficiency due to its multiple energy audits, innovations and internal campaigns carried out at its site. In order to reduce carbon dioxide and Sulphur dioxide emissions which are quite harmful, it uses efficient purification. The right choice of fuels and control of combustion conditions in the boilers has helped UPM in reducing these emissions. To control noise, older plants are refitted with sound insulation systems. During any new equipment being acquired or new facilities constructed, reducing noise pollution measures are taken into consideration. In 2019 fiscal, the Finnish forest industry company tightened their 2030 targets for reducing emissions of fossil CO2 and acidifying flue gases.

The remaining section of “Environmental” is available only in the 'Complete Report' on purchase.