how sustainable is your paper?

Fuji Xerox DocuWorld

HOW SUSTAINABLEIS YOUR PAPER

Fuji Xerox DocuWorldSingapore, 21 Aug 2013

Ma YuanyuanEnvironmental Marketing Manager APAC

UPM (China) Co., Ltd.

Fuji Xerox environmental roadmap

| © UPM Internal2

CONTENTS

UPM group and growth in Asia PacificUPM group and growth in Asia Pacific

Sustainable needs from business

How sustainable is your paper

UPM Group

• Sales 10,4 billion euros in 2012• 22,000 employees • Listed in the NASDAQ OMX Helsinki stock

exchange

Current business

| © UPM4

New opportunitiesBiofuels BiochemicalsComposites

Current businessPlywoodLabelsPulp Forest & Timber PaperEnergy

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

UPM – The Biofore Company

VISIONUPM leads the integration of bio and forest industriesinto a new, sustainable and innovation-driven future.

PURPOSE

| © UPM6 January 2013Public

PURPOSEValue creation from renewable and recyclable materials

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 performancein the Supersector Leader report

7 Aug-13External

UPM in Asia Pacific

TokyoSeoul

Beijing

Changshu

ShanghaiWuhan

Chengdu

Shenzhen

GuangzhouHong Kong

Chongqing

Mumbai

TianjinShenyang

Xiamen

| © UPM Public January 20138

9 Regional warehouses in China

9 Sales Offices

ShenzhenHong Kong

Singapore

Sydney

1 Paper MillJohor Bahru

Paper

Engineered Materials3 Labelstock factories

10 Slitting terminalsBrisbane

Auckland

Melbourne

Adelaide

Jakarta

BangkokBangalore Ho Chi Minh

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


Turnover, USD Sales volume, tonsAnnual average: 15% Annual average: 10%2002 20122002 2012

UPM as a long term business partner with Fuji Xerox globally


CONTENTS




Global sustainability mega drivers and impacts on business

Environmental TrendClimate change

Biodiversity lossWater stress

Global megatrends

drivingresource scarcity and increase of

raw material costs

Solutions are resource

efficiency and renewable resources

Scarce Resources

| © UPM External Aug-1312

costs ResourcesWater

EnergyFood

MetalsOther raw materials

Economic & Consumer

Growth3 billion more middle income consumers by

2030

Population Growth

9.2 billion by 2050

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

Leading companies take care of environment


• Fuji Xerox Office Paper

• Hearst ELLE Magazine (Chinese version)

• Times Publishing Group

CONTENTS




Key environmental elements of paper

ForestClimate

| © UPM

TRANSPARENCY

16

SafetyWater

How do you rate the key environmental elements ?

PoorPoor BasicBasic GoodGood OutstandingOutstanding

Forest ? ? ? ?Climate ? ? ? ?


Climate ? ? ? ?Water ? ? ? ?Safety ? ? ? ?Proof ? ? ? ?

Forest

| © UPM18

Forest

Forest

Safety

Climate

Water

Poor – wood origin is not known or it comes from disputed areas or biodiversity hotspots

| © UPM19

Basic – legal but not certified

| © UPM20

Good – legal and certified

| © UPM21

Outstanding – legal, certified & biodiversity integrated in operations

| © UPM22

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

• 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

Climate

| © UPM25

Climate

Forest

Safety

Climate

Water

• 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

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


• All the calculation and data are verified by third party Inspecta

Carbon stored in paper

Total fossil CO2 emission per ton of paper

Fuji Xerox Carbon Neutral Paper in Australia, produced by UPM Changshu Mill


Performer Carbon neutral Sustainable Environment Carbon Neutral

• 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

• Effluent is cleaned to the highest standards by the

professional waste water treatment system

Sustainable use and minimum impact

1000UPM 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

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

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

UPM Paper – verified environmental information


How sustainable is your paper?

PoorPoor BasicBasic GoodGood OutstandingOutstanding

ForestOrigin not known or from disputed areas or bio diversity hotspots

Legal, not certified Legal and certifiedLegal and certified, biodiversity integratedin operations

Climate No care Comply with the Realized and reduce Minimize CO2 , Footprint analysis and


Climate No care Comply with the regulation limits

Realized and reduceCO2 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 hazardoussubstance

No hazardoussubstances and Verifiedby third part y

Proof No proof Basic information available

Eco-label criteria fulfilled

Verified for internationally recognized eco-label, Footprint analysis

how sustainable is your paper?

Technology

upm upm public

upm growth

upm customers

upm group sales

asia pacific upm paper

contents upm group

production plants upm

upm sam research