Added value through stakeholder engagement

Stakeholder engagement is based on
trust and mutual understanding

Our most important stakeholders are customers, investors and financiers, current and future employees, suppliers, authorities and key decision-makers, the media, non-governmental organisations and local communities. The approach to each varies based on business focus, region and individual stakeholder groups.

Well-functioning stakeholder engagement is essential for our success. We work regularly with our diverse range of stakeholders to better listen to their views and needs. Likewise, it is equally important to communicate and discuss our company’s targets, operating principles, values and the business environment with the stakeholders. This is how we create mutual understanding and trust and ensure that sufficient consideration is given to stakeholder needs during the strategic development and decision-making processes. Stakeholder mapping, active dialogue and the systematic gathering of feedback play an essential role in our stakeholder relations´ work in all businesses.

UPM is primarily viewed as an economic operator, so financial success, stability, good governance, future outlook and growth are fundamental themes for most stakeholders. In addition, our environmental performance and social responsibility play a significant role in our ability to operate and affect the long-term success of our businesses. To address these different needs, and in recognition of the varying levels of emphases these themes hold for different stakeholders, we aim to provide a balanced view of the economic, environmental and social aspects of our business activities.

High standards of responsible behaviour

The UPM Code of Conduct sets the standards of responsible behaviour towards these stakeholders for each and every UPM employee globally. The standards cover topics relating to legal compliance and disclosure, conflicts of interest, gifts and bribes, HR practices, human rights questions and environmental matters.

Should stakeholders have concerns or suspect misconduct, they are encouraged to contact UPM’s Stakeholder Relations function or use the UPM Report Misconduct channel accessible via our company website. A claim can be made confidentially and anonymously. The company has agreed internal procedures on how to address possible misconduct. 

In addition, we welcome any questions and feedback.

Materiality analysis

UPM’s materiality analysis (UPM AR 2023, page 63) highlights the topics UPM has a significant impact on or which have a significant impact on the company. In 2023, we changed our approach to a double-materiality assessment to prepare for the upcoming EU CSRD regulation. Double refers to considering both impact materiality, such as UPM’s impacts on people and environment and financial materiality, i.e. sustainability-related risks and opportunities likely to have financial implications to UPM. The analysis uses feedback from different stakeholder enquiries and the company’s own risk mapping, based on which the current and potential impacts are identified and their significance is assessed.