Case study: How UPM creates economic value for its stakeholders
As a frontrunner in biomaterials, UPM provides renewable alternatives for fossil-based materials in everyday use, with products that enable its customers and consumers to make more sustainable choices. UPM is strongly committed to continuously improving its economic and social performance, creating sustainable value for all its stakeholders. Tweet This!
This case study is based on the 2022 Annual Report by UPM, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
In 2022, the economic value distributed by UPM reached EUR 10,607 million. In order to create economic value for its stakeholders UPM took action to:
- create economic value for employees
- create economic value for providers of loans
- create economic value for shareholders
- create economic value for governments
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With this case study you will see:
- Which are the most important impacts (material issues) UPM has identified;
- How UPM proceeded with stakeholder engagement, and
- What actions were taken by UPM to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Annual Report UPM identified a range of material issues, such as business ethics and value, responsible sourcing, climate change, diversity and inclusion. Among these, creating economic value for its stakeholders stands out as a key material issue for UPM.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups UPM engages with:
| Stakeholder Group |
| Customers |
| Communities |
| Current and future employees |
| Governments and regulators |
| Researchers |
| NGOs |
| Suppliers |
| Investors |
| Media |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics UPM engaged with its stakeholders through customer and local community enquiries, counterparty and media screening, NGO concerns, investors’, governments’ and regulators’ agendas, and the UPM employee engagement survey.
What actions were taken by UPM to create economic value for its stakeholders?
In its 2022 Annual Report UPM reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, UPM paid EUR 1,181 million for employee wages and benefits.
- Creating economic value for providers of loans
- In 2022, UPM paid EUR 95 million to providers of loans.
- Creating economic value for shareholders
- In 2022, UPM paid EUR 693 million in dividends.
- Creating economic value for governments
- In 2022, UPM paid EUR 349 million in corporate income taxes and property taxes.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by UPM, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://user-fudicvo.cld.bz/UPM-Annual-Report-2022
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