UPM is among the investments of Norges Bank Investment Management (NBIM), one of the biggest investors in the world. In 2015, NBIM published a revised version of the “Water Management – Expectations to companies” guidance. The purpose of the guidance is to express how NBIM, as a financial investor, expects companies to manage the challenges and opportunities surrounding water resources.
UPM was consulted by NBIM for input and discussions in the development of the guidance, as UPM has been one of the top performers in NBIM’s framework assessing water disclosures in companies’ reporting. This co-operation is a good example of how the investor community and companies have started to promote best practices in sustainability topics. Integrating the issue of responsibility more thoroughly into investment decisions improves understanding of risks and opportunities and brings added value to the company and to the society.
Water risk analysis is relevant to UPM’s business strategy and operational footprint. The company reports several water-related investment programmes to improve energy and water efficiency. UPM’s most water-intensive production plants are located in areas where there is sufficient water available. High-quality fresh water is a precondition for high-quality paper products, for example.
As an example, UPM has mapped all of its 22 pulp and paper mills on the Water Stress Index (WSI) maps, and report s water stress risk exposure per mill. UPM reports on water-related risks in its supply chain. UPM discloses several water performance indicators at corporate and mill levels. The indicators include volume of process wastewater, as well as emissions to the water courses.