UPM was today announced as the sector leader for the materials industry in CDP's 2014 global forests report, Deforestation-free supply chains: from commitments to action. UPM received the sector leader position for the second year in a row.
The report analyses disclosures of 152 companies from around the world, representing a market capitalization of over US$3 trillion, and it has been produced on behalf of 240 investors who together represent US$15 trillion in assets by CDP, the international NGO that drives sustainable economies.
The companies were asked to disclose their exposure to deforestation risks through their use of four commodities that are responsible for most deforestation (cattle products, palm oil, timber products and soy).
"Responsibility is the core of UPM's Biofore strategy, and that's why knowing the fibre sources and supply chains is essential for us. With its chains of custody system, UPM ensures full traceability of the origin of wood worldwide", says Päivi Salpakivi-Salomaa, Vice President, Environment and Responsibility, UPM. "UPM considers forest certification to be an excellent tool for promoting sustainable forestry. Today 80% of the wood used is certified and the target is to grow the percentage up to 85% by the year 2020", Salpakivi-Salomaa tells.
Paul Simpson, Chief Executive Officer at CDP, says: "Companies that regularly respond to CDP's forests program are now identifying many more of the opportunities available to them, including securing their supply chain against the risks associated with deforestation and commodity sourcing. This in turn is helping to secure shareholder value.
Different parts of the supply chain are moving at different rates to tackle this issue. What is clear is that leading companies, as identified by CDP, are those that are bringing their supply chains with them on this journey."
