Listed as industry leader in the World and European Dow Jones Sustainability Indices (DJSI) for 2015 – 2016, UPM is the only company in the Paper and Forest industry sector to be included in both of these indices.
For the fourth year in a row, UPM has been included in the DJ Sustainability Indices based on a
systematic corporate sustainability analysis conducted by investment specialist RobecoSAM.
The Dow Jones Sustainability Indices track the stock performance of leading sustainability-driven companies and help investors identify and measure these companies in terms of Environmental,
Social & Corporate Governance (ESG) criteria.
Nearly 3,500 publicly traded companies were invited to report on their sustainability practices this year, with 317 companies subsequently listed in the World Index and 162 in the European Index.
“The fact that UPM has been consistently recognised in consecutive years illustrates our commitment to responsible conduct and our ability to keep pace with a rapidly changing world. It shows that responsibility is not a passing fad or marketing gimmick for us, but part of our basic nature,” explains Sami Lundgren, Director, Ecolabels and Reporting at UPM.
Sustainable investment is booming
But why is it important to be listed on the Dow Jones Sustainability Indices? “Firstly, it proves that our Biofore strategy of integrating sustainability into all business operations really works. And
secondly, it makes our sustainability story much more credible when an independent third party ranks us high. We are walking the talk,” Sami says.
The popularity of sustainable investment is also increasing. Traditional financial and business performance is getting intertwined with environmental, social, and corporate governance performance.
Sustainable investment is perceived to increase the probability of attractive returns and reduce the associated risk. Investors can make sound portfolio choices using the Indices as benchmarks.
Pulp plays a prominent role
The Dow Jones Sustainability Indices consist of industry groups that are subdivided into industry sectors. The Paper and Forest industry sector led by UPM is part of the Materials Industry Group.
Although UPM was evaluated at company level, which includes all of the company’s business areas, many of the most critical categories in RobecoSAM’s sustainability assessment have a direct link to pulp and its main raw material, wood. These included topics such as supply chain management, sustainably managed forests and plantations, ecosystem services, environmental reporting, human capital development and social impact on communities. In all of these UPM was evaluated as best in industry.
“Pulp users can use the DJSI information in their own decision making. Who wouldn’t choose a partner that has, for example, industry-best scores in ecosystem services and can offer legal and certified raw materials? Especially when customers can then use the chosen eco-labels in their own marketing”, Sami reasons.
He nevertheless emphasises that there is always room for improvement.
“We need to continue our work of setting and achieving economic, environmental and social targets, improving measurability, and applying safe working practices. We must keep our minds and eyes open and continue generating value.”