UPM Accelerates Decarbonization in 2025

UPM Adhesive Materials label stock rolls in production as the company advances its climate and decarbonization goals.

UPM reported significant climate progress in 2025, including lower emissions and expanded sustainability initiatives across its businesses. Photo: UPM.

Sustainability

UPM reported significant progress in its decarbonization journey in 2025 across its graphic papers and adhesive materials businesses, highlighting continued momentum toward its 2030 climate targets.

In its latest climate report, UPM Communication Papers announced a 38% reduction in fossil CO₂ emissions (Scopes 1 and 2) per tonne of paper produced in Europe compared with 2023. Average carbon intensity has now fallen to 310 kg of CO₂ per tonne, down from 490 kg two years earlier, demonstrating tangible progress toward the company’s target of 100 kg by 2030.

The improvement was driven by increased use of renewable electricity, expanded electric boiler capacity, and gains in energy efficiency and logistics. Data published in the report is independently verified, providing customers with reliable information to support their own climate reporting efforts.

“Our actions are delivering tangible results, translated into verified emission reductions that provide value to our customers,” said Gunnar Eberhardt, Executive Vice President of UPM Communication Papers.

At the same time, UPM Adhesive Materials highlighted substantial progress in its Climate Review 2025, reporting a 58% reduction in Scope 1 and 2 emission intensity compared with its 2015 baseline. The business is now approaching its target of a 65% reduction by 2030.

Beyond its direct operations, the division continues to address Scope 3 emissions by expanding collaboration with suppliers. In 2025, most key suppliers provided detailed product carbon footprint data, improving traceability and the accuracy of environmental assessments throughout the value chain.

UPM Adhesive Materials also continued to support customers through its UPM Label Life service, which provides verified life cycle assessments and carbon footprint data covering approximately 94% of its product portfolio by sales volume. At the same time, the development of recycling-compatible labeling solutions and the expansion of the RafCycle™ program further strengthened the company’s circular economy approach.

Another notable milestone is that the division achieved one of its 2030 targets ahead of schedule. Since the end of 2023, 100% of purchased paper raw materials have been certified under recognized third-party forest certification schemes.

Through these two reports, UPM highlights an integrated approach to decarbonization that combines operational emission reductions, supply chain engagement, and the development of lower-carbon solutions.

The results demonstrate that UPM is advancing both the reduction of its direct emissions and the transparency of environmental data provided to customers. These two priorities remain central to the company’s climate strategy as it works toward its 2030 objectives.

UPM is a material solutions company that develops renewable fibre-based products, advanced materials, decarbonization solutions, and communication papers. The company employs approximately 15,100 people worldwide and generated annual sales of approximately €9.7 billion in 2025. UPM shares are listed on Nasdaq Helsinki.