Story | 01/23/2025 14:13:33 | 10 min Read time

Companies can truly achieve their sustainability goals only if their products’ journey to consumer is transparent

There is significant demand from consumers and brand owners for more products made with sustainable materials. But it doesn’t end there.

Knowing where and how products are made – their environmental impact, the labor practices and the journey from source to consumer – are increasingly part of a brand’s promise and becoming more important to the consumers. 

In addition, regulatory pressure is also intensifying with new directives like the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive, as well as the EU Deforestation Regulation, which are pushing companies and value chains for more transparent information sharing.  

As Liisa Ranta, Director of Sustainability and Market Development at UPM Biorefining, states: “UPM is committed to creating an accountable, sustainable bioeconomy by leveraging various biomass streams – such as wastes, residues and wood from sustainably managed forests – in their highest value to create biochemicals and biofuels.”

For UPM, third party-verified certifications and labels are key to proving and communicating the sustainability of our products and solutions. These certifications help demonstrate the quality of our solutions, reinforcing our commitment to sustainability.

The role of transparency in today’s supply chains cannot be overstated

Transparency is the cornerstone of building resilience, ensuring credibility of business operations and fostering consumer trust in renewable solutions. Through good governance, accountability and openness, businesses and consumers alike can better understand how goods are produced and distributed.

As demand for biofuels and biochemicals grows, driven by the global shift to a low-carbon economy, the trade and production of these materials becomes even more international and complex. The increasing geographical spread and diversity of business practices create new risks, complicating supply chain management and making it even more critical.

“Robust verification and assurance methods are crucial in delivering supply chain accountability. Certifications help mitigate environmental, social and governance risks, but to fully realize their potential we must strengthen the overall certification requirements and further enhance transparency to trace the origin and the whole supply chain, regardless the country of origin,” Ranta points out.

 
 
 

Robust verification and assurance methods are crucial in delivering supply chain accountability, says Liisa Ranta, Director of Sustainability and Market Development at UPM Biorefining.

We know our suppliers and the origins of our feedstock

What is transparency from our businesses’ perspective? For us it means that we always know the origin of our feedstock and we know our suppliers well. An equally important aspect is how transparently we define the footprint of our products. Data must be reliable and transparent to start with and available for verification.

One of our groundbreaking achievements is the development of the world’s first wood residue-based advanced biofuels production concept at the UPM Research Centre. The UPM Lappeenranta Biorefinery produces 130,000 tonnes of advanced biofuels annually since 2015, and it is the first commercial-scale biorefinery to produce renewable wood-based diesel and naphtha (UPM BioVerno™) using upcycled residue from pulp mills. UPM BioVerno™ is made from wood-based crude tall oil originating from pulp production. It is a prime example of how a residue can be upcycled into high-value, renewable products. By making use of residue streams and upcycling them, existing sustainably produced raw materials are put to efficient use by UPM.

 
 

UPM Lappeenranta Biorefinery, the world’s first to produce wood-based advanced biofuels, began commercial production in Finland ten years ago. 

 

UPM Biofuels has sustainability chain of custody certifications in place. The UPM BioVerno™ products are certified with International Sustainability and Carbon Certification (ISCC) a voluntary scheme for fuels and chemicals traceability and chain of custody. In addition, national market specific requirements are covered with national schemes such as Finnish national sustainability certification scheme or Dutch Double Counting scheme.  

“In practice, every batch of advanced biofuels comes with sustainability declaration, detailing everything from the origin of the feedstock to the greenhouse gas (GHG) reduction levels compared to fossil fuels. This is an official document that confirms our compliance,” explains Ranta.  

Pioneering next generation biochemicals

UPM’s next frontrunner facility is the UPM Leuna Biorefinery, that is being ramped up in 2025. The biorefinery will turn hard wood into next generation biochemicals: bio-monoethylene glycol (UPM BioPura™) and lignin-based renewable functional fillers (UPM BioMotion™). In addition, the €1,180 million biorefinery will produce a bio-glycol mix and industrial sugars. The total annual capacity of the biorefinery will be 220,000 tonnes.

The Leuna Biorefinery sources the wood from sustainably managed forests around the Biorefinery. Certification schemes ensure traceability, biodiversity and social sustainability. All the beech wood used by UPM Biochemicals is 100% traceable with chain of custody system. UPM Leuna Biorefinery has ISCC PLUS, FSC™ and PEFC* certification in place including all the main products of UPM Leuna. 

 
 

UPM’s next frontrunner facility, the UPM Leuna Biorefinery in Germany, is being ramped up in 2025.

Industry-wide goals: data reliability and transparency

For transparency to become a norm, it’s not enough for individual companies to act alone. The entire industry must prioritize the development of robust verification and assurance methods, ensuring data transparency at every level. This is why industry collaboration is so vital.

UPM is actively involved in developing verification and assurance methods in certification schemes as well as involvement in industry associations and initiatives. UPM is involved for example in industry initiatives Together for Sustainability (TfS) and the Renewable Carbon Initiative (RCI). TfS is a global coalition of chemical companies committed to improving sustainability practices across their supply chains, while RCI focuses on accelerating the transition from fossil-based carbon to renewable carbon in all organic materials and chemicals.

“We need to pay special attention to credibility of verification approaches and the transparency of supply chain related data in the whole industry. To strengthen transparency across the industry, we must enhance the quality of the verifications and ensure they are backed by adequate resources. At the same time, we must simplify systems where possible and integrate risk management into certification processes,” Liisa Ranta concludes.

In the end, the goal is clear: to create a more sustainable future by building transparent, accountable, and traceable supply chains.


*Licence numbers: FSC-C210095 and PEFC/04-31-3869

 
 

Activities in voluntary certification schemes and standardization associations

ISCC and RSB

UPM is a member of ISCC and RSB, voluntary schemes for fuels and chemicals traceability and chain of custody - and working to strengthen the credibility of the standards.

International Sustainability and Carbon Certification (ISCC)

Supporting sustainable, fully traceable, deforestation-free and climate-friendly supply chains. Read more: https://www.iscc-system.org/ 

Roundtable on Sustainable Biomaterials (RSB)

Providing sustainability and biomaterials certification for bio-based feedstock, biomass-derived material and any advanced fuels, as well as complete supply chains. Read more: https://rsb.org/ 

FSC AND PEFC

Forest Stewardship Council -  FSC™

FSC™ is an independent, non-profit organization that protects forests for future generations. FSC is an open, membership-led organization that sets standards under which forests and companies are certified. UPM is a member of FSC International.

Programme for the Endorsement of Forest Certification – PEFC 

PEFC (Programme for the Endorsement of Forest Certification schemes) is an international forest certification system that promotes environmentally, socially and economically sustainable forestry throughout the world. UPM is an international stakeholder member in PEFC International.

 
 

Recognitions on responsibility

Carbon Disclosure Project (CDP)

UPM has been recognised by the global environmental non-profit organisation CDP for its leadership in corporate transparency and performance on climate change and forests, securing a place on the annual 'A List' in 2023. Based on data reported through CDP's 2023 Climate Change and Forests questionnaires, UPM is one of a small number of companies to achieve a double 'A' out of more than 21,000 companies assessed. For the water questionnaire, UPM received an A-, which is also a leadership position.

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EcoVadis responsibility assessment

EcoVadis has awarded UPM a platinum score based on the company’s sustainability performance in four categories: Environment, Labour and Human Rights, Ethics and Sustainable Procurement. Only about one percent of the 130,000 global companies assessed received a platinum rating. UPM scored 85/100 in the Manufacture of Pulp, Paper, and Paperboard industry.

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Dow Jones World and European Sustainability Indices

UPM has been listed as the only forest and paper industry company in the Dow Jones Global and European Sustainability Indices (DJSI) for the years 2024-2025. The indices cover environmental, social and governance aspects of responsibility.

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