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Carbon dioxide balance of print products - view of the paper industry - view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm Demharter, UPM 1 Friday, October 21, 2011

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Page 1: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Carbon dioxide balance of print products - view of the paper industry- view of the paper industry

ERA Annual ConferenceMunich, 18 October 2011Dr. Wilhelm Demharter, UPM

1 Friday, October 21, 2011

Page 2: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Content

• Introduction and company background

| © UPMU

• Paper and its key elements related to print media carbon footprint

• Further steps and further questions on our way forward towards common understanding and harmonisation throughout the paper and print media value chain

2 Friday, 21 October 2011

Page 3: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

UPM today

• 24,500 employees • Sales exceed 10 billion euros in 2010

- Production in 16 countries, worldwide sales network- Listed in the NASDAQ OMX Helsinki stock exchange

Energy and pulp Paper Engineered materials

| © UPMU3 February 2011

Energy and pulp Paper Engineered materials

� Hydro, nuclear and condensing power

� Biofuels development

� Pulp mills

� Plantation operations in Uruguay

� Timber

� Forestry services

� Wood & biomass sourcing

� Magazine papers

� Fine papers

� Newsprint

� Speciality papers

� Label

� Plywood

� RFID tags and inlays

� UPM ProFi composites

4,000 employees 14,500 employees 6,000 employees

Page 4: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

UPM worldwide

| © UPMU4 February 2011

Production

Extensive global sales network

Page 5: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Starting points & key findings:

• The carbon footprint of a product - Life cycle approach, thus, depends on system boundaries- Is product specific (however, how specific is “the product”?)- Is producer specific- Is country/site specific

| © UPMU

• Key elements of print products’ carbon footprint - Paper production (including relevant sub processes)- Print process (including relevant sub processes)- Logistics

• The key issues (and at the same time open questions) are- Forest management- Energy sources for the main production processes (on site & grid)- End-of-life-allocations and offsetting- Rocket science or pragmatic approach?

5 Friday, 21 October 2011

Page 6: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

CEPI’s framework: “10 toes” model of a carbon footprint for paper and board

1. Carbon sequestration in forests2. Carbon in forest products3. GHG emissions from forest product manufacturing facilities4. GHG emissions associated with wood harvesting/RCP collection5. GHG emissions associated with producing other raw materials/fuels

| © UPMU UPM6

6. GHG emissions associated with purchased electricity, steam and heat and hot and cold water

7. Transport-related greenhouse gas emissions8. Emissions associated with product use9. Emissions associated with product end-of-life

10.Avoided emissions and offsets

Page 7: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

The starting point of paper footprints

| © UPMU UPM7

Page 8: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Forest management & carbon footprint

• Sustainable forest management to ensure balanced carbon cycle- Europe: Total forest area is growing- Finland: Carbon stocks are growing (science-based ecosystem level)- Wood harvesting & fibre sourcing must not remove more carbon than is fixed in a well-

managed and regenerating ecosystem• Challenges for certain countries and ecosystems where industrial wood harvesting leads

to depletion of natural ancient forests (!)

| © UPMU

to depletion of natural ancient forests (!)

• Responsible sourcing- Control of wood/fibre/paper origin as a must - Forest certification as a well-implemented prerequisite in our paper/print sector

• There is regenerating carbon stored in paper/print products• However, as long as globally and generally agreed rules for growing

(or decreasing, respectively) carbon stocks in forests are lacking, I would be rather careful with allocating a carbon sequestration and offsetting element directly to the product specific carbon footprint

8 Friday, 21 October 2011

Page 9: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Main fossil elements of paper carbon footprint

• Fossil fuels used in - wood harvesting and collection of recovered paper, respectively- Fibre processing and paper production- Relevant supply chain processes (e.g. pigment production)- Heat/power production on-site and grid power- Transport of raw material

| © UPMU

• How can paper industry provide reliable product specific data:- UPM Data sheet “cradle to mill gate”, i.e. logistic data for “mill to customer warehouse” can be

provided on individual request

• Based on its broad product portfolio (from newsprint via magazine to wood free and speciality paper) and due to the global distribution of its mills concerning technology, fibre mix, fuel and power sources, etc.) UPM probably represents the industry diversity & average rather well

9 Friday, 21 October 2011

Page 10: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

UPM Paper Profile and carbon footprint information

• UPM product carbon footprint information available for all grades / paper machines

• See example (next three slides)

| © UPMU10 Friday, 21 October 2011

Page 11: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Product

Company

Mill

Information gathered from to

Certified environmental management system at

Environmental Management

Company systems ensure traceability of the origin of wood __ yes __ no __100% recovered paper

Environmental parameters Product composition

The figures are based on methods and procedures of measurement approved by the local (or national) environmental regulators at the production site. The figures include both paper and pulp production.

Water COD kg/tonne

AOX kg/tonne

NTot kg/tonne

PTot kg/tonne

Air SO2 kg/tonne

NOx kg/tonne

CO2 (fossil) kg/tonne

Solid waste landfilled BDkg/tonne

/tonne of final product kWh

Purchased electricity consumption E-mail

Phone

Address

Contact person

More information

Date of issue

M o r e i n f o r m a t i o n a b o u t P a p e r P r o f i l e c a n b e f o u n d o n w w w . p a p e r p r o f i l e . c o m

Anne Lihvonen

Lauttakatu

FIN-45700 Kuusankoski, Finland

+358 204 153 537

[email protected]

Rauma PM 4

UPM-Kymmene Corporation

6.6

the mill (since): ISO 14001 (2000), EMAS (2001)

0.08

0.007

80

0.03

0.1

0.5

14

21.04.2011

31.12.2010 1.1.2010

1930

LWC paper (UPM Cote, UPM Satin, UPM Satin Plus, UPM Ultra)

x

89 % of PEFC and 6 % of FSC certified fibres at the paper machine, with Chain of Custody certification.

Copies of certificates available at www.upm.com

www.upm.com

chemical pulp18%

moisture4%

binders2% mechanical

pulp42%

pigments and fillers34%

Page 12: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

UPM CARBON FOOTPRINT INFORMATION

Product LWC paper (UPM Cote, UPM Satin, UPM Satin Plus, UPM Ultra)

Company UPM-Kymmene Corporation Site Rauma PM 4

Information gathered from 1.1. 2010 to 31.12.2010

Carbon Footprint

- UPM calculates the Carbon Footprint of its paper products based on the ten elements of the Carbon Footprint Framework for Paper and Board Products developed by CEPI (the Confederation of European Paper Industries). Detailed information on the CEPI Framework can be found at www.cepi.org.

- The data used in the calculation are based on annual averages for a paper machine line.

- GHG = greenhouse gas. UPM figures refer only to emissions of fossil CO2.

Ten elements of the CEPI Framework

(See next page for remarks and explanations)

Fossil CO2

(kg/tonne of paper)

Biogenic CO2

(kg/tonne of paper)

1. Carbon sequestration in the forest 0

2. Carbon stored in the product 1070

Net sequestration of biomass carbon 1070

3. GHG emissions from pulp and paper production 80

4. GHG emissions associated with producing virgin or recovered fibre 30

5. GHG emissions associated with producing other raw materials 80

6. GHG emissions associated with purchased electricity and steam *) 280

7. Transport-related GHG emissions (excl. delivery to customer) 30

Total fossil CO2 emissions 500

8. GHG emissions attributable to product use (e.g. printing) -

9. GHG emissions attributable to end-of-life-management of products -

10. Avoided emissions -

*) The CO2 factor used for purchased power is 148g CO2 per kWh.

Carbon footprint of Rauma PM 4[kg fossil CO2 per tonne of paper]

0

100

200

300

400

500

600Transport of rawmaterials

Purchased pow er

Other raw materials

Fibre production

Pulp and paperproduction

Page 13: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Remarks and explanations to the ten elements of CEPI Framework

1. Carbon sequestration in the forest

In line with the CEPI Framework, carbon sequestration is currently not included in product level carbon footprint calculations.

For UPM, forest certification and traceability of fibre supply using certified Chain of Custodies ensures the sustainable management of forests, and the long-term sequestration of carbon in them via the process of photosynthesis.

2. Carbon stored in the product

Biogenic carbon is stored in products produced from wood fibre. The IPCC (International Panel on Climate Change) formula is used to determine the amount of CO2 that is stored in the paper product.

Through paper recycling the carbon stored in products is retained within the paper cycle.

3. GHG emissions from pulp and paper production

UPM includes data on fossil CO2 emissions from combustion of fossil fuels at pulp and paper manufacturing facilities, including that for external pulp production (production of purchased pulp).

4. GHG emissions associated with generating the supply of wood or recovered fibre

For wood fibre, this includes fossil CO2 emissions from forest management and harvesting activities.

For recovered fibre, this includes fossil CO2 emissions from the collection, sorting and processing of recovered fibre before it enters the recycling process.

5. GHG emissions associated with producing other raw materials

Includes fossil CO2 emissions generated during the manufacturing of non-wood-based raw materials (pigments or chemicals which are used in an amount above 10 kg per tonne of paper) and fuels.

6. GHG emissions associated with purchased electricity and steam

Includes fossil CO2 emissions associated with purchased electricity, steam and heat used for pulp and paper production, including that for external pulp production (production of purchased pulp)

Due to differences in fuel mix used to produce electricity there are significant differences in the emission factors used to convert grid electricity to it's equivalent CO2. UPM uses country specific emission conversion factors which are based on the real power supply to UPM mills in each respective country. The factor used is given below the table on the previous page.

7. Transport-related GHG emissions

Includes fossil CO2 emissions associated with in- and outbound transports of raw materials and final products from the paper mill, along the value chain.

At UPM, this figure includes the transportation of wood, pulp, recovered paper and pigments to UPM mills.

CO2 emissions from transportation of paper to the customer is not included since this depends on the transportation modes used and distances to specific customer locations. This part of the element can be calculated for a specific case on request.

8. GHG emissions attributable to product use (e.g. printing)

This element is not included within UPM's scope as a paper manufacturer.

9. GHG emissions attributable to end-of-life-management of products

This element is not included within UPM's scope as a paper manufacturer.

10. Avoided emissions (e.g. superior energy efficiency or carbon offsetting measures)

This element is not currently included in UPM's scope.

Page 14: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Carbon footprint of print media

• Printers and distributers to add data for their relevant steps in the value chain:

- Product specific figures for individual print shops…- … or sector specific figures for average print products?

• Neither paper industry nor the printer/publisher can allocate product specific carbon footprint figures for the end-of-life period of an

| © UPMU

specific carbon footprint figures for the end-of-life period of an individual print product:

- Default figures would be needed for this element (depending on national waste policies and waste management practices, respectively).

- Print products must not be dumped at all (e.g. in Germany), however, what’s the “correct” figure if the print product will be sold to “somewhere else”?

• All in all: - Reduction of fossil carbon emissions should be our priority on all steps of our products’

lifecycle…- …with offsetting being an option, too, if the customer/end consumer is willing to pay for it (and,

let’s be honest, only if it isn’t done against carbon emission reductions which have been existing already all the time)

11 Friday, 21 October 2011

Page 15: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Carbon footprint & standardisation

• CEPIPRINT/CEPIFINE have provided a transparent tool to provide product carbon footprint information for graphic paper

• Publication of an average figure representing the European graphic paper sector still under consideration

• ISO 14067 product carbon footprint standard development process on-going

| © UPMU

on-going• An ISO 16759 process on carbon footprint of print media started• Paper industry is following/commenting these processes based on

the existing CEPI framework• Can we expect globally harmonised answers to all open questions?• E.g.: I doubt whether these ISO processes will have the power to

fully harmonise the rules how to calculate the carbon profile of grid power globally (input from LCA community and other stakeholders)

12 Friday, 21 October 2011

Page 16: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

Supplier & customer communicationConsumer information

• In principle, the paper producer can provide company specific carbon footprint information B2B supply chain (e.g. on global/ regional/ country/ grade/ mill/ paper machine level).

• Will “the market” allow us to go for only one option or will there be different needs for different levels of information for different purposes

• Will printers and publishers e.g. apply site specific figures for

| © UPMU

• Will printers and publishers e.g. apply site specific figures for individual presses in cases where a specific print product for one customer might be printed in different countries …

• …or will an organisation like ERA provide one default figure as the average carbon footprint of a for Gravure product in Europe?

• Will we be able to just provide “simple” product carbon footprint information…

• Or will we achieve a “credible sustainability message” towards the consumer (see also other consumption areas, other media, etc.)?

13 Friday, 21 October 2011

Page 17: ERA Carbon dioxide balance of print products WD18102011 · Carbon dioxide balance of print products -view of the paper industry ERA Annual Conference Munich, 18 October 2011 Dr. Wilhelm

| © UPMU14 March 2010