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Environmental performance in 216 UPM Plattling

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 19,3 people and its annual sales are approximately EUR 1 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM The Biofore Company www.upm.com UPM Plattling UPM Plattling is located north of Plattling, a small town at the foot of the Bavarian Forest, where the Isar fl ows into the Danube. With a workforce of some 58 people and three paper machines, UPM Plattling produces up to 79, tonnes annually of uncoated (SC) and coated (LWC) supercalendered printing papers in reels and sheets for magazines, newspaper supplements, advertising brochures and sales and mail order catalogues. The organisation of UPM Plattling includes the two companies operating at the site, MD Papier GmbH and Rhein Papier GmbH. Production and administration of the two mills having already been closely interlinked for several years, so they are reporting jointly on their environmental performance in 216, too. The Plattling site was founded in the open countryside in 1982. It was originally comprised of the PM 1 paper machine to which the PM 11 was added in 1988. In 27 the mill was expanded to include Rhein Papier GmbH s PM 1 paper machine. The raw materials used for papermaking include groundwood pulp, recovered paper, chemical pulp and natural pigments. Groundwood pulp is mainly made from forest thinnings from the Bavarian Forest. All wood fi bres used in our production come from sustainable forestry. 99 of the water required for papermaking is taken from the Isar and only to a very small extent from a well on the premises. Process effl uents are cleaned in two on-site treatment plants before they are discharged back into the Isar. WITH BIOFORE Updated UPM Corporate Environmental Statement 216 UPM pulp and paper mills UPM Plattling Environmental Performance in 216 is a supplement to the Corporate Environmental Statement of UPM s pulp and paper mills (available at www.upm.com) and provides mill-specific environmental performance data and trends for the year 216. The annually updated mill supplements and the UPM Corporate Environmental Statement together form the joint EMAS Statement of UPM Corporation. The next Corporate Environmental Statement and also this supplement will be published in 218. All of the steam and the majority of the power for the production processes are generated in the mills own combined heat and power plants running on natural gas. The remainder of the power is supplied via the public grid. Production capacity Up to 79, tonnes per annum Personnel Ca. 58 Products Magazine papers (SC and LWC) UPM Max UPM Ultra UPM Cat UPM Cote UPM Smart UPM Star Certificates UPM Sol UPM Nova EMAS EU Eco-Management and Audit Scheme ISO 141 Environmental Management System Standard ISO 91 Quality Management System Standard ISO 51 Energy Management System Standard OHSAS 181 Occupational Health and Safety System Standard PEFC Chain of Custody Programme for the Endorsement of Forest Certifi cation FSC Chain of Custody Forest Stewardship Council All certifi cates can be found from UPM s Certifi cate Finder (available at www.upm.com/responsibility) For FSC products visit www.fsc.org PEFC/2-31-8 For PEFC products visit www.pefc.org Environmental labels EU Ecolabel (EU Flower) EU Ecolabel : FI/11/1 2 UPM Plattling, Environmental performance in 216

Environmental year 216 UPM Plattling has reported its environmental performance since as far back as 2, when the site successfully gained certifi cation to ISO 141 and the EU Eco-Management and Audit Scheme (EMAS). As a company of the Finnish UPM The Biofore Company, we want to demonstrate to our customers, suppliers, employees and the general public that responsible environmental protection is given high priority in our production processes. In 21, the site s energy management system was certifi ed, too. Every year, we set ourselves ambitious new environmental targets. The groupwide Clean Run campaign continued to be one of our focus areas in 216. It is aimed at ensuring environmentally friendly production without environmentally relevant incidents. The mills are audited with respect to their environmental work and supported in their further development. The Plattling mill complied with all statutory environmental requirements in 216. optimisation in 216. The effl uent treatment plant worked satisfactorily. We were able to considerably reduce the amount of fl otation sludge from the third treatment stage of the LWC line, whose dewatering and disposal involves a great deal of effort. The operation of the hydrotechnical installations, which had been outsourced to an external partner, was reintegrated at the end of 213. The integration into production allowed much improved communication on the operation of the effl uent treatment plant. In 216 too, the return to a fully continuous shift system increased the level of safety in preventing critical situations. Health and safety at work The topic of the annual health and safety day in 216 was noise. In addition, we offered preventive health care in the form of colorectal and skin cancer screening, which was very well received by our employees. Community involvement UPM Plattling supports the local fi re brigades and a sports club with donations. Moreover we regularly organize mill visits for secondary schools and universities in order to give the younger generation an understanding of UPM s sustainability concept. There were four complaints overall from the neighborhood about noise nuisance. In all of the cases, we were able to identify the sources of noise and remove them. Causes and response measures were agreed with the authorities. The innovative third treatment stage installed in the LWC effl uent treatment plant in 213, which consists of a twostage ozone treatment with subsequent biofi ltration, underwent further technical Mika Kämpe, General Manager Wolfgang Haase, Manager Environment UPM Plattling, Environmental performance in 216 3

Air Energy generation is the primary source of airborne emissions from the paper mills. Through improving the energy effi - ciency of our production lines and using nothing but natural gas as a fuel we were able to reduce emissions over the years. In April of 21, a new gas and steam turbine power plant servicing the whole site went on line, replacing eight gas fi red steam boilers which are now used as a backup source in the event of a power plant failure. Thanks to the effi - ciency of combined power and steam generation, the new power plant is much more effi cient (by up to 85 in terms of primary energy use) than steam-only boilers. Emissions from the power plant Limit value (mg/nm³) Fossil carbon dioxide, CO 2 Mean value measured (mg/nm³) 213 214 215 216 CO 1 7.2 3.6 2.9 3.1 NO X 5 (variable depending on supplementary fi ring) Emissions from the steam boiler Limit value (mg/nm³) 24.8 23.2 27.8 31.3 Mean value measured (mg/nm³) 213 214 215 216 CO 5 2.5 2.7 4.3 4.3 NO X 1 77.6 71.6 71.6 72.4 Dust As the method for calculating the NO X load of the power plant was revised in 212, this was set as the new reference year. The further reduction of the CO value was achieved by operating the plant in more favourable load conditions and without major disturbances. The NO X value increased slightly, in exchange for a decrease of CO emissions. Depending on the combustion temperature, only one of the two emission values in the gas turbine can be optimised. SO 2 and particulate emissions are computed from the amount of gas burnt, rather than measured. There were no deviations from the permit limits. 12 1 8 6 4 2 12 1 8 6 4 2 12 1 8 6 4 2 Carbon monoxide, CO Nitrogen oxides, NO X 12 1 8 6 4 2 UPM Plattling has set itself the target to further reduce specifi c CO 2 emissions by effi cient energy use. To this effect several measures were implemented in 216. For instance, we reduced energy consumption in groundwood pulping and do no longer use some steam boilers in holding mode. 12 1 8 Sulphur dioxide, SO 2 6 4 2 All graphs show the specific emissions per tonne of paper, in comparison with 212. 4 UPM Plattling, Environmental performance in 216

Water UPM Plattling drew 99 of the water required for the production process from the Isar, with the remaining 1 to cover temporary demand peaks coming from a well on the mill premises. In a modern process water treatment plant, particulate contaminants are removed from the river water and water hardness is reduced. The process water is fi rst used for cooling and then for the paper production process. We were able to reduce our specifi c water consumption by 6. The mill s joint effl uent treatment plant for the LWC and SC production lines operated trouble free throughout the whole year. There were no violations of permit limits. We were able to bring down effl uent volume by successfully implementing measures on PM 1. The COD and BOD 5 concentrations in the effl uents discharged from the treatment plant were slightly higher than in the previous year. This was due to the lower effl uent volume which, with effl uent load remaining unchanged, leads to slightly higher concentrations. The treatment capacity of our plants has permanently improved since the installation of the ozone-stage in 213. Following changes in terms of permit and technical issues the year 212 was set as the reference year for reporting emissions. Emissions from the joint effluent treatment plant Chemical oxygen demand, COD Biological oxygen demand, BOD 5 Nitrogen, N (Inorganic) 5 4 3 2 1 25 1 2 8 15 6 1 4 5 2 Phosphorus, P Adsorbable organic halogen compounds, AOX Specific waste water m 3 /t 2,5 2, 1,5 1,,5 1,,8,6,4,2 2 15 1 5 Limit value Waste In keeping with the concept of circular economy, the majority of production waste is recycled locally. Hazardous wastes are forwarded exclusively to specialised waste management companies to be disposed of in accordance with legal requirements. The specifi c volume of waste corresponded to that in the previous year. For another year in a row we were able to reduce the amount of hazardous waste, namely by 9. With 1 the recovery rate in 216 remained on the same very high level as in previous years. No waste went to landfi ll. UPM Plattling, Environmental performance in 216 5

Environmental parameters 216 The fi gures related to production as well as raw material and energy consumption are published as aggregated fi gures on group level in the UPM Corporate Environmental Statement. MD Papier GmbH (LWC) Rhein Papier GmbH (SC) Production capacity Paper Up to 79, tonnes (3 paper machines) Raw materials and additives Energy Emissions to air Water intake Discharges to water Waste* Recovered paper Roundwood Chemical pulp Pigments Process chemicals Operating supplies Fossil fuels Purchased power Carbon dioxide, CO 2 (fossil) Nitrogen oxides, NO X Carbon monoxide, CO Sulpur dioxide, SO 2 Particulate matter Process water Cooling water Effl uent volume Chemical oxygen demand, COD Biological oxygen demand, BOD 5 Phosphorus, P (total) Nitrogen, N (inorganic) Adsorbable organic halogen compounds, AOX Total volume of which Deinking sludge Fibre residues Biosludge Bark and wood residues Others Hazardous waste Recovery rate (total) See UPM Corporate Environmental Statement for more information 1 See UPM Corporate Environmental Statement for more information 227,132 t 83. t 15.3 t 2.3 t.14 t 185,31 t 65.6 t 8.5 t 1.8 t.11 t 5,979,65 m 3 3,999,862 m 3 m 3 m 3 91,718 t 23,697 t 11,548 t 13,672 t 4,262 t 2,539 t 45.5 t 1 8,638,15 m 3 2,1 t 89.5 t 3.1 t 24.3 t 1.5 t 135,123 t t 6,876 t 2,272 t 16,966 t 1,1 t 65.4 t 1 Size of mill area Built on or sealed 15.64 ha 14.73 ha * Including moisture 6 UPM Plattling, Environmental performance in 216

Performance against targets in 216 Targets Target achieved? Comments Water Reduce specifi c fresh water consumption on PM 1 by.5 l/kg No Fresh water consumption remained on a similarly good level as in the previous year. Water and air Comply with Clean Run provisions Yes There were neither incidents with negative environmental impacts nor violations of limit values. Raw materials Reduce material losses on PM 1 by 1 in comparison with 214 on PM 1 and PM 11 by 2 Chemical use Continue exploring ways to reduce COD load of effl uents from bleaching groundwood pulp Reduce share of synthetic binding agents by 2 Yes No Yes No Material losses were reduced by 2. It was not possible to implement the planned measures due to process-related reasons. The project was continued. Owing to a loss in quality, the amount of synthetic binding agents could be reduced by only 1. Energy Reduce energy consumption by 1, MWh/a Yes We were able to reduce energy consumption beyond our target through effi ciency improvement and modifi cations in the production process. Current targets Unless otherwise stated, the reference year is 216 Targets and measures Deadline Department responsible Water Reduce specifi c fresh water consumption on PM 1 and PM 11 by.5 l/kg 12/217 Production Water and air Comply with Clean Run provisions 12/217 Production, Environmental Management Raw materials Reduce material losses on PM 1 and PM 11 by 1 in comparison with 216 12/217 Production Chemical use Continue exploring ways to reduce COD load of effl uents from bleaching groundwood pulp 12/217 Groundwood Pulping Energy Reduce energy consumption by 5, MWh/a 12/217 Groundwood Pulping, Production, Energy Production Environmental verifier s declaration on verification and revalidation activities REG.NO. FI - 58 Environmental verifier, Astrid Günther (DE-V-357), acting for TÜV NORD CERT Umweltgutachter GmbH, licensed for the scope NACE Code 17.12 (papermaking), declares to have verified whether the site UPM Plattling (MD Papier GmbH and Rhein Papier GmbH) in 94447 Plattling, Nicolausstrasse 7, Germany, as indicated in the updated Environmental Statement 216 of the mentioned site (registration number FI-58), meets all requirements of Regulation (EC) No 1221/29 of the European Parliament and of the Council of 25 November 29 on the voluntary participation by organisations in a Community Eco-Management and Audit Scheme (EMAS). By signing this declaration, I declare that: the verification and validation has been carried out in full compliance with the requirements of Regulation (EC) No 1221/29, the outcome of the verification and validation confirms that there is no evidence of non-compliance with applicable legal requirements relating to the environment, the data and information of the updated Environmental Statement 216 of UPM Plattling (MD Papier GmbH and Rhein Papier GmbH) reflect a reliable, credible and correct image of all the activities of UPM Plattling (MD Papier GmbH and Rhein Papier GmbH) within the scope mentioned in the updated Environmental Statement 216. This document is not equivalent to EMAS registration. EMAS registration can only be granted by a Competent Body under Regulation (EC) No 1221/29. This document shall not be used as a stand-alone piece of public communication. Plattling, 6 April 217 Astrid Günther Environmental verifier DE-V-357 TÜV NORD CERT Umweltgutachter GmbH UPM Plattling, Environmental performance in 216 7

UPM Plattling MD Papier GmbH Nicolausstrasse 7 94447 Plattling Germany Tel. +49 9931 52- Fax +49 9931 52-13 Rhein Papier GmbH Operating Site Plattling Nicolausstrasse 7 94447 Plattling Germany Tel. +49 9931 8966- Fax +49 9931 8966-59 For further information, please contact: Mika Kämpe General Manager Tel. +49 9931 52- www.upm.com Wolfgang Haase Manager Environment Tel. +49 9931 52-55 E-mail: info.plattling@upm.com 4/217