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UPM updates supplier and third-party code to strengthen responsible business practices

 Monday, September 1, 2025

UPM updates supplier and third-party code to strengthen responsible business practices

UPM has announced an update to its Supplier and Third-Party Code, along with a new practical guide designed to provide clarity on everyday decisions related to responsible business conduct. This update is part of UPM’s ongoing commitment to ethical practices and responsible operations, responding to the evolving regulatory landscape and the needs of its partners. UPM continues to prioritise long-term, profitable operations built on integrity and responsibility, with a clear expectation that all suppliers and partners meet these high standards.

Kaisa Vainikka, UPM’s Social Responsibility Director, explained, “Supply chain plays a significant role in responsibility at UPM. The Code is an important part of our responsible supply chain management. With the Code, we want to share our expectations transparently. It defines the minimum level of responsible business on which we can build cooperation with our partners.”

The updated Code is a direct response to changing EU-level responsibility regulations and a shifting business environment. UPM has consistently reviewed and updated the Code to ensure that its standards remain relevant and aligned with the evolving regulatory requirements and stakeholder expectations. The goal is to support UPM’s partners in navigating these changes and better understanding what responsible conduct looks like in practice.

Vainikka continued, “Above all, we wanted to ensure that our responsibility principles are as clear as possible, up-to-date, and aligned with the evolving EU legislation and stakeholder expectations. The updated Code supports our partners in preparing for regulatory changes and understanding what responsible conduct means in everyday operations, such as responsibility risk assessments, promoting social responsibility, or advancing human rights.”

Clarifying Responsibility Standards

The recent update included a comprehensive review of both the Supplier and Third-Party Code and the accompanying practical guide. The Code outlines the minimum standards for responsible business conduct, which all suppliers and third parties must adhere to before beginning any cooperation with UPM.

To make these standards more accessible, the practical guide offers concrete examples and best practices, helping to translate the principles into tangible actions. The guide is now available in an easily accessible online version, making it simpler for suppliers to engage with and implement the requirements.

Vainikka highlighted the importance of accessibility for all actors in the supply chain, stating, “Responsible business practices must not be a privilege for the few; they must be possible for all actors in a value chain. The practical guide is one way to support especially small and medium-sized companies in this development. When the requirements are understood, it becomes easier to implement them further down in the suppliers’ own supply chain.”

The updated Code has placed a particular focus on social and environmental responsibility. The language was simplified to ensure greater clarity and ease of understanding, enabling smoother implementation by suppliers at all levels of the supply chain. This simplification is expected to aid small and medium-sized enterprises (SMEs) that may face challenges in meeting such standards.

Integrating the Code into Daily Operations

UPM’s sourcing professionals play a key role in integrating the Code into everyday operations. During the tendering process and contract negotiations, these professionals will discuss the requirements of the updated Code with potential suppliers. This dialogue will continue throughout the duration of long-term partnerships, ensuring that responsibility standards remain a core part of the business relationship.

In addition to the Code and guide, UPM is investing in comprehensive training to ensure that its employees and suppliers understand the new standards. An internal training programme on the updated Code is scheduled for launch in August for UPM employees who work directly with suppliers.

Kimmo Ståhlberg, UPM’s Supplier Quality and Sustainability Director, explained, “We are also planning a new training for suppliers. Like the practical guide, training can help especially smaller companies in our supply chain to understand what the different requirements mean in practice.”

This proactive approach aims to bridge knowledge gaps and ensure that all parties in the supply chain are well-equipped to meet UPM’s responsibility standards. By providing these resources, UPM seeks to create a supportive environment where even the smallest suppliers can comply with high standards of responsible business conduct.

Building Responsible Operations Together

UPM’s commitment to responsible operations is not based on a top-down approach but on collaboration with its partners. UPM emphasises the importance of open dialogue when it comes to understanding and implementing responsibility requirements.

“We want to maintain an ongoing discussion about what responsible and ethical operations mean in practice. We don’t have ready-made answers for everything, and the intention is not to dictate, but to develop together,” Ståhlberg added.

This collaborative mindset reflects UPM’s belief that responsible operations are built together, not alone. By fostering open communication and offering guidance and support, UPM ensures that all partners, regardless of size, can meet the company’s high standards of integrity and responsibility.

As UPM continues to adapt to evolving regulations and expectations, its updated Supplier and Third-Party Code will serve as a crucial tool in ensuring that all business practices are responsible, transparent, and aligned with ethical standards. The company’s emphasis on continuous dialogue and support highlights its dedication to long-term, sustainable relationships with its partners, grounded in shared values of responsibility and integrity.

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