Extreme weather conditions will increase globally due to the magnitude of climate change. The change in variables like heavy rain falls, wind and snow damages or drought are posing a threat to the balance of nature. Droughts have already increased the risk for forest fires in many areas.

 

Together with the Finnish Meteorological Institute (FMI) UPM is actively doing research on how climate change will affect forestry and wood sourcing and thus UPM’s business operations in the long run.

 

"We will utilise these results in developing our business operations. At the same time all of this is valuable information we can share with our investors and our other important stakeholders," explains Tuomas Niemi, Manager for Reporting and Standards at UPM.

 

The TCFD recommendations (Task Force on Climate-Related Financial Disclosures) are a voluntary tool for companies. With the TCFD recommendations companies can disclose what risks climate change and the new legislation related to it mean for them in the long run. In the future, alongside the TCFD recommendations, EU legislation will possibly obligate companies to disclose how climate change impacts their business operations.

 

"The Finnish Meteorological Institute’s report will be completed in May. It will help us prepare for future reporting requirements. Risk evaluation in particular is important for companies whose raw material procurement, supply chain, logistic operations and steady mill operation are subject to climate risks", Niemi states.

 

"In addition, new business opportunities will pop up for companies that provide solutions for decreasing carbon dioxide emissions or adapting to the climate change," he continued.