UPM Annual Report 2021

BEYOND FOSSILS

UPM

STRATEGY

BUSINESSES

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2021

EVENTS 2021

LEADER IN RESPONSIBILITY

Our consistent responsibility efforts have received recognition from several third parties.

UN Global Compact LEAD : A Global Compact LEAD company for demonstrating world-class commitment to corporate responsibility. We are one of 37 companies globally—the only forest-industry company and Finnish company participating. Dow Jones Sustainability Index : The only company in the forest and paper industry in the Dow Jones European and World Sustainability Indices (DJSI) for 2021–2022. MSCI ESG ratings : An AAA rating in the assessment. MSCI ESG Research provides MSCI ESG ratings on global public companies, according to each company’s exposure to industry-specific ESG risks and its ability to manage those risks relative to its peers. CDP Programme : Leadership position in CDP Forests for preventing deforestation and CDP Water for water security. A good score in climate change category. S&P Global's Sustainability Yearbook : Gold Class distiction in The Sustainability Yearbook 2022 by S&P Global as one of the top-scoring companies in our industry. EcoVadis : The highest possible Platinum level for our responsible performance for which only 1% of over 75,000 companies assessed globally attain. Bloomberg Gender-Equality Index (GEI) : UPM is among the 418 public companies globally and one of the two Finnish companies in this index. The GEI lists the companies most committed to transparency in gender reporting and advancing women’s equality.

JANUARY UPM Raflatac scales up its linerless business and builds a new production line in Nowa Wieś, Poland 19

MARCH UPM issues a green bond of EUR 500 million 15

OCTOBER European Commission's competition authorities conduct an unannounced inspection at UPM’s premises concerning companies in the wood pulp sector 12

MAY UPM announces it will close unexplained gaps in pay 7 UPM announces the sale of Shotton paper mill in the UK to Eren Paper Ltd. and newsprint production ends in September 14 Winfried Schaur is appointed Executive Vice President, Technology, and Mika Kekki is appointed Executive Vice President, UPM Plywood 20

UPM starts the basic engineering phase of a next generation biofuels biorefinery 28

UPM launches UPM BioMotion™ renewable functional fillers to significantly reduce CO₂ footprint and weight of rubber and plastics applications 14

FEBRUARY UPM joins The Climate Pledge 17

NOVEMBER UPM is listed in the Dow Jones European and World Sustainability Indices (DJSI) for 2021–2022 as the only company in its industry 15

JUNE German Federal President Frank-Walter Steinmeier visits the UPM Biochemicals project site in Leuna 23

DECEMBER UPM Plywood and UPM Timber sign collective labour agreement with the Industrial Union 10 UPM Plywood announces a EUR 10 million investment in the Joensuu plywood mill 13 The Paperworkers’ Union issues a strike announcement for several UPM businesses in Finland, the strike starts at the mills on 1 January 2022 14

SEPTEMBER The UN recognises UPM as the only forest industry representative and the only Finnish company in the Global Compact LEAD network 20 Massimo Reynaudo is appointed Executive Vice President, UPM Communication Papers 23 UPM Raflatac introduces RAFNXT+ as the world’s first label material to be certified as a CarbonNeutral® product 28

UPM announces its sawmills are powered entirely by renewable energy 22

16

17

UPM ANNUAL REPORT 2021

UPM ANNUAL REPORT 2021