UPM Annual Report 2021

CONTENTS

CREATING A POSITIVE IMPACT IN DEMANDING PACKAGING

BEYOND FOSSILS

STRATEGY

BUSINESSES

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20

36

The global market for food packaging was USD 305 billion in 2019, and Statista predicts that it will rise to USD 465 billion by 2027. Food packaging safety is becoming increasingly important. At the same time, consumer behaviour has changed, moving towards takeaway and home deliveries, both from restaurants and retail stores. We are creating a positive impact by producing safe, renewable and recyclable packaging materials for various end uses.

UPM FIBRES

38

BIOFORE STRATEGY

22

CEO REVIEW

6

UPM ENERGY

44

SPEARHEADS FOR GROWTH​

24

THIS IS UPM

8

UPM RAFLATAC

​46

ENSURING PERFORMANCE

26

IT’S A MATERIAL WORLD

10

Read more about our positive impact on UPM’s website

UPM SPECIALTY PAPERS

48

INNOVATING FOR THE FUTURE​

28

SUSTAINABLE CHOICES

12

UPM COMMUNICATION PAPERS

50

VALUE​FROM RESPONSIBILITY

30

KEY FIGURES

14

UPM PLYWOOD

52

2030 RESPONSIBILITY TARGETS

32

EVENTS AND RECOGNITIONS

16

UPM BIOFUELS

54

RISKS AND OPPORTUNITIES

34

CREATING SHAREHOLDER VALUE

18

UPM BIOCHEMICALS

56

UPM BIOMEDICALS

58

UPM BIOCOMPOSITES

59

HOWWE EXECUTE OUR STRATEGY

60

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2021

118

100

62

REPORT OF THE BOARD OF DIRECTORS FINANCIAL STATEMENTS

120

CREATING VALUE WITH PEOPLE

64

ENABLING GROWTH

102

RESPONSIBLE FOUNDATION OF OUR BUSINESS ACTIONS FOR ENVIRONMENT

76

REMUNERATION

109

151

BOARD OF DIRECTORS​

112

AUDITOR’S REPORT

221

88

GROUP EXECUTIVE TEAM

114

OTHER FINANCIAL INFORMATION

225

OUR SOCIETAL AND

98

ASSURANCE REPORT ON RESPONSIBILITY

116

ENVIRONMENTAL IMPACTS

About this report This annual report provides a comprehensive overview of our performance in 2021. All material information has been integrated into this one, third-party assured entirety. The Reports online

PDF version for download www.upm.com, UPM Corporate Governance Statement 2021, UPM Remuneration Report 2021, Accounts for 2021 in XBRL format, UPM GRI Content Index 2021, SASB content index 2021, UPM material balance 2021, UPM carbon inventory 2021, Interactive Analyst tool for financial figures and responsibility data. More about our responsibility agenda on www.upm.com/responsibility

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UPM ANNUAL REPORT 2021