UPM Annual Report 2022

UPM

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2022

CONTENTS

FUTURE BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

4

34

58

We take action every day to create a future beyond fossils.

CEO REVIEW

6

UPM FIBRES

36

ACTIVE DIALOGUE WITH STAKEHOLDERS

60

THIS IS UPM

8

UPM ENERGY

42

ENGAGING EMPLOYEES 64 DIVERSE AND INCLUSIVE WORKING CULTURE 68 SAFETY FIRST 70 EMBEDDING HUMAN RIGHTS IN EVERYTHING WE DO 72 COMMITTED TO COMPLIANCE 74 ENSURING A RESPONSIBLE SUPPLY CHAIN 78 CONTRIBUTING TO SOCIETY THROUGH TAXES 80 CLIMATE-POSITIVE FORESTRY 82 ENHANCING BIODIVERSITY 84 TAKING CLIMATE ACTION WITH ENERGY 86 RESPONSIBLE WATER USE 90 ADVANCING A CIRCULAR BIOECONOMY 92 SUSTAINABLE PRODUCT LIFECYCLE 96 OUR SOCIETAL AND ENVIRONMENTAL IMPACTS 98

WHAT THE WORLD NEEDS

10

UPM RAFLATAC

44

HOW WE MAKE A POSITIVE IMPACT

12

UPM SPECIALTY PAPERS

46

KEY FIGURES 2022

14

UPM COMMUNICATION PAPERS

48

2022 HIGHLIGHTS AND RECOGNITIONS

16

UPM PLYWOOD

50

CREATING SHAREHOLDER VALUE

18

UPM BIOREFINING - UPM BIOFUELS

52

BIOFORE STRATEGY

20

UPM BIOREFINING - UPM BIOCHEMICALS

54

ACCELERATING GROWTH

22

UPM BIOREFINING - UPM BIOMEDICALS

56

ENSURING PERFORMANCE

24

UPM BIOREFINING - UPM BIOCOMPOSITES

57

INNOVATING FOR THE FUTURE​

26

VALUE​FROM RESPONSIBILITY

28

2030 RESPONSIBILITY TARGETS

30

RISKS AND OPPORTUNITIES

32

GOVERNANCE

ACCOUNTS FOR 2022

100

118

About this report This annual report provides a comprehensive overview of our performance in 2022. All material information has been integrated into this one, third-party assured entirety. The reports online PDF version for download on www.upm.com, UPM Corporate Governance Statement 2022, UPM Remuneration Report 2022, Accounts for 2022 in XBRL format, UPM GRI Content Index 2022, SASB content index 2022, UPM material balance 2022, UPM carbon inventory 2022, Interactive Analyst tool for financial figures and responsibility data. More about our responsibility agenda on www.upm.com/ responsibility

REPORT OF THE BOARD OF DIRECTORS

120

GROWTH IN A CHANGING ENVIRONMENT

102

FINANCIAL STATEMENTS

158

REMUNERATION

109

AUDITOR’S REPORT

231

BOARD OF DIRECTORS​

112

OTHER FINANCIAL INFORMATION

235

GROUP EXECUTIVE TEAM

114

ASSURANCE REPORT ON RESPONSIBILITY

116

3

UPM ANNUAL REPORT 2022