UPM Annual Report 2022

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2022

to successfully balance their work and private life. Our values lay the foundation of who we are. Building a culture of Aiming Higher is essential to our success in today’s rapidly changing world. We are accountable, per formance-driven, human centric and eager to learn and grow. Our aim is to increase employee motivation further. Encouraging learning In a changing and increasingly complex business environment, enhancing employ ees’ capabilities and wellbeing is important for both business success and sustained employability. Our long-term goal is to ensure high performance and continuous professional development. We work together and create a more innovative tomorrow. We invest in the growth of our people and expect individuals to be eager to learn and develop. All employees are encouraged to create an individual development plan and keep it up to date. In 2022, 58% of employ ees had development plans documented. In the EES, the result on the question about good opportunities to learn and grow at UPM was 64 (+2). We apply the 70-20-10 learning and de velopment framework: 70% of the learning takes place on the job; 20% comes from sharing with and learning from colleagues; and 10% comes from training. Expert communities have an import ant role in sharing and learning across the company. In 2022, we ran a project to support setting up new expert communities and boost the existing ones around various topics such as market intelligence and sustainability. We have continuously introduced new digital learning content and online pro grammes. They encourage individuals to strengthen their self-leadership and resil ience and support leaders in enabling their teams to perform and grow. Employees can share digital learning content flexibly on our

learning platform. We offer e-learning con tent to develop skills in areas in commerce, finance, compliance, safety and leadership, for example. Developing employee experience and enabling renewal Developing employee experience is a key aspect in developing UPM as a workplace. To strengthen our work community, we started a dialogue on our purpose and values in 2021, which we continued in 2022. All UPMers are given a chance to create a personal and team-based connection to our purpose, values and Aiming Higher mindset. Managers have been provided with support to facilitate discussions in their teams. The EES results show that our employees’ excitement about UPM’s future and their sense of belonging have increased. We have launched projects to develop future ways of working and digital capabili ties, and to create global health and wellbe ing concepts as part of our UPM Experience programme (right). We are committed to caring for our employees to feel physically energetic, mentally balanced, included and proud to work at UPM. Digital work is an important part of the experience. Over 450 UPMers participated in creating our new intranet, Griffin Forum. It connects and engages employees globally. Human centricity and design thinking guid ed us in planning and content creation. We have also continued to develop our employees’ career experience. We use a design-thinking approach and enable employees to contribute to projects. Based on the targets for career experience, set in 2020, we redefined our development planning process and tools in 2022. The new practise enables employees to create their own development plans as needed, but at least once a year. Managers ensure that the plans are relevant. The aim is to sup port employees to keep their passion and expertise fresh for current and future jobs through continuous development. Being the employer of choice has be come crucial when recruiting new employ ees, especially younger professionals. We have been able to retain and attract employ ees despite the heated labour market. We have organised several successful graduate programmes in recent years. Our apprenticeship programmes are a way to

TARGETS 2030

Employee engagement clearly above benchmark

70 average score achieved, 5 points below global benchmark Goal setting discussions and development plans for employees, 100% completion rate 83% of employees had 58% of employees had a development plan documented

TARGETS 2030

completed individual goal setting or annual discussion

CASE

ENGAGING EMPLOYEES CREATING VALUE FOR PEOPLE AND SOCIETY Our culture of Aiming Higher encourages all UPMers to grow, as individuals and as a company. Our values—Trust and be trusted, Achieve together and Renew with courage—guide us along the way.

ACCELERATING UPM EXPERIENCE

The UPM Experience programme is our group-wide, multi-year effort to engage UPMers and improve employee experience across businesses, functions and locations. It was launched in 2021 and continued in 2022, focusing on physical, digital and cultural aspects of work. The key goals of the programme are: • strengthening the sense of meaningful work and belonging • enabling employee productivity • increasing employee engagement and wellbeing • enhancing meaningful collaboration • increasing diversity and inclusion UPM Experience includes seven different projects such as Purpose and values dia logue, Future ways of working and Health and wellbeing. Although for some of the projects the active development phase end ed in 2022, the work and implementation will continue in the coming years.

We are determined to be a responsible and attractive employer now and in the future. We want to strengthen employees’ sense of belonging and the feeling that they are doing meaningful work. This promotes productivity, engagement and wellbeing. We measure our progress regularly. The annual Employee Engagement Survey (EES) has invited all employees to evalu ate different aspects of their work every year since 2007. The high participation rate of 79% (83%) indicates that UPMers are keen to improve their workplace. The average engagement score is 70 (+2). According to the EES results, one of our strengths is that our employees are able

IMPACT • Strengthen sense of meaningful work and belonging among all UPMers • Promote diversity and inclusion • Aim for higher performance • Lead with passion and purpose • Create the future beyond fossils • Raise the bar in our safety performance TARGET • Improved performance, engagement and professional growth

OUR WAY • Lead according to our values and with integrity • Develop an inclusive and diverse working environment • Engage employees • Enable performance with agile goal setting and feedback • Invest in the growth of our people and develop new capabilities • Provide a safe and healthy working environment and foster the wellbeing of employees and contractors • Ensure fair, equitable and competitive rewarding for all employees

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UPM ANNUAL REPORT 2022

UPM ANNUAL REPORT 2022