UPM Annual Report 2022

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2022

different perspectives. This will be one development area for us. We have a target for the sense of belong ing where we compare ourselves to the top 10% of benchmark companies. Our Employ ee Engagement Survey (EES) also measures authenticity, i.e., feeling comfortable being oneself, and fair treatment which are im portant strengths for us. We continuously follow up on them. Regular monitoring We regularly review our diversity status and data. Our management teams conduct self-assessments that touch on diversity and inclusion. Managers and HR have dash boards with diversity data. Processes such as rewarding and recruitment are followed up on regularly. We also regularly report progress to several external indices. We were included in the Bloomberg GEI (Gender-Equality Index) for a fifth consecutive year. The index awards the publicly traded companies that are most committed to disclosing their efforts to support gender equality.

professional and managerial roles. We have set an ambitious target of 40% of female representation by 2030. We aim to develop our leadership capabilities with this increased diversity. Our situation varies by organisation. Therefore, each busi ness requires its own targets and plans to increase female representation. According to our analysis, men and women have equal opportunities to progress at UPM. In 2022, we also carried out a gender pay equity review, closing the gender pay gap that cannot be explained by the factors that typically determine a person’s salary and its development. We continue to monitor this development annually and make correc tions if needed (page 67). To further develop inclusive leadership and culture, we started a dialogue with management teams in 2019 and continued this work across the company in 2022. Over 1,800 people participated in the dialogue. We broadened the understanding on leading diverse teams and created aware ness of LGBTIQ+ diversity and inclusion in the workplace among our top leaders in 2022. We launched e-learning training on the topic for all UPMers and will set up an Employee Resource Group on LGBTIQ+ in 2023. Inclusive behaviours are integrated into our leadership development programmes and in the UPM Code of Conduct training. In 2022, we started to measure inclusive leadership, i.e., how leaders at UPM value

Women 23% Shop-floor 57%

Men 77% Salaried 43%

Women leaders 22%

Multinational teams 23%

Age-diverse teams 56%

Employee Engagement Survey results

Authenticity score 78

Fair Treatment score 74

TARGETS 2030 UPM is among top 10% companies on employees' sense of belonging 68 average score on EES question, 12 points below benchmark of top 10% companies

DIVERSE AND INCLUSIVE WORKING CULTURE CREATING VALUE FOR PEOPLE AND SOCIETY

countries 79 44 in Nationalities

CASE

We develop an organisational culture and local conditions that ensure a diverse and inclusive working environment.

RENEWED BENEFITS FOR FAMILY LEAVE IN FINLAND

the amount of pension people receive. 79% of UPM’s personnel in Finland are men, and we hope that parental leave will act as a real incentive for fathers. The new legislation aims to increase equality and flexibility in working and family life and provide fairer recognition to diverse families. Before the reform, mothers used approximately 90% of all family allowance days in Finland. In this new practise, parental leave and allowance days have been divided in half. As of now, parents’ spouses or other legal guardians can also have paid parental leave.

We value diversity and strive for an inclu sive culture and working environment. We respect the privacy of our employees and promote equal opportunities and objectivi ty in employment and career development. All UPM employees are treated as individuals regardless of gender, age, ethnic origin or nationality, and we welcome the talent of people with diverse skills and backgrounds to our global team. Promoting

diversity and inclusion in the workplace is not only the right thing to do, but also a prerequisite for our business success. The richness of points of view improves deci sion-making and business success. Diversity and inclusion are part of our Aiming Higher mindset and thus part of our cultural development plan. We develop our ways of working to be modern and inclusive.

Three action areas Our Diversity & Inclusion initiative consists of three action areas: commitment to di versity and inclusion, creating and leading inclusive culture, and regular reviews of our data and processes. In 2016, we signed an EU Diversity charter. Our D&I-related social responsibil ity targets, renewed in 2021, focus on sense of belonging and female representation in

At UPM, parents and legal guardians of any gender and in diverse families have an equal right to paid parental leave. UPM pays 32 days of parental leave to all employees entitled to paid parental leave under new family leave leg islation. The new law does not require this, but we want to offer this benefit to our employees. A more even distribution of family leave has a positive impact on, for example, women’s salaries and career development and eventually

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UPM ANNUAL REPORT 2022

UPM ANNUAL REPORT 2022