UPM Annual Report 2022

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2022

Our activities and products have impacts on the environment and society. Understanding these impacts is a prerequisite to developing our operations. Direct and indirect inputs and outputs provide a comprehensive picture of the value chain and form the basis for the impact assessment. Environmental, social and economic aspects are considered and impacts are valued in monetary terms for selected parameters. OUR SOCIETAL AND ENVIRONMENTAL IMPACTS

UPM's detailed material balance is available at www.upm.com/responsibility

INDIRECT UPSTREAM

DIRECT UPSTREAM Raw materials

DIRECT DOWNSTREAM Products

DIRECT DOWNSTREAM Emissions to air

INDIRECT DOWNSTREAM

IMPACTS

Increasing knowledge and quality of life through our products

10,500 in 99 countries

20,000

Number of b-to-b suppliers

5,800 t

Nitrogen oxides

6.2m t

Paper

Number of customers

20m m 3

Wood

880 t

Sulphur dioxide

2.8m t

Chemical pulp

Vitality and prosperity for area of influence

Private forest owners supplying wood to UPM

1.7m t

Market pulp

16,000

680 t

Particulates

0.6m t

Converting materials

over 170 million

People using UPM products

Increased social capital and skills of employees

380 t

VOC

0.6m m 3

Plywood and veneer

1.4m t

Recovered paper

55 million

2.3m t

Seedlings planted

Fossil CO 2 emissions (Scope 1)

Wellbeing and safety of employees and contractors

1.5m m 3

Sawn timber

EUR 1.4m distributed to about 180 groups

Biofore Share and Care donations and sponsorships

7.2m t

Biogenic CO 2 emissions

1.6m t

Minerals

12,000 GWh

Electricity and heat

Emissions to water

Supplier spend covered by UPM Supplier Code

Biodiversity enhanced in managed forests and through conservation 2)

88%

EUR 11,720m

Sales

160m m 3

Process wastewater

0.4m t

Purchased paper for converting

Ecosystem services secured through sustainable forest management

EUR 2,096m

Comparable EBIT

140m m 3

2.1m t

Cooling water

Virgin materials replaced

86%

Certified wood

0.2m t

Plastic, adhesives, resins, films

Biological oxygen demand (7days)

Granted patents and patents validations

6,300 t

Climate change mitigation through UPM´s carbon actions 3)

247

EUR 4.8 billion

Costs, raw materials

EUR 10.9 billion

Percentage of wood origin known

Value of products eligible for ecolabelling

100%

48,000 t

People and society

Chemical oxygen demand

Value added EUR 3.5 billion

Water uptake

17,200

Employees

210 t

Absorbable organic halogens

Fossil CO 2 emissions (Scope 2)

314m m 3

Surface water

2.2m t

Process waste and by-products

Societal value of carbon sink of UPM own and leased forests EUR 240m 4)

132,100

UPM forests available for recreational use

Shareholders

589,000 ha

517,000 dry t

Material recycling

8

Training hours per employee

19m m 3

Ground water

Societal cost of GHG emissions (Scope 1-3) EUR -960m 5)

Fossil CO 2 emissions (Scope 3 upstream)

159,000 dry t

Energy recovery

3.3m t

Total recordable injury frequency incl. contractors

Fossil CO 2 emissions (Scope 3 downstream)

5.9

5,000 dry t

1.7m t

Composting

4m m 3

Communal water

Societal cost of other air emissions EUR -110m 6)

Water intensive production sites located in water abundant areas

55,000 dry t

Landfilling

100%

Energy

EUR 693m

Dividend distribution

16,000 dry t

Temporary storage

Recreational value of UPM forests EUR 83m 7)

19,400 GWh

Carbon content in UPM products

Renewable fuels

13m t

Employee wages and benefits

EUR 1,181m

3,400

New hires

Incineration without energy recovery

2,100 dry t

Value of ash used as raw material EUR 12m 7)

10,500 GWh

Fossil fuels

Carbon sink in UPM own and leased forests

2.3m t CO 2 eq 1)

Own and leased forests and plantations

Corporate income taxes paid and property taxes

Hazardous waste for special treatment

1,070,000 ha

EUR 349m

Purchased electricity and heat

Impact of paid taxes on social capital EUR 414m 8)

7,200 t

14,300 GWh

1) Based on study by Luke Finland: 5-year average of carbon sink and sources in UPM own and leased forests in Finland and Uruguay. 2) Read more on pages 82-83 3) Read more on pages 28-29 4) Calculated using societal cost of carbon EUR 100/tCO 2 (average damage cost per tonne of CO 2 ). Source: EEA. Using European emissions allowance price would result in EUR 200m.

5) Calculated using societal cost of carbon EUR 100/tCO 2 (average damage cost per tonne of CO 2 ). Source: EEA. Using European emissions allowance price would result in EUR -810m. 6) Calculated using societal cost of each air pollutant. Source: EEA 7) Based on pilot study by Gaia. Read more on upm.com/responsibility 8) Calculated using corporate income and property taxes, and health utility of taxes. Source: Vionnet et al. (2021) The Health Utility of Income and Taxes. Part B.

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UPM ANNUAL REPORT 2022

UPM ANNUAL REPORT 2022