UPM Annual Report 2023

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2023

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

11,000 in 120 countries

20,000

Number of B2B suppliers

7,800 t

Nitrogen oxides

4.7m t

Paper

Number of customers

26m m³

Wood

770 t

Sulphur dioxide

4.2m t

Chemical pulp

Vitality and prosperity for area of influence

Private forest owners supplying wood to UPM

1.3m t

Market pulp

15,000

860 t

Particulates

0.4m t

Converting materials

approx. 180m

People using UPM products

Increased social capital and skills of employees

320 t

VOC

0.4m m³

Plywood and veneer

0.8m t

Recovered paper

56 million

2.1m t

Seedlings planted

Fossil CO 2 emissions (Scope 1)

Wellbeing and safety of employees and contractors

1.5m m³

Sawn timber

EUR 1.4m distributed to about 200 groups

Biofore Share and Care donations and sponsorships

10.3 m t

Biogenic CO 2 emissions

1.3m t

Minerals

14,800 GWh

Electricity and heat

Emissions to water

Supplier spend covered by UPM Supplier Code

Biodiversity enhanced in managed forests and through conservation 2)

89%

EUR 10,460m

Sales

200m m³

Process wastewater

0.3m t

Purchased paper for converting

Ecosystem services secured through sustainable forest management

160m m³

1.4m t

Cooling water

Virgin materials replaced

EUR 1,013m

Comparable EBIT

87%

Certified wood

0.1m t

Plastic, adhesives, resins, films

Biological oxygen demand (7days)

5,300 t

Granted patents and patents validations

Climate change mitigation through UPM´s carbon actions 3)

355

EUR 4.0 billion

Costs, raw materials

Percentage of wood origin known

Value of products eligible for ecolabelling

100%

EUR 8.7 billion

52,000 t

Chemical oxygen demand

People and society

Value added EUR 2.5 billion

Water uptake

16,600

Employees

290 t

Adsorbable organic halogens

Fossil CO 2 emissions (Scope 2)

369m m³

Surface water

1.6m t

Process waste and by-products

Societal value of carbon sink of UPM own and leased forests EUR 480m 4)

UPM forests available for recreational use

140,739

Shareholders

599,000 ha

398,000 dry t

Material recycling

10

Training hours per employee

13m m³

Ground water

Societal cost of GHG emissions (Scope 1-3) EUR -1,130m 5)

Fossil CO 2 emissions (Scope 3 upstream)

4.3m t

215,000 dry t

Energy recovery

Fossil CO 2 emissions (Scope 3 downstream)

Total recordable injury frequency incl. contractors

3.3 m t

5.2

4m m³

Communal water

9,000 dry t

Composting

Societal cost of other air emissions EUR -157m 6)

Water intensive production sites located in water abundant areas

100%

82,000 dry t

Landfilling

Energy

EUR 800m

Dividend distribution

9,500 dry t

Temporary storage

Recreational value of UPM forests EUR 83m 7)

29,700 GWh

Carbon content in UPM products

Renewable fuels

14m t

Employee wages and benefits

EUR 1,287m

2,200

New hires

Incineration without energy recovery

2,000 dry t

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

9,200 GWh

Fossil fuels

4.8m t

Carbon sink in UPM own and leased forests

Own and leased forests and plantations

Corporate income taxes paid and property taxes

1,073,000 ha

CO 2 eq

EUR 221m

1)

Purchased electricity and heat

Hazardous waste for special treatment

15,800 GWh

Impact of paid taxes on social capital EUR 344m 8)

9,200 t

1) Based on a 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 86–87. 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 390m.

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 -910m. 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 2023

UPM ANNUAL REPORT 2023