UPM Annual Report 2023

BEYOND FOSSILS

UPM

BUSINESSES

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2023

2023 HIGHLIGHTS

LEADER IN RESPONSIBILITY

Dow Jones Sustainability Index : The only forest and paper company in the Dow Jones European and World Sustainability Indices (DJSI) for 2023–2024. MSCI ESG ratings : An AAA rating in the assessment. MSCI ESG Research provides ESG ratings on global public companies, according to their exposure to industry specific ESG risks and ability to manage those risks relative to peers. CDP Programme : One of few companies to achieve a double A for our leadership in corporate transparency and performance on climate change and forests. For the water questionnaire, we received an A-. S&P Global's Sustainability Yearbook : Top 10% S&P Global CSA Score in the Sustainability Yearbook 2023 as one of the top-scoring companies in our industry. EcoVadis : The highest possible Platinum level for our sustainability performance for which only 1% of over 100,000 companies assessed globally attain. Nature Benchmark : First among our peers in the paper and forest segment and among the top overall performers in the 2023 Nature Benchmark by World Benchmarking Alliance. Bloomberg Gender-Equality Index (GEI) : UPM is among the 484 public companies globally and one of the three Finnish companies in the 2023 index. The GEI lists the companies most committed to transparency in gender reporting and advancing women’s equality.

JANUARY UPM’s stream water programme will release and restore 500 kilometres of Finland’s rivers by 2030 30

AUGUST

JUNE

UPM Biochemicals acquires SunCoal Industries 1

UPM Biochemicals and Selenis start developing sustainable PETG plastic for packaging applications 1

UPM receives platinum in the EcoVadis responsibility assessment with a high industry score 4 Sodium hydroxide leak at the Paso de Los Toros pulp mill storage area in Uruguay 16 Aki Temmes is appointed Executive Vice President at UPM Fibres and member of the Group Executive Team as of 1 December 2023 25

UPM Energy’s Kuusankoski hydropower plant renovation completed 1

FEBRUARY UPM renews its dividend policy 2 UPM Biochemicals and HAERTOL Chemie GmbH start developing new sustainable coolants 9 MARCH UPM plans capacity reduction in Schongau and accel erates its exit plan in the Steyrermühl paper mills. The paper machines are closed in June 22

UPM joins the Forward Faster Initiative to accelerate the progress of the UN’s Sustainable Development Goals 19 SEPTEMBER

UPM Biochemicals and German outdoor apparel brand VAUDE to produce the world’s first fleece jackets containing UPM’s renewable chemicals 15 European Commission closes its antitrust investigation into the wood pulp sector 15 UPM inaugurates its Paso de los Toros pulp mill in Uruguay 6

OCTOBER

APRIL UPM finalises its full exit from Russia 3

Henrik Ehrnrooth is elected Chair of the Board of Direc tors. Pia Aaltonen-Forsell is elected as a new member of the Board at the AGM. 12 UPM Paso de los Toros pulp mill begins operations 15 UPM announces it will install eight electric boilers at the paper mills in Finland and Germany 18

The first shipment of pulp from the UPM Paso de los Toros mill arrives in Qingdao, China 14 JULY

24

UPM announces that Jussi Pesonen, President and CEO will retire on 30 April 2024. Massimo Reynaudo is appointed President and CEO of UPM-Kymmene Corporation as of 1 January 2024

MAY

Image: TVO

UPM publishes its updated Green Finance Framework 6 UPM Timber announces an investment to modernise the Korkeakoski sawmill in Finland 29 NOVEMBER UPM is listed in the Dow Jones Global and European Sustainability Indices (DJSI) for 2023–2024 as the only company in its industry 11 DECEMBER

UPM updates the Leuna biochemicals refinery project schedule: start-up expected by the end of 2024 with an estimated investment of EUR 1,180 million 25

The OL3 nuclear power plant unit begins regular commercial electricity production 1 UPM Biomedicals enters Europe’s top life sciences innovation hub in Basel, Switzerland 11

25

UPM Communication Papers announces plans to permanently close its Plattling mill in Germany. The mill is closed in November

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UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023