UPM Annual Report 2023

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2023

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.

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 pro ductivity, engagement and wellbeing. We measure our progress regularly. The annual Employee Engagement Survey (EES) has invited all employees to evaluate different aspects of their work every year since 2007. The high participation rate of 81% (79%) indicates that UPMers are keen to improve their workplace. The overall engagement score is 70 (70). According to the EES results, UPMers have the resources they need to do their job well and they feel comfortable being themselves at work. Also, they are able to successfully balance their work and private life. These three aspects — resources, authenticity, and work life balance — are our strengths. 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 and make growth opportunities more visible and accessible. We work together to create a more innovative tomorrow. Encouraging learning In an increasingly complex business environment, enhancing employees’ skills and wellbeing is important for both

IMPACT • Strengthened sense of meaningful work and belonging among all UPMers • Higher performance • Happier and healthier work environment • Passionate and purposeful leadership

OUR WAY • Lead according to our values and with integrity • Lead change in a human-centred way • Develop an inclusive and diverse working environment • Engage employees to create the future beyond fossils • Develop future ways of working and collaborating • Enable performance with agile goal setting and feedback • Invest in the growth of our people and build 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 company. In addition to the existing expert communities, new ones were set up around topics such as sustainability and AI in 2023. As part of our UPM Experience pro gramme, the Digi-enabled operator project enabled smooth access to relevant learning content and activities in 2023. The aim is to develop digital solutions to help shop floor employees with learning and sharing in the workflow. We have introduced new digital learn ing content and online programmes on a continuous basis. They encourage individ uals to strengthen their self-leadership and resilience and support leaders in enabling their teams to perform and grow. We offer e-learning content to develop skills in commerce, finance, compliance, safety, lead ership, design thinking and citizen develop ment, for example.

• Create the future beyond fossils • Improved safety performance

TARGET • Improved performance, engagement and professional growth

business success and sustained employa bility. Our long-term goal is to ensure high performance and continuous professional development. 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 2023, 81% of employ ees had documented development plans. In the EES, the result from the question about good opportunities to learn and grow at UPM was 64 (64). 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 important role in sharing and learning across the

ing concepts as part of our UPM Experience programme. 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. We are continuously developing our collaboration tools and intranet, Griffin Forum, which was launched at the end of 2022. It connects and engages employees globally. Human centricity and design thinking guide us in content creation. In 2023, we trained nearly 10% of our employ ees to Power Platform citizen development tools. Employees can create applications and automate work flows to support their daily work. We have continued to develop our employees’ career experience. Our devel opment planning process and tools which

Developing employee experience and enabling renewal Developing employee experience is a key aspect of 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 2022–2023. All UPMers are given the opportuni ty 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 we need to continue the dialogue to maintain our employees’ excitement about UPM’s future and their sense of belonging. We have launched projects to develop future ways of working and digital capabili ties, and to create global health and wellbe

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 85% of employees had 81% of employees had a development plan documented

TARGETS 2030

completed individual goal setting or annual discussion

64

65

UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023