UPM Annual Report 2023

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2023

86 Nationalities

countries 43

increase female representation. According to our analysis, men and women have equal opportunities to progress at UPM. We have carried out a gender pay equity review every year since 2021, closing the gender pay gap that cannot be explained by the factors that typically determine a person’s salary and how it develops. We will continue to monitor this development annually and make corrections if needed. In 2023, we committed to the UN Forward Faster Initiative with gender equality. To further develop inclusive leadership and culture, we started a dialogue with management teams in 2019 and continued this work across the company in 2023. Ap proximately 2,600 UPMers have participat ed in the dialogue since. We broadened our understanding on leading diverse teams and developed aware ness of LGBTIQ+ diversity and inclusion in the workplace among our top leaders in 2022. We launched e-learning training on this topic for all UPMers. Nearly 700 people have taken the training. To get support in developing our practices, UPM joined as a member to the Workplace Pride in 2023. We defined our Employee Resource Group approach in a project with diverse people around UPM and established a net work on LGBTIQ+ (BeU) in 2023 (below). The BeU has attracted interest among UPMers. The network members and the core team plan activities to support the community and create awareness at UPM. Inclusive behaviours are integrated into our leadership development programmes and in the UPM Code of Conduct training. In 2022, we began to measure inclusive leadership, i.e. how leaders at UPM value

different perspectives. According to the Employee Engagement Survey (EES) results, there was no change from the previ ous year. Inclusive leadership will continue as a development area for us. For sense of belonging, we have a target whereby we compare ourselves to the top 10% of benchmark companies. Our EES also measures authenticity (i.e. feeling comfortable being oneself) and fair treat ment, which are important 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 address 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 2023 Bloom berg GEI (Gender-Equality Index). The index awards the publicly traded companies that are most committed to disclosing their efforts to support gender equality.

in

Women 23% Shop-floor 57%

Men 77% Salaried 43%

Multinational teams 25% +2pp

Women leaders 23% +1pp

Age-diverse teams 55% -1pp

DIVERSE AND INCLUSIVE WORKING CULTURE CREATING VALUE FOR PEOPLE AND SOCIETY

The Forward Faster initiative on page 30 Engaging employees on page 64

Employee Engagement Survey results

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

Fair Treatment score 74 +0

Authenticity score 79 +1

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

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, sexual orientation, age, ethnic origin or national ity, for example. We welcome the talent of people with diverse skills and backgrounds in 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 and for a healthy work

In 2016, we signed an EU Diversity charter. Our commitment and expectations related to D&I are stated in our HR Rules and UPM Code of Conduct. Our D&I-related social responsibility targets, which were renewed in 2021, focus on sense of belonging and female rep resentation in professional and managerial roles. We have set an ambitious target of 40% 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

environment. Rich points of view improve decision-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 ACTION

CREATING A MORE INCLUSIVE WORKPLACE

Groups (ERGs). These are voluntary, employ ee-led initiatives that are organised around common social identities or backgrounds. They also provide opportunities for networking. Our first ERG, BeU, is a network for the LGBTIQ community and allies. BeU is open to all UPMers who want to contribute to building an inclusive and welcoming workplace for every one. We want to raise awareness and promote inclusion of LGBTIQ+ issues in the workplace and support the community worldwide.

In recent years, we have worked systematically to develop a culture of diversity and inclusion. We strive to create a workplace where everyone feels safe and can be themselves. We also want to foster a culture of collaboration, where employees share their ideas and learn from each other. One of the ways we support diversity and inclusion is through our Employee Resource

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UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023