UPM Annual Report 2023

RESPONSIBILITY

UPM

BEYOND FOSSILS

BUSINESSES

GOVERNANCE

ACCOUNTS FOR 2023

safety risk assessments were incorporated into the investment process and the key elements of process safety were integrated into loss prevention surveys conducted in our mills by an external partner. We continued to run training sessions on behavioural-based safety leadership for UPMers in various businesses. The training supports our managers in providing safety leadership so that safety naturally forms part of daily management and ways of working. Annual safety audits are an integral part of our OHS management system. Cross-func tional auditing provides valuable feedback about selected OHS processes and daily activ ities. In 2023, our auditing focused on risk management and operating permits. Vision for health and wellbeing We continued to implement our UPM Health and Wellbeing vision, which takes a holistic approach that is divided into four themes: body, mind, heart and soul. The health and wellbeing pulse survey, conducted in May, showed improved results in all questions compared to 2022. During the year, we organised a company-wide vir tual health and wellbeing campaign as well as local activities. The psycho-social risks were one of the focus areas in the company-wide safety week. We also piloted virtual support services for mental wellbeing in selected locations. All production units have an OHS management system, of which 90% have the ISO 45001 Occupational Health and Safety management system certification. It means that 74% of our employees are covered by

the certification. Our actions to ensure business continu ity with regards to COVID-19 continued in 2023 and focus was placed mainly on man aging the situation locally as the pandemic and required measures varied significantly in different countries and locations.

Total recordable injury frequency (TRIF)

10

8

6

4

2

0

21

22

23

19 20

Target

UPM workforce Including contractors

SAFETY FIRST Our focus areas in occupational health and safety were the wellbeing of our employees, process safety and behavioural science-based leadership. CREATING VALUE FOR PEOPLE AND SOCIETY

IN ACTION

TARGETS 2030

TRIF below 2 for UPM workforce and including contractors

safety walks and discussions 36,000 54,000 safety-related near-miss and safety observation reports In 2023, a total of

EMPLOYEE DISCUSSIONS ON SAFETY IN OUR WORKPLACE

5.2 achieved for total injuries per one million hours worked

As part of the global UPM Experience programme, we launched a new safety project in 2023. Its aim is to develop safety practices more from an employee perspective and engage people more in safety. Discussions concerning safety were held at mills and other workplaces in the autumn. In addition to obtaining employees’ insight, the group discussions and workshops were also aimed at gathering ideas for further development. The aim of the discussions was to bring together all employees and gather expe riences about safety in their workplace. Employees were asked specific questions, such as how they would describe the best possible scenario and how they would improve safety at the site. By the end of 2023, more than 6,500 employees in over 50 sites had taken part in the discussions. Responses will be ana lysed both locally and globally. In 2024, work to develop of a new safety vision and various development projects will continue.

TARGETS 2030

Absenteeism rate below 2 for UPM employees

4.3 absence rate achieved as % of theoretical working hours

Our safety work is based on long-term planning, effective communications and leadership. Safety is incorporated in all our daily operations and in new and ongoing projects, proactive safety forms an integral part of project plans and site practices. The thorough investigation of incidents and effective risk management play an impor tant role in making our operations safer. We also share safety observations and best practices in our business units to improve safety. We aim to have zero accidents. De spite our continuous efforts to prevent all accidents, in 2023, we had five serious ac cidents (three in Finland, one in Germany and one in China). Out of the five accidents,

one happened to a contractor and four to UPM employees. All accidents were thoroughly investi gated in close cooperation with authori ties and contractors. The corrective and preventive actions were initiated and the key learning points were shared across all businesses to prevent similar accidents from happening in the future. We recognise exemplary safety perfor mance with company-wide awards, the UPM Raflatac Wroclaw factory received the UPM CEO Safety Award 2023. The win ner’s continuous improvements in safety are visible at the premises and in produc tion, in the daily working practices and in the culture.

UPM WORKFORCE INCLUDING CONTRACTORS Total injuries per one million hours worked, TRIF Lost-time accidents per one million hours worked, LTAF

2023

2022

2021

Strong focus on process safety We continued our systematic work to develop process safety. We implemented a UPM-wide process safety standard that sets minimum requirements for process safety in operations, projects and functions. We developed global process safety e-learning training to increase awareness throughout our organisation. Together with the OHS network, we assessed the current state of process safety within our operations and made develop ment plans for the years ahead. Process

5.2 3.4

5.9 3.3

7.2 3.5

Serious accidents

5 0

5 3

3 0

Fatalities

UPM WORKFORCE

2023

2022

2021

Total injuries per one million hours worked, TRIF Lost-time accidents per one million hours worked, LTAF

6.1 3.7

6.4 3.2

6.3 3.1

Serious accidents

4 0

3 0

2 0

Fatalities

% absence hours from theoretical working time*

4.3

4.5

4.1

Occupational diseases*

5

6

5

* Reflects own employees

70

71

UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023