UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Report of the Board of Directors

Sustainability Statement

Financial Statements

Auditor's Report

Sustainability Assurance Reports

GHG emissions

Scope 1 UPM's Scope 1 emissions include UPM's power plants, fuel used in production processes and a share of jointly operated on-site power plants corresponding to UPM's energy supply. UPM does not report GHG emissions from mobile combustion and from facilities other than production sites and power plants. Scope 1 fossil and biogenic CO 2 are calculated based on the respective fuel consumption. The calculation is based on the European Emissions Trading System, other national requirements or official calculation factors. UPM only reports CO 2 for Scope 1. Other Greenhouse Gas (GHG) emissions such as CH4 and N 2 O are not material. The European Emissions Trading Scheme and other national schemes require additional third-party verification from accredited auditors for Scope 1 emissions which might take place after the publication of this Statement. In case of significant differences, this will lead to a re statement in next year's reporting. Scope 2 For the Scope 2 calculation, UPM follows the principles and requirements of the GHG Protocol Scope 2 Guidance. UPM's Scope 2 emissions from purchased electricity are calculated using both the market-based and location-based approaches. The main method is the market-based approach, and the target follow-up is based on this method. If the market-based data is unavailable, the residual mix is used, and if the residual mix is unavailable, regional or national grid factors are used. The location-based calculation is based on DEFRA factors. In cases where UPM has sold greenhouse gas claims (such as Guarantees of Origin) for energy used by UPM, the corresponding amount has been calculated using the national residual mix. Scope 2 emissions from purchased heat are calculated using the market-based approach, i.e. information from the supplier. Scope 2 GHG emissions are only fossil CO 2 , as information on other GHG emissions is not yet available from suppliers and the share of other GHG emissions is considered to be low for market-based electricity. Scope 2 biogenic emissions are estimated based on location-based factors for electricity purchased from MLC (formerly GaBi), excluding sites using 100% nuclear electricity. For UPM's pulp and paper mills in Europe, China and Uruguay, the scope 1 and 2 CO 2 emissions are verified and reported in accordance with the EU's Eco-Management and Audit Scheme (EMAS) by EMAS accredited auditors. Scope 3 UPM's Scope 3 calculation follows the principles and requirements of the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Information about biogenic CO 2 emissions is unavailable for Scope 3 categories, except for category 11 (Use of sold products), where UPM reports biogenic CO 2 from the combustion of UPM's renewable diesel sales. Other GHG emissions from combustion are estimated to be insignificant.

Biogenic CO 2 emissions

t BIOGENIC CO 2

2024

2023

E1-6

Scope 1 Scope 2

11,740,000 10,300,000 170,000 200,000 300,000 330,000

Scope 3 (Category 11 Use of sold products)

GHG emissions and 2030 target

RETROSPECTIVE

MILESTONES AND TARGET YEARS

% 2024/ 2023

% 2024/ BASE YEAR

Fossil CO 2 emissions by country 2024

2030 TARGET

2015

2018

2023

2024

2025

2030

Scope 1 GHG emissions * Gross Scope 1 GHG emissions (tCO 2 )

1,500,000

3,880,000 3,250,000 2,130,000 2,180,000

2% 2,200,000 1,360,000

-44 %

Scope 1 GHG emissions from regulated emissions trading schemes (%) Scope 2 GHG emissions * Gross location-based Scope 2 GHG emissions (tCO 2 ) Gross market-based Scope 2 GHG emissions (tCO 2 ) Scope 1 and 2 GHG emissions * Gross Scope 1 and market-based Scope 2 GHG emissions (tCO 2 )

2,970,000 2,730,000 1,630,000 1,660,000

2%

—

—

—

1,000,000

— 3,020,000 1,730,000 1,640,000 2,920,000 3,100,000 1,590,000 1,200,000

-5%

—

—

—

-24% 1,650,000 1,020,000

-59 %

500,000

6,800,000 6,120,000 3,720,000 3,380,000

-9% 3,850,000 2,380,000

-50 %

Significant Scope 3 GHG emissions ** Total Gross indirect (Scope 3) GHG emissions (tCO 2 eq)

0

— 9,040,000 7,680,000 8,170,000 — 4,230,000 3,070,000 2,970,000

6%

—

—

—

Finland Germany China Uruguay US

UK Other

1 Purchased goods and services

-3% 3,540,000 2,960,000

-30 %

2 Capital goods

— —

50,000 210,000 160,000 670,000 570,000 520,000

-26%

— —

— —

— —

Scope 1

Scope 2

3 Fuel- and energy-related activities

-9%

4 Upstream transportation and distribution ***

— 1,180,000 1,100,000 1,250,000

13% 14%

990,000 830,000

5 %

5 Waste generated in operations

— — —

50,000 47,000 54,000 12,000 13,000 14,000 13,000 11,000 10,000

— — — —

— — — —

— — — —

GHG intensity

6 Business travel

5% -5%

% 2024/ 2023

7 Employee commuting

10 Processing of sold products

— 2,830,000 2,660,000 3,200,000

20%

t/EURm

2024 2023

Total GHG emissions Total GHG emissions (location-based) (tCO 2 /tCO 2 eq) Total GHG emissions (market-based) (tCO 2 /tCO 2 eq)

Total GHG emissions (location-based) per net revenue (tCO 2 eq/EURm Sales) Total GHG emissions (market-based) per net revenue (tCO 2 /EURm Sales)

1,160

1,100

5 %

— 15,300,000 11,540,000 11,980,000 — 15,390,000 11,400,000 11,550,000

4% 1%

— —

— —

— —

1,120

1,090

3 %

* Base year 2015 for Scope 1 and Scope 2 targets for 2030 **Base year 2018 for Scope 3 target for 2030 ***2023 figure increased compared to previous year's reporting by 7% Note: Setting and SBTi application of UPM's long-term targets will proceed in 2025, when the guidelines and tools for the FLAG sector will be available.

Sales correspond to total sales as reported in the consolidated financial statements. » Refer to Note 2.2. Sales in the consolidated financial statements, Accounting policies.

Reporting principles for metrics

UPM reports data on a consolidated basis. » Refer to ESRS 2, BP-1 for detailed information. The share of associated companies is insignificant.

UPM FINANCIAL REPORT 2024

158

UPM FINANCIAL REPORT 2024

159

158

159

UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024