UPM Annual Report 2024

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WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Report of the Board of Directors

Sustainability Statement

Financial Statements

Auditor's Report

Sustainability Assurance Reports

UPM's Taxonomy alignment 2024 and development compared to previous year In 2024, UPM's total Taxonomy-aligned turnover including the nuclear activities was EUR 774 million (995 million), 7% (10%) of total sales, Taxonomy-aligned CapEx was EUR 324 million (460 million), 40% (35%) of total CapEx and Taxonomy-aligned OpEx EUR 71 million (141 million), 11% (20%) of total OpEx as defined in Disclosures Delegated Act 1) . Taxonomy-aligned turnover KPI decreased by 2 percentage points mainly due to lower biofuels sales consisting of renewable diesel and nafta (activity 4.13) and change in economic activity 1.3 "Forest management" alignment classification. Simultaneously, this was partly compensated by higher co-generation of power from bioenergy in the Paso de los Toros pulp mill, which in 2023 was still partly in a ramp up phase. Even though the absolute value of Taxonomy-aligned CapEx KPI decreased compared to the previous year, the relative share of Taxonomy-aligned CapEx KPI increased by 5 percentage points, mainly due to high proportion of Leuna biochemicals biorefinery investment out of Total Capex. OpEx KPI decreased by 9 percentage points mainly as economic activity 1.3. “Forest management" was reported as Taxonomy-eligible instead of Taxonomy-aligned, in addition to lower OpEx related to Olkiluoto1 and 2 nuclear plants (activity 4.28). The Taxonomy regulation is still under development and does not cover all the sustainable economic activities. The majority of UPM´s products and services, such as pulp, paper, timber, plywood and label materials contributing to the turnover, are not included in the EU Taxonomy, thus the high proportion of Taxonomy non-eligible activities. 1) The percentages differ from the Annex II templates presented below as they include nuclear activities which are not presented in Annex II templates. Nuclear activities are presented using the Annex XII templates of the amended Disclosures Delegated Act. KPIs and accounting policies The eligibility and aligned-related financial information to be disclosed pursuant to Article 8 of the Taxonomy Regulation is presented in the following pages in tables Turnover of taxonomy-eligible activities, CapEx of Taxonomy-eligible activities, OpEx of Taxonomy-eligible activities and nuclear and fossil gas related templates.

Turnover of Taxonomy-eligible activities (excluding nuclear and fossil gas related activities)

Turnover incl. Nuclear activities

DNSH criteria (‘Does Not Significantly Harm’)

Financial year 2024

2024

Substantial contribution criteria

100%

92%

90%

Proportion of Taxonomy -aligned (A.1.) or - eligible (A.2.) turnover, year 2023

50%

Categ ory enabli ng activity

Categ ory transiti onal activity

Proporti on of Turnover year 2024

Economic Activities

Code Turnover

10%

2024

2023

Climate change mitigation

Climate change adaptation Water Pollution

Circular economy Biodiversity

Climate change mitigation

Climate change adaptation Water Pollution

Circular economy Biodiversity

Minimum safeguards

Taxonomy-aligned activities Taxonomy-eligible but not Taxonomy-aligned activities Taxonomy-non-eligible activities

Y; N; N/EL

EURm %

Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned)

CapEx

CCM 1.3 CCM 4.5 CCM 4.13 CCM 4.20

Forest management

100%

N/ EL N/ EL N/ EL

Electricity generation from hydropower

125

1% Y

Y Y Y Y Y Y Y

1% E

52%

62%

Manufacture of biogas and biofuels for use in transport and of bioliquids Cogeneration of heat/cool and power from bioenergy Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)

227

2% Y

Y Y Y Y Y Y Y

4% E

50%

125

1% Y

Y Y Y Y Y Y Y

1% E

477

5% 5% —%—%—%—%—% Y Y Y Y Y Y Y

40%

35%

Of which enabling

477

5% 5% —%—%—%—%—% Y Y Y Y Y Y Y

6% E

2024

2023

Of which transitional

— —% —%

Y Y Y Y Y Y Y

—%

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL

Taxonomy-aligned activities Taxonomy-eligible but not Taxonomy-aligned activities Taxonomy-non-eligible activities

CCM 1.3 CCM 6.10

Forest management

1% EL N/EL N/EL N/EL N/EL N/EL

OpEx incl. Nuclear activities

Sea and coastal freight water transport, vessels for port operations and auxiliary activities

0% EL N/EL N/EL N/EL N/EL N/EL

Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) Turnover of Taxonomy-eligible activities (A.1 + A.2)

100%

1% 1% —% —% —% —% —%

85%

80%

543

5% 5% —% —% —% —% —%

50%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Turnover of Taxonomy-non-eligible activities

9,796 95%

20%

11%

TOTAL

10,339 100%

2024

2023

Turnover of Taxonomy-non-eligible activities (B) includes the eligible and aligned nuclear-related activities

Taxonomy-aligned activities Taxonomy-eligible but not Taxonomy-aligned activities Taxonomy-non-eligible activities