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

TARGETS

METRICS

E2-3

E2-4

Targets related to emissions To manage its sustainability activities, UPM has set several targets and key performance indicators for its sustainability focus areas covering emissions from production sites (covered under Climate, Water and Waste) and the supply chain. These targets support UPM's policy objective of mitigating, preventing and controlling negative impacts SUSTAINABLITY FOCUS AREA AND KEY PERFORMANCE INDICATOR Climate, including air emissions Acidifying flue gases (NO X /SO 2 ) for an average UPM product Water Chemical oxygen demand (COD) for an average UPM product * Waste Process waste sent to landfills or to incineration without energy recovery

Emissions to water (E-PRTR scope*)

Emissions to air, water and soil

t, kg or g

2024

related to pollution (UPM Code of Conduct). UPM's sustainability targets are developed taking the views, wishes and perspectives of external stakeholders from UPM's constant multi-stakeholder dialogue into account.

The tables below include the amount of pollutants as listed in the European Pollutant and Transfer Register (E-PRTR; Annex II of Regulation (EC) No 166/2006) from production sites for which the applicable threshold value is exceeded. This means that the amounts only cover these production sites and their respective emissions. For the most relevant parameters, UPM therefore also reports total amounts of the emissions considered most material for UPM, as well as common effluent quality parameters for the pulp and paper industry that are not listed in the E-PRTR. Emissions to air (E-PRTR scope*)

Chlorides (as total Cl), t

14,600

Zinc and compounds (as Zn), kg

6,300

Copper and compounds (as Cu), kg

1,700

Nickel and compounds (as Ni), kg

590

BASE YEAR

BASE YEAR VALUE

2030 TARGET

TARGET FOLLOW-UP 2024 (2023)

Chromium and compounds (as Cr), kg

110

Arsenic and compounds (as As), kg

100

Lead and compounds (as Pb), kg

80

2015 100% **

-20%

-19% (-17%)

Cadmium and compounds (as Cd), kg

10

2008 100% ***

-40%

-44% (-39%)

Mercury and compounds (as Hg), kg

10

t, kg or g

2024 6,700

PCDD + PCDF (dioxins + furans) (as Teq), g

30

Carbon monoxide (CO), t

2015 122,000 dry tonnes

0 tonnes

97,000 (82,000) tonnes, 83% (87%) of UPM's process waste recovered or recycled

Chlorine and inorganic compounds (as HCl), t

20

Total nitrogen

—

Chromium and compounds (as Cr), kg

150

Total phosphorous

—

Responsible sourcing UPM total spend covered by UPM Supplier and Third-Party Code

Polycyclic aromatic hydrocarbons (PAHs), kg

80

Nonylphenol and Nonylphenol ethoxylates (NP/NPEs)

—

2015

79%

>80% (continuous)

91% (89%)

PCDD + PCDF (dioxins + furans) (as Teq), g

0.4

Naphthalene

— —

Polycyclic aromatic hydrocarbons (PAHs)

Particulate matter (PM10)

—

* Relevant for pulp and paper production ** Calculation: minus 20% target for weighted average of reductions to be achieved for specific emissions of Pulp, Paper, Plywood, Biofuels and Timber, with base year as 100% *** Calculation: minus 40% target for weighted average of reductions to be achieved for specific emissions of Pulp and Paper, with base year as 100%

Fluorides (as total F)

—

Arsenic and compounds (as As)

—

Octylphenols and Octylphenol ethoxylates

—

Cadmium and compounds (as Cd)

—

Benzo(g,h,i)perylene

—

Copper and compounds (as Cu)

—

Mercury and compounds (as Hg)

—

* Scope includes only UPM sites' emissions above the threshold which is specified in the EU's E-PRTR

Nickel and compounds (as Ni)

—

UPM's sustainability targets for 2030 are followed up and reported at Group level at least annually. The target parameters chosen for emissions to air, water and soil are the most relevant to be followed up for UPM's main production areas. They are evaluated and set based on the historical development, known investment projects and technology developments, and potential local impacts. They aim to go beyond actual permit values which are set by the authorities considering the local circumstances. If available, EU Ecolabel criteria or the reference values of BAT (best available techniques) are also taken into account when setting targets. Group-level targets are broken down into business areas and sites based on detailed allocation in the case of COD, used as an indicative target for all business areas in case of acidifying flue gases, or are a generic target for all sites in the case of UPM's "zero waste to landfill" target. UPM has chosen COD (chemical oxygen demand) as the most appropriate indicator for the effluent load from pulp and paper production. Other units do not have significant emissions to water. The effluent, or wastewater, of pulp and paper mills includes organic substances which consume oxygen during biodegradation. Low oxygen content in water can have an adverse effect on plant and animal life. COD refers to the amount of oxygen consumed in the complete chemical oxidation of organic compounds.

UPM's target for acidifying flue gases aims to reduce emissions of NO X and SO 2 from its energy generation and production processes. Progress towards the Group-level targets for effluent load (COD) and acidifying flue gases (NO X and SO 2 ) is ahead of schedule. The 2030 target for COD is achieved in 2024 and the 2030 target for acidifying flue gases is almost achieved. » Refer to E5-3 Targets for the waste target and » Refer to G1-2 Targets for the sourcing target. A potential risk for soil pollution may come from landfill areas. UPM's target is to have zero process waste going to landfill by 2030. This is an absolute target for all UPM's business areas. » Refer to E5 Resource Use and Circular Economy for details on waste amounts and handling. UPM follows the legal requirements of the EU (REACH) and other local legislation in countries where it has production sites regarding the use of chemicals and especially of substances of concern and high concern. The set targets are voluntary and in addition to legal requirements.

Lead and compounds (as Pb)

—

Emissions to water (total amount)

Zinc and compounds (as Zn)

—

Polychlorinated biphenyls (PCBs)

—

t

2024 5,200

2023 5,300

Fluorine and inorganic compounds (as HF)

—

Biological oxygen demand (BOD7)

Chemical oxygen demand (COD)

56,600

52,400

* Scope includes only UPM sites' emissions above the threshold which is specified in the EU's E-PRTR

Total organic carbon (TOC) (as COD/3) Halogenated organic compounds (as AOX)

18,900

17,500

280

290

Emissions to air (total amount)

Emissions to soil » Refer to E5-5 table By-products and waste for information about hazardous waste. No other pollutants to the soil are to be reported.

t

2024 8,700

2023 7,800

Nitrogen oxides (NOx)

Sulphur dioxide (SO 2 )

780

770

Particulates (total)

680

860

Non-methane volatile organic compounds (NMVOC)

400

320

UPM FINANCIAL REPORT 2024

180

UPM FINANCIAL REPORT 2024

181

180

181

UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024