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

METRICS

Water recycled and reused Considering UPM's operations, the pulp and paper production is the most water-intensive. There, only approximately 5% of the water used in production is taken from freshwater sources and internally recirculated multiple times. The corresponding average water reuse and recirculation ratio R(WRR) is 20 according to ISO 59020 Annex A. 20 times the total water withdrawal results in about 8 billion m3 of recycled and reused water in UPM's processes. Water storage Water storage is not material for UPM. Water quality and quantity in the water basins Water quality and quantity is taken into account by the authorities when setting the relevant permit limits. UPM follows up on water basin quality and quantity in accordance with national arrangements. Water consumption All relevant production sites enter data on water withdrawal and water outflow into a common database where the data is checked and consolidated. If not measured, water withdrawal and cooling water volumes are reported based on estimates. Estimates are done based on pumps' operating times or production, for example. Wastewater volumes are always measured. Consumption is calculated as withdrawal minus outflow. Water inflow and outflow are reported to the relevant local authorities in accordance with the site permits. For UPM's pulp and paper mills in Europe, China and Uruguay, the data is verified and reported in accordance with the EU’s Eco-Management and Audit Scheme (EMAS) by EMAS-accredited auditors. Water recycled and reused An actual measurement of all the water that is recirculated is not made. Internally recirculated water is an estimate, calculated by estimating how much water would be needed for each process stage at a pulp and paper mill, if use was completely linear. Water-use efficiency is tracked through specific wastewater volumes. Reporting principles for metrics

E3-4

Biodiversity and ecosystems (ESRS E4) All activities that alter nature have an impact on the living conditions of local flora and fauna. UPM aims to mitigate negative impacts, and efforts to maintain or enhance biodiversity must be integrated into UPM's operations.

Water consumption

Water withdrawal, outflow and consumption

m 3

2024

2023

Water withdrawal Surface water

391,000,000 378,000,000

Ground water

12,000,000 13,000,000

Communal water

4,000,000 4,000,000

Total water withdrawal

407,000,000 395,000,000

Percentage of certified fibre

Obstacle-free streams achieved

Overall positive development of forest biodiversity measured in Finland and in Uruguay

Water discharge

88.5% 287 km (2030 target: 100%) (2030 target: 500 km)

Process wastewater

198,000,000 197,000,000

Cooling water

184,000,000 173,000,000

Total water discharge

382,000,000 370,000,000

Water consumption Total water consumption

25,000,000 25,000,000

Total water consumption in areas at water risk

0

0

Water intensity

m 3 /EURm

2024

2023

Total water consumption in own operations (m 3 ) per net revenue (EURm sales)

2,430

2,430

Sales correspond to total sales as reported in the Consolidated Financial Statements. » Refer to accounting policies in the consolidated financial statements Note 2.2. Sales.

UPM FINANCIAL REPORT 2024

188

UPM FINANCIAL REPORT 2024

189

188

189

UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024