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

ACTIONS

Learning and development

case basis. Remediation is determined case by case, based on verified impacts. » See G1-1 for more information about handling concerns Diversity and inclusion All UPM employees are responsible for creating a diverse and inclusive working environment. It is important to employ people with different competences, backgrounds and experiences, as well as different genders, ages and nationalities, to bring together different views and improve decision-making and business success. All UPM employees are expected to build and encourage a culture that allows different views, and where everyone has the opportunity to contribute. UPM is committed to a European-wide diversity charter initiative to develop a diverse and inclusive workplace. UPM promotes equal opportunities and does not tolerate direct or indirect discrimination against anyone based on gender, age, ethnicity, race, nationality, family ties, religion, sexual orientation, disability, political opinion, trade union affiliation, or any other similar aspect related to a person. There shall be no direct or indirect discrimination in relation to selection criteria in resourcing. In personnel planning and recruitment the selection criterial will be based on a person’s skills and competences. Application and recruitment processes shall be open and transparent whenever applicable. The working environment and facilities shall be developed so that they do not prevent equality between employees. All employees shall have a chance to develop in their work. Employees are given equal career opportunities based on their qualifications and the business needs. Sexual or other forms of harassment – whether verbal, physical or visual -, harsh or inhuman treatment, is not tolerated. UPM does not engage in behaviour that could be characterised as offensive, intimidating, threatening, malicious or insulting. The UPM Code of Conduct, UPM's values and the UPM HR Rules address these topics. PROCESSES Processes for workforce engagement Every year, UPM's Employee Engagement Survey (EES) is available for all employees across the Company to evaluate various aspects of their working environment. It is an important way of measuring the Company's success in developing as an employer and progress in achieving the social responsibility targets that are important to UPM, such as safety, diversity and inclusion, learning and growth, and leadership. The EES provides an opportunity to monitor long-term trends and progress on agreed development activities annually. This progress is followed up and evaluated to enable continuous development of the workplace at both organisational and team levels. To complement the EES, a UPM Health and Wellbeing pulse survey has been conducted for the last three years. The pulse focuses on the main elements of the UPM's health and wellbeing approach. S1-2

UPM aims to empower and engage employees at all levels through responsible leadership, with different forums to facilitate continuous dialogue between employees and business management, for example. UPM engages in both formal and informal consultations with trade unions and actively promotes employee participation and consultation in accordance with international and national rules and regulations. To promote employee participation, consultation and dialogue between UPM's business areas and country management, and employee representatives and employees at national level, UPM's countries have cooperative bodies that operate based on country-specific rules, regulations and UPM's practices. In addition, to promote an open international dialogue between management and employee representatives, UPM has a cooperative body, the UPM European Forum, which focuses on issues related to changes in the Company and the business environment in general. The Forum organises regular meetings for employee representatives from business units operating in Europe. The Human Resources function and the Executive Vice President of Human Resources have operational responsibility for ensuring that employee engagement takes place. The effectiveness of UPM's engagement with its own employees is assessed through the EES and individual target setting and follow-up discussions. Processes for raising and handling concerns

Key actions UPM encourages its employees to pursue professional growth and supports them in learning and developing their skills further. Ensuring high performance for business success and continuous professional development of employees are UPM's long-term targets and an important focus area for its work in social responsibility. UPM invests in the growth of its employees and expects individuals to be eager to learn and develop. All employees are encouraged to create an individual development plan and keep it up to date. UPM applies the 70-20-10 learning and development framework: 70% of the learning takes place on the job; 20% comes from sharing with and learning from colleagues; and 10% comes from training. Expert communities play an important role in sharing and learning across the Company. The learning impact is measured by evaluating the degree to which participants apply what they have learned during training when they are back on the job. UPM continuously introduces new digital learning content and online programmes to develop skills in commerce, sourcing, finance, compliance, safety, leadership and design thinking, for example. New digital solutions to enhance operator experience were created and tested successfully on some production sites and promoted for others. In the longer run, shopfloor employees will be able to access relevant digital learning content in the flow of work more easily. UPM encourages and enables employees to contribute to projects such as gigs and expert communities. These are goods ways to contribute, learn new skills and network. UPM has developed a project approach to support the project way of working and enable success in different development projects. Actions in 2024 • Continued with the Career Experience campaign • Promoted digi-enabled operator experience • Brought new learning methods, e.g. microlearning creation • Copilot learning solutions and piloting Future actions • Support for development and growth visible in management practices, e.g. feedback, development planning • Renewal of shopfloor annual discussions • Enabling relevant digital learning for shopfloor employees

S1-4

UPM's identified material topics have been defined as a result of a double materiality analysis, considering impacts, risks and opportunities related to its own workforce. Based on these material topics, the following focus areas related to UPM's own workforce have been developed: • Responsible leadership • Continuous learning and development • Diversity and inclusion • Fair rewarding • Safe and healthy working environment For each focus area, the key actions, previous year's key actions and future key actions are presented below. UPM monitors the effectiveness of its actions to manage material impacts by tracking and reporting on the progress of its sustainability targets for 2030. » Refer to S1-5. Responsible leadership Key actions UPM continuously develops leadership capabilities and management teams, as well as the working environment. UPM provides leaders with tools for receiving feedback to develop their leadership and teams. They receive relevant and timely employee engagement data about their teams and organisation. UPM also provides a leadership development programme portfolio that supports the three cornerstones of leadership at UPM: leading oneself; leading people; and leading business. Leadership development focus areas and solutions are continuously reviewed and renewed. UPM focuses on improving the performance and motivation of people through feedback, development planning, agile goal setting and regular one-to-one discussions. Actions in 2024 • Update of management team development concept • Organisational Health Index survey • Renewal of UPM's leadership frame and assessment tools • Update of UPM's global leadership development portfolio, e.g. human-centric leadership, senior leadership programmes • Awareness building and experimenting of AI Planned actions • Continuous renewal of the programme portfolio to ensure relevant leadership capabilities for any business situation • People manager development solutions to strengthen leadership which enables everyone to grow, perform and achieve business results • Encouraging experimentation to promote creativity, testing of ideas and data-driven decisions

S1-3

UPM has implemented processes for reporting, identifying and investigating concerns and for handling incidents, including remediation and protection against retaliation. These processes cover all stakeholders, including UPM's own workforce. » Refer to G1-1 for detailed information.

• Learning to integrate AI for personal productivity • Encouraging rotation as a way to learn and develop

Diversity and inclusion

Key actions Developing a diverse and inclusive workplace starts with three things: committing to diversity and inclusion; monitoring data and processes regularly; and developing leadership and working culture. UPM's approach to promoting diversity and inclusion is also enshrined in its Code of Conduct and other Company policies, its social responsibility targets, inclusive leadership, and transparent recruitment. UPM regularly reviews its diversity status and data. UPM's management teams conduct self-assessments that address diversity and inclusion. Managers and HR have dashboards with diversity data. Processes such as rewarding and recruitment are followed-up regularly.

UPM FINANCIAL REPORT 2024

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UPM FINANCIAL REPORT 2024

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024