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 in 2024 • The main focus was on the Company-wide Safety project aiming to improve safety-related processes and tools from employees’ perspective. The development areas of safety were identified by employee dialogues in more than 50 production and office sites. The focus areas of the project cover various topics from improving the safety on-boarding and training to more user-friendly digital tools and systems and improving the efficiency of the safety audits to boosting the safety culture and leadership. • UPM continued to systematically develop process safety related competences by producing a new, global e-learning for process safety. The current state analysis of process safety continued in operations including the definition of the business area specific development plans for the coming years. The key process safety elements were integrated into the project management manual. Process safety aspects were reviewed as part of the loss prevention surveys conducted by an external partner at our mills. • UPM continued to implement the UPM Health and Wellbeing concept. The health and wellbeing pulse survey was conducted in May. The survey included more questions on Health and Wellbeing than earlier, based on the feedback from Employee dialogue discussions. In general, the scores slightly decreased compared to the 2023 survey. • During the year, several virtual health and wellbeing campaigns, as well as local activities, were organised. UPM also organised targeted virtual support services for mental wellbeing at selected sites.

Planned actions • The Safety project continues in 2025 focusing on the digital tools and systems, and the visibility of safety in daily operations. Also, the Behavioural safety leadership training programme continues in 2025. • UPM will continue to organise process safety related targeted trainings. The business areas continue to implement their own process safety action plans. • A global concept for occupational health will be developed during 2025. Resources

UPM also regularly reports progress in several external indices. UPM's internal analysis confirm that men and women have equal opportunities for professional growth at UPM. UPM has set a target for female representation in professional and management roles. Actions in 2024 • Diversity and Inclusion discussions continued in businesses and functions • BeU Employee Resource Group for LGBTIQ+ continued after established in 2023 • Management Team diversity reviewed and diversity KPIs reviewed • Emerged gender pay gap closed Planned actions • Continue benchmarking – learning from other companies that have successfully implemented LGBTIQ+ initiatives • Continue to develop and implement the BeU Safe Contacts concept, recruit and train the contacts • Continue the implementation of female leadership target setting related action plans • Review of HR related guidelines from D&I point of view. Fair rewarding Key actions In accordance with the UN's Sustainable Development Goals, UPM has set clear focus areas and targets for its work on social responsibility. UPM wants to ensure fair, equitable and competitive rewarding for all UPM employees globally. UPM is committed to gender pay equity and to paying at least the living wage to all its employees. UPM's commitment to fair rewarding is stated in UPM's Code of Conduct and further specified in its policies and rules on rewarding. UPM's commitment to fair rewarding is included in its 2030 social responsibility targets, where UPM has two specific initiatives: first, ensuring all UPM employees’ pay meets at least the local living wage; second, ensuring gender pay equity for all employees. For both these initiatives, UPM is committed to conduct annual reviews and to close any identified gaps in pay. UPM has been monitoring and paying a living wage to all UPM employees since 2019. UPM's commitment to pay the living wage covers all countries where it operates and applies to both salaried and shopfloor employees. UPM conducts a living wage assessment annually in collaboration with an external partner, with a proven methodology, process and living wage benchmarks in place. UPM's partner helps define the baseline and provides living wage estimates for all countries and cities where UPM operates. UPM has also carried out an annual gender pay gap review and corrected unexplained pay gaps since 2021. UPM's commitment to gender pay equity covers all countries where UPM operates and applies to both salaried and shopfloor employees. UPM's gender pay equity review seeks to identify possible gender pay gaps that cannot be explained by such factors as job performance, work experience, job grade or location, or any other legitimate factors that typically determine pay and its development. In 2023, UPM joined the UN Global Compact Forward Faster Initiative with 138 other companies. The goal of this initiative is to accelerate progress towards the 2030 Sustainable Development Goals. By joining the Gender Equality area of action, UPM commits to taking action to advance equal representation, participation and leadership across all levels of management and equal pay for work of equal value.

UPM's commitment in particular encompasses two focus areas: promoting gender equality and ensuring living wages. Actions in 2024 • Annual review for 2024 conducted successfully for both gender pay equity and living wage review, and identified gaps have been closed. • Continuous and proactive training and coaching for managers and Business HRs conducted to support them in pay determining situations. • Continuous focus on robust people processes and reliable and comprehensive data. Planned actions • Continue to develop methodology and process for both gender pay equity and living wage annual reviews, in collaboration with established external partners, to gain further potential and drive progress in fair rewarding focus areas. • Continue to discuss these topics with various stakeholders across the organisation and continue the training. Safe and healthy working environment Key actions UPM's safety work is based on long-term planning, effective communications and leadership. Safety is integrated into all UPM's daily operations, and in new and ongoing projects, proactive safety is an integral part of project plans and site practices. UPM's OHS management systems are based on the principle of continuous improvement and include extensive internal and external audits and management reviews. The systems cover 100% of UPM's units and all their employees, as well as all contractors working on site. Annual safety audits are an integral part of UPM's OHS management system. Cross-functional audits provide valuable feedback on selected OHS processes and daily activities. UPM's safety standards cover procedures such as risk assessment, permits to work, safe contractor work, safety reporting, etc. All accidents, near-misses and other incidents are documented and evaluated in UPM's global safety tool. UPM also documents incidents involving contractors' employees. UPM aims to have an accident-free workplace. All accidents are thoroughly investigated in close cooperation with the authorities and contractors. Corrective and preventive actions are initiated, and the key learning points are shared across all operations to prevent similar accidents in future. Thorough investigation of incidents and effective risk management play an important role in making UPM's operations safer. UPM recognises exemplary safety performance with Company-wide awards. The safety training needs of UPM's employees are assessed based on the employee's role and needed safety-related skills and competence and input from safety committees, suggestions from employees or management, results of audits and incident investigations, changes in legislation, changes in processes, etc. A training plan is then drafted, and relevant trainers are identified. Trainers can be internal experts or external specialists. Safety training can take the form of e-learning, classroom sessions, hands-on training or a combination of these.

In general, workforce-related activities are included in UPM's overall investment and resource planning.

UPM FINANCIAL REPORT 2024

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UPM FINANCIAL REPORT 2024

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024