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 Characteristics of UPM's employees

Headcount by country (with more than 50 employees)

NUMBER OF EMPLOYEES (HEADCOUNT) 2024

NUMBER OF EMPLOYEES (HEADCOUNT) 2023

S1-5

COUNTRY

Finland

6,222

6,281

Targets related to UPM's workforce To manage its sustainability activities, UPM has set several targets and key performance indicators for its workforce-related sustainability focus areas. UPM's sustainability targets are developed internally by UPM by taking the views, wishes and perspectives of external stakeholders from

S1-6

Germany

3,390

3,918

UPM's constant multi-stakeholder dialogue into account. The targets are approved by the GET. » Refer to ESRS 2 GOV-1 Oversight and management of impacts, risks and opportunities

United Kingdom

445

424

Headcount by gender

Poland

1,270

1,183

France

197

216

NUMBER OF EMPLOYEES (HEADCOUNT) 2024

NUMBER OF EMPLOYEES (HEADCOUNT) 2023

Austria

7

290

GENDER

SUSTAINABILITY FOCUS AREA AND KEY PERFORMANCE INDICATOR Continuous learning and development Goal setting discussions are held, and development plans are created for employees Employee perception of good opportunities to learn and grow, as evaluated in the Employee Engagement Survey Responsible leadership Employee engagement, as evaluated in the Employee Engagement Survey Diversity and inclusion Employees' sense of belonging as evaluated in the Employee Engagement Survey Continuous improvement in female representation in professional and managerial roles. Developing leadership and decision-making capabilities with increased diversity

BASE YEAR VALUE

2030 TARGET

TARGET FOLLOW-UP 2024 (2023)

Estonia

263

262

BASE YEAR

Male

11,989

12,797

Spain

64

74

Female

3,835

3,771

2021 88% and 70% 100% completion rate

85% (85) of employees completed individual goal setting or annual discussion, 78% (81%) of employees had a development plan documented Average score of 65 (64). Below global average benchmark by 7 points.

China

1,513

1,572

Other

3

1

United States

745

735

Not reported

0

4

2021 Below benchmark

Clearly above benchmark

Uruguay

874

872

Total employees

15,827

16,573

Malaysia

162

158

*Gender as reported by the employee. At UPM, employees can choose the gender they report. UPM does not have visibility of the legal gender of its employees.

South Africa

39

50

2021 Below benchmark

Clearly above benchmark

Average score of 70 (70). Below global average benchmark by 4 points.

Mexico

133

115

» Refer to Report of the Board of Directors, Key figures: personnel at the end of period.

2021 Below benchmark

Among the top 10% of benchmark companies

Average score of 68 (68). Below top 10% benchmark companies by 11 points.

2022

30.7% 40% female representation

34.5% (32.3%)

Headcount by gender and contract type

FEMALE*

MALE*

OTHER*

NOT REPORTED

TOTAL

Diversity and inclusion initiative

Since 2021

-

Continuous

Dialogue continued on developing inclusive behaviours. Established Employee Resource Group (BeU) on LGBTIQ+ community. Gender pay gap closed.

Number of employees (headcount) Number of permanent employees (headcount) Number of temporary employees (headcount) Number of non-guaranteed hours employees (headcount)** Number of full-time employees (headcount) Number of part-time employees (headcount)

3,835

11,989

3

0

15,827

3,449

11,150

2

0

14,601

Fair rewarding Employees' pay meeting at least local living wage: implementing an annual review

386

839

1

0

1,226

Since 2021

-

Continuous

Company-wide review done considering the threshold of typical family for local living wage. Pay adjustments implemented to close identified pay gaps related to local living wage.

9

33

0

0

42

3,592

11,709

3

0

15,304

Gender pay equity for all employees: implementing an annual review process to identify and close unexplained pay gaps Safe and healthy working environment Fatalities or serious accidents in UPM operations Total recordable injury frequency (TRIF), including contractors Process safety integrated in safety management

Since 2021

-

Continuous Company-wide review done, and pay adjustments implemented to close identified statistically significant unexplained gaps related to gender.

243

280

0

0

523

*Gender as reported by the employee. At UPM, employees can choose the gender they report. UPM does not have visibility of the legal gender of its employees. **Of all the countries in which UPM operates, only Finland currently uses the term 'non-guaranteed hours employees'. UPM is currently collecting information about whether such employees exist in other countries. For Finland, the number of such employees is very small, and reporting the number is therefore not considered material.

Since 2015

-

0 (continuous)

0 (0) fatal accidents, 3 (5) serious accidents

2017

8.5

<2 TRIF 6.1 (6.1) for UPM workforce and 5.1 (5.2), including contractors Process safety gap analyses done in all business areas and roadmap actions being implemented.

Since 2021

-

All sites and businesses

Employees' sense of work-life balance, as evaluated in the Employee Engagement Survey

2022 Below benchmark

Among the top 10% of benchmark companies

Average score of 72 (72). Below top 10% benchmark companies by 7 points

Absenteeism rate, UPM employees

2015

3.7%

<2%

4.2% (4.3%)

UPM regularly measures progress. For example, the results of the annual Employee Engagement Survey (EES) are used as key performance indicators for several of the targets. The high participation rate of 76% (81%) indicates that UPM's employees are interested in improving their

workplace. For other targets, key performance indicators are also followed up at least annually at Group level. OHS indicators such as TRIF are followed up monthly.

UPM FINANCIAL REPORT 2024

216

UPM FINANCIAL REPORT 2024

217

216

217

UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024