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

Collective bargaining coverage and social dialogue

Headcount by region

AMERICAS

ASIA

EUROPE REST OF THE WORLD

TOTAL

Number of employees (headcount)

1,797 1,780

1,844 1,498

12,100 11,239

86 84

15,827 14,601

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)

S1-8

17

346

861

2

1,226

The percentage of total employees covered by collective bargaining agreements was 49% (52%) in 2024.

0

0

42

0

42

1,767

1,843

11,610

84

15,304

30

1

490

2

523

COLLECTIVE BARGAINING COVERAGE

SOCIAL DIALOGUE

EMPLOYEES – EEA* (FOR COUNTRIES WITH >50 EMPL. REPRESENTING >10% TOTAL EMPL.**)

EMPLOYEES – NON-EEA* (ESTIMATE FOR REGIONS WITH >50 EMPL. REPRESENTING >10% TOTAL EMPL.)

WORKPLACE REPRESENTATION (EEA* ONLY) (FOR COUNTRIES WITH >50 EMPL. REPRESENTING >10% TOTAL EMPL.)

*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 on these employees is therefore not considered material.

COVERAGE RATE

0–19%

—

—

—

20–39% 40–59% 60–79% 80–100%

—

—

—

Characteristics of non-employees in UPM's own workforce

Employee turnover

Finland (57%)

—

—

2024

2023

Germany (75%)

—

—

—

—

Finland, Germany

Total number of employees who left UPM

2,148

1,846

S1-7

Rate of employee turnover

13.6%

11.1%

*European Economic Area **For UPM operating countries, only Finland and Germany fulfil these criteria

Headcount of non-employees

Reporting principles for metrics

Since 2010, UPM has had its own European Forum agreement, which is an agreement provided for the European Works Council (EWC) Directive and covers UPM employees in EEA. Diversity metrics

2024

2023

Employee figures are based on UPM's global total headcount definition, including employees classified as active and inactive, and are calculated as heads unless otherwise stated. Headcount is calculated at the end of the reporting period. All types of contracts are divided into two categories: permanent and temporary ("fixed-term" in GRI and UPM terminology). Permanent contracts include all contracts valid until further notice, as well as employees not covered by employment contracts, such as in the USA, where all employees are classified as "Employment at Will". Turnover is calculated based on the number of all types of terminations, whether voluntary or involuntary (number of persons leaving 1 Jan–31 Dec/Total headcount 31 Dec). Contextual information In 2024, UPM permanently closed its UPM Hürth paper mill in Germany, one paper machine at UPM Nordland in Germay and its biocomposite business. UPM Raflatac acquired the Belgian-based company Grafityp with a production site in Belgium and a distribution centre in the UK.

Total number of non-employees (agency hires) in UPM's own workforce

344

168

The number of agency hires has been fairly stable throughout the year and over the years.

S1-9

Reporting principles for metrics

Gender distribution of top management

Employees by age group

UPM's non-employees consist of two categories: independent contractors; and agency hires. Independent contractors are self employed individuals who provide services or labour to UPM and are bound by a direct contractual arrangement other than a contract of employment. UPM currently estimates that the number of such independent contractors in UPM is very small and therefore not material to report. Agency hires are individuals employed by employment agencies or labour contractors to work at UPM's sites under UPM's direct supervision. Agency hires are not directly employed by UPM. The most common type of non-employees are agency-hired employees, who are provided to UPM by companies whose main activity is employment. Agency-hired employees do not have an employment contract with UPM and are not included in UPM's official employee figures. Examples of the types of work they perform are: production operators; mechanical technicians; automation technicians; forklift truck operators; quality operators; and converting department operators; finishing department operators; or coating department operators. UPM initiated an internal survey across all sites to gather information about the number of independent contractors hired during 2023. As the results indicated that the number was very small, they are not material to report.

NUMBER OF EMPLOYEES (HEADCOUNT) 2024

NUMBER OF EMPLOYEES (HEADCOUNT) 2023

TOP MANAGEMENT* NUMBER

GENDER

PERCENTAGE

AGE GROUP

Female

25

31%

Under 30

2,071 8,188 5,568

2,136 8,612 5,821

Male

55

69%

30–50

Over 50

* Two levels below the President and CEO, excluding assistants

Not reported

0

4

Total

15,827

16,573

UPM FINANCIAL REPORT 2024

218

UPM FINANCIAL REPORT 2024

219

218

219

UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024