UPM Annual Report 2024

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WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Report of the Board of Directors

Sustainability Statement

Financial Statements

Auditor's Report

Sustainability Assurance Reports

Adequate wages

Health and safety

salary is assessed against the local living wage threshold. Total annual salary includes pay elements which are qualified as regular and guaranteed pay, e.g. base salary, regular shift pay and fixed cash allowances. All unexpected living wage gaps are vetted by appropriate human resource personnel. Local information is utilised to validate the proposed adjustments to make sure that all contextual factors are taken into account. These control mechanisms ensure that living wage adjustments are also locally justified and enable UPM to correct living wage gaps. Social protection

Reporting policies for metrics

S1-14

Lost-time accident frequency Lost-time accidents per million hours worked. The calculation is as follows: ('Lost Time Accidents'+'Serious Accidents'+'Fatal accidents')/ (Actual hours worked)*1,000,000. Lost time accident – an accident at work which resulted in one or more days of absence or disability. Lost time accident type excludes modified duties, medical treatment and first aid cases but includes serious and fatal accidents. UPM reports separately for workforce (including UPM employees and supervised workers) and contractors. Disclosure is based on the following annual data: incidents occurring from January to December; and actual hours worked from December to November. Total Recordable Injury Frequency Recordable injuries per million hours worked. The calculation is as follows: ('Lost Time Accidents'+'Serious Accidents'+'Fatal accidents'+'Modified duty'+'Medical treatment')/'Actual hours worked (UPM)'*1,000,000. Total Recordable Injury type excludes first aid cases. UPM reports separately for workforce (including UPM employees and supervised workers) and contractors. Disclosure is based on the following annual data: incidents occurring from January to December; A contractor is a person or organisation which provides services to UPM as agreed. Contractor personnel are not directly employed by UPM. Contractor actual working time consists of all hours contractors have worked in UPM premises or under UPM supervision. Contractor working hours are used to calculate lost-time accident frequency and total recordable injury frequency. If working hours are not collected based on a time attendance system, an estimate is used. UPM has defined and published the method for calculating contractor working hours if the exact number is unavailable. Estimates are based on the number of workers or on contract monetary value. Absenteeism % Absence percentage due to illness and accidents at work. Illness includes Absence hours due to illness, Absences due to accidents during travel to/from work and Absence hours due to accidents during time off work. Accidents at work include Absences due to accidents at work and Absences due to occupational diseases and illnesses. These figures are added and then divided by Theoretical working time and then multiplied by 100. All hours of absence from work due to accidents at work are included (including the hours of the day when the accident occurred). In 2023, the data from a few sites was incomplete. These sites account for around 3% of the total theoretical working time and have no significant impact on the results. Number of occupational diseases (= Work-related ill health) The number of new cases which have been officially diagnosed and reported as occupational diseases during the reporting year. The reporting year is the last year, except for Germany, where cases are reported for the penultimate year. and actual hours worked from December to November. Contractors and contractor working hours

S1-10

All UPM employees are paid at least an adequate wage in line with applicable benchmarks in the disclosure requirements. UPM is using the living wage concept to review this annually. The living wage is an equivalent concept to adequate wages, which provides a more specific cost of local living as a benchmark. UPM's living wage review is conducted annually in cooperation with an established external partner using a proven methodology, process and benchmark, including local living wage threshold values of typical family for all UPM's operating countries and cities. If any pay gaps are identified, adjustments to pay are made annually. UPM's living wage review is global by default, applies to both salaried and shopfloor employees in UPM operating countries, and includes those workforce segments where salaries can be reasonably and fairly adjusted. If the global assessment shows unexpected wage gaps, they are corrected. In the review, an employee’s total annual

Percentage of employees covered by OHS management systems

2024 100%

UPM's OHS management system

Third-party certified OHS management system

74%

All UPM's employees are covered by UPM's OHS management system. The majority of UPM's production units have the ISO 45001 Occupational Health and Safety management system certification. In 2024, certified systems were in place in 43 units with a total of 11,800 employees, which covers 74% of all UPM employees. The number of non-employees in UPM's own workforce (agency hires) is so small that it would not affect the overall percentage, so the breakdown is not disclosed. Occupational Health and Safety (OHS) metrics for UPM workforce

S1-11

For 2024, UPM's disclosure covers its seven largest operating countries, Finland, Germany, Uruguay, China, Poland, the USA and the UK, accounting for approximately 91% of UPM's employees.

EEMPLOYEES COVERED AGAINST

FINLAND GERMANY

URUGUAY

CHINA

POLAND

USA

UPM WORKFORCE

2024 2023

Sickness

yes

Total injuries per one million hours worked, TRIF *

6.1

Unemployment

yes

Lost-time accidents per one million hours worked, LTAF

3.4

3.7

Injury and disability

yes

no**

Number of accident *

166

168

Parental leave

yes

yes*

yes

Number of serious accidents

Retirement

yes

Number of fatalities **

*Maternity leave only ** Employees without 5 years of service not covered Persons with disabilities

Number of days lost due to work-related injuries ***

3,200 3,200

Absenteeism %

4.2

4.3

Number of work-related ill-health cases ****

Participation in regular performance and career development reviews

*The number of non-employees in UPM's own workforce (agency hires) is so small that a breakdown is not material. **No non-employees fatalities – breakdown therefore not disclosed. ***The number of non-employees in UPM's own workforce (agency hires) is so small that a breakdown is not material. ****No work-related illnesses involving non-employees – breakdown therefore not disclosed.

INDIVIDUAL GOAL SETTING OR ANNUAL DISCUSSION COMPLETED

S1-12

DEVELOPMENT PLAN DOCUMENTED

Due to legal restrictions, UPM cannot require its employees to report their disabilities. This information can only be collected on a voluntary basis, and UPM does not currently collect such information. Training and skills development

Female

70%

82%

Male

80%

85%

Other

n/a

Occupational Health and Safety (OHS) metrics for UPM workforce and contractors

Total

78%

85%

UPM WORKFORCE INCLUDING CONTRACTORS

Average number of training hours per employee

S1-13

2024 2023

Total injuries per one million hours worked, TRIF

5.1

5.2

2024

2023

In 2024, 78% (81%) of employees had documented development plans, and 85% (85%) had completed individual goal setting or annual discussion.

Female

Lost-time accidents per one million hours worked, LTAF

3.2

3.4

Male

Number of accidents

253

267

Other

Number of serious accidents

n/a

Total

Number of fatalities

UPM FINANCIAL REPORT 2024 220

220

UPM FINANCIAL REPORT 2024

221

UPM ANNUAL REPORT 2024

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