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

TARGETS

S2-5

Affected communities (ESRS S3) UPM aims to be a good neighbour and trusted partner to all people, economies and environments affected, both directly and indirectly. For UPM's business and forestry operations, this means active engagement and dialogue with local communities.

Targets related to UPM's value chain workers To manage its sustainability activities, UPM has set a number of targets and key performance indicators for its sustainability focus areas covering the supply chain (Forestry, Responsible Sourcing) and suppliers working on site in UPM's premises (Health and Safety). UPM's sustainability targets are developed internally by UPM by taking the

views, wishes and perspectives of external stakeholders from 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

BASE YEAR VALUE

BASE YEAR

2030 TARGET

TARGET FOLLOW-UP 2024 (2023)

SUSTAINABILITY FOCUS AREA AND KEY PERFORMANCE INDICATOR

Local support and charitable donations under the Share and Care programme amounted to approximately 1.7 EUR million

Supported local learning and education initiatives in our mill communities and provided aid to people suffering from natural disasters and conflicts

Forestry Share of certified fibre *

Human Rights Impact Assessment conducted in Uruguay by an external party

2015

84%

100%

88.5% (87.0%)

Responsible sourcing UPM total spend covered by UPM Supplier and Third-Party Code

2015

79%

>80% (continuous)

91% (89%)

Safe and healthy working environment Fatalities or serious accidents in UPM operations

Since 2015

- 0 (continuous)

0 (0) fatal accidents, 3 (5) serious accidents TRIF 5.1 (5.2), including contractors

Total recordable injury frequency (TRIF), including contractors

2017

8.5

*Forest management certification

UPM's sustainability target-setting is based on an annually updated double materiality assessment, which includes the interests and concerns of various stakeholders. » Refer to ESRS 2 IRO-1 Materiality assessment process UPM's sustainability targets are followed up at Group level at least annually. In addition to set targets, UPM continuously strives to improve its processes and its performance, including in relation to workers in the value chain. The improvement areas are identified in various supplier assessments. Supplier audits and reviews form the basis for supplier

development activities and collaboration, which drive improvement in the suppliers' performance. Corrective action plans and follow-up assessments and audits are utilised to confirm that identified improvement areas are addressed. For example, UPM's occupational health and safety management systems are based on the principle of continuous improvement. » Refer to S1-4 Safe and healthy working environment for information about UPM's key actions in this area. » Refer to S1-14 Health and Safety for information about reporting principles for metrics such as TRIF.