UPM Annual Report 2024

First page Table of contents Previous page 234-235 Next page Last page

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Report of the Board of Directors

Sustainability Statement

Financial Statements

Auditor's Report

Sustainability Assurance Reports

TARGETS

UPM's Share and Care Programme

Planned actions • Implementing a policy for local community engagement striving to enhance UPM's relationships with its local communities, gain insights into community needs, and track progress of its engagement activities, including the implementation of renewed internal Company rules concerning donations, sponsorships, and employee volunteering. • Continue supporting and engaging with the communities where we operate, in alignment with the Share and Care programme. Incidents and remediation In 2024, no severe human rights incidents related to affected communities have been reported. » Refer to S3-1 Human rights in the affected communities UPM monitors and works to remediate negative human rights impacts of which it becomes aware, and which the Company's activities have contributed to or caused. Remediation is specified case by case, based on verified impacts. The UPM compliance system covers remediation and ensures the adequacy of the process. Resources

Key actions UPM's Share and Care Programme focuses on delivering positive impacts for communities through various initiatives. The programme demonstrates UPM's dedication to responsibility and local community involvement through sponsorships, donations and employee voluntary work. Actions in 2024 • In 2024, local sponsorships and other contributions under the Share and Care Programme amounted to approximately EUR 800,000 (EUR 900,000). A total of EUR 920,000 (EUR 533,800) was donated to charities or other non-profit causes such as Aalto University, University of Helsinki, Save the Children Finland, Junior Achievement (JA) Finland and American Red Cross. • In 2024, UPM initiated development of a policy related to local community engagement including the internal Company rules concerning donations, sponsorships, and employee volunteering. This was followed by a review of the focus areas of the Share and Care Programme and local practices. • UPM Foundation in Uruguay continued to support initiatives to promote education and entrepreneurship in rural areas.

S3-5

Targets related to local communities To manage its sustainability activities, UPM has set several targets and key performance indicators for its sustainability focus areas covering the supply chain (Forestry, Responsible sourcing) and UPM's own operations (Community involvement). 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

SUSTAINABILITY FOCUS AREA AND KEY PERFORMANCE INDICATOR

BASE YEAR

2030 TARGET

TARGET FOLLOW-UP 2024 (2023)

Community involvement Assessment of quality of community relationships and define actions at relevant sites

Since 2021

Continuous

A Human Rights Impact Assessment conducted in Uruguay by an external party and a development plan created. A preliminary policy for community engagement established, with implementation planned for 2025 Supported local education and learning initiatives to help local communities within our operational sites, and continued to provide aid to people, especially children, impacted by conflicts, wars and natural disasters, such as flooding in Poland and the USA.

Long-term initiative(s) that impact their mill communities defined in line with the Share and Care Programme

Since 2021

- All businesses (continuous)

In general, activities related to affected communities are included in UPM's investment and resource planning.

Forestry Share of certified fibre *

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%)

*Forest management certification

UPM's sustainability targets are followed up at Group level at least annually.

UPM's process of setting its sustainability targets 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