UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

Sustainability targets and progress To implement our strategy and manage our sustainability activities, we have defined several sustainability focus areas, targets and key performance indicators for 2030. These are reviewed annually based on the strategy and the results of the double mate riality assessment (DMA), which identifies our impact on people and the environment, as well as sustainability-related risks and opportunities. Our sustainability targets contribute have the greatest impact, either by minimis ing our negative impacts or by increasing our positive impacts on people, societies and the environment. There are others that are also relevant to us, but to a lesser extent. Climate change mitigation We focus strongly on contributing to climate change mitigation. We have SBTi-approved targets for reducing fossil CO 2 emissions from our own combustion processes (Scope 1), from purchased electricity and heat (Scope 2), and from sourced materials and logistics (Scope 3). The Scope 1 target is supported by targets for increasing energy efficiency and the use of biomass-based fuels and to phase out the use of coal and peat. We

ENVIRONMENTAL

Key performance indicator

Contribution to the SDGs

Focus area

2030 target

2024 result

Forestry Ensuring sustainable land use

Climate-positive land use in UPM's own and leased forests

Forests as carbon sinks (continuous)

Five-year annual average carbon sink was approx. -2.1 Mt of CO 2 equivalents

New responsible sourcing target In 2024, we aligned the targets for respon sible sourcing with our Sustainable Supply Chain Programme launched in 2023. We set a new target for 2030 to highlight the impor tance of strategic, critical and high sustaina bility risk suppliers. Our goal is for all these suppliers to indicate low sustainability risk in the EcoVadis assessment.

Share of certified fibre 1)

100%

88.5% (87.0%)

Biodiversity Enhancing biodiversity

Positive development (continuous)

Overall positive development measured in Finland and in Uruguay

Positive impact on forest biodiversity and developing a monitoring system 2 )

positively to achieving the UN Sustainable Development Goals. We have selected six goals and 12 targets within them that are most relevant to us, based on where we can

have also set targets to promote climate positive land use and a climate-positive product portfolio.

500 km

287 km (263 km) reached

Obstacle-free streams3 )

Climate Creating climate solutions and working towards carbon neutrality

Fossil CO 2 emissions from UPM's on-site combustion and purchased energy (Scope 1 and 2), compared to 2015 Coal and peat usage in on-site energy generation

-65%

-50% (-45%) compared to 2015 and -9% compared to 2023

Goal 6: Clean water and sanitation (Target: 6.3)

Goal 8: Decent work and economic growth (Targets: 8.2, 8.5 and 8.8)

Goal 13: Climate action (Target: 13.1)

7% of total fossil fuel usage, +4% compared to 2023

0

Not achieved

Annual energy efficiency improvement

1% (continuous)

Goal 12 : Responsible consumption and production (Targets: 12.2, 12.4 and 12.5)

Goal 7: Affordable and clean energy (Targets: 7.2 and 7.3)

Goal 15: Life on land (Targets: 15.2 and 15.5)

80% (76%)

Share of renewable fuels

70% (continuous)

Acidifying flue gases (NO X /SO 2 ) for a UPM average product, compared to 2015 Chemical oxygen demand (COD) for a UPM average product, compared to 20084 ) Wastewater volume for a UPM average product, compared to 20084 ) Nutrients used at effluent treatment from recycled sources4 )

-20%

-19% (-17%)

ECONOMIC

Water Using water responsibly

-40%

-44% (-39%)

Key performance indicator

Contribution to the SDGs

Focus area

2030 target

2024 result

-30%

-16% (-7%)

Profit Creating value to shareholders

Comparable EBIT

Comparable EBIT growth through focused top-line growth and margin expansion (continuous)

21% increase to EUR 1,224 million (1,013 million)

100%

33% (33%)

8.3% (6.2%)

Comparable ROE

10% (continuous)

Waste Promoting material efficiency and circular bioeconomy – reduce, renew, reuse, recycle and recover

18% increase compared to 2023, 83% (87%) of UPM’s process waste recovered or recycled

Process waste sent to landfills or to incineration without energy recovery

0

1.66 times (1.55)

Net debt/EBITDA

2 times or less (continuous)

Governance Ensuring accountability and compliance

99% (98%) of active employees completed the training *)

Participation in UPM Code of Conduct training*

100% (continuous)

Product stewardship Taking care of the entire lifecycle

Decarbonisation solutions: 8% of sales

Climate-positive product portfolio

Continuous

Responsible sourcing Adding value through responsible business practices

91% (89%)

UPM spend covered by UPM Supplier and Third-Party Code

80% (continuous)

For example, UPM Solargo TM , a new range of bio-based plant stimulants

Development of new products and services with contribution to SDGs

Continuous

New target

Strategic, critical and high sustainability risk supplier spend covered by EcoVadis assessment indicating low sustainability risk CO 2 emissions from materials and logistics (Scope 3), compared to 2018

100%

Share of applicable products eligible for ecolabelling out of UPM sales

100%

89% (89%)

-30%

-22% (-23%) compared to 2018

1) Forest management certification 2) Covers UPM's own forests in Finland and UPM's land in Uruguay 3) Relevant for Finland, based on year 2015, methodology change in 2024, recalculation of 2023 figure 4) Relevant for pulp and paper production

*) excluding UPM Raflatac companies acquired in 2024

30

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024