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

IFRS sustainability disclosure standard requirement

Global sustainability reporting standards

IFRS S1 & S2 requirements Financial position, financial performance and cash flows

ESRS requirements

Page numbers Additional notes

Topic

The effects of climate-related risks and opportunities on UPM's financial performance Information about effects on UPM's financial performance for the current and future reporting periods Results and implications of the climate resiliency assessment Information about how and when the climate related scenario analysis was carried out including description of inputs and assumptions utilised in the assessment Processes and related policies the entity uses to identify, assess, prioritise and monitor climate related risks and key assumptions Processes the entity uses to identify, assess, prioritise and monitor climate-related opportunities and key assumptions Description of integration of climate-related risk and opportunity processes with overall risk management process

IFRS S2.15

ESRS 2 SBM-3

141-143

GRI - Global Reporting Initiative GRI was established in 1997 and is an international independent organisation that helps businesses, governments, and other organisations understand and communicate their impacts on issues such as climate change, human rights, and corruption. The GRI provides a comprehensive framework for sus tainability reporting, known as GRI standards. UPM has reported in accordance with the Global Reporting Initiative (GRI) Standards for the period 1 January 2024 to 31 December 2024. General and topic-specific disclosures for 2024 in English with a reference to external assurance in the GRI content index have been externally assured by an independent third party Ernest & Young. The Independent Assurance Report is available in UPM’s GRI Content Index 2024 document.

The GRI index document shows where the disclo sures of material topics and general disclosures are addressed in the Annual Report, on UPM’s webpage or in the GRI content index itself. It also includes infor mation on omissions and additional explanations. UPM’s GRI Content Index 2024 document is available on upm.com. ISSB - International Sustainability Standards Board ISSB was established in 2021 by the IFRS Founda tion during the UN Climate Change Conference (COP26). The IFRS Foundation is a not-for-profit, public interest organisation established to develop high-quality, understandable, enforceable, and globally accepted accounting and sustainability disclosure standards. The ISSB’s primary goal is to

create a global baseline of sustainability disclosures that meet the needs of capital markets. In 2023, the ISSB published its first two sustainabil ity disclosure standards: IFRS S1 (General Require ments for Disclosure of Sustainability-related Finan cial Information) and S2 (Climate-related Disclosures). The ISSB and the European Commission services, together with EFRAG, have worked together during the development of the European Sustainability Reporting Standards (ESRS) and the IFRS Sustainability Disclo sure Standards (ISSB Standards) to achieve a high degree of alignment of the respective standards, with a specific focus on climate‑related reporting. A joint interoperability guidance was published in 2024, and builds the basis for UPM's alignment index of IFRS S1 and S2 with UPM's ESRS disclosures. See below for UPM's ISSB-ESRS Alignment Index.

IFRS S2.16 , IFRS S2.17

ESRS 2 SBM-3

141-143

Information about financial effects omitted for fiscal year 2024 according to ESRS Transitional provisions for disclosure requirements including phase-in options

Climate resilience

IFRS S2.22 (a)

ESRS 2 SBM-3; ESRS E1-1

141-143 149-150 149-150

ESRS E1.1

IFRS S2.22 (b), IFRS S1.23; IFRS S1.B42 (c), IFRS S2.23

IFRS S2 - Risk management Management of climate-related risks

141-143 143-145 149-150 152 131-135 141-145

IFRS S2.25(a)

ESRS 2 SBM-3; ESRS 2 IRO-1 ESRS E1-1; E1-2 ESRS 2 GOV-1-2;4; ESRS 2 IRO-1; ESRS 2 SMB-3

IFRS S2.25 (b)

Management of climate-related opportunities Overall risk management IFRS S2 - Metrics Climate and GHG emission-related metrics

IFRS sustainability disclosure standard requirement

IFRS S2.25 (c)

ESRS 2 IRO-1

143-145

IFRS S1 & S2 requirements

ESRS requirements ESRS 2 SBM-2, SBM-3

Page numbers Additional notes

Topic

General requirements

Materiality

IFRS S1.17-19

140-143

ESRS E1-1; E1-4; E1-6

149-150 154-156 158-160 141-143

UPM's Scope 1,2 and 3 related GHG emissions and description of the measurement approach

IFRS S2.29(a), IFRS S2.B56 (a), (b), IFRS S2.B34

Location of disclosures

IFRS S1.60-63

ESRS 2, beginning of the report

126-128

IFRS S2.29 (b)

ESRS 2 SBM-3

Information about financial effects omitted for fiscal year 2024 according to ESRS Transitional provisions for disclosure requirements including phase-in options See above comment for Climate related transition risks

Climate-related transition risks — the amount and percentage of assets or business activities vulnerable to climate-related transition risks

IFRS S1.27(a)-(b)

ESRS 2 GOV-1

131-134

Governance processes, controls and procedures an entity uses to monitor, manage and oversee sustainability-related risks and opportunities Strategy for managing sustainability-related risks and opportunities Material information about the sustainability related risks and opportunities including Metrics and Targets Financial position, financial performance and cash flows

IFRS S1.29(a)-(e)

ESRS 2 SBM-1, SBM-2, SBM-3

136-143

IFRS S2.29 (c)

ESRS 2 SBM-3

141-143

Climate-related physical risks — the amount and percentage of assets or business activities vulnerable to climate-related physical risks; Climate-related opportunities—the amount and percentage of assets or business activities aligned with climate-related opportunities Capital deployment—the amount of capital expenditure, financing or investment deployed towards climate-related risks and opportunities

Sustainability Statement as such

130-245

IFRS S1.30(a)-(c); IFRS S1.32(a)-(b); IFRS S1 45-53

IFRS S2.29 (d)

ESRS 2 SBM-3

141-143

See above comment for Climate related transition risks

143-145

IFRS S1.34-40

ESRS IRO-1 Process in general, Climate related risks

IFRS S2.29 (e)

ESRS 2 SBM-3

141-143

See above comment for Climate related transition risks

Risk Management

IFRS S1.44(a)-(c)

ESRS IRO-1

143-145

IFRS S2 - Governance Governance and management roles Governance processes, controls and procedures IFRS S2 - Strategy Climate-related risks and opportunities Business model and value chain

IFRS S2.6 (a)

ESRS 2 GOV-1, GOV-2 131-134

Description of management bodies and individuals foreseeing climate related risks and opportunities Management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities

Internal carbon pricing

IFRS S2.29 (f) IFRS S2.29 (g)

ESRS E1-8

161

Cllimate related considerations in executive remunerations

ESRS 2 GOV-1

131-134

131-134

IFRS S2.6 (b)

ESRS 2 GOV-1 Management's role in sustainability

ESRS 2 SBM-3

141-143

Information about financial effects omitted for fiscal year 2024 according to ESRS Transitional provisions for disclosure requirements including phase-in options

Information relevant to the cross-industry metric IFRS S2.31; IFRS S2.B65 (e); IFRS S1.21 (b), IFRS S1.50 (c)

Identified material climate-related physical and transition risks and opportunities affecting UPM

IFRS S2.10

ESRS 2 SBM-3, E1 SBM-3

141-143 151

IFRS S2 - Targets Climate-related targets

IFRS S2.33, IFRS S2.B67

ESRS E1-4

154-156

Description of quantitative and qualitative climate-related targets UPM has set to monitor progress towards achieving its strategic goals, law or regulation Information about UPM's approach to setting and reviewing each target, and how UPM monitors progress against each target, Information about UPM performance against climate-related targets

141-143

Current and anticipated effects of climate-related risks and opportunities

IFRS S2.13

ESRS 2 SBM-3, Board of Director's report Risk section ESRS 2 SBM-3; ESRS 2 IRO-1; ESRS E1-1; E1-2; E1-3

IFRS S2.34

ESRS E1-1; E1-4

149-150 154-156

141-143 143-145 149-150 152-153 152-153

IFRS S2.14 (a)

Strategy and decision-making

Information about how UPM has responded to, and plans to respond to, climate-related risks and opportunities in its strategy and decision-making UPM's resourcing, and plans to resource, the activities disclosed Progress of plans disclosed in previous reporting period

IFRS S2.35

ESRS E1-1; E1-4

149-150 154-156 149-150 154-156 160-161

IFRS S2.14 (b)

ESRS E1-3

Information about scope of climate-related targets IFRS S2.36 (a), (b), (d)

ESRS E1-1; E1-4

IFRS S2.14 (c)

ESRS E1-1

149-150

Information about use of carbon credits

IFRS S2.36 (e)

ESRS E1-7

358

359

UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024