UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

CREATING VALUE FOR PEOPLE AND SOCIETY

Action Programme, we collaborate with the Finnish Osprey Foundation and Vida Silves tre in Uruguay. We are an active international stake holder member of the PEFC (Programme for the Endorsement of Forest Certifica tion, PEFC/02-44-41) and participate in the development of the PEFC forest certification system, reflecting our aim to promote sus tainable forest management globally. Responsibility issues are also being raised in customer enquiries, with product safety, sustainable forest management and climate change key themes. Globally, we continue to work with the local permit authorities. Green transition high on the policy agenda Through public affairs work, we aim to promote the necessary prerequisites for our operations, particularly in our main oper

ating countries Finland, Uruguay, Germany and China. Active influencing at the EU level is also important. Our public affairs activities are based on our strategy and are also in line with the Paris Agreement. We also have topic-specific steering groups that guide our public affairs activities, and the Group Executive Team regularly reviews these topics. We cooperate with several trade associa tions, the most important being the Finnish Forest Industries Federation (FFIF) and the Confederation of European Paper Industries (Cepi). As we enter into new businesses, we also need to find new ways and forums for cooperation. For example, UPM is a founding member of the Advanced Biofuels Coalition in the EU and is a member of the European Chemical Industry Council (CEFIC). Our company is also represented in the decision-making bodies of these trade associ

Active dialogue with stakeholders Understanding the views and expectations of our stakeholders plays a crucial role in the success of our company and the acceptance of our operations.

CASE STUDY CASE STUDY

ACTIONS IN 2024 • Numerous customer and partner visits to the Leuna Biorefinery and nearby forests. • A railway safety awareness pro gramme in Uruguay with the Uruguay an Ministry of Transport and Public Works and the Automóvil Club del Uruguay. • Continued engagement with local indigenous peoples’ communities to learn more about their approach to forest management in the USA. • Initiated the development of a policy on local community engagement,

FUTURE SCHOOL INSPIRES YOUNG PEOPLE TO SHAPE A BRIGHTER FUTURE

CHALLENGE Less than half of young Finns believe that humanity can solve the biggest global problems. A frightening future undermines hope and the ability to act. ACTION UPM has supported the Children and Youth Foundation's Future School in 2022–2024 as part of its Share and Care programme. The aim of the school is to teach young people skills to see alternative futures and provide tools to deal with complex phenom ena. Over three years, hundreds of workshops have been held, more than 600 education professionals have been trained and digital learning materials have been developed. Launched in September, "The Future Agency" is the world's first open digital futures thinking environment, availa ble in Finnish, English and Swedish. IMPACT Young people have a better under standing of the changes affecting the future, strengthening their willingness and ability to influence it. Almost 60,000 young people have learned future thinking and skills.

HOW WE ENGAGE WITH OUR STAKEHOLDERS

Active dialogue and feedback We organise regular stakeholder events and discussions on key topics such as financial success, governance and environmental issues. We also systematically gather and analyse feedback to understand and address stakeholder expectations. Sustainability initiatives We participate in UN Global Compact initiatives and other sustainability programmes, and we work with various environmental organisations and certification bodies. We engage with local and international stakeholders on sustainability issues. Public affairs and policy influence We work with various trade associations, industry initiatives and decision-making bodies. We actively participate in policy discussions related to climate change, sustainable forest manage ment and energy markets in key countries and at the EU level. Community engagement We engage with local communities through mill visits, forums and educational events. We maintain an active dialogue with local forest owners and others involved in forest management in the countries where we operate. We regularly evaluate and strive to improve our local com munity engagement practices. Our annual EMAS statements cover societal and environmen tal impacts, including cooperation with local stakeholders. Supporting local communities and volunteering We coordinate sponsorships, donations and employee volunteering through the UPM Share and Care programme. The programme focuses on causes and projects that are relevant to our business, support innovation and sustainability, or promote local vitality and wellbeing.

following an assessment of local com munity engagement practices in 2023.

Sustainability initiatives We continue to participate in the UN Global Compact initiatives, including the Global Compact Finland Network. We are also a member of the UN Global Compact Forward Faster initiative, which aims to accelerate progress towards the UN’s Sustainable Devel opment Goals. UPM’s Faster Forward com mitment is related to gender equality, living wages and the net-zero emissions target. We cooperate with various stakeholders on responsibility issues on a voluntary basis, addressing topics such as ecolabels, fish migration, living wages, fair rewarding and nature conservation. As part of the Forest

The impact of our operations extends from the local level to society at large. We aim to provide a fact-based, balanced view of the economic, environmental and social aspects of our operations. Our collaborative activi ties ensure that we maintain a transparent, responsive and proactive relationship with our stakeholders, fostering mutual understanding. A clear picture of our future We aim to provide stakeholders with a clear picture of our strategy and how we create long-term value. We disclose relevant accu rate information in accordance with market regulations.

As many of our stakeholders see UPM pri marily as an economic operator, discussions focus on financial success, stability, good governance, the future outlook and growth. Many discussions also address forests and forest use. Stakeholder mapping, active dialogue and the systematic collection of feedback play an important role in our stakeholder relations work. We analyse feedback to understand our stakeholders’ expectations and take them into account in development and decision-making. Every year, we receive around 350 enquiries or concerns from the general public.

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024