UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

Bonus Plan (DBP) for other key employees. We are also committed to gender pay equity and to paying all employees at least the local living wage. The status of both these commitments is reviewed annual ly, and we take corrective action when necessary.

Sustainability Statement, ESRS S1 Own workforce on page 209 A diverse and inclusive working culture on page 70 Safety and wellbeing on page 72

Our employees by region

CASE STUDY

6,222 Finland

RAISING OUR PROFILE AS AN EMPLOYER IN THE CHEMICAL INDUSTRY CHALLENGE As the Leuna Biorefinery is ramping up in 2025, we want to increase the visibility of our employer brand to attract and retain specialists for the operations teams. ACTION UPM Biochemicals, known for its diverse and international team, launched an employer marketing campaign in Germany. The cam paign aimed to attract operators by highlighting the benefits of working at UPM, such as contributing to a unique project. The campaign focused on targeted out-of-home (OOH) advertising, particularly in areas frequented by chemical tech nicians, such as chemical parks and access roads in the region. IMPACT Our aim was to create regional and targeted visibility to ensure we could attract the talent we needed. We also wanted to enhance overall awareness of UPM as an employer and a com pany widely recognised as an inno vator in the chemicals and materials sectors. The campaign resulted in a 55% increase in website sessions and a 71% increase in job applications.

3,390 Germany

2,488 Other Europe

891 North America

1,513 China

331 Other Asia

Rest of the world

118

874 Uruguay

15,827 Total

leaders can perform in any situation and strengthening human-centric leadership.

petitive rewards for all our employees. They are based on business needs and our values and are differentiated by performance and impact. We use a total rewards approach, which is a combination of monetary and non-mon etary elements. The monetary elements con sist of base salary, benefits and incentives,

which are determined by UPM’s global rules, local legislation, general agreements, local market practices, the level of the position and individual performance. Gender, age, ethnic origin and nationality play no role in determining monetary rewards. All employees belong to a unified annual Short-Term Incentive (STI) scheme, which is designed to encourage high performance, increase motivation and engagement, and recognise and reward employees for achiev ing set targets. The scheme covers Group and business-level targets, personal and team targets to differentiate and reward high performance. We also recognise significant individual or team success with a separate Achievement Award concept. It is designed to support UPM’s high-performance culture and to rec ognise individuals and teams for outstanding contributions, significant achievements and exceptional performance. In addition to the Short-Term Incen tive scheme, we have two main long-term incentive plans: the Performance Share Plan (PSP) for senior executives; and the Deferred

We reward and recognise high performance

UPM’s personnel by business area 2024

Full time 97% Permanent 90%

Part time 3%

Our rewards aim to attract, retain and moti vate employees. Our reward concepts are designed to provide fair, equitable and com

Other operations 4% UPM Biorefining 3% UPM Plywood 10% UPM Fibres 17% UPM Specialty Papers 12% UPM Raflatac 21% UPM Energy 0%

UPM Communi cation Papers 33%

Fixed term 10%

WE REGULARLY MEASURE OUR PROGRESS

Since 2007, the annual Employee Engagement Survey (EES) has invited all employees to evaluate various aspects of their work. The high participation rate of 76% (81%) shows that UPM employees are interested in improving their workplace. The overall engagement score is 70 (70). 78% (81%) of employees had documented development plans in 2024. In the EES, the score for the question about good opportunities to learn and grow at UPM was 65 (64). The annual incentives paid in 2024 for the 2023 Short-Term Incentive (STI) scheme amounted to EUR 48.7 million, and the estimated amount of annual incentives for the 2024 scheme is EUR 46.5 million. Approximately 420 people participated in the apprenticeship programmes in 2024.

UPM personnel in figures

2024

2023

2022

Employees

15,827

16,573

17,236

Turnover, %

13.6

11.1

14.7

Turnover, % (voluntary)

4.8

5.1

6.8

Average age

44.4

44.3

44.1

68

69

UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024