UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

CREATING VALUE FOR PEOPLE AND SOCIETY

Our commitment to diversity and inclusion We are committed to developing an inclu sive culture and working environment. In 2016, we signed the EU Diversity Charter. Our commitment and expectations regard ing D&I are set out in our HR Rules and the UPM Code of Conduct. At UPM, we have worked systematically to increase diversity and inclusion in recent years. Our D&I-related social responsibility targets focus on our employees’ sense of belonging and the representation of women in professional and managerial roles. We have set an ambitious target of 40% female representation by 2030. With this increased diversity, we aim to develop our leadership capabilities. Our situation varies by organisation. Each business and function therefore needs its own targets and plans to increase female representation. According to our analysis, men and women have equal opportunities to progress at UPM. Since 2021, we have carried out an annual gender pay equity review to close the gender pay gap that cannot be explained by the factors that typically determine a person’s salary and its development. We

will continue to monitor this annually and make adjustments where necessary. In 2023, we committed to the UN Forward Faster Initiative on gender equality. Progress on the initiative will be reported for the first time in 2025. Creating and leading an inclusive culture To further develop an inclusive leadership and culture, we continued our dialogue with management teams across the company in 2024. About 3,500 people have participated in the dialogue since 2019. In recent years, we have expanded our understanding of leading diverse teams and developed aware ness of LGBTIQ+ diversity and inclusion in the workplace. UPM is a member of Work place Pride and provides e-learning training on this topic for all UPMers. Over 800 people have taken the training. In 2024, we participated in Workplace Pride's annual assessment of the LGBTIQ+ practises in companies. The network mem bers and the core team plan activities to support the community and raise awareness at UPM. The focus in 2024 was on network ing and communication, learning from other companies, and working on initiatives to

create an LGBTIQ+ inclusive workplace. Inclusive behaviour is integrated into our leadership development programmes and training on the UPM Code of Conduct. Since 2022, we have been measuring inclusive lead ership, i.e. how UPM’s leaders value different perspectives. According to the 2024 Employee Engagement Survey (EES) results, there is a positive trend. Inclusive leadership will con tinue to be a development area for us. We have set a target for a sense of belong ing, benchmarking ourselves against the top 10% of companies. Our EES also measures authenticity (i.e. feeling comfortable as one self) and fair treatment, which are impor tant strengths for us that we monitor on an ongoing basis. Regular monitoring We regularly review our diversity status and data. Our management teams conduct self-assessments on diversity and inclusion. Managers and HR have dashboards with diversity data. Processes such as rewarding and recruitment are regularly monitored. We also regularly report progress to several external indices.

Women managers 25% +2pp

Age-diverse teams 55% +0pp

Multinational teams 27% +2pp

A diverse and inclusive working culture

countries 43 in 89 Nationalities

We develop an organisational culture and local conditions that ensure a diverse and inclusive working environment.

Men 76% Shop-floor 58%

Women 24% Salaried 42%

Employee Engagement Survey results

Three action areas Our Diversity and Inclusion initiatives are divided into three areas: 1. Commitment to diversity and inclusion 2. Creating and leading an inclusive culture 3. Regularly reviewing our data and processes

Promoting diversity and inclusion in the workplace is not only the right thing to do: it is a prerequisite for our business success and a healthy working environment. Different perspectives improve decision-making and business performance. All UPM employees are treated as individuals, regardless of gender, sexual orientation, age, ethnic origin or nationality, for example. We welcome

the talent of people with different skills and backgrounds in our global team. We respect the privacy of our employees and promote equal opportunity and objectiv ity in employment and career development. Diversity and inclusion are part of our Aim ing Higher mindset and are therefore part of our cultural development plan.

Authenticity score 79 +0

Fair Treatment score 74 +0

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024