UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

OUR SAFETY COMMITMENTS AND PRIORITIES

CREATING VALUE FOR PEOPLE AND SOCIETY

Employee wellbeing We focus on the overall health and wellbeing of employees, taking a holistic approach divided into four themes: body; mind; heart; and soul (see below). The safety vision and our safety rules, including safety principles, form the basis of our commitment to a safe working environ ment. We have set an ambitious target of being an accident-free workplace. Building the safety culture We develop a caring safety culture through employee participation and open and positive communication. Safety is a value that guides us to make the right decisions and choices. Our behavioural safety leadership training supports our managers in leading safety as a natural part of daily operations and ways of working. This includes activities such as regular safety observations and suggestions for improvement, as well as participation in risk assessments, incident investigations and safety training. Strong focus on process safety Our UPM-wide process safety standard sets minimum requirements for process safety in operations, projects and functions. The current situation of the mills has been compared with the requirements of the process safety EMBRACING WELLBEING AT UPM Our approach is built around four themes: Body : Empowering individuals to lead active lives within their own contexts. High energy levels and physical condition enhance both quality of life and performance. Mind : A balanced mind fosters high work engage ment, inspiration and learning. A friendly atmos phere nurtures creativity and ideas to flow. Heart : A sense of belonging and feeling appreci ated boosts work motivation. Team commitment and loyalty drive deeper engagement. Soul : Being part of a meaningful purpose inspires and makes one feel proud to work at UPM. En gaged employees work as natural UPM advocates.

standard, and based on the results, mill-specific process safety improvement programmes have been developed. Global e-learning training on process safety has increased awareness throughout the organisation. Process safety risk assessments are integrated into the preparation of investment projects. Management systems and safety audits All our production units have an OHS man agement system in place, of which 93% have ISO 45001 Occupational Health and Safety management system certification. This means that 74% of our employees are covered by the certification. Annual safety audits are an integral part of the OHS management system, focusing on risk management and operating permits. Continuous improvement and recognition Safety is embedded in all our daily operations and practices, as well as in new and ongoing projects. Effective risk management, investiga tion and lessons from incidents play an impor tant role in making our operations safer. We also share safety observations and best practices across our businesses to improve safety. We recognise exemplary safety performance with Company-wide awards to highlight units that have made significant efforts to improve the health, safety and wellbeing of their employ ees.

Safety and wellbeing

Our safety work is based on long-term planning, strong leadership and effective communication.

CASE STUDY

Investing in employee wellbeing is a strategic business decision that can drive long-term success. A focus on wellbeing and safety fosters a positive working environ ment and improves team collaboration. This can lead to more innovative solutions and better overall performance.

UPM workforce including contractors

2024

2023

2022

COLLABORATIVE EFFORTS LEAD TO IMPROVED SAFETY AT UPM TIMBER CHALLENGE The aim of UPM Timber’s Lock Out Tag Out (LOTO) project was to har monise practices and develop guide lines for all equipment in the sawmills’ different departments according to UPM’s LOTO Standard. The main challenges during the project were the large number of machinery on the production lines and deciding on the work area to be used in the instruc tions, as work in a given area can be delimited in different ways. ACTION Production and maintenance personnel, as well as salaried em ployees, were extensively involved in the development of the guidelines. Different perspectives were thus taken into account when drafting safe ty-critical instructions. By following the guidelines, the risk of accidental start-up of equipment and machinery – for example, during maintenance work – can be prevented. Training and communication were also an impor tant part of the project. IMPACT All the sawmills’ production equip ment has area-specific guidelines that must be followed to make the area safe. Employees’ understanding of the risks and LOTO competence has also improved significantly.

Total injuries per one million hours worked, TRIF

5.1

5.2

5.9

Lost-time accidents per one million hours worked, LTAF

3.2

3.4

3.3

Serious accidents

3

5

5

Fatalities

0

0

3

FACTS AND FIGURES

Following discussions with employees, we renewed our safety vision, revised our safety principles and updated our safety rules in 2024. Despite our continuous efforts to prevent all accidents, we had three serious accidents in 2024. Of the accidents, one happened to a contractor, and two to UPM employees. All accidents were thoroughly investigated in close cooperation with the authorities and contractors. We initiated corrective and preventive actions and shared key learning points across all businesses to prevent similar accidents in the future. In 2024, we reported a total of 53,000 safety-re lated near misses and safety observations and conducted 37,000 safety walks and discussions. Based on the feedback from the employee dia logue discussions, the 2024 pulse survey on health and wellbeing included more health-related ques tions than before. In general, the scores decreased slightly compared to the 2023 survey. The Korkeakoski sawmill received the UPM CEO Safety Award 2024. The sawmill effectively involves contractors in safety and has a thorough orienta tion process for new employees.

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024