UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

OUR COMMITMENTS Following principles

CREATING VALUE FOR PEOPLE AND SOCIETY

Decent work We promote decent work and play our part in building a more equitable society. Identifying and prioritising salient human rights issues We prioritise the most serious human rights risks and impacts and take action to address them.

Our approach is based on the UN Guiding Prin ciples on Business and Human Rights (UNGPs) and is guided by our Code of Conduct and related policies, rules and guidelines. We expect a similar commitment from our suppliers and third parties, as defined in our Supplier and Third-Party Code.

A safe and inclusive working environment

CASE STUDY

We provide a safe and inclusive working environ ment for our employees and respect the rights of people in our value chains.

HUMAN RIGHTS IMPACT ASSESSMENT IN URUGUAY

OUR PRIORITIES Focus on salient issues

CHALLENGE Effective processes require internal expertise, collaboration with stake holders and continuous bench marking against international best practices. ACTION To develop our human rights due diligence work, we commissioned an external consultancy to assess our operations in Uruguay. The study recognised our strong environmental and social management systems and effective risk management, but also recommended additional meas ures to mitigate potential risks to local communities and workers. IMPACT Based on the recommendations, corporate and local action plans have been created, focusing on Company-wide capacity building on business and human rights, and the review and development of stakehold er engagement practices, grievance mechanisms, and remediation meas ures. The assessment accelerates our due diligence efforts and lays the foun dation for future human rights impact assessments of our investments and business development projects.

Promoting social responsibility in our supply chain Contractors carry out a significant proportion of our operations. They work in areas such as maintenance at our production units, construc tion and forestry operations. We collaborated with one of our maintenance service providers to develop a common model for verifying fair terms and conditions of work in our subcontracting chains. In 2024, we also renewed our Supplier and Third-Party Code and strengthened our social responsibility requirements for suppliers. Promoting human rights requires both internal capacity building and collaborative action. One of the aims of our Uruguay Human Rights Impact Assessment was to learn about and increase our capacity to address human rights locally. We organise internal human rights work shops to ensure the effective implementation of the assessment findings. We also participate in collaborative forums such as Together for Sus tainability (TfS) and the UN Global Compact (UNGC) Labour and Decent Work programme to share insights and best practices. Collaboration and engagement with stakeholders

In 2024, we reviewed and updated our corporate salient human rights issues in connection with our double materiality analysis and related stakeholder input. The assessment was facilitat ed by an external human rights advisor. UPM’s reviewed salient human rights issues are: oc cupational health and safety (OHS); land rights and community engagement; terms and condi tions of work; forced labour; and children’s rights. We continue to prioritise our efforts accordingly, recognising that our impact on people contin ues to evolve as our business changes, and our approach to due diligence develops. We completed UPM’s first externally conducted Human Rights Impact Assessment covering all our operations in Uruguay. The assessment provides a further insight into the aggregate and cumulative impacts of our operations and supports us in developing our Company-wide local community engagement and grievance management practices. In 2024, we also initiated development of a local community engagement policy, following an assessment of current practices in 2023. This policy will help us to identify and engage with local stakeholders, particularly the most vulnerable, to ensure their concerns are addressed. Human rights due diligence is a continuous process

Collaborating on human rights Respect for human rights is the foundation of our social responsibility agenda and 2030 targets.

At a time of continuing instability, including socioeconomic pressures and a sense of urgency about the climate and biodiversity crises, cooperation is crucial for driving progress. UPM’s business relies on thriving

and resilient communities. We are com mitted to respecting human rights across our operations, including our employees, suppliers, contractors and surrounding communities.

Sustainability Statement, ESRS S1 Own workforce on page 209 Sustainability Statement, ESRS S2 Workers in the value chain on page 223 Sustainability Statement, ESRS S3 Affected communities on page 229

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024