UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

Our activities and products have impacts on the environment and society. Understanding these impacts is a prerequisite to developing our operations. Direct and indirect inputs and outputs provide a comprehensive picture of the value chain and form the basis for the impact assessment. Our societal and environmental impacts

UPM's detailed material balance is available at www.upm.com/annualreport

Indirect upstream

Direct upstream

Direct downstream

Direct downstream

Indirect downstream

Impacts

Raw materials

Products

Emissions to air

Increasing knowledge and quality of life through our products

Number of b2b suppliers

23,000

10,000 in 97 countries

Nitrogen oxides

8,700 t

Paper

4.6m t

Number of customers

Wood

28m m³

Sulphur dioxide

780 t

Chemical pulp

5.0m t

Vitality and prosperity for area of influence

Market pulp

1.3m t

Private forest owners supplying wood to UPM

14,500

Particulates

680 t

Converting materials

0.5m t

People using UPM products

approx. 190m

Increased social capital and skills of employees

VOC

400 t

Recovered paper

0.7m t

Plywood and veneer

0.5m m³

Seedlings planted

44 million

Fossil CO 2 emissions (Scope 1)

2.2m t

Wellbeing and safety of employees and contractors

Sawn timber

1.2m m³

EUR 1.7m distributed to about 200 groups

Local support and donations under the UPM Share and Care Programme

Minerals

1.8m t

Biogenic CO 2 emissions

11.7 m t

Electricity and heat

14,300 GWh

Emissions to water

Supplier spend covered by UPM Supplier Code

Biodiversity enhanced by various initiatives 3)

91%

Chemicals

0.9m t

Sales

EUR 10,339m

Process wastewater

200m m³

Purchased paper for converting

Ecosystem services secured through sustainable forest management

Comparable EBIT

EUR 1,224m

0.3m t

Cooling water

180m m³

Virgin materials replaced

1.3m t

Certified wood

88.5%

Biological oxygen demand (7 days)

Plastic, adhesives, resins, films

Granted patents and patents validations

5,200 t

0.2m t

Climate change mitigation through UPM's carbon actions 4)

243

Percentage of wood origin known

Value of products eligible for ecolabelling

100%

EUR 8.9 billion

Chemical oxygen demand

56,600 t

People and society

Costs, raw materials

EUR 4.3 billion

Value added EUR 2.8 billion

Employees

15,800

Adsorbable organic halogens

280 t

Water uptake

Fossil CO 2 emissions (Scope 2)

1.2m t

Process waste and by-products

Societal value of carbon sink of UPM own and leased forests EUR 210m 5 )

Shareholders

146,258

UPM forests available for recreational use

Surface water

391m m³

598,000 ha

Material recycling

332,000 dry t

Training hours per employee

9

Societal cost of GHG emissions (Scope 1-3) EUR -1,160m 6)

Fossil CO 2 emissions (Scope 3 upstream)

Ground water

12m m³

Energy recovery

234,000 dry t

4.1m t

Total recordable injury frequency incl. contractors

Fossil CO 2 emissions (Scope 3 downstream)

5.1

Composting

9,000 dry t

4.1m t

Societal cost of other air emissions EUR -158m 7)

Communal water

4m m³

Water intensive production sites located in water abundant areas

Landfilling

94,000 dry t

100%

Energy

Dividend distribution

EUR 800m

Temporary storage

23,000 dry t

Temporary carbon storage in UPM products' lifetime

Recreational value of UPM forests EUR 83m 8)

2.8m t

Renewable fuels

34,000 GWh

Employee wages and benefits

EUR 1,179m

New hires

2,200

Incineration without energy recovery

3,100 dry t

Value of ash used as raw material EUR 8m 9)

Fossil fuels

8,600 GWh

2.1m t CO 2 eq

Carbon sink in UPM own and leased forests 2)

Own and leased forests and plantations

Corporate income taxes paid and property taxes

Hazardous waste for special treatment

1,090,000 ha

EUR 176m

Impact of paid taxes on social capital EUR 227m 10)

Purchased electricity and heat1)

7,000 t

14,500 GWh

6) Calculated using societal cost of carbon EUR 100/tCO 7) Calculated using societal cost of each air emissions (NO 2 (average damage cost per tonne of CO 2 ). Source: EEA. Using European emissions allowance price would result in EUR -847m. 8) Based on pilot study by Gaia. Read more on upm.com/sustainability. 9) Estimated based on 2023 and 2024 information on ash utilisation and price of a comparable product. 10) Calculated using corporate income and property taxes, and health utility of taxes. Source: Vionnet et al. ( 2021) The Health Utility of Income and Taxes. Part B. x , SO 2 and VOC). Source: EEA.

1) Includes UPM shares in hydro, nuclear and condensing power as well as purchases from the market. 2 ) Based on a study by Luke Finland: 5-year average of carbon sink and sources in UPM own and leased forests in Finland, Uruguay and the USA. 3) Read more on pages 50–53. 4) Read more on pages 54–59. 5) Calculated using societal cost of carbon EUR 100/tCO 2 (average damage cost per tonne of CO 2 ). Source: EEA. Using European emissions allowance price would result in EUR 153m.

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024