UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability Statement

Report of the Board of Directors

Financial Statements

Auditor's Report

Sustainability Assurance Reports

Table of contents

List of ESRS disclosure requirements

Page

Table of contents

List of ESRS disclosure requirements

Page

Water and marine resources

ESRS E3 – Water and marine resources

183

General information General information

Policies

E3-1 – Policies related to water and marine resources

184

ESRS 2 – General disclosures

137

Actions

E3-2 – Actions and resources related to water and marine resources

184

ESRS 2 BP-1 – General basis for preparation of the Sustainability Statement

138

Basis for preparation

Targets

E3-3 – Targets related to water and marine resources

186

ESRS 2 BP-2 – Disclosures in relation to specific circumstances

138

Metrics

E3-4 – Water consumption

187

GOV-1 – The role of the administrative, management and supervisory bodies

139

Sustainability governance

Biodiversity and ecosystems

ESRS E4 – Biodiversity and ecosystems

188

GOV-2 – Information provided to, and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies

142

Transition plan 189 Impacts, risks and opportunities ESRS 2 SBM 3 – Material impacts, risks and opportunities and their interaction with strategy and business model 189 Policies E4-2 – Policies related to biodiversity and ecosystems 190 Actions E4-3 – Actions and resources related to biodiversity and ecosystems 190 Targets E4-4 – Targets related to biodiversity and ecosystems 193 Metrics E4-5 – Impact metrics related to biodiversity and ecosystems change 194 E4-6 – Anticipated financial effects from material biodiversity and ecosystem-related risks and opportunities 198 Resource use and circular economy ESRS E5 – Resource use and circular economy 199 Policies E5-1 – Policies related to resource use and circular economy 200 Actions E5-2 – Actions and resources related to resource use and circular economy 201 Targets E5-3 – Targets related to resource use and circular economy 203 Metrics E5-4 – Resource inflows 204 E5-5 – Resource outflows 206 208 Impacts, risks and opportunities ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 209 Policies S1-1 – Policies related to own workforce 210 Processes S1-2 – Processes for engaging with own workforce and workers' representatives about impacts 211 S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns 211 Actions S1-4 – Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 212 Targets S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 215 Metrics S1-6 – Characteristics of the undertaking's employees 216 S1-7 – Characteristics of non-employee workers in the undertaking's own workforce 217 S1-8 – Collective bargaining coverage and social dialogue 218 S1-9 – Diversity metrics 218 S1-10 – Adequate wages 219 S1-11 – Social protection 219 S1-12 – Persons with disabilities 219 S1-13 – Training and skills development metrics 219 S1-14 – Health and safety metrics 219 S1-16 – Compensation metrics (pay gap and total compensation) 221 S1-17 – Incidents, complaints and severe human rights impacts 221 E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and business model Social information Own workforce ESRS S1 – Own workforce

GOV-3 – Integration of sustainability-related performance in incentive schemes

142

GOV-4 – Statement on due diligence

143

GOV-5 – Risk management and internal controls over sustainability reporting

144

Strategy, business model and value chain

SBM-1 – Strategy, business model and value chain

144

148

Stakeholders

SBM-2 – Interest and views of stakeholders

148

Impacts, risks and opportunities SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model

IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities

150

IRO-2 - Disclosure requirements in ESRS covered by the undertaking's Sustainability Statement

153

ESRS content overview

Environmental information Climate change

ESRS E1 – Climate change

155

Transition plan 156 Impacts, risks and opportunities ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 158 Policies E1-2 – Policies related to climate change mitigation and adaptation 158 Actions E1-3 – Actions and resources in relation to climate change policies 159 Targets E1-4 – Targets related to climate change mitigation and adaptation 161 Metrics E1-5 – Energy consumption and mix 164 E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions 165 E1-7 – GHG removals and GHG mitigation projects financed through carbon credits 168 E1-8 – Internal carbon pricing 169 E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities 169 EU Taxonomy Disclosures pursuant to Article 8 of Regulation 2020/852 170 Pollution ESRS E2 – Pollution 176 Policies E2-1 – Policies related to pollution 177 Actions E2-2 – Actions and resources related to pollution 178 Targets E2-3 – Targets related to pollution 180 Metrics E2-4 – Pollution of air, water and soil 181 E2-5 – Substances of concern and substances of very high concern 182 E2-6 – Anticipated financial effects from material pollution-related risks and opportunities 182 E1-1 – Transition plan for climate change mitigation

UPM Financial Report 2025

134

UPM Financial Report 2025

135

134

135

UPM Annual Report 2025

UPM Annual Report 2025