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

UPM buys products, materials, and services from some 17,000 B2B suppliers worldwide. The sourcing network includes suppliers from startup companies to international corporations. UPM also buys wood from around 13,000 private forest owners. Product stewardship UPM is actively developing solutions that consider the sustainability of the whole product life cycle, from raw material sourcing to circularity. Based on the material topics identified by UPM, product stewardship has been established as a focus area with company-wide 2030 sustainability targets and key performance indicators. Refer to » E5-3 Resource use and circular economy, Targets UPM ensures that its products are safe for their intended use. Most of UPM's products are certified with widely recognized international and regional ecolabels such as the EU Ecolabel. All UPM businesses that use wood have FSC™ and/or PEFC chain-of-custody certification. This verifies the origin of wood and guarantees that all wood used in UPM's products is legally harvested from sustainably managed forests and does not originate from controversial sources. UPM Biofuels has both ISCC EU and ISCC PLUS certifications, and UPM Biochemicals and four UPM Adhesive Materials factories have ISCC PLUS certification. These sustainability-related targets and commitments cover all UPM products, markets and customer groups, and they are implemented based on legal requirements and expectations from customers and other stakeholders. Products and customers UPM sells products directly and through distributors to approximately 10,000 b2b customers worldwide. Most of the products are intermediary products that UPM's customers or their customers further process into final products. UPM captures the opportunities presented by growing consumer demand for sustainable choices and stricter regulations aimed at mitigating climate change and related to plastic use, for example. With higher living standards and an aging population, a growing number of urban, middle-class people are consuming more over a longer period. At the same time, the world still depends heavily on fossil-based raw materials and energy sources that cause climate change. Consumers, businesses, and regulators alike are seeking solutions that enable a more sustainable way of life. UPM's offering meets these challenges and opportunities today and in the future. In 2025, the main destination countries for UPM's sales were Finland, Germany, the United States, and China. The majority of UPM's revenue came from sales of graphic and specialty papers to publishers, retailers, printing houses, merchants and distributors, converters and label stock

manufacturers; sales of self-adhesive label materials to label printers and brand owners and sales of pulp products to tissue, board, specialty and graphic paper producers. Refer to » Note 2.1 Business areas in the consolidated financial statements for information on sales by destination country and » Note 2.2 Sales for information on external sales by major products.

Business model and value chain Business model and value chain

UPM's solutions for different industries

• Packaging and labeling: biochemicals for plastic packaging, packaging papers, paper for label materials, label materials, pulp for packaging and labeling • Tissue and hygiene: pulp for tissue, fluff pulp for hygiene products • Automotive and transportation: renewable fuels, renewable naphtha, renewable functional fillers for rubber, renewable glycols, self-adhesive automotive films, LNG shipbuilding, vehicle flooring • Printing and publishing: magazines and books, newspapers, advertising and catalogues, envelopes, home and office papers, pulp for printing • Low-emission energy: CO 2 -free electricity, renewable energy • Construction: building and construction, concrete forming, interior and exterior design, furniture • Apparel and textiles: renewable naphtha, bio-based monoethylene glycols (BioMEG) • Graphic solutions: large format printing media, protective lamination, screen and UV offset films, sign-making films, vehicle wrapping films, decoration films, PVC-free graphics solutions materials, CCK release base papers Engagement with customers UPM's businesses offer a wide range of products and services. Each business has its own customer relationship management process and way of interacting with customers. A comprehensive understanding of each market, as well as knowledge of the end uses of the products and the needs of the customers, underpins this approach. UPM maintains continuous dialogue with customers, and engages in various product-related development projects with them. UPM's businesses conduct regular customer satisfaction surveys. The surveys help identify potential areas of improvement. In 2025, actions to mitigate climate change remained a high priority for UPM's customers. Product safety, sustainable forest management, biodiversity, circularity and ecolabels are also highly valued.

Refer to » SBM-2 Interest and views of stakeholders

*The estimate includes the use of paper, plywood, timber, and part of the pulp.

Suppliers UPM sources its main raw materials, wood and wood-based materials, from sustainably managed forests and transforms them into renewable products that help customers achieve their sustainability goals. Responsible and ethical practices create long-term value for the company and its stakeholders. UPM does not compromise its standards of integrity in any circumstances and expects the same from its suppliers and third-party intermediaries. Suppliers are an integral part of UPM's value chain. The main sourcing categories are fibre, chemicals, other raw materials, logistics, energy, and

indirect purchases such as services. Pulp and energy suppliers account for the largest expenditures. The most important priorities when selecting suppliers include reliable long-term deliveries, cost-competitiveness, product and service quality, suppliers' financial stability, social and environmental responsibility, product safety, and the product’s carbon footprint. Suppliers also play an important role in UPM's business-specific growth projects. With the required competencies and digitalization, supplier management boosts product development and the commercialization of new products.

UPM Financial Report 2025

146

UPM Financial Report 2025

147

146

147

UPM Annual Report 2025

UPM Annual Report 2025