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

GHG emissions

Metrics Energy consumption and mix

E1-6

In 2025, 84% of UPM’s purchased renewable electricity consisted of bundled contracts, while 16% consisted of unbundled electricity attribute claims, such as Guarantees of Origin and Renewable Electricity Certificates. Additionally, 1% of nuclear electricity used consisted of bundled contracts, while 99% consisted of unbundled Guarantee of Origin attributes.

GHG emissions and 2030 target

E1-5

Retrospective

Milestones and target years

Most of the electrical and thermal energy is used for UPM's paper and pulp production. However, pulp mills produce more energy than they consume. UPM generates steam and electricity from combined heat and power (CHP) plants. Renewable fuels account for 81% (80%) of the fuel used on production sites. UPM's target is to stop using coal and peat for on-site energy generation by 2030. Currently, coal is the main fuel used at the UPM Changshu paper mill in China, where alternatives have been unavailable in the past. Peat is used in Finland.

% 2025 / 2024

% 2025 / base year

Electricity generation through own power plants and shareholdings

2030 target

2015

2018

2024

2025

2025

2030

Scope 1 GHG emissions * Gross Scope 1 GHG emissions (tCO 2 )

MWh

2025

2024

3,880,000 3,250,000 2,180,000 2,080,000

-5%

2,200,000 1,360,000

-46 %

CHP at production sites, renewable

5,000,000

4,600,000

Scope 1 GHG emissions from regulated emissions trading schemes (%) Scope 2 GHG emissions * Gross location-based Scope 2 GHG emissions (tCO 2 )

2,970,000 2,730,000 1,660,000 1,550,000

-7%

—

—

—

CHP at production sites, non-renewable

1,200,000

1,200,000

Hydropower

800,000

1,000,000

—

3,020,000 1,640,000 1,540,000

-6%

—

—

—

Hydropower, shareholdings

2,200,000

2,200,000

Energy consumption and mix

Gross market-based Scope 2 GHG emissions (tCO 2 )

2,920,000 3,100,000 1,200,000 790,000

-34%

1,650,000 1,020,000

-73 %

Nuclear power, shareholdings

7,600,000

7,600,000

Scope 1 and 2 GHG emissions * Gross Scope 1 and market-based Scope 2 GHG emissions (tCO 2 )

Thermal power, renewable, shareholdings

70,000

90,000

MWh

2025

2024

Thermal power, non-renewable, shareholdings

Natural gas

3,900,000

4,200,000

6,800,000 6,120,000 3,380,000 2,870,000

-15%

3,850,000 2,380,000

-58 %

10,000

10,000

Significant Scope 3 GHG emissions ** Total Gross indirect (Scope 3) GHG emissions (tCO 2 eq)

Oil

1,400,000

1,500,000

Total

16,900,000

16,700,000

Coal

2,500,000

2,500,000

—

9,040,000 8,170,000 7,680,000

-6%

—

—

—

Peat

100,000

260,000

In addition to energy generation on UPM's production sites, UPM is a significant player in the Nordic electricity market with its nuclear and hydropower holdings and, to a lesser extent, thermal power.

1 Purchased goods and services

—

4,230,000 2,970,000 2,920,000

-2%

3,490,000 2,960,000

-31 %

Fossil recovered fuel

100,000

130,000

2 Capital goods

—

50,000

160,000

110,000

-28%

—

—

—

Total fossil fuels

8,100,000

8,600,000

3 Fuel- and energy-related activities

—

670,000 520,000 460,000

-11%

550,000

470,000

-31 %

Electricity from nuclear sources*

3,100,000

3,400,000

Energy intensity associated with activities in high climate impact sectors

4 Upstream transportation and distribution

—

1,180,000 1,250,000 1,340,000

8%

970,000 830,000

13 %

Other purchased electricity and heat (non-renewable)

5 Waste generated in operations

—

50,000

54,000

53,000

-1%

—

—

—

1,100,000

1,300,000

6 Business travel

—

12,000

14,000

11,000

-20%

—

—

—

MWh/€ m

2025

2024 % 2025/2024

Total non-renewable energy consumption

12,300,000

13,200,000

7 Employee commuting

—

13,000

10,000

10,000

-4%

—

—

—

Total energy consumption (MWh) per net revenue (€ m sales)

Renewable fuels

35,100,000

34,000,000

5,080

4,720

8 %

10 Processing of sold products

—

2,830,000 3,200,000 2,780,000

-13%

—

—

—

Purchased electricity and heat (renewable) Self-generated non-fuel renewable energy (hydropower)

Total GHG emissions Total GHG emissions (location-based) (tCO 2 /tCO 2 eq)

1,700,000

1,600,000

All UPM's business activities are considered to be in high climate impact sectors according to the NACE classification, either manufacturing or forestry. Sales correspond to total sales as reported in the consolidated financial statements. Refer to » Note 2.2. Sales in the consolidated financial statements, Accounting policy

—

15,300,000 11,980,000 11,300,000

-6%

—

—

—

10,000

10,000

Total GHG emissions (market-based) (tCO 2 /tCO 2 eq)

—

15,390,000 11,550,000 10,560,000

-9%

—

—

—

Total renewable energy consumption

36,800,000

35,600,000

* Base year 2015 for Scope 1 and Scope 2 targets for 2030 ** Base year 2018 for Scope 3 target for 2030 Note: Setting and SBTi application of UPM's long-term targets will proceed in 2026, when the guidelines and tools for the FLAG sector will be available.

Total energy consumption

49,100,000

48,800,000

Share of non-renewable sources in total energy consumption (%) Share of renewable sources in total energy consumption (%)

25 %

27 %

75 %

73 %

*UPM's shareholdings in nuclear power generation are included with the amount used by UPM's production sites Note: Sales of electricity and heat is not deducted but reported as products in E5-5 Resource outflows.

UPM Financial Report 2025

164

UPM Financial Report 2025

165

164

165

UPM Annual Report 2025

UPM Annual Report 2025