UPM Annual Report 2025

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Governance

Accounts and performance

Sustainability Statement

Report of the Board of Directors

Financial Statements

Auditor's Report

Sustainability Assurance Reports

Reducing emissions to water Key action

Reducing emissions to air Key action

Resources

Actions

In 2025, UPM's environmental investments totaled €12 million (€20 million). The largest investments in 2025 were made in improving energy efficiency, reducing CO 2 emissions, and ensuring environmental compliance. UPM's environmental costs, which were mainly attributable to effluent treatment and waste management, totaled €106 million (€111 million), including depreciation. During 2025, no significant capital expenditures for new environment related projects were announced. Refer to line item » Capital expenditure in Consolidated cash flow statement Refer to line item » Costs and expenses in Consolidated income statement Refer to » Note 2.3 Operating expenses and other operating income i n the consolidated financial statements

E2-2

Water is an essential resource for pulp and paper mills. All wastewater from UPM's pulp and paper production is cleaned in both mechanical and biological effluent treatment processes, either at an external or own wastewater treatment plant. The purified water is usually returned to the same watershed from which it was taken. UPM has chosen COD (chemical oxygen demand) as the most appropriate indicator for emissions to water from pulp and paper production. A Group-level reduction target has been set, to be achieved by 2030. Pulp and paper mills have respective specific plans to achieve their reduction targets for COD in their treated wastewater by 2030. In 2025, the specific emissions of COD per tonne of paper increased by 5% compared to the previous year, but decreased by -30% compared to the target base year 2008. The specific emissions of COD per tonne of pulp increased slightly by 1% compared to the previous year, but decreased by -53% compared to the target base year 2008. Refer to » E2-3 Targets for the follow-up of the target at Group level and an explanation of COD. UPM was the first Finnish freight carrier to commit to the Ship Waste Action Initiative of the Baltic Sea Action Group. In Finland, from the spring of 2022 onwards, UPM has discharged ship-generated wastewater on land where its nutrients can be utilized. Actions in 2025 • Several actions focused on reducing the risk of soil or groundwater pollution. At UPM Jämsänkoski, Finland, over 500 meters of wastewater pipelines were renewed. Improvements continued at the chemical unloading areas of several sites (e.g. Plywood mills and UPM Kaukas). • At UPM Nordland Papier in Germany, a project to separate the dewatering of biosludge and fibre sludge started at the site's wastewater treatment plant in 2024. A COD reduction of 20% is expected due to this measure, besides the improved sludge recycling options and reduction of transportation. The project was finalized in 2025. • Plywood Pellos site increased the capacity and reliability of the wastewater treatment plant and updated the wastewater treatment plant diffusers. This resulted in three tonnes of COD load reduction per day. • The primary clarifier at UPM Jämsänkoski, Finland, was renewed and taken into use. This was essential for the efficiency of the entire wastewater treatment process. • UPM Rauma, Finland, invested in a new dissolved air flotation (DAF) unit in the chemi-mechanical pulping area. The investment improves material efficiency by separating a relevant amount of solids from the wastewater, which will decrease the COD load to treatment plant. Planned actions • UPM will continue to develop and implement measures to reach its 2030 targets.

UPM's main source of air emissions is energy generation. The quantity and quality of air emissions depend on the amount of energy produced at power plants or boilers, the burning conditions, and the fuels used. The choice of fuels, combustion technology, and flue gas purification are ways of reducing these emissions. Boilers using biomass-based fuels, oil, and coal are equipped with filter systems. Acidifying flue gases (NO X and SO 2 ) have been identified as having the most material impact, and a target to reduce these air emissions by 2030 has been set. In 2025, the specific emissions of acidifying flue gases per tonne of paper increased by 7% compared to the previous year, but decreased by -28% compared to the target base year 2015. The specific emissions of acidifying flue gases per tonne of pulp were decreased by -2% compared to the previous year and decreased by -10% compared to the target base year 2015. Refer to » E2-3 Targets for the follow-up of the target at Group level. Transportation contributes to air emissions to a smaller extent. In recent years, UPM has invested in seven vessels which run on dual fuels, which means a combination of traditional marine gas oil and liquefied natural gas (LNG). When fueled with LNG, their CO 2 emissions are 25% lower than those of commonly used marine gas oil. In addition, nitrogen oxides (NO X ) are cut by about 85%, and sulphur oxides (SO x ) by approximately 99%. Emissions of soot particles also decrease by 99%. Actions in 2025 • UPM joined a 5-year research program led by VTT and RISE Research Institutes of Sweden on emission-free pulping in 2024. The program aims to significantly reduce biomass burning and increase the material yield from wood from approximately 50% to around 70%. In 2025, UPM joined research to better understand the structure of fiber cell wall and to develop new ways to liberate fiber from wood matrix. • At the UPM Kaukas pulp mill’s recovery boiler, the third of its four electrostatic precipitators (ESPs) was renewed and taken into use in October, after the renewal of two ESPs in 2023. This will further improve air quality, especially by reducing dust emissions. Planned actions • UPM will continue to develop and implement measures to reach its 2030 targets.

Based on UPM's identified material topics, UPM has set the following focus areas and Group-level targets related to pollution: • Climate (with a target for emissions to air – NO X and SO 2 ) • Water (with a target for emissions to water – COD) • Product stewardship (with a target for share of ecolabeled products); Refer to » E5-2 Actions and E5-3 Targets • Waste (with a target for landfill waste); Refer to » E5-2 Actions and E5-3 Targets • Responsible sourcing (with a target on spend covered by UPM Supplier and Third-Party Code); Refer to » G1-2 Targets Action plans have been established to achieve the Group-level targets, as well as other relevant areas for continuous improvement. The key actions, previous year's key actions, planned key actions and overarching concepts are presented below. UPM Clean Run concept The company-wide Clean Run concept, which was launched in 2012 and has since been developed to cover all operations, is a holistic environmental management system that aims to improve UPM's environmental performance by bringing environmental issues to the forefront of everyday work and enabling a consistent way of working in all operations. All production sites have a certified ISO 14001 environmental management system except two Adhesive Materials sites, one of which is preparing for the certification and the other site was announced to be closed. This is the basis for the Clean Run concept, which sets more precise requirements for UPM's common practices than the ISO standard. According to these requirements, all sites systematically follow up on deviations, proactively report observations and near misses, conduct environmental walks and discussions, share best practices, and prepare detailed risk assessments. UPM regularly conducts "Clean Run and long-term environmental targets reviews" to ensure the implementation of the standard and provide support. The relevant production sites and business areas develop roadmaps for achieving the Group's environmental targets for 2030, and take actions accordingly. In 2025, approximately 1,700 (1,900) environmental walks were organized, and 2,100 (2,200) preventive environmental observations and near misses were reported. In 2025, the number of environmental non conformances increased to a total of 41 (35) deviations from permit, contractual or other legal obligations. 9 cases were related to air, 27 to water, 3 to soil and water, and 2 to plantation operations. All deviations from environmental permit obligations were reported to the authorities and, where relevant, to local stakeholders. In all cases, appropriate measures were taken to normalize the situation and will be taken to prevent similar occurrences. No major environmental incident occurred in 2025.

Refer to » E5-2 Actions for actions related to waste and chemicals.

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025