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

Microplastics Active research and cooperation is done in the area covering both process raw materials and unintentional releases from plastic articles. From 2021 to 2023, UPM joined the “Circular economy of water in industrial processes” project. As a result, a laboratory measurement method for microplastics in forest industry waters was developed with universities at UPM's research center in Lappeenranta, Finland. However, this and other standardization and methodology developments are still insufficient. Testing, development, and validation work must continue to receive reliable and consistent results. UPM will continue research in this area by joining projects, through its own method development work, and in cooperation with external laboratories. Changes over time UPM has identified COD as the most relevant parameter for its wastewater quality and acidifying flue gases (NO X and SO 2 ) as the most relevant parameter for air emissions. For both parameters, targets are set for 2030 from the 2008 or 2015 level respectively, and the performance is followed up at Group level. Refer to » E2-2 Actions for the follow-up on relevant parameters. Emissions to air UPM reports the total amount of emissions to air of NO X , SO 2 , and particulates as its main performance indicators. These are calculated based on site-level data from sampling or continuous monitoring. These indicators include the emissions from UPM's own power plants and the respective share of jointly operated on-site power plants corresponding to UPM's energy supply. External power plants or boilers are considered for heat supply. In addition to energy-related air emissions, UPM reports production-related non-methane volatile organic compound (NMVOC) emissions from UPM Adhesive Materials, UPM Biofuels, and UPM Plywood, which are calculated using emission factor and/or mass balance methods. As required by ESRS E2-4, UPM also reports on consolidated amounts which include only the emissions from sites for which the applicable threshold value as specified in Annex II of Regulation (EC) No 166/2006 (E-PRTR) is exceeded. For non-EU sites, the same principle is applied but only for already measured emission parameters. All UPM production sites enter their data into a common database where the data is checked and consolidated. Emissions to water UPM reports the total amounts of COD, BOD, and AOX from its pulp and paper mills as its main performance indicators. These are calculated based on mill-level data from sampling or continuous monitoring. If the wastewater is treated at municipal or external effluent treatment plants, the values included in the total sums are the loads before effluent treatment. These mills are excluded from the calculation of the average load per product unit. Conversions are made in the case of different measurement scopes: BOD7 and BOD5 (adjustment due to number of days, either 5 or 7), COD and TOC (TOC as COD/3 in accordance with ESRS E2-4). Reporting principles for metrics

As required by ESRS E2-4, UPM also reports on consolidated amounts which include only the emissions from sites for which the applicable threshold value as specified in Annex II of Regulation (EC) No 166/2006 (E-PRTR) is exceeded. For non-EU sites, the same principle is applied but only for already measured emission parameters. All UPM production sites enter their data into a common database where the data is checked and consolidated. In general, emissions are reported to the relevant local authorities in accordance with the site permits. For UPM's pulp and paper mills in Europe, China, and Uruguay, the relevant emissions are verified and reported in accordance with the EU's Eco-Management and Audit Scheme (EMAS) by EMAS-accredited auditors. Substances of concern and of very high concern UPM does not produce any substances of concern, nor are UPM's main raw materials classified as such. In some cases, substances of concern can be found as components or more often as impurities in chemical additives used in production or in chemicals used for mill maintenance or as laboratory agents. When present in an additive used in production, substances of concern react chemically. This is because UPM products are typically solid articles such as paper or plywood. However, UPM's products may contain small amounts or impurities of substances of concern. Small amounts may also leave the sites as emissions to water or air. All products made in UPM pulp mills and in the European paper mills comply with the relevant EU Ecolabel criteria, e.g. for graphic paper including its strict requirements for use of chemicals. Refer to » E2-1 Policies for information about UPM's policies on the use of substances of concern. In 2025, a review of the substances of concern was conducted. This review was based on the information and amounts of substances of concern in purchased production chemicals gathered in 2024, as well as the potential emissions to the environment, and potential carry-over to products. The review concluded that there are no material impacts or risks. Therefore, quantitative disclosure on substances of concern has been omitted. E2-5

Water and marine resources (ESRS E3) Water plays a crucial role in UPM's operations, from sustainable forestry to logistics and production. It is also an important source of renewable energy.

Reduction in wastewater volumes achieved for a UPM average product

Average recirculation ratio of water used to freshwater withdrawn

UPM's water-intensive operations are in areas with sufficient water availability

-17% 20 x Compared to 2008 (2030 target: -30%) Approximate value in pulp and paper production

E2-6

Anticipated financial effects

In 2025, no major incidents happened at UPM's operations and no major deposits were made. Thus, there were no operating and capital expenditures in conjunction with major incidents and deposits.

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025