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

Water recycled and reused Considering UPM's operations, pulp and paper production is the most water intensive. There, only approximately 5% of the water used in production is taken from freshwater sources and internally recirculated multiple times. The corresponding average water reuse and recirculation ratio R(WRR) is 20 according to ISO 59020 Annex A. 20 times the total water withdrawal results in about 8 billion m3 of recycled and reused water in UPM's processes.

Targets

Metrics

E3-3

E3-4

Targets related to water To manage its sustainability activities, UPM has set several targets and key performance indicators for its sustainability focus areas covering production and supply chain. These targets support UPM's policy objective of minimizing water use on all UPM production sites (UPM Sustainability Policy Statement) and, for example, efficient water use of

Water consumption Water withdrawal, outflow, and consumption

suppliers (UPM Supplier and Third-Party Code). UPM's sustainability targets are developed taking the views, wishes, and perspectives of external stakeholders from UPM's constant multi-stakeholder dialogue into account.

Water storage Water storage is not material for UPM.

m 3

2025

2024

Water withdrawal Surface water

Water quality and quantity in the water basins Water quality and quantity are taken into account by the authorities when setting the relevant permit limits. UPM follows up on water basin quality and quantity in accordance with national arrangements.

395,000,000 391,000,000

2030 target

Target follow-up 2025 (2024)

Ground water

10,000,000

12,000,000

Sustainability focus area and key performance indicator

Base year Base year value

Communal water

4,000,000

4,000,000

Water Wastewater volume for an average UPM product *

Total water withdrawal

410,000,000 407,000,000

Reporting principles for metrics

2008

100% **

-30%

-17% (-16%)

Water discharge Process wastewater

Responsible sourcing UPM total spend covered by UPM Supplier and Third-Party Code

195,000,000 198,000,000

Water consumption All relevant production sites enter data on water withdrawal and water outflow into a common database where the data is checked and consolidated. If not measured, water withdrawal and cooling water volumes are reported based on estimates. Estimates are done based on pumps' operating times or production, for example. Wastewater volumes are always measured. Consumption is calculated as withdrawal minus outflow. Water inflow and outflow 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 data is verified and reported in accordance with the EU’s Eco-Management and Audit Scheme (EMAS) by EMAS-accredited auditors. Water recycled and reused An actual measurement of all the water that is recirculated is not made. Internally recirculated water is an estimate, calculated by estimating how much water would be needed for each process stage at a pulp and paper mill, if use was completely linear. Water-use efficiency is tracked through specific wastewater volumes.

2015

79%

>80% (continuous)

86% (91%)

Cooling water

186,000,000 184,000,000

Total water discharge

381,000,000 382,000,000

* Relevant for pulp and paper production ** Calculation: minus 30% target for weighted average of reductions to be achieved for specific emissions of Pulp and Paper, with base year as 100%

Water consumption Total water consumption

29,000,000

25,000,000

Total water consumption in areas at water risk

0

0

UPM's sustainability targets for 2030 are followed up and reported at Group level at least annually. The target parameter chosen for water management is the wastewater volume of UPM's pulp and paper mills, which are UPM's water-intensive production sites. The target has been evaluated and set based on the historical development, known investment projects and technological developments, and potential local impacts. It aims to go beyond actual permit values set by the authorities and to consider the local circumstances. EU Ecolabel criteria and BAT reference values (best available techniques) were also taken into account when setting targets. The Group-level targets are allocated to business areas and sites. Progress toward the Group-level 2030 target for 2030 for reducing wastewater volume has slowed since 2022, mainly due to changed operating conditions, particularly at paper mills.

UPM's main production sites are in areas with very low to medium water basin physical risk, and one of them, the UPM Changshu paper mill raises to high risk classification for the 2030 and 2050 scenario. Refer to » E3-2 Water risk assessments UPM's Group-level targets cover all pulp and paper mills for wastewater volume and quality. UPM's targets do not cover the management of impacts, risks, and opportunities related to marine resources, as they are not material for UPM. Refer to » E3-1 Policies , last paragraph The targets are voluntary and additional to legal requirements.

Water intensity

m 3 /€m

2025

2024

Total water consumption in own operations (m 3 ) per net revenue (€m sales)

2,960

2,430

Sales correspond to total sales as reported in the consolidated financial statements. Refer to accounting policies in the consolidated financial statements » Note 2.2. Sales.

Refer to » E3-2 Water management, Key action Refer to » G1-2 Responsible sourcing for the sourcing-related target

UPM Financial Report 2025

186

UPM Financial Report 2025

187

186

187

UPM Annual Report 2025

UPM Annual Report 2025