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

Stakeholder engagement UPM recognizes the importance of dialogue and open communication channels with internal and external stakeholders who are or may be affected by the company's actions. For example, this is done through forest management practices in accordance with FSC™ and PEFC certification requirements or through participation in relevant networks and organizations. For example, UPM has participated in the SBTN's development work since 2023 and joined the SBTN's pilot for land use methods in November 2025. Impacts, risks and opportunities

Transition plan

E4-1

Assessing resilience

Biodiversity and ecosystems (ESRS E4) All activities that alter nature have an impact on the living conditions of local flora and fauna. UPM aims to mitigate negative impacts, and efforts to maintain or enhance biodiversity must be integrated into UPM's operations.

Biodiversity refers to the diversity and variation of species and ecosystems. According to the UN, biodiversity is deteriorating worldwide despite ongoing efforts. Biodiversity loss is projected to worsen if no mitigation actions are taken. Biodiversity is instrumental for the vitality of UPM's business. Enhancing biodiversity creates opportunities and reduces risks. UPM's operations are closely linked to biodiversity, and UPM's wood sourcing and land use activities may have significant negative impacts on biodiversity. Measures such as the use of certified wood are taken to avoid potential negative impacts. UPM depends on wood as its main resource of production. Deteriorating biodiversity can have significant negative impacts on the availability and acceptability of wood as a raw material in the short, medium, and long term. Other relevant impacts on biodiversity may arise from UPM's hydropower plants and production sites. Local living conditions for flora and fauna at these sites are improved by reducing emissions to air and water, and in general, by removing obstacles in streams. Relation to business model and strategy Biodiversity is essential for maintaining healthy forest growth and ensuring the resilience of ecosystems and their ability to adapt to a changing climate. UPM systematically maintains and enhances biodiversity in its forests and unplanted and protected areas. Mitigating climate change is seen as one of the most important measures to safeguard biodiversity. UPM's Global Forest Action Program combines measures on biodiversity, climate, water, soil, and social contribution to ensure a net positive impact on biodiversity in UPM's own forests and land areas. UPM's Sustainable Supply Chain Program supports the protection and enhancement of biodiversity in the supply chain. Biodiversity protection has been identified as one of the key issues in UPM's Sustainable Supply Chain Program. The issue is promoted in the sourcing categories where it has been identified as particularly relevant. These include commodities derived from the production of living natural resources, such as forestry or agriculture. To steer its sustainability activities, UPM has set several sustainability focus areas, including forests, biodiversity, climate, water, and responsible sourcing, with targets and key performance indicators for 2030 or as continuous targets. They are reviewed every year based on a double materiality assessment. UPM's actions minimize risks and negative impacts biodiversity loss may have on the availability and acceptability of wood raw material for UPM's products such as pulp, paper, timber, biofuels, and biochemicals.

SBM-3

Overview

Impacts, risks and opportunities Positive impact: Ensuring and enhancing net-positive impact on biodiversity by UPM's forest management

Description

Percentage of certified fibre Obstacle-free streams achieved 90% 323

UPM's Global Forest Action Program combines measures on biodiversity, climate, water, soil, and social contribution – with the aim of a net-positive impact on biodiversity in UPM's own forests and land areas, as well as the protection of biodiversity in the supply chain. UPM's operations are widely linked with biodiversity, and significant negative impacts may arise from UPM's wood sourcing and land use activities. Measures are taken to avoid potential negative impacts including potential deforestation, e.g. the use of certified wood. Deteriorating biodiversity may cause significant adverse effects on the availability and acceptability of wood raw material needed to produce UPM's products such as pulp, paper, timber, and biochemicals Maintaining and enhancing biodiversity is essential for ensuring healthy forest growth, and that forests adapt to climate change.

Overall positive development of forest biodiversity measured in Finland, Uruguay, and in the USA

Potential negative impact: Biodiversity loss in UPM's multi-tier supply chain

(2030 target: 100%)

(2030 target: 500 km)

Risk: Dependency on wood as main resource for production

Opportunity: Biodiversity ensures healthy forest growth

Refer to » Report of the Board of Directors, section Risks, paragraph Biodiversity loss Identified activities with potential negative impacts on biodiversity In its assessment, UPM has identified the following activities and areas with potential material impacts on biodiversity: • UPM's forest management in Finland and the USA and UPM’s land management in Uruguay • UPM's hydropower plants and other obstacles such as dams in Finland’s stream waters • Emissions to water and air from UPM's pulp and paper mills

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025