UPM Annual Report 2025

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Planned actions • The global UPM Forest Action Program will continue with further targets and follow-up in all of UPM's wood production regions in Finland, the USA, and Uruguay. • The implementation of the Smart Forestry™ method will continue in the USA with further measures and actions. • Ongoing development work for measuring biodiversity with global FSC, and through direct collaboration with institutions. • Participation in the SBTN Land Methods pilot in 2026. • Active collaboration with the certification schemes to further develop the standards. Stream waters and biodiversity Key actions UPM's stream water program aims to remove obstacles to fish migration, restore fish stocks throughout Finland, and improve living conditions for all stream fauna. The target is to open 500 kilometers of obstacle-free streams in Finland by 2030. The target steers the activities and monitoring of their impact on biodiversity. Actions in 2025 • Three obstacle removal projects with UPM's participation were initiated and carried out: Sysmä Virtaankoski (0.4 km), Kuusamo Kuusinkijoki (12.1 km) and Rautjärvi Kurunkoski (19.7 km) • Four restoration projects with UPM's participation were initiated and carried out: Savonlinna Linnanvirta (0.25 km), Karkkila Rapuoja and Kaupinoja (2.0 km), Jämsä Arvajankoski (0.1 km) and Kitee Nivunki (1.4 km) • Studies related to eDNA continued in Finland and Uruguay. In Finland, three research projects with UPM's participation were initiated: The EU funded NorthDIVeRSITY led by the Natural Resource Institute Finland (LUKE), ARVOVESI3 Oulujoki water framework vision actions led by Kajaani University of Applied Sciences and Sateenvarjo IV Migrating fish development on built water courses led by the Natural Resource Institute Finland (LUKE). • Participation in SBTN development. See above paragraph » E4-3 Forests and biodiversity Planned actions • There are several dam removal projects at various stages in Finland. UPM aims to participate in at least one dam removal or restoration project every year as part of its Stream Water Program. • Testing of eDNA will continue (see above)

• Certain sourcing categories have been identified as particularly relevant in relation to biodiversity. These are commodities derived from the production of living natural resources such as forestry or agriculture. To date, UPM has not identified any material negative impacts related to land degradation, desertification, or soil sealing. UPM's measures ensure the conservation of the most sensitive environments, and that there is no degradation on a landscape scale. UPM's forest management and land use may have an impact on endangered species. The potential negative impacts are minimized through several measures, projects, joint initiatives, and research in this area. Refer to » E4-3 Actions Policies The UPM Code of Conduct expresses the company's respect for people, the environment, and ethical business practices, including its commitment to biodiversity. The Code is complemented by UPM's Sustainability Policy Statement, which addresses biodiversity-related topics in more detail. The UPM Supplier and Third-Party Code sets out minimum requirements for the supply chain. Refer to » G1-1 Policies for more information about these policy documents. In addition, specific issues of biodiversity are also addressed in the following policy documents and programs: • UPM's requirements for wood suppliers, Refer to » E5-1 Policies • UPM's requirements for pulp suppliers, Refer to » E5-1 Policies • UPM Sustainable Supply Chain Program, Refer to » G1-2 Responsible sourcing • UPM Forest Action Program, Refer to » E4-3 Actions The relevant impact drivers of biodiversity loss are covered in UPM's Sustainability Policy Statement through the company's commitment to climate change mitigation and adaptation, its commitment to sustainable forest management and zero deforestation, and measures such as the elimination of harmful invasive species at its sites and the reduction of emissions to air and water and avoidance of emissions to soil. The Policy Statement also covers UPM's areas of impact on biodiversity: forest and land management, stream water dams, and production sites. Dependencies between biodiversity and living conditions for flora and fauna are recognized. Biodiversity risks and opportunities are assessed and documented as part of UPM's risk management process, emphasizing that biodiversity is recognized as instrumental in maintaining healthy forest growth. When sourcing wood and fibre, forest certification must be used to manage biodiversity impacts, and respective chain-of-custody certification must be used to ensure the traceability of the material. All UPM-owned forests and plantations are 100% certified or will be certified if the site is new. UPM knows the origin of all wood and fibres used in UPM's products, as all UPM wood and fibre supplies are covered by E4-2

biodiversity, the role of forests for the climate commitment of 1.5 °C, the protection of water systems, the importance of healthy soils, engagement with local communities, as well as safe working conditions. Forests and biodiversity Key actions UPM safeguards biodiversity in its own forests and land and continues to carry out biodiversity activities as part of the company's global Forest Action Program. Forest certification plays an important role in managing biodiversity, both in UPM's own forests and plantations and in external wood sources. This includes FSC™ and/or PEFC certification for UPM's own forests and plantations and chain-of-custody certification, controlled wood programs or other fibre sourcing standards for the supply chain. UPM has set a target, with dedicated key performance indicators to measure progress towards a net-positive impact on biodiversity in UPM's forests. The set of indicators for Finland was launched in 2018, for Uruguay in 2022, and for the U.S. in 2025. Development work for measuring biodiversity is continuous. UPM has also set a target of 100% certified fibre by 2030. In the USA, UPM is working to improve communication and cooperation with local indigenous communities to better integrate indigenous knowledge and interests into forest management strategies and biodiversity-related actions. UPM uses existing forest industry stakeholder groups and direct communication with representatives to exchange information. Actions in 2025 • UPM continued participating in the global project led by FSC™ to better understand the positive impact on biodiversity that forest certification has. In 2025, the second stage of the project was conducted, which included field work at selected UPM sites in Finland. • Implementation and follow-up of the new and revised biodiversity indicators for UPM's forests and plantations in Finland, the USA, and Uruguay. The first ever deadwood survey was conducted in UPM’s forest in Minnesota. This enables setting a baseline for future targets. • The Science Based Target Network’s (SBTN) first pilot was finalized and the work with standards continued. SBTN launched a pilot for the version 2 of Land Methods. UPM participates in the pilot with a view to setting potential targets for forest management in Finland. • The work regarding the UPM Habitat Restoration Program started. The aim of the program is that by 2030 at least 3,000 hectares of peatland habitats will be restored, and management plans will be carried out on at least 100 other sites in UPM-owned forests in Finland. The other sites include habitats with a high potential to support or increase biodiversity, such as groves and esker slopes. • In Uruguay, the project to evaluate the usefulness of environmental DNA (eDNA) for estimating biodiversity through species detection using the DNA metabarcoding strategy was concluded in June. The study area covered approximately 500 hectares. • More than 70 communities were positively impacted by the UPM Foundation projects in Uruguay. • UPM Uruguay received Ecosystem Service Certification (FSC®) for maintenance of a network of conservation areas.

third-party verified chain-of-custody certificates under the FSC™ (FSC N003385) and PEFC (PEFC/02-44-41). UPM recognizes the importance of responsible land tenure and respect for land rights. UPM has a zero-tolerance approach to land grabbing and maintains a respectful and mutually beneficial relationship with affected local communities. UPM's forest units and wood sourcing units carry out biodiversity activities as part of UPM's global Forest Action Program. These cover owned, leased, and managed forests and land areas. Biodiversity-sensitive areas are identified, and efforts to maintain or enhance biodiversity must be integrated into UPM's operations where relevant, from daily practices to top management decisions. To develop and implement actions to maintain and enhance biodiversity, it is important to understand and measure activities' potential negative and positive impacts. In addition, UPM's Sustainability Policy Statement addresses the importance of mitigating negative impacts on biodiversity for UPM's production sites. Oceans and seas have not been identified as material for UPM's impact on biodiversity. However, actions are being taken to reduce the nutrient load on the Baltic Sea. UPM cooperates with the Baltic Sea Action Group. UPM's Sustainability Policy Statement prohibits forest conversion to plantations or non-forest uses. In addition, all UPM suppliers are expected to map and understand the biodiversity impacts of their own operations and supply chains, and to engage in relevant biodiversity protection activities. Actions Based on UPM's identified material topics, UPM has set the following focus areas related to biodiversity: • Forestry (with a target of 100% certified fibre) • Biodiversity (with targets for a net-positive impact on forest biodiversity and obstacle-free streams) • Climate (with targets for Scope 1 and 2 CO 2 emissions, acidifying flue gases), Refer to » E1-4 Targets and » E2-3 Targets • Water (with a target for emissions to water), Refer to » E3-3 Targets • Responsible sourcing (with targets for Scope 3 GHG emissions and for UPM's spend covered by the UPM Supplier and Third-Party Code), Refer to » G1-2 Responsible sourcing For each of these focus areas, key actions are defined. The key actions, previous year’s key actions and planned key actions are presented below. UPM Forest Action Program UPM's global Forest Action Program was launched in 2022. It outlines an ambitious agenda to maximize the positive impact of forestry operations by the end of 2030. The program takes a holistic global view of the impact of forestry, combining measures in five factors: climate; biodiversity; soil; water; and social contribution. It addresses the net-positive impact on E4-3

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025