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

Production sites and biodiversity Key actions UPM continuously monitors its emissions to air and water and its impact on water bodies. In addition, sites take measures to enhance local biodiversity. Actions in 2025 • UPM continued to reduce emissions to air and water in accordance with its environmental targets for 2030, thus enhancing local living conditions for flora and fauna. Refer to » E2-2 Actions • Sites continued to manage invasive species in accordance with local plans. • Participation in the SBTN development. Refer to » E4-3 Forests and biodiversity Planned actions • Further emissions reductions in line with UPM's environmental targets for 2030 • The research is continuing to establish a common practice for measuring the sites' impact on biodiversity in water courses. Supply chain and biodiversity Key actions Biodiversity protection has been identified as one of the key issues in UPM's Sustainable Supply Chain Program. The issue is promoted in those sourcing categories where it has been identified as particularly relevant. These include commodities derived from the production of living natural resources, such as natural and plantation forestry or agriculture. Actions in 2025 • Further advances were made in the supply chain collaboration program between UPM and its direct starch suppliers, which focuses on improving the working conditions of the farm workers in Thailand (UPM's tier 2-3 suppliers). Building on the previous program stages of farm auditing, identification of improvement areas, target setting, and action planning, the program introduced Sustainable Agriculture Initiative's (SAI) Farm Sustainability Assessment (FSA), that addresses also biodiversity aspects. Planned actions • UPM continues its efforts to increase the share of certified fibre in its wood sourcing.

Resources In general, forest-related actions are included in UPM's overall investment and resource planning. In addition, four green bonds issued since 2020, the latest one in 2024, have a strong focus on climate, as well as forest related activities. The green bond portfolio of €2,350 million uses eligible assets and projects from the following categories of UPM's Green Finance Framework: • Sustainable forestry and plantation management • Climate-positive and circular bioeconomy-adapted products and solutions • Renewable or CO 2 -free energy Actions for biodiversity enhancement have been integrated into categories. Refer to » E1-3 Resources for details of UPM'’s Green Finance Framework. In addition, UPM has credit facilities which are linked to biodiversity and climate targets. Refer to » E1-1 Investment and funding, Climate-positive forestry , for key performance indicators for both operational and capital expenditures of the EU Taxonomy and notes to the financial statements. During 2025, no significant capital expenditures for forest-related new projects were announced. Biodiversity offsets

Targets

E4-4

Targets related to biodiversity To steer its sustainability activities, UPM has set several targets and key performance indicators covering the areas of biodiversity impacts relevant to UPM: forestry; stream waters; emissions from production sites; and the supply chain. These targets support UPM's policy objective of mitigating the impact of UPM's operations on biodiversity (UPM Code of

Conduct) and even enhancing biodiversity (UPM Sustainability Policy Statement). Sustainability targets are developed by UPM by taking the views, wishes, and perspectives of external stakeholders from UPM's constant multi-stakeholder dialogue into account.

Base year

Target follow-up 2025 (2024)

Sustainability focus area and key performance indicators

Base year

value 2030 target

Biodiversity Net-positive impact on forest biodiversity and developing a monitoring system *

Since 2018 (Finland)/ 2022 (Uruguay)

Usually the previous year

Continuous improvement

Overall positive development measured

Obstacle-free streams **

2015

0 km 500 km

323 km (287 km)

Forestry Share of certified fibre ***

2015

84 %

100 %

90% (88.5%)

Climate Fossil CO 2 emissions from UPM's own combustion and purchased electricity (Scope 1 and 2)

2015

6.80 mt

-65 %

-58% (-50%)

Acidifying flue gases (NO X /SO 2 ) for a UPM average product Water Chemical oxygen demand (COD) for a UPM average product **** Responsible sourcing UPM total spend covered by UPM Supplier and Third-Party Code

2008

100 %

-20 %

-20% (-19%)

UPM does not use biodiversity offsets.

2008

100 %

-40 %

-43% (-44%)

>80% (continuous)

86% (91%)

2015

79 %

CO 2 emissions from materials and logistics (Scope 3)

2018

6.08 mt

-35 %

-22% (-22%)

* Covers UPM's own forests in Finland since 2018 and UPM's land in Uruguay since 2022 ** Relevant for Finland

*** Forest management certification **** Relevant for pulp and paper mills

The targets are followed up and reported at least annually, both at the relevant unit and Group level. UPM has had a net-positive impact on biodiversity target for its own forests in Finland since 2018 and for its land in Uruguay since 2022, with specific key performance indicators to measure progress. In Uruguay, most plantations grow on grasslands formerly used for cattle grazing. The area's biodiversity values are assessed before the plantations are established, and valuable biodiversity hotspots and native forests are protected. UPM's work focuses on the active management of protected habitats and the control of invasive species. In Finland, UPM's hydropower plants and other obstacles such as dams impact the environment by altering river and stream flows and their ecosystems. UPM's stream water program aims to remove obstacles to fish migration, restore fish stocks throughout Finland, and improve the living conditions of all stream fauna.

UPM did not apply ecological thresholds and allocation of impacts when setting its targets. UPM targets are informed by local circumstances and legislation and evolve to respect international frameworks such as forest certification standards. UPM's biodiversity-related targets and their possible sub-indicators in the case of "net-positive impact on forest biodiversity" cover avoidance, minimization, restoration, and rehabilitation.

Refer to » E1-4 Targets for climate target Refer to » E2-3 Targets for air emissions and water targets Refer to » G1-2 Responsible sourcing for sourcing targets

UPM Financial Report 2025

192

UPM Financial Report 2025

193

192

193

UPM Annual Report 2025

UPM Annual Report 2025