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

UPM's own protected land areas Globally, about 141,000 hectares (15%) of UPM's own land is protected or in restricted use. Protected areas include valuable habitats, natural forests, and other important areas such as wetlands or culturally important sites. UPM's approach is to identify and protect valuable habitats within its forest and plantation areas. Protected habitats are not managed commercially. This means that 100% of the forest operations are nearby protected or other biodiversity-sensitive areas. UPM does not operate in global biodiversity hotspots.

Wood deliveries

Metrics

Reporting principles for targets

Wood deliveries to UPM mills

Net-positive impact on forest biodiversity UPM's approach comprises a set of biodiversity indicators contributing to the positive development of living conditions for flora and fauna on a specified land area. Indicators have been and new indicators are developed in co-operation with research institutes and other stakeholders. There is currently no scientific way to evaluate whether the total impact on biodiversity is positive or negative. Thus, UPM proceeds towards "net-positivity" having more indicators with positive than negative development, with the single indicators compared to the previous year. The annual positive development target is achieved when the majority of the biodiversity indicators shows a positive development compared to the previous year. The target is followed-up separately for UPM's forest in Finland and the USA, and UPM's land areas in Uruguay.

E4-5

mio m 3

2025

2024

Finland

15.8

16.4

UPM's impact metrics focus on biodiversity; the company’s forest operations are not related to land-use change. Forest and land areas

Uruguay

10.7

10.4

Germany

0.5

0.5

USA

0.3

0.3

0.2

0.2

Estonia

Forest and land areas owned and leased by UPM

0.2

0.2

UK

Hectares

2025

2024

Total

27.7

28.0

Finland

522,000

522,000

Biodiversity indicators – Finland In Finland, the target of a net-positive biodiversity impact is measured for UPM's own forest land using nine indicators for three categories: forest management, conservation, and projects and collaboration. Indicators are developed in cooperation with research institutes and other stakeholders. The baseline is set as 2019, and the assessment for most of

Uruguay

319,000

318,000

U.S.

76,000

76,000

Refer to » E4-5, Metrics, Biodiversity indicators for information and follow-up on the specific indicators.

the indicators is done by comparing the current status with the previous years’ figures. In 2025, an overall positive development was measured for each indicator.

Total owned

917,000

916,000

Uruguay, leased

177,000

174,000

Obstacle-free streams UPM aims to release or restore 500 km of stream waters and waterway routes by 2030. The verification and monitoring of released and restored stream waters is based on the Finnish Environment Institute's geospatial data, i.e. river network data ("uomaverkosto" in Finnish).

Total owned and leased

1,094,000

1,090,000

This includes forest land for Finland and the U.S., and eucalyptus plantations, grasslands, and conservation areas for Uruguay. In addition, UPM manages about 1,660,000 hectares of privately owned forests in Finland. Refer to » Note 4.2 Forest assets in the consolidated financial statements for information about hectares of productive forest land and forested land. Forest certification

Biodiversity indicators – Finland

Indicator

Target

Metric

2025

2024

Tree species

Increase broadleaved tree species volumes Share of broadleaved trees (%)

12.3%

11.8%

Deadwood volumes *

Increase deadwood volumes in commercial forests Increase the volumes in commercial forests Increase the share of forests managed with continuous-cover

Volume of deadwood per hectare (m3/ha)

7.4

7.4

Volume of large aspen (DBH>30 cm) per hectare (m3/ha) Share of continuous-cover forests from total commercial forest area (%)

Retained aspen trees *

0.74

0.74

Certification of forest land owned by UPM

Continuous-cover forestry

1.8%

1.4%

%

2025

2024

Protected areas **

Improved nature conservation network Share of protected areas from total land area (%)

17.4%

17.2%

FSC™ and PEFC double certified

91.0%

90.2%

62,069

55,327

Diverse protected valuable habitat network Number of valuable habitats (#)

Valuable natural habitats

PEFC certified

8.0%

8.3%

Habitat restoration

Improved biodiversity in restored environments

228

10

Restored peatland areas (ha)

In the process of being certified

1.0%

1.5%

11

Amount of other restored sites (#)

6

Total

100.0%

100.0%

Indicator development

Complement the set of indicators and develop monitoring

Biodiversity index and indicator development

All UPM-owned forests are certified or in the process of being certified if the site is new. The forest area covered by UPM's FSC™ Group certification is 582,000 hectares in Finland and 9,000 hectares in Uruguay. UPM applies the same strict sustainability standards wherever it operates. UPM also promotes forest certification to private forest owners and other customers. UPM has established FSC™ Group certification schemes in Finland and in Uruguay, which support small forest owners' access to certification.

+

+

Research and collaboration

Active projects with stakeholders to further develop UPM's biodiversity program Ongoing projects

+

+

* Data is based on National Forest Inventory data collected from sample plots located in UPM owned land and calculated by Natural Resources Institute Finland (Luke). Updated data availability depends on the NFI rotation (~5 years). ** The protection percentage includes strictly protected forestry land and protected areas, which can be managed and used in accordance with the instructions of the authorities.

UPM Financial Report 2025

194

UPM Financial Report 2025

195

194

195

UPM Annual Report 2025

UPM Annual Report 2025