UPM Annual Report 2025

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Indicator development Measuring and monitoring biodiversity requires the development of indicators. As part of the development work, UPM reviewed and updated the indicator set with improved and concrete targets in 2024. The updates also ensure better alignment with other indicators and targets set by UPM Forest, such as the Habitat Restoration Program. For the indicators relating to the structural characteristics of forests, two changes have been implemented from 2025 onwards: • The former “Forest age” indicator was replaced by “Retained aspen trees”, which measures the volume of aspen with a diameter of 30+ cm per hectare (m 3 /ha). • The “Forest structure” indicator was renamed to “Continuous-cover forestry” and the scope changed to follow-up the share of continuous cover forestry on UPM lands. Biodiversity indicators – Uruguay In Uruguay, the impact on biodiversity conservation actions is measured using five indicators as set out in the table below. Targets and metrics are defined for each indicator.

For indicators relating to habitats outside commercial use, two new metrics for “Habitat restoration” were introduced: • Restored peatland: with a target of 3,000 ha by 2030. • Number of sites restored or managed to promote biodiversity: with a target of at least 100 sites by 2030. An indicator “Research and collaboration” was added for projects and cooperation with research partners and other NGOs to develop sustainable forest management practices that promote biodiversity.

Biodiversity indicators – the U.S.

In the U.S., the target of a net-positive biodiversity impacts is measured for UPM's own forest land using six indicators divided into three categories: forest management, conservation, and projects and collaboration.

Biodiversity indicators – the U.S.

Indicator

Target

Metric

2025

2024

Mixedwood silviculture

Increase the area that is managed with mixedwood silviculture Increase the share of the area that is managed multi-aged Maintain or increase sufficient deadwood volumes in commercial forests Confirm the locations and area of wetland and riparian habitat Confirm the locations and area of old growth forests Develop silvicultural practices through collaboration with research organizations

Area of mixedwood silviculture (ha)

13,260

13,006

Multi-aged silviculture

Share of the area of total UPM land (%)

11 %

10 %

Deadwood volumes

Deadwood volumes per hectare (m3/ha)

22.9

*

The total area where UPM carries out some form of conservation measure is 66,000 hectares. This includes a network of 34 biodiversity reserves, covering more than 13,400 hectares. Each biodiversity reserve has specific management and monitoring plans.

Wetland and riparian habitat

Locations mapped and area confirmed (ha) Locations mapped and area confirmed (ha)

24,504

*

*

Old-growth forests

**

+

Mixedwood research collaboration

Ongoing activities

+

Biodiversity indicators – Uruguay

* Reporting of this indicator started in 2025. ** Mapping in progress

Indicator

Target

Metric

2025

2024

Biodiversity conservation areas in UPM's own land

Ensure that the areas with conservation purposes represent at least 20% of the land owned by UPM Cover at least 85% of the landscape units in which UPM owns land Quality index needs to be at least 0.75 in High Conservation Value Areas Reduce by 8% per year the active area of invasive exotic woody species

Share of conservation area of total own UPM land (%)

20.7 % 19.6 %

indicators is based on UPM's own forest asset data system that, in case of these indicators, runs partly on estimates. Indicators Protected areas and Valuable habitats reflect what was set aside from UPM's forestry operations. Protected areas are areas where UPM does not operate at all or operate only according to instructions given by governmental authorities. Valuable habitats are distinctive sites in a landscape that are preserved during UPM's operations, such as small forest streams or nesting places. The development in these indicators is based on UPM's own forest asset data system. Indicators Habitat restoration, Research and collaboration, and Indicator development collectively reflect UPM's pursuit to promote forest biodiversity in ways that are not yet part of its regular forest management practices. In these projects, UPM develops novel practices to measure, manage, and restore biodiversity, often in collaboration with different stakeholders, such as conservation experts and scientists. A list of these projects is publicly available on » upm.com. Biodiversity indicators – Uruguay In Uruguay, most plantations are established on modified natural 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. Areas with conservation purposes have been identified based on outstanding biodiversity attributes and classified in the following categories: biodiversity reserves which are High Conservation Value Area (HCVA) and Conservation Area (CA), and other areas with conservation

Reporting principles for metrics

Coverage of UPM's network of biodiversity reserves

Share of the landscape units present in land owned by UPM, which are included in the Network of Biodiversity Reserves (%) Average quality index in High Conservation Value Areas Change in the active area of invasive exotic woody species between year end and start (%)

75 %

75 %

Areas (total, certified, protected) and wood deliveries Due to its relevance for biodiversity and ecosystems, UPM reports on its forest and land areas, their coverage by forest certification, and the protected land areas. In addition, UPM reports the volume of wood deliveries to UPM sites by country of origin. The data is based on invoices or weighing systems for wood deliveries and third-party audits for forest certification. Areas are documented in forest databases. All UPM forest and wood sourcing units enter their data into a common database where the data is checked and consolidated. Biodiversity indicators – Finland In Finland, the commercial forests owned by UPM can be classified as semi-natural forests that retain many of the features of natural forests throughout the regeneration cycle. The biodiversity indicators reflect how UPM retains the features that promote biodiversity, protects valuable habitats, and pursues to improve its practices. Indicators Tree species, Deadwood volumes, Retained aspen trees, and Continuous-cover forestry reflect how UPM retains during its forestry operations the forest features that are essential for many forest-dwelling species. Deadwood and retained aspen tree volumes are inventoried by Natural Resources Institute Finland. This inventory is a subset of the broader National Forest Inventory which is based on sampling, and is conducted approximately every five years. The development in other

Conservation status index of UPM's biodiversity reserves * Control of invasive exotic woody species **

0.76

0.77

23.7 %

*

Endemic and threatened species

Maintain or enhance endemic and threatened species populations

No. of endemic and threatened species recorded during the past 5 years/No. of endemic and threatened species recorded during the cumulative baseline period (%)

-5.5 %

2.8 %

* Correction of indicator value (0.82) for 2024 ** Reporting of this indicator started in 2025. The total area of active invasions of exotic woody species at the end of 2024 was 9,400 ha. This value is the starting point for reporting the area reduction to be achieved in 2025.

UPM Financial Report 2025

196

UPM Financial Report 2025

197

196

197

UPM Annual Report 2025

UPM Annual Report 2025