UPM Annual Report 2025

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purposes which are representative sample areas and biological corridors or connectivity areas. Indicators for conservation area hectares and coverage are calculated based on Forest Oriental's (FO) forest database (Forest Oriental is the name of UPM's company dedicated to plantation management and pulpwood sourcing in Uruguay based on forest plantations), Geographic Information System (GIS), and public cartography of Uruguay's landscape units. The quality of HCVA is assessed by the conservation status index which is based on annual monitoring of several indicators covering the status of natural grasslands, native forest, flora, and fauna. The invasion of exotic species is an important cause of biodiversity loss and thus important to control. All areas with exotic woody species are identified and mapped. Active areas are those in which exotic species are present but have not yet been treated. After removal of exotic species, areas are inspected after three years to ensure that actions have been successful. Maintaining or enhancing the number of endemic and threatened species found in FO's biodiversity reserves demonstrates that the conservation efforts done by FO are mitigating the potential loss of sensitive species in the areas in which the company operates. Endemic and threatened species are defined by the Uruguayan Ministry of Environment, and the list is updated periodically. The number of such species in UPM's biodiversity reserves is followed up via a biodiversity monitoring program, and since 1992 the results have been maintained in FO's biodiversity database. Variation in this indicator is expected for example, when new biodiversity reserves are added to the baseline. Biodiversity indicators – the U.S. In Minnesota, the forest land owned by UPM covers 76,000 hectares. Forest can be considered mainly as semi-natural mixed forest, with species like aspen, pine, spruce, and fir. Most of the area is commercially used, but still with many characteristics of natural forest. By establishing the six biodiversity indicators UPM aims to further enhance these characteristics. With mixedwood and multi-aged silviculture, the aim is to increase the number of different tree species and to create forests with enhanced stratification. Both of these characteristics help to develop the forest to resemble to those that were originally found in the area. UPM is conserving the most valuable areas in its ownership. With indicators related to old-growth forests and wetland and riparian habitats, the locations and amount of these type ecosystems in UPM's land will be confirmed. Deadwood is essential for many animals, whether they are insects, mammals, or birds. In the USA, UPM conducted the first ever deadwood survey with an external partner to have a baseline for the deadwood volumes, and to understand how the volumes are divided between different species, diameters, and a state of decay. UPM collaborates with research organizations to further develop its practices.

Anticipated financial effects

E4-6

For qualitative information about the financial impact of biodiversity related risks, Refer to the » Report of the Board of Directors, section “Biodiversity loss” in chapter “Risks”.

Resource use and circular economy (ESRS E5) Resource efficiency and a circular bioeconomy respond to resource scarcity, contribute to climate change mitigation, and provide sustainable new solutions for customers and consumers.

Increase of process waste sent to landfills or for incineration without energy recovery Nutrients used at own effluent treatment from recycled sources 4% 89% 41% Share of applicable products eligible for ecolabeling

Compared to 2024 (2030 target: zero process waste to landfill or to incineration without energy recovery)

(2030 target: 100%)

(2030 target: 100%)

UPM Financial Report 2025

198

UPM Financial Report 2025

199

198

199

UPM Annual Report 2025

UPM Annual Report 2025