UPM Annual Report 2025

First page Table of contents Previous page 2-3 Next page Last page

We are UPM

Governance

Accounts and performance

UPM in brief

Our strategy

Our businesses

Sustainability

About this report

UPM reports on its corporate responsibility in accordance with GRI standards UPM has reported in accordance with the Global Reporting Initiative (GRI) standards for the period from January 1, 2025, to December 31, 2025. Our GRI index document shows where the material topics and general disclo sures can be found in the Annual Report, on UPM’s website or in the GRI index document itself. It also includes information about omissions and additional explanations and disclosures on the management approach. The document is available on UPM’s website upm.com/sustainability .

This Annual Report provides a comprehensive overview of our performance in 2025. All material information has been integrated into this document, including the accounts, the Corporate Governance Statement, and the Remuneration Report. Corporate Sustainability Reporting Directive (CSRD) The EU Corporate Sustainability Reporting Directive (CSRD) has introduced a standardized mandatory reporting framework requiring companies to disclose comprehensive information about their environmental, social, and governance performance. This includes actions to mitigate climate change, address human rights, and promote good governance. Under the CSRD, the European Sustainability Reporting Standards (ESRS) outline the EU requirements and indicators and provide detailed guidelines on the content and format of reporting on sustainability-related impacts, risks and opportunities. We have included the ESRS relevant to our business and the material topics identified through the double materiality assessment in the Sustain ability Statement (on pages 133–249).

Contents

The online reports All online reports can be found at upm.com/annualreport UPM Annual Report 2025 PDF version UPM Corporate Governance Statement 2025

Governance

We are UPM

Corporate Governance Statement

88 90 101 108

UPM in brief From the President and CEO

Our businesses UPM Biorefining

Board of Directors

UPM Remuneration Report 2025 Accounts for 2025 in XBRL format

4 6 8

36 37 38 39 40 42 43

Group Executive Team Remuneration Report

This is UPM

UPM Energy

UPM GRI Content Index 2025 UPM Material Balance 2025 Interactive Analyst tool for financial and sustainability data

Our businesses

UPM Adhesive Materials UPM Specialty Papers

Our performance in 2025

10 12 14

Events in 2025

UPM Fibres

Our solutions for every day

UPM Plywood

Read more about our responsibility agenda at upm.com/sustainability.

UPM Communication Papers

Accounts and performance

Our strategy We increase our growth focus through a streamlined business portfolio

Sustainability Value from sustainability

18 19

Report of the Board of Directors

116 133 137 155

46 47

We act on three fronts

Sustainability Statement

Our 2030 sustainability targets Actions for the environment Sustainable forestry

Strategy in action

20 24 25 26 28 29 30

ESRS 2 General information ESRS E1 Climate change

Financial performance and targets Driving long-term value creation

50 52 54 56 59 60 62 66 70 72 74 76 80 82 84

ESRS E2 Pollution 176 ESRS E3 Water and marine resources 183 ESRS E4 Biodiversity and ecosystems 188 ESRS E5 Resource use and circular economy 199 ESRS S1 Own workforce 208 ESRS S2 Workers in the value chain 222 ESRS S3 Affected communities 229 ESRS G1 Business conduct 236

Enhancing biodiversity

Changes in the composition and names of reportable segments in 2026

Strategic milestones in 2025

Committed to climate action

Innovating for impact

Toward CO 2 -free energy

UPM Fibres Given the significance of the UPM Fibres business and the distinct charac teristics of its Fibres South and Fibres North parts, we will provide additional financial information for these two parts of the UPM Fibres reporting segment starting in Q1 2026. In addition, we have moved the UPM Forest business into the UPM Fibres business area as of January 1, 2026. Most of the wood used by UPM in Finland is consumed within the UPM Fibres business, and the Finnish forests are therefore considered an integral operational and strategic part of the UPM Fibres North operations. The change improves consistency in reporting, as the forest assets in Uruguay have already been reported as part of the UPM Fibres South operations. Until the end of 2025, UPM Forest was included in Other operations.

UPM Biorefining UPM Biorefining, consisting of UPM Biochemicals and UPM Biofuels and reported as part of Other operations, was renamed UPM Next Generation Renewables as of January 1, 2026. Following these changes, Other Opera tions includes UPM Next Generation Renewables, UPM Innovation (former Technology), Group services, wood sourcing and forest assets in the U.S. UPM Specialty Papers UPM Specialty Papers was renamed UPM Specialty Materials as of Janu ary 1, 2026. In this Annual Report, we have used the names that were in use in 2025, except for UPM's business operations presented on pages 8–9.

Accelerating innovation through AI Generating shareholder value

Responsible water management Advancing the circular bioeconomy Creating value for people and society Active dialogue with stakeholders

Risks and opportunities

People and culture

A diverse and inclusive working culture

Financial Statements

258 343 350 355 360 362

Safety and well-being

Auditor's report

Collaborating on human rights Committed to compliance Ensuring a sustainable supply chain Contributing to society through taxes Our societal and environmental impacts

Sustainability Assurance Reports

Other financial information