UPM Annual Report 2025

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Governance

Accounts and performance

Sustainability Statement

Report of the Board of Directors

Financial Statements

Auditor's Report

Sustainability Assurance Reports

N003385) or PEFC (PEFC/02-44-41). UPM's Sustainable Product Design is the overarching concept in the development of products and services. LCAs are used to calculate potential environmental impacts of new raw materials or new products. They support decision-making in product development and provide evidence to support environmental claims for products entering or already available on the market. The ISO 9001 and ISO 22000 quality and food safety management systems provide a framework for continuous improvement of UPM's performance. All UPM's production sites are ISO 9001-certified. The relevant sites are ISO 22000-certified, which allows UPM to offer several products that are designed and produced to meet the requirements of food packaging. UPM's Chemical Management Standard requires careful assessment of the hazard properties of chemicals. All chemicals selected for use must have the lowest possible negative impact on human health, the environment, and the safety of UPM's products. The list of restricted substances includes substances with selected hazard classifications. Product safety requirements are communicated to customers and suppliers of chemicals and raw materials. A harmonized questionnaire and a common tool (PP-VIS) enable UPM to ensure that sourced chemicals comply with laws and requirements such as the EU Ecolabel criteria. To support customer communications, UPM provides product safety profiles and statements of chemical substances that are not used in products. Most of UPM's products are certified with widely recognized international and regional ecolabels such as the EU Ecolabel. UPM Biofuels has both ISCC EU and ISCC PLUS certification, and UPM Biochemicals and four UPM Adhesive Materials factories have ISCC PLUS certification. All UPM businesses which are using wood have FSC™ and/or PEFC chain-of-custody certification. This verifies the origin of wood and guarantees that all wood used in UPM's products is legally harvested from sustainably managed forests and does not originate from controversial sources. Actions in 2025 • The new UPM Product Stewardship Standard was implemented in all relevant business areas. Refer to » E5-1 Policies for information about the standard. • In the last couple of years, UPM has improved and streamlined the management of chemical inventories and approval processes in UPM production units and implemented a supporting IT system. The system was extended to stepwise cover also Adhesive Materials factories. • UPM Specialty Papers has collaborated, e.g., with EvoPak to support Walkers Chocolates' transition from a plastic wrapper to recyclable paper-based packaging and with Royal Vaassen to support the development of several recyclable and food-safe barrier paper solutions for a variety of end-use applications replacing plastic and aluminum. • UPM launched UPM Circular Renewable Black TM , the first bio-based, NIR-detectable pigment, thus supporting plastic recycling processes. • UPM’s new biorefinery in Leuna, Germany, achieved ISCC PLUS, PEFC, and FSC™ chain-of-custody certifications. Planned actions • UPM is taking action to ensure that its products and packaging will comply with the requirements of the EU Packaging and Packaging

UPM's requirements for suppliers of wood, pulp, chemicals and pigments Specific requirements of UPM Sourcing for certain supplier groups are covered in additional documents, which are available on the UPM website. UPM's requirements for wood suppliers address legal compliance and detailed requirements related to the origin of wood. For example, the supplier must guarantee that all wood comes from acceptable sources, and that wood deliveries do not contain wood that is defined as unacceptable in the FSC™ Controlled Wood Requirements (FSC– STD-40-005 V3-1) or that originate from illegal or controversial sources according to PEFC chain-of-custody requirements (PEFC ST 2002:2020). The pulp supplier requirements address environmental performance, forestry and wood sourcing, ecolabels, and reporting and audits. For example, UPM requires all pulp deliveries of the supplier to fulfil the latest valid FSC™ Controlled Wood and PEFC Due Diligence System requirements. The requirements for chemicals and pigments address, for example, legal compliance, ecolabel requirements, as well as reporting of relevant information to UPM. For example, UPM requires full compliance with the requirements of the local chemicals regulation, such as the European Union REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and CLP (Classification, Labeling and Packaging) regulations. Use of renewable resources and responsible sourcing UPM offers bio-based alternatives to fossil-based materials. Refer to » ESRS 2 SBM-1, Strategy, business model and value chain . UPM's main raw materials are wood and wood-based materials. UPM's Sustainability Policy Statement, specific requirements for wood and pulp suppliers, and the UPM Forest Action Program cover forest management, wood and fibre sourcing, and their various impacts and risks in detail. The UPM Supplier and Third-Party Code defines the minimum level of performance that UPM requires of all its suppliers and third parties such as agents, advisers, joint venture partners, local partners, or distributors acting on behalf of UPM. UPM also requires all its suppliers to promote the same requirements in their own supply chains. Refer to » G1-1 Policies. The UPM Sustainable Supply Chain Program promotes compliance and risk mitigation in the supply chain and helps achieve UPM's environmental, social, and governance-related targets in the supply chain. Refer to » G1-2 Responsible sourcing Circular economy UPM's Sustainability Policy Statement states: "UPM is committed to a circular bioeconomy by using recovered materials from production processes and by developing recycling and utilization options for side streams and residues. UPM promotes recyclability throughout the value chain and the use of recycled materials in its products."

Policies

Actions

E5-1

E5-2

The UPM Code of Conduct expresses the company's respect for people, the environment, and ethical business practices, and includes its commitment to minimize negative environmental impacts. The Code is complemented by UPM's Sustainability Policy Statement, which addresses topics related to resource use and the circular economy in more detail. The UPM Supplier and Third-Party Code addresses minimum requirements for the value chain. Refer to » G1-1 Policies for more information about these policy documents. In addition, specific aspects are covered in the following policy documents, programs, and requirements: • UPM Product Stewardship Standard • UPM Clean Run Standard, Refer to » E2-1 Policies • UPM's Sustainable Product Design concept, Refer to » E5-2 Actions • UPM Sustainable Supply Chain Program, Refer to » G1-2 Responsible sourcing • UPM Forest Action Program, Refer to » E4-3 Actions • UPM's requirements for wood suppliers • UPM Pulp supplier requirements • UPM's requirements for chemical and pigment supplier UPM Product Stewardship Standard The UPM Product Stewardship Standard aims to ensure that all UPM products produced and placed on the market anywhere in the world are safe for their intended use, compliant, and sustainable throughout their life cycle. The standard establishes a framework for product management, emphasizing thorough risk assessment, adherence to good manufacturing practices, and compliance with legislation, including detailed documentation. UPM businesses and functions are responsible for implementing the necessary actions and processes to meet this standard. Various management systems, such as ISO 9001 for quality management and ISO 22000 for food safety management, can be utilized to integrate these practices into operations. This standard and its processes apply to all products within UPM. It focuses on product safety, compliance with relevant legislation, sustainable product design and product life cycle management, as well as clear and accurate compliance and sustainability claims. The standard was developed in 2024, and approved by the UPM Marketing, Sustainability and Communications function in December 2024. Relevant persons working with product management, product development and technical customer service tasks have been trained in relevant UPM businesses in 2025.

Based on the identified material topics, UPM has set the following focus areas and Group-level targets related to the circular economy and resource use: • Forest (with a target for the share of certified fibre) • Waste (with a target for landfilled process waste) • Water (with a target for the use of nutrients in UPM's own effluent treatment plants from recycled sources) • Product stewardship (with a target on new products contributing to the SDGs and a target on eligible ecolabeled sales) • Responsible sourcing (with a target for spend covered by the UPM Supplier and Third-Party Code); Refer to » G1-2 Responsible sourcing Action plans have been developed to achieve the Group-level targets, as well as for other relevant areas for continuous improvement. The key actions, previous year's actions and planned actions are presented below. UPM Clean Run concept Refer to » E2-2 Clean Run concept for a description of UPM's concept for improving environmental performance, including waste reduction and resource efficiency. UPM Sustainable Product Design concept UPM's Sustainable Product Design concept supports and steers product development projects, promotes a sustainable product life cycle approach, and ensures that each new product and service has a proven sustainability value proposition. The concept also supports UPM's aim to develop new products and services that contribute to the UN Sustainable Development Goals (SDGs), as well as the development of a climate positive product portfolio. The approach is divided into six life cycle steps: design; materials; production; distribution; use; and circularity. Several tools help evaluate the sustainability factors of each life cycle step throughout the design process, such as Life Cycle Assessments (LCA), biodegradability and recyclability tests, or a screening tool for mapping environmental and social impacts and SDGs. Each step includes a variety of elements that guide the product development process. UPM's products have different applications, and customers are involved in different parts of the value chain. This means that the relevance of the different life cycle steps and their specific elements may vary from business to business. Actions related to product stewardship Key actions For UPM, product stewardship comprises several areas, such as life cycle thinking, chemical management, product safety, product-related statements or compliance declarations, or the use of environmental labels such as the EU Ecolabel or forest certification labels such as FSC™ (FSC

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025