UPM Annual Report 2025

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Actions in 2025 • UPM continued to follow-up the ISO and CEN standardization of circular economy. • Further mills tested new sources of recycled nutrients and expanded or started the use of recycled nutrients. For example, the UPM Changshu paper mill in China started to use recycled phosphorus and recycled nitrogen was taken into use at UPM Nordland Papier in Germany. • Several mills implemented new sludge utilization concepts. Separate dewatering of biosludge and primary sludge was taken into use at UPM Nordland Papier, enabling the utilization of biosludge in biogas production and primary sludge in board manufacturing. A collaboration between UPM Kaukas and a partner was started to compost a part of the site's effluent treatment sludges. The resulting material is utilized as soil improver in agriculture. Similarly, UPM Rauma started a collaboration with a partner that stabilizes a part of the site’s effluent treatment sludges with lime and uses it in agriculture • In Uruguay, a dust-based liming agent "Microcal" was productized and the utilization in agriculture started. An environmental permit was granted for a pilot construction of a wood yard utilizing ash as construction material, and the construction project was started. A collaboration project studying the utilization possibilities of ash and green liquor dregs in cement production was started with a local university. • Also at UPM pulp mills in Finland, further work was done to find utilization options for green liquor dregs. Planned actions • In 2026, UPM will continue its participation in the Finnish UUMA5 program together with the Pohjolan Voima company to enhance the utilization of secondary raw materials in earth construction. • The pulp mills in Uruguay will continue to research and test waste utilization possibilities which were identified in their 2030 Zero Solid Process Waste to Landfill roadmap. • Development work will continue for the recycled nutrient target and zero solid process waste to landfill target at several sites. Refer to » E3-2 Actions for water-related efficiency Refer to » G1-2 Responsible sourcing for UPM's Sustainable Supply Chain Program, which addresses resource use Resources In general, activities related to product stewardship, circular economy, and waste management are included in UPM's overall operational expenditures, investment, and resource planning. Refer to » E1-1 Investments and funding, Innovation products for significant actions and resources related to products. Refer to » E2-2 Resources for more information on environmental costs and investments.

Waste Regulation (PPWR), which will be implemented gradually starting in August 2026. • Continued Sustainable Product Design concept implementation in various UPM businesses, including life cycle assessment work related to respective projects. Making use of residues, side streams, and recovered materials Key actions UPM's goal is to make efficient use of all material streams and to implement a circular bioeconomy: renew; reduce; reuse; recycle; and recover. UPM's target is to neither send process waste to landfill nor to incinerate it without recovering the energy by 2030. UPM's other circularity target is to use only nutrients from recycled sources in its own effluent treatment plants by 2030. Refer to » E5-3 Targets Best practices, research results, and ideas are shared throughout the company. Internal working groups focus on issues such as using side streams and recycling nutrients. Some of UPM's products are made of recovered materials, residues, or side streams, thus supporting circular economy. Most of UPM's organic production residues such as bark, wood residues, and fibre-containing sludges from deinking and effluent treatment, are used to generate energy for mill sites. Some fibrous residues are used in brick manufacturing, as soil amendment materials, or as a raw material in board manufacturing. Ash from biomass-based energy generation represents a large share of waste and by-products. In 2025, 85% (83%) of the ash was used in various applications such as for soil stabilization, fertilizer, in the cement industry, as a raw material for the production of paper fillers, or internally to replace caustic soda. Lime is a side stream from pulp production that is used as a liming agent in agriculture or for pH adjustment, for example. Green liquor dregs, another side stream from pulp production, are one of UPM's most challenging process wastes to utilize. UPM is working hard to find utilization options for green liquor dregs. UPM BioVerno renewable diesel and naphtha are produced from crude tall oil, a residue from chemical pulp production. For lignin, a side stream from pulp production, examples of existing solutions include WISA BioBond gluing technology, which uses lignin to replace part of the fossil-based phenol used in plywood production, and the UPM Solargo product family, which comprises lignin-based biostimulants that improve crop quality and soil performance. UPM has also developed a range of lignin-based renewable functional filler products that will be produced in UPM’s first-of-its-kind biorefinery in Leuna. UPM is also actively improving the circularity of its product life cycle. UPM Adhesive Materials collects label waste from 350 partners worldwide and recycles it through its RafCycle® service. The service takes self adhesive label waste and gives it a new life as a resource for pulp, paper, and other fibre-based products or PET products. UPM also has a long history of using recovered paper to produce new graphic paper.

Targets

Stewardship) and the supply chain. These targets support UPM's policy objective for the responsible use of resources and the circular bioeconomy (UPM Sustainability Policy Statement). UPM's sustainability targets are developed by taking the views, wishes, and perspectives of external stakeholders from UPM's constant multi-stakeholder dialogue into account.

E5-3

To manage its sustainability activities, UPM has set several targets and key performance indicators for its sustainability focus areas covering its own operations (covered under Forest, Water, Waste, Product

Targets related to circular economy and resource use

Sustainability focus area and key performance indicator

Base year Base year value

2030 target Target follow-up 2025 (2024)

Forest Share of certified fibre

2015

84 %

100 %

90% (88.5%)

Water Nutrients used for effluent treatment from recycled sources * Waste Process waste sent to landfills or to incineration without energy recovery

2017

17 %

100 %

41% (33%)

2015 122,000 tonnes

0 tonnes

101,000 (97,000) tonnes; 82% (83%) of UPM's process waste recovered or recycled

Product stewardship Climate-positive product portfolio

Since 2019

-

Continuous improvement

Decarbonization solutions: 7% (6%) of sales** Development of UPM Circular Renewable Black TM and collaboration for paper-based product packaging solutions

Development of new products and services with contribution to SDGs

Since 2019

-

continuous

Share of applicable products eligible for ecolabeling out of total UPM sales Responsible sourcing UPM total spend covered by UPM Supplier and Third-Party Code

2015

77 %

100 %

89% (89%)

>80% (continuous)

86% (91%)

2015

79 %

* Relevant for pulp and paper production

** Correction of percentage value (8%) for 2024

UPM's sustainability targets for 2030 are followed up and reported at Group level at least annually. The target parameters chosen cover different aspects of resource use and circular economy (see the following paragraphs). The targets are evaluated and set based on their potential positive impact and the minimization of any negative impact. Most of the targets related to resource use and the circular economy are on track. However, the total amount of process waste sent to landfills increased because, for example, some of the earlier recycling options were discontinued. Measures are taken to achieve UPM's zero process waste to landfill target. Refer to » E5-2 Actions, Making use of residues, side streams and recovered materials

UPM's targets related to resource inflows and outflows specifically address the following aspects.

Reporting principles for targets

Share of applicable products eligible for ecolabeling out of total UPM sales The share is calculated based on UPM's overall sales of paper, chemical pulp, plywood, label material, and timber products and the sales which has been eligible for ecolabeling in accordance with FSC, PEFC, EU Ecolabel, or national ecolabels such as the Blauer Engel in Germany. Products with multiple ecolabels are counted only once.

Refer to » G1-2 Responsible sourcing for more information about the sourcing target.

UPM Financial Report 2025

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UPM Financial Report 2025

203

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UPM Annual Report 2025

UPM Annual Report 2025