UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability Statement

Report of the Board of Directors

Financial Statements

Auditor's Report

Sustainability Assurance Reports

Raw materials

Secondary material

Circular product design

Metrics Resource inflows

Product stewardship is one of UPM's sustainability focus areas. It includes three product-related targets that are linked to circularity and recyclability: • Circularity has the potential to support UPM’s target of achieving a climate-positive product portfolio, especially if the use of materials with a high carbon footprint is reduced; • Circularity is an aspect of UPM's Sustainable Product Design concept and contributes positively to SDG 12 "Responsible consumption and production"; • The EU Ecolabel for graphic paper includes criteria for recyclability. Use of renewable resources Wood is a renewable resource and is UPM's main raw material. UPM's target of 100% certified fibre by 2030 underlines the importance of forest certification for wood-based resources, even though chain-of-custody certification for non-certified forest areas already ensures the origin of wood, legal harvesting, and sourcing of wood from non-controversial sources. Forest certification also plays a crucial role in maintaining and enhancing biodiversity. Refer to » E4-3 Actions, Forests and biodiversity Circular material use and minimization of primary raw material UPM is committed to continuous improvement of resource efficiency and to a circular bioeconomy approach. The company uses materials recovered from production processes and develops recycling and utilization options for side streams and residues from production processes, as stated in UPM's Sustainability Policy Statement. UPM has also dedicated targets for zero process waste to landfill and 100% use of nutrients from recycled sources in UPM's effluent treatment plants. Responsible sourcing Responsible sourcing is one of UPM's sustainability focus areas and includes targets and key performance indicators. Resources and circularity are also addressed as relevant environmental issues in UPM's Sustainable Supply Chain Program. Refer to » G1-2 Responsible sourcing Waste management By 2030, zero process waste will be sent to landfills or to incineration without energy recovery. This means all UPM's non-hazardous process waste must be recycled or recovered. Waste management supports achieving this target through proper sorting of waste and research into waste recycling options, for example. UPM's targets can contribute to waste prevention, waste recycling, or energy recovery from waste. The targets are voluntary and additional to legal requirements.

Tonnes (incl. moisture)

2025

2024

Recovered paper

2025

2024

Tonnes (incl. moisture)

470,000

700,000

Wood

24,200,000

23,300,000

% of total raw materials

2 %

2 %

Market pulp

1,300,000

1,300,000

E5-4

Recovered paper

470,000

700,000

Efficient paper recycling depends on local infrastructure for national collection and recovery systems. Recovered graphic paper is sourced from Europe, where the most significant suppliers are waste management companies, printing houses, and local authorities. Recovered paper is used as a raw material in UPM's graphic paper production and accounted for 12% (15%) of fibre materials used in UPM's paper production in 2025.

Purchased paper for converting

350,000

310,000

Wood and fibre-based products are the basis of UPM's operations. Certified chain-of-custody systems and forest certification ensure that wood and other fibre-based materials are sourced from sustainably managed forests. UPM's main sourcing categories are fibres (wood and fibre-based materials), other raw materials (including pigments and chemicals), indirect materials, and services, logistics and energy.

Minerals

1,700,000

1,800,000

Chemicals

940,000

930,000

Plastics, adhesives, resins, films

170,000

160,000

Total

29,200,000

28,600,000

Percentage of biological material

UPM’s external purchasing spend 2025

Reporting principles for metrics

%

2025

2024

14%

11%

Raw materials Wood is usually measured in cubic meters. Refer to » E4-5 Wood deliveries . Conversion to tonnes is calculated using factors based on measurements and/or literature. The average moisture content of wood is estimated to be 50%. Market pulp and recovered paper are purchased as air dry tonnes with a dry solid content of approximately 90% and 94% respectively. The moisture content of other raw materials may vary, but the relevant delivery quantities are available in UPM's sourcing systems. UPM's Group-level reporting focuses on the company's use of fibre and other raw materials. Information about material use is aggregated data from UPM's sourcing units. Percentage of biological material Only wood is considered biological material in the calculation. UPM considers other wood-based materials, such as pulp, to be the result of a technical production process. In accordance with ESRS E5-4, the denominator for the percentage indicator is the total weight of raw materials in their original state, i.e., including moisture. Secondary material Recovered paper from external sources is included in the calculation of secondary material. Internal recovery is not included. In accordance with ESRS E5-4, the denominator for the percentage indicator is the total weight of raw materials in their original state, i.e., including moisture.

Wood share in total raw materials

83 %

81 %

UPM considers only wood a biological material. Its share of total raw materials is calculated based on data in the Raw materials table. Other wood-based raw materials such as pulp, paper, and recovered paper are considered a result of a technical production process. Both wood and wood-based side streams and residues are used where they create the most value.

18%

27%

Wood certification

30%

%

2025

2024

Raw materials Fibres Logistics Indirect material and services Energy

FSC certified

16.4 %

18.3 %

PEFC certified

39.2 %

38.3 %

PEFC and FSC certified

34.2 %

32.0 %

Total certified wood

89.8 %

88.5 %

Wood complying with FSC Controlled Wood or PEFC Due Diligence requirements

Suppliers are an essential part of UPM's value chain. Materials and services are purchased from approximately 17,000 B2B suppliers globally. The sourcing network includes suppliers from startup companies to international corporations. In addition, wood is purchased from about 13,000 private forest owners.

10.2 %

11.5 %

Total biological material

100.0 %

100.0 %

All wood-based raw materials are either FSC™ (FSC N003385) and PEFC (PEFC/02-44-41) certified or minimum FSC Controlled Wood or PEFC Controlled Sources. The certification ensures that all UPM's wood, pulp, paper, and recovered paper suppliers are continuously assessed for their environmental and social responsibility and their involvement with local communities.

Refer to » E1 for energy and » E3 for water

UPM Financial Report 2025

204

UPM Financial Report 2025

205

204

205

UPM Annual Report 2025

UPM Annual Report 2025