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

Repairability Repairability is not a relevant requirement for UPM's product range.

By-products and waste

Resource outflows

Tonnes (dry weight), except hazardous waste

Non-hazardous process waste

Other non hazardous waste Hazardous waste

E5-5

Recyclable content The majority of UPM's products are recyclable, depending on how they are further processed. Paper: UPM's paper grades that are mainly used for printing or packaging are fully recyclable if the further processing does not affect recyclability. Paper recycling systems are well established in most countries. Efficient paper recycling depends on the local infrastructure for national collection and recovery systems. PE laminated kraft liner is mainly used for packaging. It can be recycled when appropriate collection and sorting are organized. Pulp: Pulp is 100% recyclable and biodegradable. However, pulp is at the beginning of the processing chain and can be processed into different paper grades (including hygiene papers) or other pulp-based products. A reasonable estimate of the recyclability of the final product is therefore impossible. Pulp bales are packed with steel wires and sometimes wrapped in pulp sheets, both of which are recyclable. Converting materials: The label release liner, the thin layer of paper or plastic that protects the adhesive side of the label, is often discarded after use. This is why UPM Adhesive Materials has developed the RafCycle™ circular solution, a recycling service that enables customers to turn their label liner waste into new raw materials. The actual label used on products can theoretically also be recycled, but this depends on the packaging design. A reasonable estimate of the recyclability of the final product is therefore impossible. Usually, label stock sheets and reels are placed on pallets and wrapped with monomaterial plastic film. Or, reels are packed with PE-laminated kraft liner. Plywood and veneer: Plywood is a 100% recyclable material when repurposed as raw material for secondary products or reused as such, e.g. in construction, after its initial use. Plywood can also be used as a fuel source in energy production after its first life cycle. Sawn timber: Sawn timber is 100% recyclable. However, it is at the beginning of the value chain and can be processed into multiple end-use products. Therefore, it is not possible to estimate the potential for reuse and recycling of end products. Typically, sawn timber is used as a fuel in energy production at the end of its life cycle, replacing fossil fuel sources. For packaging of plywood, veneer and sawn timber, corrugated board, monomaterial plastic, and wood are used, and all of these materials are recyclable.

By-products

Total

Total

2025

2025

2025

2025

2025

2024

Products

Recycling

65,000

258,400

7,800

1,900

333,100

352,000

Composting

80

7,700

0

0

7,800

9,100

Unit

2025

2024

Energy recovery

5,700

209,100

1,200

500

216,400

235,000

Paper

t

4,300,000 4,600,000

Temporary storage

1,400

15,800

9,200

0

26,500

25,000

Chemical pulp

t

5,200,000 5,000,000

Landfilling

0

96,800

2,100

0

98,900

95,000

Converting materials

t

500,000

460,000

Incineration without energy recovery

0

4,600

0

2,700

7,400

5,800

Plywood and veneer

m3

470,000

480,000

Other disposal

0

0

0

1,900

1,900

400

Sawn timber

m3 1,100,000 1,200,000

Total

72,000

592,000

20,000

7,000

692,000

723,000

Heat

GWh

800

900

Total amount of non-recycled waste *

135,000

127,000

Electricity

GWh

13,200

13,400

Percentage of non-recycled waste

19 %

18 %

Designed according to circular principles Some of UPM's products are made from side streams and residues or from materials recovered after product use, thus supporting a circular bioeconomy. For use of side streams and production residues, refer to » E5-2 Making use of residues, side streams and recovered materials For use of recovered paper in paper production, refer to » E5-4 Secondary material Durability The majority of UPM's products are business-to-business mass products such as pulp, paper, labels, timber, plywood, biofuels, and naphtha. For such products, durability is usually not the relevant requirement, but recyclability or biodegradability. However, durability is relevant in the case of plywood used for construction or in vehicles or timber when used for log houses or for building in general, for example. The lifespan of UPM plywood can be as long as 100 years. The durability and performance of timber and plywood in construction applications is proven by CE marking. Durability is also required of paper used for archiving or other long-term purposes or labels for specific end uses.

* Includes waste sent to landfilling and incineration without energy recovery as well as waste and by-products sent to a temporary storage

Main waste and by-product streams

Waste and by-products UPM reports the sum of non - hazardous process waste and by - products divided into recycling, composting, energy recovery, landfilling, incineration without energy recovery, and temporary storage. The sum of hazardous waste is divided into recycling, energy recovery, incineration without energy recovery, and other disposal. The disposal method is determined by both direct information from the sites and by information provided by waste contractors. Depending on local circumstances, a waste fraction, e.g. ash, can be a by-product or waste. UPM has decided not to exclude these by-products from its waste reporting but to report on both. Waste and by-product data are reported in bone dry tonnes, except for hazardous waste. The data are based on weighing results or invoicing data. At the site level, data is collected continuously and reported to the authorities as required by law. Consolidation at Group level is done annually in UPM's common database. Internal use of side streams and residues for energy generation is reported as fuels. Refer to » E1-5 Energy consumption and mix. Waste data is reported to the relevant local authorities in accordance with the site permits. For UPM's pulp and paper mills in Europe, China, and Uruguay, both waste and by-product data is verified and reported in accordance with the EU’s Eco-Management and Audit Scheme (EMAS) by EMAS-accredited auditors.

%

2025

2024

Fibrous residues

47 %

50 %

Ash

28 %

26 %

Green liquor dregs

8 %

8 %

Ash is the residue from UPM's own and co-owned energy generation processes. Fibrous residues are bark, other wood waste, or sludges from recovered paper processing and effluent treatment. Green liquor dregs are residues from chemical pulp production. Refer to » E5-2 Making use of residues, side streams, and recovered materials In addition to waste and by-product streams, production residues are used internally as fuels: mainly black liquor from pulp production but also bark, other wood waste, or sludges from recovered paper processing and effluent treatment. This quantity is reported as fuel.

Reporting principles for metrics

Products The quantities of paper, pulp, and converting materials include packaging and moisture. Plywood, veneer, and sawn timber are sold and reported in cubic meters, heat and electricity in GWh. Total paper and chemical pulp production and total electricity sales are reported including internal sales of paper, chemical pulp, and electricity.

UPM Financial Report 2025

206

UPM Financial Report 2025

207

206

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UPM Annual Report 2025

UPM Annual Report 2025

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