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

Impacts, risks and opportunities

Description of UPM's own workforce UPM's own workforce consists of the following groups: • Own employees: people directly employed by UPM • Non-employees, further divided into two sub-groups • Agency hires: persons employed by employment agencies or labor providers working at UPM's sites under the direct supervision of UPM. Agency employees are not directly employed by UPM. • Independent contractors: self-employed individuals who provide services or labor to UPM and are bound by a direct contractual arrangement other than a contract of employment. The number of such independent contractors is currently estimated to be so small that reporting on them is not material for UPM. All people in UPM's own workforce who could be materially affected by UPM are included in the scope of disclosure. None of the identified material risks and opportunities relate to a specific group within own workforce but concern all groups equally.

ESRS 2 SBM-3

UPM is committed to being a responsible and attractive employer now and in the future. UPM wants to strengthen its employees’ sense of belonging and the feeling that they are doing meaningful work. This promotes productivity, engagement, and well-being. UPM's values are the foundation of who we are. Building a culture of Aiming Higher is essential to UPM's success in today’s rapidly changing world. Cultural ambition includes being accountable, performance-driven, human centric, and eager to learn and grow. UPM's aim is to further increase employee motivation and make growth opportunities more visible and accessible. In an increasingly complex business environment, enhancing employees' skills and well-being is important for both business success and sustained employability. UPM's long-term goal is to ensure high performance and continuous professional development.

Own workforce (ESRS S1) UPM is committed to being a responsible and attractive employer, now and in the future. Promoting diversity and inclusion is a prerequisite for UPM's business success and a healthy working environment. UPM's safety work is based on long-term planning, effective communication, and leadership.

Engagement score in the Employee Engagement Survey

Percentage of employees completed individual goal setting or annual discussion to enable continuous professional development Total recordable injury frequency (TRIF) 67 86% 5.0

Overview of material impacts, risks and opportunities

Material topics Impacts, risks and opportunities

Description

Decent work and fair rewarding

Positive impact: Ensuring equal and adequate pay, training, and development

UPM ensures equal and adequate pay through its third-party verified annual review process and correction of identified gaps. UPM is continuously developing its employee experience and leadership culture, evaluating its recruitment, compensation policies, and career development opportunities. Changes in the business environment and market demand may lead to restructuring measures to ensure UPM’s cost-competitiveness. Active measures are taken to mitigate the effects on employees, e.g. by promoting employment and retraining. The success of UPM's businesses depends largely on the ability to build and maintain the necessary new capabilities required for future growth.

Potential negative impact*: Job losses due to closing of operations or restructuring

8 points below the global average benchmark

for UPM's own workforce

Risk: Lack of skilled workforce

Opportunity: Being the employer of choice UPM continuously develops its employee experience and leadership culture, evaluates its recruitment, compensation policies and career development opportunities, and takes measures to attract and retain diversely skilled personnel and individuals with rare and critical specialist knowledge for current and future growth areas.

Diversity and inclusion

Positive impact: Enhancing diversity and inclusion with a positive impact on the workforce

In addition to UPM's targets for female representation in management and equal pay, UPM’s commitment to inclusion and diversity is underlined by active training, dialogue, and cooperation. The latest example is UPM's global and employee-led BeU network. UPM continuously improves health and safety practices across all business areas and sites for example by systematic risk assessments, audits, trainings, development projects and best practice sharing, and ensuring the progress by monitoring both leading and lagging KPIs as well as by employee surveys. Although several measures are taken to prevent injuries and accidents to employees and contractors on UPM's production sites, a risk remains. The importance of health and safety is also discussed and followed up with suppliers, but negative impacts can occur. These negative impacts are related to individual incidents. Failure to maintain a high level of safety management could result in injury, illness or liability to UPM's employees, contractors, or third parties. These risks are managed through established management procedures, health and safety precautions, and loss prevention programs.

Health and safety Positive impact: Increased focus on health and safety measures for people working at all UPM sites

Negative impact*: Health and safety incidents, including serious accidents and fatalities for UPM workforce

Risk: Potential injury to UPM workforce

* UPM's identified material negative impacts are not seen as widespread or systemic but are related to potential individual incidents.

No risks of forced or compulsory labor or child labor has been identified for UPM's own operations. As part of UPM's ongoing human rights due diligence, the company has identified groups who are at higher risk of experiencing potential adverse

human rights impacts. Based on UPM's assessments and dialogue with various stakeholders, UPM has defined migrant workers, women, young workers, and temporary and contractor workers as groups with a higher risk of potential adverse human rights impacts across UPM's value chain.

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025