UPM Annual Report 2025

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collaboration with an external partner, using a proven methodology, process and benchmarks. UPM's partner helps define the baseline and provides living wage estimates for all countries and cities where UPM operates. UPM has also carried out an annual gender pay gap review and corrected unexplained pay gaps since 2021. UPM's commitment to gender pay equity covers all countries where UPM operates and applies to both salaried and shopfloor employees. UPM's gender pay equity review seeks to identify possible gender pay gaps that cannot be explained by such factors as job performance, work experience, job grade, or location, or any other legitimate factors that typically determine pay and its development. In 2023, UPM joined the UN Global Compact Forward Faster Initiative with 138 other companies. The goal of this initiative is to accelerate progress towards the 2030 Sustainable Development Goals. By joining the Gender Equality area of action, UPM commits to advance equal representation, participation, and leadership across all levels of management and equal pay for work of equal value. UPM's commitment in particular encompasses two focus areas: promoting gender equality and ensuring living wages. Actions in 2025 • Annual review conducted successfully for both gender pay equity and living wage review, and identified gaps have been closed • Continuous and proactive training and coaching for managers and business HRs conducted to support them in pay determining situations. In addition, a tool is offered to support business HRs in pay equity in pay determining situations. • Continuous focus on robust people processes and reliable and comprehensive data Planned actions • Continue to develop methodology and process for both gender pay equity and living wage annual reviews, in collaboration with established external partners, to gain further potential and drive progress in fair rewarding focus areas • Continue to discuss these topics with various stakeholders across the organization and continue the training • Preparations for the implementation of the EU Pay Transparency Directive to ensure compliance with new requirements coming into effect in 2026 Safe and healthy working environment Key actions UPM's safety work is based on long-term planning, effective communications, and leadership. Safety is integrated into all UPM's daily operations, and in new and ongoing projects, proactive safety is an integral part of project plans and site practices. UPM's H&S management systems are based on the principle of continuous improvement and include extensive internal and external audits and management reviews. The systems cover 100% of UPM's units and all their employees, as well as all contractors working on site. Annual safety audits are an integral part of UPM's H&S management system. Cross-functional audits provide valuable feedback on selected H&S

Learning and development Key actions UPM encourages its employees to pursue professional growth and supports them in learning and developing their skills further. Ensuring high performance for business success and continuous professional development of employees are UPM's long-term targets and an important focus area for its work in social responsibility. UPM invests in the growth of its employees and expects individuals to be eager to learn and develop. All employees are encouraged to create an individual development plan and keep it up to date. UPM applies the 70-20-10 learning and development framework: 70% of the learning takes place on the job; 20% comes from sharing with and learning from colleagues; and 10% comes from training. Expert communities play an important role in sharing and learning across the company. The learning impact is measured by evaluating the degree to which participants apply what they have learned during training when they are back on the job. UPM continuously introduces new digital learning content and online programs to develop skills in commerce, sourcing, finance, compliance, safety, leadership, and design thinking, for example. New digital solutions to enhance operator experience were created and tested successfully on some production sites and promoted to others. In the longer run, shopfloor employees will be able to access relevant digital learning content in the flow of work more easily. UPM encourages and enables employees to contribute to projects such as gigs and expert communities. These are good ways to contribute, learn new skills and network. UPM has developed a project approach to support the project way of working and enable success in different development projects. Actions in 2025 • Continued to promote digi-enabled operator experience • Created a development concept for shopfloor employees • Implemented microlearning creation tools • Implemented an AI-assisted corporate chatbot for finding information and learning from the company’s content • Created new digital learning program concepts on business acumen development available to all employees • Reviewed the current state and created a vision for the Learning end to-end process • Created an AI learning hub and started AI upskilling across the company Planned actions • Make growth support visible through feedback, development planning, renewed shopfloor discussions, and promotion of job rotation • Provide relevant digital learning for shopfloor employees and programs to build business acumen • Use AI to improve onboarding, enable personal productivity, and enhance learning experiences • Pilot AI-assisted tools and chatbots to create and deliver learning content efficiently • Maintain and expand learning content in the AI learning hub

Diversity and inclusion Key actions

Actions

S1-4

Developing a diverse and inclusive workplace starts with three things: committing to diversity and inclusion; monitoring data and processes regularly; and developing leadership and working culture. UPM's approach to promoting diversity and inclusion is also enshrined in its Code of Conduct and other company policies, its social responsibility targets, inclusive leadership, and transparent recruitment. UPM regularly reviews its diversity status and data. UPM's management teams conduct self-assessments that address diversity and inclusion. Managers and HR have dashboards with diversity data. Processes such as rewarding and recruitment are followed up regularly. UPM also regularly reports progress in several external indices. UPM's internal analysis confirm that men and women have equal opportunities for professional growth at UPM. UPM has set a target for female representation in professional and management roles. Actions in 2025 • Diversity and inclusion discussions continued in businesses and functions • BeU Employee Resource Group for LGBTIQ+ remained active and contributed to the implementation of the BeU Safe Contacts concept • Emerged gender pay gap closed Planned actions • Continue benchmarking – learning from other companies that have successfully implemented LGBTIQ+ initiatives • Embed BeU Safe Contacts concept in UPM and have a network of safe contacts available for employees to discuss workplace inclusion and LGBTIQ+ related topics • Continue implementing female leadership target setting-related action plans • Review of HR-related guidelines from D&I point of view Fair rewarding Key actions In accordance with the UN's Sustainable Development Goals, UPM has set clear focus areas and targets for its work on social responsibility. UPM wants to ensure fair, equitable, and competitive rewarding for all UPM employees globally. UPM is committed to gender pay equity and to paying at least the living wage to all its employees. UPM's commitment to fair rewarding is stated in UPM's Code of Conduct and further specified in its policies and rules on rewarding. UPM's commitment to fair rewarding is included in its 2030 social responsibility targets, where UPM has two specific initiatives: first, ensuring all UPM employees’ pay meets at least the local living wage; second, ensuring gender pay equity for all employees. For both these initiatives, UPM is committed to conducting annual reviews and to close any identified gaps in pay. UPM has been monitoring and paying a living wage to all UPM employees since 2019. UPM's commitment to pay the living wage covers all countries where it operates and applies to both salaried and shopfloor employees. UPM conducts an annual living wage assessment in

UPM's identified material topics have been defined as a result of a double materiality assessment, considering impacts, risks and opportunities related to its own workforce. Based on these material topics, the following focus areas related to UPM's own workforce have been developed: • Responsible leadership • Continuous learning and development • Diversity and inclusion • Fair rewarding • Safe and healthy working environment For each focus area, the key actions, previous year's key actions, and planned key actions are presented below. UPM monitors the effectiveness of its actions to manage material impacts by tracking and reporting on the progress of its sustainability targets for 2030. Refer to » S1-5 Targets related to UPM's workforce. Responsible leadership Key actions UPM continuously develops leadership capabilities and management teams, as well as the working environment. UPM provides leaders with tools for receiving feedback to develop their leadership and teams. They receive relevant and timely employee engagement data about their teams and organization. UPM also provides a leadership development program portfolio that supports the three cornerstones of leadership at UPM: leading oneself; leading people; and leading business. Leadership development focus areas and solutions are continuously reviewed and renewed. UPM focuses on improving the performance and motivation of people through feedback, development planning, agile goal setting, and regular one-to-one discussions.

Actions in 2025 • New programs on business acumen and impactful communication in

UPM’s global leadership development portfolio • AI upskilling and "Let's talk AI" team discussions • Implementation of a new 360 leadership assessment tool

Planned actions • Continuous renewal of the program portfolio to ensure relevant leadership capabilities for any business situation • People manager development solutions to strengthen leadership which enables everyone to grow, perform, and achieve business results • Encouraging experimentation to promote creativity, testing of ideas, and data-driven decisions • AI upskilling continues

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025