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

Planned actions • Implementation of the improved safety processes developed in the company-wide Safety project will continue in 2026. • Safety development projects will continue focusing on the digital tools and systems. • UPM will continue to organize process safety related targeted trainings. The business areas will continue to implement their own process safety action plans. • The development of a global concept for occupational health will continue. Resources In general, workforce-related activities are included in UPM's overall investment and resource planning.

processes and daily activities. UPM's safety standards cover procedures such as risk assessment, permits to work, safe contractor work, safety reporting, etc. All accidents, near-misses, and other incidents are documented and evaluated in UPM's global safety tool. UPM also documents incidents involving contractors' employees. All employees and contractors have access to the tool and are encouraged to report deviations and also positive safety observations. UPM aims to have an accident-free workplace. All accidents are thoroughly investigated in close cooperation with the authorities and contractors. Corrective and preventive actions are initiated, and the key learning points are shared across all operations to prevent similar accidents in the future. The thorough investigation of incidents and effective risk management play an important role in making UPM's operations safer. UPM recognizes exemplary safety performance with company-wide awards. The safety training needs of UPM's employees are assessed based on the employee's role and needed safety-related skills and competence and input from safety committees, suggestions from employees or management, results of audits and incident investigations, changes in legislation, changes in processes, etc. A training plan is then drafted, and relevant trainers are identified. Trainers can be internal experts or external specialists. Safety training can take the form of e-learning, classroom sessions, hands-on training, or a combination of these. Actions in 2025 • The company-wide Safety project aiming to improve safety-related processes and tools from employees’ perspective was completed. The focus areas of the project covered various topics from improving the safety onboarding and training to more user-friendly digital tools and systems and improving the efficiency of the safety audits to boosting the safety culture and leadership. • UPM continued to systematically develop process safety–related competencies, with the number of completed process safety trainings increasing by approximately 70% compared to the previous year. The current state analysis of process safety continued in operations including the definition of the business area specific development plans for the coming years. Process safety development items were executed according to the business area or mill specific plans. Process safety aspects were reviewed as part of the loss prevention surveys conducted by an external partner at the mills. • UPM continued to implement the UPM Health and Well-being concept. The health and well-being pulse survey was conducted in May. In general, scores were the same or slightly better than in 2024 pulse survey.

Targets

S1-5

Targets related to UPM's workforce To manage its sustainability activities, UPM has set several targets and key performance indicators for its workforce-related sustainability focus areas. UPM's sustainability targets are developed internally by UPM by taking the views, wishes, and perspectives of external stakeholders from

UPM's constant multi-stakeholder dialogue into account. The targets are approved by the GET. Refer to » ESRS 2 GOV-1 Oversight and management of impacts, risks and opportunities

Sustainability focus area and key performance indicator

Base year value

Target follow-up 2025 (2024)

Base year

2030 target

Continuous learning and development Goal setting discussions are held, and development plans are created for employees

2021

88% and 70%

100% completion rate

86% (85%) of employees completed individual goal setting or annual discussion, 81% (78%) of employees had a development plan documented Average score of 65 (65). Below global average benchmark by 8 points.

Employee perception of good opportunities to learn and grow, as evaluated in the Employee Engagement Survey Responsible leadership Employee engagement, as evaluated in the Employee Engagement Survey Diversity and inclusion Employees' sense of belonging as evaluated in the Employee Engagement Survey Continuous improvement in female representation in professional and managerial roles. Developing leadership and decision-making capabilities with increased diversity

2021

Below benchmark

Clearly above benchmark

2021

Below benchmark

Clearly above benchmark

Average score of 67 (70). Below global average benchmark by 8 points.

2021

Below benchmark

Among the top 10% of benchmark companies

Average score of 67 (68). Below top 10% benchmark companies by 13 points.

2022

30.7%

40% female representation

35.4% (34.5%)

Diversity and inclusion initiative

Since 2021

-

Continuous Dialogue continued on developing inclusive behaviors. Implemented Safe Contact concept. Gender pay gap closed.

Fair rewarding Employees' pay meeting at least local living wage: implementing an annual review

Since 2021

-

Continuous Company-wide review done considering the threshold of typical family for local living wage. Pay adjustments implemented to close identified pay gaps related to local living wage.

Gender pay equity for all employees: implementing an annual review process to identify and close unexplained pay gaps Safe and healthy working environment Fatalities or serious accidents in UPM operations Total recordable injury frequency (TRIF), including contractors

Since 2021

-

Continuous

Company-wide review done, and pay adjustments implemented to close identified statistically significant unexplained gaps related to gender.

Since 2015

-

0 (continuous)

0 (0) fatal accidents, 2 (3) serious accidents

2017

8.5

<2

TRIF 6.4 (6.1) for UPM workforce and 5.0 (5.1), including contractors

Process safety integrated in safety management

Since 2021

- All sites and businesses

Process safety action plan implementation and competence development continued in all business areas Average score of 73 (72). Below top 10% benchmark companies by 7 points

Employees' sense of work-life balance, as evaluated in the Employee Engagement Survey

2022

Below benchmark

Among the top 10% of benchmark companies

Absenteeism rate, UPM employees

2015

3.7%

<2%

4.2% (4.2%)

UPM regularly measures progress. For example, the results of the annual Employee Engagement Survey (EES) are used as key performance indicators for several of the targets. The high participation rate of 78%

(76%) indicates that UPM's employees are interested in improving their workplace. For other targets, key performance indicators are also followed up at least annually at Group level. H&S indicators such as TRIF are

UPM Financial Report 2025

214

UPM Financial Report 2025

215

214

215

UPM Annual Report 2025

UPM Annual Report 2025