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

Collective bargaining coverage and social dialogue

Adequate wages

Training and skills development

S1-10

S1-13

S1-8

All UPM own employees are paid at least an adequate wage in line with applicable benchmarks in the disclosure requirements. UPM is using the living wage concept to review this annually. The living wage is an equivalent concept to adequate wages, which provides a more specific cost of local living as a benchmark. UPM's living wage review is conducted annually in cooperation with an established external partner using a proven methodology, process and benchmark, including local living wage threshold values of typical family for all UPM's operating countries and cities. If any pay gaps are identified, adjustments to pay are made annually. UPM's living wage review is global by default, applies to both salaried and shopfloor employees in UPM operating countries, and includes those workforce segments where salaries can be reasonably and fairly adjusted. If the global assessment shows unexpected wage gaps, they are corrected. In the review, an employee’s total annual salary is assessed against the local living wage threshold. Total annual salary includes pay elements which are qualified as regular and guaranteed pay, e.g. base salary, regular shift pay, and fixed cash allowances. All unexpected living wage gaps are vetted by appropriate human resource personnel. Local information is utilized to validate the proposed adjustments to make sure that all contextual factors are taken into account. These control mechanisms ensure that living wage adjustments are also locally justified and enable UPM to correct living wage gaps. Social protection For 2025, UPM’s disclosure covers its ten largest operating countries: Finland, Germany, Uruguay, China, Poland, the U.S, the UK, Estonia, France, and Malaysia. These countries account for approximately 95% of UPM’s employees. Employees in these countries are covered against sickness, unemployment, injury and disability, parental leave, and retirement. In the U.S., the parental leave coverage includes only maternity leave. In the UK, the injury and disability coverage applies after five years of service. Persons with disabilities S1-11

In 2025, 81% (78%) of employees had documented development plans, and 86% (85%) had completed individual goal setting or annual discussion.

The percentage of total employees covered by collective bargaining agreements was 48% (49%) in 2025.

Participation in regular performance and career development reviews

Collective bargaining coverage

Social dialogue

Employees – EEA* (for countries with >50 empl. representing >10% total empl.**)

Employees – non-EEA* (estimate for regions with >50 empl. representing >10% total empl.)

Workplace representation (EEA* only) (for countries with >50 empl. representing >10% total empl.)

Individual goal setting or annual discussion completed

Coverage rate

Development plan documented

0–19%

—

Asia

—

Female

74%

82%

20–39% —

—

—

Male

83%

87%

40–59% Finland

Americas

—

Not disclosed

—

—

60–79% Germany

—

—

Total

81%

86%

80–100% —

—

Finland, Germany

Average number of training hours per employee

*European Economic Area **For UPM operating countries, only Finland and Germany fulfil these criteria

2025

2024

Since 2010, UPM has had its own European Forum agreement, which is an agreement provided for the European Works Council (EWC) Directive and covers UPM employees in EEA. Diversity metrics

Female

8

8

Male

9

9

Not disclosed

—

—

Total

9

9

S1-9

Health and safety

Employees by age group

Gender distribution of top management

S1-14

Top management* Number

Number of employees (headcount) 2025

Number of employees (headcount) 2024

Gender

Percentage

Age group

Percentage of employees covered by H&S management systems

Female

30

36%

Under 30

1,875

2,071

2025

2024

Male

54

64%

30–50

7,844

8,188

UPM's H&S management system

100%

100%

Over 50

5,397

5,568

* Two levels below the President and CEO, excluding assistants

Third-party certified H&S management system

74%

74%

Not reported

11

0

Total

15,127

15,827

All UPM's employees are covered by UPM's Health and Safety (H&S) management system. The majority of UPM's production units have the ISO 45001 Occupational Health and Safety management system certification. In 2025, certified systems were in place in 43 units with a total of 11,200 employees, which covers 74% of all UPM employees. The number of non-employees in UPM's own workforce (agency hires) is so small that it would not affect the overall percentage, so the breakdown is not disclosed.

S1-12

Due to legal restrictions, UPM cannot require its employees to report their disabilities. This information can only be collected on a voluntary basis, and UPM does not currently collect such information.

UPM Financial Report 2025

218

UPM Financial Report 2025

219

218

219

UPM Annual Report 2025

UPM Annual Report 2025