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

Health and Safety (H&S) metrics for UPM workforce

occurring from January to December; and actual hours worked from December to November.

Remuneration metrics

Incidents, complaints and severe human rights impacts

UPM workforce

2025

2024

S1-16

Contractors and contractor working hours A contractor is a person or organization which provides services to UPM as agreed. Contractor personnel are not directly employed by UPM. Contractors' actual working time consists of all hours contractors have worked in UPM premises or under UPM supervision. Contractor working hours are used to calculate lost-time accident frequency and total recordable injury frequency. If working hours are not collected based on a time attendance system, an estimate is used. UPM has defined and published the method for calculating contractor working hours if the exact number is unavailable. Estimates are based on the number of workers or on contract monetary value. Absenteeism % Absence percentage due to illness and accidents at work. Illness includes Absence hours due to illness, Absences due to accidents during travel to/ from work and Absence hours due to accidents during time off work. Accidents at work include Absences due to accidents at work and Absences due to occupational diseases and illnesses. These figures are added and then divided by Theoretical working time and then multiplied by 100. All hours of absence from work due to accidents at work are included (including the hours of the day when the accident occurred).

6.1

Total injuries per one million hours worked, TRIF * Lost-time accidents per one million hours worked, LTAF

6.4

S1-17

Gender pay gap From 2021, UPM has carried out on a voluntary basis an annual company-wide process to review and close any possibly identified unexplained pay gap between the genders. The review applies to all UPM's operating countries and includes both salaried and shopfloor employees. This commitment is in alignment with the company’s disclosed 2030 social responsibility targets in the fair rewarding focus area. For this annual review, UPM applies a framework of an adjusted pay gap concept, which takes the typical legitimate drivers of pay and pay development into account – for example, the type and level of the job performed, the country and the location of the job, the individual’s performance and work experience, etc. These drivers are included in the review using a statistical model. If any unexplained pay gaps are identified between men and women performing the same type of job with equal value, the company is committed to close them on an annual basis. In 2025, UPM continued monitoring the situation through the established process, and pay adjustments were implemented to close identified statistically significant unexplained gaps related to gender. The company's initiative is exceptional among its peer companies. Further details on the statistical methodology can be found in the UPM GRI content index. The raw pay gap, as defined by the standard S1-16 and its disclosure requirements, is calculated purely by dividing the difference of average gross hourly pay of all male and all female employees by the average gross hourly pay of all male employees. In contrast with the adjusted gender pay gap framework, this raw pay gap framework and calculation does not take into account, for example, the number and distribution of the company's male and female employees in different countries and locations or the different types and levels of jobs performed by the company's male and female employees, or the experience and performance of the employees and the varying labor market conditions, all of which are considered legitimate factors typically driving pay and pay development decisions. Consequently, as the legitimate factors affecting pay in real life are not captured in the calculation methodology, the calculated pay gap value is purely artificial and not a representation of real equal pay practices in the company's countries of operation. The company's voluntary commitment to an annual review of gender pay equity status via the adjusted pay gap framework takes these legitimate factors into account as described above. In 2025, the UPM global raw pay gap, calculated in accordance with disclosure requirements as of December 31, 2025, was 9.7%. Total remuneration ratio The annual total remuneration ratio of the highest paid individual to the median paid employee at UPM is 24.9. The total annual remuneration includes the following elements: salaries, allowances, bonuses and share based payments. The pay ratio is calculated by dividing the remuneration of UPM's highest paid individual with the remuneration of UPM median paid employee.

3.4

4.0

No severe human rights incidents connected to UPM's workforce were reported during the reporting period. The severity of incidents is assessed based on the UN Guiding Principles on Business and Human Rights. 47 (57) cases, which were reported by employees and other stakeholders through UPM’s misconduct channel, were falling under the category of “Respect people and human rights” in 2025. More specifically, these related to e.g., alleged discrimination or harassment, inappropriate behavior, breach of safety rules, and alleged breach of labor laws in connection with recruitment or termination of employment. The number of alleged discrimination or harassment cases was 7 in 2025. Only a minority relate to gender-based discrimination, with a few reported cases each year. UPM's employees have multiple ways to raise concerns: they can discuss them with their manager, discuss them with a representative of UPM's Legal and Compliance, Human Resources or Internal Audit functions, or they can use the UPM Report Misconduct channel (available anonymously). Refer to » G1-1, Reporting and identifying concerns

166

Number of accidents *

164

2

Number of serious accidents

1

Number of fatalities **

0

0

Number of days lost due to work-related injuries *

4,300

3,200

Absenteeism %

4.2

4.2

Number of work-related ill-health cases ***

12

4

*The number of non-employees in UPM's own workforce (agency hires) is so small that a breakdown is not material. **No non-employees fatalities – breakdown therefore not disclosed. ***No work-related illnesses involving non-employees – breakdown therefore not disclosed.

Health and Safety (H&S) metrics for UPM workforce and contractors

UPM workforce including contractors

2025

2024

5.0

Total injuries per one million hours worked, TRIF Lost-time accidents per one million hours worked, LTAF

5.1

Number of occupational diseases (= Work-related ill health)

3.2

3.2

The number of new cases which have been officially diagnosed and reported as occupational diseases during the reporting year. The reporting year is the last year, except for Germany, where cases are reported for the penultimate year.

Number of accidents

225

253

2

Number of serious accidents

3

Number of fatalities

0

0

Serious occupational accidents (= High-consequence work-related injuries)

Reporting principles for metrics

Accidents at work causing: Life-threatening injury requiring intervention of emergency response personnel to provide life sustaining support; Life altering injury/Permanent disability: An injury resulting in permanent or long-term impairment or loss of use of an external organ, body function, or body part.

Lost-time accident frequency Lost-time accidents per million hours worked. The calculation is as follows: ('Lost Time Accidents'+'Serious Accidents'+'Fatal accidents')/ (Actual hours worked)*1,000,000. Lost time accident – an accident at work which resulted in one or more days of absence or disability. Lost-time accident type excludes modified duties, medical treatment, and first aid cases but includes serious and fatal accidents. UPM reports separately for workforce (including UPM employees and supervised workers) and contractors. Disclosure is based on the following annual data: incidents occurring from January to December; and actual hours worked from December to November. Total Recordable Injury Frequency Recordable injuries per million hours worked. The calculation is as follows: ('Lost Time Accidents'+'Serious Accidents'+'Fatal accidents'+'Modified duty'+'Medical treatment')/'Actual hours worked (UPM)'*1,000,000. Total Recordable Injury type excludes first aid cases. UPM reports separately for workforce (including UPM employees and supervised workers) and contractors. Disclosure is based on the following annual data: incidents

UPM Financial Report 2025

220

UPM Financial Report 2025

221

220

221

UPM Annual Report 2025

UPM Annual Report 2025