UPM Annual Report 2025

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Governance

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Sustainability Statement

Report of the Board of Directors

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Auditor's Report

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the actions taken by UPM in response to their feedback. Refer to » S2-3 Processes for raising and handling concerns

operations, nurseries, and pulp mills through social monitoring surveys conducted by an external party. All UPM-owned forests are certified or in the process of being certified if the site is new. In Finland, UPM-owned forests are certified by PEFC and FSC™ and in the U.S. (Minnesota) by the Sustainable Forestry Initiative (SFI), which is endorsed by PEFC. UPM's eucalyptus plantations in Uruguay are certified by both FSC and PEFC. Certification systems set internationally recognized standards for sustainable forest management, including clear principles and criteria relevant to communities and indigenous peoples. In the U.S., UPM Blandin's landholdings in the state of Minnesota are situated on the traditional and ancestral lands of Indigenous Peoples. UPM acknowledges that the region holds significant cultural, historical, and personal significance for native peoples. Indigenous Peoples have been the traditional stewards of these lands, and the company recognizes the value of that stewardship. UPM Blandin recognizes the legal, customary, and traditional rights of Indigenous Peoples, and fully respects them. These rights are protected by laws, treaties, and international declarations. UPM Blandin strives to balance forest management objectives with the rights of Indigenous Peoples, the preservation of cultural heritage, and traditional ecological knowledge. Continual improvement in these areas is essential, and UPM Blandin is committed to improving employee knowledge, outreach, and cooperation. Processes for raising and handling concerns UPM monitors and works to remediate negative human rights impacts of which it becomes aware, and which the company's activities have contributed to or caused. Remediation is specified case by case, based on verified impacts. UPM has established channels for reporting misconduct; reports of misconduct are carefully reviewed, personal data is handled appropriately, protection against retaliation is ensured, and all reports are treated in strict confidence. Investigations are conducted by designated people with the necessary competences. If a report is substantiated, appropriate disciplinary and/or legal action is taken, and lessons are learned. Refer to » G1-1 Reporting and identifying concerns All members of affected communities can report concerns anonymously online via the UPM Report Misconduct channel SpeakUp®, Refer to » G1-1 Reporting and identifying concerns In addition, local stakeholders can report their concerns directly to UPM representatives at the mills and other sites and through locally provided channels such as email and telephone. Typical concerns relate to odors, traffic, and noise, and all grievances are followed up as part of UPM's management systems. Feedback and concerns are handled in accordance with the PEFC and/or FSC chain-of-custody requirements, forest certification standards, ISO 14001 environmental management systems, and other standards as relevant. Stakeholders are informed of S3-3

Emphasis on local communities and impacts Key actions UPM aims to be a good neighbor and trusted partner to all people, economies, and environments affected, both directly and indirectly. For UPM's businesses and forestry operations, this means active engagement and dialogue with local communities. This includes assessment of social and human rights impacts, as well as collaboration forums, cooperation with local schools and education networks, and dialogue with local forest owners and neighbors of harvesting sites, and other individuals impacted by forest management. UPM mills in Europe, the U.S., and Uruguay have the potential to create significant societal impact through employment and tax generation in the locations where they operate. UPM's EMAS (EU Eco-Management and Audit Scheme) statements publicly disclose societal impacts in addition to environmental performance, providing detailed information about the local impacts of UPM's pulp and paper mills. For the supply chain, UPM's Sustainable Supply Chain Program and Forest Action Program cover aspects such as local engagement or social contribution. Actions in 2025 • The findings of the Uruguay Human Rights Impact Assessment were addressed by reviewing current Group-wide practices for community engagement. In addition, UPM continued efforts to increase internal understanding on business and human rights. UPM also participated in the UN Global Compact’s Business and Human Rights Accelerator program and conducted internal human rights workshops covering specific high-risk contexts. • A new company-wide standard for community engagement was established. The standard defines guidelines for community engagement, including local dialogue, issues management, and contribution to local community development. The standard applies to UPM production sites and forest units that are identified, based on social or environmental impacts, as high-impact sites according to the criteria defined in the standard. These sites shall develop and implement stakeholder engagement plans that are appropriate for their operations. Other sites are encouraged to develop such processes where relevant. • Collaboration with local Indigenous communities in the U.S. continued to improve understanding of their forest management practices and perspectives, and to balance UPM Blandin’s forest management objectives with Indigenous People’s needs. This engagement primarily took place through multi-stakeholder groups with Indigenous representation, focusing on natural resources and forestry. • Targets set under the Forest Action Program were successfully implemented across UPM’s wood production areas in Finland, Uruguay, and the U.S. Positive impact on local communities was observed through key performance indicators. Planned actions • Implementing the new standard and related actions for community engagement, including training and capacity building, to strengthen UPM's relationships with its local communities, gain insight into their needs, and track the progress of its engagement activities.

Processes Processes for engaging with affected communities about impacts

The UPM Report Misconduct channel is available on UPM's webpage and promoted in the value chain via UPM's Supplier and Third-Party Code and in contractors' safety induction, for example. UPM evaluates the awareness and trust of affected communities in connection with the ISO management systems and processes through stakeholder surveys and feedback mechanisms. For example, regular social monitoring surveys at UPM's forestry operations and nurseries in Uruguay are conducted by an external service provider by interviewing affected community members and contractor employees. UPM business areas are responsible for assessing the awareness and trust of their local communities on their mill sites and in forestry operations, respectively. They evaluate the awareness and trust of their local communities through forest certification systems, regular feedback gatherings, and community meetings, and mill/unit open days ensuring that local communities are informed about how to raise their concerns or needs and trust that they will be addressed effectively. UPM is committed to fostering open communication and ensuring the protection of individuals who raise concerns about its operations. To support this, local community members can report concerns anonymously online via the UPM Report Misconduct channel. By providing this secure and anonymous channel, UPM aims to encourage transparency and trust, ensuring that all grievances are addressed promptly and effectively. The effectiveness of the company's grievance channels is assessed in connection with UPM's compliance program. Actions UPM's identified material topics have been defined as a result of a double materiality assessment including UPM's Corporate Human Rights Saliency Assessment, which considers impacts, risks, and opportunities related to affected communities. The following UPM focus areas are relevant for communities: • Local engagement (with targets on quality of community relationships and long-term initiatives with positive impact communities) • Sustainable forestry (with a target for certified fibre share) • Responsible sourcing (with a target on spend covered by UPM Supplier and Third-Party Code), Refer to » G1-2 Sustainable Supply Chain Program Action plans have been established to achieve the Group-level targets, as well as other relevant areas for continuous improvement. The key actions, previous year's key actions, planned key actions, and overarching concepts 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 » S3-5 Targets . Furthermore, UPM reviews the effectiveness of its risk management procedures quarterly through its Compliance system. Refer to » G1-3 UPM compliance system S3-4

S3-2

UPM engages with a wide range of stakeholders, including customers, investors, employees, suppliers, authorities, NGOs, and local communities. Each group has different needs and expectations, which UPM takes into account depending on the business focus, region, and individual context. The Executive Vice President (EVP) of UPM's Marketing, Sustainability and Communications function has operational responsibility for local engagement. The function coordinates stakeholder relations at Group level, while businesses are responsible for continuous dialogue with local communities. For example, the UPM Kaukas and UPM Kymi mills in Finland have their own local dialogue forums to engage directly with local stakeholders. In Uruguay, there is a specific team responsible for local community engagement. Engagement occurs directly with local people, and affected communities are consulted. Engagement takes the form of visiting communities, keeping them informed on potential impacts of UPM's operations, managing concerns and enquiries, and establishing projects with key stakeholders. In general, stakeholder mapping, active dialogue, and systematic collection of feedback play an essential role in UPM's stakeholder relations work, and the company applies several measures and safeguards to identify and mitigate its environmental and social impacts on surrounding communities, including: • Environmental and social impact assessments • Continuous human rights due diligence in UPM's own operations and supply chain • Third-party certified management systems such as ISO 14001 (Environmental management) and 45001 (Occupational Health and Safety management) for production units • Sustainable forest management certification (FSC and/or PEFC) of UPM-owned forestry operations and suppliers • Restructuring processes planned in cooperation with employees, their organizations, the local authorities and other relevant stakeholders. UPM's processes vary due to different operational contexts and stakeholder expectations. UPM continued to review its processes and policies, and reporting practices in 2025 and introduced a new company standard for community engagement. Refer to » S3-4 Emphasis on local communities and impacts, Actions in 2025 UPM carefully analyzes stakeholder feedback to understand its stakeholders’ expectations and to take them into consideration in its development work and decision-making. UPM received approximately 460 (350) inquiries or concerns from the general public in 2025. UPM’s engagement with local communities is historically based on decades of close cooperation. Many communities have grown around UPM's operations over the years, especially in Finland, Germany, and Uruguay. In Uruguay, UPM gathers public opinion on its forestry

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025