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 • Implement the new standard and associate process developments and actions. This includes internal training and capacity building for local community engagement and the company rules concerning donations, support to local initiatives, and employee volunteering. • Review of existing targets and impact measurement metrics for the Share and Care Program • Continue supporting and engaging with the communities where UPM operates, in alignment with the UPM Share and Care Program. Incidents and remediation In 2025, no severe human rights incidents caused or contributed to by UPM's activities were reported in connection with affected communities. Refer to » S3-1 Human rights in the affected communities UPM monitors and works to remedy adverse human rights impacts of which it is aware, and which its activities have caused or contributed to. Remediation is specified case by case, based on verified impacts. The UPM compliance system covers remediation and ensures the adequacy of the process. Resources In general, activities related to affected communities are included in UPM's investment and resource planning.

• The social monitoring survey on plantation forestry in Uruguay, conducted every three years, will take place. Additionally, a survey of the UPM Foundation's activities will be conducted to evaluate its impact on education in interior regions of Uruguay, and to explore public awareness and perceptions of the Foundation. • UPM Blandin will assess potential impact on Indigenous Peoples across its operational region and explore ways to strengthen relationship building, coordination, and communication. • The key performance indicators under the Forest Action program will be further refined, and the positive impact on local communities will continue to be monitored. UPM Share and Care Program Key actions UPM's Share and Care Program focuses on delivering positive impacts for communities through various initiatives. The program demonstrates UPM's dedication to sustainability and local community involvement through local support initiatives, donations, and employee voluntary work. UPM is also committed to supporting humanitarian organizations in various crisis situations, focusing on children and families, who are often the most vulnerable. Actions in 2025 • A new standard for community engagement was established, including the UPM Share and Care Program. This standard includes rules for company charitable donations, support for local initiatives, and employee volunteering. • The focus areas of the UPM Share and Care Program were reviewed and updated. Support focuses on youth, education, and science-based climate and biodiversity actions, with approximately 44% of donations directed to youth-related initiatives, 30% to education, and 26% to climate and biodiversity, primarily in UPM’s main operating countries Finland, Germany, Uruguay, China, Poland, and the U.S. • Donations totaling approximately €1,100,000 (€920,000) were made to 31 charities and other non-profit organizations, including the University of Helsinki, UNICEF Finland, the Children and Youth Foundation, Stiftung Lesen, and Redoblando Esfuerzos Asociación Civil. These contributions supported initiatives in UPM's main operating countries, as well as global humanitarian aid efforts. • Support for local initiatives through the Share and Care Program reached around €610,000.00 (€800,000). The support focused on local children and youth events, education, cultural and sports activities, and environmental and well-being initiatives. • Employee volunteering involved approximately 300 UPM employees across the countries where the company operates. Activities included environmental education for children, environmental clean-ups, and caring for local community members in need. • The UPM Foundation in Uruguay continued to support initiatives promoting education and entrepreneurship in rural areas.

Targets

S3-5

Targets related to local communities To manage its sustainability activities, UPM has set several targets and key performance indicators for its sustainability focus areas covering the supply chain (forestry, responsible sourcing) and UPM's own operations (community involvement). 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. Local communities are engaged via local practices. The targets are approved by the GET . Refer to » ESRS 2 GOV-1 Oversight and management of impacts, risks and opportunities

Base year value 2030 target

Target follow-up 2025 (2024)

Sustainability focus area and key performance indicator

Base year

Community involvement Assessment of quality of community relationships and define actions at relevant sites

A new company-wide standard for community engagement established introducing guidelines for unit specific assessment of community relationships. Implementation and communications will continue in 2026. Supported local initiatives focusing on youth, education, and climate and biodiversity primarily in UPM's main operating countries. Support for global humanitarian and child welfare organizations continued, especially for children and families impacted by conflicts.

Since 2021

- Continuous

Long-term initiative(s) that impact their mill communities defined in line with the Share and Care Program

Since 2021

-

All businesses (continuous)

Forestry Share of certified fibre *

90% (88.5%)

2015

84%

100 %

Responsible sourcing UPM total spend covered by UPM Supplier and Third-Party Code

>80% (continuous)

86% (91%)

2015

79%

*Forest management certification

UPM's process of setting its sustainability targets is based on an annually updated double materiality assessment, which includes the interests and concerns of various stakeholders. Refer to » ESRS 2 IRO-1 Materiality assessment process

UPM's sustainability targets are followed up at Group level at least annually.

UPM Financial Report 2025

234

UPM Financial Report 2025

235

234

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UPM Annual Report 2025

UPM Annual Report 2025