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

Other sustainability standards and frameworks IFRS S1 & S2

IFRS sustainability disclosure standard requirement

IFRS S1 & S2 requirements

ESRS disclosure requirements

Additional notes

Topic

Financial position, financial performance and cash flows

The effects of climate-related risks and opportunities on UPM's financial performance Information about effects on UPM's financial performance for the current and future reporting periods

IFRS S2.15

ESRS 2 SBM-3

The ISSB (International Sustainability Standards Board) was established in 2021 by the IFRS Foundation during the UN Climate Change Conference (COP26). The IFRS Foundation is a not-for-profit, public interest organization established to develop high-quality, understandable, enforceable, and globally accepted accounting and sustainability disclosure standards. The ISSB’s primary goal is to create a global baseline of sustainability disclosures that meet the needs of capital markets. In 2023, the ISSB published its first two sustainability disclosure standards: IFRS S1 (General Requirements for Disclosure of Sustainability related Financial Information) and S2 (Climate-related Disclosures). The ISSB and the European Commission services, together with EFRAG, have worked together during the development of the European

Sustainability Reporting Standards (ESRS) and the IFRS Sustainability Disclosure Standards (ISSB Standards) to achieve a high degree of alignment of the respective standards, with a specific focus on climate - related reporting. A joint interoperability guidance was published in 2024, and builds the basis for UPM's alignment index of IFRS S1 and S2 with UPM's ESRS disclosures. UPM has considered the disclosures of IFRS S1 and IFRS S2 to enhance interoperability and transparency. While the disclosures are aligned with many of the IFRS S1 and S2 requirements, UPM does not claim full compliance with these standards. In particular, quantitative disclosure of financial impacts, as required by IFRS S1 and S2, is not currently included. See below for UPM's ISSB-ESRS Alignment Index.

IFRS S2.16 , IFRS S2.17

ESRS 2 SBM-3

See note below table

Climate resilience

Results and implications of the climate resiliency assessment

IFRS S2.22 (a)

ESRS 2 SBM-3; ESRS E1-1

Information about how and when the climate-related scenario analysis was carried out including description of inputs and assumptions utilized in the assessment

IFRS S2.22 (b), IFRS S1.23; IFRS S1.B42 (c), IFRS S2.23

ESRS E1-1, ESRS 2 SBM-2; ESRS 2 IRO-1

IFRS S2 - Risk management Management of climate-related risks

Processes and related policies the entity uses to identify, assess, prioritize and monitor climate-related risks and key assumptions

IFRS S2.25(a)

ESRS 2 SBM-3; ESRS 2 IRO-1; ESRS E1-1; E1-2; E1-7; E1-9 ESRS 2 GOV-1; ESRS 2 IRO-1; ESRS 2 SMB-3; ESRS E1-2, E1-9

Management of climate related opportunities

Processes the entity uses to identify, assess, prioritize and monitor climate-related opportunities and key assumptions

IFRS S2.25 (b)

IFRS sustainability disclosure standard requirement

Overall risk management Description of integration of climate-related risk and opportunity processes with overall risk management process

IFRS S2.25 (c)

ESRS 2 IRO-1

IFRS S1 & S2 requirements

ESRS disclosure requirements

Additional notes

Topic

IFRS S2 - Metrics Climate and GHG emission-related metrics

General requirements

Materiality

IFRS S1.17-19

ESRS 2 SBM-2, SBM-3

UPM's Scope 1, 2 and 3 related GHG emissions and description of the measurement approach

IFRS S2.29(a), IFRS S2.B30; IFRS S2.B31; IFRS S2.B56 (a), (b), IFRS S2.B34

ESRS E1-1; E1-4; E1-6

Location of disclosures

IFRS S1.60-63

Sustainability report within Management Report

Governance processes, controls and procedures an entity uses to monitor, manage and oversee sustainability-related risks and opportunities

IFRS S1.27(a)-(b)

ESRS 2 GOV-1

Climate-related transition risks — the amount and percentage of assets or business activities vulnerable to climate-related transition risks Climate-related physical risks — the amount and percentage of assets or business activities vulnerable to climate-related physical risks; Climate-related opportunities—the amount and percentage of assets or business activities aligned with climate-related opportunities Capital deployment—the amount of capital expenditure, financing or investment deployed towards climate-related risks and opportunities

IFRS S2.29 (b)

ESRS 2 SBM-3; ESRS E1-9 See note below table

Strategy for managing sustainability-related risks and opportunities

IFRS S1.29(a)-(e)

ESRS 2 SBM-1, SBM-2, SBM-3

IFRS S2.29 (c)

ESRS 2 SBM-3; ESRS E1-9 See note below table

Material information about the sustainability-related risks and opportunities including Metrics and Targets

IFRS S1.30(a)-(c); IFRS S1.32(a)-(b); IFRS S1 45-53

Sustainability Statement as such ESRS IRO-1 Process in general, Climate-related risks

IFRS S2.29 (d)

ESRS 2 SBM-3; ESRS E1-9 See note below table

Financial position, financial performance and cash flows

IFRS S1.34-40

IFRS S2.29 (e)

ESRS 2 SBM-3; ESRS E1-1

See note below table

Risk Management

IFRS S1.44(a)-(c)

ESRS IRO-1

IFRS S2 - Governance Governance and management roles Governance processes, controls and procedures IFRS S2 - Strategy Climate-related risks and opportunities Business model and value chain

Internal carbon pricing

IFRS S2.29 (f)

ESRS E1-8

Description of management bodies and individuals foreseeing climate related risks and opportunities Management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate related risks and opportunities

IFRS S2.6 (a)

ESRS 2 GOV-1, GOV-2, GOV-3 ESRS 2 GOV-1 Management's role in sustainability

Climate related considerations in executive remunerations

IFRS S2.29 (g)

ESRS 2 GOV-3

Information relevant to the cross-industry metric

IFRS S2.31; IFRS S2.B65 (e); IFRS S1.21 (b), IFRS S1.50 (c)

ESRS 2 SBM-3; ESRS E1-9 See note below table

IFRS S2.6 (b)

IFRS S2 - Targets Climate-related targets Description of quantitative and qualitative climate-related targets UPM has set to monitor progress towards achieving its strategic goals, law or regulation

IFRS S2.33, IFRS S2.B67

ESRS E1-4

Identified material climate-related physical and transition risks and opportunities affecting UPM Current and anticipated effects of climate-related risks and opportunities

IFRS S2.10

ESRS 2 SBM-3, E1 SBM-3

IFRS S2.13

ESRS 2 SBM-3, Board of Director's report Risk section ESRS 2 SBM-3; ESRS 2 IRO-1; ESRS E1-1; E1-2; E1-3

Information about UPM's approach to setting and reviewing each target, and how UPM monitors progress against each target, Information about UPM performance against climate-related targets

IFRS S2.34

ESRS E1-1; E1-4

IFRS S2.35

ESRS E1-1; E1-4

Strategy and decision-making

Information about how UPM has responded to, and plans to respond to, climate-related risks and opportunities in its strategy and decision-making

IFRS S2.14 (a)

Information about scope of climate-related targets

IFRS S2.36 (a), (b), (d)

ESRS E1-1; E1-4

UPM's resourcing, and plans to resource, the activities disclosed IFRS S2.14 (b)

ESRS E1-3

Information about use of carbon credits

IFRS S2.36 (e)

ESRS E1-7

Progress of plans disclosed in previous reporting period

IFRS S2.14 (c)

ESRS E1-1; E1-3

*Additional note: Information about financial effects omitted for fiscal year 2025 according to ESRS prolonged transitional provisions for disclosure requirements including phase-in options

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025