UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability

UPM in brief

Our strategy

Our businesses

Value from sustainability Our strategy is based on the versatile use of renewable wood biomass and is driven by a commitment to sustainability.

Our 2030 sustainability targets To steer our sustainability actions and imple ment our strategy, we have established sev eral sustainability focus areas with targets and key performance indicators for 2030. These areas are reviewed annually based on the strategy and results of the double ma teriality assessment (DMA), which identifies how the company’s activities affect people and the environment, as well as their impact on the company’s financial performance. The DMA also identifies sustainability-related functions, production sites, and forest units set their own targets in line with Group-level targets where appropriate, and develop and implement actions to achieve them. Our sustainability targets positively contribute to achieving the UN Sustainable Development Goals. We have selected the six goals and 12 targets that are most relevant to us based on where we can have the greatest impact, either by minimizing our negative impacts or increasing our positive impacts on people, societies, and the environment. Others are also relevant, but to a lesser extent. risks and opportunities for the company. The Group Executive Team approves the focus areas, and the Board of Directors’ Au dit Committee reviews them. All businesses,

Climate change mitigation We focus strongly on contributing to climate change mitigation. We have SBTi-approved targets for reducing fossil CO 2 emissions from our combustion processes (Scope 1), purchased electricity and heat (Scope 2), and sourced materials and logistics (Scope 3). Our Scope 1 target is supported by targets to increase energy efficiency, use biomass based fuels, and phase out coal and peat use. We have also set targets to promote climate positive land use and a climate-positive product portfolio.

Goal 6: Clean water and sanitation (Target: 6.3)

Goal 8: Decent work and economic growth (Targets: 8.2, 8.5 and 8.8)

Goal 13: Climate action (Target: 13.1)

Goal 12 : Responsible consumption and production (Targets: 12.2, 12.4 and 12.5)

Goal 7: Affordable and clean energy (Targets: 7.2 and 7.3)

Goal 15: Life on land (Targets: 15.2 and 15.5)

Our commitments We respect international agreements, including the UN Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises. We are committed to creating value by using sustainable and renewable resources, reducing our environmental footprint, and enhancing our positive societal impact. At UPM, we address some of the world’s biggest challenges, including resource scarcity, climate change, biodiversity loss, and increasing inequality. Setting ambitious long- and short-term targets, taking tangible actions and ensuring transparent reporting are key to managing sustainability.

Our approach to climate change mitigation is reflected in our strategy, business-specific road maps, investment planning, daily operations, financing, and management remuneration. The most impactful action is minimizing the use of fossil fuels and raw materials. Enhancing our social responsibility and human rights work Addressing human rights is the basis of our oper ations. Continuous dialogue with our stakehold ers is an important part of this work. Building and maintaining good relations with and supporting the vitality of local communities close to our operations are essential to our success. Our busi ness relies on thriving communities. Creating value for customers We create value for our customers by using sustainable and renewable raw materials. Most of our products help mitigate climate change by replacing fossil-based products and materials with renewable alternatives. Transparent governance The UPM Code of Conduct and the UPM Sustainability Policy Statement, along with our values, form a solid foundation for our

Our 2030 sustainability targets and progress in 2025 on the following pages Committed to compliance on page 76 Sustainability Statement on pages 133–249 Our transition plan on page 156 The Group Executive Team is responsible for managing sustainability, setting the course of action and guiding development. The Board of Directors oversees UPM’s key sustainabil ity focus areas and targets. Businesses and functions implement and carry out the everyday tangible actions. decision-making, management, and operations. The Policy Statement defines our approach to the governance of sustainability-related topics, and how our environmental and societal perfor mance is assessed, managed, and continuous ly improved. The UPM Supplier and Third-Party Code defines the minimum level of performance required of UPM suppliers and third-party inter mediaries, including agents, consultants, advis ers, joint venture partners, and local partners or distributors acting on our behalf. Management

Economic

Key performance indicator

Contribution to the SDGs

Focus area

2030 target

2025 result

Profit Creating value to shareholders

Comparable EBIT

Comparable EBIT growth through focused top-line growth and margin expansion (continuous)

25% decrease to €921 million (1,224 million)

6.5% (8.3%)

Comparable ROE

10% (continuous)

Net debt/EBITDA

2 times or less (continuous)

2.29 times (1.66)

Governance Ensuring accountability and compliance

Participation in UPM Code of Conduct training

100% (continuous)

94% (99%) of active employees completed the training 1)

Responsible sourcing Adding value through responsible business practices

UPM spend covered by UPM Supplier and Third-Party Code

80% (continuous)

86% (91%)

Our priorities

Strategic, critical and high sustainability risk supplier spend covered by EcoVadis assessment indicating low sustainability risk CO 2 emissions from materials and logistics (Scope 3), compared to 2018

100%

89% (86%)

Enhancing biodiversity and climate actions Biodiversity efforts are embedded across all areas of our operations. Forests and plantations, stream waters, and production sites are the key focus areas of our biodiversity initiatives.

-30%

-22% (-22%) compared to 2018

1) Percentage of active employees completed the new UPM Code of Conduct training since September 2025, excl. the company UPM Adhesive Materials acquired in 2025.

46

47

UPM Annual Report 2025

UPM Annual Report 2025