UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability

UPM in brief

Our strategy

Our businesses

Environmental

Social

Key performance indicator

Contribution to the SDGs

Key performance indicator

Contribution to the SDGs

Focus area

2030 target

2025 result

Focus area

2030 target

2025 result

Forestry Ensuring sustainable land use

Climate-positive land use in UPM's own and leased forests

Forests as carbon sinks (continuous)

Five-year annual average carbon sink was approx. -1.9 Mt of CO 2 equivalents

Continuous learning and development Enabling continuous professional development for high performance, growth and future employability Responsible leadership Emphasizing value-based and inspiring leadership and integrity Diversity and inclusion Developing an organizational culture and workplace to ensure a diverse and inclusive working environment for business success

86% (85%) of employees completed individual goal setting or annual discussion, 81% (78%) of employees had a development plan documented In the Employee Engagement Survey average score of 65 (65). Below global average benchmark by 8 points. In the Employee Engagement Survey average score of 67 (70). Below global average benchmark by 8 points. In the Employee Engagement Survey average score of 67 (68). Below top 10% benchmark companies by 13 points.

Goal setting discussions are held and development plans are created for employees Employee perception of good opportunities to learn and grow

100% completion rate

Share of certified fibre 1)

100%

90% (88.5%)

Clearly above benchmark

Biodiversity Enhancing biodiversity

Net-positive impact on forest biodiversity and developing a monitoring system 2 )

Positive development (continuous)

Overall positive development measured

Employee engagement

Clearly above benchmark

500 km

323 km (287 km) reached

Obstacle-free streams3 )

Employees' sense of belonging

Among the top 10% of benchmark companies

Climate Creating climate solutions and working towards carbon neutrality

Fossil CO 2 emissions from UPM's on-site combustion and purchased energy (Scope 1 and 2), compared to 2015 Coal and peat usage in on-site energy generation

-65%

-58% (-50%) compared to 2015 and -15% compared to 2024

35.4% (34.5%)

Continuous improvement in female representation in professional and managerial roles. Developing leadership and decision-making capabilities with increased diversity

40% female representation

-5% compared to 2024

0

Dialogue continued on developing inclusive behaviors. Implemented Safe Contact concept. Gender pay gap closed. Company-wide review done considering the threshold of typical family for local living wage. Pay adjustments implemented to close identified pay gaps related to local living wage. Company-wide review done, and pay adjustments implemented to close identified, statistically significant unexplained gaps related to gender.

Diversity and inclusion initiative

Continuous

Annual energy efficiency improvement

1% (continuous)

Not achieved

Fair rewarding Ensuring fair, equitable and competitive rewarding for all employees

Employees’ pay meeting at least local living wage: implementing a yearly review

Continuous

Share of renewable fuels

70% (continuous)

81% (80%)

Acidifying flue gases (NO X /SO 2 ) for a UPM average product, compared to 2015 Chemical oxygen demand (COD) for a UPM average product, compared to 20084 ) Wastewater volume for a UPM average product, compared to 20084 ) Nutrients used at effluent treatment from recycled sources4 )

-20%

-20% (-19%)

Gender pay equity for all employees: implementing a yearly review process to identify and close unexplained pay gaps Fatalities or serious accidents in UPM operations

Continuous

Water Using water responsibly

-40%

-43% (-44%)

Safe and healthy working environment Ensuring the safety and health of our employees, contractors and the local communities close to our operations

0 (0) fatal accidents, 2 (3) serious accidents

0 (continuous)

-30%

-17% (-16%)

Total recordable injury frequency (TRIF), including contractors

<2

TRIF 6.4 (6.1) for UPM workforce and 5.0 (5.1) including contractors

100%

41% (33%)

Process safety integrated in safety management

All sites and businesses

Process safety action plan implementation and competence development continued in all business areas In the Employee Engagement Survey average score of 73 (72). Below top 10% benchmark companies by 7 points.

Waste Promoting material efficiency and circular bioeconomy – reduce, renew, reuse, recycle and recover

4% increase compared to 2024, 82% (83%) of UPM’s process waste recovered or recycled

Process waste sent to landfills or to incineration without energy recovery

0

Employees’ sense of worklife balance

Among the top 10% of benchmark companies

4.2% (4.2%)

Absenteeism rate

<2%

Product stewardship Taking care of the entire lifecycle

Decarbonization solutions: 7% of sales

Climate-positive product portfolio

Continuous

Community involvement Ensuring local commitment and positive impact on communities

Assessment of quality of community relationships and define measures at relevant sites

Continuous

A new company-wide standard for community engagement established introducing unit specific assessment of community relationships. Implementation and communication 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.

Development of new products and services with contribution to SDGs

Continuous

Developing UPM Circular Renewable Black™ and collaboration for paper-based packaging solutions

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

All businesses (continuous)

89% (89%)

Share of applicable products eligible for ecolabeling out of UPM sales

100%

1) Forest management certification 2) Covers UPM's own forests in Finland and UPM's land in Uruguay

3) Relevant for Finland, based on year 2015 4) Relevant for pulp and paper production

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UPM Annual Report 2025

UPM Annual Report 2025