UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability

UPM in brief

Our strategy

Our businesses

Our commitments

Actions for the environment

In focus

Our priorities Forest Action, outlines an ambitious agenda to maximize the positive impact of our forestry operations. The program includes targets and actions related to climate, biodiversity, soil, water, and social contribution. Climate The annual carbon sink of UPM-owned forests in Finland and the U.S., as well as the plantations on our own and leased land in Uruguay, has av eraged -1.9 million tonnes of CO 2 equivalent over the past five years. The Natural Resources Insti tute Finland calculates the carbon sink annually, and the calculation methods are updated with the latest scientific developments. biodiversity in the protected areas and com mercial forests we own. In Uruguay, we monitor and enhance biodiversity in conservation areas around the plantations. 40% of the land area we own in Uruguay is not planted and includes conservation areas and land in traditional use such as cattle grazing. Biodiversity In Finland and the U.S., we monitor and enhance Sustainable forest management Our third-party certified wood origin monitor ing systems ensure full traceability. We do not engage in deforestation, nor do we source wood from tropical rainforests. We do not establish plantations by converting natural forests or in areas where water is scarce. We do not use genetically modified trees. We require our sup pliers and contractors to implement responsible practices in accordance with the UPM Supplier and Third-Party Code, company policies and rules, and the respective forest certification chain-of-custody standards. Climate-positive forestry We ensure that our forests and plantations grow more than they are harvested, and that they continue to act as carbon sinks. We ensure forest regeneration. Our carefully selected tree Forest Action Program Our global forest responsibility program,

Water and soil Our harvesting practice is to leave buffer zones untouched along watercourses. In Finland, we update our forest inventory systems annually to include the locations of valuable habitats and waterbodies in relation to wood harvest ing activities. In Uruguay, we monitor water quality near our plantations. Apart from tree nurseries, the plantations are not irrigated. We minimize our impact on soil and water in boreal and temperate forests by increasing the use of continuous cover forestry in peatlands and monitoring soil damage. Social contribution and stakeholder engagement We provide jobs related to forests and forestry in rural areas, on-the-job training as well as learning opportunities for children and young people. We have a long-standing collabora tion with academic institutions and NGOs in sustainable forestry. We work with stakeholders and NGOs in Uru guay, and with local indigenous communities in the U.S. We also work with FSC™ and PEFC to develop certification schemes and promote the use of certified wood globally. seedlings are important for producing wood raw material and for carbon sequestration, and increasing resilience to climate change. Enhancing biodiversity Forest biodiversity is critical to mitigating the effects of climate change and preserving species and habitats. We are committed to enhancing biodiversity in Finland, Uruguay, and the U.S., where we own forests and plantations. We ensure that our forests remain resilient and diverse in changing climate conditions so that they contin ue to thrive for future generations. Respect for human rights and indigenous peoples We respect the human rights and the rights of indigenous peoples in all areas of our operations.

Sustainable forestry Our business is based on sustainable forest management. We grow and harvest wood to produce renewable materials and products.

Collaboration for the Baltic Sea

Challenge A lack of clear, research-backed information in certain areas of for estry waters is still holding back the development of effective practices. Action Our new commitment with the Baltic Sea Action Group (BSAG) focuses on research on water man agement in forests and developing new practices in peatlands, for example. We provide research plots for studies on water quality, carbon balance, and groundwater regu lation. These plots are integrated into a network coordinated by the University of Helsinki and are open to all researchers. New operating models and prac tical forestry guidelines are also being developed for water protec tion in forestry for both UPM’s own forests and privately owned forests. Impact Studies show that forestry sig nificantly impacts water quality and the carbon balance. Through research partnerships, we address key questions such as the regula tion of the groundwater and carbon cycles, and their impact on water bodies. This helps us to identify effective ways to reduce environ mental impacts on water. Small changes in practices can enable the prevention of harm, improve the condition of water bod ies, and also restore them to their natural state. We are also commit ted to sharing these guidelines with forest owners.

Forests and wood-based products play a unique role in mitigating climate change and preserving biodiversity. Well-managed forests and plantations provide a sustainable and efficient way to meet the growing global demand for fibre. Forestry also generates wealth and prosperity for local communities. Sustainability Statement, ESRS E4 Biodiversity and ecosystems on page 188 Ensuring a sustainable supply chain on page 80

UPM forests and plantations

2008 2025

Forest and plantation land, own and leased (1,000 ha)

1,012 1,094

Forest growth (million m 3 )

4.3

9.9

Wood harvested from UPM forests and plantations (million m 3 )

2.2

8.5

Value of forests and plantations, including land (€m)

1,270 3,552

Actions in 2025 • We launched a new Baltic Sea Commitment in Finland for 2025–2030, focusing on water protection, supporting research, and enhancing science-based sustainable forestry practices. (on the right) • The first SBTN pilot was finalized and work on standards continued. Participation in another SBTN pilot with a view to setting potential targets for forest management in Finland. • Work on the habitat restoration program started in UPM-owned forests in Finland. • UPM Uruguay received Ecosystem Service Certifica tion (FSC) for maintenance of a network of conser vation areas.

Facts and figures Globally, about 141,000 hectares (15%) of UPM’s own forest land is protected or in restricted use. Protected areas include valuable habitats, natural forests, and other important areas such as wetlands or culturally significant sites. All UPM-owned forests and plantations are certified or in the process of being certified if the site is new. In 2025, 91% of our forests were double-certified by the FSC™ and PEFC, and 8% were certified by the PEFC (SFI). Our FSC™ group certification schemes in Finland and Uruguay provide small forest owners with access to certification. In 2025, UPM’s FSC™ group certifica tion covered approximately 582,000 hectares in Finland and 9,000 hectares in Uruguay.

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UPM Annual Report 2025

UPM Annual Report 2025