UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability

UPM in brief

Our strategy

Our businesses

Actions for the environment

In focus

Our main impact on biodiversity results from forest and land management, wood sourcing, migration barriers in stream waters, and the environmental load on production sites. Enhancing biodiversity

Actions in 2025 • Implementation and follow-up of new and revised biodiversity indicators for UPM's forests and plantations in Finland, the U.S. and Uruguay. The first-ever deadwood survey in Minne sota. (on the right) • Participation in the global project led by FSC™ to better understand the positive impact of forest certification on biodiversity • Three obstacle removal projects on stream waters carried out • Studies related to eDNA continued in Finland and Uruguay.

Biodiversity indicators across UPM-owned forests

We aim for a net-positive impact on biodiversity in all UPM-owned for ests and measure progress through key indicators. These indicators were introduced in Finland in 2018, in Uruguay in 2022, and in the U.S. in 2025. Developing science-based methods to monitor biodiversity remains an ongoing priority. In Minnesota, where UPM owns 76,000 hectares of semi-natural mixed forest, we are enhancing natural characteristics through six biodiversity indicators grouped into three categories: forest manage ment, conservation, and projects and collaboration. These indicators guide actions such as promoting mixed-species, multi-aged silvicul ture to increase variety of tree spe cies and improve forest structure. We also conserve the most valu able habitats, including old-growth forests, wetlands, and riparian areas, and conducted the first-ever deadwood inventory on our U.S. land with an external partner. The aim was to establish a baseline for deadwood volumes and under stand how they are distributed among different species, diameters, and states of decay. Through collaboration with research organizations, we continue to develop our practices and inte grate best practices into everyday forest management.

Biodiversity is essential for maintaining healthy forest growth and ensuring forests adapt to the changing climate. We recog nize the vital role biodiversity plays in the health and sustainability of our forests and plantations.

UPM’s operations on its production sites also impact the local environment and waterbodies. We therefore consider our commitments and priorities for en hancing biodiversity holistically in all our operations.

Our commitments

Biodiversity programs We launched our first forest biodiversity program in 1998. Currently, we have two programs related to biodiversity: the Forest Action Program, with biodiversity as one focus area (since 2022), and the Stream Water Program (since 2016).

Net-positive impact on forest biodiversity (NPI)

We are committed to enhancing biodiversity in our forests in Finland and the U.S. and our land areas in Uruguay. Progress against our NPI tar get is monitored using specific key performance indicators.

Our priorities

Healthy and resilient forests We maintain healthy forests and plantations that are vital to our business, resilient to climate change, and support diverse habitats, species, and thriving ecosystems. Certification plays a crucial role in managing biodiversity in our forests and land areas and other wood sources. forestry and hydropower generation practices, and improve the monitoring and measurement of biodiversity impacts in our forests and in hy dropower generation. We collaborate with var ious scientific and professional organizations such as Natural Resources Institute Finland. We are active in dismantling migration barriers in streams and testing new ways to restore fish stocks across Finland. Habitat restoration and monitoring We restore habitats, develop sustainable

Mitigating negative impacts in production We use best available techniques to reduce environmental load on production sites, improve water and soil quality, and enhance local biodi versity. Biodiversity as part of management remuneration We have included biodiversity as a measure in UPM’s management remuneration. We have integrated the requirements of the Taskforce on Nature-related Financial Disclosures (TNFD) into our reporting. Sustainability Statement, ESRS E4 Biodiversity and ecosystems on page 188 Sustainable forestry on page 50

Biodiversity indicators on our website

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UPM Annual Report 2025

UPM Annual Report 2025