UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability

UPM in brief

Our strategy

Our businesses

Actions for the environment

(80%) of our fuel consumption on produc tion sites. At some mills, all or part of the required energy is produced by external or co-owned power plants. We are seeking ways to improve energy efficiency across our operations through audits, innovations, and investments. These improvements usually lead to reductions in CO 2 and other air emissions. We work with suppliers to reduce CO 2 emissions We also evaluate emissions from oth er indirect sources (Scope 3), including purchased materials, transportation, and processing of sold products. Our target is to reduce fossil CO 2 emissions from materials and logistics by 30% by 2030, compared

to 2018 levels. These emissions account for a significant share of our total Scope 3 emissions. To achieve this, we launched the -30 by 30 Program. New and existing suppliers pro vide data on the carbon footprint of goods and services sold to UPM. This includes all relevant emissions from their own upstream supply chain and operations. In 2025, we achieved a 22% reduction compared to 2018 for the target scope. Our total Scope 3 emissions were 7.7 million tonnes, a 6% decrease compared to the pre vious year. Currently, approximately 80% of our supply of pigments, pulp, and chemicals is covered by primary CO 2 emissions data from suppliers, and 67% of our deliveries are calculated based on supplier data.

In focus

Renewable diesel powers WISA ® Plywood transport in Finland Challenge To meet the needs of the construc tion and transportation industries, WISA plywood must be transported by both road and rail. However, it is clear that we must reduce emissions related to transportation across all our operations. Action UPM Plywood now uses renewable diesel for all domestic road transport of its WISA ® plywood in Finland. This change will reduce UPM Plywood’s CO 2 emissions from road transport in Finland by up to 90% compared to 2023 levels. The fuel used is HVO (Hydrotreated vegetable oil), a renew able diesel made from sustainable raw materials. At the beginning of 2024, rail transport from the UPM Pellos mill switched to renewable diesel, and now fossil diesel has been fully replaced in all of UPM Plywood’s domestic transport operations. These emission reductions are based on the mass balance approach, where the transport partner agrees to purchase and use an equivalent amount of renewable diesel to that consumed by UPM’s transport operations. This devel opment is part of UPM’s long-term climate efforts to reduce Scope 3 emissions by 30% by 2030, com pared to 2018 levels. Impact Switching to low-emission domestic road transport supports UPM Ply wood’s emission reduction targets. These targets aim to minimize the climate impact of its products, oper ations, and supply chains.

Responsible water management

Water plays a crucial role in our business, from sustainable forestry to logistics and production. Flowing water is also a key source of renewable energy.

9.5 TWh Electricity consumption (9.6 TWh)

Capacity to generate power through own power plants and shareholdings

Our commitments Minimizing water use and effluent load We continuously reduce the effluent load and volume generated by our operations. Protecting aquatic ecosystems Our efforts to protect and restore aquatic ecosys tems improve the quality of watercourses and the natural habitats of the species that live in them. Water stewardship As a signatory to the UN Global Compact’s CEO Water Mandate, we adhere to the principles of environmentally sustainable, socially equitable, and economically beneficial water use.

Our priorities

Pulp and paper production is our most water-intensive activity, so it is the focus of most of our water management efforts. On average, every liter of water withdrawn is used approximately 20 times in the produc tion process thanks to internal recirculation. Using less water in processes also means using less energy and sometimes chemicals. We treat all wastewater from our pulp and paper mills using mechanical and bio logical processes. Purified water is usually returned to the same watershed from which it was taken. The CDP has recognized UPM with an A– score for our actions to improve water stewardship. Actions in 2025 • Collaboration expanded with the BSAG to include forestry water protection (page 51) • Our Stream Water Program was expand ed to include UPM-owned land areas in the catchment area • The San Francisco nursery in Uruguay improved its water recycling system in the hardening area

Nominal MW

Hydropower

729

Efficient water use We use recycling techniques efficiently and manage processes using Best Available Tech niques (BAT). Continuous improvement towards 2030 targets Each pulp and paper mill has a plan to achieve effluent volume and load reduction targets by 2030, using advanced process controls and predictive models to optimize wastewater treat ment, for example. Mitigating water risks Our water-intensive operations are in areas with sufficient water availability. Collaboration We cooperate with local stakeholders and par ticipate in projects to further improve the quality of local waterways.

Nuclear power Thermal power

1,081

133

UPM Energy in total

1,943

Mill site combined heat and power (CHP) Mill site hydropower Mill site power generation in total

81% Share of biomass-based fuels at production sites (76%)

1,560

7

1,567 3,510

Total UPM

Sources of UPM’s fossil CO 2 emissions On-site energy generation 20%, 2.1 million t

99% Share of UPM Energy’s CO 2 free electricity (99%)

Purchased energy 7%, 0.8 million t

Other indirect sources* 73%

• UPM used WWF Water risk tool in assess ing and documenting the local water risks and related controls • Pulp and paper mills continued their systematic water saving efforts.

Sustainability Statement, ESRS E3 Water and marine resources on page 183

*Other indirect sources such as purchased materials, transportation or processing of sold products 73%, 7.7 million t

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UPM Annual Report 2025

UPM Annual Report 2025