UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability

UPM in brief

Our strategy

Our businesses

Creating value for people and society

CASE STUDY In focus

Baltic Sea Action Group, the Finnish Osprey Foundation, and Vida Silvestre in Uruguay. We are active international stakeholder members of the PEFC (Program for the En dorsement of Forest Certification, PEFC/02-44 41) and the FSC™ (Forest Stewardship Council, FSC-N003385). We engage in the development of forest certification systems to promote sustainable forest management globally. Sustainability issues are also raised in customer inquiries, with product safety, sustainable forest management, and climate change being key themes. Green transition and bioeconomy are high on the policy agenda Through public affairs work, we promote the prerequisites for our operations, especially in our main operating countries: Finland, Uru guay, Germany, and China. Active influencing at the EU level is also important. Our public affairs activities are based on our strategy. Topic-specific steering groups guide our public affairs activities, and the Group Executive Team regularly reviews these topics. We cooperate with several trade associa tions, the most significant being the Finnish Forest Industries Federation (FFIF) and the Confederation of European Paper Industries (Cepi). As we enter new industries, we need to find new ways and forums for cooperation. For example, UPM is a member of the Euro pean Chemical Industry Council (Cefic). We are represented in the decision-mak ing bodies of these trade associations so we can influence and monitor their positions and ensure they align with our strategy. The basic requirement for membership in any trade association is alignment with UPM’s strategic positions. As an active participant in the energy market, both as an energy-intensive con sumer and producer, UPM regularly reminds decision-makers of the importance of func tioning energy markets. Climate change and our commitment to the UN’s 1.5-degree agenda continue to be of great interest to our stakeholders. We engage in dialogue with environmental organizations, certification bodies, authorities, and deci sion-makers. The impact of forests on climate is linked to policies on land use, land use change, and forestry (LULUCF). We emphasize

accurate information in accordance with market regulations. As many of our stakeholders primarily view UPM as an economic operator, discus sions focus on financial success, stability, good governance, the future outlook, and growth. Many discussions also address for ests and forest use. Stakeholder mapping, active dialogue, and systematically collecting feedback play an important role in our stakeholder relations work. We analyze this feedback to understand stakeholders’ expectations, taking them into account in development and decision-making. In 2025, we received 460 inquiries or concerns from the general public. Sustainability initiatives We continue to participate in UN Global Compact and have joined the UN Global Compact Forward Faster initiative, which aims to accelerate progress toward achieving the UN’s Sustainable Development Goals. UPM’s Faster Forward commitment focuses on gender equality, living wages, and the net-zero emissions target. We voluntarily collaborate with vari ous stakeholders in sustainability issues, addressing topics such as ecolabels, fish migration, living wages, children's rights, and nature conservation. Through the Forest Action Program, we collaborate with the Care Program reviewed and updated • 70+ communities positively impacted by the UPM Foundation projects in Uruguay • Support for globally recognized humanitarian organizations, such as UNICEF Finland • The renovated UNESCO World Herit age Site Verla opened to the public Actions in 2025 • Based on customer satisfaction survey results, the overall satisfaction with UPM as a supplier is 87% (85%) • Joined Cefic to strengthen the role of renewable chemistry in Europe • A new standard for local community engagement and the Share and Care Program • The focus areas of the UPM Share and

Community relationships are a strategic asset

A strong social license to operate is essential for long-term business success. Our new community engagement standard outlines how we interact with local communities, strengthening stakeholder trust, and focus on long-term impacts. This single UPM standard applies to pre-defined high-impact sites and forest operations with significant potential social or environmental impacts. The standard also governs local initiatives, charitable dona tions, and employee volunteering under the Share and Care Program. The Standard requires these high-impact sites and forest opera tions to conduct stakeholder map ping, develop engagement plans, and identify and prioritize social im pacts while paying particular atten tion to potential vulnerable groups. It emphasizes dialogue, transparency, and grievance mechanisms that are widely accessible. Engagement plans are based on operations and can include various forms of engagement, such as mill visits, fo rums, and educational events. Sites should monitor the effectiveness of engagement through KPIs. and provide charitable donations, and promote employee volunteering to create long-term positive societal impact and support the vitality of our local communities. Communi cations and training regarding the implementation of the new standard will begin in 2026. transparently report results. We support local initiatives,

Active dialogue with stakeholders Understanding the views and expectations of stakeholders is crucial to our success and the acceptance of our operations.

The impact of our operations extends from the local level to society at large. We aim to provide a fact-based balanced view of the economic, environmental, and social aspects of our operations. Through collaboration, we maintain transparent, responsive, and pro active relationships with our stakeholders, fostering mutual understanding. A clear picture of our future We provide stakeholders with a clear picture of our future direction and how we create long-term value. We disclose relevant and

Our most important stakeholders

Our strategy forms the foundation of our stakeholder dialogue. Our key focus areas and activities vary according to local needs and stakeholder preferences. We define key stakeholders on the basis of materiality. UPM's operations have a significant impact on stakeholders, and/or vice versa.

• Investors • Customers • Current and future employees • Suppliers • Communities • Media • Governments and regulators • NGOs • Researchers.

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UPM Annual Report 2025

UPM Annual Report 2025