UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability

UPM in brief

Our strategy

Our businesses

UPM's materiality analysis 2025

that sustainable forest management and re placing fossils with wood-based products are effective ways to mitigate climate change. We actively promote the consistent and cost-competitive implementation of forest and climate-related policies. UPM calls for predictable regulations that enable invest ment in the circular bioeconomy. EU policies must therefore ensure the sustainable use of forests and the availability of wood as a key resource for green growth. Community engagement Building and maintaining good relations with local communities near UPM’s op erations and supporting their vitality are essential for acceptance of our operations, as well as for understanding the challenges, key risks, and opportunities in our operating environment. We aim to contribute to the economic, environmental, and social development of surrounding communities and minimize the negative impacts of our operations. Our mills in Europe, the U.S., and Uru guay have the potential to create significant local societal impacts through employment and tax generation. We promote positive impacts in local communities by developing infrastruc ture, for example. Other activities include apprenticeship programs in Finland and Germany, and cooperation with educational institutions to promote science and research.

Every year, we conduct a materiality analysis to identify topics on which UPM has a significant impact or topics that have a significant impact on the company. The analysis is based on internal assessments as well as stakeholder interests and concerns. The annual double materiality assessment (DMA) considers the interests, views, and rights of various stakeholders, including UPM’s workforce, value chain workers, and affected communities.

We embed the insights gained from stakeholder engagement in our business decisions and strategy in multiple ways. These methods include regular interviews and surveys, open dialogue, and engagement events.

Low High

High impact and medium financial materiality

High impact and high financial materiality

Social • Diversity and inclusion • Communities

Economic and governance • Renewable and circular products and CO 2 -free energy • Business resiliency • Business ethics and values

Environment • Circular bioeconomy • Product stewardship • Sustainable water usage

Environment • Biodiversity • Climate change • Sustainable forestry

Social • Decent work and fair rewarding • Health and safety

In Uruguay, the UPM Foundation promotes education and entrepreneurship by collabo rating with local organizations. We take measures to identify and mitigate our environmental and social impacts on surrounding communities. These measures include impact assessments, collaboration forums, cooperation with local schools and education networks, and dialogue with local forest owners, neighbors of harvesting sites, and others impacted by forest management.

Our EMAS statement discloses the societal and environmental impacts of our pulp and paper mills, as well as our collaboration with local stakeholders. The reports are published annually on our website upm.com/sustain ability.

Economic and governance • Responsible sourcing

Impact materiality

Sustainability Statement, ESRS 2 General information on page 137 Sustainability Statement, ESRS S3 Affected communities on page 229

Financial materiality

Low

High

How we engage with our stakeholders

The UPM Share and Care Program

Public affairs and policy influence We work with various trade associations, industry initiatives, and decision-making bodies. We actively participate in policy discussions related to products, climate change, sustainable forest management, and energy markets in key countries and at the EU level. Community engagement We engage with local communities through mill visits, forums, and educational events. We regularly evaluate and improve our community engagement practices. Supporting local communities and volunteering We coordinate local support, donations, and employee volunteering through the UPM Share and Care Program. The program focuses on causes and projects that support innovation and sustainability or promote local vitality and well-being.

Active dialogue and feedback We organize regular events and discussions with stakeholders on key topics such as financial success, governance, and environmental issues. We systematically collect and analyze feedback to understand and address stakeholder expectations. Sustainability initiatives We participate in UN Global Compact initiatives and other sustainabili ty programs. We also collaborate with various environmental organiza tions and certification bodies. We engage with local and international stakeholders in sustainability issues.

The UPM Share and Care Program focuses on making a positive impact on communities through various initiatives. Through charitable donations, local support, and employee volunteering, the program demonstrates our commitment to responsibility and local community involvement. We support projects that focus on youth, education, and enhancing sci ence-based actions to promote biodiversity and mitigate climate change. UPM does not support political parties or individual candidates. Support for local initiatives amounted to approximately €0.6 million in 2025. This figure includes support for the Uruguayan UPM Foundation, which received a contribution of $400,000. The foundation promotes and supports education, entrepreneurship, employment, healthy living, and entertainment in rural Uruguayan communities. In 2025, we donated a total of €1.1 million to charities and other nonprofit organizations. Beneficiaries included the University of Helsinki, UNICEF

Finland, Children and Youth Foundation, Stiftung Lesen and Redoblando Esfuerzos Asociación Civil. Donations were allocated according to our focus areas. Approximately 44% went to youth-related initiatives, 30% to education initiatives, and 26% to climate and biodiversity projects. These projects were primarily aimed at our main operating countries, Finland, Germany, Uruguay, China, Poland, and the U.S. Employee volunteering underlines local commitment and impact. UPM’s employees can volunteer for up to eight hours a year during working hours. In 2025, approximately 300 UPMers participated in voluntary initiatives in many of our operating countries, including Finland, Poland, Germany, China, Malaysia, and the U.S. Activities included stream restoration, tree planting, and helping children and young people. Several UPM sites partici pated in environmental cleanup activities.

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UPM Annual Report 2025

UPM Annual Report 2025