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

Sustainable supply chain program

We renew the everyday - Together

Environment

Social

Governance

ESG topics

Resources and circularity

Business ethics and values

Climate action

Labor and hu man rights

Health and safety

Responsible use of assets

Strategic focus

Biodiversity

Responsible use and management of assets in the supply chain

Ethical behavior and culture of integrity in the supply chain

Climate change mitigation in the supply chain

Biodiversity protection in the supply chain

Responsible resource use in the supply chain

Decent work in the supply chain

Health, safety and security in the supply chain

Ambition

Ensuring a sustainable supply chain

Risk mitigation

Sustainability risk identification, assessment and mitigation in the supply chain Transparent sharing of reliable and credible sustainability information between chain members

Compliance

Compliance with applicable regulations and UPM requirements in the supply chain

An effective supply chain ensures a reliable and cost-competitive supply of materials and services worldwide in all market situations.

We share reliable and credible sustain ability information through collaborative organizations such as Together for Sustaina bility (TfS). We also use EcoVadis and other assess ments, supplier audits, reviews, and joint development plans to conduct more detailed evaluations of suppliers’ activities. All suppli ers are regularly screened using our counter party risk management tool. If non-conformities are identified, the supplier is required to take corrective

measures. We monitor the implementation of these measures and provide support to improve suppliers’ operations where neces sary. Some contracts may be terminated due to insufficient corrective measures or the severity of UPM’s findings. Group-wide -30 by 30 Program to reduce CO 2 emissions in the supply chain on page 58 Sustainability Statement, ESRS G1 Business conduct on page 236 More information on our website: For suppliers

Strict requirements for wood sourcing

We work closely with our suppliers and contractors to continuously improve our supply chain's efficiency, transparency, and sustainability. We buy products, materials and services from around 17,000 B2B suppliers world wide, including startups and international corporations. We also purchase wood from around 13,000 private forest owners. Our main sourcing categories are fibres, chemicals, other raw materials, logistics, en ergy, and indirect purchases such as services. We select suppliers based on long-term sup ply reliability, cost-competitiveness, product and service quality, financial stability, social and environmental responsibility, product safety, and product carbon footprint. Supplier management and digitalization support product development and the com mercialization of new products. Our sustainable supply chain program outlines our responsible sourcing practices and priorities. It addresses environmental,

social, and governance topics that contribute to a responsible and resilient supply chain. The program includes instructions on relevant procurement and supply chain management practices and their impact on UPM, as well as supplier requirements. We manage and track implementation through our 2030 sustainability targets and perfor mance indicators. Compliance with regulations and UPM requirements We are committed to sustainability and eth ical practices throughout our supply chain in accordance with our Code of Conduct. The UPM Supplier and Third-Party Code defines the minimum level of performance we require from our suppliers and third-party intermediaries such as agents, joint venture partners, local partners, and distributors. We expect our suppliers to promote the same requirements in their own supply chains.

We also implement additional, cate gory-specific requirements such as those related to the sourcing of wood, chemicals, pulp, packaging materials, and logistics. These requirements cover environmental performance, social responsibility, and reporting. Contractors working on our pro duction sites must comply with UPM’s safety requirements. Risk mitigation We identify the suppliers and supply chains most relevant to our business that have a high risk of potential negative environmen tal and social impacts. We have risk management contingency plans for suppliers identified as having a high sustainability risk. Our evaluation is based on country of origin, the sourced material or service, and UPM’s supply chain ESG risk register, which includes country, commodity, and sector-specific sustainability risk information.

All the wood we use is legally harvested and comes from sustainably managed forests. We verify that wood delivered to our mills complies with applicable timber and deforestation legislation, and other regional requirements. We continuously assess our suppliers of wood, pulp, and recovered paper for their environmental and social respon sibility, and their involvement in the local community. These raw materials are either FSC™ (N003385) and PEFC (PEFC/02 44-41) -certified or meet the FSC Controlled Wood standard or the PEFC due diligence requirements. We source all wood assortments to ensure optimal use of this valuable raw material. In 2025, we purchased 27.7 (28.0) million cubic meters of wood worldwide.

Actions in 2025

• 86% (91%) of total spend with suppliers committed to the UPM Supplier and Third-Party Code • Our internal and external auditors con ducted 80 (97) audits worldwide based on identified risks related to social and environmental topics, including human rights. 347 sustainability-related findings

were identified and none of them were considered critical with regard to actual or potential significant environmental or social impacts. • About 2,000 (3,200) contractor reviews carried out in Uruguay, focusing on working conditions

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UPM Annual Report 2025

UPM Annual Report 2025