UPM-Kymmene Oyj

UPM Public Affairs is led by the Vice President, Public Affairs. He reports to the Executive Vice President of Marketing, Sustainability and Communications, who is a member of the Group Executive Team. We also have topic specific steering groups where our advocacy activities are steered, and these topics are reviewed in the Group Executive Team regularly. [...] UPM is a member of various joint industry, sustainability and trade associations and networks. This is one way of influencing and monitoring the policies for being aligned with our strategy and climate pledge. These memberships and active participation also allow for a versatile dialogue with stakeholders at national, EU, and international level.

###### Governance

###### GREEN FINANCE FRAMEWORK

###### We established a Green Finance Framework in November 2020. The framework was developed in accordance with the 2018 version of the Green Bond Principles published by the International Capital Markets Association (ICMA) and the 2020 version of the Green Loan Principles, published by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA), respectively. The framework was reviewed by the second-party verifier CICERO and received the best possible rating, CICERO Dark Green. The review also included an assessment of the governance structure of the framework, which was rated to be excellent. We have designed and implemented a process to ensure that only projects aligned with the criteria set out in the Framework will be selected for Green Finance Instruments. We have also established a Green Finance Committee, including members from Treasury, Responsibility, Investor relations and Finance. We have a Green Finance Register for Green Finance Instruments issued by UPM for the purpose of monitoring the Eligible Assets and Projects and the allocation of net proceeds from Green Finance Instruments. The Green Finance Register forms the basis for impact reporting. The Green Finance Committee has approved the final allocation of Eligible Assets and Projects and the impact reporting for the issued Green Bonds. We published previous Green Bond Reports in April 2021, April 2022 and April 2023. In 2023, we updated our Green Finance Framework and the related Second Party Opinion. The framework received the highest Dark Green rating from S&P Global Ratings, in line with the framework established in 2020. The new framework has the same six Use of Proceeds categories as previously, but we have updated it to further align with our sustainability strategy, objectives and targets and to align with the ICMA Green Bond Principles 2021 (2022 Appendix) and to meet the latest market practises. We have also refined and further clarified what investment and projects to include and have provided more examples with each category. The framework is also more explicit about the climate, environmental and responsibility contributions of each category. [...] Green Finance Committee

• Treasury

• Responsibility

• Finance

• IR [...] Management of Proceeds

Green Bond Register monitoring the Eligible Assets and Projects and allocation of net proceeds from Green Bonds. Excess proceeds to be held in accordance with UPM's liquidity management policy, which ensures that proceeds are not used for fossil fuel-related investments.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]UPM's strategy has been defined by the Board of Directors as the Biofore strategy. The purpose of the strategy is to invest in sustainable growth and innovate for a future beyond fossils. It is based on the increasing role that renewable resources will play in resource-scarce economies facing climate change. UPM's engagement in trade associations and policy-related activities is globally based on this strategy, which ensures that all engagement is consistent with the overall climate change strategy. Wood fibre, the key raw material for all UPM businesses is renewable and comes from sustainably managed forest with certification exceeding 80%, and approximately 70% of UPM's energy generation is from renewable sources. Regulation that promotes the use of renewable raw materials from sustainably managed sources is beneficial for all UPM existing and future businesses.