Metsä Board Annual Review 2024

S – Social responsibility

METSÄ BOARD Annual review 2024

Metsä Board’s 2030 sustainability targets

2030 target

2024

2023

2022

S1 – Own workforce

Anonymous recruitment for vacancies open to all, %

100

99.2

Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6

Women in management positions, %

>30

Total recordable incident frequency, own employees (TRIF)

3.4

6.1

6.7

Material impacts, risks and opportunities related to own workforce

Employee commitment

AAA

A+

Material sub-sub-topics

Impacts

Risks and opportunities for Metsä Board Management

Equal treatment and opportunities for all • Gender equality and equal pay for work of equal value • Diversity • Measures against violence and harassment in the workplace • Training and skills development

Strategy and financial targets

Opportunity: The most suitable professionals are selected for key duties, which improves Metsä Board’s employer image, as well as its innova- tiveness and performance. Risk: The most suitable professionals are not selected for key duties, which weakens Metsä Board’s employer im- age, as well as its innovativeness and performance. Metsä Board’s attrac- tiveness as an employer decreases especially among minorities.

The realisation of equality in the treat- ment, compensation and recruitment of employees can improve wellbeing at work and the opportunities for continu- ous learning and career development. If equality is not realised in the treat- ment, compensation and recruitment of employees, wellbeing at work and opportunities for continuous learning and career development would be weakened. This especially affects wom- en and minorities. Some harassment incidents came up in the reporting year. They are discussed under Incidents, complaints and severe human rights im- pacts . Diversity metrics are presented in tables at the end of this section. Actions promoting working conditions such as company-specific collective agreements, flexitime and individual working time model for shift work have a positive impact on employees’ work ability and wellbeing at work. Inadequate working conditions would weaken the quality of life of employees and their families and increase inequal- ity. At Metsä Board, potential negative impacts especially concern an uneven work allocation and work-life balance. Actions promoting health and safety have a positive impact on employees’ general physical and mental wellbeing and work ability. Inadequate actions for securing health and safety would have negative impacts on employees’ general physical and mental wellbeing and work ability. Especially employees at production units and in investment projects are prone to accidents. The most typical accidents consist of injuries to hands and feet. Moreover, all employees may be exposed to negative impacts related to mental strain and wellbeing. Inadequate data protection could jeopardise employees’ privacy and personal data protection, which may cause a significant mental strain and deterioration in wellbeing

• Anonymous recruitment is the company’s main recruitment method. • Competence development and performance man- agement are systematic. • DEI activities (diversity, equality and inclusion) are invested in. • The share of women is increased at different organ- isational levels. • Everyone can report grievances through the Com- pliance and Ethics Channel.

Value creation

Metsä Board’s 2030 sustainability targets, and their setting and moni- toring, are discussed in greater detail under Sustainability governance and strategy and Material sustainability-related impacts, risks and opportunities . The company’s own workforce has not directly participated in setting the targets, but the results of surveys focused on the personnel, such as the employee survey, are considered in the materiality assessment. The 2030 sustainability targets are discussed by the mills’ management teams, which include employee representatives, and in collaborative events with employee representatives. The progress made in sustainability targets is published on the intranet for all employees quarterly. Progress in targets • Anonymous recruitment for vacancies open to all – Significant progress has been made in the target. Anonymous recruitment was adopted at Metsä Board in 2022. In 2024, 99% of vacancies were filled through anonymous recruitment. • Women in management positions – Despite the actions taken, the share of women in management positions did not increase in line with the target in 2024. In 2025, the goal is to reinforce actions to increase the share of women and use broader metrics to monitor the share of women in management. • Total recordable incident frequency, own employees (TRIF) – TRIF moved towards the zero accidents target as planned. Unfortunately, there was one serious accident, so the company must continue to emphasise proactive safety work and the prevention of serious work-re- lated accidents. • Employee commitment – The result remained at the same level as in the previous employee survey. Starting from 2025, the goal is to enhance the monitoring of the implementation of Group- and business-specific measures established based on the employee survey and to assess potential additional actions affecting commitment to work. The identification and assessment of material impacts, risks and opportunities The material impacts related to the company’s own workforce were identified in a human rights impact assessment, the results of which were included in the company’s double materiality assessment. The impacts, risks and opportunities related to own workforce that were identified in the double materiality assessment are presented in the table on page 70. The assessment of human rights impacts and the materiality assessment are discussed on pages 26–28. Most of the employees belonging to the company’s own workforce are in an employment relationship with the company. A relatively small share of employees of third-party companies, who have an agreement on the supply of labour with Metsä Board, work in ICT services and at production units, for example. The identified material negative impacts are mainly

related to individual cases. Those highlighted in the assessment on human rights impacts include the impacts on personal safety and factors straining wellbeing at production units and in investment projects. Metsä Board has also identified potential negative impacts on diversity and the realisation of equality, including challenges to gender equality in a male-dominated industry. Challenges may also arise in the achievement of diversity regarding the origin, language or age of the company’s own workforce, and the equal treatment of minorities. Policies The sustainability of Metsä Board’s own workforce is guided by applicable legislation, as well as policies comprising Metsä Group’s Code of Conduct and other policies approved by the company’s Board of Directors, the Metsä for all vision and management systems. The policies apply to all Metsä Board employees. The key occupational safety training applies to the company’s own employees and leased labour. The Code of Conduct and policies are discussed in more detail under G1 – Business conduct . The Motivated people strategic programme focuses on the competence development of management and employees; the mills’ common operating model; a diverse, equal and inclusive (DEI) culture; the implementation and development of an ethical and respectful corporate culture; and ensuring future employee needs. The goal is that everyone in the workplace community understands the significance of their role and work in strategy implementation. The Safe and Efficient Operations and Organic Growth strategic programme focuses on topics such as the continuous improve- ment of occupational safety. One of the goals is to reduce the number of work-related accidents. Equal treatment and opportunities for all Metsä Board is committed to promoting the diversity, equality and inclusion (DEI) of its own workforce. This work is guided by Metsä Group’s Code of Conduct, Equality policy and the Metsä For All vision, published in 2021. The HR function guides and carries out DEI work in cooperation with other functions. The Code of Conduct and Equality policy include the prohibition of all discrimination based on gender, age, origin, race, nationality, language, religion, belief, opinion, political activity, trade union activity, family relations, pregnancy, health, disability, sexual orientation or any other personal characteristics. Indirect discrimination is also prohibited. The non-discrimination principle applies throughout the life-cycle of an employ- ment relationship, regardless of whether the employment relationship is permanent, temporary or part-time. Awareness of diversity, equality, inclusion and non-discrimination is promoted through the Code of Conduct e-learning course and DEI e-learning course that are mandatory for employees. The themes are part of the induction of new white-collar employees and apprentices, as well as the company’s management and leadership coaching.

Financial development 10 Key figures 12

Report of the Board of Directors

20 20 37 70 89 96

• Sustainability statement

General information

E – Environment

S – Social responsibility

G – Governance

Working conditions • Secure employment • Working time • Adequate wages • Social dialogue • Collective bargaining • Work-life balance

Opportunity : Workforce’s work ability, job satisfaction and commitment to the company increase. This improves Metsä Board’s employer image and performance. Risk : Workforce’s work ability, job satisfaction and commitment to the company decline. This weakens Metsä Board’s employer image and performance.

• Metsä Board’s production units are in countries with high-quality statutory requirements concern- ing working conditions. Local legislation is followed in all the countries in which the company operates. • Everyone has the freedom to choose whether to join or not join a trade union. • Metsä Board uses company-specific collective agreements. • All Metsä Board employees are covered by the centralised HR management system. • Employees can work remotely depending on the nature of their work,. • Employees have flexible working hours. • An individual working time model for shift work is being tested at Finnish production units. Actions promoting health and safety at Metsä Board include, for example: • Certified safety management systems • Training, opportunities for occupational safety observations, continuous risk assessments and processes for responding to accidents • Operating models and related training for early support and return-to-work support (rehabilitative activities) and a substance abuse programme • Training of supervisors in managing occupational safety and workplace wellbeing • Employees are offered proactive healthcare and a sports and culture benefit anticipate and promote the maintenance of work ability • The Data Protection Policy defines the principles and rules for personal data processing. Separate written guidelines are in place for the processing of employees’ personal data. • Employees receive data protection training through e-learning courses. An advanced mandatory course dealing with the processing of employees’ data and related special legislation is offered to HR personnel and supervisors. • Data protection requirements are considered throughout the life-cycle. • The data protection management model helps ensure compliance with the requirements of legis- lation, including the EU’s General Data Protection Regulation (GDPR). • Everyone can submit a request concerning their personal data through Metsä Group’s website.

Annexes to the Sustainability statement

98 Consolidated financial statements 102 Notes to the consolidated financial statements 150 Parent company financial statements 153 Notes to the parent company financial statements 166 The Board’s proposal to the Annual General Meeting for the distribution of funds 167 Auditor’s Report 171 Sustainability statement assurance report 173 Shares and shareholders 177 Ten years in figures 178 Taxes 179 Production capacities 181 Calculation of key ratios and comparable performance measures Corporate governance 183 Corporate governance statement 190 • Board of Directors of Metsä Board 194 • Corporate Management Team of Metsä Board

• Health and safety

Other work-related rights • Privacy

Risk: Metsä Board suffers permanent damage to its reputation. Workforce’s work ability, job satisfaction, and trust in and commitment to the company decline.

196 Remuneration report 201 Investor relations and investor information

Positive impact on the environment and society or on Metsä Board’s business Negative impact on the environment and society or on Metsä Board’s business

Report of the Board of Directors | METSÄ BOARD ANNUAL REVIEW 2024