Group 
Sustainability 
Report

Contents
About us
Who we are
1
Where we operate
1
Our value streams
2
About this report
3
Independent Auditors Limited 
Assurance Report on Selected Key 
Performance Indicators
4
Governance
7
Targets
10
Messages from our leaders
19
Our key relationships
22
Employees
24
Unions
30
Customers and partners
33
Communities and neighbours
40
Industry bodies, related memberships 
and organised business
43
Shareholders, bondholders and banks
51
Government and regulatory bodies
54
Suppliers and contractors
58
Civil society and media
62
Our key memberships and 
commitments
65
Key material issues
Principles
Ethical behaviour and compliance
72
Responsible procurement
77
Prosperity
Our management approach to 
Prosperity
82
Our FY2023 performance at a glance
83
Agility and operational efficiency
86
Low-carbon, circular bioeconomy
92
– Verve
92
– Biomaterials
96
Innovation and collaboration 
99
People
Our management approach to People 
105
Our 2023 performance at a glance
106
Employee and contractor safety
109
Sappi talent 
117
Labour relations
125
Social impact 
129
Planet
Our management approach to Planet
137
Our 2023 performance at a glance
139
Sustainable woodfibre 
140
Renewable energy and climate 
change 
148
Water stewardship
157
Circular bioeconomy and minimal waste
164
Biodiversity
167
Our planet indicators
171
Glossary
178
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About our theme: Shape
Challenging global developments have 
increased our determination not just to 
react to our environment but to shape a 
bold, cohesive response. Based on our 
long-standing track record of renewing, 
revitalising and redefining our business and 
plans to continue our success, we are well 
positioned to do so. 
There are no constant conditions in 
our operating environment, but there 
are some constants in our response: 
We will continue to focus on growing our 
business, sustaining our financial health, 
driving operational excellence and 
enhancing trust. We will do so by creating 
career and personal development 
opportunities for our engaged, inspired 
employees and promoting sustainable 
livelihoods within our communities. 
Innovation will continue to be key to 
delivering profit and margin improvement, 
with sustainability and our priority United 
Nations Sustainable Development Goals 
(UN SDGs) an increasingly important core 
value and development platform.
By shaping our purpose with positive, 
creative force, we drive results sustainably, 
gain the trust of and serve our shareholders, 
customers, employees and society at 
large.
Icons
Risk
Case study
Related and explanatory information in 
this report is cross referenced
See more detailed information in 
other published documents on  
www.sappi.com or other interactive 
reports
See more detailed information on 
third-party websites
Thrive strategy
Grow our business
Sustain our financial health
Drive operational excellence
Enhance trust
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
Sappi 2023 Group Sustainability Report

Who we are
Sappi is a leading global provider of 
everyday materials made from 
woodfibre-based renewable resources. 
As a diversified, innovative and trusted 
leader focused on sustainable processes 
and products, we are building a more 
circular economy by making what we 
should, not just what we can.
Our raw material offerings (such as dissolving 
pulp (DP), wood pulp and biomaterials) and 
end-use products (packaging papers, 
speciality papers, graphic papers, casting and 
release papers, as well as forestry products) 
are manufactured from woodfibre sourced 
from sustainably managed forests and 
plantations, in production facilities which, in 
many cases, use internally generated 
bioenergy. Many of our operations are energy 
self-sufficient.
Together with our partners, we work to build a 
thriving world by acting boldly to support the 
planet, people and prosperity.
Where we operate
5.5 million tons
Paper production per year
2.6 million tons
Paper pulp production per year
1.5 million tons
Dissolving pulp production 
per year
Globally we have
12,329 
employees1
400,000ha
Owned and leased sustainably 
managed forests in South Africa
1	 Includes corporate and Sappi Trading employees.
Sappi Trading
Sappi Trading operates a network for the 
sale and distribution of our products 
outside our core operating regions of 
North America, Europe and South Africa.
•	 	Sales offices
•	 	Bogotá
•	 	Hong Kong
•	 	México City
•	 	Johannesburg
•	 	Sydney 
•	 	Nairobi
•	 	Shanghai
•	 	São Paulo.
Europe
South Africa
Sales offices
12
Production 
facilities
10
Employees 
5,410
Sales offices
3
Production 
facilities
5
Employees 
4,591
Sales offices
6
Production 
facilities
4
Employees 
2,o73
North America
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
1
Sappi 2023 Group Sustainability Report

Value streams
Our value streams include: 
Graphic papers 
Our market-leading range 
of coated and uncoated 
graphic paper products is 
used in magazines, 
corporate reports and 
accounts, direct mail, 
high-quality brochures, 
catalogues, calendars 
and books.
Packaging 
papers
Our packaging solutions 
offer environmentally 
conscious consumers 
an alternative to 
fossil-fuel based 
packaging. 
Speciality 
papers 
Our customers use our 
speciality papers to add 
value to niche markets 
and enable product 
differentiation. Our focus 
on innovation helps our 
customers to meet and 
anticipate the challenges 
of changing market 
dynamics.
Pulp 
Our dissolving pulp 
brand, Verve, creates 
renewable alternatives 
for raw material 
feedstock to textiles, 
pharmaceuticals, 
foodstuffs and more – 
products that meet the 
needs of people around 
the globe every day.
Biomaterials 
We are unlocking the 
chemistry of trees 
and aligning with the 
circular economy by 
establishing a strong 
position in adjacent 
businesses including: 
nanocellulose, Furfural, 
lignosulphonates, and 
bioenergy. Extracting 
more value from each 
tree is at the core of 
our business model.
Manufacturing 
excellence
We focus on enhancing 
machine efficiencies, 
digitising our processes 
to make the smart 
factory a reality, reducing 
variable costs through 
new practices in 
logistics and 
procurement, as well as 
implementing go-to-
market strategies, which 
lower the cost of serving 
our customers and 
increase customer 
satisfaction.
Forests
Our Forest Stewardship 
Council™ (FSC™ 
N003159) and 
Programme for the 
Endorsement of Forest 
Certification (PEFC/01-
44-43) certified tree 
plantations in South 
Africa provide a 
high-quality woodfibre 
base and enhance our 
competitive advantage. 
Our leading-edge tree 
improvement 
programmes ensure this 
advantage is maintained 
and leveraged.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
2
Sappi 2023 Group Sustainability Report

About this report
Scope of this report
This report is aligned with our Annual 
Integrated Report and covers the period 
from the beginning of October 2022 to the 
end of September 2023. We report on a 
regional and global basis, wherever 
possible presenting data over five years to 
make the information relevant, accessible 
and comparable. Commentary is provided 
on graphs to enhance understanding and 
specific measurement criteria – as well as 
instances where these have changed – are 
clearly spelled out.
Reporting framework
As Sappi Limited is headquartered in South 
Africa and we have our primary listing on the 
JSE, we abide by the King IV Report on 
Corporate Governance™ for South Africa, 
2016 
 (King IV)1. Our Annual Integrated 
Report provides a very clear link between 
sustainability and strategy and sets out how 
we create stakeholder value in a sustainable 
manner.
Aligning with the GRI
This report has been prepared in line with the 
GRI (Global Reporting Initiative) standards in 
terms of the core option. The relevant 
indicators can be found in our interactive 
GRI index.
Determining materiality
We consider material matters to be those 
matters that could facilitate or inhibit our 
Thrive strategy and that could substantively 
affect – either positively or negatively – our 
ability to create stakeholder value over the 
short, medium and long term. For some time 
now, we have been increasingly incorporating 
the principle of double materiality into our 
reporting as set out for each material issue.
The information presented has been 
determined on the basis of our ongoing 
extensive engagement with our stakeholders 
and has been assessed against the backdrop 
of current business operations, as well as the 
opportunities, challenges and prevailing trends 
in our industry and the global economy within 
the context of the global forces shaping our 
world. In preparing this report, we have tracked 
environmental findings and research, public 
opinion, employee views and attitudes, the 
interests and priorities of environmental and 
social groups, as well as the activities, profiles 
and interests of our various stakeholders.
While we do cover economic (Prosperity) 
issues to some extent, these are dealt with in 
greater detail in our Annual Integrated Report. 
We aim to present information that is material, 
accurate, comparable, relevant and complete. 
The information presented covers topics and 
indicators that reflect our significant economic, 
environmental and social impacts, as well as 
issues that would substantively influence the 
assessments and decisions of stakeholders.
Identifying stakeholders
We have identified the stakeholders we expect 
to use our report on the basis of our ongoing 
engagement, both formal and informal, with 
them. The various ways in which we engage 
our stakeholders are set out in Our key 
relationships. The stakeholders we expect to 
use this report include investors, employees, 
communities and all those who are affected 
by our activities.
Note
The 2023 regional sustainability report for 
SNA, as well as our corporate citizenship 
report for SSA will be published on  
www.sappi.com 
 in 2024.
External assurance
In 2023 we obtained external limited assurance 
on selected sustainability key performance 
indicators (KPIs) in this report (please refer to the 
Independent Auditors Limited Assurance 
Report on Selected Key Performance Indicators 
on pages 
 4 and 5).
Assured data (Sappi group)
Total specific GHG emissions  
(Scope 1 and 2) (kgCO2e/adt)
944.0LA
Total specific solid waste to landfill 
(on site and off-site) (kg/adt) 
73.6LA
Share of certified fibre (%) 
75LA
Specific process water usage in 
South Africa (m3/adt) 
48.4LA
Employee (own)  
LTIFR (rate)
0.28LA
Contractor LTIFR (rate)
0.22LA
LA: Limited assurance provided by KPMG.
External reviews of our 
sustainability performance
We report to the Carbon Disclosure Project 
(CDP) (www.cdp.net/en) 
 under its climate, 
forests and water programmes.
All three regions – Sappi Europe, Sappi North 
and Sappi Southern Africa – achieved a 
Platinum medal in FY2022/3
1 	 Copyright and trademarks are owned by the Institute 
of Directors in South Africa NPC and all of its rights are 
reserved.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
3
Sappi 2023 Group Sustainability Report

Independent Auditors Limited Assurance Report on Selected Key 
Performance Indicators
To the Directors of Sappi Limited
Report on Selected Key Performance 
Indicators
We have undertaken a limited assurance 
engagement on selected key performance 
indicators (KPIs), as described below, and 
presented in the 2023 Group Sustainability 
Report of Sappi Limited (Sappi) for the year 
ended 30 September 2023 (the Report). 
This engagement was conducted by a 
multidisciplinary team including health, safety, 
social, environmental and assurance 
specialists with relevant experience in 
sustainability reporting.
Subject Matter
We have been engaged to provide a limited 
assurance conclusion in our report on the 
following selected KPIs, and marked with a 
‘LA’ on the relevant pages in the Report. 
The selected KPIs described below have 
been prepared in accordance with the 
Global Reporting Initiative Sustainability 
Reporting Standards (“GRI Standards”), 
supported by Sappi’s internally developed 
guidelines (collectively referred to as 
“Sappi’s reporting criteria”).
Directors’ Responsibilities 
The Directors are responsible for the 
selection, preparation, and presentation 
of the selected KPIs in accordance with the 
accompanying Sappi reporting criteria. This 
responsibility includes the identification of 
stakeholders and stakeholder requirements, 
material issues, commitments with respect 
to sustainability performance and design, 
implementation, and maintenance of 
internal control relevant to the preparation 
of the Report that is free from material 
misstatement, whether due to fraud or 
error. The Directors are also responsible 
for determining the appropriateness of the 
measurement and reporting criteria in view 
of the intended users of the selected KPIs 
and for ensuring that those criteria are 
publicly available to the Report users.
Inherent Limitations
The Greenhouse Gas (GHG) emission 
quantification is subject to inherent 
uncertainty because of incomplete scientific 
knowledge used to determine emissions 
factors and the values needed to combine 
emissions of different gases.
Our Independence and Quality 
Management
We have complied with the independence 
and other ethical requirements of the Code 
of Professional Conduct for Registered 
Auditors issued by the Independent 
Regulatory Board for Auditors (IRBA Code), 
which is founded on fundamental principles 
of integrity, objectivity, professional 
competence and due care, confidentiality, 
and professional behaviour. The IRBA Code is 
consistent with the corresponding sections 
of the International Ethics Standards Board 
for Accountants’ International Code of Ethics 
for Professional Accountants (including 
International Independence Standards).
KPMG Inc. applies the International Standard 
on Quality Management 1, which requires the 
firm to design, implement and operate a 
system of quality management including 
policies or procedures regarding compliance 
with ethical requirements, professional 
standards, and applicable legal and 
regulatory requirements.
Auditor’s Responsibility
Our responsibility is to express a limited 
assurance conclusion on the selected KPIs 
based on the procedures we have performed 
and the evidence we have obtained. We 
conducted our assurance engagement in 
accordance with the International Standard 
on Assurance Engagements (ISAE) 3000 
(Revised), Assurance Engagements 
other than Audits or Reviews of Historical 
Financial Information, and in respect to the 
greenhouse gas emissions, in accordance 
with the International Standard on Assurance 
Assured data (Sappi group)
Category
Selected KPIs
Scope of Coverage
Environmental
• Total specific GHG emissions (Scope 1 and 2) 
(kgCO2e/adt)
• Total specific solid waste to landfill (on-site 
and off-site) (kg/adt)
• Share of certified fibre (%)
Sappi Global (Total Group)
• Specific process water usage in South Africa 
(m3/adt)
Sappi Southern Africa
Safety
• Employee (Own) LTIFR (rate)
• Contractor LTIFR (rate)
Sappi Global (Total Group)
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
4
Sappi 2023 Group Sustainability Report

Independent Auditors Limited Assurance Report on Selected Key 
Performance Indicators continued
Engagements 3410 (ISAE 3410), 
Assurance Engagements on Greenhouse 
Gas Statements, issued by the International 
Auditing and Assurance Standards Board. 
These Standards require that we plan and 
perform our engagement to obtain limited 
assurance about whether the selected KPIs 
are free from material misstatement.
A limited assurance engagement undertaken 
in accordance with ISAE 3000 (Revised) and 
ISAE 3410 involves assessing the suitability 
in the circumstances of Sappi’s use of its 
reporting criteria as the basis of preparation 
for the selected KPIs, assessing the risks of 
material misstatement of the selected KPIs 
whether due to fraud or error, responding 
to the assessed risks as necessary in the 
circumstances, and evaluating the overall 
presentation of the selected KPIs.
A limited assurance engagement is 
substantially less in scope than a reasonable 
assurance engagement in relation to both 
risk assessment procedures, including 
an understanding of internal control, and 
the procedures performed in response to 
the assessed risks. The procedures we 
performed were based on our professional 
judgement and included inquiries, 
observation of processes followed, 
inspection of documents, analytical 
procedures, evaluating the appropriateness 
of quantification methods and reporting 
policies, and agreeing or reconciling with 
underlying records.
Accordingly, for the KPIs where limited 
assurance was obtained, we do not express a 
reasonable assurance opinion about whether 
Sappi’s selected KPIs have been prepared, in 
all material respects, in accordance with the 
accompanying Sappi reporting criteria.
Given the circumstances of the engagement, 
in performing the procedures listed above we:
•	 Interviewed management to obtain an 
understanding of the internal control 
environment, risk assessment process 
and information systems relevant to the 
sustainability reporting process;
•	 Inspected documentation to corroborate 
the statements of management in our 
interviews;
•	 Tested the processes and systems to 
generate, collate, aggregate, monitor and 
report the selected KPIs;
•	 Performed a controls walkthrough of 
identified key controls;
•	 Inspected supporting documentation on 
a sample basis and performed analytical 
procedures to evaluate the data generation 
and reporting processes against the 
reporting criteria;
•	 Evaluated the reasonableness and 
appropriateness of significant estimates 
and judgements made by the directors in 
the preparation of the selected KPIs; and
•	 Evaluated whether the selected KPIs 
presented in the Report are consistent with 
our overall knowledge and experience of 
sustainability management and performance 
at Sappi.
The procedures performed in a limited 
assurance engagement vary in nature 
and timing and are less in extent than for 
a reasonable assurance engagement. 
As a result, the level of assurance obtained 
in a limited assurance engagement is 
substantially lower than the assurance that 
would have been obtained had we 
performed a reasonable assurance 
engagement. Accordingly, we do not 
express a reasonable assurance opinion 
about whether Sappi’s selected KPIs have 
been prepared, in all material respects, in 
accordance with the accompanying Sappi 
reporting criteria.
Limited Assurance Conclusion
Based on the procedures we have performed 
and the evidence we have obtained and 
subject to the inherent limitations outlined 
elsewhere in this report, nothing has come 
to our attention that causes us to believe 
that the selected KPIs as set out in the 
Subject Matter paragraph above for the year 
ended 30 September 2023 are not prepared, 
in all material respects, in accordance with 
the accompanying Sappi reporting criteria.
Other Matters
The maintenance and integrity of Sappi’s 
website is the responsibility of Sappi 
management. Our procedures did not 
involve consideration of these matters and, 
accordingly, we accept no responsibility for 
any changes to either the information in the 
Report or our independent limited assurance 
report that may have occurred since 
the initial date of its presentation on 
Sappi website.
Restriction of Liability
Our work has been undertaken to enable us 
to express a limited assurance conclusion 
on the selected KPIs to the Directors of 
Sappi in accordance with the terms of our 
engagement, and for no other purpose. We 
do not accept or assume liability to any party 
other than Sappi, for our work, for this report, 
or for the conclusion we have reached.
KPMG Inc.
Registered Auditor
Per G Aldrighetti
Chartered Accountant (SA)
Registered Auditor
Director
14 December 2023
KPMG Crescent
85 Empire Road
Parktown, Johannesburg
2193
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
5
Sappi 2023 Group Sustainability Report

UNIQUE
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
6
Sappi 2023 Group Sustainability Report

Enhancing trust  
As we work to build a thriving world by unlocking the power of renewable 
resources to benefit people, communities, and the planet, we need to do 
so from a foundation of trust. This foundation is reinforced by our robust 
sustainability governance structure:
Regional Sustainable Councils (RSCs), in Europe, North America and South Africa, are responsible for 
establishing and implementing our on-the-ground sustainability strategy. Their work is overseen and reviewed 
by the Group Sustainable Development Council (GSDC). The GSDC reviews key trends and developments 
together with strategy and implementation and makes recommendations that are fed through to the Social, 
Ethics, Transformation and Sustainability (SETS) Committee and ultimately, to the Sappi Limited board. The 
SETS Committee relies on international best practice as well as the laws and regulations under which Sappi’s 
businesses operate to ensure that the group not only complies with, but also fully implements, all 
requirements. The committee addresses issues relating to corporate social investment, ethical conduct, 
diversity, transformation and empowerment initiatives and targets and ongoing sustainability practices. The 
responsibilities include monitoring the company’s activities, having regard to any relevant legislation, other 
legal requirements and prevailing codes of best practice.
Governance
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
7
Sappi 2023 Group Sustainability Report

Governance continued
The SETS Committee has an independent role 
with accountability to the board and is 
comprised of a majority of independent 
non-executive members, whose duties are 
delegated to them by the board of directors in 
compliance with a board-approved terms of 
reference. The role of the SETS Committee, 
together with the Audit and Risk Committee, 
is to assist the board with the oversight of 
sustainability issues within the company and 
to provide guidance to management’s work in 
respect of its duties.
The Chairman of the SETS Committee has 
served as the President of the International 
Union for the Conservation of Nature; 
Chairman of the UN Commission for 
Sustainable Development; Chairman of 
WWF(SA) and currently serves as the deputy 
chair of the South African President’s Climate 
Change Commission.
 
Sappi Limited board 
Sappi Limited board Executive and Management Committee
Group Sustainable Development Council (GSDC)
Executive and Management Committee
Regional Sustainability Council
Sustainability ambassadors in SEU and SNA and brand ambassadors in SSA
Employees help to integrate sustainability into our everyday business activities
Our sustainability governance structure
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
8
Sappi 2023 Group Sustainability Report

PRECISION
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
9
Sappi 2023 Group Sustainability Report

10
Sappi 2023 Group Sustainability Report
Performance against our global and regional targets
The United National Sustainable 
Development Goals (UN SDGs) 
inspire us all to strive for a better 
future, setting out a roadmap for 
where we collectively need to go 
and how to get there.
We have identified seven priority goals at global 
level – and a further two in South Africa – where 
we believe we can make the most impact and 
where we are concentrating our efforts.
Our performance against our global and regional 
targets is set out on the following pages.
Key
Performance against our 2023 targets
Satisfactory performance
Progress to be made
Unsatisfactory performance
 Global
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Reduce specific process water use by 
23%1 (m3/adt)
44.5m3/adt
41.2m3/adt
48.4m3/adtLA
1	 This target applies to mills in South Africa, as they are at risk of experiencing operational water challenges.
Ensure availability and sustainable management of water and sanitation for all 
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS

11
Sappi 2023 Group Sustainability Report
Performance against our global and regional targets continued
SEU
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Increase share of renewable 
and clean energy by 
11 percentage points
39.4%
44.2%
48.6%
Decrease specific total 
energy by 5%
15.5
15.1
19.2
SSA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Increase share of renewable 
and clean energy by 
7 percentage points
44.1%
49.6%
50.3%
Decrease specific total 
energy by 9%
30.9GJ/adt
29.1GJ/adt
33.2GJ/adt
SNA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Increase share of renewable 
and clean energy by within 5% 
of baseline (81.7%) or higher
81.7%
>76.7%
78.2%
Decrease specific total 
energy by 5%
25.7GJ/adt
24.9GJ/adt
27GJ/adt
 Global
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Increase share of renewable 
and clean energy by 
8 percentage points
53.5%
58.6%
57.9%
Decrease specific total 
energy by 5%
22.1GJ/adt
21.5GJ/adt
26.2GJ/adt
Ensure access to affordable, reliable, sustainable and modern energy for all 
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS

12
Sappi 2023 Group Sustainability Report
Global
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Achieve zero workplace 
injuries (LTIFR) own employees 
and contractors
0.54
0.32
0.24
Increase proportion of 
women in management 
roles by 3.7 percentage points
19.3%
22%
22%
80% share of procurement 
spend with declared 
compliance with Supplier 
Code of Conduct
0%
75%
81%
Participation in employee 
engagement survey to be 
above 85%
90%
>85%
94%
Percentage of staff engaged 
with our business ≥75%1
n/a
>75%
80.3%
 Return on capital employed 
(ROCE) to be 2% points above 
the weighted average cost of 
capital (WACC)
11.5%
15.6%
12.3%
1	  Note that this target has been revised across all regions, because we appointed a new service provider in FY2021 to 
assess employee engagement and the framing of the questions is now different.
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all  
SEU
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Achieve zero workplace 
injuries (LTIFR) own 
employees and contractors
0.98
0.59
0.40
Increase proportion of 
women in management 
roles by 5.8 percentage points
13.7%
17.5%
16.0%
80% share of procurement 
spend with declared 
compliance with Supplier 
Code of Conduct
0%
80%
84%
Participation in employee 
engagement survey to be 
above 85%
96%
>85%
90.6%
Percentage of staff engaged 
with our business ≥75%
n/a
>75%
79.9%
Return on net operating 
assets (RONOA) to be 
2 percentage points above 
WACC
6.7%
8.7%
0.3%
Performance against our global and regional targets continued
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Sappi 2023 Group Sustainability Report
SNA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Achieve zero workplace 
injuries (LTIFR) own 
employees and contractors
0.25
0.34
0.14
Increase proportion of women 
in management roles by 
4 percentage points
19%
21%
21%
80% share of procurement 
spend with declared 
compliance with Supplier 
Code of Conduct
0
75%
85%
Participation in employee 
engagement survey to be 
above 85%
68%
>85%
92%
Percentage of staff engaged 
with our business ≥75%
n/a
>75%
72%
Return on net operating 
assets (RONOA) to be 
2 percentage points above 
WACC
1.8%
14.3%
12.6%
Performance against our global and regional targets continued
SSA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Achieve zero workplace 
injuries (LTIFR) own 
employees and contractors
0.45
0.26
0.22
Increase proportion of women 
in management roles by 
3.1 percentage points
18.9%
26%
27.2%
80% share of procurement 
spend with declared 
compliance with Supplier 
Code of Conduct
0%
60%
55%
Participation in employee 
engagement survey to be 
above 85%
93%
>85%
98.1%
Percentage of staff engaged 
with our business ≥75%
76%
>75%
83.4%
Return on net operating 
assets (RONOA) to be 
2 percentage points above 
WACC
14.3%
12.0%
11.9%
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all  
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Sappi 2023 Group Sustainability Report
 Global
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Launch 25 products with 
defined sustainability benefits
0
7
6
Reduce total specific solid 
waste to landfill (on-site and 
off-site) (kg/adt)   
65.1kg/adt
52.2kg/adt 
73.6kg/adtLA
SEU
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Launch 15 products with 
defined sustainability benefits
0
3
3
Reduce specific landfilled 
solid waste by 5% (kg/adt)
11.8kg/adt
11.5kg/adt
12.7kg/adt
Performance against our global and regional targets continued
SNA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Launch 5 products with 
defined sustainability  
benefits
0
3
2
Reduce specific landfilled 
solid waste by 10%
76kg/adt
71.4kg/adt
113.6kg/adt
SSA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Launch 5 products with 
defined sustainability benefits
0
1
1
Reduce specific landfilled 
solid waste by 24%
153kg/adt
101.8kg/adt
106.5kg/adt
Promote sustainable growth 
in our plantations > 4 (Annual 
growth in million tons)
3.96
>4.0
4.25
Ensure sustainable consumption and production patterns 
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Sappi 2023 Group Sustainability Report
 Global
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Total specific GHG emissions 
(Scope 1 and 2) (kgCO2e/adt)   
893.3
kgCO2e/adt
814.6
kgCO2e/adt
944.0LA
kgCO2e/adt
SEU
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Decrease specific GHG 
(Scope 1 and 2) emissions 
by 25%
698.0
kgCO2e/adt
630.5
kgCO2e/adt
625.4
kgCO2e/adt
Performance against our global and regional targets continued
SNA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Decrease specific GHG 
(Scope 1 and 2) emissions  
by 5%
423.5
 kgCO2e/adt
410.8
 kgCO2e/adt
439.4
 kgCO2e/adt
SSA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Decrease specific GHG 
(Scope 1 and 2) emissions 
by 20%
1,708.5
 kgCO2e/adt
1,487.9
 kgCO2e/adt
1,715.9
 kgCO2e/adt
Decrease specific purchased 
fossil energy by 21%
17.3GJ/adt
14.7GJ/adt
16.5GJ/adt
Take urgent action to combat climate change and its impacts 
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Sappi 2023 Group Sustainability Report
 Global
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Share of certified fibre >75%*
75%
>75%
75%LA
*	  The quantity of the total certified chips procured by Matane Mill is incomplete. Consequently the certified fibre 
procurement percentage is lower and is expected to increase as all suppliers confirm their deliveries. 
SEU
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Share of certified fibre >78%
78%
>78%
86%
Performance against our global and regional targets continued
SNA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Share of certified fibre >55%
55%
>55%
55%
% certified fibre – Chain of 
Custody (CoC) purchased pulp
100
100
100
Share of certified fibre – 
wood and chips only 
46
>47
51%
SSA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Share of certified fibre 
>82%
82%
> 82%
83%
Enhance biodiversity in 
conservation areas by 10%
0
Start verifying
 improvements
7% 
Improvement
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat 
desertification and halt and reverse land degradation and halt biodiversity loss 
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Sappi 2023 Group Sustainability Report
SSA
Thrive target
2019 
base
2023 
target
2023 
performance
Assessment of 
performance
Advance broad-based black economic empowerment (BBBEE)  to Level 1
Level 2
Level 1
Level 1
Performance against our global and regional targets continued
Additional priority SDGs in SSA
End poverty in all its forms everywhere 
Ensure inclusive and equitable quality education and promote 
lifelong learning opportunities for all
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Our people indicators continued
WISDOM
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Sappi 2023 Group Sustainability Report

Message from our leaders
Dear stakeholders
In the past year, the world was once again 
buffeted by various shock waves, from the 
lingering after-effects of Covid-19 to 
geopolitical confrontation, economic downturns 
in previously robust economies, extreme 
weather events and growing pressure from 
climate change impacts, as well as a cost-of-
living crisis. The latter was ranked by the World 
Economic Forum’s 2023 Global Risks Report as 
the world’s most significant short-term risk and 
an issue that is, to a large extent, responsible for 
a decline in human development after decades 
of progress.  
This is a challenge for all responsible 
businesses across the world. Sappi is working 
hard to play our part and shape a more secure 
future.  
For example, recognising that the climate 
transition is going to involve deep systemic 
changes in the way we run our lives and do 
business, we have established a wide-reaching 
science-based decarbonisation roadmap.   
Climate transition is not just an environmental 
challenge. It is also linked to social problems, 
biodiversity loss and ecosystem decline. As a 
company based on the power of renewable 
natural resources, this has particular relevance 
for Sappi. For some years now, we have aligned 
with the strategic recommendations of the Task 
Force on Climate-related Financial Disclosures 
(TCFD). This has enabled us to incorporate 
climate-related risks and opportunities into 
our risk management, strategic planning and 
decision-making processes better. We will 
also be aligning with the recently published 
recommendations of the Taskforce on 
Nature-related Financial Disclosures (TNFD), 
which is based on the view that nature-related 
risks are a reality today in the cash flows and 
balance sheets of business and in the capital 
allocation portfolios of financial institutions.
Agriculture, forestry and other land uses were 
responsible for 22% of global greenhouse-gas 
emissions in 2019, of which approximately half 
were attributable to deforestation. By keeping 
our woodfibre supply chains deforestation-
free, we are helping to mitigate global warming. 
The trees in the plantations and forests from 
which we source woodfibre also play a role in 
this by sequestering carbon.
In terms of social issues, opening up avenues 
of opportunity for sustainable livelihoods is the 
best way to build our climate resilience. We 
continue to do so through our expanding 
enterprise and supplier development (ESD) 
programme in South Africa which incorporates 
our Sappi Khulisa initiative. Shortly after 
year-end, the Sappi Khulisa team was 
recognised for their excellent work by being 
awarded the Trialogue Strategic CSI Award. 
Starting back in 1983 with only three 
participants as a small corporate social 
investment (CSI) outreach programme and 
known then as Project Grow, the initiative has 
matured into an integral, thriving division in 
our forestry supply chain which today assists 
more than 4,000 forestry growers to establish 
meaningful livelihoods by gaining access to the 
important forestry value chain in South Africa.
We are also playing a role in the South African 
Government’s Just Transition Framework, 
which aims to minimise the social and 
economic impacts of the climate transition and 
to improve the livelihoods of those most 
vulnerable to climate change. 
The first-ever Global Stocktake – an 
assessment of progress made toward 
mitigating global warming since the Paris 
Agreement in 2015 – found that the world is 
not on track to achieve the goals set out in 
Paris in 2015. As evidenced by our 
commitment to UN SDG17: Partnerships for 
the Goals, we believe in the power of 
collaboration and collective action and we look 
forward to the discussions and debate at 
COP28.
Turning to the UN SDGs, while they are all 
important, some are more relevant to our 
business than others. Accordingly, we have 
prioritised certain SDGs and established global 
and regional targets aligned to these. We 
continue to report transparently on progress 
– or lack thereof – against these. 
Despite the global challenges facing our world, 
there is still a window to work together in a 
social compact to craft a more secure future.
Valli Moosa
Chairman
Social, Ethics, Transformation and
Sustainability (SETS) Committee
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Sappi 2023 Group Sustainability Report

Dear stakeholders
SDG17: Partnerships for the Goals is one of 
our priority UN SDGs. It aligns with our strategic 
intent and brand values of collaboration and 
partnerships. Together we achieve more whether 
at the company level through innovative products 
and services or at industry and organised 
business levels delivering systemic and structural 
solutions. We engage across all stakeholder 
groupings to shape our response to our rapidly 
changing operating environment. Our actions 
move us towards our purpose of building a 
thriving world by unlocking the power of 
renewable resources to benefit people, 
communities and the planet.
Our employees’ engagement with and 
commitment to our purpose meant that despite 
the headwinds we experienced in FY2023 
including geopolitical instability and weak global 
economic growth, we achieved some significant 
milestones. 
Importantly, given the emphasis we place on our 
core value of safety, we achieved our best-ever 
safety performance. Our belief that no work is so 
important that it cannot be done safely continues 
to gain traction across all regions. So too, is our 
culture of striving for zero incidents and accepting 
personal responsibility based on a healthy 
workforce working under safe conditions, with the 
necessary skills and comprehensive training. 
Understanding how strong our employees’ 
connection is to our strategic direction is 
important for our ongoing success. Accordingly, 
we hold an employee engagement survey 
conducted by an independent third-party service 
provider every second year. I’m pleased to report 
that participation in our FY2023 survey increased 
significantly and that engagement levels 
improved across all regions. We take issues, that 
are identified during the course of the survey, 
very seriously and our central action tracker 
provides regular updates on the action items 
identified. We continue to shape our employees’ 
personal and career development through 
training opportunities and personal development 
opportunities. 
Despite the challenges of the past year, we 
continued our commitment to our communities, 
making a positive difference in terms of social 
impact.
As regards our commitment to drive Prosperity, 
while we did not achieve the record-breaking 
EBITDA of FY2022 (the highest in the past 
30 years), the South African business delivered 
record EBITDA (in ZAR) and North America the 
second highest-ever EBITDA. In addition, the 
group generated significant cash which enabled 
a further reduction of net debt at year-end to 
US$1,085 million, the lowest level in 30 years. 
We maintained our focus on making the most 
of every tree harvested. Biotech initiatives 
continued to gain traction and we made good 
strides in positioning our dissolving pulp brand, 
Verve, as the industry standard.
Tough times necessitate tough decisions. To 
reduce our exposure to declining graphic paper 
markets in Europe, we made the difficult decision 
to close Stockstadt Mill in Germany and initiated 
a consultation process for the potential closure 
of Lanaken Mill in Belgium shortly after year-end.
In terms of the Stockstadt Mill consultation 
process, a social plan for the employees has 
been agreed. In addition, an agreement has been 
signed for the sale of the site. We expect the 
closure of the Stockstadt Mill site to be 
completed during the first calendar quarter 
of 2024. 
Agility is embedded in our DNA and we 
demonstrated this by curtailing production in 
response to constrained operating conditions. 
This had the consequence of causing us to 
fall short of our Planet-related targets. 
However, there were some bright spots. 
These included increased use of renewable 
energy in SEU and SSA. In addition, our 
ongoing high use of renewable energy in 
SNA gives us an important competitive 
advantage. Our ZAR7.7 billion capacity 
expansion and environmental improvement 
project at Saiccor Mill, officially opened by 
South African President Cyril Ramaphosa in 
September 2022, has also yielded positive 
environmental impacts. We are determined to 
continue our science-based targets journey 
and remain steadfast in our commitment to 
meet and surpass all our Thrive sustainability 
goals as we continue to play our part in 
building a biobased circular economy.
This is a journey we did not embark on alone. 
As we move boldly into FY2024, we will once 
again be counting on the innovation and 
expertise of our extraordinary people to 
drive value creation across every aspect 
of our business.
Steve Binnie
Chief Executive Officer
Sappi Limited
Message from our leaders continued
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Sappi 2023 Group Sustainability Report

Our key relationships continued
COMMUNITY
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Sappi 2023 Group Sustainability Report

Highlights in FY2023
•	 Actively engaged in the projects of the Forest Solutions Group of the 
World Business Council on Sustainable Development (WBCSD) which 
we joined in FY2022
•	 Ongoing levels of involvement in strategic initiatives for our industry such 
as the World Resources Institute’s GHG Protocol Carbon Removals 
and Land Sector Initiative Project which benefit the forestry industry as 
a whole
•	 Sappi SA launched the Sappi Chair in Climate Change and Plantation 
Sustainability at the University of the Witwatersrand in Johannesburg, 
South Africa
•	 Under the auspices of Business Leadership South Africa, our group CEO 
joined CEOs from over 115 of South Africa’s leading corporations in 
signing a pledge committing to help achieve sustainable, inclusive 
economic growth in South Africa 
•	 Sappi’s Cloquet Mill was the recipient of the American Forest & Paper 
Association’s (AF&PA) 2023 Leadership in Sustainability Award for 
Water Management as part of its Better Practices, Better Planet 2030 
Sustainability Awards programme 
•	 SNA won two Gold Awards in the MUSE Creative Awards – one for our 
Somerset Mill video in the Branded Content – Recruitment category which 
focused on dispelling outdated perceptions of the paper industry and 
another for the Ideas that Matter grant programme in the Corporate 
Responsibility category. The latter programme also won a Seal award
•	 Shortly after year-end, Volume 7 of The Standard, a Sappi publication 
won Gold in the print promotion category of the Graphis 2024 design 
awards
•	 Again after year-end, our key enterprise and supplier development (ESD) 
programme, Sappi Khulisa was awarded the Trialogue Strategic CSI Award
•	 Our LinkedIn community has grown to over 200,000 followers
•	 First-ever global forestry research review attended by participants in all 
regions
•	 Launch of Group Water Stewardship policy, Global Product Safety 
policy and revised Group Human Rights policy.
Our overarching aim 
                   is to partner proactively with our
                           stakeholders 
           as we unlock the power of trees
             and their limitless potential to
                     accelerate the solutions a 
                   thriving world
                          requires.
 Our key 
relationships
	https://www.un.org/sustainabledevelopment/news/communications-material/
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Sappi 2023 Group Sustainability Report

Our key relationships continued
Our overarching aim is to partner proactively 
with our stakeholders as we unlock the power 
of trees and their limitless potential to 
accelerate the solutions a thriving world 
requires. In addition to responsiveness, our 
approach to engagement is based on the 
principles of inclusivity, materiality, relevance 
and completeness. 
We establish and maintain proactive dialogue 
with our stakeholders. In doing so we 
recognise that stakeholder needs are dynamic 
and that we need to challenge the status quo 
and be responsive to an evolving stakeholder 
landscape. 
In determining those issues most material to 
our stakeholders, as set out in this report, we 
have intensified our focus on the impact of our 
activities on people and the planet, in addition 
to enterprise value and in line with double 
materiality.
We assess the quality of our relationships both 
informally, as set out on the following pages, 
and formally, through regular employee 
engagement and customer surveys, 
community forums and Greenlight Movement 
community surveys in South Africa. 
Our stakeholder work is aligned to the 
governance framework of King IV namely 
performance and value creation, adequate 
and effective controls and trust, as well as 
reputation, legitimacy and ethics.
A thriving world is not possible without an 
ethical culture underpinning our everyday 
activities. Accordingly, we train our employees, 
customers and suppliers on our Code of Ethics 
and promote awareness of the Sappi Hotlines 
in each region which allow all stakeholders to 
report breaches of the Code in full 
confidentiality. 
We regularly review our activities in terms of 
the OECD Anti-Bribery Convention and the 
Convention’s 2021 Anti-Bribery 
Recommendation, particularly Section VII of 
the OECD Guidelines for Multinational 
Enterprises dealing with Combatting Bribery, 
Bribe Solicitation and Extortion. No issues have 
been raised in Sappi with regards to 
compliance with the Convention and 
Guidelines either externally or internally. In 
FY2023, we also assessed the countries in 
which we operate according to the Corruption 
Perception Index 2022 which ranks 180 
countries and territories by their perceived 
levels of public sector corruption. The index 
draws on 13 expert assessments and surveys 
of business executives. None of the countries 
in which we operate are below the average 
global score.
Employees
Unions
Customers and partners
Communities and neighbours
Industry bodies, related 
memberships and organised 
business
Shareholders, bondholders  
and banks
Suppliers and contractors
Government and regulatory 
bodies
Civil society and media
Our stakeholder engagement is also guided by 
our work towards the realisation of the United 
Nations Sustainable Development Goals 
(UN SDGs), in particular our priority SDGs. 
We have a long-standing membership of the 
United Nations Global Compact (UNGC) which 
we joined in 2008. The importance of this is 
demonstrated by the fact that over the last 
20 years, the UNGC has grown from a group 
of 44 businesses into the world’s largest 
corporate sustainability initiative and a global 
movement of more than 17, 000 businesses 
and 3, 000 non-business stakeholders across 
160 countries.
	Read more: Ethical behaviour and 
compliance 
United Nations Global Compact (UNGC) 
Principle 10: Businesses should work 
against corruption in all its forms, 
including extortion and bribery.
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Sappi 2023 Group Sustainability Report

Employees
Why we engage 
As we position Sappi to be future-fit, 
in our task is to meet the changing 
needs of every Sappi employee 
within a diverse, inclusive, safe 
workplace where they can develop 
their full personal and career 
potential. We recognise that our 
wellbeing and financial prosperity 
are inextricably linked to our 
employees and the communities in 
which we operate.
Self-assessment of quality of relationships: 
Good 
Grow our business
Sustain our financial health
Drive operational excellence
Enhance trust
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Sappi 2023 Group Sustainability Report

Employees continued
Shared priorities
Our response
A safe  
workplace
•	 The theme for the Global Safety Month was ‘Safety Starts with Me’, emphasising personal safety and responsibility
•	 Involving our people in health and safety aligns with our collaborative approach to doing business. Health and safety committees are in place 
at all our operations. Through these committees, our people are consulted about the development/review of policies and procedures and 
changes that affect workplace safety or health as follows:
	– In SEU, formal health and safety committees are in place at different levels of the business in line with statutory requirements. 
All employees are represented by the safety committees
	– In SNA, all unions can participate in joint management-worker safety committees
	– In SSA, (including Sappi Limited), health and safety representatives are elected from non-supervisory staff. In line with legislation, there is 
one representative for every 50 workers
	– Sappi Trading does not have formal joint management-worker health and safety committees due to the small size of the offices, but there 
are appointed safety officers.
	Read more: Employee and contractor safety
Focused wellness  
and wellbeing
•	 Wellbeing and wellness programmes are tailored to the needs of each region
•	 In SSA, our HIV/Aids programme provides support for employees and contractor employees. In this region, we also work with Government 
in terms of community health programmes.
Effective  
recognition  
programmes
Our recognition programmes include:
Sappi Limited
•	 Technical Innovation Awards
•	 CEO Thrive Award
•	 Long-service awards.
SEU 
•	 Long-service awards.
SNA 
•	 TOUTS Recognition Awards – a peer-to-peer recognition 
programme. Employees can nominate each other in various 
categories (team player; outstanding performance; unique 
involvement in community affairs; taking risk and practising 
ingenuity; safety and sustainability). Peer recognition averages  
750 per quarter
•	 Periodic regional President’s Awards
•	 Long-service awards.
SSA
•	 Excellence in Achievement Awards (EAA)
•	 Annual safety and environmental awards
•	 CEO award
•	 Long-service awards. 
Sappi Trading
•	 SMART Awards.
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Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Connection with  
Sappi’s strategic goals and  
high levels of engagement
Our group CEO, together with regional CEOs, engage with staff regarding company performance at the end of each quarter.
Targeted communication programmes are launched for any major development supporting strategic goals (project launches, M&A activities, 
sale of mills etc).
In SEU regular videos from the CEO are shared with staff and the Sappi Performance Engine approach involves all employees in continuous 
improvement activities.
In SNA, quarterly updates for the entire staff are conducted with questions from the hourly wages group requested before the call. Members of 
the executive lead team visit the sites regularly.
In SSA the Ask Alex initiative continues whereby employees can pose questions to the CEO in person, as he undertakes a roadshow to all 
business units.
We conduct engagement surveys every second year, with the most recent one in 2023.  Results are communicated to staff and workshopped 
with individual teams. A central action tracker facilitates updates on actions items identified in each region in the last survey. A summary of 
themes and progress is provided to senior leadership at least twice annually.
All employees received the engagement survey feedback by region, site and department. Focus groups were conducted and goals on action 
items from the survey were established. 
	Further details on page 74.
“Congratulations on your response rate of 
 
94.24%.  
This is an incredible accomplishment!”
Peter Gray
Associate Vice President McLean,  
the service provider who conducted the employee engagement survey
Employees continued
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Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Training and development  
that benefits Sappi and  
our employees
	Read more: Sappi talent
Promotion of  
our industry
Our employees in each region visit schools and are involved in initiatives which promote career paths within forestry and the pulp and paper 
industry.
SNA participates in the industry-wide USDA Paper and Packaging commodity check-off programme in which an approximate US$20 million 
annual consumer-focused media spend is targeted toward industry sustainability and product renewability.
Employee  
volunteerism
SEU 
Support of various local education, cultural and environmental projects based on annual requests and identified needs. 
Additionally, SEU have focused their efforts on Poland where hundreds of thousands of Ukrainians have found sanctuary. From collecting 
essential goods and supplies to making healthy meals, Sappi employees in the Kraków Shared Service Centre are doing their part to provide 
relief and support. 
SNA
Through the Employee Ideas that Matter (EITM) initiative Sappi provides grants to employees to benefit the non-profit organisations (NPOs) 
about which they are most passionate. The winners share up to US$50,000 in corporate giving to support their selected causes. In 2023, 
support was extended to environmental, healthcare, educational and community-centric spaces. While grants are generally for local causes, 
one was for SeedTree, an NPO located in Nepal whose overarching objective is to install a research/production tree orchard at the Nepal 
Agriculture and Forestry University. This aligns with Sappi SA’s focus on indigenous trees as highlighted in the Sappi Rare, Threatened and 
Endangered Species Stewardship Programme (page 
 168). In 2023, the EITM programme was selected as a winner in the category of 
Community Service and Corporate Social Responsibility in the Communitas Awards.
SSA
Employee wellbeing committees at each mill support local community projects based on annual requests and identified needs as well as 
Mandela Day volunteering initiatives, matched giving and the newly launched Show your Heart programme. This programme gives structure 
to staff involvement in volunteer activities, linking social impact opportunities to business goals, employee talents and community needs. 
Employees continued
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Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Understanding of  
Sappi’s commitment to  
sustainability which  
underpins our strategy
Global 
•	 Targeted internal publications and social media campaigns linked to days like World Environment Day and the International Day of Biodiversity 
enhance understanding of the sustainability landscape and our role in promoting responsible biodiversity initiatives 
•	 In FY2023, knowledge sharing and collaboration in Sappi was supported by a global Forestry Research Review that included participation 
from Sappi operations across the globe, covering the theme of ‘Navigating a sustainable future wood supply’ 
•	 All regions undertake internal sustainability communication campaigns linked to Sappi’s priority SDGs. 
SEU’s Blue Couch series features a series of interviews with speakers from the paper industry who provide insights about new products, 
innovations and sustainability. A recent event examined the potential of a new partnership to bring premium, sustainable metallic effects 
to packaging. 
	https://www.sappi-psp.com/the-blue-couch-series
SNA publishes a comprehensive sustainability report along with a summary overview. Sappi executives speak at prominent sustainability 
conferences like the Sustainable Packaging Coalition. In addition, an active Sustainability Ambassador programme promotes understanding 
and awareness of sustainability-related issues, helping to support communications, training and education on environmental issues including 
energy savings and greenhouse gas (GHG) reductions. 
SSA has launched the ‘8 Earth Saving Rules’ aimed at heightening awareness among employees about preserving and protecting our planet’s 
natural resources.
Employees continued
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Sappi 2023 Group Sustainability Report

Employees continued
Opportunities  
            for   
      value creation
•	 Alignment with our strategic direction enables our 
people to contribute more positively to the 
business as well as their personal and career 
development
•	 By building our human capital base, we establish a 
base of technical skills needed both by Sappi and 
by the industry 
•	 A diverse workforce enhances our ability to service 
global markets and promotes a culture of inclusivity
•	 An increased commitment to safety delivers 
benefits at personal, team and operational levels
•	 By living up to our purpose, we become a more 
attractive employer, particularly to Millennials and 
Gen-Zs
•	 By establishing an ethical culture in which corporate 
citizenship is promoted, we ensure the ongoing 
viability of our business, enhance reputation and 
become an employer of choice.
Challenges  
            for   
      value creation
•	 Recruitment and retention of key skills
•	 Reluctance of younger generations to take up 
employment in the industry
•	 Loss of institutional memory as older employees 
retire.
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Sappi 2023 Group Sustainability Report

Why we engage 
A workplace where people feel they 
have been heard and in which they 
can make a meaningful contribution 
enhances trust, helps to drive our 
safety first culture and enhances 
overall efficiency, productivity and 
stability. Our constructive 
relationships with our employees 
and their representatives are based 
on mutual respect and 
understanding.
Self-assessment of quality of relationships: 
Good 
Drive operational excellence
Enhance trust
Unions
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Sappi 2023 Group Sustainability Report

Unions continued
Shared priorities
Our response
Freedom of 
association, 
collective bargaining  
and disciplined behaviour
Sappi endorses the principles of fair labour practice as entrenched in the UNCG, the UN Guiding Principles and the Universal Declaration of 
Human Rights. At a minimum, we conform to and often exceed labour legislation requirements in countries in which we operate. Protecting the 
right to freedom of association and collective bargaining is fundamental to the way we do business. We engage extensively with representative 
trade unions. Discussions range from remuneration issues, to training and development, health and safety and organisational changes.
Given the complex labour situation in South Africa, we have established several structures to enhance ongoing positive engagement with 
union leadership. This is facilitated by structures such as the National Partnership Forum which includes senior members of management 
and senior union leaders who hold regular meeting where business, safety and union challenges are discussed.
Disciplined behaviour whereby our people abide by our regulations and policies is essential for individual wellbeing, and to achieve our group 
goals and objectives. In each region, disciplinary codes ensure appropriate procedures are applied consistently, while grievance policies entrench 
the rights of employees, including the right to raise a grievance without fear of victimisation, right to seek guidance and assistance from a member 
of the Human Resources (HR) department or their representative at any time and the right to appeal to a higher authority, without prejudice.
	Read more: Labour relations (page 125)
UNGC Principle 3:  
Businesses should uphold freedom of association and the effective recognition of the right to collective bargaining.
Safety and wellness  
initiatives
The health and safety committees at all our operations provide a forum for consultation about the development/review of policies and 
procedures and changes that affect workplace safety or health. Wellness programmes include fitness and medical screening programmes, 
as well as psychological and financial support.
Remuneration,  
working hours and  
other conditions of service
Our labour standards ensure that our remuneration practices are fair, with compensation levels set to reflect competitive market practices 
and internal equity as well as company and individual performance. In rural areas, forest products companies like Sappi are often the only, or 
major, employers which makes the local population very dependent on the company and which could, in turn, lead to exploitative behaviour 
and an indirect form of forced labour. Against this backdrop, in all three regions, labour is sourced on the open market, we pay market-related 
wages in line with or above local legislation and ensure that working conditions are fair.
UNGC Principle 4:  
The elimination of all forms of forced and compulsory labour.
Resolving grievances 
 engaging on strategy 
Engaging on strategy and the  
long-term growth of the company
•	 Well-established grievance channels, disciplinary procedures and whistle-blower protocols provide a non-retributory framework.
•	 We regularly engage with unions on economic conditions, market dynamics and growth plans.
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Sappi 2023 Group Sustainability Report

Opportunities  
            for   
      value creation
•	 Constructive employee/management relations 
enable us to resolve new and difficult labour issues 
as they develop
•	 When employees understand strategic direction 
and operating context, they are more likely to be 
more engaged with Sappi, leading to positive 
benefits all round.
Challenges  
            for   
      value creation
•	 Multi-union landscapes, particularly in 
North America and Europe, add to 
complexities in the labour environment
•	 Lack of employee understanding relative to 
appropriate practices regarding wage and 
benefits.
Unions continued
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Sappi 2023 Group Sustainability Report

Why we engage 
The more closely we engage and 
collaborate with our customers, the 
more likely we are to understand and 
respond to their evolving needs by 
offering relevant solutions in the 
form of sustainable and practical 
products and services.  This 
partnership approach builds the 
loyalty and long-term relationships 
that enable us to thrive. 
Self-assessment of quality of relationships: 
Good 
Grow our business
Sustain our financial health
Drive operational excellence
Enhance trust
Customers and partners
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Customers and partners continued
Shared priorities
Our response
New or enhanced products  
that meet rapidly  
changing market demand
More climate friendly textile solutions 
like Verve for which the bulk of Sappi’s 
dissolving pulp is used
Consumers have become increasingly aware of social and environmental issues and our customers are looking to us for help in this regard. 
Against this backdrop, our Innovation and Sustainability departments enable us to put sustainability at the heart of everything we produce, 
enhances our understanding of our customers’ current and future needs and means we can meet and anticipate those needs.  
Where relevant, we will collaborate with partners and/or conduct research and development (R&D) and develop products to suit customers’ 
specific needs. As an example, although the focus of the current SNA product portfolio is on virgin fibre packaging, R&D has initiated a 
feasibility study into the use of post-consumer fibre (PCF).
	Read more: Innovation and collaboration on page 99.
Events, initiatives  
and conferences to  
encourage the use  
of our paper, packaging  
and biomaterial solutions  
and promote our innovation  
and environmental  
credentials
Trade shows
General 
At the FESPA Global Print Expo 2023, in May we showcased our dye sublimation papers, containerboard and silicone base papers for a variety 
of self-adhesive applications. At Interpak we presented our extensive range of paper and board products, in addition to flexible packaging 
solutions, including barrier papers, wet glue label, containerboard and paperboard. 
Paper and packaging
2022:
October: We presented our creative innovations at LuxePack in Monaco and Pack Expo 2022 in Chicago.
2023:
April and May: We exhibited at LUXE PACK in Shanghai (April) and at the same event in New York (May).
May: We exhibited at Packaging Première in Milan.
September:  Together with Xeikon, we exhibited at the Labelexpo Europe trade show in Belgium. Visitors were given the opportunity to witness 
live printing using Sappi substrates and take samples. 
In the same month, SNA was a sponsor of the Sustainable Packaging Coalition in Boston and was a main stage speaker on the power of woodfibre.
Valida
We promoted the benefits of our fibrillated cellulose Valida as a replacement for microplastics and synthetic ingredients in personal and home 
care products at the in-cosmetics global expo in Spain in March; at the European Coatings show in Germany in March; and at the Cleaning 
Products Europe Conference in The Netherlands in April.
Dye sublimation
We exhibited at both ITMA and Milano Unica in Milan in June and July respectively.
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Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Conferences
We are a regular participant at the AWA (Alexander Watson Associates) Global Release Liner Industry Conference. During this year’s 
conference in Denver in March, we presented on ‘Contributing to the reduction of the carbon footprint for release liners in graphic arts 
applications.  
‘Where Forest meets Fashion’ was the theme of the Sappi stand at the fifth South Africa Investment Conference in Johannesburg in April. 
The theme reflected the ZAR7.7 billion expansion and environmental upgrade project inaugurated in FY2022 by South Africa President Cyril 
Ramaphosa.
At the same time as we launched the Sappi Chair in Climate Change and Plantation Sustainability (see page 
 154), we participated in the 
Forum for Agricultural Research in Africa (FARA), Durban where one of the key topics under discussion was the impact of climate change on 
the African continent and where we had a stand.
In May, we participated in – and were platinum sponsors of – the Sustainable Forestry Initiative® (SFI®) conference in Canada (see page 
 142 
for details).
In September we were a major sponsor of the Sustainable Packaging Coalition conference in Boston where we also exhibited. We also hosted 
an evening social event with customers. Topics under discussion included the upcoming extended producer responsibility (EPR) regulations in 
the US, reusable packaging, cellulose as a material for the future and Sappi’s role in the circular economy.
While not a conference, the official inauguration of the new facilities for reception, storage and handling of biofuels at Kirkniemi in August 2023, 
was attended by the Finnish Minister for Climate and the Environment.
Customers and partners continued
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35
Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Information about  
the fibre sourcing and  
production processes  
behind our brands
Global
•	 At the request of our customers, in all three regions, we participate in EcoVadis and in FY2023, held a platinum rating for all three regions 
•	 We launched a revised Group Product Safety policy which expanded on the previous commitments, specifically with respect to food contact 
packaging applications and training of relevant stakeholders on legislative compliance and relevant hygiene certification requirements 
regarding product safety.
Regional 
•	 At Kirkniemi Mill we hosted customers and other stakeholders at the inauguration of the of the boiler switching from fossil fuels to biomass
•	 Customers generally approach us for information about the fibre sourcing and production processes behind our brands, including carbon 
footprint. In response to these requests, in SEU and SSA we publish Paper Profiles and information sheets for our papers. We also respond 
to many questionnaires from our customers that collect data on our CO2 reduction plans and performance. In SEU we also publish CO2 
footprint sheets, Declarations of Compliance and information sheets. In SNA, we have developed our own eQ GHG emissions calculator that 
quantifies the emissions associated with a customer order and how those emissions compare against the industry average. In addition, our 
Customer Council meetings provide valuable insight into our customers’ issues and priorities. After three years of remote meetings, we 
recently hosted a hybrid customer council meeting in which representative from eight companies participated, and discussed a variety of 
topics. Council members participated in a materiality assessment focused on product categories. 
Technical information and product 
safety
Globally, a series of technical brochures is available on our website www.sappi.com 
SEU
•	 Online knowledge platform for graphic papers sappipapers.com 
•	 Online knowledge platform for packaging and speciality papers sappi-psp.com 
SNA
•	 The POP site is aimed at marketers, creatives, designers and printers looking to innovate in their categories (www.sappipops.com) 
 
•	 Sappi etc is an educational platform for designers and printers offering information on a wide range of topics including paper basics, 
advanced print and design techniques and special effects (www.sappi.com/sappietc) 
.
SSA 
•	 Our paper and paper pulp product offerings are supported by strong technical teams at each mill and the technology centre in Pretoria. 
External testing services offered include water and wastewater testing; wood, pulp and liquors testing, microscopy, together with paper and 
box testing which can be used to conduct a wide range of ISO and TAPPI paper and paperboard tests. Specialised services applicable to the 
pulp, paper and related industries can be tailored around customer requirements.
Customers and partners continued
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Sappi 2023 Group Sustainability Report

Customers and partners continued
     The Standard 7: 
 providing guidance on the power of 
              packaging perceptions
Sappi’s Volume 7 of The Standard series explores the growing importance of haptics and sensory 
packaging in heightening brand experience and driving sales. For over a decade, each edition of The 
Standard has focused on a single aspect of the printing and design process, allowing for a closer, more 
comprehensive look at each phase.
Printed on Spectro, Sappi’s sustainably manufactured premium paperboard, the publication highlights 
the importance of sensory packaging in creating a memorable and profitable brand experience.
Today, brand loyalty is not only a competitive advantage but a necessity. Against the backdrop, The 
Standard 7 equips brands with speciality techniques to stand out from the crowd and foster customer 
connection. It represents Sappi’s ongoing investment in paper and packaging as a tool to enhance 
brand image for any company.
The Standard 7 examines how packaging has become the pivotal touchpoint that reinforces all the 
marketing efforts that preceded it. Brands of any tier, from value to luxury, must appeal to customers 
beyond cerebral logic. As customers form their opinions on the quality, care and trustworthiness of a 
brand, it is imperative that marketers understand the subconscious drivers of choice and preference. 
The book dives into how brands big or small can leverage the power of neuroscience to captivate 
audiences and build emotional connections through multisensory elements in packaging.
The Standard 7 continues to explore the value of touch and feel within the consumers purchasing 
experience. This volume represents part of Sappi’s continued commitment to creating unique and 
valuable educational resources for professionals in the print business.
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Sappi 2023 Group Sustainability Report

Customers and partners continued
 
    Investing in AI research 
                to enhance 
 sales and customer service
September 2022, Sappi partnered with the Rochester Institute of Technology (RIT) in the US to 
fund a Digital Innovation Lab as well as a PhD research student. The Lab’s research focuses on 
how to leverage data to gain a better understanding of customers.
The collaboration has already yielded promising results. In the process of designing an interactive 
machine learning system (IML) for Sappi’s sales organisation, the team had to address several 
challenges. The lessons they learned were outlined in a paper entitled ‘Four Challenges for IML 
Designers’ and was presented at an international conference in Hamburg. The conference focused 
on how human-computer interaction has as an overarching goal to make the world a better place 
with interactive digital technologies. 
The team also presented research that shows the potential of using artificial intelligence (AI) to enable 
better customer insights at a conference in the USA. The research outlined the potential for a machine-
learning algorithm to provide a data-driven approach to customer segmentation, and detailed how this 
information could then be used by salespeople to deliver better customer service and optimise 
resource allocation.
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38
Sappi 2023 Group Sustainability Report

Opportunities  
            for   
      value creation
•	 Meet customer needs for 
products with an enhanced 
environmental profile
•	 Innovate to align with evolving 
market trends
•	 Increase awareness of the 
importance of sustainability
•	 Advance our customers’ own 
sustainability journeys
•	 Promote the power of haptics 
and thereby, the power of print 
in line with our approach to 
optimising our graphic paper 
segment
•	 Provide transparent information 
in line with our strategic pillar of 
‘enhancing trust’
•	 Leverage our position as a 
solution provider for a low 
carbon and biobased economy 
to support customers and 
policy making
•	 Showcase our products and 
promote the Sappi brand.
Challenges  
            for   
      value creation
•	 Conflation of harvesting from sustainably managed plantations with 
deforestation, together with lack of understanding about the way the 
forests and plantations from which we source woodfibre help to mitigate 
global warming
•	 Promoting understanding of decarbonisation challenges and source 
requirements for certain industry memberships.
Customers and partners continued
The Sappi stand at Africa Agribusiness Science Week 
organised by the Forum for Agricultural Research in Africa 
(FARA)
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Sappi 2023 Group Sustainability Report

Why we engage 
Recognising that we are part of the communities beyond our fence lines and that 
their prosperity and wellbeing are linked to our own, we strive to make a purpose-
driven, meaningful contribution towards the wellbeing and development of our 
neighbouring communities. We work to create positive social impact by jointly 
identifying and leveraging opportunities, thereby demonstrating our commitment 
to transparency and collaboration. 
Community engagement meetings take various formats in our mills in the regions 
where they are situated. These range from broad liaison forums for business, local 
government and communities to legally mandated environmental forums that 
form part of the licensing conditions of mills. In South Africa, there are local farmer 
and community forums related to our forestry communities.
Self-assessment of quality of relationships: 
Fair to good 
Enhance trust
Communities and neighbours
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Sappi 2023 Group Sustainability Report

Communities and neighbours continued
Shared priorities
Our response
Community support  
including employment, 
 job creation, business  
opportunities, economic  
and social impacts/contributions  
and community support
SEU
•	 Employees are encouraged to nominate and participate in local community projects and events
•	 At a local community level our focus is to add to the wellbeing, safety and health of our communities.  We support various local schools, 
sports and hobby clubs, forest products industry students, local safety and environmental organisations and local charities. 
SNA
•	 Each community outreach is delegated to an employee committee, which is responsible for organising community engagement events and 
contributions  
•	 The EITM grant programme donates a combined total of up to US$50,000 to causes that are important to employees in the environmental, 
healthcare, educational and community-centric spaces  
•	 At some sites employees actively participate in United Way giving campaigns dedicated to enhancing education, financial stability, and 
health in our community
•	 US$250,000 per year Ideas that Matter programme provides grants to graphic designers for social good in areas aligned with the UN SDGs
•	 Education programmes are supported at targeted colleges and universities as are programmes to encourage study in fields relevant to our 
operations
•	 We provide financial support to several non-profit conservation organisations to support regional biologist positions, landowner and 
community outreach activities, advocacy efforts, etc.  Examples include funding and in-kind support for elementary and secondary school 
field days, community forestry workshops, landowner outreach projects in cooperation with state agencies and industry associations, 
billboards promoting Sappi’s private lands forestry programme and private landowner management assistance.
SSA
•	 Community support falls under the auspices of a dedicated multi-disciplinary team comprising Enterprise and Supplier Development (ESD) 
team, the HR team and the Corporate Citizenship team. This structure, at each mill site, is referred to as the Community Management 
Committee (CMC). The purpose of this CMC is to identify shared value opportunities which help identify and support local entrepreneurs as 
well as to promote the sourcing of goods and services from local suppliers where possible. The CMC also report on the employment of 
locals and ensures investment in communities addresses specific needs. The CMC collaborates with Government, NGOs and the private 
sector for scale. Integrated Community Forums (ICFs) which incorporate a range of stakeholders from both Sappi and local communities 
complement this engagement
•	 Given South Africa’s significant development needs, the bulk of community support is allocated to this region in areas like education, 
environment and socioeconomic development. The latter is based on helping communities help themselves. 
	Read more about our social impact in each region on pages 129 – 135. 
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41
Sappi 2023 Group Sustainability Report

Opportunities  
            for   
      value creation
•	 Enhanced licence to operate and thrive
•	 Creation of shared value, positive social impact and 
promotion of inclusivity 
•	 Closer alignment with authorities’ local 
development plans.
Challenges  
            for   
      value creation
•	 In South Africa, social unrest in the country 
continues to be an issue – the result of a 
disaffected population impacted by lack of 
service delivery and job opportunities. In 
some instances, this negatively impacts 
our reputation and relationships with 
communities, many of whom look to us to 
take on Government’s role.
Communities and neighbours continued
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Sappi 2023 Group Sustainability Report

Self-assessment of quality of relationships: 
Good 
Drive operational excellence
Enhance trust
Industry bodies, related memberships and organised business 
Why we engage 
We partner with industry and business bodies to provide input on issues and regulations 
that affect and are relevant to our businesses and industries. We also support and partner 
with industry initiatives aimed at promoting the use of our products and the overall 
sustainability of our industry. 
An important element of our strategy for achieving our business objectives is to enhance and support 
collaboration across the forest-based sector to enhance responsible forestry and promote forest certification. 
Our aim is to be present in multi-stakeholder conversations, support effective advocacy with policymakers and 
Government leaders, and support supply chain initiatives. Close engagement is maintained through the industry 
organisations CEPI (Confederation of European Paper Industries) AF&PA (American Forest and paper 
Association), PAMSA (Paper Manufacturers Association of South Africa) and FSA (Forestry South Africa).
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Sappi 2023 Group Sustainability Report

Industry bodies, related memberships and organised business continued
Shared priorities
Our response
Ethics and 
governance
In addition to the memberships described on page 
 65, Sappi Limited is an active participant in the National Economic Development and 
Labour Council (Nedlac) Companies Amendment Bill Task Team where representatives of labour, Government and business meet to discuss 
and seek consensus on the major amendments proposed to the current Companies Act 71 of 2008 (as amended) of South Africa (Companies 
Act) and governance codes as well as changes related to Social and Ethics board committees. 
Decarbonisation  
and net zero
Global
Sappi was involved in the development of WBCSD’s Forest Solutions Group Net Zero Decarbonisation catalogue, which includes an address 
by our group CEO. Sappi’s group Head: Investor Relations and Sustainability was a co-lead for this work which will be launched and promoted 
at COP28 in Dubai.
The Programme Leader Land Management and Wood Properties, Sappi Forests, continues as a member of the Technical Working Group 
of the GHG Removals and Land Sector Initiative Project which is developing new guidance on how companies account for and report land 
use, land use change, carbon removals and storage, bioenergy and other biogenic products. In contribution of the GHG Protocol revision 
process, Sappi Forests also ran a pilot project to test the protocol for reporting Scope 1 emissions from own landholdings in South Africa 
using a cradle to mill-gate system boundary. Arriving at a workable solution that enables fair accounting of both emissions and removals is 
essential for our industry.
Regional
In each region, we keep our stakeholders informed about our strategic SBTi abatement projects.
In North America, an SNA representative sits on the Environmental Policy Committee of AF&PA which addresses climate policy among other 
environmental matters.  The committee is working to update the AF&PA’s Principles for Sustainable Climate Policies.
In the build-up to COP27 in Egypt, the UNGC launched the African Business Leaders Coalition, to advance Africa’s sustainable growth, 
prosperity and development by mobilising a coalition of Africa’s business leaders to actively and meaningfully engage on the continent’s most 
pressing issues as an organised, innovative, forward-looking, principles-based, and unified voice. Our group CEO joined 56 other business 
leaders from African companies and signed the Africa Business Leaders’ Climate Statement ensuring that African business had a collective 
voice to contribute to the outcome.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
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Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Nature and  
biodiversity
Global
Under the Forest Solutions Group of the WBCSD, key areas of focus in FY2023 included: 
•	 Participating in the TNFD pilot testing and leading the development of forest sector guidance 
•	 Participating in the development and pilot testing of GHG protocol land sector and removals guidance
•	 Developing an interactive catalogue of the most impactful actions to drive decarbonisation and increase carbon removals.
Looking forward, the workplan for 2024 includes: 
•	 Identifying a set of shared metrics to better measure and disclose the nature-related impacts of sustainable forest management (SFM) 
practices
•	 Developing a forest sector deep dive on avoided emissions based on WBCSD guidance 
•	 Conducting overall assessment of the social impacts associated with the forest sector’s transition of a net-zero, nature positive economy, 
based on the WBCSD’s Business Commission to Tackle Inequality framework. 
In preparation for the Convention on Biological Diversity (CBD) COP15, Sappi joined other companies from 56 countries in signing the 
Business Statement calling for mandatory assessment and disclosure on nature to be included in the Global Biodiversity Framework.
In collaboration with The Forests Dialogue, Sappi was actively engaged in TFD’s Ecosystem Restoration Initiative which seeks to understand 
the opportunities for the forest sector to contribute and drive restoration efforts worldwide. The initiative was officially kicked off during a 
scoping dialogue convened in January at Yale University, at which a SEU representative was co-chair.    
In SNA’s sourcing areas, a significant portion of forestland is owned and managed by private landowners, often adding up to less than 
10 hectares. The Sappi Maine Forestry Programme and the Sappi Lake States Private Forestry Programme, staffed by SNA foresters, offer 
a wide range of services to these small landowners including contracting with experienced loggers and providing plans to enhance wildlife 
habitat and forest health. SNA also supports the University of Minnesota Sustainable Forests Education Cooperative.
SSA supports SANBI (South African National Biodiversity Institute), Birdlife SA and WWF-SA. We have seven declared nature reserves on our 
landholdings in Mpumalanga and KwaZulu-Natal provinces (see page 
 168).
Industry bodies, related memberships and organised business continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
45
Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Issues that affect the  
sustainability of  
our industry and  
initiatives that promote  
sustainability, awareness  
and understanding
Global
As a member of the Sustainable Apparel Coalition (SAC), we support the Higg Index developed by the apparel industry to evaluate materials, 
products, facilities, and processes based on environmental performance, social labour practices, and product design choices. 
SEU
In FY2023, as described on page 
 165, we continued to participate actively in the 4evergreen Alliance. 
We also participated in the Forests Dialogue (TFD) which leads multi-stakeholder dialogue processes among key stakeholders, to overcome 
conflict and spur collaborative action on the highest priority issues facing the world’s forests.
SNA
Sappi continues to be a sponsor of the Paper & Packaging Board’s How Life Unfolds® campaign, which began in 2015 and highlights our 
commitment to innovative, sustainable products. One of the outputs is a marketing campaign funded by industry producers at US$0.35/sales 
ton. The campaign focuses on industry environmental stewardship – the benefits of paper over plastic and climate change advocacy.
We are a founding partner of the Recycling Partnership and support their work to transform recycling nationwide, increase materials recovery.
SSA
The region and World Wildlife Fund (WWF) co-hosted a business networking opportunity for sustainability managers where biodiversity and 
food security and their reliance on healthy ecosystems were discussed. We used the opportunity to explain how, as a major landowner, we 
manage a third of our plantations for biodiversity.
Industry bodies, related memberships and organised business continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
46
Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Regulatory 
issues
SEU
The European Green Deal aims to lead the world in achieving climate neutrality under the Fit for 55 legislative package. Our industry supports 
the objectives of the Green Deal and is leading the way in taking concrete actions to achieve deep emissions reductions.  Our main position 
in the context of EU policy related to decarbonisation is to ensure a predictable and enabling policy framework for EU Industry. We engage 
through the Confederation of European Paper Industries (CEPI). 
The EU Deforestation Regulation (EUDR) came into force on 29 June 2023, with entry into application December 2024 (see page 
 143). 
Sappi is firmly committed to zero deforestation and thus shares the aims of the EUDR. Sappi is working alongside other stakeholders and 
peers to ensure a robust yet workable implementation of the regulation.
SNA
As in SEU, in this region we are tracking EUDR regulation to determine potential impacts on Sappi’s businesses. SNA has joined several USA- 
based companies, together with the trade association AF&PA to influence the EU via the US office of International Trade.
We are participating in stakeholder meetings with the Maine Department of Environmental Protection (DEP) related to pending Extended 
Producer Responsibility. Our chief concern remains the unintended consequence of the fee structure to drive paper packaging subsidising 
the improvement to plastic recycling, as well as the over-reliance of recycled content as a means to lowering fees for producers. 
SSA
Continued to support PAMSA on issues ranging from carbon tax to waste streams.
Industry bodies, related memberships and organised business continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
47
Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Enhanced forestry  
management
SEU
SEU is one of the initiators of PEFC’s  Sustainable Forest Management Impact Measurement Project to develop a credible methodology to 
investigate the impacts of forest certification on the forest ecosystem and other aspects of sustainability and create a fact-base to quantify 
the impact of certification. 
SNA
We belong to the Cooperative Forest Research Unit based at the University of Maine, where scientists conduct applied research that provides 
Maine’s forest landowners, forestry community, and policymakers with the information needed to ensure both sustainable forestry practices 
and science-based forest policy.
We are also a member of Minnesota Forest Industries (MFI) which meets quarterly with public agencies to discuss forest-related challenges, 
industry needs, workforce challenges, as well as trends/concerns/opportunities.
SSA
As described on page 
 142, we continue to promote certification for small growers. 
The FSA Environmental Management Committee was chaired by Sappi Forests Environmental Manager for Mpumalanga. She was honoured 
with the Resounding Contribution to the Forestry Sector and Forest Product Value Chain award in the Annual ‘She is Forestry’ Awards, 
specifically for the pivotal role she played in legislative issues concerning the forestry sector, with regards to mining rights, water use licences, 
changes in certification policies and forest protection policies.
Combatting  
deforestation and 
promoting certification
We believe that creating value in standing forests is one of the best ways to combat deforestation in the long term. Engagement with 
participants along the supply chain from the forests to the customers is active, and Sappi advocates for the importance of sustainable forest 
management practices, and forest certification as assurance of the supply chain integrity. We are an active member of FSC International’s 
Northern and Southern economic chambers and PEFC’s International Stakeholder membership, and collaborate to promote and expand 
forest certification, but also to ensure that the systems continuously develop themselves to sustain the integrity and robustness of certified 
supply chains.
Ensuring the integrity  
of natural resources  
like water
See details of our Water Stewardship project with WWF-SA on page 
 94.
Product development  
and innovation 
SNA continues as an active member of the Alliance for Pulp and Paper Technology Innovation (APPTI) to demonstrate and deploy various 
process optimisation technologies some of which Sappi helps fund patent protection.  In addition, our collaboration with University of Toronto 
in the area of chemical recovery system optimisation has led to efficiency gains in both Cloquet and Somerset mills.  
Industry bodies, related memberships and organised business continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
48
Sappi 2023 Group Sustainability Report

Industry bodies, related memberships and organised business continued
     Securing funding 
          from the 
Maine Technology 
         Institute
In December 2022, SNA received a US$1 million grant from the 
Maine Technology Institute’s Forestry Recovery Initiative (FRI) to 
improve productivity and reduce energy in Somerset Mill.
The grant funds are being used to improve pulp yield at the mill, 
specifically through a new chip treatment process that will improve 
productivity, lower energy consumption, and reduce the use of 
pulping chemicals at Sappi mills. 
The FRI deploys grants to help Maine loggers, foresters, lumber 
yard, and other members of Maine’s forest products sector 
recover financial loss caused by the pandemic, develop new wood 
products, and upgrade infrastructure to strengthen supply chains 
and sell products to new markets. It is part of a three-phase 
initiative in Maine to allocate a US$20 million award from the 
American Rescue Plan Act of 2021 to mitigate damage caused 
by the Covid-19 pandemic.
Sappi supports more than 3,300 jobs in Maine and contributes 
to the innovation economy and entrepreneurial community by 
partnering with the University of Maine for pulping and forestry 
research as well as product prototyping. The University of 
Maine is a key partner in the upgrade’s project.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
49
Sappi 2023 Group Sustainability Report

Opportunities  
            for   
      value creation
•	 Address complex topics through collaboration
•	 Develop sustainable, transparent supply chains
•	 Maintain and expand markets for our products
•	 Enhance understanding of our social and 
environmental credentials
•	 Influence policy and regulations
•	 Promote dialogue
•	 Share our experience and knowledge on 
sustainable, transparent supply chains to help 
prevent deforestation.
Challenges  
            for   
      value creation
•	 High costs of and resource requirements for certain 
industry memberships.
Industry bodies, related memberships and organised business continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
50
Sappi 2023 Group Sustainability Report

Why we engage 
Our aim is to provide investors 
(shareholders and bondholders) 
and analysts with transparent, 
timely, relevant communication 
that provides them with an 
understanding of our industry and 
our performance, as well as our plans 
to achieve our growth ambitions, 
thereby facilitating informed 
decisions. 
Self-assessment of quality of relationships: 
Good to excellent
Grow our business
Sustain our financial health
Enhance trust
Shareholders, bondholders and banks
ABOUT US
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TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
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Sappi 2023 Group Sustainability Report

Shareholders, bondholders and banks continued
Shared priorities
Our response
Understanding  
Sappi’s strategy
Understanding  
Sappi’s performance
Return on 
investment
Transparent information  
about our environmental,  
social and governance (ESG) 
performance,  
in particular the  
impact of climate change  
on strategic and  
financial decisions 
Ability to generate  
sufficient cash flows  
to fund our business  
and service our debt
•	 Our Investor Relations (IR) department engages with shareholders and analysts on an ongoing basis
•	 Our Chairman and CEO also engage with shareholders on relevant issues. We conduct ad hoc mill visits and road shows, and issue 
announcements through the Johannesburg Stock Exchange (JSE) – Stock Exchange News Services (SENS), in the press and on our 
website (see www.sappi.com/SENS) 
. We publish our Annual Integrated Report (see www.sappi.com/annual-reports) 
 and sustainability 
reports (see www.sappi.com/sustainability) 
 on the group website. Shareholders can attend and participate in the Annual General Meeting 
(AGM) as well as the four quarterly financial results’ briefings
•	 We engage with various ratings agencies, particularly in terms of ESG performance 
•	 We participate in the CDP Climate, Forests and Water disclosure projects every year, making our submissions publicly available 
•	 Our Chief Financial Officer and Head of Treasury engage with bondholders, banks and rating agencies continually on the performance 
of the company
•	 We report on climate related risks and opportunities and financial impacts according to the TCFD framework (see pages 
 86 – 103).
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
52
Sappi 2023 Group Sustainability Report

Challenges  
            for   
      value creation
•	 Uncertainty about environmental legislation.
Opportunities  
            for   
      value creation
•	 Understanding of and commitment to our strategic 
direction
•	 Enhanced reputation
•	 Greater investment confidence 
•	 Easier financing.
Shareholders, bondholders and banks continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
53
Sappi 2023 Group Sustainability Report

Why we engage 
Dialogue with members of 
governments and regulatory 
authorities is an opportunity for all 
stakeholders involved to better 
understand all aspects of the issue at 
hand. We work to ensure that our 
position on a broad range of priority 
issues is understood by politicians, 
decision-makers, opinion formers 
and other role-players in the regions 
where we operate. This approach 
supports a policy and legislative 
environment that helps us achieve 
our business objectives, as well as 
enhance our reputation and brand. 
In addition to direct contact, we also 
work through a variety of industry 
groups and associations as described 
on page  65.
Government and regulatory bodies 
Self-assessment of quality of relationships: 
Fair to good 
Enhance trust
Grow our business
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
54
Sappi 2023 Group Sustainability Report

Government and regulatory bodies continued
Shared priorities
Our response
The social and economic  
benefits of our industry  
nationally as well as 
on a local level
Energy issues and  
carbon taxation
Emerging  
regulations 
Enhancing sustainable 
forest management 
and land use
Progress towards  
the UN SDGs
SEU 
We continue to work in various forest-sector collaborations to ensure a thriving forest bioeconomy remains an integral part of the EU Green 
Deal. Through sustainable forest management practices, responsible sourcing, efficient use of resources and manufacturing innovation, the 
sector provides fibre-based and low-carbon solutions and products and thus boosts the transition into a circular economy.
German supply chain legislation is currently in force and will be applicable to Sappi’s German mills as of January 2024. The aim of this 
legislation is to manage the risk of actual or potential adverse impacts on human rights and the environment. It is applicable to all suppliers, 
including all the entities that sell a good, a material or provide a service. We have assessed the legislation and are confident that with our 
supplier due diligence procedure and process we will comply.
The European Commission’s proposal to regulate Packaging and Packaging Waste Regulation (PPWR) was issued on 30 November 2022 and 
is now before the European Parliament and Council.  Preference for reuse over recyclable packaging, closed product loop recycling, and 
restrictions on ‘unneeded’ secondary packaging on some hygiene and toiletry applications, are among the topics that we are working to 
influence. We are advocating for a balanced approach that supports our drive to a circular economy and builds on the success we have already 
achieved in recycling fibre-based packaging in Europe. 
SNA
We engage through various industry trade associations at the federal and state level to create a favourable regulatory environment for the 
industry. At the federal level, SNA works with the American Forestry and Paper Association on issues of interest, including renewable energy, 
greenhouse gas regulations, international trade and tax policy.
SSA
•	 The Carbon Tax Act came into effect on 01 June 2019. The first phase from 01 June 2019 to 31 December 2022 applies to activities that 
directly emit greenhouse gas emissions. The tax includes various allowances in the first phase, including a 100% allowance for forestry. We 
engaged with the Department of Forestry, Fisheries and Environment (DFFE) which agreed with our carbon sequestration calculation.  
Government has now extended the first phase of South Africa’s Carbon Tax by three years to 31 December 2025, to support businesses in 
their clean transition endeavours. Sequestration is now officially recognised, SSA’s carbon tax liability for the 2022 calendar year was zero. 
(Carbon tax works in calendar years, so we only submit data for CY2023 in March 2024)
•	 The South African Government will be submitting a UN SDG Voluntary National Review in July 2024 on progress related to the 
implementation of the UN SDGs. We are participating in the process by providing insights, examples and case studies.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
55
Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Transformation in  
South Africa
•	 The Employment Equity Act Amendment Bill was signed into law by the State President on 12 April 2023. It is expected that this will become 
effective before the end of 2023, once the sector consultation process has been finalised. The Minister of Employment and Labour may 
determine sector numerical targets, following a consultation process with impacted industries. SSA was part of the consultation process 
both for the Forestry and Manufacturing sectors and our 2025 targets are in line with industry proposal on sector targets
•	 For many of the land claims in which we have been involved, and where there has been a change in ownership, we continue to buy the 
timber and help to manage those plantations under Forestry Enterprise Development Agreements (FEDAs). We work with these community-
managed land reform projects to ensure continuous productivity of restitution farms and sustainable supply of timber.  We continue to 
engage with Government to assist in the development of rural areas, including the expansion of tree farms in the Eastern Cape. In 2023, we 
expanded new areas under timber production by 3,208 hectares on both FEDAs and Sappi Khulisa agreements.  (See page 
 133 for 
further details about Sappi Khulisa)
•	 Various interactions with the national leadership of the Department of Forestry, Fisheries and Environment (DFFE), as well as provincial 
and local development agencies have gained momentum and are set to unlock the targeted 30,000 hectares of new plantings in the 
Eastern Cape
•	 The SSA Transformation Steering Committee reviews the completion of the transformation targets, as outlined in the national BBBEE 
Charter, on a regular basis. As an example, the Regional Employment Equity and Learning Committee ensures that we meet our legislative 
obligation to consult and attempt to reach agreement, as placed on us by the Employment Equity Act and Skills Development Act. The 
committee, which meets at least twice a year, includes representation from the semi-skilled and unskilled categories of employees, as well 
as shop steward representatives. It is supported by business unit/mill Employment Equity and Learning Committees. 
Government and regulatory bodies continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
56
Sappi 2023 Group Sustainability Report

Opportunities  
            for   
      value creation
•	 Promoting understanding of issues and challenges 
as well as the strategic value of our industry helps to 
create a more receptive regulatory and policy 
environment.
Challenges  
            for   
      value creation
•	 Policies which take neither our high use of 
biobased energy into account nor recognise the 
important carbon sequestration role played by the 
sustainably managed forests and plantations from 
which we source woodfibre
•	 Uncertainty about certain regulatory 
developments like carbon tax (global) and dams 
(South Africa)
•	 Administrative and licensing delays.
Government and regulatory bodies continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
57
Sappi 2023 Group Sustainability Report

Why we engage 
Our suppliers are a core aspect of 
our business. We aim to establish 
mutually respectful, value-based 
relationships with them and 
encourage them to share our 
approach to investing in and 
searching for innovative ways to 
leave the planet better than we found 
it and making a purpose-driven and 
meaningful contribution towards the 
wellbeing and development of 
employees and our communities.
Self-assessment of quality of relationships: 
Good 
Grow our business
Enhance trust
Suppliers and contractors
ABOUT US
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TARGETS
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OUR KEY 
MATERIAL ISSUES
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GLOSSARY
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Sappi 2023 Group Sustainability Report

Suppliers and contractors continued
Shared priorities
Our response
Robust safety  
procedures and  
a strong culture  
of safety
Given our focus on zero harm in the workplace, we work with our contractors to ensure that they follow Sappi’s safety systems and regard their 
safety as just as important as that of our own people. 
In South Africa, Sappi Forests continues to work closely with contractors and their workers to implement the innovative Stop and Think Before 
You Act safety initiative.
Transparency into  
the value chain
We continued to assess the sustainability performance of our suppliers through proactive ratings and evaluations using EcoVadis 
methodology. Under the EcoVadis banner, we have been submitting our own sustainability performance to our customers for many years now.
Globally, through our focus on sustainable procurement, we made progress in assessing suppliers (see page 
 59). 
Given our focus on
Zero harm in the
workplace 
we work with our contractors to ensure  
that they follow Sappi’s safety protocols
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
59
Sappi 2023 Group Sustainability Report

Shared priorities
Our response
Security of  
fibre supply
Certification
Income generation  
and job creation
SEU 
In Europe, we procure wood through long-term wood sourcing partners (Metsä Forest in Finland, proNARO in Germany, Sapin in Belgium and 
Papierholz Austria in Austria) all of which operate with an established pool of forest owners and wood suppliers. 
SNA 
In SNA’s sourcing areas, a significant portion of forestland is owned and managed by private landowners, often adding up to less than 
10 hectares.  
The Sappi Maine Forestry Programme and the Sappi Lake States Private Forestry Programme, staffed by SNA foresters, offer a wide range of 
services to landowners including contracting with experienced loggers and providing plans to enhance wildlife habitat and forest health. The 
SNA Stumpage Programme assists landowners with developing harvest plans and timber stand improvement project plans with appropriate 
silvicultural techniques that ensure prompt regeneration after harvest. SNA stumpage foresters conduct inspections on all jobs to ensure 
compliance with laws, policies and best management practices to conserve soil and water quantity/quality along with other values such as 
biodiversity conservation, aesthetics management, cultural resource protection, etc.
In 2022, Sappi signed up as a ‘preferred vendor’ with the Michigan-Wisconsin Master Logger Group to support FSC CoC certification for 
small producers.
SNA hosted the FSC-US Board at the Cloquet Mill for a tour of the site, explanation of our DP operations and strategic discussions. 
SSA
Qualified extension officers provide growers in our Sappi Khulisa enterprise development scheme with ongoing growing advice and practical 
assistance.  See page 
 133 for further details.
The high cost of certification has been an issue for small growers which we have helped to overcome by offering a group certification scheme 
(see page 
 132) and through the Sustainable African Forestry Assurance Scheme (SAFAS) which we helped to develop (see page 
 132 for 
further details).
SSA co-hosted two ‘From the Forest to the Fashion Rail’ workshops for retailers with FSC. Buyers, designers, sustainability leads and sourcing 
specialists from leading retailers were sensitised on how to ensure that the fashion garments and accessories they are selling are sourced 
from sustainably managed and certified local forests.
Suppliers and contractors continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
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Opportunities  
            for   
      value creation
•	 Improved supplier relations
•	 Increased uptake of the Supplier Code of Conduct 
•	 Better understanding of the requirements of the 
Sappi group
•	 Expanded basket of certified woodfibre
•	 Support for local economic development
•	 Support for emerging supplier/contractor 
development.
Challenges  
            for   
      value creation
•	 Security of woodfibre supply
•	 Ensuring that small, medium and micro 
enterprises have the right social and 
environmental procedures in place and 
monitoring compliance.
Suppliers and contractors continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
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Why we engage 
We maintain an open relationship 
with the media.
We continue to update the media on 
our belief that it’s our responsibility 
to use the full potential of each tree 
we harvest. We engage with civil 
society organisations on issues of 
mutual interest and belong to key 
organisations relevant to our 
operations. We engage with various 
civil society groups on our societal 
and development impact.
Self-assessment of quality of relationships: 
Good 
Enhance trust
Civil society and media 
ABOUT US
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TARGETS
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OUR KEY 
MATERIAL ISSUES
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GLOSSARY
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62
Sappi 2023 Group Sustainability Report

Civil society and media continued
Shared priorities
Our response
Business  
developments
The future of  
our industry
Our impacts on  
our communities
Protecting the  
environment
•	 Join key credible organisations as members
•	 Develop personal relationships and engage continually
•	 Amplify our presence on social media 
•	 Provide support to and sponsorship for key organisations on issues of mutual interest.
Globally
The region engages in a variety of roles in diverse collaboratives as a participant, funder, partner and leader.  Our staff serve in roles ranging from 
interested stakeholder for consultative purposes, committee members, leads/chairmen, and boards of directors.  One example is Minnesota 
Forest Industries to which SNA belongs and which meets quarterly with public agencies to discuss forest-related challenges, industry needs, 
workforce challenges, and trends/concerns/opportunities.
SSA 
•	 Our forestry operations belong to several fire associations, given that fire is a key risk on our plantations 
•	 Initiated in 2014, our project to re-establish the Warburgia salutaris (pepper-bark tree) in communities and in the wild continues to gain traction 
across the Southern African region (see page 
 168 for further details) 
•	 Collaboration with Industry organisations PAMSA and FSA on various initiatives to promote the forestry sector and the paper and pulp 
manufacturing industry. Examples are the PAMSA Media Roundtable, the Paper Story website, participating and co-sponsoring the ‘She is 
Forestry’ webinar and contributing to the FSA Forestry Explained website. In addition, we contribute to the production of informative videos 
that are screened on YouTube and websites.
ABOUT US
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TARGETS
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Opportunities  
            for   
      value creation
•	 Inform and educate media
•	 Encourage civil society to share our sustainability 
and Thrive vision through positive actions.
Challenges  
            for   
      value creation
•	 Misunderstanding of our environmental 
impacts.
Civil society and media continued
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Sappi Limited
Name of organisation
Focus
African Business Leaders Coalition 
In the build-up to COP27 in Egypt, the UNGC launched the African Business Leaders Coalition, to advance Africa’s sustainable growth, 
prosperity and development by mobilising a coalition of Africa’s business leaders to engage on the continent’s most pressing issues as 
an organised, innovative, forward-looking principles based and unified voice. Our group CEO joined 56 other business leaders from 
African companies and signed The Africa Business Leaders’ Climate statement, ensuring that African business had a collective voice 
to contribute to a positive outcome.
Business for Nature #MakeitMandatory
We signed up to this campaign, which calls on all large businesses and financial institutions to assess and disclose their impacts and 
dependencies on biodiversity.
Business Leadership South Africa (BLSA)
BLSA promotes engagement between South Africa’s business leaders and key players in South African society, including Government, 
civil society and labour, to exchange ideas in our national interest and to create effective dialogue.   
Circular Bioeconomy Alliance
Aims to accelerate the transition to a circular bioeconomy that is climate neutral, inclusive and prospers in harmony with nature.
EcoVadis 
We assess the sustainability performance of our suppliers through proactive ratings and evaluations using EcoVadis methodology – 
under the EcoVadis banner, we have been submitting our own sustainability performance to our customers for many years now. In 
FY2023, we held a platinum rating (the highest level) for all three regions.
Ethics Institute of SA
As we are headquartered and listed in SA, we belong to this institute (see page 
 73 for further details).
FSC International
Both SNA and SSA belong to this international, non-governmental organisation dedicated to promoting responsible management of the 
world’s forests.  
National Economic Development and Labour 
Council (Nedlac) 
Sappi is an active participant in the Nedlac Companies Amendment Bill Task Team where representatives of labour, Government and 
business meet to discuss and seek consensus on the major amendments proposed to the current South African Companies Act and 
governance codes as well as  changes related to Social and Ethics board committees.
Paris Pledge for Action
We signed this pledge in 2015 to add our voice to global calls to limit global temperature rise to well below 2 degrees Celsius – and 
pursue efforts to limit the increase to 1.5 degrees Celsius.
PEFC – International Stakeholder Member
PEFC is an independent, non-profit, non-governmental organisation, which promotes sustainably managed forests through independent 
third-party certification. 
Our key memberships and commitments
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Name of organisation
Focus
Sustainable Apparel Coalition 
A global, multi-stakeholder non-profit alliance for the consumer goods industry. This advocacy group is supported by the Federation of 
European Sporting Goods Industry and Global Fashion Agenda.  We use the SAC’s sustainability measurement suite of tools, the Higg 
Index, to evaluate materials, products, facilities, and processes based on environmental performance, social labour practices, and product 
design choices (see page 
 93 for further details).
Technical Association of the Pulp and Paper Industry
An international NGO of about 14,000 member engineers, scientists, managers, academics and others involved in the areas of pulp and 
paper.
The Textile Exchange (TE) and TE man-made cellulosic fibre 
roundtable and climate sub-committee 
The TE launched their Climate+ Strategy in 2019, with a goal to reduce GHG emissions in the textile value chain by 45% by 2030, while 
addressing other climate-related impact areas, like water, biodiversity and soil health. Sappi was an advisory partner in the development 
of the TE’s biodiversity benchmarking module and participated in the pilot launch of the tool. We also participate in the cellulosic 
roundtable and climate sub-committee.
WBCSD  
The organisation has three imperatives with climate being a primary focus, in addition to nature and equity. The Forest Solutions Group 
(FSG) is a sector-specific working group under the WBCSD umbrella. One of the FSG key deliverables is developing a net zero roadmap 
for the sector. We contributed to phase 1 of the development of FSG’s roadmap which describes the imperative for climate action in the 
forest sector.
Our key memberships and commitments continued
Sappi Limited
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SEU
Name of organisation
Focus
Biobased Industries Consortium
Covers the entire biobased ecosystem and brings together players from different industrial sectors and disciplines. One of the 
consortium’s aims is to improve access to finance and the investment climate in Europe. 
CEFLEX
A collaboration of over 180 European companies, associations and organisations representing the entire value chain of flexible 
packaging and working to make all flexible packaging in Europe circular.
CELAB (Circular Economy for Labels) coalition 
Aims to create a sustainable circular economy for self-adhesive labels throughout the entire supply chain. The initiative aims to develop 
a sustainable and circular business model for more than 75% of the matrices and release liners used in Europe by 2025.
Confederation of European Paper Industries (CEPI) 
The European association representing the pulp and paper industry.
4evergreen Alliance
See page 
 165.
Ligninclub
The EU co-funds lignin Industries expansion to create a green industry to replace fossil-based plastics.
The Alliance of Energy Intensive Industries
Represents a broad grouping of industries who participate in policy discussions such as the EU Green Deal.
The Forests Dialogue
See pages 
 45 and 46.
Other memberships include BioChem Europe, Eurograph, European Joint Undertaking on Biobased Industries, Print Power.
Our key memberships and commitments continued
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SNA
Name of organisation
Focus
Alliance for Pulp and Paper Technology Innovation 
See page 
 48.
American Forests and Paper Association (AF&PA)
The national trade association of the paper and wood products industry.
Circular Action Alliance (CAA) 
An NPO which supports the successful implementation of extended producer responsibility (EPR) laws for paper and packaging, as well 
as potential harmonisation of EPR protocols across states.
Federal Forest Resource Coalition
Comprises companies and regional trade associations whose members harvest and manufacture wood products, paper and renewable 
energy from federal timber resources.
Sustainable Forestry Initiative® (SFI®) Implementation 
Committees (Maine, Minnesota, Wisconsin and Michigan)
Committees work with local, forestry, and professional associations, universities, government agencies, landowner groups, conservation 
groups and many others to promote SFI standards to broaden the practice of responsible forestry and achieve on-the-ground progress.
Minnesota Forest Resources Council 
Develops policy recommendations and encourages the adoption of sustainable forest management policies and practices. Council 
members represent a wide range of forest resource interests and hold public meetings every second month to discuss key issues.
University of Maine Pulp and Paper Foundation   
Active internship programme and industry advocacy
University of Minnesota Sustainable Forests Education 
Cooperative
A forestry education cooperative offering continuing education opportunities for natural resource professionals (see page 
 45).
Other memberships include American BioFuels Association, American Forest Foundation, Biorenewable Deployment Consortium, Forest Products Working Group, Forest Resources Association, Forest 
Stewardship Council (FSC), Great Lakes Timber Professionals Association, Maine Forest Products Council, Maine Tree Foundation, Michigan Forest Products Council, Minnesota Forest Industries, 
Minnesota Timber Producers Association, NH Timberland Owners Association, Paper and Paper Packing Board, Paperboard Packaging Council, Pulp and Paper Products Council, Sustainable Packaging 
Coalition, the Recycling Partnership, University of Maine Paper Surface Science Consortia.
Our key memberships and commitments continued
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Sappi 2023 Group Sustainability Report

SSA
Name of organisation
Focus
Business for South Africa (B4SA) 
B4SA is an alliance of business leaders working with the SA Government and other social partners focused on mobilising business 
resources and capacity to work alongside and in support of Government to address bottlenecks impacting the country socioeconomic 
development (see page 
 22 for details of the CEO pledge signed by our group CEO).
Business Unity South Africa (BUSA) 
BUSA structures its work through two policy committees – a Social Policy Committee and an Economic and Trade Policy Committee. All 
deliberation on policy is considered through the policy committees. Sappi contributes through various committees influencing 
government policymaking.
Forestry South Africa
Forestry South Africa represents 11 corporate forestry companies, approximately 1,100 commercial timber farmers and some 20,000 
small-scale growers. Collectively, these growers own or control no less than 93% of the country’s total plantation area of 1.2 million 
hectares. 
National Business Initiative
An independent, business movement of nearly 100 South African and multi-national companies committed to the vision of a thriving 
society and working with members to build their capacity for change and to create investment opportunity for them.
Paper Manufacturers Association of South Africa (PAMSA)
Responsible for the pre-competitive legislative, education, environment, research and recycling interests of the pulp, paper, board and 
tissue sector in South Africa.
South African National Biodiversity Institute (SANBI) 
Tasked with research and dissemination of information on biodiversity, and legally mandated to contribute to the management of SA’s 
biodiversity resources.
Shared Value Africa Initiative
Enables businesses to collaborate and form partnerships across border lines to drive collective social impact at scale.
WWF-SA
Works with business to generate collective action, stimulate innovation and mobilise resources for shared value and systems change 
(See page 
 94 for details of our Water Stewardship partnership with WWF-SA.)
Other memberships include Birdlife SA, Fibre Circle, Fibre Processing and Manufacturing Skills Education and Training Authority, FSC, Manufacturing Circle, Packaging SA, PAMSA, Recycle Paper ZA, 
South African Chamber of Commerce and Industry and local chambers of commerce and industry.
Our key memberships and commitments continued
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Sappi Forests
Sappi Forests’ memberships are focused on mitigating pests and disease 
and promoting sustainability of our plantations: 
•	 Biological Control of Eucalypt Pests
•	 Biorenewable Deployment Consortium (BDC)
•	 CAMCORE 
•	 Eucalypt Pest and Pathogen Working Group (EPPWG)  
•	 Forestry and Agricultural Biotechnology Institute (FABI) 
•	 Forest Molecular Genetic (FMG) Programme
•	 Institute for Commercial Forestry Research (ICFR) 
•	 South African Institute of Forestry (SAIF)
•	 The Tree Protection Co-operative Programme (TPCP) – founding member.
Our key memberships and commitments continued
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Our people indicators continued
PRIDE
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Financial materiality:
Our strong ethical culture 
underpins our reputation, built 
up over many years. However, 
just one breach of ethics could 
destroy our reputation and 
negatively erode stakeholder 
value. Accordingly, we place a 
high premium on adherence to 
ethical behaviour as 
encapsulated in our Code of 
Ethics. 
Impact materiality:
Sappi’s objective is to be a 
‘trusted partner to all our 
stakeholders’. We cannot 
achieve this unless we all ‘live’ 
our values of integrity and 
courage and act when these 
values are threatened. In doing 
so, we protect the viability of our 
business and the interest of all 
our stakeholders.
How this issue links to other  
aspects of our business
Our global priority SDGs
 
Our strategic fundamentals
Grow our business
Sustain our financial health
Drive operational excellence
Enhance trust
Our top 10 risks
4
Sustainability expectations
6
Evolving technologies and 
consumer preferences
7
Supply chain disruption
The global forces shaping our 
Thrive strategy
Rapid pace of technological 
innovation and threats, including 
cyber threats
Changing consumer and employee 
behaviour
Shifting demographics
Our highlights
Comprehensive ethics 
training
Ethics issues 
incorporated into 
employee engagement 
survey
Principles
Ethical behaviour and compliance
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Ethical behaviour and compliance continued
Background
Our Code of Ethics (the Code) is a practical 
tool to guide our directors, management, 
employees and other stakeholders as to what 
constitutes ethical behaviour in the workplace 
while complying with the various laws, 
regulations and policies applicable to the Sappi 
group. In FY2022, we refreshed the Code with 
Sappi’s Thrive branding, an updated message 
from the CEO, and more relevant scenarios and 
examples. Given our revised value statement 
– ‘As OneSappi, we do business safely, with 
integrity and courage, making smart decisions 
that we execute with speed’, the refreshed 
Code places greater emphasis on safety in line 
with our safety first culture and prioritisation of 
the wellbeing of our employees and 
stakeholders.
The Code references several group policies, 
where heightened levels of awareness and 
compliance are required. In familiarising 
themselves with the Code, employees are 
encouraged to read these policies. Story 
pictures are used to assist in the messaging, 
which is displayed on the media screens, lift 
lobbies and on Sappi desk calendars.
In line with the refreshed Code, online ethics 
training has been revamped with new 
scenarios and relevant examples.
We have been a member of the Ethics Institute 
since 2018 and have benefited from the 
institute’s activities and materials provided to 
members to advance ethical behaviour. In this 
capacity, we have also signed the Business 
Leadership South Africa Integrity Pledge, 
thereby making a commitment to actively 
combat corrupt practices wherever 
encountered, preventing anti-competitive 
behaviour, adopting a zero-tolerance approach 
to corrupt behaviour and protecting whistle-
blowers.
In the case of ethical breaches, the Internal Audit (IA) department is responsible 
for performing or assisting with forensic investigations. During forensic 
investigations, particular attention is paid to the circumstances contributing to the 
incident and management’s tone in responding to these incidents. IA also reviews 
the ethics management arrangements and ethics controls for particular units and 
processes during certain audits. Audit steps include confirming the status of our 
Code of Ethics and hotline communication, completion of ethics training by 
employees and reviewing processes for employees to disclose potential conflicts 
of interest.
All forensic investigations are undertaken with oversight from the Legal 
department, human resources (HR) and executive management. Detailed formal 
reports are prepared for each incident and distributed to line and HR 
management. The Audit and Risk Committee and supporting committees receive 
and review reporting on all forensic activity. In addition to the detailed scrutiny of 
all ethics incidents, various KPIs are used to monitor forensic and ethics 
management for SSA. The most important analyses relate to the numbers, 
classification and outcome of incidents, as well as the timely resolution of hotline 
calls.
information
As OneSappi we do business 
 
safely,  
with integrity and courage, making
smart decisions
that we execute with speed
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Key developments in FY2023
As reported in FY2022, a US-based entity 
replaced KPMG as the new ethics hotline 
service provider globally with effect from 
01 January 2023. While the transition was 
generally smooth, there were some instances 
of the new service providers’ call centre 
operators failing to document sufficient details 
from callers. This lack of detail provided was 
felt to be compromising effective investigation 
of some cases by the Sappi investigators. The 
issue was discussed at the highest level with 
our service provider to ensure their operators 
have the necessary linguistic and soft skills to 
ensure that sufficient detail is included in their 
reports without compromising caller 
confidentiality. 
We also launched a Sappi campaign 
encouraging users to use the ethics hotline 
website reporting channel rather than the 
phone line, without removing the phone option 
from communications. We have seen an 
increase in users using the website reporting 
channel resulting from the campaign which has 
assisted with ensuring the necessary incident 
details are included at the outset.
To drive awareness across Sappi, we 
continued to participate in significant 
international events, including Global 
Ethics Day, International Fraud Awareness 
Week and World Whistle-blower Day.
In line with our emphasis on ethical behaviour, we conducted training on the 
following topics: 
1/
Anti-fraud and corruption (relevant new employees in all regions)
2/
Code of Ethics online training (relevant new employees in all regions)
3/
Environmental Law training (relevant new employees in all regions)
4/
Competition Law (relevant new employees in all regions)
5/
Occupational health and safety compliance (relevant new employees 
in all regions and a refresher course for South Africa, North America, 
Europe and Sappi Trading)
6/
Avoiding Conflicts of Interest in the workplace (South Africa)
7/
Data Governance including regional laws like the Protection of 
Personal Information Act and the GDPR (South Africa and Europe)
8/
Protection of our Intellectual Property and what constitutes 
confidential information
Training initiatives incorporate relevant and practical examples and have been 
implemented to inculcate the correct ethical behaviour and responses while 
avoiding a tick-box approach to ethics.
Ethical considerations in the workplace under the drivers of inclusion and the general 
working environment at Sappi were incorporated into the 2023 employee engagement 
survey. As indicated in the table on the following page, all the scores were high 
performing (at or above 60%) with an overall driver average score of 74% for Sappi 
employees’ experience of their working environment and an overall driver average score 
of 73% for inclusion in the workplace. 
Ethical behaviour and compliance continued
To drive awareness across Sappi, we continued to participate 
in significant international events, including Global Ethics 
Day, International Fraud Awareness Week and World Whistle-
blower Day.
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Ethical issues covered in the FY2023 employee engagement survey
Survey questions  
(drivers: working environment and inclusion) 
Comparison with  
previous survey
2023 survey
2021 survey
Benchmark 
(if available)
I understand the safety and other risks related with my job.
94%
92%
-
I am able to control safety and other risks related to my job.
84%
82%
-
I am physically safe while at work.
76%
75%
87%
I have not felt pressured to do something unethical at work. 
75%
76%
-
The organisation takes action to maintain the health and 
safety of employees.
n/a
73%
-
75%
I am aware of Sappi’s hotline and how to access it.
71%
64%
-
The organisation acts against employees who do not 
adhere to the Code of Ethics. 
67%
65%
-
Employees report accurate and complete information.
66% 
69%
-
The physical workspace is conducive to working effectively.
n/a
60% 
-
67%
I have not been discriminated against at this organisation 
based on age, gender, identity, sexual orientation, race, 
religion or colour.
80%
77%
86%
I am not emotionally harassed at work.
76%
70%
84%
I am comfortable being myself at this organisation.
n/a
72%
- 
79%
This organisation supports an inclusive environment where 
individual differences are celebrated and encouraged.
n/a
63%
-
73%
Ethical behaviour and compliance continued
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Opportunities  
 for  
 value creation
We constantly strive to develop and 
update relevant policies to support 
our efforts to maintain and improve 
our high ethical standards. The Group 
Whistle-blowing policy has been 
carefully reviewed and updated to align 
with the latest global standards and 
best practices. In addition we have 
developed a new Group Anti-retaliation 
policy which complements and 
enhances our commitment to 
supporting and maintaining our 
ethical standards.
These policies will help to drive 
value creation by strengthening our 
commitment to transparency, integrity, 
and ethical conduct and are critical 
components of our ethical framework, 
empowering employees to report any 
concerns or suspected violations of 
policies, laws, or moral standards 
without fear of reprisal.
Ethical behaviour and compliance continued
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Responsible procurement
Financial materiality:
With over 16,000 suppliers, 
maintaining a well-organised 
supply chain is integral to our 
business and key to meeting our 
strategic pillars which include 
growing our business, 
sustaining our financial health 
and driving operational 
excellence. It also underpins our 
licence to operate.
Impact materiality:
In today’s environmentally and 
socially conscious world, ethical 
supply chains are a key concern. 
By avoiding negative sourcing 
impacts, giving our customers 
and consumers transparent 
insight into our supply chain and 
collaborating with our suppliers 
to promote responsible 
business, we are enhancing trust 
– the fourth pillar of our strategy 
– and working towards our 
vision of a thriving world.
How this issue links to other  
aspects of our business
Our global priority SDGs
 
Our strategic fundamentals
Grow our business
Drive operational excellence
Enhance trust
Our top 10 risks
4
Sustainability expectations
6
Evolving technologies and 
consumer preferences
7
Supply chain disruption
The global forces shaping our 
Thrive strategy
Rapid pace of technological 
innovation and threats, including 
cyber threats
Changing consumer and employee 
behaviour
Shifting demographics
Our highlights
81% of our global eligible 
procurement spend 
covered by a signed 
Supplier Code of 
Conduct. 
In terms of procurement 
spend, in SEU 72% of 
spend was covered by 
suppliers on EcoVadis, 
37% in SNA and 48% in 
SSA. 
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Responsible procurement continued
Background
By working together in partnership with 
suppliers, we recognised that we could better 
identify risk, assess social and environmental 
performance, as well as encourage 
commitment to sustainable choices and 
the UN SDGs throughout our value chain. 
Accordingly, in 2019, we drew up a new group 
Supplier Code of Conduct and began to 
request self-declarations of supplier 
compliance. In 2020, we identified EcoVadis as 
an appropriate risk mitigation and 
measurement tool and globally since 2021, 
have been using EcoVadis to assess the ESG 
performance of our suppliers. 
EcoVadis is a standardised questionnaire that 
companies fill in annually, and then share with 
multiple customers. EcoVadis provides the 
platform, scoring methodology and in-house 
analysts who review the information and 
documentation submitted.
The EcoVadis scorecards enable us to gain 
insights into suppliers’ corporate social 
responsibility (CSR) performance in an efficient 
way to inform our business decisions. They 
also help to identify risk and prioritise areas 
where further improvements are needed. In 
FY2023 we continued to promote the use of 
EcoVadis by our suppliers and regularly review 
scores and requested corrective actions where 
needed. In addition, in line with our SBTi-
endorsed commitment that 44% of our 
suppliers (by spend) will have science-based 
targets by 2026, we have now included a focus 
on climate action in our engagement with 
suppliers.
Key developments in FY2023
There is growing regulatory pressure in all 
areas in which Sappi operates to ensure that 
supply chains are transparent. Examples 
include the upcoming EU Corporate 
Sustainability Due Diligence Directive (CSDDD) 
and the German Act on Corporate Due 
Diligence to Prevent Human Rights Violations 
in Supply Chains, more commonly known as 
the German Supply Chain Act (GSCA). Both 
require companies to uphold international 
human rights and environmental standards 
in their supply chain, including those on child 
labour, modern slavery and occupational 
health and safety. They also emphasise 
environmental issues, recognising that 
environmental violations also infringe on 
human rights. The due diligence obligations 
along the supply chain extend from the 
company’s own business area and direct 
suppliers as well as – in less strict form – 
indirect suppliers.
As Sappi has over 1,000 employees in 
Germany, the GSCA will apply to our German 
operations from 2024 and we will be applying 
it to all SEU mills. The European sustainability 
team is addressing the requirements of the 
GSCA through the work of the Sustainable 
Procurement Committee and all learnings and 
processes developed are being shared with 
other regions where appropriate.
We are confident that our work to date 
regarding a sustainable supply chain and our 
alignment with the UN Guiding Principles will 
help to establish a strong foundation from 
which to deal with these and other 
developments that may arise, future-proofing 
our business.
In terms of performance, our Thrive 2025 
target is that 80% of procurement spend 
should comply with the Supplier Code of 
Conduct (the Code). In SEU, 84% of eligible 
spend was covered by signed declarations or 
agreements into which the provisions of the 
Code are embedded, 85% in SNA and 64% in 
SSA. Globally, this translates to 81% of global 
eligible procurement spend.
By the end of FY2023, 796 suppliers were 
sharing their EcoVadis scorecards with us and 
another 400 were in progress to disclose on 
the platform. In terms of spend, in SEU 72% of 
spend was covered by suppliers on EcoVadis, 
37% in SNA and 48% in SSA. Our average 
supplier score on EcoVadis is 60.3, which is 
14.6 points above the platform’s benchmark. 
We assigned corrective actions to 
52 companies via EcoVadis in FY2023, all of 
which were completed. In terms of suppliers 
and climate, the status is as follows: 88.9% of 
our suppliers disclosing on EcoVadis are acting 
on energy consumption and GHG emissions, 
73% use renewable energy, 62% report on CO2 
emissions, 44% disclose to CDP Climate, 48% 
report Scope 3 emissions, 30% are part of the 
SBTi, while 20% have ISO 50001 certification.
In other developments, throughout FY2023 
we have been further developing our approach 
to managing Scope 3 emissions, including 
developing a questionnaire and data collection 
process to collect primary emissions factors 
from our suppliers and other information about 
their decarbonisation efforts. This new supplier 
engagement campaign will initiate in early 
2024. 
We are now working towards incorporating 
supplier scores into procurement processes 
and increasing spend with suppliers who have 
demonstrated good EcoVadis performance. 
By the end of 
FY2023 
 
796
suppliers  
shared their 
EcoVadis 
scorecards with us
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Monitoring fundamental rights 
UNGC Principle 1:
Business should support and respect the protection of 
internationally proclaimed human rights.
We benchmark our human rights performance against 
the World Justice Project Rule of Law Index® which 
measures rule-of-law adherence in 142 countries and 
jurisdictions worldwide based on eight factors: 
constraints on government powers, absence of 
corruption, open government, fundamental rights, order 
and security, regulatory enforcement, civil justice and 
criminal justice.
The fourth factor, fundamental rights, encompasses adherence to the 
following: effective enforcement of laws that ensure equal protection, the 
right to life and security of the person, due process of law and the rights of 
the accused, freedom of opinion and expression, freedom of belief and 
religion, the right to privacy, freedom of assembly and association, and 
fundamental labour rights, including the right to collective bargaining, 
prohibition of forced and child labour, and elimination of discrimination. 
Under this index, the countries in which we have manufacturing and major 
trading operations are classified as set out in the table below. This confirms 
our understanding that human rights violations in these countries are limited. 
Scores range from 0 to 1, with 1 indicating the strongest adherence to the 
rule of law.
Responsible procurement continued
2023 global scores and rankings 
Country
Overall
index score 
Global rankings
(out of 
142 countries)
Austria
0.80
11 
Belgium 
0.78
16 
Canada
0.80
12
Finland
0.87
3
Germany
0.83
5
Hong Kong
0.73
23
Italy
0.67
32
Netherlands
0.83
7
South Africa
0.57
56 
United Kingdom
0.78
15
United States of America
0.70
26
Note: Given here in alphabetical order
We have identified no operations or significant suppliers where the right to exercise freedom 
of association and collective bargaining has been violated or is at significant risk, nor have we 
identified operations and significant suppliers as having any significant risk for incidents of 
child labour. Similarly, we have identified no operations and significant suppliers as having 
significant risk for incidents of forced or compulsory labour, and measures to contribute to 
the elimination of all forms of forced or compulsory labour.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
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Opportunities  
 for  
 value creation
In a survey of approximately 27,000 
global customers published in 
September 2021, approximately 
88% of the participants said they 
would prioritise purchases from 
companies that implement ethical 
sourcing practices. Around 83% of 
them are ready to pay extra for a 
product that has a guaranteed ethical 
source. Moreover, close to 64% of 
18 to 24-year-olds, which represents 
almost two-thirds of the youngest 
adult buyers, mentioned that they 
would not buy from a company again 
if it was accused of engaging with 
unethical suppliers. 
As we continue to expand our 
responsible sourcing practices, 
so we are honing our competitive 
advantage across global markets. 
Responsible procurement continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
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STRENGTH
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
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Our management 
 approach to prosperity
We continue to identify and invest in 
product lines with the best returns and 
longevity, as well as scan for and review 
potential investment opportunities. Our 
Brand Council drives a coordinated global 
programme to increase the visibility and 
value of the corporate brand and secure 
market preference through our portfolio 
of branded products and services.
We engage on an ongoing basis with 
customers and end-users to identify 
their needs and expectations. We also 
prioritise collaboration with customers, 
suppliers, converters and other parties in 
the value chain to unlock value and 
opportunities.
Our vision is of a thriving world and is about being more 
connected to the needs of our people and planet and 
achieving prosperity of which we can all be proud. 
We have transformed during the last five years to become a 
more diversified group with investments in growing markets. 
To achieve this, among other things, we are investing in 
market segments with strong growth; strengthening our 
competitive position in mature markets; continuing our 
commitment to innovation; adapting to market supply and 
evaluating our product mix to align with evolving needs and 
demand. Our overarching aim is to take advantage of our 
existing strengths and grow in high-impact, high-value areas 
while unlocking value for people and creating solutions 
from sustainable woodfibre.
Prosperity
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Prosperity continued
Key developments in FY2023
Following the records achieved in FY2022, Sappi was able to 
deliver a satisfactory set of results under particularly difficult 
circumstances with an EBITDA excluding special items of 
US$731 million for the year ended September 2023. The 
widespread disruption caused by ongoing geopolitical instability, 
weak global economic growth, rising interest rates and an 
underperforming Chinese economy negatively impacted 
markets for our products.
Despite 2023 being one of the most challenging downcycles 
experienced in the pulp and paper industry, with demand for our 
paper products falling below that of the Covid-19 pandemic 
years, we achieved some significant milestones. The South 
African business delivered record EBITDA and North America 
the second highest ever EBITDA. 
We also generated significant cash, which enabled a further 
reduction of net debt at year-end to US$1,085 million, the lowest 
level in 30 years.
The unfavourable trading conditions faced in 2023 were further 
exacerbated by a prolonged period of downstream inventory 
destocking as buyers slowly worked through inventories that had 
been built up in the second half of 2022. In response to these 
headwinds, we concentrated on preserving selling prices, 
efficiently managed our capacity and inventories to optimise 
working capital and implemented various cost-saving initiatives 
across our operations, all of which positively contributed to the 
earnings performance.
Amidst the persistently volatile and challenging macroeconomic 
environment, we demonstrated agility and resilience. Our FY2023 
results align with the strategic fundamentals of our Thrive 
strategy: drive operational excellence, enhance trust, sustain our 
financial health and grow our business, under the overarching 
umbrella of our focus on sustainability. 
Our FY2023 performance at a glance
Profit for the year 
US$259 
million
(FY2022: US$536 million)
EPS excluding  
special items: 
52 US cents
(FY2022: 138 US cents)
EBITDA excluding  
special items
US$731  
million
(FY2022: US$1,339 million)
Net debt: 
US$1,085 
million 
(FY2022: US$1,163 million)
Dividend 
15 US cents  
per share 
(FY2022: 15 US cents per share)
	Further information about our financial performance can be viewed under the investors tab at www.sappi.com
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ABOUT US
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TARGETS
MESSAGE FROM 
OUR LEADERS
OUR KEY 
RELATIONSHIPS

Adding value to daily life 
With a burgeoning and increasingly urbanised global population, 
and with climate change and resource scarcity top of mind for many 
consumers, the world’s demand for sustainable products based on 
renewable resources like woodfibre is set to grow. Our focus is on 
creating responsibly sourced and sustainable solutions as viable 
alternatives to fossil-based products which add value to the 
everyday lives of people around the world. We play an important role 
in society, offering efficiently manufactured products, made from 
renewable raw materials. Many of our products are recyclable and 
compostable.
•	 Our Verve dissolving pulp is increasingly positioned as the Fibre 
of Choice and is used worldwide by converters to create viscose 
fibre for fashionable clothing and textiles, pharmaceutical 
products as well as a wide range of consumer and household 
products. Dissolving pulp is a highly purified form of cellulose 
extracted from trees using unique cellulose chemistry 
technology. Sappi is one of the largest manufacturers of 
dissolving pulp with a capacity of 1.5 million tons per annum 
and a 15% share of the global market
•	 Our quality speciality papers include label papers and self-
adhesives; casting and release papers used by suppliers to 
the fashion, textile, automotive and laminate industries; dye- 
sublimation papers, digital imaging papers and tissue paper
•	 Packaging papers include flexible packaging, containerboard 
and paperboard 
•	 Our bioproducts offer a viable alternative to fossil-fuel based 
products and align with our approach by making the most out of 
every tree harvested. We have established a strong position in 
adjacent businesses including: nanocellulose, furfural, 
lignosulphonates and bioenergy 
•	 Our market-leading range of graphic paper products are used by 
printers to produce books, brochures, magazines, catalogues, 
direct mail and many other print applications. 
We contribute to society through payments to governments, 
suppliers and employees, as well as returns to shareholders.
2023
54%
30%
5%
5%
6%
● To employees as salaries, 
 
wages and other benefits 
● Reinvested to grow the business
● To lenders of capital as interest 
● To governments as taxation
● To shareholders as dividends
2022
44%
48%
4%
0%
4%
● To employees as salaries, 
 
wages and other benefits 
● Reinvested to grow the business
● To lenders of capital as interest 
● To governments as taxation
● To shareholders as dividends
64%
23%
9%
0%
4%
● To employees as salaries, 
 
wages and other benefits 
● Reinvested to grow the business
● To lenders of capital as interest 
● To governments as taxation
● To shareholders as dividends
2021
Prosperity continued
Value added over the last three years 
Sappi 
is one of the largest manufacturers  
of dissolving pulp with a capacity of 
 
1.5 million
tons per annum  
15% share 
of the global market
and a
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ABOUT US
GOVERNANCE
TARGETS
MESSAGE FROM 
OUR LEADERS
OUR KEY 
RELATIONSHIPS

Facilitating economic wellbeing
Direct impact
We facilitate social and economic wellbeing by 
using labour from local communities in every 
region across the world, as well as the services 
of small and medium enterprises in areas 
around our plantations in South Africa and the 
forests from which we source sustainable 
woodfibre in other regions, together with areas 
around our production facilities globally.
Indirect impact
The indirect economic benefits of our 
operations impact on sectors including 
technical, construction and engineering 
services that are outsourced to a variety of 
contractors. The chemicals industry, in 
particular, is one of our major suppliers. In 
addition, the provision of services including 
collection of wastepaper for the industry and 
outsourcing non-core activities such as 
maintenance, medical services, transportation, 
cleaning and security creates opportunities for 
small, medium and micro enterprises.
In FY2023, we added value to the prosperity 
of the regions where we operate by:
Providing work opportunities for over 
10,000 people who are employed by 
contractors working for Sappi Forests in 
South Africa, in addition to our own employees.
Contributing to domestic growth and the 
balance of payments in each region where 
we operate by exporting products to over 
150 countries around the world. 
Prosperity continued
Sources: 
	https://www.cepi.org/wp-content/uploads/2023/07/2022-Key-Statistics-FINAL.pdf
	https://www.afandpa.org/statistics-resources 
	https://cfs.nrcan.gc.ca/statsprofile/employment/CA
	https://www.statista.com/statistics/596788/key-data-on-the-paper-and-pulp-industry-in-canada/
	https://www.forestrysouthafrica.co.za/wp-content/uploads/2022/07/SA-Forestry-Forest-Products-Industry-2019-1.pdf
Employment 
(pulp and paper 
industry)
180,000 
direct jobs
925,000 
direct jobs
345,825 
direct and indirect jobs
147,400
direct and indirect jobs
Value add 
to the  
economy
€25
billion 
added to EU GDP
US$350
billion
value of locally 
manufactured forest 
products
CAD6.7
billion
ZAR5.1
trillion
Playing a strategic role
The pulp and paper and forestry industries are strategic economic sectors and make a significant contribution to economic growth and job creation, 
particularly in rural areas, where employment and income generation opportunities are more limited than in cities.
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ABOUT US
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OUR LEADERS
OUR KEY 
RELATIONSHIPS

Agility and operational efficiency
Financial materiality:
Within the context of a persistent global economic downturn characterised by 
depressed markets, geopolitical instability and weak economic growth, acting 
boldly by being agile and prioritising operational efficiency are more important 
than ever before. With a keen focus on maintaining shareholder value, we 
continue to diligently manage working capital through production 
curtailments and by adapting our product and market mix to match 
demand. This aligns with our long-term Thrive strategy, which focuses on 
growing our portfolio in packaging and speciality papers, pulp and 
biomaterials.  By investing in our business to pursue growing areas of demand, 
we can remain profitable and competitive in the global marketplace. As an 
example of the opportunities this represents, the global sustainable packaging 
market is predicted to grow at a compound annual growth rate (CAGR) of 7.7% 
between 2023 and 2031. Shareholder value is also enhanced by our focus on 
operational efficiency and making more with less where implementation of 
best available technology maintains our competitive cost position. 
Impact materiality:
Consumers, retailers and brand owners all over the world are looking for 
sustainable paper-based packaging solutions for their products, while eco-
conscious consumers and shoppers are pressuring brand owners for more 
biodegradable, recyclable and compostable packaging, all reflecting a more 
circular economy. In addition, the environmental impact of packaging 
production, use and disposal continues to come under increasing scrutiny 
from regulators. We meet these needs by offering a broad range of paper-based 
sustainable solutions as an alternative to non-renewable based packaging in 
many of our product segments. By enhancing our operational efficiency and 
making more with less, we reduce our environmental impact of our operations.
How this issue links to other  
aspects of our business
Our global priority SDGs
 
Our strategic fundamentals
Grow our business
Sustain our financial health
Drive operational excellence
Our top 10 risks
2
Cyclical macroeconomic factors
6
Evolving technologies and 
consumer preferences
7
Supply chain disruption
10
Liquidity
The global forces shaping our 
Thrive strategy
Changing consumer and employee 
behaviour
Shifting demographics
Our highlights
Inaugurated a new 
warehouse at 
Carmignano Mill 
Modernised PM11 at 
Gratkorn Mill
Completed 
debottlenecking on PM1 
at Somerset Mill
Initiated the conversion 
and expansion of 
Somerset PM2 from 
coated woodfree paper 
(CWF) to solid bleached 
sulphate board (SBS) 
Accelerated our digital 
transformation journey
	https://straitsresearch.com/report/sustainable-packaging-market
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Agility and operational efficiency continued
Key developments in FY2023 
SEU 
In 2021, we invested in a new and fully 
automated coating kitchen at Condino Mill, 
enabling optimised mixing processes and 
advanced siliconisation testing. The 
opportunities realised in this investment were 
highlighted by recent developments related to 
our well-established Silco product range, now 
rebranded as Silco*. Following modifications to 
Silco*’s surface barrier treatment, the product 
now offers improved silicone anchorage, 
reduced silicone consumption and excellent 
silicone curing properties. These 
enhancements mean customers save on 
silicone – and costs. In addition, a possible 
lower drying oven temperature enable energy 
savings while improved runnability offers the 
potential for increased production output. 
Silco* is part of the mill’s Glassine range of 
paper-based release liners. Due to their unique 
barrier treatment and supercalendered surface 
on both sides, Glassine papers feature an 
optimal two-sidedness, outstanding 
siliconisation properties as well as easy and 
efficient processing. They are used as release 
liners for a variety of industrial tape 
applications, as process liner for composites, 
as well as for self-adhesive labels.  
In April 2023, we inaugurated a new 
warehouse at Carmignano Mill which was 
extended by 6,500 square metres (m²) from 
the original 10,000m². A significant portion of 
our dye sublimation business is sold in smaller 
reels, called either plotter rolls or mini jumbos. 
To support our customers and satisfy their 
increased demand as well as further improve 
lead times, we are now installing a fully 
automated 1.9 metre, high-speed converting 
machine and packaging line, as well as a 
3.2 metre oversize converting machine. These 
developments allow the mill to offer a complete 
in-house solution for sublimation papers from 
development and production, through 
converting to shipment.  
In December 2022, we announced the 
modernisation of paper machine number 11 
(PM11) at Gratkorn Mill. The €34.5 million 
upgrade is focused on extensive, phased 
modernisation of automation and electrical 
equipment including drives, control systems, 
quality control and inspection systems as well 
as upgrades to the coating profile and other 
areas.  
As evidenced by this investment, we believe 
that commercial print will continue to play an 
important role going forward. Gratkorn PM11 is 
the largest coated woodfree paper machine in 
Europe and maintaining its competitive cost 
position is critical to our graphic paper 
strategy. Our investment ensures that we can 
continue to serve the commercial print market 
profitably. 
In April this year we announced that 
the negotiations initiated in FY2022 to sell our 
Kirkniemi, Maastricht and Stockstadt Mills 
could not be completed and the sale had 
lapsed. 
In line with our Thrive strategic objective to 
reduce exposure to graphic papers markets, 
we then launched a programme to review the 
longer-term future of each graphic papers 
asset within Sappi. Having explored all options 
for Stockstadt Mill, including discussions with 
other potential buyers, it has become evident 
that selling the mill as a going concern was not 
possible. In response, we have completed a 
consultation process regarding the closure of 
the mill and agreed on the social plan for the 
employees. In addition, an agreement has been 
signed for the sale of the site. The closure of 
the site should be completed during the first 
calendar quarter of 2024. Subsequently we 
have also begun the consultation process on 
the potential closure of the Lanaken Mill. 
Discussions on the future of the mill have been 
initiated with the mill’s management, the 
Economic Works Council and the Works 
Council. Discussions include, among other 
possibilities, the closure of the pulp mill and 
paper machine and the sale of the site.  
We believe these restructuring measures result 
in a better utilisation of Sappi’s remaining 
assets to the benefit of our customers. They 
will continue to be served from other Sappi 
mills in Europe, focusing predominantly on 
commercial print and packaging and speciality 
paper applications in flexible packaging, 
functional papers, self-adhesive products 
including glassines and labels as well as 
dye sublimation categories.  
In line with our Thrive strategic objective to reduce 
exposure to graphic papers markets, we launched a 
programme to review the longer-term future of each 
graphic papers asset within Sappi 
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ABOUT US
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OUR KEY 
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SNA 
Underlying demand for packaging and 
speciality papers in North America is growing 
as consumer preferences and legislation shifts 
towards environmentally sustainable 
packaging solutions. Demand from the 
foodservice board sector is anticipated to 
increase significantly in the coming years as 
legislation banning the use of polystyrene 
foam packaging products in several US states 
catalyses the shift from plastic to paper 
packaging.  Accordingly, a US$418 million 
investment at Somerset Mill to convert paper 
machine number 2 (PM2) from coated 
woodfree graphic papers to solid bleached 
sulphate board (SBS) is currently in progress. 
The machine capacity will also be increased 
during the conversion from 235,000 tons per 
annum (tpa) to 470,000 tpa. SBS is used in 
premium packaging for cosmetics and 
perfume, health and beauty care, consumer 
electronics, confectionary, luxury drinks and 
more. Foodservice items such as plates, 
dishes and cups also use SBS as a sustainable 
alternative to plastic. The project is expected 
to be commissioned early in 2025. This 
investment in an integral component of our 
long-term Thrive strategy to grow our 
packaging and speciality papers portfolio and 
ensures that we can remain profitable and 
competitive in the global marketplace. 
SSA 
Following an upgrade to the PM1 kraft 
linerboard paper machine at Ngodwana Mill, 
in FY2023 we have steadily launched a new 
range of lower grammage options utilising the 
better strength properties of the linerboard 
following the upgrade. This has resulted 
in lightweighting benefits for our customers 
in terms of less material, related transport 
savings and reduced CO2 emissions. 
Key developments
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Operational efficiency 
Progressing process improvements 
In SNA, at Cloquet Mill we have finalised a project to replace 
the existing reel assembly, unwind stand and spool storage 
handling with a reel that will wind up full size jumbo reels on the 
machine. In addition to efficiency gains, having a reel capable 
of producing full size parent rolls has made it possible to enter 
new-to-Cloquet Mill paper markets that are sensitive to high 
splice counts such as ink jet web and release liner grades. 
In SSA we achieved the following: 
•	 Due to the sluggish nature of cycling up cooking acid, 
Saiccor Mill found it challenging to accelerate pulping 
production to full capacity following maintenance shutdowns 
or significant outages.  To address this obstacle, the Saiccor 
team engineered a solution to reduce the dependency on 
the recovery circuit alone and instead, establish an 
autonomous cooking acid production system. Redundant 
equipment was deployed to construct this offline cooking 
acid process and was successfully commissioned in 
FY2023. This system is now replenishing the acid circuit 
post-shutdowns and generating additional acid during 
periods of acid shortages. Through this optimisation of the 
cooking liquor circuit, production losses stemming from acid 
shortages were reduced by a remarkable 70%  
•	 The calcium-based cooking process at Saiccor Mill was 
converted to the more sustainable closed loop magnesium-
based process in 2022. This enabled additional magnesium 
spent liquor from the cooking process to be recovered for 
use in the recovery boilers in 2023, which significantly 
increased the mill’s steam production from renewable 
energy. A capital project to install a new turbine was 
approved late in 2023 and will be commissioned at the end 
of calendar 2024. The turbine will enhance the mill’s power 
self-sufficiency by 12% and slash Scope 2 emissions by an 
impressive 89,800CO2e tons as we displace fossil power 
purchased from Eskom. 
Key developments continued
Progressing our Thrive global harmonisation projects 
Our global harmonisation journey, which began in 2019 and is focused on simplification, visibility and reinforcing OneSappi, continued 
to gain momentum.  The four cornerstones of this initiative are set out in the table below. 
Name of project 
Project  Pelati 
Project  Synergy 
Project  Simunye 
Project  Digital 
Objective 
Optimising global 
business processes 
across sales, supply 
chain and finance  
Driving manufacturing 
efficiencies at scale 
for all mills across the 
group 
A global roadmap for 
one logistics system 
for all Sappi 
businesses 
A global digital 
roadmap for one 
digital platform for all 
Sappi businesses 
Benefits 
•	 Harness our globality  
•	 Improve efficiencies 
•	 Best practices at scale 
•	 Focus on value adding 
work.  
•	 Improve efficiencies 
•	 Data analytics/best 
practices at scale 
•	 Enhanced long term 
solution. 
•	 Better integration and 
coordination across 
multiple functions and 
regions. 
•	 Deliver a targeted 
EBITDA improvement 
of US$40 million 
over five years by 
implementing the 
business driven, digital 
roadmap. 
Under Project Pelati, the order change management and display process, which handles critical changes between the production 
start and the delivery date, has progressed well and further refinements are in progress. Sales volume, price and cost-centre planning 
successfully went live without any interruption and were used for the FY2024 budget process. Harmonisation of the global price 
strategy is scheduled to go live in January 2024, with design of the new price maintenance tool and implementation scheduled for 
 April 2024.  
Manufacturing efficiency underpins Sappi’s productiveness, cost containment and overall competitiveness. The Project Synergy 
team has now successfully launched configuration analysis (machine learning) for the manufacturing execution system (MES) at both 
pilot mills, Ehingen and Ngodwana. Configuration analysis continues, as does the development and testing. Planned to go live for 
Ehingen Mill is November 2024 and for Ngodwana Mill is March 2025. The team is progressing Advanced Recipe Management (ARM) 
and pulp optimiser initiatives and applying an agile development methodology for the full scope of improvements. 
The Project Simunye team is creating a global roadmap for one logistics system for all Sappi regions that synchronises end-to-end 
business processes and enables real time visibility. This in turn is leading to better integration and coordination across multiple 
functions and regions. The implementation of a new transportation management (TM) system in South Africa is complete and work to 
incorporate transportation data for all regions into one TM system continues. The build of our port-to-port container visibility under our 
global track and trace (T&T) system is now also complete. 
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Key developments continued
The Project Digital team has made progress 
in rolling out the advanced analytics capability 
in manufacturing, with 185 digital twins 
deployed or in progress across 15 mills. Digital 
twins are a virtual model of a process, semi-
finished or finished product which transforms 
data from different production systems, 
formats and time series into a usable database. 
The advantages of digital twins include 
monitoring products in real time; refining 
assumptions; increasing the level of integration 
between unconnected systems and remote 
troubleshooting of equipment. 
A key building block of realising Sappi’s digital 
strategy is the creation of a central data 
repository that will serve both our business 
intelligence and analytical business 
requirements. Google’s BigQuery was selected 
as the cloud-based data platform. Sappi has 
approved various initiatives leveraging 
BigQuery as a data warehouse with the focus 
for FY2024 to migrate further data to the 
platform driven by business use cases. Key to 
the strategy is the value creation from these 
digital initiatives, with the first three initiatives 
generating value as from the second half of 
FY2023. 
Tracking overall machine efficiency 
Globally, to ensure and enhance operational 
efficiency, we track the overall machine 
efficiency of every single paper machine in all 
three regions and compare this against ‘best 
own practice’ and ‘best realisable’. World-class 
benchmarks are considered for the different 
types of paper machines and product 
portfolios. Every year, the team challenges 
the new ‘best realisable’ figure during the 
budgeting process against new benchmarks, 
own improvements and records achieved. In 
FY2023, of our 28 paper/packaging assets, 
13 improved performance year-on-year. This 
is down from 16 in FY2022, due largely to low 
asset occupancy, stop/starts and reduced 
operating rates (speed) in North America and 
Europe. We continue to monitor performance 
to enhance understanding of grade changes, 
quality issues, sheet-breaks and mix impacts 
in order to ensure continuous improvement.
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Opportunities  
 for  
 value creation
Currently, all sodium sulphite (Na2SO3) 
used in South Africa is imported. 
Tugela Mill relies on this imported 
sodium sulphite for its neutral sulphite 
semi-chemical (NSSC) digester with 
limited affordable domestic supply.  To 
mitigate these supply risks and lower 
costs of production, the mill initiated a 
project aimed at in-house sodium 
sulphite production. This project is in 
its final stages and is scheduled for 
commissioning in early 2024. This 
project is perfectly aligned with 
Sappi’s Thrive strategy to reduce cost 
of production and de-risk raw material 
supply. It also will have the added 
advantage to supply product into 
various South African markets. 
Key developments continued
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MESSAGE FROM 
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OUR KEY 
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Low-carbon, circular bioeconomy
Verve
Financial materiality:
As global textile demand grows, 
driven by population growth, 
fashion and rising wealth in 
developing economies, the 
need to develop more climate-
friendly solutions, derived from 
renewable materials will drive 
increasing market share for 
dissolving pulp (DP), 
particularly wood-based 
cellulosics for which the bulk 
of Sappi’s DP is used.
Impact materiality:
By improving traceability in the 
textile value chain and lowering 
the carbon footprint of Verve, 
we can help to grow a healthier 
planet and increase consumer 
confidence in the products they 
purchase. 
How this issue links to other  
aspects of our business
Our global priority SDGs
 
Our strategic fundamentals
Grow our business
Sustain our financial health
Drive operational excellence
Our top 10 risks
2
Cyclical macroeconomic factors 
4
Sustainability expectations
5
Climate change
6
Evolving technologies and 
consumer preferences
The global forces shaping our  
Thrive strategy
Changing consumer and 
employee behaviour
Shifting demographics
Climate change and climate 
transition
Resource scarcity and growing 
concern for natural capital
Our highlights
Progressed collaborative textile value chain partnerships to 
develop circular solutions for fashion
Publicly disclosed our Higg FEM and FSLM scores for Cloquet 
Mill and Saiccor Mill respectively
Progressed the water stewardship project with WWF-SA in the 
uMkhomazi catchment near Saiccor Mill and extended the 
partnership for another four years
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Low-carbon, circular bioeconomy continued
Background
Sappi is one of the world’s largest producers 
of dissolving pulp (branded as Verve), with 
capacity of 1.5 million tpa and 15% of the 
global market. Our leading position was 
consolidated in FY2022 when we expanded 
capacity at Saiccor Mill by 110,000 tpa. The 
significant environmental benefits of the 
ZAR7.7 billion upgrade include reduced fossil 
fuel carbon emissions, reduced sulphur dioxide 
emissions, improved specific water use 
efficiency and reduced water consumption, 
and a reduction in solid waste to landfill from 
coal ash. 
Key developments in FY2023
Together with Accelerating Circularity and 
other industry players we helped establish 
Alliance of Chemical Textile Recycling (ACTR) to 
develop a dictionary of common terms to 
educate the industry on chemical recycling of 
textiles. It includes, among others, definitions 
of various chemical recycling technologies, as 
well as definitions of ‘waste’ in different regions 
of the world.
In a further drive to promote textile circularity, 
we are currently involved in an initiative to 
develop proof of concept for a circular 
fashion model. This involves using cotton 
waste from South Africa to produce recycled 
fibre and fabric for garments and textiles for 
the South African market.
To verify the impact of the recent capacity 
expansion and environmental upgrade at 
Saiccor Mill, a cradle-to-gate life cycle 
analysis (LCA) was completed for Verve. The 
LCA was conducted by Quantis and results 
were shared with key customers to verify the 
improved climate impact of lyocell, viscose 
and pharmaceutical dissolving pulp grades 
produced at the mill.
Cloquet Mill recently completed the Higg 
Facility Environmental Management (FEM) 
verification audit. A final score of 91.5% was 
achieved which reinforces and demonstrates 
the sound environmental practices employed 
by the mill. Supporting the call to accelerate 
transparency in the textile and apparel sector, 
a detailed performance report will be made 
available to all key stakeholders on request.
In addition, a Higg Facility Social & Labour 
Module (FSLM) verification audit was 
performed for Saiccor Mill. The mill achieved a 
verified score of 91.5% confirming the sound 
social and labour practices in South Africa and 
within Sappi.
Sappi’s excellent performance in this industry 
benchmarking programme provides additional 
assurance to our customers and value chain 
that Verve is indeed a Fibre of Choice.
About Higg
Developed by the Sustainable Apparel Coalition (SAC), the Higg Facility 
Environmental Management (FEM) is part of a suite of tools that enables 
manufacturing facilities of all sizes to measure and score their environmental 
performance against a standard set of criteria, allowing for meaningful and 
credible performance benchmarking in the apparel and textile sector. Across 
topics such as water use, carbon emissions and waste management, the Higg 
Index can be used by consumer goods brands, retailers, manufacturers, 
governments, NGOs and consumers to inform their individual sustainability 
strategies and drive collective industry transformation.
The Higg Facility Social &  
Labour Module (FSLM) measures the 
social impact of manufacturing 
across areas such as wages, working 
hours, health and safety and 
employee treatment. 
information
The Saiccor Mill achieved a verified score of 
 
91.5% 
confirming the sound social 
and labour practices in 
South Africa within Sappi
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We have been engaging extensively with South African retailers to 
educate them on sustainable viscose made from Verve and to 
highlight Sappi’s sustainability credentials, especially in terms 
of South African forestry and certification. We have also been 
promoting South Africa as the cradle of lyocell grade DP by 
focusing on Sappi’s more than 50% share of DP supplied to global 
lyocell end-markets. This has been achieved through:
•	 Key speaking opportunities at retail and fashion events
•	 Direct communication with retailer stakeholders – for example, 
coordinating efforts between retailers and Verve viscose and 
lyocell producers to secure sourcing of fibre produced from Sappi 
DP. Another example is initiating a sustainable viscose pilot with 
full traceability between certain retailers and Birla Cellulosics
•	 Holding annual Verve learning journeys where stakeholders 
participate in a week-long programme during which they visit our 
forestry and nursery operations, as well as our social impact 
programmes and Saiccor Mill.
Low-carbon, circular bioeconomy continued
Our WWF Water Stewardship project in the uMkhomazi 
catchment near Saiccor Mill now falls under the Verve brand. We 
have extended our partnership with the WWF for another four years 
and alignment on the project’s priorities and workstream objectives 
has been completed. The desired outcomes of the partnership are 
improved water security, improved biodiversity, positive social 
impact, and sustainable income for the communities. Phase one 
sets the platform for the establishment of positive stakeholder 
engagement and the creation of environmental improvement 
projects. This included alien clearing (83ha of wattle), erosion 
control and better rangeland management (13,402ha). These 
projects facilitated the creation of 24 jobs and the upskilling of 
an additional 65 community members. 
The second phase will focus on water risk by securing water 
through proper water governance and through the establishment of 
a single agreed governance structure for water management in the 
entire catchment. Other key focus areas include continued 
ecological restoration, better land use, improved socioeconomic 
wellbeing of communities and the identification of opportunities for 
additional partnerships through the development of a sustainable 
finance model. 
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Opportunities  
 for  
 value creation
In FY2024 we will be launching an 
in-store marketing and retail campaign 
in South Africa spearheaded by a top 
local fashion designer and focused on 
positioning Verve as the Fibre of 
Choice for the more sustainable 
portfolio of fibres ie lyocell and 
sustainable viscose fibres.
The campaign is underpinned by our 
focus on sustainability (including the 
aspect of traceability) as a key value 
differentiator. In addition, it aligns with 
the South African Government’s 
clothing, textiles, footwear and leather 
(CTFL) Master Plan which aims to 
stimulate the value chain feeding into 
South Africa’s major CTFL retailers. 
Low-carbon, circular bioeconomy continued
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Biomaterials
Financial materiality:
Under our Thrive strategy, one 
of our stated objectives is to 
pursue circular ecosystems 
and economies – including 
utilising 100% of each tree 
we harvest. Our innovative 
technology enables us to derive 
biochemicals and biomaterials 
from the parts of the tree which 
are not used for pulp and 
papermaking, thereby creating 
additional revenue generation 
opportunities.
Impact materiality:
By harnessing the unique 
properties of wood acids, wood 
sugars and wood lignin to 
provide a range of biobased 
products, we are enhancing 
environmental sustainability 
to the benefit of people and the 
planet.
How this issue links to other  
aspects of our business
Our global priority SDGs
 
Our strategic fundamentals
Grow our business
Sustain our financial health
Drive operational excellence
Our top 10 risks
2
Cyclical macroeconomic factors 
4
Sustainability expectations
6
Evolving technologies and 
consumer preferences
10
Liquidity
The global forces shaping our 
Thrive strategy
Move towards a circular economy
Changing consumer and employee 
behaviour
Climate change and climate 
transition
Resources scarcity and growing 
concern for natural capital
Our highlights
Progressed development 
of Viscowell, our 
lignosulphonate-based 
product used in oil-well 
drilling for mud 
thinning, fluid loss and 
as a retarder for well 
cementing.
Furfural pilot plant 
commissioned at 
Saiccor Mill and plans 
for commercial furfural 
plant at the same mill 
well advanced.
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Biomaterials continued
Background
We established Sappi Biotech in 2016, to take 
global responsibility for the commercialisation 
of high-value-add products extracted from 
woodfibre during the pulping process. 
Key developments in FY2023
Valida fibrillated cellulose is a renewable 
material – natural cellulose – the most 
abundant organic material on earth. Valida 
offers a natural, biodegradable alternative 
to synthetic ingredients in a wide range of 
applications. Valida can already be found in a 
range of commercial hair products, skincare 
products and cosmetics where the natural 
origin is complemented by the strong 
rheological performance and pleasing skin feel. 
Valida is also being successfully incorporated 
into homecare detergents, specialised 
concrete formulations and decorative paints. 
The application of Valida to significantly reduce 
frost and sun damage in fruit and vegetables 
has been successfully demonstrated.
In September 2023, the European Commission 
adopted measures to restrict microplastics 
intentionally added to products under the EU 
chemical legislation REACH. The adopted 
restriction uses a broad definition of 
microplastics, covering all synthetic polymer 
particles below five millimetres that are organic, 
insoluble and resist degradation. Some 
examples of common products in the scope of 
the restriction are cosmetics, where 
microplastics are used for multiple purposes, 
such as exfoliation (microbeads) or obtaining a 
specific texture, fragrance or colour. Also 
included are detergents, fabric softeners, 
glitter, fertilisers, plant protection products, 
toys, medicines and medical devices, among 
others. This represents a significant 
opportunity for Valida which has already been 
demonstrated as a natural, biodegradable 
alternative. Our Valida manufacturing capacity 
has been significantly increased and now 
covers multiple sites in Europe and in South 
Africa. Valida is increasingly being used 
internally to enhance the functionality and 
performance of our Sappi paper and tissue 
products. Progress has been made in the 
development and scaling of Valida Dry and 
Valida Transparent products. 
The value of our lignin business continued to 
grow from the strong performance of last year 
and we have accelerated the development and 
commercialisation of higher value lignin-based 
solutions. We progressed development of 
Viscowell, our lignosulphonate-based product 
used in oil-well drilling for mud thinning, fluid 
loss and as a retarder for well cementing. 
Oil-well drilling applications require a very high 
level of performance. Historically, this was 
achieved by modifying the lignosulphonates 
using chrome/ferro-chrome which is not 
considered environmentally friendly. The Sappi 
process of modification does not incorporate 
metals, making Viscowell more environmentally 
desirable. 
During the last quarter of 2022, we 
commissioned our furfural pilot plant at 
Saiccor Mill. The pilot plant has successfully 
demonstrated that Sappi’s furfural technology 
produces high quality furfural from 
hemicellulose-sugars present in the spent 
sulphite cooking liquor. The furfural produced 
in our pilot plant has been tested by the market 
and meets even the most stringent 
requirements. We are finalising the engineering 
design and costing of our proposed 
commercial furfural plant which will position 
Sappi as one of the largest producers of 
furfural globally and with potential to expand 
further. 
We continued to explore potential 
opportunities with a range of industry start-ups 
and technology developers, with whom we 
could possibly partner with, to develop and 
commercialise biobased products derived 
from xylose. There is ever-increasing activity 
in this area and numerous technologies are in 
either demonstration or startup phase.
About furfural
Furfural is produced from C5 sugars (sugar derived from non-food biomass) in 
hemicellulose through hydrolysis and dehydration. Essentially, it’s a platform 
chemical for the production of numerous biochemicals. Its uses range from 
adhesives, antacids, fertilisers, flavouring compounds, inks and plastics, to 
solvents for the refining of lubricating oils. It can also be used as a fungicide, 
nematicide and weed killer. A large component of the worlds furfural production is 
converted to furfural alcohol for furan resins.
information
Our Sappi Symbio product, a natural 
composite material combining high-quality 
cellulose from wood with thermoplastics, has 
proven to be ‘best in class’. However, slow 
growth in demand resulted in us taking the 
decision to stop this development and invest 
our resources into projects which are showing 
greater short and medium-term promise. This 
is in line with our view that we need to be 
flexible if we are to achieve our vision of being 
a sustainable business with an exciting future 
in woodfibre. Sappi will review this opportunity 
should demand develop in the future. We are 
also engaging with interested parties who are 
interested in acquiring this class-leading 
technology.
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Opportunities  
 for  
 value creation
We support the drive to improve the 
impact of everyday products on the 
environment, particularly on precious 
water resources. Our biomaterials 
such as Valida offer unique 
opportunities for the manufacturers of 
home and personal care products to 
significantly reduce the negative 
consequences of daily use products 
which deposit unrecoverable and 
non-biodegradable particles into the 
soil, ocean and freshwater resources. 
Ever-increasing controls and pending 
legislative changes regarding the use 
of harmful chemicals in pesticides will 
create further opportunities for our 
lignin, furfural and Valida products 
which are being tested in a range of 
products aimed at reducing the impact 
of agriculture on the environment. 
Biomaterials continued
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Innovation and collaboration
Financial materiality:
Technology is a core pillar of 
competitive advantage in our 
industry and relevant, ongoing 
technology investments are key 
to maintaining and amplifying 
enterprise value.
Impact materiality:
By developing new, competitive 
technologies we can lower 
energy consumption and 
increase our use of renewable 
energy, expand product 
lifecycles and reduce waste. We 
work to meet market supply and 
demand and grow profitability 
while respecting the boundaries 
of the planet. 
How this issue links to other  
aspects of our business
Our global priority SDGs
 
Our strategic fundamentals
Grow our business
Sustain our financial health
Drive operational excellence
Our top 10 risks
4
Sustainability expectations
5
Climate change
6
Evolving technologies and 
consumer preferences
The global forces shaping our 
Thrive strategy
Move towards a circular economy
Climate change and climate 
transition
Resource scarcity and growing 
concern for natural capital
Our highlights
The top three finalists’ entries in the Technical Innovation 
Awards represent a five-year net present value (NPV) of 
US$34.3 million at a 100% probability of success rate 
Launch of new wet-strength, alkali-resistant Parade Label Pro WS 
Commercialisation of bagasse-based compostable 
thermomoulded food grade bowls and plates 
Collaboration with Xeikon to develop printed, recyclable 
paper-based flexible packaging 
New cloud-based Stage-Gate platform rolled out across the group.
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Innovation and collaboration continued
Background 
Research and development (R&D) at Sappi 
aligns with our Thrive strategy which 
prioritises growth in packaging, product 
diversification, efficiency, productivity and 
quality, as well as innovative and sustainable 
solutions, which are a mix of new or improved 
products or optimised processes. Our R&D 
initiatives focus on early identification of trends 
and disruptive technology that challenges the 
status quo. 
Under Sappi’s Thrive strategy, we are 
committed to making the most out of every 
tree harvested. This means investing in 
innovation and R&D in order to develop new 
processes and biomaterials which extract 
more value from each tree, within the context 
of a climate-constrained world, our own 
climate-related goals and our alignment 
with our priority UN SDGs.
Sappi R&D efforts focus on taking us into new 
markets and introducing new products which 
firstly, meet the needs of environmentally 
conscious consumers and secondly, find 
solutions for a new manufacturing reality 
in a low-carbon, biobased circular economy. 
Projects are progressed to commercialisation 
through an internally developed stage-gate 
model. 
Key developments in FY2023 
In FY2023, R&D spend was US$44 million. 
We continued to focus on:   
•	 Meeting the challenges of the packaging 
legislative environment, in particular 
single-use plastics, microplastics and 
recyclability 
•	 Developing lignin value-add products 
•	 Assessing alternative pulping technologies 
•	 Optimising the graphic papers sector and 
increasing focus on cost reduction 
•	 Environmental impacts, including climate 
change risk; water treatment and product 
circularity in our products (recyclability, 
compostability and biodegradability). 
Another area of focus was decarbonisation 
including pulp backward integration which 
brings renewable energy opportunities aligned 
with our strategy. In addition, our Future Energy 
Technologies and Decarbonisation ‘cluster’ (or 
working group) is exploring novel technologies 
for fuel switching and deep decarbonisation 
in terms of Scope 1 and 2 emissions, with a 
particular emphasis on energy, pulping, 
papermaking and bleaching. 
We rolled out the new cloud-based Stage-
Gate platform to manage group innovation 
and the R&D portfolio aligning regional 
systems into one global process. All relevant 
stakeholders have received comprehensive 
training on the governance framework of the 
newly harmonised stage-gate process and 
platform navigation. ‘Gate’ meetings have 
taken place in all regions and have significantly 
enhanced the decision-making process. 
About our Stage-Gate process 
New software was introduced to create a OneSappi approach to R&D and 
ideation. It uses a structured Stage-Gate process to develop technologies, deliver 
products to market, and process improvements to the mill, ensuring positive 
financial contribution or cost savings. The software was designed to fit Sappi’s 
existing approach to R&D and adapted to cater for future improvements 
recommended by the group technology management team. The platform 
incorporates forecasts for financial value delivery and using the net present value 
(NPV) metric for every R&D project. 
The process assesses the viability of projects in small steps using a cross-
functional team of individuals to decide whether to progress the project to launch. 
The process is designed to fail-fast early, improve the success rate of launching 
projects that deliver financial value delivery and shorten time to market. Using a 
standard set of in-house questions, the platform was designed to ensure that only 
projects that align with Sappi’s strategy for growth, improved environmental 
performance and meet the voice of the customer, are progressed to launch. The 
project risk is assessed across several elements to create a project scorecard to 
inform decision-making. 
information
An idea management module incorporated into the new platform was piloted for new product 
development ideas for Stanger Mill. The official handover to the process owners, the regional 
Vice Presidents of R&D and Innovation, is planned for the start of FY2024. 
Under Sappi’s Thrive strategy, we are committed 
to making the most out of
every tree harvested
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In terms of product innovation, key 
developments were: 
•	 The expansion of our portfolio of wet-glue 
label papers with the new wet-strength, 
alkali-resistant Parade Label Pro WS, 
produced at Gratkorn Mill. This expansion 
complements our non-wet-strength Parade 
Label Pro for wet-glue labels, providing full 
coverage of our customers’ needs. Parade 
Label Pro WS is a single-sided double-
coated label paper that also features a 
functional coating on its reverse side. 
Outstanding printing and finishing results 
can be achieved thanks to its excellent 
surface. The universal paper, which is also 
available linen-embossed, covers basis 
weights from 65 to 80gsm and can be 
processed with the most common printing 
techniques like flexo, offset and gravure. It is 
suitable for high-quality labels for returnable 
containers in the beverage and food 
industry, such as returnable glass and PET 
bottles. The paper also offers good lay-flat 
properties and versatile finishing options. 
Sappi recently initiated extensive practical 
testing with selected customers with the aim 
of ideally meeting the requirements of the 
industry and perfecting the properties of 
Parade Label Pro WS. Following the 
successful completion of this validation 
phase, the product is scheduled for final 
release to customers in 2024. In the 
meantime, we are making test material 
available to all interested companies for 
qualification purposes. 
•	 Following the installation of two machines, 
the production of our bagasse-based 
compostable thermo-moulded food 
Innovation and collaboration continued
grade bowls and plates at Stanger Mill 
began in February this year. We are selling 
9 and 10-inch plates to a South African 
retailer, will soon be manufacturing 
hamburger boxes for the same retailer and 
are currently engaged in trials with a 
US-based manufacture of consumer 
products. 
This year’s global Technical Innovation 
Awards focused on the theme ‘Think, Inspire, 
Amplify’.  
The SEU team won the global award for 
innovation with their project on digester 
optimisation at Ehingen Mill. Minimising 
energy demand through improvements in 
energy efficiency makes a critical contribution 
to reducing CO2 emissions. Although the 
sulphite pulping process dates back over a 
century, there are still opportunities to improve 
the process. At the end of the cooking 
process, hot gas and water vapour must be 
released from the digester before emptying it. 
The team found that installing a new liquid-to-
liquid heat exchanger led to substantial energy 
savings and opened up further opportunities 
to improve the process. The recognition of this 
project is an excellent example of how Sappi is 
rewarding innovation that helps the company 
to achieve its climate targets – specifically 
energy intensity reduction and associated 
GHG emission and intensity reduction. 
The SNA team were the runners-up with the 
development of Proto Blister paperboard 
at Somerset Mill. ‘Blister pack’ describes 
packaging that uses a translucent 
thermoformed pocket or cup that covers the 
product, which is then heat-sealed to an 
adhesive coated paperboard card (blister 
board). The blister board is then expected to 
separate within the fibre layer, yielding fibre tear 
onto the heat-sealed “blister” cup when it is 
torn away from the substrate upon product 
removal. This fibre-tear performance gives the 
consumer confidence that the product has not 
been tampered with prior to purchase. This 
packaging is often used in products that rely 
heavily on visual marketing, such as health and 
beauty products, personal care products, 
office products and others that are often 
showcased in an in-store rack. 
Blister packaging that uses only paperboard 
greatly facilitates recycling and reduces plastic 
use. Proto Blister was developed to provide the 
same superior print surface as Proto, but with 
added functionality for demanding blister 
packaging applications. The product provides 
both reliable fibre tear and strong anchorage to 
the pocket to prevent product leakage during 
transport, storage and store display. 
The SSA regional winners were from Tugela Mill 
which produces sodium lignosulphonate for 
sale in various markets. Liquid lignosulphonate 
is used extensively as a dust suppressant in 
construction markets. The closure of 
Lignotech South Africa in 2020 reduced the 
liquid lignosulphonate capacity. Tugela Mill was 
in an excellent position to fill this gap after 
having developed a cooking liquor recovery 
system where liquor previously burnt would be 
processed and recovered to produce a 
saleable lignosulphonate product. The team 
designed a unique system to improve 
recovery of the liquor using redundant 
equipment at the mill thereby increasing the 
saleable liquid volume of the Lignex product. 
These three finalists’ projects represented 
a total combined five-year NPV of 
US$34.3 million at a 100 % probability of 
success rate. 
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Innovation and collaboration continued
 Progressing the
development of 
printed, recyclable 
paper-based flexible packaging
The paper-based flexible packaging market is 
experiencing strong growth due to demand 
for resource-saving, recyclable and plastic-
free alternatives from end-users as well as 
brand owners and converters.  
The use of a primer or varnish, which is sometimes required, can have a negative 
impact on the recyclability of the final packaging. Paper-based substrates usually 
require a primer when printing with water-based inkjet or UV inkjet technology and 
liquid toner to ensure satisfactory results. Dry toner technology, on the other hand, 
usually requires an additional coating for mechanical stability in the further packaging 
process and often reaches its limits in terms of thermal stability. 
Against this backdrop, we have collaborated with Xeikon which develops digital 
printing engines, both toner-based and inkjet, for a variety of packaging applications. 
One of its latest developments is Titon, a new toner formulation which offers all the 
benefits of UV inks without the disadvantages. Specifically, this sees the combination 
of the food-safe and odourless properties of dry toner with the special resistance to 
chemicals and mechanical abrasion of UV inkjet ink. 
Titon can be used to directly print onto paper-based packaging 
materials without the need for additional varnishing or lamination to 
protect the print. This includes many types of flexible packaging for 
food products, including papers that are coated on one side for bags, 
pouches and sachets, or on both sides for wrappers such as baked goods, 
confectionary, sugar, flour, herbs and spices, and coffee and tea.  
To date, the best printing results have been achieved with Sappi’s functional 
papers, Seal Silk with a 67g/sqm basis weight and Sappi AvantGuard S 
Natural in 75g/sqm grammage. The one-side coated, heat-sealable 
Seal Silk is recommended for standard flexible packaging 
particularly in the food and non-food sectors, while the 
uncoated, heat-sealable AvantGuard S Natural high-barrier 
paper is equally suitable for various flexible packaging 
applications in the food and non-food markets. AvantGuard S 
Gloss is also now being tested at one of Titon’s beta sites. 
Together, Titon technology and our recyclable barrier paper-
based solutions, offer complete recycling of the entire packaging 
in the paper waste stream and subsequent recovery, for example in 
corrugated applications.
102 Sappi 2023 Group Sustainability Report
GLOSSARY
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
ABOUT US
GOVERNANCE
TARGETS
MESSAGE FROM 
OUR LEADERS
OUR KEY 
RELATIONSHIPS

Opportunities  
 for  
 value creation
The Decarbonisation and Future 
Technology 1.5 team has been 
exploring carbon capture initiatives as 
part of the road to decarbonisation. 
Feasibility studies for few selected 
mills are under evaluation. As the 
pulping process is energy and water 
intensive, this team has also been 
exploring low energy pulping 
technologies for the future. An 
alternative pulping technology is being 
evaluated with the potential to 
increase yield, reduce cooking time, 
increase pulp strength and reduce 
water usage.
Innovation and collaboration continued
103 Sappi 2023 Group Sustainability Report
GLOSSARY
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
ABOUT US
GOVERNANCE
TARGETS
MESSAGE FROM 
OUR LEADERS
OUR KEY 
RELATIONSHIPS

RESILIENCE
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
104 Sappi 2023 Group Sustainability Report

People
Enhancing trust 
 to build a thriving world 
United Nations Global Compact (UNGC) 
Principle 1: Business should support and 
respect the protection of internationally 
proclaimed human rights
UNGC Principle 2: Make sure their own 
corporations are not complicit in human rights 
abuses
UNGC Principle 3: Businesses should uphold 
freedom of association and the effective 
recognition of the right to collective bargaining 
UNGC Principle 4: The elimination of all forms of 
forced and compulsory labour
UNGC Principle 5: The effective abolition of child 
labour
UNGC Principle 6: The elimination of 
discrimination in respect of employment and 
occupation
Our management approach to people is based on our 
strategic driver of ‘enhance trust’. This means strengthening 
our understanding of – and proactively partnering with – 
customers and communities, driving sustainability 
solutions and meeting the changing needs of every 
employee at Sappi.
It takes great people to make great products. Our employees 
are diverse, but they share unique problem-solving abilities, 
resilience in challenging the status quo and collaborative 
spirit. These qualities underpin our focus on developing 
breakthroughs that enable lasting, positive outcomes for our 
stakeholders and lighter footprint on the world. Together, 
we are unlocking value for our colleagues and our 
communities, meeting the needs of a growing, 
evolving society and using our expertise to 
create a sustainable future.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
105 Sappi 2023 Group Sustainability Report

Our 2023 performance at a glance
1	 The people numbers given here differ from those supplied in the Annual Integrated Report as the numbers in the 
latter are supplied by Finance which calculates numbers differently from Human Resources (HR). Those given here are 
supplied by HR. 
2	 Weighted average.
US$624
average training spend4  
per employee
Per region:
SEU: 
6,130
SNA: 
2,188
5
SSA: 
5,223
Approximately 
10,000 
people are employed by Sappi 
Forests’ contractors
Our people per gender: 
Women: 
2,759
Men: 
10,774
Per age (Sappi Limited): 
15.52% 
below 30, 
49.55% 
are between 30 and 50, and
34.92%
are above 50
50.39 hours 
of training
2 
per employee (global average, of 
which 74.27% allocated to skills 
training and 25.73% allocated to 
compliance training3)
Our people1
3	  Compliance training is defined as mandatory training such as Code of Ethics, Anti-Trust, Intellectual Property, or 
Anti-Bribery training. Compliance covers regulatory and legal matters that employees need to be aware of, but that 
will not necessarily make them more effective at their work. Skills improvement is training that is designed to improve 
employee effectiveness.
4	  Weighted average.
5	  Gender of 8 employees has not been disclosed.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
106 Sappi 2023 Group Sustainability Report

Promoting diversity and 
inclusion 
Our collaborative culture invites 
diverse perspectives, inspires new 
ways of thinking and unleashes 
organisational creativity. We 
celebrate our differences and strive 
to create a workplace free from 
discrimination and harassment, 
acknowledging and accepting 
differences among our people in 
age, nationality, class, ethnicity, 
gender, physical ability, race, sexual 
orientation and spiritual practice. 
Our diverse workplace benefits 
different skill sets and backgrounds, 
as well as unique ways of doing 
things and divergent ways of thinking 
innovatively. For Sappi, diversity is a 
key driver that enhances our 
competitiveness and viability as a 
business and contributes to a thriving 
world. These in turn enhance our 
ability to service diverse, rapidly 
evolving global markets. 
Accordingly, we have established 
2025 global and regional targets to 
promote gender diversity at a senior 
level. In addition, under our SSA 
2025 targets we are striving to 
enhance our BBBEE-related 
performance, which includes goals 
for racial diversity.
Gender split per region (senior management – percentage)
Female
Male
SEU
16.85%
83.15%
SNA
22.96%
77.04%
SSA
27.37%
72.63%
Group total
22.40%
77.60%
Unlocking value for others
Giving back to our communities makes us stronger. We work to unlock value 
not only for our own people, but also those for our neighbouring communities 
through targeted social investment, social impact and shared value 
programmes. Read more: Creating a positive social impact in our 
communities. We also unlock value for our customers by offering a wide range 
of products based on natural, renewable resources.
Monitoring turnover and new hires
Staff turnover is the result of retirements, resignations or changed business 
requirements. This brings new people with new skills into the business to drive 
innovation and a fresh approach while maintaining a certain level of continuity. 
However, there are costs to constant turnover, and employees who grow with 
Sappi add value based on their institutional knowledge and their 
understanding of our culture, customers and products. Accordingly, we 
monitor turnover very carefully. Our global voluntary and involuntary (total) 
turnover rate for FY2023 was 9.18% (FY2022: 8.41%). Globally, voluntary 
turnover was 6.15% - the same as in FY2022.
We also monitor turnover by gender as should this be very high, it could 
indicate a problem with attitudes or limited career opportunities for women. 
However, as indicated in the table below, this is not the case. The voluntary 
turnover rate for women is 1% less than the global voluntary turnover average.
Voluntary turnover by gender (as a percentage of the number of 
employees per gender)
Male turnover
Female turnover
SEU
6.73%
8.78%
SNA
10.55%
15.20%
SSA
2.98%
3.01%
Group total
6.10%
6.38%
Recompensing fairly and rewarding high performance
Our labour standards ensure that our remuneration practices are fair, with 
compensation levels set to reflect competitive market practices and internal 
equity as well as company and individual performance. In all three regions, 
labour is sourced on the open market. We ensure we pay market-related 
wages in line with or above local legislation.
Our recognition programmes are discussed in ‘Our key relationships ’.
Income differentials between genders
Female
Male
Number of
employees
included
All employees
average
SEU
93.18%
101.64%
1,334
98.53%
SNA
97.79%
104.48%
833
102.63%
SSA
108.38%
112.79%
4,727
111.49%
Group total
101.29%
108.29%
6,894
106.06%
The data used in the comparison is the comparative ratio against the midpoint of the person’s 
salary scale. This is only measured for permanent employees as fixed term contractors are 
generally not linked to specific grade-based salary scales. Employees who are not graded, or 
not linked to salary scales, are not included. 6,894 employees have data for this metric for 
FY2023. 
Our management approach to People
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
107 Sappi 2023 Group Sustainability Report

Ensuring disciplined behaviour
Disciplined behaviour is essential not only for 
individual wellbeing, but also to ensure our 
group goals and objectives. In each region, 
disciplinary codes ensure disciplinary 
procedures, while grievance policies entrench 
the rights of employees, including the right to 
raise a grievance without fear of victimisation, 
the right to seek guidance and assistance from 
a member of the Human Resources (HR) 
department, or their representative, at any time 
and the right to appeal to a higher body, 
without prejudice.
Read more:
	Group Human Resources policy
	Group Human Rights policy 
Please refer to  
Our 2023  
 People  
indicators for tables detailing
•	 Total workforce by level and gender
•	 Gender split per region
•	 Workforce profile by gender and nature of 
employment
•	 Workforce by minority group (numbers)
•	 Gender and age split at executive level
•	 New hires (internal and external) by age group, 
gender and region
•	 New external hires: gender percentages
•	 All exits: voluntary and involuntary
•	 Voluntary exits as a percentage of permanent 
employees (voluntary turnover)
•	 Voluntary exits only (resignations)
•	 Absenteeism rate by gender and overall 
•	 Total turnover rate (voluntary and involuntary)
•	 Voluntary turnover by gender – voluntary exits as 
a percentage of the number of employees per 
gender
•	 Voluntary and involuntary exits by gender, age 
category and region.
Our management approach to People continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
108 Sappi 2023 Group Sustainability Report

Employee and contractor safety
Financial materiality:
Entrenching a strong safety 
culture is the moral 
responsibility of every employer. 
However, a strong safety culture 
also makes good financial sense. 
If a worker is injured on the job, 
it costs the company in terms of 
lost working hours, increased 
insurance costs, workers’ 
compensation premiums and 
legal costs.
Impact materiality:
Productivity and morale suffer 
when workplaces are unsafe. 
When a workplace is safe, 
employees feel more engaged 
and connected with the 
company. We strive to ensure 
that all our people have a 24/7 
safety mindset, inculcating this 
through various initiatives and 
leading by example.
How this issue links to other  
aspects of our business
Our global priority SDGs
Our strategic fundamentals
Grow our business
Drive operational excellence
Enhance trust
Our top 10 risks
1
Safety
9
Employee relations
The global forces shaping our  
Thrive strategy
Rising social inequality and 
growing social activism with 
increased expectations of business
Our highlights
Zero fatalities
Continuous 
improvement in the 
lost-time injury 
frequency rate (LTIFR) 
across all regions
Safety recognition 
awards launched in SNA 
The safety awards in SSA 
have been extended to 
include environmental 
awards
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
109 Sappi 2023 Group Sustainability Report

Employee and contractor safety continued
Background
The safety of our employees and stakeholders is a 
key value as set out in our values statement: As 
OneSappi, we do business safely, with integrity and 
courage, making smart decisions that we execute 
with speed. 
By involving all personnel (own employees and contractor 
employees), sharing information and managing risk in 
accordance with accepted best practice, we aim to drive down 
the severity of accidents and of near misses towards our target 
of zero.
All three regions within the group have safety programmes and 
processes with the objective of creating an environment where 
no person will suffer permanent disability or loss of life. We do 
not accept that injuries and accidents are inevitable and remain 
committed to Project Zero with the continuance of improved 
personal behaviour and making safe choices underpinned by 
risk assessments, group sharing of all incidents and root cause 
investigations, enforcement of compliance and leadership 
engagement with our people. 
Key developments in FY2023
We achieved our primary goal of no fatalities and all regions 
showed continuous improvement in LTIFR. The combined 
LTIFR was 0.24 (FY2022: 0.31) against a target of 0.32. However, 
there was a slight uptick in severity as measured by the LTISR with more 
workdays lost from injury than the previous year. 
There was a continued positive turnaround on LTIFR with each region achieving their best ever 
performance. SEU’s LTIFR for the year was 0.40 (FY2022: 0.55), while SNA’s LTIFR was 0.14 
(FY2022: 0.18) and SSA’s LTIFR was 0.22 (FY2022: 0.26).
Definition of key metrics
LTI
is a lost-time injury
NLTI
is a non-lost-time injury
LTIFR
is the lost-time injury frequency rate, 
and is calculated by dividing the 
number of lost-time injuries and a 
group-wide standard for man hours 
by the unit’s man hours, ie, 
LTIFR = LTI * 200,000/unit’s 
actual man hours 
LTISR
is the lost-time injury severity rating 
and in a similar manner to the 
frequency rate, is calculated by 
dividing the product of the number 
of days lost to the injury and the 
group-wide standard hours by the 
unit’s man hours, ie, 
LTISR = Number of days lost* 
200,000/actual man hours
II
the Injury Index is a product of the 
LTIFR and the LTISR and provides an 
overall sense of safety within the 
measured unit, ie, II = LTIFR * LTISR
AIFR
is the All-Injury Frequency Rate 
which is calculated by adding 
(LTI + NLTI)* 200,000/actual 
man hours 
OIR
OSHA Incidence Rate is applicable 
only to SNA and is arrived at by 
taking the number of recordable 
incidents* 200,000/actual man 
hours. A recordable incident is any 
report to a medical practitioner
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
110 Sappi 2023 Group Sustainability Report

Employee and contractor safety continued
The Annual Global Safety Awareness Month which is held 
in May/June each year with various face-to-face engagement 
sessions was well supported. The theme for this year 
emphasised personal commitment to safety with theme 
‘Safety Starts with Me’. 
Safety recognition gained traction with the launch of the SNA 
Safety Impact Awards which were rolled out in Q4 FY2023 and 
which aim to identify successful safety projects that have the 
greatest potential to reduce or prevent injuries at our sites in 
the region. SSA also hosted their safety and environment 
awards shortly after year-end to celebrate individuals and 
teams who have made it their mission to help Sappi thrive, 
safely and sustainably. This year, for the first time, a new 
environmental component was added to the 
awards, to recognise those who take Sappi 
beyond compliance towards a deeper 
commitment to the natural state of the 
environment. Categories included an SSA 
safety champion of the year, as well as safest mill 
and forestry unit of the year, among others. Own 
employees, contractors and contractor 
employees were recognised across various 
categories. Ngodwana Mill was the winner of the 
South African Industrial Emergency Response 
Competition with more than 20 participating fire 
teams.
Now accepting submissions!
Sappi North America’s Safety  
Impact Awards (SIAs)
Safety is a core value and a cornerstone of Sappi’s workplace  
culture as we continue to foster an environment that helps us all  
thrive. It takes all of us to build a safer Sappi, which is why we’re  
calling for entries to the SNA Safety Impact Awards.
Let’s learn from one another by sharing the ideas that make our  
sites safer. The new Safety Impact Award (SIA) program provides  
an opportunity to highlight a team safety project that can help  
reduce or prevent injuries at Sappi.
SUBMISSION DEADLINE:
September 29, 2023
1  Identify a project that improves workplace safety  
or gets Sappi employees more engaged with safety.
2  Fill out a form with your team to get approval to 
implement your project.
3  Once approved, implement your project and gather 
data to show its impact.
4  Your site’s SIA committee will review submissions 
and select finalists.
5  The overall winning team will be announced in  
March 2024 and site winners will be recognized 
during Global Safety Awareness Week 2024.
Submit in five easy steps
ADDITIONAL QUESTIONS? 
Contact your site safety 
leadership team, mill leadership 
team or site safety team.
PROGRAM DETAILS:
Scan the QR code to access  
the online submission form.
In June 2023 there were multiple veld and forest 
fires in the forestry area of Mpumalanga 
province. These fires necessitated the active 
deployment of aerial fire bombers and ground-
based firefighting resources. While fighting a fire 
at our Nooitgedacht plantation, a pilot, flying at 
low altitude, crashed and was killed. While the 
pilot was not contracted to Sappi, we view any 
fatality as a tragedy and extend our deepest 
condolences to his family and friends.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
111 Sappi 2023 Group Sustainability Report

Employee and contractor safety continued
Note: We calculate LTIFR by dividing the product 
of lost-time injuries and a group-wide standard for 
work hours by the unit’s work hours, ie LTIFR = 
LTI* 200,000/units actual work hours. LTISR is 
the lost-time injury severity rating and in a similar 
manner to the frequency rate, is calculated by 
dividing the product of the number of days lost to 
the injury and the group-wide standard hours by 
the unit’s man hours, ie LTISR = Number of days 
lost* 200,000/actual man hours.
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0
20
40
60
80
100
120
LTIFR
0.53
0.48
0.46
0.44
0.43
0.54
0.35
0.38
0.31
0.24
LTISR
Sappi group – LTIFR and LTISR combined
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
 LTIFR	
	
 LTISR
0
1
2
3
4
5
6
7
8
9
10
● Contractor ● Own
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Number of fatalities
Sappi group – Combined fatalities
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0
20
40
60
80
100
120
LTIFR
0.53
0.48
0.46
0.44
0.43
0.54
0.35
0.38
0.31
0.24
LTISR
Sappi group – LTIFR and LTISR combined
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
LTIFR
LTISR
Sappi North America – LTIFR and LTISR combined
0
5
10
15
20
25
30
35
0.53
0.50
0.66
0.48
0.34
0.27
0.15
0.30
0.18
0.14
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
LTIFR
LTISR
Sappi South Africa – LTIFR and LTISR combined
0
20
40
60
80
100
120
0.38
0.34
0.33
0.32
0.32
0.45
0.30
0.30
0.26
0.22
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
 LTIFR	
	
 LTISR
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
 LTIFR	
	
 LTISR
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
 LTIFR	
	
 LTISR
ABOUT US
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112 Sappi 2023 Group Sustainability Report

Employee and contractor safety continued
Regional safety achievements
SEU
•	 Ehingen Mill – the first SEU mill to reach  
2 million worked hours without LTI and new 
regional record (>2.5 million worked hours 
without an LTI)
•	 Maastricht Mill – 1 million worked hours 
without LTI 
•	 Gratkorn Mill, Maastricht Mill, Carmignano 
Mills and Wesel Warehouse site set new 
records for hours worked between LTIs
•	 Kirkniemi Mill – new mill record lowest 
number of LTIs.
SNA
•	 Zero lost-time injuries (LTIs) in FY2023 at the 
Allentown Sheeting Facility, Technology 
Centre, CTRR (Cloquet Terminal Rail Road) 
Matane Mill and Somerset Mill 
•	 Somerset Mill has surpassed 1,000 days and 
will soon surpass three years and 5 million 
work hours with no own employee LTIs
•	 Westbrook Mill achieved zero lost-time 
injuries and is nearing 600 days with no LTIs. 
SSA achievements included:
•	 Forestry KwaZulu-Natal (KZN) Zululand 
Coastal – 7.6 million lost-time injury free 
man hours
•	 Ngodwana Mill combined – 3.0 million 
lost-time injury free man hours
•	 Saiccor Mill contractors – 2.0 million 
lost-time injury free man hours
•	 Lomati Mill employees – 1.85 million 
lost-time injury free man hours and worked 
683 days without an LTI
•	 Forests Midlands Bulwer – 2.5 million 
lost-time injury free man hours
•	 Forests KZN Umvoti North area – 1.8 million 
lost-time injury free man hours
•	 Forestry Mpumalanga (MPU) plantations and 
contractors – 1.2 and 4.3 million lost-time 
injury free man hours respectively
•	 Forestry MPU Highveld Area – 3.4 million 
lost-time injury free man hours
•	 Saiccor Mill employees – 1.4 million  
lost-time injury free man hours.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
113 Sappi 2023 Group Sustainability Report

Employee and contractor safety continued
SNA’s future focus areas include:
•	 Moving from the Working Bird training platform 
to Sappi Advance and incorporate action items 
flowing from the employee engagement survey
•	 Developing best practice by using statistical 
trends and pareto analysis on root causes (an 
approach which states that 80% of problems 
can be traced back to 20% of causes and which 
identifies the problem areas or tasks that will 
have the biggest payoff) 
•	 Near miss reporting and an emphasis on lead 
indicators
•	 Enhanced collaboration 
through safety impact 
awards for hourly paid 
employees and 
engagement on the 
PM2 project at Somerset 
Mill.
Looking forward 
SSA’s future focus areas include:
•	 Make SSA twice as safe by 2027 
•	 Continue to reinforce the highly successful 
Stop, Think before you Act (STBA) initiative
•	 Extend the 60 second risk assessment to 
include job safety analysis fundamentals 
•	 Execute a systemic solution for the transfer of 
lessons learnt sharing and visibility in all mills
•	 Conclude assessment and finalise adoption of 
the IsoMetrix audit module with a view to 
reducing risk
•	 Reinforce safety behaviour and culture through 
the Lean on Me programme (primarily targeted 
at supervisors and supervisors in the 
manufacturing business) and Visible Felt 
Leadership
•	 Continue to roll out the earth saving rules as 
part of an integrated approach.
SEU’s future focus areas include:
•	 Developing further maturity and quality of 
the roll-out of incident investigations and 
behaviour-based safety (BBS) audits aligned 
with the Safety Handbook protocols across 
all operating units
•	 System improvements including UX (user 
experience) 
•	 Consolidation of various lead indicator 
metrics or input KPIs through the safety and 
manufacturing platforms including 
an emphasis on Last Minute Risk 
Assessments (LMRAs), BBS audits and 
thorough root cause analysis incident 
investigations
•	 Messaging and communication related 
to the new safety awards programme 
(see box on page 
 116). 
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
114 Sappi 2023 Group Sustainability Report

Employee and contractor safety continued
Promoting 
wellness and 
wellbeing 
We educate and 
empower our people 
to take ownership of 
their wellbeing, 
providing support in 
various ways.
SEU
•	 Each mill, together with the mill lead teams, 
decides on their priorities for the year
•	 Programmes include preventive medical 
healthcare check-ups, flu vaccinations and 
immunisations
•	 Support for employee sports and social activities, 
among others.
SNA
•	 All salaried and hourly employees (and their 
spouses) who participate in one of Sappi’s 
medical plans are encouraged to complete a 
health risk assessment questionnaire
•	 Wellness events, including healthy cooking 
demonstrations and wellness webinars, at all sites
•	 On-site flu vaccinations, employee assistance 
programmes in support of mental health, gym and 
other exercise subsidies.
SSA
•	 Each operating unit has an elected Employee 
Wellbeing Committee that represents staff 
working in the field of employee wellbeing; 
health workers; line management responsible 
for health; human resources staff; trade unions 
and peer educators
•	 The committees assist in rolling out employee 
wellbeing programmes
•	 These include awareness and education for 
substance abuse (alcohol and drugs); basic 
counselling for referrals to external providers; 
financial wellness; trauma counselling; change 
management issues as well as employee 
wellbeing and relationship issues to name a few.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
115 Sappi 2023 Group Sustainability Report

Employee and contractor safety continued
Opportunities  
 for  
 value creation
Based on the success of 
similar programmes in SNA 
and SSA, in FY2024, we will 
be rolling out a safety award 
in SEU to recognise 
proactive initiatives that 
improve safety culture and 
enhance employee 
engagement related to 
safety.
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
116 Sappi 2023 Group Sustainability Report

Employee and contractor safety continued
Sappi talent
Financial materiality
Companies that are diverse, 
equitable and inclusive are 
better able to respond to 
challenges, win top talent, and 
meet the needs of different 
customer bases. Accordingly, 
we strive to creating a diverse, 
inclusive working environment 
that establishes a sense of 
belonging among employees 
and shared sense of purpose. In 
addition, our people are 
encouraged and supported to 
upgrade their job-related skills 
and knowledge to improve their 
job performance and abilities 
for future career growth. These 
approaches further entrench 
our strategic pillar of ‘trust’ and 
lead to greater levels of 
retention, connection and 
productivity and translate 
directly into improved 
performance and stronger 
business results and profits.
Impact materiality
Developing potential in a diverse, 
inclusive working environment is 
important for both business 
performance and individual 
wellbeing. A workplace which 
encourages people to reach their 
full potential is not only more 
productive, but employees are likely 
to be more engaged and fulfilled. 
How this issue links to other  
aspects of our business
Our global priority SDGs
Our additional SSA priority SDG
Our strategic fundamentals
Grow our business
Drive operational excellence
Enhance trust
Our top 10 risks
9
Employee relations
Our highlights
Exceptional participation in the 2023 employee engagement 
survey
Progress in revised human resources strategy
Two new management training programmes launched
Significant uptake of Advance training and performance 
development system
The global forces shaping our 
Thrive strategy
Deglobalisation, polarisation and 
increased geopolitical tensions
Rising social inequality and 
growing social activism with 
increased expectations of business
Changing consumer and employee 
behaviour
Shifting demographics
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
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117 Sappi 2023 Group Sustainability Report

Sappi talent continued
Background
Over the past two years, the global HR team has been 
working to identify the processes, systems and priorities 
that will ensure improved business support along with 
improving the overall value offering to employees. Our 
revised strategy called ‘HR Beyond’ aims to enhance delivery 
on Sappi’s Thrive business strategy as well as the regional 
and segment business strategies.  
Delivery of the strategy is being overseen by a newly formed 
HR Beyond Steering Committee which has prioritised four 
global processes: 
Talent, 
learning and 
performance
Master data 
and analytics 
Compensation 
and  
benefits 
Strategic 
talent 
sourcing 
Following a successful HR Beyond conference 
in March, a global Organisational Development 
council has been created with participants 
from each region. It will drive further efficiency 
improvements and alignment for performance, 
talent, succession, engagement and learning 
processes. 
Annually, we conduct talent reviews for all 
operations and key functions, identify key roles 
and implement capacity building initiatives with 
a specific focus on technical and leadership/ 
management development. To determine the 
training agenda for each year, we conduct a 
rigorous needs analysis underpinned by the 
performance management process. We run 
several development initiatives, including:
•	 On-the-job training to develop practical skills 
and confidence
•	 Structured training to ensure that employees 
are up to date with theoretical aspects 
related to their field of work
•	 Training in soft skills such as communication 
to develop well-rounded employees.
Key developments in FY2023
To establish strong skills and build leadership 
capability at all levels we provide innovative 
training and development opportunities and 
give performance feedback. 
The Sappi Advance online learning platform 
which also enables performance feedback, has 
now been deployed in all regions. The 
performance enablement process is well 
entrenched in the business with all employees 
using the Sappi Advance platform.
The focus of training and development at Sappi is to invest in current and future talent 
and to grow our people’s leadership, behavioural and technical competencies. 
Based on feedback from participants, we are replacing the Manager in Training 
programme at the end of 2023 with two simpler, more modern programmes:
Learn2Lead: This focuses on the practical aspects of supervision such as task 
allocation, safety communication, time administration, setting goals, coaching style 
feedback and workplace discipline. It is targeted as a line manager orientation for 
recently appointed supervisors, or colleagues who are on supervisory succession 
plans. 
LeadSmart: Targeted at the relationship aspects of leadership – proactive feedback, 
recognition, managing conflict and showing appreciation in six interactive and 
practical modules. The LeadSmart pilot will begin in November 2023. LeadSmart 
participants must oversee a team already, as the practical elements must be 
practised with a team. 
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
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GLOSSARY
MESSAGE FROM 
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118 Sappi 2023 Group Sustainability Report

The leadership journey in Sappi
Sappi talent continued
Shopfloor leadership 
(previously Lean&Me)
Participants are 
responsible for some 
team oversight like 
scheduling; introduces 
basic practices for 
feedback, meetings 
and coaching
Learn2Lead
Recently appointed 
chargehands/foremen/ 
entry-level supervisors, 
aspiring 
superintendents/
supervisors. Focuses on 
basic practices – task 
supervision, leave etc
LeadSmart
Focuses on how to build 
team relationships and 
the impact of behaviour
LeadX
Recently appointed 
heads of department, 
mill and forestry 
leadership or succession 
pipeline, focuses on 
leader as coach
Global leader
Regional lead team 
successors; focuses on 
strategic leadership and 
becoming a mentor
Harvard executive 
Current Vice Presidents, 
regional and group 
leaders
Operational leadership
Becoming a supervisor
First time middle manager
Senior manager/leader
Regional lead team 
successor
Operational leadership
In SEU, leadership programmes 
include the Dynamo leadership 
development programme for 
first level line managers in five 
languages (29 participants), the Sappi 
Business Academy for young high potentials 
(25 participants) and the Sappi Leadership 
Academy (13 participants). 
SEU trains and develops approximately 172 
young apprentices. This three to four-year 
vocational training programme is offered 
primarily at our German-speaking mills. The 
goal is to build a technical talent pool to 
replace staff who will retire during the next 
three to four years.
The Management Trainee Programme 
continued to provide excellent results and 
eight trainees from the programme have joined 
our regional and global talent pools. 
In SNA to better aid US and Canada-
based employees, the Organisational 
and Development team developed 
new work instructions to streamline 
the performance enablement process in Sappi 
Advance to support employees and managers 
falling within the scope of this initiative. 
To encourage employees to take full advantage 
of the Sappi Advance training library, SNA 
introduced a monthly training topic for all 
employees, linking to relevant courses. 
In a move targeted at motivating key 
employees to expand their experiences 
outside their current levels of expertise as part 
of development plans, the region introduced a 
new Career Lunch and Learn series. This 
featured interviews with key leaders related to 
their own development and career 
experiences, together with their expectations 
of what it takes to be successful in their 
chosen field. During FY2023, Career Lunch 
and Learns included marketing, procurement 
and continuous improvement. 
The region continued to gain traction from 
its co-op (a paid position for a certain 
period of time) and internship programmes, 
with 46 participants in FY2023 
(FY2022: 43 participants). These programmes 
take place across various departments, 
including R&D, finance, human resources, 
information technology, marketing and R&D. 
The co-op programmes at the mills have 
become a particularly effective tool for 
recruiting top entry-level engineering talent. 
Based on feedback from the 2023 employee 
engagement survey, the region conducted 
22 Respectful Workplace training sessions 
with salaried employees, covering standard 
anti-discrimination and protected class 
discrimination, along with broader topics 
like colleague respect, professionalism 
and bullying. 
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
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GLOSSARY
MESSAGE FROM 
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119 Sappi 2023 Group Sustainability Report

SSA launched a campaign in June 
to remind employees of the online 
training available through the Udemy 
platform. Following the launch of the 
campaign, average usage increased from 
716 hours per month to over 1,500 hours per 
month, with active users increasing from 
348 to 506 per month. The top five requested 
courses were:
•	 Communication and social skills
•	 Emotional Intelligence at work
•	 Teamwork
•	 Culture: how to make team decisions
•	 Active listening masterclass.
These course themes align well with the 
relationship drivers in the engagement survey 
and it is encouraging that employees and 
managers are selecting the topics. 
A further 800 online pulp and paper 
specialised courses were sourced and 
uploaded – the result of our partnership with 
Vector Solutions in the US. 
In terms of young talent, we had 376 trainees 
in FY2023, ranging from bursars and 
graduates-in-training, to process trainees and 
workplace experience and work integrated 
learners. Of this number, 355 were previously 
disadvantaged individuals, while 167 are 
women. These statistics are yet another 
instance of our commitment to diversity and 
inclusion.
The following online training courses were completed 
by Sappi Trading employees in different sales offices:
•	 Sappi Code of Ethics 
•	 Occupational health and safety training 
•	 China’s Personal Information Protection Law.
Virtual training related to the Hong Kong Personal Data 
Privacy Ordinance and workplace harassment virtual 
training was attended by employees in Hong Kong. Sappi 
Advance: Performance Review Refresher Training was 
delivered to all Trading employees.
Average training hours per employee per year
FY2023
SEU
30 hours
SNA
75 hours
SSA
64 hours
Sappi group (weighted average)
50.39 hours
Average spend per employee per year
FY2023
SEU
€696
SNA
US$445 
SSA
ZAR10,175 
Sappi group (weighted average)
US$624
Sappi talent continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
120 Sappi 2023 Group Sustainability Report

Promoting diversity and inclusion
We recognise that equity and connection 
lie at the heart of diversity and inclusion. 
Our policies and programmes are intended 
to support and connect with different groups 
of individuals, including those from different 
backgrounds, races, ethnicities, religions, 
abilities, genders and sexual orientations, 
among others.
Under SDG8: Decent Work and Economic 
Growth, our Thrive (2025) target is to increase 
the proportion of women in management roles 
by 3.7 percentage points. This is reinforced by 
gender equity targets specific to each region. 
We made satisfactory progress against our 
gender targets in FY2023 with the group, SSA 
and SNA achieving their targets for the year. In 
SSA, we surpassed our original 2025 diversity 
target of 22% women in senior positions, this 
was increased to 30%, with a 2023 goal of 
26%. We exceeded this, achieving 27%. 
Although SEU did not meet their FY2023 
target for gender representation for senior 
management positions the targets for 2025 
were reviewed and ambition raised from 
15% to 20% by 2025 (and 25% by 2030). 
The progress is monitored monthly, with 
SEU leadership driving the process.
Sappi talent continued
Sappi Europe’s
 diversity, equity 
and inclusion (DEI) 
campaign and roll-out
Developing our DEI strategy is an ongoing company collaboration, 
which is why a series of training sessions were provided to our 
leadership team and staff throughout 2022. These sessions were 
designed to help people identify previously unnoticed, biased 
behaviours and to create awareness of the value of diverse and 
inclusive teams.
This year, we undertook an extensive diversity and inclusion 
survey that prompted responses from a quarter of the Sappi 
Europe workforce. The survey was designed 
to take a snapshot of inclusion as: fair 
treatment; integrating differences; 
decision-making; psychological safety; 
trust; belonging; and diversity.
From this we learnt that we are 
heading in the right direction 
(eg 82% of employees feel 
that they work in an 
organisation 
that encourages diversity and inclusion), but that there is still plenty 
more work to do (eg only 28% of employees currently feel able to 
say that Sappi invests time and energy into building diverse teams). 
What needs to be done?
The concrete improvements most requested by survey 
participants were:
•	 Cross-departmental initiatives to reinforce collaboration and 
understanding
•	 Making room for listening to employees
•	 Educating leaders.
Positive first steps have already been taken. An online training 
initiative – ‘Bias in hiring (Diversity & Inclusion)’ – has been 
introduced for all managers involved in recruitment and selection. 
In addition, a ‘Leading with Emotional Intelligence’ programme has 
been rolled out for managers. 
Awaiting image from EU
ABOUT US
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MATERIAL ISSUES
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121 Sappi 2023 Group Sustainability Report

We also continued to make significant progress towards our 2025 
Employment Equity plan and have now implemented revised stretch 
targets. Regarding BBBEE compliance and rating, we expect to retain 
a Level 1 status during the annual assessment currently underway. 
In South Africa, the Employment Equity Act Amendment Bill was signed 
into law by the State President in April 2023. It is expected that this will 
become effective before the end of 2023, once the sector consultation 
process has been finalised. Once the consultation process is concluded 
and the amendments published, our National Employment Equity and 
Learning Committee will review our Employment Equity plan and modify 
it, if required, with targets submitted to the department of Employment 
and Labour.
Assessing employee engagement levels
Employee engagement considers the motivation, commitment, 
and connection employees have to their role and to Sappi. Engaged 
employees have a positive attitude towards the organisation and 
play a large role in a company’s overall employee satisfaction and 
employee retention.
We hold an employee engagement survey every second here to gauge 
our people’s attitudes towards Sappi and to adapt our human resource 
strategy when issues are identified. In FY2023, 10,890 employees 
shared their views with us, indicating a global response rate of 94% 
and exceeding our global target which is a participation rate of 85%.
Employee engagement levels by region, 2021, 2023 comparison and benchmark comparison
Sappi talent continued
Sappi 
Trading
Participation rate 
2023
98%
91%
92%
100%
Participation rate 
2021
96%
81%
66%
100%
Benchmark 
participation rate
75%
75%
75%
75%
Overall 
engagement 2023
83.4%
79.9%
71.7%
93.4%
Overall 
engagement 2021
81.5%
79.4%
71.0%
84.7%
ABOUT US
GOVERNANCE
TARGETS
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MATERIAL ISSUES
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122 Sappi 2023 Group Sustainability Report

Sappi talent continued
Overall engagement results
In 2021, we developed a central action tracker 
whereby the status of action items identified in 
the survey is updated monthly. Comprehensive 
business unit-level reporting takes place 
quarterly and a summary of the themes and 
progress is provided to the senior leadership 
team twice a year. In addition, the close-out of 
engagement action items is included in the 
performance objectives of each line manager 
and supervisor across the business. A total of 
85% of action items from the FY2021 survey 
were closed out ahead of the FY2023 survey. 
These relate to rewards and recognition, 
learning and development, department 
leadership, manager relationships and 
executive leadership. One of the key action 
items completed was the launch of an 
Anti-Bullying and Harassment policy.
Engaged employees consistently exceed expectations. They are energised and 
passionate about their work, leading them to exert discretionary effort to drive 
organisational performance.
Almost engaged employees sometimes exceed expectations and generally 
passionate about their work. At times they exert discretionary effort to help achieve 
to help achieve organisational goals.
Indifferent employees are satisfied, comfortable and generally able to meet minimum 
requirements. They see their work as ‘just a job’, prioritising their needs before 
organisational goals.
Disengaged employees usually fail to meet minimum expectations, putting in time 
rather than effort. They have little interest in their job and the organisation and often 
display negative attitudes.
The FY2023 engagement survey feedback to 
employees and focus groups were completed 
for all regions during September. For the first 
time all managers with six or more people 
reporting to them received individual feedback. 
Manager reports were grouped into green, red 
and amber with different approaches for each 
category. 
Flowing from the FY2023 survey, 304 action 
items have been identified. Looking forward, 
the priority action item themes are career 
advancement, department collaboration, 
work-life balance, manager relationships and 
recognition. 
Current survey
Benchmark
Previous survey
62.4%
62.4%
62.4%
62.4%
58.2%
21.1%
9.8%
11.0%
61.7%
18.6%
8.2%
11.5%
120
100
80
60
40
20
0
ABOUT US
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123 Sappi 2023 Group Sustainability Report

Opportunities  
 for  
 value creation
The richness in data of the engagement survey will allow 
us to craft HR solutions specific to regions, workplaces 
and levels.
Sappi talent continued
ABOUT US
GOVERNANCE
TARGETS
OUR KEY 
RELATIONSHIPS
OUR KEY 
MATERIAL ISSUES
PRINCIPLES  |  PROSPERITY  |  PEOPLE  |  PLANET
GLOSSARY
MESSAGE FROM 
OUR LEADERS
124 Sappi 2023 Group Sustainability Report

Labour relations
Financial materiality
Sound labour relations based on 
trust – one of our strategic 
fundamentals – are important in 
maintaining the smooth running 
of our operations and 
reputation, as well as enhancing 
productivity. These factors, in 
turn, drive financial value.
Impact materiality
Effective communication 
underpins sound labour 
relations. Understanding of 
Sappi’s strategic direction and 
purpose helps to elevate 
engagement, while transparent, 
constructive discussions related 
to issues, opportunities and 
challenges reduces the 
possibility of conflict and 
creates a positive working 
environment. 
How this issue links to other  
aspects of our business
Our global priority SDGs
Our strategic fundamentals
Drive operational excellence
Enhance trust
Our top 10 risks
1
Safety
2
Cyclical macroeconomic factors
9
Employee relations
The global forces shaping our 
Thrive strategy
Rising social inequality and 
growing social activism with 
increased expectations of business
Changing consumer and employee 
behaviour
Shifting demographics
Our highlights
Good labour relations in 
all regions
ABOUT US
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125 Sappi 2023 Group Sustainability Report

Labour relations continued
Background
We endorse the principles of 
fair labour practice as 
entrenched in the United 
Nations Global Compact and 
the Universal Declaration of 
Human Rights. At a minimum, 
Sappi conforms to and often 
exceeds the labour legislation 
requirements in the countries in 
which we operate. We promote 
freedom of association and 
engage extensively with 
representative trade unions. 
Globally, approximately 60% of 
our workforce is unionised, with 
approximately 75% of the 
workforce belonging to a 
bargaining unit.
Key developments in FY2023
Across the group, the FY2023 collective bargaining process was stable. 
In SEU, approximately 61% of employees are 
members of a union and approximately 88%1 
fall within a bargaining unit. The labour 
relations context in Europe is complex, with 
one union in Germany, two each in Austria 
and Belgium and three each in Finland, Italy 
and the Netherlands. Collective labour 
agreements are in place at each mill until 
2024.
SNA experienced a comparatively quiet 
labour negotiations year, with only two 
contract negotiations. Approximately 64% of 
SNA’s employees are members of a union. 
The region has 12 collective bargaining 
agreements with its hourly employees, 
representing 63.53% of the total workforce. 
We reached an agreement with the United 
Steelworkers Union (USW) at our Allentown 
Sheeting Facility to keep wage increases to 
the industry average over the next three 
years. We also concluded a three-year 
agreement with the USW at Westbrook Mill. 
Overall union representation in SSA continued to 
decline. Current membership is 43%, down from 48% in 
FY2022, with bargaining unit membership standing at 
55.27%. Sappi recognises two unions – the Chemical, 
Energy, Paper, Printing, Wood and Allied Workers Union 
(CEPPWAWU) which is by far the largest union and the 
United Association of South Africa (UASA). However, 
engagement with other non-recognised trade unions 
continues, especially with the Association of Mining and 
Construction Union (AMCU), which currently enjoys 3% 
representation and is the third largest union in SSA by 
membership. A task team has been appointed to review 
the current joint-recognition agreement. It is anticipated 
that this process will be finalised in March 2024. In the 
Pulp and Paper Industry Chamber, a successful 
decentralised company-level bargaining process took 
place. In the Sawmilling sector a centralised wage 
negotiation process was followed and successfully 
concluded, while in the Forestry sector, a wage 
agreement over two years at company level has been 
reached. 
In FY2022, we announced that we would give shop 
stewards the opportunity to have curated individual 
development plans, following the same process used 
for high-potential employees. Detailed competency 
assessment and development plans were compiled for 
36 shop stewards.
1	 Based on manual estimates provided by SEU as there is no disclosed due to local privacy regulatory.
ABOUT US
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126 Sappi 2023 Group Sustainability Report

Labour relations continued
Communicating
 operational 
 changes 
As one of our strategic fundamentals 
is to enhance trust, we believe it’s 
important for all our people to 
understand and trust, our processes 
for communicating operational 
changes. These are of key concern 
to all employees, particularly those 
represented by trade unions or 
bargaining units.
In terms of career endings, access to retirement planning services 
is provided on a regional basis and, in some instances, this is 
supported by financial wellbeing programmes. To the extent that 
there are employee lay-offs, we provide severance pay to all 
employees and, in some instances, outplacement assistance. 
Overall, we aim to communicate any changes to our people 
timeously and transparently.
Across all countries, information about 
significant operational changes should be 
provided at a time when planned changes are 
concrete enough to inform about reasons for 
changes, planned measures with impact on 
employees, number of affected employees and 
timing, but early enough to still enable proper 
consultation.
In SEU, information about 
significant operational changes 
is only communicated when these 
are concrete enough to enable 
proper consultation where the 
process followed is according to 
a set timeline.
In SNA, the notice period in terms 
of federal law is 60 days. Details 
on operational changes are not 
specified in collective bargaining 
agreements.
In SSA (including Sappi Limited), the implementation of 
significant operational changes is governed in terms of 
section 197 and section 189 of the Labour Relations Act 
66 of 1995. The act does not prescribe a specific notice 
period. However, the standard practice is a minimum of 
30 days, and a maximum of 60 days’ notice for 
consultation of a large-scale restructuring process. The 
recognition agreement concluded with the majority 
union, the Chemical, Energy, Paper, Printing, Wood and 
Allied Workers Union (CEPPWAWU) recognises the 
provision of the act in this regard. SSA is party to the 
bargaining council for the wood and paper sector as well 
as forestry in South Africa. 
In the case of sawmilling and pulp and paper, collective bargaining is 
conducted at industry level under the auspices of the bargaining 
council. The constitution specifies when parties should submit issues 
of bargaining for the particular year and when the negotiations must 
commence. Forestry conditions of employment are implemented on 
01 April every year and regulated by ministerial sectoral determination. 
The normal notice period applies.
Most of the countries in which Sappi Trading is based are not covered 
by collective agreements except for Austria, Brazil and South Africa. In 
Austria, the notice period follows labour law and individual employment 
agreements. In the case of senior and general staff, notice periods of 
four and three months respectively are required. Based on local 
legislation, these notice periods increase according to years of service. 
A notice period is not set up in collective labour agreements. In Brazil, 
a minimum notice period on operational changes is required for large 
companies, but there is no particular need to communicate to unions 
in advance.
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127 Sappi 2023 Group Sustainability Report

Labour relations continued
Opportunities  
 for  
 value creation
The labour market has become very 
competitive in all regions and the 
healthy relationships we have 
established with organised labour will 
help to ensure retention of critical 
technical skills.
ABOUT US
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128 Sappi 2023 Group Sustainability Report

Social impact
Financial materiality
Our focus on profit with 
purpose in alignment with our 
vision of a thriving world drives 
us in our creation of economic 
value for Sappi and value for 
society. 
Impact materiality
By investing in communities, 
we promote socioeconomic 
growth and establish mutually 
beneficial relationships. 
How this issue links to other  
aspects of our business
Our global priority SDGs
Our additional SSA priority SDGs
 
Our strategic fundamentals
Grow our business
Drive operational excellence
Enhance trust
Our top 10 risks
2
Cyclical macroeconomic factors
9
Employee relations
The global forces shaping our  
Thrive strategy
Deglobalisation, polarisation and 
increased geopolitical tensions
Rising social inequality and 
growing social activism with 
increased expectations of business
Changing consumer and employee 
behaviour
Shifting 
demographics
Our highlights
Ongoing success of 
Ideas that Matter 
initiative in SNA
Highly successful ESD 
programme in SSA
ABOUT US
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TARGETS
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129 Sappi 2023 Group Sustainability Report

Social impact continued
Background
Recognising that we are part of the communities 
beyond our fence lines and that their prosperity and 
wellbeing are linked to our own, we strive to make a 
purpose-driven, meaningful contribution towards 
the wellbeing and development of our neighbouring 
communities. We work to create positive social 
impact by jointly identifying and leveraging 
opportunities, aligning with and supporting 
business priorities and needs, considering 
feedback from our stakeholders.
While each region has its own programmes, they 
conform to common themes. These include 
community welfare, education, environmental 
protection and conservation. In addition, support 
for activities associated with forestry continues to 
grow. 
The underlying goals of our social impact 
programme are to create a stronger social licence 
to operate; enhance customer loyalty, attract talent 
and advance our priority United Nations 
Sustainability Development Goals (seven globally 
and two in South Africa). 
The fact that Sappi is headquartered and listed in 
South Africa, coupled with the significant 
development needs of the country, dictates a 
higher focus on social impact activities in our 
country of origin.
We support appeals when global disasters occur, 
reviewing these on a case-by-case basis. We will, 
when appropriate, extend the appeals to staff, 
provide matching donation to staff contributions 
and encourage our business partners to make 
donations.
Key developments in FY2023
SNA continued with the Ideas that Matter 
programme, whereby winning design proposals 
celebrate the power of print design to address social 
issues. Since 1999, this one-of-a-kind grant initiative in 
the paper and packaging industry has provided over 
US$14 million to support more than 500 projects that 
change lives, communities, the environment and 
ultimately, contribute to a thriving world. The aim is to 
support people and organisations who drive social 
change and who are aligned with the UN SDGs, which 
are integral to our own business and sustainable 
practices. Since 2021, entrants’ submissions have 
been aligned with at least one of the UN SDGs, 
ensuring that grant applications are focused on global 
societal concerns.
This year, recipients’ projects addressed a range of 
issues, including restorative justice, diversity and 
inclusion, intergenerational engagement, education, 
urban segregation and community building. 
Judges consider creativity, implementation, intended 
impact and overall design effectiveness in their online 
and in-person reviews and grant allocations.
In South Africa, issues of poverty, unemployment 
and social disaffection have meant that business is 
expected to play a bigger role in society with high 
expectations to facilitate and resolve social challenges. 
Our response has been to shape a new role in society 
through shared value and social impact. By building 
trust and legitimacy in this manner, we are reducing the 
risk of disruption in our operations, establishing healthy 
community relationships, ensuring ease of doing 
business in our environment and enhancing our licence 
to operate. A snapshot of our social impact focus areas 
is set out on the following page.
The underlying goals  
 of our social impact 
programme
 are to create a stronger 
social licence to operate 
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Social impact continued
Social impact continued
Enhance trust
Education
•	 Early Childhood 
Development
•	 Recognition of matric 
learners who have 
performed exceptionally 
well
Environment
•	 Nature reserves (see 
Biodiversity section 
of this report on  
page 
 168)
•	 Sappi Rare, Threatened 
and Endangered Species 
Stewardship Programme 
( See Biodiversity section 
of this report on  
page 
 168)
•	 Schools Eco Programme
•	 Trails programme 
(mountain biking and trail 
running)
•	 Water stewardship (see 
discussion of Verve on 
page 
 94)
Community 
development
•	 Abashintshi 
•	 Sappi Ngodwana 
Aquaponics project 
Education
•	 Enterprise and supplier 
development
•	 Sappi Khulisa (including 
Khulisa Ulwazi training 
centres)
Social impact focus areas in South Africa (further detail on those initiatives highlighted in blue is detailed on the following page)
Youth and skills 
development
•	 Bursaries and internal 
training programmes 
(see Sappi talent 
section of this report 
on page 
 118)
•	 Sappi skills centre
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Social impact continued
Details of our social impact initiatives are as 
follows:
•	 Early Childhood Development (ECD) 
Under our ECD programme we support the 
education and development of ECD 
practitioners, to provide quality education at 
foundation phase level, in Mpumalanga and 
KwaZulu-Natal provinces. This initiative is 
supporting communities in terms of both 
learner and teacher development. Its 
success is highlighted by the fact that 90% 
of the practitioners who have completed 
training have demonstrated improvements 
in their teaching approaches.
•	 Youth and skills development 
The overarching aim of the Sappi skills 
centres at Ngodwana and Saiccor Mills is 
to develop a learning campus that enriches 
the lives of our local community and Sappi 
employees by providing and elevating 
technical vocational skills. More specifically, 
we hope to empower our employees to 
improve their performance at work, and our 
community trainees to create sustainable 
service businesses or seek meaningful 
employment. We have received full 
accreditation as a skills development 
provider on the instrumentation trade at the 
Saiccor Skills Centre.
•	 Environment
	– We have implemented ECOStudy in 
schools near the Saiccor Mill. This is an 
environmental education programme 
designed to improve the teaching of 
important environmental and sustainable 
development messages in the classroom 
and is implemented under the auspices of 
the Wilderness Foundation Africa. One of 
the key objectives is to Illustrate the 
importance of biodiversity conservation 
in direct relation to the children’s own lives, 
encouraging learners to take practical 
responsibility for rehabilitating their own 
environment, within the school grounds 
and their community 
	– Together with partners, we sponsored 
Primestars to develop an infotainment 
programme for high school learners from 
under-resourced communities to identify 
eco-preneurship opportunities (this 
programme is also related to the Saiccor 
Mill settlement)
	– Under the Sappi Trails Programme, we 
made our plantations available for trail 
running and cycling trails. One of our 
flagship partners, the Karkloof Country 
Club in KwaZulu-Natal, now offers both 
members and day visitors access to more 
than 250 kilometres of single-track trails 
across our plantations. We recently 
partnered with uMngeni Tourism to 
conduct a Business Impact Study focused 
on Nature Based Tourism Attractions and 
Activities (NBTAA) in the area. Direct 
economic impact of the NBTAA supply 
side is placed at ZAR88 million, while the 
estimated combined value of the NBTAA 
value chain is ZAR189 million from the 
demand side (tourists) and as much as 
ZAR151 million from the supply side 
(tourism businesses). Impressively, total 
direct jobs (direct employment in tourism 
businesses) were estimated at 513 jobs 
annually. 
•	 Community development 
	– The Abashintshi project involves 
motivating young people from the rural 
communities living in and around our 
operations across KwaZulu-Natal to 
mobilise their communities to take charge 
of their own futures, in line with the 
asset-based community development 
(ABCD) model. The programme began with 
18 young volunteer men and women in 
2015. Key to the programme is the 
engagement with youth, as we had 
previously engaged primarily with 
traditional leaders and councillors. Before 
the Abashintshi start working in their 
communities, they undergo a selection 
process that identifies youngsters who 
have successfully completed their high 
school studies and have leadership 
potential. They then embark on week-long 
training courses which are held every 
month over a period of two years and 
which focus on life skills and self-
development. After training, the 
Abashintshi return home and impart 
their knowledge to members of their 
communities
	– The Sappi Ngodwana Aquaponics Project 
involves farming tilapia, a highly nutritious 
fish in addition to growing fruit and 
vegetables. The fish, together with 
products from our production kitchen 
under the Eland’s Valley Craft Preserves 
brand, will be offered for sale in the first 
quarter of 2024 at the Ngodwana Farm 
Stall. We’ll also be selling fresh produce 
that differs from that offered by the nearby 
informal vendors.
•	 Enterprise and supplier development 
(ESD) 
	– In FY2018 we analysed our spend in 
forestry and mill operations to identify 
suitable ESD opportunities. We then 
mapped our local communities and scoped 
supply chain and community business 
opportunities. This included the unbundling 
of contracts and setting-aside of suitable 
business opportunities. We identified 
potential SMEs and classified them 
according to their capacity building needs, 
with some needing a higher level of 
intervention than others. To address 
identified gaps, we appointed third-party 
service providers and are also working with 
partners to act as technical mentors to 
provide the necessary capacity building.
	– Our ESD programme has made a 
significant impact within Sappi’s local 
communities in terms of procurement 
spend and job creation. In FY2023, we 
spent just over ZAR316 million with 
SMEs, exceeding our annual target by 
ZAR160 million. In the process, 587 jobs 
were sustained. Over and above the 
ZAR316 million procurement spend by 
Sappi with SMEs, through collaboration 
with Sappi’s established contractors, a 
total of ZAR27 million was spent with 
SMEs by contractors through a sub-
contracting arrangement and further 
ZAR712,000 invested in SME training 
and development interventions.
Corporate social 
investment spend
FY2023
SEU
€100,000
SNA
US$417,500
SSA
ZAR54 million
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Social impact continued
 Sappi Khulisa: 
Celebrating 
 40 years of success 
Our Sappi Khulisa tree-farming 
scheme, initiated in 1983 is a good 
example of positive social impact 
and shared value: It is an integral 
part of our woodfibre supply chain, 
enhancing security of fibre supply, 
while uplifting rural communities 
by equipping them to become 
sustainable participants in the 
forestry value chain. 
Initially, the programme focused on supporting subsistence farmers with 
access to 1 hectare (ha) to 20 ha of land to grow trees. First known as 
Project Grow and starting with only three beneficiaries in the Zululand 
South area, in 2013, Sappi Khulisa expanded to include community 
forestry projects and forestry projects handed to land-reform beneficiaries. 
Today the project stretches from the far north of the KwaZulu-Natal 
province to the far south and into Mpumalanga and the Eastern Cape. 
Today the total area managed is 37,269 ha. In 2023, under this programme, 
318,116 tons of timber worth some ZAR332,6 million was delivered to our 
operations. Since 1995, a total volume of 5,187 906 tons to the value of 
ZAR3,334 billion has been purchased from small growers under this 
programme. In 2013, Sappi Khulisa expanded to include community 
forestry projects and forestry projects handed to land-reform beneficiaries.
Currently, the programme involves 4,143 growers and approximately 
942 small, medium and micro enterprises who are involved in silviculture, 
harvesting, loading, short and long-haul activities. 
We offer training at three Khulisa Ulwazi (‘Growing 
knowledge’) to all value chain participants, 
including land reform beneficiaries 
and covers all aspects of forestry, 
including core operational skills as 
well as safety, legal compliance 
and business management. 
During 2023, Ulwazi trained 
471 individuals on 20 different 
courses that speak to forestry 
business management courses.
Shortly after year-end, this initiative 
was honoured with the Trialogue 
strategic CSI Award, based on 
developmental impact.
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Social impact continued
 Social Engagement 
 in SEU 
Supporting Ukrainian refugees in Poland 
As part of Sappi Europe’s implementation of our Global Safety 
Awareness Month, we donated to the charity ASPIRE Education 
Hub for the second year. The Education Hub is an initiative started 
by two institutions which joined forces to support Ukrainian 
teenagers displaced by the war in their homeland and now living in 
Kraków, Poland. ASPIRE, the representative body of Kraków’s IT 
and Business Services Companies, is mobilising the private sector 
to provide support and Ignatianum Jesuit University is bringing 
their deep expertise to provide overall responsibility for delivery 
of the programme and the educational offering. 
Using facilities within company offices, the Education Hub 
provides a network of safe, welcoming, well-equipped social 
spaces. Classroom and online activities are also organised – 
aimed at helping to normalise life and support integration for 
teenagers, young adults and mothers. 
Supporting youth in our local communities 
At our Kirkniemi Mill, our staff came together this year to donate 
EUR10,000 to local charities. The funds were raised when staff 
pledged their own rewards which had been generated through 
continuous improvement savings at the mill. Through this 
collective effort, the mill provided equal sponsorship to five local 
charities which all prioritise youth. From support to local sports 
clubs, organisations focused on the improving the wellbeing of 
children and a school for children with special needs, the mill 
continues to invest in local communities and the next generation. 
Since 2016, employees have donated a total of EUR92,500. 
Gratkorn Mill’s fun run for a good cause
At our Gratkorn Mill, over 110 employees and their 
relatives participated in the annual mill fun run on 
21 September 2023. The 5.5km run combined the 
joy of moving together with a good cause. Thanks 
to the great commitment of all participants and 
those involved, EUR3,500 was raised and donated 
to MOKI Steiermark – a non-profit organisation 
(NPO) and provider of mobile home healthcare for 
children throughout Styria, the region in Austria 
where our mill is located. 
Sharing paper-making insights with the 
community 
To further engage our community during 2023, we 
joined forces with the Centre of Science Activities 
in Graz, Austria to share our insights on the paper 
production process with museum visitors. How 
does the beech log become a book? At Gratkorn 
Mill, we know, because various types of paper have 
been produced at the mill for over 400 years. The 
exhibition enables visitors to gain insights into the 
activities behind the scenes of paper production. 
The interactive, multi-media exhibition is designed 
to give people a new appreciation for paper, how 
it’s produced and even inspire future careers. 
School classes visiting the exhibition can 
participate in a competition where they can win 
exclusive mill tours.
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Opportunities  
 for  
 value creation
Given the proven causal link between 
early childhood development (ECD) 
and success and wellbeing later in life, 
we expect positive outcomes, and are 
planning to launch a ‘Follow the Child’ 
tracking initiative. This will give us 
greater understanding of our ECD 
programmes, allowing us to recalibrate 
if necessary.
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Our people indicators continued
GROWTH
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As stated in our Group Sustainability Charter and Group 
Environmental policy, we acknowledge that we do have an 
environmental footprint, but are committed to managing 
and mitigating the environmental, climate and 
biodiversity impacts of our operations. The 
precautionary approach places the onus on 
Sappi to anticipate harm before it occurs 
and to take active steps to prevent 
any harm from occurring. 
We achieve this by:							
• Minimising the environmental impact 
of our operations in terms of raw materials 
and energy use
• Developing new production methods and 
products, and finding innovative ways of beneficiating
 waste
• Saving water and energy at every stage in production 
processes
• Ongoing investment in research and development
• Ensuring legal compliance at each mill, by constantly assessing 
our performance in terms of energy dashboards, integrated water 
and waste management plans, air emissions and effluent
• Implementing transparent practices by using internationally recognised, 
independently verified certification systems including the Forest Stewardship 
Council™ (FSC™ N003159); Programme for the Endorsement of Forest 
Certification (PEFC/01-44-43) and the Sustainable Forestry Initiative® (SFI®), as well 
as ISO 9001, ISO 14001, and in Europe, the Eco Management and Audit System (EMAS) and ISO 
50001 in Europe and South Africa. Our 400,000 hectares of owned and leased plantations 
in South Africa, are both FSC and PEFC certified
• Having environmental targets in place in each region and at global level. Progress towards 
targets is reported to management teams in each region regularly, quarterly to the Global 
Sustainable Development Council (GSDC) and to the Social, Ethics, Transformation and 
Sustainability (SETS) Committee three times a year.
 approach to Planet 
We are bold in our role as a natural resource company, 
providing solutions from renewable woodfibre which 
are viable alternatives to fossil-based products. Our 
longstanding approach to treading more lightly on the 
Planet is based on leading by example. We do so by the 
extracting the full potential of trees and woodfibre in 
line with our commitment to circular ecosystems and 
economies. 
Our management
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Our management approach to Planet continued
Adopting environmentally friendly technologies 
We view conducting our business in an environmentally sustainable 
manner as integral to our licence to operate on an individual, community, 
country and global level. It also makes sound business sense, given that 
we depend on natural resources such as water and woodfibre for our 
ongoing viability as a business and it is in our interest to use these 
resources as responsibly as possible. We invest in innovative technology 
and upgrade mill processes as these become feasible. 
Unlocking the power of renewable resources
At the heart of our business is a renewable, recyclable natural resource 
– woodfibre. We use this to create pulp, paper and dissolving pulp 
solutions that enhance the lives of consumers around the world. We take 
a comprehensive approach to protecting the environment, beginning 
with the responsible procurement of wood that is grown and harvested 
sustainably and sourced only from well-managed forests and plantations.
Tracking key metrics and benchmarking performance
Our E4 Cluster tracks key metrics in the following areas of mill operations: 
energy, effluent, emissions, solid waste and general environmental 
issues. To map the environmental impacts of our mills, the Cluster 
produces and distributes a questionnaire addressing over 80 parameters 
on environmental performance to all our operating units. 
Sappi’s mills are required to complete quarterly E4 questionnaires, and to 
report information relating to energy, emissions, effluent and solid waste. 
The data is compiled in a database and provides a clear picture of the 
environmental performance of each mill in the group since 2000. Using 
the information, comparisons can be made between processes across 
the group and within the industry. The benchmarking allows the cluster 
to support management in exploring the reasons for unsatisfactory 
performance as we transfer the attributes of efficient processes to the 
less efficient ones.
At the request of management, Internal Audit reviews the reported E4 
Cluster data for Sappi Limited for each fiscal year.
In 2020, in line with our Thrive strategy, we established Thrive (2025) 
global goals in addition to regional goals to deal with specific issues. We 
began tracking and reporting on progress against these goals in FY2021. 
View our performance in FY2023, (pages 
 10 – 11 and 14 – 16).
Leading by example 
Land, air and water are shared resources. By motivating and encouraging 
people – particularly those close to our operations – to share our 
commitment to a thriving world by treading more lightly on the planet, 
our aim is to enhance the sustainability of the natural resources and 
ecosystems on which our business depends.
United Nations Global Compact 
(UNGC) Principle 7: Businesses 
should support a precautionary 
approach to environmental 
challenges.
UNGC Principle 8: Businesses 
should undertake initiatives to 
promote greater environmental 
responsibility.
UNGC Principle 9: Businesses 
should encourage the 
development and diffusion of 
environmentally friendly 
technologies.
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At the heart of our business is a 
renewable, recyclable 
natural resource – 
woodfibre
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Specific process 
water extracted 
increased by 
27.9%
Specific TSS in 
effluent 
improved by 
4.9%
Specific particulate 
matter emissions 
reduced by 
14.2%
Solid waste sent 
to landfill 
improved by 
3%
Our management approach to Planet continued
Our 2023 performance at a glance
Year-on-year
Our products 
are:
Many of our 
products are:
Compostable
Biodegradable
Recyclable
Specific Scope 1 
and Scope GHG 2 
emissions 
increased by 
16.1%
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Sustainable woodfibre
Financial materiality:
To meet our Thrive business 
strategy and maintain returns to 
shareholders, we need to secure 
a reliable supply of sustainably 
sourced woodfibre that enables us 
to offer products to our customers 
around the world that carry no risk 
of deforestation or forest 
degradation. This is particularly 
important not only given 
stakeholder concerns, but also 
within the context of legislative 
requirements such as the new EU 
Deforestation Regulation (EUDR). 
(Refer to the box on page 
 142.)
Impact materiality:
By ensuring forests and plantations 
are sustainably managed through 
high levels of certification and 
prioritising traceability, we can 
help to combat climate change and 
enhance the ecosystems services 
that contribute to greater levels of 
economic, social and 
environmental wellbeing. 
How this issue links to other  
aspects of our business
Our global priority SDGs
 
 
Our strategic fundamentals
Grow our business
Drive operational excellence
Enhance trust
Our top 10 risks
4
Sustainability expectations
5
Climate change
7
Supply chain disruption
Our highlights
Progressing PEFC- 
endorsed South African 
Forestry Assurance 
Scheme (SAFAS) forest 
certification in South 
Africa
Meeting our performance 
against our fibre 
certification target within 
the context of challenging 
global markets
The global forces shaping our 
Thrive strategy
Climate change and climate 
transition
Resource scarcity and growing 
concern for natural capital
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Sustainable woodfibre continued
Background 
There are two key sustainable woodfibre 
issues: high levels of traceability and 
certification, together with a steady supply of 
woodfibre which are linked to specific regional 
and global targets available here.  
High levels of traceability 
Our high levels of certification and traceability 
are important for our customers who require 
deforestation-free supply chains. In FY2023, 
75%LA (2022: 77%)* of all the wood-based raw 
material supplied to Sappi’s mills originated 
from FSC or PEFC (including SFI) certified 
forests. In each of our three regions the share 
of certified woodfibre supplied in FY2023 was 
respectively: SEU 86% (2022: 87%), SNA 55% 
(2022: 59%) and SSA 83% (2022: 85%). 
All Sappi’s manufacturing sites using wood-based raw material are 
FSC and/or PEFC Chain of Custody (CoC) certified, and we trace 
all woodfibre procured back to its source. 
Wood and pulp suppliers are required to provide 
evidence that all woodfibre is sourced from controlled, 
non-controversial sources in accordance with the 
FSC Controlled Wood standard, as well as PEFC 
Due Diligence requirements, and disclose wood 
origin data and tree species at least annually 
and/or upon request. Sappi’s mill-specific wood 
origin declarations are publicly available on 
www.sappi.com 
. 
Sappi’s procurement teams in North America 
and South Africa, together with our wood 
procurement partners in Europe (proNARO, 
Sapin, Papierholz Austria, Metsä) are 
responsible for tracking the origin of our 
wood supply. Third-party audits conducted by 
independent certification bodies ascertain that 
CoC-processes are in line with FSC’s and 
PEFC’s requirements, and that certified inputs 
and outputs are duly tracked and recorded. SNA 
conducts supplier site inspections on all stumpage 
sales and a sampling of such inspections on open 
market/gate wood purchases. SSA uses tracking 
technology including the ForceLink application to trace 
loads from the wood depot, with mobile technology 
allowing foresters to inspect timber stands/plots and verify 
sources with time and location stamps. 
Sappi Verve’s partnership with our customer Birla on ‘Green Track’ 
blockchain technology provides a forest-to-garment traceability 
solution for brand owners. The solution was made possible with the use 
of Birla’s blockchain technology, coupled with Sappi’s comprehensive 
database on wood origin for our dissolving pulp operations in South 
Africa and the USA. 
Information on the origin and 
tree species of any delivery 
within a certified CoC is 
accessible at any point 
along the supply chain. 
information
*	 The quantity of the total certified chips procured by 
Matane for Q4 was incomplete at the time of reporting
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Key developments in FY2023 
Expanding certification 
Our efforts to expand sustainable forestry practices and certification include:  
Working closely with a variety of programmes dedicated to providing logger education, including 
SFI Implementation Committees, Maine Forest Products Council, Maine Tree Foundation, 
Minnesota Logger Education Programme, Minnesota Forest Industries and numerous academic 
programmes where we provide financial and in-kind support.
Continuing to promote the SAFAS (Sustainable African Forestry Assurance Scheme) in South 
Africa, which is endorsed by the Programme for the Endorsement of Forest Certification (PEFC) 
and which we helped to develop. SAFAS, incorporates a Value Based Platform (VBP) approach 
to make forest certification more accessible especially to small landowners by assessing 
integrated risks across landscapes. Using the VBP approach, Sappi has assessed eight grower 
groups (including a cluster group of 38 individual small growers) representing 8,930 hectares for 
certification readiness.
Promoting certification through our group FSC scheme for small and medium-sized growers 
in South Africa. In FY2023, the scheme had 40 members representing a planted area of 
44,300 hectares and 384,300 tons delivered to Sappi’s mills. Members of the scheme are 
paid a premium for certified fibre.
Expanding certification training through the launch of an Introduction to Forest Certification 
course on the new Sappi Advance training platform.
Merging Matane Mill’s PEFC and FSC CoC single-site certificates into SNA’s existing multi-site 
CoC Certificates. Benefits include the ability to share unused PEFC credits from USA-based 
sites with Matane to support future sales, system simplification, a reduction in the number of 
individual Sappi certificates and cost-efficiency savings with reduced audit demands on 
Matane staff.
Engaging with certification systems and stakeholders (see information box). 
In May 2023, together with 550 other certificate holders, forest sector actors, 
customers, NGOs, and other stakeholders from 38 countries around the globe, 
Sappi participated in the annual SFI conference. This was held, for the first time, 
in collaboration with PEFC International during the annual PEFC week and 
28th General Assembly in Vancouver, Canada. We welcomed the unique 
opportunity to take up platinum sponsorship and network with global certificate 
holders and stakeholders who share our commitment to advancing sustainability 
through forest-focused collaboration. 
Under the theme ‘Forest, People, and Nature Positive’, the conference offered the 
opportunity to network with a broad range of forest sector leaders from across the 
globe and to discuss the most pressing issues facing our planet. Sessions covered: 
•	 Nature-positive solutions:  The way organisations use data, science, and 
impactful collaborations to advance forest-positive and nature-positive solutions 
•	 Climate-smart forestry: How strategies from the public and private sectors 
can advance climate resiliency, including implementing SFI’s new climate-smart 
forestry requirements 
•	 Indigenous rights and reconciliation:  Case studies related to indigenous 
reconciliation in the forest sector and the advancement of indigenous rights   
•	 Supply chain leadership:  Environmental, Social, and Governance (ESG) 
expectations in the supply chain and how PEFC and SFI certifications and 
programmes are being leveraged to advance sustainability while meeting 
investor and customer expectations 
•	 Diverse and resilient workforce: Engagement with a younger generation and 
workforce leaders to understand best practices in retention, recruitment, and 
advancement and how SFI’s education programme, Project Learning Tree, is 
moving the needle on this topic 
•	 Urban and community forests: The role of urban and community forests in 
building sustainable communities while advancing human health and wellbeing 
and delivering on climate resiliency. 
PEFC is the leading global alliance of national forest certification systems. Its over 
55 national members are independent, national organisations that develop and 
implement the PEFC system within their country. SFI, which is the leading forest 
certification system in the United States and Canada, is endorsed by PEFC. There 
are 140 million hectares of SFI-certified forests in the US and Canada. 
information
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The EU’s new deforestation 
regulation
The European Union’s Deforestation Regulation 
(EUDR), which came into force in June 2023, aims 
to minimise deforestation and forest degradation. 
It states that relevant products placed on the EU 
market, or exported from the EU, must 
demonstrate that their supply chains have not 
contributed to the destruction of forests around 
the world.
What’s Sappi doing?
Sappi is firmly committed to zero deforestation 
and thus shares the aims of the EUDR. With the 
new regulation leaving several important issues 
related to its practical implementation open, Sappi 
is collaborating with other stakeholders and peers 
to ensure a robust yet workable implementation of 
the regulation. We are working together especially 
within the community of Confederation of 
European Paper Industries (CEPI) to build a 
common understanding and approach to EUDR 
across the value chain. 
Forest certification systems will, of course, 
continue to play a key role in helping to oversee 
and validate supply chains. Sappi already has in 
place measures to ensure that its supply chains 
are deforestation-free – which is why, Sappi’s mills 
are certified in most cases by both PEFC and FSC 
Chain of Custody. We also employ our own due 
diligence systems to monitor woodfibre sourcing. 
Everything that enters our mills must at least meet 
the requirements of the FSC Controlled Wood 
Standard and PEFC Controlled Sources.
information
Maintaining robust woodfibre supply 
A steady supply of woodfibre is maintained through our certified wood procurement partners (Sapin, proNARO, Papierholz Austria 
and Metsä) in SEU; in SNA through our direct interaction with private land and forest owners and in SSA through the high level of 
self-sufficiency (60% in FY2023) generated by our own plantations. Our Sappi Khulisa enterprise and supplier development (ESD) 
programme and work with land reform beneficiaries also help to enhance security of fibre supply. 
Sappi Forests at a glance
Sustainable woodfibre continued
2023: 
10,000 people (950 direct), 
45 entrepreneurial businesses
Seedlings
57.5 million 
43 million  
saplings provided  
to own plantations
14.5 million 
saplings provided  
to projects/farmers
Planting
21,574ha/annum
Sustainable 
harvesting
4.25 million 
wwt/annum in 
FY2023
23.4 million 
trees per annum
Extraction
4.25 million 
wwt/annum
23.4 million 
trees per annum
Delivery
5.35 million 
tons delivered to Sappi's mills, 
including purchased wood
40 million tons 
CO2e sequestered
Landholding
261,210ha plantable
138,784 natural
399,996 total owned and leased
132, 751ha contracted
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Sappi Forests’ overarching objective is 
efficient, sustainable supply of fit-for-purpose 
fibre into our mills. We achieve this by: 
Growing our own seedlings  
Under our world-leading tree 
improvement programmes, we 
have spent many years developing 
material with high genetic gain, as well as 
developing tools that allow us to characterise 
the genetic diversity in our breeding 
populations to improve forest productivity. We 
use genomic selection based on genome-wide 
markers associated with commercial traits to 
predict performance and thus select 
favourable individuals. 
This advantage is maintained through the 
supply of seedlings from our own nurseries 
to our plantations – 43 million in FY2023. We 
also sold a further 14.5 million seedlings to 
other growers, and significantly increased 
external seed sales. Although we had 
previously planned to upgrade our Richmond 
Nursery in FY2023, we recently took the 
decision to refurbish this nursery and expand 
our other three commercial operations – 
namely the Clan, Escarpment and Ngodwana 
Nurseries. At year-end, construction work at 
both Clan and Ngodwana Nurseries was 
approximately 30% complete. Work at these 
nurseries and at Escarpment and Richmond 
Nurseries expected to be completed in the first 
half of FY2024. 
Part of the refurbishment process is to bring 
in efficiency improvements aspects, better 
hygiene measures, ergonomic improvements 
and expanded use of solar PV. We are targeting 
an efficiency improvement of 7-8%. In another 
effort to drive efficiency improvements, we are 
currently producing 70% of all hardwood 
cuttings in Ellepot trays. Biodegradable, paper 
based Ellepots do not need to be removed at 
planting, thereby speeding up transplanting 
and reducing root damage. 
Optimal utilisation of 
landholding production 
capacity 
In FY2023, we reduced our 
temporarily unplanted (TUP) land to an 
all-time low of 3.2% against a global 
benchmark of 4%. This is significant, as a 1% 
reduction in TUP area on plantations equates 
to an addition of more than 45,000 tons per 
annum to the sustainable harvest. It also 
enhances carbon sequestration and storage. 
To ensure long-term soil fertility and the 
productivity of later rotations, we are 
increasingly moving to mulching, rather than 
burning, before planting a new rotation. While 
the mulching option is more expensive, there 
are significant benefits, ranging from retention 
of soil moisture and soil organic carbon (SOC) 
to the prevention of erosion and compaction. 
Our research indicates that it provides an 
increase of an additional 29% of white wet tons 
(wwt) at harvesting. In FY2023, we increased 
the area mulched by 1.72%, bringing the 
cumulative total to 9.86% across all our 
landholdings. 
Health of growing trees is measured through 
continuous evaluation of trees by growth rate, 
age, utilisation efficiency, annual measurement 
programme using a pre-harvest measurement 
of 20,000 hectares per annum as well as an 
airborne laser scan of an entire plantation 
conducted every second year and using 
trends and drivers, eg permanent sample plot 
programmes and actual versus planned yields 
per compartment. 
Ensuring the right species 
mix 
Given that Sappi’s landholdings 
span different climatic zones, our 
tree breeding objective is to develop a hybrid 
variety/family as well as pure species 
alternatives for every Sappi site. Breeding 
initiatives comprise two key areas: 
•	 Eucalyptus pure species and pine breeding 
which focuses on: 
	– Breeding and improving commercial pure 
species and pine hybrids 
	– Developing pure species for use as hybrid 
partners 
	– Maintaining species genetic diversity as a 
back-up for future challenges 
	– Introducing and testing new species with 
potential 
•	 Eucalyptus hybrid breeding is tasked with: 
	– Rapid development of commercial hybrid 
varieties 
	– Maintaining a full pipeline of future 
varieties 
	– Developing and testing new hybrid 
combinations. 
Hybrid breeding gives us the opportunity to 
combine characteristics which cannot easily 
be obtained in a single species and enhance 
plant adaptability, particularly as hybrids can 
grow on sites where pure species parents 
cannot grow adequately. We have moved 
beyond two-way to three-way and four-way 
hybrids, as well as backcrosses. 
Breeding for water use 
efficiency and superior 
genotypes 
Available water is the main driver 
of tree growth in South African industrial 
plantations. Our climate change scenario 
modelling indicates a high level of drought risk 
for South Africa and changes in precipitation 
patterns that would negatively impact growth 
rates for our plantations. Against this backdrop, 
our breeders are developing genotypes that 
produce more wood with less water. The 
Eucalyptus genotypes that are currently 
planted such as Eucalyptus dunnii, E. grandis x 
E. nitens hybrids and E. grandis x E. urophylla 
hybrids have much higher water use efficiency 
(WUE) than pure E. grandis that was planted in 
the past. 
Sustainable woodfibre continued
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Ongoing genetic tree improvement achieved 
through breeding initiatives needs to be 
captured and deployed in operational planting 
programmes. Research is conducted on 
methods of improving and developing 
vegetative propagation protocols in order to 
amplify production of superior genotypes 
within our nursery operations and sustain plant 
quality. Breeding efforts are also supported 
using the latest molecular genetic approaches 
through collaboration with the Forest 
Molecular Genetics Programme based at the 
University of Pretoria and through 
development of tissue culture propagation 
methods. 
Breeding for pest and 
disease tolerance 
Like other land-based crops, trees 
are susceptible to pests and 
disease. As in other parts of the world, 
invasions of non-native insect pests in South 
Africa are increasing due to increased trade. 
In addition, our climate change scenario 
modelling suggest that mean annual 
temperatures in South Africa will likely increase 
between 3-7oC. A general impact of increased 
temperature on insect pests is increased 
reproduction and survival rates as well as 
increased geographic range, which will 
significantly increase the risk of pest 
infestation in the future. We counter this by 
breeding for resistance to pests and diseases 
as well as superior wood properties and 
enhanced resilience to frost and drought. 
Our land management and pest and disease 
programmes conduct research on stress 
detection, climate change predictions, site 
classification to improve site-genotype 
matching, risk mapping, nutritional research, 
site resilience, biological control measures, 
as well as national pest and disease 
surveys.
Further detail on Sappi Forests’ 
response to climate change is 
discussed on page 
 154 of this 
report.
We belong to the South African 
Institute for Commercial Forestry 
Research and are a founding member 
of the Tree Protection Co-operative 
Programme (TPCP) based in the Forestry 
and Bio-technical Institute at the 
University of Pretoria. Through the TPCP 
we also belong to and support the funding 
of the internationally collaborative programme 
Biological Control of Eucalyptus Pests. We 
belong to and support the work of the Forest 
Molecular Genetic Programme based at the 
University of Pretoria; Camcore, an 
international, non-profit organisation dedicated 
to the conservation and utilisation of 
subtropical and tropical tree species; the 
Eucalypt Pest and Pathogen Working Group 
and the South African Institute of Forestry.
Sustainable woodfibre continued
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Sustainable woodfibre continued
 Enhancing 
breeding efficiency 
 through purity of  
 hedge stock 
The right genetics on the right site 
leads to sustainable gains and relies 
upon an efficient and accurate 
deployment pipeline. 
Misidentification of genetics is a 
common problem in agricultural, 
horticultural and forestry nurseries, 
since most varieties are 
indistinguishable with the naked eye. 
In 2022, a GN (Eucalytus grandis x 
Eucalyptus nitens) hybrid variety 
was dying in field. The cause of 
death; Teratasphaeria destructans, 
an aggressive leaf blight 
pathogen. DNA samples 
from diseased 
compartments revealed 
contamination with a 
susceptible variety which 
was traced back to mother 
stock hedges in the nursery.
To mitigate risk without hampering plant supply, a 
two-step hedge replacement strategy was devised. 
Hedges of all high-risk contaminated varieties were 
removed immediately and are being replaced by 
cuttings harvested from DNA confirmed hedges. 
Additional control measures have been put in place 
to ensure purity going forward. These include the 
use of different colour cuttings trays, specially 
trained staff and clear segregation of duties 
within teams. Follow-up DNA sampling will 
take place before cuttings are produced 
from new hedges. This large-scale 
hedge replacement was used as 
an opportunity to redesign the layout 
of varieties, keeping the same type 
together in bays to reduce the 
chance of mix-ups and improve 
operational efficiency through 
location batching.
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Opportunities  
 for  
 value creation
Based on the success of our use of 
bagasse as a fibre source, we are 
looking at non-woodfibre sources such 
as grasses, cereal straws, maize stalks 
and bamboo. The Sappi Technology 
Centre in Tshwane, South Africa has 
evaluated wheat straw and were able to 
produce good quality pulp with 
comparable yield and bleachability to 
bagasse, under the same cooking and 
bleaching conditions. The wheat straw 
pulp also demonstrated certain key 
strength properties, including tensile, 
burst and tear strength. 
Following trials at Stanger Mill, we are 
now assessing other alternative plants 
that could be grown close to the mill in 
collaboration with Khulisa farmers. This 
offers opportunities not only in terms 
of expanded fibre sources, but also in 
the form of expanded income 
generation for Khulisa farmers. 
Alternatives like Bana Grass and 
Elephant grass are still being sourced 
for further testing.
Sustainable woodfibre continued
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Renewable energy and climate change
Climate materiality:
Climate change has the potential to have a 
significant impact on our woodfibre supply. 
In both Europe and Southern Africa, the 
changing climate is impacting the health 
and resilience of the forests and plantations 
from which we source woodfibre. Increased 
drought, floods, wind, pest and disease 
outbreaks and wildfires are all accelerating 
risks and potentially, higher costs. In 
addition, the urgent need to address GHG 
emissions affects our operations globally. 
Tackling climate change is one of the 
biggest and most daunting challenges of 
our time – and we are committed to taking 
positive action by mitigating both physical 
and transitional risks. 
Renewable energy: 
According to the United Nations, fossil 
fuels – coal, oil and gas – are by far the 
largest contributor to global climate 
change, accounting for over 75% of global 
greenhouse gas emissions and 90% of all 
carbon dioxide emissions. While we 
recognise the need to increase our use of 
renewable energy, our business is highly 
capital intensive and implementing 
additional and modified machinery that 
facilitates the use of renewable energy 
takes time and money. Nevertheless, we are 
committed to meeting our science-based 
GHG emission reduction targets (approved 
by the SBTi in FY2022). We have identified 
capital projects within our existing five-
year plan as well as further longer-term 
interventions, to facilitate the required 
emissions reduction. The global capital 
expenditure between FY2021 – FY2030 
required to achieve the targets is estimated 
to be US$60-70 million per annum. While 
significant, these costs should be 
considered within the context of the 
competitive advantage created by reduced 
greenhouse gas emissions and higher levels 
of renewable energy. 
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Renewable energy and climate change continued
Impact materiality:
The use of fossil fuels and climate 
change have negative impacts on 
ecosystems, water, biodiversity and 
human health. It’s our responsibility 
to decrease our use of fossil fuels, the 
emission intensity of our products 
and do our part to towards climate 
change mitigation. 
How this issue links to other  
aspects of our business
Our global priority SDGs
 
 
 
Our strategic fundamentals
Grow our business
Drive operational excellence
Enhance trust
Our top 10 risks
4
Sustainability expectations
5
Climate change
6
Evolving technologies and 
consumer preferences
The global forces shaping our 
Thrive strategy
Climate change and climate 
transition
Resource scarcity and 
growing concern for natural 
capital
A separate document  
detailingour alignment  
with TCFD can be found here  
https://www.sappi.com/files/2023-
sappi-tcfd-reportpdf 
 
Our highlights
SNA continues to operate with a high level of renewable energy 
– 78% in FY2023 
Ongoing decarbonisation and renewable energy projects in SEU
Launch of the Sappi Chair in Climate Change and Plantation 
Sustainability at the University of the Witwatersrand 
Project at Saiccor Mill to generate steam from pellets made 
from wood shavings and other wood waste left over from the 
mill’s manufacturing processes
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Renewable energy and climate change continued
Background 
Over the last five years, total GHG emissions 
in our mills have been decreasing steadily. 
The increased use of renewable energy, more 
efficient self-generation of electricity and 
efficient energy management all contributed 
significantly to the decrease in GHG emissions.
Our decarbonisation plans were accelerated 
in June 2022 by the approval of our science-
based GHG emission targets, where we have 
committed to reduce Scope 1 and 2 GHG 
emissions by 41.5% per ton of product by 
2030 from a 2019 base year. We have also 
committed that 44% of our suppliers (by 
spend) will have science-based targets by 
2026.
Regrettably, in FY2023 our emission intensity 
increased significantly. The rise can be 
attributed to a significant reduction in energy 
efficiency associated with the high levels of 
production curtailment that was required 
throughout the year due to challenging market 
conditions. The fluctuating start-stop 
operations and the need to maintain 
equipment heating during cold winter months, 
even when production was halted, significantly 
hampered our operational efficiencies. 
Although there was a 13% reduction in 
absolute Scope 1 and Scope 2 emissions 
compared to the previous year, this reduction 
is primarily a reflection of the reduced annual 
production. Despite the poor performance 
relative to our targets, we remain confident that 
our decarbonisation strategy and capital 
investment programme is on track to deliver 
our 2025 and 2030 commitments.
A few years ago, we began to use scenario 
planning to help us plan for a climate-
constrained world. In terms of physical risks, 
Sappi Forests worked with the Global Change 
Institute (GCI) at the University of the 
Witwatersrand in Johannesburg and other 
industry members to identify six representative 
climate change models. 
To conduct physical climate change scenarios 
in our mills, we used Representative 
Concentration Pathways (RCPs): 
•	 2.5 (a low climate change scenario, involving 
aggressive mitigation actions to halve 
emissions by 2050) 
•	 4.5 (a moderate climate change scenario 
involving strong mitigation actions to reduce 
emissions to half of current levels by 2080) 
•	 8.5 (a high climate change scenario 
representing continuation of business as 
usual with emissions at current rates). 
Transition risk is assessed in terms of 
scenarios involving nationally determined 
contributions (NDCs) and their associated time 
frames. Each country in which we have 
manufacturing operations, as well as the EU 
region, has submitted NDCs to the United 
Nations Framework Convention on Climate 
Change (UNFCCC). Various scenarios within 
the parameters of key regulatory 
developments are also assessed against the 
backdrop of various issues (for example, our 
own decarbonisation plans and possible 
carbon taxes to drive behavioural change, 
reputational impact if site emissions reduction 
plans do not align with the relevant NDC) and 
the related opportunities such as health 
benefits. 
We have also been using an internal carbon 
price (within the capital evaluation process) to 
ensure that the impact of carbon emissions for 
all capital investments is understood. The 
internal carbon price is embedded in our cost 
calculations of capex and opex projects as a 
financial indicator. 
Please refer to Our 2023 Planet 
indicators on https://www.sappi.
com/2023GSDR-Planet-indicators for 
the graphs in this section together with 
other graphs detailing:
•	 Specific NOx emissions
•	 Specific SOx emissions
•	 Specific particulate matter 
emissions
•	 Absolute emissions related to the 
above.
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Renewable energy and climate change continued
Total specific GHG emissions (Scope 1 and 2) (kgCO2e/adt)  
Europe
North America
South Africa
Global
● 2019 ● 2020 ● 2021 ● 2022 ● 2023
2,000
1,500
1,000
500
0
698.0
719.6
634.6
572.3
625.4
423.4
441.2
349.2
360.8
439.4
1,708.5
893.3
914.9
862.1
813.2
944.0LA
1,748.1
1,852.3
1,796.6
1,715.9
Direct emissions (Scope 1) (kg CO2e/adt)
Global
● 2019 ● 2020 ● 2021 ● 2022 ● 2023
1,500
1,200
900
600
300
0
492.1
508.6
504.3
450.8
448.5
295.1
330.8
269.8
281.1
367.1
1,327.1
661.1
706.0
677.8
612.9
696.5
1,441.0
1,451.9
1,305.9
1,244.2
Europe
North America
South Africa
Globally there was an increase. In SEU the situation was stable. The 
increase in SNA was attributable to reduced black liquor generation 
and wood-room generated bark, together with production curtailment. 
In SSA, emissions at Saiccor and Stanger Mills decreased. The 
noticeable decrease at Saiccor is attributed to less coal consumption 
due to the expansion project and less heavy fuel oil (HFO) required. The 
decrease at Stanger Mill is attributed to reduced coal consumption 
due to improvement in operations with regards to changes to air to fuel 
ratio hence decreasing remaining carbon in ash as well as condition-
based soot blowing and cleaning.
Indirect emissions (Scope 2) (kg CO2e/adt)
Global
● 2019 ● 2020 ● 2021 ● 2022 ● 2023
500
400
300
200
100
0
205.9
211.0
130.3
121.5
176.9
128.3
110.4
79.5
79.8
72.3
381.4
232.3
208.9
184.3
200.3
247.5
307.2
400.3
490.6
471.7
Europe
North America
South Africa
Globally there was an increase. In SEU the increase was attributable to 
increased purchased power at Maastricht Mill and the outsourcing of the 
gas turbine at Carmignano Mill which led to an increase in imported power 
(Scope 2) and decrease in Scope 1. In SNA, the decrease was due to lower 
purchased power demand due to market curtailment. In SSA, there was a 
slight decrease at both Lomati and Saiccor Mills – the latter was less reliant 
on bought-in power. 
Specific GHG (Scope 1 and Scope 2) 
emissions per revenue (kg CO2e/US$ million)
2019
2020
2021
2023
2022
1,039.7
1,146.7
1,031.4
741.7
810.7
1,200
1,000
800
600
400
200
0
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Renewable energy and climate change continued
Fuel sources (%) 
2023
● Purchased coal 
15.9% 
● Purchased natural gas  
11.7%
● Fossil energy in purchased power 
12.1%
● Other fossil fuel 
2.7%
● Own black liquor 
38.7%
● Own biomass (mostly bark) 
4.9%
● Purchased biomass 
5.7%
● Renewable and nuclear energy in purchased power 
7.6%
● Other renewable fuel 
0.7%
15.9%
7.6%
0.7%
12.1%
38.7%
2.7%
11.7%
5.7%
4.9%
Renewable and nuclear energy breakdown (%) 
 
2023
● Own black liquor 
 
67.2% 
● Own biomass (mostly bark) 
8.5% 
● Own biogas 
 
0.3%
● Own generated hydro electricity 
0.2%
● Combusted sludges 
 
0.7%
● Purchased biomass 
 
9.8%
● Renewable and nuclear energy in purchased power 
13.2%
● Own liquid biofuel 
 
0.0%
 
67.2%
13.2%
0.3%
0.7%
0.2%
8.5%
9.8%
SEU 
•	 In August 2023, our Kirkniemi Mill in Finland 
threw the switch on renewable energy, 
inaugurating its new facilities for the use of 
biofuels made up of biomass residues such 
as bark, sawdust and wood chips, mostly 
sourced locally. This will reduce by 90% 
direct fossil greenhouse gas emissions 
produced by the mill – the equivalent of 
230,000 tons of carbon dioxide every year
•	 Following on from the modernisation of a 
boiler at Gratkorn Mill in Austria in 2022, the 
transition towards more renewable energy 
evolved throughout the year. The mill’s share 
of renewable energy rose from 41% in 2022 
to 56% in 2023. To continue the transition, 
phase 2 of the project was approved and 
initiated in 2023 that will further grow the 
mill’s capacity to receive, handle and store 
biomass
•	 Looking beyond 2025 in Europe, this year we 
launched an energy study to investigate 
future options for steam and power 
production at Alfeld, Condino and Ehingen 
Mills. The pre-feasibility study is also looking 
at disposal and utilisation options for bark, 
wood and sludge residue streams across 
several mills. The aim is to increase the share 
of renewable and clean energy in line with 
our decarbonisation strategy, while ensuring 
that the mills maintain capacity, uses 
biomass residues efficiently and meet all 
compliance requirements. The final report 
is due in the spring of 2024. 
SNA 
In this region, we operate with 78% renewable 
energy, delivering best-in-class emissions in 
both the packaging and graphic paper 
categories. In the states where we operate, 
the power grids are mandated to increase the 
percentage of renewable power, which will 
continue to advantage our mills beyond 
Scope 1 and into Scope 2 renewable power. 
In the SNA region, we operate with 
78% renewable energy, 
delivering best-in-class emissions in both the 
packaging and graphic paper 
 categories
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1.36
1.04
0.96
0.83
0.81
0.49
0.53
0.43
0.35
0.26
0.25
Competitor 
1
Data sources:
GHG emissions: EPA FLIGHT surveyed 10/26/2023
Capacity: RISI Mill Asset database surveyed 06/21/2023
Competitor 
2
Competitor 
9
Competitor 
3
Competitor
 7
Competitor 
4
Competitor
 6
Competitor
 5
Competitor 
8
Sappi
Somerset
Sappi
Cloquet
Specific Scope 1 GHG emissions (t/adt)
● 2022 sp GHG (t/adt)
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.0
0.75
0.87
0.76
0.37
0.35
0.26
0.21
Competitor 
1
Data sources:
GHG emissions: EPA FLIGHT surveyed 10/26/2023, UPM Blandin purchases steam and power from Rapids Energy Center power plant. 
Blandin specific GHG emissions based on Rapids Energy GHG emissions reported
Capacity: RISI Mill Asset database surveyed 06/21/2023
Competitor 
2
Competitor 
5
Competitor 
4
Competitor 
3
Sappi
Somerset Mill
Sappi
Cloquet Mill
Specific Scope 1 GHG emissions (t/adt)
● 2022 sp GHG (t/adt)
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
SNA’s world-class assets deliver best-in-class emissions in the packaging category
SNA’s mills are among the lowest for mill emissions in the graphic papers category
 SSA 
The decarbonisation of our South African 
assets is more challenging than in our other 
operating regions. While we have a relatively 
high level of renewable energy integration 
within the region due to our black liquor and 
biomass fuel sources, we are not fully self-
reliant (50% of Sappi SA’s energy is currently 
derived from renewable sources, with 46% 
from own black liquor).  We thus need to 
purchase energy from the national utility 
provider, Eskom, which is predominantly based 
on coal. Given that there is currently very little 
renewable energy available for purchase within 
the country, our decarbonisation roadmap for 
the region assumes that we will have to invest 
in our own renewable energy assets. 
Accordingly, we have taken the following steps:  
•	 We are actively exploring opportunities to 
enter into Private Partnership Agreements 
(PPA) with independent renewable energy 
providers who have been granted licences 
under the Renewable Independent Power 
Producer Programme (REIPPP) 
•	 We have established a joint venture known 
as uMkhomazi Fuels at Saiccor Mill 
incorporating a ZAR80 million cycle plant 
generating steam from pellets made from 
wood shavings and other wood waste left 
over from the mill’s manufacturing 
processes. These would normally be sent 
to landfill. Under the joint venture, climate 
mitigation actions include the avoidance of 
57,000 tons of annual landfill waste, resulting 
in savings of approximately ZAR15 million 
per annum. In addition, 322,000 tons of CO2 
emissions will be averted over a 10-year 
period by diverting landfill organic waste and 
62,457 tons of CO2 emissions annually 
through fossil fuel substitution. It is also 
estimated that 68 full-time and 49 part-time 
jobs will be created from the local 
communities. 
Renewable energy and climate change continued
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153 Sappi 2023 Group Sustainability Report

Responding to climate change 
on Sappi’s plantations 
Temperatures over the South African interior 
are projected to rise at about 1.5 to 2 times the 
global rate, with significant implications for our 
plantations. In addition to hotter, drier 
conditions, we expect shifting 
seasons with later summer rainfall, which will 
make our planting season shorter. We also 
anticipate that weather will become more 
extreme and that droughts and floods, as well 
as wind, snow and hail will intensify. 
In response, we have developed climate-smart 
management practices. Our Sappi Forests’ 
scientists have developed high levels of 
expertise in assessing the impact of climate 
change on our plantations in South Africa – our 
most vulnerable assets to physical climate 
change impacts. Their knowledge is 
supplemented by our strong partnership with 
the Global Change Institute (GCI) at the 
University of the Witwatersrand in 
Johannesburg. We have worked with the latter 
and other industry members to identify six 
representative climate change models and 
downscaled these to local conditions at a finer 
resolution for years between 1960 and 2100. 
The data were further processed to various 
beneficial products to inform on a range of 
factors, including drought, heat and fire risk. 
Sappi further processed the forecast climate 
data, in-house, by algebraically adjusting the 
basic weather forecasts to a year 2000 
baseline. Summarised data products are 
available at a Sappi Forests block and 
compartment level and can be visualised on 
the Sappi Map Centre Climatic Data Web 
Application. 
In addition to the initiatives and programmes 
such as our work related to drought-resistant 
genotypes described under Sustainable fibre 
on page 
 140, through an industry initiative, 
we also maintain a solid base of permanent 
sample and long-term soil monitoring plots, 
with the plot coordinates stored on our GIS 
database. 
These help us to monitor climate change 
based on geology, temperature zone and 
water availability. This enables us to keep 
track of forest litter, soil physical and 
chemical properties, allowing for early 
detection of site changes. 
Key developments in FY2023 
A significant development in FY2023 was the 
launch of the Sappi Chair in Climate Change 
and Plantation Sustainability at the 
University of the Witwatersrand (Wits) in 
Johannesburg. 
Professor Mary Scholes, who is an 
internationally recognised authority on tree 
physiology and climate change and who is 
affiliated with the research platform in the Wits 
School of Animal, Plants and Environmental 
Sciences, will act as the Research Chair. 
Through the Research Chair, Professor 
Scholes will identify critical research needs 
and develop research outputs related to 
climate change. The Chair will further focus on 
developing and mentoring young academics 
and researchers, through the funding for a 
post-doctoral fellow as well as bursaries for 
a Master’s and an Honours student. 
Given increasing global pressure to account 
accurately for greenhouse gas emissions from 
forests, land and agriculture, Professor Scholes 
will also lead the development of capacity to 
manipulate and interpret climate modelling 
data. 
Our initial sponsorship of the Research Chair 
will run until 2026. Climate change is one of the 
university’s eight research priorities. Sappi and 
other industry members already have an 
association with the Wits Global Change 
Institute related to climate change modelling 
(see above) which began in 2020. 
Given that forestry is a long-term crop, we 
need to know well in advance where to direct 
our resources and investment. The work by 
Wits will facilitate this by providing more 
accurate climate models and replicable, 
workable methodologies. 
Fertiliser quantities used in our plantations 
are very low compared with other agricultural 
land uses. Fertiliser is generally only applied at 
planting when Eucalyptus trees are planted 
(pine trees are not normally fertilised) with the 
aim of stimulating early seedling growth. The 
small quantities applied do not alter site 
nutrition but rather provide limited localised 
nutrition. This assists with rapid establishment 
of seedlings and early canopy closure resulting 
in weed suppression and increased tree 
growth. Fertiliser is locally placed next to each 
tree and covered by soil to limit losses. 
We have been conducting trials to optimise 
fertiliser prescriptions and to possibly reduce 
the quantity of nitrogen fertiliser that is applied 
through nutrient exclusion trials. This is an 
important step on our climate-smart journey, 
given that nitrogen-based fertilisers contribute 
to greenhouse gas (GHG) emissions. 
Renewable energy and climate change continued
Temperatures over the South African interior are projected to rise at about 
1.5 to 2 times the global rate
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Renewable energy and climate change continued
 Managing pests and 
disease 
 within the context of 
 climate change 
Given the rapidly accelerating pace 
of climate change, more pests and 
diseases are appearing more often, 
with large land areas to monitor and 
manage. We are rapidly transforming 
from Integrated Pest Management 
(IPM) to Precision Pest Management 
(PPM) through collaboration with 
internal and external research 
partners. In addition to early detection 
through remote sensing, this involves 
using micro-climate epidemiological 
data and biological controls. 
Nurseries are highly susceptible to pest and 
disease outbreaks due to the presence of warm, humid 
conditions to enhance tree growth. Nursery practices 
alone are not always sufficient to restrict pest and disease 
outbreaks to below economic threshold levels. It is, 
therefore, necessary to have access to reliable pesticides 
for use in outbreak situations.​ 
Two fungal pathogens that cause regular disease 
outbreaks in nurseries are Quambalaria 
eucalypti and Sphaerotheca pannosa (powdery mildew).​ 
In collaboration with the Timber Industries 
Pesticides Working Group, we initiated several 
pesticide trials in 2021 and 2022 to identify products in 
different resistance groups. These included trials of several 
biological pesticides and biological control products. 
Efficient control of powdery mildew was obtained using 
a garlic-based product, while the use of two biological 
control agents, in combination with products to enhance 
root health and productivity, showed high potential in 
reducing Quambalaria levels. 
Kangar 
931™ 
0.5X
Kanguard 
940™ 
0.5X
Kangar 
931™ 
X
Kanguard 
940™ 
X
Kangar 
931™ 
2X
Kanguard 
940™ 
2X
Bumper 
940EC 
X
Untreated
control
Powdery mildew severity (total scores) after three product applications 
(trial determination)
● Ngodwana ● Clan
Reduction in powdery mildew by a garlic-based product (in block) 
on affected on GN hedges with no reduction in untreated hedges 
(control right).
300
250
200
150
100
50
0
Total  powdery mildew severity
183
155
100
65
56
49
280
263
279
258
273
259
189
174
280
227
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155 Sappi 2023 Group Sustainability Report

Opportunities  
 for  
 value creation
In South Africa we are looking into 
biodiesel opportunities in KwaZulu-
Natal province.  
Renewable energy and climate change continued
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156 Sappi 2023 Group Sustainability Report

Water stewardship
Financial materiality:
Direct use of freshwater is vital in our manufacturing operations and for 
our nurseries in South Africa. Our pulp and paper operations are highly 
dependent on the use and responsible management of water resources. 
Water is used in all major process stages, including raw materials 
preparation; pulp cooking, washing and screening; and paper machines; 
process cooling, generating steam for process use and onsite power 
generation.  In terms of indirect use, both our plantations in South Africa 
and the forests from which we source woodfibre are dependent on rainfall. 
To sum up: Water is integral to achieving our long-term strategic business 
objectives. All our mills use and treat water in accordance with 
comprehensive environmental permits. These play a key role in achieving 
our strategy of growing our business, sustaining our financial health and 
enhancing trust. To drive operational excellence, water management is 
included in our operational environmental management plans, which are 
reviewed and updated annually. Operational excellence is also based on 
water-related risks – both internal and external developments, together 
with climate change trends – and opportunities being built into our opex 
and capex plans and overall long-term strategic objectives. 
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157 Sappi 2023 Group Sustainability Report

Our people indicators continued
Water stewardship continued
Impact materiality:
Climate change is exacerbating 
both water scarcity and water-
related hazards (such as floods and 
droughts), as rising temperatures 
disrupt precipitation patterns 
and the entire water cycle. This 
is impacting socioeconomic 
growth, food security and health. 
Recognising the pressure on a finite 
resource that is core to our 
processes, we focus on identifying 
opportunities to save water 
throughout our pulp and paper-
making production process, 
recycling extensively within these 
processes and improving the 
quality of the wastewater (effluent) 
we discharge. Globally, 93% of our 
water intake is treated and returned 
to the watershed from which it 
came. 
How this issue links to other  
aspects of our business
Our global priority SDGs
 
 
 
Our strategic fundamentals
Grow our business
Sustain economic health
Drive operational excellence
Enhance trust
Our top 10 risks
4
Sustainability expectations
5
Climate change
6
Evolving technologies and 
consumer preferences
Our highlights
Group Water Stewardship 
policy approved 
Cloquet Mill honoured 
with 2023 AF&PA 
Leadership in 
Sustainability Award for 
Water Management 
Water reduction projects 
implemented at SEU mills 
Total water withdrawal 
decreased by 8% year-on-
year in FY2023 and by 7% 
over five years
The global forces shaping our 
Thrive strategy
Climate change and climate 
transition
Resource scarcity and growing 
concern for natural capital
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158 Sappi 2023 Group Sustainability Report

Water stewardship continued
Background 
Total water withdrawal includes water from 
rivers, own storage dams, groundwater from 
boreholes and potable water. Globally, total 
water withdrawal decreased by 8% year-on-
year in FY2023. This was largely due to the 
production curtailments that were taken in 
SEU and SNA due to poor market conditions. 
Our water use is typically lower in Europe 
where the share of more water intensive pulp 
production compared to total production is 
lower than in North America and South Africa. 
Most of our mills are situated in the vicinity 
of rivers from which they draw water. This 
withdrawal, which accounts for largest 
percentage of water use, is subject to 
licensing conditions in each area where we 
operate. Water management is included in our 
operational environmental management plans, 
which are reviewed and updated annually.
Water is recycled and reused up to 10 times 
throughout our mills and requires different 
levels of treatment depending on its use. Our 
mills have primary, secondary and tertiary 
effluent treatment processes according to 
requirements. We treat effluent to remove 
dissolved substances to eliminate phosphates, 
nitrates, oxygen demanding pollutants etc. 
Solid materials collected in the various 
treatment stages are dewatered yielding a 
sludge which is typically used as a fuel for 
energy production. Once the water is treated, 
it is returned to surface water sources. In 
FY2023, 93% our water intake was returned. 
In South Africa, which is a semi-arid region with 
high inter- and intra-seasonal precipitation 
variability, we have a 2025 target to reduce 
specific water use by 23% from base year 
2019 (44.5m3/adt). 
With the help of external consultants, we have 
conducted climate change scenarios for our 
mills, with water stress being one of the climate 
hazard indicators used. The scenarios, 
compiled with data from Global Change 
Institute (GCI) at the University of the 
Witwatersrand in Johannesburg used a 2020 
baseline, with scenarios to 2030 and 2050, in 
line with our strategic decarbonisation goals.
Sappi Forests has also conducted scenario 
analysis which indicates higher levels of water 
stress than previously thought. However, we 
have anticipated the situation for many years 
now, given that forestry crops are long-lived, 
with rotation periods of 10 years for eucalypts 
and 20 years for pines. In addition, it takes 
more than 20 years to develop a new hybrid 
tree variety. Accordingly, our business strategy 
has evolved to focus more intensely on tree 
improvement research to breed trees for 
drought resistance and match tree species to 
the unique water qualities of sites.
Total water withdrawal by source (mil m3/annum)
Surface water (river, dam)
Ground water (boreholes)
Third-party water 
(municipal potable)
Total
● 2019 ● 2020 ● 2021 ● 2022 ● 2023
270
248
253
271
249
18
18
19
19
17
13
300
278
288
305
280
13
17
15
13
350
300
250
200
150
100
50
0
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159 Sappi 2023 Group Sustainability Report

Level of total water discharge treatment (%) 
2023
8%
27%
65%
● Tertiary treatment 
8% 
● Secondary treatment  
65%
● Primary treatment  
27%
● Environment with no treatment and third-party discharge 
0%
Specific chemical oxygen demand (COD) (kg/adt)
Global
● 2019 ● 2020 ● 2021 ● 2022 ● 2023
25.0
20.0
15.0
10.0
5.0
0
8.5
8.8
8.6
7.6
8.8
17.7
19.3
17.1
19.6
20.6
6.7
10.8
11.7
11.0
11.8
12.6
7.7
6.8
10.9
8.2
Europe
North America
South Africa
Specific total suspended solids (TSS) (kg/adt) 
Global
● 2019 ● 2020 ● 2021 ● 2022 ● 2023
25.0
20.0
15.0
10.0
5.0
0
1.25
1.00
1.07
1.24
1.15
0.75
0.93
0.88
1.03
1.00
10.87
3.6
3.0
4.2
6.5
6.1
8.84
14.11
23.26
16.17
Europe
North America
South Africa
Globally there was an increase. In SEU and SNA, absolute COD 
decreased while specific COD increased due to commercial 
downtime. In SSA, there was a decrease. This was due to lower 
bagasse volumes at Stanger Mill. Tugela Mill also showed a 
decrease. Saiccor Mill has been excluded from this parameter as 
it is the only mill in the group to use the sulphite pulping process 
in the production of dissolving pulp. (Both Ngodwana and 
Cloquet Mills use the prehydrolysis kraft pulping process.)
Globally there was a slight decrease. In SEU, the decrease was 
mainly due to the debottlenecking of the sludge press and the 
magnesium oxide project in Gratkorn Mill’s bleaching section. In 
SNA, absolute TSS reduced, however, on a specific basis the 
magnitude of the reduction was less significant due to market 
curtailment. In SSA the decrease was due mainly to a reduction 
at Saiccor Mill.
Water stewardship continued
We have a 2025 target to  
reduce specific water use by 
23% from base year 2019  
(44.5m3/adt)
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160 Sappi 2023 Group Sustainability Report

Key developments in FY2023 
The SETS Committee approved our Group 
Water Stewardship policy. The policy 
recognises that access to clean water and 
sanitation is a global human right as 
recognised by the United Nations General 
Assembly. It also acknowledges that our 
manufacturing operations are dependent on 
water and we do have an impact on our primary 
water sources, rivers and dams, as well as on 
the receiving bodies into which we discharge 
wastewater. The policy outlines our 
commitments and actions to guide our actions 
as responsible water stewards. 
We use the WWF Water Risk Tool to classify 
the location of our mills in water-stressed 
areas. According to the tool, in 2023, we 
had three operations situated in high water-
stressed areas, based on water withdrawal 
locations and sources. These sites represent 
18% of global production. 
Our 110,000 tpa capacity expansion project 
at Saiccor Mill was commissioned in FY2022. 
New technology employed at the mill 
incorporates improved washing technology 
to optimise water and energy efficiency.  
Sappi Europe continued to make progress on 
water stewardship throughout the year with a 
specific focus on the completion of projects 
at Kirkniemi and Alfeld Mills.  At Kirkniemi Mill 
in Finland, we incorporated two new state-of-
the-art online measurement systems into our 
wastewater treatment plant to enhance 
monitoring of the mill’s wastewater treatment 
processes. The first system installed measures 
phosphorus levels after the water had been 
treated. This allows continuous assessment 
of the wastewater’s condition, enabling us 
to fine-tune nutrient dosing with greater 
precision. The second system enabled 
chemical oxygen demand (COD) measurement, 
which assesses wastewater quality and the 
water treatment plant efficiency. At Alfeld Mill, 
two projects were completed in 2023 that will 
reduce water consumption. By implementing 
an additional cooling circuit to the cooling unit 
at PM5, the cooling system can now run 
year-round and reduce the need for continual 
additions of fresh water for cooling. This is 
expected to save an additional 216,000 cubic 
metres of water a year.  The second project at 
the mill involved modernising the control 
system for the cooling equipment used in the 
coating stations on PM3 avoiding water 
overflow and wastage. This new system now 
manages pneumatic flaps that automatically 
regulate the water volume within the setup. 
Tests have shown that up to 1,000 cubic 
metres of freshwater can be saved daily with 
the system. 
Shortly after year-end, SNA was recognised for 
its Cloquet Mill Effluent TSS Reduction project, 
designed to find a new chemical treatment 
programme to reduce the TSS (total 
suspended solids) and biological oxygen 
demand (BOD) substances in the mill’s effluent 
discharge. 
As a result of the project’s success, Cloquet 
Mill achieved immediate and consistent 
reduction in TSS and BOD of 41%, and 5% 
respectively. 
The programme involved three phases 
between 2015 and 2022. Phase I and Phase II 
focused on introducing a coagulant to the 
clarifier and reducing chemicals needed for pH 
control for the paper mill clarifiers, thereby 
decreasing TSS. Phase III, finalised in 2022, 
addressed the old programme chemistry, 
which was not effective for both clarifiers due 
to the chemistry differences in the two 
separate influent streams. To remedy this, the 
mill trialled three new chemical programmes 
with three different vendors to find a coagulant 
that worked in both systems, leading to the 
current resolution. Since the start of Phase I 
in 2015, the mill’s TSS has reduced by half. 
Sappi Forests announced collaboration in an 
innovative project to test the simulation of 
reduced rainfall on various genotypes, 
together with a tree physiology and genomic 
study to investigate how these aspects 
interact with drought tolerance and recovery. 
This project at the Shaw Research Centre, was 
approved by Forestry South Africa for Sector 
Innovation Funding – to be matched 50% by 
industry funding. The first phase of the project 
involves using eight genotypes with controlled 
irrigation within a nursery tunnel structure.
Water stewardship continued
We use the 
WWF Water 
Risk Tool 
to classify the location of 
our mills in water-stressed 
areas.
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161 Sappi 2023 Group Sustainability Report

Opportunities  
 for  
 value creation
Under South African legislation, 
commercial forestry is defined as a 
stream flow reduction activity and thus 
a water use licence for planting is 
required, even though our plantations 
are not irrigated. Research indicates 
that commercial forestry accounts for 
only 3% of South Africa’s water use, 
while irrigation/agriculture account 
for 60%. 
We continue to engage with national 
and local government and 
communities to accelerate 
afforestation in KwaZulu-Natal and the 
northern region of the Eastern Cape. 
Development in the rural areas of these 
provinces is limited and expansion of 
plantations in these regions would 
promote socioeconomic development 
in line with the South African 
Government’s ambitions and the 
Forestry Sector Masterplan. 
Water stewardship continued
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162 Sappi 2023 Group Sustainability Report

Our people indicators continued
Circular bioeconomy and minimal waste
Financial materiality:
Establishing a more sustainable 
production and consumption 
model in which raw materials are 
kept longer in production cycles 
and can be used repeatedly, 
therefore generating much less 
waste has both environmental 
and economic benefits.
Impact materiality:
Minimising waste and promoting 
sustainable use of natural resource 
through smarter product design, 
longer use and innovative waste 
minimisation, can help solve other 
complex challenges such as climate 
change and biodiversity loss, with 
positive benefits for people and the 
planet.
How this issue links to other  
aspects of our business
Our global priority SDGs
 
 
 
 
Our strategic fundamentals
Grow our business
Drive operational excellence
Enhance trust
Our top 10 risks
4
Sustainability expectations
5
Climate change
6
Evolving technologies and 
consumer preferences
Our highlights
Successful waste sludge 
project at Carmignano 
Mill
SSA mills are actively 
pursuing beneficiation 
opportunities 
specifically for ash, fibre 
sludge and biomass with 
a beneficiation increase 
of 5% in FY2023, year-
on-year, and reduction 
of specific waste to 
landfill of 12%
The global forces shaping our 
Thrive strategy
Move towards a circular economy 
Climate change and climate 
transition
Resource scarcity and growing 
concern for natural capital
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163 Sappi 2023 Group Sustainability Report

Circular bioeconomy and minimal waste continued
Background
In line with our strategic focus on extracting 
the full potential of trees and woodfibre, we 
operate according to circular economy 
principles by using resources efficiently 
and reducing waste generation, from 
manufacturing processes through to end-of-
life product recycling. With investments in 
research and development (R&D) and new 
product development, Sappi’s innovation 
continually strives to create new products and 
value from woodfibre and side streams. Not 
only does this work improve resource use, but 
in many cases, it also generates products that 
have superior sustainability credentials to the 
conventional products that they replace.
Please refer to Our 2023 Planet 
indicators on https://www.sappi.
com/2023GSDR-Planet-indicators 
for these and other graphs detailing:
•	  Total weight of waste by type and 
disposal method
•	 Specific landfilled waste
Global breakdown of solid waste types 
in Sappi (%)
2023
36.2%
25.1%
18.4%
28.1%
28.4%
0.8%
3.4%
2.6%
8.4%
2.6%
4.1%
0.2%
0.1%
2.8%
0.1%
1.4%
26.3%
6.2%
4.6%
Global breakdown of ‘other’ solid waste types 
in Sappi (%)
2023
● Bark (from own operations) 
28.4% 
● Sludge (from pulp and paper mill  
25.1%
     and biological treatment) 
● Boiler ashes 
18.4%
● Other 
28.1%
● Wood Waste (knots, sawdust, slivers,  
36.2%
 
fines oversize, pallets, other wood) 
● Paper and packaging waste  
4.6%
● Other combustible waste 
0.8%
● Green liquor dregs/sodium 
3.4% 
 
sulphate rejects 
● Slaker rejects 
2.6%
● Lime mud 
8.4%
● Wires and felts 
0.0%
● Domestic Waste 
2.6%
● Plastics, polystyrene, plastic packaging 
4.1%
● Hazardous Waste 
0.2%
● Used oil 
0.1%
● Other/scrap metals, iron, empty cans 
1.4%
● Oil contaminated waste 
0.1%
● Other waste (rolls, small chemicals,  
2.8%
 
grinding roll waste etc)
● Other waste 
6.2%
● Waste used for capping  
26.3%
 
purposes (t/annum)
Globally there was a slight decrease. In SEU, the 
decrease was due to a six-month standstill at the 
coal boiler at Gratkorn Mill (now converted to 
biomass). In SNA, reduced pulp production meant 
a decrease in bark production and incineration, 
thereby reducing the percentage of waste 
beneficiated. In SSA there was a slight increase as 
Saiccor Mill found an external offset for bark and 
wood waste, while Ngodwana Mill beneficiated 
and sold more fibre sludge and ash.
Waste diverted from disposal (%) 
EU
NA
SA
Global
● 2019 ● 2020 ● 2021 ● 2022 ● 2023
100
80
60
40
20
0
87.9
89.5
90.3
95.2
89.6
78.0
79.0
77.9
75.2
70.0
64.1
73.6
76.4
78.1
76.9
74.3
69.0
73.2
69.3
72.5
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Key developments in FY2023 
In 2023, Carmignano Mill in Italy took 
significant steps towards having its wastewater 
treatment sludge valued as a by-product 
suitable for manufacturing products. The 
sludge, which is produced during the 
wastewater treatment process, will be used by 
a Hungarian company – Greecon Solutions. 
Their specialty lies in utilising recyclable 
materials to create products for a range of 
insulation applications, including moisture, fire 
and – in this particular instance – sound. In the 
coming months, a share of Carmignano’s 
sludge waste will be converted into filler for 
insulation panels. 
Initial trials to assess the feasibility of the 
project proved a success, and in the coming 
months 30% of the mill’s sludge waste, 
approximately 1,000 tons a year, will be 
shipped to Hungary to be made into acoustic 
insulation panels. 
This is not the first time that one of our mills 
has found effective use for sludge. In 2020, 
our Condino Mill in Italy found a way to 
repurpose their own sludge by partnering 
with a local company manufacturing thermal 
insulation for buildings. 
SEU continued to help lead and direct the work 
of the 4evergreen alliance, a cross-industry 
association of over 100 members representing 
the entire lifecycle of fibre-based packaging 
– from forests to producers, designers, 
brand owners and recyclers. 4evergreen’s 
overarching goal is to achieve a 90% recycling 
rate for fibre-based packaging in Europe by 
2030 (a significant increase from the current 
82.5%). Four key targets underpin this goal:
That the fibre-based industry recognises 
and uses 4evergreen’s Recyclability 
Evaluation Protocol and its Circularity by 
Design guideline.
That separate collection streams are 
available for all fibre-based packaging types 
including those used in household, out-of-
home and on-the-go consumption. 
That all paper for recycling is sorted 
according to the paper and board categories 
specified in the EN643 standard. 
That 100% of collected fibre-based 
packaging is recycled.
In 2022, 4evergreen launched the beta version 
of its new Recyclability Evaluation Protocol for 
fibre-based packaging (part one for standard 
mills). Companies can use the tool together 
with the Confederation of European Paper 
Industries’ (CEPI’s) Recyclability Test Method to 
gauge how easy it will be to recycle a particular 
piece of packaging in a standard mill. Updates 
and additional versions are due shortly. The 
alliance has also developed a Circularity by 
Design Guideline to help ensure that new 
packaging is easy to collect, sort and recycle. 
A third set of guidelines aims to improve how 
fibre-based packaging is collected and sorted, 
to both increase the rate of recycling and to 
ensure the quality of the collected material.
We will continue to play a key role in the 
alliance going forward, as this helps to drive 
our sustainability agenda.
In South Africa, Ngodwana and Tugela Mills 
continued to use recovered paper and board 
– approximately 16% each. Much of this is 
supplied by Sappi ReFibre, SSA’s secondary 
fibre division, which sources used paper 
products from an extensive network of agents 
across the Southern African region as well as 
from waste producers. The recovered board 
and paper are used to supplement virgin fibre 
in the manufacturing of packaging paper 
grades. Stanger Mill uses a certain percentage 
of bagasse (sugar cane waste residue) in the 
manufacture of paper products and going 
forward, this has now also been used to 
produce moulded fibre products (discussed 
further on page 
 101). 
Other circularity developments include our 
involvement in an initiative to develop proof 
of concept for a circular fashion model  
(page 
 93), the moulded fibre product 
discussed in the paragraph above and the 
biofuel pellets project at Saiccor Mill.
Circular bioeconomy and minimal waste continued
In South Africa, Ngodwana and Tugela Mills  
continued to use recovered paper and board – 
approximately 16% each
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Opportunities  
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 value creation
SNA is planning to launch LusterFSB 
Compostable in FY2024. The new 
certified compostable paperboard will 
be used for paper plates and bowls.
Circular bioeconomy and minimal waste continued
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Biodiversity
Financial materiality
Sappi’s view is that nature and 
biodiversity-related risks are 
financial risks and must be seen as a 
strategic risk management priority 
which, if handled correctly, is a 
source of competitive and 
commercial advantage.
Impact materiality
People around the word are reliant 
on the ecosystem services that 
nature provides including 
pollination, carbon sequestration, 
erosion control, flood and storm 
protection, disease control and soil 
quality. Ecosystem services are 
essential for human health and 
survival, from freshwater to food 
and fuel. 
How this issue links to other  
aspects of our business
Our global priority SDGs
 
 
 
 
Our strategic fundamentals
Grow our business
Drive operational excellence
Our top 10 risks
4
Sustainability expectations
5
Climate change
Our highlights
SFI Maine Committee 
wins the 2023 SFI 
Implementation 
Committee 
Achievement Award
Expansion of the Sappi 
Rare, Threatened and 
Endangered Species 
Stewardship 
Programme
The global forces shaping our  
Thrive strategy
Move towards a circular economy 
Climate change and climate 
transition
Resource scarcity and growing 
concern for natural capital
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Biodiversity continued
Background
Given that we are a renewable resource 
company, biodiversity is the foundation of our 
business. We promote healthy ecosystems in 
the forests and plantations from which we 
source woodfibre and biodiversity indicators 
are incorporated into the internationally 
acknowledged, independent forest certification 
systems we use. 
Key developments in FY2023
The SFI Maine Committee, of which Sappi is an 
active member and supporter, was honoured 
with the 2023 SFI Implementation 
Committee Achievement Award. The 
committee was selected for its collaborative 
leadership in addressing key enhancements to 
the SFI Forest Management and Fibre Sourcing 
Standards related to climate-smart forestry, 
fire resilience and forests of exceptional 
conservation value. In terms of the latter, the 
Maine Committee worked with the Maine 
Natural Areas Programme, the Maine 
Department of Inland Fisheries and Wildlife, 
and Maine’s Certified Logging Professionals 
programme to assess forests of exceptional 
conservation value – a new requirement of the 
SFI Fibre Sourcing Standard. The assessment 
produced a map of these forests and a list of 
nearby towns. A video explaining steps to take 
if forestry activities intersect with forests of 
exceptional conservation value was developed 
and shared broadly with Maine’s community of 
loggers, foresters, and landowners. The list of 
forests of exceptional conservation value will 
be revisited annually.
Our Thrive 2025 target is to enhance 
biodiversity in important conservation areas 
(ICAs) on our plantations by 10% by 2025. 
There are approximately 156 sites on Sappi-
owned land classified as ICAs adding up to 
about 38,320ha of a diverse range of habitats 
including grasslands, wetlands, riverine areas 
and natural forest patches. Essentially, ICAs are 
areas that are important at the local level and 
are classified using a systematic conservation 
planning approach. Criteria that are used 
include the presence of both plant and animal 
red data species, the threat status of the 
ecosystem, the size, connectedness, condition 
and aesthetic and recreational value of the 
area. 
Our 2023 assessment of our ICAs showed a 
7% improvement. To assist in moving towards 
achieving the set biodiversity improvement 
target, Sappi has developed an ICA project 
template to ensure that the progress of the 
projects can be measured in a standardised 
manner. Based on the findings of the initial 
assessment of each area, suggestions for 
improvement can range from increased weed 
control to attain a maintenance status, 
improvements in sub-standard crossings 
to improve stream flow and reduce 
sedimentation, and the prevention of 
overgrazing and frequent burning of important 
grasslands.
Key actions identified to enhance biodiversity 
include:
•	 Implementing alien weed control
•	 Examining the burning regime to ensure that 
it is at the appropriate frequency, depending 
on fire risk
•	 Managing cattle
•	 Implementing erosion control measures 
such as stream crossing upgrades and 
identified erosion features within ICAs. 
Progress on implementation of identified 
actions is monitored annually.
The Sappi Rare, Threatened and 
Endangered Species Stewardship 
Programme expanded with the addition of 
three new trees. The background to this 
programme is as follows: Warburgia salutaris, 
(the pepper-bark tree or ‘isibhaha’ in isiZulu), 
has long been one of the most highly prized 
tree species in the Southern African traditional 
healthcare sector, but was overharvested. In 
2014, Sappi joined an initiative to propagate 
the trees and distribute them to communities 
living around the Kruger National Park (KNP) to 
take the pressure off the few remaining wild 
trees. We also began using our tree breeding 
and production expertise to propagate pepper-
bark trees from cuttings for distribution to rural 
communities. This project has enjoyed 
immense success with over 130,000 seedlings 
grown to date in 2023, with approximately 
95,000 saplings surviving after placement. 
Interest in the project has resulted in 
assistance being given to Zimbabwe and 
eSwatini in their attempts to raise the numbers 
of their trees to a state of sustainability, as well 
as the extension of the project to areas in 
South Africa where the tree once occurred in 
the natural vegetation of the regions. 
Trees are supplied at no cost to appropriate 
communities to protect the few remaining 
known wild populations. It is hoped that these 
populations will regenerate themselves 
naturally once not under direct threat and 
stress from humans. The project has allowed 
for an easy working template for endangered 
trees that are a challenge to grow, but that play 
a key role in traditional medicine – according to 
the World Health Organisation in 2023, at least 
80% of Africa’s population rely on traditional 
medicine for their basic health needs. The next 
phase of the project, after consultation with 
local communities and conservation agencies, 
focuses on Prunus africana (African Cherry), 
Ocotea bullata (Black Stinkwood) and Curtisia 
dentata (Assegai tree).
The seven proclaimed nature reserves on our 
land, which total 6,350ha. fall under, or are part 
of, South Africa’s Biodiversity Stewardship 
Programme managed by the South African 
National Biodiversity Institute (SANBI). Through 
these areas, we make a significant positive 
contribution in safeguarding biodiversity, with 
the nature reserves and the network of other 
large open areas providing critical ecological 
corridors in the landscape. We continued to 
work with the provincial and conservation 
authorities to proclaim an eighth nature 
reserve on our land to protect a critically 
endangered butterfly, the Karkloof Blue 
Butterfly.
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Biodiversity continued
Revitalising 
 threatened 
 aquatic species in 
 Finland
Kirkniemi Mill has continued providing 
support to the project Lohikalat 
Karjaanjokeen (translated as ‘salmons to 
Lake Lohjanjärvi’) in 2023. The long-
standing ambitious project 
involves building fish passages to restore 
salmon stocks and freshwater pearl 
mussel populations in the 
Mustionjoki River, which is part of 
the Karjaanjoki watershed. Flowing from 
Lake Lohjanjärvi to the Gulf of Finland, 
the Mustionjoki River is important for 
salmon migration and provides a habitat 
for the mussels. The watershed also 
provides Kirkniemi Mill with one of its 
most important raw materials, fresh water. 
In 2023, the mill participated in organising the Lake Lohjanjärvi  
seminar where the project was presented. The mill director gave a 
presentation about the mill’s operations, describing how water  
protection has always been a very important part of the work  
at the mill. Through our continued support to revitalising  
biodiversity in the Karjaanjoki watershed, we highlight our  
commitment to protecting, preserving and  
improving water in the communities we  
call home.
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Opportunities  
 for  
 value creation
In 2024, a formal reassessment of all 
ICAs will provide an updated rating to 
be compared with the initial 
assessment rating in 2021-2022, 
thereby giving us a more accurate 
overview of the success – or lack 
thereof – of our interventions.
Biodiversity continued
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Our planet indicators
Air emissions
GRI reference
Unit
2019
2020
2021
2022
2023
NOx
kg/annum
11,024,920
9,784,051
9,913,230
10,555,399
11,980,180
kg/adt
1.7
1.7
1.6
1.6
2.4
SOx
305-7
kg/annum
10,030,272
10,858,503
13,591,003
13,004,256
15,219,372
kg/adt
1.5
1.9
2.2
2.0
3.1
Particulate matter
kg/annum
2,909,061
6,190,461
3,327,250
5,482,422
3,521,928
kg/adt
0.4
1.1
0.5
0.8
0.7
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GHG emissions
Our planet indicators continued
GRI reference
Unit
2019
2020
2021
2022
2023
Scope 1
305-1a
million kg CO2eq/annum
 4,421 
 4,078 
 4,269 
 4,079 
 3,474 
305-4
kg CO2eq/adt
661.1
706.0
677.8
612.9
696.5
Scope 1 emissions from
305-1b
CO2
million kg CO2eq/annum
 4,099 
 3,763 
 3,961 
 3,772 
 3,169 
CH4
million kg CO2eq/annum
 264 
 261 
 254 
 253 
 253 
N2O
million kg CO2eq/annum
 58 
 54 
 53 
 53 
 52 
Biogenic emissions
305-1c
million kg CO2eq/annum
 7,074 
 6,803 
 6,622 
 6,877 
 6,730 
Scope 2
305-2a
million kg CO2eq/annum
1,553
1,207
1,161
1,333
1,234
305-4
kg CO2eq/adt
232.3
208.9
184.3
200.3
247.5
Scope 3
305-3a
million kg CO2eq/annum
3,977
3,365
3,512 
3,784
3,472
305-4
kg CO2eq/adt
594.7
582.6
557.7
568.7
695.9
Scope 3 emissions from
305-3d
Purchased goods
million kg CO2eq/annum
1,829
1,404
1,491
1,675
1,554
Capital goods
million kg CO2eq/annum
11
–
–
–
–
Fuel and energy-related activities
million kg CO2eq/annum
924
817
983
984
838
Upstream transport
million kg CO2eq/annum
1,113
1,048
953
1,041
993
Waste
million kg CO2eq/annum
81
82
72
71
69
Business travel
million kg CO2eq/annum
7.2
2.7
0.6
2.6
6.7
Employee commuting
million kg CO2eq/annum
12.5
12.2
11.9
11.2
10.6
Total specific GHG emissions (Scope 1 and 2)
305-4
million kg CO2eq/annum
 5,974 
 5,285 
 5,429 
 5,411 
 4,709 
kg CO2eq/adt
 893.3 
 914.9 
 862.1 
 813.2 
 944.0LA 
kg CO2eq/US$ million
1,039.7
1,146.7
1,031.4
741.7
 810.7 
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Water and effluents
Our planet indicators continued
GRI reference
Unit
2019
2020
2021
2022
2023
Process water extracted1
Own measure
m3/annum
 231,916,239 
 215,411,083 
 220,689,614 
 229,361,378 
 219,989,082 
m3/adt
34.7
37.3
35.0
34.5
44.1
Water withdrawal by source
303-3a
Surface water
m3/annum
 270,074,169 
 247,517,140 
 252,542,848 
 271,081,060 
 249,024,177 
Ground water
m3/annum
 17,568,103 
 17,625,043 
 18,651,590 
 18,942,446 
 17,082,980 
Third party
m3/annum
 12,669,958 
 12,602,513 
 16,635,673 
 14,903,148 
 13,498,544 
Total withdrawal
303-a
m3/annum
 300,312,230 
 277,744,696 
 287,830,111 
 304,926,654 
 279,605,701 
m3/adt
44.9
48.1
45.7
45.8
56.1
Water withdrawal by source from water-stressed 
areas2
303-3b
Surface water
m3/annum
 – 
 – 
 – 
 56,277,224 
 46,342,044 
Ground water
m3/annum
 – 
 – 
 – 
 413,931 
 387,251 
Third party
m3/annum
 – 
 – 
 – 
 – 
 – 
Total water withdrawal from  
water-stressed areas2
303-3b
m3/annum
 – 
 – 
 – 
 56,691,155 
 46,729,295 
Own measure
m3/adt
 – 
 – 
 – 
 8.5 
 9.4 
Own measure
%
 – 
 – 
 – 
18.6
16.7
Water discharge by destination
303-4a
Seawater
m3/annum
 45,809,312 
 38,938,588 
 45,926,521 
 48,720,138 
 48,838,544 
Surface water
m3/annum
 206,362,692 
 193,204,557 
 199,844,189 
 214,905,615 
 186,943,894 
Third party water
m3/annum
 23,486,763 
 22,675,103 
 24,017,649 
 24,834,269 
 23,521,506 
Groundwater
m3/annum
 – 
 – 
 – 
 – 
 – 
Total water discharge
303-4a
m3/annum
 275,658,766 
 254,818,248 
 269,788,359 
 288,460,022 
 259,303,945 
m3/adt
41.2
44.1
42.8
43.3
52.0
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Water and effluents continued
Our planet indicators continued
GRI reference
Unit
2019
2020
2021
2022
2023
Water discharge by destination in  
water-stressed areas2
303-4c
Seawater
m3/annum
 – 
 – 
 – 
 – 
 – 
Surface water
m3/annum
 – 
 – 
 – 
 49,288,436 
 39,108,843 
Third-party water
m3/annum
 – 
 – 
 – 
 – 
 – 
Groundwater
m3/annum
 – 
 – 
 – 
 10,251 
 9,381 
Total water discharge in water-stressed areas2
303-4a
m3/annum
 – 
 – 
 – 
 49,288,436 
 39,108,843 
Own measure
m3/adt
–
–
–
7.4
 7.8 
Own measure
%
–
–
–
17.1
15.1
Water discharge by level of treatment
GRI clause 2.4.2
Discharge to a third party without treatment
m3/annum
 26,979 
 24,280 
 27,875 
 28,760 
 26,429 
Primary treatment 
m3/annum
 64,178,344 
 56,252,506 
 67,395,510 
 72,863,518 
 69,081,013 
Secondary treatment
m3/annum
 188,297,171 
 178,602,866 
 179,352,223 
 189,431,971 
 169,652,824 
Tertiary treatment
m3/annum
 23,156,273 
 19,938,596 
 23,012,751 
 26,135,773 
 20,543,680 
Total water consumption3
303-5a
m3/annum
 24,653,463 
 22,926,448 
 18,041,753 
 16,466,632 
 20,301,758 
m3/adt
3.7
4.0
2.9
2.5
4.1
%
8.2
8.3
6.3
5.4
7.3
Total consumption3 in water stressed areas2
303-5a
 m3/annum
 – 
 – 
 – 
 7,402,720 
 7,620,452 
Own measure
m3/adt
 – 
 – 
 – 
 1.1 
 1.5 
Own measure
%
 – 
 – 
 – 
2.4
2.7
Notes
1	 Process water refers to water used for the manufacturing process only. Process water excludes non-contact cooling water (SEU and SNA), water to the community, irrigation water, unused water back to the source, water for mill domestic use, 
and water sold to municipalities and third parties. 
2	 The water risk status of associated basins is based on the WWF Water Risk Filter for physical risk(s). Physical risk(s) comprise water scarcity, flooding, water quality and ecosystem status. Reported figures for water stress allocation is based on 
the seven different aspects integrated within the Water scarcity parameter (aridity index, water depletion, baseline water stress, blue water scarcity, available water remaining, drought frequency probability, and projected change in drought 
occurrence).
3	 The term Water consumption refers to the withdrawal portions that are no longer available for use by the ecosystem or local community due to incorporation into products, generated into waste or due to release into the atmosphere through 
evaporation, and is therefore not returned back to surface water, groundwater, seawater or a third party over the course of the reporting period.
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Effluent quality
Waste
Our planet indicators continued
GRI reference
Unit
2019
2020
2021
2022
2023
COD1
303-2
kg/annum
 64,015,359 
 60,614,493 
 61,989,786 
 70,271,171 
 53,315,640 
kg/adt
10.8
11.7
11.0
11.8
12.6
TSS
303-2
kg/annum
 23,953,736 
 17,301,899 
 26,577,986 
 42,753,637 
 30,439,890 
kg/adt
3.6
3.0
4.2
6.5
6.1
Note
1	  Saiccor Mill has been excluded from this parameter as it is the only mill in the group to use the sulphite pulping process in the production of dissolving pulp. (Both Ngodwana and Cloquet Mills use the prehydrolysis kraft pulping process.)
GRI reference
Unit
2019
2020
2021
2022
2023
Total specific solid waste to landfill  
(on-site and off-site)
Own measure
kg/adt
65.1
60.0
52.1
51.1
73.6LA
Waste generated by type
Hazardous 
306-5b
t/annum
 1,871 
 2,704 
 2,024 
 1,183 
 918 
Non-hazardous 
306-5c
t/annum
 1,650,054 
 1,476,964 
 1,502,469 
 1,475,337 
 1,431,247 
Total
306-5a
t/annum
 1,651,925 
 1,479,668 
 1,504,492 
 1,476,520 
 1,432,165 
% hazardous waste
%
0.11
0.18
0.13
0.08
0.06
Waste beneficiated 
306-4a
t/annum
1,216,430
1,130,927
1,175,721
1,135,061
1,064,482
Own measure
%
73.6
76.4
78.1
76.9
74.3
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Energy
Our planet indicators continued
GRI reference
Unit
2019
2020
2021
2022
2023
Total energy consumption within organisation
302-1
GJ/annum
 147,857,277 
 136,801,840 
 140,630,797 
 147,179,507 
 130,777,595 
MWh/annum
 41,071,466 
 38,000,511 
 39,064,110 
 40,883,196 
 36,327,110 
Breakdown of energy consumption within 
organisation
Purchased fossil fuels
GJ/annum
 51,753,227 
 48,197,364 
 50,578,703 
 49,259,353 
 40,544,844 
Purchased renewable fuels
302-1a and b
GJ/annum
 6 836 264 
 5,425,584 
 4,727,212 
 4,804,701 
 7,598,652 
Own renewable fuels
GJ/annum
 63,402,979 
 62,292,505 
 61,002,814 
 63,726,975 
 59,364,623 
Purchased power consumption
GJ/annum
 12,157,209 
 10,376,515 
 10,941,866 
 12,070,060 
 9,792,137 
Purchased steam consumption
GJ/annum
 631,042 
 511,673 
 525,749 
 579,353 
 296,443 
Own renewable power (hydro)
GJ/annum
 330,291 
 277,064 
 251,322 
 191,488 
 159,467 
Energy intensity
302-3
GJ/adt
22.1
23.7
22.3
22.1
26.2
Reduction of specific energy consumption
302-4
GJ/adt
 (0.4)
 1.6 
(1.4) 
(0.2) 
 4.1 
Renewable and clean energy
Own measure
%
53.5
53.8
54.9
55.0
57.9
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Our people indicators continued
COURAGE
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Glossary
General definitions
AGM – Annual General Meeting.
AF&PA – American Forest and Paper 
Association.
air dry tons (ADT) – Meaning dry solids 
content of 90% and moisture content of 10%.
BCTMP – Bleached Chemi-Thermo 
Mechanical Pulp.
biochemicals – Enzymes, hormones, 
pheromones etc, which either occur naturally 
or are manufactured to be identical to naturally 
occurring substances. Biochemicals have 
many environment-friendly applications, such 
as natural pesticides that work in non-lethal 
ways as repellents or by disrupting the mating 
patterns of the pests.
biofuels – Organic material such as wood, 
waste and alcohol fuels, as well as gaseous 
and liquid fuels produced from these 
feedstocks.
biomaterials – New developments in wood 
processing support the move to a biobased 
economy that utilises materials that are 
renewable and biodegradable and in the case 
of wood feedstocks do not compete with food 
sources.
black liquor – The spent cooking liquor from 
the pulping process which arises when 
pulpwood is cooked in a digester thereby 
removing lignin, and other extractives from the 
wood to free the cellulose fibres. The resulting 
black liquor is an aqueous solution of lignin 
residues and the inorganic chemicals used in 
the pulping process. Black liquor contains 
slightly more than half of the energy content of 
the wood fed into the digester.
bleached pulp – Pulp that has been 
bleached by means of chemical additives to 
make it suitable for higher brightness fine 
paper production.
CDP – Carbon Disclosure Project.
casting and release paper – Embossed 
paper used to impart texture in polyurethane or 
polyvinyl chloride plastic films for the 
production of synthetic leather and other 
textured surfaces.
CEPI – Confederation of European Paper 
Industries.
Cham Paper Group Holding AG (CPG) 
– Speciality paper business acquired by Sappi, 
which included CPG’s Carmignano and 
Condino Mills (Italy) and its digital imaging 
business located in Cham (Switzerland) as well 
as all brands and know-how.
chemical oxygen demand (COD) – The 
amount of oxygen required to break down the 
organic compounds in effluent.
chemical pulp – A generic term for pulp 
made from woodfibre that has been produced 
in a chemical process.
CHP – Combined heat and power.
coated mechanical paper (CM) 
– Coated paper made from groundwood pulp 
which has been produced in a mechanical 
process, primarily used for magazines, 
catalogues and advertising material.
coated paper – Papers that contain a layer 
of coating material on one or both sides. The 
coating consisting of pigments and binders, 
acts as a filler to improve the printing surface 
of the paper.
coated woodfree paper (CWF) 
– Coated paper made from chemical pulp 
which is made from woodfibre that has been 
produced in a chemical process, primarily used 
for high-end publications and advertising 
material.
CoC – Chain of Custody.
COP26 – The 26th Conference of the Parties 
to the United Nations Framework Convention 
on Climate Change (COP26), that took place in 
Glasgow, Scotland in November 2021.
COP27 – The 27th Conference of the Parties 
to the United Nations Framework Convention 
on Climate Change (COP27), that took place in 
the Egyptian city of Sharm el-Sheikh in 
November 2022.
COP28 – The 28th Conference of the Parties 
to the United Nations Framework Convention 
on Climate Change (COP28), that took place in 
Dubai, United Arab Emirates (UAE) in 
November/December 2023.
corrugating medium – Paperboard made 
from chemical and semi-chemical pulp, or 
waste paper, that is to be converted to a 
corrugated board by passing it through 
corrugating cylinders. Corrugating medium 
between layers of linerboard form the board 
from which corrugated boxes are produced.
CSI and CSR – Corporate social investment 
and corporate social responsibility.
CSV – Corporate shared value involves 
developing profitable business strategies that 
deliver tangible social benefits.
dissolving pulp (DP) – Highly purified 
chemical pulp derived primarily from wood and 
in some instances cotton linters, intended 
primarily for conversion into chemical 
derivatives of cellulose and used mainly in the 
manufacture of viscose staple fibre, solvent 
spun fibre and filament.
DP market price – Market price for 
imported hardwood dissolving pulp into China 
issued daily by the CCF Group.
EIA – Environmental impact assessment.
EPR – Extended producer responsibility.
ESD – Enterprise and supplier development.
ESG – Environmental, social and corporate 
governance.
Eskom – Eskom is the South African national 
electricity public utility. 
energy – Is present in many forms such as 
solar, mechanical, thermal, electrical and 
chemical. Any source of energy can be tapped 
to perform work. In power plants, coal is 
burned and its chemical energy is converted 
into electrical energy. To generate steam, coal 
and other fossil fuels are burned, thus 
converting stored chemical energy into 
thermal energy.
fibre – Fibre is generally referred to as pulp in 
the paper industry. Wood is treated chemically 
or mechanically to separate the fibres during 
the pulping process.
fine paper – Paper usually produced from 
chemical pulp for printing and writing purposes 
and consisting of coated and uncoated paper.
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Glossary continued
FMCG – Fast-moving consumer goods. 
Examples include non-durable goods such as 
packaged foods, beverages, toiletries, 
over-the-counter medicines and many other 
consumables.
FSA – Forestry South Africa.
F
– A 
orest S
global, 
te
not-f
war
or-profit or
dship Council™ (FS
ganisation dedic
C™)
ate
 
d 
to the promotion of responsible forest 
management worldwide. (FSCTM N003159) 
https://www.fsc.org 
full-time equivalent employee – The 
number of total hours worked divided by the 
maximum number of compensable hours in a 
full-time schedule as defined by law.
graphic papers – A generic term for a 
group of papers intended for commercial 
printing use such as coated woodfree, coated 
mechanical, uncoated woodfree and 
newsprint.
greenhouse gases (GHG) – The GHGs 
included in the Kyoto Protocol are carbon 
dioxide, methane, nitrous oxide, 
hydrofluorocarbons, perfluorocarbons and 
sulphur hexafluoride.
GRI – Global Reporting Initiative.
GSDC – Group Sustainability Development 
Council.
hemicellulose sugars – The biorefinery 
process for second-generation hemicellulose 
sugars involves recovering them from the 
prehydrolysate liquor, and then separating 
them mostly from lignin.
high-yield pulp – Pulp that has a higher 
yield from wood logs than pure chemical pulps. 
High-yield pulp is processed either through 
mechanical processes or combined 
mechanical chemical processes such as 
Matane high-yield bleached chemi-thermo 
mechanical pulp (BCTMP).
ISO – The International Organisation for 
Standardisation.
JSE Limited – The main securities exchange 
in South Africa.
KPI  – Key performance indicator.
kraft paper – Packaging or other paper 
(bleached or unbleached) made from kraft 
pulp.
kraft pulp – Chemical wood pulp produced 
by digesting wood by means of the sulphate 
pulping process.
Kyoto Protocol – A document signed by 
over 160 countries at Kyoto, Japan in 
December 1997 which commits signatories to 
reducing their emission of GHG relative to 
levels emitted in 1990.
lignosulphonate – Lignosulphonate is a 
highly soluble lignin derivative and a product of 
the sulphite pulping process.
linerboard – The grade of paperboard used 
for the exterior facings of corrugated board. 
Linerboard is combined with corrugating 
medium by converters to produce corrugated 
board used in boxes.
liquor – White liquor is the aqueous solution 
of sodium hydroxide and sodium sulphide used 
to extract lignin during kraft pulping. Black 
liquor is the resultant combination of lignin, 
water and chemicals.
lost-time injury frequency rate 
(LTIFR) – Number of lost-time injuries x 
200,000 divided by man hours.
lost-time injury severity rating 
(LTISR) – Number of days lost x 200,000 
divided by actual man hours.
managed forest – Naturally occurring 
forests that are harvested commercially.
mechanical pulp – Pulp produced by 
means of the mechanical grinding or refining of 
wood or woodchips.
nanocellulose – Cellulose is the main 
component of plant stems, leaves and roots. 
Traditionally, its main commercial use was in 
producing paper and textiles. Nanocellulose is 
derived from further processing cellulose to a 
smaller size fraction or nano scale. These 
engineered celluloses open up opportunities 
for advanced, planet friendly solutions in place 
of environmentally harmful products.
natural/indigenous forest – Natural 
forests include old growth and primary forests 
as well as managed forests where most of the 
principal characteristics and key elements of 
native ecosystems such as complexity, 
structure, wildlife and biological diversity are 
present.
NBHK – Northern Bleached Hardwood Kraft 
pulp. One of the varieties of market pulp, 
produced from hardwood trees (ie, birch or 
aspen) in Scandinavia, Canada and northern 
United States of America.
newsprint – Paper produced for the printing 
of newspapers mainly from mechanical pulp 
and/or recycled waste paper.
NGO – Non-governmental organisation.
NPO – Non-profit organisation.
OTC – Over-the-counter trading of shares.
Own measure – Is a term that refers to any 
internal reporting preferences that are 
currently not required by the GRI topic 
disclosures. These figures can be absolute, 
percentages of totals or intensity ratios. For 
example, intensity ratios are obtained by 
dividing the absolute value (numerator) by the 
organisation-specific metric, air dry ton (the 
denominator).
packaging and speciality papers – A 
generic term for a group of papers intended for 
commercial and industrial use such as flexible 
packaging, label papers, functional papers, 
containerboard, paperboard, silicone base 
papers, casting and release papers, dye 
sublimation papers, inkjet papers and tissue 
paper.
packaging paper – Paper used for 
packaging purposes.
PAMSA – Paper Manufacturers’ Association 
of South Africa.
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Glossary continued
Programme for the Endorsement of 
Forest Certification (PEFC) – An 
international non-profit, NGO dedicated to 
promoting sustainable forest management 
(SFM) through independent third-party 
certification. PEFC works by endorsing national 
forest certification systems and is represented 
in 49 countries through national organisations 
such as SFI® in North America.  
https://www.pefc.org 
plantation – Large scale planted forests, 
intensively managed, highly productive and 
grown primarily for wood and fibre production.
PM – Paper machine.
power – The rate at which energy is used or 
produced.
pulpwood – Wood suitable for producing 
pulp – usually not of sufficient standard for 
sawmilling.
release paper – The backing paper for 
self-adhesive labels.
R&D – Research and development.
sackkraft – Kraft paper used to produce 
multi-wall paper sacks.
Sappi Biotech – The business unit within 
Sappi which drives innovation and 
commercialisation of biomaterials and 
biochemicals.
Sappi Europe (SEU) – The business unit 
within Sappi which oversees operations in the 
European region.
Sappi Dissolving Pulp – The business 
unit within Sappi which oversees the 
production and marketing of DP.
Sappi North America (SNA) – The 
business unit within Sappi which oversees 
operations in the North American region.
Sappi Southern Africa (SSA) – The 
business unit within Sappi which oversees 
operations in the Southern Africa region.
SBS – Solid bleached sulphate board.
SBTi – The Science Based Targets initiative 
(SBTi) is a partnership between Carbon 
Disclosure Project (CDP), the United Nations 
Global Compact (UNGC), World Resources 
Institute (WRI) and the World Wide Fund for 
Nature (WWF). The objective of SBTi is to drive 
ambitious climate action in the private sector 
by enabling companies to set science-based 
GHG emissions reduction targets. SBTi 
provides technical assistance and expert 
resources to companies who set science-
based targets in line with the latest climate 
science and provides companies with 
independent assessment and validation of 
decarbonisation targets.
Scope 1 and 2 GHG emissions – The 
Greenhouse Gas Protocol defines Scope 1 
(direct) and Scope 2 (indirect) emissions as 
follows: 
•	 Direct GHG emissions are emissions from 
sources that are owned or controlled by the 
reporting entity, and
•	 Indirect GHG emissions are emissions from 
purchased electricity, steam, heat or cooling.
SDGs – see UN SDGs.
SETS – Social, ethics, transformation and 
sustainability.
silviculture costs – Growing and tending 
costs of trees in forestry operations.
solid waste – Dry organic and inorganic 
waste materials.
specific – When data is expressed in specific 
form, this means that the actual quantity 
consumed during the year indicated, whether 
energy, water, emissions or solid waste, is 
expressed in terms of a production parameter. 
For Sappi, as with other pulp and paper 
companies, this parameter is air dry tons of 
saleable product.
specific purchased energy – The term 
‘specific’ indicates that the actual quantity 
during the year indicated, is expressed in terms 
of a production parameter. For Sappi, as with 
other pulp and paper companies, the 
parameter is air dry tons of product.
specific total energy (STE) – The energy 
intensity ratio defined by the total energy 
consumption in the context of the saleable 
production.
Sustainable Forestry Initiative® (SFI®) 
– Is a solutions-oriented sustainability 
organisation that collaborates on forest‑based 
conservation and community initiatives. 
The SFI forest management standard is 
the largest forestry certification standard 
within the PEFC programme. 
https://forests.org/ 
TCFD – Task Force on Climate-related 
Financial Disclosures.
TNFD – Taskforce on Nature-related Financial 
Disclosures
thermo-mechanical pulp – Pulp 
produced by processing woodfibres using heat 
and mechanical grinding or refining wood or 
woodchips.
ton – Metric ton of 1,000 kg.
total suspended solids (TSS) – Refers 
to matter suspended or dissolved in effluent.
tons per annum (tpa) – Term used in this 
report to denote tons per annum (tons a year). 
Capacity figures in this report denote tons per 
annum at maximum continuous run rate.
Transnet – Transnet is the state-owned 
South African rail, port and pipeline company. 
uncoated woodfree paper – Printing and 
writing paper made from bleached chemical 
pulp used for general printing, photocopying 
and stationery, etc. Referred to as uncoated as 
it does not contain a layer of pigment to give it 
a coated surface.
United Nations Global Compact 
(UNGC) – A principle-based framework for 
businesses, stating 10 principles in the areas 
of human rights, labour, environment and 
anti-corruption.
UN SDGs – United Nations Sustainable 
Development Goals.
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Glossary continued
Verve – Brand name for Sappi dissolving pulp. 
viscose staple fibre (VSF) – A natural 
fibre made from purified cellulose, primarily 
from DP that can be twisted to form yarn.
WBCSD – World Business Council For 
Sustainable Development.
woodfree paper – Paper made from 
chemical pulp.
World Wildlife Fund (WWF) – The 
world’s largest conservation organisation, 
focused on supporting biological diversity.
General financial definitions
acquisition date – The date on which 
control in respect of subsidiaries, joint control 
in respect of joint arrangements and significant 
influence in associates commences.
associate – An entity over which the investor 
has significant influence.
basic earnings per share – Net profit for 
the year divided by the weighted average 
number of shares in issue during the year.
commissioning date – The date that an 
item of property, plant and equipment, whether 
acquired or constructed, is brought into use.
compound annual growth rate 
(CAGR) – The mean annual growth rate of an 
investment over a specified period of time 
longer than one year.
control – An investor controls an investee 
when it is exposed, or has rights, to variable 
returns from its involvement with the investee 
and has the ability to affect those returns 
through its power over the investee.
diluted earnings per share – Is 
calculated by assuming conversion or exercise 
of all potentially dilutive shares, share options 
and share awards unless these are anti-dilutive.
discount rate – This is the pre-tax interest 
rate that reflects the current market 
assessment of the time value of money for the 
purposes of determining discounted cash 
flows. In determining the cash flows the risks 
specific to the asset or liability are taken into 
account in determining those cash flows and 
are not included in determining the discount 
rate.
disposal date – The date on which control 
in respect of subsidiaries, joint arrangements 
and significant influence in associates ceases.
fair value – The price that would be received 
to sell an asset or paid to transfer a liability in 
an orderly transaction between market 
participants at the measurement date.
financial results – Comprise the financial 
position (assets, liabilities and equity), results of 
operations (revenue and expenses) and cash 
flows of an entity and of the group.
foreign operation – An entity whose 
activities are based or conducted in a country 
or currency other than that of the reporting 
entity.
functional currency – The currency of the 
primary economic environment in which the 
entity operates.
group – The group comprises Sappi Limited, 
its subsidiaries and its interest in joint ventures 
and associates.
joint arrangement – Is an arrangement of 
which two or more parties have joint control.
joint venture – Is a joint arrangement 
whereby the parties that have joint control of 
the arrangement have rights to the net assets 
of the arrangement.
operating profit – A profit from business 
operations before deduction of net finance 
costs and taxes.
presentation currency – The currency in 
which the financial results of an entity are 
presented.
qualifying asset – An asset that 
necessarily takes a substantial period (normally 
in excess of six months) to get ready for its 
intended use.
recoverable amount – The recoverable 
amount of an asset or cash-generating unit is 
the higher of its fair value less costs of disposal 
and its value-in-use. In determining the 
value-in-use, expected future cash flows are 
discounted to their net present values using 
the discount rate.
related party – Parties are considered to be 
related if one party directly or indirectly has the 
ability to control the other party or exercise 
significant influence over the other party in 
making financial and operating decisions or is 
a member of the key management of Sappi 
Limited.
share-based payment – A transaction in 
which Sappi Limited issues shares or share 
options to group employees as compensation 
for services rendered.
significant influence – Is the power to 
participate in the financial and operating policy 
decisions of an entity but is not control or joint 
control of those policies.
Non-GAAP financial definitions
The group believes that it is useful to report 
certain non-GAAP measures for the following 
reasons:
•	 These measures are used by the group for 
internal performance analysis
•	 The presentation by the group’s reported 
business segments of these measures 
facilitates comparability with other 
companies in our industry, although the 
group’s measures may not be comparable 
with similarly titled profit measurements 
reported by other companies, and
•	 It is useful in connection with discussion with 
the investment analyst community and debt 
rating agencies.
These non-GAAP measures should not be 
considered in isolation or construed as a 
substitute for GAAP measures in accordance 
with IFRS.
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Glossary continued
asset turnover (times) – Sales divided by 
total assets.
average – Averages are calculated as the 
sum of the opening and closing balances for 
the relevant period divided by two.
black economic empowerment (BEE) 
charge – Represents the IFRS 2 non-cash 
charge associated with the BEE transaction 
implemented in 2010 in terms of BEE 
legislation in South Africa.
capital employed – Shareholders’ equity 
plus net debt.
cash interest cover – Cash generated by 
operations divided by finance costs less 
finance revenue.
current asset ratio – Current assets 
divided by current liabilities.
dividend yield – Dividends per share, which 
were declared after year-end, in US cents 
divided by the financial year-end closing prices 
on the JSE Limited converted to US cents 
using the closing financial year-end exchange 
rate.
earnings yield – Earnings per share divided 
by the financial year-end closing prices on the 
JSE Limited converted to US cents using the 
closing financial year-end exchange rate.
EBITDA excluding special items 
(EBITDA) – Earnings before interest (net 
finance costs), taxation, depreciation, 
amortisation and special items.
EPS excluding special items – Earnings 
per share excluding special items and certain 
once-off finance and tax items.
fellings – The amount charged against the 
income statement representing the standing 
value of the plantations harvested.
GAAP – Generally accepted accounting 
principles.
headline earnings – As defined in Circular 
1/2019, issued by the South African Institute of 
Chartered Accountants in March 2021, which 
separates from earnings all separately 
identifiable remeasurements. It is not 
necessarily a measure of sustainable earnings. 
It is a Listings Requirement of the JSE Limited 
to disclose headline earnings per share.
inventory turnover (times) – Cost of 
sales divided by inventory on hand at balance 
sheet date.
net assets – Total assets less total liabilities.
net asset value per share – Net assets 
divided by the number of shares in issue at 
balance sheet date.
net cash (utilised) generated – Cash 
flows from operating activities less cash flows 
from investing activities.
net debt – Current and non-current interest-
bearing borrowings and lease liabilities, and 
bank overdraft (net of cash, cash equivalents 
and short-term deposits).
net debt to total capitalisation – Net 
debt divided by capital employed.
net operating assets – Total assets 
(excluding deferred taxation and cash and cash 
equivalents) less current liabilities (excluding 
interest-bearing borrowings, lease liabilities 
and overdraft).
NPV – Net present value.
ordinary dividend cover – Profit for the 
period divided by the ordinary dividend 
declared, multiplied by the actual number of 
shares in issue at year-end.
ordinary shareholders’ interest per 
share – Shareholders’ equity divided by the 
actual number of shares in issue at year-end.
price/earnings ratio – The financial 
year-end closing prices on the JSE Limited 
converted to US cents using the closing 
financial year-end exchange rate divided by 
earnings per share.
revolving credit facility (RCF) – A 
variable line of credit used by public and private 
businesses.
ROCE – Return on average capital employed. 
Operating profit excluding special items 
divided by average capital employed.
ROE – Return on average equity. Profit for the 
period divided by average shareholders’ equity.
RONOA – Return on average net operating 
assets. Operating profit excluding special 
items divided by average net operating assets.
SG&A – Selling, general and administrative 
expenses.
special items – Special items cover those 
items which management believe are material 
by nature or amount to the operating results 
and require separate disclosure. Such items 
would generally include profit or loss on 
disposal of property, investments and 
businesses, asset impairments, restructuring 
charges, non-recurring integration costs 
related to acquisitions, financial impacts of 
natural disasters, non-cash gains or losses on 
the price fair value adjustment of plantations 
and alternative fuel tax credits receivable in 
cash.
total market capitalisation – Ordinary 
number of shares in issue (excluding treasury 
shares held by the group) multiplied by the 
financial year-end closing prices on the JSE 
Limited converted to US cents using the 
closing financial year-end exchange rate.
trade receivables days outstanding 
(including securitised balances) 
– Gross trade receivables, including 
receivables securitised, divided by sales 
multiplied by the number of days in the year.
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PATIENCE