Sustainability Report 2014
Southern Africa
Sustainability Report 2014
Living the rainbow
“South African belongs to all its peoples. We, the people, belong to
one another. We live the rainbow.”
National Development Plan 2030
Our key issues
Like many other industries, the pulp and paper industry
globally is facing many challenges, including unpredictable
energy costs, slowing growth in mature markets, over-capacity
and increasingly rigorous environmental regulation.
In addition to these broad challenges, there are certain
issues that are key to ensuring our ongoing viability as
a business. These are determined in conjunction with our
Risk Management Team and with input from stakeholders.
It may or may not happen. Companies can plan for a risk,
based on the probability of it occurring and the potential
impact on the company (and its environment). Risks may
be tolerated, treated, transferred or avoided.
An issue is a problem, concern or opportunity that has
arisen within the company or within its economic,
social or natural environment. It may have a real or
perceived impact on the company. Importantly, an issue
needs to consider the viewpoint of all stakeholders,
not simply economic stakeholders.
of October 2013 to the end of September 2014.
Reporting framework
As Sappi is listed on the Johannesburg Stock Exchange,
we abide by the King III Code on Corporate Governance (King III).
Joint ventures excluded
Lignotech South Africa, located at our Sappi Saiccor Mill,
our 50:50 joint venture with Borregaard, is excluded from this
report as we do not manage this operation.
We demonstrate our global commitment to sustainability
through our participation in the UN Global Compact and
we are equally committed to ensuring that the companies
in the supply chain operate safely and comply with
international standards with respect to human rights,
discrimination and freedom of association.
In this report, we have placed greater emphasis on materiality
throughout the value chain, as well as stakeholders’ concerns,
in accordance with the core principles of the Global Reporting
Initiative’s recently released G4 reporting guidelines.
ind s
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n
standard g
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leadership
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Gro
ty
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Po uction
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d
re
It’s important to note that we differentiate risk and issues
in the following manner: A risk is an event that may have
an impact on the company or its economic, social or
natural environment.
This sustainability report for Sappi Southern Africa (SSA) is
aligned with the Sappi Limited 2014 Integrated Report and
2014 Group Sustainability Report (available online at
www.sappi.com) and covers the period from the beginning
Effective
government
Active
citizenry
s
Our efforts to do so are set out in the following pages.
Scope of this report
portunities
Op
Co
tio
South Africa’s National Development Plan (NDP) is a broad
strategic framework which sets out an holistic approach to
confronting poverty and inequality through faster and more
inclusive economic growth. We are determined to play a
strong role in aligning with the NDP by promoting economic
growth and enabling greater levels of social cohesion to live
up to the ideal of the ‘rainbow nation’ – a term coined by
Archbishop Desmond Tutu, winner of the 1984 Nobel Peace
Prize, to describe post-apartheid South Africa.
About this report
Cap
a
b
ilit
ie
Sappi’s roots in South Africa go back almost 80 years
and our commitment to this country is highlighted by the fact
that our global headquarters have remained in South Africa.
yplo
m ent
m
About our theme
Source: National Development Plan 2030
Social
cohesion
Sustainability Report 2014
1
Contents
Our business
2-7
Our vision
2
Our goal
2
Our operations
3
Our value add to Southern Africa
4
Our sustainable business model in South Africa
6
Leadership messages and reviews
8-15
Leadership messages
8
Review of 2014 targets
9
Our approach to sustainability
11
Engaging with our stakeholders
12
Our sustainability governance structure
15
Our key issues - Prosperity
16-26
Profitability
16
20
Fibre supply
Our key issues - People
27-41
Skills
27
Education
31
Safety, health and wellbeing
33
Employee engagement
36
Transformation
38
Our key issues - Planet
42-47
Water
42
Energy
44
Waste
46
Our South African sustainability council 48-49
Messages from the members of the Regional
Sustainability Council
48
All references to Forest StewardshipCouncil® (FSC®) in this report are, according to the below definition. FSC® and FSC™ – in terms of the Forest Stewardship
Council® (FSC®) scheme – refer to two types of certification. In order for land to achieve FSC™ endorsement, its forest management practices must meet the
FSC™’s 10 principles and other assorted criteria. Logs with FSC™ – FSC – C012316 (certified originate from own plantations as well as on the Sappi Grant Scheme
(FSC – C017054) with other logs from controlled sources) is for manufacturers of forest products, including paper manufacturers like Sappi, Chain-of-Custody
certification. This involves independent verification of the supply chain, which identifies and tracks the timber through all stages of the production process from the
tree farm to the end product. Sappi’s Mills in South Africa are licenced – Cape Kraft Mill – FSC C074733, Enstra Mill – FSC C022126, Ngodwana Mill – FSC C021636,
Saiccor Mill FSC C011012, Stanger Mill – FSC C019831, Tugela Mill – FSC C012468.
2
Sustainability Report 2014
Our business
Our vision
Our goal
We are inspired:
To be an exciting, growing and profitable leader in paper,
• By life
packaging and specialised cellulose (also known as dissolving
• By nature
wood pulp or DWP), providing value for our shareholders,
• By the interactions with our customers and suppliers
• By our observations of what is happening around us.
We use this inspiration and understanding to create
solutions and products that are sustainable and relevant
to the world.
people and customers in a safe, responsible and
sustainable manner.
Sustainability Report 2014
Our operations
Sappi Specialised Cellulose
Saiccor and Ngodwana Mills
Dissolving wood pulp (also known as specialised cellulose)
Sappi Paper and Paper Packaging
Cape Kraft Mill
Containerboard and coated packaging paper from
recycled paper
Enstra Mill
Uncoated graphics paper, specialities, office kraft paper
and containerboard from recycled paper
Ngodwana Mill
Kraft linerboard and newsprint
Stanger Mill
Uncoated graphics and office paper, specialities and tissue
Tugela Mill
Semi-chemical fluting, and corrugated medium form
recycled paper, lignosulphonates
Sappi Forests and Sappi ReFibre
KwaZulu-Natal and Mpumalanga Forests
Pulpwood
Sawlogs
Lomati Sawmill
Structural and industrial timber
ReFibre
Recovered fibre
3
4
Sustainability Report 2014
Our business
Our value add to Southern Africa
Sappi contributes just under 1% of South Africa’s total export revenue
R2.5 billion Gauteng
3 2
11
5
7
21
35
4
7
North West
5
R335 million Western Cape
7
2
3
15
18
14
7
6
Northern Cape
28
% Reinvested
% Maintenance and other services
% Customer logistical services
% Timber and related logistical services
% Pulp, recycled paper and bagasse
% Chemicals and additives
% Utility services
% Packaging and consumables
% To employees
% To financiers
% Taxes and PAYE
Western Cape
Cape Town
Port Elizabeth
Sustainability Report 2014
R4.2 billion Mpumalanga
10
2
23
3
8
Limpopo
7
16
5
Gauteng
Mpumalanga
18
8
Johannesburg
R49 million Swaziland
Swaziland
15
Free State
KwaZulu-Natal
47
27
Durban
11
Eastern Cape
R8.7 billion KwaZulu-Natal
8
2
20
2
9
12
Corporate head office
16
6
7
Regional head office
Mill
Sales office
18
5
6
Sustainability Report 2014
Our business
Our sustainable business model in South Africa
Our 3Ps: we have aligned the six capitals model with our long-established approach
to sustainable development – the 3Ps of Prosperity, People and Planet.
Prosperity
Manufactured capital
Material issues
4 paper mills
1 specialised cellulose mill
1 paper and specialised cellulose mill
1 sawmill
Intellectual capital
Financial capital
US$28.6 million R&D global spend
Technology centres
in KwaZulu-Natal and Gauteng
Total assets: R20.4 billion
Net debt: R1.1 billion
People
Human capital
Worldclass safety systems
Employees
5,486 employees
Contractors
Approximately 12,000 contractor workers
Energy
Education and skills
Environmental legislation
Fibre supply
Focus on high margin,
high growth markets
Innovation
Safety, health and wellbeing
Transformation
Water
Waste
Chemicals: We aim to source chemicals locally
Energy: 40% energy self-sufficient
Water: Used 88 million m3
Inputs
Fibre: 4.8m tons, of which 69% was
supplied by our own, leased are managed plantations
Recycled fibre: 31% of all paper sold
Social and relationship capital
R23.2 million corporate social responsibility (CSR) spend
Ongoing stakeholder engagement
Planet
Natural capital
40% of energy derived from renewable resources
495,000 hectares of owned and leased plantations
Bagasse (Stanger Mill)
Recovered fibre
82% of fibre supplied to our mills is certified
Our plantations used 15% of water available in our catchment areas
Commercial forestry plantations in South Africa account for only 3%
of total water use in the country; by comparison irrigated agriculture
accounts for 60%
The papermaking
and dissolving
wood pulp
processes
Performance
Significant improvement in
financial performance
R&D paying dividends
Increased investment in CSR with
greater focus on community engagement
and skills development
Ongoing environmental improvement
Improved safety
Sustainability Report 2014
At the heart of our sustainable business model is a natural,
renewable
– woodfibre.
At the heartresource
of our sustainable
business model is a natural,
renewable resource – woodfibre.
Outcomes
Outcomes
Governance
Prosperity
SETS Committee
Governance
Prosperity
SETS Committee
Strategy and
resource allocation
Strategy and
resource allocation
Water
Energy
Water
Waste
Energy
Chemicals
Waste
Chemicals
Outputs
Outputs
EBITDA margin: 18%
53% of revenue from DWP
26%Strategy
increasedelivers
in EBITDA
strong
earnings growth
EBITDA excluding special
items US$658 million
(up 25% year-on-year)
EPS excluding special items
22 US cents
Net debt US$1,946 million,
down US$301 million year-on-year
Increase in saleable production
of 5.8% over five years
People
Expanding pool of skills
BBBEE: Level 3 contributor
Expanding
of skills
Focused
CSR –pool
education
andBBBEE
the environment
compliance in South Africa
96 training
employee
Focusedhours
CSRper
– education
and the environment
Training and development
spend of US$8.6 million
People
Planet
Outlook
Specialised cellulose
demand
growing
Outlook
Adjacent
market
potential
Specialised
cellulose
using
our woodfibre
demand
growing
Strong
packaging
demand
Adjacent
marketpaper
potential
Weak
graphics
paper
market
Speciality paper products
Papermaking
Papermaking
Dissolving wood pulp
Dissolving wood pulp
Ongoing focus on forestry stewardship
88% of water drawn after being treated
andPower
cleaned
is sufficiency:
returned to the
environment
self
56.8%
OneOngoing
third of land
managed
for
focus on forestry stewardship
biodiversity conservation (SA)
93% of water drawn returned
82% of woodfibre used was certified
to the environment
One third of land managed for
biodiversity conservation (SA)
Planet
7
8
Sustainability Report 2014
Leadership messages and reviews
“Entrenching sustainability in its broadest sense (environmental
and all other activities essential to business sustainability) into
our everyday business is an ongoing process and not an event,
but I am convinced you will see continuous improvement in all
facets of sustainability over the next few years as we sustain a
very strong board and management focus on these areas.”
Jock McKenzie
Chairman, Sappi Social Ethics Transformation and Sustainibility Committee
“Since taking over as CEO, I have been constantly impressed by the
depth of talent within Sappi and the commitment of all our people
to putting us back on the road to profitability, without compromising
our values. Having the right people executing a clear strategy is key
to our ongoing sustainability. The Southern African business has
delivered a fantastic performance over the past year, returning the
paper business to profit and reaping the benefits from the investment
in specialised cellulose. I want to thank the Southern Africa team
for all their efforts and for the solid foundation which has been laid
for strong performances into the future.”
Steve Binnie
Chief Executive Officer, Sappi Limited
Message from the CEO of Sappi Southern Africa
Stakeholder trust is the foundation of our sustainable development journey. The high levels of
trust within Sappi Southern Africa were reflected during 2014 in our engagement with
employees and unions, with regulatory bodies, as well as with customers.
We concluded negotiations with trade unions in a spirit of positivity and we worked with
communities to meet their needs – most notably with regard to Early Childhood Development
(see page 31 of this report). We engaged the Department of National Treasury via our industry
representative, the Paper Manufacturers Association of South Africa (PAMSA), to motivate
the carbon tax design to incorporate opportunities for carbon sequestration.
We met customer needs for lighter weight packaging with the launch of Ultraflute (see page 18 for further details).
Essentially, this light, strong product allows our customers to move more tonnage in the same amount of boxes,
with obvious economic and environmental benefits.
Our employees’ alignment with and efforts towards realising our strategy of returning to profitability paid off, with the
business showing good financial results. Our employees also took our safety strategy on board, in terms of which safety is
a responsibility for everyone, not only for management. I am pleased to report that this meant there were no fatalities for the
first time in a number of years. However, we have to continue our safety drive to ensure that all our people – both own and
contractor employees – go home safely to their families at the end of every day.
Still on the subject of trust, we continue to take our role as custodians of the 495,000 hectares of land we own, manage and
lease very seriously and this commitment extends to our manufacturing operations. Environmental legislation in South Africa
is becoming increasingly onerous. We have to strike a balance between what is good for the Planet and what is good for
People and Prosperity and we are committed to working with the regulatory authorities to achieve this.
The changes we have had to make to return to profitability over the last few years have been wide-reaching and, in many
cases, difficult. I would like to thank all our people who have placed their trust in the regional leadership and worked so
hard to build a more prosperous, sustainable Sappi.
Alex Thiel
Chief Executive Officer, Sappi Southern Africa
Sustainability Report 2014
Review of our 2014 targets
Sustainability is the driving force in every decision we make as a company. As we focus on creating value for our shareholders,
we take cognisance of our impact on this planet and stakeholders to ensure that all benefit in the long term. In 2010, we set
certain targets to be achieved by 2015 with progressive interim targets. Our current year’s achievements against those
progressive interim targets are discussed below.
Profitability
Return on net assets (RONA) to be equal to or greater than
15% on a five-year rolling basis
2014 Target
Status
10%
11%
Our performance was above target due to both our specialised cellulose and paper businesses. Our coated fine paper
business struggled throughout the year with depressed local demand for print paper. We continue to focus on reducing
costs, adjusting capacity and streamlining our product range which will lead to further improvements in our paper division
in 2015.
Adherence to planned skills training for employees
80% compliance to the Workplace Skills Plan (WSP)
2014 Target
Status
75%
68%
There was ongoing focus on planned training to improve skills in the right areas of our business, and to enhance our employees’
ability to add more value to the business, as well as their chances of promotion and career development.
Commitment to training employees
Provide training and development opportunities of an
average of 60 hours per employee per annum
2014 Target
Status
57 hours
96 hours
per employee
per employee
Training was predominantly learnerships, particularly apprenticeships, together with knowledge and capacity building.
Corporate Social Responsibility (CSR)
Achieve spend of 1% of net profit after tax (NPAT)
2014 Target
Status
1%
Spend of 1.63%
of NPAT
of NPAT
Our key areas of focus were on education and the environment as well as support of local communities in the geographic
locations where we have operations.
Safety
2014 Target
Status
LTIFR of < 0.27
LTIFR of 0.38
Combined Lost Time Injury Frequency Rate (LTIFR) for own
employees and contractors to be better than best ever
achieved on a continuous 12-month basis.
Safety remains a key focus area for us and we made good progress on previous years but did not achieve target.
We had no fatal accidents during this financial year. This is the first time in our history that this has been achieved.
9
10
Sustainability Report 2014
Leadership messages and reviews
Broad-based Black Economic Empowerment (BBBEE)
Achieve Level 3 compliance in BBBEE.
2014 Target
Status
Level 3
Level 3
contributor
contributor
2014 Target
Status
Reduction
Reduction
of 9.5%
of 26.2%
Successfully regained our Level 3 status this year.
Specific Purchased Fossil Energy (SPFE)
Achieve 15% reduction in SPFE with 2000 as a base year
We have managed to reduce our SPFE beyond our commitment to government which was 15% by 2015. We will continue to
focus on improving this even further into the future with some significant interventions expected in 2018.
Specific Fresh Water Usage (SFWU)
Reduce total SFWU by 10% with 2007 as a base year
2014 Target
Status
Reduction
Reduction
of 8.8%
of 7.6%
While we did not manage to achieve our target this year, it was a 62% improvement over the previous year. We have made
some significant strides in certain areas where we have been able to displace fresh water with industrial water in our
processes. Further initiatives are being implemented which should result in us improving on the current year.
Recovered fibre usage
2014 Target
Status
31% recycled
Recover 28% of fibre put into the market
27%
paper in all
paper sold
We achieved the highest ever recovered fibre volume usage during 2014; ending significantly better than our target for the
year as well as our 2015 target. Our startup of the new waste plant at Enstra Mill has been the biggest contributor to this.
Sustainability Report 2014
Our approach to sustainability
Our approach to sustainability is based on a holistic view of
Prosperity, People and Planet (the 3Ps). It also takes into account
the requirement for doing business in South Africa with its
unique priorities which are driven largely by the need to reduce
the unacceptably high unemployment rate. Being a sustainable
organisation means that we balance and integrate the 3Ps
into our business decisions, strategies and processes to
help us create value for all our stakeholders.
We belong to the following associations:
•
Industry bodies: Forestry South Africa (FSA);
Packaging Council of South Africa (PACSA);
Paper Manufacturers’ Association of South Africa (PAMSA);
Paper Recycling Association of South Africa (PRASA),
Forest Stewardship CouncilTM (FSCTM).
•
Business and voluntary associations: South African
Chamber of Commerce and Industry (SACCI);
Business Unity South Africa (BUSA); Business Leadership
At the heart of our business is a renewable, recyclable
natural resource – woodfibre. We use this to create pulp,
paper and dissolving wood pulp solutions which enhance
the lives of consumers around the world.
We have developed a number of globally and locally
applicable policies which guide our performance in terms
of the 3Ps, including:
• Climate Change Policy
South Africa (BLSA); National Business Initiative (NBI);
Energy Intensive Users’ Group (EIUG); Manufacturing
Circle and TwoSides.
•
Civil society: World Wildlife Fund South Africa (WWF-SA);
Birdlife SA; Wildlife and Environment Society of
South Africa (WESSA).
•
South African Institute of Entrepreneurship (SAIE).
•
Code of Ethics
•
Corporate Social Responsibility Policy
•
Environmental Policy
Sappi Forests is a founding member of the Tree Protection
•
Human Resources Policy
Co-operative Programme (TPCP) based in the Forestry and
•
Human Rights Policy
Bio-technical Institute (FABI: http://www.fabinet.up.ac.za/)
•
Occupational Health and Safety Policy
at the University of Pretoria. Through the TPCP we are also
•
Stakeholder Engagement Policy
•
Supplier Policy
•
Sustainability Charter
•
Wood and Fibre Procurement Policy.
Policies specific to South Africa:
• Forestry Safety, Health, Environment and Quality Policy
members of the internationally collaborative programme
BiCEP (Biological Control of Eucalyptus Pests)
(http://bicep.net.au/) at the Australian Centre for Industrial
and Agricultural Research (ACIAR).
We also belong to the Eucalyptus Genome Network (EUCAGEN)
based at the University of Pretoria.
•
HIV/AIDS Policy.
Through our membership of the Manufacturing Circle,
•
Occupational Health and Safety Policy
we supported the Buy Back South Africa campaign
•
Pulp and Reclaimed Material Sourcing Policy
launched in November 2013.
•
Railway Safety Policy
•
Quality Policy
S P E R
I
Y
P
T
R
O
•
•
T
P
O
N
E
E
P
L
E
•
P
L
A
Occupational Health and Safety Policy
These policies are all available under the sustainability tab at www.sappi.com.
External policies and charters
•
Eskom’s 49M campaign.
•The Organisation for Economic Co-operation and
Development (OECD) Policy Guidelines for Preventing
Corruption are incorporated into our Code of Ethics
•
The UN Global Compact (signed in 2008)
•Universal Declaration of Human Rights,
International Labour Organisation
While the safety and wellbeing of our employees, contractors and visitors is one of our
core values at Sappi, we also recognise that excellence in health and safety is integral
to the success and sustainability of our business.
In support of this general commitment
• We believe that all occupational injuries and diseases, as well as safety incidents, are preventable,
and our goal for all of them is zero
• We will continually strive to attain the highest industry standards for the safe operation of our facilities,
and for the protection of employees, contractors, visitors, customers and communities
• Compliance with the applicable legislation will be the minimum standard
• We will continue to grow and strengthen our businesses by making health and safety management
an integral part of our business activities
• We will continually improve our practices in light of advances in technology and new understandings
in health, safety and related sciences
• The management of occupational health and safety practices and its impact is a prime duty of Sappi
line management, from the most senior executive to the first line supervision
• Employees and contractors will receive appropriate health and safety instruction to enable them to
perform their duties in a safe manner
• We will continue to set objectives for health and safety performance
• Regular audits will be undertaken to ensure consistent and measureable progress is made throughout
our operations
• We will continue to provide the required resources and support to achieve these objectives.
• This policy will be reviewed from time to time to ensure its relevance.
Going forward, we will continue to develop our manufacturing, human, social and natural resources in
a way that ensures our sustainability approach enhances our long term viability and overall Prosperity.
Alex Thiel
Chief Executive Officer
Sappi Southern Africa
This policy is available on www.sappi.com or on request from:
sappipolicies@sappi.com Tel +27 (0)11 407 8307 Fax +27 (0)11 403 8236.
Document no SM-02 Revision no 02 Revision date 19 November 2014
www.sappi.com
Copyright © 2014 Sappi Limited. All rights reserved.
In terms of external policies and charters, we are guided by:
• Energy Efficiency Accord
11
12
Sustainability Report 2014
Leadership messages and reviews
Engaging with our stakeholders
Our focus is on understanding our stakeholders’ needs
Our key stakeholders are parties who can affect or be
of materiality, completeness and responsiveness. Our
affected by our activities, objectives and policies. We
stakeholders and the ways in which we engage with them
identify and prioritise stakeholders and their concerns
are set out below.
and building trust by engaging with them on the basis
through ongoing engagement with individuals and
organisations (government, industry bodies, suppliers,
Our engagement with our stakeholders has highlighted
NGOs and communities), and surveys of selected groups
certain key issues which have formed the basis for the
(employees, customers and investors) and audits (suppliers).
content of this report. These are highlighted in bold below.
Employees and unions
Our management
approach
Our focus is on building a skilled, engaged workforce in which diversity is encouraged and valued,
and people are provided with ongoing development opportunities so that they can develop to their full
potential. In so doing, we enhance productivity and our ability to service global markets.
Our regional CEO engages with staff through site visits and discussions. We also have suggestion lines at
some facilities. Unions have formal channels for engagement with management.
We encourage full engagement between managers and their staff. Other avenues of engagement include:
• Employee engagement survey (Recent survey done in 2013 – refer page 38)
Our engagement
•
Global, regional and local newsletters
•
Global intranet
•
Letters, roadshows and presentations by the global and regional CEOs
•
Various forums
- National Employment Equity and Skills Development Forum
- Shop Steward Forum
- Partnership Forum
•
Wellbeing committees at business units
•
Health and safety committees at mills.
•Employee developments, particularly in respect of transformation, job security and
promotional opportunities.
•Higher levels of employee involvement in our behaviour-based safety system and
wellbeing initiatives.
•Use every opportunity available to improve communication on all matters pertaining to
employment at Sappi.
Key issues
•Ethical behaviour, The refreshed Code of Ethics was rolled out across the group. In South Africa,
we initiated dialogue discussions and introduced an interactive ethics board game. The dialogue
discussions included 15 – 20 minute sessions covering topics relating to the core values and
sustainability facilitated through an interactive board game which triggers discussion relating to
possible ethical questions in the workplace. 39 Facilitators from the mills were trained in conducting
discussions and facilitating the board game.
•Enhance employees’ understanding of sustainability, We rolled out the Sustainaville Earthkind
Agent e-Learning game whereby employees are exposed to Sappi’s sustainability information via
a new and innovative platform. For 2015 the game is being developed into an offline version as well
as a tablet version (Android and Apple, i05) which will be made available to staff and their families.
•Wages, The new forestry minimum wages gazetted by the Minister of Labour were implemented
at the beginning of April. In the pulp and paper sector, agreement was reached on an 8% increase
on basic wages and 9.5% on shift allowances. In the sawmilling sector, there was five-day strike
action before reaching an agreement. However, our Lomati Sawmill did not participate in the strike.
Sustainability Report 2014
Communities
Our management
approach
Our engagement
Having a mutually respectful relationship with the communities in which our business units are situated
is critical to our success. We also try to motivate and encourage communities situated close to our
operations to share our commitment of treading more lightly on the planet.
In terms of social projects, we engage with communities on a case-by-case basis and encourage projects
which facilitate partnerships and collaboration between communities, government and the private sector.
Environmental issues: We have environmental liaison committees at most of the mills and forestry operations.
These committees include members from various regulatory authorities, residents’ associations,
conservancies, municipal representatives and NGOs. Members of the public and other parties participate
in the environmental impact assessments (EIAs) conducted before the start of any major project.
Social issues: Engagement takes place on a regular basis with the communities close to our operations,
in respect of their needs and issues. In 2014 we conducted a survey in our communities in KwaZula-Natal
see page 38 for further details.
Key issues discussed:
• Water usage and quantity, effluent quality and air emissions
Key issues
•
Employment and business opportunities
•
Protection of our plantations from fire
•Utilisation of non-timber products such as firewood and grazing.
Customers
Our management
approach
We adopt a partnership approach, whereby we offer customers innovative products and high levels
of service that enable them to meet the needs of a rapidly changing world.
Meeting the need of environmentally-conscious customers throughout the world with dissolving
wood pulp, paper and paper-based solutions that add value to everyday life, derived from a renewable,
earth-kind resource.
We follow an approach of regular engagement with customers by senior and executive management in
support of the ongoing engagement by the relevant sales and marketing teams. We communicated
extensively with our customers during the current year, keeping them abreast of the changes initiated
during the year.
Our engagement
Paper Profiles and information sheets give details regarding the composition of our papers, as well as
key environmental parameters relating to our pulp and paper production processes and information on
environmental management systems and woodfibre sourcing policies.
In 2012, we published a brochure entitled ‘Paper. Here today. Here tomorrow’, which sets out the
advantages of Sappi paper and dispels some of the myths around paper. There is also a series of
technical brochures available on our website (www.sappi.com) regarding our products and processes.
An informal customer survey indicated that the key issues for our customers are:
• Water usage in paper production
Key issues
•
Recycled content in our products
•
Investments in our communities
•
Certification in respect of our fibre and whether it comes from sustainably managed forests
•
Our carbon footprint and the carbon footprint of the paper used by our customers.
13
14
Sustainability Report 2014
Leadership messages and reviews
Government, civil society, industry and regulatory bodies
Our management
approach
We engage with government, civil society, industry and regulatory bodies to: Provide input into issues and
regulations that affect the industry and society; Build understanding of our operations and our contribution
to society; Explain our management processes and our actions to minimise any impacts we have.
Our engagement
Consultations take place on an ongoing basis with these bodies in the regions where we operate.
Key issues
•
Carbon tax
•
Environmental legislation and compliance
•
Energy efficiency
•
Support for local employment and BBBEE
•
Water
Investors
Our management
approach
Our aim is to provide investors with transparent, timely, accurate, relevant communication that facilitates
informed decisions.
As a public company, our shareholders can raise issues at the quarterly results presentations and the
AGM. We also publicly display our Integrated Report on our website.
Our engagement
Key issues
Our investor relations (IR) team engages with shareholders on an ongoing basis. This team has direct
access to the executive directors and any issues shareholders raise that would be relevant for the board
are channelled through the IR team. Our chairperson also engages with shareholders on relevant issues.
We also do ad hoc mill visits and road-shows, and issue announcements through Stock Exchange News
Services (SENS), in the press and on our website (www.sappi.com).
•
Return on investment
•
Management of risks and opportunities, including reputational risk
•
Sustainability, specifically raw materials sourcing, labour, emissions, water and carbon footprint.
Suppliers and contractors
Our management
approach
Our engagement
Understanding what is required to establish a mutually beneficial relationship. We also require our
suppliers and contractors to uphold ethical, social, health and safety and environmental standards
consistent with our own.
The procurement executives from each region co-ordinate at global level to improve relations with
suppliers and contractors and provide benefits to all parties through better understanding of the
requirements of the Sappi group.
We work with communities to help them establish and manage timber farms. In terms of Project Grow,
our enterprise development initiative, we provide interest-free loans and guaranteed markets.
Key issues
•
Security of fibre supply
•
Human rights
•
Responsible sourcing
Sustainability Report 2014
Our sustainability governance
structure
Accolades in 2014
•
Rather than having a separate sustainability department,
Professional Management Review (PMR) awards in
Mpumalanga province:
we focus on integrating sustainability into our everyday
- Ngodwana Mill – top producer
business processes. We achieve this by allocating
- Sappi Forests – top forestry company
- Sappi SA – environmental conservation.
responsibilities, reviewing progress, setting targets,
involving stakeholders, driving communication around
the issues and incorporating the principles of sustainable
•
Two Sappi-sponsored mountain biking trails traversing
development into our core business model. In addition to
our land have secured the number one and two
our policies, we also have an integrated sustainability
spots on Bicycling magazine’s ‘Top 100’ list of
governance model in place which helps to integrate
best loved mountain biking trails in South Africa:
sustainability into our business.
The Sappi Karkloof trail in KwaZulu-Natal was
At the highest level, sustainability is overseen by the Social,
Ethics, Transformation and Sustainability (SETS) Committee.
This is a statutory Sappi Limited board committee which
has an independent role and accountability to the board.
Further detail is available in our Integrated Report.
voted by readers as SA’s top mountain biking route,
while the Mankele trail in Mpumalanga came second,
ahead of other trails counting among the top 20 in
the Western Cape and Gauteng.
•
At the LRMG FutureShip 2030 conference held
shortly after year-end, Sappi received the award
The Global Sustainable Development Council (GSDC)
for the best learning programme for the Sappi
reports to the SETS Committee and oversees the work of
Earthkind Agent game (see page 12 of this report)
the Regional Sustainability Councils (RSCs).
in the category ‘Environmental Change’.
There are RSCs in Europe, North America and South Africa.
Each RSC focuses on key material issues relevant to their
specific region and on incorporating sustainability into
everyday business processes.
In South Africa, this is achieved by incorporating milestone
setting on targets into the budgeting process and by
reporting back on progress against targets on a quarterly
basis to the South African Executive Committee.
Sappi Limited board
Social, Ethics, Transformation and Sustainability Committee (SETS)
Endorse Sustainability Charter
Group Sustainable Development Council (GSDC)
Ensure SETS requirements are incorporated into regions
Sappi Southern Africa Executive Committee
Regional Sustainability Councils
Strategy development and implementation
Employees
Target setting
Spread our sustainability story
Budgeting
Report back on targets and initiatives
Data collection and verification
15
16
Sustainability Report 2014
Our key issues - Prosperity
At a glance
ialised cellulose R3 billion
•Officially opened the new spec
fibreline at Ngodwana Mill
st Products Company
•Finalised the sale of Usutu Fore
in Swaziland
weight semi-chemical fluting
•Launched Ultraflute, a new light
rporates bagasse
inco
h
whic
n,
and Typek Triple Gree
)
fibre
te
was
cane
ar
(sug
plantations are 100%
•All Sappi’s owned and leased
FSC™- certified
y managed from seedling to
•Our fibre sources are intensivel
maximise yield and mitigate
and
ly
supp
re
plantation to ensu
ther, pests and pathogens
environmental risks such as wea
primarily through the
• Pest problems are addressed
l control
gica
biolo
deployment of
In FY2014, this paid off, with the expanded specialised
cellulose (also known as dissolving wood pulp or DWP)
business and the restructured paper business in South Africa
consistently delivering enhanced margins.
Aligning with our strategy
•
Achieving cost advantages
In the last two years we have taken the following actions
to achieve cost advantages:
- Merged the kraft and fine paper businesses to reduce
overhead costs
- Restructured support services (human resources,
procurement, finance, communications and IT),
to reduce duplication, increase efficiencies and
reduce costs to the business
- Tested the possibility of making our current products
on different machines to reduce cost and improve
“We are a people at work. We work to create plenty.
Our work brings us ever closer to our dreams.
market service and profitability, and
Trade Administration Commission (ITAC) of South Africa
Work grounds our dreams even the more fantastic they are.
against cheap imported office and packaging papers
The reality of work connects us to our dreams.”
to protect local employment and all those businesses
National Development Plan 2030
Material issue: Profitability
that are dependent on our paper mills.
•
Optimise and rationalise declining businesses
- Rationalised the paper and packaging paper portfolios
and exited non-profitable grades.
Materiality focus
Profitability (Prosperity) is essential for the viability of any
- Submitted anti-dumping applications to the International
- In line with our strategy of moving away from declining
business. Profits benefit the economy as a whole, directly
market segments, we are now concentrating on high
adding value to governments in the form of taxation; to
growth segments, and focusing less on graphic paper
employees as salaries and training, to suppliers as payments
and more on packaging.
for goods and services. Indirectly, profitable businesses
- In June 2014, we officially opened the new R3 billion
establish the foundation for other businesses to grow and
specialised cellulose fibreline at Ngodwana Mill in
flourish. In South Africa, the international over capacity in
Mpumalanga province. Project GoCell, as the project
the graphics, specialities and office paper markets has
was known, converted a paper fibre line at the mill to
impacted negatively on paper companies. This has been
produce 210,000 tons per annum (tpa) a year of
exacerbated by an influx of imported products and weaker
DWP, in addition to existing newsprint and linerboard
demand for certain papers.
(packaging paper) production. As a beneficiated
woodfibre, DWP is a sought-after natural, renewable
fibre with a wide range of uses in the textile, consumer
Our strategic approach to Prosperity
Our view is that the ability to create value for our shareholders
is the foundation of our commitment to sustainable development.
goods, foodstuff and pharmaceutical industries.
The expansion has helped to increase Sappi’s total
global production of DWP to 1.3 million tpa, entrenching
In the light of declining demand for graphic papers, particularly
our position as the global leader in this market. DWP is
in developed markets, the Sappi group’s key challenge in
also produced at Saiccor Mill in KwaZulu-Natal
recent years has been to return our operations to levels of
(800,000tpa) and Cloquet Mill in Minnesota in the
profitability sufficient to generate acceptable shareholder
United States (330,000tpa).
returns on a sustainable basis. To achieve this, we embarked
on a thorough review of all our business processes, product
•
Grow through moderate investments
mix and cost structures and implemented wide-ranging actions.
– Covered under ‘Going forward’ on page 17.
Sustainability Report 2014
•
Strengthening our balance sheet
In line with the Sappi group strategy, over the next two years,
- In the year under review we completed our sale of
as a group, our focus is on having a stronger balance
Usutu Forest Products Company to local Swaziland
sheet so that we can then accelerate our growth in
company Montigny Investments for R1 billion which
adjacent businesses:
was used for general corporate purposes and to
•
Achieve cost advantages
- We will work to lower fixed and variable costs, increase
reduce Sappi’s net debt, and
cost efficiencies and invest for cost advantages.
- We are currently in the process of disposing of
•
Optimise and rationalise declining businesses
30,000 hectares of softwood (pine) plantations in
- Recognising the decreasing demand for graphic
Mpumalanga province. This is in line with our
increased focus on DWP, which uses hardwoods
paper, we will manage our capacity to strengthen our
(eucalyptus) rather than softwoods.
leadership position in these markets, realising their
strategic importance to the group and maximising
•
Looking to adjacent business
- We are investigating sustainable bio-energy opportunities
which will not only enhance energy efficiency,
their significant cash flow generation.
•
Moderate investments in growth opportunities We will make smaller investments in existing areas with
but also revenue streams. These investigations are
strong potential growth, including pulp, speciality
nearing completion and we will report back in our
2015 SSA Sustainability Report. We are also increasingly
focusing on the valorisation of waste (See page 46 in
grades and packaging papers. Our plans include:
Enstra Mill
the Planet section of this report).
Our strategy going forward
- Increasing the volume of packaging papers made at
- Increasing our use of recycled paper in line with the above
- Exiting coated paper production at Stanger Mill and
manufacturing uncoated grades at this mill
Our goal in 2015, is to actively transform Sappi into a
growing and profitable diversified woodfibre group focused
pulp capacity at Tugela Mill and unbleached softwood
on specialised cellulose, cash generative and profitable
capacity at Ngodwana Mill, and
paper businesses and other high margin industrial products
which will provide value to our customers and wealth to our
- Expanding neutral sulphite semi-chemical (NSSC)
- Developing lightweight capability.
people and shareholders.
No radical change in direction in the next two years while preparing for renewed growth
Achieve
cost
advantages
•Continuously improving
operational performance
•
Optimising energy usage in mills
•Maximising global
procurement efficiencies
Grow
through
moderate
investments
Rationalise
declining
businesses
•Continuously balance graphic
paper supply and demand
in all regions
•
•Convert paper machines
where possible to higher
margin paper business
•
Generate cash to
strengthen balance sheet
Growing paper packaging grades
•Growing specialsed cellulose
product portfolio
Extracting value from waste
Accelerate growth in adjacent
businesses from a strong base
•
Restructuring debt
•
Selling non-core assets
•
Optimising working capital
•Evaluating opportunities in specialised cellulose,
packaging and complementary industrial products
17
18
Sustainability Report 2014
Our key issues - Prosperity
Meeting evolving market needs with
new products
•Ultraflute
About anticipated growth in the packaging
market
The middle-class in Asia is set to boom to 1.75 billion by
– Rising transport costs and issues related to carbon
footprint have driven a trend towards lightweight
2020 and by 2030 is predicted to host almost two-thirds of
packaging. To meet this trend, in 2014 we launched
the global middle-class and account for over 40%
Ultraflute, a new lightweight semi-chemical fluting.
of global middle-class consumption. As a result of the
The high percentage of virgin fibre enhances the
rising affluence, changing lifestyles and growing consumption,
product’s strength properties, resulting in stronger
this growing middle-class will drive a strong demand for
boxes and improved stacking strength.
packaging with an emphasis on increased convenience
These attributes, together with high humidity
and functionality. Better package integrity and higher food
performance, enhance durability throughout the
safety standards are some of the key components in food,
supply chain, particularly for products sent to
beverage and home and personal care packaging being
market via the cold chain.
sought by consumers.
– In terms of convertability – influenced by paper
Source: http://www.transparencymarketresearch.com/paper-packaging-material.html
properties and machine running speed – Ultraflute
offers improved flexibility, as well as enhanced
tensile, stretch and tear properties which allow for
increased corrugator speeds and the optimum
use of raw materials.
– In addition to these attributes, Ultraflute is
Sappi’s Technology Centre in Pretoria, based at the
biodegradeable and recyclable, making it a
Innovation Hub, is one of three Sappi Technology Centres
responsible choice for agricultural and industrial
in South Africa, all of which play a key role in enhancing our
packaging requirements.
competitive advantage. The other two are focused on DWP
•Typek
Enhancing our competitive advantage
– We built on the popularity of the familiar Typek brand
to launch a new addition to the range – an A7 size,
ideal for desk use and an alternative to the plastic
memo desk cubes currently available on shop shelves.
The perforated mini box carries the Earthkind mark
and contains 750 sheets of A7 paper (80g/m2).
We have also launched Typek Triple Green made at
the Stanger Mill with bagasse (post agricultural
sugar cane waste) fibre.
This icon, a heart symbolising humanity, placed inside an orb shape depicting
the earth (people and nature), captures the essence of Sappi’s approach to
sustainability and corporate citizenship.
developments and innovations and on tree breeding and
propagation (See page 24 of the Prosperity section for further
information on the latter). All the pulping and bleaching
work for the global Sappi operations is carried out at the
Pretoria Technology Centre, as well as the regional research
and development for our paper, packaging, chemistry and
environmental needs. The Technology Centre is accredited
by the South African National Accreditation System (SANAS)
for specific chemical and physical test methods, in accordance
with the recognised ISO/IEC 17025 International Standard.
Sustainability Report 2014
Maintaining our confidence in the global DWP market
Despite the prevailing over-supply in the DWP market, our confidence in this market segment and its ongoing growth is
high, based on the following:
•
Global GDP growth, global population growth and increasing affluence particularly in Asia
According to a report by the OECD Development Centre:1
- The global middle-class population is set to boom to 3.2 billion people by 2020 and to 4.9 billion by 2030, with most
of the growth coming from Asia.
- Global middle-class spend is expected to grow to US$35 trillion/year by 2020 and to US$56 trillion each year by
2030 with Asian spend at US$15 trillion and US$33 trillion each year of this by 2020 and 2030 respectively.
- These trends are important for Sappi because the bulk of our DWP is sold into Asian markets.
- Increasing affluence and population levels will accelerate the need for more comfortable clothing.
•
Breathability properties
- The bulk of Sappi’s DWP is sold into the viscose staple fibre (VSF) segment. VSF is a cellulosic based fibre which
makes it breathable and comfortable to wear as opposed to petroleum based fibres which are less comfortable.
•
Substitution of competing fibres
- Derived from woodfibre grown in sustainably managed forests, VSF has a long term sustainable future when
compared with fibres produced from finite resources such as fossil fuels.
- VSF is also a substitute for cotton in many applications, with cotton being highly dependent on the availability of
arable land and also being far more susceptible to capricious weather conditions. In the future, a decline in arable
land is forecast, accompanied by a simultaneous rise in the global population. This in turn will lead to increasing
demand for available land to be used to grow competing agricultural and food crops rather than cotton.
Conversely, plantation trees can be planted in less ideal locations, which do not compete with other food-planting or
building-development locations.
•
Environmental considerations
- The sustainably managed plantations and forests from which we source the woodfibre used for our DWP depend
solely on rainwater – unlike many other crops. For example, 73% of the global cotton harvest comes from irrigated land.
- In addition, we use minimal pesticides and insecticides. Any such usage is strictly controlled in terms of forest
certification systems. This cannot always be said of other crops.
- The yield for each hectare of woodfibre is two to three times higher than that of cotton.
Kharas, H.: The emerging middle class in developing countries, working paper no 285, January 2010, available at: http://www.oecd.org/dev/44457738.pdf
1
Accurately measuring residual pentose sugars in DWP
During the production of DWP, lignin and hemicellulose are selectively removed to ensure a high purity end-product.
Viscose manufacturers who use Sappi’s DWP, stipulate that the concentration of pentose sugars five-carbon sugar
contaminants should be reduced to below 3,5% of the total pulp in order to eliminate dark specks in the pulp and
prevent reduced strength quality. Against this backdrop, it’s important that this parameter is accurately measured
before the pulp leaves the mill.
The Technology Centre in Pretoria developed an accredited analytical method to determine the pentose content in pulp,
using high-performance liquid chromatography (HPLC) analysis, some years ago. The laboratories at the mills are
however, not equipped with HPLC technology, so the challenge was, to establish a quick, reliable, alternative method
for routine analysis of pentoses. Several test methods were evaluated and the results were compared to those produced
by our accredited HPLC analytical method. Following this investigation, we have now included additional steps to
improve the test method – and the quality of DWP.
19
20
Sustainability Report 2014
Our key issues - Prosperity
Material issue: Fibre supply
Materiality focus
Maintaining a steady and sufficient supply of high quality
woodfibre is integral to the viability of our business and is
achieved through the internationally recognised concept of
sustainable forest management (SFM). This aims to achieve
a balance between all the different ways people use natural
and man-made forests (plantations) while maintaining
unique values such as biodiversity, clean air and water,
habitat and cultural heritage. It is the key to managing
forests for the long term.
standard for sustainable forest management were incorporated
into the EMS. Our plantations are regularly audited by the
FSC™. The EMS is backed up by an effective corrective
action reporting (CAR) system, a comprehensive internal
audit system and an effective awareness-training programme.
The CAR system provides information on non-conformance
and is a tool to record and manage gaps, thereby growing
and improving the system. Input into the review process
includes results from audits (internal and external), progress
with objectives and targets, trends from corrective action
reports, legal updates from environmental lawyers, and
monitoring reports.
Forest certification systems such as the Forest Stewardship
Council™ (FSC™) have specific criteria. Broad examples of
these criteria include:
• Conservation of biological diversity
Internal audit performance is scored and is used to promote
a competitive spirit, with winning plantations being awarded
trophies.
•Maintenance of productive capacity of forest
ecosystems and their health and vitality
Highlighting our commitment to sustainable forest
management, this year we have established a regional
target regarding sustainable cut. This refers to the practice
of harvesting timber where the volume of wood removed
from a plantation each year must at least be equalled by
regeneration through replanting.
•Conservation and maintenance of soil and
water resources
•
Maintenance of forest contribution to global carbon cycles
•Maintenance and enhancement of long term multiple
socio-economic benefits to meet needs of societies.
Through the inspection of forest management activities
and the tracking of timber, pulp and other forest products,
forest certification verifies that these products originate
from forests managed according to a strict set of
environmental, social, and economic standards.
This is important at a time when deforestation of the world’s
tropical and endangered forests is still taking place.
It’s estimated that this deforestation is responsible for
17-20% of the world’s greenhouse gas emissions.
In South Africa, it’s estimated that there are only 530,000
hectares of natural indigenous forests in the country. We do
not harvest trees from indigenous forests, but source woodfibre
from sustainably managed commercial plantations.
Sappi’s strategic approach to sustainable
forest management
Sappi has had an environmental management system (EMS)
in place since 1995. This has ensured:
•The implementation of sound environmental practices
throughout the division in a structured, systematic manner
•
Compliance with all applicable legislation, and
•Credibility and recognition from interested and affected
parties though external audits and certification.
All Sappi’s owned, managed and leased plantations are 100%
FSC™-certified. The 10 principles and criteria of the FSC™
Our planting mix
Approximately 46% of our owned, leased and managed
plantations are located in KwaZulu-Natal, with 54% in
Mpumalanga. Currently, we have 357,000 hectares planted
to hardwood and softwood, with a further 138,000 hectares
unplanted and managed for biodiversity conservation.
Recovered fibre
It’s estimated that South Africa lost an estimated
R17 billion worth of resources through the disposal
of waste to landfill in 2012. According to the Paper
Recycling Association of South Africa (Prasa), 62.1%
of recoverable paper was collected in 2013. Globally,
recovered paper is a valuable commodity and a significant
portion of paper recovered in South Africa is exported.
Against this backdrop, and given our plans to extend
our range of grades incorporating recovered paper
from Enstra Mill, the availability of recovered paper is
an important issue for Sappi. Even though we have
exceeded our target in terms of recovered fibre (see
page 10 of this report), we could be facing shortages
in the short term.
We are currently assessing models in industry and in
the private sector to ensure security of supply and will
report in our 2015 Sustainability Report.
Sustainability Report 2014
Woodfibre: Overview
Sappi’s clonal programme began in 1992 and since
Given that woodfibre is one of our key inputs, ensuring strong
1998 Sappi has been commercially propagating E grandis
growth from healthy trees is integral to our sustainability.
hybrid clones using traditional vegetative techniques,
specifically through the use of rooted cuttings. Since then
Sappi has a well-developed, mature tree-breeding programme.
one of the major hurdles to clonal deployment has been
This programme comprises the screening, selection and
poor production efficiency driven by poor rooting percentages
deployment of the best genetic material aimed at:
of the cuttings. Initially this was at 50% but following a
•
prolonged drought in the region, dropped to below 30%
Increasing yields
•Selecting fibre that meets the requirements of our mill
processes and products and
•
Reducing the risks of pests, pathogen and climate change.
Increasing yields
The process of increasing yields begins in our seed
which prompted research into a new means of Eucalyptus
cutting production.
The adopted protocol was originally developed in Brazil
and while essentially the same in principle to the traditional
cutting production system, uses mini hedges in a contained
orchards and extends through to our laboratories.
system (see figure below). The major differences between
All seeds and cuttings come from Sappi’s own seed
mini-cutting protocol are the size of the hedges and their
orchards where the parent trees have been specially
location as well as the type and size of cutting that is
selected for their growth qualities and desirable timber
harvested for rooting.
characteristics. Seedlings are grown in Sappi’s own
nurseries in the provinces of Mpumalanga and
KwaZulu-Natal.
All seedlings leaving the nurseries are assessed in terms
of the Sappi Plant Quality Index (PQI). Developed in-house,
it assesses the quality of seedlings and cuttings,
the traditional macro-cutting production system and the
Thousands of seedlings supplied from
nurseries 2013/2014
Destination
Own
Projects
Outsiders
Total
Hardwood Softwood
18,941
7,673
164
26,778
11,145
130
12
11,287
Total
30,086
7,803
176
38,065
thus ensuring that they meet certain physical and
physiological specifications and that acceptable survival
and growth is achieved.
The Sappi Forest Research department is based at the
Shaw Research Centre (SRC) in Howick, with satellite
offices at KwaMbonambi and Ngodwana. There are three
active research programmes:
•Tree-breeding
Macro-hedge
Coppice shoot
Macro-cutting
Mini-hedge
Mini-cutting
Rooted cutting
•Propagation
•
Seed orchards.
This research effort is supported by a total of 624 active
field trials and 140 seed orchards.
Clonal deployment represents the ultimate means of
capturing the genetic gain of Eucalyptus grandis hybrids,
recognised for their fast-growth, disease tolerance and volume
production compared to pure E grandis. In addition, clones
produce a uniform crop, well-suited to high productivity sites.
21
22
Sustainability Report 2014
Our key issues - Prosperity
of construction to enable a total production of 17 million
Reducing risk through improved pest,
pathogen and climate change adaptation
eucalypt and pine hybrid cuttings using this technology.
The movement of pests and diseases around the world
The impact of this technology on the productivity of the
is accelerating due to increasing global trade. This is
nursery has been significant and has also enabled
exacerbated by climate change, which leads to the
commercialisation of E grandis x E nitens hybrid clones
evolution of more virulent pathogens and the increasing
and even that of E dunni. Neither of these taxa could have
potential for host jumps. Against this backdrop, pests and
been economically commercialised using the traditional
pathogens are a continuous threat to the sustainability
approach (clone banks), due to inadequate rooting.
of our plantations. Our response to pests and pathogens
The Clan Nursery is currently undergoing the second phase
follows an integrated pest/pathogen management
Rooting (%)
76.2
(IPM) principle, as set out in the table below.
80
Pest/Pathogen
70
53.7
60
50
40
30
Genetic resistance
Biological control
Mating disruption
Chemical control
Integrated
pest/pathogen
management (IPM)
Remote sensing
Risk modelling
Monitoring
20
10
0
Macro
Mini
Rooting efficiency of cuttings from both mini-and macro-hedges, based on
trial data over a period of three years. Mini-hedges result in about 20%
increase in rooting at the Sappi Research Centre.
Host
Environment
Avoidance (site species matching) Silviculture prescriptions
(planting windows) Rapid deployment of resistant genotypes
Pest problems are addressed primarily through tree-breeding
and deployment. Chemical control is only considered
Selecting fibre that meets the requirements
of our mill processes and products
One of the key objectives of Sappi’s tree-breeding programme
is to improve not only the quantity but also the quality
of the fibre for our mills. All new material identified for
deployment into our forests is selected for wood and
pulping properties. These traits include density and pulp yield,
as well as a number of specific chemical traits that will be
of benefit to our DWP mills. Our focus in this regard is to:
•Measure and quantify the variation currently present
within our breeding trials. This involves sampling a large
number of trees, processing and preparing the wood
samples and assessing a variety of relevant traits
•Identify those trees that exhibit outstanding characteristics
and should be selected, and
•Evaluate new methodologies as part of a continual
improvement process. Gains in tree-breeding are driven
largely by being able to assess large numbers of trees,
rapidly and cost effectively. Considerable resources are
invested in testing new procedures and processes that
will increase these efficiencies.
under extreme circumstances where no other alternatives
to controlling a specific pest/pathogen exists, taking into
consideration the impact of these pesticides on the
broader environment and the possible health risks
they might pose.
To mitigate risk we either avoid deploying susceptible
genotypes in locations where the pests/pathogen is prevalent
through site species matching, or we develop silvicultural
prescriptions to minimise the impact of the pests/pathogen
during the seasons when these pests/pathogens are prevalent.
Sappi’s researchers at the Shaw Research Centre have
developed the propagation of mini-hedges and micro-cuttings
which will enable the rapid deployment of pests/pathogen
resistant hybrid or pure species clones in response to
new outbreaks.
Sappi’s remote sensing specialist and GIS department has
developed various bio-climatic risk models in order
to predict the exposure to and spread of specific pests/
pathogen. This enables us to respond more proactively
Sustainability Report 2014
in mitigating the risks associated with new pests/pathogens
which are introduced into the country. The risk models also
allow us to focus more specifically on the monitoring and
locating of pests and diseases in areas where they are
more likely to occur.
Collaborating to counter pests and pathogens
Sappi is a founding member of the Tree Protection Co-operative
Programme (TPCP) based in the Forestry and Bio-technical
Institute (FABI: http://www.fabinet.up.ac.za) at the University
of Pretoria. This programme is recognised internationally as
the single strongest programme dealing with pest and
pathogen problems in plantation forestry in the world.
The TPCP has a technologically advanced and well-equipped
facility for the testing and rearing of bio-control agents against
forestry pests. Sappi is supporting the current expansion of
this facility. Through the TPCP we are also members of the
internationally collaborative programme BiCEP (Biological
Control of Eucalyptus Pests) (http://bicep.net.au) at the
Australian Centre for Industrial and Agricultural Research
(ACIAR).
We are addressing eucalypt pathogen issues through our
membership of the Eucalyptus Genome Network (EUCAGEN)
based at the University of Pretoria. In collaboration with the
US Department of Energy Joint Genome Institute, EUCAGEN
has decoded the Eucalyptus grandis genome. The information
from the Eucalyptus genome sequence and resources from
EUCAGEN will allow the next significant steps to be taken
with the development of DNA markers for wood properties
and pathogen resistance which will allow the breeding of more
pathogen resistant trees within the next three to four years.
Forestry sector receives research and
development funding
Forestry South Africa was successfully awarded a Sector
Innovation Fund from the Department of Science and
Technology to boost research and development to address
key challenges facing the forestry industry. The R25 million
grant over three years is the first substantial public funding
to be directed to the commercial forestry sector in 19 years.
Some of the identified priorities for research include:
Development and application of biotechnology in tree
improvement and tree protection; Application of spatial
technologies in forestry including remote sensing;
Forest engineering; Technologies and capacity to
predict risks, monitor and manage the continuously
increasing number of threats to the forest industry.
The research proposals should further aim to increase
private sector investment; increase general level of R&D
in the South African Forestry sector; develop human capital
and enhance transformation through the development of
opportunities for emerging new role players.
23
24
Sustainability Report 2014
Our key issues - Prosperity
Disease
Impact
Hardwood diseases
Puccinia psidii (Myrtle rust)
Originally from South America, this pathogen, which can affect
various Eucalyptus species, has now spread around the world.
It was first detected on the KwaZulu-Natal south coast of
South Africa in 2013.
Hardwood pests
Coryphodema tristis (Cossid moth)
Gonipterus scutellatus (Eucalyptus snout beetle)
Thaumastocoris peregrinus (Bronze bug)
Leptocybe invasa (Eucalyptus chalcid)
Indigenous to South Africa, in 2004, the Cossid Moth was found to
be extensively damaging mature E nitens in Mpumalanga province.
Larvae bore through the bark into the wood constructing a set of
extensive galleries. This causes loss of wood volume and quality as
well as eventual tree death.
Was introduced into South Africa in 1916. Adults feed on the new
flush of the growing tips of various Eucalyptus species.
The bug attacks mature trees. Affected leaves become discoloured
and drop off prematurely; this has a negative impact on the
photosynthetic potential of the tree and its resultant growth.
Fortunately infestations are sporadic and tend to peak in late
Autumn and Winter when the effects are most visible.
Infestations of this insect cause severe galling of the leaves and
stems, which impacts on the growth and form, of susceptible
Eucalyptus species.
Glycaspis brimblecombei (Red gum lerp psyllid)
Glycaspis adults and nymphs are sap suckers which attack the
newly expanded foliage of eucalypts.
Ophelimus maskelli (Eucalyptus gall wasp)
While the presence of Ophelimus maskelli has been confirmed in
South Africa, samples have also yielded adults of its bio-control
agent Closterocerus chamaeleon.
The insects form red blister like galls on the newly unfolded leaves
of Eucalyptus which ultimately results in premature leaf drop.
Softwood diseases
Fusarium circinatum (Pitch Canker Fungus (PCF)
This pathogen results in high levels of mortality of Pinus patula
seedlings in forestry nurseries and has also caused poor
post-planting survival of newly established compartments.
Sirex noctilio (European wood wasp)
Infestation inhibits the natural immune responses of the tree
allowing fungus to develop, eventually resulting in the death of
the tree.
Sustainability Report 2014
Sappi’s mitigation measures
Industry response
Collaborative screening tests conducted by TPCP and ACIAR in
Australia prior to the arrival of the pathogen in South Africa
indicated that Sappi’s E grandis x E urophylla (GU) hybrids
genotypes are resistant. Resistance to the pathogen in E. grandis is
variable depending on provenance. Following the results of a
screening trial, we have concluded that the strain of Puccinia which
was found is most likely not a pathogen of Eucalyptus.
Collaboration with TPCP and ICFR resulted in a predictive risk model
for the possible spread and impact of Puccinia has been developed.
We are now mitigating the risk by planting E nitens on areas where
the mean annual temperature is below 15 degrees Celsius and
harvest at below 12 years. The potential impact on seed orchard
trees is high, as mature trees offer better seed production.
Scientists at the TPCP have managed to identify the individual
components of the female sex pheromone of C tristis.
The pheromone has been artificially reconstituted and tests are
underway which will enable us to control infestations of Cossid
moth through trapping and mating disruption.
Research is underway to understand the mechanisms which lead
to the seasonal failure of Anaphes nitens to control the pest.
Investigations are also underway to source additional biocontrol
agents through BiCEP.
The introduction of bio-control in the form an egg parasitoid
Anaphes nitens and the replacement of susceptible host trees
with E grandis reduced the impact of this pest to negligible levels.
On Sappi plantations, replacement of E grandis with more drought
tolerant and better pulp yielding E dunnii in the warm temperate
zones and the introduction of disease resistant better yielding
E grandis x E urophylla hybrids in the sub-tropical zones has led
to localised seasonal outbreaks of Gonipterus.
Monitoring is on-going and to date no known infection of Eucalyptus
has occurred in South Africa.
Industrywide co-operation with the TPCP has resulted in the
releases of the biocontrol agent Clerucoides noackii since
September 2013. Releases have been conducted in all the summer
rainfall zones and will continue indefinitely.
Species affected are mainly E grandis and its hybrids with
camaldulensis and E nitens. Sappi’s response has been conduct
extensive screening of its pure species and clonal hybrids to
determine the most Leptocybe invasa tolerant strains.
Expectations are that we will not be severely impacted by the
appearance of this pest unless it manages to spread to commercial
forest areas without its bio-control agent in tow.
During the last 20 years, our research centre has been working on
a programme to develop and commercialise the Pinus patula x
Pinus tecunumanii hybrids, as a replacement for Pinus patula.
Pinus tecunumanii, has been shown to be tolerant to this disease
and thus a comprehensive hybrid production and testing phase
was implemented.
We are now planting the hybrid commercially and this has meant a
gradual reduction in area planted to Pinus patula.
Efforts to prevent an epidemic from occurring in Pinus patula in
Mpumalanga involved the development of a climatic risk model
and the deployment of a series of trap tree plots for monitoring of
Sirex noctilio populations and introduction of bio-control agents.
Trap tree plots consist of ten herbicide stressed trees and are
deployed in high-risk areas at a rate of one plot per 100ha of pine
older than 12 years during September/October annually.
Industry-wide co-operation with the TPCP has resulted in the release
of the biocontrol agent Selitrichodes neseri at more than 360 sites,
since September 2012. Trapping results indicate that the biocontrol
has become established at over 85% of the sites where it has been
released and that it is spreading naturally from these release sites.
Screening tests are underway to determine the Glycaspis tolerance
of the various genotypes. The TPCP is currently busy with the final
host specifity trials on the bio-control agent Psyllaephagus bliteus.
Once host specificity is proved application for permission to release
the biocontrol agent will be given.
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26
Sustainability Report 2014
Our key issues - Prosperity
Climate change is expected to make some parts of
South Africa hotter and some colder. Our exposure to
climate change related risk in this region is moderated by:
•Maintaining wide genetic variability in our planting material.
This enables us to breed trees for a wide range of
conditions and the rate of change in conditions is
likely to be slow enough for us to respond in the
breeding programme. In other words, we will produce
better trees as conditions change.
•Continually monitoring and reviewing forest best
practices in the light of changing environmental factors,
thereby helping to mitigate any increased threat from
environmental conditions.
•Implementing extensive planting of more drought-tolerant
eucalypt hybrids.
•
Mapping frost (see case study below).
•Climate change could potentially increase the severity
of fires – already an ongoing risk on our plantations.
Fire risks are mitigated via an integrated fire risk
management system comprising a comprehensive
risk assessment, monthly compliance checks for
monitoring, management procedures, standards,
and general back-up information. We also involve
our neighbours and communities in fire prevention.
Mitigating risks by mapping frost
Frost damage in South Africa can be severe in the Highveld of Mpumalanga and certain areas in KwaZulu-Natal,
especially in the valleys and drainage areas. Most frost damage occurs in Winter, following planting, in the form of tip
scorching and/or total scorching depending on the frequency and severity of the frost.
The occurrence of frost risk on Sappi landholdings has been mapped using ground temperature data from satellite
images obtained from the Moderate Resolution Imaging Spectroradiometer (MODIS) satellite. These images,
covering an eight-year period over the Winter months June to August, were used to determine actual minimum
ground temperatures and the frequency of frost occurrence on pixel areas measuring one kilometre by one kilometre.
This data was further downscaled to one hectare (100 metre x 100 metre) blocks by modelling cold air pooling and
flow accumulation in the landscape using a Geographic Information System (GIS).
The application of the map has the following benefits:
• Assistance with site-species matching and prioritisation of planting compartments
•
This in turn, will reduce the frost damage area that has to be replanted annually
•The identification of frost-free areas in the cool temperate silvicultural zone where more productive, but less
frost tolerant genotypes, can be deployed.
Sustainability Report 2014
Our key issues - People
At a glance
ent initiatives
• Made progress in skills developm
• Sappi performance improved:
- LTIFR down from FY2013
- Zero fatalities
and communities:
• CSR spend prioritised education
m
entu
mom
ering
- ECD initiatives gath
erform their peers
outp
to
d
inue
cont
ents
stud
ec
- Prot
ed highly in employee
•Sustainable engagement scor
engagement survey
an Institute of Entrepreneurship
•In association with the South Afric
ing modules to assist larger
train
three
d
(SAIE), we develope
agement of their plantations.
community projects with the man
“South Africa needs an economy that is more inclusive,
more dynamic and in which the fruits of growth are
shared equitably.”
National Development Plan 2030
Material issue: Skills
Materiality focus
From a business perspective, skills development leads
Recognising that a more strategic growth path is needed,
to higher levels of employee engagement, productivity
Sappi has been working hard for many years to promote
and profitability. From an individual point of view,
higher levels of skills.
skills development leads to enhanced employability and
career prospects.
South Africa has an enabling policy and legal framework
to address the challenge of skills development in the country.
South Africa is suffering from a technical skills shortage which
The National Skills Development Act of 1998, the National
is compromising industrialisation and global competitiveness.
Skills Development Levy Act of 1999 as well as the National
At the same time, as reported by Statistics SA, at the
Human Resources Development Strategy of South Africa
beginning of 2014, the unemployment rate was 25.2% of
which forms part of the National Development Plan 2030,
1
the population . Jobs lift people out of poverty, while skills
provide a framework for strengthening the skills of the work
help to drive business growth.
force and the unemployed in South Africa. A Sector-specific
Education and Training Authority (SETA) to manage the skills
In focusing on skills development, cognisance needs to be
development process has been established.
taken of the difference between low, medium and high
levels of skills. A recent McKinsey survey2 points out that
while the shortages of high- and medium-skilled workers
could potentially be significant going forward – with global
shortages of highly skilled workers standing at 13% of the
total workforce by 2020, there is a likely to be a surplus of
low-skilled workers.
http://beta2.statssa.gov.za/publications/P0211/P02111stQuarter2014.pdf
1
http://www.mckinsey.com/insights/employment_and_growth/the_world_at_work
2
27
28
Sustainability Report 2014
Our key issues - People
Sappi’s strategic approach to skills development
Our training programmes are outlined below:
Our skills development strategy is aligned with
•
Graduates in training programme
government’s focus on workplace integrated learning
This is aimed at learners who have completed their
and skills development and aims to develop a pool of the
studies at a university and hold a degree in a relevant
scarce and critical skills needed to enhance our own
engineering discipline – electrical, mechanical, chemical
sustainability and that of our industry.
engineering etc – and who require 24 months workplace
experience as per the Engineering Council of SA (ECSA)
Sappi is a member of the Fibre Processing and Manufacturing
(FP&M) SETA. In addition, we have developed an internal
learning and development strategy. We submit Workplace Skills
and Annual Training Plans to the SETA, thereby confirming
our support for the development of skills in the country
and also meeting compliance requirements in terms of
legislation. This is done on an annual basis and is monitored
by the Sappi National Employment Equity and Learning
Forum, a formalised structure comprising trade unions,
management representatives and other employees elected
to represent the interest of employees from different
occupational categories and levels.
In terms of number of learners per category, we plan ahead
requirements.
•
Diplomates-in-training
This programme meets the needs of learners who
are studying at a university of technology for a
diploma in electrical, mechanical or chemical engineering.
In terms of existing qualification requirements at
universities of technology in South Africa (called
‘technikons’ prior to 2003), learners in specific study
disciplines have to complete a practical work module
in order to obtain a qualification. This is supported by
a log book which confirms that they are competent in
the critical cross-field outcomes required by the
National Qualifications Framework.
over five years to ensure that learners are absorbed into
our business as far as possible. Accordingly, we are able
Universities of technology
to place the majority of learners within Sappi.
A university of technology is characterised by being
research informed rather than research driven where
Integrating theory and experiental learning into the
the focus is on strategic and applied research that
workplace encourages people to develop a greater sense
can be translated into professional practice.
of responsibility, place more reliance on their judgement,
Furthermore, research output is commercialised,
and find greater meaning in their studies. We collaborate
thus providing a source of income for the institution.
with Further Education and Training (FET) colleges,
Learning programmes, in which the emphasis on
universities of technology, universities, secondary schools,
technological capability is as important as cognitive skills,
the FP&M SETA and the Paper Manufacturers’ Association
are developed around graduate profiles as defined by
of South Africa (PAMSA) to develop in-house training
industry and the professions.
programmes.
Learners are generally sourced from the communities we serve,
mainly through PROTEC (see page 32 of this report for
further details) to ensure we have a talent pipeline to
reduce external recruitment and develop our own talent.
This gives us a ‘line of sight’ in developing our talent pool,
particularly in critical and scarce skills.
The learners are coached and mentored by qualified
•
Apprentice programmes
These are occupationally directed programmes,
directed by a SETA, presented by an accredited
training provider which, when completed,
allow qualification as artisan in various trades
such as fitters and electricians.
•
Recognition of prior learning programmes
employees to ensure that their workplace exposure is
These programmes allow learners to determine their
related to their field of study, to monitor their progress and
knowledge and skills against a qualification through
to enhance their permanent employment opportunities post
practical experience.
the workplace experience either at Sappi or in the industry.
Sustainability Report 2014
•
Learnership programmes
These involve a structured learning process for gaining
theoretical knowledge and practical skills in the
workplace leading to an NQF-registered qualification.
The programmes are outcomes based as they allow for
Recognition of Prior Learning (RPL) of employees, who
while they might have many years’ experience in
various trades, do not hold a qualification.
•
Leadership development programmes
These involved the identification of high potential
employees for leadership development: Master of
Business Administration, Management Development
Programme and Executive Development Programme
and the Sappi Leadership Academy. The latter a
12-month in-house programme designed for managers
to develop their leadership behaviours. It comprises
three one-week residential blocks as well as project
work spread over the year.
•
Bursaries
Both Sappi and the FP&M SETA provide funds for tertiary
studies at a university in our critical and scarce skills -
Perseverance pays off
electrical, mechanical and chemical engineering.
While studying for Grades 11 and 12, Sakhile Zincume
worked after school at a funeral service to pay for
school for himself and his younger brother and
assist his mother financially in providing for his other
five siblings. He worked at the funeral home every
day from 16:00 to 23:00, and then studied from
24:00 to 02:00, waking up again at 06:30 to go to school.
Sappi Regional talent pool
Race and gender per category (No of people)
90
80
70
40
60
50
40
9
27
26
21
6
22
5
9
7
1
1
3 31
13
11
12 21
3
Bursary - Tertiary
Learnership (18.2)
Learnership (18.1)
Leadership Development
Graduates in Training
Diplomates in Training
Repairman/Aide Sect 28
African female
Indian male
White female
12
11
10
5 3 11 5 2 4 4
4 6 24
18
33
10 1 8 2 Apprentice Sect 13
African male
Coloured female
White male
30
20
10
0
Coloured male
Indian female
He began studying for the NCV: Process Plant
Operations and Pulp & Papermaking Technology
qualification at the Mandeni Campus of Umfolozi
FET College. Theoretical lessons were conducted at
the college and practical sessions were conducted
at the Sappi Stanger and Tugela Mills as the college
did not have a workshop with the necessary equipment.
Sakhile displayed exceptional leadership skills and
in 2012 was elected as the Student Representative
Council (SRC) president for Mandeni Campus as
well as President of the Umfolozi College SRC.
In July 2013, after completing their Level 4 theoretical
studies, Sakhile and his fellow students were offered
12-month internships at Sappi. In April 2014,
Sakhile was offered permanent employment at the
Sappi Stanger Mill as water/effluent operator in
the water treatment plant.
His message to others is: “Perseverance is the
mother of success, also respect for other people
especially your elders and hard work. You should
tell yourself: ‘I am not what I am but what I want to be’.”
29
30
Sustainability Report 2014
Our key issues - People
Sappi Technology Centre helps to address graduate unemployment
On International Nelson Mandela Day, 18 July 2014, Sappi Southern Africa’s Technology Centre was honoured
by the Department of Labour with an award for its efforts in providing work experience to unemployed graduates.
During the awards ceremony, the Deputy Director of the Public Employment Services, Esther Tloane, on behalf of the
Minister of Labour, recognised 67 private companies for their services to South Africa’s unemployed. The awards
were made in recognition of the 67 years of Nelson Mandela’s public service.
The involvement of private companies in providing graduates with relevant job exposure not only improves
their employability, but also helps to address the problem of youth unemployment. Graduate internship
programmes help open doors to graduates for future employment. Beginning in 2013, internship programmes
at the Sappi Technology Centre include:
•The BSTEP Programme, a collaborative effort by the Department of Science and Technology (DST) and the
Black Science, Technology and Engineering Professionals (BSTEP) to provide engineering students with
an opportunity for experiential learning in industry. The Sappi Technology Centre took on two students in
this programme, both of whom had studied Chemical Engineering (Diploma) at the University of Johannesburg.
•The Technology Top 100 (TT100), another DST-initiative which assists in addressing the gap in terms of
engineering and science skills. Host companies develop expertise in the interns in planning, management,
business acumen and etiquette, self-development and systems management. The Technology Centre took on
two TT100 graduates in 2013, one of whom is working as a fixed-term contractor, while the other graduate has
been permanently employed in our Paper Sciences department. Two more TT100 graduates were taken on in 2014.
•The TSP Internship Programme, governed by the Project Funding Agreement between the DST and the
Technology Innovation Agency. The Tshwane University of Technology has entered into an agreement with Sappi
to place two students for experiential training to fulfil their training requirements.
•The fourth initiative, the Itukise Unemployed Graduates Programme launched by the Department of Trade
and Industry, began in August 2014. Through this programme, government aims to place 1,200 unemployed
graduates in private companies over the next two years. One graduate has been selected to work at the
Technology Centre, and several more will be taken on at Sappi Enstra Mill in Springs.
Sustainability Report 2014
Materiality issue: Education
Materiality focus
As a developing country, South Africa is still struggling to
address the huge backlogs left by 40 years of Apartheid
inequality – particularly in rural areas. One of the biggest
challenges is in the field of education.
Sappi’s strategic approach to corporate
social responsibility (CSR)
Our support is focused on the communities where we have
an impact. We have prioritised education, environment,
health and welfare as well as community engagement projects.
Total CSR spend in FY2014 was R23.2 million, representing
1.63% of net profit after tax.
SA CSR spend by category in 2014
(%)
Despite education accounting for 20% of total state
expenditure, South Africa’s level of education is rated at
0.8
146 out of 148 countries according to the 2013-2014
Global Competitiveness Report published by the World
29.8
Economic Forum.1
The poor level of education is fuelling the skills gap, with a
workforce management company2 recently estimating that
at the beginning of 2014, there were 829,000 vacant jobs
for highly skilled workers across a wide range of occupations
64.1
5.3
in South Africa, most notably in the medical, accounting,
engineering, and IT fields.
In 2012, of 623,897 learners, 461,060 obtained their
National Senior Certificate, while only 165,957 received
university endorsement, with a significantly lower number
Education and literacy
Community support
Environment
Health and welfare
actually enrolling for any form of higher education in 2013.
Levels of skills in mathematics and science are extremely
low. Of those that do enroll in public universities, only 15%
to 20% will actually graduate according to the Department
of Higher Education and Training’s annual statistical report.
This means that South Africa will not be able to fill the skills
shortage gap for a number of years, with serious repercussions
for the country’s economic growth.
The government’s newest strategy for turning education
around is known as ‘Action Plan to 2014: Towards the
Realisation of Schooling 2025’, which aims to improve
learning and the work of teachers. Priority areas in the plan
include improving school infrastructure, strengthening
school management and emphasising early child development
and universal access to Grade R.
http://www3.weforum.org/docs/GCR2013-14/
GCR_CountryHighlights_2013-2014.pdf
Supporting early childhood development
Given the strong link between paper and learning, as a
paper company, Sappi has for many years prioritised
literacy and education in terms of CSR.
This has now expanded to include support of early
childhood development (ECD). Our support is based on a
growing body of international evidence which shows
that language and cognitive development are especially
important during the first six months to three years of life
and that the more stimulating the early environment,
the more a child develops and learns. Significantly,
findings also indicate that early learning experiences
determine health, education and economic participation
for life.
1
http://www.southafrica.info/abroad/skills-140114.htm#.VD6ZefYcRYc
2
Unfortunately, many of South Africa’s young children,
particularly in rural areas where some of our operations
are situated, are not exposed to early learning – which is
why we decided to step in.
In KwaZulu-Natal we have partnered with Training and
Resources in Early Education (TREE), a non-profit organisation
(NPO) to train 25 women across KwaZulu-Natal as ECD
practitioners. TREE is a non-profit organisation that assists
31
32
Sustainability Report 2014
Our key issues - People
adults (mostly women) from disadvantaged communities to
The table below indicates that the positive trend continues
provide young children with access to qualified ECD.
through to tertiary level.
In Mpumalanga, we are working with our long-standing
partner, Penreach, an NPO with 20 years’ experience
in ECD. Penreach provides educational interventions and
solutions in under-resourced schools in rural communities
and is training five ECD practitioners in a four-year module
at two schools close to our operations.
Supporting Protec (the Programme for
Technological Careers)
Protec, which has been operating since 1982, is a national
2013 results: Sappi-sponsored Protec branches
Average
Protec
feeder
Branch/province
Bachelor
school
pass
passes
Umkomaas KwaZulu-Natal
(KZN)
Stanger KZN
Pietermaritzburg KZN
Mandeni KZN
KZN average
Nelspruit Mpumalanga (MPU)
MPU average
83%
40%
78%
94%
66%
33%
10%
21%
32.5%
35%
16.3%
75%
independent non-profit educational service provider in
South Africa that specialises in science, mathematics and
Resource centres near Stanger and Ngodwana Mills
technology education. Its main clients are provincial education
give every member of the surrounding community the
departments, schools, educators and learners.
opportunity of using state-of-the-art information technology,
regardless of personal means. The centres comprise a
Sappi became involved in 1995 and we have invested
digital village with computers, a dedicated study centre
R26 million in the programme over 19 years. We currently
and reference library, as well as televideo and DVD sets.
support five branches close to our mills and forestry operations.
The branch programme offers advanced science, mathamatics,
Supporting communities
technology, IT, World-of-Work and English education as
We support schools close to our forestry communities
well as career development support to Grade 10 to 12
based on requests and needs-analyses. Projects include
learners from disadvantaged communities. The programmes
fresh water supply, ablution facilities, fencing, buildings and
are run in parallel to formal schooling and are delivered
structures and vegetable gardens. Hospices are supported
mainly through Saturday and vacation school activities.
in each community. Our support of public events such as
mountain biking provides direct benefit to local communities
For all Sappi branches, 213 learners wrote Grade 12 exams.
through increased tourism.
All branches performed better than the provincial pass
rates, whether these were for the feeder schools from
which the learners came or peer schools with similar
circumstances to the feeder schools. Based on these
results and feedback from branches that many students’
plans to study further are curtailed by lack of funds, in 2014
we introduced a special financial award available to those
matriculants who had achieved distinctions in mathematics
and physical science during the 2013 examinations. A total
of 27 learners qualified for the awards, with 14 of them
earning distinctions in both mathamatics and science,
bringing our contribution towards furthering their studies
to R410,000.
From 2013, Sappi has contributed R10,000 for each ‘A’ pass
in mathamatics and science achieved by Protec learners,
towards their tertiary education.
Mandela Day
Sustainability Report 2014
Material issue: Safety, health
and wellbeing
Our approach to safety is based on the principles of
Materiality focus
Project Zero is a global initiative that aims to accelerate
Maintaining a culture of safety and focusing on health and
wellbeing is not only the right thing to do, it also has
impacts on the bottom line, both directly and indirectly.
Direct costs include lost productivity, workers’ compensation,
insurance and legal fees. Indirect costs include reduced
worker morale and reputational impact. On the positive side,
Project Zero – zero fatalities and zero injuries.
improved safety performance in areas of concern and
to develop a safety awareness culture in all parts of
our business. The initiative includes integrated health and
safety planning and management; training at all levels;
participative information and control structures and
adherence to international best practice and safety standards.
a safe working environment boosts employee morale, which,
in turn, increases productivity, efficiency and profit margins.
According to the International Labour Organisation,
Our safety performance in 2014
despite systems, policies and global standards for safety,
Sappi Southern Africa ended the year with a lost time injury
still every year, hundreds of thousands of people die in
frequency rate (LTIFR) of 0.38 for all personnel employed
workplace accidents.
compared to 0.43 achieved during FY2013. The accident
injury frequency rate (AIFR) for the year was 4.78 and
the LTISR for the year was 9.57. This indicates that,
Sappi Southern Africa’s view on safety
although the number of injuries was not well contained,
Our view is that safety is both a right and a responsibility
the severity was much less than in FY2013 when the
and that the safety of our contractor employees is as
severity as measured by the Severity Index (II) was 54.93.
important as that of our own employees. We all have the
right to work in conditions where there are procedures and
equipment that help create a working environment where
the overall aim is zero harm. However, we all also have a
responsibility to ourselves, our families and our colleagues
to go home safety at the end of every day.
This responsibility means understanding what is expected
from all our people in all conditions, at all times, that will
ensure their safety. This does not only mean using personal
protective equipment or adhering to safety rules, it also
means being involved in safety management by bringing
unsafe conditions or situations to the attention of
colleagues and line management.
In 2014, we continued with our Behaviour Based Safety (BBS)
revitalisation programme, focusing on the most severe
actual and potential hazards.
Our safety approach comprises four behaviour-based steps:
•A behavioural observation and feedback process observation of employees and the documentation of safe
and unsafe behaviours. Employees are then given positive
feedback on safe behaviours and non-threatening
feedback on unsafe behaviours and provided with
suggestions on correcting unsafe behaviour
•A formal review of observation data - following the
step outlined above, data is analysed to determine
an employee’s or department’s improvement in safe
Safety challenges change constantly, depending on the
particular project, the team working on the project,
behaviours and the data is shared with employees
•Improvement goals - these are established to increase
the place and even the time of day or night the work
the effectiveness of the feedback and the success of
is taking place. While it is not possible to predict future
the behaviour-based safety process, and
safety challenges, it is possible to work together in order to
anticipate and put plans in place to promote safety.
•Reinforcement - improvement and goal attainment are
recognised and reinforced.
33
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Sustainability Report 2014
Our key issues - People
On the contractor side, the good performance of the
LTI is a lost time injury.
previous year was improved upon with an LTIFR of 0.30 for
LTIFR is the lost time injury frequency rate, and is
the year compared to the FY2013 figure of 0.37. This was,
calculated by dividing the product of lost time injuries
however, still above the target of 0.20. There were 40 own
and a groupwide standard for man hours by the unit’s
employee lost time injuries (LTIs) which resulted in an LTIFR
man hours, ie LTIFR = LTI * 200,000/unit’s actual
for own employees for the year of 0.58 against a target of
man hours.
0.60. Both own and contractor employees achieved the
LTISR is the lost time injury severity rate and is calculated
Injury Index (II) target of less than 10.
as LTISR = number of days lost * 200,000 man hours.
II is the Injury Index, a product of the LTIFR and the LTISR
and provides an overall sense of safety within the measured
unit, ie LTIFR * LTISR.
This positive safety trend was reinforced by the fact
that 2014 was the first year of zero fatalities for the
Southern Africa region and the group.
Fatalities
4
3
3
3
2
2
1
0
2010
0
0
2011
2012
Own
1
1
0
2013
0
2014
0
Contractor
Going forward
Our objectives for FY2015 are to:
Global Safety Awareness Day
•
Southern Africa Lost Time Injury Frequency Rate (LTIFR)
and Injury Index (II) 2010 - 2014
0,7
0.65
0.60
0.58
0.54
0,6
0,5
0.46
0,4
0.37
0.36
0.30
0.24
0.20
0,3
0,2
0,1
2010
Own LTIFR
Own II
2011
2012
2013
2014
Contractor LTIFR
Contractor II
0,0
Continue to achieve zero fatal accidents
•Achieve an LTIFR of better than 0.53 for own employees
and better than 0.27 for contractor employees, and
•Achieve an II of less than 7.60 for all categories
of employees.
We plan to achieve this by continuing to engage our
employees and contractors in our safety drives through
mini safety conferences and coaching to entrench a safety
culture into the hearts and minds of all our employees.
We will also be piloting a fatigue management programme
at one of our mills. These activities will be underpinned by
maintaining momentum in terms of the BBS programme
and by addressing unsafe conditions by maintaining all
safety systems in line with the requirements of our
OSHAS 18001 certification.
Sustainability Report 2014
Promoting health and wellbeing
Using the statistics from medical aid schemes, we are able
to establish on an annual basis the health and wellbeing
risks experienced by employees and this helps develop
our annual agenda. We categorise our health and wellbeing
programmes in the following manner: occupational health,
primary health care and employee wellbeing.
•
Occupational health: The major risks we are challenged
with due to our work environment are noise, vapours,
fumes and ergonomic risks. Approximately 52% of our
employees are exposed to noise levels above 82 decibels
for more than eight hours per day. We do repeated
hearing loss measurements and to date have 0.8%
cases of hearing deterioration. Corrective action has
been put in place with the assistance of the risk department
and line managers, to implement an effective hearing
conservation programme. The major focus is to try to
reduce/eliminate noise levels in the work environment.
•
Primary health care: This year we continued to
focus on HIV/AIDS and tuberculosis as primary health
care issues. Please refer to the HIV/AIDS FAQ on
www.sappi.com
•
Employee wellbeing (EWB): Our programme includes
various initiatives and awareness programmes,
eg substance abuse (alcohol and drugs), cancer
awareness days, weight-loss programmes and
awareness programmes related to testing cholesterol,
blood glucose, body mass index, blood pressure,
HIV/AIDS and TB. The programme also includes
basic counselling for referrals to external providers,
financial wellness, trauma counselling, work stress
issues and other health and relationship issues.
The focus is on educating and empowering employees
with the skills to take ownership of their wellbeing to
make better lifestyle choices, and where necessary,
to support them and provide care and treatment.
The total cost of our occupational health and wellbeing
programmes for FY2014 was R20.6m.
Safety in Sappi Forests
According to the Food and Agriculture Organisation (FAO),
forestry is one of the most dangerous occupations globally.
Sappi Forests prides itself in having a comprehensive
Risk Management System (RMS), which is designed
to minimise the negative impacts and maximise the
positive impacts of forestry. All safety is monitored,
contractor and own operations, in terms of our RMS
system on a weekly basis. The RMS comprises:
•A Safety, Health, Environment and Quality (SHEQ)
policy committing the company to implementing
sustainable (ecological, social and economic)
forest management in a manner that ensures the
health and safety of its employees
•A risks register containing Sappi Forests’ risk
exposures and detailed action plans for effectively
managing each risk exposure
•Registers highlighting most environmental and
health and safety statutes relevant to forestry
operations in South Africa. These registers also
link statutory requirements to the relevant RMS
processes that need to be followed in order to
ensure legal compliance by forestry operations
•A set of ‘best practices’ which set out detailed
procedures by which all forestry activities must be
conducted to minimise SHEQ impacts
•A training programme to ensure all Sappi Forests
staff and all contractors conducting forestry-related
activities on Sappi land are fully trained in the SHEQ
aspects of the RMS monitoring programmes and
to measure the success of the system and ensure
conformance to procedures, and
•A programme of ongoing review of the RMS to
ensure that both it and our SHEQ performance,
are continually improving.
The system is fully documented, integrates all
management activities and is designed to improve
performance over time. It is designed to conform to
the international standards including ISO 9001,
ISO 14001, OHSAS 18001 and FSC™.
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Sustainability Report 2014
Our key issues - People
Detecting and managing TB in Sappi
According to Statistics South Africa, tuberculosis (TB) is currently the leading cause of death in South Africa –
and has been since 1997.
We work to reduce the instance and impact of the illness on our workforce through early detection and active follow-up.
Our health assessments include a questionnaire, compiled in accordance with the Department of Health (DoH) guidelines.
If this indicates a possibility of TB, health workers at our on-site clinics administer a rapid TB test and send positive
results to the DoH, which then supplies Sappi clinics with the appropriate medication.
Left alone, many TB patients fail to take all their medication, thereby contributing to the spread of drug-resistant TB.
Sappi complies with the direct observed treatment, short-course (DOTS) control strategy recommended by the
World Health Organisation (WHO) and practised by the DoH. The five key elements of DOTS are:
• Case detection by sputum smear microscopy
•
Standardised treatment regimen directly of six to eight months observed by a buddy for at least the first two months
•
A regular, uninterrupted drug supply
•
A standardised recording and reporting system that allows assessment of treatment results, and
•Government commitment (including political will at all levels, and establishment of a centralised and prioritised
system of TB monitoring, recording and training).
Health workers in our on-site clinics are at greater risk than other employees, and they are made aware of the
mitigation measures set out by the DoH.
Material issue: Employee
engagement
Materiality focus
annual net income of organisations whose employees
lag behind on engagement. (Source: The Impact of Employee
Engagement. Kenexa)
•A study conducted across 39 organisations indicates
Research shows that companies with high levels of
that organisations with highly-engaged employees
sustainable engagement outperform those with low
achieve seven times greater five-year total shareholder
engagement, and even for those with high levels of
return (TSR) than those whose employees are less
traditional engagement. A recent Forbes article highlights
engaged. (Source: The Impact of Employee Engagement. Kenexa)
the benefits of employee engagement:1
Employees who are favorable on these topics are more
•Companies with high levels of employee engagement
likely to be sustainably engaged:
improved 19.2% in operating income while companies
with low levels of employee engagement declined
32.7% over the study period. (Source: The ISR Employee
Engagement Report. Towers Perrin-ISR)
•A bank reported that in 2007 they found that branches
with a statistically significant increase in levels of
employee engagement (0.2 or more on a scale of five)
had a 16% higher profit margin growth than branches
with decreased levels of employee engagement.
•
Availability of development opportunities
•
Clarity of job responsibilities
•Clarity of company values and visibility of ethical
business activity
•
Availability of necessary information, and
•Collaboration.
Because it predicts company performance, engagement is
(Source: Engaging for success: Enhancing performance through
used to focus analysis of the results on the most strategic
employee engagement, UK Government Study)
areas to drive future success.
•A study of 64 organisations revealed that organisations
with highly-engaged employees achieve twice the
http://www.forbes.com/sites/kevinkruse/2012/09/04/why-employee-engagement/2/
1
Sustainability Report 2014
Employee Engagement Survey: Overview
79
77
78
74
76
79
70
78
79
80
business performance and employee retention. In 2013,
60
50
categories:
42
45
measured sustainable engagement on the basis of three
70
55
58
51
54
53
51
we conducted an Employee Engagement Survey which
70
65
62
67
66
67
69
69
69
70
70
engaged workforce’. An engaged workforce drives both
69
70
75
73
73
One of the drivers within Sappi is to have a ‘fulfilled and
Employee engagement survey results
40
•
Traditionally engaged – which measures the belief
in company goals and objectives, the emotional
30
connectedness to the organisation and willingness
20
to give discretionary effort
10
•
Enabled – which measures the availability of resources
Organisational Change
Diversity and Inclusion
Teamwork and Communication
Talent Management Recognition
Measuring levels of engagement in South Africa
Sappi global results
Global manufacturing norm
Sustainable Engagement
which has been proven to deliver better business results.
Supervision
The above factors together result in sustainable engagement
Safety and Well Being
enthusiasm or accomplishment at work.
Operational Efficiency
place within the work environment and feelings of
Leadership and Direction
Energised – which measures the social networks in
Image and Customer Focus
•
Ethics and Values
obstacles to getting the work done, and
Development and Empowerment
to achieve excellent performance and the lack of
0
SA results
Engagement levels (%)
12
The Sappi 2013 survey was designed to:
•Gather baseline data on employee opinions and
perceptions of Sappi as a place to work
•
Measure Sustainable Engagement, and
18
•Discover what it means to drive sustainable engagement
51
among employees within Sappi.
The survey was open to all permanent employees including
salaried and hourly employees, in and out of bargaining
18
units across all regions. A total of 3,661 employees
participated in the survey which represented approximately
71% of Sappi Southern Africa. A total of 10 core categories
plus two additional items for South Africa – ‘Diversity and
Fully engaged
Detached
Unsupported
Fully disengaged
Inclusion’ and ‘organisational change’ were measured. The
The graph above indicates engagement levels. While more
results were also compared to the global manufacturing
than half of the employees are fully engaged, almost a third
norm which includes responses from 150,000 employees
of employees are either detached or fully disengaged.
across 143 organisations globally.
This indicates that performance could be optimised with
these employees.
Engagement survey results
The global survey results were compared to the global
manufacturing norm in order to ascertain Sappi’s
performance against organisations that operate within
a similar industry.
The South African results are detailed in the graph and
compared to both the global results as well as the global
manufacturing norm (where possible).
To enhance our understanding of the results, these were
analysed in terms of location, job activity, tenure, age,
level and race. Results were communicated to all employees
in the form of articles in Sappi publications, presentations by
HR Managers to business and e-Mails to all employees.
Workshops were also held to discuss areas of concern and
to develop action plans to address these.
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Sustainability Report 2014
Our key issues - People
The focus areas for South Africa are to:
•Increase focus on ethics and values in the form of an
ethics board game as well as the roll out of a values
initiative for all employees
•Integrate the talent review process with a stronger
focus on development of high potential employees
including leadership development as well integration
to performance management and recruitment, and
•Improve communication across the region on all
matters pertaining to employment at Sappi.
Reaching out to communities
In 2014, Sappi commissioned external Community
Development experts DevCom to conduct research
in some of our targeted forestry communities in
KwaZulu Natal. We interviewed almost 600 individuals
in nine communities over a two week period and came
to some interesting conclusions. We were extremely
concerned to find that almost 94% of the community
people we spoke to were not employed, with most of
them being young, aged between 18 and 25, while others
were either employed by Sappi or by our contractors.
Overall, we came to the conclusion that the unemployed
were often disillusioned young people sitting at home,
ill-equipped to deal with the challenges with which
they are faced or with the skills to lift themselves up
out of these conditions. Those who were employed by
Sappi or our contractors were also disenchanted by
poverty and poor living conditions and circumstances.
This disenchantment was often aimed at Sappi and at
society in general.
The external experts and Sappi have come up with a
community stakeholder engagement and communication
strategy which we believe is going to make a significant
difference. We aim to do this by introducing our
Abashintshi training programme, which will train two
young people from each of the nine communities
selected in our pilot programme (18 in total). These
community change agents will reach out into their
communities and bring about real social mobilisation
and change for the better in the communities where
we operate by sharing with their peers the life-skills
training to which they are exposed. The Abashintshi
programme involves:
• A Life Skills Youth Training programme, and
Material issue: Transformation
Materiality focus
Twenty years ago, at the advent of democracy, South Africa
was a fragmented society, divided along racial lines
and characterised by social and economic inequality.
Societies characterised by entrenched gender inequality or
racially or ethnically defined wealth disparities are unlikely
to be socially and politically stable, particularly as economic
growth can exacerbate these inequalities. This is particularly
true in an era where globalisation tends to enhance unequal
distribution as it discriminates against the unskilled in the
sense that employment in the modern economic environment
is primarily skills biased.
Against this backdrop, following South Africa’s transition
to democracy in 1994, legislation relating to Broad-based
Black Economic Empowerment (BBBEE) was introduced to
accelerate economic and social transformation.
This Act seeks to promote the economic empowerment
of all black people2, including women, workers, youth,
people with disabilities and people living in rural areas
through diverse but integrated socio-economic strategies.
Among these is the Employment Equity Act which was
enacted to give effect to the right to equality in the context
of the employment relationship. The Act places positive
obligations on employers to prepare employment equity
plans and implement affirmative action. Through the Skills
Development Act, the government seeks to improve the
employment prospects of persons who were previously
unfairly discriminated against. In terms of this Act,
employers are required to contribute to the Skills Fund a
total of 1% of the wage bill per annum. The monies can be
claimed back by employers who are able to demonstrate that
they have developed and implemented training programmes.
Performance is measured by the BBBEE scorecard which,
in addition to employment equity and skills development,
measures management and ownership control, and preferential
procurement, enterprise and social development.
Defined as Black, Coloured and Indian people
2
Sappi’s strategic approach to BBBEE
As a company headquartered in South Africa, with significant
•The Ifa Lethu Legacy building programme with
elders in the community, introducing the Asset–based
Community Development (ABCD)1 concept to
communities and holiday programmes during
school holidays.
assets and people, Broad-based Black Economic Empowerment
ABCD focuses on appreciating and mobilising individual and community talents,
skills and assets (rather than focusing on problems and needs) and most
importantly – it is a community-driven process rather than a programme driven
by external parties or agencies.
helping to bring the black majority into the economic mainstream.
1
(BBBEE) is an important component of our reputation and
licence to trade. We recognise that BBBEE is not just a
moral imperative, but a pragmatic growth strategy that
aims to realise the country’s full economic potential while
While we accept that achieving a sustainable transformation
state in the organisation is a complex and challenging task,
Sustainability Report 2014
we believe that sound transformation practices also offer
numerous practical opportunities and benefits. Our focus,
In the first half of 2010, the shareholders of Sappi approved
in terms of BBBEE, is to make a meaningful difference.
a BBBEE equity transaction involving the issuing of
We measure our progress in this area through our BBBEE
approximately 4.5% (24.3 million shares) of the group’s
target (see page 10 of this report).
issued share capital, which translates into the empowerment
of 30% of Sappi’s South African business. The total value
New BBBEE generic codes come into effect on 30 April 2015,
of the transaction was R814 million.
Sappi, however, will be reporting under an amended Forestry
Sector Codes, should the amended codes be finalised and
The transaction recognises the contribution made to the
gazetted by that time. We have been part of the Industrial
company by our South African employees; helps to attract
Group of the Forestry Sector Council working on the new
and retain staff and in particular highly-skilled black managers;
codes. The final codes have been drafted and sent to the
and reinforces Sappi’s position as a responsible corporate
Department of Trade and Industry for approval. In our
citizen within the communities where we operate.
engagement with government, there has been recognition
of the fact that the forestry sector is uniquely positioned to
The shares will vest in 2019.
address rural development and that both business and
government need to be accountable for resolving priority
issues in accelerating transformation.
Sappi is committed to transformation in the work place.
Aligning with government’s focus on
rural development
Guidance is received from our Social, Ethics, Transformation
Encouraging entry into the industry and helping to develop
and Sustainability (SETS) Committee. We also have a Regional
tree farmers consolidates the industry and aligns with the
Transformation Steering Committee and regional and mill
South African government’s focus on rural development.
Employment Equity and Learning Forums where the focus is
on driving employment equity and skills development goals.
We recently expanded our small grower initiative,
Project Grow beyond the borders of KwaZulu-Natal
It is clear from the graph that we still have a long road
province to the Eastern Cape. In 2014, Project Grow
ahead of us in terms of trying to mirror the Economically
farmers supplied us with 11% of our hardwood fibre intake,
Active Population (EAP) demographics of our country, this
valued at R169 million. (For further details please refer to
is not just in race but also in gender.
the Project Grow FAQ available at www.sappi.com.)
Further interventions will be introduced in 2015 aligned to
management incentive bonuses to assist in improving our
employment equity.
Sappi EAP vs South Africa EAP
82.4
85.0
76.5
65.2
68.0
50.9
59.5
44.4
35.7
29.1
34.4
38.6
43.8
42.5
34.0
16.5
22.1
3.4
1.7
3.4
1.7
6.6
10.1
13
2.2
1.3
6
2.6
5.3
1.9
0.9
8.6
10.5
14.4
16.7
9
3.8
2.2
1.1
5.2
3.8
1.5
Male Female Total
Male Female Total
Male Female Total
Target %
Sappi all employees %
Sappi management %
African
Coloured
Indian
51.0
25.5
Business in a Box
Sappi is also in the process of developing a
‘Business in a Box’ toolkit to assist participants
in Project Grow with the effective management of
their projects. The aim with the ‘Business in a Box’
toolkit is to provide growers with all the necessary
process flows, forms and templates to effectively
manage their own forestry business.
Forestry is classified as a streamflow reduction activity
which means water-use licences need to be obtained
before plantations can be established. We are working with
communities in the Eastern Cape to obtain water-use
17.0
licences for the establishment of new plantations. To date,
8.5
we have assisted several communities in the Eastern Cape
0,0
in obtaining a total of 7,654ha of water-use licences,
White+foreigners
including 3,108ha of new licences awarded during 2014
financial year. We are also assisting recipients of water-use
licences to secure grant funding from government.
39
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Sustainability Report 2014
Our key issues - People
We are also active in the land reform area. We are assisting
several land reform beneficiaries (communities) with the
management of their plantations, and have signed supply
agreements with 34 land reform/restitution projects totaling
4,710ha planted.
With regard to funding which can be an issue in land reform
projects, Sappi has compiled business plans for most of
these projects and submitted the business plans to
government to secure Recapitalisation and Development
Funding. We are also in the process of negotiating with
suitable funding agencies to secure funding at a reduced
interest rate. In association with the South African Institute
of Entrepreneurship (SAIE), we have developed specific training
initiatives to assist with the management of these projects.
Developing entrepreneurial skills
In association with the South African Institute of
Lillian Jacana and Project Grow:
Making a difference
Lillian Jacana is a small forestry grower in the
Umzimkhulu area in southern KwaZulu-Natal.
She received help from Sappi’s technical team,
together with seedlings and a Sappi loan at a
discounted rate. One of the biggest costs for
growers like Mrs Jacana is transport. Sappi assists
the growers to manage and pay contractors,
thereby ensuring that they charge fair prices.
Mrs Jacana recently celebrated her first harvest of
1,393 tons which was delivered to Saiccor Mill.
She supports two households, even though she is a
grandmother and so the money she received for the
first harvest has made a big difference to her and
her family. She says she has managed to save some
of the money to see her through to the next harvest.
Her total loan with Sappi amounted to R89,000,
all of which has been paid back out of timber sales.
Entrepreneurship (SAIE) we have developed three training
modules to specifically assist larger community projects
with the management of their plantations:
•
Forest Biz: During this course growers are exposed
to the forestry business through a board game.
The game is played with ‘play’ money to simulate the
expenses and revenue of a normal forestry enterprise.
Through the use of ‘wild’ and ‘life’ cards the effects of
Creating bee entrepreneurs
At Venus and Inkwazi plantations, we have set up
beekeeping projects under the auspices of the African
Honey Bee Keeping (AHBK) project. Through AHBK,
a commercially viable beekeeping incubator was
established on the two plantations, and about 20 new
beekeepers are employed every year.
fire, timber theft and market changes are role-played.
This gives the growers an insight as to what can be
expected in their own forestry businesses.
•
Understanding business basics: Running a simple
business: The course focuses on business development and simulates cash flow and is played as a game
The farmers are enrolled in an 18-month learnership
programme to obtain a National Qualification Framework
Level 1 qualification. During this time they work as
commercial beekeepers which helps to develop their
entrepreneurial skills. They are also exposed to Sappi’s
stringent safety and environmental management practices.
with play money. The candidates play a simulation
game which covers the income and expenditure of a
manufacturing business. Through the use of ‘life’
cards, common day problems are encountered
showing the effect this has on cash flow. The outcome
is to introduce the grower to very simply accounting
practices, financial planning and record keeping.
•
Community Trusts/Communal Property
Associations (CPA) – Leadership and Management:
The course aims to develop leaders within Community
Trusts and CPAs and covers the different legal structures, roles and responsibilities of Communal Property
Institutes. Special attention is given to the effective
management of these structures to ensure good
corporate governance.
New entrants work under the guidance and mentorship
of experienced senior beekeepers and when they
have completed the incubation process, they become
fully fledged African Honey Bee franchisees.
Through AHBK, bee-keepers receive ongoing training,
mentorship, advance payment on their future honey
production, equipment at preferential prices and access
to global and South African markets for their produce.
Sustainability Report 2014
Inputs and activities
BBBEE
Scorecard
elements
Planet (Natural)
Prosperity
(Financial,
intellectual and
manufactured)
People( Human,
relationships
and social)
Capitals
Ownership
Sefate deal in terms of which shares were
issued to a black owned company, a black
womens’ development trust and ESOP,
MSOP and Foundation trust created.
Management
control
Targets have been allocated to management
and now form part of the management
incentive scheme.
We will focus on gender imbalance, training
based on career development move our
employees closer to the demographics
distribution and work on interventions that
create transformation within the business.
Skills development
Training expenditure has a focus on black
employees with further focus on black
women and disabled training.
Training of unemployed people in some of
our communities.
Enterprise
and supplier
development
Started Project Grow just over 30 years ago
with three farmers, the project now has
5,000 farmers.
Socio-economic
development
Socio-economic spend on communities where Sappi has a footprint, with a focus on education, environment and upliftment
(R23.2 million in FY2014).
Projects initiated whereby communities
make use of our by-products.
Reduced waste to landfill.
Outcomes
BBBEE
score
Targeted score
(New scorecard)
24.5
15.28
25.00
Review current scheme to determine
whether there is a better opportunity
to transfer wealth to our employees
which does not result in financial stress
to the company or its shareholders and
creates the once empowered always
empowered situation.
Improved skills levels in South Africa
Improved alignment to the
demographics of our country.
9.00
7.57
7.67
9.00
Have interventions in our company
that will result in an employee base that
represents the economically active
population demographic distribution
of the country.
Promotions within the company,
certain of the unemployed people
in our communities have been
employed by our contractors and
other businesses in the area.
10.00
9.00
9.55
15.00
Implement industry initiatives and create
a disabled business which is supported
by industry as well as create a training
facility for the unemployed, focused
on general tradesman skills.
Our spend on Project Grow in
FY2014 was approximately
R150 million. 11% of our
hardwood fibre intake supplied
by Project Grow.
32.50
34.54
32.29
27.00
Focus on improving our suppliers’
BBBEE scorecards and introducing
new incubational enterprise/supplier
development models that have a larger
impact on our communities.
Improved conditions in our
communities.
8.00
8.00
8.00
8.00
Focus on where we have the largest
impact on our communities.
75.00
83.61
72.79
84.00
Inputs and
activities
Actual prior year
15.50
Planet (Natural)
More than 51% of our South African
business (based on equity
equivalent calculation) is in the
hands of black people.
People( Human,
relationships
and social)
Black employees, managers,
black companies, black women
development trust and
communities have access to
shares to the value of R1 billion.
Prosperity
(Financial,
intellectual and
manufactured)
Actual current
year
Aspirational
Current year
target
Capitals
41
42
Sustainability Report 2014
Our key issues - Planet
Proportional water use per main economic sector
in South Africa (%)
At a glance
60
3
production of pulp and
•Extracted 54 m /adt of water for
(47.6 m3/adt) to the
88%
ned
retur
and
mills
our
paper in
it
ing
treat
and
environment after cleaning
s (23% over
sion
emis
il
•Decrease in Scope 1 and 2 foss
five years)
Mill’s energy self-sufficiency
•Project Buyisa increases Saiccor
from 55% to 57.6%
hased energy has decreased
•Over five years – specific purc
by 26.2%
fill of 38.3% over the last
•Reduction of solid waste to land
five years
50
40
30
24
20
3
3
3
Agriculture
Urban domestic
Mining and industry
Rural domestic
Forestry
Conservation
Power generation
We live and work in it, on it with care, preserving it for future
10
5
2
“South Africa, our country, is our land. Our land is our home…
60
0
As the line chart indicates, forestry accounts for only 3% of South Africa’s total
water use by reducing run-off into rivers and streams. Irrigated agriculture,
on the other hand, accounts for 60% of the country’s total water use.
generations. We discover it all the time. As it gives life to us,
we honour the life in it.”
National Development Plan 2030
Material issue: Water
Materiality focus
South Africa is a semi-arid country with rainfall varying
from less than 100mm per annum in the west to over
1,500mm per annum in the east. South Africa is ranked the
35th driest country in the world. The average rainfall in the
Sappi’s strategic approach
All our pulp and paper mills use Integrated Water Resource
Management (IWRM), a methodology which aims to
balance the capacity and utilisation of water resources
to provide water of a specific quantity and quality.
This means balancing the volume of water we abstract for
use in our manufacturing processes against our impact on
the water resource on which we depend.
country is 450mm per year, well below the world average of
860mm per year.
Much of the country’s economic activity occurs in areas with
reduced water availability. In addition, there are concerns
about declining water quality and increasing infrastructure
challenges, and there is a continuing legacy of unequal
access to water in the country. Accordingly, at Sappi,
we focus on ensuring that we use water responsibly in our
manufacturing operations and on our lands.
Approximately 50% of the weight of a tree is
water and this is used in the pulping process
Water is primarily extracted from the rivers on which our
mills are situated (78%) – a process strictly controlled in
terms of licence conditions, from our own dams (14.4%),
from municipal sources (potable water: 1.8%), from municipal
sources (Enstra and Cape Kraft Mills: 5.8%).
Approximately 50% of a tree is water and this water enters
the manufacturing cycle when trees are pulped. We recycle
water many times in our manufacturing operations.
Approximately 88% of the water we abstract is returned
to the rivers from which it was extracted or for agricultural
irrigation purposes. At Ngodwana Mill, for example, effluent
is irrigated onto agricultural pastures where it is filtered
through the soil en route to the groundwater zone.
The filtered treated effluent re-enters the Elands River
through natural springs. The DWA has set concentrations
and load limits for chemical contaminants in the mill’s
Sustainability Report 2014
treated effluent in order to ensure that effluent irrigation
practices do not impact on river courses beyond accepted
levels.
An extensive monitoring network is maintained to assess the
impact of our mills on receiving water courses.
streamflow, but forestry hardly ever exceeds 75% of the area
of quaternary 8catchments and usually only make up about
60% of the quaternary catchments. Consequently, forestry’s
maximum use per primary catchment is 14.5%.1
Quaternary catchments are the principal water management units in South Africa
1
SA water withdrawal by source
(%)
Achievements in 2014
In the year under review we achieved water savings through
1.8
the increased use of process water.
5.8
14.4
In our plantations, we optimise water quantity by delineating
riparian zones and wetlands and ensuring these are kept
free of commercial trees. Water quality is managed by
regulating drainage and minimising erosion, thereby preventing
run-off into streams and rivers. Our roads are planned and
constructed to prevent erosion and ensure water runoff is
not directed straight into rivers. Sappi Forests also has a
number of procedures to ensure runoff after harvesting is
78
kept to a minimum. These include leaving harvesting residue
on the ground and ensuring that the correct harvesting and
Rivers
Municipal (potable)
extraction methods are used.
Our water management initiatives do not happen in isolation
Own dam
Municipal (industrial water)
– we engage with other water stakeholders in the catchment
Wetlands on our lands
areas in which we operate (See for example the case study:
Currently, approximately 2,000ha of Sappi Forests’
Saving the Midmar Dam on page 44).
landholdings are classified as wetlands (this excludes rivers
and streams that are also sometimes classified as wetlands).
Given Sappi’s move to increased production of dissolving
These are all inland wetlands (as opposed to coastal wetlands)
wood pulp, which uses hardwood (eucalypts) rather than
and consist of a variety of wetland types including freshwater
softwood (pines), some stakeholders have expressed
marshes, peatlands, springs, swamp forests and floodplains.
concern that converting plantations to eucalypts will
Sappi’s wetlands yield all the benefits that make these areas
increase water use by our plantations. Growing under the
so important – from inhibiting flooding and filtering water, to
same conditions and at similar ages, eucalypts use 15-30%
storing carbon and thus helping to mitigate climate change.
more water than pines. This does not imply that converting
a pine plantation to a eucalypt plantations will reduce stream
Sappi was involved in the development of a wetland
flow by 15-30% because they are harvested at different ages:
assessment toolkit, called Wet-Health, the first comprehensive
eucalypts at age 8–10 and pines at 18 years. At any given
wetland health assessment tool to be developed for assessing
point in time there will be a difference in size between the
South African wetlands. The toolkit enables us to:
eucalypts and pines. However, at certain periods in
•
Evaluate wetland condition
the rotation of the crop, stream flow will be materially less
•
Identify causes of wetland degradation
– especially during low flow periods – in a catchment
•
Prioritise rehabilitation initiatives
•
Measure the effectiveness of rehabilitation efforts, and
•
Evaluate possible impacts of land use on wetland
planted with eucalypts as opposed to a catchment planted
to pines.
Depending on a number of conditions, including the nature
of natural vegetation and soil depth, eucalypts (gums) reduce
streamflow by between 30 and 200mm while pines reduce
it by between 20 and 150mm. In a fully planted-up wet
quaternary catchment, forestry could use 25 to 30% of the
functioning.
For further details, please refer to our Forest and Wetlands
FAQ on www.sappi.com
43
44
Sustainability Report 2014
Saving the Midmar Dam
The lifespan of any dam depends on the ecosystem health of its surrounding catchment. In KwaZulu-Natal province,
the Midmar Dam is recognised as one of the most important dams in the province, given that it plays a significant
role in supplying water to almost half the population in the second largest economic region in South Africa and also
provides multiple recreational values to society. The dam is sustained by ecological infrastructure which includes
three major rivers – the Lions, uMngeni and Mooi and a myriad of wetlands and riparian zones within these ecosystems.
Unfortunately, the dam is located within a highly complex socio-ecological network and high levels of sewage pollution,
solid wastes, industrial and agricultural activities (dairies, feedlots, intensive agriculture and maize production) are
threatening its existence. A significant proportion of Sappi’s landholdings are situated within the dam catchment area.
The uMgungundlovu District Municipality in partnership with Sappi and other local stakeholders, including the
uMngeni Ecological Infrastructure Partnership to which Sappi belongs, are co-ordinating an ecological infrastructure
initiative called ‘Save the Midmar Dam’. The project aims to restore and maintain degraded wetlands, riparian zones
and grasslands, creating and maintaining water resource buffer zones and educating water users on the importance
of conserving critical ecological infrastructure within the area. The project also involves the rehabilitation of the
Sappi Lions River wetland.
Material issue: Energy
Materiality focus
Purchased energy costs as a percentage
of cost of sales (COS) (%)
Electricity prices have been rising significantly in South Africa
for a number of years and in 2014, the country once again
16
faced managed blackouts previously experienced in 2008.
Shortly after Sappi’s year-end, the National Energy Regulator
13.68
12.76
14.43
14.05
14
13.04
of South Africa (NERSA) announced that the hikes in power
12
prices from April 2015 onwards would be higher than first planned.
10
Electricity tariffs charged by the state power utility Eskom,
8
will increase by an average of 13% – more than double the
6
country’s inflation rate, which stood at 6.4% in August 2014.
This is significantly more than the 8% initially approved for
4
the year through to 31 March 2016.
2
This is material to Sappi, given that our manufacturing
2010
2011
2012
2013
2014
0
operations are energy intensive. The graph indicates that
energy costs as a percentage of cost sales are decreasing the result of a concerted focus on energy efficiency and
self-sufficiency.
Eskom’s electricity generation is primarily coal-fired,
which has obvious carbon implications. The NDP proposes
a move to less carbon-intensive electricity production
through procuring at least 20,000MW of renewable energy.
This offers an opportunity for Sappi, given the fact that
40% of our energy in South Africa is derived from
renewable sources – primarily black liquor.
Black liquor is the spent cooking liquor from the pulping
process which results when pulpwood is digested into
paper pulp by removing lignin, hemicellulose and other
extractives from the wood to free the cellulose fibres.
The resulting black liquor is an aqueous solution of lignin
residues, hemicellulose, and the inorganic chemicals used
in the process. Black liquor contains more than half of the
energy content of the wood fed into the digester.
Sustainability Report 2014
Sappi’s strategic approach
SA renewable energy
breakdown (2014)
There is a high probability that the risk of supply constraints
and increased energy costs will escalate in the near future.
In addition, it seems extremely likely that the government
will introduce a carbon tax in 2016 (discussed in further
detail in our 2014 Group Sustainability Report, available
on www.sappi.com).
11
Sappi Southern Africa’s high use of renewable energy (40%)
and long-established focus on reducing carbon footprint,
decreasing our reliance on fossil fuel and increasing energy
self-sufficiency positions us well for dealing with these
challenges.
So too, does the fact that our plantations mitigate global
warming by absorbing carbon: during photosynthesis,
trees use energy from the sun to convert carbon dioxide (CO2)
into organic compounds essential for their growth,
storing carbon and releasing oxygen in the process.
Without this vital daily exchange, life on earth would simply
not be possible.
98
Own black liquor
Renewable energy in
purchased power
Specific purchased energy per year
(SPE)(GJ/adt)
27.43
30
26.86
23.95
In planning new projects, energy efficiency is a priority.
For example, with our GoCell expansion at Ngodwana Mill
to partially convert the mill to produce dissolving wood
pulp in line with our strategy of growing our existing high
margin businesses, high-efficiency motors and lighting
were installed and all new equipment was based on best
available technology (BAT).
The efficacy of our strategic approach is highlighted by the
fact that over five years, our total greenhouse emissions
have decreased by 23%.
In terms of the Kyoto Protocol, as a developing country,
South African companies can register for the
Clean Development Mechanism (CDM) which allows
emissions reduction projects to generate Certified Emission
Reduction units which may be traded in emissions trading
schemes. We have registered two projects, but are waiting
for clarity on the Department of Energy’s co-generation ruling
before proceeding.
Own biomass (mostly bark)
25
21.20
20.50
20
15
10
5
2010
2011
2012
2013
2014
0
45
46
Sustainability Report 2014
Our key issues - Planet
Project Buyisa: Increasing renewable energy and generating savings
Project Buyisa (meaning ‘to return’ in Zulu) at Saiccor Mill is an example of our strategic approach to increasing our
use of renewable energy.
At Saiccor Mill, black liquor is used as a fuel in the recovery boilers to generate 339t/h of high pressure steam at
85bar. The steam generated by the boilers is sent to turbines for the generation of electricity. The project, still in
progress, involves increasing black liquor solids recovery and processing in order to increase steaming rates on the
recovery boilers from the current average of 339t/h to 400t/h. This is being achieved via improved evaporation and
liquor recovery in the magnesium oxide plant.
The project will increase the mill’s energy self-sufficiency from 55% to approximately 60% (it is currently 58%), thereby
reducing its reliance on fossil based fuels and generating savings. Annual savings are estimated to be R63.7 million
based on reduced heavy fuel oil (HFO) and coal consumption as well as increased electrical power generation.
Estimated payback is 1.5 years, based on a capital cost of R87 million.
Specific Scope 1 emissions per year
(t CO2/adt)[fossil only]
Specific Scope 2 emissions per year
(t CO2/adt)[fossil only]
2,0
1,00
0.79
0.72
0,75
0.64
1.57
1.57
0.57
1.47
0.53
1,5
0,50
1.32
1.28
0,25
2010
2011
2012
2013
2014
1,0
Material issue: Waste
Materiality focus
Reducing solid waste has positive environmental
implications as solid waste generally sent to landfill
and landfills generates methane, a greenhouse gas with
approximately 23 times the global warming potential of
carbon dioxide.
There are also positive economic implications. By re-using
input materials such as chemicals, costs are reduced.
Waste minimisation is also an avenue for revenue generation.
2010
2011
2012
2013
2014
0,00
Sappi’s strategic approach
Our success in reducing waste is highlighted by the fact that
our mills have reduced their waste to landfill by 38.3%
over the last five years. As a group, Sappi is increasing
focus on the valorisation of waste (discussed in further
detail in the 2014 Group Sustainability Report, available
on www.sappi.com).
In South Africa, we have various waste minimisation initiatives:
•During the recovery of cooking chemicals, some of our
mills generates lime which has been registered as a
fertiliser with the Department of Agriculture, Forestry and
Sustainability Report 2014
Fisheries. The fertiliser is used by the agricultural
SA breakdown of solid waste
by disposal method (%)
sector to neutralise acidic soils and improve the
workability of soils.
21.4
•Our paper mills use waste paper in varying degrees in
their production processes. Sappi buys waste paper
from an extensive network of agents across South Africa.
This comes directly from homes, offices, wholesalers,
41.4
retailers and manufacturers in both the formal and
informal sectors, as well as from our own customers.
By using waste paper to replace a certain amount of
virgin woodfibre, the amount of waste paper going to
landfill is reduced. Because waste paper is the cheapest
fibre available, it is an important cost saving to the mill.
•We are increasingly valorising lignosulphonates wood extracts produced during the pulping process
that contain the mineral elements naturally present in
trees and that are sold to the building, chemical,
food, mining and transport industries. For a detailed
description, please refer to pages 24 – 25 of the
27.5
1.5
1.9 5.1 1.2
Landfilled on-site
Landfilled off-site
Combusted on-site for heat use
Composting (on- or off site)
Other use (on-site)
Environmentally beneficial re-use/recycling
Secondary material
2013 Sappi Southern Africa Sustainability Report.
•At Stanger Mill in KwaZulu-Natal, bagasse (sugar cane
waste residue) is used to manufacture the Triple Green
range. This fibre is sourced from local suppliers,
many of them previously-disadvantaged growers.
This practice supports the development of entrepreneurial
enterprise and contributes to the KwaZulu-Natal
Responding to stakeholder concerns
regarding use of boiler ash from
Saiccor Mill
Sappi was accused of dumping ‘potentially toxic ash’
that was allegedly seeping into the river systems south
of Durban and possibly threatening the environmentally
sensitive Aliwal Shoal off the coast.
region’s socio-economic growth and stability.
Local buying also eliminates the need for long-distance
road transport, reducing wear and tear on the country’s
roads, fuel consumption and the emission of greenhouse
gases from haulage trucks. The resulting cost savings also
have a positive influence on pricing.
Sappi Saiccor Mill has been providing ash free of
charge to the block-makers in the Umkomaas area
for many years, in line with our commitment of
promoting socio-economic development. The
provision of this ash is very important for the survival of
these businesses. Following complaints, we took the
following actions:
•Despite previously commissioned tests by an
independent third party to test the ash with results
showing the ash to be chemically fit for purpose
in the block-making process, Sappi agreed to
have the ash re-tested at a laboratory of the
choice of the complainants. This laboratory again
confirmed that the ash is not toxic and reassured
complainants that Sappi was not disposing of
ash in an irresponsible manner.
•We have been working closely with the relevant
authorities and role players particularly Members
of the Umkomaas Block-makers Association and
the Department of Environmental Affairs. The
latter has now agreed that we can supply
members of the Association for nine months,
whereafter the conditions of the exemption might
be reviewed.
47
48
Sustainability Report 2014
Our South African sustainability council
“Sustainability is the balance between prosperity,
environment and equity. It is not negotiable, it is the essence of
our survival and will determine our future.”
Pat McGrady
Manufacturing and Technical Director SA
“We continuously look at improving and developing our products
to deliver value and solutions to our customers. This continuous
product engineering is becoming all the more important to ensure
that customers continue to work with us in developing solutions
for their businesses. We are placing increased focus on sustainability
scorecards that are reviewed at all operations on a regular basis
and have become an integral part of the business practice and
management focus.”
Richard Wells
General Manager, Commercial
“Our corporate drive for sustainability is meaningless unless we,
as individuals, believe in it. Truly believe in it. It is not a nice company
slogan or a feel good promotional tool. Sustainability is our future.’’
William Morrow
Marketing Director, Sappi Papier Holding GmbH
“At Sappi, our sustainability efforts strive to find the balance
between business and nature, to ensure our natural resources
are protected for future generations whilst generating a return
of our shareholders.”
Deon van Aarde
IT Director
“For me, sustainability equals responsibility. We take our responsibility
to the environment very seriously at Sappi and this is highlighted
by our performance: over time we are reducing the amount of solid
waste we send to landfill, increasing our use of renewable energy
while decreasing fossil fuel emissions and improving the quality of
the effluent we discharge.’’
Anel Nagel
Technical Specialist - Energy and Emissions
Sustainability Report 2014
“Sustainability is the measurement of success for our industry
which is founded on a renewable resource but has a significant
environmental footprint.”
Charlie Clarke
Technology Centre Manager
“Any organisation must be sustainable to remain in business it goes without saying. The importance of having a focus on
sustainable development for Sappi therefore lies in the setting of,
and working towards targets which will make us lighter on the
environment, better for all people and more prosperous.“
Dave Everard
Divisional Environmental Manager
“A company does not operate in a vacuum. It must create value
for all its stakeholders. We therefore ensure that we support and
build the communities where we operate.”
André Oberholzer
Group Head Corporate Affairs, Sappi Limited
“Sustainability means the capacity to endure over time.
Sustainability matters because we create future generations and
we acknowledge that the resources we have today are not only
for us, but for all.”
Renée Van Hoeve
Regional Environmental Manager
“Sappi as a company is enviably advantaged to make a real difference
through our environmental footprint, responsible and caring
people and the opportunities to create value for all our stakeholders.”
Lucia Swartz
Group Head Human Resources, Sappi Limited
“My wish is for a future South Africa where all citizens are free
and prosperous. It is critical that leaders from all stakeholders
have a cohesive vision and execution plan to achieve this.
‘Living the Rainbow’ encompasses this idea through working
together to gain that ‘pot of gold’ at the end.”
Tyrone Hawkes
Director: Strategy and Business Development
49
g/m².
e Art 250g/m² and 135
Printed on Sappi Galeri
d at
fine papers, manufacture
Sappi Galerie Art coated
ached
are made from pulp ble
Sappi’s European mills,
p is
e. The wood for this pul
without the use of chlorin
ntations.
managed forests and pla
derived from sustainably
with ISO 9001 quality and
These mills are certified
n.
environmental certificatio
ISO 14001 and EMAS
.
ble
ycla
rec
fully
and
d free
Sappi Galerie Art is aci
mmunications – 2014
© Sappi Corporate Co
www.sappi.com