OUR
CAPITALS

Financial,
intellectual
and manufactured
capitals

Human
and social
and relationship
capitals



Natural capital


 

PROSPERITY

   

Inputs 1
The resources and relationships we rely on

  • 18 production facilities:
    • Eight paper mills
    • Four speciality paper mills and one other operation
    • One paper and speciality paper mill
    • Two dissolving wood pulp and paper mills
    • One dissolving wood pulp mill, and
    • One sawmill
  • Biomass plant under construction
  • Fuel rod demonstration plant
  • Nanocellulose demonstration plant
  • Sugar demonstration plant – now in its second phase
  • Acquisition of Matane Mill in Canada
  • Total assets: US$5.6 billion
  • EBITDA: US$687 million, a decline of 10% year-on-year
  • Cash and cash equivalents: US$393 million
  • R&D spend: US$42 million

Outputs 2
What we produce

  • 7.6 million tons of saleable production
  • Profit down by 15%
  • Net debt down by 4%
  • New products to meet changing customer expectations and market trends
PROSPERITY

Outcomes 3
The impacts of our operations

Our investors received US$92 million in dividends   Globally, we contributed US$131 million to government taxation   We invested US$438 million to grow the business
Our high levels of innovation give our customers a competitive edge in global markets – we collaborated closely with specialist packaging converter and a global FMCG company to support the launch of a new confectionery snack bar wrapped in recycled paper   We paid US$989 million to employees as salaries, wages and other benefits   Downtime at certain mills
      Lenders of capital received US$95 million as interest      
 

Actions to enhance outcomes 4
The impacts of our operations

  • Tight management of working capital and postponement of discretionary capital expenditure to mitigate the impact of uncertain market conditions
  • Investment in R&D to ensure cutting-edge solutions for customers
  • Ongoing diversification of our product portfolio into higher margin segments

 

PEOPLE

Inputs 1
The resources and relationships we rely on

  • 12,821 employees
  • US$525 average training spend per employee
  • Ongoing stakeholder engagement
  • US$4.1 million invested in corporate social responsibility

Outputs 2
What we produce

  • Productivity: 4.00 hours worked/adt saleable production (2018: 3.63 hours)
  • Internal global awards (Technical Innovation Awards and CEO Award for Excellence), together with regional awards, drive excellence and innovation
PEOPLE

Outcomes 3
The impacts of our operations

Four fatalities   In South Africa our operations provide employment for approximately 9,250 contractor employees   Acquisition of Matane Mill – opens up opportunities as part of a global organisation
We play an active role in South Africa's transformation agenda and are classified as a Level 2 BBBEE contributor   Our specialised sustainable packaging solutions: preserve and protect, convey information and offer convenience      
 

Actions to enhance outcomes 4
The impacts of our operations

  • Continued investment in embedding a safety culture across the group
  • Focus on entrenching transformation in our South African operations to support inclusive growth
  • Investment in training and development of our employees
  • Strong governance; Code of Ethics training
  • Group Supplier Code of Conduct rolled out to suppliers and review process initiated
 

PLANET

Inputs 1
The resources and relationships we rely on

  • Access to 529,000 ha plantations, of which approximately:
    • 255,000 ha are owned or leased, and
    • 139,000 ha are contracted supply
    • 135,000 ha is set aside and maintained by Sappi Forests to conserve the natural habitat and biodiversity found there.
  • 2,621 MW energy purchased
  • 2,011 MW energy generated on site
  • Energy intensity: 22.84 GJ/adt
  • 289 million litres of water extracted for all purposes
  • 34.17 m3/adt specific process water extracted
 

Outputs 2
What we produce

  • Waste: 1.5 million tons of waste, of which 377,422 tons sent to landfill
  • Emissions: 4.4 million tCO2e absolute direct (Scope 1) GHG
PLANET

Outcomes 3
The impacts of our operations

52.9% renewable energy, of which 66.4% own black liquor   One-third of owned and leased plantations set aside for biodiversity conservation  
Training of smallholders to educate them on more sustainable forestry practices   Negative impact on plantation biodiversity at stand level (not plantation level)  
95% of water drawn returned to the environment   DWP used for clothing and household textiles, baby wipes and wet wipes – reducing environmental impact  
Impact on GHG emissions offset by carbon sequestration   Lighter-weight packaging products – reduction of carbon footprint  
74.8% of fibre used certified   Expanded packaging portfolio offers customers and consumers more sustainable alternatives to fossil-fuel based packaging (plastics)  
World-leading tree improvement programmes have led to shorter growth times and enhanced fibre gain   Ecosystem services benefit various stakeholders  
 

Actions to enhance outcomes 4
The impacts of our operations

  • Increased energy self-sufficiency by 5.4% over five years due to focus on reducing purchased energy
  • Participated in initiatives to enable certification for small growers
  • Adjusted our tree breeding strategy to mitigate the impacts of climate change
  • Participated in industry consortium to test blockchain technology
  • Together with other forestry companies, initiated a detailed climate change mapping project with the Global Change Institute (GCI) at the University of the Witwatersrand