About this report
Our Annual Integrated Report for the year ended September 2022 provides an overview of how we create value in terms of our purpose, vision and strategy. The report deals with key opportunities and risks in our markets as well as our performance against financial and non-financial objectives, together with our priorities and expectations for the year ahead. While the report addresses issues pertinent to a broad group of stakeholders, the primary audience is our shareholders. Our global and regional sustainability reports address the wider audience in more detail on key material issues. In addition to our Annual Integrated Report, we have included supporting appendices.
Integrated thinking and the 3Ps
We understand that the long-term sustainability of our business will only be ensured by delivering sustained value for our stakeholders. In understanding our value-creation process, we take an integrated approach, considering Prosperity, People and Planet (the 3Ps) – an approach that is aligned with the International Integrated Reporting Framework (IIRC) six capitals model.
Our technology centres and research and development (R&D) initiatives promote a culture of innovation to support the development of commercially and environmentally sustainable solutions for the company.
We manage our financial capital, including shareholders' equity, debt and reinvested capital to maintain a solid balance between growth, profitability and liquidity.
Our operations require significant investments in manufactured capital. Investing in building, maintaining, operating and improving this infrastructure requires financial, human and intellectual capitals.
We require engaged and productive employees to create value. By creating a safe and healthy workplace for our people in which diversity is encouraged and valued, and providing them with ongoing development opportunities, we enhance productivity and our ability to service global markets.
Social and relationship capital
Building relationships with our key stakeholders in a spirit of trust and mutual respect enhances both our licence to trade and our competitive advantage, thereby enabling shared value creation.
Recognising that our business depends on natural capital, we focus on understanding, managing and mitigating our impacts.
ENSURING HOLISTIC VALUE CREATION
Value for Sappi is not only about delivering returns to our shareholders, it is also about maximising the value of every resource along our value chain to ensure those returns are sustainable. We recognise that our sphere of influence and impact extends beyond our mill gates.
Through this lifecycle approach that harnesses the power of the circular economy, we strive to minimise our negative impacts and increase our positive impacts on people and the planet, while securing sustainable profit margins.
We then measure value created, preserved and eroded in terms of our defined, holistic targets, as outlined and set out in the Business model.
SCOPE AND BOUNDARY
The scope of this report includes all our operations (refer to Where we operate). We aim to present information that is material, comparable, relevant and complete. The issues and indicators we cover reflect our significant economic, environmental and social impacts, and those we believe would substantively influence the assessments and decisions of investors.
For important information relating to forward-looking statements, refer here.
The materiality of the information presented has been determined on the basis of extensive ongoing engagement with our stakeholders and has been assessed against the backdrop of current business operations, as well as prevailing trends in our industry and the global economy (refer to Integrating our key material issues).
In preparing this report, we have tracked environmental findings and research, public opinion, employee views and attitudes, the interests and priorities of environmental and social groups, as well as the activities, profiles and interests of investors, employees, suppliers and customers, communities, governments and regulatory authorities.
OUR REPORTING SUITE
2022 Sappi Annual Integrated Report
- IIRC's International <IR> Framework
- Companies Act, No 71 of 2008, as amended (Companies Act)
- Johannesburg Stock Exchange (JSE) Listings Requirements
- King IV Code on Corporate Governance (King IVTM)1.
2022 Sappi Group Sustainability Report
- Global Reporting Initiative (GRI) standards
- United Nations Global Compact (UNGC)
- UN SDGs.
We obtained external assurance on selected sustainability key performance indicators in our 2022 Sappi Group Sustainability Report. The independent practitioner's limited assurance report is included in the 2022 Sappi Group Sustainability Report. Our sustainability information is also verified by our internal audit team. Their verification process includes reviewing the procedures applied for collecting and/or measuring, calculating and validating non-financial data, as well as reviewing reported information and supporting documentation. In addition, most of our key operations undergo external verification including the Eco-Management Audit System in Europe, ISO 50001 energy certification in Europe and South Africa and globally, ISO 45001 environmental certification and ISO 9001 quality certification, as well as OHS 18001 and ISO 45001 health and safety certification.
We are also assessed in terms of the forest certification systems we use and, in South Africa, our broad-based black economic empowerment (BBBEE) performance is assessed by an external ratings agency. In 2021 Sappi Limited was a constituent of the FTSE/JSE Responsible Investment Index.
Collectively, these external assessments and certifications, as well as interaction with our stakeholders, give us confidence that our performance indicators are reliable, accurate and pertinent. The Social, Ethics, Transformation and Sustainability (SETS) Committee is satisfied that the sustainability information presented in this report has been provided with a reasonable degree of accuracy.
For information on the combined assurance framework relevant to the disclosure in this report, and for the independent auditors' report, see Group Annual Financial Statements on www.sappi.com/annual-reports. This year's report does not include summarised financials. However, the full 2021 Sappi Annual Integrated Report with financials is available on www.sappi.com/annual-reports in interactive and PDF format.
The Sappi Limited board acknowledges its responsibility for ensuring the integrity of the Annual Integrated Report and, to the best of its knowledge and belief, the 2022 Sappi Annual Integrated Report addresses all issues material to the group's ability to create and preserve value in the short, medium and long term, and fairly presents the group's integrated performance and outlook. The board believes that the Annual Integrated Report speaks to Sappi's use of and effect on the 3Ps (addressing value creation, preservation and erosion), aligned with the six capitals, and how the availability of these resources is shaping our business and impacting how we will create value in the future.
We believe that this report has been prepared in accordance with the Integrated Reporting Framework. The report has been prepared in line with best practice and the board approved the 2022 Sappi Annual Integrated Report on 9 December 2022.
|Sir Nigel Rudd
Chief Executive Officer (CEO)