Governance

In order to unlock the power of renewable resources to benefit people, communities, and the planet, we need to do so from a foundation of trust. This foundation is reinforced by our robust sustainability governance framework summarised below.

Sappi Sustainability Governance Framework

Sappi board
Social, Ethics, Transformation and Sustainability (SETS) Committee		Other board committees					Group Sustainable Development Council (GSDC)		Regional Sustainability Councils
		Audit and Risk	Remuneration and Compensation		Executive Management Committee (EXCO)
Committees
Chaired by an Independent Non-executive Director (NED)		Chaired by an Independent NED	Chaired by an Independent NED		Chaired by the group CEO		Chaired by the Group Head: Sustainability and Investor Relations		Chaired by regional CEOs and sustainability leads
Purpose
Oversees the group’s sustainability strategy, commitments, policies performance		Oversees the group’s corporate financial reporting, internal control systems, risk management and relationship with the external auditor	Ensures that incentives drive the appropriate behaviours that deliver our strategy		Management responsibility for execution of sustainability strategy and policies guided by the SETS Committee		Provides expert insights and support to the business on sustainable development matters		Oversees the integration of sustainable development into the operations
Responsibility
Responsible for the governance of matters related to sustainable development including: environment, climate change, biodiversity, product stewardship, labour, human rights, diversity and transformation and ethics. Ensures alignment to best practice and disclosure standards		Oversees the group’s corporate financial reporting. Oversees the risk management process including sustainability risks. Monitors effectiveness of internal control systems including hotline reporting platform	Aligns remuneration to performance against key sustainability targets and focus areas		Prioritises capital allocation and ensures business unit line management holds primary responsibility and accountability for sustainability performance		Keeps abreast of best practice and regulatory compliance requirements. Develops sustainability related strategy and policies for the group		Develops action plans aligned with strategy and policies and monitors progress towards sustainability targets and commitments. Ensures integration of sustainability requirements into operational systems and processes
Oversight					Accountable		Advisory		Execution

The Social, Ethics, Transformation and Sustainability (SETS) Committee has an independent role with accountability to the board and comprises a majority of independent non-executive members, whose duties are delegated to them by the board in compliance with a board-approved terms of reference. The role of the SETS Committee, is to assist the board with the oversight of sustainability matters within the company, including climate-related issues, and to provide guidance to management's work in respect of its duties. The SETS Committee provides oversight on the group's sustainable development strategies, policies, objectives and targets and public disclosures. The committee addresses issues relating to environmental impact and climate change, corporate social investment, ethical conduct, diversity, transformation and empowerment and ongoing sustainability initiatives. Their responsibilities include monitoring the company's ESG activities, having regard to any relevant legislation, other legal requirements and prevailing codes of best practice.

The SETS Committee meets three times per year and the Chairman of the committee reports back to the board after every meeting. Progress against our Thrive sustainability targets is an integral component of the SETS Committee agenda and is reviewed twice per year. Each of the three regions and Sappi Forests presents a detailed report on progress against regional Thrive targets as well as feedback on key initiatives, action plans and challenges relating to sustainability and climate-related matters. Additionally, a detailed climate report is presented to SETS annually outlining the company's progress according to the TCFD framework. Further details on the activities of the SETS Committee can be found here.

Audit and Risk Committee (ARC) provides additional governance oversight on climate-related matters. The ARC oversees the group's corporate financial reporting and annual planning process, and the group's internal controls and risk assessment process, which includes sustainability and specifically climate-related risks. Further details on the activities of the ARC can be found here.

The Human Resources and Compensation Committee is responsible for ensuring that incentive schemes drive the appropriate behaviours that deliver our sustainability strategy, including the alignment of remuneration to performance against our key Thrive sustainability commitments and targets. Further details on how climate action is incorporated into incentive schemes can be found in the Remuneration Report.

The Executive Management Committee (EXCO), chaired by the group CEO, is accountable for delivery of the sustainability strategy and responsible for ensuring that the strategic objectives and goals of the organisation are achieved. The committee is responsible for ensuring that capital allocation is aligned with business and sustainability objectives and prioritised appropriately to ensure timely delivery against our public commitments. The EXCO regularly reviews progress against our sustainability and climate commitments and targets. In addition, sustainability matters of a strategic nature, including those relating to climate change, are reviewed and discussed by the EXCO prior to submission to the SETS Committee. This allows the EXCO to provide their strategic input and ensures that there is complete management alignment on sustainability matters.

The Group Sustainable Development Council (GSDC) reviews key global and regional trends and developments and makes recommendations on strategy and policy that are fed through to the EXCO, the SETS Committee and ultimately, to the Sappi Limited board of directors. The Group Head of Sustainability and Investor Relations and the Group Head Technology are responsible for coordinating actions related to the group's climate change-related risks and opportunities and providing reports to the EXCO to enable it to discharge its responsibility.

The GSDC meets quarterly and reviews progress against Thrive sustainability targets at each meeting. Additionally, other climate-related topics such as regulatory changes and trends, sustainable procurement, SBTi, TCFD, TNFD and forestry related issues are discussed at the majority of the meetings. All climate change-related matters of strategic importance are raised by the Group Head of Sustainability and Investor relations at EXCO meetings for input and guidance. Additionally, the progress against our science-based decarbonisation targets, regional climate transition action plans and capital allocation is reviewed in detail by EXCO annually with the budget setting programme.

The group's Regional Sustainability Councils (RSCs), in Europe, North America and South Africa, are responsible for establishing and implementing our on-the-ground sustainability strategy and action plans. Their work is overseen and reviewed by the GSDC.

Strategy

Sustainability forms the foundation of our Thrive strategy and is fully integrated into our operations where the primary focus is on the sustainable management of our operations, increasing efficiency and maximising value from our sustainable natural resources.

As we look to the future, it is clear we have an obligation to play a role beyond making and selling. Policy measures to enable the transition to low-carbon economies, with a general goal for net zero emissions of GHG by 2050 are being rolled out globally. The private sector has a key role to play in this just transition and in line with this obligation, we have set 2030 science-based decarbonisation targets.

The core principles of Sappi's climate strategy are aligned with the overarching Thrive strategy as outlined below. Furthermore, detailed strategic objectives and actions aligned with our climate transition plan are disclosed below.

Sappi's climate strategy

		Grow our business
		What it means			Climate relevancy
		Committing to core business segments while investing in innovation, growth opportunities and ongoing customer relationships			Purposeful innovation and collaboration to provide low-carbon, biobased solutions and accelerate climate action

		Sustain our financial health
		What it means			Climate relevancy
		Reducing and managing our debt, growing EBITDA, maximising product value, optimising processes globally and strategically disposing of non-core assets			Optimise allocation of capital for profitable growth while ensuring that it reduces our impact on climate change and positions us competitively for a low-carbon future

		Drive operational excellence
		What it means			Climate relevancy
		Strengthening our safety-first culture and reducing resource use while enhancing efficiency and making smart data investments			Continual focus on reducing our own and value-chain emissions; protecting biodiversity and promoting the responsible use of scarce water resources

		Enhance trust
		What it means			Climate relevancy
		Improving our understanding of, and proactively partnering with clients and communities, driving sustainability solutions, and meeting the changing needs of every employee at Sappi			Being a transparent, proactive and responsible company and partner with a long-term, solutions-oriented approach to address climate change mitigation, adaptation and resilience. Playing our part to ensure a socially inclusive just transition

Sappi's climate transition plan

Climate change risks have been identified as one of our strategic principal risks. The group's climate change related risks and opportunities are routinely considered in our strategic and financial planning, our capital allocation and our operational management decision-making processes.

In terms of climate-related risks, we recognise that our industry is energy intensive. In addition, our business is dependent on woodfibre and water, both of which are impacted by climate change. Against the backdrop of these transitional and physical risks, we have long recognised our responsibility to be part of the climate solution. We align with climate science and are taking focused action to future-proof our business against the physical and transitional impacts of climate change and be part of the solution. A significant portion of R&D is allocated to decarbonisation. We also focus on increasing pulp backward integration which brings renewable energy opportunities aligned with our strategy as well as fuel swaps and energy mix opportunities balanced with economics. In addition, our Future Energy Technologies and Decarbonisation cluster is exploring novel technologies for deep decarbonisation in terms of Scope 1 and 2 emissions, with a particular emphasis on technologies for renewable power generation, pulping, papermaking, bleaching and carbon capture.

Achieving our science-based decarbonisation trajectory will be a key enabler for future-proofing our business as we focus our growth strategy on circular, nature-based solutions for a low-carbon economy. In the long term, we anticipate that decarbonisation investments will reduce costs, spur innovation, provide resilience against regulation and boost investor confidence. We have developed a clear climate transition roadmap and capital allocation strategy to achieve our 2030 targets and we have also committed to using our influence to encourage our major suppliers to set their own science-based targets. The capital expenditure between FY2021 – 2030 required to achieve the targets is estimated to be in the region of US$60 to US$70 million per annum. Decarbonisation projects include process efficiency improvements, transitioning to low-carbon energy generation as well as upgrading of certain plants which allow for fuel switching from fossil to biogenic fuels and increased purchases of renewable energy.

We acknowledge that decarbonisation of our South African assets will be challenging. Our mills in this region are still reliant on coal-based power for a significant proportion of their energy requirements. The South African energy landscape is heavily dependent on coal, which is an abundant resource in the country. While Sappi has a relatively high level of renewable energy integration within the context of the region due to our black liquor and biomass fuel sources, we are not fully self-reliant. We thus need to purchase energy from the national utility provider, Eskom, which is predominantly based on coal. There is currently very little renewable energy available for purchase within the country and therefore our decarbonisation roadmap for the region assumes that we will have to invest in our own renewable energy assets. We are investigating opportunities for investment in solar, wind and biomass power assets. Furthermore, we are actively collaborating and exploring opportunities for purchasing renewable energy from new independent power producers that are being established within the country. Within the context of the national dependency on coal and high levels of unemployment and social inequality, we recognise that a just transition is critical for South Africa. We will therefore use our influence to collaborate with other business leaders, communities and Government stakeholders to advocate for a just transition where no-one is left behind.

Sappi's climate transition plan

Climate change is having a significant impact on our woodfibre supply. In both Europe and Southern Africa, the changing climate is impacting the health and resilience of the forests and plantations from which we source woodfibre. Increased drought, floods, wind, pest and disease outbreaks and wildfires are all accelerating forestry risks and could potentially significantly increase our wood costs.

Temperatures over the South African interior are projected to rise at about 1.5 to 2 times the global rate, with significant implications for our plantations. In addition to hotter, drier conditions, we expect shifting seasons with later summer rainfall, which will make our planting season shorter. We also anticipate that weather will become more extreme and that drought and floods, as well as wind, snow and hail will intensify. In response, we have developed climate smart forest management practices. Our Sappi Forests' scientists have developed high levels of expertise in assessing the impact of climate change on our plantations in South Africa. Their knowledge is supplemented by our strong partnership with the Global Change Institute (GCI) at the University of the Witwatersrand in Johannesburg. Recognising that there is a lack of data and expertise within South Africa for climate modelling, we launched the Sappi Chair in Climate Change and Plantation Sustainability at the University of the Witwatersrand in Johannesburg. The Research Chair will identify critical research needs and develop research outputs related to climate change and will also develop capacity in South Africa to manipulate and interpret climate modelling data. For more details see below.

Research and development (R&D) of genetically improved planting stock has been conducted at Sappi's Shaw Research Centre in Howick for over 25 years. Tree improvement is aimed at increasing pulp yield produced per hectare by testing various species and hybrids across Sappi's diverse landholdings. Besides growth improvements, trees are bred for superior wood properties and resistance to biotic and abiotic threats including frost, drought, pests and diseases. A broad genetic base, acquired over 25 years and a skilled breeding team exploiting new technologies are some of the assets of the programme. Nursery technologies research improve propagation techniques of elite genotypes. Land management and Pest and Disease Programmes conduct research on stress detection, climate change predictions, site classification to improve site-genotype matching, risk mapping, nutritional research, site resilience, biological control measures, national pest and disease surveys etc. In addition to these initiatives and programmes, we also maintain a solid base of permanent sample and long-term soil monitoring plots, with the plot coordinates stored on our GIS database. These help us to monitor climate change based on geology, temperature zone and water availability. This enables us to keep track of forest litter, soil physical and chemical properties, allowing for early detection of site changes.

In terms of climate-related opportunities, we recognise that our sector is uniquely positioned to produce circular and low-carbon products, which can offer consumers alternatives to fossil-based products. There is a significant opportunity for Sappi to accelerate the transition to the circular biobased economy our planet demands.

Through our continued focus on innovating packaging and speciality papers solutions, we remain committed to partnerships with customers, who are increasingly focused on the social and environmental credentials of our products. We are committed to embracing the circular economy using sustainable materials based on certified woodfibre and replacing fossil-based chemistry and to working on new technologies that support transformation in Sappi and across our value-chain partners to reduce GHG emissions. There is significant potential to expand and unlock revenue streams with our paper-based packaging solutions to replace petroleum-based packaging in many sectors including the food and beverage, cosmetics, pharmaceuticals and electronics industries.

The majority of dissolving pulp (DP) is consumed in the textile industry where pulp is converted through the value chain to yarn and ultimately textiles providing soft, breathable fabrics (eg, viscose and lyocell) which hold colour well and drape beautifully. The global textile fibre industry is facing unprecedented sustainability challenges. Issues such as a rising population, climate change, water scarcity, land use (food vs. fibre), deforestation and loss of biodiversity, plastic waste and marine pollution have combined to question the long-term credentials of the industry and its attempts to create a sustainable circular economy. Textile fibres derived from natural cellulose (DP) are therefore gaining interest and have been the fastest growing textile fibre over the last 10 years. With increasing concerns about microplastic pollution in the oceans, petroleum-based textile fibres will continue to come under pressure and cotton cannot expand its area any further, meaning cellulosic fibres remain at an advantage and their market share will continue to expand. Lyocell represents the next generation of cellulose textile fibres. With its sustainable DP raw material, reduced chemical processing and closed-loop systems, lyocell continues to be the most sustainable wood-based cellulosic fibre and is the fastest growing textile fibre group. Sappi is uniquely positioned as the world's largest non-integrated DP producer and largest supplier to the lyocell sector to benefit from the growth in cellulosic textiles.

Traditionally the papermaking process has only used approximately half of the raw wood material to manufacture pulp and paper products. The balance of the wood raw material is used to generate energy to power the mill or to sell into the electricity grid. Sappi is, however, developing new processes and biomaterials which extract more value from each tree and supports our business strategy to move into new and adjacent markets. Sappi's innovative technology enables us to derive specialty biobased chemicals from the parts of the tree which are not used for pulp and paper making. These high-performance products often displace non-sustainable petroleum-based alternatives. There is significant opportunity to unlock further revenue streams through commercialisation of these biomaterials.

Our Exciter R&D programme is fully aligned with our Thrive strategy. The focus of the projects, which are global and based on the OneSappi approach, has shifted to emphasise sustainability, together with a focus on our segments with significant growth opportunity ie, packaging and speciality papers, DP and biomaterials.

Our commitments to zero deforestation and wood sourcing from sustainably managed, healthy working forests with a high level of forestry certification enables us to offer products to our customers around the world that carry no risk of deforestation or forest degradation. Deforestation negatively impacts ecosystem services and climate. It also increases the transmission risk of zoonotic diseases. In addition to helping to respond to climate change and protect soils and water, forests hold more than three-quarters of the world's terrestrial biodiversity. This means that deforestation has serious negative impacts on biodiversity and climate change.

Trees and forests play an integral role in the global carbon cycle. Through sequestering carbon dioxide from the atmosphere and storing it in forest biomass and soils, forests store vast amounts of carbon and release oxygen back into the atmosphere. Recent studies point to the further contribution that trees and forests could deliver to mitigate climate change if afforestation, reforestation, and restoration efforts were scaled up substantially. Managing forests for wood production can help to maximise their contribution to carbon sequestration. Forest management practices which rely on scientific knowledge of silvicultural best practices applicable in respective vegetation zones, promote growth and carbon sequestration. In our plantations in South Africa and in the managed forests from which we source wood raw material, the cycle of regeneration, growing, thinning and harvesting is actively managed to enhance biodiversity, resilience, and maintain functional ecological condition.

The pulp and paper industry provides dependable markets for responsibly-grown woodfibre, thereby incentivising long-term forest management. This assurance of financial returns enables and encourages landowners to manage their forestlands as working forests, instead of selling the land for development or converting it to non-forest uses. Furthermore, the pulp and paper industry typically utilises different species and/or smaller diameter trees or portions of trees that are not desirable in the solid wood industry. By providing this market and revenue stream, the industry is supporting necessary holistic forest stand-improvement activities that are essential for maintaining and restoring forest health, species and age-class balance, wildlife habitat and biodiversity, wildfire mitigation and hazardous fuels reduction, watershed protection, soil conservation and carbon sequestration. By ensuring forests and plantations are sustainably managed through high levels of certification and prioritising traceability, we can help to combat climate change and enhance the ecosystems services that contribute to greater levels of economic and environmental wellbeing. Our opportunity is to invest in and promote healthy forests both for our benefit and the myriad of benefits they deliver to the planet.

There are many uncertainties around the potential impacts of climate change, and we therefore continue to enhance the quality of our scenario modelling to further understand these impacts.

In terms of physical climate risks, Sappi Forests has worked with the Global Change Institute (GCI) at the University of the Witwatersrand in Johannesburg and other industry members to identify six representative climate change models and downscaled these to local conditions at a finer resolution for years between 1960 and 2100. The data was processed to various beneficial data products to inform on a range of factors, including drought, heat and fire risk. Sappi further processed the forecast climate data in-house by algebraically adjusting the basic weather forecasts to a year 2,000 baseline.

To conduct physical climate change scenarios in our mills, we used Representative Concentration Pathways (RCPs):

• 2.5 (a low climate change scenario, involving aggressive mitigation actions to halve emissions by 2050)
• 4.5 (a moderate climate change scenario involving strong mitigation actions to reduce emissions to half of current levels by 2080)
• 8.5 (a high climate change scenario representing continuation of business as usual with emissions at current rates).

Climate transition risk is assessed in terms of scenarios involving nationally determined contributions (NDCs) and their associated time frames. Each country in which we have manufacturing operations, as well as the EU region, has submitted NDCs to the United Nations Framework Convention on Climate Change (UNFCCC). Various scenarios within the parameters of key regulatory developments are also assessed against the backdrop of various issues (for example: our own decarbonisation plans and possible carbon taxes to drive behavioural change; reputational impact if site emissions reduction plans do not align with the relevant NDC and market expectations).

We have also implemented an internal carbon price (within the capital evaluation process) to ensure that the impact of carbon for all large capital investments is understood. The internal carbon price is embedded in our cost calculations of capex and opex projects as a financial indicator.

Sappi's international revolving credit facility (RCF) of EUR515 million, which matures in 2027, is linked to the group's sustainable financing framework. The RCF is structured with a margin adjustment mechanism, linked to progress in achieving the framework KPIs. The framework defines four material sustainability KPIs and provides a basis for future KPI-linked credit and capital market activities of the group. The KPIs focus on specific GHG (Scope 1 and 2) emissions; certified fibre supplied to Sappi mills, solid waste to landfill the safety of our employees. This is an important strategic step for Sappi and supports our long-term vision to be a sustainable business and demonstrates that we are committed to delivering our ambitious sustainability strategy.

Risk management

Sappi has a well-established risk management process within a formal governance structure. The risk evaluation process is run annually, with comprehensive discussions which include climate change (led by regional risk managers) with each mill and central function. For climate-related risks and opportunities we have leveraged this process.

In addition, we have developed a unique approach where we incorporate historical experiences as identified by mill and forestry management teams in light of current short and medium-term predictions. This is supplemented by our environmental and legal teams' knowledge of emerging regulations and other transitional concerns.

This risk approach is supplemented by ongoing review of industry dynamics, particularly risks and opportunities related to single use plastics, lightweighting of products and the transition to a low-carbon economy. This work is captured by regular meetings with our customers together with our global R&D teams.

Once the risks have been identified by the working groups, they go through the review process of our risk governance structure. This begins with the Group Head: Technology, the Group Head: Sustainability and Investor Relations and the Global Risk Manager who review the work of the regional risk management leads in order to develop a consolidated view. A recommendation is then made to the two board committees, the SETS Committee and the ARC, both of which share responsibility for climate-related risks. These committees are responsible for overseeing Sappi's combined assurance framework, which also aims to optimise assurance coverage obtained from management, internal assurance providers and external assurance providers (globally: ISO 14 001, 9 0001 and forest certification; Europe and South Africa: ISO 50001 (energy management), Europe: EMAS), on the risk areas affecting the group, including climate change.

We have identified seven material physical risks associated with our South African plantations, mill operations and supply chains and one material transition risk. In terms of opportunities, we have identified two transitional opportunities and one operational opportunity. We define our timeframes for assessment as follows.

Timeframe:
Short term 1-2 years, Medium term 3-5 years, Long term 5-30 years

Sappi's climate-related physical risks

Metrics and targets

The United National Sustainable Development Goals (UN SDGs) inspire us all to strive for a better future, setting out a roadmap for where we collectively need to go and how to get there. We have identified seven priority goals at global level – and a further two in South Africa – where we believe we can make the most impact and where we are concentrating our efforts.

We use a variety of metrics to measure the current and potential impact of our climate change-related risks and opportunities including metrics related to GHG emissions, water use, forestry certification and biodiversity. Direct GHG emissions are from our energy plants through combustion of fuels to generate the power required for our manufacturing operations (Scope 1). We also purchase power from the grid (Scope 2) and have indirect GHG emissions throughout the value chain, mainly as a result of our purchase of raw materials, fuel and transportation, which make up the majority of our Scope 3 emissions. We are acting across all three Scopes and working closely with our partners to reduce GHG emissions for our business and our value chain. In 2022, our 2030 science-based decarbonisation targets, including a Scope 3 advocacy target, were approved by the SBTi. We remain committed to zero deforestation in our woodfibre supply chains and to maintaining carbon sinks in forestry through implementation of best forest management and silviculture practices.

Given the strategic importance of sustainability, the group's Executive Directors remuneration is linked to their contribution to the overall success of our Thrive strategy. Specifically, 6% of the short-term management incentive is directly linked to climate change through emission reduction, forestry certification and waste to landfill performance targets (MIS: sustainability = 30% of the 20% personal objectives). Additionally, in FY2023 we initiated a process to explore the inclusion of sustainability into the long-term incentives (PSP: proposal for 10% linked to performance against SBTi targets) and consultation with shareholders has so far been positive.

For further details on our remuneration policy, see our Remuneration Report.

Our performance against our global planet targets, which have an impact on climate change, is shown below.

FY2023 group performance against 2025 climate targets

FY2023 snapshot of Thrive (2025) and SBTi targets		Sappi KPI
Planet targets
Clean water and sanitation		Specific process water usage (SSA)
Renewable and clean energy		Share of renewable energy
		Specific energy intensity
Responsible consumption and production		Specific landfilled solid waste
Climate action		Specific GHG emission
Life on land		Share of certified fibre
		Biodiversity (SSA)
SBTi targets
Climate action		Scope 1 and 2
		Scope 3 engagement

For more details on performance against planet targets see our 2023 Sappi Group Sustainability Report.

Global targets for FY2023 for specific total energy, share of renewable and clean energy, specific GHG emissions and specific waste to landfill were not achieved. The primary reason for the poor performance against our targets is the high levels of production curtailment that was required during the year which significantly reduced the efficiency of our operations. Unstable stop/start operating conditions require more energy and produce more waste on an intensity basis (per ton of product). Additionally, in Europe and North America energy efficiency during the winter months was particularly poor due to the requirement to keep certain lines and parts of the plants heated during periods of curtailment to prevent freezing. The waste to landfill was also impacted by a number of 'once-off' issues in all three regions. These included; Matane Mill instability in the anaerobic reactor in the water treatment system which required sludge disposal, Kirkniemi Mill decarbonisation project where some soil was removed from the site, Ngodwana Mill increase in sludge landfilled from the cleaning of emergency dams, Stanger Mill disposal of building rubble from the black liquor tank project.

Specific water usage is a SSA specific target. The target was not achieved due to incidences of unstable operating conditions and product quality challenges which required additional water usage as well as lower production volumes than planned for FY2023. The global certified fibre target >75% and biodiversity in Sappi Forests conservation areas was achieved.

The FY2023 Scope 1 and 2 emissions intensity of 0.94 tons CO₂/adt was substantially above our SBTi trajectory and is indicative of the very challenging year from a production curtailment and energy inefficiency perspective. Absolute Scope 1 and Scope 2 emissions were however below the prior year due to the lower operating rates. In terms of our engagement target for Scope 3 to have 44% of our suppliers by spend with science-based targets, globally we achieved 21% with each region achieving the following. SEU 25%, SNA 18%, SSA 15%. In FY2024 we will launch a focused Scope 3 engagement initiative through the efforts of our Sustainable Procurement Steering Committee with a targeted questionnaire to suppliers.

FY2023 GHG emissions data and five-year trend

Despite the poor emission performance in FY2023 we remain confident that the decarbonisation capital projects in our climate transition plan and a return to full operating rates will allow us to achieve our Thrive (2025) targets and SBTi (2030) target.

In 2023 we engaged KPMG to perform limited assurance on the following planet variables:

• Scope 1 and 2 GHG emissions
• Solid waste to landfill
• Certified fibre
• Water usage (SSA only).

Looking forward

A number of physical and transitional risks and opportunities have been identified related to climate change and we continue to monitor developments with respect to legislation, markets, technology and disclosure requirements.

Further climate-related scenario analysis for both physical and transitional impacts will be undertaken in FY2024. Risks, opportunities and financial impacts will continue to be refined.

We believe that we have the right strategy to address the risks and opportunities arising from climate change and will continuously enhance our scenario modelling to expand our thinking and ensure that our strategy and transition plan remains resilient.