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Our key material issues are those that we believe underpin our strategic risks and opportunities and have the highest potential impact – negative and positive – on stakeholder value.
Below is a summary of why we believe these issues are material to Sappi, both in financial and impact terms, as well as their links to other aspects of our business, FY2024 highlights and the developments that present opportunities for value creation.
Click below for more detail
Principles |
Our strong ethical culture underpins our reputation, built up over many years. However, just one breach of ethics could destroy our reputation, jeopardise our licence to operate and negatively erode stakeholder value. Accordingly, we place a high premium on adherence to ethical behaviour as encapsulated in our Code of Ethics.
As an organisation with a large manufacturing and forestry footprint, our potential impact on the environment and communities surrounding our operations is material. Sappi’s objective is to be a ‘trusted partner to all our stakeholders’. We cannot achieve this unless we all ‘live’ our values of integrity and courage and act when these values are threatened. In doing so, we protect the viability of our business and the interest of all our stakeholders.
4Sustainability expectations
5Supply chain disruption
6Evolving technologies and consumer preferences
6Uncertain and evolving regulatory landscape
Employees signing the Sappi Code of Ethics pledge.
We constantly strive to enhance all our policies, including those relevant to our ethical standards. In 2024, we launched awareness campaigns for our updated group whistle-blowing policy that was carefully reviewed to align with the latest global standards and best practices. The campaign included communication for a separate SEU whistle-blower policy that was adopted in line with the requirements of the EU whistle-blower directive. In addition, we created awareness for a new group anti-retaliation policy that complements and enhances our ethical standards.
To commemorate Global Ethics Day in 2024, all employees and board members were invited to sign a pledge to reinforce their loyalty to Sappi’s Code of Ethics. During this period, our activities emphasised the value of integrity and making smart decisions. By watching the video ‘Moment of truth’, for example, employees learned how to make the right ethical decisions in a dilemma.
With over 20,000 suppliers, maintaining a well-organised supply chain is integral to our business and key to meeting our strategic pillars which include growing our business, sustaining our financial health and driving operational excellence. It also underpins our licence to operate.
In today’s environmentally and socially conscious world, ethical supply chains are a key concern. We are enhancing trust – the fourth pillar of our strategy – and working towards our vision of a thriving world by avoiding negative sourcing impacts, giving our customers and consumers transparent insight into our supply chain and collaborating with our suppliers to promote responsible business.
4Sustainability expectations
5Supply chain disruption
6Evolving technologies and consumer preferences
Scope 3 emissions, the indirect emissions across a company’s value chain, pose a global challenge due to the accounting complexity and the need for accurate exchange of product level primary emissions data between a wide array of stakeholders. At Sappi, engaging with Tier 1 raw material suppliers on greenhouse gas (GHG) emissions is a critical step towards not only quantifying these emissions but also gaining a deeper understanding of the overall carbon footprint of our products. This collaboration goes beyond accounting; it has provided an opportunity for us to exchange with our suppliers about climate action and decarbonisation progress. It supports our ability to identify where hard-to-abate emissions lie and uncover opportunities for value chain abatement. By working together with our suppliers, we learn about their product and process innovations that can support the CO2 reduction of our products and sector more broadly. Working across our value chain ensures that we address immediate and long-term sustainability challenges, identify opportunities, and create a resilient and sustainable value chain.
1 Eligible spend excludes internal spend categories, taxes, rebates and in North America purchases from private wood landowners and payments to union pension funds.
2 Eligible spend excludes internal spend categories, taxes, rebates and in North America purchases from private wood landowners and payments to union pension funds, as well as spend with government organisations and Enterprise and Supplier Development (ESD) suppliers in South Africa.
Prosperity |
Amid ongoing uncertainties and challenges in the macroeconomic and market environment for the paper and pulp industry, technological investments, R&D and innovation, agility and operational efficiency are key enablers to Sappi’s competitiveness and ability to drive positive sustainable outcomes for customers and downstream sectors.
Operational efficiency minimises waste and optimises resource use, leading to improved productivity and lower costs – critical for sustaining our competitive cost position. Meanwhile, continuous innovation enables Sappi to respond to changing consumer preferences, develop new products, enter emerging markets and create additional revenue streams. Together, operational efficiency and innovation strengthen Sappi’s ability to adapt to market dynamics, ensuring sustainable growth and profitability in both the short and long term.
Improving operational efficiencies and driving innovation in circular products delivers environmental, social and economic benefits. Reducing energy consumption, increasing renewable energy use, and minimising waste, not only lower carbon footprints but also support ecosystem health and resource conservation. Circular innovations, such as biobased products, extend product lifecycles, enhance recyclability and reduce reliance on fossil fuels. These efforts align with consumer demand for sustainable solutions, foster industry collaboration, and promote a resilient, low-carbon economy while creating shared value for society and the environment.
4Sustainability expectations
5Supply chain disruption
6Evolving technologies and consumer preferences
7Climate change
10Liquidity
Using AI to help demystify Packaging and Packaging Waste Regulation (PPWR)
Sappi Europe’s customer experience team developed a chatbot to assist users in navigating the complexities of the EU’s PPWR. The tool is built on advanced GenAI technology with input from Sappi experts. It significantly reduces the time users spend searching for information in lengthy documents. Over the coming months, the chatbot will undergo further enhancements to ensure it becomes accessible to external users and can be expanded to include additional legislation, such as the European Deforestation Regulation (EUDR).
Aligned with our Thrive strategy, we design product solutions based on circular principles that reduce environmental impact while meeting evolving consumer preferences and regulatory requirements for eco-friendly alternatives. As sustainability becomes a greater priority across our value chains, the demand for renewable, recyclable and biodegradable products continues to grow. This shift generates sustainable revenue opportunities while mitigating risks linked to regulatory compliance and resource scarcity. Moreover, circular bio-economy solutions strengthen brand value and customer loyalty, positioning Sappi for long-term growth and driving operational efficiencies through circular practices.
By offering sustainable circular solutions that harness the value of renewable woodfibre, we support society’s broader shift toward realising key circular economy principles. Our products enable value chains to reduce reliance on fossil-based materials, lower carbon footprints and improve recyclability or biodegradability. Through integration into circular systems, we help minimise waste, promote a healthier planet, and regenerate natural systems in a financially sustainable way, while also meeting the needs of environmentally conscious consumers.
2Cyclical macroeconomic factors
4Sustainability expectations
6Evolving technologies and consumer preferences
7Climate change
10Liquidity
By harnessing renewable woodfibre and integrating sustainable practices throughout our operations, Sappi is dedicated to advancing the circular bio-economy. We emphasise the holistic use of the entire tree, ensuring that every component is maximised, including residues and byproducts, which are transformed into innovative value-added products. Our diverse offerings – including paper and packaging solutions, Verve dissolving wood pulp, and biomaterials – reflect our commitment to sustainability. By collaborating with value chain partners and embedding circular principles into our processes, we play a crucial role in propelling the transition toward a more sustainable and regenerative economy, ultimately fostering a healthier planet for future generations.
The world is awakening to the power of sustainable materials and technologies. As awareness of our environmental impact grows, so does the demand for eco-friendly textiles, hygiene products and biodegradable materials. Government regulations are stepping up to promote sustainability; for instance, by creating fertile ground for the rise of sustainable wood-based fibres in the textile and non-woven sectors. The opportunity here lies in participating in a fashion value chain that minimises reliance on fossil fuels, tackles microplastic pollution, and embraces materials that naturally biodegrade, reducing our environmental footprint. Wood-based fabrics offer all this and more. They are soft, breathable and durable, making them an excellent alternative to cotton. Plus, they provide a higher yarn yield per hectare of land compared to cotton, making them a smart choice for the future. Our forestry supply chains are deforestation-free and in South Africa our forestry operations have a profound social impact on the rural communities where we operate. This makes Verve the fibre of choice for customers and brand partners committed to sustainable fashion. Together, we can weave a future that is not only stylish but also kind to our planet. This ambition and our ability to collaborate and deliver beautiful, sustainable solutions for a circular economy applies to innumerable sectors.
Our commitment to our Thrive strategy and delivering value to our stakeholders drives us forward. It is thus heartening when our efforts are recognised externally. Sappi inclusion in the World’s Best Companies (2024) is based on information including employee-satisfaction surveys, revenue growth and environmental, social and corporate governance data.
Read the story www.time.com/collection/worlds-best-companies-2024/
People |
Entrenching a strong safety culture is the moral responsibility of every employer. It also just makes good financial sense. If a worker is injured on the job, it costs the company in terms of lost working hours, increased insurance costs, worker compensation premiums and legal costs.
Productivity and morale suffer when workplaces are unsafe. When a workplace is safe, employees feel more engaged and connected with the company. We strive to ensure that all our people have a 24/7 safety mindset, inculcating this through various initiatives and leading by example.
1Safety
9Employee relations
Following the tragic fatality in our forestry operations we have engaged Wiremu Lee Edmonds to assist Sappi Southern Africa and our contractors in further embedding a safety culture in our operations. Along with his wife Marcella, he led a session for leadership teams entitled ‘Standing in the Gap’. This initiative emerged from the profound loss of their 23-year-old son, Robert, a fifth-generation forester, who tragically died in a logging incident.
The session focused on instilling values, principles and behaviours among supervisors and leadership to combat the tendency for people to take shortcuts and engage in risky practices. Wiremu and Marcella also presented at the SSA Safety Awards in 2024 and facilitated a series of small group sessions with operational leaders, contract owners, managers and supervisors involved in high-risk operations such as chainsaw felling and yarding. This effort complements our 'Stop and Think Before You Act' programme, which was developed to address the 10 reasons why people take risks.
Sappi group – LTIFR and LTISR combined
Note: We calculate LTIFR by dividing the product of lost-time injuries and a group-wide standard for work hours by the unit’s work hours, ie LTIFR = LTI* 200,000/units actual work hours. LTISR is the lost-time injury severity rating and in a similar manner to the frequency rate, is calculated by dividing the product of the number of days lost to the injury and the group-wide standard hours by the unit’s man hours, ie LTISR = Number of days lost* 200,000/actual man hours.
Companies that are diverse, equitable and inclusive can better respond to challenges, win top talent, and meet the needs of different customer bases. Accordingly, we strive to create a diverse, inclusive working environment that establishes a sense of belonging and a shared sense of purpose among employees.
In addition, we encourage and support our people to upgrade their job-related skills and knowledge to improve their job performance and abilities for future career growth. Our approach is an expression of our strategic pillar of ‘enhancing trust’ and leads to greater levels of retention, connection and productivity that translates directly into improved performance and stronger business results.
Developing potential in a diverse, inclusive working environment is important for business performance and individual wellbeing. A workplace that encourages people to reach their full potential is more productive and ensures that employees remain engaged and fulfilled in the long term.
9Employee relations
After analysing our 2023 results, all Sappi leadership programmes were refreshed in 2024 to focus more on improving management’s ability to build productive relationships in teams. We are now encouraging leaders at all levels to:
To enable direct communication with shop floor employees, Sappi partnered with Staffbase, an application that specialises in communication with non-email workers. The app, branded SappiConnect, was launched to 5,012 employees in 11 locations so far. Of this group, 2,527 employees have registered as users and more than 1,100 are actively using the app every week. In 2025, we aspire to reach 80% participation.
Sappi works to uplift women in both our workplaces and communities. Our remarkable progress was recognised in 2024 when Forbes recognised Sappi as a top global company for women. In seventh place, Sappi is now firmly among the likes of the most progressive Fortune 100 companies in the world. Rankings are based on employee surveys with a combination of brand, public opinion and leadership scores.
We are incredibly proud of this recognition which stands as a powerful testament to our commitment to foster an inclusive workplace where women can thrive and succeed. It validates our efforts to recognise the critical role that women play in our industry, retain and attract the best talent, implement our Thrive strategy, and continuously enhance our gender, diversity and inclusion performance.
Read the story www.forbes.com/lists/top-companies-women
| Rank | Name | Industries | Country/territory | Employees | ||||||
| 1 | Hilton Worldwide Holdings | Hotels | United States | 45,000 | ||||||
| 2 | MAIF | Insurance | France | 8,000 | ||||||
| 3 | Douglas | Retail and Wholesale | Germany | 18,000 | ||||||
| 4 | Virgin Group | Business Services & Supplies | United Kingdom | 60,000 | ||||||
| 5 | Netflix | Media & Advertising | United States | 13,000 | ||||||
| 6 | Rio Tinto | Construction, Chemicals, Raw Materials | United Kingdom | 15,000 | ||||||
| 7 | Sappi | Construction, Chemicals, Raw Materials | South Africa | 11,600 | ||||||
| 8 | Microsoft | IT Software & Services | United States | 221,000 | ||||||
| 9 | Generali Group | Insurance | Italy | 82,000 | ||||||
| 10 | Deloitte | Professional Services | United Kingdom | 457,000 |
This award builds on the recognition by Forbes, which includes Sappi as one of their World’s Best Employers for 2024. Refer to our 2024 Sappi Group Sustainability Report for more detail.
Sound labour relations based on trust – one of our strategic fundamentals – are important to maintaining the smooth running of our operations and reputation, as well as enhancing productivity. These factors, in turn, drive financial value.
Effective communication underpins sound labour relations. Understanding of Sappi’s strategic direction and purpose helps to elevate engagement, while transparent, constructive discussions related to issues, opportunities and challenges reduce the possibility of conflict and help create a positive working environment.
1Safety
2Cyclical macroeconomic factors
9Employee relations
The labour market has become very competitive in all regions. The healthy relationships we have established with organised labour help to ensure retention of critical technical skills.
Our focus on profit with purpose is aligned with our vision of a thriving world. It drives us in our creation of economic value for Sappi and value for society.
By investing in communities, we promote socioeconomic growth and establish mutually beneficial relationships.
2Cyclical macroeconomic factors
9Employee relations
Our sustainable procurement actions through our dedicated ESD programme look to teach and support suppliers to understand what sustainability is, what actions they can take and how we can work together to make a difference. One powerful example of this partnership is our work with the Ngodwana Nursery, which supplies more than 17 million seedlings and cuttings to Sappi Forests in South African and other customers annually. The nursery was strategically chosen as the location for an innovative aquaponics project that is bridging the youth unemployment gap and providing food security in the area. The project shows what is possible when we work together across the value chain, including with suppliers, to create shared value for communities.
Planet |
Securing a dependable supply of sustainably sourced woodfibre is core to our operations and our business strategy. We are committed to providing our global customers with products free from the risk of deforestation or forest degradation. Furthermore, the pulp and paper industry incentivise long-term forest management by providing markets for responsibly grown wood.
We manage our forests and plantations sustainably with robust certification standards and a focus on traceability. Our actions help to mitigate climate change, safeguard biodiversity and bolster other ecosystem services that support economic, social and environmental wellbeing.
4Sustainability expectations
6Evolving technologies and consumer preferences
7Climate change
Sappi, alongside several other PEFC International stakeholder members, has supported PEFC International in launching a study to assess the impact of PEFC sustainable forest management (SFM) certification in Europe. The project aims to produce scientific evidence of the impact of PEFC SFM certification compared to non-certified forests. The European Forest Institute (EFI) has been appointed to undertake the project. The project has two stages: a desk study and a field verification.
In 2024, the desk study screened existing impact assessment studies, with the findings showing that most European studies linked to SFM impact focused on the economic impact rather than the ecological or social impact. Based on that information, the Sustainability Impact Assessment (SIA) methodology was developed, selecting relevant indicators that would be applicable and representative of European forestry. The field verification stage, currently ongoing, will use these indicators to assess the impact of PEFC SFM certification. The study’s results are expected in 2025.
We recognise that climate change is financially material to our operations and our value chains. The effects of climate change, including extreme weather events and shifting climatic conditions, can significantly impact the health and availability of the forests that provide our raw materials. This not only affects our supply chain but also increases operational costs as we adapt to these changes. Additionally, as stakeholders increasingly demand sustainable practices, our ability to maintain market access and uphold our brand reputation relies on our commitment to environmental stewardship.
We are also aware that evolving regulatory frameworks aimed at combatting climate change will impose new compliance costs and operational requirements. The transition towards a low-carbon future necessitates the availability of advanced technology, renewable energy sources and significant investment. Furthermore, we understand that the financial impact of climate change on our business, stemming from both physical and transitional risks, must be continually assessed, mitigated and adapted to. Therefore, proactively addressing climate change is essential to ensure our long-term financial stability and resilience, allowing us to continue delivering value to our customers, shareholders and communities.
As identified by the United Nations, fossil fuels are the largest contributor to global climate change, responsible for over 75% of global GHG emissions and 90% of carbon dioxide emissions. In response, Sappi is dedicated to reducing our reliance on fossil fuels and lowering the emission intensity of our products. By actively contributing to climate change mitigation, we aim to alleviate the negative impacts on ecosystems, water resources, biodiversity and human health.
Failure to take decisive action could have profound environmental and social repercussions, including the degradation of vital ecosystems, loss of biodiversity and increased frequency of extreme weather events. These changes not only threaten the health of our planet but also endanger the livelihoods of communities that depend on natural resources. The ramifications of inaction could lead to heightened resource scarcity, social inequality and increased health risks for vulnerable populations, underscoring the urgent need for Sappi to play its part in climate action.
4Sustainability expectations
6Evolving technologies and consumer preferences
7Climate change
In April 2024, Steve Binnie and 80 Chief Executives from leading companies and civil society organisations and three UN agencies, united in their support of a two-year extension of the Business Commission to Tackle Inequality (BCTI). Sappi recognises the need to collaborate as broadly as possible to deepen corporate accountability for inclusive, equitable markets and deliver a just transition to a net-zero, nature-positive economy. BCTI is designed to accelerate the 2030 agenda in the run-up to COP30 in Brazil. With 55 corporate and 28 non-private sector leaders as members, BCTI will focus on transforming organisations and value chains while addressing market-level roadblocks.
Specific GHG emissions (Scope 1 and 2) (kg CO2e/adt)
Direct emissions (Scope 1) (kg CO2e/adt)
Indirect emissions (Scope 2) (kg CO2e/adt)
A global decrease in Scope 1 direct emissions was observed, driven by various region-specific initiatives and improvements aimed at reducing fossil fuel consumption and enhancing energy efficiency. In SEU, the decrease was primarily attributed to Kirkniemi Mill’s transition to biomass as a fuel source. This shift not only reduced reliance on fossil fuels but also significantly improved the facility’s overall emissions performance. The closure of Lanaken and Stockstadt Mills further contributed to the reduction, as both mills had historically relied heavily on fossil fuels, and their closure eliminated the associated emissions. In SNA, there was a slight decrease due to improved operational efficiencies across several mills. At Cloquet, Matane and Westbrook Mills, reductions in specific emissions were largely driven by decreased market downtime, which allowed for more stable operations and enhanced process efficiencies. Cloquet Mill, in particular, achieved a reduction in absolute Scope 1 emissions due to a shift from natural gas to increased biomass usage in the boilers. At Somerset Mill, however, Scope 1 emissions increased slightly due to higher natural gas consumption during a cold mill outage and other process disruptions. Despite this, improvements at other facilities helped mitigate the overall impact, leading to a net reduction in the region’s Scope 1 emissions. In SSA, there was a slight decrease. Saiccor Mill consumed less coal and heavy fuel oil (HFO) due to better boiler availability and increased use of renewable energy sources (black liquor and alternative biomass). Stanger Mill experienced a reduction in steam demand, which led to lower coal usage, primarily due to an extended off-crop bagasse season. Lomati Mill consumed less diesel for on-site transportation, contributing to overall emissions reductions. Tugela Mill’s improved efficiency was evident through a better steam-to-coal ratio in high-pressure boilers and reduced gas usage in low-pressure boilers, thanks to less downtime on the high-pressure boilers.
Globally, there was a decrease in Scope 2 indirect emissions, reflecting significant steps taken across regions to reduce reliance on purchased power and increased renewable and self-generated energy sources. In SEU, the decrease was largely driven by Kirkniemi Mill’s switch to cleaner, purchased power, which significantly lowered Scope 2 emissions. In SNA, improvements in Scope 2 emissions were achieved through a combination of reduced purchased power at Cloquet Mill and the increased purchase of renewable energy certificates (RECs) at Somerset Mill. In SSA, a decrease was observed across several facilities. Ngodwana Mill’s decision to discontinue the sale of RECs, allowed the facility to use more of its internally produced renewable energy, thereby decreasing reliance on purchased power. Tugela Mill enhanced its power self-sufficiency, further reducing its dependence on purchased electricity. Additionally, Saiccor Mill’s higher production levels increased the availability of black liquor, a renewable byproduct used for internal power generation, which reduced the need for externally sourced power.
Water is essential to all life, and it is equally crucial to our business. It nourishes trees, aids in pulp and paper production and generates steam power in our mills. Recognising that water stewardship is not just an operational necessity but integral to our long-term strategic objectives, all our mills use and treat water according to comprehensive environmental permits, essential for growing our business and sustaining our financial health. We embed operational excellence in our environmental water management plans for our manufacturing business and for our plantation forestry and nurseries. We incorporate water-related risks, both internal and external, along with climate change trends, into our operational and capital expenditure plans to ensure sustainable practices, that are reviewed and updated annually.
Currently, roughly half of the world’s population experiences severe water scarcity for at least some part of the year, as climate change continues to disrupt natural rain cycles through rising global temperatures. Water-related hazards such as droughts and floods impact socioeconomic growth, food security and public health, highlighting the urgent need for sustainable water management. Recognising water as a finite and essential resource for our operations, we are committed to conserving water and enhancing the efficiency of our pulp and papermaking processes. This involves extensive recycling within these processes and improving the quality of the wastewater we discharge.
4Sustainability expectations
6Evolving technologies and consumer preferences
7Climate change
Wetlands offset initiative
Sappi’s Comrie Dam, near Bulwer in KwaZulu-Natal, was upgraded to boost storage capacity and ensure water security for Saiccor Mill during dry seasons. This upgrade caused the inundation of upstream wetlands, requiring offsite mitigation to ensure there is no net loss of functional wetland habitat. To address this, suitable wetland sites within Sappi’s landholdings were identified for restoration.
The completed Comrie Dam expansion resulted in the loss of 29.4 hectare-equivalents of functional wetland. To offset this impact, we set a target to restore 29.4 hectare-equivalents of wetland functionality and 117.0 hectare-equivalents of ecosystem conservation. Wetlands on the Clan and Shafton plantations were selected to meet these restoration goals. Detailed restoration plans have been developed and are being implemented in phases, starting with the Lion’s River and Shafton wetlands, to restore ecological and hydrological functions and enhance ecosystem services. By slowing down and redistributing the flow of water, this intervention helps to maintain the ecological balance but also enhances the overall health of the ecosystem, providing critical habitat for various species and improving water quality. The phased restoration approach ensures that we can monitor and adapt our strategies to maximise these benefits.
Wetland restoration work in progress.
Wetland restoration interventions at Lion's River wetland before and after heavy rainfall and snow during September 2024.
The wetland restoration intervention is effective at slowing down and redistributing the flow of water.
By adopting a more resource-efficient, responsible consumption and production model, we can keep raw materials in production cycles for longer and reduce waste. Our strategic focus on minimising waste lowers disposal costs and creates opportunities for value-added beneficiation of waste byproducts. The economic benefits of this approach are clear: resource efficiency and waste reduction decrease operational costs, extend product lifecycles, and strengthen resilience against supply chain volatility – all while supporting environmental goals.
Minimising waste and promoting the sustainable use of resources through smarter production processes and innovative waste reduction strategies can drive significant positive impacts on both environment and society. By reducing waste, we cut down on emissions and lower pressures on ecosystems, actively addressing urgent challenges like climate change and biodiversity loss. Moreover, when waste is transformed through beneficiation, it creates shared value by generating new economic opportunities, supporting local communities and fostering inclusive job creation. This approach benefits not only the planet but also people, empowering sustainable development that serves both environmental health and social wellbeing.
4Sustainability expectations
6Evolving technologies and consumer preferences
7Climate change
Sappi’s collaboration with Stellenbosch University (SU), the Paper Manufacturers Association of South Africa (PAMSA), and Mpact (one of the largest paper recycling companies in South Africa) represents a breakthrough opportunity for value creation by converting cellulose fibre-rich waste from pulp and paper mill operations into ethanol through a specialised fermentation process. This innovative approach transforms paper sludge – a high-moisture byproduct collected from paper mill wastewater systems – into bioethanol, a versatile substance used in producing industrial chemicals, biobased plastics, and sustainable aviation fuel. A demonstration plant has been commissioned at Sappi’s Tugela Mill to provide proof of concept and develop the business case. The project, which was showcased to government officials, media, and industry partners at Sappi’s Tugela Mill on 24 April 2024, not only advances Sappi’s waste beneficiation efforts but also has the potential to add significant value to both the company and the broader economy.
This solution is uniquely resource-efficient, as SU research confirms that paper sludge, food, and textile waste require no pre-treatment before fermentation. By converting these waste streams into bioethanol, this technology has the potential to reduce waste-to-landfill, decrease GHG emissions and enhance water reclamation for reuse, further aligning with circular economy principles and advancing industrial decarbonisation. The bioethanol produced through this process can potentially command premium prices in global markets, reflecting its sustainability credentials and economic promise. Beyond revenue generation, the project also offers future sustainable employment, regional economic growth, and upskilling opportunities for the surrounding communities, cementing Sappi’s role as a leader in sustainable development.
This initiative also highlights the impact of partnerships and pioneering technologies in driving economic reconstruction through circular economy practices and modernising manufacturing. Globally, waste-derived bioethanol is celebrated for its environmental benefits, including attractive GHG reduction credits from avoided landfill emissions and the displacement of fossil fuels. With this demonstration plant in operation for a nine-month period at Tugela Mill, Sappi underscores the power of innovation to unlock economic, environmental, and social value through sustainable production.
Given our dependence on wood, a naturally occurring resource influenced by ecosystem health, it follows that maintaining healthy ecosystems will cushion us from financial risks. We consider this a strategic risk management priority and believe that with the right focus and emphasis in our business, it offers us a competitive and commercial advantage.
Worldwide, people rely heavily on nature’s ecosystem services. From pollination, crucial for crop production; carbon sequestration, mitigating climate change; erosion control, preventing soil degradation; flood and storm protection; disease control; and maintaining soil quality for sustainable agriculture, ecosystem services are vital for human health and survival, providing essential resources such as freshwater, food and fuel. Maintaining and protecting these services is not only an environmental priority but a socioeconomic necessity.
4Sustainability expectations
7Climate change
The Global Reporting Initiative (GRI) introduced the Biodiversity Reporting Standard (GRI 101), effective from January 2026, to help organisations voluntarily disclose their biodiversity-related impacts and management approaches. In preparation for the new disclosures, Sappi has integrated the mitigation hierarchy into our impact assessments, emphasising avoidance, minimisation, restoration, and offsetting of environmental impacts, weaving these principles into all aspects of our work, including introducing transformative measures.
Avoidance: Sappi prevents impacts by carefully planning infrastructure placement, particularly in high-conservation-value areas and riparian buffer zones. We use a systematic conservation approach, supported by national legislation (National Water Act, National Environmental Management Act) and certification requirements (FSC and PEFC), to protect areas based on their conservation value. Sappi designates its land into three conservation categories: open areas, important conservation areas (ICAs), and nature reserves. Open areas are for general conservation with some sustainable use allowed. ICAs hold significant ecological value, such as habitats for threatened species or ecosystems providing essential services and are more strictly managed. Nature reserves are the highest level of conservation, formally protected by South Africa’s legal framework, and home to highly sensitive or rare ecosystems and species critical to biodiversity.
Minimisation: We reduce the duration, intensity and extent of unavoidable impacts through detailed impact assessments and adaptive practices. These assessments evaluate the potential effects of forestry activities, such as planting, harvesting, and road construction, on the environment, biodiversity, water resources and surrounding communities. Early risk identification allows us to adapt practices to mitigate negative outcomes and comply with environmental regulations and certification standards. For example, we plan harvesting activities to minimise soil erosion and use mulching to preserve soil health, reduce fuel loads, regulate soil temperature and conserve moisture conservation.
Restoration: Sappi rehabilitates degraded ecosystems and restores cleared areas. Our efforts include increasing weed control, improving stream flow, and preventing overgrazing. In 2024, we achieved a 13% improvement in biodiversity, equivalent to 1,368 Condition-Adjusted hectares.
Offsetting: When on-site mitigation is not possible, we compensate for impacts by restoring or conserving habitats elsewhere. For instance, the Comrie Dam upgrade led to the restoration of 29.4 hectares of wetlands on our plantations. See above for more information.
Transformative actions: Transformative actions include addressing the drivers of biodiversity loss through technological, economic, institutional and social factors, emphasising the importance of underlying values and behavioural changes. Sappi supports sustainable forestry practices through the certification of community growers under FSC and PEFC standards. See above for more information. Through Sappi Khulisa over 37,000 hectares have been transformed into sustainably managed plantations, enhancing biodiversity and responsible land use.
