Sappi reports: Showcasing innovation in business resilience and sustainability

Steve Binnie, chief executive officer of Sappi Limited, said: "Our Thrive vision and values drive everything we do at Sappi. We are deeply committed to building a resilient bio-based circular economy, fostering a thriving environment, and promoting equitable societies. I encourage stakeholders to explore our annual and Sustainability Reports, which highlight how our business and sustainability strategies came to life over the past financial year. Together, we look forward to sustaining this positive momentum."

Key highlights from FY2024:

• Performance:

  • Profitability improved steadily through the year and ultimately performance exceeded our expectations against the backdrop of a subdued macroeconomic environment, ongoing low consumer confidence, and persistent geopolitical uncertainty.
    
  • A key highlight was the pulp segment’s exceptional performance, fuelled by strong demand for our Verve dissolving wood pulp products.
    
  • The closure of two European paper mills and the conversion and expansion of the Somerset Mill paper machine (PM2) from graphic paper to paperboard will yield substantial benefits in coming years.
    
  • Deleveraging of our balance sheet remains a top priority for the business and with our healthy liquidity we are well-positioned to navigate any market challenges in the coming year.

• Sustainability leadership:

  • Surpassed targets for woodfibre certification, biodiversity enhancement within forestry landholdings, and global waste-to-landfill reduction.
    
  • Advanced decarbonisation through innovative solutions, including biomass utilisation, electrification initiatives across Sappi Europe, and a Power Purchase Agreement with Enpower Trading in South Africa.
    
  • Notably, Sappi North America achieved 78% renewable energy usage.

• Innovative product development:

  • Made excellent progress on conversion and expansion of Somerset PM2 from graphic paper to paperboard. Project is on track for commissioning in 2025.
    
  • The adoption of traceable, sustainable and circular fabrics is a key priority for the fashion value chain and for our brand and retail partners. In a first for South Africa, Sappi and one of our key customers, Birla Cellulosics, partnered with local retailers The Foschini Group, Mr Price, and Woolworths to enable use of sustainable viscose fabrics made from Verve and cotton waste.
    
  • Released seven new products with sustainability benefits, including new packaging and speciality papers as well as biomaterial products.

• Social impact and inclusion:

  • Improved safety performance, with consistent reductions in lost-time injury frequency rates across all regions.
    
  • Recognised as a top employer, ranking 7th globally in Forbes magazine’s World’s Best Companies for Women rankings.
    
  • Invested over R372m (approximately $20m) in South African SMEs through that region’s Enterprise and Supplier Development Programme, exceeding targets and sustaining 1,502 jobs.

• Environmental stewardship:

  • Maintained 63% self-sufficiency in woodfibre through plantations in South Africa, complemented by progress in the PEFC-endorsed South African Forestry Assurance Scheme.
    
  • Expanded the Rare, Threatened, and Endangered Species Stewardship Programme, documenting over 200 species in KwaZulu-Natal and Mpumalanga.

Sappi Limited is a leading global provider of sustainable woodfibre-based solutions, including packaging, specialty papers, dissolving pulp, and biomaterials. With a steadfast commitment to innovation and sustainability, Sappi continues to create value for its stakeholders while contributing to a thriving planet and equitable societies.