DESPITE navigating ongoing global macroeconomic challenges, Sappi achieved milestones that reinforce its leadership in business resilience and sustainability. This was borne out in the global woodfibre group’s FY2024 Global Annual Integrated and Sustainability Reports.
The reports underscore the company’s commitment to delivering holistic value through its ‘Thrive’ strategy across its core priorities: prosperity, people, and planet.
Key highlights of the FY2024 reports with a strong KwaZulu-Natal contribution include the pulp segment’s exceptional performance, fuelled by strong demand for Sappi’s Verve dissolving wood pulp products in the performance category.
Under innovative product development, the report highlights the adoption of traceable, sustainable and circular fabrics as a key priority for the fashion value chain and for Sappi’s brand and retail partners. In a first for South Africa, Sappi and one of its key customers, Birla Cellulosics, partnered with local retailers The Foschini Group, Mr Price, and Woolworths to enable the use of sustainable viscose fabrics made from Verve and cotton waste.
The reports note under social impact and inclusion, that Sappi invested over R372 million in South African SMEs through the region’s Enterprise and Supplier Development Programme, exceeding targets and sustaining 1,502 jobs.
Environmental stewardship highlights include the company’s successful maintenance of 63% self-sufficiency in woodfibre through plantations in South Africa, complemented by progress in the PEFC-endorsed South African Forestry Assurance Scheme. The company also expanded the Rare, Threatened, and Endangered Species Stewardship Programme, documenting over 200 species in KwaZulu-Natal and Mpumalanga.
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.”
Other noted highlights include:
- Performance
Profitability improved steadily through the year and ultimately performance exceeded expectations against the backdrop of a subdued macroeconomic environment, ongoing low consumer confidence, and persistent geopolitical uncertainty.
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 the group’s balance sheet remains a top priority for the business and with its healthy liquidity it is 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.
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.