2012 Integrated report - Sappi

Non-financial highlights
Specific purchased
energy
(GJ/adt)
20
19
18
17
16
15
14
13
12
11
10
17.7
17.9
16.2
16.1
14.6
08 09 10 11 12
Scope 1 emissions
(ton CO 2 eq/adt)
0.9
0.8
0.7
0.6
0.5
0.79
0.77
0.69
0.71
0.64
08 09 10 11 12
Scope 2 emissions
(ton CO 2 eq/adt)
0.4
0.3
0.2
0.1
0
0.31
0.33
0.30
0.28
0.27
08 09 10 11 12
The term ‘specific purchased energy’ 1 is the energy that is purchased by
the mills and excludes ‘own energy’ such as black liquor 2 , bark and sludges,
and is expressed in terms of air dried tons of product produced. The definition has
been refined to conform more closely to the GRI requirements. Purchased energy
is thus calculated on the energy value of fuel used to produce it. The definition has
been refined to conform more closely to the GRI requirements. Purchased energy
is thus calculated on the energy value of the fuel used to produce it. There has
been a steady decline since 2008 with the largest decrease for 2012*. In Europe
there were energy efficiency improvements in all mills. In North America,
Westbrook Mill purchased less coal due to reduced power sales; Somerset Mill
used more renewable fuel due to increased black liquor solids burning and dryer
purchased biomass. Cloquet Mill also used more renewable fuel than prior years.
In South Africa, purchased energy decreased significantly in 2012 as
manufacturing efficiencies at Saiccor Mill improved and the mill increased
the percentage of own renewable fuel (black liquor) generated. The partial
curtailment of pulping operations at Tugela Mill and complete mothballing
of pulping operations at Enstra Mill also contributed to the decrease in purchased
energy. Ngodwana Mill also generated more electrical energy from renewable
resources in 2012, thereby reducing the amount purchased from Eskom.
For definitions on 1 and 2 see page 183.
* The decrease in Scope 1 emissions
can be attributed to the following:
In Europe, Gratkorn and Kirkniemi Mills
reduced natural gas demand and
increased their use of biofuel. In North
America, Westbrook Mill improved
significantly due to less coal burned.
In South Africa, improved manufacturing
efficiencies and increased use of black
liquor at Saiccor Mill resulted
in reduced purchases of fossil fuel.
> Scope 1 GHG emissions are
emissions from sources that are
owned or controlled by the
reporting entity.
* The decreasing trend apparent from
2009 was maintained. In South Africa,
the decrease is attributable to the
mothballing of pulping operations
at Enstra Mill which meant a reduction
in purchased power, improved
manufacturing efficiencies and
increased use of own fuel (black liquor)
at Saiccor Mill which also led to a
reduction in fossil fuel purchases.
Ngodwana Mill generated more
electrical energy in 2012 and therefore
reduced the amount imported from
Eskom, which is largely fossil based.
> Scope 2 GHG emissions are
emissions that are a consequence
of the activities of the reporting
entity, but occur at sources owned
or controlled by another entity.
Renewable energy to
total energy
(%)
Process water and water
returned
(m3/adt)
Training and development
spend per employee
(US$)
(R)
Lost time injury frequency rate
(Own employees and contractors)
55
50
45
40
35
48.04
49.33
48.23
48.31
50.30
08 09 10 11 12
All mills increased the use of renewable
energy compared with 2011.
The closure of Biberist Mill in 2011
contributed to the improvement in
Europe. Less power from the gas
turbines at Kirkniemi and Gratkorn Mills
was used as more power was bought
from the grid, and the proportion of
biofuels increased. (In the countries
where these mills are situated, bought-in
power contains biofuels.) In North
America the most positive contribution
was made by Somerset Mill, attributable
to the recent rebuild of the recovery
boiler. In South Africa, Saiccor Mill
decreased fossil fuel usage by
increasing the solids content of black
liquor. Ngodwana Mill increased bark
and black liquor usage.
50
45
40
35
30
25
20
40.8
36.3
39.2
35.4
35.8
33.2
35.3
32.8
36.1
33.4
08 09 10 11 12
The overall downward trend apparent
from 2008 was maintained with a
slight increase noticeable for 2012.
Performance in Europe and North
America was relatively stable.
In South Africa, water drawn
from the environment used in the
manufacturing processes showed
an increase due to Saiccor Mill
experiencing high turbidity in incoming
raw water. Globally, 92% of the
water drawn is returned to the
environment after being treated.
* To ensure consistency with the Carbon Disclosure Project, for 2012 we have excluded biogenic CO2 emissions (emissions
generated during the combustion or decomposition of biologically based material). These were previously included.
1,400
1,200
1,000
800
600
400
200
0
$1,005
$1,255
$1,255
08 09 10 11 12
7,000
6,000
SA
employees 5,000
4,000
$710
$592
3,000
2,000
1,000
During 2011 and 2012 we embarked
on major business restructuring in the
European and South African businesses
which resulted in headcount reductions
and cost saving initiatives.
Despite the tough business environment,
the investment in development skills to
ensure sustainability has continued
to be a priority. The focus has been on:
> Creating a safe work environment;
> Ensuring compliance;
> Continuously developing the existing
skills base for operational efficiency;
> Developing employees for the future;
and
> Upskilling employees for the new
dissolving wood pulp production
units, due to come on stream in 2013.
0
3
2
1
0
1.81
2.21
1.71
1.53
1.52
0.73
0.7
1.14
0.96
0.84
0.38
0.38
0.27
0.41
0.35
0.5
0.66
0.51
0.62
0.56
Europe North South Group
America Africa
2008 2009 2010 2011 2012
Tragically in our Sappi Southern African
operations in 2012, there were two
contractor fatalities in the year under
review. The safety performance of
employees improved in all three regions
and the continued safety focus with our
contractors has resulted in a noticeable
reduction in lost time injuries.
The OHSAS18001 safety management
system continues to be our foundation
and structure with all paper mill sites
maintaining their certification in 2012.
Our behaviour-based safety (BBS)
programme, together with the hazard
identification and risk assessment
process, has helped to identify
task-specific hazards and risks, and
also to quantify exposures and risk
reduction activities. The output of the
process has driven many physical
enhancements and improved our
safe work procedures. Going forward
we will continue to focus on employee
involvement and working with line
supervisors to further embed
a positive safety culture.
sappi Integrated Report 2012 7