2008 Annual report - Sappi

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Our sustainability performance in 2008 The following four pages are a snapshot of our approach to sustainability. More comprehensive details can be found in our publication, Sappi and Sustainability, 2008 Report, or on our website: http://www.sappi.com/SappiWeb/Corporate+responsibility/ Publications/Brochures+and+reports.htm Our definition of sustainability At Sappi, we define sustainable development as “development which meets the needs of the present without compromising the ability of future generations to meet their own needs”.* We are incorporating the principles of sustainable development into our everyday business practices by developing a culture of compliance. Our commitments are set out on page 8 and 9. * The Brundtland Report ‘Our common Future’. Milestones on our sustainable journey Over the last year we have: Published our 2007 Report in accordance with the Global Reporting Initiative (GRI) guidelines. We revised the way we collect and collate data in order to align our environmental performance reporting more closely with the GRI guidelines and enhance transparency. Updated our Code of Ethics in order to realise our vision of growing and living our values. The Code gives all our employees, contractors and stakeholders the guidance they need to act in line with our core values of Excellence, Integrity and Respect. The Code was rolled out to employees and suppliers across the group. Joined the United Nations Global Compact, a framework for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour and anti-corruption. Participated in a review by the Dow Jones Sustainability World Index (DJSI World), which captures the top 10% performers based on long-term economic, environmental and social criteria of the biggest 2,500 companies worldwide. This was a valuable benchmarking exercise in establishing our triple bottom line performance within our sector. Established the Group Sustainable Development Council (GSDC) and regional committees in order to instil the principles of sustainable development more fully into our everyday management of Sappi. An independent, non-executive board director also sits on the GSDC. In North America, sustainability ambassadors are playing a valuable role in driving this process and we envisage adopting this type of approach in all regions. Revised our Charter to incorporate new and current commitments and present these in simpler language to make them more meaningful and more easily understood by all our stakeholders. Established Prosperity, People and Planet targets for each region in order to establish benchmarks for measuring our progress. Participated in the Carbon Disclosure Project, a vehicle for reporting on climate change representing more than 385 investors globally with US$57 trillion under management (aggregated). Been assessed by London-based company Ethically Responsible Investment Services (EIRIS) for inclusion on the JSE’s Socially Responsible Investment (SRI) Index. We maintained our listing and were assessed as satisfactory in all areas, with our response to climate change assessed as good. Compiled a publication which ‘Unpacks the 3Ps’ of Prosperity, People and Planet. The publication, which explains the importance of each of our Charter commitments and sets out the way in which we are living up to these commitments, will be launched in the first quarter of 2009. 6
sappi Our score on the DJSI World Dimension scores % Sappi Average Best Economic 74 70 91 Environmental 65 61 83 Social 61 63 87 External accolades • Sappi was recognised as one of the top 21 performers on the JSE SRI Index. • We were among three companies in South Africa nominated for the Industrial Category of the 2008 National Business Initiative Special Award for the Top Performing Energy Efficiency Accord Signatory. • Ranked fourth for our investor relations website and second for financial disclosure in Africa and Asia by IR Global Ratings, a comprehensive ranking system for IR websites in Africa and Asia, as well as corporate governance practices and financial disclosure procedures. • Our Clean Development Mechanism (CDM) project at Tugela Mill in South Africa received an award for The Most Innovative Co-generation Project from Energy Africa magazine. • Sappi Fine Paper North America named as a recipient of the 2008 CIO 100 Award. This annual award programme, run by CIO magazine, recognises 100 organisations worldwide that use information technology (IT) to create business value. Sappi won the award for the development of an integrated knowledge management system which allows greater control over raw material expenditure. • Sappi’s UK sales office was awarded UK Supplier of the Year award for 2007 by Antalis UK, a division of Europe’s largest distributor of paper and support communications material. Our key highlights Acquisition of the coated graphic paper business of M-real Final commissioning of the AmaKhulu expansion project at Saiccor Mill, taking annual chemical cellulose capacity to 800,000 tons Finalisation of broad based black economic empowerment (BBBEE) transaction with Lereko Property Consortium Launched Tempo an innovative, fastdrying paper technology Sales of Flo ® more than treble Global training spend up by 20% Renewable energy as a percentage of total energy used stands at 48.6% Our key challenges Focus more intensely on safety in the light of employee and contractor fatalities Promote HIV/Aids voluntary counselling and testing (VCT) in view of an increase in the mortality rates of HIV-infected employees in South Africa // 2008 Annual report 7
Page 1 and 2: annual report 2008
Page 3 and 4: sappi Our report in overview In pro
Page 5 and 6: sappi Our performance The group’s
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Page 11 and 12: sappi People continued Our commitme
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Page 17 and 18: sappi Ideas that matter Print remai
Page 19 and 20: sappi Objectives for 2009 Meaningf
Page 21 and 22: sappi Deenadayalen (Len) Konar // (
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Chief financial officer’s report
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Five year review Not restated for I
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Share statistics at September 2008
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Corporate governance We are committ
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Compensation report Compensation co
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Annual financial statements for the
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Directors’ approval The directors
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Directors’ report // continued fo
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Group income statement for the year
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Group income statement in Rands con
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Notes to the condensed Sappi Limite
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Glossary General definitions bleach
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Glossary // continued Non-GAAP fina
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Notice to shareholders // continued
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Notice to shareholders // continued
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Shareholder’s diary Annual genera
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Notes to proxy The form of proxy mu
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Notes 1. To be effective, this form
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Notes 1. To be effective, this form
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2008 Annual report - Sappi

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