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Our performance in 2009 - Sappi

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<strong>Sappi</strong><br />

<strong>performance</strong><br />

<strong>in</strong>dicators<br />

Engage with stakeholders openly and constructively<br />

Regular contact with<br />

shareholders and<br />

customers<br />

Internal and external<br />

communications<br />

Participation <strong>in</strong> <strong>in</strong>dustry<br />

association <strong>in</strong>itiatives<br />

Feedback from<br />

communities<br />

surround<strong>in</strong>g our<br />

operations<br />

Prioritise wellbe<strong>in</strong>g, safety and health<br />

Measurement,<br />

monitor<strong>in</strong>g and<br />

management of safety<br />

<strong>in</strong>dicators <strong>in</strong> terms<br />

of employees and<br />

contractors with<br />

the aim of achiev<strong>in</strong>g<br />

zero harm<br />

Mills safety milestones<br />

Internationally<br />

recognised certification<br />

standards, such as<br />

OHSAS and OSHA<br />

Management of health<br />

issues affect<strong>in</strong>g the<br />

workforce<br />

In North America and South Africa,<br />

the Lost Time Injury Frequency Rate<br />

(LTIFR) improved for employees and<br />

contractors, but decl<strong>in</strong>ed <strong>in</strong> Europe<br />

as a result of <strong>in</strong>clusion of the acquired<br />

mills. Their safety <strong>performance</strong><br />

needed considerable attention<br />

and change <strong>in</strong> behaviour. Follow<strong>in</strong>g<br />

<strong>in</strong>tervention noticeable improvement<br />

<strong>in</strong> last quarter<br />

(See shareholder letter on page 19)<br />

Technology Centre, Pretoria achieve<br />

safety diamond status (36 months<br />

without lost-time <strong>in</strong>juries), Cape Kraft<br />

and Enstra Mills achieve safety<br />

plat<strong>in</strong>um status (24 months without<br />

lost-time <strong>in</strong>juries); Tugela and Usutu<br />

Mills achieve safety gold status<br />

(12 months without lost-time <strong>in</strong>juries)<br />

Move from OSHA to OHSAS <strong>in</strong><br />

North America<br />

Safety audits performed<br />

Employee wellbe<strong>in</strong>g programmes<br />

focus on holistic health issues<br />

pert<strong>in</strong>ent to each site<br />

In South Africa, participation <strong>in</strong><br />

voluntary counsell<strong>in</strong>g and test<strong>in</strong>g<br />

(VCT) for HIV/AIDS up from 28%<br />

<strong>in</strong> 2008 to just over 40% <strong>in</strong> <strong>2009</strong><br />

Value add Has a positive impact on morale, productivity and reputation.<br />

Partner with communities<br />

Corporate Social<br />

Responsibility (CSR)<br />

spend on literacy,<br />

skills development,<br />

education, job creation,<br />

health, environment,<br />

HIV/AIDS<br />

Roadshows, mill visits and one-onone<br />

discussions with shareholders<br />

and analysts<br />

Increased contact of management<br />

with customers and suppliers<br />

Regular updates from CEO and<br />

management on policies, strategies<br />

and key developments to employees<br />

Regional CEOs actively <strong>in</strong>volved <strong>in</strong><br />

<strong>in</strong>dustry associations<br />

Mill committee meet<strong>in</strong>gs held with<br />

communities on topics of mutual<br />

<strong>in</strong>terest<br />

Total CSR spend of US$2 million<br />

Majority of fund<strong>in</strong>g allocated to SA,<br />

with education, the environment and<br />

heath and welfare receiv<strong>in</strong>g the most<br />

fund<strong>in</strong>g<br />

Reduce LTIFR and fatalities<br />

to zero<br />

Focus on execut<strong>in</strong>g safety<br />

strategies which <strong>in</strong>clude further<br />

tra<strong>in</strong><strong>in</strong>g, visible senior<br />

leadership and improved<br />

contractor vett<strong>in</strong>g, management<br />

and safety <strong>performance</strong><br />

Improv<strong>in</strong>g the identification and<br />

report<strong>in</strong>g of all classifications<br />

of <strong>in</strong>juries to more fully identify<br />

the root causes and<br />

corrective actions<br />

Report more fully on<br />

occupational <strong>in</strong>juries<br />

Increase number of mills<br />

achiev<strong>in</strong>g safety ‘diamond’<br />

status<br />

Measure, monitor and report on<br />

occupational health risks<br />

Identify the risks that <strong>in</strong>fluence<br />

the HIV prevalence with<strong>in</strong> <strong>Sappi</strong><br />

employees<br />

Review areas of spend<br />

Report on impact of projects<br />

Value add Facilitates the resolution of issues, enhances our licence to trade and brand reputation.<br />

<strong>2009</strong> annual report<br />

Actual <strong>performance</strong> Future targets i<br />

More <strong>in</strong>fo<br />

CEO and management to<br />

ma<strong>in</strong>ta<strong>in</strong> high level of visibility<br />

and accessibility to all<br />

stakeholders<br />

Focus communication to target<br />

audience via all channels<br />

Value add Understand<strong>in</strong>g what our stakeholders perceive as responsible behaviour, meet<strong>in</strong>g these expectations and achiev<strong>in</strong>g recognition will deliver<br />

obvious value.<br />

11<br />

our bus<strong>in</strong>ess

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