Paper giant Sappi has published its 2024 business and sustainability reports, highlighting the company’s performance in the market and detailing steps on decarbonisation, waste-to-landfill and supporting EU policies.
The global business performance included:
- 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.
- 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.
Key FY2024 global highlights supporting EU priorities:
- Driving the transition to a circular economy:
- Surpassed targets for woodfibre certification and biodiversity enhancement within forestry landholdings, contributing to EU Biodiversity Strategy objectives.
- Innovated waste management practices, reducing global waste-to-landfill and supporting the EU Circular Economy Action Plan’s focus on resource efficiency and waste minimisation.
Decarbonisation and renewable energy advancements:
- Accelerated climate action with pioneering initiatives such as biomass utilisation, electrification initiatives across Sappi Europe, and a Power Purchase Agreement in South Africa with Enpower Trading.
- Sappi Europe has increased its share of renewable energy by 15 percentage points compared to last year, complementing EU ambitions for a clean energy transition under the REPowerEU plan.
Sustainable product innovation:
- Released seven new products with sustainability benefits, including new packaging and speciality papers as well as biomaterial products.
- Established inhouse capacity to ensure innovative packaging solutions are future-proof for Packaging and Packaging Waste Regulation.
- 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, reflecting EU priorities on sustainable textiles and waste reduction.
Sustainability and operational leadership:
- For the sixth consecutive year, all three operating regions achieved the highest Platinum rating from EcoVadis.
- Improved safety performance, with consistent reductions in lost-time injury frequency rates across all regions.
- Sappi joined 72 companies across 20 industrial sectors to present the ‘Antwerp Declaration for a European Industrial Deal’ to the rotating Chair of the EU and the President of the European Commission.
