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8/20/2019 2015 Sustainability Report.pdf
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Sappi North America2015 Sustainability Report
8/20/2019 2015 Sustainability Report.pdf
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02Sappi North
America Overview
16Social
Responsibility
20Key Performance
Indicators
06Sustainability
Goals
08Economic
Responsibility
12EnvironmentalResponsibility
Table of Contents
Sappi North America
Sappi North America has been publicly reporting progress on sustainabilityinitiatives since 2008 as part of a global sustainability report issuedannually by Sappi Limited. This is the fth consecutive year that eachregional division will issue its own sustainability report, with consolidatedglobal sustainability performance included in the annual report to
shareholders. Sappi Limited will continue to publish a separate onlinereport in conformance with the Global Reporting Initiative’s G4 frameworkand disclosing compliance with the United Nations Global Compact(UNGC), to which we are a signatory.
Covering FY 2015 (September 29, 2014, to September 27, 2015), thisyear’s report focuses on performance against goals and an update onkey performance indicators.
This report includes environmental performance data for Sappi’s threeUS manufacturing operations in Skowhegan, Maine, Westbrook, Maine,and Cloquet, Minnesota. Social responsibility and prosperity metrics arereported for the full region, including our corporate facilities, sales ofces,and sheeting facility in Allentown, Pennsylvania.
Copies of reports produced by Sappi Limited can be accessed atwww.sappi.com/investors, along with online access to sustainabilityreports from Sappi’s regional divisions in Europe and South Africa.
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2015 Sustainability Report 1
Our way of living, and ultimately Sappi’s future, is beingimpacted by a number of megatrends, including shifts indemographics, technology, climate, the drivers of the globaleconomy and the reality of adjusting to a carbon-constrainedfuture. As a company, we understand these changes andare embracing them by adapting our business accordingly.Our ultimate goal, within a changing world, is to maintainour position as a global forest products leader. We willachieve this through the power of One Sappi—committedto collaborating and partnering with stakeholders—alwaysfocused on being a trusted and sustainable organizationwith an exciting future in wood ber.
The quality of our people—their dedication, resource-fulness and drive—has made it possible to overcomethe transformative challenges in our industry. Today, weare in a much stronger position to move ahead, thanks toour optimism and pragmatic approach in running a leaner,more productive and efcient business.
We now have the opportunity to further transform anddiversify as a business.
To do this, we have identied numerous exciting prospects
for which we are uniquely positioned to take a lead industry role. As a natural renewable resource company, Sappi is in anexcellent position to help drive the renewal of the forestryindustry toward a low-carbon future. We will make full use ofthis opportunity.
Our approach is encapsulated in our 2020Vision. Withinthe next ve years, we want to optimize and maximize thereturns from our mature businesses, expand our existinghigh-growth businesses and enter new businesses inadjacent elds as we unlock and commercialize the potentialof plantation and forest-derived bio-products.
The fact that we operate in a carbon-constrained worldas a natural renewable resource company has openedup many exciting opportunities to expand and diversify.Our business is based on wood ber derived from trees,and it is in these bers that we have found the key to unlockour sustainable future in a fast-changing world.
Finally, how we reach our strategic goals as a business isas important as reaching those goals. Our new group valuestatement denes our operating ethos going forward: “AtSappi we do business with integrity and courage, makingsmart decisions which we execute with speed.”
Steve BinnieChief Executive Ofcer,Sappi Limited
The rapidly changing world around usis having a widespread impact on justabout everything: global economies,industries, markets, consumer trendsand our planet’s resources. As acompany, we are embracing this realitywith a focused strategy and some veryclear objectives.
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2 Sappi North America
Pulp
Sappi North America is an integrated pulp and paperproducer with state-of-the-art pulp mills. Sappi North America produces both kraft pulp (Somerset Synergy ® )and dissolving wood pulp (Specialised Cellulose) for sale toother manufacturers. With a 2013 conversion of the pulp millat Cloquet, the mill is capable of producing 330,000 metrictons of dissolving pulp or 455,000 metric tons of kraft pulp.
Coated Papers
Our coated papers are specied for printing projects inwhich top-quality reproduction is essential, including cor-porate annual reports, fashion magazines, catalogs andne art books. Sappi offers a broad selection of paperchoices—from bright white to neutral shades; a variety ofnishes—from gloss to matte; and a range of basis weightsin sheet and web. North American brands are: McCoy ®,Opus ®, Somerset ® and Flo ®. Our global brands includeMagno, HannoArt, Galerie Art and EuroArt Plus sheets, andthe Galerie Publishing Papers, which include Galerie Fine,Galerie Silk, Galerie Brite and Galerie Lite web.
Release Papers
The company is also the world’s leading supplier of releasepapers for the automotive, fashion and engineered lmsindustries, including the globally recognized Ultracast ® brand. Sappi North America’s release papers provide thesurface aesthetics for synthetic fabrics used in footwear,clothing, upholstery and accessories, as well as the texturesfor decorative laminates found in kitchens, baths, ooringand other decorative surfaces.
Packaging and Speciality Papers
In 2014, Sappi North America established a separatebusiness unit to focus on packaging and technical spe-cialty papers. Building on the strong market performanceof our grease-resistant LusterPrint ® paper, last year wedeveloped LusterCote ®, a coated one-side (C1S) paperdesigned for labeling and other converting applications. In2015 we extended the basis weight range for LusterCote ® to serve litho markets such as envelope, litho label andpoint of purchase displays.
Sappi Limited
Sappi Limited is a global company headquartered in Johannesburg, South Africa, with more than 13,000employees and manufacturing operations in seven countries across three continents, as well as sales ofcesin 35 countries. Sappi is focused on providing dissolving wood pulp, paper pulp and paper-based solutionsto its direct and indirect customer base across more than 100 countries. We produce approximately 5.7 millionmetric tons per year of paper, 2.4 million metric tons per year of paper pulp and 1.3 million metric tons peryear of dissolving wood pulp.
Overview of Sappi North America
Sappi North America is a subsidiary of Sappi Limited, headquarteredin Boston, Massachusetts, with over 2,000 employees in the UnitedStates and Canada. Our three North American mills have capacityto produce 1.16 million metric tons of paper and 855,000 metric tonsof pulp. The success of our four diversied businesses is driven bystrong customer relationships, world-class assets and outstandingproducts and services. Customers rely on Sappi to deliver productsand services with consistently high quality and reliability supported byhighly technical, operational and market expertise.
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CLOQUET MILL
ALL ENT OWN
WESTBROOK MILL
SOMERSET MILL
Sappi North America Locations
Headquarters Sites (3 Mills, 1 Sheeting Facility, 1 Service
Center, Westbrook Technology Center) Sales Areas (17) Regional Distribution Centers (3)
SOUTH PORTLAND
SAN FRANCISCO
DETROIT
NEW YORK
WASHINGTON, DC
LOS ANGELES
TAMPA
MINNEAPOLIS
TORONTO
MONTREAL
ST. LOUIS
CHARLOTTE
CINCINNATI
DALLAS
PHILADELPHIA
BOSTON
ATLAN TA
EDISON
CHICAGO
Corporate Governance
Sustainability is not just a business philosophy at Sappi North America. It permeatesour corporate structure with formal responsibilities, dened goals and accountabilitydemanded from each of our four business units and every part of our operations.
Sustainability Steering Committee
Mark Gardner, ChairPresident and CEO
Anne Ayer VP, Fiber Resources andCorporate Development
Tom Collins VP and General Manager,Specialties Business
John Donahue VP, Central andWood Procurement
Deece Hannigan VP, Coated and PackagingBusiness
Mike Haws VP, Manufacturing
Annette Luchene VP and CFO
Sarah Manchester VP, Human Resources andGeneral Counsel
Jennifer MillerChief BusinessSustainability Ofcer
Sustainability Council
Laura Thompson, ChairDirector, Technical Marketing
and Sustainable Development
Dee Dee BaumDirector, Customer Care
Kevin McCarthy Senior Manager, Certication
Micki MeggisonDirector, Technical Serviceand Process Improvement
Chuck Qualey Senior Engineer
Rob SchillingEnvironmental Manager
Dale Wibberly Human Resources Manager
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4 Sappi North America
We set hard but achievable goals that challenge us asan organization and keep us focused on coming up withprojects to improve results and meet or even exceed ourgoals. These projects can range from waste reduction andenergy-efciency improvement actions at the mills, to newproduct launches and sales strategies for current revenuegrowth, to business diversication plans to tap new sourcesof growth – and, of course, the employee development plansto make it all happen.
That initiative and vision is what sets Sappi North America apart. At Sappi, we listen to our customers andmeet their needs by providing them with our high-qualityand innovative products. We employ the best talent andprovide them with skill-building opportunities. We investour capital, ensuring our manufacturing processes stayexible, safe and efcient. We are in control of our destinybecause we have an eye to the future and have made a
series of decisions to best position the company in thechanging landscape.
Safety: Our First PrioritySafety excellence and risk management are an integral partof Sappi’s operating ethos. We have continued to make thenecessary investments to ensure that our manufacturingprocesses are safe with risk well managed. We continueto invest heavily in safety education and training, ensuringthat all of our employees, salaried or hourly, operating ourassets have the necessary know-how and equipment towork safely. Compliance with safety standards is rigorousand consistently applied. Our results reect that focus: The
Lost Time Injury Frequency Rate (LTIFR) for the year was0.48, which is a 14 percent improvement versus FY14 andthe second best LTIFR year on record. Within the US paperindustry, Sappi NA exceeds the benchmark for the top 25percent performers set with an LTIFR of 0.6. We are proudof this accomplishment and we remain committed to con-tinuous improvement of our safety standards and processes.
Investing in Customer SolutionsGiven our strong record of capital investment to keep ourmachines modern and exible, as well as our deep commit-ment to R&D, we are able to bring solutions to the marketquickly in all four of our businesses. In our Coated Paperdivision, recent machine upgrades have provided yieldimprovements resulting in cost savings for customers usingour 7 pt Somerset gloss and satin. We also doubled capacityon our Flo lightweight web products and increased the optics
of our Flo and Opus sheet brands. In our new Packagingbusiness, we have introduced LusterCote, a quality C1Slabel product with excellent printability and performance,complementing our legacy LusterPrint business. We arededicated to making specialized packaging solutions alarger part of our business and are working on innovative
Letter from Mark Gardner
Each year I look forward to reporting our progress against theve-year goals we set to ensure that Sappi North Americacontinues as a thriving, sustainable, re-investable company.Whether you are an employee, customer, shareholder or amember of one of our mill communities, you should know howwe are doing in terms of employee training and safety, keyenvironmental metrics and, of course, nancial returns.
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2015 Sustainability Report 5
line extensions for launch in 2016. The Release team hasseveral important product changes for this upcoming scalyear in both its Classics and Ultracast lines to meet evolvingcustomer needs in the fashion apparel, furnishings and auto-motive sectors; we expect exciting growth in this business.Finally, our Specialised Cellulose team continues to meet thehighest standards for this highly technical pulp feedstockused in textile, pharmaceutical and food industries and islooking for ways to penetrate adjacent markets.
People: Our Greatest AssetThe engagement of our highly skilled workforce is whatmakes our business environment special. We’re differentbecause our employees are passionate about what theydo, and that shows up in how we make, service and sell allof our products. The key to this dynamic is investing in ouremployees beyond the education and training we provide.
We listen to their great ideas for ways to grow and improvethis company, we place condence in their experienced judgment and we give them a chance to take calculatedrisks and expand their horizons through job progression orthe opportunity to take on new projects. And, since we knowour employees are our best ambassadors, we encouragevolunteering with local and educational organizations topromote goodwill and ensure a steady stream of futureworld-class talent. This investment of time and resources inour people and the larger community is a full-circle approachto ensure our sustainable future.
A Final NoteI hope you take the time to read this report in depth, as wehave streamlined the content this year to make it even moreaccessible. You will see that in some cases, we are wellahead of aggressive goals, and in some areas, we will needto dig a little deeper and work harder to achieve our ve-yearvision, and we share those plans with you. The importantthing I want to leave you with is the culture of optimism andpassion here at Sappi, and the resolve and resiliency wecontinue to demonstrate as we meet the exciting challengesand demands of our ever-changing markets.
Mark GardnerPresident and CEO,Sappi North America
“We are in control of our destiny because we have an eye to the future and have made a series of decisionsto best position the company in thechanging landscape.”
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6 Sappi North America
Sustainability Goals
Since 2008, Sappi North America has established regional long-term goals to focus our collective efforts on areas thatare critical to our business. Achieving these goals improves our performance and helps assure our success for yearsto come. In concert with our new global strategy, 2020Vision, we have established several goals that cross all regions.Benchmarking from a 2014 baseline, this year marks our rst year of performance against those new global goals. Inaddition to the global goals, we have also set regional goals for employee training and the reduction of raw material waste.
The compilation of each region’s contribution to Sappi’s global goals is also published in our company’s annual report,which can be found online at sappi.com/investors.
People
Prosperity
60 h
12 %
Achieve Zero Workplace Injuries (Global Goal)Employee safety is a top priority at Sappi North America and is guided by our ProjectZero program, which sets a global goal of zero workplace safety incidents. LostTime Injury Frequency Rate (LTIFR) is one important measure for tracking work-relatedincidences resulting in injuries that reduce an employee’s physical capabilities. Itmeasures injuries resulting in lost time per one million man-hours worked. In 2014,our new baseline tracking year, the North American region recorded an LTIFR of 0.56,and in 2015 we achieved a 14 percent decrease, reaching an LTIFR of 0.48. Werecognize that creating a safe work environment requires constant attention and havebuilt a culture where safety is part of the daily conversation. Safety systems thatinclude ongoing training and communications are ingrained in our work plansand viewed as integral in our efforts to consistently strive for zero workplace injuries.Each year every employee, in every role regularly participates in training sessionsdesigned to raise awareness of safety practices that prevent injury. We are proud ofour historic performance and will continue the work to reach zero.
Offer 60 Hours of Training and Education per Employee Annually(NA Regional Goal)
We believe that maintaining a skilled workforce is critical to achieving high performancein our complex manufacturing operations and business management systems.We continue our long-standing commitment to a regional goal for employee trainingand, after analysis, have set our 2020 target at 60 hours of training and educationper employee per year. This is a standing target intended to be met every year and isconsistent with best practices for US companies. We will continue to apply a highlevel of attention to efforts that ensure employees receive training that increases theirskills and prociency for their current position and for future opportunities. As we arefacing turnover due to a large number of pending retirements and are hiring newemployees at a relatively high rate, delivering ongoing training that effectively growsthe skills of our employees is essential.
Achieve or Exceed 12 Percent Return on Net Operating Assets (Global Goal)Return on net operating assets (RONOA) is a clear indicator of the nancialperformance of our operations and the ability to effectively use our asset base togenerate prot. Our 2015 performance improved compared to the 2014 baselinedespite continued soft market conditions in all Sappi North America core businessesand the challenges that accompany a stronger US dollar. We have built exibilityinto our manufacturing systems to provide our operations personnel with more toolsto manage the business. Our teams work to achieve increased operational efciencieswhile closely managing both xed and variable costs. In 2015, higher wood costsat the mills were offset by lower pricing for chemicals and energy, as well as thestrategic decision to supply the Cloquet paper machines with more own-make kraftpulp. Heading into FY16, with expected improvements in market dynamics coupledwith the strategic actions that we are taking to diversify our business, we are wellpositioned to prosper in the years to come.
0.56
0.48
14
15
0
Actual
2020 Goal
Base
74h
80h
60h
Actual
Goal
Base
14
15
20
1.7%
2.7% Actual
Goal
Base
14
15
12%20
0
RONOA
LTIFR
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2015 Sustainability Report 7
Planet
60 %
10 %
5 %
Ensure 60 Percent Total Certied Fiber Content (Global Goal)We continue to support and recognize the efforts of multiple, third-party certicationprograms, including the Forest Stewardship Council ® (FSC® ) , the Sustainable ForestryInitiative® (SFI® ) and the Programme for the Endorsement of Forest Certication(PEFC). One hundred percent of our wood ber is sourced from well-managed forestsin accordance with the FSC ® controlled wood standard as well as the SFI ® certied
sourcing standard. Building on the strong legal framework within the US, thesestandards offer additional assurances that there are no controversial sources in ourwood and ber supply. Our performance against this goal is measured as percentageof certied ber (from both the pulp we produce and that which we buy) in all ourproducts across all three mills. We have established a goal of 60 percent certiedber, which has proven sufcient to meet customer demands for certied products.In 2014 we were purchasing the bulk of our kraft ber for the Cloquet paper milland achieved 66 percent, our highest level of certied ber ever. In 2015, as we tookadvantage of the pulp manufacturing exibility at our Cloquet, Minnesota mill, wepurchased less certied market pulp and produced more of our own pulp. As a result,in 2015 we achieved 58 percent total certied ber content.
Reduce the Total Amount of Energy Expended in Making Each Ton of Productby Five Percent (Global Goal)Energy is an ongoing topic of concern globally and is extremely important to Sappiand our stakeholder groups. Energy from fossil fuels is linked to climate change andis a major cost driver in the wood products industry. Therefore, we have established agoal to reduce energy intensity by ve percent. We continue to supply over 70 percentof our energy needs with renewable fuels, minimizing our fossil carbon footprint,and generate most of our electricity on-site. We remain committed to increasing ourprocess efciency and reducing energy consumption. In 2015, our mill personnelimplemented reduction projects that were identied during energy use studiesconducted in FY14. At the end of this scal year, our energy intensity was at comparedto the 2014 baseline. The positive impact of energy reduction efforts at all our millsites was offset by manufacturing changes primarily driven by external marketconditions. Note: In accordance with industry standard methodology for tracking thisgoal, energy from purchased electricity is calculated in terms of fuel inputs andaccounts for efciency losses incurred in generating and transmitting power.
Reduce Pulp Mill Raw Material Waste by Ten Percent (NA Regional Goal)Efcient use of raw materials lowers cost and reduces environmental impacts. Weare targeting a 10 percent reduction in raw material waste in our pulp mills. We tracklosses by measuring the amount of ber in the pulp mill process drains beforethese streams enter our on-site treatment plants. We are already seeing signicantreductions compared to the 2014 baseline, as a result of improvements made tothe bleaching process at our Cloquet mill.
Reduce Paper Mill Raw Material Waste by Five Percent (NA Regional Goal)Waste minimization is an ongoing, everyday activity in our mills. On the paper millside, process losses are made up of ber as well as pigments used as llersin the base sheet and paper coatings. The FY14 baseline year was our best everrecorded for reduction of material losses in our paper mills. Compared to thenew baseline, our 2015 performance was negatively impacted by paper machine
curtailment taken in FY15 at both Somerset and Cloquet.
66%
58%
60%
Actual
Goal
Base
14
15
20
5 %28.0GJ/mt
-0.4%
-5.0%
Actual
Goal
Base
2014 Baseline 28.0 GJ/mt
100%95%
2020 Target26.6 GJ/mt
14
15
20
10.3kg/mt
-8.8%
-10.0%
100%90%
2014 Baseline10.3 kg/mt
2020 Target9.3 kg/mt
Actual
Goal
Base
14
15
20
20.8kg/mt
+3.3%
-5.0%
100%95%
2014 Baseline20.8 kg/mt
2020 Target19.7 kg/mt
Actual
Goal
Base
14
15
20
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8 Sappi North America
Economic Responsibility
Environmental and social responsibility goals go hand in hand withnancial success. Environmental initiatives drive direct savings inenergy and materials, employee training increases productivity andcustomer satisfaction, and strong sustainability positioning resultsin higher levels of customer loyalty, revenue and prot.
With more efcient operations, we reduce the environmentalimpacts associated with every unit of production—delivering morevalue while consuming fewer resources. Solid nancial performanceattracts reinvestment in our people and in our assets, driving furtherimprovements. Success builds on success, creating a businessplatform that is viable over the long term.
Diversication of Our Portfolio
Sappi has long operated three business units in North America—coated papers, release papers and pulp. In 2014we added specialty packaging as a fourth business unitwithin the region. Combined with recent investments in ourother three business units, we have increased the diversityof products we manufacture and are well positioned toretain our competitive advantage and increase protabilitydespite difcult market conditions. Our future depends onthe success of all four business units.
“Making smart decisions and executing with speed are the most powerful elements of our new values statement. We must continue to make sound business decisions—basedon market trends and customer needs—and
implement those strategies with excellenceto achieve our nancial goals. I am condentthat Sappi North America holds the key toeconomic sustainability with the right focuson optimization, diversication and growth.” Annette Luchene
Vice President and CFO
2020Vision
This past year, Sappi Limited announced a new strategicvision to reshape our business through further diversication.Our transformation journey is not about radical change. Ithas been, and continues to be, an intentional evolution of thebusiness—changing to meet market needs and opportunities.
Key elements of our group strategy include:• Achieving cost advantages• Growing through moderate investments• Rationalizing declining businesses• Generating cash to strengthen the balance sheet• Accelerating growth in adjacent businesses
By 2020, we aim for the composition of our group EBIDTAto be balanced such that 25 percent is derived from pack-aging and specialties, 25 percent from graphic papers, 40percent from dissolving wood pulp and 10 percent from newbusiness opportunities such as nanocellulose, bioreneryproducts and energy.
Through ongoing investments in our people and manu-facturing assets, we continue to strengthen our position asleaders in the industry segments we serve.
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Perfecting Packaging Performance As the paper industry evolves, Sappi continues to search for freshsolutions that position both the company and its customers for future
success. It’s this drive that inspired Sappi to approach longtimeemployee David Niles with an idea that would utilize his vast knowledgeof paper science engineering to help expand the company’s offeringsin packaging.
The venture requires Niles and his team to go out into the eld andinteract closely with customers, testing Sappi’s products throughoutthe entire packaging process to assess performance and recommendchanges. “It’s been critical to give feedback to the product developmentteam, including research and development, manufacturing andmarketing team members, so that everyone understands how the paperis working. For example, we’ve had to learn about gluing technologyand how the backside of a sheet needs to be able to adhere to different
types of containers and handle both hot melt and water-basedadhesives—and we’ve had to do it quickly.”
The ability to collaborate with customers and commercial partnershas allowed Niles to gather honest, invaluable feedback to inform thedesign of products for new markets, like the two Sappi has been hardat work developing over the past year: cut and stack labels and litholabels. And it’s this enterprising spirit that gets Niles excited to go towork every day.
“Sappi’s a big company, but this feels entrepreneurial. It’s our future. And to be asked to be a part of it and get to work with this high-energygroup of people, it’s been invigorating for me—and a lot of fun. Ourcustomers are eager for us to release the new products quickly, but atSappi we understand that it’s about more than getting it done—it’sabout getting it done right.”
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Q: What is your focus in your new role as Chief BusinessSustainability Ofcer?Our strategic vision, as rolled out to our employees andother constituencies this past summer, is to substantiallyincrease Sappi’s global EBITDA by 2020, otherwise knownas the “2020Vision.” 2020Vision reects a condent view ofour ability to grow, not just by maintaining and improving
returns in our core mature markets, like coated paper, butalso through top-line growth in our newer businesses, likespecialty packaging. Specically, Sappi aims to increasethe EBITDA contributions of specialty packaging and newbusiness to 35 percent of group earnings, up from its currentlevel of less than 20 percent. My new role is to identifyopportunities in North America to achieve that goal.
We understand that to be a truly sustainable business,one that is here for the long run, you have to be a growthbusiness, one that is constantly exploring how our expertise,proprietary technology and management strengths canunlock value in new markets. To do this, I will be workingclosely with Mark Gardner and other leaders in the Companyto identify those growth opportunities in both current andadjacent markets for the North American business. I willalso continue my leadership role in driving Sappi North
America’s ongoing sustainability initiatives.
Q: As you think about emerging trends in the sustain-ability world, what do you see as particularly relevantto Sappi’s plans for the future?There was a lot of reection across corporate America andthe globe after the Volkswagen crisis hit the news this
summer. Leaders are asking themselves: Is my companydoing enough to protect its economic goodwill, its relation-ships with customers, its credibility with the government andshareholders through inculcating the right ethical culture,having a strong control environment in place and establishingaccountability throughout the organization? At Sappi wepride ourselves on our strong corporate governance, ourtransparency and our explicit linkage of sustainability andsafety goals to business decisions and capital allocation.But we can’t stop there. We must continue to take owner-ship of issues beyond our mill gates, and collaborate with
industry partners to bring about positive innovation andimprovement. We must be prepared to take public stanceson social and environmental issues that impact our companyand our industry. We must also encourage our customersto act responsibly in how they consume and dispose ofour products. Recognizing that we are part of the circulareconomy with influences outside of our organizationalboundaries positively affects our returns and growth. Doingso just makes good business sense. Q: “Circular economy” is creating a buzz in sustainability circles these days. Do you see this as a legitimate
business model for Sappi North America to adopt?We already have. Sappi has never subscribed to a linear“take, make, waste” model of consumption that proponentsof a circular economy aim to redress. We are committedto efcient management of material streams and the recy-cling and re-use of industrial by-products. Our ve-yeargoals on waste reduction and energy efciency are just twoexamples of that commitment. We have been successful inminimizing the use of landlls by burning the by-products ofour operations in our energy island and by providing otherby-products, like y ash, for benecial use by local farmers.
And, importantly, we are very involved in education andoutreach programs that lead to higher recovery of paperand other recyclable materials, keeping them out of landllsto avoid the generation of methane gas.
Letter from Jennifer Miller
Jennifer Miller was named Chief Business Sustainability Ofcer forSappi North America in August 2015. In this new role, she is focused onidentifying strategic growth and diversication opportunities for theCompany as well as continuing to lead the sustainability strategies forall four of Sappi North America’s businesses.
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2015 Sustainability Report 11
Sappi Supports the Paper & Packaging –How Life Unfolds ™ Consumer Marketing Campaign
We carry it with us every day.We make memories with it. We package
gifts in it. It holds our coffee. And now we are proud to share the warmth and creativity thatpaper and paper-based packaging offers us all through thePaper & Packaging – How Life Unfolds ™ consumer campaign.
The Paper and Packaging Board (P+PB) unites nearly 60companies, including Sappi North America, in the paper andpackaging industry to elevate the use and choice of paperand paper-based packaging. P+PB launched the Paper &Packaging – How Life Unfolds ™ consumer campaign in Julyof 2015 to highlight the value of paper and paper-basedpackaging through emotionally rich stories that celebrateachievement. Campaign media is planned to reach a targetaudience 38 million strong, communicating how paper andpackaging help us reach our goals and connect in thoughtfuland meaningful ways.
P+PB is authorized through 2021 and collects around $25million annually from manufacturers and importers from fourindustry sectors, including printing and writing, kraft packagingpaper, containerboard and paperboard. A combination ofpublic relations, social media and paid media, including TV,print, digital and outdoor advertising, comprise the Paper &Packaging – How Life Unfolds ™ consumer campaign. Learnmore at www.howlifeunfolds.com.
Q: You have a major role in the paper and packagingindustry’s check-off campaign. How is that going, and do
you think it will play a part in sustaining and increasingdemand for those products?
As a member of the Board of Directors of the Paper andPackaging Board and Chair of the Marketing Committee, Iwas very pleased with the July launch of “How Life Unfolds ™,”
a consumer campaign with TV ads, a print campaign anda robust social media and public relations program. Earlyindications are very encouraging, with over 876.7 million totalimpressions, 2.17 million total engagements, and more than1,600 media stories across a wide range of consumer andtrade publications. We will be tracking consumer engage-ment, awareness and ultimately changes in consumptionover the life of the campaign.
What I have found most encouraging about this campaignis what our market research is telling us about our targetaudience: the 38 million adults aged 18–49 that we call
“Expressives.” They are educated, achievement-oriented andwant to do the right thing. Importantly, these Expressivesare very open to using more paper and paper packaging,as they see those products are humanizing inuences inan increasingly dehumanized world. They don’t want tech-nology to replace genuine relationships. Of course, beingsocially motivated, they want to learn more about how torecycle, consume wisely without waste and understand therenewability of our products. We will meet these needs forbetter education on the campaign website. And, of course,most importantly, the consumer campaign will continue tocelebrate the unique relevance of these products in their
everyday lives. I am very optimistic about the prospectsof this campaign translating into sustained and growingdemand for paper and paper-based packaging. This istruly an exciting and long-overdue industry collaborationthat Sappi is pleased to support.
Jennifer MillerChief Business Sustainability Ofcer
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12 Sappi North America
Environmental Responsibility
As a manufacturer, we must operate our facilities in accordance withstate and federal regulations that protect air, water and soil quality.In practice, our sustainability efforts extend well beyond compliancewith environmental regulations. At Sappi, we approach environmentalimpact from a holistic perspective grounded in life cycle thinking—from responsible procurement of raw materials through manufacturing,distribution and use—ultimately with consideration for the end oflife of our products. We work collaboratively along the supply chainand seek out solutions across industries to adopt best practices anddrive meaningful change.
Sustainable Forestry
Responsible manufacturing begins with responsible procure-ment. For the wood products industry, it is paramount thatour natural resources are used sustainably. Wood suppliesthe bulk of renewable energy that drives our mills, and cellu-lose bers comprise the primary ingredient in our paper andpulp products, making healthy and abundant forests criticalto the long-term viability of each of our core businesses.
In the US, a strong legal framework has shaped andupheld responsible forestry practices for generations. Federaland state governments have a multitude of laws in place thatnot only cover rightful ownership, but also work to protectthreatened and endangered species, regulate chemical useand provide for safe harvesting and fair labor practices.
Sappi North America is committed to sourcing 100 percentof our wood and market kraft pulp from well-managed forests.We are members of the Forest Stewardship Council ® (FSC® )
as well as the Sustainable Forestry Initiative®
(SFI®
)—two ofthe world’s leading independent non-prot organizations thatare responsible for developing sustainable forestry certi-cation programs. With less than 10 percent of the world’sforests certied to a credible standard, we support inclusivepolicy positions based on multiple standards. Furthermore,we strive to expand certication across the supply chainwith an emphasis on growing certied land in the regionsthat provide ber to our mills.
Traceability
Supply chain traceability is a critical element of risk management. At Sappi we record the town and state or province of origin ofeach load of wood received at our mills. Representative samplesof the deliveries to our mills are subsequently traced backward toconrm the accuracy of the information provided. Througha separate effort, the State of Maine requires that all timberharvests must be registered with the Maine Forest Service, whichperiodically inspects the operation for environmental compliance.The State of Maine also requires the use of a “trip ticket” toaccompany any wood transported to market. The trip ticketidenties the owner, the place of origin and the destination of thewood. A trip ticket system is also utilized in Minnesota, supported
by a random sampling process which is incorporated into ourcertied sourcing procedures.
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In 2015 Sappi became a supporter, with publishers, cat-alogers and other paper companies, of Recycling Worksin Publishing (RWIP). RWIP is a member of The RecyclingPartnership, whose goal is to increase curbside recyclingin 200 communities throughout the US in the next 10 years.
The Recycling Partnership has a proven track record thatutilizes public-private partnerships to improve recycling atthe local level by providing grants, technical support andeducational programming to make recycling programs more
accessible and more efcient (reducing contamination). In2015 alone, the partnership worked directly with 69 commu-nities, placed over 115,000 recycling carts (replacing bins),and is currently working to reach over 1 million households.For more information, see www.recyclingpartnership.org.
At Sappi, we have long promoted a concept that we referto as the “best use” of recycled ber. Because recoveredber can be used in so many paper-based products, it isunrealistic to think changes in how recovered ber is usedwill occur in isolation. Increasing recycled content in one
grade will affect the system-wide ber availability for othergrades, so it is increasingly important to understand theconsequences of those changes. In fact, through our owncarbon footprint analysis, we have shown that adding 10percent recycled ber to products made at our Somerset
Mill actually increases the carbon footprint by 16 percent. And we know that recycled ber can be put to better use inother products where it can be used more cost effectivelywith less environmental impact.
Our trade association, American Forest and Paper Association (AF&PA), is collaborating with the MassachusettsInstitute of Technology (MIT) to develop a new approach fora more comprehensive understanding of the tradeoffs ofchanges in recovered ber utilization. The MIT methodologyapplies a “systems dynamics” approach to consequentiallife cycle assessment for US paper production to model thesystem-wide effects. The project will deliver a comprehensivemodel to better educate policy makers and customers tomake informed decisions about shifts in recovery rate andrecycled content.
In addition to these projects, I also serve on the TwoSidesSustainability Committee, the Executive Committee ofthe Sustainable Packaging Coalition, as a member of theGreenBlue Board of Directors and on the advisory board forthe University of New Hampshire’s Environmental Sciencedepartment.
These efforts ultimately aim to drive changes that helpsustain our industry. Sappi’s support demonstrates an
ongoing commitment to work with others to tackle large,complex issues. On a more personal level, my participationhas introduced me to a strong network of experts in variouselds. It is inspiring and gratifying to work among peers witha shared passion to make a difference.
Laura M. Thompson, PhDDirector, Technical Marketing& Sustainable Development
[email protected]: www.sappi.com/eQTwitter: @eQLauraThompson
Letter from Laura Thompson
Sappi’s new global mission statement highlights the factthat our success depends on collaboration and partnershipswith stakeholders. In my role as Director of Sustainability,I have the pleasure of representing Sappi in numeroussustainability initiatives. This past year I began working ontwo new collaborative efforts focused on recycling and thebest use of recycled ber.
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14 Sappi North America
Climate change is attributed to deforestation and emissions from the combustion of fossil fuels, among othercauses. Biomass is considered carbon neutral when the growth rate of forests is greater than or equal toharvest levels, as is the case in North America. The carbon neutrality of biogenic fuels has been recognized byan abundance of studies and institutions, including the Intergovernmental Panel on Climate Change (IPCC).
Carbon Neutrality
Energy & Emissions
Ongoing public concerns about climate change, energysecurity and economic conditions keep energy use andgreenhouse gas emissions top of mind for our key stake-holders. Energy is the third largest draw on our operat-ing costs behind wood ber and chemicals. As such, wehold a long-standing commitment to control energy usage.Environmental impact is affected not only by the amount ofenergy, but also by the type of energy consumed. We have
made signicant effort to reduce our reliance on fossil fuelsto reduce greenhouse gas emissions and to separate ouroperations from the volatility of energy prices.
The forest products industry is the largest producer ofbioenergy of any industrial sector. In North America, over70 percent of the total energy consumed by our mills isderived from renewable sources, resulting in the lowestaverage carbon footprint of domestic freesheet suppliers.
In reporting greenhouse gas emissions, we do not includecarbon dioxide emissions derived from biogenic sources
(e.g., woody biomass, black liquor). Recognition of the carbonneutrality of biogenic fuels is the basis for various piecesof legislation around the world. Governments continue toimplement incentives and mandates to increase the use ofrenewable fuels.
Sappi fully supports the AF&PA recommendation to treatforest-derived biomass as carbon neutral where the growthrate of forests is greater than or equal to harvest levels.
Accounting frameworks should be regional and consistentwith the US Forest Service’s robust Forest Inventory and Analysis program. Furthermore, policies should not constructarticial mandates or incentives, which disrupt the nation’sexisting efcient and balanced forest biomass markets.
CO2 from Fossil FuelCombustion
CO2Biogenic CO 2
Biogenic CO 2
Decaying Trees and Forest FiresRelease Carbon
PaperManufacturing
and Carbon-Neutral Energy
Growing Trees and ForestProducts Store Carbonfrom CO 2
SustainableForestry
Harvested Areas Replanted
Healthy Forests RemoveCarbon Dioxide
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2015 Sustainability Report 15
The pulp and paper industry is circular by nature. Forexample, a magazine can be shared with a friend, thenrecycled and converted to a cereal box, recycled againto make tissue and ultimately end up as compost.
Sourcing
Manufacture
Conversion
Distribution
Use
Landll
Recycled
Compost
Re-Use Loop
The Circular Economy
Circular by Nature
There is a growing recognition among businesses and con-sumers that we must move away from a linear “take, make,waste” model of consumption where we extract materials,produce things and discard products to landlls. We arenow embracing circular economy models, which by designare restorative and regenerative. Done properly, the nal
result is a system in which material streams are efcientlymanaged and recycled. The benets of this holistic approachare clear, resulting in less waste, lower costs and reducedenvironmental impact.
The pulp and paper industry is circular by nature, pro-ducing recyclable products made from renewable resourcesthat are produced using renewable energy.
Recycling is a key aspect of the circular economy—treating all materials, including by-products, as valuableresources rather than wastes. It is especially important torecover paper and other organic materials to avoid the gen-
eration of methane emissions in landlls. All of our graphicsand packaging papers are recyclable, and we are strong
proponents of educational outreach and programs that leadto the higher recovery of paper and other recyclable materials.
We do not believe that the use of recovered ber is aone-size-ts-all solution and we promote a practice of “bestuse” for recycled ber in paper products. Ultimately, the useof recycled ber should be based on an evaluation of both
economic and environmental consequences. Prescriptivepolicies or guidelines that require maximizing recycled bercontent or that control the ow of ber markets without takingall factors into consideration should be avoided.
We have also engaged in a concerted effort to use alter-native fuels. Taking waste products from other industries andconverting these wastes to energy helps reduce solid wasteto landlls and provides cost-effective energy sources forour mills. Examples of our use of alternative fuels includeconstruction and demolition wood and discarded tires thatare processed into fuel chips.
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16 Sappi North America
Social Responsibility
Our social responsibility initiatives are centered on three primarystakeholder groups: employees, local communities and customers.Our strategy for engagement continues to evolve, and we havemade great progress by building on the strength of our Sustainability
Ambassador program, a branch of our sustainability governancededicated to employee and community engagement. We strive tointegrate activities with our overall business objectives and ndsynergies that link our efforts to create a competitive advantage forSappi. From creating a stronger social license to operate toestablishing customer loyalty and attracting talent, we know thatthese efforts pay off in the long run for our company.
Employees
A high-performance work environment relies on healthy,committed, well-trained employees. Greater job satisfactionresults in lower turnover and helps create a corporate culturethat attracts top talent to the company. An active, engagedworkforce is more productive and capable of realizing itsfullest potential at work and at home. Sappi understandsthat by creating a dynamic and encouraging environment,we are not only supporting our employees’ health andwell-being, but also building a better future as a company.
Safety is our number-one priority for our employees. Wehave established a global goal of zero workplace incidentsconsistent with our primary safety communications initiative,Project Zero. In 2014, the North American region had anLost Time Incident Frequency Rate (LTIFR) of 0.56, and in
2015 the LTIFR was 0.48, a decrease of 14 percent year overyear. The benchmark for the top 25 percent performance inthe US paper industry is an LTIFR of 0.6. The TechnologyCenter, Boston ofce, South Portland ofce and Allentownfacility all had zero LTIFR.
Local Communities
We take great pride in the local footprint we have createdin the communities in which we operate. Sappi’s historywithin North America dates back to the 1850s, and it’s nosurprise our civic involvement has also been active fromthe very beginning. Strong collaboration between Sappiand local institutions, organizations and partners reectsSappi’s commitment to support the community. In turn,the community is able to fulll more needs in areas suchas research and education, creating a positive cycle ofmutual benets.
Our Sustainability Ambassadors continue to build rela-tionships between Sappi and our local communities. In manycases, we have established our presence and positive impactthrough recurring community events such as the River Quest
program supported by our Cloquet employees. ThroughRiver Quest, each year over 1,200 sixth-grade students andteachers have a hands-on learning experience using the St.Louis River ecosystem as a core to the curriculum. Similarlyour southern Maine ambassadors have organized a majorSappi presence at the Portland area “Green Community”day, including papermaking demonstrations and insightsto best management practices in forestry.
Aligned with the company’s spirit of conservation, theSappi Coated Sales group volunteered with Chad Pregrackeand his team from Living Lands & Waters to clean up Penn’sLanding in Philadelphia, which sits on the Delaware River.The group spent half a day picking up various trash anddebris—enough trash to ll up an entire barge. While thework was challenging, the employees appreciated theopportunity to contribute to the local community.
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2015 Sustainability Report 17
Feeding Hungry Families at Christmas
Over $15,000—that’s how much employees at Sappi’s SomersetMill are expected to raise this holiday season to feed undernourishedfamilies in neighboring communities. The Christmas Dinner Harvestfood drive rst began back in 2008, when a longtime employeeheard on the radio that the holiday season presents the biggeststruggle for pantries trying to feed hungry families. He proposed anidea for a food drive at the mill, and it sparked immediate interest.
What started as a small collection of non-perishable items hassince transformed into a much larger initiative made possiblethrough the collaborative efforts of the local unions and salariedemployees. Thirteen volunteers lead the program, holding rafesand collecting monetary donations from the mill’s employeesbefore coordinating with grocery owner David Welch, from The
Village Market in Faireld and the Associated Grocers of NewEngland. Each grocer donates $1,000 worth of their own groceriesfor the community packages.
The volunteers then load up trucks and deliver supplies directlyto families and pantries.
“Every year, our volunteers return with stories,” said acommittee member. “One place where we brought a dinner, thefamily still had a dirt oor, and this was in 2013. The young boy sawwe’d brought a box of cereal and gallon of milk and eagerly askedhis mother if he could have a bowl of Cheerios. Even pantryvolunteers get excited—to have to tell a family that there’s nothingfor them has to be one of the toughest things to do, so they’reoften as grateful as those receiving the food.”
All volunteers recognize that it takes a dedicated team to makea difference of this scale. “The folks on this committee areincredible human beings who go out of their way to help folks in
need,” said one volunteer.“They come back each year with so much compassion, excited
and ready to do it again!”
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18 Sappi North America
Customers
Sharing our sustainability performance with our customersis an integral element of our brand promise. Buyers wantto know that they are working with reputable suppliers,eliminating risk from their supply chain. In addition to qualityproducts and services, we are delivering peace of mind topulp and paper buyers.
The Sustainability Customer Council has been a long-standing branch of our sustainability governance. We haverelied on the candid feedback of our Council to help usdevelop our goals, identify emerging issues and shapeour communication platform. Since inception, the grouphas been composed of members from our various CoatedBusiness customer segments, including merchants, printers,publishers, brand owners and graphic designers. In 2014 weadded representation from our release paper business andin 2016 we intend to add representation from packaging aswell as our pulp business.
Sappi’s Ideas that Matter Competition
More than a decade ago, Sappi established the Ideas thatMatter grant program to recognize and support designerswho use their skills and expertise to solve communicationsproblems for a wide range of charitable activities. Since 1999,Sappi has funded over 500 nonprot projects, contributingover US$12million worldwide to causes that enhance ourlives and our planet. Targeted primarily at the design com-munity, the program is open to individual designers, design
rms, agencies, in-house corporate design departments,instructors, individual students and student groups. Throughthis program we routinely see the power of good printdesign supporting good causes. Working together with ourcustomers, we aim to make a difference.
Let’schangelives.Sappi Ideas that Matter2015 Call for Entries
Sustainability Customer Council Members
Kathy Fernstrom , Key Accounts Manager, Publishing SalesGroup and Customer Council Chair
Hugh Allspaugh , Associate Partner, Marketing Strategy DisciplineLead, VSA PartnersCraig DeRusha , Vice President, Magazine and Book Paper,Hearst EnterprisesKeith Dunlap , Marketing & Environmental—Paper Services &CoC Central Ofce Manager, Quad/GraphicsWilliam Gates , Sustainable Supply Chain Executive, Macy’s
Mandy Hulke , Regulatory Supervisor, 3M Commercial SolutionsCharles David Mathieu-Poulin , Corporate EnvironmentalCoordinator, TC Transcontinental
Vicki Trieglaff , Director, Client Service and Production, CorporateReports Inc.Larry Westlake , Executive Vice President, Sandy Alexander
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Sappi Helps Notre Dame Use Design to Make a DifferenceFour years ago, Sappi’s Ideas that Matter program—which awardsgrants to those who use design as a driving force to make a difference—helped a group of professors and students at the University of NotreDame transform their idea for a storybook that educates South Africanchildren into a reality.
In 2011, the Kgosi Neighborhood Foundation, which aims toempower children and parents in South Africa through education and
job creation, approached Notre Dame’s Robert Sedlack and alumna Andréa Pellegrino, now of Pellegrino Collaborative. The communitiesthe foundation serves were experiencing xenophobic unrest, so PaulHorn, Kgosi’s director and a dual graduate of Notre Dame, turned tothe university as a natural partner to help combat the problem at itsmost basic level using design. Sedlack and Pellegrino welcomed thechallenge and immediately involved students in the university’s Designfor Social Change course to help deliver a solution.
The result of their efforts was a children’s book titled BloomingTogether . It tells the story of four distinct ower seeds that all end up inthe same garden, and as the owers begin to bloom, they realize thatit’s their differences that make the garden more beautiful. The storywas there, but to make the intended impact, the books would need tobe produced—and that’s where Sappi came in. Notre Dame applied for2012’s Ideas that Matter grant and walked away with a win. “ BloomingTogether and its accompanying educational materials would neverhave been published without outside funding,” said Pellegrino.
“Receiving that initial $50,000 was the catalyst for the publication anddistribution.”
But Sappi’s relationship with Notre Dame didn’t end with the 2012win. The success of the rst children’s book prompted the creation of asecond, this one tackling another of South Africa’s hard-hitting issues:HIV. “This story is about a little caterpillar named Khulani who has HIV,”said Brandon Keelean, Notre Dame alumnus and co-author of the
second book, Growing Together . “He starts at a new school and theother students have misconceptions about what the disease is. InSouth Africa, oftentimes the stigma brings awful distress, so wewanted to provide an entrance point to talk about the disease andpotentially reduce the stigma.” Keelean, Sedlack and others at theuniversity submitted the concept for the Ideas that Matter program in2013 hoping for a second win, and they were rewarded with a grant tohelp get their design off the ground.
In 2015, another group at Notre Dame—led once again bySedlack—applied for the grant, this time with a fresh focus: helpmothers in South Africa provide for their families. The initiative, titledENZA, aims to lift women out of poverty by equipping them withinstructional booklets and kits that will enhance job opportunitiesthrough the development of marketable skills such as sewing andceramics. Sadly, Sedlack passed away from ALS before Sappi had thepleasure of announcing his third win in four years, but the grant is nowhelping to ensure that his vision for the project comes to fruition.
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20 Sappi North America
Energy
After achieving signicant reductions in greenhouse gas emis-sions by 2013, we shifted the focus of our improvement workto energy intensity, or the total energy consumed to createa set unit of product. Analysis of our energy use employs acalculation method also used by the Department of Energyand the AF&PA. In this method, energy consumption frompurchased electricity is calculated in terms of fuel inputs toaccount for different fuel efciencies during power generationand efciency losses in power transmission. The equivalentenergy value is represented in terms of sources as per powersupplier provided data. The energy proles of our Westbrookand Somerset mills reect sales of Renewable Energy Credits(RECs), and the reduction in renewable energy consumptionis a reection of increased REC sales. Fuel switching driven
by cost management resulted in increased use of purchasedpower and natural gas at Somerset, causing an associatedreduction in total energy generated using renewable fuelsduring 2015. Tight supply markets resulted in a drop inthe use of biomass at the Westbrook Mill. Overall, energyintensity remained at compared to 2015. Our productionengineers use monitoring and analysis to identify oppor-tunities for reducing our energy intensity, either throughefciency improvements or capital investment. They areusing information gathered during detailed energy consump-tion studies this year to develop plans that will position usto reach our goal of a ve percent improvement by 2020.
Sappi NA Total Energy 2014 Sappi NA Total Energy 2015
Renewable77.0%
Coal2.0%
TDF / Waste Oil3.0%
PurchasedElectricity
7.0%
Fuel Oil4.0%
Natural Gas7.0%
Renewable71.0%
Coal2.0%
TDF / Waste Oil3.0%
Fuel Oil1.0%
Natural Gas13.0%
PurchasedElectricity
10.0%
Key Performance Indicators
Our pulp and paper products are derived from renewable resources, madewith high levels of renewable energy, and are designed to be re-used orrecycled. While it is difcult to imagine a more sustainable industry than forestproducts, not all paper companies perform equally when it comes to operatingsafely and sustainably. We track our progress annually, and in the followingpages provide readers an updated view of our performance in important areasof environmental and social responsibility. We track key metrics for ber,emissions, energy usage and the impact of our operations on air, water andsolid waste. We use this data when setting improvement goals related eitherto our operations or our interactions with our key stakeholder groups—employees, customers and our local communities. We remain committed touphold the principles of the Universal Declaration of Human Rights.
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2015 Sustainability Report 21
2015 Total Energy/Cloquet Mill 2015 Total Energy/Somerset Mill
Renewable81.6%
Natural Gas14.3%
Fuel Oil0.3%
PurchasedElectricity
3.8%
Coal2.8%
Renewable61.7%
TDF / Waste Oil6.2%
Fuel Oil2.8%
Natural Gas
12.8%
PurchasedElectricity
16.6%
Natural Gas5.9%
Nuclear5.6%
Renewable2.8%
Oil0.01%
Natural Gas0.11%Nuclear0.14%
Renewable0.76%
Coal1.0%Oil1.3%
2015 Total Energy/Westbrook Mill
Consumption of Alternate Fuels(TJ/yr)
% of Renewable Energy
Energy Intensity(GJ/admt a )
1 1
1 2
1 3
1 4
1 5
1 , 4 9 1
2 8 . 0
1 , 7 1 8
2 7 . 8
1 , 7 2 5
2 8 . 5
1 , 7 6 9
2 8 . 0
1 , 5 0 8
2 7 . 9
1 1 1 2 1 3 1 4 1 5
8 2 . 6
8 3 . 7
8 0 . 5
7 8 . 5
7 2 . 3
1 1
1 2
1 3
1 4
1 5
Renewable60.5%
Coal37.8%
Fuel Oil0.6%
Natural Gas0.8%
a Intensity metrics reect the impact per air-dried metric ton of saleable product (including market pulp).
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22 Sappi North America
Fiber
One hundred percent of our ber is procured in accordancewith the SFI ® Fiber Sourcing standard as well as the FSC ® Controlled Wood standard. These third-party certicationprograms provide assurance that wood-based productshave been procured from well-managed forests and arelegally harvested. While Sappi does not own any forestland
in North America, we do provide active forest manage-ment services for landowners within our mills’ procurementzones. We continue to support and recognize the effortsof multiple third-party certication programs, includingthe Forest Stewardship Council ®, the Sustainable ForestryInitiative® (SFI® ), the Programme for the Endorsement of
Forest Certication (PEFC) and the American Tree FarmSystem, a PEFC-endorsed certication program. The Pointof Harvest certied ber refers to wood ber harvestedfrom lands not otherwise certified by one of the forestmanagement standards but is harvested by logging profes-sionals who are trained and certied in practices designed
to conserve forestland. Our recycled ber is derived frompost-consumer sources and is also FSC ® certified. Allrecycled ber (RF) is purchased from producers within North
America and is processed chlorine free (PCF). All kraft pulpis elemental chlorine free (ECF).
2015 Fiber Types
2015 Total Fiber Sourcing
One hundred percent of our ber is procured in accordance with the SFI®
FiberSourcing standard as well as the FSC ® Controlled Wood standard.
2015 Total Fiber Certication
100 %
Sappi Made Kraft Fiber86.3%
Recycled Fiber2.4%
58.2 %Certied Fiber
Point of Harvest3.6%
SFI® /PEFC16.5%
FSC ®16.6%
FSC ® /SFI ® /PEFC21.5%
Purchased Kraft Fiber11.4%
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2015 Sustainability Report 23
Emissions
Sappi North America operates well below permitted emis-sions levels associated with on-site energy production inour combined heat and power plants. Overall, our per-formance in 2015 against these key emissions metricswas in line with 2014. Improvements at our Westbrookand Somerset mills resulted in lower particulate emis-
sions. The natural gas capital project at our Somerset Millprovides us with more manufacturing exibility. Balancingfuel mix in 2015 to optimize production costs resulted in lower
NOx and higher greenhouse gas emissions as compared to2014. We remain the manufacturer with the lowest carbonfootprint of US domestic producers of coated freesheetpapers. Sappi’s boilers currently meet most limits speciedunder the Industrial Boiler MACT rules due to past capitalinvestments and optimization of fuel mix and combustion
conditions. Equipment needed for further emissions controlat each of our three mills is included in our capital plans aspart of our annual maintenance spending.
0 . 3 6
0 . 3 3 0
. 3 6
0 . 3 7 0
. 4 0
2 3 3
9 6
SO 2 Emissions(kg/admt a )
NOx Emissions(kg/admt a )
Particulate Emissions
(kg/admta
)
GHG Emissions
(tonne CO 2 /admta
)
2015 GHG Emissions by Mill
(1K tonne CO 2 )
1 1
0 . 4 8
1 2
0 . 4 9
1 3
0 . 5 1
1 4
0 . 4 7
1 5
0 . 4 2
1 1
1 2
1 3
1 4
1 5 Scope 1
b
Scope 2 c
1 1 1 2 1 3 1 4 1 5
0 . 7 7
0 . 7 8
0 . 7 6 0 .
8 1
0 . 7 8
2 . 3 1
2 . 1 9
2 . 2
8
2 . 1 4
2 . 0 6
1 1 1 2 1 3 1 4 1 5
8 9
W e s t b r o o k
a Intensity metrics reect the impact per air-dried metric ton of saleable product (including market pulp).b Direct GHG emissions— emissions from sources that the company owns or controls.c Indirect GHG emissions from purchased electricity, steam or heat— emissions associated with the
generation of electricity, steam or heat.
0 . 2 8
0 . 0 8
0 . 2 4
0 . 0 9
0 . 2 6
0 . 1 0
0 . 2 9
0 . 0 8
0 . 3 1
0 . 0 9
3 2 9
S o m e r s e t
2 3 3
9 6
1 6 9
C l o q u e t
1 3 2 3 7
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24 Sappi North America
Water
All pulp and paper mills in North America use and treatwater in accordance with comprehensive environmentalpermits. Our North American mills use only surface watersources (rivers and lakes) and return treated water to thesame primary source. (At Cloquet, we return the water toa publicly owned treatment facility, which then returns to
Lake Superior.) We return a high percentage of the waterwe use, resulting in a minimal water footprint. Water that is
“consumed” in our operations is primarily made up of waterlost to the environment due to evaporation during the paperdrying process and a small amount of moisture containedin our nished products. A Lean Six Sigma project at ourSomerset Mill that focused on improved brownstock washingcontributed to a signicant reduction in Total Suspended
Solids (TSS).
Water Intake / Water Discharge(m3 /admt a )
Biological Oxygen Demand(kg/admt a )
Total Suspended Solids (TSS)(kg/admt a )
1 1 1 2 1 3 1 4 1 5
4 2 . 1
4 2 . 0 4 3
. 6 4 3
. 7 4 3
. 4
4 0 . 1
4 0 . 6
4 2 . 4
4 0 . 6
3 8 . 6
IntakeDischarge
0 . 6 5
0 . 8 3
0 . 5 4
0 . 6 3
0 . 5 4
0 . 5 8
0 . 5 5
0 . 5 5
0 . 4 5
0 . 5 4
1 1
1 1
1 2
1 2
1 3
1 3
1 4
1 4
1 5
1 5
a Intensity metrics reect the impact per air-dried metric ton of saleable product (including market pulp).
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2015 Sustainability Report 25
Solid Waste
Managing our solid waste and nding ways to minimize itremains a focus at all Sappi’s North American mills. Increasedlime kiln capacity at the Cloquet Mill increased internalrecycling of lime mud and decreased overall chemicalconsumption and waste to landll. Higher use of naturalgas at the Somerset Mill drove lower waste to landll from
ash generated during the combustion of biomass. At thesame time, we continue to increase our benecial use ofsolid waste program, which aids farmers by providing excesslime mud and boiler ash, amendments used to manage soilpH, improving growing conditions for certain crops.
Total Solid Waste to Landll(kg/admt a )
Benecial Use of Solid Waste(tonne/yr)
5 7 . 7
5 9 . 7
5 3 . 8
6 4 . 1
5 2 . 0
1 1 1 2 1 3 1 4 1 5
2 6 , 1
5 6 2 9
, 4 9 0 3
7 , 6 4 4 4
8 , 0 2 1
5 0 , 7
1 6
1 1 1 2 1 3 1 4 1 5
a Intensity metrics reect the impact per air-dried metric ton of saleable product (including market pulp).
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26 Sappi North America
Social Indicators
Sappi takes a very active approach to social responsibility,driving key initiatives in support of our three key stakeholdergroups: employees, customers and the local communitiesin which we operate. In addition to providing skilled jobsand continued job training, we improve the lives of peopleby promoting freedom of association, nondiscrimination
and the abolition of forced and child labor. We also upholdthe principles of the Universal Declaration of Human Rights.
Sappi Limited has been a signatory of the United NationsGlobal Compact (UNGC) since 2008. We submit an annualcommunication on progress that describes our company’songoing efforts to support the social and environmental prin-ciples of the UNGC. This report can be found at sappi.comunder the “Group Sustainability” section. Set forth below
are key social performance indicators relative to the North American region in FY15.
Age Demographic
Average Hours of Training per Year perEmployee by Employee Category
Workforce by Gender
Total Number and Rate ofEmployee Turnover
50+58.9%
Female338 / 16.4%
Male1,722 / 83.6%
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2015 Sustainability Report 27
The Ten Principles of The United Nations Global Compact:
Human RightsPrinciple 1: Businesses should support and respect the protectionof internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in humanrights abuses.
Labour
Principle 3: Businesses should uphold the freedom of associationand the effective recognition of the right to collective bargaining;Principle 4: the elimination of all forms of forced andcompulsory labour;Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect ofemployment and occupation.
EnvironmentPrinciple 7: Businesses should support a precautionary approachto environmental challenges;Principle 8: undertake initiatives to promote greater environmentalresponsibility; andPrinciple 9: encourage the development and diffusion ofenvironmentally friendly technologies.
Anti-CorruptionPrinciple 10: Businesses should work against corruptionin all its forms, including extortion and bribery.
For more information, visit unglobalcompact.org .
Percentage of Employees Covered by CollectiveBargaining Agreements
Percentage of Women in Leadership of LeadingNorth American Pulp and Paper Companies
Sappi Contributions
Non-Union35.5%
Union64.5%
Benets/Taxes/Social SecurityUS $58 Million
Salaries/WagesUS $181 Million
Major North American Pulp and Paper Companies Sappi NA
MenWomen
5 1 1 6
. 7 %
5
2 2 8
. 6 %
3 1 2 5
. 0 %
6
4 4 0
. 0 %
7 1 1 2
. 5 %
8 0 . 0 %
1 3
3
1 8 . 8
%
1 4
2
1 2 . 5
%
1 0
2 1 6
. 7 %
8 1 1 1
. 1 %
4
6 6 0
. 0 %
7
3 3 0
. 0 %
1 4 . 3
%
6 1
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“The engagement of our highly skilled workforce is what makes Sappi’s business environment
special. We’re different because our employees are passionate about what they do and that shows up in how we make, service and sell allof our products.”
Mark Gardner,President and CEO
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Sappi North America 2015 Sustainability Report
The names, symbols, logos and all other intellectual property of the companies,brands and people appearing herein are the exclusive property of their respectiveowners and should not be interpreted as an endorsement of or by Sappi; anylegal and equitable rights in their intellectual property are exclusively reservedto those owners.
The data, specications and/or certications provided herein are current as of thedate of printing and may change without notice in Sappi’s discretion.
SAPPI is a trademark of Sappi Limited. MCCOY, OPUS, SOMERSET, FLO, the
eQ logo, OFF REGISTER, SAPPI ETC., ULTRACAST, ULTRACAST STRATUM,WARREN, ADVA, VERSAKOTE, LUSTERPRINT and the SAPPI ETC. logo areregistered trademarks and LUSTERCOTE is a trademark of Sappi North America.
© 2015 Sappi North America. All Rights Reserved.
Production Notes
CoverOpus Dull Cover 100lb/270gsm, 4-color process,match gray plus overall satin aqueous
InteriorOpus Dull Text 100lb/148gsm, 4-color process,match gray plus overall satin aqueous
Front Cover EmployeesLeft: Laura Thompson, Boston, MA Center: Donald Bois, Westbrook MillRight: Sherwood Swain, Somerset Mill
Back Cover EmployeesLeft: Dale Leroux, Westbrook MillCenter: Debbie Tozier, Somerset MillRight: David Niles, Westbrook Mill
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