Sappi Fibre Trail – Mpumalanga

The Fibre trail

Fibre trail The

Adding value and building communities through sustainable business practices

MPUMALANGA

FAST FACT:

H Giving back

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International P3 acknowledgement

as anyone ever asked you how many teaspoons of forestry you would like in your coffee?

That’s because the low-calorie sweetener, xylitol, is derived from the very trees that make up the Sappi plantations.

Based on the success of the hemicellulose sugar extraction demonstration plant at Ngodwana Mill commissioned in 2017, Sappi is now further progressing the development of the biorefinery capacity. In 2019, we will be constructing a Xylex® demonstration plant at the mill to allow production of xylose, xylitol and furfural. A low-calorie sweetener, xylitol has positive dental properties and produces no insulin response, so it is suitable for diabetics. Furfural is a The sweet spot: Ngodwana Mill opened its demonstration versatile green industrial chemical extraction unit in April 2017 to extract a sugar rich prehydrolysate derived from C5 sugars with a stream from the PHK pulping process. diverse range of derivatives.

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Easier said than done, it took Sappi’s Technology Centre and a team from Ngodwana Mill 200 cooking processes and over 15,000 analyses to develop the novel extraction technique to achieve the desired sugar recoveries from the trees at the lowest possible water usage.

SHARED VALUE IMPACT: Potential creation of job opportunities █ The product offering of these second-generation sugars do not impact food security █ Meaningful revenue from a new business segment █

Education opens doors and ignites dreams

Education is the gateway to new ideas, new possibilities and new opportunities. It is the path that leads from poverty to potential,” said Sappi’s Group Head of Human Resources, Fergus Marupen, about the opening of the Ngodwana Training Centre - a skills hub that has provided hope and enabled opportunities for the unemployed to find their passion and shine in their abilities.

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Preserving our P8 beautiful landscape

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Standing proud: “This opportunity really changed my life,” says Lindisizwe Shongwe, one of the first attendees at the Centre.

Today he is a beacon of hope to his community – having overcome struggles with unemployment and providing for his family. After taking a chance and enrolling at the Ngodwana Mill’s Skills Centre, his successful application saw him receiving skills training in various areas, including entrepreneurship, safety and painting. He then applied for a process trainee position and today is employed in Sappi’s stores division. “I would like to encourage other young people to grab every opportunity that comes their way and to never lose hope. Thanks to Sappi, I can now assist my family at home. I’m proud of what I have achieved, and I can’t stop thanking God for this opportunity.”

A holistic approach: Phase one aims to create shared value, which includes basic skills, basic trade, business essentials and life skills; phase two consists of institutional training, including apprentices, trainee technicians, engineers in training, and process and operational training; and phase three focuses on improving and maintaining the existing employees’ skills. The centre also covers new concepts and advanced engineering.

For Ngodwana Mill, the centre is also good news as it affords the mill a bigger pool of plant-ready artisans-in-training for its own purposes. The mill currently has 103 trainees, of which 40 are student artisans. The others are from various disciplines including production, process trainees and work integrated learners.

Sappi Ngodwana Mill General Manager, Naresh Naidoo, explains that the aim is a skills centre which produces highperforming, skilled individuals who have solid practical training.

“Our motto – ‘Sinikeza abantu amathuba okuphumelela’, which means ‘giving people opportunities to succeed’ – is therefore perfectly chosen.”

Ngodwana Mill General Manager, Naresh Naidoo, test driving the SappiPROTEC Electric Vehicle. Read more about the SappiPROTEC partnership on page 10.

IN NUMBERS

Forestry as a career

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Natural Heritage sites proclaimed on Sappi property since 2000.

Nature reserves gazetted on Sappi properties. of the water we extract is returned to the environment.

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Cooking up a storm: The Mandela Day MasterChef challenge puts the culinary skills of Sappi’s local leadership to the test in a cooking competition in aid of the Nelspruit Community Forum (NCF). Sappi Forests, Ngodwana Mill and Lomati Sawmill General Managers each make up a team of up to five members, who compete in cooking a three-course meal on open fires at the outdoor receiving bay at the NCF. After stringent judging, the food is donated to the NCF, who feed local families in need.

#CommunityMatters: Living the legacy

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ommunity support takes centre stage in July when Sappi Lowveld commemorates Mandela Day during a month-long drive to devote time to the underprivileged.

This also signals the start of Sappi’s #CommunityMatters campaign, which seeks to encourage individuals and support organisations by shining a light on how their efforts make a difference in their community, thereby honouring Madiba’s legacy.

Sappi’s employees and contractors embrace this time of giving with enthusiasm, showing great unity, teamwork and caring, by supporting community-based organisations, crèches and schools, thereby improving the livelihoods of our surrounding communities.

PRIVATE TREE FARMERS PURSUE EXCELLENCE

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he Sappi Forests’ Forest Stewardship Council (FSC) Group Scheme Farmer of the Year Award celebrates excellence in the management of plantation forestry on private land. 42 farmers in Mpumalanga and KwaZulu Natal participate in the scheme. According to Sappi’s Group Scheme Manager, Axel Jooste, growers who supply Sappi with timber have an option to join the scheme. The 2018 winner of this prestigious award is Braam Steenkamp of the Warburton Sawmill and farm in Warburton, in the Highveld. Braam, a commercial tree farmer, farms pine and eucalyptus trees.

Certification is achieved by passing an assessment carried out by an FSC-accredited certification body, with forest management conformity assessed against the FSC Principles and Criteria.

The evaluation process consists of an in-depth review of forest management processes and their environmental, social, and economic impact. Once any non-conformities have been addressed satisfactorily and criteria have been met, the farmers become members.

where both people and the environment benefit. Sappi also pays a premium to their FSC farmers, for timber that is FSC certified.

The farms in Sappi’s scheme are audited and scored annually, by independent auditors, to ensure standards are maintained. The top performers are recognised in the Farmer of the Year Awards programme.

The advantage of FSC certification is that all timber from certified farms carry the FSC trademark, indicating that these products originate from sustainable, well-managed farms

Debunking common paper myths from Myth:

Making paper destroys forests

Myth:

The paper I use consumes a lot of energy

Myth:

Cutting down trees to make paper is bad

from FACT:

from

No, in fact, paper relies on sustainable, continuous forest growth.

Every tree that is harvested is replaced, ensuring a continuous cycle.

FACT:

Yes, but surprisingly less than you’d expect. Does 500 kilowatt-hours and 200kg of paper sound like a lot? This is the average amount each of us use every year and is the equivalent to powering one computer continuously for five months or burning a 60w light bulb continuously for one year.

FACT:

No, it isn’t. Reading a newspaper can consume 20% less carbon than viewing news online. Producing paper for one person’s annual use creates between 130kg – 250 kg of CO². This is roughly the equivalent to the CO² produced by an average family car over a distance of 965 km.

“Forestry, paper and packaging are among the most sustainable industries in existence.”

Braam Steenkamp “I am excited and proud to be the recipient of Sappi’s FSC Farmer of the Year Award. It is testimony of the passion I have for farming, and the hard work and commitment of the people who work for me. Achieving certification is an arduous process, but the benefits outweigh the effort by far. There are numerous advantages to being FSC certified. Amongst others, it streamlines your business processes, and improves your overall operational efficiency. FSC also requires close contact with your employees, your neighbours and your local community, which for me, has resulted in a great working relationship with them.

I am also guaranteed of a market for my timber, which provides job security to my people,” says award winner Braam Steenkamp.

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BEST OF THE BEST AND LAUDED INTERNATIONALLY

Sappi Mother’s Day Concert lauded internationally

What makes the Sappi Mother’s Day Concert stand out from so many other events?

Every cent that is earned from ticket sales goes straight back to the Lowveld National Botanical Garden for conservation projects.

Since the Sappi Concerts started in 2000 over R840,000 in concert income has been donated to the Garden.

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e couldn’t be prouder of the Sappi Mother’s Day Concert, which in its 20th year, continues to exceed expectations. And now the international community has also taken notice!

The 2019 International Association for Business Communication Gold Quill Awards committee awarded a coveted Gold Quill to the Sappi Mother’s Day Concert. The project is one of 202 entries across the globe that has been awarded world-class status by the IABC. This award follows on the IABC Africa chapter, which awarded its Annual Best of the Best Award to the Concert, in 2018.

Lauded: The recipients of this auspicious award are: Media Match (Cecelia Porter), Sappi (Elsabe Coetzee) and IdeeBüro (Caren Venter). The 2019 Gold Quill Awards are presented at the IABC World Conference in Vancouver, British Columbia, Canada.

The recognition is good news to local companies and people who have been supporting the event and we thank all our concert partners and supporters, past and present, for helping to build the Concert into the excellent event that it is now.

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t the heart of Sappi’s operations is nurturing the natural environment. Without a healthy ecosystem, we can’t survive and therefore managing our environmental footprint is non-negotiable. requirement, dealing with, amongst other things, the location of critical biodiversity areas (CBAs) on or near the plantations, and the presence of redlisted plant and animal species.

This means that not only is rigorous environmental management a key focus, but the company works toward upholding legal requirements, and best practice.

“To this end, Sappi undergoes various audits and maintains several certifications, including Forest Stewardship Council Certification (FSC), which assures that Sappi’s products are ethically farmed,” says Peta Hardy, Area Environmental Manager.

Peta Hardy, Area Environmental Manager – Sappi Forests, MPU

A detailed assessment of high conservation values within the environmental sphere is also a

Nurturing our environment What do the audits mean?

Different environments have different certification requirements, but above all the goal is to ensure an operation where nature, people and products are managed in a sustainable manner.

This means that in addition to looking at forestry and the environment, auditors also look at other issues such as: stakeholder relations, workers’ rights and employment conditions.

So it’s not just about the trees?

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Almost a third of the land that Sappi manages is in its natural state. There are over 27 red data plant species recorded on Sappi’s Mpumalanga plantations and several protected animals including oribi, serval, the African Clawless Otter, leopards with cubs, wild dogs, peregrine falcon, crowned crane, Southern bald Ibis and the African Crowned Eagle.

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DID YOU KNOW?

The forestry industry of a generation ago is not the same as it is today. The birth of sustainable forest management can be traced back to the Earth Summit in 1992, where the need to incorporate social, environmental and economic needs when managing forests was emphasised. “As a forestry enterprise, we place equal weight on each of these three pillars of sustainable forest management” says Peta.

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SAPPI MANKELE MOUNTAIN BIKE CHALLENGE

If you’ve got the pace, we’ve got the space

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ultivating some of the world’s most beautiful forests has its perks and once a year we get to share all the mud, guts and glory with outdoor enthusiasts during the Sappi Mankele Mountain Bike Challenge and Family Fun Day.

COLLABORATING TO PROTECT AN ENDANGERED TREE

Protecting the great Pepper Bark from extinction W

arburgia salutaris, also known as the Pepper Bark, was once widespread in Southern Africa, but today it is rated as ‘endangered’ in its natural habitat in South and Southern Africa.

This tree’s greatest gift has unfortunately led to its demise as its medicinal properties are highly sought-after.

Unsustainable poaching of components like bark, stems, roots and leaves, have resulted in wild populations going extinct in its natural habitat.

In South Africa, the species is now found mainly in protected

areas and as ornamental trees in domestic gardens.

Believing in the value of preserving this precious tree, Sappi got involved in a project in 2014 with the Kruger National Park where seedlings were propagated and young trees were given to traditional healers on its borders, and distributed to the general community members through managed distribution and custodianship. The project has been immensely successful, with over 30,000 seedlings grown and distributed to date.

The tree is a challenge to grow from both seed and cuttings, and

With over 700 people flocking to experience the exhilarating forest tracks and sweeping views over the Lowveld, the event offers the opportunity to see the best that Sappi’s Mooifontein, Pine Valley and Rhemay plantations have to offer, and it is not uncommon to see bushbuck and other wildlife along the way.

Play time: Back-breaking climbs, bush tunnels, outback trails and superb single-track: that’s what the Sappi Mankele Mountain Bike Challenge is all about. This 5-in-1 challenge is a mixed bag of gritty mountain biking that tests your technical ability and climbing capacity.

when under stress in the wild, holds back on seed production.

Through the formation of the Warburgia project, funded

by Sappi, a working group of scientists and naturalists has been established to resolve these challenges. Gene banks and seed orchards have been created within the working group partnership, which consists of Karin Hanwegg from the Agricultural Research Council in Mbombela, Willem Froneman from SANBI Nelspruit, David Everard from Sappi, Malcolm Stainbank, Michele Hofmeyr and Tim Neary.

“Sappi’s Mankele family day is about much more than just cycling. It’s about family and friends and enjoying the beauty that surrounds us in nature.”

– Dietmar Schroeder, General Manager - Sappi Forests MPU

DID YOU KNOW?

The Pepper Bark is the only known tree under armed guard in a protected area in South Africa. It is hoped that the wild populations will regenerate themselves naturally once not under direct threat and stress from poaching. The Warburgia Salutaris collaboration has allowed for an easy working template for endangered trees that are a challenge to grow and can be applied to other threatened and endangered species. As such, work on the next project in 2019 will commence with the Prunis Africana.

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MONITORING THE BREEDING SUCCESS OF CROWNED EAGLES – A SAPPI PROJECT IN THE GREATER NELSPRUIT AREA

A Lowveld Love Story

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onitoring the breeding success of crowned eagles – a Sappi project in the greater Nelspruit area. The monitoring of the breeding performance of crowned eagles on Sappi plantations forms part of a wider population monitoring programme in Mpumalanga which has been in progress since 2005. This information not only helps to improve the breeding success of the eagles but also helps to understand the plantation “ecosystem” and interface between the planted trees and natural areas.

Magnificent raptors

Why forestry could be this magnificent bird of prey’s friend?

Sappi is one of the largest landowners in South Africa and approximately one-third (about 140,000 hectares) of our land is set aside and maintained by Sappi Forests for conservation purposes. The company conserves the natural habitat and biodiversity found there, including indigenous forests and wetlands, enabling flowers, grasses, plants, birds and animals to flourish in abundance.

By observing the behaviour of these great predators, a lot can be learnt about the health of the forest ecosystem, and the dynamics of the animal populations living within the planted/natural landscape. Grey duiker, for example, are plentiful within the plantations, and appear to be an important part of the crowned eagle diet. Although habitat transformation is listed as a threat to the survival of most plants and animals, crowned eagles appear to use the plantation habitat effectively.

Crowned Eagles can sometimes be spotted in the sky above Mbombela and the surrounding area. They are large birds, with a wingspan of up to two metres and can weigh three kilograms or more, depending on whether they are male or female.

The raptors are territorial and nest in a variety of big forest trees such as cabbage trees, matumis and frequently in large eucalyptus trees. They form life-time partnerships and in forest habitats, raise a chick every second year, caring for the fledgling for up to 18 months after hatching. Annual breeding has been observed in savanna environments and seems to be influenced by several factors, including availability of prey.

Vulnerable and at risk The ability of crowned eagles to prey on domestic animals and even farm livestock increases the likelihood of them being viewed as ‘problem animals’ and being shot or poisoned. This, together with the threat of baboons and increasing human settlement, places them at risk and may result in declining populations.

Nesting sites

Photo: Dr Garth Batchelor It is vital to understand the requirements of the species and to appreciate the ‘interconnectedness’ of life. It is not only the birds themselves that are important but also the species they depend on for their survival.

There are at least 43 crowned eagle nesting sites in the greater Mbombela area (Malelane, Dullstroom, Graskop and Barberton). Not much was known about the breeding success of these birds and what impact habitat alteration was having on populations. As 20 of the nests were in timber plantations of which 11 were on Sappi Forests’ property, it gave Sappi the opportunity to support such a monitoring project. This will help forestry limit their impact and promote synergy between production and conservation.

Low breeding performance Peta Hardy, Sappi’s Environmental Manager in Mpumalanga, said during 2016/2017 season there were 18 successful breeding attempts in the greater Mbombela area, resulting in fledglings. Of the eight active nests known to be on Sappi land, only one pair produced a chick. According to Dr Garth Batchelor, the raptor monitor for the project, research on raptors in the higher latitudes in Europe has shown when prey species such as voles and lemmings do not have a good breeding year, the raptors feeding on them also do not breed, or fewer breed.

Photo: Dr Garth Batchelor

Acknowledgements: Dr Garth Batchelor, monitoring of crowned eagles and photographs; Peta Hardy of Sappi.

PULLING OUT ALL THE STOPS TO PUT SAFETY FIRST

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n 2017 Sappi Forests implemented the Stop and Think Before You Act (STBA) safety initiative to lead people to making decisions that would change employee behaviour, so that Sappi could become twice as safe by 2020.

STBA has proved to be extremely successful, with research showing that the audience loved how we adopted a storytelling approach to safety communication, using graphics and symbols.

– Steve Binnie, CEO Sappi Limited

SHARED VALUE IMPACT OF SAPPI’S STBA A survey conducted to assess the uptake of the STBA campaign amongst Sappi Forests’ contractors in Mpumalanga found that: of companies have included STBA in their staff induction

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Visit aviscarsales.co.za

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Taking responsibility: The campaign has been rolled out to our own employees and contractors. Our aim is to reinforce the message: I follow the safety rules because I want to, not because I must.

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81%

of companies use STBA for incident recall

“OUR VALUES ARE UNDERPINNED BY AN UNRELENTING FOCUS ON COMMITMENT TO SAFETY.”

A WORLD OF FRAGRANCE, JUST FOR YOU! www.mopani.co.za

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W O O D F I B R E M AK E S OU R WORLD G O AROUND Just how much wood do you consume in your daily life? It’s with you every step of your day!

06:00 Imagine starting a regular morning without shampoo, vitamins, a facecloth, makeup, a hair dryer, or even toilet paper. All these products contain dissolving wood pulp, made from wood fibre.

The Absa Business Day Supplier Development Awards celebrate companies in South Africa who have made a remarkable contribution to successful supplier development. Sappi Forests won the Women’s Empowerment Award and Rural Economies Award and was also recognised as an overall finalist and a finalist in the Innovation category. The awards were based on Sappi’s contribution to supplier development in South Africa through Sappi Khulisa.

07:00 What’s for breakfast?

Wood fibre is in cereal boxes, milk cartons, reduced fat products such as yoghurt and ice cream and plastic packaging. It’s even in Vienna sausage skins, various cheese products, thickening and emulsifying liquids in your favourite sauces and salad dressings and even domestic cleaning products.

13:00 ood fibre is there W when sharing special moments: it’s in gift wrap and ribbon, disposable cups, plates and serviettes. It’s in the wax paper that holds cupcakes, and the packaging film that is used to wrap toys.

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ven your ride home is E made all the better by wood fibre. It’s in the high-quality yarns in your car’s upholstery, and in the high quality plastic used in the dashboard and door panels. Wood keeps the roof over your head and Sappi’s Lomati Sawmill in Barberton provides structural timber used to build the roof trusses. Dissolving Wood Pulp is what makes paint stick to walls.

ood fibre is with you W when you are enjoying quality time: it’s in your favourite glossy magazine, newspaper, TV screen, children’s toys and your spectacle frames.

I t is with us when we go to bed. You will find wood fibre in your acrylic blanket, viscose sponge pillow, soft rayon socks, and even in your slippers.

We’re getting noticed!

From slipping on that beautiful viscose dress, to applying your makeup, you have more than likely been in touch with a wood fibre end-product containing Dissolving Wood Pulp. Wood fibre is a natural product. It is renewable, recyclable and bio degradable.

Sappi’s biotech makes every tree go so much further

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f you have ever looked at a tree and thought that paper was the only product derived from its fibre – look around you: nearly every object we use today contains wood fibre in some form.

From your touchscreen, to cosmetics and pill capsules, and food packaging – it all contains nanocellulose derived from Sappi’s innovative biotechnology solutions.

We beat 699 entries from 27 countries to win the coveted Gold Quill Award of Excellence for Safety Communication Management from the International Association of Business Communications (IABC) for the Sappi Forests’ Stop and Think Before You Act safety initiative. In addition, the work Ngodwana Mill received the was also selected as one of eight Kruger Lowveld Chamber of Best of the Best entries from 258 Business and Tourism’s Annual awarded entries worldwide.

Environmental Award.

With the goal of extracting maximum value from every tree, Sappi entered the biotech arena in 2016 to add several

exciting product ranges to its portfolio of paper solutions.

By responding to consumer demand for renewable products, Sappi Biotech has continued to innovate in new growth segments, effectively strengthening the overall core business model.

Our dissolving wood pulp products are used worldwide by converters to produce viscose fibre, pharmaceutical products as well as a wide range of household and consumer products.

How much water does a tree use?

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Knowing our boundaries: Delineation training at Sappi Lothair Plantation.

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Responsible water use: Sappi is mindful of our water use and our plantations are established according to strict licencing conditions. We don’t plant in water sensitive areas and we generally do not irrigate our crop after the seedlings leave the nursery.

S T R AT E G Y CONCEPT C R E AT I V E D E S I G N R E F I N E

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Full circle.

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ll plants need water to grow and survive. The amount of water they need, and use depends on a very wide range of factors like water availability, soil and climatic conditions. Other factors include the nature, size, age and health of the plant, as well as competition from other plants. This also means that water usage varies across the day. The best way to determine water usage is to compare a catchment area that is planted up, to one that is not.

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EYES OF A HAWK

AN ARSENAL OF SOCIAL SKILLS

– a long term view for planning decades ahead is necessary to ensure that anything done today, ultimately ensures a sustainable supply of wood for years to come.

– the forester must be able to live and work in remote areas, whilst having the skills to manage a broad base of people, including community members, stakeholders and contractors.

TECHNO GEEK

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– modern forestry has evolved to include intricate systems and big data that is used to plan operations and draw up budgets that span decades.

overed: Lomati Sawmill has kept the roof over your head since 1971, producing kiln dried Southern African pine lumber from saw logs, supplied by Sappi Forests.

The mill annually produces 90,000m³ of structural and industrial lumber.

Various lumber products are produced for, among others, the building, furniture and packaging industries. Since opening, the mill has undergone several expansions which include modernisation of the Wet Mill equipment with an increase in capacity and modernisation of their Kilns and Finger Joint Plant to match the improved capacity.

A HEART OF GOLD

– foresters are as much custodians of the indigenous forests as they are of the commercially planted timber. This means even the smallest of creatures are treated with respect.

GREEN FINGERS

– Overseeing 30,000 new trees every day that are planted to replace those that are being harvested in Mpumalanga, ensuring a permanent cycle of new trees, producing more oxygen and creating a habitat for thousands of different species.

STAMINA

– during fire season the forester is on high alert to assist in any firefighting efforts. This means he needs to handle 400 kg’s of equipment on mobile firefighting units.

WATCH THAT FOOTWORK – quick on their feet, the forester must be flexible and able to adapt to any daily challenges presented like slippery roads caused by downpours or breakdowns in equipment.

NO “CHOP”

– in fact, over 35,000 trees in Mpumalanga are harvested every day, of which 60% is done mechanically by external contractors. It is the forester’s responsibility to ensure that the contractors are managed in such a way that there is a continuous flow of wood to the mills.

Like what you see? Become a forester!

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ur company is progressive, ambitious and ever-changing and we want dynamic people, who are excited by the opportunities and challenges our industry presents, to join us. We’ll support your career and personal development with training, plus a range of benefits too.

To become a part of the Sappi team go to https://www.sappi. com/careers-hub-sa to register and then apply for a host of opportunities like vacancies, bursaries, scholarships and inservice training opportunities.

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IF YOU’VE GOT THE DRIVE, WE’VE GOT THE POWER!

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SAFE GUARDING OUR INDIGENOUS TREASURES UNDER THE NATIONAL STEWARDSHIP PROGRAMME

Preserving our beautiful landscape Photos by Peta Hardy

Schismaderma carens: also called the Red Toad. It is widely distributed and not threatened.

Test your knowledge The answers can be found below.

1. How many employees does Sappi Limited have worldwide? a) 12,600 b) 7,800 c) 43,000 2. Sappi has manufacturing operations on three continents in eight countries and customers in over how many countries?

Conservation in action: Sappi has set aside approximately 5,000 hectares of pristine grassland (including thicket and forest) in Mpumalanga to be formally declared as gazetted Nature Reserves. To date, four Nature Reserves have been gazetted, three of which are located on Twello plantation in the Barberton area and one near Ngodwana. By formally declaring these areas, Sappi is committed to the long-term protection of extensive tracts of land, harbouring rare and threatened species.

a) 47 b) 150 c) 82

3. Sappi’s Dissolving Wood Pulp brand is known as…

a) Verve b) Fibre c) Sappi

4. Ngodwana Mill’s products are used by the newspaper, packaging and what other industry? a) textile industry b) steel industry c) building industry 5. Which industry primarily uses Lomati Sawmill’s structural timber? a) packaging industry b) furniture industry c) building industry

Klipspringer: The klipspringer is generally found in rocky terrain.

They tend to stay together in pairs and have been spotted within Sappi’s Nature Reserves.

6. How much waste paper (brown cardboard) does Sappi ReFibre annually collect for own use in the paper making process? a) 140,000 tons b) 50,000 tons c) 200,000 tons 7. Sharing value in rural communities, Sappi ReFibre has helped establish 88 businesses, which created 484 jobs in 2018.

a) True b) False

8. How much of Sappi’s own-grown timber is FSC Certified?

We’ve got you: The Aloe craibii is a critically endangered species that is being protected in Sappi’s conservation areas.

a) 50% b) 100% c) 85%

9. How much of the 387,000 hectares of plantations, owned and leased by Sappi is managed for biodiversity conservation? a) about a third b) about a quarter c) nothing 10. T he amount of standing timber on Sappi land is:

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Answers Test Your Knowledge

Semnodactylus wealii: also called Weale’s running frog and the Long toed running frog. This species breeds in pans, ponds and marshes.

Strongylopus grayii: also called Gray’s stream frog. It is widespread, abundant and is not threatened.

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a) 11,000 million tons b) 27,588 million tons c) 40 million tons 1a 12,600, 2b 150, 3a Verve, 4a Textile, 5c Building industry, 6a 140,000, 7a True, 8b True, 9a About a third, 10b 27,588 tons.

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Buff-streaked Chat: Found in rock habitat within sourveld grasslands.

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NGODWANA MILL’S RANGE OF PREMIUM QUALITY PRODUCTS

Ngodwana Mill’s products

go from strength to strength

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godwana Mill is a truly diverse operation, extending its reach with a vast variety of products. It is the preferred choice of a growing list of local and international customers, with 53% of product sold in the domestic market, and the balance exported to Europe, Africa, Indian Ocean Islands and the Far East.

Total pulp production is

450,000 tons.

The mill has a total production capacity of

810,000 tons per annum.

Total paper production is

360,000 tons.

250,000 tons of Dissolving Wood Pulp is produced for the textile industry.

Sappi launches Verve

200,000 tons of unbleached pulp is produced for the manufacture of brown cardboard boxes.

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This is made up of 120,000 tons of Newsprint used by customers such as the Caxton group to print newspapers.

Verve represents a fusion of science and nature, determination and energy, passion and innovation. It is more than just a product: it’s an approach to the way we do business - with enthusiasm, passion and energy.

240,000 tons of Kraft Liner Board (KLB) is produced for the packaging industry corrugators use the liner board to line the inner and outer layers of brown cardboard boxes.

The mill also produces 100,000 tons of groundwood (mechanical pulp) which is used for newsprint production, and 55,000 tons of recycled paper (essentially used brown cardboard boxes) which is used to supplement scarce virgin fibre in the paper making process

REACHING OUT TO COMMUNITIES THROUGH AN INTEGRATED FORUM STRUCTURE

You have our ear!

oday’s world is largely driven by brands: that allencompassing idea of what a company stands for and the quality expectation. To this end, Sappi has launched Verve - our umbrella brand for dissolving wood pulp (DWP), giving us a competitive edge in the growing global market.

It sets us apart from our competitors as we work to co-create new solutions for the Planet, the People who inhabit it and the Prosperity of all. Ngodwana Mill is proud to be part of Verve.

Eau de what?

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godwana Mill has its own unique scent, but unfortunately it won’t be making its way to the perfume aisle any time soon! Sappi is continuously working on reducing the Ngodwana Mill odour as we do not wish to cause any discomfort to the community, or our own employees and their families.

What is that smell?

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o engage whole heartedly with communities in our areas of operation, Ngodwana Mill and Sappi Forests have established an Integrated Community Forum.

That rotten egg smell is Total Reduced Sulphur (TRS) gases, which is unfortunately part and parcel of the wood pulp cooking process.

What does the mill do to address odour?

Industry engineers are continually looking for new ways to reduce or eliminate odour.

Is it harmful?

The U.S. Environmental Protection Agency (EPA) has determined that these TRS compounds are an “odour nuisance” and not a health concern at the levels found in the atmosphere around kraft mills.

What can be done?

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The human nose is extremely sensitive to TRS emissions – in fact, your nose is so sensitive to TRS that if you place a pinprick of this in an Olympic size swimming pool you would still smell it. The odour is more detectable in winter when weather patterns inhibit vertical dispersion.

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Topics for discussion include: small-, medium- and micro enterprises, local recruitment, verification process of locals, local community skills training, Asset Based Community Development mapping and projects, local corporate social investment, local corporate social investment projects, environmental and conservation updates and community issues and proposed solutions.

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Fully represented: The forum structure comprises: management, human resources, communication and procurement representatives, local Amakhosi and tribal council, local counsellors and ward representatives, local business groups, local environmental groups, community members and Abashintshi.

The mill uses air pollution control equipment to reduce the odours that are formed. As part of the mill’s normal operation, TRS compounds are sprayed with chemically treated shower water, and captured and incinerated at high temperatures in a kiln, which significantly reduces the odours from the process.

Did you know?

WE SERVE THE COMMUNITY w w w. j m s e c u r i t y. c o . z a

10

The Fibre trail

EARLY CHILDHOOD DEVELOPMENT

Getting a head start

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ecognising that the emotional, social and physical development of young children has a direct impact on their overall development and on the adults they will become, we began investing in Early Childhood Development (ECD) in 2014.

“ The first five years have so much to do with how the next 80 turn out.”

Investing in our future: Sappi developed an ECD Centre of Excellence at Entabamhlophe School in the Elandshoek community in partnership with Penreach, the largest teacher development programme in Africa, at a cost of over R3 million from 2014 - 2017.

In addition to establishing the ECD centre, the facilities were also upgraded.

– Bill Gates, founder of Microsoft Corporation.

Taking it further: In 2018, Sappi established an ECD network in partnership with Penreach in the Emjindini Township in Barberton, opening 11 ECD centres and three toy libraries. Nine of these ECD centres will be accredited and registered with the Department of Social Development (DSD) in 2019. Once they are accredited they will receive a stipend from DSD which will result in a decrease of school fees. The accredited centres will become Penreach ECD alumni, and they will be supporting new and surrounding ECD centres to eventually create 20 new centres by 2020.

Successes: Literacy and Numeracy Development at Entabamhlophe School

100% 90%

Overall improvement

34% 30% 10%

Grade 1

Grade 2

Grade 3

80% Grade

3

70% 60% A win-win: In 2019 Penreach will launch Smart Start in the Emjindini community. Smart Start is a playgroup programme hosted by individuals in their homes. Hosts arrange two to three playgroup sessions per day and receive a stipend from Smart Start. Sappi Penreach programmes offer parents in vulnerable communities an ideal early childhood development solution, whilst previously unemployed parents could have the opportunity to receive a much-needed income from their small business.

50%

Grade

1

2015

Grade

2

2016

2017

SAPPI AND WATER

Water use: HOW DO WE MATCH UP? Proportional water uses per main economic sector in SA

DID YOU KNOW? Forestry

Agriculture/ Irrigation (60%) Municipal (Domestic 24% Rural 3%)

only uses

3%

Power generation (2%) Mining (2.5%) Livestock watering & nature conservation (2.5%) Industrial (3%) Afforestation (3%)

of water resources in South Africa.

Reference: National Water Resource Strategy, Second Edition

A reason to smile: These seven PROTEC Nelspruit Branch students achieved distinctions in Mathematics and Physical Sciences in their matric exam. They were all accepted by universities of their choice for further study. Seated from left in front: Jeniffer Mona (6 distinctions) and Uyanda Erica Sibanda (6 distinctions). Standing: Lazarus Mahamba (Sappi), Perseverance Nyathikazi, Manqoba Mabuza, Given Sibasha, Mxolisi Mkanzi, Clement Mnguni and Sappi PROTEC Nelspruit Alumni Manager, Helene Botes.

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CREATING SOCIAL VALUE THROUGH EDUCATION

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Giving wings to fly

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he Programme for Technological Careers (PROTEC) is an excellence programme, focusing on Mathematics, Science, Life skills and English language, for disadvantaged learners that have the potential and the right attitude to change the course of their lives. The programmes run in parallel to formal schooling and are delivered at Saturday and vacation school classes by qualified and experienced PROTEC tutors. PROTEC also provides teacher support and materials. Sappi opened the PROTEC Nelspruit branch in 2000 in partnership with PROTEC.

Shared value impact:

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█ Expanded skills pool in disciplines relevant to Sappi. █ PROTEC consistently delivers matric and Bachelor pass rates that exceed the national statistics year on year. █ Analysis conducted by Trialogue on Social Return on Investment (SROI), showed that for every R1 invested, R4,22 of social value is created each year for South African society in terms of reduced educational costs.

DID YOU KNOW?

Sappi can relate to the need for technologically skilled people in a manufacturing environment.

Therefore we became a keen supporter of PROTEC in the mid-1990s.

11

The Fibre trail

Empowerment from the ground up

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ew things restore dignity to the soul like being able to earn a living and make a difference in the lives of your community. Rather than snuff the symptoms of disempowerment, Sappi has formulated projects that provide practical, long-lasting solutions to the root of the poverty problem, restoring pride and a sense of community.

Through the Abashintshi programme, Sappi, in partnership with the Development Communication Agency (DevCom), helps communities

Abashintshi awards programme

MILESTONES

Sappi deployed

The Abashintshi implemented

117 Abashintshi, across

65 Sappi communities

190 projects

The July holiday programme ran for 10 days, reaching

The Abashintshi achieved

268 people

per day

contacts per month

run by

1,500 children

10,000

community

Seeing it in action Ifa Lethu

Asset Based Community Development (ABCD)

Sappi identifies the communities based on its business objectives and DevCom recruits young people from these rural communities living in and around Sappi’s operations to become Abashintshi (aka Abbas). The

Holiday programme with children

Life Skills

The Abashintshi have weekly sessions with unemployed young people, training them to make good decisions and take personal responsibility.

Sappi has a vast array of material about trees and forests that dovetail with the school curriculum. The Abashintshi use this material to facilitate holiday programmes that combine understanding of the forestry sector with life skills, empowering the children to also influence their communities with constructive messages.

NGODWANA MILL ANNUAL SHUT The Annual Shut is a legal requirement. It affords Ngodwana Mill an opportunity to overhaul existing equipment to ensure the smooth running of the mill throughout the year. Having well maintained equipment prevents unnecessary financial and environmental impacts associated with the shut down and start up of the mill if there is a breakage. The shut is also an opportunity for the mill to finalise the installation and tie in of new equipment that will have a lasting positive impact on the mill’s environmental footprint.

INVESTMENT The shut will cost around R372m, approximately R18M each day of the mill shut – this amount excludes the special projects which are being undertaken consecutively with the shut. This investment will improve the mill's environmental footprint and its energy efficiency.

Energy Efficiency Turbine Generator No1 overhaul, scheduled for every 6 years, will improve the output of the generator thereby improving energy efficiency and further assisting the mill to manage load shedding from Eskom.

Mill Performance A new fly knife installation on the pulp dryer will improve quality, output and reliability.

Abbas receive extensive life skills and other training. Sappi’s Communication Manager, Elsabe Coetzee, explains: “Training is followed by activation and site visits, and continuous feedback is provided. The trained candidates in turn host workshops in their community, ensuring a cascading effect of people who work from within to effect change in those around them.”

There are four key focus areas used to bring change to each community:

This programme documents the legacy of the elderly in the community to continue with successful practices and learn from mistakes. It includes preserving age-old traditions and craft techniques for future generations.

ABCD is a cornerstone of sustainable social development and starts with analysing what a community has by mapping five types of assets and explores what the community can do with its assets. It aims to empower community members to use what they have, instead of focussing on what they need or don’t have.

to help themselves and effect change from the ground up, thereby establishing closer engagement with communities, and achieve social change.

TREADING LIGHTLY ON THE PLANET The Lime Kiln incinerates the mill’s odour which is produced when wood chips are cooked. The Lime Kiln is being upgraded during the annual shut.

It is possible have been detected when the mill shut down on 08 May, and again when the mill starts up at the end of May. During this time, you will probably also see a darker than usual plume coming out of the mill stack.

This is a temporary condition which should not continue for longer than 24 hours.

Sappi’s continued investment in The odour poses no health risk to Mpumalanga people or the environment. represents our belief that South Africa is globally competitive and that our people can compete against the best in the world. Our highly skilled people, exceptional teamwork by everyone who works here at Ngodwana, great support teams from across Sappi, our contracting partners, and our local stakeholders make this possible, General Manager, Naresh Naidoo.

Making a living: The project has seen 48 Abashintshi running their own businesses.

They earned R320,000 profit in seven months, with profits ranging from R900 to R9,000 per month. Businesses range from brickmaking projects to poultry and pig farms, and from crèches to home industries.

JOBS An estimated 500 unemployed local community members have been recruited to work on the shut for various contractors.

These employees have all undergone various skills development training courses.

HOSPITALITY The local hospitality industry will get a welcome boost, with 2,500 contractors who have been appointed to work on the shut.

The mill’s environmental impact will improve significantly.

Improved effluent

The installation of the Crystallizer Plant will help improve effluent by reducing the chlorides and sulphates in the ash produced in the recovery boiler precipitator. This will reduce the sodium and sulphate load in the effluent stream.

Improved air quality

The chemical recovery boiler precipitators will be refurbished in preparation of new legislation that will take effect in 2020.

Environmental Footprint

Modifications to the electrostatic precipitator will improve emissions to regulatory standards required by 2020.

12

The Fibre trail

CURBING THE INVASION

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n days gone by, miners would lower canaries in a cage into the mine shaft to determine levels of toxic gases and whether it was safe for people to enter the shaft. Our Sentinel trials are based on similar principles.

The rapid increase in pests and diseases entering South Africa is a major challenge to the long-term sustainability of Sappi’s plantations. Furthermore, with rapidly changing environments, we have seen previously productive and healthy varieties succumb rapidly to either new pests or even pests that in themselves are adapting and evolving.

Accordingly, we continuously monitor our land base by establishing test plots that include a large diversity of our varieties across a range of environments and at different ages. This is because

The Tree Breeding team and Pests and Diseases team work closely in monitoring breeding trials for the appearance of pests and diseases.

different pests and diseases attack trees at different stages of growth.

Project Siyavikela changes lives

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ew things speak to the heart of Sappi like creating a winwin situation for our people and the environment. Project Siyavikela does just that by protecting ecosystems and providing meaningful employment opportunities.

Sentinel trials in high risk areas are established with all varieties, developed by our in-house breeding programme, and are monitored for pest and disease symptoms on a continual basis (every six months). These trials are replicated four times and, at regular intervals, one replication is felled and allowed to coppice. These coppiced trees are physiologically young and will thus be exposed to a different set of pest/disease than the more adult trees. The result is that at any one time, all varieties are present on the same site at different physiological ages. These trials provide excellent monitoring plots for changes in the pest and disease populations over time, site and age.

This photo shows the impact of Teratosphaeria destructans, the cause of Destructans leaf blight disease on one of our GU varieties.

The disease is a recent discovery in South Africa and a good example of the type of destructive disease that we are trying to detect early, before they spread too widely, in the sentinel trials.

Ngodwana Mill’s Alien Invasive Plant (AIP) Management and Development Programme aims to eradicate 79 identified AIP species on land under its control. Since the majority of the trees make ideal firewood, it has created an opportunity for local businesses to cut and sell the wood. This creates employment opportunities in the local community as opposed to leaving the wood in the veld, resulting in an increased fire risk.

NGODWANA NURSERY

Superior seedlings: producing more with less

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Since the project started in August 2017, 183 ha of land has been cleared.

SHARING PROSPERITY

inding ways to share opportunities with as many people as possible is part of Sappi’s vision to create an inclusive South Africa. Therefore we are continuously intensifying our focus on enterprise and supplier development to cover other areas apart from forestry. It makes business sense, as it will help us to ensure security of supply.

The newly upgraded Ngodwana Nursery has ramped up production to ensure a continuous supply of trees, producing seven million cuttings and 10 million seedlings a year. Sappi now has full access to plants with improved yield, superior wood properties and resistance to pests, diseases and changing weather patterns. By 2020 the nursery will reach full capacity, providing employment to 120 people.

“ Sappi is a world leader in tree breeding which ensures that our mills have the correct types of fibre to make the products our customers demand.”

In the first year, the programme appointed eight women from the local community, under the supervision of a biodiversity superintendent, to run the initiative. This simple enterprise development has helped these ladies to earn a living, helping them out of poverty and leading to longterm economic growth for themselves, their families and their communities.

The shared value impact of our Enterprise and Supplier Development (ESD) approach in forestry to date (excluding Sappi Khulisa), amounts to R94 million in annual revenue, with 946 people being employed in various forestry activities such as silviculture (weeding, cleaning, bush clearing, harvesting and short haul).

An exciting future: Sappi’s global customers are excited because the new nursery will ensure an increase in production of Dissolving Wood Pulp, a product for which demand just keeps increasing.

What’s more, the production of softwood cuttings and seedlings will secure the softwood supply, which is used to make the paper for the boxes that protect fruit and vegetables when it leaves the farm.