Sappi Fine Paper Europe Sustainability Report 2011
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Sappi Fine Paper Europe Sustainability Report 2011 Sappi Fine Paper Europe Sustainability Report 2011 Document Transcript

  • Sappi Fine Paper 2011Europe Sustainability Report
  • contents 03 WELCOME/ 20 PULP MILL WHO WE ARE 24 PAPER MILL 06 MESSAGE FROM THE CEO 30 TRANSPORT 08 CHARTER COMMITMENTS 32 PRINTER/ CONSUMER 14 THE GREEN PAPER TRAIL 38 PEOPLE %+ / 16 FORESTS 44 KEY PERFORMANCE INDICATORS2 | Sappi Fine Paper Europe
  • welcome Our approach to sustainability isbased on a holistic view of Planet, People and Prosperity S appi Europe has undergone many from our business decisions and processes changes in recent years. The company to our dealings with stakeholders and has been restructured, bringing customers. forward new and innovative products, Planet: contributing to a world of changing our practices and repositioning biodiversity, renewable energy and ourself for the 21st century. Sappi Europe is environmental care the leading company in the coated fine paper People: adding to the wellbeing, safety and market and has sustainability at its heart. health of employees and communities Sappi’s commitment to sustainability Prosperity: aiming at long-term profitability manifests itself in the creation of The and customer satisfaction through European Sustainable Development innovation and ethical conduct Council. This body consists of the Under these over-arching themes we company’s most senior directors, and is have placed our Charter Commitments. chaired by the European Environmental These commitments provide clear guidance Manager. Its existence and direct influence to all our staff, suppliers and shareholders ensures that sustainability is given the on how the company will behave and how highest possible attention and that it we believe it must operate. reaches all parts of the organisation. We see ourself as a part of the Our approach to sustainability is based communities in which we work, and while on a holistic view of Planet, People and we strive to be a successful and profitable Prosperity (the 3P’s). These values and company, we must achieve this aim in a commitments underpin everything we do, sustainable way. Sustainability report This report spells out where Sappi has come from, where it is headed, and how the company believes it is going to get there. Sappi Fine Paper Europe (SFPE) has been publicly reporting progress on sustainability initiatives since 2008 as part of a global sustainability report issued annually by Sappi Limited after the financial year-end. Our financial year starts on 1 October and ends on 30 September of the following year. This year marks the first time each regional division issues its own sustainability report, with consolidated global sustainability performance included in the annual report to shareholders. Sappi Limited will also continue to publish a separate online report in conformance with the Global Reporting Initiative’s 3G framework and disclosing compliance with the UN Global Compact, to which we are a signatory. This regional reporting structure allows a deeper regional focus that reflects local markets and aspects, and covers the financial year 2011 (1 October 2010 to 30 September 2011). Emission figures are based on the operation of our operating mills in Europe unless it is specified otherwise. All production and non-production activities on our mill premises are included. People and prosperity metrics are reported for the full region, including central facilities and sales offices. Sustainability Report 2011 | 3
  • who we are Sappi Fine Paper Europe is the leading European producer of coated fine paper S appi Fine Paper Europe is the leading European producer of coated fine paper used in premium magazines, catalogues, books and high-end print advertising. Operating eight mills in Europe and headquartered in Brussels, Belgium, Sappi Fine Paper Europe is recognised for innovation and quality. Our graphic paper brands include Magno, Quatro, Royal, Galerie and GalerieArt ranges. Algro, Fusion, Leine and Parade are the brands for speciality labelling, topliner, packaging papers and boards. Jaz is the paper brand for digital printing. Sappi Fine Paper Europe is a division of Sappi Limited (listed on NYSE and JSE), a global company headquartered in Johannesburg, South Africa, with over 14,900 employees and manufacturing operations in nine countries on four continents, sales offices in 50 countries, and customers in over 100 countries around the world. Sappi Europe is a major part of the global company’s operations, employing just over 40% of its staff and providing over 60% of its paper production capacity.4 | Sappi Fine Paper Europe
  • Kirkniemi, Finland Brussels, Head Office Nijmegen, The Netherlands Alfeld, Germany Stockstadt, Germany Ehingen, GermanyLanaken,Belgium Maastricht, The Netherlands Gratkorn, Austria Sustainability Report 2011 | 5
  • ceo Our reputation as a reliable company with integrity serves us well S ince I joined in 2007, Sappi has company. I really want our employees to undergone considerable change. feel that Sappi is not only a great place to The company has restructured itself, work, but also a safe one. This means advanced new products and put the achieving the right engagement and concept of sustainable development at its expectations at each of our sites, and there core. Through these changes we have are initiatives in place to do that, which we developed a new strategy founded on the are, justifiably, excited about. 3P’s — Planet, People and Prosperity. These themes encapsulate Sappi’s Competition approach for the 21st century and serve Sappi has been in a catch-up phase over the as a guide to all our employees. last twelve months. We have substantially reduced our costs, cut our capacity to fit the Sustainability market and made improvements to our Sustainability is at the heart of everything service offering, so that we are now easy to that Sappi does. This has led to do business with and can deliver cost- improvements in greenhouse gas effective solutions. Some of the decisions reductions, waste management and have been hard – the closure of the Biberist certified fibre usage. Our staff are also mill in Switzerland is a prime example. continually being trained in the importance However, I am relieved and pleased that we of sustainability and how they can make were able to give good support to the staff it a reality. affected and that most of them got new jobs It is important, though, to understand how quickly. But we must ensure that these sustainability affects the bottom line; through actions were not in vain. reduced costs, and also because good With a more efficient company, we are business depends on relationships with getting better at keeping our customers communities. Sappi relies on the goodwill of satisfied and making profit. Our reputation governments and much smaller communities as a reliable company with strong integrity in the regions in which it operates. By placing serves us well. sustainability at the heart of our organisation, I now believe we have a bright future, as we are sending out a strong message to these long as we recognise the challenges ahead groups, which both reassures and delivers. and act on them early. The digital age has brought an overall decline in demand for Culture paper products. We don’t yet know where Sappi has developed a health and safety that will stop, but we have done the right culture of which I am proud, and the level of things to deal with the consequences so far. accidents and injuries in our workplaces has More than ever, our focus is on our fallen significantly. However, there is more to customers. By delivering what they need and be done, especially to achieve our ultimate value in the most cost competitive way, we ambition of a zero injury rate across the entire will all prosper together.6 | Sappi Fine Paper Europe
  • Berry Wiersum,CEO Sappi Fine PaperEurope Sustainability Report 2011 | 7
  • charter commitments Our commitment to sustainability Our approach to sustainability is based on a holistic view of Planet, People and Prosperity (the 3P’s). These values and commitments underpin everything we do, from our business decisions and processes to our dealings with stakeholders and customers. Below are our charter commitments, outlining the way Sappi Fine Paper Europe wants to do business, our targets and results planet a water shortage risk. We also do not expect our impact to significantly change at any of our locations due to our water use and discharge. By treading more lightly on the Planet with In addition, water use has an impact on cleaner, more efficient manufacturing and energy, as it is heated up within the process waste beneficiation processes, we can and the mills lose energy through their water produce more with less – an approach discharge. which has obvious economic benefits. This We have been able to reduce our specific approach involves reducing the energy water use according to the target set, and intensity of our business and reducing the are lower already than the 5% reduction associated greenhouse gas emissions across envisaged for 2012. the full supply chain. It also necessitates using less water and improving effluent water quality, mitigating our impact on biodiversity and promoting sustainable forestry through Specific water use m3/t internationally accredited, independent environmental management and forest 25.0 certification systems. 20.0 Reduction of Specific Water Use* We consider the water supply to our mills 15.0 as abundant and have rarely experienced a stressed supply situation. According to the Global Water Tool of the 10.0 World Business Council of Sustainable Development, the average water stress index is considered as abundant at all but two of 5.0 our mill locations, those of Maastricht and Lanaken – where the index is considered to be at stress level due to the relatively high 0.0 population living in the area. 2008 2009 2010 2011 In our experience, however, water has always been abundant and we do not see Spec. water use Target 5% base year8 | Sappi Fine Paper Europe
  • Specific fossil CO2 kg/t, inclpurchasing power at 400g CO2/kWh600 Certified Fibre*500 Our 2012 target for certified fibres overall is 70%. We have achieved this high400 figure from 2009 onwards. Increasing the certified share further will be a challenge300 as we must also take operational targets into account, such as the preference to200 source locally. The certification of the chain of custody100 has improved significantly over the past years with most of our suppliers following 0 this route. All of our pulp suppliers are 2008 2009 2010 2011 certified, in most cases in accordance with both FSCTM and PEFC certification Spec. CO2 (fossil) kg/t Target 5% base year schemes. Some of our smaller wood suppliers, however, are still not certified. Some certified wood material loses its certification in the chain as a few intermediary traders do not hold the same Reduction of Specific CO2* certification as the traded material. Our 2012 target is the reduction of specific Any non-certified material entering our direct fossil CO2 emissions (i.e. tons of CO2 products is subject to strict risk assessment per tons of manufactured pulp and saleable processes, which meet the FSCTM paper), including purchased power Controlled Wood requirements and those of emissions (calculated at 400g/kWh) by the PEFC Due Diligence System. 1% per year*. The CO2 figures shown in the graph are the sum of specific direct CO2 emissions and the indirect CO2 emissions from the Certified fibre share SFPE external electricity supply. It is calculated with the factor of 400g/kWh. The national 100 average factors in the countries of operation 90 are lower or higher than the 400g. The 400g is close to the European average and also 80 the factor used by the EU-Flower criteria for 70 copying and graphic paper. This target has the disadvantage in that 60 the capacity of the integrated chemical pulp 50 production is limited, as is the availability 40 of our most important biofuel black liquor, for which generation is proportional to the 30 pulp production. 20 When the paper production is increased compared with the integrated chemical pulp 10 production, the share of fossil fuels is 0 increased and, in line with it, the fossil CO2 2008 2009 2010 2011 emissions. This is the case for our TM integrated mills Alfeld, Ehingen, Gratkorn PEFC FSC Target and Stockstadt. For efficiency reasons it is of course almost always sensible to maximise production of our machines. As a rule of *Important to note: targets were initially set in 2008 to be achieved in 2012, but as we acquired thumb, the higher the machine utilisation several M-real mills in 2009 we had to adjust accordingly by including the performance of those mills retrospectively in the targets as well. The benchmark is the average of the mill performances the lower the specific energy needed. of the year 2009 for Kirkniemi and Stockstadt, and 2008 for Alfeld, Gratkorn, Ehingen, Lanaken, We have been successful in reducing the Maastricht and Nijmegen. The reference year 2008 is actually better than 2009 due to the higher emission average of the new mills and mainly due to the extremely low utilisation of our paper specific CO2 level and are on track to meet machines in this year. The figures only include mills that are in operation to help comparability. the 2012 target. Mills that do not produce anymore are not included. Sustainability Report 2011 XX Sustainability Report 2011 | 9
  • 10 | Sappi Fine Paper Europe
  • charter commitments people By creating a safe, healthy workplace for our People in which diversity is encouraged and valued, and people are provided with on-going development opportunities so that they can develop to their full potential, we enhance productivity and our ability to service global markets. Active corporate citizenship programmes relevant to the 0.26 The Lost Time Injury Frequency Rate achieved in 2011 (LTIFR) by Maastricht Mill needs of the communities where we operate ensure that we promote socio-economic development within these communities. Each employee should receive 30 hours of training per annum. In 2011, we achieved A Safe and Healthy Workforce an average of 25.52 hours of training per A true health and safety policy is something employee. Our various people development you keep working on. Sappi’s safety initiatives, which include training, have approach is based on no less than five helped us to ensure that our employees can fundamental principles: work more effectively and confidently and A zero-injury target are able to take up different roles. Integrated health and safety planning and management Training at every organisational level Participative information and controlHours training per employee structures Adherence to international best practice35 and safety standards30 Other initiatives include an annual Global Safety Awareness Day at all our sites,25 offering preventive medical check-ups, and programs to stay in excellent condition both20 mentally and physically. Our 2011 target was to reduce the LTIFR (Lost Time Injury15 Frequency Rate) to 0.39 (this includes central units) and to report occupational10 injuries better and more comprehensively. We achieved a LTIFR rate of 1.3 in 2011 5 with Maastricht Mill achieving an LTIFR of 0.26. We have been continuously successful 0 in lowering our LTIFR each year, and in 2009 2010 2011 2012 we will continue our commitment to achieving a LTIFR target of 0.21 for the Hours training per employee 2012 Target entire European operation. Sustainability Report 2011 | 11
  • charter commitments prosperity By generating Prosperity, we can continue to attract investors, leverage growth opportunities and invest more in our processes, people, and the communities in which we operate. This ensures that the business becomes more customer-centric, and keeps us focused on ongoing product, process and service innovation. Investing in research and 2011 The year Sappi launched Fusion, Algro Nature and Jaz development ensures we maintain a Focus on Innovation competitive global advantage. The speciality packaging business in Europe performed very well in 2011. The variety of Generating Prosperity speciality products and the service offer make Sappi started the financial year with a strong Sappi very competitive in this area. performance and produced good results Sappi launched Fusion, a new generation during the first half of the year. Increased topliner in 2011, as well as Algro Nature, a uncertainty in global markets, the deepening of home compostable paper for flexible the European debt crisis, as well as increasing packaging. We will continue to grow our input costs, however, negatively affected sales specialities business in 2012 and further volumes and profit margins. This resulted in the penetrate the flexpack, release liner, premium financial performance for the year falling short cartonboard and white top liner markets. of our targets, despite our best efforts. Sappi launched Jaz silk in 2011, meeting We took decisive action in 2011 to improve our target to bring a digital paper to market. the cost base and competitiveness of the Jaz silk’s technology was developed in business. These actions have proven to be cooperation with HP for high speed inkjet quite successful and made significant web printing. progress. These actions were not easy to After being introduced to the market in early implement and unfortunately, and regrettably, 2011, trial runs have been successful and the also resulted in the loss of a considerable product is now commercially available. The Jaz number of jobs in Europe. product will be extended, with the addition of We expect to see the results of these actions Jaz Book, currently under development for low in 2012 as we continue our cost-saving grammage high speed inkjet web printing and programs, and our production efficiencies and expected to be brought to market in 2012. customer service continue to improve, In the coming year we will continue to work reaching very good levels. Our 2012 target is towards the further commercialisation of the to achieve a RONA* of 7.13%. Jaz family, growing the market and extending the portfolio to include other Original *Return on net average operating assets Equipment Manufacturers (OEMs).12 | Sappi Fine Paper Europe
  • Sustainability Report 2011 | 13
  • The green 225,000 PEOPLE ARE EMPLOYED BY paper trail EUROPE’S PULP AND PAPER INDUSTRY2 Sappi is determined to reduce the environmental impact of its processes. This report follows our product lifecycle, from forest to pulp, paper to print, and shows how the people at Sappi are instrumental in making this happen 665,000 PEOPLE 273,000 PEOPLE Our pulp mills are ARE EMPLOYED BY ARE EMPLOYED designed to avoid EUROPE’S FORESTRY BY EUROPE’S emissions of sulphur INDUSTRY1 SAWMILLS2 dioxide – a raw material needed for chemical pulp production. They feed as much SO2 as possible back into the process and use it again WE SEND 2.7M m3 OF ROUNDWOOD TO OUR PULP MILLS EACH YEAR, AS WELL AS 1.6M m3 OF WASTE WOOD FROM SAWMILLS4 At Alfeld Mill, during waste- water treatment, 12,000m3 34.2% OF THE FUELS USED of biogas is produced each BY SFPE ARE BIOFUELS4 day. This is used to generate energy, and supplies about FOREST 1.2% of the mills needs In Finland, strict rules govern effluent discharges into All our fibre material Lake Lohja, next comes from certified to Kirkniemi Mill. sustainable and State-of-the art controlled sources. processes mean As well as providing the mill meets them habitat for wildlife and European tree usage2: by a large margin recreation for people, Energy 42% forests protect soil Sawmills 24% and water. One hectare of forest also Pulp and paper 17% Other 17% PAPER At Gratkorn Mill, steam absorbs about 2.5 tonnes of carbon from the power-plant MACHINE dioxide a year3 turbines, rather than fossil fuels, is reused to warm up the gas supply At Maastricht Mill, waste sludge is dried and sold to farmers as bedding for cows (the cows love it). Sludge is also used as an ingredient in bricks14 | Sappi Fine Paper Europe
  • All SFPE mills bleach pulp without using chlorine 69% OF Paper brings joy PAPER IN to people. Its EUROPE GETS relaxing to read, RECYCLED6 easy to use and – UP TO more effective Lignosulfonates – a by- SEVEN TIMES than screens product from the pulping for education process – can be used in making building materials. In 2010, lignosulfonates from SFPE pulp mills helped create 18M m3 of concrete PULP MILL The black liquor created during pulping is a great source of renewable SFPE PRODUCES 950,000 energy. In our integrated mills it is burned to CONSUMER TONNES OF PULP EACH produce steam YEAR AND BUYS IN and power ANOTHER 1.1M TONNES4 45% of our deliveries now go by rail or canal5. To reduce our carbon All the power plants supplying footprint were switching our European mills are from road to rail combined heat and power wherever we can plants. As well as generating electricity from gas, they also use the heat generated in the process, raising their energy efficiency to about 80% – twice as much as traditional power plants PRINTER 908,000 PEOPLE Digital printing ARE EMPLOYED is increasingly BY EUROPE’S popular. It allowsSludge left over from effluent The paper we sell4: PRINTING short runs,treatment contains fibres and Coated fine paper: 2.4M tonnes INDUSTRY2 personalised biomass – a perfect source Mechanical coated: 1.4M tonnes printing – and of energy. Alfeld Mill turns Uncoated: 284k tonnes less waste the sludge into pellets and Speciality papers: 162k tonnes uses it as fuel SOURCES: 1) FAO, State of the Worlds Forest 2011 2) Eurostat, Forestry in the EU and the world, 2011 3) approximation, value can vary depending on factors such as tree species, location and density 4) 2011 SFPE 5) Sappi sustainability leaflet, 2011 6) CEPI Sustainability Report 2011 Sustainability Report 2011 | 15
  • forest Sappi Europe is committed to sustainable forestry and to reducing our carbon footprint T o be a sustainable industry, paper Understanding the supply chain is crucial, manufacturers need to have effective and certification is required if we are to be and transparent policies dedicated sure of how our products are made. Sappi to the long-term survival of the world’s set a target that 70% of all the fibre we forests, woodlands and other natural purchase should be certified, and we are habitats. Sustainable forestry and the pleased that this goal was exceeded by reduction of our carbon footprint must be a a large margin. In 2011, 73% of the fibres priority for all companies, and Sappi Europe we used were certified, placing us a has focused on this area. This involves step above the European average. The working with partners to ensure that the remainder of the fibre came from known wood purchased can be traced throughout and controlled sources. its supply chain, ensuring strict sustainable forestry practices. Supply chain Sappi is committed to purchasing only wood and fibre when it understands precisely how it came to market. The best way to combat illegal logging and non- sustainable practices is for all wood and fibre to be certified or at least controlled. 73% The amount of fibres we used that were certified16 | Sappi Fine Paper Europe
  • DID YOU KNOW? European forests grow bythe equivalent of 1.5 million football pitches each year Sustainability Report 2011 | 17
  • CERTIFICATION As part of our commitment to sustainable practices, Sappi has worked with the Programme for the Endorsement of Forest Certification (PEFC) and the Forest Stewardship Council (FSCTM) to achieve globally recognised standards. One of our milestones was that we were the first paper company to achieve multi-site, cross border group chain-of-custody certification for our entire European operations from both bodies. These standards cover an array of environmental, social and economic factors pertinent to the safeguarding of the world’s forests. Crucially, they provide a mechanism for tracking certified material from forest to final product. Therefore, when you buy or sell Sappi products you can be certain the wood fibre in the product supported the sustainable management of our forest resources.18 | Sappi Fine Paper Europe
  • forestOur goal: sustainable paper productionI n order to be committed to purchasing mentioning that Austrian forest law is one of wood only from sustainable forests and the strictest in the world and both Sappi and controlled sources, it is crucial that our PHA are able to work within its boundaries.efforts extend to the entire supply chain. In In fact, over the past 50 years, the forest hasthe forests that we purchase from, the cycle grown by over 300,000 hectares in Austriaof planting, growing and logging is – seven times the size of Vienna.meticulously managed. Such a sustainableapproach ensures that there is always more Sustainability across the chaingrowth than what is harvested. The way in which Sapin – the exclusive wood supplier to Sappi Lanaken in Belgium –Working closely with partners manages the forests in which it operates hasThe forests of Austria hold a special affection also helped Sappi Europe realise itsin the hearts of its people. Therefore, Sappi environmental aims in terms of its fibreworks closely with its wood purchasing certification. Sapin has been at the forefrontcompany Papierholz Austria (PHA) to of sustainable forestry practices for overmaintain the biodiversity of the forests and eight years. In 2004, the company gainedharvest its wood in a sustainable way. In fact, PEFC certification, and the following year itthe Sappi Gratkorn mill was one of the gained FSCTM certification. In the years sincefounder companies of PHA in 1997. The key then, the world as a whole has altered itstasks of PHA are wood supply, wood logistics views on the types of products it buys asand administration. Through this co- more and more consumers are demandingoperation, the mill is able to produce almost eco-friendly products. Sapin and itsone million tonnes of paper every year, while suppliers are very aware of this fact, and themaintaining a sustainable approach. company is committed to environmental Key market information is shared, which protection. Indeed, the growth of the certifiedmeans the two companies can ensure their market means there is little other choice forapproaches are aligned and optimised. companies in the wood and paper markets.Both Sappi and PHA hold high standards Many of Sapin’s achievements mirrorand have independent certification to Sappi’s in terms of accreditations. Fordemonstrate this fact, such as PEFC, FSCTM instance, the company has long led the wayand ISO 14001 certifications. Sappi aims to in certification, holding ISO 9001 and ISO Employees ofengage with the communities its operations 14001 standards, as well as FSCTM and Papierholz Austriaare based in. Similarly, the wood purchasers PEFC accreditations. For both companies, itof PHA are well-trained forestry experts that is important that accreditation goes all thesupport wood land owners with their way down the supply chain, indeed it is aexpertise with forest management and requirement of such standards. Sapin haswood harvesting. long worked with all its suppliers to The Gratkorn mill is a key part of the local encourage a more sustainableeconomy. However, its future must be approach, and the result of thissustainable and this means the wood from work can be seen in theAustrian forests needs to be used in the increasingly higher yieldsmost efficient way possible. It is worth of certified wood.
  • pulp mill Sappi Europe is the biggest producer of sulphite pulp on the continent, producing 675,000 tonnes per year T he work that takes place in Sappi from the saw mills can be added to the mix. Europe’s pulp mills is central to our Sulphite pulping also lends itself well to efforts to be a truly sustainable smaller operations; the Alfeld Mill, for company. In fact, Sappi Europe is the instance is our smallest pulp mill. biggest producer of sulphite pulp on the Sappi’s mills take wood with a low continent, with the capacity to produce resin content, such as spruce or beech. The 675,000 tonnes of sulphite pulp every year. wood arrives either as logs or chips from We are commited to reducing our energy the saw mills. The logs are debarked, use and emissions, and the production of reduced to chips and then added to the sulphite pulp goes a long way towards chip mix. The chips are cooked in acid for achieving this. six to eight hours at temperatures of 140°C There are several advantages to and a pressure of eight bar. During this manufacturing sulphite pulp, rather process the binding elements of wood turn than kraft (sulphate). It produces higher into liquid. The resulting by-product (lignin fibre yields and requires fewer bleaching and acid) is called lignosulphate. chemicals, for example – all our pulp mills Lignosulphate has useful applications are totally chlorine-free (TCF). In addition, in the building and construction industry, less energy is required in the refining but Sappi Europe uses most of it is as process, and there are fewer odorous a biofuel to power its mills. The pulping emissions. Wood is also used more chemicals are recycled in this process efficiently, as a high proportion of residues as well.20 | Sappi Fine Paper Europe
  • The manufacture ofsulphite pulpproduces higher fibreyields, and requiresless specific energythan kraft pulping Sustainability Report 2011 | 21
  • pulp mill Sustainability mill is process-given. However, Sappi The raw materials begin their transformation Europe has strict policies designed to ensure into paper products in Sappi Europe’s pulp that the environmental impact of this part of mills – where there has been considerable the operation is as low as possible. Sappi’s innovation in recent years. bleaching processes are entirely TCF, we One approach is Sappi Europe’s ongoing bleach with peroxide which leaves behind no commitment to reducing waste sent to harmful chemicals. Our market pulp can also landfill. Our organic waste material is burnt be elementary chlorine free (ECF). to make energy. By creating heat out of Water usage is a crucial part of Sappi’s biomass and using it to power Sappi’s own operations, so it’s important that the operations, as well as helping others to company continues to make strenuous meet their energy needs, the company is efforts to minimise water intake and to adding positive value. It is mainly ash that recycle and reuse it as much as possible. goes to landfill, when its not used in the After use, Sappi cleanses effluents in highly production of cement, other building sophisticated waste water treatment plants material, fertilizer and soil substrates. to meet local legislation, before they are Currently, the use of chemicals at the pulp returned to the environment. HOW SAPPI HELPED BUILD AN AIRPORT One byproduct of the pulp production process, produced by the reaction of cooking acid and lignins, is called lignosulphate. This liquid chemical is used as a biofuel and is used to power Sappi’s pulp and paper mills. However, in modified form it can also be used as a speciality chemical with many beneficial applications. This useful byproduct is actually all around us everyday, as it is used in the production of plasterboard, chipboard, bricks and paving stones. Lignosulphates have the advantage of being non-toxic and environmentally friendly, unlike many other industrial chemical substances. Some of Sappi’s byproduct has been used in building materials at high- profile locations, such as Frankfurt International Airport buildings.22 | Sappi Fine Paper Europe
  • The number of times paper canbe recycled. Virgin fibres areneeded to start the cycle Sustainability Report 2012 10
  • paper mill We continue to raise the bar in terms of certification and energy management S appi’s paper mills are at the forefront of Nonetheless, we worked hard to ensure that our move towards increased our employees had a good prospect of sustainability. New technologies, alternative employment, and were positioned initiatives and changes in culture have been as well as possible after the closure. The the drivers for some exciting developments, results have been promising: within four and amid a changing industry and challenging months of our confirmation of the mill’s economic landscape, the commitment to our closure, 70% of staff had found new jobs. people, planet and prosperity across Sappi’s Furthermore, all of the mill’s apprentices were mills is stronger than ever. found positions in other companies, and were able to complete their apprenticeships. Navigating a changing market These results speak well of the excellent Economic conditions in the paper market skills and experience levels of the Biberist continue to challenge even the most staff, and of the hard work on Sappi’s part in resourceful. Overcapacity in the market and ensuring that potential negative impacts of macroeconomic uncertainty across Europe the closure were minimised for all concerned. are key factors, as is the longer-term backdrop of efforts by Sappi and others to Custodians of our environment create and preserve a level playing field We have spent a considerable amount of against global competition. time, money and effort in reducing pollution Sappi has made some timely and and waste in our mills. Conserving water, necessary adjustments to its operations in decreasing emissions and discharges, and the face of these conditions, with the using energy more efficiently, are key closure of the Biberist mill in Switzerland priorities for the company. These aims are perhaps the most notable. not just environmentally beneficial, but are There is no doubt that the closure of also regarded as essential for the long-term Biberist had a major impact on the lives and growth and prosperity of the company. careers of the many staff based there. All of Sappi Europe’s mills are located near24 | Sappi Fine Paper Europe
  • Sustainability Report 2011 | 25
  • WARM EXCHANGE Sappi Europe’s mill in Maastricht has installed a heat exchanger in the chimney of its plant to capture warmth, which is then used to warm and cool nearby buildings in the Mosae Forum. The Mosae Forum, which is 700m from the Sappi mill, is a large site containing residential apartments, offices and retail units. Maastricht aims to reduce its CO2 emissions by half as of 2050. As a result of the collaboration with Sappi, this is now closer to becoming a reality, as excess heat from the mill is supplied to municipal buildings.26 | Sappi Fine Paper Europe
  • paper millto rivers or surface waters where water environmental programs on our website. Forsupply is plentiful all year. Water gathered maximum efficiency, and because veryfrom these sources is cleaned before use similar procedures are used across theand then used several times before it is group, Sappi mostly uses group certification.thoroughly treated to remove impurities and Sappi’s management system encompassesreturned to the environment. Recycling water organisational structure, planning,in this way makes our mills more efficient responsibilities, procedures, processes andand reduces our environmental impact. the provision of resources for developing, The way in which water is used is implementing, achieving and reviewing theconstantly monitored. Sophisticated piping activities of the company. This managementand instrumentation allows online system has a long record of certification; firstvisualisation of how Sappi’s water circuits with quality management, then theoperate, in order to maintain a high efficiency certification of environmental managementlevel, reducing waste and increasing standards, health and safety, forestry chain ofrecycling. One breakthrough has been to custody, and energy management.establish that waste water impurities are Our environmental and health and safetyturned into biogas which is recovered standards also undergo aspect andand used as fuel. impact analyses, the results driving At Sappi Europe, we operate our mills’ health, safety andcombined heat and power environmental programs. And(CHP) plants in all of our the push for ever highermills. These plants not only DID YOU KNOW? certification continues.generate electricity but Specific emissions from Pleasingly, Sappi Europe’salso heat, which is used at fossil fuels in our paper Stockstadt and Kirkniemithe paper machines to dry mills has dropped by 6.7% mills were the first paperthe paper. Such efficiencies over the past three years mills to gain EN160001mean the company’s CHP certification, while Nijmegenunits are twice as energy expects to receive theefficient as conventional power ISO50001 certificate in 2012;plants. We make such investments with accreditation of all of our millswith consideration to our long-term to follow by 2014.plans, which are designed to create prosperity The example of the Netherlands showstoday as well as in the future. the uniqueness of our approach: there are only four EMAS registered companies in theInnovation and energy efficiency country, two of them are our Maastricht andWith energy prices increasing, energy Nijmegen mills.efficiency remains a financial imperative,as well as an environmental concern. Less waste, smaller footprint Sappi Europe has made considerable Sappi is committed to increasing prosperityheadway in reducing its carbon emissions both now and in the long term, and toand improving energy efficiency. But while international treaties and legislationthese efforts have won recognition, they are promoting best environmental practice, asjust part of an ongoing drive for more well as the importance of reporting andefficient use of energy across the business. measuring impact. Specific carbon dioxide emissions from Sappi Europe’s mill in Alfeld has found anfossil fuels in our paper mills has dropped innovative way to deal with its waste – itan impressive 6.7 per cent over the past converts it into fuel. Sludge from the plantthree years – outperforming all our stated contains enough fibres and biomass to giveemissions targets. it a heating power comparable to that of While Sappi’s European mills were brown coal. Since 2009, we’ve beenamong the first to achieve international converting the waste into pellets and usingenvironmental ISO14001 and EMAS it as fuel in the plant’s bark boiler toaccreditation, we continue to raise the generate steam for the production process.bar in terms of certification and energy This process uses around 18,000 tonnes ofmanagement. We publish our Environmental waste and saves on 900 truck journeys over(EMAS) declaration, covering the operation, an average distance of 100km.environmental performance and the Waste sludge from the production Sustainability Report 2011 | 27
  • paper mill process is often further used in applications Increasing efficiency, reducing waste such as the manufacturing of bricks or Sappi’s Kirkniemi mill is located by cement. However, there are also more Lake Lohja in Finland – an important natural novel applications. resource providing drinking water and fish When companies innovate, there are to the local area. It is also an sometimes unexpected benefits from their area for recreation. Conservation of this efforts. Sappi Europe found that the dried lake and of the many others in Finland is residual paper sludge from its waste water crucial, however it is also an opportunity; was very popular with some local water is so abundant in this part of the inhabitants – the cows in the stables of the world that by producing products in Finland region. Their farmer attests to the fact that there is less pressure on countries where his cows are happier sleeping upon Sappi’s water is scarce. dried waste sludge than their more Nonetheless, there are tight restrictions traditional bedfellows of sawdust and straw. on water usage and effluent discharges, The material keeps the animals cleaner, as it and Kirkniemi mill remains well within these is less sticky, and is more comfortable. The limits. Water usage is 25% less than the improved hygiene also means the number general level for a paper mill process and it of white cells in the cow’s milk has is circulated 18 times. increased and is therefore more healthy too. Effluent discharges into the environment At Sappi Europe’s Gratkorn Mill in Austria, have also been minimised. The effluent too, we have found a more efficient way of treatment plant in Kirkniemi consists of using natural gas. Previously, the incoming mechanical, biological and chemical natural gas was pre-heated by burning treatment steps. Kirkniemi was the first fossil fuels. Now, hot steam from the mill’s paper mill in Finland to use biological turbines is used to power the water heat treatment methods for its waste water and exchanger. And while our Stockstadt mill this, and other environmental policies, have already uses a mixture of fossil fuels and had beneficial effects. renewable energy sources to power its The effluent discharges containing paper production, the mill is moving suspended organic matter have caused towards the implementation of more there to be a biological oxygen demand sophisticated energy management systems. in the lake. However, in response to this, Sappi has installed four oxygenation pumps Culture and values in the deep-water site to help restore the However, the drive towards greater energy biological condition of the lake. The efficiency isn’t just about changing company also supports efforts to increase technologies, but changing mindsets, too. fish stocks by sponsoring the introduction The efforts by management and employees of over 20,000 whitefish annually. at the Stockstadt mill demonstrate the As a result of Kirkniemi’s effective water challenges that exist in this area, and point protection actions, the Kirkniemi millIn 2011 Salla Leskinen,who is responsible for to some of the ways in which those accounts for only about 7% of phosphorusthe waste water challenges can be overcome. and 5% of the nitrogen loading in Laketreatment plant inKirkniemi, was named Efforts are also already underway to Lohja, although it is the biggest industrialWater Protector of the further improve energy usage. Management establishment by the lake. As an indicationYear by The WesternUusimaa Water and is constantly engaging with employees on of the mill’s good work, Salla Leskinen, whoEnvironment ways to change practices that are is responsible for the waste water treatmentAssociation energy intensive and to promote plant in Kirkniemi, was named Water best practice. Staff have been Protector of the Year by The Western provided with special training Uusimaa Water and Environment in energy conservation, there Association. This was the first time that are special quizzes with prizes, the association had chosen an industrial awareness days and the representative for this award. promotion of energy efficiency Sappi Europe’s dedication to the via newsletters and company environment has also been highlighted by literature. The effects of these its success at awards held by the Dutch campaigns is that the Stockstadt Paper Industry Association. Sappi’s mill in mill achieved a total reduction in Nijmegen won the VNP Trophy for the energy use of 3.6% in 2011, well lowest energy use, and Sappi’s mill in above the mill’s 2% target. Maastricht came third.
  • Sappi Fine Paper Europe - Mills Paper Pulp Mills Products Capacity Capacity Certifications (tons ps) (tons pa) ISO 9001 / ISO 14001 / Graphic EMAS / OHSAS 18001 / Alfeld, Paper, 330,000 125,000 PEFC CoC / FSCTM CoC / Germany Speciality FSCTM CW / EN 15595 Paper hygiene management ISO 9001 / ISO 14001 / Ehingen, Graphic EMAS / OHSAS 18001 / 250,000 135,000 Germany Paper PEFC CoC / FSCTM CoC / FSCTM CW ISO 9001 / ISO 14001 / Stockstadt, Graphic EMAS / OHSAS 18001 / 250,000 135,000 Germany Paper PEFC CoC / FSCTM CoC / FSCTM CW ISO 9001 / ISO 14001 / Coated EMAS / OHSAS 18001 / Kirkniemi, Magazine 730,000 330,000 PEFC CoC / FSCTM CoC / Finland Paper EN 16001 energyA DAY IN THE LIFE managementHenri Welman heads up the Utilitiesdepartment at Maastricht Mill. He tells Coatedus about his job. “Along with my team, Magazine ISO 9001 / ISO 14001 /I ensure that the mill has the energy it Lanaken, Paper, 500,000 180,000 OHSAS 18001 / PEFC CoCneeds to function – the electricity, Belgium Graphic / FSCTM CoC / FSCTM CWsteam and water. But we also use Paperenergy to make money for Sappi. Thepower plant at Maastricht producesmore energy than we need, so Maastricht, ISO 9001 / ISO 14001 /residential neighbourhoods take our Graphic The 280,000 OHSAS 18001 / PEFC CoCexcess heat, and we sell electricity on Paper Netherlands / FSCTM CoC / FSCTM CWthe open market, which can belucrative. We also clean wastewater from local firms in our effluent ISO 9001 / ISO 14001 /treatment plant. Nijmegen, EMAS / OHSAS 18001 / Graphic “Turning waste into value is another The 240,000 PEFC CoC / FSCTM CoC Paperspeciality. We dry waste-water sludge Netherlands / FSCTM CW / ISO 50001from the mill with residual heat from our energy managementpower plant. Farmers use the driedsludge as bedding for cows, and the ISO 9001 / ISO 14001 /construction industry for bricks. Gratkorn, Graphic EMAS / OHSAS 18001 / 950,000 255,000 “There are 20 of us in the team. Austria Paper PEFC CoC / FSCTM CoC /Everyone is always coming up with FSCTM CWnew ideas. That’s what makes thedepartment special – enthusiastic Totalpeople. My job is to keep them 3,710,000 1,175,000 Capacity1that way! I also try to keep thingscalm when they get hectic. The milldepends on us. “Each day is different but I always PEFC – Programme for the Endorsement of Forest Certificationspend some time looking for the best FSCTM – Forest Stewardship Councilprice we can get for our electricity.” EMAS – Eco Management and Adult System: a voluntary clean citizenship initiative, constituting the highest environmental standards in Europe OHSAS – Occupational Health and Safety Sustainability Report 2011 | 29
  • transport Sappi transports around four million tonnes per year and we’re committed to minimising our environmental impact S appi Europe has a large and customers simply do not have access to extensive supply chain comprising rail or canals, and road is often the only many individuals, vehicles and practical method of transport for short depots. The company transports around distances. However, the move to intermodal four million tonnes of finished paper every transport means that 45% of all Sappi’s year. Understandably, such a large finished paper is transported by rail or organisation must look at its impact, canal; both comparatively energy efficient which could be considerable if not means of transport. managed correctly. Intermodal transport Less road, more rail Produce from Sappi Europe’s mills in Much of Sappi’s raw material and finished Lanaken, Belgium, and Maastricht, the produce is now transported by rail or canal, Netherlands, is now taken to the south rather than road. Investment in rail of Europe via a combination of rail and infrastructure at the mills plays an important road transport. This intermodal approach role in this. For example, Sappi’s mill in makes sense from both a financial and Gratkorn, Austria, recently shifted 17,000 environmental point of view. “IntermodalDaniel Thiemannof Sappi tons of material to cargo train. Previously, transport is a cost saver, good for theLogistics Wesel these materials were carried by truck. environment and more reliable,” says Daniel Sappi aims to increase this capacity to Thiemann of Sappi Logistics Wesel. the maximum, and block trains from The move to intermodal transportation Gratkorn to its operations in Wesel now also means that Sappi’s delivery fleet has tow some 22 wagons. Similar efforts been significantly reduced. There are now were taken with regard to the Lanaken 5,000 fewer truck deliveries per year as and Maastricht operations, where a result of using trains for long distance transportation to the south of Europe journeys to deliver and collect materials. was shifted from road to intermodal Sometimes the benefits are even greater, (rail and road). as it is possible for trains to be powered by Nevertheless, road transport hydro-electricity. This means emissions can continues to be an important be cut by over 30,000 tonnes per year means of distribution; most compared to road transport.
  • FROM NORTH TO SOUTH Sappi Europe’s distribution centre at Wesel in northern Germany offers a clear example of how intermodal transport can be simple, effective and45% environmentally beneficial. Trucks carry shipments to the nearest rail port. There, the entire trailer gets heaved onto a train where it sets off to a destination in Europe. Another truck picks up the trailer at this destination and completes the lastof all Sappi’s finished paper is leg of the journey.transported by rail or canal Sustainability Report 2011 | 31
  • printer/ consumer We have streamlined and refocused our brands, making it easier for customers to understand our offering P rint communication remains a customer service and today has adopted a powerful medium that plays a vital more structured approach. By making a role in any media mix. Despite the better assessment of customer needs and rise of digital media and the challenging developing cost-effective solutions, we add economic climate, the paper industry is value to the supply chain without adding adapting to new circumstances and print is costs, while becoming more flexible and taking its place alongside new media. In responsive to customer needs. Using order to maintain our position as a market effective tools to measure the added value of leader, it is vital that Sappi rises to the new initiatives, the business has made challenges of this new environment. To do significant changes to the way it interacts so, we must continue to sharpen our with its customers. For instance, in the past competitiveness and deliver the products the company used to send customers many and services our customers need at a shipping documents and we discovered that cost-effective price. We are committed to this was considered to be excessive. Now adding value to the businesses of the such dispatches have been greatly reduced printers and end-users that depend on the and customers have welcomed this service quality of our paper, technical knowledge, change. This is just one example of our many and reliable service. initiatives. Customers appreciate the efforts we have made on this front and a recent Seizing opportunities survey on customer service showed that we Sappi has embarked on a journey to bring have earned a score of 8.17 on a scale of 10. us even closer to our customers; to provide This result demonstrates the excellence of them with the right offering of products and our logistics service and puts us among the services at a competitive price. Through best in the industry. ‘Project Breakthrough’, in addition to regular Over the last year, we have significantly business interaction, we continue to engage reduced our cost base and improved our with our major customers in creating new efficiency and will continue to reduce our value propositions, product positioning, fixed and variable costs. Sappi has a brands and services, and working with them well-respected reputation for reliability and to create a business model that creates is working hard to maintain this reputation sustainable value for both parties. while meeting customers’ needs, at a Sappi has long been focused on improving competitive price.32 | Sappi Fine Paper Europe
  • STREAMLINING OURPRODUCT OFFERINGSappi Europe has streamlined andrefocused its brands, making it easierfor customers to do business with usand easier for them to understandour offering. By simplifying our brandranges, customers benefit from moretargeted products that better suittheir needs. Not only that, oursteamlined product ranges providea ‘one-stop-shopping’ option forcustomers, allowing them to choosefrom a range of products within afamiliar brand name. The change willallow Sappi to concentrate ourefforts on just a few brands. Sustainability Report 2011 | 33
  • JAZ: A COATED PAPER DESIGNED FOR FULL COLOUR PERSONALISATION The move to personalisation has led to an increase in the need to tailor information to consumers. The transfer of information from web to print (e.g. printed photo albums, personal publishing) in a cost and time efficient manner is also driving demand. Launched in 2011, Jaz silk is a coated paper that delivers excellent print quality for high-speed inkjet printing with full-colour personalisation. But it’s not just an aesthetic choice; it’s also a practical one. Its technology is jointly developed with HP and further fine-tuned to perform perfectly well on other high speed inkjet printers. Jaz silk eliminates the use of bonding agents and reduces ink consumption. The market response has been positive and Sappi’s ongoing partnerships with main OEMs have resulted in our market innovator position being maintained.34 | Sappi Fine Paper Europe
  • printer/ consumer We have considerable expertise in creatingspecial grades of paper S appi’s commitment to innovation is Algro Nature best expressed through its product Sappi joined forces with Innovia Films Ltd in range. We have considerable 2011 to demonstrate potential laminate expertise in creating special grades of structures, using their respective products, paper designed for specific markets. suitable for end users in the food, Several of our most recent product confectionery and pharmaceutical launches demonstrate this point clearly. industries. These bio plastic laminates provide technical functionality in addition to Fusion: The premium white top liner being made from renewable resources and Sappi launched Fusion premium top liner in offering compostability. 2011 in response to the increasing demand Both companies recognise that the best for high-quality print finishing for packaging end-of-life options for flexible paper/film and displays. Fusion is the first liner we laminates are either industrial, home have produced and it opens up an exciting composting or ultimately anaerobic new business market for us. In an digestion, which turns waste into a useful increasingly tough economic environment, energy source, compared to current landfill there is a need and interest for creative and or incineration solutions. business-savvy ways to differentiate brands Innovia Films Ltd with its NatureFlex™ and to maximise point of sale presence, and product range, brings its unique expertise Fusion meets this need. in manufacturing renewable and Fusion offers a whiteness and brightness compostable cellulose-based films with that was rarely achieved previously with tailored moisture and barrier properties. liners. In addition to the extra dimension Sappi brings our expertise in manufacturing that Fusion can bring to packaging and flexible packaging papers, and now offers displays, it has numerous other benefits that coated and uncoated compostable paper can be experienced throughout the options; Algro Nature is a home production chain. These include less compostable one side coated paper; Leine downtime related to washing intervals in the Nature is an uncoated equivalent, which is printing process, reduced glue consumption also compostable. The products have been in the lamination process, and a choice independently tested and have received the between sheet and reel formats from the ‘OK Compost Home’ certification by outset. A simplified pricing model and the Vinçotte, and also the compostability DIN lighter weight of the paper itself means E13432 certification by DIN CERTCO. more sheets per stack, and reduced Trials have been made on both extrusion transport costs. By coating and calendering and adhesive laminate systems, targeting the paper, the Fusion surface offers a end users who are seeking alternatives to superior quality and gloss that other top existing non-compostable structures. liners can’t match, all elements that our customers were asking for combined in one product. Sustainability Report 2011 | 35
  • printer/ consumer Initiatives that you should know about Ideas that Matter The Ideas that Matter competition run by Sappi for over a decade places the emphasis on the realisation of design projects to generate awareness of well known, and less well known issues in the broad categories of Environment, Culture, Education, Healthcare, Human Rights and Society. The strong partnership approach between designers, non-profit organisations and Sappi that has been established during the lifetime of this initiative has proved to make a difference, helping people and doing our planet some good. The winners of the 12th edition of the competition have been announced and can be found on the dedicated Ideas that Matter website. sappi-ideasthatmatter.eu Sappi European Printers of the Year Awards The Sappi European Printers of the Year Awards (SEPOTY Awards for short), first launched in 1993, were established by Sappi to reward and recognise excellence in print. The competition has evolved alongside the industry, by recognising innovation in the sector and adding new categories along the way, such as digital print and both sheet fed and web magazines. The SEPOTY Awards encourage printers to find the best processes, find the best papers and find the best combination of experience and graphic materials to achieve the best results for their customers. Recognising printers who give their utmost and set new standards in print excellence, the contest is open to any printer from Europe and the Middle East who has his or her work commercially printed on mainly Sappi paper. Out of an average of 5,000 entries, the best print job in each continent is rewarded and competes for the global Printers of the Year Award. sappi.com36 | Sappi Fine Paper Europe
  • My Life in PrintMy Life in Print, released by Sappi in 2011, celebrates therichness that print has brought, and continues to bring, tothe lives of people in all walks of life, in all sorts ofsituations and for all sorts of reasons. A myriad ofexamples in a creatively and specially designed publicationthat looks like a magazine but reads like a book, reflect how print and paper is integral to our daily lives. In it, fascinating content on subjects ranging from print and the environment, to print and business, to print and the intimate detail of Houston people’s lives, is Sappi developed a brand new online shared with knowledge platform in 2011 called Houston, curious readers. specifically designed as a support tool The book for professionals working in the paper contains five and graphic industries. As well as easily chapters, exploring accessible information on paper, printing how print puts us in and converting-related topics, live expertstouch with ourselves; the unique place of print in the media will work with professionals to find solutionsmix; why print and paper are key to a sustainable future; the to issues in real time. Once users register,enduring adaptability of print and paper; and how print they will be able to access information onallows us the space to be who we really are. Intimate stories the latest printing techniques and paperusing real life examples bring our relationship with paper to types, market trends etc. Polls, marketlife in a relevant and meaningful way. This latest publication feedback and opinions will also be hostedby Sappi Fine Paper Europe belongs to the Life With Print on the regularly updated site providing(LWP) initiative, the objective of which is to show the valuable news to users about the broaderefficient and effective use of the right media mix. industry environment they are working in.sappi.com sappi.com/houston What’s Next What’s Next is first and foremost a support tool for Sappi and its customers. With several grades and types of paper used in every issue, Sappi combines sight and touch to bring the articles alive and provide new ideas and tools for printers. The magazine is the ultimate showcase of Sappi papers. The diverse content featured in What’s Next reflects Sappi’s passion for print. By focusing on how innovation in paper and publishing can help push the boundaries of creativity, Sappi aims to show that paper is more relevant than ever, providing engaging and sensory functionalities that set it apart from the online world. A recent survey has shown that the magazine is very much appreciated amongst publishers and design agencies who are pleased that Sappi supports the industry in such an innovative way. They appreciate the source of inspiration it provides. And the figures are showing this with an increased membership and paper sample ordering. Also, the complementary content on the What’s Next website serves to amplify and add to the story in the magazine paper version demonstrating how print and digital can work well together. whatsnextmagazine.net Sustainability Report 2011 | 37 Sustainability Report 2012 10
  • people Every one of the 6,000 people employed by Sappi across Europe underpin our success as a business A commitment to People is one of the environment we are operating in. pillars on which Sappi’s business We strongly believe, and are confident rests. Our employees are vitally that, our people initiatives are well important to the success of our business established and support the various and we want our mills and offices to be challenges we are facing, and are great places to work. Sappi’s ethos of the going to face. 3P’s – Planet, People and Prosperity – illustrates this commitment. However, there Skills and sustainability is no single policy that can make this We are committed to building a sustainable happen, but rather, a series of different future for our business and staff. Skills and initiatives, which help to create a culture of training play an important role in this health and well-being. ambition. However, responsibility for this Sappi is very committed to having a rests with both management and staff. fulfilled and engaged workforce that delivers Sappi creates a work environment that on its key business drivers. stimulates and supports employees to We believe it is important that the continuously increase their skills. This desire work of each and everyone of our to improve must, however, be driven by the employees is connected to our overall staff members themselves otherwise the strategy. As a result, Sappi focuses on programme won’t work. creating work environments that stimulate An ever increasing skill and experience and support our employees in building base means more flexibility, enabling strong skills through various training and managers to more easily realign the development initiatives. This, in turn, will company’s operations with customer help staff to improve their performances demands as they change. and increase the prosperity of the company The paper industry is going through as a whole. It is needless to say that our a period of many challenges at the leaders play a key role in that process! moment and this dynamic period is Strong and effective leadership will likely to continue for the foreseeable make the difference – be it towards future. But by increasing and improving engaging our staff, further transforming the their skills, staff will provide a resource work place, or leading the changes needed from which management can continuously in response to the constantly evolving draw upon.38 | Sappi Fine Paper Europe
  • people1.4% Connecting our Training and development people to our Our focus on training and development, business whether it is to learn new skills, improve Sappi’s performance or to prepare for a future management takes career step, is recognised as a strategic tool considerable for Sappi’s continued growth, productivity efforts to discuss and its ability to retain valuable employees. The voluntary staff the future of the Together with our employees we aim to turnover rate at Sappi business with all foster a culture of life-long learning. This employees. Its approach is becoming increasingly critical processes enable them to understand fully for our success, especially in the context what they need to do in their roles to of ageing workforces, rapidly changing contribute to the overall achievement of the demands, declining numbers of apprentices strategy and annual business targets. and a lack of skilled workers in the Sappi’s communication and strategy foreseeable future. initiatives include: The industry is going through many Annual roadshows by the CEO, changes. Continuously investing in our supported by the respective European people, as well as bringing in new/younger Functional Heads. The last roadshow, staff with potentially different skills and which took place in the fall of 2011, was mind-sets, will help us to remain a great success competitive. Sappi’s apprenticeship l Annual strategy deployment sessions to programme provides over 220 school ensure that the targets of the management leavers with training for roles such as paper population are well aligned makers, process operators, engineering l Actively working to ensure all artisans and business clerks. This training employees participate in the performance comprises both formal learning and management process practical on-the-job experience, and means During the past year, we have continued a new generation of workers are coming in our efforts to reach a 100% participation into Sappi’s operations. At the management rate in our performance management level, Sappi’s pan-European two-year process. One major step toward achieving graduate trainee program enables the this was an agreement with the works company to source and grow managerial council at our Lanaken Mill to launch the talent. Meanwhile there are company-wide pilot for the performance management targets to ensure that every employee gets process with the blue-collar staff. 30 hours of training per year. In the past two Meanwhile, discussions to include blue- years (2010 and 2011) the average amount collar employees at our Stockstadt mill was 25-26 hours. in the performance management process are on-going. Developing a strong leadership culture Sappi focuses on building leadership capability at all levels of the business and is committed to bringing through these peoplePerformance management process from within the existing workforce. We believe that a strong leadership culture drives Total number others and that this is of population Total number crucial for effective Total number Business eligible to of completed Completion execution of our strategic of employees Year participate in performance Rate priorities. Sappi has in Europe Performance appraisals defined a set of leadership Management competencies, which state what qualities and 2009 6,870 3,200 2,400 75% behaviors are expected from our leaders. It also 2010 6,615 5,600 3,976 71% runs an annual bottom-up 2011 6,010 5,233 3,980 76% talent review process to identify, validate and40 | Sappi Fine Paper Europe
  • further develop all its talents across bringing forward people with different the organisation. nationalities, backgrounds and experience Over the last six to seven years, into management positions. Of the most approximately 80 managers have recent 25 new management appointments participated in Sappi’s Leadership two-thirds were from a different function, Academy. During this 12-month program, location or nationality or any combination participants undergo a series of of the three. development initiatives focusing on Sappi’s Sappi has also intensified its efforts to six leadership competencies. The company recruit, retain and promote women. aims to run this initiative for a group of up to This will be a challenge because women 15 participants on a regular basis. traditionally have been underrepresented in By continuously developing the engineering domains. Sappi is aware of the leadership skills of managers and ensuring need to appoint women at management they have an understanding of leadership levels and continuously strives to find appropriate for the times, Sappi is opportunities to address this shortage. establishing some of the essential prerequisites for attracting, retaining and developing good people. All managerial and Business Year Business Year supervisory staff have been trained in-house 2010 2011 in Situational Leadership II. This training is Women as % targeted to further enable managers to of total adjust their leadership style to the task- 12.5% 12.2% European related development level of the employee, and thereby improve the overall workforce effectiveness of process and results. Women as % in Over 130 employees have participated in European the Business Academy over the past six to 12.0% 12.4% Management seven years. This program provides insights positions into the pan-European business and functional strategies and networking Engagement and staff retention220 opportunities. The Sappi Group employee engagement A series of survey measures staff attitudes with regards professional tools to their work. It looks at the employees level are used to give its of discretionary effort and intent to remain leaders regular with the company by measuring their feedback on how rational and emotional commitment. their environment In the most recent survey (2011)Sappi’s apprenticeship sees them behaving, European employees said working for theirprogramme provides training as well as team, their boss and Sappi, in general, isfor over 220 school leavers continuously giving them the best opportunities for growing their personal growth and recognition. This, in self-awareness to build effective relations turn, has a positive impact on their intent to across the organisation (MBTI, 360 stay with the company. feedback tools, etc.). One area that requires further attention, though, is employee commitment and Women and diversity willingness to go beyond the minimum As a global company, we employ a diverse requirements of their jobs. While workforce. We value this diversity, believing discretionary effort is at good levels for our that it contributes to innovative thinking and management population, it decreases for our ability to serve diverse global markets. our middle-management, and is below the A workplace free of discrimination and benchmark for our white- and blue-collar harassment is the minimum requirement populations. Efforts are underway to for all modern companies, and Sappi has address this issue – staff will be engaged effective policies in place that take this through workshops, team analyses, into account. feedback sessions and action plans. In Sappi has recently had some success in addition we have launched our ‘Driving Sustainability Report 2011 | 41
  • peopleChange’ program, which will support smoking support programs.addressing some of the organisational Sappi has advanced its health and safetytopics identified. programme through the development of Sappi needs to keep our best people, and SARA its new state-of-the-art Europe-widea low staff turnover rate is a clear indicator IT system for improving safety andof whether or not this is happening. In 2011, environmental management. The systemSappi’s turnover rate was 14.2% up from supports that all of Sappi’s European mills7.4% the year before, although this was and workplaces conform to the sameprimarily due to restructuring activities. The protocols and reporting standards. Thiscompany’s voluntary turnover numbers are makes measurement easier and hasconsiderably lower – 1.4%. improved management. Sappi’s aim is to keep voluntary turnoverbelow 1.5%. Compensation philosophy Sappi’s compensation policy is aboutTrade unions rewarding staff fairly and equitably inThe Industrial Relations climate between relation to job level, experience andSappi Fine Paper Europe and its unions and employment market. Variable rates of payemployee representatives is generally designed to drive individual and teamconstructive and good – bargaining and performance are part of this policy.negotiations overall take place in good The majority of staff participate in afaith. The company will continue to keep variable bonus program which will pay out adialogues open and cordial and ensure staff bonus if certain thresholds and targets areare properly represented. met. In addition we have a Sales Incentive Plan in place for our sales staff, as well as aHealth and safety in the workplace globally aligned Management IncentiveSappi’s health and safety approach has five Scheme for our management employees.key ambitions: a zero injury rate, integrated Long-term incentive awards are granted tohealth and safety management, training at our management group across Europeall levels, participative information and through the Sappi Limited Share Incentivecontrol structure, adherence to international Scheme and the Sappi Limited Performancebest practice and safety standards. We hold Share Trust.a Safety Awareness Day at all our sitesaround the world. The purpose of the day is LTIFR (own LTIFRto focus the attention on health and safety Business Yearissues and to ensure that all staff behave in employees) (contractors)a responsible way for the sake of 2009 1,85 6,77themselves and their colleagues. Sappi’smills are getting safer and the majority of 2010 1,44 4,77the company’s plants have achieved thetarget of one million hours without an injury. 2011 1,30 3,67The company officially recognises plantswhen they surpass this milestone. Another measure of good health and Pensionssafety is the Lost Time Injury Frequency rate The majority of our employees are covered(LTIFR). The table (right) demonstrates through social security funded state pensionSappi’s progress. schemes. Sappi offers company pension Sappi supports its staff in maintaining schemes to:their physical and mental capacity to (i) All employees where minimal stateperform, and in encouraging them to adopt pension schemes are provided (e.g. Thehealthy lifestyles throughout their working Netherlands)lives. The company offers preventive (ii) Certain employees (seniormedical check-ups and programs. Activities management) where state pension schemesrange from flu vaccinations and counseling provide a replacement income only up to afor employees whose well-being is affected certain salary level (e.g. managementby work or external factors, support of pension schemes in Germany and Austria);employee sports and social activities, to (iii) All employees in line with marketconsultation with a dietician, and stop- practice and in response to relatively low42 | Sappi Fine Paper Europe
  • DID YOU KNOW? The majority of staffparticipate in a variable bonusprogram which will pay out a bonus if certain thresholds and targets are met state pensions (e.g. Belgium). While our existing schemes are a combination of Defined Contribution and Defined Benefit plans, the way forward will be to offer Defined Contribution plans only where appropriate. In summary Sappi can secure its future by attracting skilled employees, continuously developing their skills, and building loyalty through a wide range of initiatives and services as detailed in this report. Measures that will help us to achieve our goals include: Offering attractive conditions and training programs to prepare young, skilled employees for their future work and ensuring that we retain employees with key skills for the long term Analysing individual competencies and focusing on developing them through our competency and talent management programs Showing our appreciation for our employees’ dedication – for example, through competitive remuneration and a range of additional benefits Promoting the mental and physical health of our employees and providing them with secure, healthy jobs Supporting collaboration within the company between people of different cultural backgrounds, age groups and genders Complying with all the relevant standards and declarations at all times (e.g. ILO) It takes inspirational and engaging leadership to attract, develop and retain talented and motivated employees who form the heart of a high performance culture. At Sappi we are confident that our programmes are sufficiently rigorous and far-reaching to enable the company to create a high performance culture and for the business to fulfill its ambitions. Sustainability Report 2011 | 43
  • %+/ Key performance indicators The management of the environmental aspects of our production processes is part of our day-to-day work O ur paper is based on fibres derived It is important to note: from wood – a renewable resource that 2009 was a significant year for Sappi with high levels of renewable energy, Fine Paper Europe with the integration of and a resource that is completely four paper mills from m-real – Kirkniemi and recyclable. The pulp and paper production Kangas in Finland, Stockstadt in Germany requires sophisticated processes, raw and Biberist in Switzerland. This, coupled materials and energy. The management with extreme production curtailments due to of the environmental aspects of these poor market demand from the economic processes and their impact is part of our crisis, had a negative impact on the day-to-day work. environmental performance indicators. The following performance indicators Paper machines are designed for offer readers a deeper look at our continuous production. Starting and environmental performance data over the stopping them required extra water and past five years—from fibre procurement energy and impacted on the raw material and energy usage to how our operations efficiency of the production process. impact on air, water and solid waste. If the indicators are also GRI indicators They are based on actual production, they are reported according to these and include production of those paper guidelines. SO2 and NOx (GRI indicator machines and mills that have since EN-20), water use (GRI indicator EN-8 and closed (Blackburn, Maastricht PM5, Kangas EN21), COD and TSS (EN-21), solid waste and Biberist). to landfill (EN-22).44 | Sappi Fine Paper Europe
  • Fibre-split 2011 Fibre Over the last five years we were able to increase the share of certified fibres and keep it well above 70%. Our European mills predominantly use PEFC certification for their fibre sources. In a few regions, including Finland and the state-owned forest in some areas of Germany, both FSCTM and PEFC certification is planned. Overall the number of certified forests is slowly Purchased fibre increasing in Western and Central Europe. Any non-certified material entering our products is subject to strict risk assessment processes which meet FSCTM Controlled Wood requirements and the PEFC Due Diligence System. We are the Europe market leader in integrated sulphite pulp production. Together with the CTMP (Chemical Thermo Mechanical Pulp) production at our Lanaken and Kirkniemi mills we produce 47% of our Own made fibre fibre needs ourselves. Certified fibre share SFPE Total fibre input 2011100 90 80 70 60 50 40 30 20 Certified 10 0 2007 2008 2009 2010 2011 PEFC FSCTM Target Controlled wood Waste 10.0 Waste to landfill (kg/adt) The material that is landfilled is to a large extent ash, 9.0 which can be used for other things, such as the 8.0 production of cement, other mineral building material, 7.0 fertiliser and soil substrates. The majority of our ashes 6.0 are already recycled and we are further working to 5.0 reduce the amount of material to landfill. 4.0 There is no organic material from our mills going to 3.0 landfill. Where possible, the organic waste material 2.0 generated at our sites is used as a renewable fuel on 1.0 site to produce by-products. Waste paper, scrap metal, scrap electronics and even 2007 2008 2009 2010 2011 most of the hazardous waste and building rubble is recycled, while residual waste is sent to sorting centres where recyclable material is recovered. Sustainability Report 2011 | 45
  • %+/ Key performance indicators Emissions 0.80 0.70 NOx emissions (kg/adt) The emission parameter which is receiving most of the attention is carbon dioxide due to its impact on 0.60 climate change. We are addressing this with our 0.50 reduction target (see page 9). 0.40 SO2 and NOx are two emission parameters important 0.30 to control as they can contribute to acid rain which, in turn, negatively impact our forests’ health, as well as 0.20 the health of the plant and wildlife around us. 0.10 SO2 is emitted from the use of fossil fuels, such as coal and oil. More significant, however, are the 2007 2008 2009 2010 2011 emissions from our recovery boilers which use the black liquor from the pulping process. The SO2 in the off gas of the incineration process is recovered in a cascade of wet scrubbers and recycled into S02 emissions (kg/adt) cooking acid. 0.40 NOx emissions are caused by any combustion process where nitrogen (air) is present. High 0.35 temperatures, which are sometimes needed to increase 0.30 efficiency, can increase the generation of these 0.25 emissions. A small downward trend can be shown over the past three years. 0.20 0.15 0.10 0.05 2007 2008 2009 2010 2011 8.0 7.0 Chemical oxygen demand (COD) (kg/adt) Water 6.0 5.0 4.0 emissions 3.0 COD and TSS are key indicators for organic pollution to water. 2.0 Our highly sophisticated waste water treatment plants 1.0 dramatically reduce the organic pollution. Some of the COD is 0.0 residual lignin that our treatment plants cannot reduce further. 2007 2008 2009 2010 2011 However, it is inert and does not reduce oxygen levels in receiving waters. The general specific trend is downwards with a small increase in COD in 2011. Total suspended solids (TSS) (kg/adt) 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 2007 2008 2009 2010 201146 | Sappi Fine Paper Europe
  • Energy Water Over the past five years, as you can see we have Although the total use of renewable fuel increased, the reduced the water use of our production further. share of renewable fuel shows a small downward trend. This graph also shows the difference of water intake However, it still reaches a very significant share of and discharge. Some water footprint methodologies 34.2% in 2011. consider this difference to be the water footprint, The shares of total energy use includes all fuels, and as such this amount is not available for subsequent purchased steam and the net balance of sold and processes. purchased power. For a complete balance, we would have to consider the water in our raw materials (paper contains about 5% of water), evaporation and precipitation. By far the largest share of our water is abstracted Share of renewables in fuels used from river or surface waters. Wells on or very close to our mill premises account for 14.4% and a very small45% amount is municipal water. We also treat a small amount40% of waste water from external processes, which35% accounts for 0.8%.30%25%20%15%10% Water use 5% 25.0 0% 2007 2008 2009 2010 2011 20.0 Total energy use for SFPE 2012 15.0 10.0 5.0 0.0 2007 2008 2009 2010 2011 Water intake Water discharge Natural gas Total water withdrawal by source 2011 Renewable fuel Extraction from river Coal Own boreholes (0.8%) Net purchased electricity Waste water from outside operation (0.2%) Purchased steam Ex utility Fuel oil Sustainability Report 2011 | 47
  • www.sappi.com Photos: 13, 18, 21, 25, 34, 42/ 43 copyright EKI all rights reserved; Cover, 10, 31 Getty Images; Illustrations: Mike Lemanski. Printed on Sappi | Magno™ satin 250g/m² (cover) and 150g/m² (text), a member of the Magno™ range © 2012 Sappi Europe SA Marketing Communications