Compliance and Governance

As we work to build a thriving world by unlocking the power of renewable resources to benefit people, communities, and the planet, we need to do so from a foundation of trust. This foundation is reinforced by our robust sustainability governance structure, our compliance to all relevant laws, regulations and codes of conduct, and a transparent and ethical culture founded on accountability and strong risk management.

Sappi’s Sustainability Governance Framework involves multiple governance functions, each with specific roles and responsibilities. The Social, Ethics, Transformation and Sustainability (SETS) Committee has an independent role with accountability to the board and comprises a majority of independent non-executive members, whose duties are delegated to them by the board in compliance with a board-approved terms of reference.

The role of the SETS Committee is to assist the board with the oversight of sustainability matters within the company, including climate, nature and equity-related issues, and to provide guidance to management’s work in respect of its duties. The SETS Committee provides oversight on the Group’s sustainable development strategies, policies, objectives and targets and public disclosures. The committee addresses issues relating to environmental impact and climate change, corporate social investment, ethical conduct, diversity, transformation and empowerment and ongoing sustainability initiatives. The responsibilities include monitoring the company’s environmental, social and corporate governance (ESG) activities, having regard to any relevant legislation, other legal requirements and prevailing codes of best practice.

The Audit and Risk Committee provides additional oversight on sustainability-related risks as part of the group’s risk management and financial reporting processes. The Remuneration and Compensation Committee ensures that incentive schemes align with sustainability strategies, tying remuneration to performance against key sustainability commitments.

The Executive Management Committee (EXCO), chaired by the Group CEO, is accountable for delivering the sustainability strategy and ensuring business objectives align with sustainability goals. The committee is responsible for ensuring that capital allocation is aligned with business and sustainability objectives and prioritised appropriately to ensure timely delivery against our public commitments. The EXCO regularly reviews progress against our sustainability and climate commitments and targets. In addition, sustainability matters of a strategic nature are reviewed and discussed by the EXCO prior to submission to the SETS Committee. This allows the EXCO to provide their strategic input and ensures that there is complete Management alignment on sustainability matters.

The Group Sustainable Development Council (GSDC) monitors global and regional sustainability trends, advising on strategy and policy that are passed to EXCO, SETS Committee, and the board.

The Regional Sustainability Councils in Europe, North America, and South Africa implement on-the-ground sustainability strategies, overseen by the GSDC. These councils ensure that regional action plans align with global sustainability goals and commitments.