march 2009 sustainability. slide 2 in our electronic age, is paper sustainable? paper has been part...
TRANSCRIPT
March 2009
Sustainability
Slide 2
In our electronic age, is paper sustainable?
• Paper has been part of our culture for over 2 000 years and is irreplaceable.
• Paper is a key driver of literacy and education, particularly in the developing world, where electronic media are often inaccessible and unaffordable.
• In the developed world, usage of high-end paper increases as consumers become more affluent and more sophisticated.
Slide 3
How do we define sustainability at Sappi?
Performance based on generating Prosperity for
shareholders, while improving the lives of People and treading more lightly on the Planet.
Slide 4
The 3Ps of sustainability at Sappi
PProsperityrosperity PPeopleeople PPlanetlanet
Slide 5
We take a long-term approach
In the current global In the current global economic crisis the economic crisis the challenge is to avoid challenge is to avoid taking a short-term taking a short-term view by focusing only view by focusing only on Prosperity at the on Prosperity at the expense of People expense of People and Planet …and Planet …
Slide 6
We take a long-term approach
In the long term, it makes In the long term, it makes sense also to take People sense also to take People and Planet into account and Planet into account – – a view shared around a view shared around the world.the world.
Slide 7
Global views
“Reviving the global economy is essential … but unless new policy initiatives also address other challenges – reducing carbon dependency, protecting ecosystems and water resources, and alleviating poverty – their impact on averting future crises will be short-lived.”
United Nations Environment Programme, calling for a “Global Green New Deal” January 2009
Slide 8
Global views (continued)
“The financial crisis and its effects on the global economy have made it clear that the stability of our global market system depends on responsible behaviour, sustainable business models and proactive management of business impacts on society as well as regulatory frameworks.”
Craig Smith, INSEAD Chaired Professor of Ethics and Social Responsibility February 2009
Slide 9
The hidden costs of turning your back on sustainability
In the long term, the In the long term, the disadvantages of turning disadvantages of turning your back on People and your back on People and Planet far outweigh the Planet far outweigh the advantages, particularly advantages, particularly in a world where in a world where stakeholders demand stakeholders demand high levels of high levels of transparency and transparency and accountability from accountability from business.business.
Slide 10
Reputation is difficult to repair
• Arthur Anderson: found guilty of shredding documents Arthur Anderson: found guilty of shredding documents related to audit client Enron related to audit client Enron
RESULT: 2002 - 85 000 employees, 2009 – 200 RESULT: 2002 - 85 000 employees, 2009 – 200 employees employees
• Barings Bank: unchecked risk-taking by rogue trader Barings Bank: unchecked risk-taking by rogue trader Nick Leeson Nick Leeson RESULT: Taken over by ING BankRESULT: Taken over by ING Bank
• Enron: financial irregularities Enron: financial irregularities RESULT: Directors arrested, Arthur Anderson included in RESULT: Directors arrested, Arthur Anderson included in
fall-outfall-out
• Merck: financial irregularitiesMerck: financial irregularitiesRESULT: Withdrew from IPO expected to raise $1 billionRESULT: Withdrew from IPO expected to raise $1 billion
Slide 11
Sustainability makes sound business sense
At Sappi, we believe that even – At Sappi, we believe that even – ESPECIALLY – in tough economic ESPECIALLY – in tough economic times, sustainability makes sound times, sustainability makes sound business sense. business sense.
WHY?WHY?
Slide 12
Sustainability enhances competitive advantage and shareholder value
Properly managed, sustainability is COST SAVER, not a cost Properly managed, sustainability is COST SAVER, not a cost driver. driver.
For example, eco-efficiency goes straight to the bottom line. For example, eco-efficiency goes straight to the bottom line.
Similarly, a high level of skills can impact on productivity and Similarly, a high level of skills can impact on productivity and hence on the bottom line.hence on the bottom line.
In other words: a lean, green business is good for Prosperity, In other words: a lean, green business is good for Prosperity, People and Planet and a balanced approach to the 3Ps, People and Planet and a balanced approach to the 3Ps, reduces costs, helps hone competitive advantage and reduces costs, helps hone competitive advantage and enhances long-term shareholder value.enhances long-term shareholder value.
Slide 13
How are we ensuring that Sappi is a sustainable organisation?
Our CharterOur Charter
Slide 14
The benefits
• Shareholder value, job creation
• Uphold reputation
• Niched products
• Outstanding brands
• High levels of transparency and accountability
• Economic benefits flow in many directions
SLIDE EIGHT
Our Charter commitments• Focus on long-term profitable growth
• Promote an ethical culture
• Drive customer satisfaction through technology and innovation
• Build on our competitive position in our core markets
• Maintain our licence to trade
• Create value for all stakeholders
Prosperity
Slide 15
SLIDE EIGHT
Our Charter commitments
Cultivate an inclusive, diverse workplace
Be a great place to work
Provide training and development opportunities
Prioritise wellbeing, health and safety
Partner with communities
Engage with stakeholders openly and constructively
The benefits
Improved productivity and performance
Enhanced competitive advantage through attraction of top talent
Added value to Sappi
Positive impact on morale, productivity and reputation
Enhanced licence to trade
More responsive stakeholders
People
Slide 16
SLIDE EIGHT
Planet
Our Charter commitments
Continue our commitment to independent environmental, wood and fibre certification systems
Safeguard biodiversity by promoting sustainable forestry
Reduce solid waste and improve water quality
Reduce greenhouse gas emissions and increase our use of renewable energy
Provide the recovery and use of recycled fibre
The benefits
Enhanced reputation. Competitive marketing advantage. Culture of environmental responsibility.
Enhanced reputation. Competitive marketing advantage. Culture of environmental responsibility.
Eco-efficiency = reduced costs, less impact. Competitive marketing advantage.
Eco-efficiency = reduced costs, less impact. Competitive marketing advantage.
Eco-efficiency = reduced costs, less impact. Competitive marketing advantage.
Slide 17
A growing global focus on sustainability issues
There is a groundswell of focus on sustainability.There is a groundswell of focus on sustainability.
Consumers the world over have a growing ethical, Consumers the world over have a growing ethical, environmental and social agendaenvironmental and social agenda..
Slide 18
Environmentally friendly products command a premium
A recent Accenture A recent Accenture global survey of over 7 global survey of over 7 500 individuals in 17 500 individuals in 17 countries indicated that countries indicated that a majority of a majority of respondents (64%) is respondents (64%) is ready to pay a premium ready to pay a premium for environmentally for environmentally favourable products.favourable products.
Source: Accenture 2008
Slide 19
Environmentally friendly products command a premium
Issues such as food Issues such as food miles are influencing miles are influencing purchasing decisions. purchasing decisions.
Slide 20
• Our products are Our products are manufactured using a manufactured using a large amount of large amount of renewable energy – renewable energy – biomass and the black biomass and the black liquor derived from our liquor derived from our own pulping processes. own pulping processes.
• Our products carry Our products carry credible environmental credible environmental certifications. certifications.
No other print or packaging medium can make the claims we can:
Slide 21
No other communication medium can make the No other communication medium can make the claims we can: claims we can:
In the light of concerns about the finite nature of the In the light of concerns about the finite nature of the earth’s resources, we offer products from sustainably earth’s resources, we offer products from sustainably managed forests which provide a continuously renewable managed forests which provide a continuously renewable raw material source. raw material source.
Other communication media, like computers contain Other communication media, like computers contain mined elements which are not renewable. mined elements which are not renewable. The average personal computer, for example, contains 40 The average personal computer, for example, contains 40 mined elements.mined elements.(Cynthia Carroll, CEO Anglo American, speech (Cynthia Carroll, CEO Anglo American, speech to the Global Reporting Initiative, 2007)to the Global Reporting Initiative, 2007)
Slide 22
We offer products consumers can feel good about
In the light of concerns about climate change, we In the light of concerns about climate change, we can offer products that minimise carbon footprintcan offer products that minimise carbon footprintin a way that oil-based plastics do not – COin a way that oil-based plastics do not – CO22 is is
incorporated into forests and forest soils by trees incorporated into forests and forest soils by trees and other plants which then give off oxygen. and other plants which then give off oxygen.
Slide 23
The beneficial impacts of forestry
Slide 24
Actions speak louder than words
We are leveraging our opportunities by actively We are leveraging our opportunities by actively living up to our Charter commitments. living up to our Charter commitments.
We can demonstrate that:We can demonstrate that:
We are not just talking and thinking about We are not just talking and thinking about sustainability, we are actively entrenching the 3Ps sustainability, we are actively entrenching the 3Ps into all our business processes.into all our business processes.
Slide 25
Join our sustainability journey