- Sappi’s AGM will be held on Wednesday, 07 February 2024 at 14:00: The last day to trade in order to be eligible to attend and vote at the AGM is Tuesday, 30 January 2024. Refer to page 3 for the proposed resolutions.
- Sappi continued to make progress in terms of increasing the share of renewable and clean energy to reach 57.9% in 2023: North America ranks the highest at 78.2%, followed by South Africa at 50.3%, while Europe is the lowest at 48.6%.
- Absolute GHG emissions declined in 2023; however, specific emissions increased by 16%: There was a 13% reduction in absolute Scope 1 and Scope 2 emissions compared to the previous year, primarily a reflection of lower annual production (saleable production: -25% y-o-y). However, Specific Scope 1 and Scope 2 GHG emissions increased by 16.1% in 2023, mainly attributed to a significant reduction in energy efficiency associated with the high levels of production curtailment that was required throughout the year due to challenging market conditions.
- Climate change is one of Sappi’s top 10 risks identified: Sappi is committed to the reduction of GHG emissions and have set decarbonisation targets. Sappi commits to reducing Scope 1 and Scope 2 GHG emissions by 41.5% per ton of product by 2030 from a 2019 base year.
- Sappi had an excellent safety year with all the regions achieving record safety performances: The group achieved its best lost-time injury frequency rate performance. Yet again, no work-related fatalities occurred during 2023.
- Sappi’s Short Term Incentives measures (MIS) remain unchanged: In 2023, the weightings remain unchanged, with a 50% weighting for EBITDA; 20% for ROCE; 10% for safety and 20% for individual performance.
- Sustainability (decarbonisation) to be included as part of the LTI performance metrics from October 2024: The focus for 2024 will be to finalise the details of their sustainability measure for inclusion in their LTI plan. This measure will be based on Sappi’s decarbonisation plan and will account for 10% of the overall LT measures.
- The Nomination and Governance Committee reviews the composition of the board three times per annum: In 2023, the total board was comprised of 14 members, of which 86% (12) were independent and 14% (2) were non-independent. The average tenure of the board was 8 years, and the average age of directors was 62. The current Chairman, Sir Nigel Rudd, and Mr Peter Mageza (Chairman of the Audit and Risk Committee), will retire from the Sappi board in February 2024. Nkululeko Sowazi will be the future Chairman of the board. Subject to shareholder approval, Zola Malinga has been appointed as the new ARC Chairperson as from 08 February 2024.
- Sappi’s contribution to executive remuneration from guaranteed pay was higher than all peers in the past year: This was on the back of significantly lower ST and LT incentive bonuses as EBITDA came under pressure in 2023. Comparing total CEO remuneration for Sappi and its peer group versus their respective market caps, Sappi’s estimate of 0.06% is in line with the group average.
- Non-executive directors’ fees will be increased by 4.0% to 6.5% in 2024: As for the current Chairman’s fee, for the third consecutive year, no increase was recommended. NEDs do not earn attendance fees; however, additional fees are paid for attendance at board meetings more than the five scheduled meetings per annum.
Download Report
