BBBEE in South Africa

​Transformation

We support the spirit of Broad-based Black Economic Empowerment (BBBEE) and commit Sappi to significant planned and enacted transformation.

As a company headquartered in South Africa, with significant assets and people, transformation is an important component of our reputation and licence to trade. We recognise that transformation is not just a moral imperative, but a pragmatic growth strategy that aims to realise the country’s full economic potential while helping to bring the black majority into the economic mainstream. Our focus, in terms of BBBEE, is to make a meaningful difference.

We were audited by ratings agency Empowerdex in November 2015 and were classified as a Level 3 contributor with a procurement recognition level of 110% for the 2016 year. We achieved a score of 80.24. We have also been classified as a ‘Value Adding Enterprise’ which improves our preferential procurement recognition level by 1.25 times.

Please click here to view our 2015 performance against the scorecard elements.

We have been approached by a large number of land reform beneficiaries to assist them with the management of the timber on their properties, post settlement. By September 2015, Sappi was involved in 44 land reform/land restitution projects (including those on existing community land or on those purchased by the current owner, totalling 18,803ha. These projects range from 28ha to the biggest project of 6,876ha planted near Lothair in Mpumalanga. A large number of these properties previously belonged to commercial farmers who had supply agreements with Sappi.

To ensure sustainable production from these properties, we have entered into supply agreements with the new beneficiaries and have also provided business assistance. This depends on the requirements of the project, but ranges from a pure supply agreement to a comprehensive Forestry Enterprise Development Agreement (FEDA). The latter is a supply agreement but also incorporates development objectives whereby Sappi provides technical and business training as well as administrative support.

Please click here to view our FAQs on ‘Transformation (BBBEE) in South Africa’.

Sappi supports the vision of a transformed, sustainable and growing forest products sector that contributes meaningfully to the South African economy. To this end we are committed to the transformation mandate that is embedded in the Forest Sector Transformation Broad-based Black Economic Empowerment (BBBEE) codes.

In respect of procurement we encourage suppliers when being measured by the BBBEE codes to:
• be an empowered supplier
• have at least a Level 4 status BBBEE certificate
• have at least 50% black ownership, and
• have at least 30% black women ownership.

For more information on the Sappi Supplier Portal and how to register, please click here.

In addition, our ReFibre model is an outsourced business model involving the collection and recycling of post-convertor and post-consumer waste, which is procured from homes, offices, wholesalers and retailers, as well as manufacturers, by an extensive network of independent agents across the country. Our outsourced baling suppliers have over 4,000 informal previously disadvantaged collectors linked to our network.

We are aligned with the National Code of Good Practice on preferential procurement and aim to achieve a Preferential Procurement score of 40 by the end of 2020. To achieve this, we are: • Working with our suppliers to improve new BBBEE compliance • Committing controllable procurement spend to qualifying black-owned enterprises • Focusing on creating and assisting black entrepreneurs, and • Incorporating black enterprises that we have developed into our supply chain
2015 Sappi Southern Africa Sustainability Report

We hold ourselves accountable to global sustainability best practice standards by transparently measuring, monitoring and communicating our economic, social and environmental performance.

Realising that we could not continue to do tomorrow what we did yesterday, over the last few years we have reviewed and refocused our business.

Our strategy of empowering our employees to reach their full potential extends to the communities around our operations.

Our holistic approach to the environment begins with responsible management and procurement of our woodfibre resources and continues through every aspect of the manufacturing cycle.

Our commitment to inclusive stakeholder engagement is based on regular, transparent communication underpinned by the principles of relevance, completeness and responsiveness.