From Principles to Proof: Forward-looking Corporate Governance
Published On
7 May 2026
At Sappi, our Principles are the lens through which decisions are made
In the sustainability lexicon, ‘principles’ has long been considered the softest of pillars – abstract, declarative and difficult to measure. Increasingly, however, companies including Sappi are realising the foundational role of ‘principles’ in their approach. Principles are not just rhetoric; they are the operating logic through which decisions are made and through which a business can demonstrate its credibility and robust governance, especially in volatile times where trust levels across stakeholders are not forthcoming.1 In landscapes shaped by regulatory tightening and rising scrutiny, governance is no longer a background function. It is becoming the front line of credibility – which is where companies like Sappi can stand out.
From structure to system
Sappi offers a useful case study in this transition. Its sustainability framework – structured around ‘Principles, Planet, People and Prosperity’ – places governance at the centre, positioning principles as the connective ‘red thread’ linking ethics, risk and long-term value creation.
Oversight is embedded at board level, with dedicated committees integrating sustainability into audit, risk and strategic processes. The framework draws on South Africa’s King IV Code, widely recognised for its emphasis on ethical leadership and accountability. This means principles are embedded into incentives, oversight mechanisms and stakeholder engagement, rather than treated as standalone commitments.
Beyond the structure, what differentiates Sappi is how these systems are brought to life and how they perform under pressure.
Ethics as driver of resilience and competitive positioning
Sappi has developed an extensive compliance ecosystem – spanning codes of ethics, whistleblowing channels, anti-corruption policies and supplier standards – whereby ethics goes beyond compliance. It is a driver of resilience and competitive positioning. It is crucial that governance functions across complex supply chains and not only within the bounds of our organisational walls.
This is why we’ve strengthened our compliance systems, deepened supplier engagement, engaged more proactively with regulators and stakeholders on a regular basis, and built more robust cybersecurity capabilities. In 2025, for instance, we intensified our approach in managing Scope 3 emissions, ensuring a dedicated questionnaire and annual data collection process across our suppliers. We successfully obtained primary data covering 46% of Scope 3 category 1 (purchased goods and services) emissions, representing 46% of our raw material spend and we learnt that many suppliers currently track Scope 1 and 2 emissions but fewer had begun quantifying Scope 3 impacts. For us, value chain collaboration is the first step in tackling climate change. When it comes to responsible procurement, we focus on building supplier capacity, improving data quality and sharing best practices to create a more transparent, science-based foundation for emission reduction. You can read more about our initiatives in our latest Group Sustainability Report.
At Sappi, our governance frameworks - including board-level committees focused on sustainability, ethics and risk – are designed not just to oversee risks; they are well positioned to anticipate them.
Tracy Wessels, Group Head, Investor Relations and Sustainability
Procurement is where principles meet supply chain realities
Sappi’s Supplier Code of Conduct sets expectations across ethics, labour practices and environmental performance, supported by third-party assessments such as EcoVadis and certification systems including the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification.
These industry-wide mechanisms provide a degree of standardisation and comparability. They are also increasingly expected by investors and customers as a baseline for responsible sourcing.
In addition, the regulatory environment is evolving. Frameworks such as the EU Deforestation Regulation (EUDR) is an example of what’s potentially expected in terms of administrative accountability and granular origin-level verification.
The emerging challenge is not the absence of governance structures, but whether their underlying assurance mechanisms are sufficient for the next phase of regulatory scrutiny. Certification systems, third-party assessments, and supplier self-declarations provide system-level confidence, but regulations such as EUDR increasingly require transaction-level evidence – including geolocation data and traceability to origin.
This creates a potential gap between how compliance is currently demonstrated and how it may need to be proven in practice, particularly in multi-tier supply chains where visibility is inherently uneven.
From alignment to evidence
What distinguishes a company’s governance today is not the presence of frameworks, but the ability to evidence outcomes under scrutiny. Sappi’s approach – combining board-level oversight, certification, third-party assessments and supplier engagement – reflects a model aligned with current best practice.
Of course, ‘best practice’ is always moving, which is why Sappi’s proactive collaboration across its stakeholders is key to ensuring that its governance approach stays ahead of the game.
Investors continue to seek ever more decision-useful data. Regulators are requiring greater traceability. Civil society is increasingly sceptical of claims that cannot be independently verified.
Sappi recognises this and has ensured that its principles are not only about intent; they are also about demonstrability and transparency – how we make procurement decisions, manage supplier relationships and respond when systems are tested. We know that in today’s sustainability landscape, governance is not just about what we commit to; it’s what we can prove on paper. Get in touch with us if you have questions.
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