We recognise the essential role that healthy ecosystems play in our business and in global sustainability, and we are dedicated to responsible stewardship, collaborative partnerships, and continuous improvement to support a nature-positive future.

Note: Climate and nature are inherently interdependent, and Sappi manages these issues through a holistic, integrated approach. Our governance structures and our processes for identifying, assessing, and managing risks and opportunities are aligned for both climate-related and nature-related matters. A summary of these shared governance and risk management systems is provided within the TNFD report, with further detailed disclosure available in the corresponding sections of our TCFD report.

TNFD disclosure

Nature is fundamental to Sappi's identity and long-term success. Our business is built on responsibly sourced, renewable woodfibre and the ecosystem services that support forest health, water security and climate stability. As we continue to strengthen our contribution to a regenerative and nature-positive world, we are aligning with the Taskforce on Nature-related Financial Disclosures (TNFD) framework to enhance the transparency, robustness and decision-usefulness of our reporting. Our aim is to provide stakeholders with clear insight into how nature-related dependencies, impacts, risks and opportunities inform our strategy, operations and value-creation model. We are progressing toward full TNFD-aligned disclosure within the next two years ensuring our stakeholders have clear insight into how we manage and respond to nature-related issues across our value chain.

Our commitment to nature-positive outcomes

We are committed to implementing nature-positive actions and continuously reducing our impacts on nature through strong water stewardship, sustainable forestry practices, biodiversity enhancement, and climate action to reduce GHG emissions, recognising the deeply interconnected nature of these systems. We mitigate and reduce the impacts of our manufacturing operations on nature through a disciplined, continuous improvement approach. Our air emissions, effluent discharges, and solid waste are governed by stringent legal requirements, operational permits, and licences, and we meet all applicable regulations in the regions where we operate. We seek to implement value-enhancing best available technologies wherever appropriate to further reduce our environmental footprint. We continuously monitor our outputs into the environment and provide transparent reporting to regulators and other stakeholders as required, reinforcing our commitment to responsible, sustainable operations.

Governance

Oversight of nature-related issues is integrated into Sappi's broader Sustainability Governance Framework, which ensures strong accountability and cross-functional coordination across the business. The board of directors provides strategic oversight of environmental and sustainability matters, supported by executive management and specialised teams in forestry, manufacturing, procurement, risk, finance and sustainability.

For more on our sustainability governance structure see our 2025 Sappi Group Sustainability Report www.sappi.com/2025GSDR.

Policies on environmental management, water, climate and responsible woodfibre sourcing, guide our business practices, while forest certification systems Forest Stewardship Council^™ (FSC^™ N003159), Programme for the endorsement of Forest Certification (PEFC/01-44-43), SFI^® and ISO 14001 provide external verification and reinforce our commitment to responsible environmental stewardship. Our governance ensures that nature considerations are embedded in our decision-making structures, capital allocation processes and long-term strategic planning.

Strategy

Nature is integral to who we are. Sappi's value proposition and Thrive strategy are underpinned by the sustainable and renewable qualities of woodfibre, which is dependent on healthy forests, resilient landscapes and the ecosystem services they provide. Recognising this, we integrate nature considerations into our organisational strategy and core business processes.

Our nature-related strategic priorities include:

• Ensuring long-term security of fibre supply through certified, responsibly managed forests and sourcing practices
• Conserving and restoring biodiversity across our forestry landholdings
• Strengthening water stewardship, particularly in water-stressed catchments where our operations are located
• Reducing GHG emissions and enhancing climate resilience across our forest and mill operations
• Continuously optimising resource efficiency and minimising emissions, effluent and waste through operational excellence and best available technologies
• Focus on circular manufacturing and product innovation.

These priorities align with our decarbonisation roadmap, circularity ambitions and broader sustainability commitments. They also reflect our recognition that climate, water, forests and biodiversity are deeply interconnected, requiring holistic management. As we move toward full TNFD adoption, we are looking for opportunities to further integrate nature-related considerations into operational planning, innovation, stakeholder engagement and long-term strategy development.

Nature-related risk and opportunity management

Sappi incorporates nature-related risks and opportunities into our enterprise risk management (ERM) system. This ensures that risks linked to nature degradation, biodiversity decline, water scarcity, climate-driven ecosystem shifts and evolving regulatory requirements are monitored, assessed and managed proactively.

Physical risks

• We periodically assess and monitor risks such as changes in forest productivity, wildfire incidence, invasive pests and pathogens, water scarcity and potential degradation of ecological assets that underpin our value chain
• We mitigate the impacts of our manufacturing operations on nature through a disciplined, continuous improvement approach, governed by stringent legal requirements, permits and licences for air emissions, effluent discharges and solid waste, supported by rigorous monitoring and transparent reporting to ensure we meet or exceed all applicable regional regulations.

Transition risks

• We monitor evolving regulatory, certification and market requirements related to sustainable forestry, emissions, biodiversity conservation and nature-positive reporting to assess the impact on Sappi's operations
• Growing customer preference for low-impact, renewable materials is also shaping market dynamics
• Stakeholder expectations regarding responsible sourcing and environmental performance are increasing. We manage these risks through rigorous forest certification, supplier engagement and continuous improvement across our operations.

Opportunities

Our dependence on renewable woodfibre positions us strongly to benefit from nature-positive opportunities.

These include:

• Expanding forest certification
• Supporting small growers through inclusive forestry programmes to build shared value
• Enhancing biodiversity value on our landholdings
• Advancing circular, biobased product innovations
• Increasing resource efficiency and beneficiating waste streams
• Advancing partnerships in water stewardship and conservation.

Nature-related considerations therefore play an important role in strengthening the resilience of our business model and creating long-term value.

Risk mitigation through forest certification

Forest certification systems are a key risk mitigator for Sappi in addressing deforestation, forest degradation and biodiversity impacts within our forestry operations and woodfibre supply chains. The certification schemes we work with – FSC^™, PEFC and SFI^® – are effective tools that promote sustainable production and responsible forest management. These systems establish stringent requirements for forest management, woodfibre sourcing, traceability and Chain of Custody tracking, and are underpinned by independent third-party auditing. Forest certification delivers positive impacts by strengthening forest management practices and applying rigorous due diligence in woodfibre supply chains to ensure that all woodfibre, including non-certified inputs, comes from controlled, non-controversial sources. Forest management practices required by certification, such as retaining deadwood, protecting wetlands, maintaining riparian buffer zones, maintaining diverse species composition and safeguarding key biotopes, help secure biodiversity within working forests. Healthy, robust, well-managed forests support community wellbeing, provide a haven for wildlife and diverse plant species, protect watersheds and play a critical role in the carbon sequestration cycle. The forest certification systems that Sappi works with all have requirements within their forest management standards, which focus on maintaining or enhancing biodiversity and managing or protecting high conservation and ecosystem values. Through the inclusion of these requirements in forest management practices, attention is placed on maintaining and conserving biodiversity while implementing other management objectives. The impact of forest certification standards also extends beyond certified forests. FSC^™, PEFC and SFI^® require the conservation of critical biodiversity values during all harvesting activities, including those on non-certified forestlands, through implementation of a due diligence system and risk-based mitigation measures, where necessary.

Metrics and targets

Regulatory compliance defines the baseline expectations for operational performance. We pursue the implementation of best available technologies where appropriate. Our monitoring systems generate data for internal decision-making and for required reporting to regulators and stakeholders. To support progress toward our nature-related targets, we report comprehensive metrics across air emissions, energy use, water and effluent, solid waste and forestry operations. Through our double materiality assessment process, we have identified key material nature-related issues that are central to our business and value chain, including sustainable land management and forestry practices, water stewardship, biodiversity protection, resource efficiency and reducing waste. These focus areas guide our actions and enable transparent monitoring of performance and continuous improvement in alignment with TNFD recommendations.

Sappi reports on a robust set of nature-related metrics across forestry, water, climate, and biodiversity. Key targets and performance are noted below:

Forestry and biodiversity

• Share of woodfibre sourced from certified sources
• Biodiversity improvement in our forestry landholding (SSA)
• Sustainable growth in our plantations (SSA).

Waterstewardship

• Specific water use (SSA).

Climate and energy

• GHG emissions (Scope 1, 2 and relevant Scope 3)
• Renewable and clean energy usage
• Energy intensity.

Waste

• Specific landfilled solid waste.

Conserving and restoring biodiversity in our forestry landholdings in South Africa

In South Africa where Sappi is one of the country's major landowners, we manage and lease 405,103 hectares of land. Of the total land managed and leased, approximately 264,275 hectares are planted with commercial plantation forestry, and the remaining 140,828 hectares consist of natural areas that are managed for biodiversity. Our plantations are dual certified against FSC^™ and PEFC standards.

Sappi invests in biodiversity and conservation in numerous ways, including:

• Maintaining 156 important conservation areas (ICAs) including seven (soon to be eight) nature reserves on our plantations
• Monitoring water quality: We use the aquatic biomonitoring South African Scoring System methodology to determine the composition of macroinvertebrate in rivers on our landholdings, as a measure of river health
• Developing and implementing long-term integrated weed management plans on all our plantations as invasive alien plants are widely considered as a major threat to biodiversity, human livelihoods and economic development
• Maintaining and enhancing soil function – a crucial component of sustainable forest management and biodiversity. The trees are deep rooted and long-lived, with little or no mechanical cultivation occurring. As a result, the structure of soils is maintained or improved, while topsoil nutrients are increased as nutrients and minerals are taken up deep within the soil profile
• Partnering with conservation agencies, including, Ezemvelo KZN Wildlife, Mpumalanga Tourism and Parks Agency and the South African National Biodiversity Institute (SANBI), and other plantation owners through Forestry South Africa, to mainstream biodiversity into the forestry sector.

Sappi's nine priority locations

As part of our commitment to the Taskforce on Nature-related Financial Disclosures (TNFD), we have initiated assessments using the LEAP framework, beginning with our own forestry landholdings. Through this process, we have identified nine priority locations – eight formally proclaimed nature reserves (including Karkloof Blue Butterfly Nature Reserve, expected to be gazetted in 2026) and one World Heritage Site. All sites are actively managed and form part of South Africa's Biodiversity Stewardship Programme, administered by SANBI through partnerships with landowners, conservation authorities, and NGOs to secure areas of high biodiversity value. Among these is the Makhonjwa Mountain World Heritage Site, internationally recognised for its globally significant geology and exceptional biodiversity. Sappi owns a portion of the site, which is protected under multiple national heritage and environmental laws and governed through a collaborative integrated management plan, with Sappi participating actively in its implementation. Our nature reserves are integrated within plantation landscapes and are managed through annual plans of operation, where site-specific impacts and mitigation measures are identified and addressed. The South African Protected Areas Act further provides the legal framework for the protection and management of nature reserves. Nature reserves are national assets declared on properties with high biodiversity importance and have long-term title deed restrictions, which mean that even if the land changes hands its status as a protected area remains in place. Our nature reserves form part of a network of natural habitats that are conserved by setting aside portions of our landholdings for conservation, ensuring that indigenous flora and fauna thrive alongside commercial forestry operations. Sustainable forest management is a key focus, with Sappi adhering to FSC^™ and PEFC standards, which promote responsible planting, harvesting, and replanting practices that help maintain ecosystem balance. We actively control invasive alien plant species to prevent them from outcompeting native species, preserving the integrity of local biodiversity. To protect aquatic ecosystems, we establish protective buffer zones around rivers, wetlands, and other water resources, reducing risks of habitat degradation. Fire management is another critical aspect, we perform controlled burns to prevent uncontrolled wildfires, which can severely damage grassland ecosystems. Furthermore, we invest in ongoing biodiversity monitoring and research, enabling the tracking of impacts and continuous refinement of conservation efforts to support the long-term health of habitats and ecosystems.

Building on this foundational work in our landholdings, our next focus is to undertake biodiversity risk assessments for our manufacturing operations.

¹ Geolocation coordinates provided are for the centre point of Sappi's plantation in which the reserve is located.
² The Karkloof Blue Butterfly Nature Reserve is expected to be gazetted in 2026.

See our 2025 Sappi Group Sustainability Report for more details on our soon to be gazetted eighth nature reserve – The Karkloof Blue Butterfly Nature Reserve, home of the endangered Karkloof blue butterfly www.sappi.com/2025GSDR.

We recognise that it is our legal and environmental responsibility to prevent the spread of commercial forestry species beyond our landholdings, as these species are classified as Alien and Invasive Species (AIS) under the National Environmental Management: Biodiversity Act, 2004. To meet our duty-of-care obligations and protect surrounding ecosystems, we have established a proactive approach to managing escapees on neighbouring properties. Our Environmental Department has developed an Escapee Management Policy that defines clear procedures for control and eradication, and we have introduced a GIS Escapee Tracking Tool that spatially records confirmed escapees across operations, including affected landowners, contact details and exact locations. This system enables effective management and quantitative monitoring of progress. By actively preventing and managing the spread of commercial species, we contribute to biodiversity conservation and reinforce responsible forestry practices.

Driving conservation through collaboration

Environmental and biodiversity conservation is most effective when organisations work together toward shared goals. Recognising that nature-related challenges are complex and require holistic solutions, we actively pursue partnerships that amplify impact beyond what any single entity can achieve alone. Sappi Forests proactively engages with several organisations to promote environmental stewardship and enhance biodiversity outcomes on our land. Through our partnership with Ezemvelo KZN Wildlife, we conduct joint monitoring and leverage specialist scientific expertise to inform intervention measures and best-practice approaches that safeguard biodiversity. This collaboration has confirmed the continued presence of threatened and endangered species of high-conservation significance within Sappi conservation areas and plantations, strengthening our ability to protect them. Specifically on our own landholdings we lead the Bulwer Medicinal Plant Programme in collaboration with plant users, Ezemvelo KZN Wildlife and Tim Neary, offering training and workshops to promote sustainable harvesting and self-propagation of high-value medicinal plants. The programme aims to reduce the exploitation of wild plant populations on Sappi land for traditional and commercial use, demonstrating the power of partnership in driving long-term conservation outcomes.

Our collaboration with WWF through the uMkhomazi Water Stewardship Project strengthens nature-positive outcomes across the catchment by restoring ecosystem health and improving water security. Working alongside local communities, government and conservation partners, the project focuses on clearing invasive alien vegetation, rehabilitating degraded wetlands and riparian zones, and promoting sustainable land-use practices that benefit people and biodiversity. These interventions help increase streamflow, restore native habitats, support livelihoods and build long-term catchment resilience – demonstrating how collaborative water stewardship can deliver meaningful environmental and social impact.

See our 2025 Sappi Group Sustainability Report for more details on this project in 2025 www.sappi.com/2025GSDR.

In 2025, Sappi's Forestry Environmental Department led a series of stakeholder engagement and awareness initiatives designed to promote environmental stewardship and support our sustainability objectives. Three key campaigns were hosted throughout the year: National Water Week (20 to 26 March), International Day of Biological Diversity (22 May), and Arbor Week (1 to 7 September). These initiatives aimed to deepen understanding of critical environmental themes, encourage sustainable practices among employees and community stakeholders, and align operational behaviour with national and global environmental priorities. Activities included educational workshops, field demonstrations, tree planting, river health assessments, and discussions on ecosystem services, showcasing practical actions that protect natural resources. In addition, we hosted members of the PEFC Group Scheme and Sappi Forestry colleagues for an immersive visit to the Sappi Saiccor Mill, offering insight into the full value chain from plantation to pulp production and reinforcing the importance of certification, shared responsibility, and collaboration in advancing responsible forestry and sustainable growth. These engagements strengthened relationships, enhanced awareness and supported our broader commitment to creating shared value.

Biodiversity enhancement in our forestry landholdings

In support of our commitment to protect and enhance nature within the landscapes in which we operate, we set a five-year Thrive target in 2020 to improve biodiversity in our conservation areas by 10%. This target supports our broader sustainability ambition and aligns with global expectations for nature-positive outcomes. In pursuing this goal, we have focused on evidence-based biodiversity management, ecological restoration and active conservation planning across our conservation landholdings. Progress is monitored through robust ecological surveys, biodiversity assessments and performance indicators that enable us to track ecosystem services.

Our biodiversity improvement project focused on enhancing the ecological condition of selected ICAs in KwaZulu-Natal and Mpumalanga by applying targeted management interventions and measuring impact, using the change in the condition-adjusted hectares (CAH) metric, which reflects not only the physical area of an ecosystem but also its ecological health and its capacity to deliver ecosystem services. Using a standardised baseline assessment across 150 ICAs and annual monitoring through rapid ecological scoring, 573 specific management interventions were implemented between 2021 and 2025 across 72 priority ICAs, including actions such as rotational burning, invasive alien plant control, erosion management, cattle and access control, and wetland and riverine protection. As a result, both KwaZulu-Natal and Mpumalanga ICAs far exceeded our target of a 10% improvement in biodiversity, achieving 21.6% and 29.4% improvements respectively, with an overall gain of 25.3% from baseline. Statistical analysis confirmed a significant improvement in ecosystem condition between 2020 and 2025 attributable to these interventions. While priority ICAs received targeted annual interventions, remaining areas continued to be managed under Sappi's standard conservation practices. Through the integration of the CAH metric, consistent monitoring and adaptive management, the project achieved measurable improvements in ecosystem functionality, contributing to long-term ecological resilience and enhanced biodiversity outcomes.

Looking ahead to 2030, we have expanded our biodiversity targets across our South African forestry landholdings and extended our focus to our manufacturing operations, where we have set a group-wide target to conduct biodiversity risk assessments for all sites.

For more information, see our 2030 targets www.sappi.com/sustainable-purpose.

Taking nature-positive action

Since 2014, Sappi's Rare, Threatened and Endangered Species Programme has taken a collaborative, nature-positive approach to conserving South Africa's most vulnerable indigenous plants through partnerships with leading research and conservation institutions including the Agricultural Research Council, SANBI and SANParks. Sappi uses its nursery propagation expertise to produce high-quality seedlings of rare and threatened species, enabling large-scale restoration efforts and providing cultivated alternatives that help relieve harvesting pressure on wild populations. The programme began with Warburgia salutaris (the Pepper-bark tree), which is highly valued in traditional medicine where its bark and leaves are commonly used to treat ailments such as colds, coughs, chest infections, fever and digestive disorders. Sappi has produced more than 140,000 cultivated specimens which have been planted across Kruger National Park operations and KwaZulu-Natal, with approximately 22,000 plants supplied to local communities each year to reduce pressure on wild populations. This success, underpinned by a 75% rooting rate achieved in our nurseries in 2025, contributed to the species being reclassified from endangered to vulnerable. The programme has since expanded to four additional threatened species, with ongoing propagation research and innovative techniques to preserve genetic diversity and support sustainable use. Working closely with traditional healers and conservation partners, the programme blends ecological science with cultural and economic needs, safeguarding biodiversity while supporting livelihoods, with plans to expand to additional species to further strengthen resilience and protect South Africa's natural heritage.

See our 2025 Sappi Group Sustainability Report for more details on our biodiversity actions in 2025 www.sappi.com/2025GSDR.