In 2025, Sappi’s Kirkniemi Mill transformed its wood supply operations by implementing a new procurement strategy and switching to a multi-supplier model to enhance reliability, traceability, and sustainability. A dedicated wood procurement organisation was established to manage the annual delivery of roughly half a million cubic metres of spruce pulpwood and chips: key raw materials for the mill’s premium paper products. Beyond supplying wood for paper production, the procurement organisation also provides biomass such as bark, sawdust, and wood chips to the mill’s multi-fuel boiler – integral to the success of Kirkniemi’s transition away from coal in 2023, with energy now fully derived from renewable, wood-based biofuels. The mill’s stringent wood quality requirements demand just-in-time deliveries, particularly during summer, when harvested spruce must be delivered within two weeks. Close coordination with around 20 contracted suppliers, including local forest management associations and sawmills, ensures both efficiency and quality.

Kirkniemi Mill maintains PEFC and FSC™ chain of custody certifications, with approximately 90% of its woodfibre certified. Most wood originates within 150 km of the mill, supporting local economies and reducing transport emissions. For longer distances, efficient round-trip transportation arrangements and rail are used.

All Kirkniemi Mill’s wood suppliers are requested to submit an annual comprehensive supplier self-declaration on the origin and compliance of wood. In the case of non-FSC™ CoC certified suppliers, Kirkniemi Mill carries out a two-stage audit and risk-assessment to ensure that the wood meets the controlled-wood requirements related to the origin and supply chain integrity. A new IT infrastructure and the implementation of Forest Hub, a digital wood-supply platform used in Finland, now provide full procurement transparency and European Union Deforestation Regulation (EUDR)-ready traceability. Together, these developments strengthen Kirkniemi Mill’s supply resilience and reinforce Sappi’s commitment to responsible, certified, and locally sourced renewable fibre.

“Local wood makes sense not only environmentally, but socially.”

– Jussi Joensuu,
Head of Wood Procurement, Sappi Kirkniemi Mill

Once again, Sappi North America employees partnered with the Charles River Watershed Association (CRWA) for the annual Invasive Water Chestnut Harvest in Needham, Massachusetts; an initiative focused on protecting one of New England’s most vital waterways.

During the event, Sappi volunteers joined community members to remove 72 baskets of invasive European water chestnuts from the Charles River’s lakes district.

This species, if left unchecked, can form dense mats on the water’s surface that block sunlight, reduce oxygen levels, and disrupt the balance of native aquatic plants and wildlife. The invasive growth also limits recreational use of the river, diminishing its ecological and community value.

Through this collaborative, hands-on restoration effort, Sappi employees helped to significantly improve water quality and habitat conditions in just a few hours. The project exemplifies Sappi’s commitment to biodiversity conservation and community engagement – demonstrating how volunteer action can make a tangible difference in the health of local ecosystems.

In June 2025, the Sappi Gratkorn Mill celebrated 100 years of clean energy generated by its onsite hydropower plant which was commissioned in 1925, long before sustainability became a global priority.

Built in response to post-World War I shifts and the need for reliable, self-sufficient power, the plant replaced ageing turbines and secured energy independence for the mill. Its inauguration was attended by Viktor Kaplan, inventor of the Kaplan turbine, with two units installed at 2.57 MW each; among the most powerful of their kind at the time.

Today, the plant generates around 40,000 MWh of renewable electricity annually (enough to power around 10,000 households) and continues to supply 5% to 7% of the mill’s energy needs while avoiding approximately 20,000 tons of fossil CO₂ emissions every year. Over the decades, it has undergone major refurbishments and several modernisations to improve efficiency and environmental performance, including upgrades such as water-based lubrication and enhanced corrosion protection.

This centennial marks more than a historical achievement – it reflects Sappi’s longstanding commitment to responsible investment, clean energy innovation, and the enduring value of legacy infrastructure in shaping a sustainable future.

Wetlands play important ecological and social roles in our landscape. They provide critical ecosystem services upon which our business is built. They protect and regulate water: acting like sponges, holding back water during floods and releasing it during dry periods. By regulating water flows during floods, wetlands reduce flood damage and help prevent soil erosion.

• Wetlands recharge ground water sources and remove pollutants from the water. Being natural filters, they help to purify water by trapping these pollutants, which include sediment, and heavy metals
• Support a diverse array of plant and animal life, including endemic and threatened species such as the long-toed tree frog and the grey crowned crane.

Historically, the absence of robust regulations led to widespread planting near water sources across the forestry sector. Over the past three decades, Sappi has actively addressed this legacy through a rigorous and proactive river and wetland mapping programme, driving meaningful restoration and compliance. Sappi has mapped hundreds of hectares of wetlands that had previously been planted and rightfully restored them to wetlands.

The most recent area that was restored to wetland from plantation was an old pine compartment in Hodgsons, near Greytown, KwaZulu-Natal, parts of which had been standing for approximately 20 years. Sappi foresters spotted signs of wetness in the compartment and aided by the Sappi Forests Environmental Department, delineated the wetland. By the end of the delineation, over 20 hectares of plantation was converted back to wetland in order to ensure compliance with the National Water Act which requires that commercial plantations are not planted close to rivers and wetlands.

Rehabilitation is well underway at Hodgsons. Following delineation of the wetland, extensive rehabilitation work has started, including moving of roads, removal of harvesting debris and the removal of invasive alien plants. Removal of invasive alien plants in that wetland system is critical as it improves biodiversity, improves water quality and quantity, and creates employment for the local economy. In 2025, removal of invasive alien plants at the delineated wetland system has already generated 176 person-days of employment.

Sappi’s global vision of a circular economy – where every part of the tree is used to its fullest potential – continues to drive innovation at Ngodwana Mill. This ambition came to life through the recent biomass combustion enhancement project, a smart engineering solution that turned a longstanding waste challenge into a renewable-energy success story.

The issue emerged after the commissioning of the biomass power boiler, when the mill lost complete access to its biomass feed conveyor system. This created a bottleneck: sawdust from woodyard operations – an energy-rich byproduct – could no longer be reliably delivered to the boiler. Consequently, more than 30,000 wet tons of biomass were being sent to landfill each year, representing both an environmental burden and a lost-energy opportunity.

In response, the project team engineered a direct-feed pneumatic system to deliver sawdust from the woodyard directly to the power boiler, bypassing the shared conveyor entirely. Leveraging existing infrastructure, the solution included a refurbished blower system, a revived control network, and new piping to complete the link. With a modest capital investment of approximately R2 million, the results have been transformative.

Since commissioning, the mill has reduced sawdust landfilling by more than 80%, while generating over 11,700 GJ of renewable energy each month. This sawdust now displaces an estimated 517 tons of coal per month – avoiding approximately 50 t CO₂e in emissions and saving more than R500,000 per month in combined fuel and disposal costs. The project is on track to achieve payback in under four months; proof that sustainable solutions can deliver strong financial returns.

Operationally, the benefits go further. The increased biomass firing rate has enhanced combustion stability and improved the performance of the flue gas desulphurisation (FGD) plant. This has led to lower limestone consumption and a reduced carbon footprint from the boiler system – advancing both energy efficiency and environmental performance.

The initiative supports several United Nations Sustainable Development Goals:

• SDG 7 – Affordable and clean energy: through expanded use of renewables
• SDG 12 – Responsible consumption and production: by maximising resource efficiency
• SDG 13 – Climate action: through measurable reductions in greenhouse gas emissions.

Crucially, this project exemplifies Sappi’s longstanding commitment to using 100% of the tree. What was once a waste stream is now a reliable source of clean energy, driving decarbonisation and reducing landfill volumes. It aligns directly with our science-based targets and long-term ambition to substitute fossil fuels with renewable alternatives wherever technically viable.

The beauty of this project lies in its simplicity. We didn’t build something new – we reimagined what we already had and gave it new purpose. It is innovation through resourcefulness. The biomass combustion enhancement project demonstrates how practical engineering, guided by a clear sustainability vision, can unlock real value.