2020 GROUP SUSTAINABILITY REPORT



Shareholders, bondholders and banks

 

Self-assessment of quality of relationships:

Good to excellent

Why we engage

Our aim is to provide investors (shareholders and bondholders) and analysts with transparent, timely, relevant communication that provides them with an understanding of our industry, sets out the manner in which we hope to achieve our growth ambitions and facilitates informed decisions.


Shared priorities   Our response

Understanding Sappi’s
strategy

Return on investment

Transparent information
about risks, opportunities
and environmental, social
and governance (ESG)
performance, in particular
the impact of climate
change on strategic and
financial decisions

Ability to generate sufficient
cash flows to fund our
business and service our debt

 
  • Our investor relations (IR) department engages with shareholders and analysts on an ongoing basis.
  • Our Chairman and CEO also engage with shareholders on relevant issues. We conduct ad hoc mill visits and road shows, and issue announcements through the Johannesburg Stock Exchange (JSE) – Stock Exchange News Services (SENS), in the press and on our website (see www.sappi.com/SENS). We publish our Annual Integrated Report (see www.sappi.com/annual-reports) and sustainability reports (see www.sappi.com/sustainability) on the group website. Shareholders can attend and participate in the Annual General Meeting (AGM) as well as the four quarterly financial results briefings.
  • We engage with various ratings agencies, particularly in terms of ESG performance. Recognising the importance of climate change in a financial context, we are incorporating the recommendations of the TCFD into our decision-making processes (discussed further under Helping to mitigate climate change).
  • We participate in the Carbon Disclosure and Forest Footprint Disclosure projects every year, making our submissions publicly available.
  • Our Chief Financial Officer and Head of Treasury engage with bondholders, banks and rating agencies continually on the performance of the company. A key point of discussion in FY2020 was the suspension of our credit facility financial covenants from June 2020 to March 2021 (which has been subsequently extended to September 2021).
 
 
 

Opportunities for value creation

  • Understanding of and commitment to our strategic direction.
  • Enhanced reputation.
  • Greater investment confidence.
  • Broader licence to invest.
 

Challenges for value creation

  • Slow post-Covid economic recovery.
  • Uncertainty about regulatory developments, for example: carbon tax.