Sappi Southern Africa
Issue 1 | Vol 20
Driven by purpose Focused on delivery
Vol 20 Issue 1
Despite the ups and downs of the past year, a lot of good has happened in the Sappi Southern African region. We have continued
to show a strong
the South African
economy, we have
been focused on
adding value in the
work we do, and
as a business we
are getting more
involved in the
communities where we operate.
In my Q&A on page 5, you can read all about the challenges of the past year, the business strengths that are counting in our favour, what our goals are for 2020 and how you can contribute to help us achieve them.
Through December and January I will be conducting CEO roadshows at some of our operations during December, to talk to staff and to answer questions about the business. I trust you will find these sessions enlightening.
I would like to thank all our employees and contractors for the hard work and dedication during the past year.
I am looking forward to the year ahead. Let’s tackle the challenges together and pursue the opportunities with passion and vigour.
7 8-11 12-13 14-15
News from the group
Matane Mill acquisition approved; New CEO for Sappi North America; Innovation in recyclable packaging; New Spectro has superior quality.
Check it out online
See what is currently featured on Sappi’s social media pages.
Our sustainability journey incorporates UN goals.
EIT Challenge winners and finalists help drive innovation.
Part two of POPIA – a law to protect personal information.
Don’t let your fingers get you into trouble.
The past year was a difficult one
and 2020 will continue in the same
vein. But it will be both challenging
and rewarding if we stay focused
on our strategy, steadfast on
our journey to adapt, grow and
diversify – but most importantly, if we do this together.
You’re an important part of the Sappi team! Let’s make the most of the year ahead.
The rationale behind the 2020 Sappi calendar.
Q4 and full year results; Treasury partners with RMB; Alex Thiel answers important Sappi questions; Sappi at the SA Investment Conference.
Stanger Mill celebrates 40 years.
Focus on safety
Safety Awards winners talk about their passion for safety.
Uri Levine: Learnings from a serial entrepreneur.
Sefate has come to an end; You can become a Sappi shareholder too.
Awards and recognition
Exports and investment excellence in KZN; RIS recognises IT excellence; Student Gold Pack Awards; Khulisa video wins a Silver Quill.
Paper merchant applauds Magno Plus.
Vulindlela’s pipe bridge method a first in SA.
Cover printed on Sappi GalerieArt
22 Silk 200g/m and text on 115g/m .
21 22-23 24-25 26-27 28
You are valued at Sappi
2019 was a tough year, but also one where we learnt the value and reaped the benefits of collaboration, forming mutually beneficial partnerships with stakeholders and embracing the One Sappi approach in all we do.
This is reflected across different spheres of the business: winning awards and being recognised for our contribution to the economy, the strides made in terms of shared value in our communities, high level commitments to our sustainability journey, investments in our learning and development portfolio and the buy-in from employees to value safety and make our workplace (and homes) safer.
Some examples of the above is featured in this edition.
CEO, Sappi Southern Africa
Mpho Lethoko General Manager Communications, Sappi Southern Africa
A purposeful 2020 Sappi calendar
Our world is challenged by many things: climate change, human migration, technological advancements, unemployment, exclusion, trade disputes, conflicts between cultural and belief systems, the need to consume more responsibly and to promote low carbon solutions.
In this reality, success depends on having a positive impact on society by identifying the right things to do, and then doing them in the right way.
Our 2020 Sappi calendar is aptly themed: Driven by purpose, focused on delivery.
As a company, we are embracing this challenge by meeting the needs of society with woodfibre-based products that help to achieve multiple objectives:
While growing the timber, we protect biodiversity
By using responsibly grown and certified fibre, we ensure a sustainable supply
By working with local communities and small growers, we help broaden participation and stimulate local economies
By investing in new technology, we reduce our footprint.
The 2020 calendar features images and print techniques that enhance the visual impact and reminds us of the importance of not only having a purpose, but also of delivering on our plans and commitments.
Enjoy your copy of the 2020 Sappi calendar and use it to plan a purpose-driven year!
Vol 20 Issue 1
The photo on the cover of this edition is one of the beautiful images that appear in our 2020 Sappi calendar.
Vol 20 Issue 1
Tough Q4, but Sappi well positioned for future growth
“It was a difficult quarter,” said Sappi CEO Steve Binnie as he commented
on the company’s fourth quarter and full year results. “Market conditions for many of our products were challenging. However, great work has been done in terms of managing working capital and generating cash (US$173 million in Q4).
“Our strategy to diversify our product portfolio into higher margin segments also continues to deliver positive results.”
Steve cited a number of factors that are counting in our favour: worldclass assets that are cost competitive and efficient; a rapidly expanding packaging business, with great research and development opportunities; and the fact that we’re
still one of the lowest cost producers of dissolving wood pulp, with long term commitments from key customers.
He pointed out that markets are cyclable and that they will recover. “2019 was
tough, and the uncertainty that markets are currently facing means that 2020 will be challenging as well. But we are well positioned to take advantage of the upswing
when it comes, as well as of future growth opportunities in the industry.”
View the full results.
Treasury partners with RMB to drive payment efficiency
By Koosh Panday (Global SAP Project Manager)
Sappi Southern Africa (SSA) makes significant foreign payments in 10 different currencies to more than 240 vendors across four categories including imports, freight payments, technical and professional services.
Managing these payments requires high attention to detail, as well as compliance with the South African Reserve Bank Exchange Controls.
Our SSA Treasury department has partnered with the best foreign exchange provider in South Africa (2017 to 2019) – house bank Rand Merchant Bank (RMB)
– to drive efficiency in the accounts payable financial management process.
The team at Head Office and the Sappi Global Business Services’ (GBS) Accounts Payable team based in Umhlanga, need to collaborate seamlessly to ensure that there is no foreign exchange rate risk and that payments are made on time, thereby avoiding unnecessary costs.
A project was initiated to link Sappi’s SAP Accounts Payable system with RMB to facilitate payments of foreign currencies
The automated integration will bring efficiency in the accounts payable chain, aid in identifying unhedged exposures and reduce bank charges, yielding a win
for Sappi and a win for the bank. This highlights a great synergy that contributes towards Sappi’s overall vision.
Our colleagues responsible for executing the project to transition to RMB Foreign Exchange, are (from left): Jaysalen Govender, Hemantha Naidoo, Serena McGinn, Mandisa Mhlongo, Zelda Ricketts, Natalie Stevens and Koosh Panday (Project Manager).
Vol 20 Issue 1
The past year at a glance
and looking ahead
Q&A with Alex Thiel (CEO Sappi Southern Africa)
Q How did the Sappi Southern African business perform in 2019?
A The year started very strong with excellent demand for all our products. We achieved better than budget pricing for nearly all our products, with dissolving pulp pricing heading towards US$1,000/ton. However, the latter part of the
year saw a slowdown in demand due to global trade uncertainties, excess pulp inventories, a very weak South African economy and SA agricultural crops being weaker than expected.
We did not quite achieve production targets in either pulp or paper, but our operations managed to break 56 production records during the year: at Saiccor Mill – six, Ngodwana – 12, Tugela – 16; Stanger – 21 and Lomati – one. For the first time ever, we also achieved a one-million-ton production milestone for dissolving pulp.
We sold 1.693 million tons of product; around 95% of our target. However, good cost savings, better prices and a weaker-than- planned ZAR/US$ exchange rate helped us to achieve our full year EBITDA budget.
Q What are we doing right as a business and as employees?
A We are producing products that add value for our customers from renewable resources in a responsible manner. In most cases, our products are becoming the sustainable alternative to a fossil fuel-based product. I
also think that everyone is taking a more commercial approach and considering whether what they are working at, is adding value. This is very important, since we will only remain sustainable if we eliminate all waste (time, money, raw materials, etc) from our business.
We have made excellent progress with getting more involved in the communities in which we operate. The Integrated Community Forums at our operations help to address stakeholder concerns and create opportunities for non-Sappi employees to improve their lives and that of their families.
Through various initiatives, we have been able to demonstrate
to government that we are an important contributor to the SA economy. By growing our business we are creating jobs, directly or indirectly earning foreign revenue, contributing to conservation and providing unemployed people with valuable skills.
There is also a much greater awareness about safety. Although this has not yet translated into significantly fewer injuries, I do believe that our safety culture is steadily improving.
Q What are our goals for 2020?
A As the world changes there is less demand for some of our products, or they are becoming less competitive. So, it is critical that we bring new/ improved products and services to the market.
This almost always starts with a good understanding of our customers’ needs and looking at how our capabilities can be used to better address those needs.
Managing and lowering our costs will also be critical - from lowering raw material costs, to buying less electricity from Eskom and reducing our travel/ administration costs.
How can staff contribute to achieving
A Ask yourself how you can add more
value. Do I need
to travel for two days or could a day trip
suffice? Could I rather have a Skype call? Do I need
to print all those pages, or can I do it electronically? Have I been ‘sitting on’
an idea for a new Sappi product or a way for one of our operations to reduce costs? Act on it.
Together, by doing
the big and small
things better and
we can all make a difference to help improve the profits and future sustainability of our company.
Vol 20 Issue 1
Staying committed to
investment in South Africa
With our attendance of the South Africa Investment Conference held at the Sandton Convention Centre in November 2019, Sappi Southern Africa
has once again shown its continuing support for investment in SA.
(Photo credit: @PresidencyZA/TW)
The second South Africa Investment Conference follows on 2018’s inaugural event, which received ZAR300 billion of investment commitments from domestic and international firms, when President Cyril Ramaphosa cast the bold vision for South Africa to become the destination of choice for investments.
Sappi’s global business is based on the concept of shared value, generating partnerships that mutually benefit our stakeholders and ensuring that the economies, regions and environments in which we operate, benefit from our presence.
Saiccor hosts VIPs ahead of conference
From left: Russel Curtis (HOD, Trade and investment KZN), Mxolisi Kaunda, person not known, Nomusa Dube-Ncube, Krish Naidu (General Manager Saiccor Mill) and Mpho Lethoko (General Manager Communication, Sappi Southern Africa).
In preparation for the SA Investment Conference, and in keeping with our theme of ‘Accelerating economic growth by building partnerships’, Sappi hosted the MEC of Economic Development, Tourism and Environmental Affairs, Nomusa Dube-Ncube, and Mayor of eThekwini Municipality, Councillor Mxolisi Kaunda, on a tour of Sappi Saiccor
Mill. The guests were impressed with Sappi’s contribution to economic growth and job creation in the province.
This commitment to continue with investment
in the SSA region, will secure Sappi’s future by increasing our global cost competitiveness and significantly reducing our environmental footprint – Sappi CEO Steve Binnie
Shaking hands on stage are Steve Binnie (CEO, Sappi Limited) and President Cyril Ramaphosa.
Sappi’s pledge at the 2019 SA Investment Conference:
Commit a further ZAR14 billion at our plants over the next five years.
The amount is based on planned and
committed maintenance Capex
spend for this period, as well as upgrades and improvements that are planned for new and ongoing performance and environmental improvement projects.
These plans and investments are subject to the performance of the business and market conditions.
Watch Sappi CEO Steve Binnie speak at the South Africa Investment Conference
Vol 20 Issue 1
Employees in a jubilant mood at Stanger Mill’s 40-year anniversary.
Stanger Mill celebrates four decades
To the beat of energetic drumming and loud applause, Sappi Stanger Mill employees celebrated the mill’s 40-year anniversary last year. The mill was acquired in 1979 from the Reed group.
Stanger Mill is unique in that it uses bagasse, from the neighbouring Gledhow Sugar Company, as its basic raw material in the manufacture of Sappi Typek office paper and tissue wadding.
“This operation continues to perform and exceed expectations,” commented CEO of Sappi Southern Africa, Alex Thiel at the event. “The mill has achieved several production records in the past year. Staff also contributed to a 98% participation rate in the 2019 Employee Engagement Survey, which was the best score of all our SSA mills.
“It is this kind of dedication and hard work displayed at Stanger that helps drive Sappi to greater heights.”
Stanger Mill is home to Sappi Typek. Cutting the birthday cake is (from left): Alex Thiel (CEO Sappi Southern Africa), Steve Binnie (CEO Sappi Limited), Christo Willemse (General Manager Stanger Mill) and Pat McGrady (Vice President Manufacturing and Technical).
Vol 20 Issue 1
Focus on safety
Inaugural SSA Safety Awards
Winners share their commitment to safety
The first Sappi Southern Africa Safety Awards held at Saiccor Mill last year, provided proof that a safety-first attitude is
not based on position, the nature of one’s job or even years of experience. We all have something to contribute to a safer work environment.
I’m proud of how so many of our employees have risen to the challenge; people who have gone above and beyond the call of duty to ensure that Sappi’s safety message reverberates and is embraced throughout the company. – Pat McGrady, VP Manufacturing and Technical, Sappi Southern Africa
Our 2019 SSA Safety Award winners joined on stage by Sappi management.
Focus on safety
Vol 20 Issue 1
Meet our category winners and find out what drives their commitment:
Safety Officer – Saiccor Mill
Years at Sappi: 1
Trainee Accountant – Stanger Mill
Years at Sappi: 14
Award: Safety Representative (mill)
Award: Safety Champion of the Year
Trueman Mtshali (third left), our 2019 Safety Champion of the Year. He is joined by Pat McGrady (VP Manufacturing and Technical), Alex Thiel (CEO, Sappi Southern Africa) and Steve Binnie (CEO, Sappi Limited).
Motto: Tomorrow is the reward for working safely today.
Show care and respect
When you are inspired by what you do – in my case, to create
a safe environment for all – you simply go the extra mile without noticing. I’ve learnt that the best way to engage with people is through humbleness and respect. When you respect them, they will respect you. When you guard their safety, they are more likely to do the same for you.
Scientist – Technology Centre
Years at Sappi: 5
Award: Safety Representative (office)
Saloshni Govender with Alex Thiel and Pat McGrady.
Motto: Check what you’re doing, then check again.
In a big way, Sappi’s Life Saving Rule 8 governs my approach to safety: constantly reassessing your surroundings. It reminds me to stay focused on the task at hand – even if it’s for the umpteenth time – and to be aware of and try to eliminate all possible risks.
Hermien van der Merwe,
Process Engineer – Technical
Years at Sappi: 5
Award: Safety Conscious Employee (mill)
Hermien van der Merwe are congratulated by Gary Bowles (Group Head Technology) and Alex Thiel.
Motto: Safety equals life.
Safety means caring
When I was at university, we had a seminar on the Occupational Health and Safety Act. What stood out was the photos of injuries and fatalities. It was disturbing, but it left a serious impression
on me. I decided that day to do my best to prevent myself or a colleague from getting injured or killed. The loss and suffering associated with accidents are immeasurable. For me, to promote safety is to care about myself, my co-workers and the company.
Zininzi Khatshane with Alex Thiel and Pat McGrady.
Motto: My family needs me; your family needs you. Let’s protect one another by working safely.
It’s a lifestyle
With the rollout of our Life Saving Rules, I have realised that these rules do not only apply to work, but also to our daily activities at home, such as reaching the top cupboard (Rule 2), driving to work (Rule 4), using gloves when baking (Rule 6), disconnecting the power plug (Rule 1) and correct disposal of household waste (Rule 7). Understanding that safety is a lifestyle enables me to be safety conscious wherever I am.
Vol 20 Issue 1
Focus on safety
Maintenance – Head Office
Years at Sappi: 9
Award: Safety Conscious Employee (office)
SGB Site Manager – Tugela Mill
Years at Sappi: 28
Award: Safety Conscious Service Provider
Solly Chauke (middle) joined by Gary Bowles and Alex Thiel.
Motto: Your safety, my concern.
Safety saves lives
I love the people around me and love myself, and this drives my commitment to safety. This compels me to be committed to safety. If we all take the necessary precautions and heed the safety rules, we will see a reduction in injuries.
Administration Manager – Technology Centre
Years at Sappi: 20
Award: Safety Conscious Team Leader
Wellington Botile flanked by Glen Pearce (CFO, Sappi Limited) and Steve Binnie.
Motto: Be your brother’s keeper.
This year, I learned that if we all work together towards a common goal, we can create a healthy, safe, environmentally friendly and quality-driven workplace, thereby preventing injuries and accidents. It happens one action at a time, hour after hour, day after day. Consistency is key.
Award: Safest Service Provider
Michelle Allaway with Pat McGrady and Nelson Sefara (Technology Centre Manager).
Motto: There are no shortcuts. The safe way is the best way, even if it’s the long way.
Communication is the biggest safety tool
Workplace safety is not something I can achieve on my own. Communication is the biggest tool in uplifting safety standards.
It doesn’t matter how many procedures you write or how many systems you put in place, if you don’t communicate and manage the change, nothing will improve.
James Ngcamu and Ruan Lotter from contractor MDI joined by Terry Stanger and Pramy Moodley.
Motto: Safety is the engine. You are the key that starts the engine.
People comes first
What drives MDI’s commitment to safety is that nothing is more important than getting our employees home safely to their
families and loved ones at the end of each working day. What we appreciate about Sappi is that it applies a great system of guidance and support, instead of taking the ‘policeman’ approach.
Winners say: “This is why we’re committed to safety”
Award: BBS Observer
Focus on safety
Vol 20 Issue 1
Process Controller – Tugela Mill
Years at Sappi: 3
Baryn Hulley, Chargehand Operator – Saiccor Mill
Award: Innovation Award (for the Sappi Safety Movie)
I was changed in a moment. A man, father and husband almost lost his life because of negligence on my part a few years ago. It was a very hard lesson, but it also motivated me to become more involved in safety. I now understand how one
move, which takes only a few seconds, can have disastrous consequences.
Never assume something is safe. Stop, think, then act.
Nishaal Silochan joined by Terry Stanger (MD Sappi Forests) and Pramy Moodley (Chief Financial Officer, SSA).
Motto: Safety is a choice that only you can make.
Never assume anything
I’ve learnt an important lesson this year: to perform a proper risk assessment before doing any task. Never assume that you or your surroundings are safe. During the annual mill shut, the ash inside the penthouse of a coal fired boiler had to be cleaned. The cleaner stepped into the ash without realising that it was smouldering hot under the top layer. He sustained third degree burns. This incident served as a wakeup call for me. Always follow procedures. Do the necessary checks. Take nothing for granted.
Joined by SSA management members Deon van Aarde (left) and Alex Thiel (right) are the Sappi Safety Movie participants, who each received an Innovation Award. They are (from left): Brighton Hlatshwayo, Baryn Hulley, Joshua Kistan, Siphelele Mdakane, Mervin Liversage, André Nel and Devan Ramsamy.
Vol 20 Issue 1
When problems and failures yield incredible success
Secrets from a serial entrepreneur
Uri Levine, founder of Waze (and other value-adding apps)
Love the problem. Fail often but fail fast. Celebrate difficulties. View perfection as the enemy. Ask the right questions.
These were some of the gems shared by entrepreneur and disruptor Uri Levine when he visited Sappi Head Office during the Q4 staff results presentation at the end of 2019.
Uri spoke to Sappi staff about the lessons learnt through multiple failures and successes in order to disrupt inefficient markets/services and start up new applications to improve the way we live.
As a kick-off, Uri congratulated Sappi on what he called an “amazing” feat. “Very few companies are able to embrace change and reinvent themselves. Most companies fail. Sappi has made that shift, and that is truly impressive.”
His own success story with the traffic and navigation app Waze (which was acquired by Google for more than US$1 billion in 2013), started with a problem – one that many people could relate to. He turned it into a passion, and ultimately a solution.
“I hate traffic jams, so it got me thinking: How can I change this?”
The result was a roller-coaster journey that taught him how to be smart and successful in business; and to apply these principles to do life better too.
Uri’s advice and approach aligns well with Sappi’s own take on business: embracing change and viewing challenges as opportunities to adapt, grow and expand, whilst staying focused on adding value.
Vol 20 Issue 1
Some of the poignant lessons learnt:
#1 Love the problem
“You need to fall in love with a problem if you want to solve it,” says Uri.
Strong emotional engagement is the first requirement to finding a solution. Uri’s disdain of being stuck in traffic sparked a desire to solve it.
“Love or hate leads to dreams and passion,” said Uri. The road to success firstly requires passion.
#2 Failure is good
Starting a new venture is like dating someone you have fallen in love with,” he explained. It takes time. The feedback from others may not be positive or what you expect. The initial enthusiasm might wear off and some reality checks will become necessary along the way.
Successful journeys take long and they are often marked by failure upon failure.
“Most importantly, the faster you fail, the quicker you can learn and grow and increase your likelihood of becoming successful. If you are afraid to fail, you have already failed,” says Uri.
Rather view failures as experiments and use them to improve a product or service until it matches the market need.
#3 Focus on adding value Pinpoint the problem and the solution carefully. Is your solution something that applies and adds value to a broader audience?
Who are your users and what is their problem? It’s important to figure out the Product Market Fit (PMF).
Well-known brands such as Google and WhatsApp understand this principle. They don’t change their value proposition (we still engage with these services in the same way as when they first started up); but they have made improvements to their core offering along the way.
#4 Sometimes ‘good enough’ is
better than ‘perfect’
The aim is to get to a level of ‘good enough’. Use the feedback from customers to make the necessary improvements. In a fast-changing world where one needs to outsmart the competition, perfection is the enemy.
“When you wait for something to be perfect before carrying it out, you have waited too long,” says Uri.
He also adds that ‘free’ (or cost competitive) and ‘good enough’ wins the market every time.
#5 Ask the right questions “What will make me/this company irrelevant in five years? What do I need to do to still be relevant in five years’ time?”
“What are my customers’ needs and wants. How can I add more value to them?”
“Which of our assets can be applied to grow a market even bigger than our core market?”
These are some of the questions that companies, and individuals should ask themselves every now and again.
#6 Disruption is necessary
The buzz term ‘disruption’ does not only apply to technology. It means changing the way
we do things. To ‘disrupt’ is to start with the assumption: “Everything I’m doing now, is wrong.”
Uri shared some real-life examples such as the Kodak story. At the time, this photographic film company was one
of the top 10 companies in the world. They explored the digital camera market, but someone in top management advised against it: “It’s cute, but sshhh...don’t tell anyone.”
He was afraid the digital market would kill their photographic paper business.
“You can’t kill the messenger,” says Uri. When you see change coming, but don’t act and make the shift to adapt to the change, you might go under.
Disruption and change spark opportunity.
Uri has since been involved in the start-up of several value-adding apps. These include:
Feez, Moovit, Engie, SeeTree, Refundit, LiveCare, Fibo, Dynmo, Kahun, FairFly and Order.Chat.
He makes it his life’s mission “to do good and do well”, impacting the world for the better.
Vol 20 Issue 1
2019 marked the end of the Sefate Employee Share Scheme, a journey which started in 2010. The scheme officially came to an end with the final cash and share transfers, and the ex-gratia payments recently made.
What a journey it has been! What started out as a plan to add more value to the lives of Sappi employees, soon became a journey of shared learnings and earnings that benefited people in many ways.
Between 2017 and 2019, Sefate paid out over ZAR49 million in annual dividends and ZAR54 million on the final vesting in September 2019 to its unitholders.
A journey of learning
You can become a Sappi shareholder too
Did you know? Even if you were not part of the Sefate Employee Share Scheme, or did not receive shares due to the type of Sefate units you held, you can still become a Sappi shareholder and trade in shares?
Are you regarded as an ‘applicable person’? This means you are a Sappi employee, such as a director, management member or team lead, who must get clearance first before dealing in Sappi shares – and they
are also not allowed to trade during the closed and prohibited periods.
If all the steps have been followed, you may proceed to buy or sell Sappi shares. To do so, contact your stockbroker or Computershare and instruct them to buy/sell Sappi shares on your behalf.
How does it work?
If you want to buy or sell Sappi shares, first read the following policies to make sure you stick to the rules:
• Trade in Securities Policy
• Group Investor Relations Policy
• Sappi Code of Ethics
Are you in possession of unpublished price sensitive information (PSI)? You would have to wait until such information is published before trading in Sappi shares.
Determine whether Sappi is in a ‘closed period’ or a ‘prohibited period’, or not. Sappi employees and their immediate family and relatives are not permitted to trade during these periods, or to ask others to trade on their behalf. You need to wait for the closed/ prohibited period to expire before trading in Sappi shares.
Are from the end of each financial quarter (end of December, March, June and September), until 10:00 SA time on the day of the announcement of Sappi’s results for that quarter.
Friday or last trading day prior to the Sunday on which the accounting period closes, or after the last calendar day of the quarter concerned, whichever date is the earliest.
Follow the steps above each time you wish to deal in Sappi shares.
Sappi’s accounting period for the financial quarters generally closes on the last Sunday of the quarter, but sometimes on the first Sunday into the next month. Therefore, trading will not be permitted after the
Refer to times when unpublished Sappi price sensitive information* (see definition on the next page) exist, whether or not the directors are aware of such information.
Vol 20 Issue 1
Sappi shares: A ‘share’ is stock that a shareholder owns and represents his/her part of a company. Owning Sappi shares means owning a part of Sappi.
Price sensitive information (PSI): Information that could be expected to affect
the price of Sappi shares or securities – whether positive or negative. Eg: reports of earnings/losses, projections of future earnings/losses, news of a pending or proposed merger, acquisition or tender offer, news of a pending or proposed significant sale of assets or the disposal of a subsidiary, changes in dividend policies, the declaration
of a securities split or the offering of additional securities, changes in senior management, impending financial liquidity problems, the gain or loss of a substantial customer or supplier, or other important business developments – whether positive or negative.
When trading in Sappi shares ... keep it ethical
Beware of insider trading
As explained in the Sappi Code of Ethics, insider trading is defined as buying or selling shares, or advising others to buy or sell shares based on unpublished price sensitive information.
This type of trading takes unfair advantage of privileged information, putting the average investor at a disadvantage and violating the market principle of transparency.
What is expected of employees?
Do not trade in Sappi shares during closed periods and don’t ask others to trade on your behalf.
If you are a director on the lead teams of Sappi Limited or any subsidiaries and operating companies, ensure that clearance to trade is received from the Group Company Secretary, Chairman (in case of directors) or, in his absence, the Lead Independent Director before trading in Sappi securities and that the Chairman must obtain the clearance of the Lead Independent Director. In the case of directors and secretaries of Sappi’s material subsidiaries, clearance must be obtained from the Group CEO, or in his absence, the Chairman.
Do not share any confidential information such as information about unpublished financial results, new products and acquisition plans or strategies that have not yet been made public to third parties. This principle also applies to family members and relatives.
Be careful to not create the impression that you are giving investment advice when explaining Sappi’s performance or financial results to anyone.
Examples of unethical behaviour:
Sam has access to actual quarterly financial results. Can she tell friends or family of the positive or negative quarter Sappi just had?
Answer: Not before the results have been published through the Johannesburg Securities Exchange where Sappi’s shares are listed. Until then, the results are confidential. If Sam’s family or friends trade in Sappi shares before the results become public (and they did so based on information or comments received from her), they will be violating insider trading legislation.
Adam would like to help a local charity boost their investment portfolio. He has knowledge of a new Sappi innovation that will most likely boost our share price. Can he give a tip to the charity?
Answer: No, although Adam has good intentions, he cannot share this
material non-public information. If he does so, and the charity buys shares based on this information, Adam and the charity may be liable for violating insider trading legislation.
Vol 20 Issue 1
Awards and recognition
Sappi excels in exports
and investment in KZN
Sappi Southern Africa’s operations in KwaZulu-Natal have made us proud by winning the 2019 KZN Exporter of the Year Awards in the Large Exporter category at a function held at the ICC in Durban at the end of last year. The region was also acknowledged as a finalist in the Africa and Manufacturing categories.
This follows the success of a month earlier, when Sappi Southern Africa was recognised at the 2019 KwaZulu-Natal Investor Awards as winner in the category ‘Investor operating in KZN with a Global Footprint’ and as a finalist in the ‘Major Capital Investment’ category.
The KZN Exporter of the Year Awards, now in its 19th year, are convened by the Durban Chamber of Commerce
and recognise local businesses and exporters in KwaZulu-Natal to stimulate the growth of the province’s economy by encouraging a focus on exports.
The inaugural KwaZulu-Natal Investor Awards convened by TIKZN (Trade & Investment KZN) showcase the province’s investment success stories, whilst recognising the investment by local and international investors in growing the economy of KwaZulu-Natal.
Sappi Export Services General Manager Morgan Moodley (centre, with red tie) celebrates winning the KZN Large Exporter of the Year Award, along with his team members, colleagues and guests.
Regional Information Services awards IT excellence
by Koosh Panday, Global SAP Project Manager
Employee recognition awards is one way to formally recognise colleagues for their outstanding contributions to achieving Sappi’s mission and vision.
Within our Regional Information Services (RIS), David Brummage has been recognised with the IT Excellence Award by the
RIS management team. The recognition is based on positive submissions, not only from IT staff but also from business users (our customers).
Over the last few months, David displayed exceptional commitment to improvement and reliability. This included making sure Sappi’s Wide Area Network (WAN) service provider (Syrex) delivers reliable services, and that designed performance and Service Level Agreements (SLAs) are being met.
Deon van Aarde (left, Chief Information Officer, SSA) and David Brummage (Senior Network and Security Engineer, Communications COE: Regional IT).
Awards and recognition
Vol 20 Issue 1
encourage insight and creativity
Packaging brings together
a unique blend of materials, technology, design and marketing. The annual Student Gold Pack Awards, of which Sappi is a sponsor, brings young, creative talent into the mix.
As a leading force in sustainable packaging, Sappi sponsors the graphic design component of the competition, judging entries on the basis of colour use, logo design and the sustainability features of the product.
Angeline van Hillo from the Nelson Mandela University won the graphic design category.
Her entry was applauded for being right on brief and exceptionally well designed – modern, fresh and supporting the brand.
Student Gold Pack Awards winner in the graphic design category, Angeline van Hillo from the Nelson Mandela University, joined by Richard Wells (VP Sales and Marketing, Sappi Paper and Paper Packaging).
Sappi Khulisa video wins a Silver Quill
A video compiled for Sappi Khulisa growers was recently recognised for excellence in communication when it received an Excellence award in the skills division of the 2019 African IABC Silver Quill Awards.
Sappi Forests was challenged with the task of effectively explaining to Khulisa growers the benefits of providing Sappi with a sustainable source of timber. With most of the audience being older women living in deep rural areas – many unable to read or write – a video approach was taken where an elderly lady teaches her young grandson about the benefits of participating in the forestry value chain.
The Silver Quill judges were highly impressed. “This is a brilliantly planned and executed project. Working with communities requires a deep understanding and sensitivity to their needs and a respect for their culture. This was well illustrated in the approach, as well as in the excellent results achieved. Well done!”
Zelda Schwalbach (left, Communications Manager Forests) receiving the Silver Quill Award on behalf of the Sappi Southern Africa (SSA) communications team. She is joined by Mpho Lethoko (General Manager Communications, SSA).
To find out more about the awards go to
Vol 20 Issue 1
Paper merchant applauds
Magno Plus’ qualities
Sappi has relauched its Magno Plus product range in the local market by renewing its supplier partnership with Kalideck Antalis, a distributor of paper and graphic industry
solutions across Southern Africa.
Commenting on this collaboration, Romano Daniels, Marketing and Purchasing Manager of Kalideck Antalis said, “Sappi is a leading brand that understands the importance of strategic alliances. It
is a company that provides product supply consistency and is supportive and accessible to explore market opportunities.
“In addition,” Romano added, “Sappi has an extensive product offering with exceptional technical backup. It also values the importance of brand building, which is the cornerstone of our own success.
“It is the combination of these factors that gives this Magno Plus an advantage in the print and design industries.
Magno Plus wins Bronze at the Loeries Africa Middle East 2019 awards ceremony, where excellence is recognised and
The ‘Bunny’ posters were designed and printed to showcase the superior image brilliance of Magno Plus Gloss, as well as its increased bulk and great surface properties for excellent printability.
Magno Plus ticks all the boxes in terms of environmental sustainability, being
and bulk. – Romano Daniels, Kalideck SUPEROR
sourced from responsibly managed forests
and manufactured under strict European
environmental controls. Its key market
differentiators are whiteness, image brilliance
Creative excellence recognised at Loeries
ng the M
the product’s exceptional print qualities and surface properties. In a recent poster campaign designed by Switch – which won
Magno Plus wins Bronze at the Loeries
bronze at the 2019 Loeries Africa Middle East award ceremony – Atfhrei‘cBaunnMy fiadmdilyle’ poEsatesr tse2rie0s1s9hoawwcasaerddthse crearteivemcaopnabyili,ties
where excellence is recognised and
of Magno Plus Gloss through superior colour reproduction and
unusual printing techniques featuring spot colours, neon colours
[email protected] www.kalideck.co.
and sandstone varnish.
Th“Aes‘Breuflnencyte’ dpoinstehris cwamerpeaidgens, iMgnaegdnoaPnldusphrainstesdupteorbshsourwfacaese integrity and outstanding print definition. Colour reproduction is
the superior image brilliance of Magno Plus Gloss, as well as vivid and unparalleled, and the printability and runnability offer
its increased bulk and great surface properties for excellent printers great cost benefits.”
Vol 20 Issue 1
Vulindlela pipe bridge method a first for SSA
Project Vulindlela at Sappi Saiccor Mill has achieved what has been labelled as an engineering feat with its modularisation method to install pipe bridges.
Pipe bridges are structures specially designed to hold pipes. We see them all around in our mills holding pipes that contain substances like water, air, sulphuric acid etc.
Modularisation is when something is constructed in separate segments, or sections, essentially
for reduced complexity. When modularising pipe bridges, the segment structure is built offsite
in a construction yard. Once it is completed it is brought on site and connected to another segment. On previous projects they were built onsite.
Vulindlela Project Director Wayne Weston explained that this construction method is a first for Sappi Southern Africa (SSA) and that the main driving force for implementing this method is due to the project congestion and safety of employees.
Everything is designed to be pieced together and built from the bottom up. Normally the structure would be erected on site, with the pipes pushed through and welded together. The modularisation process minimises the congestion on site and enables the project to remain on schedule.
Wayne singled out three individuals responsible for the project’s success so far: Senior Projects Executive Andrea Rossi, Construction Supervisor for the pipe bridges Jose Arouj, and Construction Manager for Vulindlela, Chester Bernard.
It’s all about efficiency and safety
“The construction area is just so congested, there is no way we would have been able to build the
The structural steel used for the pipe bridges on Project Vulindlela.
pipe bridges without a huge safety risk,” says Andrea.
Along with André Lemeux and his team from Wood, assistance came from PCL Construction in Canada, who specialises in modularisation. PCL supplied a plan that would make this job possible and would also get people on board, as initially there was some resistance. So far construction has been successful.
“This is a proven technology; slightly more expensive, but in terms of schedule it is far better,” added Andrea. He gives credit to PCL for their guidance, André Lemeux and Fred DiCaspero for their instrumental support and Chester Bernard, for his steadfast commitment to making this work. Credit also goes to the main Mechanical and Piping Contractor Goss and Balfe, and to a lesser extent ABB/ICS/UIC (Electrical).
Signing of Vulindlela digester contract
Project Vulindlela achieved a further important milestone with the official signing of the digester construction contract. This contract includes the mechanical and piping installation within the new digester and tank farm areas.
The contract was signed by CEO Sappi Southern Africa Alex Thiel and Managing Director of Christof Industries South Africa, Kelvin Radebe.
“The signing and commitment displayed by Christof Industries shows that they are committed to the challenge and to executing their contract work safely and successfully,” said Project Director
Role players from Sappi and Christof Industries during the signing of the Vulindlela digester contract.
Vol 20 Issue 1
News from the group
Matane Mill acquisition
The town Matane in the Gaspé Peninsula, Quebec.
to secure pulp, reduce costs
Sappi’s acquisition of the 270,000-tons-per-year Matane high yield hardwood pulp mill in Canada, from Rayonier Advanced Materials (RYAM), has been concluded and is set to secure pulp supply and decrease costs.
The US$175 million deal funded through internal cash resources and available debt facilities, was recently completed and offers the following benefits:
Increases our pulp integration for the fast-growing packaging papers businesses in North America and Europe
Supports our 2020Vision to grow in higher margin growth segments
Drops our cost of pulp
Reduces the volatility of earnings through the pulp cycle
Establishes certainty of supply for our increasing need for pulp
Enables supply to be increased over time to Sappi’s mills in North America and Europe as demand increases and capacity expands in certain growth businesses.
About Matane Mill:
Situated in the Gaspé Peninsula in Quebec, Canada
Located on the south shore of the St Lawrence River at the
mouth of the Matane River
Capacity of 270,000-tons-per-year of high yield hardwood pulp 129 employees.
YES! to innovation in recyclable food packaging
With the increased global
push for sustainable
solutions, Sappi has made
great strides in developing
breakthrough proprietary barrier technology to satisfy this need.
These solutions have enabled us to collaborate with the world’s largest food and beverage company, Nestlé, to support the launch of the YES! snack bar, wrapped in recyclable paper.
New Spectro boasts superior quality
Sappi North America showcased its full line of paper packaging products during the PACK EXPO in Las Vegas. Spectro C2S was among the line-up; a new high-end product with superior quality.
Customers using Spectro C2S can expect:
A proprietary coating engineered to deliver a smooth and uniform surface.
Strength and durability to give optimum convertibility.
High brightness and a unique coating formulation for fade resistance.
Mike Haws heads up Sappi North America
Mike Haws, former Vice President Manufacturing at Sappi North America, has
been appointed as President and CEO
of Sappi North America. Mike succeeds Mark Gardner, a 38-year veteran of Sappi
in North America, who retired at the end of September 2019.
Mike joined Sappi in 2012 as Managing Director of Somerset Mill before being promoted to Vice President Manufacturing.
While leading Somerset Mill, he also received the Pulp and Paper International (PPI) Mill Manager of the Year award.
Sappi CEO Steve Binnie thanked Mark for being an exemplary leader for the company and in the industry. Commenting on Mike’s appointment he said, “Mike has been integral to the development and execution of Sappi’s 2020Vision and the investments made in SNA. I’m confident that under his leadership our business will take full advantage of the exciting opportunities in this region.”
Vol 20 Issue 1
Click here to follow Sappi on @SappiSouthernA
Check it out online
Sappi Skills Centres reap success
Our centres at Saiccor and
Ngodwana Mills are giving more
and more people the opportunity
to succeed through skills
development. Watch on YouTube
how the entrepreneurial success
stories of Zamabongwe Mbongwe and other Skills Centre participants unfold. #SappiSkillsCentre
Follow @SappiSouthernA on Facebook to watch their stories unfold.
CLICK HERE https://bit.ly/2Xma3CK
Honey, it’s the best!
The Sappi-supported African Honey Bee (AHB) Project, a successful skills and enterprise development venture, recently won a Community Chest Impumelelo Social Innovation Award. Read more about the project.
CLICK HERE https://bit.ly/33ZJ6qZ
Karkloof Trails in good hands
Nguni Trails is a small black-owned business that forms part of the ‘Adventure Tourism Incubator’ – a pilot project aimed at creating an effective model for skills and enterprise development, whilst lifting the standards of
the Karkloof and Howick trail networks. It is supported
by the Karkloof Country Club and funded by Sappi, the Industrial Development Corporation and N3 Gateway Tourism Association. The Nguni Trails team will care for, build and maintain the Karkloof Trails.
CLICK HERE https://bit.ly/34XDGxu
#LiveALifeOfNote with Typek
Sappi Typek’s exciting marketing campaign continues to entertain
and engage consumers
of this leading office paper brand through challenges and competitions that
inspire them to live a
life of note. Support this initiative by liking and sharing the Typek South Africa social media pages.
Keeping our trees healthy
In a shifting world of climate change and the constant adaption of pests and pathogens to changing conditions, is a massive challenge that keeps our Sappi Forests team on their toes. Read more about how they do this in an article from SA Forestry Online.
Stop and Think Before you Act
At Sappi, we’re serious about safety and we are committed to keeping our staff, contractors and stakeholders safe too. We know you share this same dedication. Join the Stop and
Think Before you Act Facebook group and like and share the tips and news that will keep you informed and alert.
Teaming up with global brands
The University of Cambridge Institute for Sustainability Leadership (CISL) brought Sappi together with major global brands after a successful experiment of how a new model of data sharing technologies can enhance the sustainability of global supply chains. #SappiSustainableSolutions
Vol 20 Issue 1
Our sustainability journey
incorporates UN goals
Delving deeper into Sappi’s seven priority goals and what our contribution should be.
Zero hunger. No poverty. Sustainable cities. Responsible consumption and production. These are just some of the United Nations’ Sustainable Development Goals (SDGs). Individually and as a company, we can contribute to many of them.
At Sappi, we are focusing on where to make the biggest contribution, and that is why we are proposing to prioritise seven of the 17 SDGs. The goals can set the direction for our sustainability performance indicators in the context of our next five- year strategy.
A working group, comprising sustainability staff from Sappi Limited and the regions, is evaluating how to bring these goals to life by identifying specific indicators and targets to measure and inspire progress.
For each goal, we are also identifying the priority topics that Sappi could get more active on in terms of advocacy, commitments and/or partnerships.
1. SDG 6 – Clean water and sanitation
Water is an essential natural
resource on which our
company depends. We need
to use it responsibly. Water
quality (COD or BOD) or water consumption are both under consideration as global performance indicators on which to measure our progress against targets.
Additional priority topics:
Innovation around waterless
Formulating a group water policy.
2. SDG 7 – Affordable and clean energy
As an energy-intensive
industry, our fuel choices have
a big impact. While Goal 13
focuses on CO2 emissions,
for this goal we are looking at
the share of renewable energy
within our total energy consumption and specific total energy as potential indicators to measure progress.
Additional priority topics:
Advocacy on energy policy and renewables
We are excited with the idea of strengthening Sappi´s link to this international framework for sustainable development. It will not only help us tell our story with pride and contribute meaningfully, but also strengthen the support given to our customers and partners who also share our SDG ambitions.
As our exploration will continue for the next few months, any feedback and ideas are more than welcome. Please send them to [email protected]
Vol 20 Issue 1
4. SDG 12 – Sustainable production and consumption
Making products out of
renewable forest resources
is the core of our business.
Our industry can play a
pivotal role in the circular
economy. Through R&D and new product development, we continually create
new products, solutions and value from natural resources. Global indicators under consideration include the reduction of waste to landfill and the number
of products we launch with defined sustainability benefits.
Additional priority topics:
Promoting forest certification
Embracing the circular economy Recycling and recyclability
5. SDG 13 – Climate action
Taking urgent and appropriate
action to combat climate
change and its impacts
is a shared responsibility.
Continued reduction of Sappi’s
CO2 emissions is key. The indicator proposed to measure progress is specific COá (based on saleable figures) with Scope 1 and 2 combined.
Additional priority topics:
Active on climate and energy policy
Decarbonisation plans and
Value chain cooperation on CO2
6. SDG 15 – Life on Land
The focus is to protect, restore
and promote sustainable use
of terrestrial ecosystems,
sustainably managed forests,
combat desertification and
halt and reverse land degradation and biodiversity loss. With Sappi´s excellence in sustainable forest management,
we want to continue to increase our positive contributions. The key indicator
is the percentage of woodfibre input
from certified forests. Beyond forests,
we can look at the potential impact of other natural resources we procure. Our Supplier Code of Conduct can be a useful entry point.
Additional priority topics:
Promote forests as a solution for climate change
Innovation towards supply chain transparency
Promote wood use and our innovation in adjacent markets
7. SDG 17 – Partnership
Sappi is already engaged
in many partnerships and
collaborations, but we have
many more opportunities
to explore. North-South
partnerships are especially relevant, and we are well placed to lead and embrace these even more. One indicator could be the number of active partnerships.
Additional priority topics:
Build and activate partnerships that contribute to all seven priority goals.
3. SDG 8 – Decent work and economic growth
As a responsible business
operating in many locations
around the world and an
employer of more than
12,000 people, this goal is
underpinned by Sappi´s commitments to people and prosperity. Indicators under consideration include safety (LTIFR), inclusivity and/or engagement in the workplace and compliance of our suppliers with Sappi’s Code of Conduct.
Vol 20 Issue 1
Fresh ideas to help drive innovation
EIT Challenge moulds young talent for the future
Part of our roadmap to a sustainable future is the focus on nurturing young talent; giving them the opportunity to be coached by mentors and acquiring hands-on experience
conscious and this was evident in all their processes.
What was surprising...
Bhavini: I went with the expectation that language differences would be a problem when touring Austria and the mill. Much
to my surprise, almost everyone spoke English. Austrians are extremely friendly and they went out of their way to make our stay memorable.
Linde: It was surprising to see how the mill has had to adapt to its surroundings. Due to it being situated in a residential area, changes have had to be implemented to eliminate noise and other forms of pollution. Almost all equipment and sections have therefore been enclosed in buildings, leaving the area quiet and clean. The discipline across the country was also humbling to experience – everyone knows the law and abide by it.
in the workplace.
The Sappi Engineers-In-Training (EIT) Challenge is a practical component of our EIT programme, prompting graduates to come up with innovative ideas to improve on current processes, projects or engineering- related problems. The reward? A trip overseas to learn more about one of our operations in Europe or North America.
In the first-ever challenge, evaluated by a panel of senior engineers and managers last year, the EITs were tasked to provide ideas on how to improve or change the current programme for the better.
Winning EITs praise teamwork and discipline at Gratkorn Mill
Bhavini Kooverjee (currently a Process Engineer at Tugela Mill) and Linde Venema (currently acting Mechanical Technician in the Woodyard at Ngodwana Mill) took first and second place, respectively. They visited Sappi Gratkorn Mill in Austria as part of their prize.
Both came back with a broadened view of Sappi within a global context.
Crucial lessons learnt ...
Bhavini Kooverjee: I learnt that positivity and teamwork go a long way. Gratkorn Mill showed how teamwork and a positive attitude can be beneficial when trying to solve problems quickly and efficiently.
Linde Venema: Be sure to have the correct information before making decisions and
use this information wisely to plan properly. Always try your best and never be afraid to ask questions when you are uncertain. Take in as much as you can of your surroundings. Life is fleeting – enjoy and appreciate the little things it has to offer.
Biggest highlight ...
Linde: We had the privilege of visiting a forestry site. It was amazing to see and learn about the different species of trees. Due to the mountainous countryside, the harvesting processes differ greatly compared to ours.
Bhavini: Gratkorn Mill’s PM11 was a definite highlight. This paper machine is one of the largest and most advanced paper production lines in the world.
Different, but the same...
Linde: Teamwork and support are widely exercised, and assistance is always available. Also, some of the individual production processes differ from ours due to the products being produced. However, there
is a notable difference in their harvesting techniques, as well as the size of some of the equipment and machinery being used.
Bhavini: The environment and safety play an important role in Sappi Europe, as it does in SSA. Gratkorn is extremely environmentally
To find out more about the Engineers in Training programme, visit www.sappi.com/engineering
Vol 20 Issue 1
Bhavini and Linde during their travels in Austria. The two EITs, joined by Gratkorn staff, in front of the mill’s impressive PM11.
EITs delve into #ATreasureTroveofTrash
“Congratulations to all the EIT Challenge participants! You can be proud of the quality of work. We are looking forward to seeing your business ideas come to fruition for the
benefit of local communities,” said VP Manufacturing and Technical, Pat McGrady.
The EITs who competed in the second EIT Challenge were: Adarsh Madanlal (Tugela Mill), Braam Labuschagne (Ngodwana), Brett Christie Taylor (Ngodwana), Kitesh Sookdawe (Tugela), Jethro Masetlwa (Saiccor), Joseph Radebe (Ngodwana), Lungile Sumbane-Prinsloo (Ngodwana) and Madelein Pretorius (Saiccor).
The contestants came up with several excellent business proposals:
A coarse ash brick plant
Manufacturing of furniture out of wooden pallets
Manufacturing of eco-cast caskets
Bricks and blocks from boiler
Drying and incinerating a pulp/paper mill’s sludge
The use of filter press sludge and sawdust for activated carbon.
The winners of the best viable business options were:
Madelein Pretorius (Saiccor Mill): Manufacturing of eco-cast caskets, using three different waste streams generated at Saiccor Mill.
Jethro Masetlwa (Saiccor Mill): An activated carbon plant using mill sludge and sawdust.
EIT Challenge winners of #ATreasureTroveofTrash, Jethro Masetlwa and Madelain Pretorius from Saiccor Mill.
Keep an eye on Sappi Southern Africa’s Facebook page @SappiSouthernA to follow the exciting 2020 EIT Challenge.
POPIA: A law to protect
personal information (Part 2) By Amanda Tregoning, Group Corporate Counsel
Vol 20 Issue 1
In the previous edition, we covered the purpose of the Protection of Personal Information Act, 2013 (POPIA) and how it applies to Sappi. POPIA is a binding law that will regulate what companies and public bodies with access to your personal information are allowed
to do with that information. As pointed out in Part 1 in the previous edition, POPIA has yet to come into effect. This is expected to happen in 2020.
According to the Consumer Profile Bureau, POPIA as a data protection law aims to protect people from theft of money, identity and privacy.
POPIA is based on eight core principles that apply to the processing of personal information:
Principle 1: Consent required
Personal information must be collected directly from the ‘data subject’ and may only be processed with their consent. In the absence
of consent, processing must comply with a legal obligation, public law duty or a contractual obligation.
The ‘data subject’ refers to the individual or company whose personal information is being collected, used and processed.
Principle 2: Specific purpose Personal information must be collected for a
specific defined and legitimate purpose. The data subject should be made aware of the purpose for which the information is collected, and whom the likely recipients will be.
Principle 3: Further processing
Personal information may not be processed further in a way that is incompatible with the purpose for which it was initially collected.
Principle 4: Information quality
The responsible person that processes the information should ensure that it is complete, not misleading and current and accurate.
Principle 5: Openness
Where personal information of a data subject is collected, the responsible party must ensure that the data subject is made aware of:
The fact that the information is being collected
The name and address of the person or institution collecting the information
Whether or not the supply of the information by the data subject is voluntary or mandatory; and the consequences of failure to provide the personal information
Whether the collection of personal information is authorised or required under any law, and the particular law to which the collection is subject.
Principle 6: Security safeguards
POPIA requires the implementation of certain measures to secure the integrity of personal information, and to guard against the risk of its loss, damage or destruction. Any person holding that information must protect it against any unauthorised or unlawful access or processing.
Principle 7: Individual
A data subject is entitled to the particulars of his/ her personal information held by any institution or person, as well as to the identity of any person that had access to his/her personal information. The data subject is also entitled to require the correction of any incorrect information held by another party.
Principle 8: Accountability
The responsible party (the party/institution that holds personal information) must give effect to these principles for the protection of personal information. The regulator may exempt the responsible party from compliance with certain principles and can authorise the processing where it would be in the public interest, or where there is a clear benefit for the person concerned.
Vol 20 Issue 1
Public interest includes:
The interests of state security
The prevention, detection and prosecution of
Important economic and financial interests of the state and other public bodies
Scientific research and government statistics.
Trans-border information flows
POPIA not only regulates Personal Information held in South Africa, but also the transfer of personal information to parties outside of South Africa.
Following this, Sappi may NOT transfer personal information abroad, unless:
The recipient is subject to a law, binding corporate rules, a binding agreement or
a memorandum of understanding which provides an adequate level of protection that is substantially similar to POPIA
The data subject has consented to the transfer
The transfer is necessary for the performance of a contract, or
The transfer is for the benefit of the data subject, and it was not reasonably practicable to get their consent.
Risks and consequences of non-compliance
Investigation and compliance order
Anyone who is affected by non-compliance of any of the provisions of POPIA may submit a complaint to the Regulator in writing. If the Regulator finds the complaint to be valid, an investigation will be conducted.
There are certain instances in which a Regulator may decide not to act:
If the subject matter of the complaint is trivial
If a long period of time has elapsed
If a complaint is frivolous, vexatious or is not made in good faith, or
If the person making the complaint has failed to use a complaints procedure under an alternative code.
The Regulator may try to reach a settlement between the parties, or it can conduct a hearing
at which it can summon witnesses and receive evidence.
The Regulator can also ask a judge or magistrate for a warrant to enter and search premises.
Damages in the civil courts
A data subject, or the Regulator, may also institute a civil action for damages against a responsible party for a breach of any provision of POPIA relating to interference with the protection of personal information. It does not matter whether there was intent or negligence on the part of the responsible party.
Offences and penalties
A breach of the provisions of POPIA may result in various criminal offences and any person convicted of an offence in terms of POPIA may be liable to a fine or imprisonment.
Failure to comply with a compliance notice and/ or order issued by the Regulator in the case where POPIA is not being complied with, could result in the transgressor being subject to an administrative fine of up to ZAR10 million.
POPIA and Sappi: Controls in place to indicate compliance
To demonstrate compliance with the provisions of POPIA, Sappi and its employees
need to ensure that the following controls are implemented:
• POPIA training and awareness sessions
• Employees to ensure that all processing of personal information is done in accordance with the eight core information principles discussed above and the conditions of processing
• All personal information must only be used for the purpose for which it has been collected, and
• The data subject must be provided with a section 18 processing or consent notice.
Sappi should also ensure that when personal information is sent across South African borders, adequate personal data protection measures – equivalent to those measures in POPIA – are in place in such countries. Alternatively, the data subject must give consent to such processing and transfer.
98% of all data created in the history of the world has been created in the past two years, and much of it
is information about individuals.
Who will implement, manage and regulate?
Every entity that processes personal information must appoint an Information Officer to manage and deal with all POPIA-related matters. If a person is not appointed, then the CEO will be deemed to be the Information Officer.
The Information Officer will be personally liable if the Act is not complied with.
POPIA provides for an ‘Information Regulator’ – a supervisory body that will be independent and responsible for promoting, monitoring and enforcing compliance with the provisions of POPIA on a national level. The Regulator will also have the power to investigate complaints and draft or approve industry-specific codes of conduct.