Sappi Ltd

5.3.5 Being up-to-date on public policy developments and studying the implications of changes therein to the Company's endeavours.

The Social, Ethics, Transformation and Sustainability (SETS) Committee has an independent role with accountability to the board and comprises a majority of independent non-executive members, whose duties are delegated to them by the board in compliance with a board-approved terms of reference. The role of the SETS Committee, is to assist the board with the oversight of sustainability matters within the company, including climate-related issues, and to provide guidance to management's work in respect of its duties. The SETS Committee provides oversight on the group's sustainable development strategies, policies, objectives and targets and public disclosures. The committee addresses issues relating to environmental impact and climate change, corporate social investment, ethical conduct, diversity, transformation and empowerment and ongoing sustainability initiatives. Their responsibilities include monitoring the company's ESG activities, having regard to any relevant legislation, other legal requirements and prevailing codes of best practice. [...] Progress against our Thrive sustainability targets is an integral component of the SETS Committee agenda and is reviewed twice per year. Each of the three regions and Sappi Forests presents a detailed report on progress against regional Thrive targets as well as feedback on key initiatives, action plans and challenges relating to sustainability and climate-related matters. Additionally, a detailed climate report is presented to SETS annually outlining the company's progress according to the TCFD framework. Further details on the activities of the SETS Committee can be found on page 158. [...] Audit and Risk Committee (ARC) provides additional governance oversight on climate-related matters. The ARC oversees the group's corporate financial reporting and annual planning process, and the group's internal controls and risk assessment process, which includes sustainability and specifically climate-related risks. Further details on the activities of the ARC can be found on page 152. [...] The Executive Management Committee (EXCO), chaired by the group CEO, is accountable for delivery of the sustainability strategy and responsible for ensuring that the strategic objectives and goals of the organisation are achieved. The committee is responsible for ensuring that capital allocation is aligned with business and sustainability objectives and prioritised appropriately to ensure timely delivery against our public commitments. The EXCO regularly reviews progress against our sustainability and climate commitments and targets. In addition, sustainability matters of a strategic nature, including those relating to climate change, are reviewed and discussed by the EXCO prior to submission to the SETS Committee. This allows the EXCO to provide their strategic input and ensures that there is complete management alignment on sustainability matters. [...] The Group Sustainable Development Council (GSDC) reviews key global and regional trends and developments and makes recommendations on strategy and policy that are fed through to the EXCO, the SETS Committee and ultimately, to the Sappi Limited board of directors. The Group Head of Sustainability and Investor Relations and the Group Head Technology are responsible for coordinating actions related to the group's climate change-related risks and opportunities and providing reports to the EXCO to enable it to discharge its responsibility. [...] The GSDC meets quarterly and reviews progress against Thrive sustainability targets at each meeting. Additionally, other climate-related topics such as regulatory changes and trends, sustainable procurement, SBTi, TCFD, TNFD and forestry related issues are discussed at the majority of the meetings. All climate change-related matters of strategic importance are raised by the Group Head of Sustainability and Investor relations at EXCO meetings for input and guidance. Additionally, the progress against our science-based decarbonisation targets, regional climate transition action plans and capital allocation is reviewed in detail by EXCO annually with the budget setting programme. [...] The group's Regional Sustainability Councils (RSCs), in Europe, North America and South Africa, are responsible for establishing and implementing our on-the-ground sustainability strategy and action plans. Their work is overseen and reviewed by the GSDC.

###### Enhancing trust

s we work to build a thriving world by unlocking the power of renewable resources to benefit people, communities, and the planet, we need to do so from a foundation of trust. This foundation is

### A

###### reinforced by our robust sustainability governance structure:
The Group's Regional Sustainable Councils (RSCs), in Europe, North America and South Africa, are responsible for establishing and implementing our on-the- ground sustainability strategy. Their work is overseen and reviewed by the Group Sustainability Development Council (GSDC). The GSDC reviews key trends and developments together with strategy and implementation and makes recommendations that are fed through to the Social, Ethics, Transformation and Sustainability (SETS) Committee and ultimately, to the Sappi Limited board of directors. The SETS Committee relies on international best practice as well as the laws and regulations under which Sappi's businesses operate to ensure that the group not only complies with, but also fully implements, all requirements. The committee addresses issues relating to corporate social investment (CSI), ethical conduct, diversity, transformation and empowerment initiatives and targets ongoing sustainability practices. The responsibilities include monitoring the company's activities, having regard to any relevant legislation, other legal requirements and prevailing codes of best practice.

###### Enhancing trust

unlocking the power of to benefit people, communities, and the planet, we need to do so from a foundation of trust. This foundation is reinforced by our robust sustainability governance structure:
The Group's Regional Sustainable Councils (RSCs), in Europe, North America and South Africa, are responsible for establishing and implementing our on-the- ground sustainability strategy. Their work is overseen and reviewed by the Group reviews key trends together with strategy and implementation and makes recommendations that are fed through to the Social, Ethics, Transformation and Sustainability (SETS) Committee and ultimately, to the Sappi Limited board of directors. The SETS Committee relies on international best practice as well as the laws and regulations under which Sappi's businesses operate to ensure that the group not only complies with, but also fully implements, all corporate social investment (CSI), ethical conduct, diversity, and empowerment initiatives and targets ongoing sustainability practices. The responsibilities include monitoring the company's activities, having regard to any relevant legislation, other

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###### Enhancing trust

continued

The SETS Committee has an independent role
with accountability to the board and comprises a
majority of independent non-executive members,
whose duties are delegated to them by the board
in compliance with a board-approved terms
of reference. The role of the SETS Committee,
together with the Audit and Risk Committee,
is to assist the board with the oversight of
sustainability issues within the company and
to provide guidance to management's work in
respect of its duties.

The chairman of the SETS Committee has served
as the President of the International Union for
the Conservation of Nature; Chairman of the
UN Commission for Sustainable Development;
Chairman of the World Wildlife Fund South Africa
(WWF-SA) and currently serves as the deputy
chair of the South African President's Climate
Change Commission.

###### Our sustainability governance structure

###### Sappi Limited board

Sappi Limited board
Executive and Management Committee

Group Sustainability Development Council

Executive and Management Committee

Regional Sustainability Council

Sustainability ambassadors in SEU and SNA and
brand ambassadors in SSA

Employees help to integrate sustainability into
our everyday business activities

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Sappi's engagement activities are guided by the TCFD, our support of the Paris Agreement since it was first drawn up, our commitments to the SBTi, the priority targets we have established in alignment with climate-relevant UN SDs, including SDG7: Renewable and Clean Energy and SDG13: Climate Action, as well as with our Climate Policy. The Group Heads of Investor Relations and Sustainability; Corporate Affairs and Strategy and Legal, liaise with the regional CEOS and sustainability heads regarding direct activities that influence policy. At the Regional Sustainable Development Councils (Europe, North America and South Africa), Global Sustainable Development Council, as well as the SETS and Risk and Audit committee meetings, policy and legislative items that can or do affect the sustainability of Sappi's business, including climate change, are discussed and appropriate actions are agreed with management and EXCO to ensure our positions are consistent with our overall climate strategy. All public statements that influence policy have to be approved by the Group Head: Corporate Affairs, who also reviews public statements to ensure that they remain consistent with our overall climate change strategy. Climate change related information is made available to the entire organisation via the various internal communication channels (eg FAQs and carbon calculators). In 2021, two of our forestry experts presented at COP26.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes