1 A Papermaker’s Perspective on Renewable Energy Labeling Laura M Thompson, PhD Director, Technical Marketing and Sustainable Development Sappi Fine Paper North America

SAPPI FINE PAPER : SUSTAINABILITY A subsidiary of Sappi Limited HQ in Johannesburg, SA. $7.3 billion in sales in ,900 employees, operating on four continents in 8 countries with customers in over 100 countries around the world. Core business in NA is coated fine paper For communications (direct mail, catalogs, magazines, brochures) World leader in release papers For decorative and functional texture applications (coated fabrics, solid surfaces and functional films) Sappi is a world leader in chemical cellulose Used in textile and consumer good applications (viscose/rayon, non-wovens) Sappi’s Cloquet, MN pulp mill is converting to chemical cellulose in 2013 Sappi Fine Paper North America (SFPNA)

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4 Many of our customers seek assurance through certification programs – and like to use on-product labels Responsible Forestry FSC, SFI, PEFC Energy and Emissions Green-e Recycling and Recycled Fiber “Please Recycle” and Recycled Content Sappi sells B2B through merchant distribution We sell “white paper” – our customers print logos

5 From Sappi’s On Product Label Guide

From Sappi Fine Paper North America’s 2011 Sustainability Report

7 From Sappi Fine Paper North America’s 2011 Sustainability Report

8 A few words on Green-e certification Q: If our Somerset Mill has 85% renewable energy what portion of the product line can be supported with Green-e claims? a.85% b.100% c.We only have enough credits for Opus d.We only have enough credits for Flo Sheets and Opus e.None of the above A Few Sample Slides from Sales Training

SAPPI FINE PAPER : SUSTAINABILITY A high level look at energy consumption Black Liquor Oil or Nat Gas Sludge Bark Woody Biomass Purchased Electricity The Mill Boundary: Over 85% or our total energy is renewable Renewable Fossil Fuels We use oil at Somerset and natural gas at Cloquet

SAPPI FINE PAPER : SUSTAINABILITY A high level look at energy consumption Recovery Boiler Multi-fuel Boiler Black Liquor Oil or Nat Gas Lime Kiln Sludge Bark Woody Biomass Electricity Steam Turbines Only electricity generated from steam from the recovery boilers is certified as green-e Our green-e claims have nothing to do with purchased electricity We are not buying RECs, we generate them on site and consume them to make product claims Steam Purchased Electricity

SAPPI FINE PAPER : SUSTAINABILITY We source wood and fiber responsibly - but it is not all certified We generate and consume a great deal of renewable energy - but it is not all certified There are credit systems involved in both cases – the programs allow us to make claims on products by applying credits in accordance with the rules of the program Green-e and the analogy with wood certification

SAPPI FINE PAPER : SUSTAINABILITY We face the challenge of differentiating between total renewable energy and electricity derived from renewable resources Communication efforts span multiple platforms: Printed collateral – e.g. brochures, reports Website - sappi.com/eq Videos Social Media (blog, Twitter) Presentations Communication efforts supported by extensive training Communicating about renewable energy

13 SFPNA Marketing Celebrating the story of the Somerset Mill + Dual sided with unique fold Side 1 – Papermaking and recovery process with callout features Side 2 – Imagery with product and mill achievement information + QR codes link to videos on sappi.com/eQsappi.com/eQ The Somerset Mill: A Story of Sustainability Another Green-e logo!

14 Renewable Energy Certificate (REC): One megawatt of energy produced by a renewable fuel, as certified by some third party agency, against a standard The REC is sometimes referred to as the environmental attribute bundle of renewable electricity generation There are two distinct REC markets: Voluntary RECs: certified by a third party and sold to voluntary buyers who wish to establish some marketing or environmental claim against a company objective; i.e because they want to Compliance RECs: comply with the Renewable Portfolio Standard (RPS) requirements of a particular state; i.e. because they have to The Green-e Standard Certification is important because it assures that the energy: Is from new projects RECs support new projects built for the voluntary market, not to satisfy a state or federal requirement. Is verified To ensure that they live up to claims and that customers are getting what they paid for Has not been double counted Certified RECs sold to a consumer can not be counted toward an RPS. Renewable energy must only be attributed to the entity that purchases the REC Our use of Green-e RECs is somewhat unique We are an onsite generator of RECs (we don’t buy them) And we don’t sell them (although we could) We consume our own RECs and make claims in the marketplace about our generation and consumption We have several product lines that qualify for the re:print program The Green-e re:print program Certifies printers and paper lines that use renewable energy When a company produces a print job like an annual report, company brochure, or newsletter they can display the re:print logo on the printed piece CERTIFED PAPER Paper made using 100% certified renewable electricity CERTIFED PRINTING Paper printed using 100% certified renewable electricity Green-e Certification