ITOCHU & Metsä Group’s Joint Venture

8.5
0
AR
shim
Audit required

Completion of CanopyStyle Third Party Verification Audits

Undertaking Annual Audits

Audits Public and Results Acted On

n/a

Audit risk results

n/a

Contribution to Conservation Legacies

International Targets

Public Collaborative Leadership

Influences Decision Makers

n/a

Legislated protection

n/a

Extra Respon­sibilities

n/a

Innovation via New Alternative Fibers

Partnerships

n/a

R&D Investments

n/a

Scaling to commercial products

n/a

Targets & timelines

n/a

Contributing to Collective Goal

n/a

Aggressively Increasing Commercial Scale

n/a

Adoption of Robust Forest Sourcing Policy

Policy adoption

Policy meets all CanopyStyle criteria

Traceability, Transparency, and Sustainable Sourcing

Using the Dissolving Pulp Classification

Track & trace system in place

n/a

Public sharing of supplier list

n/a

Proactive sourcing decisions

n/a

Leaders in Supply Chain Shifts

Proactive Sourcing Decisions

FSC preference

Forest Mapper support

n/a

Associated with High Risk of Sourcing from Ancient & Endangered Forests and other Controversial Sources

Risk is known and no action is taken

n/a

Initial action taken to adress risk

n/a

Sourcing risk has been resolved

n/a

Total:

Buttons 8.5

Chemical Management

The producer is addressing the pollution originated by the chemical substances used during the MMCF production process. It has joined a credible initiative that advances solutions on chemical management. (worth 2 points)

The producer is implementing, for all of its sites, pollution control technologies to limit their impact, developing an approach for the recovery of substances used or generated during the production of MMCF.

ZDHC Responsible Fibre Production Guidelines ZDHC Wastewater Guidelines (evaluated in 2020, worth 3 points) ZDHC Air Emissions Guidelines

Total:

0 Points

Risk of sourcing from Ancient & Endangered forests

Canopy has been engaged in dialogue with ITOCHU and Metsä Group since the adoption of the MMCF policy by ITOCHU in the fall of 2019. ITOCHU and Metsä Group own a Joint Venture MMCF plant in Finland, which is currently in the final stages of signing their contract to complete their first CanopyStyle Audit.

Of note, the Fashion Apparel Division of ITOCHU is a Japanese general trading company in the textile field. The company is a major distributor of fibre, raw materials, textile fabrics, lining, garment materials, and all kinds of MMCF materials not covered in this profile and ranking. The ITOCHU Corporation Textile Company and Fashion Apparel Division has adopted a policy; however, the impact of this division goes beyond the ITOCHU and Metsä Group’s Joint Venture. As such, Canopy is requesting a full list of suppliers for the overall MMCF business be made public by ITOCHU.  

In addition, ITOCHU’s role in the distribution of other forest commodities which may have an impact on Ancient and Endangered Forests and potential links to controversial sources is not covered in this profile and ranking. ITOCHU ’s other divisions that may impact forests globally include agra-business (palm oil), and pulp and paper sectors.

Key Improvements Required

  • Complete the audit process followed by the joint publication of the audit report.
  • Publish ITOCHU and Metsä Group’s Joint Venture sourcing information.
  • Prioritize the integration and sourcing of Next Generation Solution technologies and feedstocks for future expansion plans and new suppliers. At a minimum, use ForestMapper and complementary guidance documents such as the advice note of Ancient and Endangered Forests and the Dissolving Pulp Classification to ensure no sourcing from Ancient and Endangered Forests.
  • Use ForestMapper and complementary guidance documents such as the advice note of Ancient and Endangered Forests and the Dissolving Pulp Classification to ensure that all current and any new suppliers are not sourcing from Ancient and Endangered Forests or controversial sources.
  • Accelerate the use of Next Generation Fibre Solutions in order to meet or exceed the aspirational targets outlined in the Vision: 20% by 2021, and 50% by 2030.
  • Where virgin fibres are used and they are not coming from key priority Ancient and Endangered Forests, procure higher volumes of FSC 100% certified inputs from sources that have achieved FSC Forest Management certification on the ground.

Areas where the company is showing leadership

When prompted, ITOCHU and Metsä Group engages in dialogue with Canopy and customer brands. The companies have presented on a panel with Canopy to discuss Next Generation Solutions during a well-known industry conference. The ITOCHU and Metsä Group’s Joint Venture has shared with Canopy the sourcing information for their MMCF plant.

Number of viscose, lyocell and dissolving pulp mills + location and production volumes

ITOCHU and Metsä Group’s Joint Venture includes one plant in Finland that is now, in 2020, starting to produce MMCF. ITOCHU and Metsä Group each have 50% ownership in that mill. The current production capacity of the mill is 500 tons per year and it is expected to increase over time.

The supplier of the ITOCHU’s and Metsä Group’s Joint Venture MMCF plant is the paper-grade Metsä Fibre’s pulp mill in Äänekoski, Finland. The pulp mill and the MMCF plant are integrated.

This Hot Button profile and the ranking applies only to this joint venture as the portion of ITOCHU defined as an MMCF producer.