Nanjing Chemical Fiber Co. NCFC

Nanjing, China

9.5/35

Completion of CanopyStyle Third Party Verification Audits

Undertaking Annual Audits

n/a

Audits Public and Results Acted On

n/a

Audit risk results

n/a

Contribution to Conservation Legacies

A&E promotion

Public Collaborative Leadership

n/a

Influences Decision Makers

n/a

Legislated protection

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

Aggressively increasing commercial scale

n/a

Adoption of Robust Forest Sourcing Policy

Policy adoption

Policy meets all CanopyStyle criteria

Traceability & Transparency

COC & supplier list completed

Track & trace system in place

n/a

Public sharing of supplier list

Forest of origin is public and mapped

n/a

Leaders in Supply Chain Shifts & Sustainable Sourcing

Producer Is Proactive

FSC preference

n/a

Forest Mapper support

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

Total:

Buttons 9.5

Risk of sourcing from Ancient & Endangered forests

Until the company completes the CanopyStyle verification audit and its results are made publicly available, Nanjing Chemical Fiber Company (NCFC) is considered at risk of sourcing from Ancient and Endangered Forests and other controversial areas.

Canopy recommends a considered approach by the marketplace at this stage.

Key Improvements Required

  • The immediate next step for Nanjing Chemical Fiber (NCFC) is to formalize agreement with the auditor to initiate the third party verification audit to verify progress in implementing its policy as well as other elements of the CanopyStyle initiative.
  • Use ForestMapper to ensure future expansion plans and ventures are not located in Ancient and Endangered Forests.
  • We recommend that the company move quickly to have 80-100% of new production capacity originate from Next Generation Solution feedstock and move assertively to substitute alternatives for any reliance on sourcing from Ancient and Endangered Forests by the end of 2020.
  • To prioritize the development of products that meet or surpass the current market expectation for viscose products containing at least 50% Next Generation raw material input.

Of note, the company has been delayed in undergoing the CanopyStyle audit because it was forced to halt production and relocate one of its mills to another province due to environmental regulation enforcement.

Areas where the company is showing leadership

When prompted, Nanjing Chemical Fiber (NCFC) engages in dialogue with Canopy and customer brands. Nanjing Chemical Fiber (NCFC) has shown leadership by publicly supporting ForestMapper and by listing its suppliers on its website in 2018.The company has also taken action to eliminate high risk sources in 2016-2017.

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

Nanjing NCFC owns two mills in China which produces viscose staple fibre and viscose filament yarn.                 

• The production capacity of viscose staple fiber in Nanjing is 85 000 tonnes.

•The production capacity for viscose filament yarn in Jiangsu is 18 000 tonnes.           

Of note, the company received a government request to shut down the coal-fired units of the thermal power plant at their viscose mill in Nanjing and has completed the shutdown of that viscose mill in October 2018. The mill will be relocated. The Nanjing NCFC mill in Jiangsu has resumed production in August 2018 and is now operational.

Nanjing NCFC produces man-made cellulosic fibre (MMCF) mainly standard viscose fibres and rayon.

The company has been unresponsive in providing such information. Like many other viscose producers, the company is expected to be sourcing a large variety of tree species.