Sateri (RGE Group)

Sateri is officially incorporated as Pacific Viscose Limited part of the Royal Golden Eagle (RGE) Group

Shanghai, China

10/35

Completion of CanopyStyle Third Party Verification Audits

Undertaking Annual Audits

Audits Public and Results Acted On

Audit risk results

n/a

Contribution to Conservation Legacies

A&E promotion

Public Collaborative Leadership

Influences Decision Makers

n/a

Legislated protection

n/a

Innovation via New Alternative Fibers

Partnerships

R&D Investments

Scaling to commercial products

n/a

Targets & timelines

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

Public sharing of supplier list

Forest of origin is public and mapped

Leaders in Supply Chain Shifts & Sustainable Sourcing

Producer Is Proactive

FSC preference

n/a

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

Initial action taken to adress risk

n/a

Sourcing risk has been resolved

Total:

Buttons 10

Risk of sourcing from Ancient & Endangered forests

In May 2018, Sateri publicly released their first annual CanopyStyle audit of their sourcing practices. The audit was comprised of a desktop review of their sourcing in addition to the site visit of their three mills in China, and the key findings include:

  • Confirmation of the presence of pulp with raw material from Indonesia and Malaysia, regions known for highly controversial industrial logging operations and major impacts on climate and endangered species habitat;
  • The need for further analysis to determine the risk level of the fiber from Brazil;
  • The presence of pulp for which the risk level cannot, at present, be determined as low risk of coming from Ancient and Endangered Forests and/or controversial sources, due to a current lack of information about the forest of origin of the material from Sateri’s dissolving pulp suppliers.

As part of the Royal Golden Eagle Group (RGE), Sateri is closely associated with APRIL, the Indonesian pulp producer and plantation company, and the Toba Pulp Lestari (TPL) mill in Indonesia. APRIL and Toba Pulp Lestari have both been associated with social conflict, pollution, deforestation and conversion of natural forests and peatlands. Sateri has taken a significant step by completely removing TPL fiber from its supply chain in September 2016 and engaging them about reforming their practices. They continue to purchase from APRIL.

Of note, in order to accurately reflect supply chain risk and threats to forests, producers that are confirmed by the CanopyStyle Audits as using pulp that is known to be at high risk of sourcing from Ancient and Endangered Forests and other controversial sources, such as Sateri, do show partially red shirt colors, even if they have been able to surpass a threshold of 10 buttons.

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

Key Improvements Required

Sateri is expected to eliminate and/or address areas of high risk of sourcing from Ancient and Endangered Forests or other controversial sources. 
The priority is for Sateri to develop an action plan with time-bound milestones for the company to use its influence with APRIL, their supplier in Indonesia, to address associated ecological and/or social risks and to monitor clear indications of progress and changes in APRIL’s practices/operations.

Sateri is one of the founding member of the new alliance of viscose producers in China, called the Collaboration for Sustainable Viscose in China or CV. Sateri is encouraged to use its leadership position within that group to ensure that the CV roadmap aligns its raw material sourcing criteria with the policy commitments of Sateri to avoid sourcing from Ancient and Endangered Forests.

Given growth projections, Sateri should proactively screen any future ventures against the ForestMapper and aggressively build next generation solutions into their fiber projections for the coming years.

Areas where the company is showing leadership

Sateri is actively engaged in dialogue with Canopy and customer brands.

The company is one of the first global viscose fiber producers to complete and release publicly the CanopyStyle Audit.

Sateri has also joined the ZDHC Roadmap to Zero Programme as a contributor.

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

Sateri owns 3 viscose mills in China, for an annual production capacity of 800 000 tonnes of viscose staple fiber.

• Sateri Jiangxi mill in China has a production capacity of 225 000 tonnes of viscose staple fiber.

• Sateri Fujian viscose staple fiber production facility has a production capacity of 290 000 tonnes.

• Sateri Jiujiang fiber mill has a production capacity of 285 000 tonnes.

• In January, 2015 Sateri Holdings Limited separated into two distinct corporate entities, “Bracell Limited” and “Pacific Viscose Limited”. Bracell Limited owns and operates timberland in Brazil and the Bahia Specialty Cellulose dissolving pulp mill in Bahia, Brazil. It is one of the largest manufacturers supplying more than 10% of the world’s dissolving pulp.

Sateri produces man-made cellulosic fiber (MMCF) and nonwovens, mainly standard viscose fibers and rayon.

Sateri uses a diversity of tree species such as eucalyptus, aspen, maples, jack pine, fir, Hemlock, spruce, pine, birch and others.