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.