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
Key Improvements Required
As part of the RGE family of companies, Sateri needs to become a vocal internal advocate for meaningful, substantive change in the practices of its primary suppliers, APRIL and TPL.
Canopy encourages Sateri to provide evidence of concrete gains by APRIL and their suppliers in:
- Securing conservation of peatlands and other high-conservation value areas (HCV) and high carbon stock forests (HCS) with the free, prior and informed consent of impacted communities;
- Effectively resolving land claims and conflict with traditional and local communities, including halting any activity on disputed lands, and excising customary lands where consent has not been, or is not being, given; and
- Implementing concrete and effective measures to remediate or provide restitution for the company’s legacy of adverse social and environmental impacts, including meeting restoration requirements dictated by science through increasing APRIL’s stated target of a 1:1 restoration ratio.
In addition to ensuring an end to deforestation, peatland degradation, and human rights violations in their supply chain, Sateri must accelerate the commercial production of Next Generation fibre solutions. Sateri should provide documentation of its efforts to ensure that if/as RGE scales up Next Gen inputs, there is a verified corresponding and equal reduction in the use of peatland-sourced wood fibres. Next Gen should not become a niche product, but instead help reduce Sateri and their primary suppliers’ reliance on fibre sourced from drained tropical peatlands, HCV areas, and HCS forests and from community land areas.
Sateri should prioritize the integration and sourcing of Next Generation Solution technologies and feedstocks for future expansion plans and/or new suppliers. At a minimum, use it should ForestMapper and complementary guidance documents such as the advice note of Ancient and Endangered Forests and the Dissolving Pulp Classification to ensure no additional sourcing from Ancient and Endangered Forests as capacity expands.
Sateri and APRIL continue to prioritize marketing, financially sponsoring and participating in sustainability fora. Progress on sustainability by RGE companies should continue to be measured by concrete steps that lead to tangible outcomes which address core risks that affect climate, biodiversity, and communities on the ground.
Canopy will continue to seek solutions and report on actions that truly advance conservation, address the rights of impacted communities, mitigate the growing biodiversity and climate crises, and effectively address the legacy of adverse environmental and social impacts resulting from conversion of natural forests and peatlands to plantations after 1994.
Areas where the company is showing leadership
Sateri is actively engaged in dialogue with Canopy and customer brands about reducing the risk currently associated with its production. While Sateri has taken some first steps to respond to the call to address risk in their supply chain, the company and its main supplier, APRIL, have yet to embark on ambitious, transformational implementation of meaningful ‘’on the ground’’ change.
The company was one of the first global viscose fibre producers to complete and release publicly the CanopyStyle Audit and is interested in being audited regularly. Canopy, however, is recommending the second audit proceeds following further progress to address sourcing risk identified in its previous audit.
As noted in the 2019 Hot Button, Sateri’s parent company, RGE, announced an investment over ten years to support solutions in closed-loop manufacturing, with a percentage going to alternative cellulose or plant-based feedstock. With the introduction of the brand “Finex”, the company has launched production of viscose with recycled content. Their new product contains up to 20% recycled material. The remaining fibre remains high risk.
We are strongly encouraging any investment and exploration in Next Generation fibres be used as substitution for controversial fibre sources.
Canopy, APRIL and RGE have been in dialogue, exploring potential solution pathways and seeking common ground in addressing key issues and risks associated with the sourcing of forest fibre for dissolving pulp and viscose. Any progress of note will be communicated, if and when it emerges.
Number of viscose, lyocell and dissolving pulp mills + location and production volumes
Sateri owns five viscose mills and one lyocell facility in China, for an annual production capacity of about 1.4 million tonnes of viscose staple fibre and 20,000 tonnes of lyocell, respectively.
- Sateri (Jiangxi) Chemical Fibre Co Ltd in China has a production capacity of 230,000 tonnes of viscose staple fibre.
- Sateri (Fujian) Fibre Co Ltd viscose staple fibre production facility has a production capacity of 300,000 tonnes per annum.
- Sateri (Jiujiang) Fibre Co Ltd has a production capacity of 335,000 tonnes.
- Sateri (Jiangsu) Fiber Co. Ltd was established in 2019 after a one year lease and subsequent acquisition of Jiangsu Xiangsheng Viscose Fiber Co. in 2019. The mill has a production capacity of 300,000 tonnes per annum.
- Sateri (China) Fibre Co Ltd started production in end 2019 and has production capacity of 250,000 tonnes per annum.
- 20,000 tonnes of lyocell production per annum at mill in Rizhao, Shandong.
In 2015, Sateri Holdings Limited separated into two distinct corporate entities, “Bracell Limited” and “Pacific Viscose Limited”. Bracell Limited operates timberland in Brazil as well as 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. It is a strategic supply partner of Sateri.
Sateri produces man-made cellulosic fibre (MMCF) and nonwovens, including standard viscose fibres and lyocell.
Sateri uses a diversity of tree species such as acacia, eucalyptus, aspen, maples, jack pine, fir, Hemlock, spruce, pine, birch, and others.