Zhejiang Fulida

The Fulida Group sells viscose made from other viscose producers

Hangzhou, China

9/35

Completion of CanopyStyle Third Party Verification Audits

Undertaking Annual Audits

Audits Public and Results Acted On

Audit risk results

Contribution to Conservation Legacies

A&E promotion

n/a

Public Collaborative Leadership

n/a

Influences Decision Makers

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

n/a

Forest of origin is public and mapped

n/a

Leaders in Supply Chain Shifts & Sustainable Sourcing

Producer Is Proactive

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

Initial action taken to adress risk

n/a

Sourcing risk has been resolved

Total:

Buttons 9

Risk of sourcing from Ancient & Endangered forests

Zhejiang Fulida executed the CanopyStyle audit at their HQ and their mill in China in July 2017. The closure of the audit report has been finally achieved in the fall of 2018, and Fulida made the results public jointly with Canopy and Rainforest Alliance. The CanopyStyle audit confirmed that Zhejiang Fulida has taken immediate action to remove risks in their supply chain that were known and identified. However, the audit was unable to determine an overall result of low risk of sourcing wood from ancient and endangered forests. An additional key finding of the audit is that the Fulida Group as a whole not only supplies brands with the viscose that Zhejiang Fulida produces itself, but also from supply acquired from other viscose manufacturers. Only the portion of Zhejiang Fulida’s supply chain has been assessed for risk in this audit.

The Fulida Group owns the Neucel mill (currently shuttered), which is located in the endangered forest region of the Coastal Temperate Rainforest of Vancouver Island. The company has shown interest in developing a conservation planning process for the area, and as an immediate next step is encouraged to place a significant portion of its forest landbase to moratoria from logging. Due to the risk associated with sourcing from this region, meaningful conservation planning must occur prior to being able to source from the area with any confidence of low risk.

Key Improvements Required

The company is encouraged to make progress in the areas identified for improvement within the audit report. This includes collecting forest of origin information including GIS coordinates and/or shape files from its dissolving pulp suppliers, which will allow for an overlay with the forthcoming Canopy ForestMapper of Ancient and Endangered Forests.

Given growth projections in the sector, the Fulida Group should proactively screen any future ventures and new supply against the ForestMapper and aggressively build next generation solutions into their fiber projections for the coming years.

As mentioned above, the Fulida Group has a significant conservation opportunity in Vancouver Island rainforests. Key next steps are a moratorium on key high carbon and high conservation value areas within its land base and initiation of a conservation planning process.

Areas where the company is showing leadership

Fulida is actively engaged in dialogue with Canopy and customer brands. The Fulida Group has used its influence with decision makers to contribute to conservation solutions in key landscapes of hope such as Canada’s Broadback forest, and is showing interest to actively contribute to conservation solution on Vancouver Island’s Temperate Rainforest.

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

The Fulida Group owns one viscose mill and one dissolving pulp mill.

• Zhejiang Fulida mill, capacity of 180 000 tonnes

• Neucel Specialty Cellulose Dissolving Pulp Mill, located in Port Alice, British Columbia, Canada, acquired in 2011

• In past years, the Fulida Goup transferred all its share of Xinjiang Fulida to Zhongtai
Chem Ltd, a viscose mill with productivity of 400 000 tonnes.        

 • The Fulida group is also known to be selling viscose made from other viscose producers.

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

Fulida uses a diversity of tree species such as birch, aspen, maple, Beech, Oak, Poplar, ash, spruce, pine and others.