Zhejiang Fulida ( *** Of note, the Fulida Group sells viscose made from other producers. ) CLOSED

8/35

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

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 8

Risk of sourcing from Ancient & Endangered forests

The CanopyStyle audit in 2017 confirmed that Zhejiang Fulida had addressed and removed some known high risks in their supply chain. However, the audit was unable to determine an overall result of low risk of sourcing wood from Ancient and Endangered Forests due to lack of sourcing information in some cases.

There is no clarity at this stage as to whether Zhejiang Fulida has engaged its suppliers to gather additional sourcing information to be able to assess and address possible sourcing risks.

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 was assessed for risk in the 2017 audit.

The Fulida Group owns the Neucel mill (to be confirmed – currently shuttered), which is located in the endangered forest region of the Coastal Temperate Rainforest of Vancouver Island. As an immediate next step, the company is encouraged to support a conservation planning process for the area. Due to the risk associated with sourcing from this region, meaningful conservation planning must occur prior to sourcing.

Key Improvements Required

  • If and when the company re-opens to produce viscose, it will be encouraged to embark on its second CanopyStyle audit and engage its suppliers when there is lack of information about sourcing.
  • 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.
  • As mentioned above, the Fulida Group has a significant conservation opportunity in Vancouver Island rainforests, to initiate a conservation planning process.

Areas where the company is showing leadership

Fulida attended the 2019 CanopyStyle summit with brands, innovators and producers. In the past, the Fulida Group has used its influence with decision makers to contribute to conservation solutions in a critical landscape of hope, Canada’s Broadback Forest.

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