Pulp Sourcing Policy

Sateri Sourcing Policy

Sateri commits to sustainable development and upholds our business philosophy of doing what is “Good for the Country, Good for the Community, Good for the Climate, Good for the Customer, and Good for the Company”.

Acknowledging the critical importance of forests and natural ecosystems in combating climate change, protecting and enriching biodiversity and natural resources, and sustaining community livelihoods, Sateri is firmly committed to eliminate deforestation^[1]and conversion^[2]in our operations and supply chain.

Sateri also commits to producing and sourcing all dissolving wood pulp only from responsibly managed forests. We will follow all applicable national laws to only source legal pulp material from supply chains with known origin and continue to commit to no illegal logging.

Sateri supports the wood fiber that is not sourced from Ancient and Endangered (including intact) forest lands such as Indonesia’s tropical forest, the Russian and Canadian Boreal forest, Coastal temperate rainforests, the Amazon and forests of West Africa.

Sateri seeks to promote circularity and resource efficiency, and will increase the proportion of dissolving pulp made from alternative feedstocks such as agricultural residues and recycled fiber in our sourcing.

This policy aligns with the principles and guidelines laid out in the United Nations (UN) Global Compact, the UN Guiding Principles for Business and Human Rights, the International Bill on Human Rights, and the International Labour Organization (ILO) fundamental conventions. This policy also adopts the principle of Free, Prior and Informed Consent (FPIC).

This policy applies to Sateri’s own operations, including those of our subsidiaries and mills, we own and/or manage, and all third-party pulp suppliers. It is implemented through a pulp sourcing due diligence system, including risk assessments, to evaluate and mitigate risks, and avoid material from unacceptable sources.

Sateri uses wood pulp that is:

1. We commit to obtaining dissolving wood pulp from low-risk sources which exclude these unacceptable categories, including:

illegally harvested or illegally traded;

harvested in violation of customary, traditional and human rights;

harvested from forests in which there are known activities in violation of workers’ rights and principles as defined in the ILO Declaration on Fundamental Principles and Rights at Work;

harvested in which high conservation values in forests or high conservation value areas are being destroyed or at risk of being destroyed due to management activities;

in areas in which there is conversion of natural forest to plantations or non-forest use;

areas where the use of genetically modified organisms in forestry operations exist or in areas where research takes place.

2. We commit to produce and source dissolving wood pulp that meets credible forest certification standards where feasible. This includes commitment to:

increase the proportion of certified material overtime, such as the Programme for the Endorsement of Forest Certification (PEFC), China Forest Certification Council (CFCC) and Forest Stewardship Council (FSC), as well as Chain of Custody certification;

implement and maintain Chain-of-Custody certification systems at all made-made cellulose fibre mills.

3. We commit to work with our suppliers to meet the requirements of this policy which includes:

supporting efforts to obtain forest certification in an efficient, cost effective manner;

providing technical assistance to advance sustainable forest management practices;

and where breaches occur, applying constructive engagement in working with our suppliers to resolve and prevent further instances of non-compliance.

4. To implement and demonstrate progress toward our commitments, Sateri further commits to:

risk assessment: assess deforestation, conversion and human rights risks within our operations, supply chains, and prioritize interventions in areas or with suppliers that are not low-risk.

supplier engagement: Work with our suppliers to address, prevent, mitigate, and where necessary, remedy any harms that result from actions that violate this policy.

monitoring: Track implementation and results through a robust and transparent monitoring mechanism.

conservation action: Identifying conservation solutions in critical forests, including the forest areas designated for conservation and restoration.

[1] Accountability Framework’s definition of deforestation,”: the loss of natural forest as a result of: a) conversion to agriculture or other non-forest land use; b) conversion to a plantation; or c) severe or sustained degradation

[2] Accountability Framework’s definition of conversion, including “gross conversion” Change of a natural ecosystem to another land use or profound change in the natural ecosystem’s species composition, structure, or function

More Information

Products

Our lyocell fibres originate from internationally certified plantations, delivering a product that is inherently sustainable, naturally comfortable and environmentally responsible.

Our Operations

We have four production bases across China, each equipped with world-class manufacturing technologies and environmental management systems that define modern industry standards.

Sustainability

THE LYOCELL COMPANY is committed to sourcing pulp exclusively from legally compliant forests and renewable plantations, adhering to a responsible wood procurement policy at every stage.