Sateri Human Rights Policy

Sateri is committed 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”.

We embrace our corporate responsibility to respect human rights, including the rights of communities, and commit to:

Act in accordance with the following internationally recognized human rights conventions and standards:

1. International Bill of Human Rights1¹
2. UN Guiding Principles on Business and Human Rights
3. International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work

Comply with the local and national laws, including all relevant international treaties ratified by the Government of China. Should there be any conflict between the national and international laws and Company policy, we will adhere to the national laws while striving to respect and protect human rights.

Respect the ten principles of the United Nations Global Compact.

Refer to international standards and voluntary initiatives that can help address any unique set of human right challenges.

This Policy applies to all employees, business units and legal entities within Sateri Group. We will also engage with our key suppliers and others within our value chain in order to support them in meeting national and international human rights standards.

Regarding our employees, we commit to:

Prevent and eliminate all forms of forced labor, ensuring they are free to leave work or terminate their employment upon notice in line with mandatory and contractual regulations.

Ensure that all employees have employment contracts or terms and conditions as required by law.

Provide fair wages, working hours and benefits that meet legal or industry standards while engaging with the relevant experts and local stakeholders, such as labor unions.

Zero tolerance for child labor.

Zero tolerance for any inhumane treatment of employees, any form of forced labor, modern slavery, human trafficking, physical punishment or other abuse.

Promote equal opportunity and diversity in the workplace, including equal opportunity and participation for women, and seek to eliminate all forms of discrimination and harassment.

Protect the health and safety of our employees, and promote their wellbeing.

Provide a secure working environment.

Respect the right of all employees to join trade union and to negotiate collectively.

Managing Human Rights Impacts

We will strive to manage and mitigate human rights risks in our operations and supply chain through our existing management measures. We recognize that communities and their livelihood rights, and the rights of vulnerable groups such as women and migrant and temporary workers, are important in the locations where we operate.

We commit to:

Implement existing management measures to identify rights holders and their rights, and the potential and actual human rights impact of our activities.

Prevent or mitigate any identified or potential adverse human rights impacts related to our operations.

Provide for or cooperate in the timely and equitable remediation of any adverse human rights impacts through legitimate processes.

Stakeholder Engagement

We will engage with stakeholders and/or their representatives to identify and prevent risks of human rights violations.

We commit to:

Engage with relevant stakeholders and/or their legitimate representatives, through transparent dialogue.

Recognize the importance of diversity and cultural heritage in our communities, and understand the differing needs of groups within our communities.

Engage with our key suppliers on their human rights approach and broader social impacts.

Promote good relationships and support livelihoods with the local communities.

Grievance Mechanisms and Access to Remedy

We maintain a grievance resolution mechanism that is readily accessible via online and offline channels for all stakeholders for any potential concerns, including those related to human rights.

Employees can report through the confidential Whistleblowing hotlines with assurances of confidentiality. All grievances and concerns raised will be recorded and investigated to facilitate a satisfactory resolution.

We commit to:

Ensure that no one will be penalized for raising with management any suspected violations of our Policies, or any legal or ethical concerns.

Provide for and cooperate in effective remediation through timely, equitable and legitimate processes, including dialogue and engagement.

Regularly monitor the effectiveness of our grievance resolution mechanism.

Governance and Reporting

Respect for human rights is an integral part of our overall management approach and sustainability commitments. Our Executive Committee, comprising the President and senior leaders from across the business, ensures the implementation of a robust sustainability governance, including human rights, in Sateri.

We will regularly review and report on progress made in identifying, mitigating and remedying any case of violation. This will be done through our annual Sustainability Report, as well as on our website.

This Policy will be subject to regular monitoring and periodic review, aligned with our overall continuous business improvement.

Allen Zhang Wen Tao

Sateri President

November 2023

¹ Universal Declaration of Human Rights, International Covenant on Economic, Social and Cultural Rights, and International Covenant on Civil and Political Rights

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.