Climate Change Data

Sateri

Climate Impact & Sustainability Data (2018, 2023)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:2,589,904 tCO2e/year
Scope 1 Emissions:2,519,119 tCO2e/year
Scope 2 Emissions:70,785 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:22,059 TJ/year (or 782 kg of standard coal equivalent per tonne product)
Water Consumption:43,020,000 m3/year
Waste Generated:285,696 tons/year (general) and 479 tons/year (hazardous)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Sustainable Products and Consumption
  • Energy Productivity and Climate Change
  • Mitigating the Impact of Emissions
  • Occupational Health & Safety
  • Empowering Employee Development
  • Contributing to Social Prosperity
  • Chemical Management
  • Responsible Sourcing

Environmental Achievements

  • Reduced SO2 emissions per unit product by 65.4% compared to 2017
  • Reduced NOx emissions per unit product by 36.6% compared to 2017
  • Reduced COD discharge per unit product by 36.1% compared to 2017
  • Reduced NH3-N discharge per unit product by 48.6% compared to 2017
  • Increased total wood pulp sourced from certified or controlled materials to 98.5% from 91% in 2017
  • All viscose mills obtained the Sustainable Textile Production (STeP) by OEKO-TEX® certification
  • All viscose mills completed the Higg FEM 3.0 environmental performance assessment

Social Achievements

  • Established the Sateri Learning Institute for employee development
  • Invested USD 121,800 in community investment
  • Employees contributed 3,746 hours to volunteer services

Governance Achievements

  • Released its third sustainability report detailing environmental, safety, and social performance

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce water use per unit of product by 20% compared with 2016 by 2020
  • Reduce LTIFR by 40% compared with 2016 by 2020
  • Control COD discharge within 50 mg/L at each mill by 2020
  • Control SO2 from boilers within 35 mg/m3 in all viscose mills by 2020

Environmental Challenges

  • Access to financing
  • Rising production costs
  • Stricter environmental policies and standards
Mitigation Strategies
  • Invested USD 72.5 million in upgrading a mill to enhance productivity, product quality, environmental, health, and safety standards
  • Launched a new viscose brand, EcoCosy®, with improved versions of traditional viscose products
  • Collaborated with stakeholders to develop a 2025 industry roadmap for sustainability

Supply Chain Management

Supplier Audits: 142 ASL suppliers and 235 new suppliers evaluated in 2018

Responsible Procurement
  • Pulp Sourcing Policy
  • Declaration of Commitment to Comply with the Sateri Pulp Sourcing Policy
  • Supplier sustainability risk assessment
  • Code of Ethics for Purchasing
  • Code of Ethics for Buyers
  • Code of Ethics for Suppliers' Purchasing

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
Transition Risks
  • Regulatory changes
  • Technological innovation
  • Market shifts
  • Reputational risks
Opportunities
  • Development of energy-efficient products
  • Improved spinning efficiency reducing energy consumption

Reporting Standards

Frameworks Used: GRI Standards 2016 (Core Option and part of Comprehensive Option)

Certifications: OEKO-TEX® STANDARD 100, MADE IN GREEN by OEKO-TEX®, USDA 100% Bio-based, STeP by OEKO-TEX®, Higg FEM 3.0, EU Seedling

Third-party Assurance: SGS

UN Sustainable Development Goals

  • SDG 12 – Sustainable Consumption and Production

Initiatives such as the “520 Social Responsibility Day” campaign promote environmental awareness and responsible consumption.

Sustainable Products & Innovation

  • EcoCosy® BV Series fibres
  • ColourTM viscose
  • Antibacterial viscose

Awards & Recognition

  • 2018 Golden Bee Excellent Corporate Social Responsibility Report Award
  • Annual Charity Practice Award at the China Charity Festival
  • One of the “Caring Companies” at China’s Third Student Financial Support Event
  • EcoCosy® ranked among the “Top 60 Responsible Brands of Chinese Corporate Citizens” in 2019
  • Golden Key Award for Green Contributions from the China Chemical Fibres Association’s LVYU Foundation

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:19,943,921 tCO2e/year
Scope 1 Emissions:5,742,059 tCO2e/year
Scope 2 Emissions:295,805 tCO2e/year
Scope 3 Emissions:13,906,056 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:45,859,514 GJ/year
Water Consumption:86,605,387 m3/year
Waste Generated:979,666 tons/year
Carbon Intensity:1.83 tCO2e/ton of Lyocell fiber

ESG Focus Areas

  • Climate and Ecosystem Protection
  • Closed Loop Production
  • Innovation and Circularity
  • Inclusive Growth

Environmental Achievements

  • Distributed photovoltaic projects achieved a year-on-year increase of 42% in total power generation.
  • Successfully piloted biomass fuel co-firing project.
  • 99.67% of wood pulp procurement from certified or controlled forests.
  • Supported 9 non-governmental nature conservation organizations.
  • Constructed 7 artificial wetlands, annually processing over 50,000 tons of domestic sewage.
  • All cellulose fiber factories passed the Higg Facility Environmental Module (FEM) third-party audit verification with an average score exceeding 80.
  • Cellulose fiber plants achieved a total sulfur recovery rate of 97.1%, exceeding the EU-BAT optimal value for four consecutive years.
  • Six cellulose fiber factories and two Lyocell factories achieved zero landfill for general solid waste.

Social Achievements

  • Achieved 100% employee comprehensive training coverage and zero major injury accidents and occupational diseases.
  • Since 2020, nearly 200,000 community residents have directly benefited from Sateri's community projects.
  • Over 50,000 students have directly benefited from Sateri's school education support projects.

Governance Achievements

  • Established a comprehensive quality management system, covering the entire product life cycle.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions (Scope 1 & 2) by 2050
Medium-term Goals:
  • Reduce greenhouse gas emissions by 30% by 2030
  • Achieve 100% recycled content in products made from recycled textiles by 2030
  • Support more than 300,000 people to improve their living standards through Sateri empowerment programs by 2030
  • Ensure all nearby community left-behind children receive quality pre-school intellectual enlightenment through Sateri education projects by 2030
Short-term Goals:
  • Achieve total sulfur recovery rate above 98% by 2025
  • Achieve zero waste landfill by 2025
  • Reduce accident lost-time injury rate to below 0.1 per 200,000 working hours by 2025
  • 100% of employees to have tailored career development plans by 2025

Environmental Challenges

  • Increasingly stringent emission standards and regulatory and information disclosure requirements.
  • Need for increased investment in clean production, energy efficiency improvement, and emission treatment technologies and equipment.
  • Growing consumer and customer demand for low-carbon and circular products.
  • Extreme weather events impacting factories in Fujian and Jiangxi.
  • Climate change impacting water supply and forest degradation.
Mitigation Strategies
  • All factories' power plants are included in the China National Emissions Trading Scheme.
  • Regular energy audits and third-party verification of greenhouse gas emissions.
  • Exploration of clean energy alternatives and technological upgrades.
  • Development of low-carbon fiber products, including FINEX® and three zero-carbon products.
  • Emergency plans and communication strategies for extreme weather events.
  • Sustainable dissolved pulp procurement and increased use of recycled pulp.

Supply Chain Management

Supplier Audits: Over 600 suppliers audited for sustainability

Responsible Procurement
  • Sustainable wood pulp sourcing
  • Supplier performance evaluation
  • Supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons
  • Flooding
  • Droughts
  • Changes in rainfall patterns
  • Sea level rise
  • Increased average temperatures
Transition Risks
  • Stricter emission standards
  • Regulatory changes
  • Market shifts
  • Reputational risks
Opportunities
  • Development of energy-efficient products
  • Increased demand for low-carbon and circular products

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001, Higg FEM, STeP by OEKO-TEX®, ZDHC MMCF Guideline, ISO 9001, PEFC™, FSC®, RCS, TUV OK Biodegradable Certification

Third-party Assurance: TÜV SÜD

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 15 (Life on Land)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 4 (Quality Education)

Initiatives align with various SDGs as detailed throughout the report.

Sustainable Products & Innovation

  • FINEX® recycled fiber
  • Lyocell fiber
  • EcoCosy®
  • Zero-carbon products

Awards & Recognition

  • CDP Climate Change rating B
  • Numerous awards listed in Appendix 4