Our commitment to help preserve and protect the environment is taken very seriously at all levels of the company and in every aspect of our operations.

Our expansion project in the Brazilian mill, which was completed by the end of 2008, incorporates state of the art design and the latest chemical recovery system that will recover and recycle up to 95% of the chemicals used in the cooking process, as well as increasing energy efficiency to reduce our dependency on fossil fuel. As a result, the excess energy generated or purchased by our plant is sold to the national power grid.

We implement best practice standards throughout our business and are in strict compliance with local environmental regulations.

We attach great importance to our sustainability responsibilities. We make products that are vital ingredients to multiple products in our daily lives, at significantly greater yields than other competing raw materials. Our products originate from self-sustainable and renewable plantations, implemented amidst natural conservation, legal reserve and permanent conservation areas as well as natural heritage private reserves. Consequently, our operation in Brazil has a positive carbon footprint.

Both the Brazil and China operations are certified ISO 14001 (environmental management).

Brazil

• Our plantation management focuses on eco-physiology of the forest and follows the best silvicultural practices.
• At least 20% of our plantation land is reserved for High Conservation Value Forests (HCVF), including a 90-kilometerecological corridor.
• We use eco-friendly cultivation techniques, and arrange harvesting and transport to increase water retention and soil fertility while minimizing soil erosion and wood wastage.
• We apply the Mosaic plantation concept, interspersing eucalyptus plantation with natural forest reserves to maintain indigenous flora and fauna biodiversity.
• We have a strict 'No Burn' policy
• We use our own nursery to cultivate our own seedlings. No genetic modification techniques are used.

In 2009 our company contracted international specialist Geoklock to survey greenhouse gas emissions at our plantation and manufacturing operation in Brazil.

Based on the World Resource Institute's Greenhouse Gas Protocol ("A Corporate Accounting and Reporting Standard - Revised Edition"), Geoklock found that BSC's emissions of carbon dioxide from our mill were 20 times less than the amount of carbon sequestered by its plantation.

Environmental Education Program

Our company conducts an ongoing Environmental Education Program involving lectures on environmental education at schools in the region as well as distributing native and ornamental species for planting. The aim is to educate people about eucalyptus and plantation, help them adopt sustainable practices on local farms and educate them about fire prevention and other key issues affecting their life in the field.

Initiatives under the program have included:

• Donating wood to the infrastructure of the Sauipe Park, managed by INCECC (Institute Ecological Corridor of Coconut Coast).
• Establishing environmental training in the district of Inhambupe (where our nursery is located). It focused on the recovery of degraded areas in Catuzinho, and stimulating selective trash collection in Aramari. The work is conducted in partnership with PANGEA (an NGO) and CORAL.
• Promoting the celebration of Environmental Day among students, teachers, community leaders and our own employees.
• Donating native seedlings to the community to help restore the banks of the Pitanga River.
• Planting 15,000 native seedlings surrounding the Petrochemical Pole, in partnership with local communities.
• Establishing an Odor Perception network with communities to monitor and control odorous emissions, and to support the management of emissions by promoting improvement in the processes.
• Conducting Ecological Seminars within communities, teaching them about native planting techniques, and the recovery of degraded areas.

China

Sateri was one of the first companies to sign the "1st Manifesto on Establishing Green Enterprises" in China. We also launched the "Sateri Cup Shanghai Undergraduate Environmental Protection Practices Contest" to support environmental education among undergraduates.

Our investment in environmental protection has received awards from various government agencies, including those from the Jiujiang Environmental Protection Bureau for four consecutive years.

Our Jiangxi plant also obtained the Swiss-based Oeko-tex certification, attesting that their viscose staple fiber products are free from harmful substances and in compliance with the human-ecological requirements under relevant regulations of the European Union.

All air and water emissions are controlled through scrubbers, condensers, biological treatment and recovery systems, and are monitored by government and independent entities.