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Sateri Shares Views on Canopy Hot Button Report

Canopy, a Canada-based NGO, releases a ‘Hot Button Ranking and Report’ yearly. The Report is intended to be a primary fibre sourcing tool for the fashion industry. ‘Buttons’ and coloured ‘shirts’ are assigned to major viscose and other cellulosic fibre producers based on a set of criteria designed by Canopy.

From time to time, our customers and stakeholders have asked us why we have not attained a ‘Green’ shirt despite being a leading global viscose producer. Below are some questions we frequently receive.

Why does Sateri continue to source from ‘ancient & endangered’ forests?

Canopy’s ‘high risk’ label of Sateri is not based on any factual, objective assessment in our view. The identification of ‘ancient & endangered’ (A&E) forests is wholly informed by Canopy’s online ForestMapper tool which identifies the majority of Indonesia and Malaysia as A&E. This is due to a significant lack of precision provided by the tool (low spatial resolution of 100kmx100km) which ignores the complexity of forest landscapes particularly in developing economies.

Notably, there is general lack of A&E forests as defined by the tool in Europe or other OECD countries. Compared to more broadly referenced and peer-reviewed geo-spatial frameworks like the World Resources Institute’s Global Forest Watch and the “Global Safety Net”, the ForestMapper tool is not well-recognised and supported in the forestry sector.

Why can’t Sateri source from other regions?

Sateri adheres to a strict pulp sourcing policy that upholds the principle of No Deforestation and Exploitation. This policy applies to all suppliers, regardless of sourcing region. The majority of our wood pulp comes from Brazil and Indonesia. We are proud to support meaningful livelihoods of workers and communities in these developing countries, and sustainable development that is inclusive; not exclusive.

How can Sateri help to address legacy issues around deforestation in relation to your suppliers?

All our supplier forestry concessions are licensed and operate within the rule of law. Every country has its own land use and economic development plan. Any allegation of deforestation must be verified, ground-truthed, and understood within the complexities of local conditions and risks such as illegal encroachment.

Beyond supporting no deforestation in our supply chain, we believe in active protection and restoration of natural forests and biodiversity. Our strategic supplier, APRIL, has a unique 1-for-1 conservation commitment backed by a decade-long USD100 million investment; where every hectare of production forests is matched by a hectare of protected forests. 

How is Sateri working with Canopy; when does Sateri expect to attain a ‘green shirt’?

We have engaged with Canopy for five years now. We responded positively to a number of Canopy requests, including adopting an action plan to address gaps in our supply chain, and a commitment to Next Generation textile fibre innovation and technology.

We remain open and keen to pursue constructive engagement that is sincere, fair, objective, and towards improved outcomes for ourselves and for the environment. Our strategic partner, APRIL, has also been in active and facilitated dialogue with Canopy in more recent years. 

Equally important, we believe that active engagement with all interested stakeholders in the value chain is beneficial and critical. We welcome stakeholders to reach out to us directly so they can receive accurate information and understanding.