Tangshan Sanyou CanopyStyle audit results announcement

Chinese producers complete viscose raw material procurement risk audits audited by Rainforest Alliance

Tangshan (China), New York and Vancouver -- June 29, 2018

Today, non-profit environmental organizations Canopy and the Rainforest Alliance released the results of an independent audit report on Tangshan Sanyou Pulp purchases. The company is a leading cellulose fiber producer in China and was one of the first cellulose fiber companies in China to complete a CanopyStyle audit.

The audit report verifies that Tangshan Sanyou has taken steps to eliminate known and identified risks in the supply chain. However, because the raw material procurement information of Tangshan Sanyou pulp suppliers is not yet complete, the audit report cannot determine the low risk from raw endangered forest wood.

Tangshan Sanyou has more than a dozen pulp suppliers, covering dozens of countries in Asia, Africa, Europe, North and South America and other continents. The audit report has illustrated the complexity of identifying forest sources in the wood pulp supply chain. Tangshan Sanyou solution pulp suppliers need to provide more information, Tangshan Sanyou is also working to narrow the gap and improve the transparency of raw material procurement.

"Canopy welcomes Tangshan Sanyou's commitment to ending the sourcing of materials from endangered forests," said Nicole Rycroft, Canopy's executive director. "Tangshan Sanyou has taken action to address known supply chain risks and further increase transparency for all suppliers' forests of origin. This will help them deliver on the promise of CanopyStyle."

"We are proud that the Rainforest Alliance is part of the CanopyStyle initiative, which aligns with our mission to protect biodiversity and sustain a sustainable lifestyle." Richard Donovan, Forest Conservation Senior Advisor at the Rainforest Alliance, said: "Our job is to act as a trusted auditor to promote the sustainable use of non-timber forest products in the fashion industry and to independently assess the performance of the company. We completed the on-site assessment, analysis and reporting on the achievement of the indicators, and finally wrote the current audit report, highlighting the indicators achieved and areas for improvement."

"This audit is very important for us to understand the impact of our supply chain on forests around the world, to show our strengths and areas for improvement, and to become a more responsible company." Yu Hanjiang, deputy general manager of Tangshan Sanyou, said, "We hope that all our peers in the viscose production industry will adopt similar audits and assessments in the future, which will lead to more response and collaboration from dissolving pulp companies."

The audit results of Tangshan Sanyou are summarized as follows:

1. Has verified that Tangshan Sanyou has undertaken work and committed resources to fulfill policy commitments consistent with CanopyStyle's solutions and objectives.

2. As the raw material procurement information provided by some of Tangshan Sanyou's dissolving pulp suppliers is incomplete, there is an information gap in the supply chain.

3. The procurement area of some suppliers is close to the original endangered forests.

4. After the completion of the audit, Tangshan Sanyou has been working hard to collect, identify and evaluate wood origin information.

5. Tangshan Sanyou shall continue to implement internal audit procedures to identify, confirm and track the forest origin of most suppliers, as well as related certifications.

The audit report suggests that Tangshan Sanyou can improve the results of the annual audit through the following measures:

· Continue to ask the dissolving slurry supplier for information related to the forest of origin, including GPS positioning, GIS coordinates and/or Shapefiles data, for future comparison and analysis with Canopy ForestMapper's original endangered forest map.

· Ensure that suppliers hold certification, preferably with FSC certified forest materials.

Sourcing certified materials to further ensure that raw materials are sourced from certified suppliers and supply chains. Tangshan Sanyou is increasing its purchases of certified pulp.

· Participate in future periodic audits and/or random site visits to ensure that Tangshan Sanyou continues to implement procurement policies and comply with CanopyStyle action requirements.

The audit used a risk assessment, based on verifiable documentation, to assess that the wood and pulp used by Tangshan Sanyou for the production of fabrics and fibers such as viscose and rayon met the audit framework and procedures developed by Canopy in conjunction with the auditor Rainforest Alliance.

To view the audit report of Tangshan Sanyou, please click here

To download Tangshan Sanyou's audit report, please click Canopy Audit Report.pdf CanopyStyle2016 Audit Report.pdf

For more information please contact:

Laura Repas    Brittany Wienke    Bernie Chou

Canopy     Rainforest Alliance  Tangshan Sanyou

laura.repas@canopyplanet.org bwienke@ra.org   258596939@qq.com

+ 1-416-729-7484 + 1-646-452-1939 +86 315 8333911

Rainforest Alliance

The Rainforest Alliance is an international non-profit organization dedicated to protecting forests and natural resources while improving sustainable lifestyles by transforming land-use, business and consumer behavior. 2017 marks the 30th anniversary of the Rainforest Alliance. The CanopyStyle audit was completed by the Rainforest Alliance's certification division, which has provided professional certification and assurance services for agroforestry since 1989. For more information about the Rainforest Alliance, please visit www.rainforest-alliance.org or https://www.rainforest-alliance.org/business/.

Canopy

Canopy is an international non-profit environmental organization dedicated to protecting forests, species and the climate. Canopy has more than 750 partners working together to develop innovative solutions that improve the sustainability of the fiber supply chain while protecting the world's pristine, endangered forests. Canopy partners include H&M, Sprint, Penguin Random House, Zara, TC Transcontinental, Globe and Mail, and Scholastic. Canopy relies on sponsorship from like-minded people. www.canopyplanet.org

The Three Friends of Tangshan

As one of the world's leading viscose manufacturers, Tangshan Sanyou has an annual production capacity of 800,000 tons. Tangshan Sanyou has always adhered to the concept of green development and is committed to building an environmentally friendly enterprise. Sustainability is always an integral part of our daily production. A pulp procurement policy was implemented in 2015. Has passed the STeP by OEKO-TEX®,STANDARD 100 by OEKO-TEX®,FSC certification. As the initiator, Tangshan Sanyou has joined the "Green Development Alliance of recycled cellulose fiber industry" to promote green sustainable development with other members, and has completed the 2015 version of the quality management system and environmental management system in 2018, and once again passed the ISO9001, ISO14001, OHSAS18001 audit.