Low-Carbon Transformation in Progress | In-Depth Analysis of Sateri's Sustainable Development Journey

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In the textile industry, corporate green and low-carbon transformation has become an industry consensus. This article focuses on the sustainable development report and takes Sateri as a research sample to provide an in-depth analysis of its exploration and achievements in sustainable development .

The report found that Sateri successfully completed carbon verification at the corporate and product levels in 2022, improved the climate governance structure and climate data management system, and developed corresponding inventory manuals and carbon management system documents.

It is worth mentioning that Sateri has successfully launched three certified zero-carbon fiber products . At the same time, it has implemented a series of green and low-carbon transformation initiatives, including developing photovoltaic power generation projects in multiple locations and establishing a carbon management committee. As a green pioneer in the textile industry, Sateri actively implements the 2030 sustainable development vision, and its green and low-carbon development path has reference significance for enterprises in the industry.

01 Green and low-carbon pioneer

Sateri's 2022 Sustainability Report is prepared with reference to the Global Reporting Initiative (GRI) Sustainability Reporting Standards ("GRI Standards") and the United Nations Sustainable Development Goals (SDGs), and has been approved by SUD (TÜV SÜD) independent limited assurance. The report elaborates on Sateri's sustainable development philosophy, strategy, vision and annual progress in 2022. The reporting time range is from January 1 to December 31, 2022.

Sateri Industrial Distribution Plant Map

Sateri attaches great importance to sustainable development, is committed to protecting the climate and ecosystem, actively promotes corporate greenhouse gas emission reductions, makes its due contribution to the country's "3060" carbon reduction goals, and explores low-carbon development opportunities for the industry. New trend.

In terms of action, Sateri released the "2030 Sustainable Development Vision" and has released a total of 7 sustainability reports so far . In addition, in terms of corporate governance, Sateri has established a dedicated sustainability management department composed of senior managers and sustainability professionals to coordinate and promote Sateri's sustainable development work and form the Sateri Management Committee - Sustainability Development Department-sustainable development working groups of each factory/ sustainable governance structure of each functional department .

In terms of products, Sateri officially launched three zero-carbon fiber products , covering three brand series: EcoCosy®, Sateri Lyocell, and FINEX™. It also launched one-stop digital fabric certification and hangtags. As an important carrier for tracking product information, the management system is mainly applicable to EcoCosy®, FINEX® and Lyocell fibers.

Source: Sateri Sustainability Report 2022

02 Exploration of the road to sustainable development

Vision 2030

Sateri's 2030 sustainable development vision is divided into four parts, namely climate and ecosystem protection , closed-loop clean production , innovation and recycling , and inclusive growth , which correspond to the SDGs goals (7, 13, 14, 15), (6 ,12), (9,12,17), (1,4,5,8,17) .

Sateri Vision 2030

Among them, the most relevant to global climate change is " climate and ecosystem protection ". The goal is to achieve net-zero emissions in scopes 1 and 2 by 2050 , and to reduce greenhouse gas emissions in scopes 1, 2, and 3 by 30% by 2030 (baseline The year is no earlier than 2015).

Greenhouse gas emissions

Although Sateri did not disclose Scope 3 emissions in the main text, we can find detailed data on Scope 3 from Appendix 2. Sateri’s Scope 3 emissions from 2020 to 2022 are 13,000,954, 11,615,927, and 13,410,468 tons . carbon dioxide equivalent. Through comparison, it is found that the emissions of scope 3 are much higher than the emissions of scope 1+2.

There are three reasons why Scope 3 accounting is difficult:

First, there are many relevant parties involved and the accounting scope is wide . Scope 3 covers 15 categories and produces emissions outside a company’s operational boundaries.

Source: CDP research report

Second, data integration is difficult , and the upstream and downstream accounting of the industrial supply chain is very complex . For example, in order to reduce scope 3 greenhouse gas emissions, Sateri conducted research on the low-carbon transformation status of key categories of suppliers and the low-carbon development trends of corresponding industries, and actively sought low-carbon transformation strategies for multiple links in the supply chain.

The third is the high disclosure costs involved in carbon accounting and carbon disclosure . In fact, except for some large enterprises that have the ability to independently calculate Scope 3, other small and medium-sized enterprises often need to use professional third-party digital tools to carry out carbon footprint accounting and carbon emission management covering Scope 3 . For Chinese companies, the scope 3 disclosure ratio has always been at a low level.

In terms of innovation and recycling , Sateri plans to use waste textiles to produce products with 50% recycled material content by 2023, and increase this proportion to 100% by 2030. By 2025, 20% of purchased raw materials contain substitute or recycled materials. Recyclable materials.

In terms of closed-loop clean production , Sateri plans to pass the EU-BAT standard audit in 2023, reach the good level of ZDHC MMCF Guidelines in 2023, reach the best level of ZDHC MMCF Guidelines by 2027, and achieve a total sulfur recovery rate higher than 98% in 2025. Achieve zero waste to landfill in 2025, further significantly reduce water consumption and significantly improve water recycling rate in accordance with EU-BAT.

In terms of inclusive growth , Sateri focuses on building a safe, healthy and happy working environment and creating a better community life through empowerment and education.

In general, whether collecting carbon emission data or promoting carbon emission reduction, digital technology is inseparable . On the one hand, digital technology can reduce the cost of corporate carbon accounting to a certain extent. On the other hand, only with digital technology can we have data, and with data, companies can better manage carbon emissions.

Corporate Carbon Emission Reduction

Corporate carbon emission reduction is a long-term and arduous task. So, what has Sateri done right in terms of carbon emission reduction?

First , Sateri promotes the achievement of emission reduction targets by setting short, medium and long -term sustainable development goals .

In terms of short-term goals , Sateri prioritizes solving climate governance and data management problems. At the corporate level, Sateri has completed carbon verification at the corporate and product levels, improved the climate governance structure and climate data management system , and developed corresponding inventory manuals and carbon emissions management systems for factories. Management system documentation.

Source: Sateri Sustainability Report 2022

In terms of medium-term goals , Sateri hopes to reduce its own and value chain greenhouse gas emissions through energy efficiency improvement, renewable energy use, low-carbon product innovation, and low-carbon value chain cooperation, and achieve a 30% reduction in greenhouse gas emissions across the board by 2030 . promise . On the one hand, Sateri has launched three certified carbon-neutral products, and on the other hand, it has launched photovoltaic power generation projects at its three factories in Jiangsu, Linz, Nanjing and Yancheng.

In terms of long-term goals , Sateri focuses on continuing to promote carbon emission reduction plans and goals, maximizing the potential of renewable energy substitution, expanding the scale of low-carbon and recycling products, and building a low-carbon ecological network through extensive partnership cooperation to achieve 2050 net-zero emissions target . Specific actions are to continue to expand the use of renewable energy, promote energy structure adjustment, work with suppliers to explore low-carbon procurement and transportation practices, and work with downstream customers to expand the market for zero-carbon products.

Secondly, Sateri starts from its own carbon reduction and prioritizes independent emission reduction methods to minimize carbon emissions from its own operations. By building a systematic carbon data management system, carbon footprint accounting and carbon emission monitoring will be strengthened to achieve carbon emission reduction goals. In 2022, Sateri's external energy supply will increase, resulting in an increase in the 1+2 greenhouse gas emission intensity of the cellulose fiber plant, but the energy intensity of the cellulose fiber plant itself will decrease compared with 2021.

Finally, Sateri actively conveys the zero-carbon concept , sets an example , and empowers actions to promote the low-carbon transformation of the entire supply chain. In 2022, Sateri and other companies in the industry jointly established the Jiangxi Province Enterprise Voluntary Pollution Reduction and Carbon Reduction Alliance, assuming the responsibility of being the industry leader in green development. In addition , zero-carbon fiber provides other companies in the industry with a reference for low-carbon development direction and responds to the needs of downstream brands and retailers for low-carbon products . While inspiring consumers to perceive the vitality of products, it also increases their awareness of green and low-carbon products. Carbon concept concerns.

03 Sateri’s achievements in sustainable development

The textile and fashion industry has always been one of the industries with high carbon emissions. Under the global trend of responding to climate change, exploring zero-carbon products is one of the key directions to promote the low-carbon development of the industry

Sateri launched FINEX, a recyclable and renewable fiber brand using waste textiles as raw materials, and achieved commercial mass production, with its recycled raw material content reaching 50%. At the same time, in 2022, Sateri launched three zero-carbon products , all of which have obtained the carbon neutral PAS 2060 verification statement . Sateri FINEX® has obtained the Recycled Content Statement Standard (RCS) certification.

Three zero-carbon fiber products receive carbon neutral PAS 2060 verification statement

In terms of carbon information disclosure , Sateri tracks and discloses greenhouse gas emissions in its operations and value chain year by year through CDP, the world's leading carbon disclosure platform. EcoCosy® zero carbon fiber, carbon footprint evaluation shows that compared to ordinary fiber, each piece of Semir knitted pants using EcoCosy® zero carbon fiber can reduce carbon dioxide emissions by 30.47%.

Behind the success of zero-carbon products is the years-long efforts of Sateri's R&D team . In terms of patents, Sateri applied for 66 patents in 2022, a year-on-year increase of 10%, and granted 56 patents, a year-on-year increase of 37%. The cumulative number of existing patent applications reached 361, a year-on-year increase of 35%, and the cumulative number of existing patent authorizations reached 267, a year-on-year increase of 37%.

In terms of air pollutants , from 2020 to 2022, indicators such as total particulate matter emissions and total nitrogen oxide emissions from Sateri Power Plant continued to improve, falling by approximately 10% and 3% respectively compared with 2021. The cellulose fiber plant’s unit product sulfur emissions and total sulfur recovery rate have exceeded EU-BAT standards for three consecutive years.

EU-BAT comparison chart

Recently, the State Bureau of Municipal Supervision issued the "Implementation Opinions on Coordinating the Use of Quality Certification Services to Peak Carbon Neutrality" (hereinafter referred to as the "Implementation Opinions"). The implementation opinions mentioned that a national unified product carbon label certification system should be established in an orderly manner at the product level, and the certification catalog, certification implementation rules and certification labels should be uniformly formulated. In accordance with the principle of "mature one, establish one", gradually carry out product carbon footprint, etc. Carbon label certification ; gradually establish carbon-related management systems and service certification systems at the organizational and service levels.

Therefore, companies should fully realize the importance of carbon footprint information disclosure and actively improve the disclosure and certification of product carbon footprint information, thereby enhancing the international competitiveness and value of their brands.

04 Conclusion

At present, in the context of growing consumer and customer demand for low-carbon and circular products and fashion brands paying more and more attention to corporate climate risk identification, if companies cannot meet the green and low-carbon demand, they may reduce the market share of their products. Rate .

In addition, leading international fashion brands have extended climate and energy goals to the upstream of the value chain, urging suppliers to strengthen carbon emission reduction efforts, and requiring some suppliers to adjust their energy structure. For example, Nike’s supplier climate actions plan .

In the future, suppliers need to keep up with policies and markets and accelerate green and low-carbon transformation. As a well-known enterprise in the textile industry, Sateri's green and low-carbon transformation may provide reference experience for companies in the industry, explore new trends in low-carbon development for the industry, and help accelerate the sustainable development of the industrial chain.