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  • Overall approach
    6/12
    • Overarching commitment on deforestation
      3/4
      Zero deforestation/Deforestation-free commitment or, for timber, pulp & paper companies only, commitment to well implemented harvest and no deforestation of HCV & HCS areas
      3/4
      Commodities (if applicable): 0
      "The company prohibits the use of materials produced from wood obtained from: Illegal logging or illegal timber trading or forest products [...] Forestry business violating tradition and human rights [...] Destruction of high conservation value forests [...] Significant usage conversion of forest plantation or non-forest land"
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "The company prohibits the use of materials produced from wood obtained from: [...] Destruction of high conservation value forests [...] Furthermore, the Group promotes forest certification of products, maintains the high proportion of certified raw materials procured, and gradually pushes forward “Forestry-pulp-paper integration” to protect natural forests."
    • Deforestation as a business risk
      1/1
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Operational
      "Extreme weather and sea level rise: Climate change will cause sea level rise, and coastal areas will be more severely affected by natural disasters such as floods and typhoon; it will also have adverse effects on economic and social activities such as agriculture, forestry, animal husbandry and fishing. These will bring risks to production operations and raw material supply of Hengan."
    • High-level management of deforestion
      1/1
      Yes
      1/1
      "The Group has established a top down ESG governance framework with three levels, which includes the Board of Directors, management and ESG working group. The framework clarifies the responsibilities of each level in terms of ESG supervision, management and execution to comprehensively promote the Group’s sustainable development." - There is a Environment and Climate Change Team which is responsible for overseeing paper production and post-processing of paper. The Forest Policy is disclosed in the ESG report. 
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
  • Commodity score
    28/88
    • Pulp & Paper
      28/88
      • Commitment Strength
        10/20
        • Commitment to protect priority forests
          5/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: FSC
            "In the future, the Group will properly increase the percentage of FSC-certified products according to client requirements, government regulations or market trend [...] The company prohibits the use of materials produced from wood obtained from: Illegal logging or illegal timber trading or forest products [...] Forestry business violating tradition and human rights [...] Destruction of high conservation value forests [...] Significant usage conversion of forest plantation or non-forest land"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "In the future, the Group will properly increase the percentage of FSC-certified products according to client requirements, government regulations or market trend [...] The company prohibits the use of materials produced from wood obtained from: Illegal logging or illegal timber trading or forest products [...] Forestry business violating tradition and human rights [...] Destruction of high conservation value forests [...] Significant usage conversion of forest plantation or non-forest land"
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to reduce use of virgin wood fibre
          4/5
          • Commitment details
            Yes
            3/3
            Commitment to reduce use of virgin wood fibre
            Yes
            3/3
            Type of commitment: Use of alternative fibres
            "Hengan always regards products’ ecological and environmental performance as the starting point of design and takes products’ safety and health, recyclability and reusability into consideration. The Group develops natural plant fibres such as bamboo and soybean fibre non-woven fabrics..."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Hengan always regards products’ ecological and environmental performance as the starting point of design and takes products’ safety and health, recyclability and reusability into consideration. The Group develops natural plant fibres such as bamboo and soybean fibre non-woven fabrics..."v
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; Child labour
          "The company prohibits the use of materials produced from wood obtained from: [...] Violation of the basic principles and declaration of rights of the International Labour Organisation [...] Suppliers’ protection of employees’ rights and interests (whether suppliers have passed occupational health and safety management system certification, office environment safety, whether incidents such as gender discrimination or child labour occurred to suppliers, fire training and drills, factory risk prevention, health check and job training, etc.)"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "Suppliers’ protection of employees’ rights and interests (whether suppliers have passed occupational health and safety management system certification, office environment safety, whether incidents such as gender discrimination or child labour occurred to suppliers, fire training and drills, factory risk prevention, health check and job training, etc.)"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        14/50
        • Reporting against commitments
          0/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "Achievements of 2020; [...] Percentage of paper production bases with FSC/CoC certification: 100% [...]  Six paper production subsidiaries of Hengan were FSC/CoCcertified in 2020. The percentage of certification was 100%. [...] Affected by the epidemic in 2020, water-borne transportation was not smooth and paper products of the Group sold to overseas customers declined sharply. Thus, about 10% of raw paper products manufactured and sold by the Group were FSC/CoC-certified, representing a slight decrease compared with that in 2019."
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.7
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC/CoC

            Which processes or groups does the company use for third party verification?: FSC/CoC
            "Achievements of 2020; [...] Percentage of paper production bases with FSC/CoC certification: 100% [...]  Six paper production subsidiaries of Hengan were FSC/CoCcertified in 2020. The percentage of certification was 100%. [...] Affected by the epidemic in 2020, water-borne transportation was not smooth and paper products of the Group sold to overseas customers declined sharply. Thus, about 10% of raw paper products manufactured and sold by the Group were FSC/CoC-certified, representing a slight decrease compared with that in 2019."
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "The company prohibits the use of materials produced from wood obtained from: Illegal logging or illegal timber trading or forest products..."; “The Group’s Quality Control Platform and Procurement Platform conduct supplier on-site assessment jointly. During the process of assessment, the Group involves environmental and social risks into assessment indicators and focuses on whether suppliers have passed Environment Management System Certification, whether environmental and sanitation conditions are qualified, whether regulations conform to the requirements of relevant laws and regulations..."; “The Group’s suppliers establish relevant internal policies and procedures to guide sustainable forest management and harvesting practices, tracing and verifying the origin and legality of all wood raw material worldwide.“
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          1-49%
          2/6
          Report verified volumes of commodity
          1-49%
          2/6
          What third-party verification is used?: FSC/CoC [Chain of Custody]

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 10%

          What is the certified volume?: 10%
          "Affected by the epidemic in 2020, water-borne transportation was not smooth and paper products of the Group sold to overseas customers declined sharply. Thus, about 10% of raw paper products manufactured and sold by the Group were FSC/CoC-certified, representing a slight decrease compared with that in 2019."  
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          "The Group regards irreplaceable suppliers with high amount of procurement and supplying key raw materials as key suppliers. During the supplier on-site evaluation jointly carried out by the Quality Management Department and the Procurement Platform, the Group incorporates environmental and social factors into the evaluation indicators, and mainly identifies the sustainable development risks of suppliers from the following aspects: [...] Suppliers’ protection of employees’ rights and interests (whether suppliers have passed occupational health and safety management system certification, office environment safety, whether incidents such as gender discrimination or child labour occurred to suppliers, fire training and drills, factory risk prevention, health check and job training, etc.)"
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Details of monitoring: Using certification

          How frequently is compliance assessed?: daily inspection/on-site annual review and monthly/annual performance evaluation
          "Hengan is committed to helping suppliers promote forest certification, requires suppliers to abide by the Group’s paper pulp purchase standards and encourages them to adopt FSC standards. Regular on-site supplier visits are arranged to promote sustainable forest stewardship. [...] The Group’s suppliers establish relevant internal policies and procedures to guide sustainable forest management and harvesting practices, tracing and verifying the origin and legality of all wood raw material worldwide. [...] The Group’s Standard Committee and Safety Management Committee monitor environmental issues to ensure environmental compliance and improve environmental performance.[...] The Group will initiate the freezing/withdrawal procedure against suppliers that fail daily inspection/on-site annual review and monthly/annual performance evaluation, that present serious quality issues, behave illegally, etc. ..”
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          What criteria does the policy specify for blacklisting or exclusion?: if they "fail daily inspection/on-site annual review and monthly/annual performance evaluation, that present serious quality issues, behave illegally, etc."

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "The Group conducts daily inspection and supervision on suppliers with quality/delivery issues to assist them in continuous improvement. The Group will initiate the freezing/withdrawal procedure against suppliers that fail daily inspection/on-site annual review and monthly/annual performance evaluation, that present serious quality issues, behave illegally, etc. These suppliers will be removed from the list of qualified suppliers. In 2020, the Group eliminated 9 suppliers."
        • Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: not disclosed
          "The Group conducts daily inspection and supervision on suppliers with quality/delivery issues to assist them in continuous improvement. The Group will initiate the freezing/withdrawal procedure against suppliers that fail daily inspection/on-site annual review and monthly/annual performance evaluation, that present serious quality issues, behave illegally, etc. These suppliers will be removed from the list of qualified suppliers. In 2020, the Group eliminated 9 suppliers."
  • Commitment strength
    10/20
    Avg. score
  • Reporting and Implementation
    14/50
    Avg. score
  • Social considerations
    5/18
    Avg. score

Profile

Hengan International is a Chinese manufacturer of paper products including sanitary napkins, disposable nappies and tissue paper. Hengan International Group Co Ltd is selected as a powerbroker for pulp & paper.

Sector
Industry sector 
Paper & packaging
Segments
Manufacturer
HQ
HQ 
China
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

Anerie, Junichi Baby, Forbody, H'yeas, Doria

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.