Hengan International

Overall approach

6/10
- Overarching commitment on deforestation
  
  3/4
  
  Overall commitment
  
  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
  
  Do they have a commitment for other non-Forest 500 commodities, if so which?: NA
  
  "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"[...]"Hengan is prohibited from purchasing pulp raw materials from wood through following means: Illegal logging or illegal timber trade or forest products Forestry operations that violate tradition and human rights Destruction of forests of high conservation value Important conversion use of forest plantations or non-woodlands Introduction of GMOs in forestry operations "
  
  Open source document
  Open source document
- Signatory to an initiative tackling deforestation
  
  0/1
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "Hengan continues to promote responsible procurement for wood pulp and join hands with suppliers to propel the sustainable development of the supply chain for wood pulp to protect the forests that human beings rely for existence"
  
  Open source document
- Deforestation as a business risk
  
  1/1
  
  Business risk
  
  Yes
  
  1/1
  
  What revenue comes from industries relevant to each forest risk commodity?: NA
  
  What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: NA
  
  What type of risk is recognised?: Operational; Other
  
  Type of risk if Other. Also add any relevant details: Policy/legal
  
  "With increasingly stringent environmental laws, regulations and standards related to the national and local paper industry, and further tightened discharge control indicators, China’s paper industry is actively exploring a sustainable path of production. During the “14th Five-year Plan” period, China will accelerate the development of green and low carbon, improve the environmental quality, enhance the quality and stability of the ecosystem, and comprehensively improve the efficiency of resource utilization. This puts forward higher requirements for the paper industry to promote clean production, energy-saving and emission-reduction, as well as resource utilisation"
  
  Open source document
- High-level management of deforestion
  
  1/1
  
  High-level management
  
  Yes
  
  1/1
  
  How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Not specified
  
  "ESG Working Group: Maintain ESG reporting risk management and internal control system • Carry out ESG reporting and implement ESG strategies and goals • Collect ESG data and information regularly • Prepare ESG Report"[...]"Scope of the Report The ESG Report covers three major business segments of the Group – paper production, post-processing of paper and personal hygiene products (including sanitary napkins and diapers). Revenue from other business segments of the Group accounts for a very small percentage of total revenue and has a minimal impact on the overall performance of the Group, so it is not included in the scope of the ESG Report."
  
  Open source document
- Executive compensation linked to deforestation
  
  Executive compensation
  
  No
  
  0/0
  
  Does it disclose the percentage of pay at risk?: No
- Target to reduce emissions from land-use change
  
  0/1
- Reporting on emissions from land-use change
  
  0/1
- Disclosure of conservation activity
- Disclosure of reforestation activity
- Target to reduce emissions in scope 1/2
Commodity score

22/90
- Pulp & Paper
  
  22/90
  - Commitment Strength
    
    8/17
    - Commodity-specific deforestation commitment
      
      4/4
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "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"[...]"Hengan is prohibited from purchasing pulp raw materials from wood through following means: Illegal logging or illegal timber trade or forest products Forestry operations that violate tradition and human rights Destruction of forests of high conservation value Important conversion use of forest plantations or non-woodlands Introduction of GMOs in forestry operations "[...]"The paper products of the Group received the forest certificate by Forest Stewardship Council (FSC) in 2010, and pass the third parties’ certification audit every year. Six paper production subsidiaries of Hengan were FSC/CoC-certified in 2021. The percentage of certification was 100%"
        
        Open source document
        Open source document
      - Target date
        Current/achieved
        
        1/1
        
        Target date
        
        Current/achieved
        
        1/1
        
        What actions or steps are identified for time-bound implementation?: NA
        
        "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"[...]"Hengan is prohibited from purchasing pulp raw materials from wood through following means: Illegal logging or illegal timber trade or forest products Forestry operations that violate tradition and human rights Destruction of forests of high conservation value Important conversion use of forest plantations or non-woodlands Introduction of GMOs in forestry operations "[...]"The paper products of the Group received the forest certificate by Forest Stewardship Council (FSC) in 2010, and pass the third parties’ certification audit every year. Six paper production subsidiaries of Hengan were FSC/CoC-certified in 2021. The percentage of certification was 100%"
        
        Open source document
        Open source document
      - Interim target date
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        Interim target date
        
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        What date is given for the interim milestone?: NA
        
        "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"[...]"Hengan is prohibited from purchasing pulp raw materials from wood through following means: Illegal logging or illegal timber trade or forest products Forestry operations that violate tradition and human rights Destruction of forests of high conservation value Important conversion use of forest plantations or non-woodlands Introduction of GMOs in forestry operations "[...]"The paper products of the Group received the forest certificate by Forest Stewardship Council (FSC) in 2010, and pass the third parties’ certification audit every year. Six paper production subsidiaries of Hengan were FSC/CoC-certified in 2021. The percentage of certification was 100%. In 2021, 100% of pulp suppliers of Hengan obtained FSC or PEFC (Programme for the Endorsement of Forest Certification Schemes) certificates."
        
        Open source document
        Open source document
    - Commitment to a traceable supply chain
      
      0/7.5
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    4/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      Details of commitment: ILO; UN Declaration for HR; Discrimination; Child labour
      
      "公司禁止採購通過以下方式取得木材所生產的紙漿原料: 非法砍伐或非法木材交易或森林產品違反傳統和人權林業業務高保護價值森林的破壞行為森林種植園或非林地的重要轉換使用引進轉基因生物在林業業務違反國際勞工組織的基本原則和權利宣言The company prohibits the procurement of raw materials for pulp produced from timber obtained through: Illegal logging or trade in illegal timber or forest products violations of tradition and human rights Forestry operations violate the ILO's Declaration of Fundamental Principles and Rights. 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...The Group advocates internationally recognized human rights principles, including the United Nations Universal Declaration of Human Rights, and is committed to fulfilling its responsibility to uphold human rights in our business."
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      " 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.)"
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
    - Commitment to test Free, Prior and Informed Consent
      No
      
      0/3
    - Commitment to respect customary rights to land, resources, and territory
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    11/56
    - Reporting proportion of compliant volumes
      
      0/0
    - Reporting is independently verified
      No
      
      0/2
      
      Reporting is independently verified
      
      No
      
      0/2
      
      "Percentage of paper production bases with FSC/CoC certification: 100%" "The paper products of the Group received the forest certificate by Forest Stewardship Council (FSC) in 2010, and pass the third parties’ certification audit every year. Six paper production subsidiaries of Hengan were FSC/CoC-certified in 2021. The percentage of certification was 100%. 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"
      
      Open source document
    - Suppliers aligned with deforestation commitments across supply chain
      Yes, encouraged
      
      0/3
      
      Suppliers aligned with deforestation commitments across supply chain
      
      Yes, encouraged
      
      0/3
      
      "Hengan helps suppliers to promote forest certification, requires suppliers to comply with the Group's pulp raw material procurement standards, encourages suppliers to comply with FSC standards, and visits suppliers on a regular basis to advocate sustainable forestry management."
      
      Open source document
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Jurisdictional approach focused on sustainable land use
      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
      
      "Hengan is prohibited from purchasing pulp raw materials from wood through following means: Illegal logging or illegal timber trade or forest products. 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: Whether suppliers’ internal regulations meet the requirements of relevant laws and regulations"
      
      Open source document
    - Accessible grievance mechanism
      No
      
      0/4
    - Report volumes of commodity sourced/used
      No reporting
      
      0/3
    - Monitor compliance for labour rights and FPIC
      No
      
      0/5
    - Monitor compliance for zero tolerance approach and customary rights
      No
      
      0/5
    - Downstream: Reporting suppliers
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      Yes, for its suppliers
      
      2/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes, for its suppliers
      
      2/4
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA
      
      For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: NA
      
      What percentage of the company's supply chain volume does that represent?: 100%
      
      How is compliance monitored?: Certification; Internal monitoring and verification systems
      
      How frequently is compliance assessed?: 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. In 2021, 100% of pulp suppliers of Hengan obtained FSC or PEFC (Programme for the Endorsement of Forest Certification Schemes) certificates.... 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, and that present serious quality issues or violations of laws and regulations, etc. These suppliers will be removed from the list of qualified suppliers. In 2021, the Group eliminated 1 suppliers."
      
      Open source document
    - 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
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No
      
      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."
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: NA
      
      Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
      
      " The Group will initiate the freezing/withdrawal procedure against suppliers that fail daily inspection/on-site annual review and monthly/annual performance evaluation, and that present serious quality issues or violations of laws and regulations, etc. These suppliers will be removed from the list of qualified suppliers. In 2021, the Group eliminated 1 suppliers."
      
      Open source document
    - 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?: No
      
      How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: NA
      
      "In 2021, the Group eliminated 1 suppliers."
      
      Open source document
Commitment strength

8/17

Avg. score
Implementation and Reporting

11/56

Avg. score
Associated Human Rights Abuses

4/17

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

Household Products, Paper Packaging

Segments

Manufacturer

China

Company Type

Company type

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.

Full corporate sector performance data Forest 500 assessment methodology

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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.