Management approach

Material topic: Biodiversity and ecosystems

[GRI 3-3]

The World Economic Forum¹ identifies the loss of biodiversity and ecosystem collapse as one of the top three global risks to people and the planet, alongside climate change. Investment in the protection of biodiversity is also critical to the success of Lenzing’s business, as wood is the most important raw material for Lenzing. The main source of potential impact from the Lenzing Group’s operations and supply chain is therefore connected to land use by forestry. Negative effects on biodiversity can arise from intensified utilization of forests. On the other hand, the positive effects of sustainable forest management on biodiversity and ecosystems are well known² and can be further explored and implemented. The company therefore continues to innovate in the fields of responsible systems, processes and products that mitigate risks to the natural environment. Lenzing’s innovation in fiber production also provides end-of-life solutions for textile and nonwoven products. In 2023, the company received reconfirmation from Scripps Institution of Oceanography at the University of California, San Diego that LENZING™ generic fibers (LENZING™ Viscose Standard, LENZING™ Lyocell Standard and LENZING™ Modal Standard) are biodegradable in marine environments³. Lenzing is part of the Textile Exchange’s Advisory Group for the Biodiversity Benchmark, which supports companies in understanding and mitigating their impact on nature.

Actual and potential negative and positive impacts, risks and opportunities

Positive

• The protection of biodiversity and ecosystems plays a crucial role in climate change mitigation
• Maintaining and improving the function of forests in their ecosystems while ensuring the long-term availability of wood as a raw material
• Cellulosic materials offer a biodegradable alternative to plastics, helping to reduce the impact of lost materials on ecosystems, water and soil compared to plastics, which have not been disposed correctly

Negative

Business relationships:

• Loss of biodiversity in poorly managed forest ecosystems
• The loss of biodiversity could also lead to a significant change in available wood species for fiber production
• Worst case scenarios consider potential breakdowns of entire forest ecosystems at the regional level and correspondingly high volatility in wood prices

Policies and commitments

• Strict Wood and Pulp Policy
• Bioenergy Policy
• Centrally managed wood and pulp procurement
• CanopyStyle Initiative
• Global Lenzing Supplier Code of Conduct
• Global Code of Business Conduct
• Group Environmental Standard
• Sustainability strategy “Naturally Positive”
• Lenzing Group Sustainability targets

Actions taken

• The Lenzing Group is part of the Advisory Group of Textile Exchange Biodiversity Benchmark
• Lenzing proactively participates in conservation projects to protect the world’s ecosystems
• Lenzing signed up to the Science Based Targets for Nature (SBTN) Corporate Engagement Group, and European Business Nature commitment
• CDP Forests, Climate Change, and Water Security: triple “A” rating, which is the best achievable outcome
• Lenzing achieves the highest Hot Button category by the Canopy Style initiative, the dark green shirt, for the fourth time
• Lenzing participates in the Circular Fashion Partnership
• Biodegradability of LENZING™ generic fibers (LENZING™ Viscose Standard, LENZING™ Lyocell Standard and LENZING™ Modal Standard) reconfirmed in 2023 by renowned marine research institute at the University of California, San Diego – effective alternative against environmental pollution from plastic waste
• Lenzing addresses biodiversity preservation through one of two approaches, depending on the global region:
  • Sustainably managed forests in the Northern hemisphere by Lenzing’s wood and pulp suppliers in Europe and North America
  • Plantation forestry is conducted mainly in the Southern hemisphere by Lenzing’s pulp supplier in South Africa and by the new pulp plant in Brazil
  • Using wood from sustainably managed semi-natural forests supports biodiversity
  • When sourcing from plantations, considerable efforts are made to set aside conservation areas to protect and maintain biodiversity
• By implementing circular thinking (e.g. closedloop, recovery) and high environmental standards (Group Environmental standards based on EU BAT and EU ecolabel certifications) in Lenzing’s operations, procurement and innovations, the company minimizes the impact on ecosystems
• Lenzing has been working for many years with NGOs, customers and partners along the downstream value chain to raise public awareness of biodiversity and take conservation measures to preserve it

Sustainability targets, measures and progress

• “Conservation project Albania” target
• “Conservation area Brazil” target
• “Conservation projects” target

Stakeholders

• Wood suppliers
• NGOs
• Textile Exchange (TE) Biodiversity Benchmark
• Forest certificate holders
• Policymakers
• CDP Forests
• Wood K plus
• Brand and retailers
• Investors
• Insurances
• Austrian Federal Forests (Österreichische Bundesforste, Öbf)
• Inspiring Cooperation Empowering People (ICEP)

Responsible

• Member of the Managing Board (Pulp)
• Senior Director Purchasing Wood
• SVP Commercial Affairs Pulp

Supporting

• Pulp Trading (PTG)
• Corporate Sustainability