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Metrics and targets

[ESRS E1-4; GRI 3-3e, 302-4]

See “targets” in the management approach at the beginning of this chapter. All of Lenzing’s sustainability targets can be found in the “General information” chapter.

Near-term science-based target

New target: To reduce Scope 1 and 2 absolute greenhouse gas (GHG) emissions by 42 percent and Scope 3 absolute GHG emissions by 25 percent until 2030 (baseline 2021)f,g

2030
New

 

Previous target: To reduce Scope 1, 2 and 3 (purchased goods and services, upstream and downstream transport, and fuel and energy-related activities) GHG emissions by 50 percent per ton of fiber and pulp sold by 2030 (baseline 2017)

2030
On track

Measure(s)

Lenzing reduces 40 percent of specific GHG emissions per ton of pulp and fiber sold (baseline 2017)b,e

2024
On track

 

Lenzing reduces 50 percent of specific GHG emissions per ton of pulp and fiber produced (baseline 2017)e

2027
On track

Progress made in 2023

Lenzing maintained its approach towards mitigating climate change by reducing its GHG emissions compared to baseline 2017. In 2023 Lenzing set up a new science-based target, which aligns with a 1.5°C scenario. This target has been approved by the Science Based Target initiative. The measure referring to a 40 percent reduction of specific emissions was successfully achieved in 2023.

 

 

 

Long-term science-based net-zero target

To achieve at least a 90 percent reduction in absolute GHG emissions (Scope 1, 2 and 3) (baseline 2021)f,g

2050
New

Measure(s)

Lenzing achieves 100 percent green electricity for four sites

2024
Achieved

 

Lenzing phases out coal in its Nanjing (China) operations

2022
Delayed

 

Lenzing installs on-site photovoltaic power generation at the Lenzing plant

2022
Achieved

 

Lenzing increases the share of renewable energy consumed by the Lenzing Group and supplies excess bioenergy from the pulp production facility in Indianópolis (Brazil)

2023
Achieved

 

Lenzing achieves Scope 1 and 2 carbon neutrality at its new lyocell fiber production site in Prachinburi (Thailand) by using 100 percent bioenergyh

2023
Delayed

 

Lenzing engages 20 key suppliers, by spend and CO2 impact, in order to reduce Lenzing’s Scope 3 emissions and incentivize the suppliers that help Lenzing offer more low carbon footprint fibers

Continuous
On track

 

Lenzing engages and enables 50 percent of ‘customers with approved SBT and commitment’ (textile and nonwoven brands/retailers as well as manufacturers working with LENZING™ fibers) to fulfill their ambition by providing information on low GHG-footprint specialty products such as TENCEL™, LENZING™ ECOVERO™ and VEOCEL™branded fibers

Continuous
On track

 

Lenzing runs a campaign to reach 50 percent of TENCEL™and VEOCEL™ customers (textile and nonwoven brands/retailers as well as manufacturers using the TENCEL™ and VEOCEL™brands) to promote the use of innovative lenzing fibers with environmental benefits such as low carbon intensity and to reduce reliance on fossil based materials wherever possible.

Continuous
On track

Progress made in 2023

Six production facilities procured 100 % renewable electricity. Gas pipe connections and constructions in Nanjing (China) are ongoing. The product carbon footprint platform of TfS was adopted internally as well as external trainings are taking place. Lenzing is in continous discussions with top suppliers and also shares its expertise for obtaining low-impact chemicals (e.g. green electricity and LCA). The site in Prachinburi (Thailand) has been facing some challenges to consistently receive 100 percent biomass energy due to the reliability of biomass co-generation plant of supply partner, however the site has achieved 100 percent of biomass energy for October and November. Therefore both parties have agreed to work out short term and long term technical solutions. The discussion and negotiation on securing biogenic energy to reach 100 percent consistently in the future is ongoing. Additionally, given current global economic situation, many businesses and end customers have been deprioritizing sustainability in favor of low cost sourcing and therefore have less willingness to pay for low-carbon products. Customer engagement has been taking place to position fiber products with low carbon footprint for supporting Scope 3 emissions reduction of customers.

Color code status   On track Achieved Delayed New target Measures implemented

b)

Relevant for the Managing Board long-term incentive (LTI) bonus targets

e)

These intermediate targets are part of the Lenzing corporate strategy on the way to reach science-based target by 2030.

f)

Scope 3 emissions include those from the harvesting of raw material wood, the production of purchased materials (chemicals & pulp), the production of fuels, the transportation of purchased raw materials & fuels, and the transportation of fibers to customers

g)

The target has been updated and approved by SBTi at the end of 2023. According to SBTi for net-zero target the remaining 10 percent of emissions can be carbon removals.

h)

This measure was marked as achieved in the report of 2022, however due to reliability issues of the supplier biomass boiler, this measure could not be achieved consistently throughout the year 2023.

Lenzing’s responsibility and science-based targets

Lenzing first set science-based targets (SBTs) in 2019. In 2023, Lenzing’s SBTs were updated to align with the most recent climate science. The previous targets were 2°C aligned and expressed as GHG intensity reductions (GHG emissions reductions per ton of pulp and fiber sold). The new targets are expressed as absolute GHG reductions aligned with the 1.5°C scenario, making them even more ambitious.

Science Based Target initiative (SBTi)

The Paris Agreement was adopted by consensus at the 21st United Nations Climate Change Conference (COP21) in 2015. The agreement’s aim is to combat climate change by keeping the increase in global temperatures compared to pre-industrial levels well below 1.5 degrees Celsius this century.

The Intergovernmental Panel on Climate Change (IPCC) published its Report in 2022 giving more clarity on the carbon reductions required to keep the increase to 1.5 degrees Celsius. According to this report, global net-zero CO2 emissions will be reached in the early 2050s in pathways that limit warming to 1.5 degrees Celsius and in the early 2070s in pathways that limit warming to 2 degrees Celsius.

The Science Based Target initiative (SBTi) is a collaboration between the Carbon Disclosure Project (CDP), the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The initiative defines and promotes best practices in science-based target setting. It independently assesses companies’ targets for consistency with the level of decarbonization required according to the latest science, in order to keep global temperatures from increasing more than 2 degrees Celsius above pre-industrial temperatures.

See the “Strategy” section for the levers to meet the science-based targets.

Energy and fuels

[ESRS E1-5; GRI 302-1, 302-2, 302-3]

The production volume of pulp and cellulosic fibers is directly linked to the amount of consumed energy and, hence, emissions related to energy use. In 2023, absolute primary energy consumption has significantly increased due to the inclusion Lenzing’s two new production sites in Indianópolis (Brazil) and Prachinburi (Thailand). Nevertheless, absolute fossil primary energy consumption did only increase slightly because of the high share of renewable energy (see table “Primary energy consumption of the Lenzing Group” and figure “Energy sources”).

The specific primary energy consumption has increased compared to previous years (see table “Primary energy consumption of the Lenzing Group”). This is mainly because of the higher specific primary energy consumption for pulp production in Indianópolis (Brazil) which is conditioned by the pulp production technology.

Fuel sources used in the Lenzing Group

Lenzing, Austria

Biomass, waste, natural gas and coal

Heiligenkreuz, Austria

Biomass, biogas and natural gas

Paskov, Czech Republic

Biomass, biogas and natural gas

Grimsby, UK

Natural gas

Mobile, USA

Natural gas

Nanjing, China

Coal and natural gas

Purwakarta, Indonesia

Coal and natural gas

Prachinburi, Thailand

Biomass and coal

Indianópolis, Brazil

Biomass and oil

Energy sources

Energy sources of the world, Lenzing Group and Lenzing site (bar chart)
Sources: IEA Energy Statistics Data Browser “World 2021”, Lenzing AG. Includes own energy consumption and energy from providers, excluding grid power, which is a minor fraction of total scope 1 and 2 energy consumption in the Lenzing Group. The production sites in Paskov, Grimsby, Mobile, and Heiligen-kreuz do not use coal as a fuel source in their own operations, whereas the Asian sites, i.e. Nanjing and Purwakarta, predominantly use coal.
Primary energy consumption of the Lenzing Group

Million GJ

2014

2021

2022

2023

Primary energy consumptiona

43.10

42.45

38.62

60.89

Fossil primary energy

23.39

21.78

18.51

19.64

Renewable primary energy

19.71

20.67

20.11

41.26

Specific primary energy consumptionb (Index in percentage based on GJ/t, 2014 = 100 %)

100 %

97.40 %

97.60 %

110.16 %

a)

Lenzing discloses both direct and indirect energy consumption. According to the Greenhouse Gas Protocol, Scope 1 relates to energy consumed directly by the Lenzing Group and Scope 2 concerns energy purchased from energy suppliers and from the public grid. Primary energy here includes all forms of energy such as electricity and steam. All energy sources such as fossil (coal, oil, natural gas) and renewable (biomass, waste fuels, hydro, wind, etc.) were included.

b)

Specific indicators are reported per unit of production. This applies to all specific indicators in this report, except for GHG emissions.

Lenzing’s greenhouse gas emissions

[ESRS E1-6; GRI 305-1, 305-2, 305-3, 305-4]

Lenzing’s carbon footprint

Lenzing Group’s carbon footprint (illustration)

Despite the significantly higher production volumes, absolute Scope 1 GHG emissions in 2023 increased only slightly compared to 2022 and absolute Scope 2 GHG emissions stayed on the same level. This is because of the high share of renewable energy and the implementation of various improvements (see the “Highlights in 2023” section in this chapter). Combined absolute Scope 1 and 2 GHG emissions increased slightly compared to 2022 but decreased significantly compared to 2021.

Absolute Scope 3 GHG emissions remained on the 2022 level but decreased strongly compared to 2021. The main reason for that is a higher share of low-carbon pulp input in the fiber production.

Likewise, absolute Scope 1, 2 and 3 GHG emissions are nearly unchanged compared to 2022 but strongly decreased compared to 2021.

Biogenic CO2 emissions in Scope 1 increased significantly because the new production site in Indianópolis (Brazil) has a high share of renewable bio-based energy.

Scope 1, 2 and 3 GHG emissions intensity (per ton of fiber and pulp sold) decreased significantly, nearly reaching the previous near-term science-based target for 2023.

Absolute greenhouse gas emissions of the Lenzing Groupa

Absolute emissions
(million tons CO2 eq.)

2017

2021 (base year)

2022

2023

 

 

 

Direct emissions, Scope 1

1.16

1.08

0.92

1.00

 

 

 

Indirect emissions, Scope 2

0.63

0.53

0.35

0.34

 

 

 

Total Scope 1 and 2 GHG emissionsb

1.78

1.61

1.27

1.34

 

 

 

Indirect emissions, Scope 3c

1.89

1.82

1.45

1.43

 

 

 

Total Scope 1, 2 and 3 GHG emissions

3.67

3.43

2.72

2.77

 

 

 

Total biogenic CO2, Scope 1

 

1.90

1.83

3.28

 

 

 

Absolut emissions index (new SBT, 2021=100 %)

2017

2021 (base year)

2022

2023

 

Near-term SBT 2030 indexd

Long-term SBT 2050 indexd

Scope 1 and 2

111 %

100 %

79 %

83 %

 

58 %

 

Scope 3

104 %

100 %

80 %

78 %

 

75 %

 

Scope 1, 2 and 3

107 %

100 %

79 %

81 %

 

 

10 %

a)

GHG accounting regarding GHG protocol using GWP potential for greenhouse-gases from IPCC Fifth Assessment Report (AR5 – 100 year). Scope 1 emissions factor source: measurements and Ecoinvent values. Scope 2 emissions factor source: suppliers. Scope 3 emission factor source: Ecoinvent, Ecotransit and supplier data.

b)

Includes both Scope 1 and 2 emissions of all greenhouse gases (CO2, CH4, N2O, HFCs, PFCs, SF6, NF3), expressed as CO2 equivalents. Scope 1 emissions are calculated based on emission factors from the EU Emission Trading System and Scope 2 emissions are calculated according to a market-based method. Scope 2 emissions according to the location-based approach are 0.64 mn tons CO2 equivalents in 2023.

c)

Includes categories 1, 3, 4 & 9 and covers 96.2 percent of emissions in Lenzing’s relevant Scope 3 categories.

d)

SBT target values according to required reduction of absolute GHG emissions, i.e. 42 percent in Scope 1 and 2, 25 percent in Scope 3 for the near-term SBT as well as 90 percent in Scope 1, 2 and 3 for the long-term SBT.
Specific greenhouse gas emissionsa

Specific emissions
(tons CO2 eq. per ton fiber & pulp sold) and indexb

2017c (base year)

2021

2022

2023

Specific Scope 1, 2 and 3 emissions

3.45

3.14

2.84

1.88

Specific Scope 1, 2 and 3 emissions index (2017 = 100 %)

100 %

91 %

82 %

55 %

 

 

 

 

 

Specific emissions
(tons CO2 eq. per ton fiber & pulp produced) and index

2017c (base year)

2021

2022

2023

Specific Scope 1, 2 and 3 emissions

2.47

2.28

1.99

1.45

Specific Scope 1, 2 and 3 emissions index (2017 = 100 %)

100 %

92 %

81 %

59 %

a)

The GHG accounting methodology is equivalent to table “Greenhouse gas emissions of the Lenzing Group”.

b)

This KPI is relevant to the Managing Board long-term incentive (LTI) bonus targets.

c)

The previous SBT was developed in 2018, hence 2017 has been chosen as baseline year.

[ESRS E1-7; GRI 305-5]

The implementation of various GHG emissions reduction projects helped to mitigate emissions, please see “Highlights of the year” for the 2023 projects and their reductions.

Internal carbon price

[ESRS E1-8]

In 2021, an internal carbon price (ICP) of EUR 75 per ton of CO2 eq. was implemented. The ICP comes on top of regulatory carbon pricing at different Lenzing locations (e.g. EU ETS). It was applied in the 2023 strategic investment planning process for CAPEX projects of over EUR 2 million. The purpose of the ICP is to mitigate future carbon risks, to encourage a preference of renewable fuels over fossils and to induce energy efficiency projects.

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