[ESRS E1-1; GRI 3-3e]

Transition plan for climate change mitigation

In line with the Paris Agreement (1.5°C target) and the UN SDG 13, the Lenzing Group set ambitious science-based targets (SBTs) for reducing absolute GHG emissions in Scope 1 and 2 by 42 percent and in Scope 3 by 25 percent until 2030 (baseline 2021) and aims to achieve net-zero GHG emissions by 2050.

A cross-functional project team was set up under the leadership of the CPO/CTO. The project management team includes a steering committee to enable alignment across all decision-makers and functions, expedite decisions and ensure the involvement of different owners of capital projects, sites and functions.

A dedicated global project manager is operationally responsible for facilitating the roadmap preparation and bringing best practice examples to implement climate targets at facility and group level. Additionally, the manager is supporting the functions in integrating climate in business decisions.

To ensure engagement and empowerment, production sites and functions are responsible for developing and implementing roadmaps, so that they can effectively manage their portfolios and specific agendas in the medium- and long-term.

Strategy, targets and roadmaps

Lenzing’s corporate strategy, “Better Growth”, includes the climate change targets, which ensures that climate change is incorporated into the business strategy and decision-making.

To effectively achieve the SBTs, the global project manager has developed a high-level SBT roadmap for the Lenzing Group with potential site-level targets. These scenarios and site targets were aligned with the CPO, steering committee and other decision-makers of key functions and regions. This has provided guidance and direction and facilitated the development of roadmaps by each production site and function.

Integration in functions and projects

Operations: Each one of the nine sites is engaged to develop their targets and roadmaps. Some emission reduction projects implemented globally during the reporting period include:

  • Since Q4/2022, the site in Nanjing (China) has purchased 100 percent renewable grid electricity.
  • Renewable power supply to the Lenzing site from a 5.5 megawatt photovoltaic power station in Styria (Austria) started in Q4/2023 (PPA between Lenzing, Energie Steiermark and Enery)
  • Purchase of a 43 megawatt biomass powerplant in Heiligenkreuz (Austria) in Q2/2023.

Business management and sales: Lenzing places great importance in communicating the climate impacts of its products to customers and business partners. Results from product life cycle assessments are useful in conveying the climate benefits of Lenzing’s low-carbon fiber portfolio during sales processes (see “Sustainable innovations” chapter).

Procurement and supplier engagement: Lenzing engages and partners with key chemicals and pulp suppliers to reduce its Scope 3 emissions. The intention is to develop raw materials with lower GHG emissions and other impacts. Lenzing focuses on maintaining long-term relationships, helping suppliers achieve improvements and being part of their transitional journey by using their green products.

Strategy, mergers and acquisitions: Every capital project, whether brownfield or greenfield, has to align with the climate change strategy and targets. In this regard, some projects have been assessed for their benefits and contribution to climate change impact as part of the Managing Board’s decision-making process. Internal carbon pricing for key projects is used to support this process.

Finance and controlling: In the yearly medium-term plan (MTP) budgeting process, projects were assessed for their relevance to the climate transition plan as well as their GHG impacts. The results were implemented as additional decision criteria.

Levers to meet science-based targets

Based on technical feasibility, Lenzing deploys different levers to reduce Scope 1 and 2 emissions. They can be broadly grouped in four categories as seen in figure “Levers to meet science-based targets”.

Levers to meet science-based targets

Levers to meet science-based target (illustration)

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