Management approach

Material topic: Pollution

Lenzing acknowledges the critical importance of pollution prevention. The company actively monitors and manages the environmental impact of its operations, focusing on mitigating pollution risks throughout pulp and fiber production. Efforts extend beyond compliance, with Lenzing adopting stringent measures to minimize emissions, effluents, and waste generation. The implementation of advanced technologies ensures that pollution prevention is integrated into every step of the manufacturing processes. By proactively addressing pollution challenges, Lenzing aims to contribute to a cleaner and healthier environment, aligning with its broader commitment to sustainable development and responsible corporate citizenship.

Actual and potential negative and positive impacts, risks and opportunities

Positive

• Further improvement and development of closed-loop processes and recovery technologies
• Development of industry benchmarks and contribution to multi-stakeholder initiatives such as Zero Discharge of Hazardous Chemicals (ZDHC)
• Showing leadership in pulp and fiber production with low environmental and social impacts

Negative

Own activities:

• Pollution carries potential regulatory, technology, market and corporate reputational risks
• Pollution can affect the health of employees and community residents as well as the surrounding environment

Business relationships:

• Pollution can affect the health of employees and community residents as well as the surrounding environment

Policies and commitments

• Sustainability targets for the Lenzing Group
• “Naturally Positive” sustainability strategy
• Lenzing Group ISO 14001:2015 certification
• Group Policy for Safety, Health and Environment (SHE)
• Water Policy
• Group Environmental Standard
• Global Code of Business Conduct
• Global Supplier Code of Conduct
• Higg FEM

Actions taken

• Integration of pollution-related assessment tools into risk management
• Further development of Environmental Key Data (EKD) reporting to comply with updated GRI indicator and ESRS disclosure requirements
• Prachinburi (Thailand) and Heiligenkreuz (Austria) sites meet ‘aspirational’ level for MMCF ZDHC wastewater parameters
• Internal preparation started for implementing MMCF supplier reporting under the newly launched ZDHC Supplier to Zero Platform
• First ZDHC Gateway reporting of MMCF wastewater guideline v2 at all lyocell sites
• Environmental management system based on ISO 14001:2015 (including risk assessment and internal audits to ensure effectiveness of the measures implemented)
• Continuous development of Group Environmental Standard
• EUR 100 million site modernization in Purwakarta (Indonesia)
  • New carbon disulfide adsorption plant (CAP) operational – significantly reduced sulfur emissions to air
  • Completed construction of wastewater treatment plant upgrade
• Received EU Ecolabel for highest environmental standards at the Purwakarta (Indonesia) site
• Started construction of a new wastewater treatment plant at Grimsby (UK) site
• Completed construction of wastewater treatment plant upgrade at Mobile (USA) site
• Regular Global Quality, Environment, Safety & Health (QESH) meetings with management review

Sustainability targets, measures and progress

• “Air emissions” target
• “ZDHC viscose” target
• “ZDHC lyocell” target
• “Waste water” target
• “FEM” target

Stakeholders

• Zero Discharge of Hazardous Chemicals (ZDHC)
• Local communities
• Enforcing authorities
• Certification bodies
• Customers

Responsible

• CEO
• Site managers

Supporting

• Global QESH
• Performance.Improvement.Technology

Material topic: Chemicals & toxicity

[GRI 3-3]

Actual and potential negative and positive impacts, risks and opportunities

Positive

• Compliance with stakeholder expectations
• Helping to reduce downstream chemicals consumption through innovative technologies

Negative

Own activities:

• Potential negative health and environmental impacts in case of accidents or leakages
• Negative environmental and social impacts can lead to reputational damage

Business relationships:

• Regulatory changes and changing classification of chemicals
• Potential negative health and environmental impacts due to mismanagement of the supply chain

Policies and commitments

• Heartbeat for Safety and Health initiative
• SHE Policy
• Higg FEM 3.0
• Group Environmental Standard
• Chemical Management Group Standard
• Water Policy

Actions taken

• Safety & Health KPIs
• Emission KPIs
• Lenzing contributing to leading multi-stakeholder initiatives (ZDHC, Cascale (formerly SAC), EU-BAT)
• EcoVadis supplier assessment
• Overall EcoVadis score of Lenzing Group suppliers higher than the average EcoVadis score
• Supplier engagement to purchase caustic soda produced with renewable energy
• Environmental management system in accordance with ISO 14001:2015 (including risk assessment and internal audits to ensure the effectiveness of the measures implemented)
• Regular Global SHE meetings with management review
• Integral part of internal communication (SHE-topics prioritized)
• Group wide implementation of chemical management standard and roadmap

Sustainability targets, measures and progress

• “Air emissions” target
• “ZDHC viscose” target
• “ZDHC lyocell” target
• “Waste water” target
• “FEM” target

Stakeholders

• Zero Discharge of Hazardous Chemicals (ZDHC)
• Local communities
• Enforcing authorities
• Certification bodies
• Customers

Responsible

• Global Supply Chain/Purchasing
• Global QESH
• Site managers