[GRI 3-3f]
Canopy
Lenzing cooperates with the NGO Canopy and maintains a continuous dialog with members of the CanopyStyle initiative to ensure responsible wood sourcing and protect the world’s ancient and endangered forests from ending up in textiles and fibers.
Canopy publishes the Hot Button Report1, an annual ranking of all derived raw material wood cellulosic fiber manufacturers based on their wood and pulp sourcing performance, transparency and innovation. Today, more than 550 global brands with combined annual revenues of over USD 1 trillion are looking to source from “green shirt” producers. In recent years, Lenzing has shown continuous improvement in all of these criteria: Lenzing’s Wood and Pulp Policy has been aligned with the CanopyStyle initiative for years. Furthermore, since 2020, the geographical locations of pulp suppliers have been publicly disclosed in more detail. In Canopy’s latest Hot Button Report, published in November 2023 Lenzing received a dark green shirt for the fourth time.
Greenhouse Gas Protocol Land Sector and Removals Guidance
The Greenhouse Gas Protocol has launched a process to develop new standards or guidance on how companies should account for the following activities in their greenhouse gas inventories: carbon removal and sequestration, land use, land use change and bioenergy. One starting point for the initiative is the criticism of carbon neutrality for bioenergy and emissions from biogenic sources.
The outcome of these ongoing considerations, expected during 2024, will have a decisive impact not only on the cellulose-based fiber industry, but on the entire cellulose-based bioeconomy.
In Lenzing’s view, sustainably managed forests and plantations are key elements for climate change mitigation through carbon sequestration in the forest, harvested wood products, and the replacement of fossil-based materials that have high carbon footprints. Moreover, sustainably managed semi-natural forests constitute the most successful way of protecting biodiversity and enabling people to enjoy the benefits of forests in the form of recreation or micro-climate benefits (ecosystem services), for example.
Therefore, Lenzing gave inputs to the process through its industry association CEPI2, participated in the review group to comment on the draft guidance in 2022, and pilot tested the draft guidance until March 2023. In the course of the revision after the pilot test, Lenzing joined the extended Technical Working Group (“TWG+”).
Forest Europe, European and national forest strategies
The Forest Europe political process was initiated in 1990 by the Ministerial Conference on the Protection of Forests in Europe, which comprises 46 states, to promote sustainable forest management in Europe. A set of indicators grouped into six different criteria was developed to measure the sustainability performance of European forests and set targets for improvement3. Current efforts focus on climate change adaption4, water protection, and biodiversity5. As a major buyer of wood in Europe, the Lenzing Group supports these targets, which aim to ensure the continued and improved function of forests in their ecosystems while maintaining the long-term availability of wood as a raw material.
The Austrian Bioeconomy Strategy
The Austrian Bioeconomy Strategy was published in 20196. The current phase calls for the development of an action plan. Lenzing is represented in the bioeconomy platform and provided input on the strategy and the development of the action plan from 2019 to 2021 through workshops and an online consultation. The action plan aims to balance the need for mobilizing timber as a raw material for the bioeconomy with assuring and improving the vitality and resilience of forests through adequate forest management. The strategy is prominently placed in the government working program and its implementation is assured.
The underlying studies have shown a gap between increasing demand for renewable resources for materials and energy on the one hand, and the possible supply on the other, which is mainly limited by the available land area. Therefore, one area of the action plan that is particularly relevant to Lenzing, is the continued development of the biobased circular economy involving the recycling of biobased materials, to which Lenzing will contribute accordingly.
Lenzing activities in 2023 focused on networking activities, such as participation in workshops or discussions with other stakeholders. One important network in this context is Bioeconomy Austria as it has a strong focus on wood usage (in various areas) and links existing activities.
EU Deforestation Regulation (EUDR)
All relevant EU institutions adopted the EU Deforestation Regulation (EUDR 2023/1115) which was published in June 2023. The requirements of the regulation will be binding from December 30, 2024 onwards. Lenzing is already preparing for the implementation of this regulation. Internal processes were started and Lenzing is in continuous exchange with supply chain partners and relevant stakeholders, such as industry associations and certification schemes to fulfil the requirements. The current focus is on the interpretation of text and operational implementation. EUDR will increase the administrative workload which require additional resources to ensure full compliance by the end of 2024.
1 Lenzing – Hot Button Report (canopyplanet.org)
2 European Pulp and Paper Industry Association
3 Madrid Ministerial Declaration. 25 years together promoting Sustainable Forest Management in Europe, 7th Forest Europe Ministerial Conference, Madrid 2015. Available at: https://foresteurope.org/wp-content/uploads/2016/11/III.-ELM_ 7MC_2_2015_MinisterialDeclaration_adopted-2.pdf [Accessed February 15, 2021]
4 FOREST EUROPE 2020. Adaptation to Climate Change in Sustainable Forest Management in Europe, Liaison Unit Bratislava, Zvolen, 2020
5 https://forestbiodiversity.eu/ [Accessed February 15, 2021]
6 https://www.bmk.gv.at/themen/klima_umwelt/klimaschutz/biooekonomie/strategie.html [Accessed 8 March 2024]