Sustainable sourcing of wood and dissolving wood pulp

[GRI 308-2]

Wood and dissolving wood pulp are Lenzing’s most important raw materials. The Lenzing Group takes responsibility by focusing on sustainable sourcing covered by certifications, responsible consumption, and the highly efficient use of these valuable resources. Lenzing sources wood and dissolving wood pulp from semi-natural forests (as defined by the Food and Agriculture Organization of the United Nations¹ (FAO), which include naturally regenerating and planted forests of similar species composition as the natural forests in the area) and plantations, as all defined by FAO², which are not from primary, natural or ancient and endangered forests.

For more information on chemical supplier management please see the “Business conduct” chapter.

Dissolving wood pulp in the Lenzing Group

Processing wood into fibers requires a special quality of pulp called dissolving wood pulp. The Lenzing Group’s current dissolving wood pulp nominal capacities are 320,000 tons at the Lenzing site (Austria), 285,000 tons at the Paskov site (Czech Republic) and 500,000 tons at the Indianópolis site (Brazil). For the locations of Lenzing’s own pulp supplying factories, please see the “Lenzing Group locations” chapter.

In addition to its own dissolving wood pulp production, Lenzing maintains procurement of dissolving wood pulp in the global market, mostly under long-term supply contracts. On the other hand, a share of the own pulp production is traded on the global dissolving pulp market. In 2023, the Lenzing Group procured pulp from the following suppliers (in alphabetical order):

Eucalyptus, pine and spruce represent the predominant wood species used by Lenzing’s partners. However, beech, birch, ash, maple as well as other hardwoods and softwoods are also processed. The actual tree species vary depending on the region and quality conditions. Regardless of the species, all of the wood originates from sustainably managed forest operations that are certified or controlled according to the leading forest certification schemes. An overview of the most important tree species per region can be found in the Annex. Lenzing ensures that the bleaching process of all purchased pulp is totally chlorine-free (TCF) or elemental chlorine-free (ECF).

Lenzing Group’s Wood and Pulp Policy

In its Wood and Pulp Policy, Lenzing is committed to procuring wood and dissolving wood pulp exclusively from non-controversial sources. The supply of wood and pulp of a specified quality and quantity to all of the Group’s pulp and fiber production sites is an important part of the Lenzing Group’s core business. Lenzing strives to source wood and pulp exclusively from non-controversial sources, preferring suppliers participating in credible forest certification programs, in particular the Forest Stewardship Council^® (FSC^®) and Programme for the Endorsement of Forest Certification (PEFC).

Controversial sources include wood derived from:

• illegal logging or the trade in illegal wood or forest products
• the destruction of high conservation values in forestry operations, including ancient and endangered forests, and endangered species habitats
• plantations established after 1994 through significant conversion of natural forests or conversions to non- forest use
• the introduction of genetically modified organisms in forestry operations
• the violation of traditional, community and/or human rights
• any violation of the ILO Core Conventions as defined in the ILO Declaration on Fundamental Principles and Rights at Work

Regular risk assessments, audits, on-site visits, and independent third-party certification of sustainable forest management programs ensure compliance with the policy and Lenzing’s commitment to no deforestation.

If Lenzing discovers that it has sourced wood or dissolving wood pulp from controversial sources, it will first engage with the supplier to encourage practices consistent with Lenzing’s Wood and Pulp Policy. If the response is unsatisfactory, the supplier will be delisted with a reasonable lead time. Very few such cases have occurred in recent years. There were three in 2020, one in 2021 and none in 2022 and 2023.

For more information on responsible wood and pulp sourcing, please see the “Wood and dissolving wood pulp certifications” subchapter in the chapter “Business conduct”, and the “Wood and Pulp” focus paper.

As an extension to its Wood and Pulp policy Lenzing established a Bioenergy Policy in 2023. This policy ensures that biomass for energy use is not sourced from controversial sources, such as deforestation. For more information on this policy, please see the “Climate change” chapter.

Societal aspects

Lenzing’s Wood and Pulp Policy also refers to societal aspects, especially human rights, in wood sourcing covered by the wood certification systems used by Lenzing, FSC^® and PEFC. Together with national laws and the Lenzing Code of Business Conduct, they ensure that traditional, community, and civil rights are observed, and that labor conditions meet ILO Core Convention³.

¹ Carle, J., and Holmgren, P. (2003). Working paper 79. Definitions Related to Planted Forests. In: Food and Agriculture Organization of the United Nations (2003). Forest Resources Assessment Program Working paper series. Available at:http://www.fao.org/forestry/25853-0d4f50dd8626f4bd6248009fc68f892fb.pdf [Accessed 15 February 2021]

² FAO Forest Resource Assessment 2020, i8661en.pdf (fao.org), p.11

³ https://www.ilo.org/asia/decentwork/dwcp/WCMS_143046/lang--en/index.htm [Accessed 15 February 2021]