Lenzing’s circular economy practices

[ESRS E5-2; GRI 3-3d, 306-2]

A summary of the “Actions taken” can be found in the management approach at the beginning of this chapter.

Lenzing pursues its vision by following three key practices that incorporate various elements of the circular economy into its circular business model. These practices are outlined in figure “Circular economy model” and described below:

• Natural circularity
• Resource-efficient products and technologies
• Developing commercial-scale recycling technologies

Circular economy model

Natural circularity

Origin

Lenzing’s fibers consist of cellulose, a naturally renewable polymer that is biodegradable and obtained from the renewable raw material wood. The wood is sourced from sustainably managed forests and plantations (as described in the “Raw material security” chapter).

LENZING™ Lyocell, Modal and Viscose Standard fibers are certified by TÜV Austria as biodegradable and compostable¹. The safe disposal of those fibers into the natural environment enables the cellulose material loop to close in alignment with the biological cycle. Natural circularity covers this biological cycle and also focuses on different end-of-life solutions.

When referring to a “circular product” of nonwovens, Lenzing is focusing less on just a “fiber solution”, but more on a circular value chain model, as requirements and usage of the end products differ between the various nonwoven end products. This means that the impact of Lenzing’s fibers needs to be considered with regard to raw material, performance, waste and end-of-life, delivering the highest value and causing the least impact on the environment. Lenzing is therefore following a structured approach for its new products to answer the market needs for most sustainable solutions.

End of life

By applying a more application-specific approach, Lenzing drives to look at various end-of-life solutions, such as biodegradability, recycling, or reuse, depending on the fiber, end-product and markets. Lenzing is therefore strategically involved in policy discussions as well as engaged in circular initiatives to further develop and advance the world’s change to a more holistic economy.

Resource-efficient products and technologies

Biorefinery for pulp production

In pulp production wood is turned into dissolving wood pulp for further fiber production. At Lenzing’s pulp sites, this is an energy self-sufficient process. Lenzing uses all raw materials efficiently, has high recovery rates for solvents and chemicals, and minimizes waste production. The Lenzing Group operates three biorefineries, in Lenzing (Austria), Paskov (Czech Republic) and Indianópolis (Brazil). As depicted in figure “Highly efficient use of the raw material wood”, Lenzing’s biorefinery technology converts wood into pulp, co-products and bioenergy. Lenzing sells the valuable biorefinery products to other industries, thereby making a major contribution to the maximum utilization of wood and process chemicals. For more detailed information, please see the “Resource outflows” section below.

Highly efficient use of the raw material wood

Surplus energy from pulp production is supplied as renewable energy in the form of steam and electricity. At the Lenzing (Austria) site surplus energy is directly powering fiber production lines. In Paskov (Czech Republic) and Indianópolis (Brazil) surplus energy is exported to the electricity grid and thereby supports the shift to renewable energy in these regions. This is a prime example of the cascading use of biomass and 100 percent utilization of wood without generating any waste.

Fiber production

Lenzing produces specialty fibers and innovates cellulosic fiber technologies. The high-quality fibers, viscose (rayon), modal, and lyocell, are supplied to the textile and nonwoven industry, as well as being used in industrial applications, and are valued for their special properties.

Furthermore, Lenzing’s lyocell process is a closed-loop solvent-based technology that allows the manufacturing of cellulosic fibers without chemical modification of the cellulose. The process follows a basic dissolution concept and allows 99.8 percent of the solvent to be recovered and fed back into the loop. This avoids waste and ensures high resource utilization, while reducing water consumption and emissions. Compared to conventional production, recovering solvents and chemicals avoids or reduces environmental impacts, such as GHG emissions – thereby supporting the mitigation of climate change. For additional information, please see the “Responsible production” focus paper.

Manufacturing steps in the textile industry

To address textile industry waste challenges, Lenzing has developed an innovative recycling technology, REFIBRA™. This technology utilizes pre- and post-consumer textile waste and turns them, together with virgin pulp, into new fibers.

Management of production waste

There are several contexts in which waste is generated in Lenzing’s facilities, such as within production processes, the packaging of procured goods and of sole fiber bales. Lenzing follows a waste hierarchy and avoids waste wherever possible. For more information, please see the “Waste management” section in this chapter.

To advance its circular economy, Lenzing uses recycled or reused materials whenever possible, instead of extracting virgin resources from nature. However, it should be considered that recycling processes can require a high amount of energy due to fiber blends and chemicals used in the value chain and therefore a holistic approach is needed (e.g. design for circularity, use of renewable energy and “low-impact” chemicals in the value chain) to truly mitigate climate change.

Commercial-scale recycling technologies

Lenzing is using two types of recycling, chemical and mechanical. Firstly, pulp from chemically recycled cotton textile waste is used to produce new fibers together with virgin wood pulp. Lenzing’s fiber technology REFIBRA™ utilizes a proportion of cotton waste as well as dissolving wood pulp as raw materials.

Lenzing continued to offer TENCEL™ x REFIBRA™ branded lyocell fibers with a minimum of 30 percent recycled content in 2023. While this creates a significant environmental improvement, it creates high-quality fibers with the same properties as fibers from virgin dissolving wood pulp. The fiber is available under the Recycled Claim Standard (RCS), certifying that all production processes in the entire supply chain have undergone the relevant steps to ensure the integrity of the final product.

Secondly, textile materials (pre-consumer/post-industrial, post-consumer) are also recycled mechanically by Lenzing. These textile fabrics are shredded down to the individual fiber level as far as possible. Because of the necessary and severe shortening of the fiber length in the recycling process the fibers lose some of their performance (e.g. strength), these mechanically recycled fibers therefore require carrier fibers to become spinnable. For more information, please see “Sustainable innovations” chapter.

Brands/retailers

Brands and retailers have the influence to offer products with recycled content to costumers, but also to make sure that their products are designed in a way that facilitate circularity in terms of durability, recycability and biodegradability. Lenzing runs an active research and development project to further improve the utilization of pre-consumer textile waste for the production of fully biobased and biodegradable fibers.

Consumer use

Lenzing strives to offer the best possible materials for products used by consumers and end-users, so that they can purchase products that satisfy their needs for performance and sustainability.

So, one of Lenzing’s goals is to recycle post-consumer textile waste more efficiently. Given the complexity of global value chains, Lenzing collaborates with various stakeholders with the clear goal to drive systemic change in the textile and nonwovens industry.

Partnerships

Transparency makes partnerships easier and provides a foundation for credible sustainability performance, especially the circular economy that will be part of the upcoming EU legislations. Gaining a deeper understanding of Lenzing’s suppliers and downstream customers is critical to minimizing the Lenzing Group’s overall environmental as well as social impact and putting it on the right track to achieve circular and net-zero GHG emissions by 2050 (“Long-term science-based net-zero target”). More information on transparency through digitalization is provided in the “Digitalization & cyber security” chapter.

Partnering for systemic change is one of the basic principles of Lenzing’s “Naturally Positive” sustainability strategy for jointly achieving targets with Lenzing’s major stakeholders. For example, to make it possible to acquire low carbon footprint chemicals such as “low-impact” caustic soda produced (by using renewable energy sources), Lenzing is actively engaging with its suppliers. Only with this supply chain wide engagement it is possible to lower the carbon footprint of Lenzing’s products.

Collaboration is therefore essential. Lenzing is part of several initiatives that strive to foster the circular economy in the fashion industry. More information can be found in the “Stakeholder engagement” section of this chapter.

Lenzing and partners launch Austria’s largest textile recycling project

In a collaborative effort to advance the transition to a circular economy, Lenzing partnered up in 2023: with logistics and sorting partner ARA (Altstoff Recycling Austria AG), the textile service provider Salesianer Miettex, the NGO Caritas, and the Swedish pulp producer Södra. Together, they are working to collect used household and clothing textiles for producing recycled pulp, ultimately leading to the production of new lyocell and viscose fibers.

¹LENZING™ fibers which are TÜV certified biodegradable (soil, fresh water & marine) and compostable (home & industrial) include the following products: LENZING™ Viscose Standard textile/nonwovens, LENZING™ Lyocell Standard textile/nonwovens, LENZING™ Modal Standard textile, LENZING™ Lyocell Filament, LENZING™ Lyocell Dry and LENZING™ Web Technology. An exception in certification applies for the fibers LENZING™ Lyocell Filament and LENZING™ Lyocell Dry, for which the necessary tests for confirming biodegradability in marine environment were not yet done or finalized.