lenzing.com

Sustainability targets, measures and progress

[GRI 3-3f]

Lenzing has set Group sustainability targets for the most important challenges in each of its strategic focus areas. To increase transparency, the corresponding implementation measures and target progress made during the reporting year are described below. There could be potential conflicts that can arise between different material topics and their respective targets in a company. For example, raw material security and biodiversity and ecosystems can be competing as the sourcing of wood from critical (ancient and endangered) forests could lead to potential loss in biodiversity. As a responsible company, Lenzing is committed to procuring wood and dissolving wood pulp exclusively from sustainably managed forests and plantations. Furthermore, Lenzing strives to create positive impact on biodiversity in different regions of the world through conservation projects. Another example is the conflicting targets of water stewardship and climate, as the recycling of water is energy intensive. To counteract this conflict Lenzing is currently working on setting a water target in regions where water is scarce. This means, the company takes a context-based approach to target setting in order to address and prioritize most relevant topics for a specific region.

Sustainability targets, measures and progress

 

 

Target year

SDG

Sustainable innovations

Air emissions

To improve the Lenzing Group’s specific sulfur emissions by 50 percent by 2023 (baseline 2014)a

Measures implemented

12

Measure(s)

Lenzing implements a carbon disulfide adsorption plant (CAP) upgrade at the Purwakarta plant (Indonesia)

2023

 

Progress made in 2023

The carbon disulfide adsorption plant (CAP) in the Purwakarta plant (Indonesia) was succesfully implemented and started operating in July 2023. Viscose fibers from this plant are now EU Ecolabel certified. All measures have been impleamented for this target, however to achieve the target, the measures need to operate for a whole year.

Textile recycling

To offer viscose, modal and lyocell staple fibers with up to 50 percent post-consumer recycled content on a commercial scale by 2025

2025

9, 12, 17

Measure(s)

All fibers with recycled content offered by Lenzing contain a share of post-consumer waste

2022

 

Lenzing increases the recycled content from 30 to 40 percent for fibers produced with REFIBRA™ technology for textiles

2023

 

Lenzing introduces its viscose and modal fibers with REFIBRA™ with a minimum of 30 percent recycled content

2023

 

Lenzing and Södra collaboration will recycle 25,000 t of textile waste per year at Södra’s Mörrum siteb

2025

 

Progress made in 2023

The joint efforts with Södra to develop a recycled pulp with a share of post-consumer waste on an industrial scale were again successfully continued and also honored by the ITMF-Award. Project plans have been updated to increase the intended volume of the new production line from 25 kt/a to 50 kt/a feedstock and start-up of this plant is forecasted for 2027.
Overall, Lenzing continued with product and process development towards reaching the key target for 2025. One key milestone was the introduction of a viscose fiber with REFIBRA™ technology with 20 percent recycled pulp from post-consumer cotton textile waste, with the goal of further increasing this percentage in the near future. The biggest challenges remain to adapt the characteristic of recycled pulp for industrial fiber production and also to seek solutions to make recycled pulp processable on industrial scale.

Circular Business Model

To innovate a new circular business model by closing the loops for post-consumer materials and partner with 25 key supply chain companies by 2025

2025

9, 12, 17

Progress made in 2023

Some highlights in 2023 were: the launch of a recycling project with ARA and other partners, participation in international projects to improve sorting and traceability of fibers and the cooperation with Södra has been granted a LIFE funding and has been awarded with the ITMF award for International Cooperations. For more information please see the “Resource use and circular economy” chapter.

ZDHC viscose

To achieve ‘aspirational’ MMCF level for ZDHC wastewater and air emission guidelines at Lenzing viscose facilities by 2024

2026

6, 12

Progress made in 2023

Lenzing viscose sites have continuously implemented the ZDHC MMCF guideline in its revised version 2.2. The implementation of the waste water guideline continued in 2023. The implementation of the air emission guideline progressed according to planning, however, due to the delay of the official launch of the ZDHC Supplier Platform for man-made cellulosic fibers (MMCF), the reporting on the Platform will start in the first half of 2024. The target to achieve ‘aspirational’ level is now reassessed to 2026 due to supply chain disruptions stemmed from global issues and technical challenges.

ZDHC lyocell

To achieve ‘aspirational’ MMCF level for ZDHC wastewater and responsible production guidelines at Lenzing lyocell facilities by 2028b

2028

6, 12

Measure(s)

First ZDHC Gateway reporting of MMCF waste water guideline v2 at all lyocell sitesc in 2023

2023

 

First supplier platform implementation and reporting of MMCF Guideline v2 – Responsible fiber production at all lyocell sitesc in 2023

2023

 

Lenzing lyocell sitesc achieves ‘aspirational’ level for wastewater and responsible production

2025

 

Lenzing site in Grimsby (UK) achieves ‘foundational’ level for wastewater and responsible production

2025

 

Lenzing site in Grimsby (UK) achieves ‘aspirational’ level for wastewater and responsible production

2028

 

Progress made in 2023

The implementation is on track with all lyocell sites registered for reporting in 2023. However, due to the absence of ZDHC certified lab in USA and UK, the waste water testing at these two sites could not be completed. The sites completed the reporting on the ZDHC gateway have all achieved aspirational level. Requirements according to the responsible fiber production guideline will be reported from 2024 onwards after the publication of the ZDHC supplier platform for MMCF in beginning of November 2023.

 

 

Water stewardship

Waste water

To improve Lenzing Group’s specific wastewater emissions (chemical oxygen demand (COD)) by 20 percent by 2024 (baseline 2014)a,b

2024

6, 12

Measure(s)

Lenzing implements a wastewater treatment plant upgrade at Purwakarta site (Indonesia)

2023

 

Lenzing implements a new wastewater treatment plant at Grimsby (UK) site

2024

 

Progress made in 2023

The building of the wastewater treatment in Purwakarta (Indonesia) took place in 2023, the start-up is planned for the beginning of 2024. The wasterwater treatment plant project in Grimsby (United Kingdom) is on track and will come into operation in 2024.

Raw material security and biodiversity

Conservation project Albania

To implement a conservation solution of 20 ha in Albania in combination with a social impact project by 2024

2024

1, 15

Measure(s)

Lenzing reforests 20 ha of degraded land in Albania

2024

 

Lenzing establishes a training center for local communities in Albania

2024

 

Lenzing supports interdisciplinary vocational trainings and school partnerships in Albania

Yearly

 

Progress made in 2023

The scope of the project has been significantly expanded to other countries in Western Balcan to include the Kosovo, North Macedonia and Montenegro. This expansion was funded by Austrian Developmet Agency (ADA) and Lenzing, and is coordinated by Inspiring Cooperation Empowering People (ICEP). In 2023 10,778 trees were planted, which culminates in additional 5 ha of afforested area. For more information on this project please see the chapter “Biodiversity and ecosystems”.

Conservation area Brazil

To implement conservation solutions on 15,000 ha at the new pulp mill in Indianópolis (Brazil) by 2030

2030

15

Measure(s)

Lenzing increases the protected area at the site in Indianópolis (Brazil) from 13,000 ha to 15,000 ha

2030

 

Progress made in 2023

Lenzing achieved this goal in 2022 and increased the total conservation area in Brazil even further than the target, to more than 19,000 ha in 2023

Conservation projects

To engage in further conservation, biodiversity protection and restoration activities in regions where forests are at risk or should be improved by 2025

2025

15

Progress made in 2023

Lenzing supported several projects outside of its value chain in 2023 for example a project in Austria for protection of wild bees, for a detailled description of all projects please see “Biodiversity and ecosystems” chapter

Partnering for systemic change

Supplier engagement

To engage suppliers, covering more than 80 percent of spend, to improve sustainability performance

Continuous

12, 17

Measure(s)

Lenzing assesses 95 percent of its top suppliers representing 80 percent of spend via EcoVadis, the Together for Sustainability Audit or an internal assessment/audit by 2025

2025

 

Lenzing considers climate, water and chemical aspects in the procurement contractual process of its top chemicals suppliers

Continuous

 

Progress made in 2023

Around 600 of Lenzing’s key suppliers were assessed by EcoVadis. Eight suppliers were audited by Lenzing through the Together for Sustainability audit program. 40 percent spend was covered by these assessments. Supply agreements signed with the top chemical suppliers include sustainability clauses.

FEM

To implement and annually update the Facility Environmental Module (FEM) in all pulp and fiber production facilities and share verified modules with customers from 2024d

2024

12, 17

Measure(s)

Lenzing conducts self-assessments in existing sites in 2022 and first external verification by 2023

2023

 

Lenzing conducts self-assessments and trainings for new legal entities (Prachinburi (Thailand) and Indianópolis (Brazil)) in 2023 and first external verification by 2024

2024

 

Progress made in 2023

Seven sites have implemented FEM, verification finished for four sites with excellent scores of 90 to 95, and scores of 3 sites between 70 to 89. Self-assessments and training have been conducted for the sites in Indianópolis (Brazil) and Prachinburi (Thailand). Both sites are in preparation for verification in 2024.

Decarbonization

 

 

 

Near-term science-based target

New target: To reduce Scope 1 and 2 absolute greenhouse gas (GHG) emissions by 42 percent and Scope 3 absolute GHG emissions by 25 percent until 2030 (baseline 2021)f,g

2030

7, 13

Previous target: To reduce scope 1, 2 and 3 (purchased goods and services, upstream and downstream transport, and fuel and energy-related activities) GHG emissions by 50 percent per ton of fiber and pulp sold by 2030 (baseline 2017)

2030

 

Measure(s)

Lenzing reduces 40 percent of specific GHG emissions per ton of pulp and fiber sold (baseline 2017)b,e

2024

 

Lenzing reduces 50 percent of specific GHG emissions per ton of pulp and fiber produced (baseline 2017)e

2027

 

Progress made in 2023

Lenzing maintained its approach towards mitigating climate change by reducing its GHG emissions compared to baseline 2017. In 2023 Lenzing set up a new science-based target, which aligns with a 1.5°C scenario. This target has been approved by the Science Based Target initiative. The measure referring to a 40 percent reduction of specific emissions was successfully achieved in 2023. For more information on this and detailed information on achievements please see the “Climate change” chapter.

Long-term science-based net-zero target

To achieve at least a 90 percent reduction in absolute GHG emissions (Scope 1,2 and 3) (baseline 2021)f,g

2050

7, 13

Measure(s)

Lenzing achieves 100 percent green electricity for four sites

2024

 

Lenzing phases out coal in its Nanjing (China) operations

2022

 

Lenzing installs on-site photovoltaic power generation at the Lenzing plant

2022

 

Lenzing increases the share of renewable energy consumed by the Lenzing Group and supplies excess bioenergy from the pulp production facility in Indianópolis (Brazil)

2023

 

Lenzing achieves scope 1 and 2 carbon neutrality at its new lyocell fiber production site in Prachinburi (Thailand) by using 100 percent bioenergyh

2023

 

Lenzing engages 20 key suppliers, by spend and CO2 impact, in order to reduce Lenzing’s Scope 3 emissions and incentivize the suppliers that help Lenzing offer more low carbon footprint fibers

Continuous

 

Lenzing engages and enables 50 percent of ‘customers with approved SBT and commitment’ (textile and nonwoven brands/retailers as well as manufacturers working with LENZING™ fibers) to fulfill their ambition by providing information on low carbon footprint specialty products such as TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers

Continuous

 

Lenzing runs a campaign to reach 50 percent of TENCEL™ and VEOCEL™ customers (textile and nonwoven brands/retailers as well as manufacturers using the TENCEL™ and VEOCEL™brands) to promote the use of innovative lenzing fibers with environmental benefits such as low carbon intensity and to reduce reliance on fossil based materials wherever possible.

Continuous

 

Progress made in 2023

Six production facilities procured 100 % renewable electricity. Gas pipe connections and constructions in Nanjing (China) are ongoing. The product carbon footprint platform of TfS was adopted internally as well as external trainings are taking place. Lenzing is in continous discussions with top suppliers and also shares its expertise for obtaining low-impact chemicals (e.g. green electricity and LCA). The site in Prachinburi (Thailand) has been facing some challenges to consistently receive 100 percent biomass energy due to the reliability of biomass co-generation plant of supply partner, however the site has achieved 100 percent of biomass energy for October and November. Therefore both parties have agreed to work out short term and long term technical solutions. The discussion and negotiation on securing biogenic energy to reach 100 percent consistently in the future is ongoing. Additionally, given current global economic situation, many businesses and end customers have been deprioritizing sustainability in favor of low cost sourcing and therefore have less willingness to pay for low-carbon products. Customer engagement has been taking place to position fiber products with low carbon footprint for supporting Scope 3 emissions reduction of customers.

Empowering people

Social standard

To have a continuously valid third-party audited accredited social certificate for every Lenzing Group production (fiber or dissolving wood pulp) site by 2024d

2024

8, 12

Measure(s)

Lenzing implements and annually updates the Facility Social Labor Module (FSLM) at all pulp and fiber production facilities and shares verified modules with customers from 2024 onwards

2024

 

Progress made in 2023

For FSLM, on-site audits for the facilities in Mobile (United Stated), Grimsby (United Kingdom), Nanjing (China), Purwakarta (Indonesia) and Paskov (Czech Republic) were completed succesfully. Currently it is not possible to receive a third-party FSLM verification in Austria, due to lack of authorized auditors.

Equity, Diversity and Inclusion

To create an empowering work environment by respecting human rights, employee wellbeing and diversity

Continuous

3, 5, 10

Measure(s)

Lenzing implements training courses for 75 percent of the workforce on diversity, discrimination, the non-discrimination policy, and human rights

2025

 

Lenzing increases its proportion of women to 22.5 percent in all positions graded 5a and above by 2025b

2025

 

Lenzing achieves an inclusion Index score of 75 percent in the global Health Climate Survey by 2026

2026

 

Lenzing establishes a working condition policy

2021

 

Progress made in 2023

A Global Equity, Diversity and Inclusion (EDI) policy was published with a training video for all employees in multiple languages. A child labor remediation procedure was also established. Two employee resource groups (ERGs) were initiated. The first to further improve gender equality within Lenzing, and the second to promote multiculturalism. Team Leader Academy containing Inclusive Leadership modules was piloted in Grimsby (United Kingdom). Lenzing published one summary document containing all global policies influencing working conditions of its employees.

Community engagement

To continuously support the development of local communities near Lenzing production sites and support social welfare programs to 2025 and beyond

Continuous

1, 3, 11

Progress made in 2023

Lenzing supported numerous social projects for local communities near Lenzing sites. For more information please see the chapter “Affected communties” and the “Community engagement” focus paper.

Color code status   On track Achieved Delayed New target Measures implemented

a)

The target has the same production volumes and scope of facilities as the 2014 baseline (i.e. excluding the new legal entities in Prachinburi (Thailand) and Indianópolis (Brazil)).

b)

Relevant for the Managing Board long-term incentive (LTI) bonus targets

c)

Lenzing (Austria), Heiligenkreuz (Austria), Mobile (USA), Prachinburi (Thailand)

d)

The scope includes all Lenzing facilities, also the new legal entities in Prachinburi (Thailand) and Indianópolis (Brazil).

e)

These intermediate targets are part of the Lenzing corporate strategy on the way to reach science-based target by 2030.

f)

Scope 3 emissions include those from the harvesting of raw material wood, the production of purchased materials (chemicals & pulp), the production of fuels, the transportation of purchased raw materials & fuels, and the transportation of fibers to customers

g)

The target has been updated and approved by SBTi at the end of 2023. According to SBTi for net-zero target the remaining 10 percent of emissions can be carbon removals.

h)

This measure was marked as achieved in the report of 2022, however due to reliability issues of the supplier biomass boiler, this measure could not be achieved consistently throughout the year 2023.

A slight change has been implemented by substituting the numbers for sustainability targets with specic target names.

Achieved Targets

Achieved Targets

 

 

SDG

Target 10

To improve transparency by implementing the Higg Facility Environmental Module (FEM 3.0) at all sites by 2019

Achieved

12, 17

Target 12

To achieve digital fiber traceability by having 500 value chain partners with blockchain technology by 2021

Achieved

9, 12, 17

Target 13

To increase physical traceability from TENCEL™ x REFIBRA™ and LENZING™ ECOVERO™ to 100 percent of Lenzing’s textile special fibers by 2021

Achieved

12

Targets that have been achieved before the reporting year

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