Management approach

Material topic: Affected communities

[GRI 3-3]

Dedicated to maintaining technological and safety standards, Lenzing prioritizes the safety and quality at its production sites to protect its employees and communities affected. Through its “Naturally Positive” sustainability strategy and engaging in social and environmental initiatives, Lenzing tries to enhance the well-being of the regions where it operates. Social sustainability issues are being recognized as increasingly important and efforts are being made to pursue a more structured approach in this area.

Actual and potential negative and positive impacts, risks and opportunities

Positive

• (Stable) job opportunities for communities around production sites

Negative

Own activities:

• Communities around production sites could be disturbed by pollution, noise and odor
• Potential impacts on water scarcity affecting communities around production sites in water scarce areas
• Potential impacts on living conditions such as food resources and water and sanitation of communities around production sites
• Risk of sourcing from suppliers which are involved in displacement or suppression of freedom of speech of affected communities or in the violations of rights of indigenous people

Business relationships:

• Potential impacts on living conditions such as food resources and water and sanitation of communities around production sites

Policies and commitments

• Global Whistleblower Directive
• Lenzing’s sustainability targets

Actions taken

• Wood & Pulp Policy, FSC^® and PEFC certification to avoid sourcing of wood and pulp which stems from violations of indigenous economic, social and cultural rights or displacement
• Constant communication with communities around production sites
• Whistleblower/complaint system
• Environmental assessment before new production site is planned/built
• Definition of dedicated employees to support topic at each site
• Social and environmental activities at sites

Sustainability targets, measures and progress

• Complaints of community members around sites: 49
• “Community engagement” target: To continuously support the development of local communities near Lenzing production sites and support social welfare programs to 2025 and beyond

Stakeholders

• Local communities

Responsible

• Site managers

Supporting

• Global QESH
• Social Sustainability