Lenzing’s biodiversity targets

[ESRS E4-4; GRI 3-3e]

See “Sustainability targets” in the management approach at the beginning of this chapter. All of Lenzing’s sustainability targets and the process of setting and monitoring (ESRS 2 MDR-T 80g, 80j) can be found in the “Sustainability targets, measures and progress” section in the “ESRS 2 General disclosures” chapter.

As previously mentioned, Lenzing uses the AR3T framework as a reference for describing its actions. All three “Conservation” targets are in line with the comprehensive and systematic approach to biodiversity and ecosystems, which has been pursued by the Lenzing Group. Table “SBTN’s framework for action and Lenzing’s approach” shows the targets across different layers of the mitigation hierarchy. In setting the “Conservation” targets, ecological thresholds, allocations of impacts to the undertaking or biodiversity offsets were not applied, nor are they aligned with the Kunming-Montreal Global Biodiversity Framework or the EU Biodiversity Strategy for 2030. However, the development of a new biodiversity strategy is in progress, and has achieved an initial result in the form of the Biodiversity Approach and Action Plan, which incorporates such frameworks and initiatives to ensure that future targets are even more comprehensive and in alignment with global biodiversity and ecosystem conservation efforts. Several targets have been derived from the Lenzing sustainability strategy and the corporate “Better Growth” strategy, containing elements that positively influence biodiversity and ecosystem services or nature’s contributions to people. All three “Conservation” targets contribute to reducing the risk of species extinction by preserving habitats and maintaining ecosystems services through responsible forest management and protection. All three targets relate to the Biodiversity Policy. The conservation target in Brazil additionally relates to the Water Policy and Wood and Pulp Policy.

Lenzing set the “Conservation project Albania” target for the first time in 2017 (baseline year), with the baseline value being zero (baseline value). For more information on the scope of the “Conservation project Albania”, please see the “Albania and West Balkans / Drin River valley” section below in this chapter. The “Conservation project Albania” target covers the “Positive impact on biodiversity by sustainable wood sourcing and engagement in afforestation projects”.

The “Conservation area Brazil” target of implementing conservation solutions on 15,000 hectares at the pulp mill in Indianópolis (Brazil) was set for the first time in 2020 (baseline year), from the baseline value of 13,000 hectares of protected land in Brazil under Lenzing’s responsibility in that year. Additionally, the “Conservation project” target of engaging in further conservation, biodiversity protection, and restoration activities was set for the first time in 2020 (baseline year). The “Conservation area Brazil” target covers the “positive impact on biodiversity by sustainable wood sourcing and engagement in afforestation projects” and the “Negative impact on threatened species in case of a lack of monitoring and management”.

The Inspiring Cooperation Empowering People (ICEP), the Austrian Federal Forests (ÖBf), the Canopy Initiative and the Umweltdachverband were instrumental stakeholders in setting the targets through ongoing dialog and consultation. CDP serves as the reporting platform regarding these topics. Internal stakeholders such as the Wood and Pulp Team and the Commercial Team, alongside the Corporate Sustainability Team, also played a crucial role in establishing these targets.

The “Conservation projects” target does not have a quantitative metric connected to it. Nevertheless, it contributes to addressing the “Risk of wood scarcity & high wood prices resulting from biodiversity loss”, the “Potential negative impact on ecosystem services due to impacts on biodiversity and the ”Negative impact on threatened species in case of a lack of monitoring and management” by supporting conservation, biodiversity protection and restoration projects. The target is in line with the objectives of Lenzing’s Biodiversity Policy. Outcomes of the target-related actions are mostly assessed in a qualitative way and are also quantitatively measured to some extent. For more information on the projects, please see the project descriptions below in this chapter.

As Lenzing has achieved a fully deforestation-free supply chain and strives to maintain this status, no target has been set regarding the “Potential negative impact on ecosystems due to a potential change of land use by suppliers”.

The “Negative impact of Lenzing and its value chain by contribution to climate change and consequential biodiversity loss” is addressed by Lenzing’s science-based targets (SBTs) for 2030 and 2050. For more information on the SBTs, please see the “Metrics and targets” section of the “E1 Climate change” chapter.

For the “Opportunity through positive positioning with best practice wood sourcing from sustainably managed forests and plantations”, quantitative targets have been considered but have not yet been defined. Lenzing has no targets regarding the upstream value chain aspects of the “Positive impact on biodiversity by sustainable wood sourcing and engagement in afforestation projects”, but is considering options. However, several afforestation projects in excess of its own values were supported in recent years.

While Lenzing does not have quantitative targets regarding the “Potential negative impact on biodiversity introducing invasive alien species by wood transport”, Lenzing relies on targets set by its wood suppliers and national programs for its supply chain. For its own forest operations, actions are defined in the Forest Management Plan of LD Celulose (Brazil)¹ as well as LD Celulose’s Biodiversity Action Plan (not published yet) and are being implemented, with the objective of preventing any introduction of invasive alien species. The effectiveness of the measures is monitored with regard to the removal of exotic trees in conservation areas.

Metrics for biodiversity and ecosystem enhancement within LD Celulose’s plantations

[ESRS E4-5; GRI 304-2, 304-3]

The metrics in this section are not validated by an external body other than the assurance provider.

Conservation within LD Celulose’s plantations

The main direct land use areas of the Lenzing Group are the plantations in Brazil (Indianópolis), currently covering a total of 93,908 hectares (939.08 km²). These areas were converted to agricultural land several decades ago. Large areas nearby are generally used for planting soy and coffee or grazing livestock. The species of trees within the plantation are eucalyptus. A breeding and cloning selections program is continuing to improve the yield and robustness of the trees. LD Celulose does not use genetically modified organisms (GMOs).

The plantations managed by LD Celulose operate fully in accordance with the guidelines and high standards of Lenzing for sourcing wood and pulp. During the planning, the intense utilization of wood resources and the potential negative effects on biodiversity were part of the risk analysis. In order to avoid these potential risks, LD Celulose works with conservation programs and also follows the FSC^® standards.

Regarding changes to land use, there was no conversion of primary forests, other naturally regenerating (second growth) forests, savannahs, grasslands or freshwater natural ecosystems to other land uses. However, in 2024, 55 hectares of degraded former agricultural grassland were converted to forest plantations.

Brazilian environmental law determines the maintenance of Permanent Preservation Areas (APPs) and Legal Reserve (LR) areas. APPs include specific types of vegetation, such as ciliary forests, vegetation adjacent to watercourses, and vegetation on slopes. Legal Reserve areas meet the obligation to preserve at least 20 percent of property in a rural area. At the moment, 22,980 hectares of land used by LD Celulose are protected areas (table “Quantitative description of areas managed and influenced by LD Celulose (entity-specific disclosure)”).

This action addresses impacts on ecosystem services, the state of endangered or threatened species on plantations and forests, and the (accidental) introduction of invasive alien species by transport of wood. The plantation managed by LD Celulose contains a conservation area that is dedicated to biodiversity protection in accordance with legal requirements and FSC^® standards, known as a High Conservation Value Area (HCVA). LD Celulose’s forestry unit is supervised by ecology and environmental specialists, who were also responsible for identifying the HCVA. The area contains Pseudopaludicola facureae, a species of frog found only in this region of Minas Gerais. This means that a higher level of monitoring is necessary as well as extra precautions for fire protection. Monitoring of flora and fauna occurs annually or twice per year and covers the entire area of the plantation. It is a metric for LD Celulose to protect endemic species and their habitat. The forestry unit constantly strives to identify any areas that need to be classified as HCVA to ensure the protection of animal and plant species. For more information, please see the “Biodiversity and ecosystems” focus paper.

The biodiversity-sensitive area and conservation unit of Parque Estadual do Páu Furado is outside the managed areas, but in proximity to LD Celulose at approximately 30 kilometres away from the LD Celulose plantation. At this distance, the conservation unit is not impacted by LD Celulose’s activities. The plantation is roughly 800 kilometers away from the Amazonas.

In the responsible management of both plantation and conservation areas that is practiced by LD Celulose, techniques are employed that aim to protect biodiversity as well as soil and water quality. Examples of these measures are:

• Minimum cultivation: For soil conservation, LD Celulose uses the minimum cultivation technique, which consists of keeping the remaining plant material at the harvest site to form layers of soil protection and ensure the cycling of nutrients.
• Nutritional recommendation: LD Celulose performs soil analyses to determine the requisite fertilizer recommendation for maintaining soil fertility.
• Habitat connectivity: To improve the connectivity of the Permanent Preservation Areas and Legal Reserves, LD Celulose carries out mosaic planting, establishing ecological corridors that aim to connect fragments of native forest. This connectivity allows animals and plants to migrate between different conservation areas, so that different populations can mate and preserve the genetic diversity. This measure is a voluntary activity beyond the legal and certification-related requirements.
• Preservation and monitoring of riparian forests: These forest areas along waterways contribute to the maintenance of water quality and the quantity of water available. They retain sediments and nutrients carried by the rain, preventing water pollution and silting in bodies of water. In Brazilian legislation, riparian forests are protected as they are considered Permanent Preservation Areas. LD Celulose defines all Permanent Preservation Areas in its forest management units and monitors these riparian forests.
• Managing invasive species and pests: The Forest Management Plan has been reviewed to establish concrete measures to address pest management and the risk of eucalyptus dispersion in natural vegetation areas.

Monitoring of biodiversity and ecosystems

Attempts to quantify impacts from land use on biodiversity usually consist of two components: the quantity of land (forest) area used and the intensity of use.

The land area of plantations managed by LD Celulose in Brazil is recorded in exact measurements (table “Quantitative description of areas managed and influenced by LD Celulose (entity-specific disclosure)”). The estimation of the other land area used for Lenzing’s wood sourcing is part of the initiated “Biodiversity concept” project. Variations in data availability and data quality can arise depending on the forest type, land ownership, sourcing area and supply chain position (wood or pulp sourcing for Lenzing) (table “Quantity of forest area used for Lenzing’s wood and pulp sourcing: Data availability and quality”). Initial attempts to estimate forest area use for direct wood supply to Lenzing’s European pulp mills began in 2023. As the work is still ongoing, no results can be shared at present.

Land use intensity influences the biodiversity and ecosystem status. In the Lenzing Group, this is monitored in the global regions via two different approaches, as explained below. Pulp suppliers apply their own monitoring schemes.

In Europe, the forest biodiversity and ecosystem status is monitored at the national level according to the Forest Europe criteria. Results are published regularly in the European overview², and in the national reports. For the top four sourcing countries of Austria, the Czech Republic, Germany, and Slovakia, please see the reports in the reference³.

The pulp mill in Brazil is supplied with wood from plantations that are owned and maintained by LD Celulose, which is also responsible for monitoring. To ensure that the plantation management maintains compliance with the requirements of the Brazilian Forest Code, LD Celulose has a framework of internal and external processes. There are ongoing biodiversity monitoring projects in which data on local biodiversity and the potential expansion of invasive species is monitored. The internal GIS (Geographic Information System) team collects satellite imagery on an annual basis and evaluates the location, size and status of the Legal Reserve areas (LRs) and Permanent Preservation Areas (APPs) on the managed land. The data is also provided to the field teams in the form of maps. Furthermore, periodic field audits by internal environmental specialists ensure that the quality of LRs and APPs is maintained.

Dexco started its biodiversity research projects in its managed areas in the 1970s. LD Celulose has continued to monitor flora and fauna in the areas that have remained under its management and those directly influenced by the mill site through partnerships with universities⁴, in addition to internal programs. These programs are carried out annually in the dry and rainy seasons and aim to monitor possible impacts on local biodiversity. These programs are also required by the Brazilian environmental agency.

Approximately 200 species of flora and 450 species of fauna were identified in the forest management units of LD Celulose. Among these species, the presence of animals such as the maned wolf and the giant anteater, which are characteristic of the region, is particularly noteworthy. No significant reduction in species has been registered at LD Celulose’s plantation since these consistent monitoring efforts began (the first report was in December 2020).

Metrics for nature-related assessment – Taskforce on Nature-related Financial Disclosures (TNFD)

Metrics and indicators recommended by TNFD were assessed for the Lenzing Group for the first time in 2024 and can be found on the Lenzing report website. Disclosures for the entire Lenzing Group focus on the drivers of change in nature, including climate change, change of land/freshwater use, pollution, and resource use. More detailed state of nature indicators are provided in a separate table for Lenzing’s own forest operations.

Interfaces to nature were located at the production sites, in Lenzing’s own forest plantations, and in the sourcing of wood and pulp. Dependencies as well as potential negative and positive impacts were identified and assessed. The TNFD annex of the 2024 Sustainability Report mainly comprises nature-related disclosures. Climate-related information according to TCFD is available in the Climate chapter of the report, as well as in other disclosures in the respective chapters of the report.

Restoration and reforestation

Lenzing supports conservation solutions in other regions not related to its own supply chain, such as afforestation in Albania, DR Congo and the USA. Additionally, Lenzing is committed to addressing the protection of ancient and endangered forests in Canada (Broadback Forest Quebec, Vancouver Island) and Indonesia (Leuser Ecosystem) at the political level. By taking action and supporting such conservation and afforestation projects, Lenzing addresses impacts on the state of the species, global species extinction risks, ecosystem services as well as changes in land use and climate change as drivers of biodiversity loss. In 2023, Lenzing signed the “World’s MMCF Producers Call on the Convention of Biological Diversity to support conserving at least 30 percent of the world’s forests by 2030” letter that was prepared for the COP15 to the Convention on Biological Diversity (Montreal).

In 2024, Lenzing supported the Business Statement by Business for Nature for the COP16 to the Convention on Biological Diversity in Colombia (October 2024), urging political leaders to support the “renewed ambition to implement the Biodiversity Plan (Global Biodiversity Framework) according to the Kunming-Montreal Protocol and halt and reverse nature loss this decade”⁵.

Lenzing has set itself the target of engaging in further conservation, biodiversity and restoration activities in regions where forests are at risk (“Conservation projects” target). To make further progress in meeting this target, in 2022 Lenzing defined ways of identifying projects, to which it aims to contribute:

• Identify requirements from CDP and Canopy
• Identify potential partners in the market with experience and a broad network for a successful partnership
• Identify how other players in the market are tackling the biodiversity issue

Lenzing aligned the projects identified in 2024 with CDP, Canopy and ÖBf.

Innovation for people: Reducing the carbon footprint, protecting forests and improving the lives of rural communities that are vulnerable to the effects of the climate crisis

This pilot project in the Luozi Region of the Democratic Republic of Congo, which was implemented by Caritas Upper Austria and co-funded by Lenzing, combines both social and environmental components in a holistic approach to sustainably protect the environment, reduce CO₂ emissions and improve the lives of vulnerable children and families in one of the poorest countries in the world. In this research project, CO₂ is set to be reduced by means of innovative products, such as agricultural waste-based charcoal and energy-saving stoves. Using this alternative charcoal reduces the need for harvesting wood from the forests. In addition, income-generating activities will provide alternatives for small-scale farmers so that they no longer have to produce and sell wooden charcoal. Ecological and smart integrated agricultural activities, such as combining agroforestry with beekeeping, will increase the income of smallholders, improve soil fertility and reduce deforestation. Accompanying advocacy and education measures are carried out to minimize slash-and-burn agriculture and improve forest protection. The project started in October 2023, and will be implemented in the 2023-2026 period.

Maintenance and support of ecosystem services in Austria

Since 2023, Lenzing has actively engaged in the maintenance and support of ecosystem services that are provided by the forests of its wood suppliers. This is related to the risk of “wood scarcity and resultant high wood prices”, and is approached through a collaboration with Österreichische Bundesforste AG (ÖBf, Austrian Federal Forests). The primary aim of the current collaboration is to improve or maintain the ecosystem services provided by forests. For example, in 2023 Lenzing supported the planting of 200 bee and pollinator friendly shrubs along a forest trail spanning approximately one kilometer. This activity counteracts the decline in pollinators by restoring their habitats which are increasingly affected by intensive agriculture and pesticide use.

In 2024, Lenzing and ÖBf agreed on an action plan for engagement on peat bog protection and maintenance in the region Ausseerland region in Styria (Austria). Management activities started in autumn 2024. Wet meadows with exceptionally high biodiversity and ponds for amphibians are being restored.

Albania and West Balkans/Drin River Valley

A forest conservation and social impact project in Albania managed by the Austrian Development NGO ICEP, and funded by ADA (Austrian Development Agency) and the Lenzing Group was implemented from 2019 to 2024. The original aim was to support the development of rural areas in Albania in the broader region of Shkodёr (Ana e Malit) and Dibёr (Peshkopi) by using natural resources sustainably, including conservation solutions across an area of 20 hectares, as well as training and social impact programs.

In 2023, the scope of the project was significantly extended to include neighboring countries, and the expanded project will continue beyond 2024. The transboundary catchment area of the Drin River includes the countries of Albania, Kosovo, North Macedonia and Montenegro. This area consists of large forest and pasture areas, rich biodiversity ecosystems and is one of the most water-rich areas in Europe in terms of freshwater ecosystems. Over the last three decades, the forest area in the four target countries along the river basin has been heavily exploited and is under threat due to increased illegal logging activities and the consequences of climate change.

The long-term impact of the project is to contribute to climate change mitigation and sustainable development along the Drin River through strengthened integrated forest management (IFM). Afforestation of 45 hectares of degraded land and the restoration of an additional 75 hectares is planned in the area, including 110,000 trees to be planted. Through the defined measures, the living conditions of rural communities in the target areas will be improved through enhanced ecosystem services.

The project applies a multi-stakeholder approach, integrating national and international experts as well as local communities, central and local authorities, and on-going initiatives.

Achievements in 2024

• 13 hectares were afforested
• 8 hectares were regenerated
• 20,037 trees were planted
• 70 local forest workers were employed and educated in reforestation and the use of machinery
• 11 forest action plans of local municipalities were elaborated/revised
• 1 regional conference on Integrated Forest Management was held involving 73 participants from public administration, ministries, universities, public and private forestry companies etc.
• 5 IFM training sessions were conducted with a total of 59 participants
• EUR 50,000 in eco-tourism grants were given to qualified local entrepreneurs in North Macedonia
• 1 gender analysis was conducted and an action plan was implemented

Fiber brand-related climate protection, forest protection and afforestation projects in 2024

Lenzing has launched additional low-carbon TENCEL™ and VEOCEL™ branded lyocell and TENCEL™ branded modal fibers for applications in the textile and nonwoven industry. Based on the concept of reduce-engage-offset, Lenzing has focused on low carbon emissions through various reduction actions and has balanced the remaining carbon emissions of these fibers through carbon compensation projects. The new fibers are certified by ClimatePartner in accordance with the Greenhouse Gas Protocol, the leading global framework for measuring carbon emissions. All selected and supported climate and forest protection and afforestation projects are certified according to Gold Standard VER or Verified Carbon Standard.

For details of the projects supported by Lenzing in 2022-2024, please see the following ClimatePartner ID Tracking pages:

• ClimatePartner projects/TENCEL™ branded fibers
• ClimatePartner projects/VEOCEL™ branded fibers

For 2024/2025, Lenzing will continue to support, and use offset credits from a broad mix of projects such as:

1. Wind energy in Thailand/West Huaybong
2. Geothermal energy in China/Changdao
3. Solar energy in India/UP, Karnataka & Maharashtra
4. Biogas in India/Punjab
5. Afforestation in China/Anlong
6. Forest protection in Brazil/Lábrea

The acquired credits will be retired according to the consumption in each year. Note that these are all climate credits, not biodiversity credits. The action is connected directly with biodiversity through the projects mentioned under points 5 and 6. The other projects contribute positively in an indirect way to the topic of biodiversity.

1 https://ldcelulose.com.br/fileadmin/user_upload/documentos/2000-1-pn-88-ldc-0001-01_resumo_publico_pmf.pdf

2 Forest Europe 2015 und 2020: State of Europe’s Forest 2015. Ministerial Conference on the Protection of Forests in Europe, Juni 2016, und State of Europe’s Forest 2020. https://foresteurope.org/publications/

3 Indicators of sustainable forest management in Austria reports from 2017 and 2020. https://info.bmlrt.gv.at/themen/wald/walddialog/dokumente.html, Czech Republic and Slovakia forest reports: Ministry of Agriculture of the Czech Republic, Information on Forests and Forestry in the Czech Republic by 2017 (English), Zpráva o stavu lesa a lesního hospodářství České republiky v roce 2020 (Czech). Ministry of Agriculture and Rural Development of the Slovak Republic, Report on the Forest Sector of the Slovak Republic 2020.

4 Duratex Annual Report 2018. Available at: https://www.dex.co/noticias/duratex-divulga-relatorio-anual-2018/ [aufgerufen am 15. Februar 2021]

5 https://www.businessfornature.org/business-statement