Biodiversity and ecosystems stakeholder engagement
[ESRS 2 MDR-A; GRI 3-3f, 304-3]
Wood K Plus
Many Austrian companies, including Lenzing, and scientific bodies have joined forces as “Kompetenzzentrum Holz”. This is a leading research institution in wood and wood-related renewable resources in Europe. Recent topics addressed by the competence center include advanced biomass utilization (e.g. via closing loops in pulp production), lignin and hemicellulose utilization, or the use of enzymes in the production process. One work stream of Wood K Plus for Lenzing is sustainability in wood sourcing. In 2021, the focus shifted to biodiversity, including support for the work for the Textile Exchange Biodiversity Benchmark. In 2023, a doctoral study began on the topic of biodiversity metrics for the assessment of corporate impacts and dependencies. A review paper on the methodologies suggested by SBTN for the “Assess” and “Interpret and prioritize” steps was submitted in 2024 (publication pending). As a result of this cooperation, feedback on guidance documents and tools was also given regarding TNFD sector guidance: the draft of the Nature Metrics tool by the Forest Solutions Group of WBCSD, and the “Business and Biodiversity Assessment” by IPBES. This work is supporting the development of Lenzing’s biodiversity strategy, especially the selection of appropriate indicators for drivers of change in nature and the state of nature.
Morgan Stanley Capital International (MSCI)
Lenzing was awarded “AA” rating in the 2023 MSCI ratings. In accordance with its commitment, the company has donated the 2024 MSCI/green bond savings to forest conservation projects of non-profit organizations. In the 2024 rating awards, Lenzing received a lower rating of “A”. This is not due to decreased sustainability performance, but a reclassification to a different industry that Lenzing is compared to.
Lenzing decided to partner with ICEP/SAT Sustainable Agriculture Tanzania and Caritas Steiermark/ODAG- Caritas Gitega/Burundi/University of Burundi to finance two separate projects:
Sustainable Agriculture & Agroforestry in Tanzania (ICEP Project Lenzing Tanzania)
According to the UN Food and Agriculture Organization, Tanzania lost nearly 470,000 hectares of forest per year between 2015 and 2020. Deforestation in Tanzania has hugely negative impacts on biodiversity, soil erosion, agricultural productivity, water cycles and droughts. Additionally, deforestation drives the extinction of species through a loss of habitat. Through the project with Sustainable Agriculture Tanzania, small-scale farmers in the region of Morogoro and the Uluguru Mountains Nature Forest Reserve will receive support in planting various trees (indigenous and native trees, spice and fruit trees), food forests and spice farms. The project will have a positive impact on the environment, biodiversity preservation, water cycle stabilization, soil erosion, and local communities. The initiative aligns with Lenzing’s commitments to sustainability, as well as its efforts to contribute to biodiversity, reforestation and ecosystem conservation through partnerships. The project is implemented by SAT and ICEP, with Lenzing assuming a financing role within the period of 2024 to 2025.
Ruvubu National Park in Burundi: Reduction of utilization pressure and reforestation with native trees to restore the natural ecosystem and contribute to climate protection (Caritas Steiermark/ODAG-Caritas Gitega/Burundi/University of Burundi)
Within the period of 2024 to end 2026, the project aims to improve the environmental situation in the Ruvubu National Park by controlling bush fires, reducing illegal logging, and poaching etc. Additionally, the project will raise awareness about the preservation of the environment of the Ruvubu National Park and improve the livelihood of the local population. The project is providing a wide range of training to the local farming families in the Mutumba and Nyabikere communities. The training sessions focus on the innovative and sustainable use of forest ecosystems (e.g., beekeeping, mushroom cultivation etc.), the establishment of tree nurseries with indigenous tree species, and sustainable farming techniques. In addition, the project centres on reforestation involving native tree species to help restore the forest in the Ruvubu National Park. So far, the project has already led to more sustainable use of the Ruvubu National Park by raising awareness in the local population. The initiative aligns with Lenzing’s commitments to sustainability, as well as its efforts to contribute to biodiversity, reforestation and ecosystem conservation through partnerships. The project is implemented by Caritas Steiermark/ODAG-Caritas Gitega/Burundi/University of Burundi), with Lenzing assuming a financial role.
Fashion Forest Afforestation Project
Lenzing Fiber (Shanghai) Co., Ltd. (LFS) collaborates with the China National Textile and Apparel Council (CNTAC) and China Green Carbon Foundation (CGCF) on the Fashion Forest – Ecologic Carbon Neutral Forest project in Suochong Village, Sangdui Township, Daocheng County, Sichuan Province. The project explores spruce afforestation to demonstrate the restoration of a high-altitude forest ecosystem. The afforestation work is being carried out by the Daocheng County Ganzi Tibetan Autonomous Prefecture Forestry and Grassland Bureau, with Lenzing providing a part of necessary funds. The project is set to run for a period of four years after officially starting in 2025. A kick-off event took place in the 2024 reporting period.
The cooperation project involving Lenzing Shanghai, CNTAC and CGCF focuses on restoring the regional forest ecosystem, improving the structure of the regional ecosystem, increasing the quantity and quality of regional forest carbon sinks, and demonstrating and driving the participation of social capital in ecological protection and restoration. After the first phase of tree planting, Lenzing Shanghai will invite its partners to participate in forest protection activities and promote the textile value chain’s involvement in biodiversity conservation. The project aims to artificially afforest 18 hectares, by planting some 35,000 Qinghai spruces.
Project implementation contributes to improving the capacity of local ecosystems and communities to adapt to climate change, enhancing residents’ awareness of nature conservation, and providing local communities with increased employment opportunities in silviculture and conservation, as well as enhancing the skills of community residents in silviculture and forest conservation.
The initiative aligns with Lenzing’s commitment to sustainability, the responsible sourcing of raw materials and its efforts to contribute to biodiversity and ecosystem conservation through partnerships with key stakeholders such as CNTAC.
[GRI 3-3f, 304-3]
Conference of Parties 16 (COP16) on biodiversity and ecosystems (United Nations)
Lenzing supported the general Business Statement by Business for Nature1, and a letter from the Canopy Style initiative more specific to the cellulose fiber industry, that were addressed to the COP16 to the Convention on Biological Diversity in Colombia, October 2024. The statements intend to “show the growing support from the business community for ambitious nature policies and government leadership” (Global Biodiversity Framework).
Austrian Federal Forests (Österreichische Bundesforste, ÖBf)
One important wood supplier to the Lenzing site (Austria) is the state company Österreichische Bundesforste (ÖBf AG, Austrian Federal Forests). Managing 10 percent of the national territory and 15 percent of Austria’s woodland, ÖBf is the largest ecosystem manager, forest managing company and owner of hunting and fishing licenses. Sustainability forms the guiding principle for all ÖBf activities. The Lenzing site pulp mill obtains more than 35 percent of its wood from Austrian forests and the state of these forests is especially important for its sourcing. In Austria, forest biodiversity is monitored regularly according to a Biodiversity Index2. Recent outcomes are reported in the “Indicators of sustainable forest management 2020”3 from the multi-stakeholder organization “Walddialog” as a contribution to the Forest Europe indicators and targets process. The ÖBf team for ecological landscape management is developing individual nature conservation plans for each of the 120 ÖBf forest units, in addition to the existing forest management plans4. For Lenzing’s actions in cooperation with ÖBf, see the paragraph on the “Maintenance and support of eco-system services in Austria” action.
Biodiversity and multifunctional forest management (BIMUWA)
A publicly funded research project entitled “Biodiversity and multifunctional forest management” (BIMUWA5) has developed specific measures to protect endangered species (red-list species) and increase biodiversity under local conditions of PEFC region 6 (located in the Austrian provinces of Styria and Carinthia), which are integrated into daily forest management work. ÖBf is cooperating with the NGO umbrella organization Umweltdachverband on this. As the measures are very concrete and easy to implement, positive effects can be scaled to large forest areas. In 2023, Lenzing supported the roll-out of the results to the interested private forest owners by presenting its view during the information events in the region. In 2024, Lenzing engaged in the dissemination of the results, and discussed options for follow-up work with stakeholders.
Textile Exchange (TE) Biodiversity Benchmark
The Textile Exchange Biodiversity Benchmark was launched on December 2, 2020. The benchmark is part of the TE Corporate Fiber and Materials Benchmark (CFMB) Program and is connected to TE’s “Climate+” strategy. The role of the benchmark is to address biodiversity loss and support improvements in the industry’s sphere of influence through knowledge sharing. The methodology for companies to set targets for nature is being developed through the Science Based Targets Network (SBTN).
In 2021, Lenzing contributed as a member of the advisory group, providing input to the tool development and its own input to the benchmark. The “Biodiversity Insights Report 2021” provides “a first global baseline for the apparel and textile industry” regarding the awareness of its impacts on biodiversity. It describes approaches to actions in business integration, transparency, materiality, implementation, monitoring and evaluation, as well as corporate reporting. In 2022, the findings of this report were integrated into the CFMB program as a new chapter. In 2023, the “Biodiversity Landscape Analysis” report was published, with a focus on natural fibers from plants (cotton) and animal hair (wool), and little information on regenerated cellulose fibers. In 2024, the findings are already integrated into the Materials Benchmark survey.
Inspiring Cooperation Empowering People (ICEP)
Inspiring Cooperation Empowering People (ICEP) is an independent Austrian non-governmental organization (NGO) with a business-oriented focus. ICEP works with partner organizations in emerging markets as well as Austrian companies and implements projects worldwide aimed at getting more people actively involved in economic life. ICEP has supported Lenzing since 2018 in the implementation of an afforestation and conservation project in Albania that is co-financed with ADA. In 2024, a feasibility study for engagement in biodiversity improvement and social impact actions around the LD Celulose site in Indianópolis (Brazil) was performed and identified several options for projects, which are expected to start in 2025.
WWF Austria
In 2023, Lenzing was invited to present at a WWF Climate Group Talks6 event on “How to integrate biodiversity in your core business.” Additionally, Lenzing contributed to a study by WWF and Ernst & Young entitled “Management in the biodiversity crisis – How Austrian companies minimize risks and seize opportunities”7 (translated title, the study is in German language), that was published in 2024 and includes general insights as well as a case study. In 2024, Lenzing contributed to the WWF conference on “Economic factor biodiversity”8 in Vienna by providing a presentation on the approach to biodiversity strategy development.
Forest Europe, European and national forest strategies
The Forest Europe political process was initiated in 1990 by the Ministerial Conference on the Protection of Forests in Europe, which comprises 46 states, to promote sustainable forest management in Europe. A set of indicators grouped into six different criteria was developed to measure the sustainability performance of European forests and set targets for improvement9. Current efforts focus on climate change adaption10, water protection, and biodiversity11. As a major buyer of wood in Europe, the Lenzing Group supports these targets, which aim to ensure the continued and improved function of forests in their ecosystems while maintaining the long-term availability of wood as a raw material.
Forest Certification organizations
Lenzing is a member of the Forest Stewardship Council (FSC®), and a founding member of PEFC Austria.
Taskforce on Nature-related Disclosures (TNFD)
TNFD was established to encourage and facilitate a shift in the mindset and behaviour of companies and financial institutions through enterprise and portfolio risk management as well as mainstream corporate reporting, with a special focus on nature-related dependencies, impacts, risks and opportunities. In December 2023, TNFD published two documents for public comments that were relevant to the Lenzing Group:
Forestry and paper, December 2023 (For market consultation and feedback, SASB sectors: Forestry management (RR-FM) and Pulp and paper products (RR-PP)) and
The draft “Discussion paper on proposed sector disclosure metrics12”, December 2023. For market consultation and feedback. Apparel and textiles (CG.1), Construction materials (EM.2), Infrastructure (IF.2), Real estate (IF.3).
Lenzing’s Corporate Sustainability team reviewed and provided feedback on both if the above documents. The document entitled “Additional sector guidance – Forestry, pulp and paper” was published in June 2024, proposing metrics that may be collected by forestry, paper and pulp companies to improve their nature-related disclosures. Due to the disclosure described above, Lenzing has also become a TNFD adopter.
1 https://www.businessfornature.org/cop16-business-statement
2 Geburek, T., Büchsenmeister, R., Englisch, M., Frank, G., Hauk, E., Konrad, H., Liebmann, S., Neumann, M., Starlinger, F. and Steiner, H. (2015). Biodiversitätsindex Wald – Einer für alle! In: Biodiversität im Wald. BFW Praxisinformation 37, pp. 6-8
3 https://info.bmlrt.gv.at/themen/wald/walddialog/dokumente/indikatorenbericht-2020.html
4 https://www.bundesforste.at/leistungen/naturraum-management.html
5 BIMUWA Website: https://www.bundesforste.at/leistungen/naturraummanagement/foerderprojekte.html
6 https://www.wwf.at/artikel/einladung-climate-group-talks/
8 https://www.wwf.at/artikel/wirtschaftsfaktor-biodiversitaet-wwf-konferenz/#programm
9 Madrid Ministerial Declaration. 25 years together promoting Sustainable Forest Management in Europe, 7th Forest Europe Ministerial Conference, Madrid 2015. Available at: https://foresteurope.org/wp-content/uploads/2016/11/III.-ELM_ 7MC_2_2015_MinisterialDeclaration_adopted-2.pdf [aufgerufen am 15. Februar 2021]
10 FOREST EUROPE 2020. Adaptation to Climate Change in Sustainable Forest Management in Europe, Liaison Unit Bratislava, Zvolen, 2020 https://www.prosilva.org/fileadmin/prosilva/2020_Adaptation_to_Climate_Change_in_SFM_in_Europe_compressed.pdf