Strategy development

[ESRS E4-1; GRI 3-3ab]

See “Actual and potential negative and positive impacts, risks and opportunities” in the management approach at the beginning of the chapter.

According to the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), pressures on nature leading to loss of biodiversity and ecosystem functions are categorized into five groups (IPBES 2019¹ as cited by Science Based Targets for Nature (SBTN)²):

1. Land/water/sea use change
2. Resource exploitation
3. Climate change
4. Pollution
5. Invasive species

In the context of global biodiversity loss, the textile and apparel industry has recently become more aware of its contribution to this problem^{3 4}. The focus is currently on the agricultural production of natural fibers (mainly cotton, and animal fibers such as wool), as agricultural land use is viewed as a main driver of biodiversity loss, although wood sourcing from forests is also considered as a potential cause. Pollution issues related to fiber production and textile processing, potentially occurring from all materials including synthetics, are currently considered to a lesser extent in a biodiversity context⁵. Textile and nonwoven products have potential negative impacts at the end of their life due to littering in land and water ecosystems, especially via non-biodegradable materials that are leaked into the environment. As a leading cellulose fiber manufacturer, Lenzing focuses on three areas: its wood and pulp sourcing, its fiber production processes and products’ end of use, in order to address biodiversity loss by minimizing the impact of biodiversity drivers.

To pursue the development of its biodiversity strategy, Lenzing joined the European Business Nature Commitment (EBNC), and the Science Based Targets for Nature (SBTN) Corporate Engagement Program in 2023. Both organizations are focusing on business action to halt and reverse nature loss by 2030. They provide guidance for high-level action by taking measures such as the “assess – commit –transform – disclose” approach of EBNC, collaborating in developing and selecting suitable frameworks and tools for assessing impacts and dependencies, as well as guidance for setting targets. Practical guidance has been used from the Taskforce on Nature-related Financial Disclosures (TNFD).

Biodiversity Approach and Action Plan

For information on the preliminary results of the strategy process, please refer to the “Biodiversity Approach and Action Plan”. The purpose of this document is to describe the approach Lenzing takes to address the complex challenges regarding the nature-related dependencies, impacts and opportunities of its business, as well as legal requirements that are in force or upcoming. The main principles are laid out in the Biodiversity Policy. This document provides a preview of the work in progress to open this discussion with our internal and external stakeholders. In terms of goals and targets, it refers to Lenzing’s current and short-term actions and targets in line with the thinking of many practitioners in the biodiversity field that the lack of a comprehensive strategy should not stop organizations from taking reasonable action now, even on the basis of current knowledge, which is admittedly limited. While the overall direction is clear for the mid- to long-term, specific targets and actions still need to be defined. This involves the following steps:

Please note that this document does not represent the complete biodiversity strategy according to the ESRS requirements.

Resilience assessment

As part of the Biodiversity Approach and Action Plan, an initial resilience analysis based on the LEAP approach⁶ of the Taskforce on Nature-related Financial Disclosure (TNFD) was carried out in the reporting year. The TNFD framework is designed to help organizations understand and disclose their impacts and dependencies on nature, thereby integrating nature-related risks and opportunities into their strategic planning and decision-making processes. For a description of the assessment of the resilience of its business model and strategy, as well as the scope, key assumptions, time horizons, results and involvement of stakeholders, please see the “Nature-related risk assessment according to TNFD” section in the “ESRS 2 General disclosures” chapter.

[ESRS E4 ESRS 2 SBM-3; GRI 304-2]

Lenzing’s potential impacts: biodiversity-sensitive areas

Several databases, including e.g. Natura 2000 network, Key Biodiversity Area network, Ramsar sites, European Environment Agency-European Protected Sites, Emerald Network, Protected Planet database, and UNESCO sites, were used to assess and identify biodiversity-sensitive areas and protected areas within the proximity of Lenzing’s operational sites. Terrestrial areas up to 10 km from operational sites and water areas up to 30 km downstream of Lenzing’s operational sites are listed in the Biodiversity Sensitive Area List. Lenzing operates seven sites (Lenzing (Austria), Heiligenkreuz (Austria), Paskov (Czech Republic), Grimsby (UK), Mobile (USA), Indianópolis (Brazil), Nanjing (China)), located near biodiversity-sensitive areas. For Lenzing’s operational sites Purwakarta (Indonesia) and Prachinburi (Thailand) no areas within the set criteria were identified.

For the biodiversity-sensitive and protected areas within the vicinity of Lenzing’s operational sites (extending up to 10 km from the sites and 30 km downstream), there is no documented significant impact on the ecological status of these areas or on any threatened species attributable to Lenzing`s operations.

All Lenzing sites have operation permits issued by the competent authorities in charge of the region. These authorities connect to the competent authorities of the biodiversity-sensitive areas to monitor any significant negative effects on these areas and, if necessary, request mitigation measures. During the reporting period no biodiversity mitigation measures were necessary to be implemented.

Additionally, no material negative impact concerning desertification, soil sealing, and land degradation has been identified.

For detailed information on biodiversity-sensitive and protected areas in the proximity of Lenzing operational sites, please see the “List of Biodiversity Sensitive Areas” in the Annex.

1 IPBES 2019: Global assessment report on biodiversity and ecosystem services of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. E. S. Brondizio, J. Settele, S. Díaz und H. T. Ngo (Hrsg.). IPBES-Sekretariat, Bonn, Deutschland. https://ipbes.net/global-assessment

2 Science Based Targets for Nature. Initial guidance for businesses. 2020.

3 Textile Exchange, Biodiversity Insights Report 2021. https://textileexchange.org/app/uploads/2021/11/Biodiversity-Insights-Report-2021.pdf

4 Global Fashion Pact, https://www.thefashionpact.org/our-work/#Tools-and-resources

5 Textile Exchange (2023), Biodiversity Landscape Analysis for the Fashion, Apparel, Textile, and Footwear Industry. https://textileexchange.org/knowledge-center/reports/biodiversity-landscape-analysis/

6 Guidance on the identification and assessment of nature-related issues: the LEAP approach – TNFD