Actions

A summary of the “Actions taken” can be found in the management approach at the beginning of this chapter. Lenzing is committed to reducing emissions in its own operations and along the entire value chain. Table “How forests and wood products work for climate change mitigation” provides an overview of how Lenzing’s forest and wood products are contributing to climate change mitigation.

The update of roadmaps at both the group and site levels as necessary, with governance and the steering committee in place, affects all decarbonization levers. While some of the actions directly reduce emissions, others influence the emission reductions trajectory via planning and implementing the decarbonization levers.

Customer engagement actions create the pull for implementing measures in scope 1, 2 and 3 of Lenzing. It is Lenzing’s goal to engage TENCEL™ and VEOCEL™ customers as well as customers with approved SBTs and climate commitments. It is crucial to get them on board to buy low-carbon products. Thus, they indirectly influence SBT target fulfillment.

[ESRS E1-3; GRI 3-3d, 305-5]

As detailed below, the most important actions taken by Lenzing during the reporting year are linked to critical decarbonization levers. Depending on the type of action, for instance fuel switching or supplier engagement, Lenzing plans to implement them using either internal resources currently available or by allocating additional resources as necessary.

“Continuous improvement” lever

Continuous improvement involves regular optimization of processes, systems and operations to enhance energy efficiency and reduce emissions over time.

As part of its continuous improvement efforts, Lenzing has started replacing the existing gas boiler with a more efficient model at the Lenzing site in Mobile (USA). The gas boiler is crucial for generating the steam and heat required throughout the fiber production process. The new boiler will avoid approximately 8,000 tons of CO₂ emissions in scope 1 annually at this site when the project is completed in 2025. This action is not explicitly captured by the climate target governance but is part of the corporate strategy for operational improvements, increasing energy efficiency and cost competitiveness, which also contributes to achieving the SBTs.

“Low-carbon fuels (fuel switching)” lever

Lenzing is taking a range of actions to further improve its energy mix. The majority of scope 1 and 2 reductions by 2030 will be achieved by transitioning to low-carbon fuels to cover primary energy consumption. This was already initiated through projects in Nanjing (China) and Heiligenkreuz (Austria), as outlined below, and will be continued with projects at other sites, where Lenzing considers replacing fossil fuels, for example coal fired boilers, with low carbon alternatives.

In 2024, the installation and successful commissioning of a new natural gas pipeline and related energy equipment (boiler and turbine) at the Nanjing (China) production site marked a significant step towards transitioning from coal-based steam to a low-carbon, 100 percent natural gas-based system. This switch constitutes a solid basis for the next step in further reducing GHG emissions. Once the natural gas-based energy supply has been fully established (with 100 percent natural gas expected by 2027) a reduction of 100,000 tons of GHG emissions as compared to 2021 is expected. For more information about the required CapEx investment for this action, please see the “Climate Action Plan” at the beginning of this chapter.

At the Lenzing site in Indianópolis (Brazil), the transition from heavy oil to natural gas has been initiated, with a contract successfully finalized with the gas supplier. The site has an agreement for Liquefied Natural Gas (LNG) to be delivered starting from 2026. This has been devised as an ongoing measure. The reduction of scope 1 GHG emissions is expected to amount to around 38,000 tons. This is a follow up action to the measure to increase the share of renewable energy at the site by using excess bioenergy from the pulp production facility in Indianópolis (Brazil), which has already been achieved.

The Prachinburi (Thailand) site has faced challenges in consistently receiving 100 percent biomass energy due to reliability issues at the supply partner’s biomass co-generation plant. The site managed to achieve 100 percent biomass energy for only a few months during the reporting year. Therefore, both parties have agreed to work together on developing short-term and long-term technical solutions. The negotiations about securing a consistent, 100 percent biogenic energy supply in the future are ongoing. There will be no immediate reduction of scope 1 and scope 2 emissions upon full achievement of this action. However, emissions reductions are expected to the tune of the sites’ current emission level, which are approximately 68,000 tons CO₂, that will materialize until 2030 at the latest.

In 2024, Lenzing integrated a 43-megawatt biomass power plant into its energy system at the Heiligenkreuz (Austria) site and began full-year operation. This plant, purchased in the previous year, generates renewable electricity and steam for Lenzing’s operations, directly reducing the need for fossil-fuel-based energy. By 2025 the mitigation of approximately 50,000 tons of scope 1 GHG emissions per year is expected. For more information about the required CapEx investment for this action, please see the “Climate Action Plan” at the beginning of the chapter. The acquisition of the biomass energy plant was unplanned, but it was pursued as an unexpected opportunity to contribute to achieving the SBTs.

“Renewable electricity” lever

The Lenzing Group purchased 100 percent electricity from renewable sources at six production sites in 2024, leading to a mitigation of around 400,000 tons of GHG emissions. This action is planned to continue in the following years with a similar amount of reduction expected. By transitioning to renewable electricity, Lenzing not only minimizes its environmental impact but also accelerates progress in reducing its carbon footprint across all operations. This shift is a fundamental part of Lenzing’s broader decarbonization strategy, contributing to the reduction of scope 2 emissions.

“Supplier engagement” lever

Supplier engagement is a crucial lever for reducing scope 3, category 1 emissions (“purchased goods and services”). Lenzing collaborates with key suppliers to provide low-carbon caustic soda produced using renewable electricity. Supplier engagement makes suppliers aware of their product’s environmental footprint and potential for improvement, thereby ensuring the availability of low-carbon caustic soda and facilitating its purchase by Lenzing. As part of its supplier engagement, Lenzing is in continuous discussions with top suppliers and also shares its expertise (for instance in relation to green electricity and LCA). Supplier specific carbon footprints are regularly requested. In 2024, Lenzing purchased low-carbon caustic soda from two suppliers in Europe and one supplier in Asia. This saved around 95,000 tons of GHG emissions as compared to conventional caustic soda. In the coming years, Lenzing expects mitigation amounts to increase as a result of this action. The effect of using low-carbon caustic soda reduces GHG emissions along Lenzing’s value chain.

“Logistics” lever

Since 2022, Lenzing has implemented a sustainable logistics and transportation system using break bulk transport, reducing GHG emissions by at least 15 percent compared to container transport. In 2024, the arrangement for transporting pulp from the site in Indianópolis (Brazil) via marine transport using modern, energy-efficient break bulk vessels, instead of regular container vessels, avoided 23,000 tons of GHG emission in that transport chain. This action is planned to continue in the following years with a similar reduction amount expected. Hardwood dissolving wood pulp was transported from Brazil to customers in Asia, with approximately 90 percent of pulp shipped via break bulk and around 10 percent via container in 2024. This action is not explicitly captured by the climate target governance but is part of the corporate strategy for operational improvements, increasing energy efficiency and cost competitiveness, which also contributes to achieving the SBTs.