Management approach

Negative actual impacts

• Energy: Negative impact on global climate change by generating GHG emissions with the use of non-renewable energy sources (own operations).

Positive actual impacts

• Climate change mitigation: Positive impact of sustainable wood sourcing on the maintenance of healthy and resilient forests as natural carbon sinks (own operations, upstream value chain).
• Climate change mitigation: Positive impact on downstream value chain partners by supporting the achievement of their climate-related goals by providing low-carbon fibers (own operations, downstream value chain).
• Energy: Positive impact on driving the energy transition through a circular business model and innovation (own operations).
• Energy: Positive impact on GHG emissions along Lenzing’s value chain by assessing and engaging suppliers to reduce emissions (value chain).

Risks

• Climate change adaptation: Risk to Lenzing’s operations and supply chain due to the increasingly chronic physical climate hazards as indicated by climate risk assessment (own operations, upstream value chain).
• Climate change adaptation: Risk of wood scarcity from non-resilient forests and effects of increasing global average temperatures (upstream value chain).
• Climate change mitigation: Risk of increasing costs of GHG emissions from emerging regulations on carbon pricing in low-emission scenarios (own operations).
• Climate change mitigation: Risk of not achieving energy transformation in line with the Lenzing Group’s science-based targets (own operations).
• Climate change mitigation: Risk of increasing wood prices due to climate change and biomass competition (own operations).
• Energy: Risk of reputational damage if sustainability requirements in regard to energy sources are not met and carbon footprint is not reduced (own operations).
• Energy: Risk of increasing commodity costs (e.g. wood, pulp, chemicals) due to energy prices (own operations).
• Energy: Risk of biomass being reclassified as non-renewable in the Renewable Energy Directive (RED II/III) (own operations).
• Energy: Potential financial risk to Lenzing’s operations and increased costs due to unforeseen energy shortages and loss of power supply (own operations).

Opportunities

• Climate change adaptation: Opportunity through increased demand for low-emission products and product innovation (own operations).
• Climate change mitigation: Opportunity to de-risk Lenzing’s operations and gain market share by reducing GHG emissions (own operations).
• Energy: Opportunity of decreasing energy costs by implementing concepts based on renewable energy in the long term (own operations)

For a more detailed description of the impacts, risks and opportunities, please see the “Material impacts, risks and opportunities” section of the “ESRS 2 General disclosures” chapter.

Policies

• Bioenergy Policy
• Group Environmental Policy and Standard
• Policy for Safety, Health and Environment (SHE)
• Sustainability Policy
• Wood and Pulp Policy
• Global Supplier Code of Conduct

Actions taken [ESRS 2 MDR-A 68a]

• Lenzing Group purchases 100 percent renewable grid electricity at six production sites
• Integration and full-year operation of a biomass power plant in the energy setup at the Heiligenkreuz (Austria) site
• Replacement of gas boiler with a more efficient model has started at Lenzing’s Mobile (USA) site
• The discussion and negotiation on securing biogenic energy to reach 100 percent consistently in the future at the site in Prachinburi (Thailand) is ongoing.
• New natural gas pipeline and commissioning of a gas boiler and turbine at the Nanjing (China) site to replace coal-based steam
• At the Lenzing site in Indianópolis (Brazil), the transition from heavy oil to natural gas has been initiated.
• Lenzing engages with suppliers to supply low-carbon caustic soda by using renewable electricity.
• Reducing GHG emissions in shipping pulp through marine transport in modern break bulk energy efficient shipping vessels from the site Indianópolis (Brazil) to customers in Asia.

Further actions (not described in more detail in E1-3)

• Update of roadmaps at group- and site-level as necessary
• Governance and steering committees are in place
• Customer engagement actions create the pull for implementing measures in scope 1, 2 and 3 of Lenzing. Thus, they indirectly influence SBT target fulfillment

Sustainability targets

• “Near-term science-based target”
• “Long-term science-based and net-zero target”
• “Previous near-term science-based target”

Stakeholders

• UN Fashion Charter
• Renewable Carbon Initiative (RCI)
• GHG Protocol and CEPI (Confederation of European Paper Industries)
• Cascale
• Customers
• Suppliers
• CDP

Responsible

• Board member Chief Pulp & Technology Officer
• VP Corporate Sustainability
• Senior Manager Carbon Strategy

Supporting

• Corporate Communications & Public Affairs
• Global Controlling
• Global Supply Chain/Purchasing
• Corporate Audit & Risk
• Global Health, Safety & Environment
• Global Strategy and M&A
• Operations Service Group
• Global Energy
• Global operations and site directors