Climate change stakeholder engagement

[GRI 3-3f]

Stakeholder engagement and policy interventions

Lenzing strongly believes that its own efforts should be complemented by engaging with industry stakeholders and civil society, as collaboration is required to bring about systemic change in addressing the climate crisis. Lenzing signed the UN Fashion Charter for Climate Action in 2018 and is an active member of its working groups to develop solutions to industry challenges. Lenzing has also supported the World Resource Institute (WRI) and Apparel Impact Institute (AII) efforts to develop a high-level roadmap for the apparel and footwear industry.

A supportive policy framework and incentives are needed to realize measures such as fuel switching to low-carbon sources. Natural gas is currently more expensive than coal in many parts of the world. Sustainable biomass fuels are not sufficiently available in the required amounts. Similarly, renewable grid-based electricity is not widely and economically available in many parts of Asia. To advance low-carbon solutions, a level playing field is required, such as global carbon pricing and the elimination of fossil fuel subsidies. Industry and local governments should ramp up efforts to generate more renewable electricity in order to supply current facilities and cater for future growth.

UN Fashion Charter

The Fashion Industry Charter for Climate Action under the auspices of the UN Framework Convention on Climate Change (UNFCCC) is a broad stakeholder movement in the textiles, clothing and fashion industry aimed at achieving a holistic commitment to climate action. Signatories commit to climate targets and ultimately to fully decarbonize the fashion industry value chain in alignment with the SBT initiative.

The original targets of the UN Fashion Industry Charter were to achieve net-zero greenhouse gas emissions no later than 2050 and reduce emissions by 30 percent by 2030. The Fashion Charter signatories updated these targets in November 2021 to limit the increase in the global average temperature to 1.5 degrees Celsius above pre-industrial levels, as recommended by the Intergovernmental Panel on Climate Change (IPCC) and in line with the SBT initiative. An initial report, the “Climate Action Playbook” published in 2020, highlights major greenhouse gas reduction opportunities in fiber production, which is the fashion industry’s main raw material.

Lenzing is a founding member of the initiative and actively contributes to the working group on raw materials, sharing its longstanding experience in the production of sustainable cellulose-based fibers and assessment of environmental impacts through life-cycle analyses (LCA). In 2021, the working group published a report entitled “Identifying Low-Carbon Sources of Cotton and Polyester”. The report contains an overview of existing LCA studies and identifies opportunities for improvement, by switching energy sources, changing technology and innovating. Since 2021, Lenzing has contributed to the associated report on “Man-Made Cellulose Fibers”. It was published in 2023 and is based on contributions from a range of stakeholders including other producers of regenerated cellulose fibers, brands, NGOs and sustainability service providers.

Lenzing also contributed to the “Aggregate report of the transition plans” with its Climate Action Plan. This report contains the plans of 42 signatories, of which 80 percent having approved SBTs. In 2024, Lenzing mainly contributed to the Low-Carbon Manufacturers Group.

Renewable Carbon Initiative (RCI)

Lenzing is one of the eleven founding members of the Renewable Carbon Initiative (RCI), which was established in September 2020 under the leadership of nova-Institute (Germany). The aim of the initiative is to support and speed up the transition from fossil carbon to renewable carbon for all organic chemicals and materials. In the meantime, the number of members increased to around 80 and now includes companies such as Beiersdorf (Germany), BASF (Germany), Cosun Beet Company (The Netherlands), Givaudan (Switzerland), Henkel (Germany), IFF (USA), IKEA (Sweden), Lego (Denmark), NESTE (Finland), TÜV (Austria), Unilever (UK), and UPM (Finland). The Renewable Carbon Initiative aims to herald the end of the fossil age for all organic chemicals and materials by 2050. The concept of renewable carbon, which is essential for materials, is gaining more attention and traction – including on the political front. In 2024, the RCI published scientific background reports, held several webinars and was present at various events. Lenzing contributed by participating in several of the RCI working groups and acts as a board member.

GHG Protocol and Confederation of European Paper Industries (CEPI) contributions

Lenzing’s GHG emissions are calculated according to the GHG Protocol. Lenzing also participates in the further development of associated standards and guidance through the industry association CEPI.

Greenhouse Gas Protocol Land Sector and Removals Guidance (LSRG)

The Greenhouse Gas Protocol has launched a process to develop new standards or guidance on how companies should account for the following activities in their greenhouse gas inventories: carbon removal and sequestration, land use, land use change and bioenergy. One starting point for the initiative is the criticism of carbon neutrality relating to bioenergy and emissions from biogenic sources.

The outcome of this ongoing process, which was expected during 2024, will have a decisive impact not only on the cellulose-based fiber industry, but on the entire cellulose-based bioeconomy.

In Lenzing’s view, sustainably managed forests and plantations are key elements for climate change mitigation through carbon sequestration in the forest, harvested wood products, and the replacement of fossil-based materials that have high carbon footprints. Moreover, sustainably managed semi-natural forests constitute the most successful way of protecting biodiversity and enabling people to enjoy the benefits of forests in the form of recreation or micro-climate benefits (ecosystem services), for example.

Therefore, Lenzing provided input to the process through the industry association CEPI by participating in the review group to comment on the draft guidance in 2022, and pilot tested the draft guidance until March 2023. In the course of the revision after the pilot test, Lenzing joined the extended Technical Working Group (“TWG+”). The group was active until autumn 2024, when it was dissolved during governance changes.

At the end of 2024, all disputed issues were resolved except for the forest carbon accounting. The outlook for the process is the completion of the LSRG in version 1.0, excluding the unresolved issue of forest carbon accounting. The latter will be further discussed in a new technical advisory group during 2025.

Cascale

Lenzing has been a regular participant at Cascale’s annual member meetings. During these conferences, Lenzing is actively involved in group discussions and working sessions with industry peers and partners to further shape Cascale’s benchmarking tools. These discussions and sessions centered around topics relating to climate change, pollution, water and marine resources, resource use and circular economy, and own workforce issues. Lenzing also attended the special Cascale DACH member meeting that was held for the first time in 2024. This meeting serves to facilitate the exchange of member organizations along the value chain and to coordinate on the strategic future developments of Cascale as well as to strengthen the position of members.

Supplier

Lenzing engages with suppliers to supply low-carbon caustic soda by using renewable electricity. Supplier specific footprints are therefore requested. This has resulted in low-carbon soda from two suppliers in Europe and one in Asia.