lenzing.com

Impact, risk and opportunity management

[ESRS E5 ESRS 2 IRO-1; GRI 306-2]

For more information on the general process of the double materiality, please see the section “Double materiality analysis” in the “ESRS 2 General disclosures” chapter.

Policies

[ESRS E5-1; GRI 2-24, 3-3c, 306-2]

Lenzing’s sustainability strategy and policy framework reflects a transition away from the use of virgin, fossil-based resources and towards the use of renewable as well as recovered and recycled resources wherever possible. Lenzing is committed to resource-efficient technologies and products that optimize the use of all raw materials and efficiently recover chemicals, water and energy. By monitoring use of resources, including water and chemicals, at all production sites, Lenzing is able to set benchmarks for production and emissions across the Group and establish targets and roadmaps for improvement.

Lenzing’s approach to waste management involves monitoring both hazardous and non-hazardous waste at all sites, in line with the policies’ commitments. Lenzing aims to establish best-practices in waste management within the group to prevent landfill, e.g. by repurposing production waste as raw material for other processes, thereby increasing resource efficiency and minimizing potential environmental impacts. Additionally, Lenzing collaborates with stakeholders and business partners to drive systemic change towards circular economy solutions in the textile and nonwovens industry.

Sustainability Policy

Lenzing is committed to collaborating with stakeholders, including innovation partners, suppliers, and NGOs, to promote fibers that reduce potential environmental and social impacts. Lenzing supports the research and development of commercially viable cellulose fibers made from alternative sources such as agricultural residues and textile waste (renewable resources). Lenzing is dedicated to sourcing all raw materials responsibly (sustainable sourcing) and continuously improving sustainability performance and resource efficiency by implementing appropriate measures.

Lenzing’s Sustainability Policy addresses all identified material impacts and opportunities, including the downstream value chain aspects of the “negative impact on circular economy and recycling due to blended materials”, as well as the upstream value chain aspects of the “negative impact on GHG emissions and the carbon footprint through energy-intensive recycling processes”.

For more information on the ESRS 2 MDR-P of the Sustainability Policy, please see the “Sustainability Strategy” section in the “ESRS 2 General disclosures” chapter.

Wood and Pulp Policy

In its Wood and Pulp Policy, Lenzing is committed to procuring wood and dissolving wood pulp exclusively from non-controversial sources. Suppliers participate in credible forest certification programs, in particular the Forest Stewardship Council® (FSC®) and Programme for the Endorsement of Forest Certification (PEFC). The supply of wood and pulp of a specified quality and quantity to all of the Group’s pulp and fiber production sites is an important part of the Lenzing Group’s core business.

The Wood and Pulp Policy addresses the “positive impact on emissions through Lenzing’s adoption of circular practices including the use of the renewable resource wood”.

For more information on the ESRS 2 MDR-P of the Wood and Pulp Policy, please see the section “Policies” in the “E4 Biodiversity and ecosystems” chapter.

Group Policy for Safety, Health and Environment (SHE)

Lenzing focuses on improving resource efficiency to reduce its environmental impact by minimizing emissions and waste.

The SHE Policy addresses the following impacts: Positive impact on emissions through Lenzing’s adoption of circular practices including the use of the renewable resource wood; Negative impact on GHG emissions and the carbon footprint through energy-intensive recycling processes; Negative impact on the environment if waste from the textile industry is not disposed properly

Group Environmental Policy and Standard

All Lenzing production sites fulfil the national legislative requirements and are ISO 14001 certified. The Group Environmental Policy and Standard is an important component of the Group’s Environmental Management System. It is the basis for developing Lenzing’s environmental program and the medium- and long-term environmental targets.

The Group Environmental Policy and Standard addresses the “Negative impact on the environment if waste from the textile industry is not disposed properly” by following the waste management principles and act whenever possible to minimize waste.

For more information on the ESRS 2 MDR-P of the SHE Policy and the Group Environmental Policy and Standard, please see the section “Policies” in the “E2 Pollution” chapter.

Group Waste Management Guideline

The internal Waste Management Guideline, which was launched in 2018, is aimed at aligning and improving waste management practices across the Lenzing production sites. The Vice President Global HSE is the most senior person accountable for the overall implementation of the Group Waste Management Guideline, while at the site level, the site directors and the site Safety, Health and Environment (SHE) managers are responsible for the local roll-out and implementation of the guideline. The guideline was further developed in 2021 and updated in 2022, which resulted in the full consolidation of waste data in the Group. It is an integral part of Lenzing’s Environmental Management System. Activities relating to waste management – e.g. the collection, separation, storage, transportation, and treatment of waste – are planned and implemented based on possible utilization as well as the company’s understanding of associated environmental impacts and risks. Further details on waste management are set out in each site’s waste management systems, which also concern external service providers.

The Group Waste Management Guideline addresses the “Negative impact on the environment if waste from the textile industry is not disposed properly”.

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