Management approach
Management approach
Material topic: Resource use and circular economy
[ESRS 2 MDR-A 68a; GRI 3-3]
Lenzing has already successfully implemented circular economy practices as central parts of its business model for a long time by achieving greater efficiency in the use and reuse of resources. Such practices comprise closing loops in production processes and producing fibers that are biodegradable (applicable to TÜV certified biodegradable and compostable LENZING™ fibers1) at the end of their life. Such measures also ensure that Lenzing remains financially competitive and compliant with environmental legislation. As Lenzing continues to drive circular solutions across both the business and the industry, the complex transition from a linear to a circular system requires a collaborative approach. For instance, the company has partnered with Swedish pulp producer Södra to generate more opportunities for recycling textile waste, creating circularity practices and promoting systematic change. The company strives to create as much value as possible through improved sustainability performance that impacts the entire value chain.
Negative actual impacts
- Resources inflows, including resource use: Negative impact on circular economy and recycling due to blended materials (downstream value chain)
Negative actual and potential impacts
- Resource outflows related to products and services: Negative impact on GHG emissions and the carbon footprint through energy-intensive recycling processes (own operations, downstream value chain)
- Waste: Negative impact on the environment if waste from the textile industry is not disposed properly (own operations, downstream value chain)
Positive actual impacts
- Resources inflows, including resource use: Positive impact on emissions through Lenzing’s adoption of circular practices including the use of the renewable resource wood (own operations)
Opportunities
- Resource outflows related to products and services: Opportunity to help partners in the value chain achieve their circularity and recycling goals (own operations)
- Resource outflows related to products and services: Opportunity for an increased demand of fibers with recycled materials due to the EU Textile Strategy (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
- Sustainability Policy
- Group Policy for Safety, Health and Environment (SHE)
- Group Environmental Policy and Standard
- Group Waste Management Guideline
- Wood and Pulp Policy
Actions taken [ESRS 2 MDR-A 68a]
- Natural circularity – Origin and end of life
- Resource-efficient products and technologies
- Developing commercial-scale recycling technologies
- Partnerships & collaborations
Further actions (not described in more detail in E5-2)
- Ongoing collaboration with Södra to jointly install a process for post-consumer cellulose recycling
- Lenzing and TreeToTextile join forces for next-generation cellulose fibers
- Member and industry partner in funded EU Horizon projects
- Circular and Sustainable Textiles and Clothing (CISUTAC)
- Environmental Sustainability & Circularity Assessment Methodologies for Industrial Biobased Systems (ESCIB)
- Cellulose Lyocell Filaments (CELLFIL)
- 100 percent of wood-for-pulp-production suppliers assessed according to the FSC® Controlled Wood criteria
- Publication of “Enabling Circularity by Design” guide in collaboration with Södra to advance circular economy in the industry
Sustainability targets
- “Textile recycling” target
- “Circular business model” target
Stakeholders
- Policy Hub
- European Recycling Industries’ Confederation (EuRIC)
- European Apparel and Textile Confederation (EURATEX)
- Accelerating Circularity Project (ACP)
- Textiles 2030
- Södra
- TreeToTextile
- Forum for the Future
- The Austrian Bioeconomy Strategy
Responsible
- Members of the Managing Board (Pulp and Commercial)
- VP Recycling Pulp
- VP Commercial Textiles
- Vice President Global HSE
Supporting
- Corporate Sustainability
- Division Textile
- Division Nonwovens
- Division Pulp
- Global Quality
- Global Health, Safety & Environment (HSE)
- Global Innovation
- Site directors
Lenzing’s circular economy vision
We give waste a new life
Lenzing strives to drive the industry towards a fully-fledged circular economy by giving waste a new life across all aspects of Lenzing’s core business and by co-developing circular solutions with potential partners within and outside the current value chain to close loops wherever possible. Lenzing’s vision is built on the following three pillars.
We use regenerative and recycled raw materials to help protect the planet
Wood, a renewable raw material, is a key element of Lenzing’s circular economy vision, being entirely converted into high-value products and bioenergy. Furthermore, in selected fibers an alternative cellulose feedstock is used from textile waste, as a raw material.
We use circular thinking to design out waste and innovate processes
Lenzing strives to lead in closing technological loops and optimizing the use of every resource with maximum economic value.
We are not alone in this – Partnering for systemic change
Recycling textiles efficiently requires cooperation among designers, manufacturers, consumers, recyclers and policy makers. Lenzing is actively engaging in partnerships both within and outside the value chain. For more information, please see the “Stakeholder engagement” section in this chapter.
1 LENZING™ fibers which are TÜV certified as biodegradable (soil, fresh water & marine) and compostable (home & industrial) include the following products: LENZING™ Viscose Standard textile/nonwovens, LENZING™ Lyocell Standard textile/nonwovens, LENZING™ Modal Standard textile, LENZING™ Lyocell Filament, LENZING™ Lyocell Dry and LENZING™ Nonwoven Technology. An exception in certification exists for the LENZING™ Lyocell Filament fiber, for which the necessary tests to confirm biodegradability within a marine environment have not been conducted.