Metrics and targets

[ESRS E5-3; GRI 3-3e]

See “targets” in the management approach at the beginning of this chapter.

All of Lenzing’s sustainability targets and the process of setting and monitoring (ESRS 2 MDR-T 80g, 80j) can be found in the “Sustainability targets, measures and progress” section in the “ESRS 2 General disclosures” chapter.

Lenzing’s “Textile recycling” and “Circular Business Model”-targets are closely aligned with the “Better Growth” strategy aimed at promoting the circular economy and sustainable material sourcing. These voluntary targets not only support the increase in circular product design and the circular material use rate but also contribute to the reduction of primary raw material usage. The scope of the “Textile recycling” target includes all Lenzing’s production sites, excluding those in Paskov (Czechia) and Indianópolis (Brazil). Lenzing set the “Textile recycling” target for the first time in 2020 (baseline year). In this year, Lenzing offered TENCEL™ x REFIBRA™ branded lyocell fibers with up to 30 percent recycled content (baseline value). Additionally, the “Circular Business Model” target was set for the first time in 2020 (baseline year), initially partnering with zero key supply chain companies (baseline value).

The targets address the renewable sourcing and use of recycled cellulose textile waste and agricultural waste aiming to increase the share and types of alternative feedstocks. The targets primarily relate to the “recycling” layer of the waste hierarchy. However, the “Circular Business Model” target promotes the circular economy concept, which is an overarching principle that encompasses all layers of the waste hierarchy.

Södra, a forestry cooperative that produces wooden goods, pulp, and biofuel and is based in Sweden, played a key role in establishing these targets as a cooperative partner. The internal stakeholders besides the Corporate Sustainability department that were involved in the establishing these targets included the Pulp and Wood Team, the Commercial Textiles team and the Strategy team.

Lenzing has no target regarding the actual and potential “Negative impact on the environment if waste from the textile industry is not disposed properly”. Lenzing complies with applicable laws and regulations and aims to improve its waste management practices.

Resource inflows

[ESRS E5-4; GRI 301-1, 301-2]

Lenzing’s main resource inflows are wood, dissolving wood pulp, chemicals, fuels and water. This does not include critical raw materials or rare earths as defined in Annex II of the EU Critical Raw Materials Act. Please note that precise figures on the absolute weight or volumes of materials used by the Lenzing Group are omitted due to confidentiality reasons. The consolidated weight of materials can be found in the table “Resource Inflows”.

Wood and dissolving wood pulp

Processing wood into fibers requires a special quality of pulp called dissolving wood pulp. The Lenzing Group’s current nominal capacities for dissolving wood pulp are 320,000 tons at the Lenzing site (Austria), 285,000 tons at the Paskov site (Czechia) and 500,000 tons at the Indianópolis site (Brazil). For the locations of Lenzing’s pulp factories, please see the “Lenzing Group locations” chapter.

In addition to producing its own dissolving wood pulp, Lenzing procures dissolving wood pulp from the global market, mostly under long-term supply contracts. Eucalyptus, pine and spruce represent the predominant wood species used by Lenzing’s pulp suppliers. However, beech, birch, ash, maple as well as other hardwoods and softwoods are also processed. The actual tree species vary depending on the region and quality conditions. Regardless of the species, all the wood originates from sustainably managed forest operations that are certified or controlled according to the leading forest certification schemes. An overview of the most important tree species per region can be found in the Annex. Lenzing ensures that the bleaching process of all purchased pulp is totally chlorine-free (TCF) or elemental chlorine-free (ECF). 100 percent of Lenzing`s wood or pulp suppliers are regularly assessed and certified according to FSC^® or PEFC standards. For more information on certifications, please see the “Sourcing” section of the “G1 Business conduct” chapter.

Chemicals

The most important chemicals for Lenzing, accounting for about 85 percent of the total volume purchased, include carbon disulfide (CS₂), N-methylmorpholine N-oxide (NMMO), sodium hydroxide (NaOH), sulfuric acid (H₂SO₄), sulfur (S), sulfur dioxide (SO₂), spin finishings, titanium dioxide (TiO₂), and zinc sulfate (ZnSO₄). Lenzing tries to source its chemicals as regionally as possible. However, despite an intensive search for a local NMMO source, this chemical currently cannot be sourced locally. For Lenzing regionally sourced means from the same or the neighboring country of the production facility. For more information on regional sourcing, please see the “Sourcing” section in the “G1 Business conduct” chapter.

Lenzing engaged in comprehensive dialog with its suppliers to explore the possibilities of procuring sodium hydroxide with reduced GHG emissions. For more information on supplier engagement to reduce GHG emissions, please see the “Actions” section in the “E1 Climate change” chapter.

Fuels

Pulp and fiber production is an energy intensive process that is more than two-thirds covered by fuels from renewable resources at Lenzing. For more information on fuels, please see the “Energy and fuels” section in the “E1 Climate change” chapter. Upholding its objectives, Lenzing was the first cellulose fiber producer to set concrete science-based targets approved by the Science Based Targets initiative to reduce GHG emissions and fossil-based fuels, respectively.

Water

Water is a valuable resource, which is necessary for Lenzing’s manufacturing processes. Further details on water and its recycling are provided in the “E3 Water and marine resources” chapter.

Packaging

Chemicals are delivered in different forms of packaging such as containers and big bags. Lenzing has implemented take-back systems with its suppliers in order to reduce packaging waste. These systems not only ensure proper disposal but also facilitate the reuse of packaging material.

The dissolving wood pulp is transported in freight cars and trucks, while fiber bales are shipped in plastic films. This is necessary for product protection and transportation. Lenzing products require few packaging materials given the product to packaging weight ratio and the low share of packaging materials in total material inflows. The recycling of packaging for fiber bales lies outside of Lenzing’s operational system boundary due to a lack of control and influence on the downstream customer. Nonetheless, the company is currently evaluating potential for reducing packaging waste from goods sold.

The management of packaging waste is a shared responsibility between Lenzing and its business partners. Proper disposal, participation in recycling programs and take-back systems can significantly contribute to reducing packaging waste.

Property, plant and equipment

For Lenzing’s fiber and pulp production plants, please see the section “The locations of the Lenzing Group” in Lenzing`s Annual Report.

Prior to the pulping process, large equipment is already required for debarking and chipping entire wood logs, in addition to warehouses and conveyor belts for intermediate storage. Wood chips and process chemicals are turned into cooking liquor by different digesters, boilers, and tanks. Additional units for washing, screening and bleaching as well as drying chambers and sheet presses complete the equipment required for pulp production. Residual cooking liquor is treated with several recovery systems to separate valuable substances using condensation units, extraction and fractionating columns.

The production process of cellulose fibers involves an array of equipment for spinning the cellulose dope into fibers, including but not limited to tanks, various drums and reaction chambers, dryers and filtration systems. The key equipment for the spinning steps is spinneret devices, followed by machinery for stretching and cutting staple fibers, and washers, purification units, and dryers. Fibers are pressed into bales, wrapped in plastic foil and finally stored in bale warehouses before being transported by rail.

Both viscose/modal as well as lyocell fiber production entails equipment for the recovery of process chemicals including boilers, filtration and purification units, extraction columns, ovens and catalysts. Obviously, the production of biorefinery and co-products, involved storage towers and packaging units.

Table “Resource Inflows” describes Lenzing’s material resource inflows in terms of the overall total weights of technical and biological materials used in the year 2024. The most important raw materials (chemicals, wood and pulp) used to manufacture and package Lenzing’s products are included. The data is compiled from all Lenzing production sites and based on direct measurements (weighting) of the raw materials input into the manufacturing processes. The input of a raw material is defined as the purchased amount, adjusted for with the amount in storage. This data is released monthly by the sites’ operations or purchasing departments and fed into the Group database to be aggregated at the Group level. Except for the assurance provider of this report, raw materials inputs are not subject to external verification. However, the sustainably sourced biological materials are certified.

The sustainably sourced biological materials are wood and pulp and account for 72 percent of the overall total weight of materials used. For information on the certification schemes (FSC^® and PEFC), please see the “Sourcing” section of the “G1 Business conduct” chapter. For more information on cascading principles of biological materials, please see the “Biorefinery for pulp production” of this chapter.

Lenzing applies the best available techniques for solvent recovery in its viscose/modal and lyocell production processes, reducing the need for primary raw materials. In lyocell manufacturing, it is possible to recover 99.8 percent of the used NMMO. Carbon disulfide and other chemicals used to produce viscose and modal fibers can be recovered and returned to the process in place of raw materials or converted to the marketable co-product of sodium sulfate. Chemicals and solvent recovery are reflected in the high percentage of secondary or reused materials (48 percent). The quantity of recovered substances is based on direct measurements (flow meter readings) of the recovered chemicals.

Resource outflows

[ESRS E5-5; GRI 306-1, 306-2, 306-3, 306-4, 306-5]

Fibers and pulp

Lenzing’s main product outflows are regenerated cellulose fibers which are used e.g. for clothing, home textiles, personal care and hygiene products. The fiber portfolio includes three types of fibers: lyocell, modal, and viscose (rayon). Pulp and other biorefinery products as well as co-products from fiber production are sold to other industries.

Fibers with a benefit

Lenzing offers net-benefit products that deliver environmental and societal advantages as well as benefits for value chain partners, surpassing many competing alternatives. These products take the entire life cycle into account, encompassing both upstream and downstream value chain processes.

Moreover, TENCEL™ Lyocell and Modal and LENZING™ ECOVERO™ fibers are certified with the widely recognized EU Ecolabel¹. This label is awarded to products that meet high environmental standards throughout their entire life cycle.

In 2024, TENCEL™ Lyocell, VEOCEL™ Viscose and VEOCEL™ Lyocell were certified by Climate Partner. This certification enables the disclosure of voluntary financial contributions to GHG compensation projects as the last step in a five step protocol: climate action strategy (including carbon footprints) emission reduction targets, implemented reductions, financed climate projects and transparent communication.

For more information on products and technologies, please refer to the Lenzing website or the “Sustainable innovations” chapter.

Durability, repairability and recyclable content

Lenzing’s fibers materials are an intermediate product and integrated into finished products (e.g. t-shirts or wet wipes). In terms of the durability of materials, it is important to understand that durability is not solely determined by the fiber itself but is heavily influenced by the textile processing steps and ultimately through the construction of the final product. Once the fiber is spun, the “durability” of the final product is determined by several critical steps, such as fabric construction, dyeing processes, textile surface creation, finishing, etc. These processes, which vary significantly depending on the manufacturer, machine equipment and process parameters, are therefore part of the downstream value chain and have a major influence on product properties. Hence, comparing industry averages for fiber materials will not lead to significant insights, but optimization of specific products is necessary to improve durability. In addition, a distinction has to be made between textiles and nonwovens, as the sustainability considerations for production processes differ as well. Similarly, this applies to reparability and may be subject to modification if the minimum requirements change due to legal regulations.

As regenerated cellulose fibers can technically be recycled into new regenerated cellulose fibers, they consist of 100 percent recyclable content. The rate of recyclable content in product packaging is around 90 percent. This is an estimate for the whole Group based on exact figures from the Lenzing (Austria) site. The underlying assumption is that packaging made from a single component, such as PET only, is recyclable, while packaging made from two or more constituent materials is non-recyclable.

Biorefinery and co-products

Lenzing puts its biorefinery and co-products such as LENZING™ Acetic Acid Biobased, LENZING™ Furfural Biobased, xylose (wood sugar)⁵, LENZING™ Soda Ash or LENZING™ Magnesium-Lignosulfonate Biobased, to new uses in other industries.

Waste management

Lenzing uses licensed contractors to dispose of waste. Audits of these service providers are conducted at periodic intervals and any contractor found to be non-compliant has its contract terminated. There were no such cases in 2024. There were no audits conducted in 2024. The next scheduled audits will take place in 2025, a minimum of two audits is planned.

Waste is categorized in line with national legislation. There may also be long delays in obtaining the related data and information when an external party, such as an authorized waste management company, determines the management option of a waste stream. All these factors may result in significant fluctuations in waste reporting from year to year. The company’s approach to waste management uses a management hierarchy as its guiding principle. This means that Lenzing plans and prioritizes waste management as follows:

1. Prevention and reduction
2. Reuse and recycling
3. Energy recovery
4. Landfill

Wherever possible, waste is avoided or reduced, e.g. by modifying processes to increase material efficiency or by adopting good housekeeping and operational practices. Recyclable components of waste are separated. Non-recyclable components are disposed of in accordance with local legislation. Wherever possible Lenzing recovers energy from non-recyclable components in facilities such as incinerators. Landfilling of waste is subject to strict national regulations. Hazardous waste is either treated or disposed of in accordance with the applicable regulations.

All metrics in table 46 are based on direct measurements (weighting). The quantity of each waste shipment leaving Lenzing’s production sites is measured and recorded by the sites. The sites aggregate this data and report it via the Lenzing Group’s database on a yearly basis. The site data is then aggregated to arrive at Group totals. As for the external validation of the data, the relevant national authorities carry out waste inspections, which means that all sites need to keep proper records including the quantity of the waste. For payment reasons the quantity is also validated by the licensed contractors disposing of the waste.

Both the total amount of waste and the amount of hazardous waste decreased in 2024 (see table “Waste”). The new Indianópolis (Brazil) and Prachinburi (Thailand) sites optimized operations resulting in significant reductions in waste generation. Additionally, the Paskov (Czech Republic) site generated a large amount of excavated soil in 2023 whereas it did not in 2024. The excavated soil was recycled, and as the amount was so large, this resulted in a slightly lower percentage of non-recycled waste compared to this year.

On-site landfill is not included in the table (not a resource outflow) and amounted to 1,213 tons in 2024. Data for on-site incineration was unavailable. This paragraph refers to GRI 306-4 d. i. and 306-5 d. i.

The waste streams relevant to pulp and fiber production at the Lenzing Group include I) cellulose waste, such as discarded pulp or fiber waste, II) sludge from wastewater treatment plants, generated from the treatment of wastewater at the production sites, III) fly ash, bottom ash, and slags from boilers and incinerators, which are waste products of the combustion processes used in energy production and IV) chemicals waste such as spent acids or solvents. From a more general perspective, important waste streams are construction and demolition waste, packaging waste, and waste from electrical and electronic equipment.

The waste generated by the Lenzing Group contains a variety of materials. Biomasses are all cellulose forms of waste and fractions of sludges and ashes. Other waste streams are scrap metal such as aluminum, copper, iron, steel and non-metallic minerals, such as sand from blasting operations. Plastics are predominantly present in various types of packaging waste. There are no material waste streams containing critical raw materials or rare earths. Furthermore, the Lenzing Group does not generate radioactive waste.

1 The EU Ecolabel is recognized in all member states of the European Union, as well as Norway, Liechtenstein and Iceland. The voluntary label, introduced by an EU regulation (Regulation EEC 880/92) in 1992, has gradually become a reference point for consumers who want to help reduce pollution by purchasing more environmentally-friendly products and services. EU Ecolabel for textile products (license no. AT/016/001)

2 S.-J. Royer et al , Not so biodegradable: Polylactic acid and cellulose/plastic blend textiles lack fast biodegradation in marine waters | PLOS ONE, 2023

3 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.

4 Sophie Pasterk et al 2024, How regenerated cellulose fibers appear in the discourse on marine pollution with microplastic: a snowballing and network approach. Environ. Res. Commun. 6 112001DOI 10.1088/2515-7620/ad8ac3

5 Purified/marketed by a partner company