Management approach
Management approach
Material topic: Sustainable innovations & products
[ESRS 2 MDR-A 68a; GRI 3-3]
Sustainability acts as a guiding principle for Lenzing’s innovation and product development, which is driving systematic change across the textile and nonwoven industries. The continual improvement of existing products and production technologies builds business resilience and reputation, as well as facilitating the supply of products to value chain partners that contribute to the eco-credentials of their own portfolios. Life cycle thinking and the net-benefit concept present many opportunities for Lenzing to provide customers with a variety of more environmentally friendly solutions, such as biodegradable fibers for the manufacturing of agricultural and hygiene products.
Positive actual impacts
- 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)
Opportunities
- Opportunity for Lenzing as sustainability leader in pulp and fiber manufacturing (own operations, downstream value chain)
- Opportunity to help partners in the value chain achieve their circularity and recycling goals (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
- Policy on Safety, Health and Environment (SHE)
- Group Environmental Policy and Standard
- Global Supplier Code of Conduct
- Chemical Management Group Standard
Actions taken [ESRS 2 MDR-A 68a]
- 1,115 patents and patent applications filed across 145 patent families and in 46 countries
- Sustainability drives innovation:
- Fine and coarse hydrophobic lyocell fibers
- Net-benefit concepts:
- Further extension of low-carbon fiber products with corresponding offsets of remaining emissions – fibers with climate action
- TENCEL™ Modal with Eco Color technology and TENCEL™ Modal with Indigo Color technology (spun-dyed fibers)
- Research Collaborations:
- Numerous R&D partnerships with customers, companies, universities, and institutes (national and international)
- Lenzing contributing to leading multi-stakeholder initiatives
Further actions (not described in more detail in the chapter)
- Every idea is evaluated regarding its sustainability impact such as GHG emissions – R&D projects will proceed only if predefined sustainability criteria are met
- Adaption of processes and interfaces between innovation teams and other departments according to the new organizational structure, to ensure continuation of close and efficient cooperation
- Development of a digital global production overview system to optimize resources and energy use for the production of pulp and fibers
- Cooperation between Södra and Lenzing in the field of textile recycling
- Lenzing is a partner in the Horizon Europe Circular and Sustainable Textiles and Clothing (CISUTAC) project
- Through CISUTAC, Lenzing participates in ECOSYSTEX, a community of 26 EU-funded projects focusing on textile sustainability that aims to ensure collaboration across project consortia
- Advancing the renewable carbon concept as a member of the Renewable Carbon Initiative (RCI)
Sustainable materials & life cycle assessment (LCA)
- Further extension of LCA studies for standard and specialty fiber portfolio: lyocell update of all sites as well as LENZING™ ECOVERO™ REFIBRA™ – independently validated by third-party consultant QUANTIS
- Lenzing’s fibers listed as “preferred fibers” in Textile Exchange’s Preferred Fiber Report 2024
- Lenzing contributed to the Textile Exchange’s Corporate Fibers and Materials Benchmark Program (CFMB), including the Biodiversity Benchmark – survey
- Continuation of cooperation with Cascale and its’ Material Sustainability Index (MSI) – Lenzing provides yearly data updates in the database
Sustainability targets
- “Near-term science-based target”
- “Long-term science-based net-zero target”
- “Wastewater” target
- “ZDHC lyocell” target
- “ZDHC viscose” target
- “FEM” target
- “Textile recycling” target
- “Circular Business Model” target
Stakeholders
- Customers
- Regulatory bodies (national, European, international)
- NGOs, active in the field of (textile) sustainability, such as Canopy
- Associations and networks such as RCI, European Polysaccharide Network of Excellence (EPNOE) and the European Platform for the Future of Textiles and Clothing (Textile ETP)
- Technical and standardization committees
- Funding authorities (e.g. annual talk with FFG)
- Framework of the PRO2 process for project management system
- Södra
- Wood K Plus
- Christian Doppler Laboratory
- Reducing Energy and Waste using AI (REWAI)
- Circular and Sustainable Textiles and Clothing (CISUTAC)
- Bilateral research
- Industry associations and initiatives
Responsible
- CPO/CTO
- VP Innovation & Excellence
- VP Corporate Sustainability
- EVP Commercial Nonwoven
- EVP Commercial Textile
- SVP Global Supply Chain/Purchasing
Supporting
- Commercial Nonwovens and Textiles
- Global Strategy and M&A
- Global Engineering
- Operations
- Corporate Sustainability
- Global HSE
- Research & Development
Sustainable innovations represent one of the strategic focus areas of Lenzing’s “Naturally Positive” sustainability strategy. Lenzing is committed to bringing cellulose-based solutions to the market that offer consumers more sustainable alternatives without compromising on quality and performance. Sustainable innovations include substantial efficiency improvements in existing technologies and technological breakthroughs that lead to net-benefit products. Lenzing’s innovations also aim to drive systemic change through forward-looking solutions, future-proof business models and a multitude of collaborative activities. The implementation of digital tools and solutions further drive innovation towards greater transparency of businesses processes and products. For more information, please see the “Transparency” chapter.
Innovation within the Lenzing Group is represented in various organizational units. Its application and related product development form part of dedicated groups within the business segments of Textiles and Nonwovens. Technological development (for both pulp and fiber) and more fundamental research is located in the Global Innovation department. Global and commercial innovation teams closely interact and incorporate the ideas of everyone within Lenzing, with all employees invited to initiate or contribute to innovation projects.
[ESRS 2 MDR-A]
Due to restructuring in some parts of the organization, a straight comparison of the R&D expenditure with former years is not completely feasible. In 2024, R&D expenditure, calculated according to the Frascati method (minus funding received), accounted for EUR 30.4 mn (2023: EUR 31.6 mn, 2022: EUR 34.8 mn). The 1,115 patents and patent applications (in 145 patent families) that Lenzing holds in 46 countries worldwide provide another indication of the Lenzing Group’s innovativeness.