Metrics and targets

[ESRS E3-3; GRI 3-3e, 303-1]

See “Sustainability targets” in the management approach section 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. For targets relating to water pollution see the “E2 Pollution” chapter.

The Higg Facility Environmental Module (Higg FEM) is a standardized tool that is designed to measure and evaluate the environmental performance of companies at the production facility level. It provides a comprehensive overview of a facility’s environmental impact, covering aspects such as energy use, water consumption, air emissions, and waste management. Due to industry initiatives and standardized approaches for monitoring and improving environmental performance in the value chain, many customers have been requesting the implementation of FEM to capture data on suppliers’ environmental aspects.

In order to ensure water quality and availability at Lenzing’s production sites, Lenzing aims to continuously reduce water consumption and water-related emissions. Various elements are considered within the target-setting process, which acknowledges that the water scarcity situation is changing in many regions due to climate change. The targets were defined using a comprehensive approach that includes harmonized industry benchmarking to promote transparency in the value chain, as well as contributions to relevant Sustainable Development Goals (SDGs), that are strongly aligned with and significantly support the corporate sustainability strategy. Lenzing set the FEM target to improve transparency by implementing the Higg FEM for the first time in 2017 (baseline year), starting with zero FEM-verified sites (baseline value). Each site has set individual water targets for specific baseline and target years.

The Higg FEM provides a clear picture of a facility’s water footprint, enabling the reduction of risks related to water use and helps to devise measures to enhance water efficiency. In this context, the FEM-target aligns with the Lenzing Water Policy by providing monitoring mechanisms for the continuous evaluation and improvement of water-related metrics, thereby supporting the commitment to sustainable water management and conservation. Furthermore, Lenzing’s voluntary FEM-target addresses the management of material impacts, risks, and opportunities, such as water consumption at a facility level and the management of operations in water risk and water stress areas. For more information on water risks areas, please see the “Water consumption” section. Measures to reduce negative impacts on water quality are addressed in the “E2 Pollution” chapter. The Group Environmental Management team was an instrumental stakeholder for setting the target together with the Corporate Sustainability team.

Lenzing does not have a target regarding the downstream aspects of the “Negative impact on water resources through water withdrawal by Lenzing and its value chain”, Lenzing has been prioritizing and working on key topics in a step wise manner.

Water consumption

[ESRS E3-4; GRI 303-3, 303-4, 303-5]

Target setting also considers the contextual situation of water resource aspects. The implementation of Higg FEM requires production facilities examine prospective water withdrawal and/or consumption, aiming for a reduction in the corresponding area.

The objective of water management at Lenzing is to ensure efficient use of precious water resources, such as recycling and reusing water in operations. The pulp mill at Paskov (Czech Republic) has a closed-loop cooling water system and therefore requires little make-up water to compensate for losses. Furthermore, integrated pulp and fiber production at the Lenzing site (Austria) saves water by skipping the process of drying and re-moistening market pulp. Pulp and fiber production facilities obtain water from adjacent water bodies (mainly rivers and groundwater) and municipal local suppliers. Substantial amounts of water are consumed by the inherent moisture uptake of cellulose fibers and vaporization in the cooling process, as water serves as a cooling and process agent during manufacturing. The spin bath in the lyocell process contains water and the solvent NMMO to dissolve the cellulose polymer prior to spinning. The viscose process uses a mix of process chemicals and water. In both production technologies water is recycled and reused by separating it from process chemicals and/or solvents with high efficiency (see also “E5 Resource use and circular economy” chapter). This is the state-of-the-art technology used at all Lenzing facilities. It enables water to be saved, provides optimal pre-treatment for water discharge, and optimizes fiber properties and quality. With the help of the recovery systems, Lenzing gains marketable co-products and reusable process chemicals. A final wastewater treatment stage reduces effluent charge, aiming to avoid potential harm to receiving water bodies by exceeding local quality requirements.

The total water withdrawal, discharge and consumption increased in 2024 because of higher production output. However, the only site located in an area of water risk and high-water stress, Prachinburi (Thailand), stabilized its operations resulting in lower water withdrawals and discharges year on year.

Lenzing has revised its water intensity metric to ensure compliance with the ESRS. The previous metric of “water withdrawal per pulp and fiber produced” was replaced by “water consumption per revenue”.

Total water recycled and reused is reported for the first time. The largest contributions are from recirculating cooling water and process water recycling in lyocell production. For a description of the scope, accounting principles and limitations of the data, see below.

Accounting principles

Lenzing’s water monitoring and reporting follows its externally certified ISO 14001 environmental management system. All production sites comply with local legal and permitting requirements. Water withdrawal and discharge are measured and are reported based on continuous metering. The sources of all withdrawals, as well as the destinations and quality of discharges are monitored and reported in tables “Water withdrawal” and “Water discharge”. The sites provide this information to the Group database monthly. The data is then aggregated for Group-level reporting. The water consumption is calculated as the difference between discharge and withdrawal. While the Group-level data is not validated by an external body other than the assurance provider, water withdrawal and discharge monitoring are subject to inspections by local authorities at the sites.

The quantification of water recycling flows on a Group level is a new requirement for annual reporting. Water recycling and reuse are practiced by all Lenzing sites and water that enters the production sites may be used multiple times before being discharged back into the environment. Water used in the fiber and pulp production processes (process water), cooling water and steam condensate are generally recycled at the sites and included in the total in Table “Water consumption”. The quantification of the Indonesian site’s recycling practices is still underway and is not included in this report. The reason is that water recycling flows are very specific to each site. Aspects that influence water recycling are e.g. the local climate, access to cooling water or technological and know-how related.

For 2024 reporting, particular pulp and lyocell process water recycling flows are included. For a description of water reuse in lyocell production, see the “Actions” section above. However, many complex recycling systems, such as the reuse of water in different fiber washing steps are not represented in this report but are subject to further investigation.

The reported total also includes water recycled in cooling towers and non-contact heat exchange operations. The Lenzing Group operates recirculating cooling systems with cooling towers. Relative to once-through cooling systems, this allows for the recycling of very large amounts of water. The amount of water recycled in such cooling systems is calculated from cooling tower parameters and based on direct measurements (flow meter readings). The Indonesia, USA and Czech sites cooling water recycling and some individual cooling towers at other sites are not yet included in reported values as the required data reporting processes are still being established.

As the technical specifications are still under assessment, there is currently no established foundation or sufficient data available to provide a reasonable estimate of missing water recycling and reuse flows.