About the sustainability statement

[ESRS 2 BP-1; GRI 2-1, 2-2, 2-3]

This non-financial statement is the combined, consolidated, non-financial statement for the Lenzing Group¹ (in accordance with Section 267a of the Austrian Business Code (UGB)) and for Lenzing Aktiengesellschaft (in accordance with Section 243b UGB) as part of the management report.

The non-financial statement was prepared in accordance with the European Sustainability Reporting Standards (ESRS) in preparation for the reporting obligation under the CSRD and in line with the requirements of the Austrian Sustainability and Diversity Improvement Act (NaDiVeG). In addition, the statement was prepared in accordance with the Global Reporting Initiative (GRI) standards, also in the reporting period 01.01.2024-31.12.2024. A detailed GRI content index can be found on the website for the Annual and Sustainability Report 2024 of the Lenzing Group. In terms of indicators for which meaningful figures can be provided, separate data for Lenzing Aktiengesellschaft can be found in the Annex (in accordance with the legal requirements stipulated by the Austrian Sustainability and Diversity Improvement Act (NaDiVeG²) and the AFRAC recommendation.) Please note that comparative figures reported under GRI in the previous years were partly translated to measurement units required by ESRS. This could limit comparability with other GRI reports, such cases are noted in the GRI index.

This report covers all the fully consolidated legal entities of the Lenzing Group. Detailed information can be found in the Lenzing Group’s Annual Report (note 3 and note 41). In addition to the fully consolidated legal entities of the Lenzing Group, the joint venture RVL Reststoffverwertung Lenzing GmbH, Lenzing, Austria is also included in the non-financial statement as Lenzing has operational control. Associates have been assessed and where relevant (and material) have been included in the corporate carbon footprint. In accordance with the legal requirements, the reporting cycle for Lenzing’s sustainability performance is annual.

As the report fully complies with the ESRS for the first time, comparative information is not reported according to ESRS 1.136. Lenzing AG includes further information and key figures on the basis of the Taxonomy Regulation (EU) 2020/852.

To satisfy the decision-making needs of some of Lenzing’s stakeholders, a decision was made to include two ESRS datapoints in this report, although they are not material: S1-8 Collective bargaining coverage and social dialogue and S1-10 Adequate wages.

For confidentiality reasons, Lenzing has omitted information regarding: numbers for specific loads as this requires total fiber and pulp production volumes for Lenzing production sites (ESRS E2-3 23 a); precise figures and description about energy consumption according to GRI 302-1 and 302-4.

[ESRS 2 BP-2; GRI 2-3, 2-4]

Value chain

For information on Lenzing’s upstream and downstream value chain, please see the “Value creation of the Lenzing Group” section in this chapter. The transitional provision in ESRS 1 Chapter 10 was used for some of the required information on the value chain. Lenzing will make further efforts to this end. For the “S2 Workers in the value chain” chapter in particular, Lenzing does not yet have full insight into its value chain, which will have to be improved in the future.

The EU Taxonomy metrics are subject to assessment and estimates. For further information on the EU Taxonomy, please see the ”Information on environmentally sustainable economic activities according to the EU Taxonomy Regulation” chapter.

The GHG emissions metric includes value chain data with estimated values. Information about the assumptions and level of accuracy is provided in the “Accounting principles” section (E1-6) in the “E1 Climate change” chapter.

Changes in preparation or presentation of sustainability information

Additionally, the metric for specific water use has changed from “m³ per ton of produced pulp and fiber” as a percentage relative to the base year 2014 to water intensity in “m³ per million EUR revenue”. Similarly, the specific primary energy consumption metric has changed from “GJ per ton of produced pulp and fiber” to energy intensity in “MWh per revenue of high climate impact sectors”. These new metrics are mandated by the ESRS. See the new metrics in the “E1 Climate change” and “E3 Water and marine resources” chapters.

A recalculation of 2017, 2021, 2022, and 2023 scope 1 GHG emissions was carried out due to a regulatory change affecting the Lenzing (Austria) site. Specifically, the fossil share of external waste being burned at the site was previously estimated but is now based on direct measurements. As the fossil share measured is higher than the estimate, this leads to a proportional increase in the fossil share and a reduction in the biogen scope 1 GHG emissions (by about 160 to 170 kilotons of CO₂ eq.).

Contact for inquiries

Dr. Krishna Manda
VP Corporate Sustainability
Lenzing Aktiengesellschaft
4860 Lenzing
Austria
Phone: +43 7672 701-0
E-mail: sustainability@lenzing.com

All focus papers mentioned in this report can be found here: https://www.lenzing.com/investors/publications

Incorporation by reference

The following table shows which disclosure requirements of the non-financial statement are incorporated by reference.

1 “The Group” (for better readability occasionally referred to as “Lenzing”) comprises Lenzing Aktiengesellschaft and its subsidiaries.

2 Nachhaltigkeits- und Diversitätsverbesserungsgesetz (Section 243b, Section 267a UGB)