Sustainability strategy – “Naturally Positive”

Lenzing’s defined sustainability mission and vision act as guide to making better choices in everything it does – from the small decisions of everyday business to strategic and long-term decisions.

“Naturally Positive”, the Lenzing Group’s sustainability strategy is firmly rooted in the Lenzing Group’s new “Better Growth” strategy which was developed in 2022. Within the four strategic drivers (sustainability, innovation, premiumization and excellence), the corporate strategy defines the sustainability areas in which Lenzing can do most to create a more sustainable world. At the same time, this approach enables Lenzing to adequately consider and contribute to those United Nations’ Sustainable Development Goals (SDGs) on which the ’company’s activities have the greatest impact.

For further information, please see the “Sustainability Strategy” focus paper and the “SDG” focus paper.

Strategic focus areas of sustainability and the corresponding SDGs

Three strategic principles

Lenzing’s sustainability strategy builds on three strategic principles. Within those principles, seven focus areas were identified in which the Lenzing Group substantially contributes to creating positive impacts and benefits.

1. Driving systemic change

Complex global challenges call for a collaborative approach to designing systemic solutions that involve many stakeholder groups. As a leader in regenerated cellulose fibers, Lenzing has a particular responsibility and an ambition to help raise the bar for sustainability in the textile and nonwoven industries. Transparency and traceability are prerequisites for fostering trust and building long-term relationships. With its contributions to developing industry-wide methods, tools, and approaches, Lenzing is helping the industry to progress on its sustainability roadmap by overcoming critical challenges. Industry benchmarking tools such as ZDHC (Zero Discharge of Hazardous Chemicals) and FSLM (Facility Social Labor Module), concrete sustainability targets, supplier engagement, and physical and digital traceability tools contribute to this change.

2. Advancing circularity

According to Lenzing’s circular economy vision, “We give waste a new life. Every day”, Lenzing drives the industry towards a fully-fledged circular economy by striving to give waste a new life in all aspects of its core business and by co-developing circular solutions with potential partners in and outside the current value chain to close loops wherever possible. This vision is based on Lenzing’s determination to create value using as few virgin resources as possible and reduce the use of fossil carbon in the company and the value chain while improving sustainability performance.

The company unites the cellulose fiber cycle of its wood-based products (biological cycle) with its innovative technologies that focus on closing loops in the production and recovery of raw materials and chemicals (technical cycle).

Dedicated targets for the development of recycled content-based fibers and circular business models with value chain partners contribute to this principle. For more information, please see the “E5 Resource use and circular economy” chapter.

3. Greening the value chain

Lenzing’s responsible practices and innovative products enable its customers and value chain partners to improve their environmental and social performance and achieve their sustainability targets and commitments. Responsible sourcing practices, water stewardship, decarbonization, and sustainable innovations form the basis of Lenzing’s efforts in greening the value chain. The sustainability targets for air emissions, water emissions, pollution, and climate protection are the cornerstones of Lenzing’s responsible entrepreneurship and act as innovation drivers.

The main challenge ahead relates to Lenzing’s climate action plan. Currently, there are many barriers to executing the action plan. These include the availability and accessibility of grid-based renewable electricity, costs of renewable fuels (green hydrogen, ammonia) that are not equal to those of fossil-based electricity and fuels, the lack of a level playing field for low carbon products, and the willingness of business partners to share costs and risks of investments.

For further information on Lenzing’s sustainability strategy, strategic principles, and focus areas, please see the “Sustainability strategy” focus paper.

Sustainability policy

In the Sustainability Policy, which has been approved by the Excutive Committee, Lenzing commits to improving sustainability performance, resource efficiency, and decarbonization along the entire value chain. Lenzing aims to embed best sustainability practices, lifecycle and long-term thinking, transparent and respectful collaboration and partnerships with its stakeholders in all activities and business decisions to meet society’s long-term goals. Lenzing continuously identifies, assesses and manages environmental risks, opportunities and impacts and regularly monitors, reviews and reports on progress. Lenzing is committed to the Paris climate agreement (COP 21) and the United Nations Framework Convention on Climate Change (UNFCCC), promoting decarbonization, as well as the conservation of natural resources, energy, and biodiversity. Additionally, Lenzing upholds human rights and labor, reflecting its dedication to internationally recognized sustainability and ethical practices. Lenzing’s approach is creating more positive impacts and benefits thanks to its business practices and products to make the world a better place. This covers the three dimensions of PEOPLE, PLANET and PROFIT, balancing the needs of society, the environment, shareholders and partners. The Sustainability Policy is available on Lenzing’s website.