Sustainability targets, measures and progress

To improve the Lenzing Group’s specific sulfur emissions by 50 percent by 2023 (baseline 2014)^a

Lenzing implements a carbon disulfide adsorption plant (CAP) upgrade at the Purwakarta plant (Indonesia)

The carbon disulfide adsorption plant (CAP) in the Purwakarta plant (Indonesia) was succesfully implemented and started operating in July 2023. Viscose fibers from this plant are now EU Ecolabel certified. After being in operation for more than a year, the installed CAP contributed to a corresponding reduction in sulfur emissions. Hence, the “Air emission” target was achieved in 2024.

Increasing the share and types of alternative feedstocks, e.g. by using recycled textile waste or agricultural waste until 2030

Increasing recycled content in viscose and lyocell fiber types from 20 percent to minimum 30 percent from post-consumer waste on a commercial scale by 2030

Innovating the use of at least 5 alternative feedstocks providers (e.g. from recycled textiles and agricultural waste) until 2030

Lenzing has continued its efforts to strengthen technology for reusing cotton-rich textile waste in textile fiber production. Solid efforts have been made to prepare for the treatment of increasing available volumes of post-consumer household textile waste, driven by upcoming EU regulations forcing collection and treatment according to the waste hierarchy. However, the challenging economic environment, price pressures in the textile value chain, lack of demand from the market, and the substantial investment required to scale up a Textiles recycling network have triggered a change in the ambition level and reformulation of the orginal target from “To offer viscose, modal and lyocell staple fibers with up to 50 percent post-consumer recycled content on a commercial scale by 2025” to “Increasing the share and types of alternative feedstocks, e.g. by using recycled textile waste or agricultural waste until 2030” with an extended timeline. The target year has also been extended by five years to take account of these challenges. Along with this change in the target, the measures used to track the progress have been updated as well, moving from “All fibers with recycled content offered by Lenzing contain a share of post-consumer waste” to “Increasing recycled content in viscose and lyocell fiber types from 20 percent to minimum 30 percent from post-consumer waste on a commercial scale by 2030” and from “Lenzing increases the recycled content from 30 to 40 percent for fibers produced with REFIBRA™ technology for textiles” to ”Innovating the use of at least 5 alternative feedstocks providers (e.g. from recycled textiles and agricultural waste) until 2030” with an extended timeline. Despite these challenges, Lenzing consistently offers LENZING™ ECOVERO™ x REFIBRA™ fibers with 20 percent recycled content on a commercial scale. The cooperation with Södra on Textiles Recycling has also continued successfully throughout this year.

To innovate a new circular business model by closing the loops for post-consumer materials and partner with 15 key supply chain companies by 2025

Lenzing is pioneering innovative business models focused on circularity, encompassing all aspects from chemical textile recycling, such as their collaboration with Södra, to integrating various recycling technologies. In 2024, for instance, Recyc Leather and Lenzing combined recycled leather fibers with TENCEL™ Lyocell fibers to develop a next-generation material for footwear, which was utilized by the Danish contemporary brand GANNI. As another example, Lenzing and an innovative network of partners have developed a concept for recycling geotextiles made from Lenzing nonwoven fibers. After the geotextiles successfully protected a glacier field from melting in summer, instead of being disposed they were collected and recycled into a fashionable ‘Glacier Jacket’ garment. Additionally, the reuse and resultant minimization of residues from different recycling methods are being evaluated. Due to current market challenges towards circularity such as the lack of demand from the market the number of key supply chain partners has been reduced from 25 to 15.

To achieve ‘aspirational’ MMCF level for ZDHC wastewater and air emission guidelines at Lenzing viscose facilities by 2026

Lenzing viscose sites have continuously implemented the ZDHC MMCF guideline in its revised version 2.2 and Lenzing is actively engaged in the MMCF version 3 revision. The implementation of the wastewater guideline continued in 2024. In addition to the “Wastewater” and “Air emission” targets all Lenzing viscose sites completed their first Supplier to Zero Platform assessment and successfully achieved the overall performance at ‘aspirational’ level.

To achieve ‘aspirational’ MMCF level for ZDHC wastewater and responsible production guidelines at Lenzing lyocell facilities by 2028^b

First ZDHC Gateway reporting of MMCF wastewater guideline v2 at all lyocell sites^c in 2023

First supplier platform implementation and reporting of MMCF Guideline v2 – Responsible fiber production at all lyocell sites^c in 2023

Lenzing lyocell sites^c achieve ‘aspirational’ level for wastewater and responsible production

Lenzing site in Grimsby (UK) achieves ‘foundational’ level for wastewater and responsible production

Lenzing site in Grimsby (UK) achieves ‘aspirational’ level for wastewater and responsible production

The implementation is on track with all lyocell sites registered for reporting in 2023. Lyocell sites carried out the wastewater testing and completed the MMCF assessment on the Supplier to Zero platform in 2024. However, due to the absence of ZDHC certified labs in the USA and UK, the wastewater testing at these two sites was unable to be carried out in 2024. The remaining sites completed the reporting on the ZDHC gateway, the assessment on the ZDHC Supplier platform and have achieved ‘aspirational’ level. The Grimsby (UK) site target to achieve ‘foundational’ level has been adjusted from the target year 2025 to 2026 due to supply chain disruptions stemming from global issues and technical challenges. However, the site has already made significant progress and will have a modern WWTP ready for start-up in the beginning of 2025.

To improve Lenzing Group’s specific wastewater emissions (chemical oxygen demand (COD)) by 20 percent by 2024 (baseline 2014)^a,b

Lenzing implements a wastewater treatment plant upgrade at the Purwakarta site (Indonesia)

Lenzing implements a new wastewater treatment plant at the Grimsby (UK) site

Construction of the wastewater treatment plant in Purwakarta (Indonesia) took place in 2023, and the start-up completed at the beginning of 2024. The wastewater treatment plant project in Grimsby (UK) remains on track and commissioning of the plant has begun. It will move into beneficial operation at the start of 2025, paving the way for ZDHC target fulfillment. However, the COD reduction target could not be achieved in 2024, since it needs full year operation of the Grimsby (UK) wastewater treatment plant.

To implement a conservation solution of 20 ha in Albania in combination with a social impact project by 2024

Lenzing reforests 20 ha of degraded land in Albania

Lenzing establishes a training center for local communities in Albania

Lenzing supports interdisciplinary vocational trainings and school partnerships in Albania

In 2023, the scope of the project was significantly expanded to other countries in the Western Balcan region to include Kosovo, North Macedonia and Montenegro. This expansion was funded by Austrian Development Agency (ADA) and Lenzing, and is coordinated by Inspiring Cooperation Empowering People (ICEP). All further measures are at the discretion of the project owner (ICEP); Lenzing has completed and fulfilled all planned measures.

To implement conservation solutions on 20,000 ha at the new pulp mill in Indianópolis (Brazil) by 2030

Lenzing increases the protected area at the site in Indianópolis (Brazil) from 13,000 ha to 20,000 ha

Lenzing achieved the original goal of 15,000 ha in 2022 and increased the total conservation area in Brazil even further than the target, to more than 20,000 ha in 2024. In 2024 the target ambition and measure was increased to 20,000 ha.

To engage in further conservation, biodiversity protection and restoration activities in regions where forests are at risk or should be improved by 2025

Lenzing supported several projects outside of its value chain in 2024 such as a project in Austria for the restoration and protection of moorland and peat bogs, and projects for forest conservation through social impact in DR Congo, Burundi and Tanzania. For a detailed description of all projects, please see the “E4 Biodiversity and ecosystems” chapter.

To engage key suppliers, covering more than 80 percent of spend, to improve sustainability performance

Lenzing assesses 95 percent of its top suppliers representing 80 percent of spend via EcoVadis, the Together for Sustainability Audit or an internal assessment/audit by 2025.

Lenzing considers climate, water and chemical aspects in the procurement contractual process of its top chemicals suppliers

More than 800 of Lenzing’s suppliers are assessed and monitored by EcoVadis. Four suppliers were audited by Lenzing through the Together for Sustainability audit program. Engaging and onboarding suppliers is an ongoing process, whereby buyers strive to engage the biggest possible portion of all of Lenzing’s key suppliers. Around 60 percent of the Global Procurement spend, including wood and pulp was covered by these assessments. Supply agreements signed with the top chemical suppliers include sustainability clauses.

To implement and annually update the Facility Environmental Module (FEM) in all pulp and fiber production facilities and share verified modules with customers from 2024^d

Lenzing conducts self-assessments at existing sites in 2022 and first external verification by 2023

Lenzing conducts self-assessments and trainings for new legal entities (Prachinburi (Thailand) and Indianópolis (Brazil)) in 2023 and first external verification by 2025

In 2024, Lenzing continuously implemented the Higg FEM assessment. In November 2023, Cascale published the Higg FEM 4.0, including a major revision and several changes in terms of verification requirements. Lenzing has conducted self-assessment for all sites and only three sites located in Thailand, China and Indonesia were verified in 2024. Verification of these three sites has been completed, with the final score of around 90. Due to revision of Higg FEM 3.0 and changes, Indianópolis (Brazil) could not be verified in 2024. Thus the measure year is moved from 2024 to 2025 and is still on track. The overall target year has been changed to “continuous” as it is an ongoing effort to be continuously achieved.

To reduce scope 1 and 2 absolute greenhouse gas (GHG) emissions by 42 percent and scope 3 absolute GHG emissions by 25 percent until 2030 (baseline 2021)^f,g

To achieve at least a 90 percent reduction in absolute GHG emissions (scopes 1, 2 and 3) (baseline 2021)^f,g

Lenzing achieves 100 percent green electricity for four sites

Lenzing phases out coal in its Nanjing (China) operations

Lenzing installs on-site photovoltaic power generation at the Lenzing plant

Lenzing increases the share of renewable energy consumed by the Lenzing Group and supplies excess bioenergy from the pulp production facility in Indianópolis (Brazil)

Lenzing’s lyocell facility in Prachinburi (Thailand) achieves scope 1 and 2 carbon neutrality by 2030 by using 100 percent bioenergy and in the medium term achieves 95 percent biomass energy by 2027

Lenzing engages 20 key suppliers, by spend and CO₂ impact, in order to reduce Lenzing’s scope 3 emissions and incentivize the suppliers that help Lenzing offer more low-carbon-footprint fibers

Lenzing engages and enables 80 percent of ‘customers with approved SBT and commitment’ (textile and nonwoven brands/retailers as well as manufacturers working with LENZING™ fibers) to fulfill their ambition by providing information on low carbon footprint specialty products such as TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers

Lenzing runs a campaign to reach 50 percent of TENCEL™ and VEOCEL™ customers (textile and nonwoven brands/retailers as well as manufacturers using the TENCEL™ and VEOCEL™ brands) to promote the use of innovative lenzing fibers with environmental benefits such as low-carbon intensity and to reduce reliance on fossil based materials wherever possible.

Six production facilities procured 100 percent renewable electricity. Gas pipe connections and constructions in Nanjing (China) have been finished. The product carbon footprint platform of TfS was adopted internally and external trainings are taking place. Lenzing is in continuous discussions with top suppliers and also shares its expertise for obtaining low-impact chemicals (e.g. green electricity and LCA). The site in Prachinburi (Thailand) has been facing some challenges in consistently receiving 100 percent biomass energy due to the reliability of the supply partner’s biomass co-generation plant; however, the site has achieved 100 percent biomass energy for a few months during the year. Therefore, both parties have agreed to work out short-term and long-term technical solutions. The discussion and negotiation on securing biogenic energy to reach 100 percent consistently in the future are ongoing. Additionally, given the current global economic situation, many businesses and end customers have been deprioritizing sustainability in favor of low-cost sourcing and are therefore less willing to pay for low-carbon products. Customer engagement has been taking place to position fiber products with a low carbon footprint to support a reduction in customers’ scope 3 emissions reduction. According to these challenges the measure has been reformulated from “Lenzing achieves scope 1 and 2 carbon neutrality at its new lyocell fiber production site in Prachinburi (Thailand) by using 100 percent bioenergy” to “Lenzing’s lyocell facility in Prachinburi (Thailand) achieves scope 1 and 2 carbon neutrality by 2030 by using 100 percent bioenergy, and in the medium term achieves 95 percent biomass energy by 2027”, and the target year has been extended from 2023 to 2030. The target ambition for customer engagement has been increased form 50 percent to 80 percent of “customers with approved SBT and commitment”.

To reduce scope 1, 2, and 3 (purchased goods and services, upstream and downstream transport, and fuel and energy-related activities) GHG emissions by 50 percent per ton of fiber and pulp sold by 2030 (baseline 2017)

Lenzing reduces 40 percent of specific GHG emissions per ton of pulp and fiber sold (baseline 2017)^b,e

Lenzing reduces 50 percent of specific GHG emissions per ton of pulp and fiber produced (baseline 2017)^e

The previous near-term science-based target is still relevant for remuneration and corporate targets with the same baseline for 2017. Thus, the realization and achievement of measures of the updated near-term and long-term science-based targets will result in reaching those linked targets.

To have a continuously valid third-party audited accredited social certificate for every Lenzing Group production (fiber or dissolving wood pulp) site by 2024^d

Lenzing implements and annually updates the Facility Social Labor Module (FSLM) at all pulp and fiber production facilities and shares verified modules with customers from 2025 onwards

FSLM verification (self-assessment and onsite audit) was successfully completed in 2024 at the Mobile (United States), Grimsby (UK), Nanjing (China), Purwakarta (Indonesia), Prachinburi (Thailand) and Indianópolis (Brazil) sites. Due to the unavailability of auditors verified by SLCP, the Paskov (Czech Republic), Lenzing (Austria) and Heiligenkreuz (Austria) sites were only able to complete the self-assessment in 2024, but not the entire verification process. Thus the measure year is moved from 2024 to 2025 and is still on track. The overall target year has been changed to “continuous” as it is an ongoing effort to be continuously achieved.

To create an empowering work environment by respecting human rights, employee wellbeing and diversity

Lenzing implements training courses for 75 percent of the workforce on diversity, discrimination, the non-discrimination policy, and human rights

Lenzing increases its proportion of women to 22.5 percent in all positions graded 5a and above by 2025^b

Lenzing achieves an inclusion Index score of 75 percent in the global Lenzing Climate Survey by 2026

Lenzing establishes a working condition policy

The Global Equity, Diversity and Inclusion (EDI) policy was relaunched with a training video for all employees in multiple languages. A third employee resource group (ERG) PrideAlliance@Lenzing was initiated to further improve equality and inclusion for LGBTQ+ community within Lenzing, while the other two ERGs, Women@Lenzing and Multicultural@Lenzing remain in place.

To continuously support the development of local communities near Lenzing production sites and support social welfare programs to 2025 and beyond