Impact, risk and opportunity management
[ESRS S4-1; GRI 2-23, 2-25, 3-3c]
Policies
Established policies at Lenzing adopt the general OECD Guidelines for multi-national enterprises (e.g., consumer health and safety, fair marketing practices etc.). These not only form part of its strategy for product assurance and safety, but also support the effort to produce high-quality products that cover all consumers and end-users needs related to personal safety, wellbeing and functional convenience without any distinction or categorization.
The Lenzing policies mentioned in this chapter cover consumers and end-users indirectly. Lenzing primarily operates in a business-to-business (B2B) environment whereby its products are converted into finished products by its direct and indirect customers, who predominantly bear the responsibility of how the finished products impact the human rights of consumers and end-users. Therefore, Lenzing does not have dedicated human rights policy commitments on health and safety relevant to consumers and end-users, nor any dedicated remediation approach besides the public availability of the whistleblower system.
Quality Policy
Lenzing emphasizes innovation and technology in manufacturing high-quality products, collaborating closely with its key suppliers for consistency. The company adopts a customer-centric approach and involves all employees in enhancing standards. To provide immediate technical support, global centers of excellence are established. Continuous improvement is driven by customer feedback and product benchmarking. Lenzing has a group-wide integrated management system, setting and reviewing challenging targets and key performance indicators to enhance systems. Lenzing ensures compliance with regulations and legislation that affect Lenzing businesses and products and employs (independent) third-party certifications for standards and products, and management systems. The Vice President of Operations Service Group is the most senior level who is ultimately accountable for the implementation of this policy, while the Head of Quality & PSRA Management is responsible for its actual implementation. The content of the policy is aligned with the requirements set forth in the ISO 9001 certification requirements. Lenzing’s Quality Policy covers all legal entities, as well as the products and services provided to its customers.
The Quality Policy covers the following opportunities: Opportunity to achieve business and sustainability targets by monitoring and improving manufacturing processes; Opportunity for market-leadership in terms of product safety and consistency, application performance and service.
Product Safety Policy
This policy is guided and driven by high corporate values. With this policy, Lenzing is committed to manufacture high-quality products in line with high environmental and working safety standards and considering the needs and safety of all consumers and end-users. Lenzing maintains an internal database of intentional product ingredients, including safety, health and environmental data. Product testing and labeling plan according to the applicable international standards, certifications, norms and legislation that ensure product safety for all customers and end-users is also in place. Furthermore, Lenzing refrains from animal testing1 of the products or ingredients, unless this is e required by law or there is no viable alternative. If testing on animals is unavoidable, it is kept to a minimum following the principles of animal welfare as defined by the 3Rs (Replacement, Reduction and Refinement). The Vice President of Operations Service Group is the most senior level who is ultimately accountable for the actual implementation of this policy, while the Head of Quality & PSRA Management is responsible for its implementation. The content of the policy is aligned with the requirements set forth in global and regional regulations related to product safety. Lenzing’s product safety policy covers all legal entities as well as the products and services provided to its customers.
The Product Safety Policy covers the following impact and risk: Potential negative impact on consumer’s health and safety in case of non-compliance; Risk of law suits, monetary and reputational loss in case of non-compliance.
Clean & Hygiene Standards
Lenzing’s Clean & Hygiene standards establish rules for Lenzing’s production sites aimed at preventing and avoiding of any kind of contamination of the products created, as well as defining design and maintenance principles for a clean working environment. In 2024, the Clean & Hygiene Standards were updated to meet customer expectations and satisfy the continuous improvement principles reflected in Lenzing’s Quality Policy. The Head of Global Quality & PSRA Management is the most senior person accountable for the implementation of this standard, ensuring process compliance and overall management. The standard is monitored through regular internal site audits, coordinated and overseen by the Site Quality Control Manager.
The Clean & Hygiene Standards covers the following impact, risk and opportunities: Potential negative impact on consumer’s health and safety in case of non-compliance; Risk of law suits, monetary and reputational loss in case of non-compliance; Opportunity to achieve business and sustainability targets by monitoring and improving manufacturing processes; Opportunity for market-leadership in terms of product safety and consistency, application performance and service.
The opportunity for market leadership in terms of product safety and consistency, application performance and service is addressed by the Global Code of Business Conduct. The Global Supplier Code of Conduct covers the following impact, risks and opportunities: Potential negative impact on consumer’s health and safety in case of non-compliance; Risk of law suits, monetary and reputational loss in case of non-compliance; Opportunity for market-leadership in terms of product safety and consistency, application performance and service. For further information on the ESRS 2 MDR-P of the Lenzing Global Code of Business Conduct and the Lenzing Global Supplier Code of Conduct, please see the “Policies” section in the “G1 Business conduct” chapter.
The Group Policy for Safety, Health and Environment (SHE) covers the opportunity for market-leadership in terms of product safety and consistency, application performance and service. For more information on the ESRS 2 MDR-P of the Group Policy for Safety, Health and Environment (SHE), see the “Policies” section in the “E2 Pollution” chapter.
Processes for engaging with consumers and end users about impacts
[ESRS S4-2]
At Lenzing, health and safety are important topics that are taken very seriously. Consumers and end-users do not inform directly the decisions with regard to managing these impacts. Lenzing does not have a general process for engaging with consumers/end-users as the focus is on B2B customers. Lenzing proactively participates in several associations and receives customer feedback from direct and indirect customers. In this way, Lenzing is indirectly informed of the concerns and impacts of consumers and end-users.
Channels to raise concerns
[ESRS S4-3; GRI 2-25]
An online-based whistleblower system was introduced in 2017 and is designed so that employees, customers, suppliers, and other third parties can voice their concerns. This platform allows individuals to report issues such as corruption, bribery, conflicts of interest, antitrust violations, and breaches of capital market law. Known as the BKMS® whistleblower system, or “Tell us”, it is accessible on Lenzing’s website, ensuring anonymity. The anonymous reporting feature ensures that individuals can share their concerns without the fear of retaliation. This is also stated in Lenzing`s Global Code of Business Conduct. The public accessibility of this platform permits consumers and end-users to raise potential concerns, without directly addressing Lenzing’s direct and indirect customers or relevant associations. Since Lenzing primarily operates in a business-to-business (B2B) environment, in which its products are converted into finished products by its direct and indirect customers, Lenzing cannot control or have direct visibility regarding the impact of the finished product. As a consequence Lenzing has not put any specific processes or systems in place to provide or contribute to remediation to consumers and end-users, nor does Lenzing require direct and indirect customers to develop and maintain such channels for consumers and end-users.
For further details on the system and process, please refer to the sections “Whistleblower system” and “Handling of reported concerns” in the “G1 Business conduct” chapter.
1 “as per definition of directive 2010/63/EU”