Metrics and targets

[ESRS S4-5; GRI 3-3e, 416-1, 416-2, 417-2]

As of the current reporting period, Lenzing has not set any measurable outcome-oriented targets related to managing material risks and opportunities concerning consumers and/or end-users. As mentioned in Lenzing’s strategy, the internal target is to avoid any non-compliance incidents or issues impacting consumers and end-users. Lenzing actively monitors and evaluates the effectiveness of its policies and actions regarding consumers and end-users through customer feedback, product benchmarking, internal and confidential metrics and targets, and a quality management system. Consumers and end-users are not directly involved in target definition, monitoring and assessment.

Energy prices, global political developments and volatile market demands continued to influence operational activities, impacting product quality. Improvements in key defect categories continued in most of Lenzing’s lyocell and viscose factories. Production disruptions and overall challenges counterbalanced these improvements, resulting in an increase in minor defect categories. Thus, performance remained at the same level as in 2023.

As in previous years, there were no complaints or incidences of regulatory non-compliance raised by direct and indirect customers or authorities concerning product and service information, labelling and the health and safety impact of Lenzing’s products.

In addition, no changes in relevant regulations have been identified that would trigger any additional risk assessment exercises.

Customers require more detailed information on intentional and non-intentional ingredients, upstream supplier transparency, Lenzing disclosures, and Lenzing’s approach in addressing specific local governmental requirements or specific industrial standards. All requests received were reviewed, categorized based on their topic, assigned to the appropriate team or individual for handling, and answered according to internally defined KPIs.