Actions
[ESRS S1-4; GRI 3-3d, 403-1, 403-2, 403-8]
A summary of the “Actions taken” can be found in the management approach at the beginning of this chapter.
Remediation
In the reporting year, Lenzing provided support and remediation in accordance with local regulations, as well as a voluntary donation to the family of a fatally injured employee. For more information on the incident, please see the “Health and safety at Lenzing” section in this chapter.
Allocation of resources and identification & effectiveness of actions
The allocated resources for managing the material impacts on Lenzing’s own workforce, broken down by topic and department, are as follows:
- Secure Employment: cross-functional collaboration
- Health & Safety: Health in Corporate Health Care and Wellbeing; Safety in Global Occupational Health and Safety
- Work life balance: Corporate Human Resources
- Diversity & Inclusion: Corporate Human Resources
- Training and Skills Development: eLearnings in Digital HR Learning, SuccessFactors in Corporate Talent Management
- Measures against violence and harassment in the workplace: Corporate Human Resources, Compliance
Lenzing identifies its actions by investigating a subject matter, assessing the risk and seeking adequate action informed by best practices.
The effectiveness of Lenzing’s actions can be tracked by various quantitative and qualitative metrics, including the Lenzing Climate survey, the Total Recordable Injury Frequency Rate, the gender pay gap ratio, employee turnover and workforce diversity.
Lenzing is aware of the (potential) negative impacts of its business activities on its employees. In this section, the (potential) negative impacts, but also the positive impacts, risks and opportunities are linked to actions. The actions relating to the (potential) negative impacts are aimed at preventing or mitigating negative impacts.
Learning and development actions
The following actions cover the “Risk of a recline in productivity through insufficient quality in succession planning”. The learning and development offering was expanded and refined in 2024. Global Performance and Talent Management continued. For more details (ESRS 2 MDR-A), please see the “Learning and development” section in this chapter.
Equity, diversity & inclusion actions
Lenzing runs three Employee Resource Groups (ERGs), covering the following topics: women, different nationalities and LGBTQIA+. The UN Women’s Empowerment Principles were signed by Lenzing’s new CEO.
These actions relate to the following impacts, risk and opportunity: Negative psychological impact on employees if harassment in the workplace takes place; Negative psychological impact on employees if diversity is not supported; Positive impact on diversity through diversity-promoting measures; Opportunity to drive innovation and performance with diversity; and one aspect of “Risk of a potential poor working climate leading to employee turnover or reduce their productivity”.
For more details (ESRS 2 MDR-A) on the actions, please see the “Equity, Diversity & Inclusion” section in this chapter.
With regards to actions on the “Negative impact on gender equality and equal pay for equal work”, Lenzing now has precise numbers for the first time about its gender pay gap per production site and employment category. It is planned to investigate the topic further in the following year. For more details on the data, please refer to the “Gender pay gap” section (S1-16) of this chapter.
Social audits
The “Opportunity to be listed as a preferred supplier for customers” is covered by the following action. In 2024, all sites participated in the Higg Facility Social & Labor Module (FSLM) certification process, based on the standardized Social Labor Convergence Program (SLCP). This involved a comprehensive self-assessment and on-site audit to identify potential improvement opportunities for Lenzing’s employees. Despite three sites being unable to complete verification due to a lack of accredited auditors, the overall results were well above average, with most sites ranking in the top quartiles of their respective countries. These results can be shared with partners along the value chain. The FSLM certification has to be renewed every year. Additionally, customer audits focusing on labor standards and fair labor practices were conducted at various Lenzing sites, and customer questionnaires on relevant topics were completed throughout the year.
Health and safety actions
Actions for the impacts, risk and opportunities related to health and safety are described in this and the “Health and safety in Lenzing” section of this chapter. One aspect of the “Risk of a potential poor working climate leading to employee turnover or reduce their productivity” is also addressed by the equity, diversity and inclusion actions.
All manufacturing sites are certified to ISO 45001. The current certification was renewed in 2024 and is valid until 2027. This Occupational Health and Safety Management Certification, covering employees, non-employees and contractors, provides a framework for identifying, controlling and mitigating risks associated with workplace health and safety. This system prioritizes health and safety and is based on the plan-do-check-act model. The certification process helps Lenzing to identify risks as well as opportunities for improvement, enabling Lenzing to take appropriate measures in a timely manner in order to ensure the health and safety of Lenzing’s employees in the future. Lenzing establishes goals and objectives to address significant hazards and risks, taking into account feedback from employees, contractors, communities, customers, suppliers, and other stakeholders.
Risk assessment at Lenzing’s production sites involves reviewing site specific activities in teams. This includes identifying potential harm, assessing the likelihood and severity of hazards, determining preventive measures, and seeking improvement opportunities. Regular reviews and monitoring ensure the control’s effectiveness. Assessments are updated after workplace changes, e.g. changes to staff or a process, or following adverse events.
All employees and contractors must adhere to Lenzing’s Life Saving Rules and are empowered to stop work if they think it is unsafe. The relevant information is provided during induction processes in all Group languages and in a visual form.
Lenzing maintains a process for reporting and investigating adverse events. Employees, contractors, and visitors are required to report work-related symptoms, injuries, or illnesses to enable a timely response. The Group-wide reporting database facilitates communication on adverse events, enhancing risk management. The Lenzing incident investigation process (also referred to as accident investigation) is structured and systematic, allowing for reporting, tracking, and root cause analysis to prevent the recurrence of incidents. This proactive approach enables Lenzing to effectively manage and respond to future incidents.
To learn more (ESRS 2 MDR-A) about Lenzing’s actions for its own workforce regarding health and safety, and more specifically, about internal and external audits, health care, safety training and health promotion in 2024, please see the “Health and safety in Lenzing” section of this chapter.
Communications actions
To address the “Risk and opportunity for being an attractive employer through (non-)transparent communication”, Lenzing uses various channels to support the communication of major changes in the company to keep its workforce up to date. For the description of actions (ESRS 2 MDR-A), please refer to the “Communication” section in this chapter.
Work-life balance and benefits provided actions
The impacts related to work-life balance are covered by the following action. Flexible working hours, part-time work and working from home are offered at the majority of sites. Offers that apply to full-time employees also apply to part-time employees in most cases and also to temporary employees in many cases.
[GRI 401-2]
Employees at all Lenzing sites have the option of parental leave. Depending on national regulations, the company offers its employees life insurance, health care, retirement provision, disability and invalidity coverage as well as Group bonuses at almost all production sites.