Policies
[ESRS S1-1; GRI 2-23, 2-25, 3-3c]
The policies and guidelines listed in the Management Approach “Human rights and fair labor practices” apply to the entire Lenzing Group. The policies and guidelines are accessible to all employees via the intranet and are also sent by e-mail.
The United Nations Global Compact (UNGC) is one of the world’s most important initiatives for responsible corporate governance. As a member, Lenzing is committed to upholding human rights, respecting the rights of employees and their representatives, protecting the environment, enabling fair competition and combating corruption.
In the Policy for Human Rights and Labor Standards, the Global Equity, Diversity and Inclusion Policy and the Modern Slavery Act Transparency Statement there are connections to relevant internationally recognized instruments. For the specific connections, please see the description of each policy.
Lenzing engages with its own workforce through regular and varied communication about strategy, goals and policies. For more information, please see the “Communication” section of this chapter.
Lenzing explicitly addresses human trafficking, forced or compulsory labor, and child labor through the Lenzing Global Code of Business Conduct, which prohibits these practices and ensures compliance with local legal requirements regarding the minimum age for employment. For more information on the ESRS 2 MDR-P of the Global Code of Business Conduct, please see the “Policies” section of the “G1 Business conduct” chapter.
Lenzing has a Policy for Safety, Health, and Environment (SHE) that emphasizes protecting people and the environment as core corporate values. For more information on the ESRS 2 MDR-P of the SHE Policy, please see the “Policies” section of the “E2 Pollution” chapter. All manufacturing sites are certified to ISO 45001. This Occupational Health and Safety Management Certification, covering employees and contractors, provides the framework for identifying, controlling and mitigating risks associated with workplace health and safety.
Lenzing is committed to inclusion which is addressed in its Equity, Diversity, and Inclusion Policy. It focuses on ensuring the equality of opportunity, respect, and a discrimination-free environment for all employees, including those from vulnerable groups.
There were no formalized procedures to prevent, mitigate and combat discrimination in the reporting year. However, Lenzing is aware of the importance of discrimination and is currently trying to develop procedures on this topic.
Policy on Human Rights and Labor Standards
The Lenzing Group views its employees and its social responsibilities towards them as its highest priority. This policy confirms the company’s commitment to fulfilling, and wherever possible, exceeding all applicable social and ethical obligations across its entire global network. This commitment extends to Lenzing’s sphere of influence. Including its suppliers, who are also expected to uphold the same high standards. Lenzing fully supports all internationally recognized human rights and the principles set out in the Universal Declaration of Human Rights (UDHR), the United Nations Global Compact (UNGC), the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, and the fundamental labor principles protecting workers´ rights as defined in the Declaration on Fundamental Principles and Rights at Work of the International Labour Organization (ILO).
The fundamental labor principles include:
- The prohibition of child labor
- The prohibition of forced labor (including prison labor, indentured servitude and slavery)
- Freedom of association and the right to collective bargaining
- Fair compensation and working hours
- Safe and healthy workplaces
- Protection from discrimination, harassment and inhumane treatment
Lenzing believes in employee satisfaction and wellbeing as well as fostering compliance on a regular basis with standards through training programs and risk-based auditing programs for suppliers. The Senior Vice President Corporate Human Resources is accountable for the implementation of this policy.
Lenzing is committed to identifying, preventing, mitigating and remediating adverse human rights impacts related to its operations and business relationships. Lenzing provides appropriate remedies for human rights impacts to affected individuals, employees and local communities, including indigenous peoples, through both judicial and non-judicial mechanisms. Violations can be reported by employees, customers, suppliers, communities and other third parties in person or through the electronic system on the website (“Tell us”). Compliance with human rights is essential and non-negotiable for the Lenzing Group.
The Policy on Human Rights and Labor Standards addresses the following impacts, risk, opportunities: Opportunity to be listed as a preferred supplier for customers; Positive impact on the workforce through risk management, trainings, health measures and services; Potential negative impact due to the working environment on health and wellbeing of Lenzing’s workforce; Risk of a potential poor working climate leading to employee turnover or reduce their productivity; Opportunity for an engaged and productive workforce by providing a safe work environment; Negative psychological impact on employees if harassment in the workplace takes place.
Global Equity, Diversity and Inclusion Policy
This policy confirms Lenzing’s desire to inspire, empower, engage and foster the development of its employees so that they can play an active role in maintaining Lenzing’s competitive advantage. Lenzing aims to provide equal opportunities for all, regardless of gender, marital status, family responsibilities, ethnicity, race, skin color, nationality, national extraction, disability, neurodiversity, HIV / AIDS, chronic diseases, sexual orientation, religion or belief, age or other characteristics. Lenzing strives to build a diverse and inclusive work environment in which differences are respected and valued. As a result, everyone feels appreciated, included and able to be their true self, allowing them to provide their best contribution at work. The Lenzing Group aims to:
- Facilitate equity, fairness and respect for all existing employees and those applying to join the business
- Ensure an environment free from unlawful discrimination
- Oppose and prevent all forms of unlawful discrimination
Lenzing is committed to reviewing employment policies, procedures and practices for legal compliance, respecting the diversity of its own workforce mix as part of its aim to promote EDI, and meeting the objectives and commitments set out in this policy. Lenzing supports the UN Global Compact, endorses its principles and is committed to advancing a number of the UN Sustainable Development Goals by encouraging equity, diversity and inclusion among its workforces. It is focused on compliance and therefore aims to comply with all applicable laws and regulations in the countries in which it operates.
The Senior Vice President Corporate Human Resources is accountable for the implementation of this policy. The policy is available in all seven languages of the sites via Lenzing Connect and is communicated to all Lenzing leaders and employees.
The EDI Policy covers the following impacts, risk and opportunity: Risk of a potential poor working climate leading to employee turnover or reduce their productivity; Negative impact on gender equality and equal pay for equal work; 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.
Policy for Safety, Health and Environment (SHE)
The Policy for Safety, Health and Environment covers the following impacts and opportunities: Opportunity to be listed as a preferred supplier for customers; Positive impact on the workforce through risk management, trainings, health measures and services; Potential negative impact due to the working environment on health and wellbeing of Lenzing’s workforce; Opportunity for an engaged and productive workforce by providing a safe work environment.
For more information on the ESRS 2 MDR-P of the Policy for Safety, Health and Environment, please see the “Policies” section in the “E2 Pollution” chapter.
Life Saving Rules Guideline
The Life Saving Rules are applicable to all operations under Lenzing’s operational and/or governance control, including activities conducted by Lenzing employees, contractors, subcontractors, and visitors exposed to safety risks related to these rules. These rules are designed to remind individuals of essential safety measures, focusing on preventing fatalities. They are intended to complement existing Lenzing management systems, not replace them, and provide a benchmark for good safety practices. The Guideline was approved by the VP Global Health, Safety and Environment (HSE), who is the most senior level accountable for the roll-out, compliance, and definition of the rules. The Global Occupation Health & Safety (OHS) Manager and the SHE manager at the respective site are responsible for ensuring compliance and managing consequences.
The Life Saving Rules Guideline covers the following impacts and opportunities: Opportunity to be listed as a preferred supplier for customers; Positive impact on the workforce through risk management, trainings, health measures and services; Potential negative impact due to the working environment on health and wellbeing of Lenzing’s workforce; Opportunity for an engaged and productive workforce by providing a safe work environment.
Clean & Hygiene Standards
The Clean & Hygiene Standards prioritize the health and safety of Lenzing’s employees above all else. Any health and safety issues must be addressed swiftly and thoroughly. The standards address the following impacts and opportunities: Opportunity to be listed as a preferred supplier for customers; Positive impact on the workforce through risk management, trainings, health measures and services; Potential negative impact due to the working environment on health and wellbeing of Lenzing’s workforce; Opportunity for an engaged and productive workforce by providing a safe work environment.
For more information on the ESRS 2 MDR-P of the Clean & Hygiene Standards, please see the “Policies” section in the “S4 Consumers and end-users” chapter.
Global Code of Business Conduct
The code covers the following impacts, risk and opportunities: Opportunity to be listed as a preferred supplier for customers; Positive impact on the workforce through risk management, trainings, health measures and services; Potential negative impact due to the working environment on health and wellbeing of Lenzing’s workforce; Risk of a potential poor working climate leading to employee turnover or reduce their productivity; Opportunity for an engaged and productive workforce by providing a safe work environment.
For the ESRS 2 MDR-P of the Global Code of Business Conduct, please refer to the “Policies” section in the “G1 Business conduct” chapter.
Communication Guideline
The Communication Guideline aims to integrate all employees across the Lenzing Group into a communication network through platforms such as the Lenzing Connect News Center to ensure access to relevant information. It encourages employees to share ideas and topics of interest, ensuring their voices are heard in internal communication. The guideline promotes open, honest, and targeted communication across all sites and divisions, playing a key role in upholding the company’s identity and fostering a collaborative environment. The guideline is made available to all employees via Lenzing Connect and the Vice President Corporate Communications & Public Affairs is the most senior person accountable for its implementation.
The Communication Guideline addresses the “Risk and opportunity for being an attractive employer through (non-)transparent communication”.
Global Salary Administration Guideline
This guideline has been compiled to define the administrative standards required to ensure that an individual employee’s base salary is set at a level that is market-competitive, internally equitable, and performance driven. These procedures apply to all graded jobs globally as far as this is compliant with local labor laws and regulations. The guideline includes aspects such as equity analysis, compensation administration principles, salary increase types, a decision tree, promotion, transfer and demotion. The Senior Director Corporate Compensation & Benefits and Digital HR is responsible for the implementation of this guideline.
The Global Salary Administration Guideline covers the “Negative impact on gender equality and equal pay for equal work”.
Global Learning & Development Guideline
This guideline provides an overview of learning and development processes to ensure the Lenzing Group is prepared for further growth by having key employee competencies and skills developed. The guideline describes Lenzing’s People Development Approach as its way of identifying the knowledge that is core to the sustainable competitiveness of the business and defines how competencies are built and developed in specific areas of strategic relevance. All Lenzing employees have the opportunity and responsibility to grow and develop through performance and development talks, the competency framework, the competency assessment, individual development plans and the training budget process. The Corporate Learning & Development team leads global Learning & Development (L&D) processes, while the HR Business Partners and local L&D specialists and site directors are responsible for the administration, execution, and optimization of local L&D activities. The Senior Vice President Corporate Human Resources has approved the guideline and is accountable for its implementation, which is binding for all Lenzing employees.
The Global Learning & Development Guideline covers the “Risk of a recline in productivity through insufficient quality in succession planning”.
Global Performance Management Guideline
This guideline is part of the People Development Approach and provides an overview of how performance management processes operate to enable its employees to support the growth plans of Lenzing. Employee development is a core element in ensuring sustainable business growth. Lenzing offers employees the opportunity to grow and develop, recognizing the importance of understanding the leadership and skill requirements necessary to build competencies and achieve performance in both current and future roles. The guideline includes the definition of performance, the performance management process, Lenzing’s corporate values and behaviors, the procedure for defining goals, and describes how to conduct performance and development talks. The Corporate Performance Management team leads the global Performance Management (PM) processes. The HR Business Partners and local Performance Management specialists in each location are responsible for the administration, execution and optimization of local PM activities. The Senior Vice President Corporate Human Resources has approved the guideline and is accountable for its implementation, which is binding for all Lenzing Group employees.
The Global Performance Management Guideline addresses the “Risk of a recline in productivity through insufficient quality in succession planning”.
Modern Slavery Act Transparency Statement (UK only)
This statement is made in accordance with section 54 of the Modern Slavery Act 2025 and provides an annual update on the actions taken by the business in combating modern slavery. It refers to a number of internal Lenzing documents, including the Policy on Human Rights and Labor Standards, the Global Supplier Code of Conduct and the Global Code of Business Conduct. The statement confirms support for the principles set out in the Universal Declaration of Human Rights (UDHR), the UN Global Compact, the OECD Guidelines for Multinational Enterprises and the fundamental labor principles that protect workers’ rights as defined by the Declaration on Fundamental Principles and Rights at Work of the International Labor Organization (ILO).
The policies and procedures are available to all managers and employees. The UK Human Resources Manager is responsible for updating the Modern Slavery Act Transparency Statement and the site director is accountable for its implementation.
Lenzing has not yet implemented policies regarding the following impacts: Negative impact on the workforce if there is a lack of work-life balance; Positive impact on the workforce through various working time models, benefits and leaves. Lenzing’s current resources have made it challenging to fully address this important topic.