Management approach
Material topic: Workers in the value chain1
[ESRS 2 MDR-A 68a; GRI 3-3]
Lenzing’s business activities are linked to the textile and nonwovens industry as well as the chemical and forestry industry. The company acknowledges the vital role of a capable and motivated workforce within the value chain and is committed to making a positive impact wherever feasible. Lenzing is dedicated to lead by example and endeavors to ensure compliance with legislation, the principles of human rights, and environmental standards within its own operations, as well as among its suppliers and along its value chains. Through regular audits and corrective actions taken by Lenzing in case of non-compliance, Lenzing continually strives to only engage with suppliers that adhere to international and national human and labor rights.
Potential negative impacts
- Child labor: Negative impact on children in Lenzing’s value chain, as child labor is common in textile manufacturing (value chain)
- Forced labor: Negative impact on forced laborers in Lenzing’s value chain, as forced labor is common in textile manufacturing (value chain)
For a more detailed description of the impacts, risks and opportunities, please see the “Material impacts, risks and opportunities” section of the “ESRS 2 General disclosures” chapter.
Policies
- Policy on Human Rights and Labor Standards
- Global Supplier Code of Conduct
- Global Code of Business Conduct
- Wood and Pulp Policy
- Sustainability Policy
Actions taken [ESRS 2 MDR-A 68a]
- Hotspot analysis for forced and child labor was conducted across the entire value chain in 2024
- Supplier screening and engagement (EcoVadis) to avoid cases of human and labor rights violations in the upstream value chain
- Wood suppliers providing FSC® Controlled Wood are required to acknowledge and implement the Supplier Code of Conduct as well as the Wood and Pulp Policy
- Together for Sustainability: Lenzing conducted four audits through the Together for Sustainability (TfS) network in 2024
- EcoVadis: Lenzing has implemented a minimum acceptable score for its suppliers’ EcoVadis sustainability ratings; if a supplier falls below the minimum score, Lenzing automatically requests the submission of a corrective action plan within 3 months
- Lenzing has established quarterly Supply Chain Sustainability Risk Management meetings
Further actions
(not described in more detail in S2-4)
- FSC® or PEFC certification (For more information on Lenzing’s assessment of its wood and pulp suppliers, please see the “Sourcing” section and the “Supplier evaluation” section of the “Business conduct” chapter.)
- Member of UN Global Compact
Sustainability targets
- “Supplier engagement” target
Stakeholders
- Suppliers
- EcoVadis
- Together for Sustainability (TfS)
- Direct customers
Responsible
- CEO
- SVP Global Supply Chain/Purchasing
- SVP Commercial Pulp, Biorefinery & Co-Products, Wood
Supporting
- Corporate Sustainability
1 The current list of material topics related to workers in the value chain focuses on the most critical issues. Given Lenzing`s present state of knowledge, other important topics are not yet considered material. However, the company is actively researching and gathering additional insights to support a more comprehensive reassessment of those topics in the future.