Metrics and targets
[ESRS S2-5; GRI 3-3e, GRI 407-1, 408-1, 409-1]
See “targets” in the management approach at the beginning of this chapter. All of Lenzing’s sustainability targets and the process of setting and monitoring (ESRS 2 MDR-T 80g, 80j) can be found in the “Sustainability targets, measures and progress” section in the “ESRS 2 General disclosures” chapter.
Supplier engagement |
To engage key suppliers, covering more than 80 percent of spend, to improve sustainability performance |
Continuous |
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Measure(s) |
Lenzing assesses 95 percent of its top suppliers representing 80 percent of spend via EcoVadis, the Together for Sustainability Audit or an internal assessment/audit by 2025. |
2025 |
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Lenzing considers climate, water and chemical aspects in the procurement contractual process of its top chemicals suppliers |
Continuous |
Progress made in 2024 |
More than 800 of Lenzing’s suppliers are assessed and monitored by EcoVadis. Four suppliers were audited by Lenzing through the Together for Sustainability audit program. Engaging and onboarding suppliers is an ongoing process, whereby buyers strive to engage the biggest possible portion of all of Lenzing’s key suppliers. Around 60 percent of the Global Procurement spend, including wood and pulp was covered by these assessments. Supply agreements signed with the top chemical suppliers include sustainability clauses. |
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Lenzing ensures compliance in terms of the social aspects of its pulp supply through FSC® certification, thereby aligning with the requirements of ILO and Lenzing’s Global Code of Business Conduct and the Global Supplier Code of Conduct. Its chemical supply chain is monitored via EcoVadis assessments, occasionally complemented by TfS audits and Lenzing’s own supplier site visits. In 2024, the company was not aware of any significant risks of child labor, forced labor, or compulsory labor, or of potential threats to the right of freedom of association and collective bargaining among suppliers.
In the 2014 baseline year, the “Supplier Engagement” target was set for the first time. Zero assessments conducted formed the baseline value. While no direct engagement occurred with workers in the value chain, their legitimate representatives, or other external stakeholders, when setting the targets, tracking performance, or identifying improvements, several internal stakeholders played a crucial role. These included the Corporate Sustainability Department, the Site Teams, and the Procurement Team, which were instrumental in setting these targets.
The “Supplier Engagement” target is based on the internationally recognized third parties EcoVadis and the Together for Sustainability (TfS) network. EcoVadis and the corresponding audits play a crucial role in mitigating negative impacts on value chain workers. They provide a comprehensive evaluation of suppliers’ social and environmental performance, enabling the identification and management of material risks and opportunities related to workers in the value chain. Such evaluations align with all applicable legislation, international frameworks such as the OECD Due Diligence Guidance, the ILO, GRI, the ten principles of the UN Principles on Business and Human Rights (UNGPs), and contribute to Sustainable Development Goals (SDGs) 12 and 17 by promoting sustainability and collaboration across the value chain, among other objectives.
Firstly, the calculation of the percentage of spend takes into account the total procurement volume of the year 2023 from Global procurement (all except wood and pulp), and the share of suppliers as assessed in 2024. Secondly, at least 99 % of the wood and pulp suppliers were assessed through forest certifications and/or internal due diligence. The weighted average of these two components is the final percentage of assessed supply spend.
At present, no specific targets have been established for workers in the downstream value chain. The focus in target setting is on Lenzing’s sphere of influence. However, the company acknowledges the importance of this aspect and is committed to further assessing potential measures to enhance social sustainability across all stages of the value chain.