Actions
[E1-3, MDR-A 68a]
List of key actions
Continuous improvement lever
Low-carbon fuels (fuels switching) lever
Renewable electricity lever
Supplier engagement lever
Nature-based solutions
Roadmaps are updated at both Group and site levels, including governance and oversight by the steering committee. Actions of defined roadmaps either lead directly to emission reductions or influence the emission reductions trajectory through the planning and implementation of the decarbonization levers.
Customer engagement actions create the pull for implementing measures in Scopes 1, 2 and 3. Lenzing aims to engage TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ customers, as well as customers with approved SBTs and climate commitments. It is crucial to engage these customers in purchasing products with a low-carbon footprint. Such partnerships thereby boost GHG emission reduction ambitions and contribute to the achievement of SBTs.
[E1-3 29a, E1-3 AR 21]
The most important actions taken by Lenzing during the reporting year are linked to the critical decarbonization levers. These actions are described in more detail as follows. Depending on the type of action, such as fuel switching or supplier engagement, Lenzing allocates currently available internal resources as necessary.
Continuous improvement lever
[E1-3 29a]
Continuous improvement involves regular optimization of processes, systems and operations to enhance energy efficiency and reduce GHG emissions over time.
[E1-2 29b, MDR-A 68a, 68b, 68c]
As part of its continuous improvement efforts, Lenzing has replaced existing gas boilers with more efficient models at the Lenzing site in Mobile (USA). These gas boilers are crucial for generating the steam required for fiber production process. The implementation was completed in 2025, and the new boilers are estimated to avoid approximately 8,000 tons of Scope 1 GHG emissions annually at this site. This measure supports the corporate strategy for operational improvements, enhances energy efficiency and cost competitiveness and contributes to achieving the SBTs. Lenzing invested around EUR 12 mn for the replacement of the gas boilers. The Capital Expenditures (CapEx) for this project is part of the total CapEx, which can be found in the segment report of the Consolidated Financial Statements. Further, the project is also mentioned in the “Investments” section of the Management Report.
Low-carbon fuels (fuel switching) lever
[E1-3 29a]
Lenzing is taking a range of actions to further improve its energy mix. The majority of Scope 1 and 2 reductions by 2030 will be achieved by transitioning to low-carbon emission fuels to cover primary energy consumption. This transition was further extended by a recent project in Nanjing (China) to phase out coal and will be continued with projects at other sites where Lenzing is considering the replacement of fossil fuels with low-carbon alternatives.
[E1-3 29b, 29c, MDR-A 68a, 68b, 68c, 69]
In 2025, the installation and successful commissioning of a new natural gas pipeline and equipment (boiler and turbine) at the Nanjing (China) production site marked a significant step towards transitioning from coal-based steam to a 100 percent natural gas-based system. The system has been operational since April 2025 and constitutes a solid basis for further reducing GHG emissions. Once the natural gas-based energy supply is fully established by 2027, a reduction of 100,000 tons of GHG emissions as compared to 2021 is expected. To realize this transition, Lenzing has invested around EUR 30 mn in its viscose site in Nanjing (China). The CapEx for this project is part of the total CapEx, which can be found in the segment report of the Consolidated Financial Statements. Further, the project is also mentioned in the “Investments” section of the Management Report.
[E1-3 29b, MDR-A 68a, 68b, 68c]
At the Lenzing site in Indianópolis (Brazil), the transition from heavy oil to natural gas has been initiated. A contract with the gas supplier has been successfully finalized. The site has an agreement in place for the delivery of Liquefied Natural Gas (LNG) starting from 2026 onwards. This is planned as an ongoing measure and is expected to result in a reduction of around 38,000 tons in Scope 1 GHG emissions.
[E1-3 29b, MDR-A 68a, 68b, 68c]
The Prachinburi (Thailand) site has faced challenges in consistently receiving 100 percent biomass energy due to reliability issues at the supply partner’s biomass co-generation plant. The site achieved 100 percent biomass energy for only a few months during the reporting year. Therefore, both parties have agreed to work together on developing both short-term and long-term technical solutions. Negotiations to secure consistent 100 percent biogenic energy supplies in the future are ongoing. There will be no immediate reduction of Scope 1 and Scope 2 emissions once this action is fully achieved. However, GHG emissions reductions are expected to correspond to the site’s current emission level of approximately 64,000 tons and are expected to materialize by 2030 at the latest.
Renewable electricity lever
[E1-3 29a, 29b, MDR-A 68a, 68b, 68c]
In 2025, the Lenzing Group purchased 100 percent grid electricity from renewable sources at seven production sites (Heiligenkreuz (Austria), Indianópolis (Brazil), Lenzing (Austria), Mobile (USA), Nanjing (China), Paskov (Czech Republic), Purwakarta (Indonesia)), resulting in a mitigation of around 420,000 tons of GHG emissions. This action is planned to continue in the following years. By transitioning to renewable electricity, Lenzing minimizes its environmental impact and accelerates progress in reducing its carbon footprint across all operations. This approach is a key part of Lenzing’s broader decarbonization strategy and contributes to reducing Scope 2 emissions.
[E1-3 29b, MDR-A 68a, 68b, 68c]
In 2025, Lenzing commissioned a new photovoltaic (PV) plant with a capacity of 1.3 megawatt peak (MWp) at the headquarter in Lenzing (Austria), in cooperation with VERBUND. This increased the total PV capacity to 8.3 MWp. This activity is part of the above-mentioned action and entails a Power Purchase Agreement (PPA). This contributes to the diversification of energy supplies, strengthens energy independence and aligns with Lenzing’s long-term energy and decarbonization strategy.
Supplier engagement lever
[E1-3 29a]
Supplier engagement is a crucial lever for reducing Scope 3, Category 1 GHG emissions (“Purchased goods and services”). This applies to the entire Lenzing Group. Lenzing collaborates with key suppliers to provide low-carbon sodium hydroxide (NaOH) produced using renewable electricity. NaOH is one of the most important raw materials for both pulp and fiber production. This type of engagement makes suppliers aware of both their product’s carbon footprint as well as potential improvements, while ensuring the availability of low-carbon NaOH for Lenzing.
[E1-3 29b, MDR-A 68a, 68b, 68c]
As part of its supplier engagement and in line with its climate targets for 2030 and 2050, Lenzing is in continuous discussions to share expertise on green electricity and life cycle assessments (LCAs). Supplier-specific carbon footprints are regularly requested. In 2025, Lenzing purchased low-carbon NaOH from two suppliers in Europe and one in Asia. This saved around 85,000 tons of GHG emissions compared with conventional NaOH. In the coming years, Lenzing expects mitigation amounts to increase as a result of this action. Using low-carbon NaOH reduces GHG emissions along Lenzing’s value chain.
Nature-based solution
[E1-3 29a]
Sustainably managed semi-natural forests and forest plantations in their active growth phase absorb more carbon in trees and harvested wood products than aging forests with many trees near the end of their life span. They can therefore act as a net carbon sink over the long term.
[E1-3 29b, MDR-A 68a]
Lenzing contributes to sustainable forestry by sourcing wood from sustainably managed forests, managing its own forest plantations, engaging actively with pulp suppliers for improvements and carrying out other stakeholder activities. In addition, Lenzing supports conservation projects that protect and restore forests. Although these actions do not lead to direct GHG emission reductions within Lenzing’s Scope 1, 2 or 3 reporting boundaries, they contribute to climate change mitigation and adaptation by increasing carbon sinks, stabilizing regional climates and enhancing ecosystem resilience. Lenzing supports and has supported various conservation projects globally, both within its value chain and beyond, such as in China, DR Congo, Tanzania and Burundi. For more information on the conservation projects and their minimum disclosure requirements, please see the “Action” section of the “E4 Biodiversity and ecosystems” chapter.