Targets

[E1-4, MDR-T 80a, 80g, 80j]

Lenzing’s SBTs are in line with Lenzing’s Bioenergy Policy and Sustainability Policy and Environmental Policy and Standard. The process of setting and monitoring targets is outlined in the “Sustainability targets” section in the "ESRS 2 General disclosures” chapter.

Science-based targets

[E1-4 33, 34a, 34b, MDR-T 80b, 80c, 80d, 80e, 80i]

[E1-1 16a, E1-4 34e, MDR-T 80f]

Lenzing established its first SBTs in 2019 and revised them in 2023 to reflect the latest climate science and to raise ambition. While the previous targets were aligned with a 2 °C pathway and expressed as GHG intensity reductions (i.e., emissions per ton of pulp and fiber produced), the updated targets commit to absolute GHG reductions in line with the more ambitious 1.5 °C scenario. The SBTi verified and approved these targets in 2024. This commitment reflects Lenzing’s highest level of climate ambition and is fully aligned with the goals of the Paris Agreement and UN SDG 13 on climate action.

[E1-1 16a, E1-4 34b, 34e, E1-4 AR 25a, AR 25b, AR 30c, MDR-T 80f, 80g]

The baseline year and value were set to 2021 in accordance with the SBTi framework. This baseline reflects Lenzing’s typical operations and GHG emissions. It excludes any one-time events or anomalies to ensure representativeness. The targets cover all greenhouse gases (CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃) as defined under international standards, such as the GHG Protocol, and are expressed as CO₂ equivalents (CO₂ eq.). They follow the cross-sector Absolute Contraction Approach (ACA), which defines absolute emissions reductions in line with global decarbonization pathways. These pathways are science-based and aim to limit global warming to 1.5 °C or to well below 2 °C above pre-industrial levels. The targets have been independently verified and approved by the SBTi to ensure alignment with climate science and with SBTi criteria compatible with a 1.5 °C scenario.

[MDR-T 80 h]

Internal stakeholders, including commercial, investor relations, operations, procurement, strategy and corporate sustainability functions as well as the Managing Board were involved in setting the targets. External stakeholders were also engaged, including key pulp and chemical suppliers, customers requesting SBTs and multi-stakeholder initiatives such as the UN Fashion Charter, which advocates commitment to the Paris Agreement. Selected stakeholders contributed through meetings and conferences. The SBTi was involved in verifying and approving the targets. The Lenzing team is further engaging with SBTi regarding its Forestry, Land and Agriculture (FLAG) guidance.

[E1-1 16b, E1-4 34f, E1-4 AR 30b]

For more information about decarbonization levers and their quantitative contributions to achieving the SBTs, see the “Climate Action Plan” at the beginning of this chapter. Details of actions described by decarbonization levers are provided in the “Action” section. Not every action described by the levers is listed as a target measure but each nevertheless contributes to their achievement. New technologies will play an important role in mitigating CO₂ emissions and in achieving the GHG emission reduction targets. Depending on technology maturity and market developments, additional measures for the period of 2030–2050 will be disclosed once available.

Specific GHG emission intermediate target linked to corporate and remuneration targets

The specific GHG emission target that was formulated in the context of the previous SBT, with a 2017 baseline, remains relevant for remuneration and corporate targets. It also contributes as an intermediate target to the near‑ and long‑term SBT expressed in terms of absolute reduction.

The upstream value chain aspects of the “Risk for Lenzing’s operations and supply chain due to the increasing chronic physical climate hazards as indicated by climate risk assessment” are addressed through the Supplier Engagement target. This target will further intensify efforts related to climate change adaptation. For information on the minimum disclosure requirements of the Supplier Engagement target, please refer to the “Targets” section of the “S2 Workers in the value chain” chapter.

The ”Risk of wood scarcity from non-resilient forests and effects of increasing global average temperature” and the “Risk of increasing wood prices due to climate change and biomass competition” are addressed by the Conservation Projects target. This target focuses on conservation, biodiversity protection and restoration activities in regions where forests are at risk. The aim is to improve the forests’ resilience so they can better adapt to climate change. For more information on the minimum disclosure requirements of the Conservation Project target, please see the “Targets” section of the “E4 Biodiversity and ecosystems” chapter. The FEM target addresses the following impacts, risks and opportunities: opportunity through low-carbon product innovation and decarbonization leadership; negative impact on global climate change by generating GHG emissions with the use of non-renewable energy sources; risk of reputational damage if sustainability requirements with regard to energy sources are not met and carbon footprint is not reduced. The underlying Higg Facility Environmental Module (FEM) supports measurement and evaluation of annual environmental performance at a facility level, including energy and GHG emissions. For more information on the minimum disclosure requirements of the FEM target, please refer to the “Targets” section of the “E3 Water and marine resources” chapter.