EU Taxonomy Disclosures pursuant to Article 8 of Regulation (EU) 2020/852

In accordance with Regulations (EU) 2020/852 of the European Commission as of June 18, 2020, (EU) 2021/2139 of the European Commission as of June 4, 2021, (EU) 2021/2178 of the European Commission as of July 6, 2021, (EU) 2022/1214 of the European Commission as of March 9, 2022 and the adaption of the Environmental Delegated Act (EU) 2023/2485 and 2023/2486 as of June 27, 2023, the Lenzing Group is required to disclose three key performance indicators, turnover, CapEx and OpEx. For the financial years 2025 and 2024, the Lenzing Group must disclose taxonomy-eligibility and taxonomy-alignment of its economic activities with respect to environmental objectives 1–6. The Lenzing Group has developed an EU Taxonomy Accounting Guideline that defines the methodology for determining and disclosing the three key performance indicators in accordance with Delegated Regulation (EU) 2021/2178. As part of the European Commission’s Omnibus Initiative I in 2025, Delegated Regulation (EU) 2026/73 – published in the Official Journal of the European Union on 8 January 2026 – introduced amendments to Delegated Regulation (EU) 2021/2178 concerning Article 8 of the EU Taxonomy Regulation. These amendments result in reductions in the scope of reporting templates and, under certain conditions, simplifications in the assessment of covered economic activities.

The Lenzing Group applies the simplifications provided for in Delegated Regulation (EU) 2026/73 for the 2025 financial year. The disclosure of information pursuant to the EU Taxonomy Regulation (EU) 2020/852 in conjunction with Delegated Regulation (EU) 2021/2178 is made as of 31 December 2025 in the applicable version. As uncertainties regarding the legal interpretation of certain provisions still remain, the legal interpretations published by the European Commission in its notices in the Official Journal were considered appropriate. Taxonomy-eligibility refers to economic activities that are defined as such in the Taxonomy Regulation. Taxonomy‑alignment goes beyond eligibility and implies that the respective economic activities meet the applicable technical screening criteria, make a substantial contribution to at least one of the six environmental objectives, do not significantly harm any of the other environmental objectives (“Do No Significant Harm”), and comply with the minimum safeguards.

To determine the Taxonomy-eligible activities, the Lenzing Group assessed all economic activities listed in the EU-Taxonomy for all consolidated group companies. The taxonomy-eligibility was determined based on the description of the economic activities. Due to the current state of EU legislation, not all economic activities and industries are covered by the six currently applicable environmental objectives. In 2022, the first two environmental targets were reported, which did not include Lenzing Group’s core business activities (regenerated cellulose fiber production, dissolving wood pulp production and supporting activities). The publication of the four additional environmental objectives and the adaptation of the existing goals have not changed this situation. Thus, the information on Taxonomy-eligible economic activities for the financial years 2025 and 2024 covers only a very small portion of activities within the Lenzing Group.

For the financial year 2025, the proportion of taxonomy-eligible turnover, capital expenditures (CapEx) and operating expenditure (OpEX) is each below the materiality threshold of 10% set out in Delegated Regulation (EU) 2026/73. In application of the simplification rules introduced through the Omnibus Initiative I, a further assessment of the taxonomy‑alignment of the taxonomy‑eligible economic activities was therefore not carried out. Within the company, social and human rights due diligence obligations are given a high priority and are embedded in internal policies, processes, and training. As part of the EU taxonomy reporting, the minimum social safeguards (Art. 18) were not assessed separately or in depth, as the share of taxonomy-eligible activities is below 10% and the simplification rules were applied accordingly. In accordance with Article 2(1a) of the EU Taxonomy Regulation, as amended by Delegated Regulation (EU) 2026/73, those economic activities of the Lenzing Group that are assigned to individual subordinate economic sectors are considered non‑material, as their shares of turnover, CapEx and OpEx each fall below the 10% materiality threshold. These activities relate to non‑core or supporting areas and do not have a material impact on the overall performance of the Lenzing Group.

The non-assessed considered non-material activities include economic activities that do not have a material impact on the key performance indicators turnover, capital expenditure (CapEx) and operating expenditure (OpEx) of the Lenzing Group. These activities comprise the following sectors: manufacture of soda ash (3.12), transmission and distribution of electricity (4.9), cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels (4.19), cogeneration of heat/cool and power from bioenergy (4.20), transport by motorbikes, passenger cars and light commercial vehicles (6.5) and acquisition and ownership of buildings (7.7).

The Lenzing Group avoids any double counting by evaluating the data for each key performance indicator independently. All identified economic activities only count once for the environmental objective of “Climate Change Mitigation”. The Lenzing Group calculates the 3 KPIs (turnover, CapEx and OpEx) according to the definition of the Delegated Regulation (EU) 2021/2178. There were no significant changes in the application of the calculations compared to the previous financial year. The use of automatic data processing tools can lead to rounding differences in the addition of rounded amounts and percentage rates.

The total turnover covers the revenue recognized pursuant to International Accounting Standard (IAS) 1.82 (a), as adopted by Commission Regulation (EC) 1126/2008 and is reported in the consolidated financial statements 2025 (see consolidated income statement position “revenue”). The turnover derived from products or services, including intangibles, associated with Taxonomy-eligible and ‑aligned economic activities, is presented in relation to the total turnover.

The total CapEx covers book (not cash-effective) additions to property, plant and equipment, intangible assets, biological assets and right of use assets. The CapEx related to assets or processes associated with Taxonomy-eligible and ‑aligned economic activities, is presented in relation to the total CapEx.

The total OpEx covers direct non-capitalized operating expenses that relate to research and development, building renovation measures, short-term leasing, maintenance and repair. Maintenance and repair expenses relate to the day-to-day servicing of property, plant and equipment assets (including maintenance material). OpEx associated with taxonomy-eligible economic activities are presented in relation to total OpEx.