Communication

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The Managing Board communicates regularly with employees and their representatives. This ensures a clear understanding of the business strategy, goals, market conditions and financial situation. Information is shared through multiple channels including onboarding sessions, townhall meetings, notice boards, internal email and internal news.

[S1-2 27b, 27c]

Key elements of Lenzing’s engagement include semi-annual global townhall meetings for all Group companies and employees to address globally relevant topics. Additional site-specific townhalls cover local issues and general updates. Press releases are used for important updates or special occasions. Townhalls are interactive, held via video chat, thereby allowing employees to pose questions directly to the respective presenters. Lenzing Connect (Intranet) provides ongoing updates and functional tools for everyday work. Responsibility for ensuring this engagement lies with the Senior Vice President Corporate Human Resources.

Works council/social dialog

[S1-2 27a, 27b]

The Lenzing Group’s management is committed to transparent communication with employees’ official representatives. Local works councils exist at both Austrian sites. At the Lenzing site, the council holds a seat and voting rights on the Supervisory Board of Lenzing AG in accordance with the Austrian Labor Constitution Act. They represent employees in Lenzing and Heiligenkreuz (Austria). To actively include employees’ perspectives in decision-making, the works council meets with the CEO before Supervisory Board meetings and with the CFO on a monthly basis. Additional meetings are arranged as needed. With the exception of the site in Prachinburi (Thailand), trade union representatives from various fractions and/or employee interest groups represent the interests of the employees at all other sites.

Health and safety committees

[S1-2 27a, 27b, 27c]

Health and safety committees operate at all Lenzing sites to ensure active workforce participation in occupational health and safety matters. Each committee includes management representatives, employee delegates and health and safety specialists. They meet regularly to review workplace risks, monitor incident trends and assess effectiveness measures. These committees provide a formal channel for employees to raise concerns, suggest improvements and contribute safety initiatives. Recommendations are documented and escalated to senior management where needed. This ensures that feedback informs policy updates and continuous improvement across the organization.

Lenzing Climate Survey

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The Lenzing Climate Survey is conducted among employees across the Lenzing Group to assess psychosocial working conditions. The survey is based on the “House of Health” framework, which uses internationally recognized methods such as employee satisfaction metrics that are widely applied in both international and academic contexts. This ensures that the assessment is not only methodologically sound but also meets globally recognized standards and provides a reliable basis for the findings and conclusions. In a combined review, results and next steps are communicated on its internal platform. Sites and departments develop specific actions whose progress is tracked by Lenzing to improve the findings of this survey. The three most important measures per site or department are surveyed and the implementation status is tracked. The latest survey from April 2025 showed significant improvements in all areas (+5 percentage points on average). The health climate index, for example, reached a value level of 76 percent. The participation rate was once again above 70 percent. More than two-thirds of all participants perceived positive impacts compared to the last climate survey.

Employee Resource Groups

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ERGs are a channel of communication for specific groups such as women, different ethnicities, LGBTQ, etc. Lenzing has three Employee Resource Groups (ERGs): “Women@Lenzing”, “Multicultural@Lenzing” and “PrideAlliance@Lenzing” For more information on ERGs, please see the “Equity, diversity & inclusion actions” section of this chapter.

Channels to raise concerns

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The following processes are in place for Lenzing’s workforce to raise concerns and grievances.

• Whistleblower system (described in the “G1 Business conduct” chapter)

• Works council at the Lenzing and Heiligenkreuz sites, both situated in Austria (see the “Communication” section in this chapter)

• Trade unions/employee interest groups (except Prachinburi (Thailand) site; see the “Communication” section in this chapter)

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A mandatory eLearning course entitled “Our Whistleblower System” helps employees to understand and use available channels to raise concerns and grievances. The Compliance team also conducts an integrity scan through a survey to assess employees’ knowledge. In addition, a Whistleblower Directive is in place. For more information on the Whistleblower Directive, please see the “Policies” section in the “G1 Business conduct” chapter. For the monitoring and tracking of issues raised, please see the “Handling of reported concerns” section in the “G1 Business Conduct” chapter.

[S1-3 32a]

There is no formal process for remediation or assessing the effectiveness for remediation. Remediation is conducted on an individual, case-by-case basis. Lenzing has a Global Child Labor Remediation Procedure. This procedure provides guidance for handling any instance of child labor within Lenzing. It outlines remediation steps for managers to ensure child safety, uphold rights, and act in the best interests of child.