Targets

[S1-5, MDR-T 80a, 80j]

The Social Standard target as well as the Equity, Diversity and Inclusion target directly align with Lenzing’s Global Equity, Diversity and Inclusion Policy and Policy on Human Rights and Labor Standards. It promotes an inclusive work environment, gender equality and upholding human rights across all levels of the organization. The process of monitoring the targets is described in the “Sustainability targets” section in the ”ESRS 2 General disclosures” chapter.

Social Standard target

[MDR-T 80b, 80c, 80d, 80e, 80i, 80j]

[S1-5 44a, 47a, 47b, 47c, MDR-T 80f, 80h]

The Facility Social Labor Module (FSLM) is crucial for mitigating negative impacts and risks on employees through ensuring that social standards are consistently upheld across all Lenzing production sites. By implementing and updating the FSLM assessments on an annual basis, Lenzing commits to fair labor practices, safe working conditions and respect for workers’ rights. This proactive approach helps to prevent labor violations and promotes overall employee well-being. Regular audits and sharing verified modules with supply chain also increase transparency and accountability, thereby further protecting employees from potential social risks. The target is based on internationally recognized third-party social certifications (SLCP) and ensures continuous compliance through independent audits at all Lenzing Group production sites. It aligns with international frameworks such as the OECD Due Diligence Guidance and the UNGPs. It also contributes to SDGs 8 and 12 by promoting fair labor conditions. Local labor laws, regional challenges and stakeholder engagement are taken into consideration in order to ensure a context-specific and sustainable approach to social responsibility. The Corporate Sustainability team, Human Resources, the Management Board and the fiber and pulp Group Operations were involved in target setting. Additionally, Lenzing directly engaged with site HR leaders and the works council to compile a list of initiatives for each location. This list served as the basis for setting targets, tracking performance and identifying lessons for continuous improvement.

Equity, Diversity and Inclusion target

[MDR-T 80b, 80c, 80d, 80e, 80i, 80j]

[S1-5 44b, 47a, 47b, 47c, MDR-T 80f, 80h]

The target aims to create an empowering work environment for all Lenzing employees by upholding human rights, prioritizing well-being, and fostering diversity and inclusion. It aligns with international frameworks such as the OECD Due Diligence Guidance and the UNGPs. It also contributes to SDGs 3, 5, and 10 by promoting good health and well-being, gender equality and reduced inequality. Local labor laws, regional challenges, and stakeholder engagement are taken into consideration to ensure a context-specific and sustainable approach to social responsibility. Human Resources, Corporate Sustainability and the Managing Board were key stakeholders in setting the target. Employee expectations and perspectives were actively incorporated through direct consultation with the works council. Human Resources is responsible for tracking performance and identifying any opportunities for improvements.

Health targets

[S1-5 44a, 47a]

In January 2025, Lenzing set a Group-level target to reduce the Total Recordable Injury Frequency Rate (TRIFR) per 200,000 working hours from a baseline of 1.1 to 0.8 by year-end 2025. The target was achieved. It supports the Health, Safety and Environment policy objective of protecting people from harm, which is a fundamental prerequisite for conducting business. The previous target of 0.3 by 2025 was revised following review considering current context and progressive ambition level. Target setting involved site directors and the responsible Managing Board member. The works council was not directly engaged in target setting, performance tracking, or identifying improvements.

[S1-5 44b]

Site‑level targets are aligned with Group TRIFR objectives and adjusted for site size and performance. They are complemented by goals for leading safety indicators at departmental level. Each site develops tailored safety programs in coordination with Global Occupational Health and Safety (OHS). Using the TRIFR metric to measure injury occurrences, these targets aim to enhance employee well-being and contribute to SDG 3 (Good Health and Well‑Being).

Other targets

For the risk “insufficient quality in succession planning can lead to a recline in productivity”, there is no measurable time-bound, outcome-oriented target at present. Last year, Lenzing set a target to approach 50 percent of mid-senior leadership roles with identified successors by the end of the 2026 cycle. The company has already achieved approximately 50 percent, reflecting strong progress. Despite the challenging economic environment and headcount reductions, Lenzing will maintain the 50 percent target for the next cycle. Keeping this level ensures stability in leadership continuity and safeguards critical roles during a period of organizational change. This is essential for long-term resilience.

For the ”Risk of a potential poor working climate leading to employee turnover or reduce their productivity” (mental health), there is no measurable time-bound, outcome-oriented target at present. However, the general objective is to prevent and mitigate cases to the largest extent possible. The effectiveness of actions is measured by means of the Lenzing Climate survey which asks two questions related to the topic: “Do I have enough time doing my work? Do I have enough recovery time?”. For more information, see “Lenzing Climate survey” paragraph in the “Health promotion” section of this chapter.

At present, Lenzing has no target regarding the following impacts, risks and opportunities: Negative impact on the workforce if there is a lack of work-life balance; Positive impact on the workforce through various working time models, benefits and leaves; Risk and opportunity for being an attractive employer through (non-)transparent communication; Negative impact on gender equality and equal pay for equal work. Lenzing’s current resource constraints have made it challenging to fully address these important topics.