Actions
[S2-4, MDR-A 68a]
List of key actions
Upstream and downstream value chain – hotspot analysis
Supplier engagement
Sustainable wood and pulp sourcing
EcoVadis
Quarterly supply chain sustainability risk management meetings
Together for Sustainability (TfS)
Human Rights Due Diligence
[S2-4 32b, 35]
In the reporting year, Lenzing did not identify any incidents in its value chain and therefore did not provide remediation related to an actual material impact. The company is working to deepen its understanding of value chain risks to ensure that its own practices do not cause or contribute to material negative impacts on value chain workers. At this stage, Lenzing cannot yet determine whether it does or does not cause or contribute to such impacts.
[S2-4 32a, 32d]
All actions described below support Lenzing’s Supplier Engagement target. By gaining greater insight into Lenzing’s suppliers, potential human rights violations can be prevented and/or mitigated more effectively. The effectiveness of Lenzing’s actions is tracked by various quantitative and qualitative metrics.
Upstream and downstream value chain – hotspot analysis
[MDR-A 68a, 68b, 68c]
After focusing on child and forced labor in the hotspot analysis in 2024, the analysis was extended in the reporting year to include the topics of occupational health and safety, freedom of association and collective bargaining, discrimination, fair employment community impacts, and corruption/transparency. The analysis was finalized by the end of Q3. As this represents the first step in a two-phase approach, the subsequent evaluation and prioritization of measures based on the identified hotspots will follow as the second step. Consequently, the results have not yet been reflected in the current revision of the materiality assessment but will be incorporated in the next update.
Supplier engagement
[MDR-A 68a, 68b, 68c]
All targeted suppliers of Lenzing are required to confirm that they have read, understood, and will comply with Lenzing’s Global Supplier Code of Conduct, which includes environmental, labor and human rights standards. The action remains ongoing to ensure continued compliance and relevance.
Sustainable wood and pulp sourcing
[MDR-A 68a, 68b, 68c]
Following the initial information provided in 2024, references to the Global Supplier Code of Conduct and the Wood and Pulp Policy have been integrated into Lenzing’s wood purchasing general terms and conditions. These references remain applicable on an ongoing basis and apply to all wood suppliers. This ensures that Lenzing’s sustainability and responsible sourcing principles are consistently embedded in its supplier relationships and procurement practices.
In addition, FSC® certification ensures that core labor requirements according to the International Labour Organization (ILO) Core Conventions and the ILO Declaration are met. This reinforces the company’s commitment to responsible sourcing and highlights the importance of collaborative efforts in promoting sustainable forestry. For more information on FSC® certification, please see the “Sourcing” section in the “G1 Business conduct” chapter.
EcoVadis
EcoVadis is a provider of business sustainability ratings that has assessed more than 100,000 companies in over 175 countries worldwide. Related topics cover the environment, human and labor rights, ethics and sustainable procurement, depending on industry and company size. Within the human and labor rights section of the questionnaire, companies are evaluated on topics such as employee health and safety, working conditions, social dialog, career management and child labor incidents, among others.
Lenzing encourages an increasing number of its suppliers to undergo sustainability assessments by providers such as EcoVadis, in line with its Supplier Engagement target.
[MDR-A 68a, 68b, 68c]
Supplier performance of all registered suppliers is continuously monitored in the EcoVadis dashboard, which uses various sources to monitor relevant suppliers, such as the “360° Watch”. AI-supported searches scan for global news sources with findings categorized as positive, neutral or negative. Suppliers are engaged to improve their performance and implement corrective actions where necessary. Major negative findings can impact a supplier’s overall score. Discussions on monitoring results and required corrective actions form part of regular reviews conducted by Lenzing’s purchasers and management.
Lenzing seeks to engage suppliers, particularly those with significant procurement volume, in sustainability assessments ideally through EcoVadis or Together for Sustainability (TfS) and expects a minimum EcoVadis score of 50 points. This requirement forms an integral part of Lenzing’s sustainable sourcing approach and is subject to ongoing monitoring. Suppliers falling below this threshold are required to submit a corrective action plan within three months in order to maintain the business relationship. The implementation and effectiveness of these measures is subsequently reviewed. No supplier relationships were terminated in 2025.
Quarterly supply chain sustainability risk management meetings
[S2-4 33a, 33b, MDR-A 68a, 68b, 68c]
Lenzing purchasers and its global purchasing sustainability manager engage in regular dialogue. Furthermore, Lenzing has established a quarterly supply chain sustainability risk management meeting as a permanent governance mechanism. These meetings are attended by purchasing managers as well as supply chain and sustainability experts, who discuss and manage risks and opportunities across the value chain. The risk assessment of Lenzing’s lowest performing suppliers includes considerations related to human rights forms part of these meetings. By regularly reviewing suppliers’ performance and initiating corrective measures, the target is to mitigate or minimize negative impacts on value chain workers. A further aim is to strengthen sustainability-risk awareness with the purchasing community and suppliers.
Together for Sustainability (TfS)
[MDR-A 68a, 68b, 68c]
Suppliers, preferably chemical and logistic providers, are continuously engaged in audits conducted through the Together for Sustainability (TfS) network, which in addition to broader ESG criteria also assesses the performance of human rights aspects, thereby ensuring compliance with applicable legislation, such as the UN Convention on the Rights of the Child and the ILO Core conventions.
Allocated resources
[S2-4 38]
The allocated resources for managing the material impacts on workers in the value chain are as follows:
In Global Purchasing: one purchasing sustainability expert
In Commercial Affairs Pulp: one sustainability expert
In Corporate Sustainability: one social sustainability expert