lenzing.com

Impacts, risks and opportunities

[MDR-P 65a]

This section outlines impacts, risks and opportunities (IROs) where applicable. The table illustrates how IROs relate to specific policies, targets, actions, and metrics. However, this does not imply that all listed elements are interconnected.

Workers in the value chain – Impacts, risks and opportunities

Sub-topic

IRO

IRO description

Policies

Targets

Actions

Metrics

Other work-related rights – Child labor

Negative impact

  • Potential
  • VC
  • Short-term

Child labor remains a significant issue in the textile industry, where children are stripped of their rights, exposed to health and safety risks, denied access to education, and trapped in a cycle of poverty and inequality. Given the prevalence of child labor in textile manufacturing, there is a possibility that it could exist within the value chain of Lenzing.

  • VC: Global Code of Business Conduct
  • VC (partly): Global Supplier Code of Conduct
  • VC (partly): Policy on Human Rights and Labor Standards
  • VC (partly): Wood and Pulp Policy
  • VC (partly): Supplier Engagement
  • 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)
  • Average EcoVadis score of suppliers (entity-specific)
  • Number of suppliers assessed via EcoVadis (entity-specific)
  • Number of reported cases through whistleblower system (S1-17 103b)
  • % wood sourced covered by FSC® and PEFC (entity-specific)
  • Number of Together for Sustainability (TfS) audits conducted by Lenzing (entity-specific)

Other work-related rights – Forced labor

Negative impact

  • Potential
  • VC
  • Short-term

Forced labor remains a persistent issue in the textile industry, where individuals’ basic rights and freedoms are violated, often resulting in physical and psychological harm while perpetuating cycles of poverty and inequality. Given its prevalence in textile manufacturing, there is a potential risk of forced labor being present in Lenzing’s value chain.

  • VC: Global Code of Business Conduct
  • VC (partly): Global Supplier Code of Conduct
  • VC (partly): Policy on Human Rights and Labor Standards
  • VC (partly): Wood and Pulp Policy
  • VC (partly): Supplier Engagement
  • 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)
  • Average EcoVadis score of suppliers (entity-specific)
  • Number of suppliers assessed via EcoVadis (entity-specific)
  • Number of reported cases through whistleblower system (S1-17 103b)
  • % wood sourced covered by FSC® and PEFC (entity-specific)
  • Number of Together for Sustainability (TfS) audits conducted by Lenzing (entity-specific)

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Material impacts, risks and opportunities

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Material impacts, risks and opportunities

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