We choose sustainability at every opportunity, improving transparency and infrastructure, sourcing and producing green energy, and aligning with science-based targets.
Our vision is to achieve net zero by 2050
50 %
Target reduction of carbon emissions (Scopes 1, 2 and 3) per ton of pulp and fiber sold by 2030 (baseline 2017)
2022
18 % reduction achieved
2021
drop to 9 % reduction
2020
15 % reduction achieved
Emissions scopes explained
Carbon emissions are classified according to three scopes. Scope 1 covers all direct emissions from a company’s activities, or any other activities under their control — such as energy generation. Scope 2 includes indirect emissions from externally sourced energy supply, such as heat and electricity. Scope 3 defines all other indirect emissions from activities not owned or controlled by the company. This includes emissions generated along the value chain, for example, while transporting fibers.
Championing circularity
Receiving high praise for circular business model
Top ratings two years running
We received high praise from three global sustainability rating bodies for the second consecutive year in 2022. Classed as outstanding with a triple ‘A’ rating from non-profit organization CDP, we are one of only 12 companies out of 15,000 worldwide awarded CDP’s highest ranking for environmental leadership in three categories (climate change, water security and forests). MSCI also confirmed our new AA rating in December 2022. This is MSCI’s second highest rating and was given in recognition of our significantly improved scores when benchmarked against the industry average.
EcoVadis gave us a platinum rating, which is their highest score that places us in the top one percent of companies evaluated worldwide. We may not be alone in having ambitious sustainability targets but we continue to stand out, as the ratings provider honoured our efforts to increase transparency, ensure social and environmental accountability and reduce emissions. Programs to care for the wellbeing of our people making all of this possible were also praised.
Awards for us, rewards for all
Hailed as a pioneer for our investment in innovation that advances sustainable business practices, we took second place at the Financial Times 2022 Transformational Business Awards in the Transformational Climate Solutions category — with special commendation given to our joint venture with LD Celulose in Brazil.
We took first place in Canopy’s Hot Button ranking. The Canadian not-for-profit organization evaluates global producers of cellulosic fibers with a keen eye for responsible wood and pulp resourcing. Our contribution towards a cleaner, greener textile industry was also honoured by the Austrian Society for Environment and Technology ( ÖGUT ) with an Environmental Award in the ‘World Without Waste’ category.
Award-winning fibers
A range of functional sportswear made with 100 percent TENCEL™ lyocell fibers was the first of its kind. The Sidonios Tech x TENCEL™ Luxe Seamless Athleisure set was also named ISPO Award winner 2022. “Activewear without synthetic fibers is unprecedented,” said Florian Heubrandner, Vice President of Global Textiles Business. “Celebrating this and other awards reminds us that, despite the market slowdown, we’re still having an impact on a textile industry that’s becoming increasingly aware of its environmental responsibility.” ISPO is an international sports platform that honours the industry’s leading products.
Further praise for the TENCEL™ brand came with the International Textile Manufacturers Federation 2022 Award for Sustainability, which was given to TENCEL™ modal fibers with Indigo Color Technology. The innovative dyeing process reduces use of water and electricity by 99 percent and saves 80 percent of the chemicals used in traditional dyeing processes.
The VEOCEL™ brand was also celebrated this year when the Sustainable Development in China Forum awarded our nonwoven specialty fibers the 2021 Outstanding Contribution Award for Sustainability.
Praise for the people making it happen ”
Hear from Krishna Manda, Vice President of Corporate Sustainability
Net zero, circularity and sustainability explained
Net zero, circularity and sustainability explained
Net zero is the balance of greenhouse gas emissions produced when compared to the amount removed from the atmosphere. We reach net zero by drastically reducing our emissions and offsetting the remaining 5 to 10 percent through investment in projects that allow us to compensate for and balance greenhouse gas emissions, such as reforestation.
Sustainability addresses ways to meet the immediate needs of humanity without compromising the needs of future generations. Key to this is circularity, which means using raw materials that can be recycled or regenerated, while also reusing and recycling other resources in loops for as long as possible without causing waste
Setting the benchmark with science-based targets
Taking action towards our target of net zero emissions by 2050
Taking action towards targets
Science-based targets help us to align our ambitions with global climate goals. They provide a clear route to reducing our environmental impact through achievable action. Lenzing is one of more than 2,000 companies worldwide that have committed to taking science-based climate action in line with the 2015 Paris Agreement – which aims to limit global warming to 1.5°C compared to pre-industrial levels
In 2019, we were the first and only (at the time) manufacturer of cellulosic fibers derived from wood with scientifically confirmed climate targets. Our aim is to reduce emissions by 50 percent per ton of product sold by 2023 — with 2017 as a baseline.
Progress made in 2022 has allowed us to move closer towards achieving our Scope 1 and 2 emissions targets. Achievements include the expansion of green energy use at our sites in Indonesia and China, plus continued investment in the ramp up of our sites in Thailand and Brazil without adding to our annual CO2 emissions.
Transparency
Sharing knowledge and new technologies enables better choices
Smarter tools for better branding
Lenzing’s E-Branding Service boasts a new suite of online tools to support customers. Available across TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ fibers, the platform provides a one-stop-shop to verify fibers, apply for product licencing or take a masterclass in e-branding. There’s also a helpdesk, webinars and learning modules available in ten languages
“We’ve really enhanced the user experience,” said Harold Weghorst, Vice President of Fiber Marketing & Branding. “Customers can quickly check fiber blends, apply for licensing to use our brands on product labelling and access artwork for marketing.” These online tools make great strides towards combating counterfeiting. “It’s good for business and not just Lenzing’s business, it’s good for the whole value chain,” Harold added. “Consumers benefit too, knowing they really do have the product promised on the label.”
Protecting our trademark
We partnered with Red Points in July to further tackle counterfeiting. The digital platform uses artificial intelligence to help us track unauthorized use of Lenzing trademarks.
Regulation-ready for better business
In July 2022, the European Commission put forward proposals for future legislation that will mandate transparency across the textile industry. Directives will demand that green claims are substantiated, which means the practice of suggesting a product is less damaging to the environment than competing products will no longer be acceptable. We’re readying our business for these regulations and also raising awareness of them among our customers.
Achieving greater transparency is critical, explained Harold Weghorst, Vice President of Fiber Marketing & Branding. “It generates what we call ‘pull’ from the end consumer. If they can see how a garment is produced, they can make better purchasing choices.”
It’s becoming more and more important to be transparent”
Caroline Ledl, Head of Product Management talks about transparency
Brand education empowers better choices
“We are enablers,” said Krishna Manda, Vice President of Corporate Sustainability. “Sharing information about our fibers empowers customers to confidently communicate with end consumers. In turn, consumers have the information they need to make better purchasing choices for their life, day to day. This is our responsibility.” It’s also a responsibility we do not take lightly.
TENCEL™ branded fibers have been gaining ground on the market for 30 years but there’s still a way to go, as Caroline Ledl, Head of Product Management, explained. “Synthetic fibers hold a majority share of the market, especially polyester. Cotton holds a quarter while wood-based cellulosic fibers hold six percent. The biggest portion of that share is Viscose, so this year we’ve really been pushing the benefits of TENCEL™ lyocell fibers in terms of comfort and performance as well as their highly efficient closed loop production process.”
Educational materials were shared across the supply chain to coincide with the opening of our lyocell plant in Prachinburi, Thailand. We also ran a consumer campaign, Wood you, which told the story of how wood sourcing can protect small mammals in their natural habitat
Back to school
We shared information about our nonwoven fibers with classrooms in 18 schools across Austria, Germany and the US — where we could educate a future generation of consumers. Teachers were provided with special kits to show how wipes made with VEOCEL™ lyocell fibers can biodegrade in soil, unlike synthetic wipes. Children buried the wipes and checked them after set periods of time.
Better energy, better choices
Green energy and improved infrastructure increase self-sufficiency
Cleaner pulp production is energy efficient
Our pulp production is an energy intensive but energy-efficient process. Our pulp mills in Austria, the Czech Republic and Brazil generate vast quantities of energy-rich biomass by-products when dissolving wood into pulp. A percentage is used to make biorefinery products for the food, pharmaceuticals, cosmetics and chemical industries. The remaining portion — lignin and bark — is burned in a recovery boiler to produce steam that activates a turbine-powered electricity generator.
“We not only use the highest quality of wood available,” explained Luis Künzel, Vice President of Pulp Brazil, “we also transport it with the bark intact to prevent silica or dust contamination. In addition to this, we decided from the start to use a chlorine-free bleaching process. This reduced effluent so that water is easier to treat before it returns to the river.” Other chemicals released during the dissolving process can be re-used.
50
%
Our pulp mill in Brazil produces so much energy that half is fed into the national grid.
Positive year for Paskov
Our pulp mill in the Czech Republic, Lenzing Biocel Paskov, currently produces 285,000 tons of pulp per year. Up to 40 percent is utilized across Lenzing, with 10 percent used in the production of our specialty fibers like TENCEL™ branded fibers. Energy derived from biomass keeps the mill running, so it’s 100 percent self-sufficient too. “We feed 20 percent of the renewable energy we produce into the public grid,” explained Site Director Katerina Kupkova. “The market is hungry for biomass energy, which has allowed us to remain competitive as wood and energy prices soar. Our EBITDA margin remains high, we just need demand for pulp to remain high.”
Where does our wood come from?
Where does our wood come from?
100 percent of the raw materials we use originate from forests and plantations that are certified by or managed in accordance with leading forest certification schemes. This means our wood comes from naturally regenerating forests, which helps us to protect biodiversity.
Wood for our flagship brand TENCEL™ comes from forests and plantations in Brazil, Chile, Europe, South Africa and the US — all of which are in close proximity to pulp producing facilities. The regional species we use include beech, spruce, birch, aspen, southern pine, maple and eucalyptus.
Reforestation in Albania boosts biodiversity
Our reforestation project in Albania has made great progress in 2022. Launched in 2020, the project has since enabled almost 20,000 trees to be planted across an area spanning 12 hectares — our goal is 20 hectares. Training was also delivered to 150 local forest users with a specific focus on fire prevention and safety, which is a huge challenge for the area. The project’s progress sets a leading example that can be replicated by communities across the region, giving it the potential to influence the regeneration of up to 100,000 hectares of forest area in Albania.
3
bn
Additional trees to be planted in Europe by 2023, as outlined in the EU Biodiversity Strategy.
Investment in Asia continues
The scale of our ambitions to become carbon neutral by 2050 is matched by the scale of energy-efficiency at our new lyocell plant in Prachinburi, Thailand. The site, which is the largest of its kind producing carbon neutral fibers, opened in March 2022. This marks an important milestone on our journey towards a net zero future. The plant is powered solely by locally sourced biomass energy.
Keeping a keen eye on climate targets, September marked the start of work to transition our site in Nanjing, China, to green electricity. From the start of 2023, this site will use almost 100 percent green electricity, reducing carbon emissions by 100,000 tons annually.
Specialty viscose production in Purwakarta, Indonesia, currently relies on two sources of power, one of which comes from the national grid and was secured as green energy in July. The secondary power source is generated on site using coal, and we are now working on ways to taper the use of fossil fuels in line with science-based targets.
Solar power secures our future
Upper Austria’s largest ground-mounted photovoltaic (PV) plant was in operation from October 2022. The PV process converts radiation from the sun into green electricity — this is one of the cheapest ways to secure green energy, and we’ve been working with Austrian energy provider VERBUND to make the process as cost efficient as possible.
In addition to this, Lenzing has signed an electricity supply contract with green power producer Enery and Energie Steiermark to construct a further PV plant in Styria, Austria. Electricity generated will supply the Lenzing site from the end of 2023.
