Information on environmentally sustainable economic activities according to the EU Taxonomy Regulation

According to the EU Taxonomy Regulation (EU) 2020/852, Lenzing Group is required to disclose three key performance indicators (turnover, CAPEX and OPEX) associated with EU Taxonomy-eligible economic activities within Lenzing Group. Lenzing Group designed an EU Taxonomy guideline for describing the methodology for reporting the three KPIs by following the time sequence and requirements as outlined in the Delegated Act as from 1st January 2022.

To determine the Taxonomy-eligible activities (EU and non-EU countries), Lenzing Group assessed all economic activities listed in the EU Taxonomy. For each economic activity, economic industries (NACE codes) were used as a framework to capture all economic sectors. Due to the current state of EU legislation not all economic activities and industries are covered by the currently applicable two environmental objectives.

As a consequence, Lenzing Group core business activities (wood-based fiber production, dissolving wood pulp production and supporting activities) are currently not included. Therefore, the information on environmentally sustainable economic activities for 2021 covers only a very small portion of activities within Lenzing Group (namely afforestation and forest management, transmission and distribution of electricity, cogeneration of heat/cool and power from renewable non-fossil gaseous and liquid fuels and manufacture of soda ash). Future developments in legislation may change the scope of the Taxonomy-eligible activities for the Lenzing Group.

Currently, the turnover of Taxonomy-eligible Lenzing Group activities is 1.43 % (EUR 31.4 mn) and for non-eligible activities is 98.57 % (EUR 2,163.3 mn) of the total turnover 2021 (EUR 2,194.6 mn). The CAPEX for Taxonomy-eligible activities is 2.35 % (EUR 23.0 mn) and for non-eligible activities is 97.65 % (EUR 954.2 mn) of the total CAPEX 2021 (EUR 977.2 mn). The OPEX for Taxonomy-eligible activities is 2.09 % (EUR 1.4 mn) and for non-eligible activities is 97.91 % (EUR 65.2 mn) of the total OPEX 2021 (EUR 66.6 mn).

Lenzing Group avoids any double counting by evaluating the data for each key performance indicator independently. The disclosed KPIs are only count once to one environmental objective “Climate Change Mitigation”. Lenzing Group assessed the turnover, CAPEX and OPEX according to the definition of Taxonomy-eligible activities as set out in the Taxonomy.

The total turnover covers the revenue recognized pursuant to International Accounting Standard (IAS) 1.82 (a), as adopted by Commission Regulation (EC) 1126/2008 and is reported in the consolidated financial statements 2021 (see consolidated income statement line “revenue”). The turnover derived from products or services, including intangibles, associated with Taxonomy-eligible economic activities, is presented in relation to the total turnover.

The total CAPEX covers book (not cash-effective) additions to property, plant and equipment, intangible assets, biological assets and right of use assets. The CAPEX related to assets or processes associated with Taxonomy-eligible economic activities, is presented in relation to the total CAPEX.

The total OPEX covers direct non-capitalized operating expenses that relate to research and development, building renovation measures, short-term lease, maintenance and repair (external). Maintenance and repair expenses relate to the day-to-day servicing of assets of property, plant and equipment by the Lenzing Group. The OPEX related to assets or processes associated with Taxonomy-eligible economic activities is presented in relation to the total OPEX.