Creating traction for climate change target implementation has to be linked to business value via measures such as creating new revenue streams, launching new products, attracting new investors and long-term impact investors who will ensure sustainable growth and resilience for the company. The following initiatives have been accomplished.
Launch of new premium product –
carbon-zero TENCEL™ fibers
In 2020, Lenzing successfully launched two specialty (lyocell and modal) fibers with low climate change impacts. These carbon-zero TENCEL™ branded fibers will help Lenzing’s customers, especially brands and retailers to reduce their scope 3 emissions from raw material production and fulfill their scope 3 science-based target commitments. In the reporting year, this product portfolio has been expanded with two more new products (TENCEL™ x REFIBRA™ and VEOCEL™ Lyocell), to address the growing industry demand for “circular fashion” and carbon neutrality. The first carbon-zero TENCEL™ branded lyocell and modal fibers have continued to gain momentum among industry partners including fashion brands and mills. For more information, please see the “Net benefit concept” chapter.
Attracting new and impact investors
In 2019, Lenzing successfully positioned a bonded loan bound to its sustainability performance (MSCI rating). The success of the EUR 500 million hybrid bond issued is a vote of confidence in Lenzing by the capital market. In the reporting year, Lenzing improved it’s sustainability performance according to the MSCI rating to “AA”. Consequently, Lenzing saved some costs on its interest payments due to this performance improvement and this saved money will be donated to a social cause.
