lenzing.com

Raw material security

Management approach

Material topic: Wood and pulp sourcing

Importance for Lenzing

  • Wood is the most important raw material for Lenzing

Opportunities

  • Wood as a natural and renewable raw material offers expanded business perspectives
  • As a replacement for fossil-based products
  • Due to its contribution to climate change mitigation through carbon sinks in forests and wood products, and substitution of fossil-based product
  • Wood is an alternative to agricultural products (e.g. cotton)
  • Using wood from sustainably managed forests supports biodiversity

Risks

  • Sourcing of environmentally and socially controversial wood and pulp
  • Can be linked to deforestation
  • Loss of biodiversity in poorly managed forest ecosystems
  • Potential reputation loss is a threat to business
  • Sourcing can be impacted by climate change
  • Climate and market impact on wood and pulp availability, price and quality

Guiding principles

  • Centrally managed wood and pulp procurement
  • Strict Wood and Pulp Policy
  • CanopyStyle Initiative
  • Global Supplier Code of Conduct
  • Preference for long-term contracts and direct contacts

Due diligence processes and (ongoing) measures

  • Regular audits on forest certification standards (FSC®, PEFC)13
  • Internal audit management system
  • Wood and Pulp certification according to FSC® and PEFC standards
  • Additional third-party verification as part of the CanopyStyle Initiative and through internal supplier audits

Objectives

  • Ensure compliance with customer sourcing policies
  • Assessment of sustainability performance of the Lenzing Group’s most relevant suppliers
  • Partnership with pulp suppliers on sustainability
  • Sustainable management of plantations in the LD Celulose joint venture

Achievements/activities in the reporting year

  • 100 percent of wood suppliers assessed according to the FSC® Controlled Wood criteria
  • CDP Forests “A” rating
  • EcoVadis Platinum status for the Lenzing Group
  • Continuation of afforestation and social impact project in Albania
  • Dark green shirt for the second time in Canopy’s Hot Button Report
  • PEFC Chain of Custody certificate for fiber production sites in SPV (Indonesia), Nanjing (China), Mobile (USA)
  • Sustainability performance of pulp suppliers was surveyed in a comprehensive questionnaire
  • Integration of plantations managed by LD Celulose (Brazil) into the Lenzing Group
  • Transportation of some inbound materials changed from road to rail to improve carbon footprint

Responsible

  • Member of the Managing Board (Pulp)

Supporting

  • Corporate Sustainability
  • Global QESH

13) FSC® (FSC-C041246), PEFC (PEFC/06-33-92)

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