Double materiality analysis

[GRI 3-1, 3-2]

Materiality analysis

Lenzing presented its “Naturally Positive” sustainability strategy in 2017. In the run-up to this, it performed a comprehensive materiality analysis for the first time in 2015. This materiality analysis was updated and expanded in 2021. For the first time, a so-called double materiality analysis was carried out. This means that both the influence of the environment on the company and the influence of the company on the environment were examined and supplemented by the financial consideration of these influences.

Lenzing is continuously engaging with stakeholders to understand the relevance and update the materiality analysis if required. In the reporting year, Lenzing had conversations with several stakeholders (e.g. Canopy) and no new topics were identified.

The new materiality matrix of the Lenzing Group was developed in three phases. The first phase was dedicated to defining the potential material topics. Around 300 internal and external topics and trends in the environmental, social and governance (ESG) domain were identified for the present and future. This list of topics was divided according to ESG criteria and then summarized, which yielded the 16 potential material topics (i.e. the short-list).

The second phase was to prioritize the potential material topics with the help of external and internal stakeholders. For this purpose, a stakeholder survey and an impact analysis were carried out in order to be able to compile a topic ranking in the third phase of the process. For each of these topics, a brief description of the impacts, risks, opportunities, expectations and current situation was prepared and a questionnaire was created. This questionnaire was sent worldwide to employees at different levels, the Supervisory Board, investors, suppliers, customers, partners from the value chain, brands, insurance companies and the media. The feedback received from stakeholders regarding the relevance of the different topics, have been considered in the final materiality matrix.

In addition, an impact analysis of these topics was carried out with 40 employees from various areas who are also involved in sustainability reporting on ecological and social impacts. These experts were selected from the areas of business management, risk management, sustainability, finance, etc.

In the last phase, the impact analyses and the stakeholder survey results have been compiled to the final materiality matrix, which allowed ranking the issues and thus defining the material issues for the company.

Material aspects

For further information on the updated materiality analysis, please see the “Materiality analysis” focus paper.