[GRI 2-9, 2-10, 2-11, 2-12, 2-13, 2-14, 2-15, 2-18, 2-19, 2-20]
Corporate Sustainability reports directly to the Managing Board. In addition, an internal committee (ESG Committee) has been established to accelerate the sustainability agenda in the company, with meeting held on a quarterly basis. Regular alignments on various topics take place with different functions to drive the integration of social and environmental concerns into the company’s business operations. General information on corporate Governance can be found in the Lenzing Group’s Annual Report 2022 (Corporate Governance Report.)
Board remuneration linked to sustainability performance
The principles of the Remuneration Policy were revised in the 2021 financial year and the Annual General Meeting in 2022 approved the new Remuneration Policy. The Remuneration Policy of Lenzing AG for the performance-based remuneration of the Managing Board is linked to both financial performance and non-financial sustainability criteria (ESG), which further promote the sustainable business strategy. Therefore, in addition to the existing criteria, the long-term incentive (LTI), which is a variable performance bonus, has been expanded to include sustainability targets for Managing Board members.
Sustainability is a value, business and innovation driver in the Lenzing Group. The company is increasingly leveraging its sustainability work by positioning itself using net benefit products (e.g. ECOVERO™), key ratings (for investors) and benchmarking tools at the wider industry level. To support these efforts, an ESG committee has been installed to accelerate the sustainability agenda implementation by aligning across functions. The key objectives are to formulate and execute the company’s sustainability vision, strategy and ESG benchmarks and tools. The ESG committee consists of the Managing Board and heads of different functions, who review the progress of the sustainability targets, evaluate the effectiveness of Lenzing’s approach to managing all aspects of sustainability, including risks and opportunities, and make long-term strategic decisions. The corporate sustainability department is an integral part of the committee and works closely with several functions to ensure the integration of sustainability aspects in various business processes and to respond to stakeholder needs and expectations and prepares organization to be future-fit.