Sustainability targets, measures and progress

The project is in the full construction phase. The current global situation, with the war against Ukraine, a shortage of semiconductors and China lockdowns, is delaying several shipments from Europe and Asia. This is having a major impact on the project completion schedule. Weather conditions in Purwakarta, with heavy and frequent rainfall, are also impacting the construction activities. Based on the current situation, the start-up of the sulfur recovery plant is likely in the first half of 2023.

The joint efforts with Södra to develop a recycled pulp with a share of post-consumer waste on an industrial scale were successfully continued. Significant progress was made towards the development of a production line processing 25 kt of textile waste. Start-up of this plant is targeted for 2025. Overall, Lenzing continued with product and process development towards reaching the key target for 2025. The biggest challenges are adapting the recycled pulp for industrial fiber production and securing the supply of good quality recycled pulp for cellulose fibers. These challenges also led to a delay of at least one year in the first measure for 2022.

The organizational structure was set up to create new business models. There have been initial discussions and scouting of brands and supply chain partners to develop collaborative pilot projects. Lenzing became a partner of the EU-funded CISUTAC (Circular and Sustainable Textile and Clothing) project together with 27 other consortium members, aimed at removing bottlenecks to enhance textile circularity in Europe. Additionally, Lenzing committed to joining the “Transform Waste into Feedstock” project within the EURATEX Rehubs Initiative led by Texaid.

All Lenzing viscose sites – Lenzing (Austria), Nanjing (China), Purwakarta (Indonesia) – have continuously reported to the ZDHC Gateway on time in 2022. While the site in Lenzing has achieved the aspirational level as defined by the wastewater guideline, the sites in Nanjing and Purwakarta have developed their own action plans for further improvement in the coming two years. The ZDHC MMCF guideline was revised in 2022 and it has been extended to include lyocell fiber, among others. Lenzing will start to implement the guideline accordingly at all its fiber production sites in 2023.

The current global situation, with the war against Ukraine, a shortage of semiconductors and China lockdowns, is delaying several shipments from Europe and Asia. This is having a major impact on the project completion schedule. Weather conditions in Purwakarta with heavy and frequent rainfall, are also impacting the construction activities. The start-up is planned for the first half of 2023. In Grimsby, the Membrane Bio Reactor (MBR) route for the wastewater treatment plant was selected. The pilot plant, proving trials and designs have been completed. It is on track for commissioning and operation in the second half of 2024.

By the end of 2022, the first 12 ha have been reforested and more than 400 forest workers were trained in sustainble forest management. Student enrollment in the Shkodra Forest School is increasing. Tree seedlings are being grown with a survival rate of 85-90 percent in the new tree nursery for future restoration projects.

Lenzing achieved this goal in 2022 and increased the total conservation area in Brazil even further than the target, to 17,000 ha.

Lenzing defined the guidelines to be taken into account for selecting (a) suitable project(s) based on different stakeholder criteria.
Additionally, potential projects, partners and solutions performed by other players were identified. A potential combination of projects to be executed was selected in the reporting year and final alignment is planned for 2023.

Lenzing joined Together for Sustainability. The number of suppliers responding to the EcoVadis questionnaire more than doubled to 387. Sustainability clauses were included in the first suppliers contracts as part of the general conditions.

Internal targets as well as group and site level roadmaps have been developed. Lenzing determined the expansion of FEM to new sites and adjusted the group roadmap accordingly. In 2022, Lenzing carried out internal FEM assessment and external training to prepare for the first external verification of Higg FEM in 2023. Preparation for new sites in Thailand and Brazil will start next year.

Lenzing maintained its approach towards mitigating climate change by reducing its GHG emissions compared to baseline 2017. Detailed information on achievements in 2022 is available in the “Climate & energy” chapter.

Lenzing has commissioned the largest ground-mounted photovoltaic system in Upper Austria, which is expected to provide 5,500 MWh annually. This is expected to cut CO₂ emissions by some 4,400 tons per year. The transition to solely renewable electricity in Nanjing (China) is underway and expected to be completed in 2023. Phasing out coal in Nanjing (China) is ongoing, however the project was delayed due to long negotiations with gas stakeholders such as infrastructure and supply and the strict COVID-19 restrictions in China. The targeted carbon neutrality in (Prachinburi) Thailand was achieved in 2022. For more information, please see the “Climate & energy” chapter.

For the sites in Nanjing (China) and Mobile (USA): Completion of online assessment, preparation of on-site audits, completion of certification expected in Q1/23, training modules for all sites in preparation. For the sites in Austria and the Czech Republic, a different verification is being sought, as these two countries cannot be verified according to FSLM.

In 2022, further measures were taken to provide diversity training and publish a range of global guidelines to explain processes and benefits that impact employees’ terms and conditions to ensure fairness and consistency across the Group. In order to get an overview of existing guidelines and policies to be included in the working conditions policy, several guidelines were reviewed and developed such as the Job Evaluation Guideline, Guideline for Creating a Job Description, Learning and Development Guideline and Talent Management Guideline. In 2023, it will be summarized in one (global) policy.

In 2022, Lenzing continued supporting numerous social and environmental initiatives for enhancing community development and wellbeing. Depending on local requirements, activities range from donations, sponsorships, health and medical care, scholarships and other educational programs, as well as local environmental projects. A current overview of activities conducted in 2022 at each site is provided in the “Social responsibility” focus paper.