Circularity & resources

Material topic: Circularity & resources

[GRI 3-3; ESRS E5-1, E5-2]

Lenzing is developing a circular economy model by creating more sustainable systems and processes at every opportunity. The company has worked hard to achieve greater efficiency in the use and reuse of resources, such as closing loops in production processes and producing fibers that are biodegradable (applying to TÜV certified biodegrable and compostable LENZING™ fibers) at the end of their life. Such measures also ensure that Lenzing remains financially competitive and compliant with environmental legislation. As Lenzing continues to drive circular solutions across both the business and the industry, the complex transition from a linear to a circular system requires a collaborative approach. The company has partnered with Swedish pulp producer Södra to generate more opportunities for recycling waste, creating circular practices and promoting systematic change. The company strives to create as much value as possible through improved sustainability performance that impacts the entire value chain.

Actual and potential negative and positive impacts

Positive

• Creating new product offerings and business models to help the industry to change
• Optimizing the eco-footprint of Lenzing products
• Optimizing the value Lenzing generates via the environmental responsible products it supplies
• Lowering emissions by closing energy and material loops
• Replacing products that cause end-of-life pollution (e.g. microplastics contamination) with biodegradable alternatives
• Valorizing biorefinery products
• Cutting the use of virgin raw materials
• Driving innovation on recycling and optimizing closed loop processes
• Joining forces and sharing know-how within partnerships for systemic change

Negative

Own activities:

• Falling behind competition in terms of efficiency

Business relationships:

• Transitional risks due to changing legislation and stakeholder expectations (NGOs, customers)

Policies and commitments

• Circularity is a core pillar of the company’s new “Better Growth” strategy
• “Naturally positive” sustainability strategy with “Advancing circularity” as one of its three major principles and “Partnering for systemic change” as a focus area
• Lenzing Group Environmental Standard
• Lenzing Waste Management Guideline

Actions taken

• Strategic investments in pulp and fiber projects fully on track despite COVID-19
• Collaboration signed with Södra to jointly install a process for post-consumer cellulosic recycling
• Lenzing signed a five-year agreement for the sale of Renewcell’s recycled dissolving pulp
• Targets for textile recycling on track
• Lenzing intensified its collaboration with leading stakeholders and initiatives
• Partner in the newly founded Christian Doppler Laboratory for a recycling-based circular economy
• Contribution to supply chain transparency to facilitate circular economy projects
• Viscose defined as a non-plastic in the European Single-Use Plastics Directive (SUPD) (Directive (EU) 2019/904)Environmental management system based on ISO14001:2015 (including risk assessment and internal audits to ensure the effectiveness of the measures implemented)
• Joined the Circular and Sustainable Textile Clothing project (CISUTAC)

Sustainability targets, measures and progress

For more information, please see the “Sustainability targets, measures and progress” chapter.

Stakeholder

• Circular Fashion Partnership
• Policy Hub
• CISUTAC
• EURATEX
• Textiles 2030
• Södra
• Renewcell

For more information, please see the “Stakeholder engagement” chapter.

Responsible

• Members of the Managing Board (Pulp and commercial)
• Head of Circularity Initiative

Supporting

• Corporate Sustainability
• Global textile business
• Global nonwoven business
• Global BU Noble Fiber
• Pulp Division
• Global Quality, Environment, Safety & Health (QESH)
• Research & Development
• Site managers