Lenzing will deploy different levers based on technical feasibility for Scope 1 & 2 emissions. They can be broadly grouped under four categories (figure “Levers to meet science-based target”). Innovation is the Lenzing Group’s core competence and allows it to launch new products that reduce climate-related impacts on the downstream value chain. Those avoided emissions are currently outside the Scope of the science-based target methodology, so Lenzing will not claim them as part of the company’s target achievement. However, the following levers are key to achieving the defined target:
- The first lever addresses energy efficiency. Relevant measures include replacing inefficient pumps, optimizing current technologies, planning efficiently, and further reducing losses to save energy. Better stewardship ensures the efficient running of equipment with strict maintenance scheduling and immediate responses to malfunctions and leaks. Additionally, energy efficiency improvements will be supported by cross-learning and taking advantage of synergies across the Lenzing sites and among industry peers.
- The second lever concerns fuel. Reducing and avoiding the use of fossil fuels by switching from high-carbon fuels to low-carbon or carbon-neutral fuels (Scope 1) as well as scaling up the procurement of renewable grid electricity (Scope 2) will make a major contribution to target fulfillment.
- Third, Lenzing is seeking future growth via integrated pulp and fiber production facilities. ”Integrated” means that pulp and fiber production are combined at one and the same site. This has two effects: it provides renewable bioenergy for fiber production and also saves energy by avoiding pulp drying and pulp transportation. This will ensure economic growth while reducing Group CO2 emissions. Other opportunities will be explored, including virtual integration, e.g. using surplus renewable electricity produced at one production site at another site in a different location.
- The fourth lever focuses on developing technologies to decarbonize heat generation. As most of the energy for fiber production has to be supplied in the form of steam, the decarbonization of heating will present the biggest challenge for Lenzing. Electrification-based solutions will therefore play an important part. For example, a heat pump based on renewable electricity can partially switch the power source for generating heat from fuel to electricity. Similarly, alternative fuels have to be developed, such as hydrogen produced with renewable electricity or bio-methane generated from organic waste.
In order to reduce Scope 3 emissions, Lenzing is engaging with suppliers such as pulp and chemicals producers and transportation service providers. Lenzing has stepped up its dialog with suppliers according to a collaborative approach. This dialog is part of the EcoVadis-based supplier sustainability assessment tool, which helps to understand the targets and progress that suppliers achieve annually. In addition, Lenzing periodically conducts discussions with key suppliers to find different options and approaches.