[GRI 405-1, 413-1; ESRS S3-4]
Why diversity and inclusion matters for Lenzing
Lenzing is committed to creating a diverse and inclusive environment where people feel that they belong and can succeed regardless of characteristics such as gender, age, ethnicity, cultural background, or language.
Companies that have greater workplace diversity outperform their competitors by a significant margin. According to a McKinsey 2020 report, there are many reasons to strive for a more inclusive and more diverse workforce, including greater innovation and engagement and fostering diverse ideas. However, ethnically and gender diverse companies achieve higher profits as well.
Companies with a diverse workforce are 35 percent more likely to outperform their competitors. According to a People Management article published in 2020, diverse teams are 87 percent better at making decisions, while companies employing an equal number of men and women produce up to 41 percent higher revenue based on a study conducted by Clear Company in 2022.
In addition, more diverse companies have a greater likelihood of winning top talent and improving and promoting employee retention and satisfaction. A Glassdoor study conducted in 2018 shows that 2 out of 3 candidates look for companies that have diverse workforces; 76 percent of job seekers report that diversity is an essential factor when evaluating potential employers and job offers. In addition, a study conducted by Deloitte University in 2015, highlights that millennials are 83 % more likely to be engaged at work at inclusive companies. In a 2019 article, Josh Bersin supports the view that diverse employers are 1.7 times more innovative. This suggests that diversity is likely to bring a competitive advantage for companies when attracting and retaining talent.
People perform best when they feel empowered, respected, and valued by their colleagues and by their manager and top management in general. Promoting diversity, equity, and inclusion is a win-win-win for organizations, employees, and society. The clamor for diversity, equity and inclusion encompasses and cuts across gender, age, race, ethnicity, cultural background, language, religion, sexual orientation, and disabilities. Lenzing data around diversity at different levels of the organization suggest a need for increasing the diversity of the workforce and continuing to shape Lenzing’s culture towards a more inclusive company. The following section shows Lenzing’s demographic data for its workforce as well as relevant insights.
The Lenzing Group’s workforce is becoming increasingly international. Despite the company’s firm roots in Europe, an international corporate culture has evolved in the Lenzing Group based on strong collaboration between its sites in Asia, Europe, and the Americas. The management team actively supports the internationalization of the workforce at all levels. At the same time, Lenzing remains an agile, hands-on company committed to service excellence while still preserving a close-knit community culture.
For details on the different nationalities working in the Lenzing Group, please see the table “Different nationalities within the Lenzing Group 2022” in the annex.
In the Lenzing Group’s Policy on Human Rights and Labor Standards, Lenzing undertakes to respect and support fundamental labor rights and principles such as protection from discrimination, harassment, and inhumane treatment. This encompasses protection against employment decisions based on personal characteristics or beliefs that are not related to the ability to do one’s job, including gender, age, color, national origin, ethnicity, social background, sexual orientation, family responsibility (including pregnancy), disabilities, political opinion, sensitive medical conditions, marital status, and any other discrimination in working conditions. These topics are also reflected in the Lenzing Global Code of Conduct, which all employees are required to follow.
Based on the gender diversity analysis carried out in 2021 and the results of the focus groups formed for this purpose, HR managers received special diversity training in the past fiscal year. Together with Shape Talent, a renowned UK based agency, the company is currently working on the implementation of Employee Resource Groups to address topics such as Women@Work or ethnicity together with committed and interested employees.
In order to make the workforce more aware of the topic, a corresponding eLearning course was offered at the end of 2022 and promoted as the “Course of the Month”.
For detailed information about the social impact assessment, please see the “Materiality analysis” focus paper.