Sustainable sourcing of wood and dissolving wood pulp

[GRI 308-2]

Wood and dissolving wood pulp are Lenzing’s most important raw materials. The Lenzing Group takes responsibility by focusing on sustainable sourcing covered by certifications, responsible consumption, and the highly efficient use of these valuable resources. Lenzing sources wood and dissolving wood pulp from semi-natural forests (as defined by the Food and Agriculture Organization of the United Nations¹ (FAO), which include naturally regenerating and planted forests of similar species composition as the natural forests in the area), and plantations, as all defined by FAO², which are not from primary, natural or ancient and endangered forests.

Precise figures for the absolute volumes of wood purchased and dissolving wood pulp sourced are not provided for confidentiality reasons. As an indicative estimate, a total fiber sales of for example 1 million tons require a pulp input of around the same amount. The amount of wood required for the production of this dissolving wood pulp cannot be stated exactly, especially given the different processes and species that Lenzing’s suppliers use. Assuming a dissolving wood pulp yield from wood of 40 percent, a rough estimate for the total wood input would be 2.5 million tons (dry matter), spread between Lenzing’s own production and the dissolving wood pulp purchased.

Wood as a natural and renewable raw material plays an important role in replacing fossil-based products and helps mitigate climate change through carbon sinks in forests and wood products. For more information on the climate effects of and on wood and pulp sourcing, see the “Climate & energy” chapter – especially “Avoided emissions”, and the “Wood and pulp” focus paper.

Societal aspects

Lenzing’s Wood and Pulp Policy also refers to societal aspects, especially human rights, in wood sourcing covered by the wood certification systems used by Lenzing, FSC^®  (Forest Stewardship Council) and PEFC (Programme for the Endorsement of Forest Certification Schemes). Together with national laws and the Lenzing Code of Conduct they ensure that traditional, community, and civil rights are observed, and that labor conditions meet ILO Core Conventions³.

Dissolving wood pulp in the Lenzing Group

[GRI 204-1; ESRS E4-5]

Processing wood into fibers requires a special quality of pulp called dissolving wood pulp. The Lenzing Group’s current dissolving wood pulp capacities are 320,000 tons at the Lenzing site and 285,000 tons at the Paskov site. The Lenzing Group’s long-term strategy was to increase its own dissolving wood pulp capacities to 75 percent of its planned fiber production requirements, which has been achieved in the reporting year. In 2022, the Lenzing Group’s own dissolving wood pulp accounted for 94.7 percent (2021: 65.2 percent, 2020: 62.4 percent) of the dissolving wood pulp volume required for the fiber production. In addition to its own dissolving wood pulp production, Lenzing maintains procurement of dissolving wood pulp in the global market, mostly under long-term supply contracts. On the other hand, a share of the own pulp production is traded to the global dissolving pulp market.

The main reason for the increased own dissolving wood pulp production share is the new production facility in Indianópolis (Brazil), which was implemented in a LD Celulose joint venture together with the Brazilian Dexco (formerly Duratex) group. Lenzing holds a 51 percent stake of this site, while Dexco has a 49 percent stake. The pulp plant began operating in 2022 and almost reached its nominal capacity of 500,000 tons in the same year. It is among the most productive and energy-efficient facilities in the world, and was designed based on European Union’s Best Available Technology (BAT)⁴, and is powered by renewable energy. The pulp produced is 100 percent FSC^® certified and is bleached totally chlorine-free (TCF).

In 2022, the Lenzing Group procured pulp from the following suppliers (in alphabetical order):

For the locations of Lenzing’s own pulp supplying factories, please see “Locations of the Lenzing Group” .

Eucalyptus, pine and spruce represent the predominant wood species used by Lenzing’s partners. However, beech, birch, ash, maple as well as other hardwoods and softwoods are also processed. The actual tree species vary depending on the region and quality conditions. Regardless of the species, all of the wood originates from sustainable forest operations that are certified or controlled according to the leading forest certification schemes. An overview of the most important tree species per region can be found in the Annex. Lenzing ensures that the bleaching process of all purchased pulp is totally chlorine-free (TCF) or elemental chlorine-free (ECF).

Lenzing Group’s Wood and Pulp Policy

In its Wood and Pulp Policy, Lenzing is committed to procuring wood and dissolving wood pulp exclusively from non-controversial sources. The supply of wood and pulp of a specified quality and quantity to all of the Group’s pulp and fiber production sites is an important part of the Lenzing Group’s core business. Lenzing strives to source wood and pulp exclusively from non-controversial sources, preferring suppliers participating in credible forest certification programs, in particular the Forest Stewardship Council® (FSC®) and Programme for the Endorsement of Forest Certification (PEFC).

Controversial sources include wood derived from:

• illegal logging or the trade in illegal wood or forest products
• the destruction of high conservation values in forestry operations, including ancient and endangered forests, and endangered species habitats
• plantations established after 1994 through significant conversion of natural forests or conversions to non-forest use
• the introduction of genetically modified organisms in forestry operations
• the violation of traditional, community and/or human rights
• any violation of the ILO Core Conventions as defined in the ILO Declaration on Fundamental Principles and Rights at Work.

Regular risk assessments, audits, on-site visits, and independent third-party certification of sustainable forest management programs ensure compliance with the policy and Lenzing’s commitment to no-deforestation.

If Lenzing discovers that it has sourced wood or dissolving wood pulp from controversial sources, it will first engage with the supplier to encourage practices consistent with Lenzing’s Wood and Pulp Policy. If the response is unsatisfactory, the supplier will be delisted with a reasonable lead time. Very few such cases have occurred in recent years. There were three in 2020, one in 2021 and none in 2022. For more information, please see the “Wood and dissolving wood pulp certifications” chapter.

¹ Carle, J., and Holmgren, P. (2003). Working paper 79. Definitions Related to Planted Forests. In: Food and Agriculture Organization of the United Nations (2003). Forest Resources Assessment Program Working paper series. Available at: http://www.fao.org/forestry/25853-0d4f50dd8626f4bd6248009fc68f892fb.pdf [Accessed 15 February 2021]

² FAO Forest Resource Assessment 2020, i8661en.pdf (fao.org), p.11

³ https://www.ilo.org/asia/decentwork/dwcp/WCMS_143046/lang--en/index.htm [Accessed 15 February 2021]

⁴ Suhr, M., Klein, G., Kourti, I., Gonzalo Rodrigo, M., Giner Santonja, G., Roudier, S., and Delgado Sancho, L. (2015). Best Available Techniques (BAT) Reference Document for the Production of Pulp, Paper and Board. In: P. O. o. t. E. Union (Ed.), EUR – Scientific and Technical Research series. Luxembourg: European Commission, EUR 27235 EN – Joint Research Centre