Product quality and safety

[GRI 2-23, 2-25, 416-1, 416-2, 417-2; ESRS S4-1, S4-3]

To uphold the quality standards and fulfill our commitment as described in our Quality Policy, Lenzing invests in people and innovation and engages actively with raw material suppliers to establish long-lasting relationships. Constant customer feedback and competitor benchmarking ensures continuous improvement in our operations, services and products and delivers added value to Lenzing and customers. Independent third-party certifications are in place to certify standards, products, and management systems.

In this respect, Lenzing operates a quality management system based on ISO 9001:2015. Additional quality management systems such as FAMI-QS and Hazard Analysis Critical Control Points (HACCP) are in place for specific business segments. All form the basis for the relevant work processes and reinforce efforts to achieve complete customer satisfaction. Product Safety & Regulatory Affairs manages the majority of external third-party certifications on a global level and assesses new certification requests. These certificates serve to ensure transparency and demonstrate the safety and compliance of Lenzing fibers as well as their compatibility in their application fields. Information on all the Lenzing Group’s product certifications are available at: https://www.lenzing.com/sustainability/product-benefits/

It is imperative that Lenzing’s products meet and, whenever possible, exceed applicable safety standards and legislation. In the Lenzing Product Safety Policy, Lenzing pledges to drive compliance with this policy and high internal standards on a continuing basis through appropriate reviews and evaluations.

The Product Safety & Regulatory Affairs department (part of Global QESH) is globally responsible for the safety of Lenzing fibers in their intended uses and for compliance with laws, regulations, and standards that apply to the nonwoven and textile fiber businesses. Therefore, risk analyses for all intentional and non-intentional ingredients are carried out and the impact of business-specific regulations, standards, and requirements is continuously monitored and assessed. All Lenzing fiber products undergo health and safety testing. However, the ultimate responsibility for consumer health is borne by the companies that manufacture finished products from Lenzing fibers.

Product quality and safety activity: 2022 summary

The newly introduced production site in Thailand has demonstrated a steady improvement of its quality metrics in line with its ramp-up plans. Despite COVID-19-related disruptions, pulp availability problems, energy prices and global political developments, which created additional quality problems in some factories, deviations in quality were further reduced.  Although improvement in key defect categories continued in most of Lenzing’s lyocell and viscose factories, performance is expected to be comparable to 2021, which is reflected in the quality-related KPIs for the entire Group (e.g., reduction of poor quality share).

In 2022, several of the Fiber Quality strategic initiative projects achieved their goals, while others are in their last phase with completion date in the first half of 2023. Deliverables from these projects are: a) the introduction of guideline documentation and system for process modeling and presentation as well supporting templates, b) the organization of a global quality conference where winning quality practices and behaviors were presented, c) introduction of processes that accelerate internal activities that support service quality and customer intimacy (e.g., an end-to-end “Voice of the customer process” that focus on the effective translation of customer requests into needs and internal requirements and their consecutive conversion into new or change in existing products and services).

Good results for 2022

In 2022, the number of product and logistics complaints for the fiber business remained at the same level as 2021. The current performance indicates the effectiveness of the quality improvements implemented in both product and service quality areas. Lenzing is confident that all of its products perform well in their respective applications. As in previous years, there were no complaints or incidents of non-compliance concerning the health and safety impact of products and services.

Risk analyses and assessments for new intentional and non-intentional ingredients are carried out by performing formal compliance reviews with a newly created template. Business-specific regulations, standards, and requirements are continuously monitored, assessed and documented. In the reporting year, these assessments did not trigger any additional measures in order to be compliant with the high internal standards.