Climate Change Data

Lenzing AG

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2.77 million tons CO2e (Scope 1, 2 & 3)
Scope 1 Emissions:1.00 million tons CO2e
Scope 2 Emissions:0.34 million tons CO2e
Scope 3 Emissions:1.43 million tons CO2e
Total Energy Consumption:60.89 Million GJ
Water Consumption:118,793 Megaliters (total withdrawal)
Carbon Intensity:1.88 tons CO2e per ton of fiber & pulp sold (2023)

ESG Focus Areas

  • Circular economy & resources
  • Climate & energy
  • Responsible wood procurement
  • Biodiversity & ecosystems
  • Sustainable innovations & products
  • Health & safety
  • Human rights & fair labor practices
  • Business ethics
  • Digitalization & cyber security

Environmental Achievements

  • Successfully completed modernization and conversion of the Purwakarta (Indonesia) site, significantly reducing emissions and achieving EU Ecolabel certification.
  • Successfully converted a production line in Nanjing (China) to TENCEL™ branded modal fibers.
  • Launched LENZING™ ECOVERO™ fibers with REFIBRA™ technology, containing up to 20% post-consumer textile waste.
  • Acquired a biomass power plant to supply the Heiligenkreuz site, increasing energy independence and reducing carbon emissions.
  • Achieved a 40% reduction in specific GHG emissions per ton of pulp and fiber sold (baseline 2017).

Social Achievements

  • Published a Global Equity, Diversity and Inclusion (EDI) policy with training for all employees.
  • Initiated two employee resource groups (ERGs) to promote gender equality and multiculturalism.
  • Supported numerous social projects for local communities near Lenzing sites.

Governance Achievements

  • Established an ESG Committee within the Supervisory Board to oversee non-financial reporting and strategic ESG issues.
  • Linked executive compensation to both financial and non-financial sustainability criteria (ESG).

Climate Goals & Targets

Long-term Goals:
  • Achieve at least a 90% reduction in absolute GHG emissions (scopes 1, 2, and 3) by 2050 (baseline 2021).
Medium-term Goals:
  • Offer viscose, modal, and lyocell staple fibers with up to 50% post-consumer recycled content on a commercial scale by 2025.
  • Reduce scope 1 and 2 absolute GHG emissions by 42% and scope 3 absolute GHG emissions by 25% until 2030 (baseline 2021).
Short-term Goals:
  • Improve Lenzing Group’s specific wastewater emissions (COD) by 20% by 2024 (baseline 2014).
  • Achieve 'aspirational' MMCF level for ZDHC wastewater and air emission guidelines at Lenzing viscose facilities by 2026.
  • Achieve 'aspirational' MMCF level for ZDHC wastewater and responsible production guidelines at Lenzing lyocell facilities by 2028.
  • Implement and annually update the Facility Environmental Module (FEM) in all pulp and fiber production facilities by 2024.

Environmental Challenges

  • Continued low demand for cellulosic fibers and lower prices.
  • Continued sharp increase in raw material and energy costs.
  • Geopolitical tensions and devastating natural disasters impacting economic activity.
  • Slower than expected market recovery.
  • Risks of wood unavailability due to forest degradation.
  • Reputational risk in the textile sector.
  • Chronic physical climate risks (extreme weather, water scarcity).
  • Increased biomass costs.
  • Potential regulatory, technology, market and corporate reputational risks.
Mitigation Strategies
  • Implemented a reorganization and cost reduction program.
  • Strengthened balance sheet and liquidity positions through a capital increase and debt term extensions.
  • Launched a comprehensive performance program focused on free cash flow, revenue growth, and sustainable cost excellence.
  • Modernized and converted production sites in Indonesia and China to increase efficiency and reduce emissions.
  • Acquired a biomass power plant and sourced green electricity from renewable sources.
  • Implemented a Safe Supply project for alternative sourcing strategies.
  • Developed flood protection and evacuation plans.
  • Implemented measures for water efficiency, reuse, recycling, and conservation.
  • Embarked on an ambitious growth strategy focused on sustainable and premium fibers.
  • Proactively disclosed information on business practices and environmental footprint.
  • Updated science-based targets (SBTs) to align with a 1.5°C scenario.

Supply Chain Management

Supplier Audits: 40% of spend covered by EcoVadis, Together for Sustainability audits, or internal assessments.

Responsible Procurement
  • Global Code of Conduct for Suppliers
  • Sustainability clauses in supply agreements with key chemical suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Water scarcity
  • Forest fires
  • Pest outbreaks
  • Droughts
Transition Risks
  • Emerging regulations on carbon pricing
  • Increased biomass costs
  • Reputational risk in the textile sector
Opportunities
  • Increased demand for low-emission products
  • Decarbonization strategy de-risks operations

Reporting Standards

Frameworks Used: GRI, ESRS

Certifications: ISO 9001, ISO 14001, ISO 45001, EU Ecolabel

Third-party Assurance: KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

UN Sustainable Development Goals

  • Goal 1
  • Goal 3
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15
  • Goal 17

Lenzing's initiatives contribute to these SDGs through sustainable production practices, responsible sourcing, biodiversity conservation, climate change mitigation, social programs, and stakeholder engagement.

Sustainable Products & Innovation

  • LENZING™ ECOVERO™ fibers with REFIBRA™ technology
  • LENZING™ Lyocell Dry fibers
  • TENCEL™ LUXE filaments
  • Glacier protection fleece

Awards & Recognition

  • CDP triple "A" rating
  • MSCI ESG rating of "AA"
  • Canopy "Dark Green" shirt
  • EcoVadis Platinum status
  • ITMF Award
  • Swiss BIO TOP award
  • Austrian Sustainability Reporting Award