Reiterating the strategic significance of social and environmental responsibility for the business, The Lenzing Group, a major global manufacturer of regenerated cellulosic fibers for the textile and nonwovens sectors, has released its first combined annual and sustainability report. The financial year 2023 report has been prepared in digital format once again and can be accessed at reports.lenzing.com: Under the heading “Ready to join?” Lenzing would like to invite all of its clients and associates to work together to revitalize the nonwovens and textile industries and effect good change.
This sustainability and yearly report serves as a call to action for collaborative problem-solving. Lenzing is putting forth great effort to drive the shift from a linear to a circular textile business model and to further increase the sustainability of the sectors in which it operates. The CEO of the Lenzing Group, Stephan Sielaff, states that additional industry efforts and a policy aimed at providing sustainability pioneers with an even playing field are necessary for this shift to succeed. “I hope you have a fascinating read. Allow us to reevaluate systems and procedures, be inspired by our creative endeavors, and collaborate to effect constructive change.
Aiming to achieve net-zero:
Lenzing has updated its current production facilities in China and Indonesia with investments totaling more than EUR 200 million in recent years. The conversion procedures were successfully implemented in 2023 with the goal of improving capabilities for environmentally acceptable specialty fibers while also drastically reducing specific emissions. With the accreditation of the LENZING ECOVERO and VEOCEL branded specialized viscose produced at the Indonesian plant by the globally renowned EU Ecolabel, Lenzing achieved a significant strategic milestone in the reporting year.
Lenzing also made more strides toward meeting its climate and sustainability goals. For instance, the corporation cut its particular sulfur emissions to air by 58% (compared to the base year 2014) and its absolute greenhouse gas emissions by 19% (scope 1, 2, and 3; compared to the base year 2021).
Lenzing has amended its climate targets in order to better match its commitment to combating climate change with the Paris Agreement’s goals of limiting the increase in global temperature caused by human activity to 1.5 degrees Celsius. This target enhancement has been examined and confirmed by the most reputable body in the field of climate-related target formulation, the Science Based Targets Initiative (SBTi).
Lenzing is the pioneer manufacturer of regenerated cellulosic fibers with a net-zero goal verified by science. Beginning in 2021, Lenzing plans to cut its emissions by 25% for indirect emissions along the value chain (scope 3) and by 42% for emissions from purchased energy (scope 2), as well as direct emissions from the production of its fiber and pulp plants (scope 1). Instead of the 700,000 tons that were the original aim, this translates into an absolute reduction of 1,100,000 tons.
Conversion to a circular economy:
Lenzing is advancing the subject of recycling in accordance with the “Better Growth” plan in an effort to hasten the shift of the textile and nonwovens sectors from a linear to a circular economy model. For years, Lenzing has actively developed and encouraged innovation in the industry to offer scalable and financially feasible solutions to the problem of global textile waste. Lenzing has been collaborating with Södra, a Swedish pulp mill, since 2021 to jointly research novel methods for industrially recovering unwanted textiles. As part of the LIFE 2022 initiative, the project received funding from the EU in the reporting year totaling EUR 10 million.
Lenzing also advanced product development in the textile sector by incorporating LENZING ECOVERO fibers into its REFIBRA technology. Up to 20 percent post-consumer textile waste, derived from cellulose-rich materials or polyester-cotton blends, is present in the new viscose fibers with REFIBRA technology. Customers around the world may now purchase LENZING ECOVERO fibers with REFIBRA technology thanks to the production’s successful scalability and development.
“Champion of sustainability”
The most well-known rating agencies and organizations have once again honored Lenzing in 2023 for its achievements in the sustainability sector and its high degree of reporting transparency. Lenzing has been listed on the annual “A-List” in every category by the international non-profit environmental organization CDP for the third consecutive year. Out of over 21,000 organizations evaluated, Lenzing is now one of only 10 companies worldwide to obtain a triple “A.” Additionally, Lenzing was granted platinum certification in the EcoVadis CSR assessment once more. Lenzing is now among the top 1% of businesses worldwide according to EcoVadis. For the third consecutive year, MSCI gave Lenzing a “AA” grade, ranking the company in the top 8% of all companies.
Suitability for the Green Deal:
By taking these steps, Lenzing is proactively lowering supply chain risks for consumers and other stakeholders, so contributing significantly to the EU aims under the Green Deal. Lenzing actively supports climate protection efforts with its net-zero aim (scope 1, 2 and 3), which has been scientifically verified and confirmed. Lenzing has already started conducting an impact analysis and the EcoVadis or Together for Sustainability audit supplier assessment in order to comply with the future requirements of the proposed EU supply chain law (Corporate Sustainability Due Diligence Directive, CSDDD).
Lenzing’s leadership in production and management transparency is further demonstrated by its certifications from the ZDHC Foundation, the independent Higg Facility Environmental Module (FEM), and the Higg Facility Social and Labor Module (FSLM). In 2023, the independent Higg Facility Environmental Module (FEM) evaluated seven production sites owned by the Lenzing Group, and they received excellent ratings.
Lenzing, as a trailblazer in sustainability, is in favor of the Green Claims Directive draft, which aims to prevent greenwashing and empower customers to make more informed decisions about what to buy by providing them with trustworthy environmental information. Lenzing included key components of the new European Sustainability Reporting Standards (ESRS) in their sustainability reporting for 2022 and 2023.
For the first time in 2023, the Lenzing Group’s consolidated non-financial statement and sustainability report will be included in the annual report. They were prepared in compliance with the Austrian Sustainability and Diversity Improvement Act (NaDiVeG) and the Global Reporting Initiative (GRI) guidelines, and KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft conducted an audit.
