“Activate Transformation Here”: Lenzing presents Annual and Sustainability Report 2024

• Non-financial statement published for the first time in accordance with European Sustainability Reporting Standards (ESRS) and updated double materiality
• Measurable progress in achieving ambitious sustainability and climate goals

Lenzing – The Lenzing Group, a leading provider of regenerated cellulose fibers for the textile and nonwoven industries, has published its 2024 Annual and Sustainability Report, once again setting a strong example of ecological, social, and economic success. Titled “Activate Transformation Here”, this combined report, available digitally at reports.lenzing.com, is not only a review but also a call to action and entry point to positively transform the textile and nonwoven industry together.

“To preserve our livelihoods and those of future generations, the global textile and nonwoven industry must transition to sustainable production. Although the necessary technologies and capacities are gradually coming to market, little progress has been made on a global scale so far,” says Rohit Aggarwal, CEO of the Lenzing Group. “At Lenzing, we have the know-how to produce fibers on a large scale from renewable raw materials and to recycle them sustainably. To make a difference, we need to move towards industry-wide collaboration with binding standards. This is certainly a challenge, but also an opportunity.”

The consolidated non-financial statement of the 2024 Annual and Sustainability Report complies in all material respects with the guidelines of the Global Reporting Initiative (GRI) and the legal requirements of the EU Taxonomy Regulation, and was also prepared for the first time in accordance with the European Sustainability Reporting Standards (ESRS). The report was audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft.

As part of a double materiality analysis, Lenzing identified the key issues related to its sustainability-oriented business model in a multi-stage approach in 2024. Together with Lenzing’s stakeholders, the following topics were defined as material: climate & energy, water & pollution, biodiversity & ecosystems, circular economy & resources, responsible wood procurement, sustainable innovations & products, human rights & fair labor practices, business ethics, and transparency.

Lenzing has set ambitious, group-wide sustainability goals for the key challenges in each of its strategic focus areas. The goals also contribute to the United Nations Sustainable Development Goals (SDGs).
 

Striving towards net zero

In 2024, Lenzing updated its climate targets to align its commitment to climate protection with the goals of the Paris Agreement to limit global temperature rise to 1.5 degrees Celsius. The Science Based Targets Initiative (SBTi), the leading organization in climate-related target setting, reviewed and confirmed this target upgrade. Lenzing is the only producer of regenerated cellulose fibers with a verified science-based net-zero target.

To achieve both near-term and long-term science-based targets, Lenzing is currently implementing a climate action plan that is part of the corporate strategy and has been approved by the Managing Board. In recent years, the company has invested in a photovoltaic system and a biomass power plant for its Austrian sites. Lenzing also invested more than EUR 200 mn to modernize its production sites in China and Indonesia. The conversion measures, which included upgrading to specialty fiber capacities and reducing specific emissions, were implemented in 2023. With the commissioning of two gas turbines at the Chinese site, Lenzing achieved another milestone in the transition of its energy supply from coal to natural gas in the reporting year.

The production of dissolving pulp and fibers are energy-intensive processes that pose a challenge for Lenzing. The company avoids fossil energy as much as possible and replaces it with renewable energy sources. Investments in state-of-the-art technologies and manufacturing processes with low CO₂ emissions have helped increase energy efficiency and reduce the company’s overall greenhouse gas emissions.

The non-profit organization CDP confirmed Lenzing’s performance and leadership in this area by placing the company on the prestigious A-List in the “Climate” category for the fourth consecutive year.

Lenzing has reduced its specific greenhouse gas emissions by 41 percent since 2017 and is on track to meet its science-based targets.^[1]

Lenzing also made further progress in reducing wastewater emissions. In addition to the full commissioning of its upgraded wastewater treatment plant at the Indonesian site, Lenzing also implemented further measures to install a new wastewater treatment plant at the Grimsby site (United Kingdom) in the reporting year. The commissioning of the plant, in which Lenzing has invested EUR 24 mn since 2021, is planned for 2025. Upon completion of this project, wastewater emissions at the site are expected to be reduced by up to 80 percent.
 

Focus on sustainable innovations

To support its customers and partners in achieving their climate goals and to further strengthen its position as a leading integrated fiber company, Lenzing continues to focus on sustainable innovations with strong product brands.

Lenzing introduced hydrophobic cellulose fibers for sustainable nonwovens that offer completely new product solutions for hygiene applications thanks to their innovative ability to pass liquids over their surface, that could previously only be achieved by using synthetic fibers.

Together with the technology start-up Exponent Envirotech, an innovative waterless dyeing technology for regenerated cellulose fibers was introduced, reducing water and dye consumption by 95 percent and 40 percent, respectively, compared to conventional water-based dyeing processes.

Lenzing also proactively developed and promoted innovations during the reporting year to provide economically viable and scalable solutions to the global textile waste problem and to drive the transition to a circular economy model. Together with leather alternatives expert Recyc Leather, Lenzing launched new shoe materials made from TENCEL™ Lyocell fibers and recycled leather fibers, which are characterized by a lower environmental impact.

The project “Glacial Threads: From Forests to Future Textiles” that merges glacier protection with textile recycling, is another example of Lenzing’s innovative power for the reporting period. Geotextiles made from biodegradable LENZING™ fibers^[2] make a significant contribution to protecting glaciers, which are severely threatened by global warming, without polluting the environment with microplastics. Together with a network of innovative partners, Lenzing is currently working on processing geotextiles into new textile fibers after their use. The pilot project was awarded the “Biodiversity and Water Award” at the CNMI Sustainable Fashion Awards 2024 in Milan.

Lenzing’s pioneering work in this area is also exemplified by the CELLFIL project, launched in 2024 and co-financed by the EU with EUR 6.9 mn. As part of this project, Lenzing is working with the non-profit organization RTDS Group and 13 other partners from research and industry to promote the scaling of lyocell filaments.

Since 2021, Lenzing has been working with Swedish pulp producer Södra to jointly develop new processes for recycling used textiles on an industrial scale. The project was supported in 2023 with a EUR 10 mn grant from the EU under the LIFE 2022 program.^[3]

Champion of sustainability

Sustainability combined with transparency and traceability, innovation, and strong brands are Lenzing’s key differentiators. For its achievements and leadership in ecological and social sustainability, Lenzing was once again recognized by the industry’s most important rating providers. In addition to its top CDP rating in the “Climate Change” category, Lenzing also received very good “A-“ and “B” ratings from CDP in the “Forests” and “Water Security” categories. In the CSR rating by EcoVadis, Lenzing achieved platinum status, the highest rating, for the fourth consecutive time, placing it in the top one percent of companies evaluated worldwide. MSCI rated Lenzing with an “A”, and achieved first place in the global “Hot Button Ranking” by the non-profit organization Canopy, which evaluates the performance of global producers of regenerated cellulose fibers in the areas of sustainable sourcing, transparency, and innovation.

The results for the 2024 financial year have already been published. You can read the corresponding press release here: https://www.lenzing.com/newsroom/press-releases.

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^[1] Scope 1, 2 and 3; reported per ton of pulp and fiber sold; index based on t CO2 eq./t, 2017 = 100 %

^[2] LENZING™ fibers which are TÜV certified as biodegradable (soil, fresh water & marine) and compostable (home & industrial) include the following products: LENZING™ Viscose Standard textile/ nonwovens, LENZING™ Lyocell Standard textile/nonwovens, LENZING™ Modal Standard textile, LENZING™ Lyocell Filament, LENZING™ Lyocell Dry and LENZING™ Nonwoven Technology. An exception in certification exists for the LENZING™ Lyocell Filament fiber, for which the necessary tests to confirm biodegradability within a marine environment have not been conducted.

^[3] Project 101113614 — LIFE22-ENV-SE-TREATS