NHB - 2022 - EN - Sustainability Report 2022

Advancing Circularity
and the people making it happen

Sustainability Report
2022
Lenzing Group
Table of Content
Lenzing Group 2022 3

Sustainability key performance indicators 4
Highlights of the year 5
About this report 6
Letter from the CEO 7
Impact of the war against Ukraine on the Lenzing Group 9
Lenzing Group: A brief portrait 10
“Sustainability is at the core of our
Value creation in the Lenzing Group 11
business strategy. This report details our
The locations of the Lenzing Group 13
achievements of that strategy, and our
continued commitment to a future when Managing Sustainability 2022 14
circularity is the norm.” Governance structure for sustainability 15
Risk management 17
Learn more Compliance 17
Double Materiality analysis 18
“Naturally positive” sustainability strategy 20
Taxonomy 25
Partnering for systemic change 28
18 %
Material topics 2022
Circularity & resources
Climate & energy
30
31
39
Reduction of specific
Raw material security 49
greenhouse gas emissions
Biodiversity & ecosystems 57
Chapter Climate & energy
Sustainable innovations 64
 Page 39
Health & safety 81
Human rights & fair labor practices 85
Business ethics 97
10%
Digitalization & cyber security 102
Stakeholder engagement 108
Annex 2022 114

Reduction of specific water Supplementary information pursuant to §243b UGB 115
emissions after wastewater Additional information on chapters 117
treatment
NaDiVeG compliance table 120
Chapter Sustainable innovations GRI Content Index 120
 Page 64
TCFD Index 120
Independent Assurance Report on the Non-financial
Reporting according to 243b and 267a UGB 121
Glossary 123
71 %
List of tables and figures
Imprint
128
131
Net-benefit products
Chapter Sustainable innovations
 Page 64
1 Sustainability Report 2022 Lenzing Group

Sustainability
Investment Innovation
Advancing Circularity
and the people making it happen
In our online Sustainability Report 2022, we tell how we are

driving the industry's transformation from linear to circular
even in challenging times. Find out more about our progress
in the area of sustainability in three stories.
Watch video

CHAPTER
1 /4
Lenzing
Group
2022
Table of Content
Sustainability key performance indicators 4
Highlights of the year 5
About this report 6
Letter from the CEO 7
Impacts of the war against Ukraine
on the Lenzing Group9
Lenzing Group: A brief portrait 10
Value creation in the Lenzing Group 11
The locations of the Lenzing Group 13

Sustainability key performance indicators
[GRI 201-1]
Lenzing Group: Sustainability key performance indicators Table 01
2020 2021 2022
Value creation EUR 406.4mn EUR 685.4mn EUR 527.6mn

Distribution of value creation
Employeesb,c EUR 347.5mn EUR 446.4mn EUR 449.5mn
Economic value creationa
Retained earnings EUR –10.6mn EUR 12.2mn EUR –37.2mn
Public sectord EUR 44.8mn EUR 67.6mn EUR 42.6mn
Shareholders (dividends)e EUR 0.0mn EUR 115.5mn EUR 0.0mn
Lendersb,f EUR 26.7mn EUR 43.6mn EUR 72.7mn
ROCE (return on capital employed)b,g –0.6 % 5.4 % 2.0 %
Adjusted equity ratiog 45.8 % 39.7 % 37.8 %
Revenue EUR 1,632.6mn EUR 2,194.6mn EUR 2565.7mn
EBITDA (earnings before interest, tax, depreciation and
amortization)b EUR 192.3mn EUR 362.9mn EUR 241.9mn
Sales volume fibers (t) 787,000 909,000 814,430
Proportion of wood source certified or controlled by
Raw material security forest certification >99 % >99 % >99 %
Share of own pulp 62.4 % 65.2 % 94.7 %
R&D expenditure, calculated according to the
Frascati method (EUR) EUR 34.8mn EUR 31.6mn EUR 34.8mn
Sustainable innovations
Specialities share based on fiber revenueh 76.2 % 72.3 % 70.9 %
Specific sulfur emissions to air (kg/t, 2014 = 100 %) 61 % 74 % 67 %
Specific water intake
(index in percentage based on m3/t, 2014 = 100 %) 96 % 90 % 94 %
Specific water emissions after wastewater treatment COD
(index in percentage based on kg/t, 2014 = 100 %) 100 % 92 % 90 %
Specifici primary energy consumption (GJ/t, 2014 = 100 %) 97 % 97 % 98 %
Decarbonization
Specifici GHG emissions index scope 1, 2 & 3j (index in
percentage based on t CO2 eq./t, 2017 = 100 %) 85 % 91 % 82 %
Employees Number of employeesk 7,358 7,958 8,301
Health & safety Rate of recordable work-related injuries (TRIFR)k 0.92 0.76 0.6
Partnering for systemic
change Proportion of relevant suppliers with EcoVadis rating (%) 84 % 91 % 83 %
a) Value creation within the Lenzing Group is calculated as the company’s business performance minus the cost of materials, other expenses, depreciation and amortization. The
distribution of value creation shows the extent to which it is distributed among stakeholders such as employees, the public sector, and lenders.
b) Reclassification of capitalized borrowing costs, net interest from defined benefit plans and commitment fees from EBIT/EBITDA to the financial result (see note 2 of the
Lenzing Group consolidated financial statements 2022).
c) Personnel expenses less municipal taxes.
d) Based on the proposed distribution of profits.
e) Income tax expenses plus asset taxes and similar taxes plus municipal taxes.
f) Financing costs less net foreign currency gain/losses from financial liabilities.
g) The above mentioned financial indicators are derived primarily from the IFRS consolidated financial statements of the Lenzing Group. Additional details are provided in the
section “Notes on the financial performance indicators of the Lenzing Group”, in the glossary to the Annual Report and in the consolidated financial statements of the Lenzing
Group.
h) Lenzing’s specialty fibers are net-benefit products that offer positive impacts and benefits to society, the environment, and value chain partners.
i) Specific indicators are reported per unit of production by the Lenzing Group (i.e. pulp and fiber production volumes).
j) Recalculation of scope 3 emissions from 2017 to 2021 based on updated data from market pulp suppliers. 2022 exclusion of scope 1, 2 & 3 CO2 numbers for Thailand and Brazil
as these plants are in the start-up phase.
k) Employees (incl. apprentices, excluding supervised workers) in Austria, the Czech Republic, United Kingdom, USA, China, Indonesia, India, Taiwan, Thailand, Türkiye, Korea,
Singapore, and Brazil.
4
Highlights of the year
–
Strategic milestones
–
Achievements
• Pulp mill in Indianópolis (Brazil) is the largest of its kind. Due to • Lenzing joined the UN Global Compact sustainability initiative
the plant’s excess bioenergy, it provides electricity to Brazilian • Lenzing joined the Together for Sustainability (TfS) industry initia-
grid, thus replacing gas based energy and grid electricity tive to create more transparent global supply chains and actively
• Achievement of half a billion products on the market branded raise environmental and social standards
with TENCEL™, LENZING™, ECOVERO™, and VEOCEL™, hit- • Publication of Lenzing´s Climate Transition Plan
–
ting the 2022 full-year target
• Long-term supply contract with Swedish textile-to-textile recy-
cling company Renewcell for 100 percent recycled textile dis- Ratings and awards
solving pulp
• CDP: Lenzing is one of only 12 companies worldwide to be rec-
• Milestone of LENZING™ ECOVERO™ viscose fibers production ognized with an outstanding triple “A” for environmental leader-
of over 300,000 tonnes accomplished, with capacity increasing ship and disclosure in climate change, water security and forests
further to meet growing demand
• MSCI ESG: “AA” rating achieved again
• Largest ground-mounted photovoltaic plant in Upper Austria
• Canopy: ranked 1st place in the Hot Button Ranking, earning a
started operation
dark green shirt
• Production site in Nanjing (China) partly uses electricity derived
• EcoVadis: Platinum status for the second time in succession
from 100 percent renewable resources, starting in Decem-
ber 2022 and continuing in 2023 (100 percent in 2023), thus re- • VEOCEL™ was awarded the “2021 Outstanding Contribution for
ducing CO2 emissions by 100,000 tonnes per year based on pro- Sustainability” award at the Sustainable Development China Fo-
duction capacity rum (awarded in 2022)
• Purwakarta (Indonesia) site has used electricity generated 100 • OEGUT Environmental Award: Lenzing recognized as a cham-
percent from renewable sources since July 2022, which will re- pion of the circular economy by OEGUT in the “World without
duce its carbon emissions by 75,000 tonnes annually waste” category for textile recycling activities
• Lenzing partners with Circular and Sustainable Textile and Cloth- • TENCEL™ Modal fiber with Indigo Color technology won the
ing (CISUTAC) to further develop recycling processes for cellu- ITMF (International Textile Manufacturers Federation) award for
lose fibers Sustainability and Innovation at the ITMF Annual Conference
• Launch of matte TENCEL™ branded lyocell fibers for denim ap- • Lenzing and LD Celulose won second place at the Financial
plications Times/International Finance Corporation (IFC) Transformational
Business Awards for the climate-smart investment project in Bra-
• Fusion of LENZING™ Web Technology with a pulp wetlaid pro-
zil
cess for new low carbon emission products
• Lenzing received the “Austrian Sustainability Reporting Award”
• Sign-off of a 5.5MW peak photovoltaic power purchase agree-
(ASRA) for the best sustainability report in 2022
ment with Energie Steiermark and Enery. The PV plant will be
built in Styria (Austria) and supply electricity to Lenzing ( Austria) • Lenzing received the “Pioneer of Climate Stewardship in The Chi-
from Q4 2023 onward nese Textile and Apparel Industry“ award from CNTAC
• World’s largest lyocell fiber production plant opened in Prachin- • Presented with an ISPO award 2022 for the 100 percent
buri (Thailand) TENCEL™ Lyocell solution for seamless functional wear
5
About this report
[GRI 2-1, 2-2, 2-3, 2-4]
This report is the combined, consolidated, non-financial report for the Lenzing Group 1
(in accordance with Section 267a of the Austrian Business Code (UGB)) and for Lenzing Aktiengesell-
schaft (in accordance with Section to 243b UGB).
Since Lenzing operates at a global level with Group-wide ap- EBIT/EBITDA to the financial result (see note 2 to the 2022 of
proaches in various operating areas, all descriptions of manage- Lenzing Group consolidated financial statements), there have been
ment approaches and concepts concerning the material topics changes in the table of key figures (table 01) for 2020.
identified apply to both the Lenzing Group and Lenzing Aktieng-
esellschaft. For indicators for which meaningful figures can be pro- A recalculation of scope 3 emissions from 2017 to 2021 was nec-
vided, separate data for Lenzing Aktiengesellschaft can be found in essary due to updated market pulp supplier data (tables 01 and 12).
the annex (in accordance with the legal requirements stipulated by Due to subsequent corrections of the wastewater volumes at the
the Austrian Sustainability and Diversity Improvement Act Lenzing sites, there has been a reduction in water consumption of
(NaDiVeG 2) and the AFRAC recommendation. Information on the EU about 19 percent in the figures for 2020 (table 26).
taxonomy can be found in the “Managing Sustainability” chapter.
The materiality analysis of the Lenzing Group was revised in 2021.
The description of non-financial risks has been integrated into the This resulted in changes to the material topics. Detailed information
2022 Annual Report, while compliance is covered in the “Business can be found under “Materiality Analysis” and in the “Materiality
ethics” chapter. Additional information concerning certain topics is Analysis” focus paper.
provided on the Lenzing Group website. References can be found
under the appropriate headings. This report has been prepared in accordance with the Global Re-
porting Initiative (GRI) standards for the period 01.01.2022–
This report covers all the fully consolidated legal entities of the 31.12.2022. A detailed GRI content index can be found on the web-
Lenzing Group. Detailed information can be found in the Lenzing site. In accordance with the legal requirements, the reporting cycle
Group’s Annual Report (note 3 and note 43). for Lenzing’s sustainability performance is annual.
The contents of this report reflect the topics that are relevant and As a pioneer, Lenzing AG already implemented core elements of
material to sustainable development at the Lenzing Group. The the new European Sustainability Reporting Standards (ESRS) into
management approaches for each material topic can be found in the Sustainability Report of 2022. The ESRS is the new EU frame-
the relevant sections. The information on human resources applies work for sustainability reporting and is a key element of the EU’s
to the Lenzing Group, including the two new plants in Thailand and new Corporate Sustainability Reporting Directive (CSRD). It will be
Brazil. Specific environmental indicators have been calculated us- mandatory for Lenzing from 2024 onwards. The aim is to report
ing data from all the production sites of the Lenzing Group except environmental, social, and governance information in a standard-
the new plants in Thailand and Brazil. They account for 100 percent ized and consistent format. Lenzing is continuously working on
of the company’s worldwide production volume. The new sites in optimizing the inclusion of ESRS in the report.
Brazil and Thailand are fully consolidated, but not all the environ-
mental data is available yet for these sites. Relevant data was in- Contact
cluded where available. 2014 was chosen as the base year for the Krishna Manda
data presented because Lenzing’s first GRI report, including the VP Corporate Sustainability
Lenzing Group sustainability targets was issued in 2017, with data Lenzing Aktiengesellschaft
covering 2016, 2015 and 2014. For the CO2 figures, the baseline is 4860 Lenzing
2017, as the corresponding target was developed in 2018/2019. Austria
This report mainly covers data from 2022. Wherever possible, it Phone: +43 7672 701-0
also presents a series of data over three years (2020, 2021 and E-mail: sustainability@lenzing.com
2022) 3 to show progress and to make the information transparent,
relevant, and comparable. All focus papers mentioned in this report can be found here:
https://www.lenzing.com/investors/publications
Restatements
Due to the reclassification of capitalized borrowing costs, net in-
terest from defined benefit plans and commitment fees from
1 “The Group” (for better readability occasionally referred to as “Lenzing”) comprises Lenzing Aktiengesellschaft and its subsidiaries
2 Nachhaltigkeits- und Diversitätsverbesserungsgesetz (Section 243b, Section 267a UGB)
3 The financial year of the Lenzing Group is the calendar year (January 1 to December 31)
6
Letter from the CEO
[GRI 2-22]
Dear reader,
We look back on an exceptional year in this report. 2022 was a year of the organization with a view to identifying where we can im-
full of contrasts: on the one hand, it was characterized by unspeak- prove. We want to be ready to benefit from the future market re-
able humanitarian suffering and economic turmoil owing to the covery as quickly as possible. This crisis is likely to be with us for
Russian invasion of Ukraine. The consequences have since been longer than that which materialized at the start of the COVID-19
felt in all parts of the world, with Lenzing and manufacturing indus- pandemic. Nevertheless, we can look forward with great confi-
try as a whole hit by the adverse impact. Conversely, it was a year dence, as the need for sustainable innovations in the world is undi-
of outstanding successes that are undoubtedly a source of pride to minished, while the demand for environmentally friendly fibers for
me as Lenzing’s Chief Executive Officer. the textile and nonwoven industries will continue to grow.
Let me start by looking at our business performance: the rise in It is our mission to change the world for the better. This is what
energy and commodity costs from the first quarter of the year on- really sets us apart from other companies and gives a sense of pur-
wards and the collapse in demand during the third quarter had a pose to what we do. “Advance our world with better choices” –
significantly negative impact on Lenzing’s earnings in the 2022 fi- this is the bold purpose statement we developed in collaboration
nancial year. Revenues climbed by 16.9 percent year-on-year to with our employees in 2022.
EUR 2.57 billion, which was solely due to the rise in fiber prices,
while EBITDA was down by 33.4 percent to EUR 241.9 million. We have also continued to develop our strategy and will keep fo-
cusing on leveraging our specialties to drive profitable growth once
Lenzing’s Managing Board reacted swiftly to this trend in earnings, we have successfully implemented our capital spending projects in
launching a reorganization and cost-cutting program that had al- Thailand and Brazil. We will keep pressing ahead with the issue of
ready made initial contributions to profits by the end of 2022. Once recycling, thus making a valuable contribution to transforming the
the program has been implemented in full, it will reduce the cost textile and clothing industry from a linear to a circular economy
base by EUR 70 million on an annualized basis. model. We remain a sustainability champion – recent top marks
from CDP, EcoVadis, MSCI and other respected environmental or-
However, we will be doing more than just making structural ganizations and rating agencies are evidence of this – and we have
changes to our cost base. Our aim is to keep developing in the spirit every intention of becoming a circular economy champion too.
of continuous improvement and to emerge stronger from this crisis.
This means we are taking a critical look at our processes in all parts Alongside the operating targets, we have also set ourselves ambi-
tious financial goals: we aim to increase our EBITDA – with an
7
ROCE of over 12 percent and assuming a normal economic envi- The topic of energy has seldom been as pressing as it has been this
ronment – to EUR 1 billion by 2027. We will leave no stone un- year and, like many industrial companies, we have been forced to
turned in working towards this lofty target over the coming years. accelerate the process of reducing our dependence on external
energy supplies, especially at our European plants. Against this
A crucial part of our Lenzing Purpose and our Better Growth cor- backdrop, we are particularly pleased to have commissioned the
porate strategy is that we will not be satisfied with reducing nega- largest photovoltaic system in Upper Austria at our headquarters in
tive impacts. Instead, we aim to create even more positive benefits Lenzing in 2022.
by, for example, working to further enhance diversity and gender
equality within the company, as well as biodiversity. We have also I would also like to take this opportunity to offer our heartfelt thanks
made further progress on our climate targets by migrating two to you – our investors, customers and partners – on behalf of the
more plants to a renewable electricity supply. Introducing sustain- Lenzing Managing Board. I am conscious of the fact that turbulent
ability clauses to contracts with suppliers marks another logical times such as these invariably present new and unexpected chal-
step in underpinning our role as a pioneer. lenges. This makes your trust in our strategy and our sustainable,
innovative products all the more valuable.
At this point, I would like to highlight the successful investment
projects that we have implemented or significantly moved forward We have continued to improve our multiple award-winning report-
this year, starting with the launch of the world's largest lyocell plant ing to suit our readers and have optimized the digital solutions on
in Thailand. Thanks to this new and ultra-modern plant, we are bet- offer. This report offers a detailed insight into the company’s cur-
ter placed to meet the growing demand for environmentally- rent situation, as well as its activities and achievements in the field
friendly TENCEL™ and VEOCEL™ branded lyocell fibers. In future, of sustainable development. In all of these aspects, we have shone
we will be able to provide the pulp required for the production of a spotlight on the people who, thanks to their commitment, made
these fibers from our facility in Brazil, which we also successfully a positive contribution to Lenzing’s success in 2022 and are driving
commissioned this year. Despite numerous challenges, both pro- the necessary transition from a linear to a circular economy model
jects were realized on schedule and within budget, and we are also in the textile and nonwoven industries.
well on target in terms of the quantities sold. These are achieve-
ments we at Lenzing can be rightly proud of. Let me stress once again that we have adopted the right strategy
in these turbulent times. I firmly believe that, thanks to Lenzing, we
We are also continuing to invest in our existing production plants are ideally positioned to meet the growing global demand for sus-
so that we can tailor our product mix to our customers’ needs and tainable solutions that are fit for the future. We will certainly con-
constantly improve our environmental footprint. In China, following tinue to develop as a champion of circularity and play a pioneering
the imminent conversion of a production line, we are now able to role in this field.
offer locally produced TENCEL™ Modal fibers to our customers
for the first time. In Indonesia, we have made substantial progress In summary, I hope you enjoy reading our financial and non-finan-
in refitting existing production capacities, which will allow us to of- cial reports and that they provide you with a lot of new food for
fer significantly better LENZING™ ECOVERO™ branded viscose thought.
fibers in future.
All investment projects are also helping us to meet our climate tar-
gets. We plan to halve our carbon emissions by 2030 and achieve Yours sincerely,
carbon-neutral production by 2050. Both targets were recognized
by the Science Based Targets Initiative in 2019. As a result, we re- Stephan Sielaff
main the only provider of wood-based cellulose fibers on the mar-
ket. We are already in a position to operate both plants in Thailand
and Brazil on a carbon-neutral basis. In Brazil, we can even feed a
considerable portion of surplus energy into the public grid.
8
Impact of the war against Ukraine on the Lenzing Group
In addition to unspeakable humanitarian suffering, the war against One-third will be realized from reductions in working hours and the
Ukraine has led to severe economic turmoil, which has since had implementation of flexible working time models, one-third from
an impact on all regions of the world and has also had an adverse not filling positions that become vacant due to retirement and nat-
effect on the Lenzing Group as well as manufacturing industry as a ural fluctuations, and one-third from job cuts.
whole. The European energy crisis and high inflation in large parts
of the world as a result of the Russian invasion of Ukraine had a The social plan was negotiated with the Works Council in a highly
significantly negative impact on global economic events during the constructive spirit and agreed as soon as possible. The Managing
year under review. Consumer confidence, initially in Europe and Board and the Works Council of Lenzing AG consider it part of their
the USA, and subsequently also in China, fell to long-term lows and responsibility to make provision for cases where job losses cannot
has since been slow to recover. be avoided. The social plan assures those affected that negative
consequences will be cushioned in the best possible way.
The International Monetary Fund (IMF) revised down its growth
forecasts several times in the course of the year. According to the Structurally, Lenzing continues to anticipate increasing demand for
latest calculations, global growth is expected to be 3.4 percent in environmentally friendly fibers for the textile and clothing industry
2022. For 2023, the IMF assumes growth of 2.9 percent due to the as well as the hygiene and medical sectors. Lenzing is therefore
ongoing multiple crises. very well positioned with its Better Growth strategy, and will con-
tinue to drive both specialty growth and its sustainability goals, in-
Sentiment in the textile and nonwovens industry deteriorated from cluding the transformation from a linear to a circular economy
August of the previous year onward, and satisfaction with the busi- model.
ness situation steadily dropped to new historic lows. More recently,
the outlook brightened again, although market players remained The war against Ukraine and its economic impact also affected the
concerned about subdued demand. achievement of the Lenzing Group's ambitious climate targets.
CO2 emissions of the Lenzing Group decreased significantly com-
Like the manufacturing industry as a whole, the Lenzing Group was pared to the previous year. However, this came about due to lower
increasingly affected by the extreme developments on the global production volumes as a result of the deterioration in the market
energy and raw material markets in 2022. The market environment situation and the planned measures taken to reduce CO2 emissions.
deteriorated significantly, particularly in the course of the third
quarter, and the deteriorating consumer climate put additional The war against Ukraine increased public awareness of the need
pressure on Lenzing's business performance. for an energy supply that is independent of fossil fuels. In order to
make itself less dependent on global energy markets, Lenzing is
In addition to the decline in demand, the trend in earnings reflects increasingly reliant on electricity generation from renewable ener-
the increase in energy and raw material costs in particular. Against gies, especially at its Austrian sites, thus accelerating the decar-
the back of these developments and the significant deterioration in bonization path it embarked on some considerable time ago in line
the market environment, the Lenzing Managing Board established with its strategic targets.
a reorganization and cost reduction program. The program is al-
ready being implemented and is expected to save at least In line with our social responsibility, employee benefits remained
EUR 70 million in annualized costs after full implementation. unaffected by market developments. No changes in this context
are expected in 2023 either.
The savings will largely come from the reorganization and reduc-
tion in material costs, but personnel measures will also have to con-
tribute to the target and will result in savings across three areas.
9
10 Sustainability
SustainabilityReport 2022Lenzing
Report2022 LenzingGroup
Group
Lenzing Group: a brief portrait
Based in Austria, the Lenzing Group (Lenzing Aktiengesellschaft and its subsidiaries)
is one of the world’s leading producers of dissolving wood pulp, and cellulosic fibers,
with production sites in major markets and a global network of sales and marketing offices.
Lenzing Group Table 02
2020 2021 2022
Employees a
7,358 7,958 8,301
Revenue EUR 1,635.6mn EUR 2,194.6mn EUR 2,565.7mn
EBITDA EUR 192.3mn EUR 362.9 mnb EUR 241.9mn
Total assets EUR 4,163.0mn EUR 5,322.8mn EUR 5,525.0mn
Equity EUR 1,881.4mn EUR 2,072.1mn EUR 2,025.9mn
Liabilities EUR 2,281.6mn EUR 3,250.7mn EUR 3,499.1mn
Total number of operations 18 18 19
thereof production sites 9c 9c 9
Sales and marketing offices 9 9 10
Sales volume fibers 787,000 t 909,000 t 814,430 t
a) Employees (incl. apprentices, excluding supervised workers) in Austria, the Czech Republic, United Kingdom, USA, China, Indonesia, India, Taiwan, Thailand, Türkiye, Korea,
Singapore, and Brazil.
b) Reclassification of capitalized borrowing costs, net interest from defined benefit plans and commitment fees from EBIT/EBITDA to the financial result (see note 2 of the Group
consolidated financial statements 2022).
c) Including construction sites in Brazil and Thailand
For more information on detailed financial figures, please see the

Annual Report.
Nature of ownership
[GRI 2-1]
Lenzing Aktiengesellschaft is a publicly traded company. Its shares

are listed on the Vienna Stock Exchange. In 2022, its ownership
structure was as follows:
The Austrian B&C Group was the majority shareholder of

Lenzing AG with an investment of ca. 52.25 percent plus two
shares as of December 31, 2022. The Goldman Sachs Group, Inc.
held approximately 6.97 percent of Lenzing shares. The free float
equaled approximately 41.0 percent on the reporting date and was
distributed among Austrian and international investors. The
Lenzing Group did not hold any treasury shares as of December 31,
2022.

10
Value creation at the Lenzing Group
[GRI 2-6]
The Lenzing Group is committed to the ecologically responsible production

of fibers made from the renewable raw material of wood grown in sustainably
managed forests and plantations. As an innovation leader, Lenzing partners
with global textile and nonwoven manufacturers and drives many new
technological developments.
Value chain Figure 01 Lenzing’s product portfolio ranges from dissolving wood pulp as
the basic raw material to generic fibers and innovative specialty fi-
bers as well as energy, biobased biorefinery products, and co-
products. Lenzing’s own pulp production at its sites in Lenzing
External pulp (Austria), Paskov (Czech Republic) and Indianópolis (Brazil) is based
suppliers
on a biorefinery concept, completely utilizing the raw material
wood.
Energy & chemicals
from suppliers The Lenzing Group combines comprehensive expertise in operat-
ing pulp and biorefinery processes with decades of experience in
three major fiber process technologies:
Biorefinery for
pulp production • Viscose (rayon)
• Modal
Wood sourcing Fiber production • Lyocell
Sustainably managed Lyocell-, Viscose &
forests & plantations Modal
Further developments and technologies have resulted from the
above-mentioned processes. For more information, please see the
Biobased materials
and co-products “Net-benefit concept” section or the Lenzing website.
End of life Manufacturing

Compostability/ steps The Lenzing Group’s high-quality fibers form the basis for a variety
biodegradabilitya Textiles | of nonwoven and textile applications ranging from elegant clothing
Recycling Value chain: and versatile denims to high-performance sports apparel, luxurious
Incineration Spinning, knitting, bed linen, and sustainable footwear. Due to their consistently high
Consumer Brands/ weaving, dyeing,
use retailers finishing, quality Lenzing fibers are also highly suitable for hygiene and per-
garment making sonal care products as well as technical applications.
Nonwovens |
The Lenzing Group’s business model goes far beyond that of a tra-
Value chain:
Roll-good pro- ditional fiber producer. Together with its customers and partners,
ducer, converter Lenzing develops innovative products across the value chain, cre-
ating added value for consumers. The Lenzing Group strives to
a) Applies to TÜV certified biodegradable and compostable LENZING™ fibers. achieve the efficient utilization and processing of all raw materials
The compostability and biodegradability of final consumer textile and nonwo-
ven products depend on the material composition (fiber blend) and processing and offers solutions to help redirect the textile sector towards a
in the value chain steps. closed-loop economy. In order to reduce the speed of global
warming and to accomplish the targets of the Paris Climate Agree-
ment and the “Green Deal” of the EU Commission, Lenzing has a
clear vision: to make a net-zero future come true.
Lenzing is at the start of a long value chain in the textile and

nonwovens industry that comprises several processing steps. The
Lenzing Group’s business model is based on intense collaboration
and innovation support across all stages of this value chain. As a
raw material producer, the company is exposed to largely the same
risks and opportunities as the value chain as whole.
11
12 Sustainability
Group
Supply and sourcing Down-stream manufacturing
The principal raw materials for producing Lenzing’s fibers are wood As shown in figure 01 under “Manufacturing steps”, the customers
and process chemicals. The company uses dissolving wood pulp in Lenzing’s downstream value chain use the fibers to manufacture
from its own production operations and from external suppliers. textile, nonwoven, or industrial products.
Dissolving wood pulp and cellulosic fiber production Lenzing works closely with value chain partners from direct cus-
Production takes place in two stages: first, the production of dis- tomers to the retail level in the textile and nonwovens sector and
solving wood pulp and second, the production of fibers based on for industrial applications - to provide expertise in processing as
dissolving wood pulp. Lenzing’s own dissolving wood pulp is pro- well as in developing innovative applications.
duced in three biorefineries at sites in Lenzing (Austria), Paskov
(Czech Republic) and Indianópolis (Brazil). Lenzing aims to use Distribution and use phase
state-of-the-art sustainable production technology. Finished products are distributed after manufacturing and enter
the consumer use phase.
This entails high resource efficiency, high chemical recovery rates
and, where possible, closed loops for process chemicals and water. End of life
TÜV certified biodegradable and compostable LENZING™ fibers
Bioenergy and biorefinery products are generated as well. Lenzing are as the name suggests compostable and biodegradable. How-
combines its comprehensive expertise in pulp and biorefinery ever, the compostability and biodegradability of final consumer
technologies with decades of experience in cellulosic fiber pro- textile and nonwoven products depend on the material composi-
duction. tion (e.g. fiber blend) of the product and processing in the value
chain.
12
13 Sustainability
Group
The locations of the Lenzing Group
[GRI 2-1, 304-1, 413-2]
Locations Figure 02
Numbers = Nominal capacities as at December 31, 2022
Heiligenkreuz Nanjing
Paskov
Austria China
Czech Republic
2 3
1
90,000 t p.a. 178,000 t p.a.
285,000 t* p.a.
Grimsby Istanbul Seoul

United Kingdom Türkiye Korea
2
45,000 t p.a.
New York Lenzing Hongkong Shanghai

Mobile USA Austria China China
USA
1 320,000 t* p.a.
2
2 74,000 t p.a.
51,000 t p.a. Coimbatore Taipeh
3 India
284,000 t p.a. Taiwan
4
Indianópolis Purwakarta
Prachinburi
Brazil Indonesia
Thailand
1 500,000 t p.a. 3
2
100,000 t p.a. 323,000 t p.a.
Jakarta
Global Headquarter
Singapore
Indonesia
Singapore
Sales and marketing office
Production site
1 Dissolving wood pulp
2 Lyocell fiber
3 Viscose fiber
4 Modal fiber
* Airdry
13
14 Sustainability
Group
CHAPTER
2 /4
Managing
sustainability
2022
Table of content
Governance structure for sustainability 15
Risk management 17
Compliance 17
Double Materiality analysis 18
“Naturally positive” sustainability strategy 20
Taxonomy 25
Partnering for systemic change 28

Governance structure for sustainability
[GRI 2-9, 2-10, 2-11, 2-12, 2-13, 2-14, 2-15, 2-18, 2-19, 2-20] Board remuneration linked to sustainability performance
The principles of the Remuneration Policy were revised in the 2021
Corporate Sustainability reports directly to the Managing Board. In
financial year and the Annual General Meeting in 2022 approved
addition, an internal committee (ESG Committee) has been estab-
the new Remuneration Policy. The Remuneration Policy of
lished to accelerate the sustainability agenda in the company, with
Lenzing AG for the performance-based remuneration of the Man-
meeting held on a quarterly basis. Regular alignments on various
aging Board is linked to both financial performance and non-finan-
topics take place with different functions to drive the integration of
cial sustainability criteria (ESG), which further promote the sustain-
social and environmental concerns into the company’s business
able business strategy. Therefore, in addition to the existing criteria,
operations. General information on corporate Governance can be
the long-term incentive (LTI), which is a variable performance bo-
found in the Lenzing Group’s Annual Report 2022 (Corporate Gov-
nus, has been expanded to include sustainability targets for Man-
ernance Report.)
aging Board members.
Sustainability organization Figure 03
Supervisory Board
Update by the Managing Board at least quarterly,
when needed monthly
Managing Board
Quarterly ESG Committee* meetings
Alignment on a monthly basis
Corporate Sustainability
Continuous At least monthly At least semi-annual

alignment alignment alignment
Corporate Communications Global Textile Business Global Legal, IP & Compliance
Global QESH Global Nonwoven Business Global Sales, Inventory &
Operations Planning
Wood Purchasing Global BU Noble Fibers
Risk Management
Pulp Division Technical Customer Service
Corporate Accounting & Tax
Global Product Safety Application Development
Corporate Human Resources Research & Development
Business Management Textile Fibers Global Marketing & Branding
Business Management Nonwoven Capital Markets
Fibers
Corporate Controlling
Business Management Nobel Fibers
Human Resources
Procurement
Risk Management
Strategy & M&A
Regulatory Affairs
* ESG Committee is an internal committee to accelerate sustainability agenda. Members are Managing Board, Global Strategy and M&A, Corporate
Sustainability, Global Wood & Pulp, Corporate Audit & Risk, Capital Markets, Global QESH, Corporate HR, Corporate Controlling, Global Procurement,
Global Textile Business, Global Nonwoven Business, Corporate Communications, Research & Development

15
ESG Committee of the Managing Board and heads of different functions, who re-
view the progress of the sustainability targets, evaluate the effec-
[GRI 2-17] tiveness of Lenzing’s approach to managing all aspects of sustain-
ability, including risks and opportunities, and make long-term stra-
Sustainability is a value, business and innovation driver in the
tegic decisions. The corporate sustainability department is an inte-
Lenzing Group. The company is increasingly leveraging its sus-
gral part of the committee and works closely with several functions
tainability work by positioning itself using net benefit products (e.g.
to ensure the integration of sustainability aspects in various busi-
ECOVERO™), key ratings (for investors) and benchmarking tools at
ness processes and to respond to stakeholder needs and expecta-
the wider industry level. To support these efforts, an ESG commit-
tions and prepares organization to be future-fit.
tee has been installed to accelerate the sustainability agenda im-
plementation by aligning across functions. The key objectives are
to formulate and execute the company’s sustainability vision, strat-
egy and ESG benchmarks and tools. The ESG committee consists
ESG Committee structure Figure 04
Steering Committee
CCO Managing Board
VP Corporate Sustainability
VP Capital Markets
VP Strategy
VP Human Resources
VP Corporate
Sustainability VP Textiles
VP Nonwovens
VP Legal Management
VP Corporate Communications
& Public Affairs
Capital Risk Operations Procure- Business Communi- Finance/ Human

Markets ment management cation Controlling Resources
& Branding & Public
Affairs
ESG Ratings TCFD/ Climate Wood & Premium EU EU Social

Sustainability change pulp product regulations Taxonomy certification/
risks suppliers concepts Higg FSLM
Environment Sustainability
(e.g. Carbon
/Higg FEM Chemicals reporting Inclusion
Zero)
suppliers and diversity
Safety
Customer
EU Supply
engagement
Chain Due
Diligence
For information on the Lenzing Group’s governance structure, please refer to the Lenzing Group’s Annual Report 2022 (Corporate Governance Report).

16
Risk management
[GRI 2-25]
Dissolving wood pulp and fiber production require

chemical and technical processes that pose potential risks…
… to people, including internal staff, visitors, neighboring commu- value chain and other stakeholders. Any potential impacts could
nities, and parties dealing with Lenzing’s products along the value affect the success of the Lenzing Group and its reputation. For
chain as well as to the environment. Risk management also in- more information, please see the Risk Report in the Lenzing
cludes risks arising from environmental, social and governance Group’s Annual Report 2022.
(ESG) topics for the company’s operations, partners of the entire
Compliance
Compliance goes beyond simply adhering to legal requirements. Lenzing ensures that any reported cases of suspected non-com-
pliance are investigated thoroughly and does not tolerate any form
Lenzing strives to achieve exemplary quality in products and proof compliance breaches if any are discovered.
cesses, as well as integrity and honesty whenever dealing with
business partners and shareholders. Compliance at the Lenzing For a detailed description of compliance management at Lenzing,
Group does not just stand for compliance with legal regulations please refer to the “Business ethics” chapter.
and regulatory standards. Compliance for Lenzing is a question of
attitude that also reflects a culture of integrity when dealing with
one another. Consequently, compliance is seen as the active re-
sponsibility of all employees and executives, as well as being a
shared value which is firmly anchored across the entire Lenzing
Group. Compliance is an integral part of management meetings.

17
Double materiality analysis
[GRI 3-1, 3-2]
Materiality analysis Figure 05
Phase Phase Phase
01 Research
02 Assessment 03 Material topics
Ranking
Create Sustainability impact

long list Internal survey of ecological and
social impacts & LCA* data
Develop Financial impact

consolidated list Internal survey
Materiality matrix
Describe Stakeholder interest

relevant topics Internal & external online survey
* LCA = Life cycle assessment
Lenzing presented its “Naturally Positive” sustainability strategy in The second phase was to prioritize the potential material topics
2017. In the run-up to this, it performed a comprehensive material- with the help of external and internal stakeholders. For this purpose,
ity analysis for the first time in 2015. This materiality analysis was a stakeholder survey and an impact analysis were carried out in or-
updated and expanded in 2021. For the first time, a so-called dou- der to be able to compile a topic ranking in the third phase of the
ble materiality analysis was carried out. This means that both the process. For each of these topics, a brief description of the impacts,
influence of the environment on the company and the influence of risks, opportunities, expectations and current situation was pre-
the company on the environment were examined and supple- pared and a questionnaire was created. This questionnaire was
mented by the financial consideration of these influences. sent worldwide to employees at different levels, the Supervisory
Board, investors, suppliers, customers, partners from the value
Lenzing is continuously engaging with stakeholders to understand chain, brands, insurance companies and the media. The feedback
the relevance and update the materiality analysis if required. In the received from stakeholders regarding the relevance of the different
reporting year, Lenzing had conversations with several stakehold- topics, have been considered in the final materiality matrix.
ers (e.g. Canopy) and no new topics were identified.
In addition, an impact analysis of these topics was carried out with
The new materiality matrix of the Lenzing Group was developed in 40 employees from various areas who are also involved in sustain-
three phases. The first phase was dedicated to defining the poten- ability reporting on ecological and social impacts. These experts
tial material topics. Around 300 internal and external topics and were selected from the areas of business management, risk man-
trends in the environmental, social and governance (ESG) domain agement, sustainability, finance, etc.
were identified for the present and future. This list of topics was
divided according to ESG criteria and then summarized, which In the last phase, the impact analyses and the stakeholder survey
yielded the 16 potential material topics (i.e. the short-list). results have been compiled to the final materiality matrix, which
allowed ranking the issues and thus defining the material issues for
the company.

18
Material aspects
Materiality analysis – allocation of topics Table 03
Ma t e r i a l a s p e c t s St r a t e gic fo cu s a r e a N a D iV e G E SR S SD G
Partnering for systemic change, E5 Resource use and circular
Circularity & resources Sustainable innovations Environmental matters economy 9, 11, 12, 17
Climate & energy Decarbonization Environmental matters E1 Climate change 7, 13, 17
Responsible wood sourcing Raw material security Environmental matters – 15
Biodiversity & ecosystems Raw material security Environmental matters E4 Biodiversity and ecosystems 15
E2 Pollution, E3 Water and
marine ressources, S4
Sustainable innovation & products Sustainable innovations Environmental matters Consumers and end-users 9, 12, 17
Health & safety Empowering people Employee-related matters S1 Own workforce 3
Employee-related matters, S3 Affected communities, S1
Human rights & fair labor practices Empowering people Respect for human rights Own workforce 5, 8, 10
Business ethics Empowering people All non-financial matters G1 Business ethics 16
Digitalization & cyber security Sustainable innovations All non-financial matters – 9, 8, 16
Further sustainability aspects
Raw material security, Partnering for Environmental matters,

Supply chain sustainability systemic change Respect for human rights – 8, 12, 17
E3 Water and marine
Water stewardship Sustainable innovations Environmental matters ressources 6
Community wellbeing Enhancing community wellbeing Social matters S3 Affected communities 1, 3, 11
Diversity, inclusion & equal Employee-related matters,
opportunity Empowering people Respect for human rights S1 Own workforce 5, 10
Employee empowerment & Employee-related matters,
development Empowering people Respect for human rights S1 Own workforce 5, 10
For further information on the updated materiality analysis, please

see the “Materiality analysis” focus paper.
19
20 Sustainability
Group
„Naturally positive” sustainability strategy
Our defined sustainability mission and vision act as guide to making

better choices in everything we do – from the small decisions of
O U R S U S TA I N A B I L I T Y V I S I O N everyday business to strategic and long-term decisions.
Our passion is to provide truly sustainable solutions for a growing world.
We create a positive impact for the people we work with, the consum- “Naturally positive”, the Lenzing Group’s sustainability strategy,
ers we serve, and the society and environment in which we operate. In was created from the results of the materiality analysis and is firmly
doing so, we are commercially successful.
rooted in the Lenzing Group’s new Better Growth strategy which
was developed in the reporting year. Within the four strategic driv-
ers (sustainability, innovation, premiumisation and excellence), the
corporate strategy defines the sustainability areas in which Lenzing
can do most to create a more sustainable world. At the same time,
O U R S U S TA I N A B I L I T Y M I S S IO N
this approach enables Lenzing to adequately consider and contrib-
We are change agents and collaborate with our suppliers and value ute to those United Nations’ Sustainable Development Goals
chain partners to catalyze change for the better. We actively contribute
(SDGs) on which the company's activities have the greatest impact.
towards improving environmental performance throughout the value
chain and, consequently, in final products. We promote social wellbeing.
Creation of more positive impacts and benefits is the guiding light for
our innovation and business practices.
Strategic focus areas of sustainability and the corresponding SDGs Figure 06
Raw material
security
De
r hip z
s
ca tion
wa te
ste Wa
rb
a
rd
on
i-
Greening the
value chain
ring for
innovatioble
Sustaina
Pa systemic
nge
cha
Driving Advancing
rtne
systemic circularity
change
ns
E
co n h a in
g
n
wem m u cin g w er
o
llb n i t y E m p o ple
ei n
g pe

20
close loops wherever possible. This vision is based on Lenzing’s
Three strategic principles determination to create value using as few virgin resources as pos-
sible and reduce the use of fossil carbon in the company and the
Lenzing’s sustainability strategy builds on three strategic principles. value chain while improving sustainability performance.
Within those principles, seven focus areas were identified in which
the Lenzing Group substantially contributes to creating positive im- The company unites the cellulosic fiber cycle of its wood-based
pacts and benefits. products (biological cycle) with its innovative technologies that fo-
cus on closing loops in the production and recovery of raw mate-
1. Driving systemic change rials and chemicals (technical cycle).
Complex global challenges call for a collaborative approach to de-
signing systemic solutions that involve many stakeholder groups. Dedicated targets for the development of recycled content-based
As a leader in wood-based cellulosic fibers, Lenzing has a particu- fibers and circular business models with value chain partners con-
lar responsibility and an ambition to help raise the bar for sustaina- tribute to this principle.
bility in the textile and nonwovens industries. Transparency and
traceability are a prerequisite for fostering trust and building long- 3. Greening the value chain
term relationships. With its contributions to developing industry- Lenzing’s responsible practices and innovative products enable its
wide methods, tools, and approaches, Lenzing is helping the indus- customers and value chain partners to improve their environmental
try to progress on its sustainability roadmap by overcoming critical and social performance and achieve their sustainability targets and
challenges. Industry benchmarking tools such as ZDHC (Zero Dis- commitments. Responsible sourcing practices, water stewardship,
charge of Hazardous Chemicals) and FSLM (Facility Social Labor decarbonization, and sustainable innovations form the basis of
Module), concrete sustainability targets, supplier engagement, and Lenzing’s efforts in greening the value chain. The sustainability tar-
physical and digital traceability tools contribute to this change. gets for air emissions, water emissions, pollution, and climate pro-
tection are the cornerstones of Lenzing’s responsible entrepre-
2. Advancing circularity neurship and act as innovation drivers.
According to Lenzing’s circular economy vision, “We give waste a
new life. Every day”, Lenzing drives the industry towards a fully- For further information on Lenzing’s sustainability strategy, strate-
fledged circular economy by striving to give waste a new life in all gic principles, and focus areas, please see the “Sustainability strat-
aspects of its core business and by co-developing circular solutions egy” focus paper.
with potential partners in and outside the current value chain to
Sustainability policy
Lenzing aims to embody best sustainability practices, lifecycle and
long-term thinking, transparent and respectful collaboration and
partnerships with its stakeholders in all activities and business de-
cisions to meet society’s long-term goals. Lenzing’s approach is
creating more positive impacts and benefits thanks to its business
practices and products to make the world a better place. This co-
vers the three dimensions of PEOPLE, PLANET and PROFIT, bal-
ancing the needs of society, the environment and shareholders and
partners.
21
22 Sustainability
Group
Sustainability targets, measures and progress
[GRI 3-3] responsible company, Lenzing is committed to procuring wood

and dissolving wood pulp exclusively from sustainable forests and
Lenzing has set Group sustainability targets for the most important
plantations. Furthermore Lenzing strives to create positive impact
challenges in each of its strategic focus areas. To increase trans-
on biodiversity in different regions of the world through conserva-
parency, the corresponding implementation measures and target
tion projects. Another example is the conflicting targets of water
progress made during the reporting year are described below.
stewardship and climate, as the recycling of water is energy inten-
There could be potential conflicts that can arise between different
sive. To counteract this conflict Lenzing sets a water target in re-
material topics and their respective targets in a company. For ex-
gions where water is scarce. This means, the company takes a con-
ample, raw material security and biodiversity & ecosystems can be
text based approach to target setting so that we try to address and
competing as the sourcing of wood from critical (ancient and en-
prioritize most relevant topics for a specific region.
dangered) forests could lead to potential loss in biodiversity. As a
Color code status On track

Achieved
Delayed
New target
Sustainability targets, measures and progress Table 04
Target year SDG

Sustainable innovations
To improve the Lenzing Group’s specific sulfur emissions by 50 percent by 2023 (baseline
2023
Target 1 2014)a 12
Lenzing implements a sulfur recovery plant (CAP) upgrade at the Purwakarta plant
2023
Measure(s) (Indonesia)
The project is in the full construction phase. The current global situation, with the war against Ukraine,
a shortage of semiconductors and China lockdowns, is delaying several shipments from Europe and
Asia. This is having a major impact on the project completion schedule. Weather conditions in
Purwakarta, with heavy and frequent rainfall, are also impacting the construction activities. Based on
Progress made in 2022 the current situation, the start-up of the sulfur recovery plant is likely in the first half of 2023.
To offer viscose, modal and lyocell staple fibers with up to 50 percent post-consumer
2025
Target 2 recycled content on a commercial scale by 2025 9, 12, 17
All fibers with recycled content offered by Lenzing contain a share of post-consumer
2022
Measure(s) waste
Lenzing increases the recycled content from 30 to 40 percent for fibers produced with
2023
REFIBRA™f technology for textiles and with Eco Cycle technology for nonwovens
Lenzing introduces its viscose and modal fibers with REFIBRA™ and with Eco Cycle
2023
technology with a minimum of 30 percent recycled content
Lenzing and Södra collaboration will recycle 25,000 t of textile waste per year at Södra's
2025
Mörrum siteb
The joint efforts with Södra to develop a recycled pulp with a share of post-consumer waste on an
industrial scale were successfully continued. Significant progress was made towards the development of
a production line processing 25 kt of textile waste. Start-up of this plant is targeted for 2025. Overall,
Lenzing continued with product and process development towards reaching the key target for 2025.
The biggest challenges are adapting the recycled pulp for industrial fiber production and securing the
supply of good quality recycled pulp for cellulose fibers. These challenges also led to a delay of at
Progress made in 2022 least one year in the first measure for 2022.
To innovate a new circular business model by closing the loops for post-consumer
2025
Target 3 materials and partner with 25 key supply chain companies by 2025 9, 12, 17
The organizational structure was set up to create new business models.
There have been initial discussions and scouting of brands and supply chain partners to develop
collaborative pilot projects. Lenzing became a partner of the EU-funded CISUTAC (Circular and
Sustainable Textile and Clothing) project together with 27 other consortium members, aimed at removing
bottlenecks to enhance textile circularity in Europe. Additionally, Lenzing committed to joining the
Progress made in 2022 "Transform Waste into Feedstock" project within the EURATEX Rehubs Initiative led by Texaid.
To achieve 'aspirational' MMCF level for ZDHC wastewater and air emission guidelines at
2024
Target 4a Lenzing viscose facilities by 2024 6, 12
All Lenzing viscose sites - Lenzing (Austria), Nanjing (China), Purwakarta (Indonesia) - have continuously
reported to the ZDHC Gateway on time in 2022. While the site in Lenzing has achieved the
aspirational level as defined by the wastewater guideline, the sites in Nanjing and Purwakarta have
developed their own action plans for further improvement in the coming two years. The ZDHC MMCF
guideline was revised in 2022 and it has been extended to include lyocell fiber, among others. Lenzing
Progress made in 2022 will start to implement the guideline accordingly at all its fiber production sites in 2023.
22
23 Sustainability
Group
To achieve 'aspirational' MMCF level for ZDHC wastewater and responsible production
2028
Target 4b guidelines at Lenzing lyocell facilities by 2028 6, 12
First ZDHC Gateway reporting of MMCF waste water guideline v2 at all lyocell sites in c
2023
Measure(s) 2023
First supplier platform implementation and reporting of MMCF Guideline v2 - Responsible
2023
fiber production at all lyocell sitesc in 2023
Lenzing lyocell sitesc achieves 'aspirational' level for wastewater and responsible production 2025
Lenzing site in Grimsby (UK) achieves 'foundational' level for wastewater and responsible
2025
production
Lenzing site in Grimsby (UK) achieves 'aspirational' level for wastewater and responsible
2028
production
Water stewardship
To improve Lenzing Group’s specific wastewater emissions (COD) by 20 percent by 2024
2024
Target 5 (baseline 2014)a,b 6, 12
Measure(s) Lenzing implements a wastewater treatment plant upgrade at Purwakarta site (Indonesia) 2023
Lenzing implements a new wastewater treatment plant at Grimsby (UK) site 2024
The current global situation, with the war against Ukraine, a shortage of semiconductors and China
lockdowns, is delaying several shipments from Europe and Asia. This is having a major impact on the
project completion schedule. Weather conditions in Purwakarta with heavy and frequent rainfall, are also
impacting the construction activities. The start-up is planned for the first half of 2023. In Grimsby, the
Membrane Bio Reactor (MBR) route for the wastewater treatment plant was selected. The pilot plant,
proving trials and designs have been completed. It is on track for commissioning and operation in the
Progress made in 2022 second half of 2024.
Raw material security and biodiversity
To implement a conservation solution of 20 ha in Albania in combination with a social
2024
Target 6 impact project by 2024 1, 15
Measure(s) Lenzing reforests 20 ha of degraded land in Albania 2024
Lenzing establishes a training center for local communities in Albania 2024
Lenzing supports interdisciplinary vocational trainings and school partnerships in Albania Yearly
By the end of 2022, the first 12 ha have been reforested and more than 400 forest workers were
trained in sustainble forest management. Student enrollment in the Shkodra Forest School is increasing.
Tree seedlings are being grown with a survival rate of 85-90 percent in the new tree nursery for future
restoration projects.
Progress made in 2022
To implement conservation solutions on 15,000 ha at the new pulp site in Indianópolis
2030
Target 7 (Brazil) by 2030 15
Measure(s) Lenzing increases the protected area in Brazil from 13,000 ha to 15,000 ha 2030
Lenzing achieved this goal in 2022 and increased the total conservation area in Brazil even further than
Progress made in 2022 the target, to 17,000 ha.
To engage in further conservation, biodiversity protection, and restoration activities in
2025
Target 8 regions where forests are at risk or should be improved by 2025 15
Lenzing defined the guidelines to be taken into account for selecting (a) suitable project(s) based on
different stakeholder criteria.
Additionally, potential projects, partners and solutions performed by other players were identified. A
potential combination of projects to be executed was selected in the reporting year and final alignment
is planned for 2023.
Partnering for systemic change
To engage suppliers, covering more than 80 percent of spend, to improve sustainability
Continuous
Target 9 performance 12, 17
Lenzing assesses 95 percent of its top 200 suppliers (approx. 80 percent of spend) via
2025
Measure(s) EcoVadis, the Together for Sustainability Audit or an internal assessment/audit by 2025.
Lenzing considers climate, water and chemical aspects in the procurement contractual
Continuous
process of its top chemicals suppliers
Lenzing joined Together for Sustainability. The number of suppliers responding to the EcoVadis
questionnaire more than doubled to 387. Sustainability clauses were included in the first suppliers
contracts as part of the general conditions.
To improve transparency by implementing the Higg Facility Environmental Module (FEM
Achieved
Target 10 3.0) at all sites by 2019 12, 17
To implement and annually update FEM in all pulp and fiber production facilities and
2024
Target 11 share verified modules with customers from 2024d 12, 17
Lenzing conducts self-assessments in existing sites in 2022 and first external verification
2023
Measure(s) by 2023
Lenzing conducts self-assessments and trainings for new legal entities (Prachinburi
2024
(Thailand) and Indianópolis (Brazil)) in 2023 and first external verification by 2024
Internal targets as well as group and site level roadmaps have been developed. Lenzing determined the
expansion of FEM to new sites and adjusted the group roadmap accordingly. In 2022, Lenzing carried
out internal FEM assessment and external training to prepare for the first external verification of Higg
Progress made in 2022 FEM in 2023. Preparation for new sites in Thailand and Brazil will start next year.
To achieve digital fiber traceability by having 500 value chain partners with blockchain
Achieved
Target 12 technology by 2021 9, 12, 17
23
24 Sustainability
Group
To increase physical traceability from TENCEL™ x REFIBRA™ and LENZING™ ECOVERO™
Achieved
Target 13 to 100 percent of Lenzing’s textile special fibers by 2021 12
Decarbonization
To reduce scope 1, 2 & 3 (purchased goods and services, upstream and downstream
transport, and fuel and energy-related activities) greenhouse gas emissions by 50 percent 2030
Target 14 per ton of fiber and pulp sold by 2030 (baseline 2017) 7, 13
Measure(s) Lenzing reduces 40 percent of specific CO2 emissions per ton of product soldb,e 2024
Lenzing reduces 50 percent of specific CO2 emisions per ton of product producede 2027
Lenzing maintained its approach towards mitigating climate change by reducing its GHG
emissions compared to baseline 2017. Detailed information on achievements in 2022 is
Progress made in 2022 available in the “Climate & energy” chapter.
Target 15 To achieve net-zero CO2 emissions by 2050 (scope 1, 2 & 3) 2050 7, 13
Measure(s) Lenzing achieves 100 percent green electricity for four sites 2024
Lenzing phases out coal in its Nanjing (China) operations 2022
Lenzing installs on-site photovoltaic power generation at the Lenzing plant 2022
Lenzing increases the share of renewable energy consumed by the Lenzing Group and
2023
supplies excess bioenergy from the pulp production facility in Indianópolis (Brazil)
Lenzing achieves scope 1 and 2 carbon neutrality at its new lyocell fiber production site
2023
in Prachinburi (Thailand) by using 100 percent bioenergy
Lenzing engages 20 key suppliers, by spend and CO2 impact, in order to reduce
Lenzing’s scope 3 emissions and incentivize the suppliers that help Lenzing offer more Continuous
low-carbon-footprint fibers
Lenzing engages and enables 50 percent of ‘customers with approved SBT and
commitment’ (textile and nonwoven brands/retailers as well as manufacturers working with
LENZING™; fibers) to fulfill their ambition by providing information on low GHG-footprint Continuous
specialty products such as TENCEL™,LENZING™, ECOVERO™, and VEOCEL™ branded
fibers
Lenzing runs a campaign to reach 50 percent of TENCEL™ and VEOCEL™ customers
(textile and nonwoven brands/retailers as well as manufacturers using the TENCEL™ and
Continuous
VEOCEL™ brands) to promote the use of innovative carbon-zero TENCEL™ products
and climate care VEOCEL™ products
Lenzing has commissioned the largest ground-mounted photovoltaic system in Upper Austria, which is
expected to provide 5,500 MWh annually. This is expected to cut CO2 emissions by some 4,400 tons
per year. The transition to solely renewable electricity in Nanjing (China) is underway and expected to
be completed in 2023. Phasing out coal in Nanjing (China) is ongoing, however the project was
delayed due to long negotiations with gas stakeholders such as infrastructure and supply and the strict
COVID-19 restrictions in China. The targeted carbon neutrality in (Prachinburi) Thailand was achieved in
Progress made in 2022 2022. For more information, please see the "Climate and energy" chapter.
Empowering people
To have a continuously valid third-party audited accredited social certificate for every
2024
Target 16 Lenzing Group production (fiber or dissolving wood pulp) site by 2024d 8, 12
Lenzing implements and annually updates the Facility Social Labor Module (FSLM) at all
pulp and fiber production facilities and shares verified modules with customers from 2024 2024
Measure(s) onwards
For the sites in Nanjing (China) and Mobile (USA): Completion of online assessment, preparation of on-
site audits, completion of certification expected in Q1/23, training modules for all sites in preparation.
For the sites in Austria and the Czech Republic, a different verification is being sought, as these two
Progress made in 2022 countries cannot be verified according to FSLM.
To enable a good life for people amplified by means of products offered by Lenzing and
Continuous
Target 17 by respecting human rights, employee wellbeing, and diversity 3, 5, 10
Lenzing implements training courses for 75 percent of the workforce on diversity,
2025
Measure(s) discrimination, the non-discrimination policy, and human rights
Lenzing increases its proportion of women to 22.5 percent in all positions graded 5a and
2025
above by 2025
Lenzing establishes a working condition policy 2021
In 2022, further measures were taken to provide diversity training and publish a range of global
guidelines to explain processes and benefits that impact employees' terms and conditions to ensure
fairness and consistency across the Group. In order to get an overview of existing guidelines and
policies to be included in the working conditions policy, several guidelines were reviewed and
developed such as the Job Evaluation Guideline, Guideline for Creating a Job Description, Learning and
Development Guideline and Talent Management Guideline. In 2023, it will be summarized in one
Progress made in 2022 (global) policy.
To continuously support the development of local communities near Lenzing production
Continuous
Target 18 sites and support social welfare programs to 2025 and beyond 1, 3, 11
In 2022, Lenzing continued supporting numerous social and environmental initiatives for enhancing
community development and wellbeing. Depending on local requirements, activities range from
donations, sponsorships, health and medical care, scholarships and other educational programs, as well
as local environmental projects. A current overview of activities conducted in 2022 at each site is
Progress made in 2022 provided in the “Social responsibility” focus paper.
a) The target has the same production volumes and scope of facilities as the 2014 baseline (i.e. excluding the new legal entities in Prachinburi (Thailand) and Indianópolis (Brazil)).
b) Relevant for the Managing Board long-term incentive (LTI) bonus target
c) Lenzing (Austria), Heiligenkreuz (Austria), Mobile (USA), Prachinburi (Thailand)
d) The scope includes all Lenzing facilities, also the new legal entities in Prachinburi (Thailand) and Indianópolis (Brazil).
e) These intermediate targets are part of the Lenzing corporate strategy on the way to reach science-based target by 2030.
24
25 Sustainability
Group
Information on environmentally sustainable economic
activities according to the EU Taxonomy Regulation
According to the Regulations (EU) 2021/2139 of the European Taxonomy-eligibility refers to an economic activity that is
Commission as of June 4, 2021, (EU) 2021/2178 of the European described in the EU-Taxonomy regulation. Taxonomy-alignment
Commission as of July 6, 2021 and (EU) 2020/852 of the European goes beyond eligibility and implies a positive assessment of the
Comission as of June 18, 2020, the Lenzing Group is required to applicable technical screening criteria. This includes a substantial
disclose three key performance indicators (turnover, CAPEX and contribution to at least one of the Taxonomy’s environmental
OPEX) associated with the Lenzing Group’s economic activities objectives, no significant harm to any other objectives and
that are eligible under and aligned with the EU Taxonomy. The compliance with the minimum safeguards.
Lenzing Group designed an EU-Taxonomy accounting guideline for
describing the methodology for reporting the three KPIs by For the identified economic activities that are considered material
following the time sequence and requirements as outlined in the in terms of the key performance indicators, an assessment for
Delegated Act dated January 1, 2022. Taxonomy-alignment was performed. The Lenzing Group began
the alignment assessment by screening the technical critieria,
To determine the Taxonomy-eligible activities, the Lenzing Group including the substantial contribution, the Minimum Safeguards
assessed all economic activities listed in the EU-Taxonomy for all and DNSH (Does Not Significantly Harm) criteria. During the
consolidated group companies. The European industry screening, the Lenzing Group came to the conclusion that the
classification system (NACE codes 4) was used as a framework to requirements of Annex A (climate risk and vulnerability assessment)
capture all economic sectors. Due to the current state of EU as well as other elements can not yet be fullfilled. As a
legislation, not all economic activities and industries are covered consequence of this assessment, no full DNSH-alignment was
by the two currently applicable environmental objectives. As a obtained. All identified economic activities are reported as
consequence, the Lenzing Group’s core business activities (wood- Taxonomy-eligible, but not Taxonomy-aligned.
based fiber production, dissolving wood pulp production and
supporting activities) are currently not included. Thus, the The Lenzing Group avoids any double counting by evaluating the
information on Taxonomy-eligible economic activities for 2022 data for each key performance indicator independently. All identi-
covers only a very small portion of activities within the Lenzing fied economic activities only count once for the environmental ob-
Group. The following activities are identified as Taxonomy-eligible: jective of “Climate Change Mitigation”. The Lenzing Group has as-
Transmission and distribution of electricity, cogeneration of sessed the turnover, CAPEX and OPEX according to the definition
heat/cool and power from renewable non-fossil gaseous and liquid of Taxonomy-eligible and Taxonomy-aligned activities as set out in
fuels, cogeneration of heat/cool and power from bioenergy. Future the Taxonomy.
developments in legislation may change the scope of the
Taxonomy-eligible activities.
4 NACE (Nomenclature statistique des activités économiques dans la Communauté européenne) is

the classification of economic activities in the European Union
25
26 Sustainability
Group
The proportion of turnover, CAPEX and OPEX from products or services associated with Taxonomy-eligible and -aligned economic activities, convering the year 2022, is
presented in the template below: Table 05
Substantial Contribution criteria DNSH criteria

("Does Not Significantly Harm")
Taxonomy-aligned proportion of turnover year 2022
Taxonomy-aligned proportion of turnover year (n/a)
Category (transitional activity)

Biodiversity and ecosystems
Biodiversity and ecosystems

Climate Change Adaptation
Climate Change Adaptation

Economic activties
Climate Change Mitigation
Climate Change Mitigation

Water marine resources
Water marine resources

Proportion of turnover
Minimum safeguards
Absolute turnover
Circular Economy
Circular Economy
Pollution
Pollution
Codes
EUR mn % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % % E T
TURNOVER
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmental sustainable activities (Taxonomy

aligned)
A.2. Taxonomy-Eligible but not environmental
sustainable activites (not Taxonomy-aligned activities)
Transmission and distribution of electricity 4.9. 1.6 0.1 % E
Cogeneration of heat/cool and power from renewable
non-fossil gaseous and liquid fuels 4.19. 31.2 1.2 %
Cogeneration of heat/cool and power from bioenergy 4.20. 14.7 0.6 %
Turnover of Taxonomy-eligible but not

environmental sustainable activities (not Taxonomy-
aligned activities) (A.2.) 47.5 1.9 %
Total (A.1 + A.2) 47.5 1.9 %
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) 2,518.2 98.1 %
Total (A + B) 2,565.7 100 %
CAPEX

aligned)
E
Transmission and distribution of electricity 4.9. 0.8 0.1 %
CAPEX of Taxonomy-eligible but not environmental

sustainable activities (not Taxonomy-aligned
activities) (A.2.) 4.9 0.6 %
Total (A.1 + A.2) 4.9 0.6 %
CAPEX of Taxonomy-non-eligible activities (B) 803.3 99.4 %
Total (A + B) 808.2 100 %
OPEX

aligned)
26
27 Sustainability
Group
E
Transmission and distribution of electricity 4.9. 0.3 0.1 %
OPEX of Taxonomy-eligible but not environmental

sustainable activities (not Taxonomy-aligned
activities) (A.2.) 10.9 5.6 %
Total (A.1 + A.2) 10.9 5.6 %
OPEX of Taxonomy-non-eligible activities (B) 183.9 94.4 %
Total (A + B) 194.8 100 %
The total turnover covers the revenue recognized pursuant to In- The total CAPEX covers book (not cash-effective) additions to
ternational Accounting Standard (IAS) 1.82 (a), as adopted by Com- property, plant and equipment, intangible assets, biological assets
mission Regulation (EC) 1126/2008 and is reported in the consoli- and right of use assets. The CAPEX related to assets or processes
dated financial statements for 2022 (see consolidated associated with Taxonomy-eligible economic activities, is
Income Statement line “revenue”). The turnover derived from prod- presented in relation to the total CAPEX.
ucts or services, including intangibles, associated with Taxonomy-
eligible economic activities, is presented in relation to the total
turnover.
EU Taxonomy CAPEX Table 06
EUR mn EUR mn
1–12/2021 1–12/2022
Additions to intangible assets

(see note 18 of consolidated financial statements 2022) 8.7 10.9
Additions to property, plant and equipment excluding down payments 947.7 778.6
Additions to land and buildings
Additions to technical equipment and machinery, factory and office equipment
Additions to down payments and assets under constructions
Reclassification of down payments
(see note 19 of consolidated financial statements 2022) 109.3a 145.5a
Additions to biological assets
Additions to right of use assets
Total 967.9 808.2
a) Additions include prepayments amounting to EUR 141 mn (2021: 106.5 mn), which were capitalized in the financial year. The decrease in advance payments made compared to
the previous period amounts to EUR 4.3 mn (2021: 2.8 mn).
The total OPEX covers direct non-capitalized operating expenses

that relate to research and development, building renovation
measures, short-term leasing, maintenance and repair. Mainte-
nance and repair expenses relate to the day-to-day servicing of
property, plant and equipment assets (including maintenance ma-
terial and cleaning services). Operating expenses associated with
taxonomy-eligible economic activities are presented in relation to
total operating expenses.
EU Taxonomy OPEX Table 07
EUR mn EUR mn
1–12/2021 1–12/2022
Maintenance and repairs including maintenance material

Rental and leasing expenses
Research and development expenses
(see consolidated financial income statement 2022) 24 29.2
Less amortization and depreciation included in research and development expenses
(see note 6 of consolidated financial statements 2022) –0.9 –4.0
Total 66.6 194.8
27
28 Sustainability
Group
Partnering for systemic change
The world is more interconnected today than ever before. Improv- Key stakeholder groups Figure 07
ing access to technology and knowledge is an important way to

share ideas and foster innovation. The complex global sustainability
challenges society is facing, call for a collaborative approach to de-
Suppliers
signing systemic solutions.
Su
& contract
rs
pe
aile
Guided by the United Nations, Sustainable Development Goal,
rvis
mia
s
Ra die
ret
ory
SDG 17, Partnerships for the Goals, the Lenzing Group regularly en- tin bo
Acade
s&
g n
Bo
ag tio
ors
gages with a wide range of stakeholders and business partners in
nd
en ca
ard
Non
Bra
pro cie
r tifi
order to integrate different perspectives, understand global trends, fits s Ce s
& NG itor
Os pet
and mitigate risks. Lenzing strives to identify and develop cross- Com
industry business opportunities to make progress in implementing Multi-stakeholder initiatives Lenzing Consumer protection
circularity at Lenzing and throughout the industry. Thanks to its Group
ia Con
contributions to developing methods, tools and products, Lenzing Med D
sum
ers
s & irec
helps the industry to progress on its path towards a more sustain- itie va t
un lue cu
ch stom
Em
s
m
tor
Govern
able future. For example, the Lenzing Group actively contributes to om
ons
ain e
plo
lc
es
ca pa rs
sociati
Inv
yee
multi-stakeholder associations such as the Textile Exchange (TE) Lo rtn
er
ments
s
MMCF roundtable and Sustainable Apparel Coalition’s (SAC) Higg s
as
transparency program, as well as a policy hub for accelerating cir-
Industry
cularity via forward-looking policy frameworks and for engaging
policy makers in Europe.
Engaging in a dialog means respecting stakeholders, contributing

Lenzing’s expertise and knowledge, and taking the opportunity to
learn from partners’ perspectives. Transparency is a prerequisite for
Key stakeholders in 2022
fostering trust and long-term relationships. Each dialog starts with
The Lenzing Group’s key stakeholders are the people and entities
providing transparent information, supporting stakeholders to form
who are potentially affected by its operations, business conduct,
an educated opinion and assess risks, and avoiding misunderstand-
and strategic targets. Lenzing regards them as strategic partners
ings by building trust. Furthermore, stakeholder relationships built
who have a significant interest in and impact on areas that matter
on mutual respect and openness help solve existing tensions and
the most to Lenzing. One very special stakeholder group is
avoid potential conflicts.
Lenzing’s staff. Transparency, collaboration, and the sharing of in-
formation make them a clear testimony to the Lenzing Group’s
The ongoing stakeholder dialog improved significantly following
credible sustainability performance. The main topics discussed in
the COVID-19 pandemic in the reporting year. Many activities, such
2022:
as customer meetings or events took place again in person. The
Lenzing teams made great efforts to continue their work by finding
● Energy security and reducing reliance on fossil fuels
an efficient balance between online and in-person activities with
● Climate change, GHG (greenhouse gas) emission targets, sci-
(virtual) workshops and webinars with customers, one-to-one dis-
ence-based target (SBT)
cussions, training sessions, interviews, surveys, education, joint
● Diversity and inclusion
product development, web platforms, roadshows, regular media
● Responsible sourcing, in particular Supply Chain Due Diligence
relations, online trade shows and conferences, press interviews,
and (verification of) scope 3 emissions
risk assessments, and audits.
● EU policies (e.g. EU Taxonomy, Empowering Consumers Di-
rective)
Various business functions are involved in reaching out to individual
● ESG risks
stakeholders. In addition to the Lenzing Sustainability team, the
● Circular economy and recycling technologies
Managing Board and managers of the different business functions
● Waste, emissions and water management
are all important players who drive the company’s proactive ap-
● Transparency and traceability of supply chains
proach towards an ongoing stakeholder dialog.
● Environmental assessment and communication of products
● Biodiversity and conservation of ecosystems
● Benchmarking tools (Textile Exchange Preferred Fiber and Ma-
terial Matrix)
For more information on the stakeholder dialog, please see the

“Stakeholder engagement” chapter.
28
29 Sustainability
Group
United Nations Sustainable Development Goals (SDGs)
The SDGs are a collection of 17 goals adopted by all Member Lenzing recognizes its responsibility and sees its pioneering role in
States of the United Nations in 2015 to address global economic, the textile and nonwovens industries as an opportunity to contrib-
social, and environmental challenges and achieve a more sustain- ute to the achievement of sustainable development goals.
able future by 2030. Lenzing’s sustainability strategy and targets contribute towards
these goals. For more information on Lenzing’s approach to the
Sustainable development plays an important role in addressing SDGs, please see the “Sustainable development goals” focus paper.
global challenges such as the current health crisis by aiming to pro-
vide access to healthcare and clean water for all.
29
30 Sustainability
Group
CHAPTER
3 /4
Material
Aspects
2022
Table of content
Circularity & resources 31
Climate & energy 39
Raw material security 49
Biodiversity & ecosystems 57
Sustainable innovations 64
Health & safety 81
Human rights & fair labor practices 85
Business ethics 97
Digitalization & cyber security 102
Stakeholder engagement 108

Circularity & resources
–MANAGEMENT APPROACH
Material topic: Circularity & resources

[GRI 3-3; ESRS E5-1, E5-2]
Lenzing is developing a circular economy model by creating more sustainable systems and processes at every opportunity. The company has worked hard to
achieve greater efficiency in the use and reuse of resources, such as closing loops in production processes and producing fibers that are biodegradable
(applying to TÜV certified biodegrable and compostable LENZING™ fibers) at the end of their life. Such measures also ensure that Lenzing remains financially
competitive and compliant with environmental legislation. As Lenzing continues to drive circular solutions across both the business and the industry, the
complex transition from a linear to a circular system requires a collaborative approach. The company has partnered with Swedish pulp producer Södra to
generate more opportunities for recycling waste, creating circular practices and promoting systematic change. The company strives to create as much value
as possible through improved sustainability performance that impacts the entire value chain.
–Actual and potential negative and positive impacts

• Targets for textile recycling on track
–
• Lenzing intensified its collaboration with leading stakeholders
and initiatives
Positive • Partner in the newly founded Christian Doppler Laboratory for a

recycling-based circular economy
• Creating new product offerings and business models to help the
• Contribution to supply chain transparency to facilitate circular
industry to change
economy projects
• Optimizing the eco-footprint of Lenzing products
• Viscose defined as a non-plastic in the European Single-Use
• Optimizing the value Lenzing generates via the environmental re- Plastics Directive (SUPD) (Directive (EU) 2019/904)
sponsible products it supplies
• Environmental management system based on ISO14001:2015 (in-
• Lowering emissions by closing energy and material loops cluding risk assessment and internal audits to ensure the effec-
• Replacing products that cause end-of-life pollution (e.g. micro- tiveness of the measures implemented)
plastics contamination) with biodegradable alternatives • Joined the Circular and Sustainable Textile Clothing project
(CISUTAC)
–
• Valorizing biorefinery products
• Cutting the use of virgin raw materials
• Driving innovation on recycling and optimizing closed loop pro- Sustainability targets, measures and progress
cesses
• Joining forces and sharing know-how within partnerships for For more information, please see the “Sustainability targets, measures and
systemic change
–
progress” chapter.
Negative –
Stakeholder
Own activities: • Circular Fashion Partnership
• Policy Hub
• Falling behind competition in terms of efficiency
• CISUTAC
• EURATEX
Business relationships: • Textiles 2030
• Södra
• Transitional risks due to changing legislation and stakeholder ex-
• Renewcell
pectations (NGOs, customers)
–Policies and commitments

–
For more information, please see the “Stakeholder engagement” chapter.
• Circularity is a core pillar of the company’s new Better Growth Responsible

strategy • Members of the Managing Board (Pulp and commercial)
• “Naturally positive” sustainability strategy with “Advancing circu- • Head of Circularity Initiative
–
larity” as one of its three major principles and “Partnering for sys-
temic change” as a focus area
• Lenzing Group Environmental Standard Supporting
• Lenzing Waste Management Guideline
–
• Corporate Sustainability
• Global textile business
Actions taken • Global nonwoven business
• Strategic investments in pulp and fiber projects fully on track de- • Global BU Noble Fiber
spite COVID-19 • Pulp Division
• Collaboration signed with Södra to jointly install a process for • Global Quality, Environment, Safety & Health (QESH)
post-consumer cellulosic recycling • Research & Development
• Site managers
31
32 Sustainability
Group
• Lenzing signed a five-year agreement for the sale of Renewcell's
recycled dissolving pulp
We think circular to design out waste and

What is a circular economy? innovate processes
A circular economy is built on the idea that closed loops allow max- In addition to using raw materials highly efficiently, Lenzing strives
imum value to be extracted from resources. It keeps materials and to reduce its waste by closing loops in the production. By imple-
products in circulation for as long possible. Closing the loop de- menting circular thinking and high environmental and social stand-
scribes the idea that resources can theoretically “loop” around the ards in Lenzing's operations, procurement and innovations, Lenzing
economy without being lost, but in the linear economy the loop is minimizes the impact on ecosystems and society not only for
not closed, leading to resources getting lost. Important measures Lenzing itself, but throughout the value chain. Lenzing set stand-
to close loops include minimizing waste or the use of virgin mate- ards in the industry by further closing the loops in the technologies
rials, which also entails maximizing reuse or recycling. In order to it uses.
become more circular, an important focus should also be set on
reducing the need for virgin materials such as closed-loop pro- Lenzing continuously improves its biorefinery concept by optimiz-
cesses and reusing resources and products as much as possible. ing the cascading use of biomass, meaning that every resource in
the wood is used with maximum economic value. As a side product
Building a circular economy calls for rethinking at every stage of a to fibers, Lenzing also produces chemicals which can be used as
product’ life from the design stage, production and use through to raw materials in other industries such as food and pharmaceuticals.
the end-of-life. The use-phase of products should be prolonged.
Waste from one process can be used as a raw material in another Lenzing develops recycling technologies such as the REFIBRA™
process, which reduces the need for virgin resources, avoids waste, and Eco Cycle technologies on a commercial scale to increase re-
increases resource efficiency and thereby minimizes environmental source efficiency and reduce waste in the value chain. Lenzing im-
impacts. plements digital processes (blockchain technology, e-branding
services) to enhance transparency across the network in order to
give customers and end users confidence and to facilitate the tran-
Lenzing’s circular economy vision sition from a linear to a circular supply chain.
We give waste a new life. Every day We are not alone in this – Partnering for
systemic change
Lenzing strives to drive the industry towards a fully-fledged circular
economy by striving to give waste a new life across all aspects of To move to a truly circular economy on a larger scale (regionally
our core business and by co-developing circular solutions with po- and globally), several parties have to work together. Lenzing, as a
tential partners within and outside the current value chain to close fiber producer, represents only a fraction of the value chain of tex-
loops wherever possible. This vision is based on the determination tiles and nonwovens and relies on partnerships from every part of
to create value using as few virgin resources as possible and to re- the chain. In order to be able to recycle textiles more efficiently,
duce the use of fossil carbon in the company and the value chain cooperation among designers, manufacturers, consumers and pol-
while at the same time improving sustainability performance. It is icy makers is needed. The infrastructure for sorting and collecting
built on the following three pillars. post-consumer textiles is crucial in scaling up the recycling of tex-
tiles. To foster and speed up systemic change Lenzing is entering
We use regenerative and recycled raw into various partnerships within and outside the value chain, most
materials to help to protect the planet notably was the partnerships in 2022 with Södra, a producer of dis-
solving pulp from recycled textiles. For more information, please
An important element in Lenzing’s circular economy vision is its use see the “Stakeholder engagement” chapter.
of wood, a renewable raw material harvested from well- managed
and controlled forests or plantations. In its biorefineries, Lenzing
converts 100 percent of the wood into high-value products and bi- Lenzing’s circular economy practices
oenergy. To reduce the need for wood, Lenzing is using an increas-
ing amount of alternative cellulose feedstock, in particular from To make its vision a reality, Lenzing follows six main practices that
textile waste, as a raw material and is focusing on further develop- embed various elements of the circular economy into its business
ing the technology. Lenzing proactively participates in conserva- model. These practices are described below and include:
tion projects to protect the world’s ecosystems. For more infor-
mation on this, please see the “Biodiversity & ecoystems” chapter. ● Na t u r a l c i r c u l a r i t y
● Resource- effi ffic c i e n t p ro d u c t s a n d t e c h n o l o g i e s
● D e v e l o p i n g c o m m e r c i a l - s c a l e re c y c l i n g t e c h n o l o g i e s
● Transparency and traceabi l i ty of suppl y chai ns
● M i t i g a ti n g c l i m a t e c h a n g e
● Partneri ng for systemi c change
32
33 Sustainability
Group
Circular economy model Figure 08
Mitigating
climate C
re om
change s cy m
ie cl er
log Fiber production in
o
ci tec
Manufacturing
g
al h
Lyocell with high
n
te t
d en steps
ch
-s no
solvent recovery rates
ca lo
an ci
cts effi
Production waste
le gie
from textiles/non-
du e-
prosourc
wovens processing
s
Re
Biorefinery Brands/
for pulp retailers
production Take-back
Cascading and programs
highly-efficient
use of
resources Consumer use
Old garments Partner-
Recycling technology that cannot ships
Pre-consumer be reused or
and post-consumer refurbished
upcycling
Origin
Renewable raw
material wood
from sustainable
sources End of life
Biodegradability and
compostabilitya
Transparency
and traceability
Natural circularity
a) Applies to TÜV certified biodegradable and compostable LENZING™ fibers
As shown in figure 08, the origin of Lenzing's renewable raw ma- loop and aligns with the natural cycle. As complex global chal-
terial wood lies in sustainably managed forests and plantations. The lenges such as the transition from a linear to a circular system re-
wood is processed into pulp in Lenzing’s biorefineries, with the require a collaborative approach, Lenzing enters into partnerships
newable energy produced, being used to meet the energy needs with several stakeholders with the clear goal of driving systemic
for production and other processes at the site. Lyocell fiber pro- change in the textile and nonwovens industry. Close digital con-
duction at Lenzing is a closed-loop process that uses all of the in- nections facilitate supply chain traceability and help to verify the
puts without generating waste products. To address the enormous origin of Lenzing fibers throughout the life cycle up to the final gar-
waste challenges facing the textile industry, Lenzing has developed ment. Lenzing strives to find synergistic solutions such as its biore-
a unique solution for recycling technologies called REFIBRA™ (for finery concept, which not only addresses circularity but also con-
textiles) and Eco Cycle (for nonwovens). These technologies, in ad- tributes to climate change mitigation at the same time.
dition to virgin pulp, use cotton waste from brands/retailers and
end-of-life garments that cannot be reused or refurbished as raw
materials after consumer use. At the end of their life TÜV certified
biodegradable and compostable LENZING™ fibers are composta-
ble and biodegradable 5. This closes for those fibers the material
5 LENZING™ fibers which are TÜV certified biodegradable and compostable include the following Lyocell Filament(b), LENZING™ Lyocell Dry(b), LENZING™ Web Technology. a) LENZING™ FR Stan-
products: LENZING™ Viscose Standard textile/nonwovens, LENZING™ Lyocell Standard textile/non- dard and LENZING™ FR Black are only industrial compostable. b) LENZING™ Lyocell Filament is not
wovens, LENZING™ Modal Standard, LENZING™ FR Standard(a), LENZING™ FR Black(a), LENZING™ tested for marine biodegradability and LENZING™ Lyocell Dry is not compostable in salt water.
33
34 Sustainability
Group
Climate change and the circular Closed-loop production
economy Lenzing’s lyocell process is a closed-loop solvent-based produc-
tion technology that allows the manufacturing of cellulosic fibers
By reducing the need for virgin materials, it i possible to lower the without chemical conversions. The process follows a basic disso-
carbon footprint of a product which will help to mitigate climate lution concept and allows more than 99.8 percent of the solvent to
change. A new air purification and sulfur recovery plant at the be recovered and recycled. This avoids waste and ensures high re-
Lenzing facility reduces the need for virgin materials saving 15,000 source utilization, while reducing water consumption and emis-
tons of CO2 per year. Lenzing has developed products with recy- sions.
cled materials for example using the REFIBRA™ and Eco Cycle
technologies, which have lower carbon footprints than fibers con- Lenzing also sets standards for closing the loops even further in the
ventionally produced from virgin resources (according to Higg MSI traditional production of viscose and modal fibers. Carbon disul-
scores). fide and hydrogen sulfide are recovered from the process, con-
verted and returned to the production process as raw materials.
Management of production waste

Natural circularity There are several contexts in which waste is generated in facilities,
such as the packaging of procured goods or within production pro-
Natural circularity covers the biological cycle, which is based on cesses. Lenzing follows a waste hierarchy and avoids waste wher-
two aspects: renewable origins and the biodegradability and com- ever possible. For more information, please see the "Waste man-
postability of natural materials. Lenzing’s products are derived from agement" chapter.
wood sourced from well-managed forests and plantations (as de-
scribed in the “Raw material security” chapter) and recycled cotton
from textile waste. TÜV certified biodegradable and compostable
LENZING™ fibers are compostable and biodegradable 6. The safe Developing commercial-scale
disposal of those fibers into the natural environment enables the recycling technologies
cellulose material loop to close in alignment with the biological cy-
cle. Lenzing has developed a recycling technology called REFIBRA™ to
address the enormous textile waste challenges facing the industry.
This technology utilizes a substantial proportion of cotton waste as
well as dissolving wood pulp as raw materials. Lenzing continued
Resource-efficient products and to offer TENCEL™ x REFIBRA™ branded lyocell fibers with up to
technologies 30 percent recycled content in 2022. Along with dissolving wood
pulp, pulp from cotton scraps is used for the closed-loop commer-
Cascading use of biomass cial-scale production of lyocell fiber. While this creates a significant
The Lenzing Group operates three biorefineries: one in Lenzing environmental improvement, it creates high-quality fibers with the
(Austria) and one in Paskov (Czech Republic) and one in Indianap- same properties as fibers from virgin dissolving wood pulp. The fi-
olis (Brazil). As depicted in figure 09, Lenzing biorefinery technol- ber is available under the Recycled Claim Standard (RCS), certify-
ogy converts wood into pulp, biobased co-products and energy. ing that all production processes in the entire supply chain have
Lenzing sells the valuable biorefinery products, such as LEN- undergone the relevant steps to ensure the integrity of the final
ZING™ Acetic Acid Biobased, LENZING™ Furfural Biobased, xy- product.
lose, LENZING™ Soda Ash or LENZING™ Magnesium-Lignosul-
fonate Biobased, to other industries, thereby making a major con- The TENCEL™ x REFIBRA™ market presence was stepped up in
tribution to the maximum utilization of wood. The biorefineries are 2022, with an increasing number of collections and more than 40
self-sufficient in terms of energy. The surplus renewable energy brands already offering garments or products containing TEN-
(steam and electricity) that is produced is supplied as renewable CEL™ x REFIBRA™. Some of these brands also use the option of
energy for on-site use in fiber production and other purposes. This closing the loop to return garment production waste to Lenzing as
is a prime example of the cascading use of biomass and 100 per- a raw material base for garments and home textile products made
cent utilization of wood without generating any waste. with TENCEL™ x REFIBRA™ fibers. To advance circularity, con-
crete actions are needed from more industry players than just hol-
low commitments. Without translating commitments into actions,
Highly efficient use of the raw material wood Figure 09
circular innovations cannot be upscaled.
Pulp
Lenzing runs an active research and development project to further
Bio- Biobased materials:
refinery improve the utilization of post-consumer textile waste for the pro-
LENZING™ Bio-based Acetic
Acid, LENZING™ Bio-Based duction of fully biobased and biodegradable fibers.
Wood Furfural, LENZING™ Bio-Based
Magnesium-Lignosulphonate,
LENZING™ Soda Ash, xylose
Bioenergy
6 LENZING™ FR Standard and LENZING™ FR Black are only industrial compostable. LENZING™
Lyocell Filament were not tested for marine biodegradability and LENZING™ Lyocell Dry is not
compostable in salt water.
34
35 Sustainability
Group
achieving targets with Lenzing’s major stakeholders. Lenzing is part
of several initiatives that strive to foster the circular economy in the
WE GIVE WA S TE A NEW L IFE. EVERY DAY
fashion industry. More information can be found in the “Stake-
In line with its vision, “We give waste a new life. Every day”, Lenzing is holder engagement” chapter.
striving to make textile waste recycling a common standard process
similar to paper recycling. Lenzing has set a target and taken measures
to make this vision a reality: it plans to offer viscose, modal and lyocell
staple fibers with up to 50 percent post-consumer recycled content on
a commercial scale by 2025. For more information, please see the “Sus-
End of life in the natural cycle
tainability targets, measures and progress” chapter.
External scientific approval of biodegradability
A study conducted in 2021 by the University of California’s prestig-

ious Scripps Institution of Oceanography (SIO) compared the deg-
Transparency and traceability of radation processes of nonwovens made from fossil-based syn-
supply chains thetic materials, such as polyester, with those of cellulosic materi-
als, derived from the raw material wood, such as LENZING™
Transparency provides a foundation for credible sustainability per- Lyocell fibers in specific scenarios 7. It was shown that cellulosic fi-
formance, especially the circular economy that will be part of the bers can degrade under oceanic and aquatic conditions within 30
upcoming EU legislation for supply chain due diligence. Gaining a days, while the fossil-based fibers tested were practically un-
deeper understanding of Lenzing’s suppliers and downstream cus- changed after more than 200 days. The research was the result of
tomers is critical to minimizing the Lenzing Group’s overall envi- an independent project aimed at understanding the end-of-life
ronmental as well as social impact and putting it on the right track scenarios for textiles and nonwovens 8.
to achieve a low-impact, carbon-neutral footprint by 2050. Trace-
ability also gives customers and end users confidence. Close digi- Furthermore, a range of Lenzing fibers was tested for biodegrada-
tal connections across the network help close the loops efficiently bility at the independent research laboratory Organic Waste Sys-
and holistically and facilitate the transition from a linear to a circular tems (OWS) in Belgium. The assessment was performed in accord-
supply chain. More information on digitalization is provided in the ance with existing and applicable international standards, reflect-
“Digitalization & cyber security” chapter. ing all relevant natural and artificial environments where biodegra-
dation can take place (figure 10). Certificates from the certification
organization TÜV Austria show that TÜV certified biodegradable
and compostable LENZING™ fibers biodegrade in soil, fresh water
and marine environment and are compostable in home applica-
Partnering for systematic change
tions and industrial facilities 9. This should not be seen as a way to
Collaboration is essential to the transition to a circular economy. litter or as a justification for littering, but rather as an additional pro-
tection to prevent pollution. For more information, please see “End
Partnering for systemic change is one of the basic principles of
of product use” focus paper.
Lenzing’s “Naturally positive” sustainability strategy for jointly
7 Degradation of synthetic and wood-based cellulosic tissues in the marine environment: comparative 9 LENZING™ FR Standard and LENZING™ FR Black are only industrial compostable. LENZING™
evaluation of field, aquarium and bioreactor experiments. Lyocell Filament were not tested for marine biodegradability and LENZING™ Lyocell Dry is not
8 New studies regarding the biodegradability of Lenzing fibers have been conducted in 2022, but compostable in salt water.
have not been published yet.
35
36 Sustainability
Group
Biodegradation of fibers in various environmentsa Figure 10
Environment Temperature Biodegradability of Reference

conditions TÜV certified
LENZING™ fibersb
Anaerobic digestion ASTM D5511

(thermophilic) & ISO 15985
Speed of biodegradation
EN 13432,
Industrial composting ISO 14855
EN 13432,
Home composting ISO 14855
EN 13432,
Soil ISO 14855
Freshwater EN ISO 14851
Marine water ASTM D6691
a) Modified from: EMAF, 2017, after B. de Wilde, 2013. Anaerobic digestion, industrial composting and home composting are controlled environments
designed for waste management. The tests in soil, freshwater and marine water environments simulate the fate of litter in the respective environments
b) LENZING™ fibers which are TÜV certified biodegradable and compostable include the following products: LENZING™ Viscose Standard textile/
nonwovens, LENZING™ Lyocell Standard textile/nonwovens, LENZING™ Modal Standard, LENZING™ FR Standard, LENZING™ FR Black,
LENZING™ Lyocell Filament, LENZING™ Lyocell Dry, LENZING™ Web Technology. LENZING™ FR Standard and LENZING™ FR Black are only
industrial compostable. LENZING™ Lyocell Filament was not tested for marine biodegradability and LENZING™ Lyocell Dry is not compostable
in salt water.
End of life of Lenzing’s fibers ● Anaerobic digestion: Alternatively, for certain products it
may be appropriate to use anaerobic digestion with energy re-
Looking at the end-of-life stage for products manufactured from covery (biomethane production) in waste treatment. LEN-
Lenzing’s fibers including clothing, home textiles, technical prod- ZING™ fibers are fully degradable in controlled anaerobic
ucts, hygiene products and personal care products, there are sev- waste treatment conditions.
eral processing options: ● Incineration: If composting is not an option, the final products
can be incinerated and the embedded energy recovered.
● Recycling: Products made from cellulosic fibers can in princi- Since the fibers consist of natural polymers, they are climate-
ple be recycled and used again for fiber production at Lenzing. neutral in terms of incineration, which means that only the
● Compostability: If recycling is not possible, some textile and amount of CO2 initially stored in the plant is released. Either
nonwoven applications can be composted if all constituents way, both composted materials and CO2 provide input for
are biodegradable. The BioSinn report 10 (funded by the Ger- plant growth, thereby closing the natural carbon cycle.
man Federal Ministry of Food and Agriculture) from the Nova- ● Landfill: The least preferable option for materials’ end-of-life
Institute lists such applications – including wet wipes or bind- is landfill, which is still a regular practice in many countries.
ing yarns. TÜV certified biodegradable and compostable LEN-
ZING™ fibers are compostable, fulfilling the requirements for
compostability in terms of biodegradability, disintegration and
absence of eco-toxicity 11.
10 BioSinn - Products for which biodegradation makes sense (PDF) | Renewable Carbon Publications 11 Ellen MacArthur Foundation, 2017. A new textiles economy: Redesigning fashion’s future,
(renewable-carbon.eu) http://www.ellenmacarthurfoundation.org/publications, p. 21
36
37 Sustainability
Group
Fiber types on the world marketa Figure 11
Man-made fibers from

Natural fibers natural polymers Synthetic fibers
by shaping or transformation
Regenerated/ “Classical”
Cotton, flax, hemp, Semi-synthetic Biosynthetic
wood-based synthetic fibers
ramie, wool, silk fibers fibers
cellulosic fibers
from from from

cellulose proteins others
Man-made Viscose/ Cellulose Natural PLA Polyester (PET)

fibers rayon, acetate rubber, (partly) biobased Polyamide (PA)
triacetate etc PET, PA, PP Polypropylene (PP)
modal,
etc. Polyacrylonitrile (PAN)
lyocell, Polyurethane (PUR)
cupro etc.
Natural polymers Natural polymers Synthetic polymers

(unmodified) (chemically modified) (biobased) (fossil fuel-based)
a) Modified from BISFA (International Bureau for Standardisation of man-made fibers), 2017.
Terminology of man-made fibers. http://www.bisfa.org/wp-content/uploads/2018/06/2017-BISFA-Terminology-final.pdf [Accessed February 15, 2022]
BIODEGRADABILITY
Waste management
The ability of a material to be broken down by micro-organisms (bacte- [GRI 306-1, 306-2, 306-3; ESRS E2-2, E2-4, E2-5, E5-2, E5-5]
ria, fungi etc.) into carbon dioxide, water, and biomass, or compost, so
that it can be consumed by the environment.
Lenzing uses licensed contractors to dispose of waste. Audits of
C O M PO S TA B I L I T Y these service providers are conducted in site-defined intervals.
Capability of being biodegraded at certain temperatures (industrial: Any contractor found to be non-compliant has its contract termi-
58°C; home: 28°C) in soil under specified conditions and time scales. nated. There were no such cases in 2022.
Similar to other environmental issues, Lenzing identifies the gener-

ation of waste from a life cycle perspective and extends the as-
Cellulosic fibers
sessment of impacts up and down the value chain. In 2021, Lenzin
standardized its approach to environmental aspects and impact as-
Cellulose is a major component of plant biomass and one of the
sessment in accordance with ISO 14001. This standardized ap-
most abundant polymers produced in nature. The natural cellulose
proach was aligned across all sites in 2022 and has to be fully im-
cycle builds the basis for Lenzing’s business model. When the car-
plemented by 2023.
bon from the materials is released at the end of their life, this re-
newable carbon and part of the natural cycle, ensuring that no ad-
Waste is categorized in line with national legislation. In Europe, the
ditional fossil carbon enters the atmosphere. Lenzing fibers are
end-of-waste criteria defined under the Waste Framework Di-
produced from natural cellulose in an industrial process. The results
rective may be applied to certain waste streams resulting in the de-
are (regenerated) cellulosic fibers such as viscose, modal and
classification of those waste streams when criteria are met. There
lyocell. Figure 11 shows that two groups of fibers consist of unmod-
may also be long delays in obtaining the related data and infor-
ified natural polymers: natural fibers, and regenerated cellulosic fi-
mation when an external party, such as an authorized waste man-
bers derived from the raw material wood. Both groups of fibers are
agement company, determines the management option of a waste
inherently biodegradable. Other fiber types can be difficult to bio-
stream. All these factors may result in significant fluctuations in
degrade, such as conventional fossil-based synthetics, some of the
waste reporting from year to year.
biosynthetic fibers, and some semi-synthetic fibers made from
chemically modified natural polymers. For a systematic overview
of fiber biodegradation, see the “Biodegradable Polymers in Vari-
ous Environments” chart compiled by the Nova Institute.
37
38 Sustainability
Group
Waste Management Guideline 1. Prevention and reduction
Within Lenzing, waste management is set out in its internal Waste 2. Reuse and recycling
Management Guideline, which was launched in 2018. The guide- 3. Energy recovery
line was further developed in 2021 and updated in 2022, which re- 4. Landfill
sulted in a full consolidation of Group waste data. It is an integral
part of Lenzing’s environmental management system. Activities re- Wherever possible, waste is avoided or reduced, e.g. by modifying
lating to waste management – e.g. the collection, separation, stor- processes to increase material efficiency or by adopting good
age, transportation, and treatment of waste – are planned and im- housekeeping and operational practices. Recyclable components
plemented based on possible utilization as well as an understand- of waste are separated. Unrecyclable components are disposed of
ing of their environmental impact and risks. in accordance with local legislation. Wherever possible Lenzing re-
covers energy from unrecyclable components in facilities such as
Further details on waste management are set out in the site waste incinerators. Landfilling of waste is subject to strict national regu-
management systems, which also concern external service provid- lations. Hazardous waste is either treated or disposed of in accord-
ers. The company’s approach to waste management uses a man- ance with the applicable regulations. An overview of waste gener-
agement hierarchy as its guiding principle. This means that Lenzing ation, broken down by disposal method and waste type, is shown
plans and prioritizes waste management as follows: in table 08.
Waste by type and disposal method

2020 2021 2022 2020 2021 2022
Hazardous waste (t) Non-hazardous waste (t)
Reused
Recycled 196.17 450.14 123.23 65,857.37 50,829.81 48,349.42
Composted
Recovered including energy recovery 52,189.11 36,132.26 46,048.20 32,834.33 35,126.01 21,545.81
Incinerated (mass burn)
Deep well injection
Landfill 2,261.53 36,678.98 21,375.78 12,650.64 13,535.16 11,182.99
On-site storage
Other (to be specified by Lenzing) 48.05 0.22 1,153.44 377.90 828.13 923.63
Total waste 54,694.86 73,261.60 68,700.64 111,720.23 100,319.11 82,001.85
Total waste generated
(Total weight of waste generated in metric tons, and a breakdown of this total by
2020 2021 2022
composition of the waste)
Hazardous waste (t) 54,694.86 73,261.60 68,700.64

Non-hazardous waste (t) 111,720.23 100,319.11 82,001.85
Total waste (t) 166,415.09 173,580.71 150,702.49
38
39 Sustainability
Group
Climate & energy
Material topic: Climate & energy
[GRI 3-3; ESRS E1-2, E1-3]
Dissolving wood pulp and fiber production are energy-intensive processes that present a challenge for Lenzing. Where possible, the company has eliminated
fossil-based energy or replaced it with renewable sources. Investments in state-of-the-art technologies and low-carbon production processes at all Lenzing
sites have helped to increase energy efficiency and positively influence the company’s carbon emissions. Climate risks present opportunities for innovation
and investment that make Lenzing more resilient to the changing regulatory landscape. The company demonstrates industry leadership as recognized in 2022
by the environmental non-profit organization CDP, which awarded Lenzing a triple ‘A’ rating for climate, water and forestry for the second time. This sustained
environmental effort has kept the company on track to meet its reduction target of 50 percent by 2030 (baseline 2017), which also supports the bigger goal
of achieving a net-zero future by 2050 in line with the Paris Agreement.

–
Actions taken
–Positive
•
•
Development and progress of group-level and production site-
level roadmaps
CDP Climate ‘A’ rating
• Driving the transition to a fossil-free production through circular
• Two more new products with climate benefits have been
business model and innovation along the whole value chain
launched
• Offering end consumers a truly sustainable option: textiles and
• Four production sites in the Lenzing Group use 100 percent re-
nonwovens made from wood-based cellulosic fibers
newable electricity from the grid (Lenzing, Heiligenkreuz, Paskov,
• Future-proofing Lenzing’s growth with the implementation of and Mobile)
carbon-neutral technologies and low-carbon products
• Implementation of an internal carbon price
• Becoming more resilient to the changing regulatory (e.g. tax) and
• Environmental management system in accordance with ISO
business environment
14001:2015 (including risk assessment and internal audits to en-
• Strengthening credible sustainability leadership among all stake- sure the effectiveness of the measures implemented)
holders, securing product differentiation and price premiums
• Task Force on Climate Related Financial Disclosure (TCFD) re-
• Collaborating with stakeholders and supply chain partners porting framework
• Attracting new and long-term impact investors
–
• Governance and steering committee in place
• Definition of roadmaps for group-level and site-level targets
Negative • Continuous improvement of energy consumption

• Large-scale photovoltaic project at the Lenzing site is in opera-
Own activities:
tion
–
• Lenzing cannot contribute to its customers’ CO2 targets if
Lenzing’s fibers no longer meet customers’ definition of sustain-
able raw materials Sustainability targets, measures and progress
• Any climate-related disruption in one of the production sites (eg.
severe weather events, supply chain disruptions) For more information, please see the “Sustainability targets, measures and
–
• Not meeting new regulations, technological problems with re-
gard to transition to renewable energy sources (eg. green hydro-
gen)
• Fossil-based energy and energy-intensive technologies carry po- Stakeholder
tential regulatory, technology, market, and corporate reputation • UN Fashion Charter
risks
• Roadmap to Zero
• Inefficient energy conversion technologies have a potential im-
• Renewable Carbon Initiative
pact on CO2 emissions
Business relationships:
• Risks of wood unavailability due to forest degradation (diseases,
pests, etc.) as a direct consequence of higher average tempera-
–
Responsible
tures • CEO
• Potential regulatory, technology, market and corporate reputational • Board member (Commercial)
risks • Senior Manager Carbon Strategy
•
•
Any climate-related disruption in one of the production sites
would impact the business model and its success
Implementation of regional and national emission trading
–
Supporting
schemes • Corporate Communications
• Energy shortage could compromise Lenzing’s operations • Corporate Sustainability
• Financial impacts of potential cost increases in energy prices • Global Controlling
– • Global Purchasing
39
40 Sustainability
Group
Policies and commitments • Corporate Audit & Risk
• Global QESH
• “Naturally positive” sustainability strategy with “Decarbonization”
and “Partnering for systemic change” as focus areas • Global Strategy and M&A
• Implementation of science-based target (SBT) • Performance.Improvement.Technology
• Commitment to UN Fashion Industry Charter for Climate Action • Site managers
• ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 system cer-
tifications for the Lenzing Group
• Lenzing Group Environmental Standard
Agreement. Lenzing’s decarbonization strategy is therefore based

Lenzing’s responsibility and on reducing its emissions, rather than offsetting them, e.g. com-
science-based target pensating for CO2 emissions elsewhere.
[GRI 305-5; ESRS E1-1, E1-2, E1-3, E1-4]
S C I E N C E BA S E D TA R GE T I N I T I AT I V E ( S B T I )
Lenzing continously works on the implementation of its ambitious
science-based target (SBT), which was approved in Novem-
ber 2019. The following section provides information about the im- The Paris Agreement was adopted by consensus at the 21st United Na-
tions Climate Change Conference (COP21) in 2015. The agreement’s
plementation in a few key areas. aim is to combat climate change by keeping the increase in global tem-
peratures compared to pre-industrial levels well below 1,5 degrees Cel-
sius this century
The Intergovernmental Panel on Climate Change (IPCC) published its

HIGHLIGHTS IN 2022 Report in 2022 giving more clarity on the carbon reductions required to
keep the increase to 1.5 degrees Celsius. According to this report, global
1. Decarbonization as one major sustainability target in the new corpo- net-zero CO2 emissions will be reached in the early 2050s in pathways
rate strategy (Better Growth) that limit warming to 1.5 degrees Celsius and it is in the early 2070s in
pathways that limit warming to 2 degrees Celsius.
2. Start up of scope 1 & 2 carbon-neutral 90,000 tonnes Lyocell produc-
tion plant in Prachinburi (Thailand) The Science Based Target initiative (SBTi) is a collaboration between the
3. Pulp mill in Indianópolis (Brazil) is the largest of its kind. Due to the Carbon Disclosure Project (CDP), the United Nations Global Compact,
plant’s excess bioenergy, it provides electricity to Brazilian grid, thus World Resources Institute (WRI), and the World Wide Fund for Nature
replacing gas based energy and grid electricity (WWF).The initiative defines and promotes best practices in science-
based target setting and independently assesses companies’ targets for
4. Production site-level roadmaps towards net-zero emissions were consistency with the level of decarbonization required according to the
updated latest science to keep global temperatures from increasing more than 2
5. Supplier engagement continued with key chemicals suppliers – degrees Celsius above pre-industrial temperatures.
Purchase of low-carbon caustic soda from one supplier and contin-
ued engagement with others
6. Two new textile fiber products, LENZING™ FR and TENCEL™ Modal
Micro, were launched within carbon-zero portfolio. VEOCEL™ Cli-
mate care added Mobile (Alabama) to its portfolio Governance
7. In 2022, two additional production sites with renewable grid elec-
tricity– Purwakarta (Indonesia) 100 percent from July 2022 and Nan- A cross-functional project team was set up under the leadership
jing (China) partly in 2022 (100 percent planned in 2023) of the CEO. The project management team includes a steering
8. Lenzing put Upper Austria’s largest ground-mounted photovoltaic committee to enable alignment across all decision-makers and
plant in operation with an output of 5.5 MWpeak in cooperation with
Verbund. Additionally three roof-top PV-plants were installed leading
functions, expedite decisions, and ensure the involvement of dif-
to a total PV capacity installed of 7.0 MWpeak in Lenzing (Austria) ferent owners of capital projects, sites, and functions.
9. Sing-off of a 5.5MWpeak Photovoltaic Power Purchase Agreement
(PV-PPA) with Energie Steiermark and Enery. The PV-plant will be A dedicated global project manager is operationally responsible for
built in Styria and supply electricity to Lenzing (Austria) with Q4 2023
facilitating the roadmap preparation and bringing best practice ex-
10. Lenzing has again achieved the top CDP climate score of ‘A’ amples to implement climate targets at facilities and group level.
11. Lenzing published its first Climate Action Plan Additionally it is supporting the functions in integrating climate in
business decisions.
To ensure engagement and empowerment, production sites and

In line with the Paris Agreement and the UN SDG 13, the Lenzing functions are responsible for developing and implementing
Group set an ambitious science-based target for reducing CO2 roadmaps so that they can effectively manage their portfolios and
emissions (scope 1, 2 & 3) by 50 percent per ton of fiber and pulp specific agendas in the medium and long term.
sold by 2030 (baseline 2017). Lenzing also aims to achieve net-zero
CO2 emissions by 2050 (scope 1, 2 & 3). Strategy, targets, and roadmaps
The targets have been scientifically verified and approved by the Lenzing’s new corporate strategy, Better Growth, includes a cli-
Science Based Target initiative, making Lenzing the first wood- mate change target, which ensures that climate change is incorpo-
based cellulosic fiber producer to have an approved science-based rated into the business strategy and decision-making.
target. Since the target is science-based, Lenzing’s approach to
combating climate change is considered to be in line with the Paris

40
To effectively achieve the science-based target, the global project the ICP is to mitigate future carbon risks, trigger renewable fuels
manager has developed a high-level science-based target over fossils and support energy efficiency projects.
roadmap for the Group with potential site-level targets. These sce-
narios and site targets were aligned with the CEO, steering com- Board remuneration linked to sustainability performance: The
mittee, and other decision-makers of key functions and regions. remuneration policy of Lenzing AG for the performance-based re-
This has provided guidance and direction and facilitated the devel- muneration of the Managing Board is linked not only to financial
opment of roadmaps by each production site and function. performance criteria but also to non-financial sustainability criteria
(ESG). For more details, please see “Managing Sustainability”
Integration in functions and projects chapter.
Research and Development: A project is being planned with ac-

ademic partners to decarbonize heating demand by developing
high-temperature heat pumps with renewable electricity to re-
place the use of fossil fuel for heating. This project has been dealing
with delayed requisite financial support and resources in 2022.
Therefore the operation will start in 2024 in Lenzing (Austria).
Operations: All production sites have been engaged to develop

their targets and roadmaps. For more information, please see the
“strategy, targets, and roadmaps” section. Some emission reduc-
tion projects implemented globally during the reporting period in-
clude:
● Since July 2022, the Purwakarta site (Indonesia) has pur-

chased 100 percent renewable grid electricity. Some of the
grid electricity purchased by Nanjing (China) in 2022 was re-
newable.
● Four photovoltaic (PV) systems were started up in Lenzing
(Austria) in 2022. One ground-mounted and three roof top PV
systems with a total capacity of 7 MWpeak.
Business management and sales: A process has been launched

to identify and support the development of new product offerings
with climate change benefits, for example carbon-neutral product
portfolio. For more information, please see the “Business value cre-
ation with climate action” section in this chapter.
Procurement and supplier engagement: Supplier engagement

has been carried out with key chemical and pulp suppliers to re-
duce Lenzing’s scope 3 emissions. These engagements and part-
nerships are intended to develop raw materials with lower GHG
and other impacts. Lenzing focuses on maintaining long-term rela-
tionships, helping suppliers achieve improvements, and being part
of their transitional journey by buying their green products.
Strategy, mergers and acquisitions: Every capital project,

whether brownfield or greenfield, has to align with the climate
change strategy and targets. In this regard, some projects have
been assessed for their benefits and contribution to climate change
impact as part of the Managing Board’s decision-making process.
Internal carbon pricing for key projects is used to support this pro-
cess.
Finance and controlling: In 2020, climate change metrics were

integrated into the capital allocation and periodic management re-
porting process of the Group’s operations. In 2022, there were no
capital allocation.
Internal carbon price: In 2021, an internal carbon price (ICP) of

EUR 75 per ton of CO2 was implemented. The ICP comes on top
of regulatory carbon pricing at different Lenzing locations (e.g.
EU ETS). It was applied in the 2022 strategic investment planning
process for capex projects of over EUR 2 million. The purpose of
41
42 Sustainability
Group
Lenzing Group’s current carbon footprint
[GRI 302 -1, 302-3, 305-1, 305-2, 305-3, 305-4, 305-5; ESRS E1-1, E1-2, E1-3, E1-4, E1-5, E1-6]
LENZING’S SCOPE 1, 2 & 3 EMISSIONS
The Greenhouse Gas Protocol classifies emissions into three scopes: scope 1 Scope 3 emissions are defined as all other indirect emissions from the
emissions cover all direct emissions from a company’s activities or activities un- organization’s activities occurring from sources that it does not own or
der their control, including fuel combustion on site, e.g. from burning coal and control and covering emissions along the value chain, for example, pur-
own vehicles. Scope 2 emissions cover indirect emissions from electricity and chased goods and services such as chemicals and logistics.
heat purchased and used by the company.
Carbon footprint Figure 12
49% 34% 4%
Indirect emissions along Our Indirect emissions along
the value chain direct emissions the value chain
Production of heat and

electricity on sites
Harvesting of raw Production Transportation of fibers

material wood of fuels to customers
Production of
purchased materials:
chemicals, pulp Pulp and fiber
manufacturing
Transportation of purchased
raw materials and fuels
Heat and electricity

purchased
13%
Indirect emissions
Scope 1 Direct emissions from Lenzing’s pulp and fiber production facilities
Scope 2 Emissions from energy purchased for Lenzing’s pulp and fiber production facilities
Scope 3 Other emissions along the value chain
42
43 Sustainability
Group
Energy sources Figure 13
Despite Lenzing’s business model, which is firmly rooted in the use 100
of wood from well-managed forests and plantations that sequester
carbon, the company does not assume that this alone is enough, 80
given the current climate science. Lenzing goes further by drasti-
60
cally reducing the current fossil-based emissions from its own pro-
duction and supply chain and innovating new technologies for fur- 40
ther decarbonization to pave the way towards carbon neutrality by
2050. The Group advocates this bold approach to its industry ra- 20
ther than being complacent about the inherent climate advantage
0
of the wood-based fibers business model. World Lenzing Group Lenzing site
2017 2022 2022
Renewables
(biomass, wind, solar, hydro, waste, etc.)
Fuel sources used in the Lenzing Group
Nuclear
Lenzing, Austria Biomass and waste, natural gas, coal

Crude oil
Natural gas
Heiligenkreuz, Austria Natural gas, biomass and biogas
Coal
Paskov, Czech Republic Biomass and biogas, natural gas
Sources: World Energy Outlook 2018, Lenzing AG. Includes own energy
consumption and energy from providers, excluding grid power, which is a minor
Grimsby, UK Natural gas fraction of total scope 1 and 2 energy consumption in the Lenzing Group. The
production sites in Paskov, Grimsby, Mobile, and Heiligenkreuz do not use coal
Mobile, USA Natural gas as a fuel source in their own operations, whereas the Asian sites, i.e. Nanjing and
Purwakarta, predominantly use coal.
Nanjing, China Coal, natural gas
Purwakarta, Indonesia Coal, natural gas

The production volume of pulp and cellulosic Fibers is directly
Prachinburi, Thailand Biomass
linked to the amount of consumed energy and, hence, emissions
related to energy use. In 2022, the economic crisis and corre-
Indianópolis, Brazil Biomass and oil
spondingly challenging market environment forced temporary
shutdowns of production lines or even whole sites, which led to a
significant decrease in primary energy consumption (table 11). Total
primary energy consumption was on the same level as 2020, but
the share of renewable fuels increased slightly. The specific energy
consumption index improved by 0.2 percent compared to 2021.
In 2022, absolute CO2 emissions in all scope’s decreased signifi-

cantly. CO2 intensity of scope 1, 2 & 3 also strongly decreased in
2022 compared to 2021. Reason for these is the slightly lower pro-
duction volume as well as the implementation of various improve-
ments (see the section “Highlight 2022” in this chapter).
43
44 Sustainability
Group
Primary energy consumption of the Lenzing Group Table 11
Million GJ 2014 2020 2021 2022
Primary energy consumptiona 43.10 37.97 42.45 38.62
Fossil primary energy 23.39 18.30 21.78 18.51
Renewable primary energy 19.71 19.67 20.67 20.11
Specific primary energy consumptionb

(index in percentage based on GJ/t, 2014 = 100 %) 100 % 97.30 % 97.40 % 97.60 %
a) Lenzing discloses both direct and indirect energy consumption. According to the Greenhouse Gas Protocol, scope 1 relates to energy consumed directly by the Lenzing Group
and scope 2 concerns energy purchased from energy suppliers and from the public grid. Primary energy here includes all forms of energy such as electricity and steam. All
energy sources such as fossil (coal, oil, natural gas) and renewable (biomass, waste fuels, hydro, wind, etc.) were included.
b) Specific indicators are reported per unit of production. This applies to all specific indicators in this report, except for CO2 emissions.
Greenhouse gas emissions of the Lenzing Group Table 12
Million metric tons CO2 eq. 2017a (baseline year) 2020 2021 2022e
Direct emissions, scope 1 1.16 0.88 1.08 0.92
Indirect emissions, scope 2 0.63 0.50 0.53 0.35
Total scope 1 & 2 GHG emissions b 1.78 1.38 1.61 1.27
Indirect emissions, scope 3c 1.89 1.46 1.82 1.45
Total scope 1, 2 & 3 GHG emissions 3.67 2.84 3.43 2.72
Total biogenic CO2 emissions, scope 1 1.52 1.90 1.83
Greenhouse gas emissions intensity d
Specific emissions, scope 1 & 2

(tons CO2 eq. per ton product sold) 1.67 1.40 1.47 1.33
Specific emission index, scope 1 & 2

(index in percentage based on t CO2 eq./t, 2017 = 100 %) 100 % 83.60 % 88.00 % 79.30 %
Specific emissions, scope 3c

Specific emission index, scope 3 c
Specific emissions, scope 1, 2 & 3c

Specific emission index, scope 1, 2 & 3 c
a) 2017 has been chosen as a baseline year, because in 2018 the science-based targets (SBT) were developed and 2017 was the most recent year during the target development
b) Includes both scope 1 & 2 emissions of all greenhouse gases (CO2, CH4, N2O, HFCs, PFCs, SF6, NF3), expressed as CO2 equivalents. Scope 1 emissions are calculated based on
emission factors from the EU Emission Trading System and scope 2 emissions are calculated according to a market-based method. Scope 2 emissions according to the
location-based approach are 0.52 mn tons CO2 equivalents in 2022.
c) Recalculation of scope 3 emissions from 2017 to 2021 based on updated data from market pulp suppliers.
d) Intensity indicators (i.e. specific CO2 emissions) are reported based on pulp and fiber sold as in SBT
e) GHG accounting regarding GHG protocol using GWP potential for greenhouse-gases from IPCC Fifth Assessment Report (AR5 – 100 year). Scope 1 emissions factor source:
measurements and Ecoinvent values. Scope 2 emissions factor source: suppliers. Scope 3 emission factor source: Ecoinvent, Ecotransit and supplier data.
44
45 Sustainability
Group
There are two different categories of risks underlying the TCFD
Monitoring and reporting recommendations. On the one hand, there are political, legal, tech-
nological and market risks, known as “transition risks”. On the other,
[GRI 201-2; ESRS E1-9] there are acute and chronic risks, known as “physical risks”. Transi-
tional risks arise from transitioning to a low-carbon economy (e.g.
The CEO and steering committee monitor project progress regu-
regulatory changes), whereas physical risks are environmental
larly. A group-wide Task Force on Climate-Related Financial Dis-
risks leading to negative acute or chronic impacts on a company
closures (TCFD) process has been implemented to identify, priori-
(e.g. water scarcity or extreme weather events).
tize, quantify and mitigate climate change risks in operations and
the supply chain.
The group-wide TCFD assessment process implemented in 2020
has been further developed with the goal of identifying, prioritizing,
To improve transparency and measure Lenzing’s progress against
quantifying and mitigating climate change risks, and seizing oppor-
key industry-leading disclosure platforms, Lenzing has submitted
tunities in Lenzing’s operations and in its supply chain in 2021. In
the Carbon Disclosure Project (CDP) and been re-confirmed with
this reporting year, Lenzing’s Climate Risks and Opportunities (see
an “A” in climate for its leadership-level performance.
table below) have been updated. Climate-related risks and oppor-
tunities are managed by the ESG committee (see the “Governance
A process has been created in the Finance and Controlling depart-
structure for sustainability” chapter).
ment to facilitate management reporting and align corporate pri-
orities on key topics such as climate change with proper capital
Relevant risks and opportunities for Lenzing were qualitatively
allocation. This process defines which projects require financing
evaluated by using scenario analysis for short-term (1–2 years),
and thus removes obstacles to their timely implementation by sup-
mid-term (2–5 years), and long-term (5–30 years) consequences
porting management’s decision-making.
in order to estimate their potential financial impact and probability
of occurrence. Lenzing then derived a KPI scorecard with indica-
Lenzing’s climate risks and opportunities
tors and targets on the key climate-related risks and opportunities
[GRI 201-2; ESRS E1-9]
based on the TCFD recommendation for metrics and targets.
Based on the ambition defined in 2020 of being a climate resilient Beside the disclosure of climate-related risks and opportunities to
company, Lenzing enhanced the process of implementing TCFD external (rating) organizations, Lenzing’s focus is on the full integra-
recommendations in 2021 by defining board and top-level manage- tion of ESG issues in the Enterprise Risk Management Process.
ment responsibilities for identified key climate-related risks and op-
portunities. The following table describes key climate risks and opportunities
and provides details of Lenzing’s response and mitigation
The TCFD’s recommendations provide guidance to companies on measures. A TCFD index in the Annex of this report shows the link
integrating climate risks and opportunities into financial and non- between the TCFD recommendations, the contents of this report,
financial reports and eventually including climate risks with enter- and other external publications such as CDP Climate.
prise risk management. The TCFD issues their recommendations in
four areas: (1) governance, (2) strategy, (3) risk management, and (4)
metrics and targets. Lenzing focused on risk management, metrics
and targets in its 2020 analysis.
45
46 Sustainability
Group
Transition risks, physical risks, transition opportunities Table 13
Characterization Risk/opportunity description Lenzing’s response

Transition risks Emerging regulations on carbon pricing
Lenzing is implementing stringent energy efficiency measures
in order to reduce its potential exposure to green taxation.
Increasing regulation, especially on green taxation and carbon In 2019, Lenzing set a science-based target to reduce its
pricing, constitute a relevant risk for Lenzing. In the countries greenhouse gas emissions (scope 1, 2 & 3) by 50 percent
where Lenzing has carbon intensive processes, regulations on per ton of pulp and fibers sold by 2030 (compared to a
greenhouse gas emissions have already been implemented 2017 baseline). Lenzing is therefore mitigating the risks
(energy efficiency improvements, regulated emission from emerging carbon pricing regulations. Lenzing is
allowances) and stricter regulations that could increase the pursuing the vision of becoming the first net-zero player by
costs of greenhouse gas emissions are under development. 2050 through its decarbonization strategy.
Increased biomass costs
In order to mitigate the risk of increasing biomass costs
Wood is the Group’s most important natural resource for and improve supply chain security, Lenzing started-up a
manufacturing biobased fibers. Despite its sustainable sourcing modern dissolving wood pulp (DWP) plant in 2022 with
policy and backward-integrated production, wood prices are integrated plantation and forest operations in Brazil. The
at risk of increasing due to climate change, growing global new pulp mill improves the Lenzing Group's cost position
biomass demand, and alternative land use. Growing as it secures the Group`s own supply of dissolving wood
competition for land use and natural resources is affecting pulp and represents a milestone in Lenzing's strategy to
long-term structural biomass prices. achieve carbon neutrality.
Reputational risk in the textile sector
Lenzing responds to potential negative media coverage of
the fashion and textile industry by proactively disclosing
information on its business practices and environmental
footprint (e.g. backward integration and optimization of
The textile industry, where Lenzing’s products are commonly energy and raw material usage. Waste, air and water
used, is being scrutinized for its sometimes unsustainable and treatment). Lenzing works through certain communication
resource-intensive raw material consumption and production channels to underline its contributions to a low-carbon
processes. This could lead to negative media coverage and economy and the net benefits created by its speciality
further stigmatize the sector, which could, in turn, influence products compared to average industry-standard products in
the Group’s revenue. the market.
Physical risks Chronic physical climate risks
Climate models indicate that rising global mean temperatures Lenzing’s Group Policy for Safety, Health, and Environment
will lead to increased chronic climate hazards. The Group’s (SHE) outlines a clear roadmap to ensure no accidents
operations and supply chain will increasingly be impacted by cause harm or damage to people or the environment.
extreme weather events, water scarcity, and other physical Lenzing is conducting case studies to mitigate the potential
hazards. Increasing work-related heat stress could cause implications of rising mean temperatures for labor
reduced work capacity, lower labor productivity and productivity including details of technical, organizational,
decreased economic output for Lenzing. and personal impacts.
Increased demand for low-emission products and product innovation
Transition opportunities
Lenzing has embarked on an ambitious growth strategy to
As consumer needs and preferences shift toward low-emission benefit from expected higher demand for responsibly
products, the development and expansion of low-emission resourced/low-emission products. Lenzing invested more
goods and services is expected to have substantial growth than EUR 1 billion in a new lyocell fiber production in
potential. Lenzing applies life cycle-based thinking, sustainable Prachinburi (Thailand) and a new dissolving wood pulp
sourcing, efficient use of biomass, and partnerships with facilitiy in Indianopolis (Brazil) that started operating in
stakeholders along the value chain in order to contribute to 2022. These investments significantly contribute to reduce
more sustainable consumption and production patterns. All Lenzing's carbon emissions and strengthen the security of
these factors mean that Lenzing’s products offer net benefits. the Group's raw material supply.
Decarbonization strategy de-risks operations
Lenzing’s science-based target has been approved by the
The Lenzing Group considers rapid decarbonization to be a Science Based Target initiative, making Lenzing the first
major business opportunity to de-risk its operations, build wood-based cellulosic fiber producer to have an approved
resilience, launch products with less climate impact, and science-based target. Lenzing’s decarbonization strategy is
harvest energy efficiency gains. Lenzing will substantially based on reducing its emissions, not offsetting them. To
reduce its greenhouse gas emissions in the coming years reach the target, Lenzing set up a cross-functional steering
through a number of corresponding measures (decarbonization committee to make necessary decisions under the
strategy) and science-based targets (50 percent reduction of leadership of the Group’s CEO. Lenzing’s greenhouse gas
greenhouse gas emissions per ton of product by 2030 abatement activities will involve a series of measures to
compared to 2017). Furthermore, Lenzing aims to reach net- reduce carbon emissions both within its operational
zero greenhouse gas emissions by 2050. boundaries and along its supply chain.
46
47 Sustainability
SustainabilityReport 2022 Lenzing
Report 2022 Lenzing Group
Group
Levers to meet science-based target
Business value creation with climate
Lenzing will deploy different levers based on technical feasibility for
action scope 1 & 2 emissions. They can be broadly grouped under four
Creating traction for climate change target implementation has to categories (figure 14).
be linked to business value via measures such as creating new rev-
Levers to meet science-based target Figure 14
enue streams, launching new products, and attracting new inves-
tors and long-term impact investors who will ensure sustainable
growth and resilience for the company. The following initiatives Lever 1 Lever 2
have been accomplished. Energy reduction Energy mix
Efficiency Fuel switch
Technology optimization (e.g. coal to gas/biomass)
Launch of new premium product – carbon-zero
Better stewardship Renewable electricity
TENCEL™ fibers purchases
In 2020, Lenzing successfully launched two specialty (lyocell and Product mix
modal) fibers with low climate change impacts. These carbon-zero
TENCEL™ branded fibers provide a reduced CO2 footprint thus
will help Lenzing’s customers, especially brands and retailers to re- king solutions to
-loo red
duce their scope 3 emissions from raw material production and ful- ard
w
Le
uc
r
fill their scope 3 science-based target commitments. In 2021, this 1
Fo
er v
ev
n:
alu
product portfolio has been expanded with two more new products
er
v
duct innovatio
Le
e cha
2
(TENCEL™ x REFIBRA™ and VEOCEL™ lyocell) to address the
Net zero
in impac
growing industry demand for “circular fashion” and carbon neutral- emissions
ity. The first carbon-zero TENCEL™ branded lyocell and modal fi-
Pro
3
Le
bers have continued to gain momentum among industry partners er
ts
er
v
v
including fashion brands and mills. In the reporting year, this fiber
4 Le
portfolio was expanded with one more production site Prachina-
buri in Thailand. Lenzing flame retardant fibers (LENZING™ FR)
and TENCEL™ Modal micro fibers were also become part of car-
Lever 4 Lever 3
bon-zero portfolio. For more information, please see the “Net ben- New technology Integration
efit concept” chapter. development Pulp and fiber integration
CO2 neutral technologies Virtual Integration
After launching the first carbon-zero fibers in Nonwovens in 2021, (e.g. electrification, heat
pumps)
Lenzing expanded its product range at the end of 2022 and now
Retrofits for existing plants
also offers carbon-zero VEOCEL™ branded lyocell fibers from the using renewable fuels/
US specialty production site, located in Mobile (Alabama). For this technologies (e.g. renewable
purpose, Lenzing invested in solar power, use of renewable elec- hydrogen, bio-methane)
tricity from wind power and technology upgrades to maintain and
pursue ways to reduce its carbon emissions.
In terms of footprint, Lenzing has been further able to reduce the Innovation is the Lenzing Group's core competence and allows it
footprint of carbon-zero fibers (cradle to gate) through measures to launch new products that reduce climate-related impacts on the
such as supplier engagement (green caustic, pulp with lower CO2 downstream value chain. Those avoided emissions are currently
footprint), expansion of the product range through its new plant in outside the scope of the science-based target methodology, so
Thailand as well as the development of renewable energies (e.g. Lenzing will not claim them as part of the company’s target
photovoltaic system at Lenzing site (Austria)). achievement. However, the following levers are key to achieving
the defined target:
Attracting new and impact investors
According to our evaluation, more than half of the shares owned ● The first lever addresses energy efficiency. Relevant measures
by institutional investors are held by investors with an ESG focus. include replacing inefficient pumps, optimizing current tech-
In 2019, Lenzing successfully positioned a bonded loan bound to nologies, planning efficiently, and further reducing losses to
its sustainability performance (MSCI rating). In 2022, Lenzing save energy. Better stewardship ensures the efficient running
maintained its “AA” rating issued by MSCI. The amount saved by of equipment with strict maintenance scheduling and immedi-
obtaining a more beneficial interest rate in the previous year was ate responses to malfunctions and leaks. Additionally, energy
donated to a biodiversity conservation project in DR Kongo and to efficiency improvements will be supported by cross-learning
the Red Cross in Ukraine. A higher MSCI rating results in a more and taking advantage of synergies across the Lenzing sites and
beneficial interest rate and therefore more will be donated. For among industry peers.
more information, please see the “Social responsibility” focus pa- ● The second lever concerns fuel. Reducing and avoiding the use
per. of fossil fuels by switching from high-carbon fuels to low-car-
bon or carbon-neutral fuels (scope 1) as well as scaling up the
procurement of renewable grid electricity (scope 2) will make
a major contribution to target fulfillment.
47
48 Sustainability
Group
● Third, Lenzing is seeking future growth via integrated pulp and helps to understand the targets and progress that suppliers achieve
fiber production facilities. ”Integrated” means that pulp and fi- annually. In addition, Lenzing periodically conducts discussions
ber production are combined at one and the same site. This with key suppliers to find different options and approaches.
has two effects: it provides renewable bioenergy for fiber pro-
duction and also saves energy by avoiding pulp drying and Avoided emissions: forward-looking solutions
pulp transportation. This will ensure economic growth while and value chain contributions
reducing Group CO2 emissions. Other opportunities will be ex-
plored, including virtual integration, e.g. using surplus renewa- The Lenzing Group is also committed to reducing emissions all
ble electricity produced at one production site at another site along the value chain. Table 14 shows in detail how Lenzing’s for-
in a different location. ests and wood products are contributing to climate protection
● The fourth lever focuses on developing technologies to decar- along the value chain. For a comprehensive list of contributions
bonize heat generation. As most of the energy for fiber pro- across the entire value chain, please see the Lenzing website – De-
duction has to be supplied in the form of steam, the decarbon- carbonization.
ization of heating will present the biggest challenge for
Lenzing. Electrification-based solutions will therefore play an Wood and pulp sourcing is at the root of Lenzing’s business model.
important part. For example, a heat pump based on renewable This part of the value chain harbors important climate change risks,
electricity can partially switch the power source for generating on the one hand, as well as large mitigation opportunities through
heat from fuel to electricity. Similarly, alternative fuels have to carbon removal and the replacement of fossil-based materials, on
be developed, such as hydrogen produced with renewable the other.
electricity or bio-methane generated from organic waste.
In addition to CO2 abatement activities to reduce direct and sup-
In order to reduce scope 3 emissions, Lenzing is engaging with plier emissions, Lenzing will contribute to the decarbonization of
suppliers such as pulp and chemicals producers and transportation its customers by actively developing products that reduce their
service providers. Lenzing has stepped up its dialog with suppliers value chain emissions.
according to a collaborative approach. This dialog is part of the
EcoVadis-based supplier sustainability assessment tool, which
How forests and wood products work for climate change mitigation
Topic relevant to climate change Details Lenzing Group contribution
CO2 sequestration in sustainably managed forests Sustainably managed semi-natural forests and forest Wood sourcing from sustainably well-managed
plantations absorb more carbon in trees and forests, managing own forest plantations, active
harvested wood products, thus acting as a net sink engagement with pulp suppliers for improvements,
over the long term. Forest areas and carbon stocks and other stakeholder activities (e.g. research at
are increasing in Europe. WOOD K plus)
Substitution of raw materials that have large climate Fibers with smaller carbon footprints in their Offering choises for fibers with small-footprint
impacts manufacturing process and life cycle
Adaptation of forests to climate change Share of beech in Europe is increasing, but its uses Economic valorization of beech wood for dissolving
are limited. Adaptation via higher species diversity can wood pulp production in Lenzing (higher value
be faster in managed forests. added than fuel wood use)
CO2 emissions from deforestation of forests Ensure that no deforestation occurs in the Lenzing’s wood and pulp policy, forest certificates
supply chain (FSC®, PEFC), transparency through CDP Forest,
implementing Canopy pathway, ranked top with dark
green shirt in the CanopyStyle initiative
48
49 Sustainability
Group
Raw material security
Material topic: Wood & pulp sourcing
[GRI 3-3]
Wood and dissolving wood pulp are the most important raw materials for Lenzing and there are potential risks associated with their sourcing, such as
deforestation, climate changes and biodiversity loss. This is why Lenzing minimizes the environmental risk of procuring wood through responsible sourcing
from sustainably managed forests. More than 99 percent of the company’s wood and pulp sourcing is certified by globally recognized standards, such as the
Forest Stewardship Council (FSC®) and the Programme for the Endorsement of Forest Certification (PEFC). Lenzing is constantly engaging with different
stakeholders (NGOs, customers, investors) in order to meet their expectations and meet upcoming regulation requirements (e.g. EU Green Deal, EU Timber
Regulation, supply chain due diligence).

• Transportation of some inbound materials changed from road to
–
rail to improve carbon footprint
• Regular audits on forest certification standards (FSC®, PEFC) 12
Positive • Internal audit management system

• Wood and Pulp certification according to FSC® and PEFC
• Wood as a natural and renewable raw material offers expanded
standards
business perspectives
• Additional third-party verification as part of the CanopyStyle Initi-
• As a replacement for fossil-based products
ative and through internal supplier audits
• Due to its contribution to climate change mitigation through car-
• Lenzing tops Canopy’s Hot Button Ranking with a “dark green
bon sinks in forests and wood products, and substitution of fos-
shirt”
sil-based product
• CDP Forests “A” rating
• Wood is an alternative to agricultural products (e.g. cotton)
• EcoVadis Platinum status for the Lenzing Group for the second
• Using wood from sustainably managed forests supports biodi-
time in a row
versity
–Negative –Sustainability targets, measures and progress

Own activities:
• Potential reputation loss due to link to deforestation or contribu- For more information, please see the “Sustainability targets, measures and
tion to biodiversity loss progress” chapter.
• Sourcing of environmentally and socially controversial wood and
–Stakeholder
pulp • Suppliers
• Loss of biodiversity in poorly managed forest ecosystems • Together for Sustainability (TfS)
• Sourcing can be impacted by climate change • CDP
• Climate and market impact on wood and pulp availability, price • Canopy
and quality
–
• Forest Europe, European and national forest strategies
• The Austrian Bioeconomy Strategy
Policies and commitments
For more information, please see the chapter “Stakeholder engagement”.
–
• Centrally managed wood and pulp procurement
• Strict Wood and Pulp Policy
• CanopyStyle Initiative Responsible
• Global Lenzing Supplier Code of Conduct • Member of the Managing Board (Pulp)
• Preference for long-term contracts and direct contacts • Senior Director Purchasing Wood
– •
•
VP Comm. Affairs Pulp
VP Global Purchasing
–
Actions taken
• More than 99 percent of wood suppliers assessed according to
the FSC® Controlled Wood criteria Supporting
• Start up and ramp up of pulp mill in Brazil and site in Thailand • Corporate Sustainability
• PEFC Chain of Custody certificate for fiber production sites in • Global QESH
Purwakarta (Indonesia), Nanjing (China), Mobile (USA)
12 FSC® (FSC-C041246), PEFC (PEFC/06-33-92)
49
50 Sustainability
Group
• Sustainability performance of pulp suppliers was surveyed in a
comprehensive questionnaire
• Integration of plantations managed by LD Celulose (Brazil) into
the Lenzing Group
Dissolving wood pulp in the Lenzing Group
Sustainable sourcing of wood and [GRI 204-1; ESRS E4-5]
dissolving wood pulp Processing wood into fibers requires a special quality of pulp called
dissolving wood pulp. The Lenzing Group’s current dissolving
[GRI 308-2]
wood pulp capacities are 320,000 tons at the Lenzing site and
Wood and dissolving wood pulp are Lenzing’s most important raw 285,000 tons at the Paskov site. The Lenzing Group’s long-term
materials. The Lenzing Group takes responsibility by focusing on strategy was to increase its own dissolving wood pulp capacities
sustainable sourcing covered by certifications, responsible con- to 75 percent of its planned fiber production requirements, which
sumption, and the highly efficient use of these valuable resources. has been achieved in the reporting year. In 2022, the Lenzing
Lenzing sources wood and dissolving wood pulp from semi-natural Group’s own dissolving wood pulp accounted for 94.7 percent
forests (as defined by the Food and Agriculture Organization of the (2021: 65.2 percent, 2020: 62.4 percent) of the dissolving wood
United Nations 13 (FAO), which include naturally regenerating and pulp volume required for the fiber production. In addition to its own
planted forests of similar species composition as the natural forests dissolving wood pulp production, Lenzing maintains procurement
in the area), and plantations, as all defined by FAO 14, which are not of dissolving wood pulp in the global market, mostly under long-
from primary, natural or ancient and endangered forests. term supply contracts. On the other hand, a share of the own pulp
production is traded to the global dissolving pulp market.
Precise figures for the absolute volumes of wood purchased and
dissolving wood pulp sourced are not provided for confidentiality The main reason for the increased own dissolving wood pulp pro-
reasons. As an indicative estimate, a total fiber sales of for example duction share is the new production facility in Indianópolis (Brazil),
1 million tons require a pulp input of around the same amount. The which was implemented in a LD Celulose joint venture together
amount of wood required for the production of this dissolving with the Brazilian Dexco (formerly Duratex) group. Lenzing holds a
wood pulp cannot be stated exactly, especially given the different 51 percent stake of this site, while Dexco has a 49 percent stake.
processes and species that Lenzing’s suppliers use. Assuming a The pulp plant began operating in 2022 and almost reached its
dissolving wood pulp yield from wood of 40 percent, a rough esti- nominal capacity of 500,000 tons in the same year. It is among the
mate for the total wood input would be 2.5 million tons (dry matter), most productive and energy-efficient facilities in the world, and
spread between Lenzing’s own production and the dissolving was designed based on European Union’s Best Available Technol-
wood pulp purchased. ogy (BAT) 16, and is powered by renewable energy. The pulp pro-
duced is 100 percent FSC® certified and is bleached totally chlo-
Wood as a natural and renewable raw material plays an important rine-free (TCF).
role in replacing fossil-based products and helps mitigate climate
change through carbon sinks in forests and wood products. For In 2022, the Lenzing Group procured pulp from the following sup-
more information on the climate effects of and on wood and pulp pliers (in alphabetical order):
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, es-
pecially human rights, in wood sourcing covered by the wood cer-
tification 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 Conventions 15.
13 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 Work-
ing paper series. Available at:http://www.fao.org/forestry/25853-0d4f50dd8626f4bd6248009fc68f892fb.pdf [Accessed 15 February 2021]
14 FAO Forest Resource Assessment 2020, i8661en.pdf (fao.org), p.11
15 https://www.ilo.org/asia/decentwork/dwcp/WCMS_143046/lang--en/index.htm [Accessed 15 February 2021]
16 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

50
If Lenzing discovers that it has sourced wood or dissolving wood
Countries of Lenzing Group’s pulp suppliers (in 2022) pulp from controversial sources, it will first engage with the sup-
Supplier Country
plier to encourage practices consistent with Lenzing’s Wood and
Pulp Policy. If the response is unsatisfactory, the supplier will be
AustroCel Hallein GmbH Austria
delisted with a reasonable lead time. Very few such cases have oc-
Celulosa Arauco y Constitución S.A. Chile
curred in recent years. There were three in 2020, one in 2021 and
Cosmo Specialty Fibers Inc. USA
none in 2022. For more information, please see the “Wood and dis-
Georgia-Pacific LLC USA
solving wood pulp certifications” chapter.
International Paper USA
Lenzing AG Austria
Lenzing Biocel Paskov a.s. Czech Republic Sustainable chemicals sourcing
LD Celulose Brazil
Phoenix Pulp and Paper PCL Thailand [GRI 204-1]
Rayonier Advanced Materials USA, Canada
Sappi Ltd. South Africa, USA
The most important chemicals used – amounting to approximately
Södra Skogsägarna ekonomisk förening Sweden
85 percent of the overall purchase volume – are caustic soda
(NaOH), carbon disulfide (CS2), sulfuric acid (H2SO4), sulfur (S),
sulfur dioxide (SO2), softening agents, flame retardants, modifiers,
N-methylmorpholine N-oxide (NMMO), titanium dioxide (TiO2),
For the locations of Lenzing’s own pulp supplying factories, please
and zinc sulfate (ZnSO4). Figures for chemical sourcing are not
see “Locations of the Lenzing Group” .
provided for confidentiality reasons.
Eucalyptus, pine and spruce represent the predominant wood spe-

The target of assessing 80 percent of the most important suppliers
cies used by Lenzing’s partners. However, beech, birch, ash, maple
(by purchasing value) was reached in 2019. Additional suppliers
as well as other hardwoods and softwoods are also processed. The
continue to be assessed (table 16). The new goal for 2023 is to en-
actual tree species vary depending on the region and quality con-
gage suppliers, which cover more than 80 percent of budget
ditions. Regardless of the species, all of the wood originates from
spend on procurement, to improve their sustainability perfor-
sustainable forest operations that are certified or controlled ac-
mance. As a measure for this target Lenzing has begun to include
cording to the leading forest certification schemes. An overview of
sustainability clauses in the contractual conditions for its key chem-
the most important tree species per region can be found in the An-
ical suppliers. Some of these conditions include setting GHG re-
nex. Lenzing ensures that the bleaching process of all purchased
duction targets approved by the Science Based Target initiative, to
pulp is totally chlorine-free (TCF) or elemental chlorine-free (ECF).
provide information about the product carbon footprint and water
scarcity at facilities where Lenzing sources products.
Lenzing Group’s Wood and Pulp Policy
In its Wood and Pulp Policy, Lenzing is committed to procuring
The overall EcoVadis Score achieved by the Lenzing Group’s sup-
wood and dissolving wood pulp exclusively from non-controversial
pliers (52.3) is higher compared to the average EcoVadis Score
sources. The supply of wood and pulp of a specified quality and
(44.8). This indicates that Lenzing’s suppliers have a higher sustain-
quantity to all of the Group‘s pulp and fiber production sites is an
ability performance according to EcoVadis standards than the av-
important part of the Lenzing Group’s core business. Lenzing
erage total suppliers assessed by EcoVadis.
strives to source wood and pulp exclusively from non-controversial
sources, preferring suppliers participating in credible forest certifi-
Number of suppliers responding to EcoVadis
cation programs, in particular the Forest Stewardship Council® questionnaire since the introduction of the
(FSC®) and Programme for the Endorsement of Forest Certifica- assessment in 2017 Table 16
tion (PEFC).
2017 82
2018 93
Controversial sources include wood derived from:
2019 102
2020 152
● illegal logging or the trade in illegal wood or forest products
2021 163
● the destruction of high conservation values in forestry opera-
2022 387
tions, including ancient and endangered forests, and endan-
gered species habitats
● plantations established after 1994 through significant conver-
Regionalitya of purchased chemicals
sion of natural forests or conversions to non- forest use
● the introduction of genetically modified organisms in forestry Regionally Not regionally
operations purchased purchased
● the violation of traditional, community and/or human rights 2020 95 % 5%
● any violation of the ILO Core Conventions as defined in the ILO 2021 94 % 6%
Declaration on Fundamental Principles and Rights at Work. 2022 73 % 27 %
a) Regionally is defined as the same country and neigboring countries as significant
Regular risk assessments, audits, on-site visits, and independent sites of operation. Significant sites of operation include all production sites of the
third-party certification of sustainable forest management pro- Lenzing Group.
grams ensure compliance with the policy and Lenzing’s commit-

80 percent of all purchased chemicals are sourced from fewer than
ment to no-deforestation.
60 suppliers. Relationships with these suppliers are highly stable. In
51
52 Sustainability
Group
2022 around 73 percent of the chemicals were sourced regionally countries due to low felling rates. Exceptions in recent years were
for the Lenzing Group, meaning that they were sourced from the caused by natural disturbances such as storm events and subse-
same country as the production facility or the neighboring country. quent bark beetle outbreaks. Utilization of beech wood to manu-
This was lower than in previous years (table 17), due to non-availa- facture fibers provides relatively high value creation versus wood
bility of caustic soda in the European market. Therefore a record used for energy generation, as several products can be created be-
level of caustic soda was imported from other regions. sides the fibers and energy, such as acetic acid, making it an im-
portant economic factor for the regeneration of forests with more
deciduous species. This transition is also crucial for adapting forest
Regional wood supply in Europe ecosystems in Central Europe to climate change through greater
species diversity 18 19.
[GRI 204-1; ESRS E4-5]
In order to ensure short transportation distances and short delivery

The Lenzing site (Austria) mainly uses beech wood plus small
times, almost all the wood required originates regionally. Regional 20
amounts of other hardwoods and spruce, whereas the Paskov plant
wood accounted for 94.5 percent in 2020, 95.2 percent in 2021,
(Czech Republic) mainly uses spruce. Lenzing is committed to the
and 93.8 percent in 2022 for the site in Lenzing. For the Paskov site,
cascading use of wood, and primarily makes use of timber gener-
the regional supply rate has increased to 100 percent since 2019.
ated from small trees through thinning and sections of large trees
For the underlying figures, please see the Annex.
that are unsuitable for high-grade products, such as furniture or
construction.
Wood from Poland was exclusively sourced with FSC® certificates
Wood sourcing for the Lenzing Group’s own pulp mills in 2021 and up to three-quarters from 2022, as some districts from
in Lenzing (Austria) and Paskov (Czech Republic) Polish State Forests announced their decision not to renew their
Beech and spruce by country, 2020–2022. Forest Management certificates from FSC®21.
“Other countries” for Lenzing sites are France,
Switzerland, and Poland. Figure 15
Lenzing Pulp Mill Local wood supply in Brazil

100
Other countries In preparation for the pulp factory construction, the LD Celulose
80 Slovenia joint venture secured FSC®-certified plantations 22 covering more
Hungary than 47,000 hectares to provide the necessary biomass. Currently
60 Slovakia around 78,000 hectares of plantation are managed including
Czech Republic around 17,000 hectares of protected area which are not used for
40
Germany wood sourcing but ensure the protection of flora and fauna. These
20 Austria plantations operate completely in accordance with the guidelines
and high standards of the Lenzing Group for sourcing wood and
0 pulp as well as the requirements of the leading certification
2020 2021 2022
schemes.
Paskov Pulp Mill
The forest unit responsible for supplying LD Celulose’s wood is in
100 Triângulo Mineiro in the State of Minas Gerais. The area that was
transformed into the LD Celulose plantation unit has been used for
80
cattle raising, intensive agricultural activities, and eucalyptus for-
60 Germany estry since the 1970s. No native (primary) forest was converted for
Austria establishing the LD Celulose plantation. The plantations are more
40 than 800 kilometres from the region that comprises the Amazon
Poland
Slovakia rainforest.
20
Czech Republic
0 Key aspects that compelled Lenzing to enter into the LD Celulose
2020 2021 2022 joint venture with Dexco in Brazil were its track record and reputa-
tion for environmentally responsible forest management, its tradi-
Regional wood supply originates from the country where the pulp mill is situated
and from neighboring countries from which wood can be transported directly tion of respect for the environment, its experience in responsible
without crossing a third country. and productive forest management, and its extensive knowledge
of the Brazilian Forestry Code, which is one of the most stringent
The percentage of broadleaf forest, especially beech, is increas- in the world. Lenzing makes a point of only working with certified
ing 17 in wood-sourcing countries as forests are being transformed and controlled wood sources to ensure supply chain sustainability.
back to a more natural mix of tree species, contributing to climate
change resilience. The area devoted to spruce cultivation is de-
creasing, although stocks are still increasing in most sourcing
17 Schwarzbauer, P., and Wittmann, F. (2018). Basic Indicators for the Sustainability of European Fo- 19 FOREST EUROPE 2020. Adaptation to Climate Change in Sustainable Forest
restry. In: Lenzinger Berichte 94 (2018), 1-13. Available at: Management in Europe, Liaison Unit Bratislava, Zvolen, 2020.
www.lenzinger-berichte.com [Accessed 15 February 2021] 20 Regional wood supply originates from the country where the pulp mill is situated and from neigh-
18 Niedermair, M., Lexer, M. J., Plattner, G., Formayer, H. and Seidl, R. (2007). boring countries from which wood can be transported directly without crossing a third country.
Österreichische Bundesforste AG. Klimawandel und Artenvielfalt. Wie klimafit sind Österreichs 21 FSC license code: FSC-C006042
Wälder, Flüsse und Alpenlandschaften? Available at: https://www.bundesforste.at/fileadmin/publi- 22 FSC license code: FSC-C006042
kationen/studien/Klimastudie_WWF.pdf
[Accessed 15 February 2021]
52
53 Sustainability
Group
This commitment is being maintained at LD Celulose with Dexco’s Pentatrains
forest management expertise. The use of pentatrains, which have five cargo boxes instead of the
convential three, represents a productivity increase of more than
The Dexco Forest Management Plan was adopted, which is re- 50 % compared to tritrains. This could lead to a reduction of 5,600
sponsible for ensuring compliance with Forest Stewardship Coun- trips on highways and savings of up to 220,000 liters of Diesel an-
cil (FSC®) certification criteria. The FSC® certificate provides the nually. This has already been implemented in Brazil and it is planned
assurance that LD Celulose's forest management work takes ac- for LD Celulose to have a fleet of 15 pentatrains to transport wood
count of aspects such as respect for the rights of indigenous peo- from the plantations.
ple, the wellbeing of the professionals who work in the forest and
local communities, the reduction of environmental impact, and the New software for wood purchasing ensures greater
promotion of native forest conservation and restoration efforts. transparency and facilitates the logistics process
Lenzing cooperates with NGOs, such as Canopy, to assess the sus- There are many process steps between the felling of a tree to the
tainability of its wood supply chain. All these measures ensure that delivery of wood to the plant in Lenzing (Austria). The wood must
wood sourcing is in line with Lenzing’s Wood and Pulp Policy and be labeled, and around 80 rail wagons and 80 trucks must be di-
grounded in sustainable practices. rected to Lenzing’s site every day. All of this requires an elaborate
Europe-wide logistics process and special software that guaran-
The start-up of the pulp mill was completed in 2022. Since tees the smooth flow of information between the individual sta-
Lenzing’s own demand for wood has not yet reached the full tions.
amount, some timber harvested from the plantation is sold to the
market as logs for saw mills, chips for particle board, and biomass In order to make contract management, wood trading and pur-
fuel for drying processes. chasing, logistics and control simple and transparent, the decision
was made to switch to a new special software system. In 2019, the
first milestone was reached with the implementation of electronic
Transport and logistics bill delivery.
As Lenzing implemented its decarbonization strategy, the com- Another important milestone was contract management, which
pany shifted the transportation of some inbound materials from went live in June 2022. This involved the electronic creation of
road to rail transport and shipping to improve its CO2 footprint. This contracts, including electronic approvals and signatures, as well as
means for example that the transportation of sulfur purchased from the associated document management. This milestone will make
one supplier was switched from road to rail, totaling approximately future work much easier and more transparent, and is an important
15,000 tons of sulfur per year. step towards a paperless office for the wood purchasing depart-
ment.
Lenzing’s wood logistics system moves large quantities of material
and is therefore highly cost-optimized. Continuous improvement in
this area also minimizes emissions from logistics by favoring train Procurement management
transport wherever possible.
[GRI 302-8]
Ship to Zero campaign – carbon-neutral shipping

Wood, pulp and chemicals purchasing are handled by three differ-
Lenzing piloted carbon-neutral shipping in October 2021, collabo-
ent teams within the Lenzing Group (Wood Procurement, Pulp
rating with Good Shipping during COP26 (UN Climate Confer-
Trading GmbH, and Global Purchasing). Lenzing aims to minimize
ence). The joint goal of several companies was to achieve a CO2
purchasing risks such as major price fluctuations and supply bot-
reduction of 4,000 tons, equivalent to a journey from Rotterdam to
tlenecks through reliable, long-term supply relationships and active
Glasgow by ship. Lenzing’s contribution involved reducing 50 tons
supplier management.
of CO2. In 2022 Lenzing established a sustainable logistics trans-
portation system involving break bulk mode transport thereby re-
ducing CO2 emission by at least 15 percent versus container mode Supplier selection and evaluation are based on economic, quality
of transport, making the transport of dissolving wood pulp from as well as environmental, social, and governance (ESG) criteria.
Brazil to China more efficient. In 2023 it is planned to ship around
90 percent of pulp by break bulk and around 10 percent by con- The most important materials procured are (in order of annual pro-
curement volume): wood, dissolving wood pulp, caustic soda, sul-
tainer.
furic acid, sulfur, carbon disulfide, sulfur dioxide, and magnesium
High Performer Award from the EPA Smart-Way® oxide.
Transport Partnership 23
This award was given twice to the site in Mobile (US) in 2020 and
2021. SmartWay Partners submit efficiency and air quality perfor-
mance data to the US Environmental Protection Agency (EPA) an-
nually. EPA aggregates and divides the data into five ranked per-
formance ranges. SmartWay High Performers are partners whose
efficiency and/or air quality performance falls within the top-
ranked performance range.
23 SmartWay High Performers: Shippers | SmartWay | US EPA
53
54 Sustainability
Group
TRAINING OF BUYERS PROJECT “LINDE GREEN”
In order to build deeper knowledge about sustainable procurement, es- Lenzing decided to integrate Linde green air gases into its production
pecially about the carbon footprint, scope 3 emissions and the life cycle process in the reporting year to reduce CO2 emissions compared to a
assessment of purchased products, two trainings within the Lenzing conventional production process. By sourcing renewable industrial
Group were held in 2022. The aim was to support buyers in embedding gases from Linde which are produced from 100 percent renewable en-
sustainability aspects in decision making processes and negotiations ergy, Lenzing contributes to significantly reduced emissions by saving
with suppliers. The training covered topics such as requirements on car- more than 2,400 tons of carbon emissions annually.
bon management, carbon footprint calculation, major carbon sources
and sustainable attributes of products.
In order to fulfil Lenzing’s ambitions for supply chain due diligence and
to increase supplier engagement, the global purchasing team is being
continuously trained for EcoVadis either by EcoVadis platform training Supplier evaluation
sessions or internally (using EcoVadis website information source). Pur-
chasers affected have access to the EcoVadis platform, so that they can [GRI 308-1]
further develop their knowledge in sustainability areas via the EcoVadis
academy available.
All suppliers are evaluated for sustainability in the production chain.
Lenzing conducts regular audits as well as specific evaluations of
both new and established suppliers for sustainability including
compliance with environmental and safety standards. Suppliers are
interviewed regularly and evaluated under environmental and
Lenzing’s Global Supplier Code of Conduct safety aspects with the support of external experts. A final assess-
ment is then conducted. It affects the overall supplier assessment
All of the Lenzing Group’s suppliers must comply with the Lenzing and constitutes a major criterion for long-term cooperation with
Global Supplier Code of Conduct. Wood and pulp suppliers addi- suppliers. In 2022, when screening for risk suppliers no Lenzing
tionally comply with its Wood and Pulp Policy. In this policy Lenzing suppliers were identified as having significant actual and potential
gives preference to suppliers compliant with FSC® or PEFC stand- negative environmental impacts, however one contractor of the fa-
ards. Lenzing expects its suppliers to conduct all operations with cility in Indonesia was expelled due to incompliance (falsification
respect to health and safety at work, labor and human rights, envi- of certificates).
ronmental protection, ethics and management practices. To ensure
compliance with this Code, suppliers are required to allow Lenzing Lenzing’s most relevant suppliers are those that have an increased
and/or any of its representatives to have access all their facilities risk due to their size and volume. They represent 80 percent of
and to all relevant records upon advance notice and to carry out global purchasing volume including dissolving wood pulp but ex-
assessments through supplier assessment tools. cluding pulpwood. The EcoVadis online tool is used to evaluate
these non-wood suppliers. Evaluations of the non-wood suppliers
Supplier management Active negotiations with suppliers regarding found no violations of environmental, social or ethical standards
their engagement for sustainability assessment are in progress. In that could have led to the termination of existing supply contracts
2022, more than 300 suppliers were assessed on the basis of social in the reporting year. Pulpwood suppliers are evaluated using a due
and environmental criteria through the EcoVadis tool. This number diligence system based on FSC® Controlled Wood criteria.
has doubled comparing to the previous year since Lenzing stepped
up its efforts to involve suppliers. Strategic dissolving wood pulp suppliers are evaluated periodically.
In 2022, no on-site audits were conducted due to the COVID-19
In Germany, a new Supply Chain Due Diligence Act will come into pandemic. The sustainability performance of pulp suppliers is an-
effect in 2023. The European Union (EU) is simultaneously working nually investigated using a comprehensive questionnaire covering
on an EU-wide Supply Chain Act that requires EU companies to aspects such as procurement standards, supply chain and supply
carefully manage social and environmental impacts along their en- areas, engagement and GHG emissions, amongst others. The re-
tire value chain. Lenzing is already preparing for the new regulation sults of the survey will be used to identify the key sustainability is-
to ensure compliance and the fulfilment of corporate due diligence sues and guide Lenzing’s future supplier engagement activities.
obligations along the supply chain with regard to human rights and
the environment. A vision and strategy for sustainable procurement All wood suppliers – totaling more than 600 in 2022, half of which
are currently being formulated together with a process for the next are private owners – in all sourcing countries are assessed once a
steps to establish a comprehensive risk management system. year against FSC® Controlled Wood and PEFC Controlled Sources
criteria. All of the pulp suppliers are certified by the leading forest
certification schemes and supply Lenzing with certified or con-
trolled pulp.
In addition, Lenzing assessed the maturity of its own procurement

management system and processes to gain a shared understand-
ing of what is needed to further integrate sustainability criteria into
its procurement and supplier management processes.
Workshops took place with several departments to reach a com-

mon ground on upcoming legal requirements (e.g. German Supply
Chain Act) and stakeholder expectations related to supply chain
54
55 Sustainability
Group
sustainability and due diligence. Based on the results of the ma-
turity review and the internal discussions about future require-
HOT BUTTON REPORT 2022
ments, Lenzing is now developing the next steps to further improve
In 2022 Lenzing achieved the first place in the “Hot Button Ranking”
supplier sustainability performance.
from CanopyStyle, a ranking of the world’s 34 largest producers of cel-
lulosic fibers in terms of sustainable wood and pulp sourcing. This report
Pulpwood and dissolving wood pulp confirmed a low risk of sourcing from ancient and endangered forests
certifications for Lenzing, which is the best possible category. However Lenzing has
added new suppliers which might increase the potential risk. Lenzing is
in constant communication with suppliers to keep this risk as minimal as
Lenzing’s wood procurement management system ensures that all possible. Since Lenzing’s woods sourcing in Brazil exclusively originates
from plantations owned and managed by LD Celulose, there is no risk
wood destined for the production of pulp is sourced from legal and
of illegal logging. Prior to the establishment of the pulp mill in Brazil an
sustainably managed sources. Lenzing demonstrates that the environmental impact assessment confirmed that no indigenous settle-
wood sourcing complies with its high standards through verifica- ments are in the vicinity of the plant.
tion based on FSC® and PEFC certification systems (figure 16).
More than 99 percent 24 of wood and dissolving wood pulp used
by the Lenzing Group is either certified by FSC® and PEFC or con-
trolled and inspected in line with these standards (figure 17). Wood
and pulp procurement faces annual surveillance/recertification au- The following figures show the certification status of all wood or
dits of the FSC® and PEFC systems. pulp input into Lenzing’s fiber production, whether obtained di-
rectly through its own procurement for in-house dissolving wood
pulp mills or indirectly through dissolving wood pulp suppliers. All
Lenzing Group production sites are FSC® CoC (Chain of Custody)
certified. The group certification for PEFC CoC currently covers
five sites. Purwakarta, Nanjing and Mobile have successfully been
added due to growing market interest in certified fibers and cus-
tomers’ expectations (table 18
Certification status of Lenzing operations – Chain of custody Table 18
Site Country Main products FSC® CoC PEFC CoC
Lenzing Austria Viscose, modal, lyocell, dissolving pulp • •

Paskov Czech Republic Dissolving pulp • •
Purwakarta Indonesia Viscose • •
Nanjing China Viscose, modal • •
Heiligenkreuz Austria Lyocell • n.a.
Grimsby United Kingdom Lyocell • n.a.
Mobile USA Lyocell • •
Prachinburi Thailand Lyocell • n.a.
Indianópolis Brazil Dissolving pulp • n.a.
PEFC is mainly used for wood sourced from Central Europe, FSC® Certification status Figure 16
certification of forests is not widespread in this region. Therefore,
most wood sourced is procured with a PEFC certificate and re-
ceives FSC® Controlled Wood status at Lenzing sites after a due 34.1% 24.2%
diligence process. The Lenzing site has held the PEFC Chain of FSC® PEFC
Custody certification as its main certificate for more than a decade. Controlled Wood
Since 2016, this has been complemented by a FSC® CoC (Chain of 3.5%
Custody) certificate that covers all Lenzing production sites. All FSC 100%
wood input to the Lenzing Group is either certified or controlled by
the FSC® certification system (figure 18). 0.8% FSC® CW
37.4%
no claim
FSC® Mix
The decrease in certified wood input and increase of FSC® Con-
trolled Wood in 2021 and 2022 was due to necessary supply ad-
justments. On the other hand, for the first time some 100 percent Certification status of total wood input at Lenzing fiber production sites via own
and purchased dissolving wood pulp. Basis: dissolving wood pulp by weight.
of FSC® certified pulp entered the supply chain from LD Celulose. The site in Thailand could be FSC certified only after the ramp up of the facility.
Therefore the amount of "no claim" has risen, as the pulp during that time was not
certified.
24 See figures 16-18 for details of the remaining less than 1%. Part of this is due to the formal process of certify-
ing the new site. A small amount of non-certified wood was used for R&D purposes and was sub-
mitted to a due-diligence process according to Lenzing’s Wood and Pulp Policy.
55
56 Sustainability
Group
Certification status – overall certified and controlled Pulp suppliers can hold more than one forest related certificate.
wood Figure 17
Most of the pulp suppliers located in North America also carry cer-
tification from the Sustainable Forest Initiative (SFI), which is also a
national member of and fully endorsed by the global PEFC certifi-
cation scheme.
34.1%
Controlled For detailed explanations of the certificates, controlled wood, and
65.1%
the internal due diligence system, please see the “Wood and pulp”
Certified
focus paper.
0.8% FSC® CW
Since forestry operations in Central Europe are generally small-
no claim
scale, many small forest owners harvest wood for additional in-
come and do not participate in a certification process. Therefore,
Lenzing needs to procure reliable but limited quantities of such
“Certified” is the sum of “FSC® Mix” and “PEFC” and represents the amount of
pulp available to make fibers with the corresponding Chain of Custody certificate. wood other than that certified to FSC® or PEFC. This category of
The site in Thailand could be FSC certified only after the ramp up of the facility. wood is inspected in line with these standards. Strict forestry laws
Therefore the amount of "no claim" has risen, as the pulp during that time was not
certified. and enforcement in Central Europe also require all forest owners
to pursue sustainable management. The Lenzing Wood and Pulp
Certification status – FSC® Mix and FSC® controlled Policy and Supplier Code of Conduct are part of all wood purchas-
wood Figure 18 ing activities and are presented to potential suppliers before the
start of a business relationship. Deliveries can only be made to
Lenzing if these conditions are accepted.
37.4% The Lenzing due diligence system for wood and pulp procurement
FSC® Mix includes regular formal audits. However, ongoing, day-to-day, in-
58.3%
formal, personal contact between Lenzing’s procurement team
FSC® CW and suppliers is even more important. Supplier contracts can be
0.8% total
terminated in response to severe sustainability findings. This has
no claim FSC® CW
happened occasionally in the past when suppliers failed to remedy
3.5% certain issues. In 2022 no such cases occurred.
FSC 100%
“FSC® CW Total” is all controlled wood, FSC® Controlled Wood, plus PEFC
certified wood that has been accepted as FSC® Controlled after the Lenzing due
diligence process. The share of FSC® Mix represents the amount of pulp supplied
with an FSC® Mix Chain of Custody certificate. The site in Thailand could be FSC
certified only after the ramp up of the facility. Therefore the amount of "no claim"
has risen, as the pulp during that time was not certified.
56
57 Sustainability
Group
Biodiversity & ecosystems
Material topic: Biodiversity & ecosystems

[GRI 3-3; ESRS E4-2, E4-3]
The World Economic Forum identifies the loss of biodiversity as one of the top three systematic risks to people and the planet. Investment in the protection
of biodiversity is also critical to the success of Lenzing’s business. Wood is the most important raw material for Lenzing. The main source of potential impact
from the Lenzing Group’s operations and supply chain is therefore connected to land use by forestry. Negative effects on biodiversity can arise from intensified
utilization of forests. On the other hand, the positive effects of sustainable forest management on biodiversity and ecosystems are well known 25 and can be
further explored and implemented. The company therefore continues to innovate in the fields of responsible systems, processes and products that mitigate
risks to the natural environment. Lenzing’s innovation in fiber production also provides end-of-life solutions for textile and nonwoven products. In 2021, the
company received further confirmation from Scripps Institution of Oceanography at the University of California, San Diego that the most common LENZING™
fibers (LENZING™ Viscose Standard, LENZING™ Lyocell Standard and LENZING™ Modal Standard) are biodegradable. Lenzing also joined the Textile
Exchange’s Advisory Group for the Biodiversity Benchmark, which supports companies in understanding and mitigating their impact on nature.

• Lenzing addresses biodiversity preservation through one of two
–
approaches, depending on the global region:
• Sustainably managed forestsin the Northern
hemisphere by Lenzing’s wood and pulp suppliers
Positive in Europe and North America
• The protection of biodiversity and ecosystems plays a crucial • Plantation forestry is conducted mainly in the
role in climate change mitigation Southern hemisphere by Lenzing’s pulp supplier in
• Maintaining and improving the function of forests in their eco- South Africa and by the new pulp plant in Brazil
systems while ensuring the long-term availability of wood as a • Using wood from sustainably managed semi-natural
raw material forests supports biodiversity
• Cellulosic materials offer a biodegradable alternative to plastics, • When sourcing from plantations, considerable efforts
helping to reduce the impact of lost materials on ecosystems, are made to set aside conservation areas to protect
water and soil compared to plastics, which have not been dis- and maintain biodiversity
posed correctly
–
• By implementing circular thinking and high environmental
standards (Lenzing Group Environmental standards based on EU
BAT and EU ecolabel certifications) in Lenzing's operations,
Negative procurement and innovations, the company minimizes the impact
Business relationships: on ecosystems
• Loss of biodiversity in poorly managed forest ecosystems • Lenzing has been working for many years with NGOs, customers
• The loss of biodiversity could also lead to a significant change in and partners along the downstream value chain to raise public
available wood species for fiber production awareness of biodiversity and take conservation measures to pre-
serve it
–
• Worst case scenarios consider potential breakdowns of entire
forest ecosystems at the regional level and correspondingly high
volatility in wood prices
–
For more information, please see the “Sustainability targets, measures and
Policies and commitments progress” chapter.
–
• Strict Wood and Pulp Policy
• Centrally managed wood and pulp procurement
• CanopyStyle Initiative
Stakeholder
• Wood suppliers
• Global Lenzing Supplier Code of Conduct
• NGOs
• Global Code of Business Conduct
• Textile Exchange (TE) Biodiversity Benchmark
• Group Environmental Standard
• Forest certificates
• Sustainability strategy “Naturally positive”
• Policymakers
• Lenzing Group Sustainability targets
–
• CDP Forests
• Wood K plus
Actions taken
–
• The Lenzing Group has joined the Advisory Group of Textile Ex-
change Biodiversity Benchmark
• Lenzing proactively participates in conservation projects to pro- Responsible
tect the world’s ecosystems
• Member of the Managing Board (Pulp)
• CDP forests, climate change, and water security: triple “A” rat-
ing, which is the best achievable outcome • Senior Director Purchasing Wood
25 Kunz 2007: Artenschutz durch Habitatmanagement. chapter 6.2 Wiley-VCH
57
58 Sustainability
Group
• Lenzing achieves the highest Hot Button category by the Canopy • VP Commercial Affairs Pulp
•
•
Style initiative, the dark green shirt, for the third time
Lenzing participates in the Circular Fashion Partnership
Biodegradability of LENZING™ fibers confirmed by renowned
–Supporting
marine research institute at the University of California, San Di- • Pulp Trading (PTG)
ego – effective alternative against environmental pollution from • Corporate Sustainability
plastic waste
Lenzing as a leading cellulose fiber manufacturer is focusing on

Biodiversity and Lenzing’s impacts three areas: its wood and pulp sourcing, production processes, and
and dependencies products’ end of use, in order to address biodiversity loss.
[GRI 304-2; ESRS E4-5] Biodiversity and ecosystem improvement:

targets and actions proposed by the SBTN
Biodiversity is defined in a recent report by IPCC and IPBES (Inter-
governmental Science-Policy Platform on Biodiversity and Ecosys- To respond to the pressures on nature by taking positive action, the
tem Services) 26 as “the variability among living organisms from all Science Based Targets for Nature Initiative introduced the Action
sources including terrestrial, marine and other aquatic ecosystems Framework with five key types of actions: “Avoid – Reduce – Re-
and the ecological complexes of which they are a part”. Human store and Regenerate – Transform” in its Initial Guidance for Busi-
livelihood and wellbeing depends in many ways on the contribu- ness (2020) 32 . This scheme was also adopted by the Textile Ex-
tions from living organisms and ecosystems, as they offer services change Biodiversity Benchmark.
beyond nutrient cycling and can also serve as recreational areas.
Without safe-guarding biodiversity and ecosystems, there is no The AR³T framework of Science based targets for
prosperity for future generations. There are strong links between naturea Figure 19
climate change, land use, pollution and biodiversity.
The World Economic Forum identifies biodiversity loss and natural

Transform
resource crises as two of the top five existential threats to the
economy, people, and planet in the long term (5-10 years) 27. Global
Restore &
biodiversity loss has recently moved into the focus of the sustaina- Regenerate
bility debate in many industries, including the textile and nonwoven
sector.
Reduce
According to the IPBES, pressures on nature leading to loss of bi-
odiversity and ecosystem functions are categorized into five Avoid
groups (IPBES 2019 28 as cited by Science-based Targets for Nature
(SBTN) 29):
1. Land/ water/ sea use change
2. Resource exploitation a) Science-based targets for nature. Initial guidance for businesses. 2020
3. Climate change
4. Pollution
5. Invasive species
In the context of global biodiversity loss, the textile and apparel in-
dustry has recently become more aware of its contribution to this
problem 30 31. The focus is on the agricultural production of natural
fibers (mainly cotton) and pollution issues related to fiber produc-
tion and textile processing, although wood sourcing from forests is
also seen as a potential cause of biodiversity loss. Products have
potential negative impacts at the end of their life due to waste pol-
lution in land and water ecosystems, especially via non-biode-
gradable materials that are leaked into the environment.
26 IPBES-IPCC 2021: Scientific outcome of the IPBES-IPCC co-sponsored workshop on biodiversity and climate change
27 WEF Global Risk Report 2021
28 IPBES 2019: Global assessment report on biodiversity and ecosystem services of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. E. S. Brondizio, J. Settele, S. Díaz, and
H. T. Ngo (editors). IPBES secretariat, Bonn, Germany. https://ipbes.net/global-assessment
29 Science-based targets for nature. Initial guidance for businesses. 2020.
30 Textile Exchange, Biodiversity Insights Report 2021. https://mci.textileexchange.org/biodiversity/insights/
31 Global Fashion Pact, Transforming the industry. 2020. https://thefashionpact.org/wp-content/uploads/2020/10/038906e111abca13dce4c77d419e4f21.pdf
32 Science-based targets for nature. Initial guidance for businesses. 2020
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59 Sustainability
Group
Framework of actions for nature, from SBTN Lenzing`s biodiversity targets
(2020)a Table 19
Avoid In the presentation of Lenzing’s biodiversity and ecosystem related

Prevent impact from happening in the first place: prevent the impact entirely targets and measures at this point in time, the AR3T framework
Reduce (A
Avoid, Reduce, Restore, Regenerate, T ransform) is considered a
Minimize impacts, but without necessarily eliminating them
useful sorting scheme. That said, the development of a compre-
Restore
Initiate or accelerate the recovery of an ecosystem with respect to its health, hensive and systematic approach to biodiversity and ecosystems
integrity, and sustainability, with a focus on permanent changes in its state is planned for the Lenzing Group, in line with Sustainability Target
Regenerate 8 (table 20).
Take measures designed to increase the biophysical function and/or
ecological productivity of an ecosystem or its components within existing land
uses, often with a focus on a few of nature’s specific contributions to people Several targets have been derived from the Sustainability strategy
(e.g. regenerative agriculture often focuses on carbon sequestration, food
production, and nitrogen and phosphorus retention) and the Better Growth strategy, containing elements that positively
Transform influence biodiversity and ecosystem services or nature’s contribu-
Take measures contributing to system-wide change, notably to alter the tions to people.
drivers of nature loss, e.g. through technological, economic, institutional, and
social factors and changes in underlying values and behaviors
a) Science-based targets for nature. Initial guidance for businesses. 2020
SBTN’s framework for action and Lenzing’s approach
Category of action Reference Lenzing’s approach
Lenzing explicitly commits to avoiding deforestation in the procurement

Avoid Wood and Pulp Policy criteria of the Wood and Pulp Policy
To offer viscose, modal and lyocell staple fibers with up to 50 percent post-
Reduce Sustainability Target 2 consumer recycled content on a commercial scale by 2025
To implement a conservation solution of 20 ha in Albania in combination
Restore Sustainability Target 6 with a social impact project by 2024
To implement conservation solutions on 15,000 ha at the new pulp site in
Sustainability Target 7 Indianópolis (Brazil) by 2030
To engage in further conservation, biodiversity protection, and restoration
Regenerate & Transform Sustainability Target 8 activities in regions where forests are at risk or should be improved by 2025
Regular risk assessments, audits, on-site visits, and independent

Lenzing`s actions third-party certification of sustainable forest management pro-
grams ensure compliance with the policy and Lenzing’s commit-
Avoid: biodiversity due diligence via ment to no-deforestation. For more information, please see the
sustainable sourcing “Wood and pulp” focus paper.
Wood and dissolving wood pulp are Lenzing’s most important raw Forest certificates
materials. The Lenzing Group assumes responsibility by focusing Lenzing’s wood procurement management system ensures that all
on sustainable sourcing. Lenzing only sources wood and dissolving wood is sourced from legal and sustainably managed sources.
wood pulp from semi-natural forests and plantations (as defined by Lenzing demonstrates that wood sourcing complies with its high
the Food and Agriculture Organization of the United Nations 33 ). standards through verification based on FSC® and PEFC certifica-
Moreover, it does not source materials from natural or ancient and tion systems. All wood and dissolving wood pulp used by the
endangered forests. Lenzing Group is either certified by FSC® and PEFC or controlled
in line with these standards (see figure 16 in the “Raw material se-
Lenzing Group’s Wood and Pulp Policy curity” chapter).
In its Wood and Pulp Policy 34, Lenzing is committed to procuring
wood and dissolving wood pulp exclusively from non-controversial The forest certificates held by the Lenzing Group cover general cri-
sources. teria for biodiversity and forest ecosystem protection according to
international standards. Additional criteria can be found in the na-
In order to protect the world’s remaining ancient and endangered tional standards which vary between countries. For example, the
forests as well as the biodiversity and ecosystems’ integrity within percentage of area set aside for conservation varies between
these forests, Lenzing is committed to avoiding the use of wood countries and even regions within countries.
and pulp containing wood sourced from regions such as the Cana-
dian and Russian Boreal Forests, Coastal Temperate Rainforests, For details on wood and pulp certification, see the “Raw material
tropical forests and peatlands of Indonesia, the Amazon and West security” chapter.
Africa.
33 Carle, J., and Holmgren, P. (2003). Working paper 79. Definitions Related to Planted Forests. In: 34 https://www.lenzing.com/fileadmin/content/PDF/08_Corporate_Governance/Richtli-
Food and Agriculture Organization of the United Nations (2003). Forest Resources Assessment Pro- nien_und_Kodizes/EN/Wood_Pulp_Policy_EN.pdf [Accessed 15 February 2021]
gram Working paper series. Available at: http://www.fao.org/forestry/25853-
0d4f50dd8626f4bd6248009fc68f892fb.pdf [Accessed 15 February 2021]
59
60 Sustainability
Group
Reduce: via circular economy approaches and joint venture project with Dexco (formerly Duratex) in Brazil, wood
climate targets is sourced from FSC®-certified plantations of currently more than
70,000 hectares. Plantation forestry can reduce deforestation
The aim here is to use fewer inputs from natural resources, and to pressure on natural (primary) forest areas by providing wood at very
minimize the impact of greenhouse gas emissions and pollution. high yields per unit area as an alternative to sourcing it from natural
forests. FSC® certification entails management criteria to protect
Pollution prevention biodiversity 35 , as determined in detail in the national standards.
In accordance with the strategic focus area of “Greening the value Management practices include a certain percentage of reserved
chain”, the Lenzing Group has targets and programs in place to re- conservation areas.
duce emissions affecting water and air. One example is the imple-
mentation of closed loop water and chemical cycles. Lenzing also Biodiversity and ecosystem status monitoring in the Lenzing Group
follows the Changing Markets roadmap for the man-made fibers is performed in the global regions via two different approaches.
industry. All viscose production sites have been assessed through These approaches (in Europe and in Brazil) are explained below:
the Zero Discharge of Hazardous Chemicals (ZDHC) scheme. The
ZDHC man-made cellulosic fibers guidelines version 2.0 was pub- In Europe, biodiversity is monitored at a national level according to
lished on the 3rd of January 2023 and now also includes lyocell. the Forest Europe Criteria. Results are published regularly in the
European overview 36 37. Recent reports paint a mixed picture of the
Resource use success and issues still to be resolved. The measures to be taken
Lenzing is committed to the cascading use of wood. This means are better understood thanks to intensive research activities.
that different qualities of wood are utilized for different applications
in a hierarchy of their value. Lenzing uses timber generated from The pulp mill in Brazil is supplied with wood from plantations
small trees through thinning and from parts of large trees that are owned and maintained by LD Celulose. To ensure that the planta-
unsuitable for high-grade products, such as furniture or construction management maintains compliance with the requirements of
tion. Furthermore, wood chips that are a by-product of saw mills the Brazilian Forest Code, LD Celulose has a framework of internal
are also used. and external processes. There are ongoing biodiversity monitoring
projects in which data on local biodiversity and the potential ex-
Lenzing’s biorefinery processes produce dissolving pulp as the pansion of invasive species is monitored. The internal GIS (Geo-
main product, as well as several biorefinery products and renewa- graphic Information System) team collects satellite imagery on an
ble energy. This results in 100 percent utilization of the wood. For annual basis and evaluates the location, size and status of the Legal
details, please see the “Responsible production” focus paper. Reserve areas (LRs) and Permanent Preservation Areas (APPs) on
the managed land. The data is also provided to the field teams in
Recycling fibers and textiles reduces the input of virgin raw mate- the form of maps. Furthermore, periodic field audits by our envi-
rials such as wood. Well-developed technologies can also reduce ronmental specialists ensure that the quality of LRs and APPs is
the consumption of other inputs such as chemicals and energy. maintained.
This is true for Lenzing products made with recycled materials, e.g.
via the REFIBRA™ or Eco Cycle technology, both of which have LD Celulose is aware of the diversity of flora and fauna found in its
lower carbon footprints than fibers conventionally produced from forest areas. Dexco started its biodiversity research projects in its
virgin material (Higg MSI score). managed areas in the 1970s. LD Celulose has continued to monitor
flora and fauna in the areas that have remained under its manage-
For details, please see the “Circularity & resources: Commercial- ment and those directly influenced by the mill site through partner-
scale recycling technologies” chapter. ships with universities 38 , in addition to internal programs. These
programs are carried out annually in the dry and rainy seasons and
aim to monitor possible impacts on local biodiversity. The pro-
Assessment: state of Lenzing’s grams are also required by the Brazilian environmental agency.
influence and dependencies on
Pulp suppliers apply their own monitoring schemes.
biodiversity and ecosystems
[GRI 304-1, 304-2; ESRS E4-5] Attempts to quantify impacts from land use on biodiversity usually
consist of two components: the quantity of land (forest) area used,
The Lenzing Group uses two different types of forestry for its wood
and the intensity of use. The estimation of land area used for
sourcing, depending on the global region: sustainable and multi-
Lenzing’s wood sourcing is part of the initiated “Biodiversity con-
functional forest management is applied in the Northern hemi-
cept” project. Variations in data availability and data quality can
sphere by Lenzing’s wood and pulp suppliers in Europe and North
arise depending on the forest type, the land ownership, the sourc-
America. Plantation forestry with high sustainability standards is
ing area and the supply chain position (wood or pulp sourcing to
conducted mainly in the Southern hemisphere by Lenzing’s pulp
Lenzing).
supplier in South Africa and by the new pulp plant in Brazil. In the
35 FSC Global Development GmbH (2014). FSC® and Plantations. FSC’s position on plantations. forest reports: Ministry of Agriculture of the Czech Rebublic, Information on Forests and Foresty in
Available at: https://ic.fsc.org/en/news-updates/id/1351 [Accessed 15 February 2021] the Czech Republic by 2017 (English), Zpráva o stavu lesa a lesního hospodářství České republiky v
36 Forest Europe 2015, and 2020: State of Europe´s Forest 2015. Ministerial Conference on the Pro- roce 2020 (Czech).
tection of Forests in Europe, June 2016., and 2020, State of Europe´s Forest 2020. https://foresteu- Ministry of Agriculture and Rural Development of the Slovak Republic, Report on the Forest Sector
rope.org/publications/ of the Slovak Republic 2020.
37 Indicators of sustainable forest management in Austria reports from 2017 and 2020. 38 Duratex Annual Report 2018. Available at: https://www.dex.co/noticias/duratex-divulga-relatorio-
https://info.bmlrt.gv.at/themen/wald/walddialog/dokumente.html, Czech Republic and Slovakia anual-2018/ [Accessed 15 February 2021]

60
Quantity of forest area used for Lenzing’s wood sourcing: data availability and quality
(Expected)
Lenzing sources Forest type Land use intensity Data/estimates data quality
Known (see "Quantitative description of area
Wood Plantation High managed and influenced by LD Celulose", Table 22) High
Wood Semi-natural Low to medium Estimates needed based on regional statistical data Medium
Pulp (pulp supplier sources wood) Plantation High Estimates possible Medium
Pulp (pulp supplier sources wood) Semi-natural Low to medium Rough estimates Low
The plantation managed by LD Celulose contains a proportion of chapter. For more information about pollution, please see the “Cli-
conservation area dedicated to biodiversity protection in accord- mate and energy” chapter as well as “Waste management” in the
ance with legal requirements and FSC® standards, known as a High “Circularity and resources” chapter. Lenzing states in its Wood and
Conservation Value Area (HCVA). LD Celulose's forestry unit is su- Pulp Policy that it is not procuring wood from plantations estab-
pervised by ecology and environmental specialists who were also lished after 1994 through the significant conversion of natural for-
responsible for identifying the HCVA. The area contains Pseudo- ests. For more information please see the “Raw material security”
paludicola facureae, a species of frog found only in this region of chapter and the “Wood and pulp” focus paper. A similar require-
Minas Gerais. This means that a higher level of monitoring is nec- ment exists for every wood that is FSC® certified. LD Celulose’s
essary, as well as extra precautions for fire protection. It is a KPI of forests are in areas that were converted to agriculture several dec-
LD Celulose to protect endemic species and their habitat. This is ades ago. Large areas nearby are generally used for planting soy
not required by Brazilian national law, but a FSC® criterion. The and coffee or grazing livestock. The trees are mainly eucalyptus
forestry unit constantly works to identify any areas that need to be species, with a small proportion of pine recently phased out. A
classified as HCVA to ensure the protection of animal and plant breeding and clone selections program is continuing to improve
species. For more information, please see the “Biodiversity” focus the yield and robustness of the trees. LD Celulose does not use
paper. genetically modified organisms (GMOs).
Brazilian environmental law determines the maintenance of Perma- As semi-natural forests and plantations do not require irrigation, it
nent Preservation Areas (APPs) and Legal Reserve (LR) areas. APPs can be assumed that groundwater levels are not affected and sa-
are specific areas of vegetation such as ciliary forests, areas of veg- linity levels are not increased in Lenzing’s sphere of influence. Ap-
etation adjacent to water courses, and areas of vegetation on proximately 204 species of flora and 450 species of fauna were
slopes. Legal Reserve areas meet the obligation to preserve at least identified in the forest management units of LD Celulose. Among
20 percent of a property in a rural area. At the moment, 17,065 hec- these species, the presence of animals such as the maned wolf and
tares of LD Celulose are protected areas (table 22). the giant anteater, which are characteristic of the region, is partic-
ularly noteworthy. No significant reduction in species has been
In terms of conservation units that are outside the managed areas registered in LD Celulose’s plantation.
but close to the LD Celulose planting area, Parque Estadual do Páu
Furado is some 30 kilometres from the plantation. At this distance, In the case of semi-natural forests it can also be assumed that im-
the conservation unit is not impacted by LD Celulose's activities. pacts on native species and on biodiversity will be long lasting,
The plantation is roughly 800 kilometres away from the Amazonas. since many areas have been managed in this way for several forest
The main direct land use areas of the Lenzing Group are the plan- generations. A case study commissioned by Lenzing on Austrian
tations in Brazil, currently covering a total of 78,640 hectares (786 forests in conjunction with the Austrian environmental NGOs um-
km2). brella organization Umweltdachverband has concluded that there
are numerous species living in managed beech forests in Austria,
Wood is the most important raw material for Lenzing. The main among them also red-list species, which have adapted to the man-
source of potential impact from the Lenzing Group’s operations agement practices. Therefore reversing these semi-natural forests
and supply chain is therefore connected to land use by forestry. to completely natural forests (stopping all management) could po-
Lenzing also mainly depends on biodiversity and the proper func- tentially harm these species.
tioning of forest ecosystems that provide the raw material of wood.
Negative effects on biodiversity can arise from intensified utiliza- Additional potential impacts on water, soil, and air can arise from
tion of forests. On the other hand, the positive effects of sustaina- production facility emissions. For more information, please see the
ble forest management on biodiversity and ecosystems are well “Climate & energy”, “Water stewardship” and “Waste management”
known 39 and can be further explored and implemented. chapters.
The construction of the pulp mill in Brazil and the site in Thailand At the end of the value chain of textile and nonwoven products,
was completed in 2022. For more information on manufacturing biodiversity impacts can arise from non-degradable plastics enter-
plants please see “Locations of the Lenzing Group”. For more infor- ing the environment, if those products are not correctly disposed
mation about transport and infrastructure in Lenzing’s supply chain, of. For more information on biodegradability of Lenzing’s fibers,
please see “Transport and logistics” in the “Raw material security” please see the “Circularity & resources” chapter”.
39 Kunz 2007: Artenschutz durch Habitatmanagement. chapter 6.2 Wiley-VCH
61
62 Sustainability
Group
Quantitative description of areas managed and influenced
by LD Celulose Table 22
2020 2021 2022
ha % ha % ha %
Total area 66,101 100 71,631 100 78,640 100

Forest/plantation area 50,325 76 54,081 75 58,194 74
Owned – – –
Leased/managed 50,325 76 54,081 75 58,194 74
Protected 13,153 20 14,623 20 17,065 22
FSC® area 43,835 66 43,835 61 47,608 60
Infrastructure 2,623 2,927 3,380 4
Measures for biodiversity and Restoration and reforestation

ecosystem enhancement [GRI 304-3; ESRS E4-5]
[GRI 304-2; ESRS E4-5]

Lenzing supports conservation solutions in other regions not re-
The plantations managed by LD Celulose operate fully in accord- lated to its own supply chain, such as afforestation in Albania, DR
ance with the guidelines and high standards of Lenzing for sourcing Congo and the USA. Additionally, Lenzing is committed to ad-
wood and pulp. During the planning, the intense utilization of wood dressing the protection of ancient and endangered forests in Can-
resources and the potential negative effects on biodiversity were ada (Broadback Forest Quebec, Vancouver Island) and Indonesia
part of the risk analysis. In order to avoid these risks, LD Celulose (Leuser Ecosystem) at the political level.
works with conservation programs and also follows the FSC stand-
ards. Lenzing has set itself the target of engaging in further conservation,
biodiversity and restoration activities in regions where forests are
In the responsible management practiced by LD Celulose, tech- at risk (Sustainability Target 8). To make further progress in meeting
niques are employed that aim to protect biodiversity as well as soil this target Lenzing has defined ways of identifying projects, to
and water quality. Examples of these measures are: which it aims to contribute.
● Minimum cultivation: for soil conservation, LD Celulose uses ● Identify requirements to follow from CDP and Canopy
the minimum cultivation technique, which consists of keeping ● Identify potential partners in the market with experience and a
the remaining plant material at the harvest site to form layers broad network for a successful partnership
of soil protection and ensure the cycling of nutrients. ● Identify how other players in the market are tackling the biodi-
● Nutritional recommendation: LD Celulose performs soil versity issue
analyses to determine the requisite fertilizer recommendation
for maintaining soil fertility. Furthermore, Lenzing plans to align the projects, that have been
● Connectivity: to improve the connectivity of the Permanent identified so far, with CDP (Carbon Disclosure Project), Canopy
Preservation Areas and legal reserves, LD Celulose carries out and ÖBf (Österreichische Bundesforste) in 2023.
mosaic planting, establishing ecological corridors that aim to
connect fragments of native forest. This connectivity allows Mai Ndombe REDD+ project
animals and plants to migrate between different conservation Lenzing supported the Mai Ndombe REDD+ project with a dona-
areas, so that different populations can mate and preserve the tion in 2022. The project supports the protection of 300,000 hec-
genetic diversity. This measure is a voluntary activity beyond tares at the west side of the Mai Ndombe Lake in DR Congo, which
the legal and certification-related requirements. is part of the world’s second largest rainforest and home to numer-
● Preservation and monitoring of riparian forests: these ous wildlife species. The area is threatened by deforestation
forest areas along waterways contribute to the maintenance of through legal and illegal logging.
water quality and the quantity of water available. They retain
sediments and nutrients carried by the rain, preventing water The project uses carbon revenues to prevent logging contracts
pollution and silting in bodies of water. In the Brazilian from being renewed in the area and creates alternative livelihoods
legislation, riparian forests are protected as they are for the local communities. This enables the forest and wildlife to
considered Permanent Preservation Areas. LD Celulose, in turn, regenerate which will promote biodiversity. To further advance the
defines all Permanent Preservation Areas in its forest community’s self-determined development, trainings and demon-
management units and also monitors these riparian forests. strations about sustainable (fish) farming are held to improve food
security while also conserving natural resources. Lenzing’s contri-
bution will be directed towards restoring the fish stocks and the
environmental health of Lake Mai Ndombe.
62
63 Sustainability
Group
Albania ● The student number at the Shkodra Forestry School has in-
The Lenzing Group started a forest conservation project in Albania creased due to improved IT infrastructure and marketing ma-
in 2019, which is scheduled to run for five years until the end of terials / publicity events.
2024. It aims to support the development of rural areas in Albania
in the broader region of Shkoder (Ana e Malit) and Diber (Peshkopi) H i g h l i g h t of 2 0 2 2 :
by using natural resources sustainably and fostering alternative in-
come sources for communities. The goal is to implement conser- A round table on “Innovative Partnerships for Sustainable Forest
vation solutions covering 20 hectares in this area. Management” took place in June 2022 in Tirana, involving the Al-
banian vice minister for Tourism and Environment, the Austrian am-
Ac h i e ve m e n t s i n 2 0 2 2 : bassador and stakeholders and experts in forestry. Scientific stud-
ies about sustainable forest management in the area were pre-
● In the course of the reforestation measures, almost 20,000 sented, which were conducted in conjunction with the University
trees have now been planted, covering 12 hectares of affor- of Tirana.
estation area with the cooperation of around 180 members of
the local Forest and Pasture Users Association. The survival OneTreePlanted
rate of the seedlings, in the newly established tree nursery at Lenzing supported the “Earth Day Campaign” 2019, including the
the Eco Social Farm close to the reforestation area, is between restoration of the Yosemite National Park in California, USA. With
85 percent and 90 percent. This has been a great success in the support of this initiative not only the land was restored, but also
establishing the afforestation activities as an example of good the wildlife habitat was positively impacted.
practice to be replicated in the region. In the tree nursery tree
seedlings are protected until they are tall enough to be planted In 2020, some 10,000 trees were planted. In 2021, 33,025 trees
in the forest area. were planted, mainly in California and Colorado, as well as in Haiti.
In 2022, around 1,000 trees were planted. This amounts to a total
● More than 150 local forest workers were trained on forest man- of 59,166 trees since 2019 that have been planted with the support
agement in 2022, fire prevention and safety, reaching more of Lenzing.
than 400 forest workers during the course of the project. All
training sessions were conducted under Covid-19 safety regu- For more information on stakeholders, please see the “Stakeholder
lations. By providing these trainings, the management of al- engagement” chapter. For more detailed information about
Lenzing`s projects see the “Social responsibility” focus paper.
most 100,000 hectares of forest area in Albania could be pos-
itively impacted. The workshops have helped not only to im-
prove the forest management, but also reduce the risks of for-
est fires – which is a constitute challenge in the region – and
the risk of injuries for forest workers could be reduced.
63
64 Sustainability
Group
Sustainable innovations & products
Material topic: Sustainable innovations & products

[GRI 3-3]
Sustainability acts as a guiding principle for Lenzing’s innovation and product development, which is driving systematic change across the textile and nonwoven
industries. The continual improvement of existing product and production technologies builds business resilience and reputation, as well as facilitating the
supply of products to value chain partners that contribute to the eco-credentials of their own portfolios. Moving from linear to circular ways of working presents
many opportunities for Lenzing to provide customers with a variety of environmental-friendlier solutions, such as biodegradable fibers for the manufacturing
of agricultural and hygiene products.

• Advancing the renewable carbon concept as a member of the
–
Renewable Carbon Initiative (RCI)
• Fusion of LENZING™ Web Technology with a pulp wetlaid pro-
cess for new sustainable and low carbon emission products
Positive
• 1,754 patents and patent applications filed across 182 patent fam-
• Meeting market and stakeholder expectations ilies and 53 countries
•
•
•
Differentiating factor
Being prepared for new challenges
Being a pioneering company
–Sustainability targets, measures and progress
• Building new cooperation and networks For more information, please see the “Sustainability targets, measures and
–
• Challenge the status quo
–Negative Stakeholder
Own activities: • Regular exchange and joint developments with customers to de-
velop sustainable products
• Loss of leadership in innovation carries potential regulatory, fi-
nancial, market and corporate reputational risks • Exchange with regulatory bodies (national, European, interna-
tional) and input to policy framework
–
• Close cooperation with NGOs active in the field of (textile) sus-
tainability such as Canopy
• Active contributor in several associations and networks such as
Renewable Carbon Initiative (RCI), European Polysaccharide Net-
• Better Growth strategy work of Excellence (EPNOE) and The European Platform for the
• “Naturally positive” sustainability strategy with “Sustainable inno- Future of Textiles and Clothing (Textile ETP)
vations” focus area • Membership in technical and standardization committees
• Life cycle thinking • Regular exchange with funding authorities (e.g. annual talk with
• Net-benefit concept FFG) and internal alignment on this topic as well
• Project Zukunft sichern (save the future) • Joint projects are carried out within the framework of the PRO²
process for project management
• Zero Discharge of Hazardous Chemicals (ZDHC)
• Joint project structure in cooperation with Södra
• PRO² project management system (product & application inno-
vation and process & technology innovation) as part of Lenzing For more information, please see the “Stakeholder engagement” chapter.
–
business processes
• Management review (ISO 9001:2015)
–Actions taken
Responsible
•
•
CEO
VP Research & Development
• Every idea is evaluated regarding its sustainability impact and
CO2-emissions – R&D projects are only started if the assessment
shows an improvement compared to the current solution Supporting
• Close cooperation between innovation centers and other inter-
• Global Business Management Nonwovens and Textiles
nal departments
• Global Strategy and M&A
• Numerous R&D partnerships with customers, companies, univer-
sities, and institutes (national and international) • Performance.Improvement.Technology
• New fiber types launched for denim applications • Digital Innovation
• Cooperation between Södra and Lenzing in the field of textile • Global Engineering
recycling • Operations & Technology Pulp
• Lenzing and Renewcell signed a large-scale supply agreement • Operations
further closing the loop in fashion (chemical textile recycling)
64
65 Sustainability
Group
• Lenzing is a partner in the Horizon Europe Circular and Sustaina-
ble Textiles and Clothing (CISUTAC) project
• FFG-funded Reducing Energy and Waste using AI (REWAI) pro-
ject together with Pro²Future, University of Linz and Graz Univer-
sity of Technology
Sustainable innovations represent one of the strategic focus areas ovation department and the Performance, Improvement & Tech-
of Lenzing’s “Naturally positive” sustainability strategy. Lenzing is nology department. This interconnectedness is also reflected by
committed to bringing cellulose based solutions to the market that the fact that staff from R&D regularly transfer to other departments
offer consumers more sustainable alternatives without compro- and often follow the R&D projects to their conclusion. Another dis-
mising on quality and performance. Sustainable innovations in- tinctive feature is the extensive infrastructure. The center includes
clude substantial efficiency improvements in existing technologies pilot plants and laboratories that use small-scale processes to bet-
and technological breakthroughs that lead to net-benefit products. ter understand the landscape of the subsequent value chain.
Lenzing innovation also includes driving systemic change through
forward-looking solutions, future-proof business models, and a R&D expenditures, calculated according to the Frascati method
multitude of collaborative activities. Another increasing activity is (minus funding received), accounted for EUR 34.8 mn in 2022
the implementation of digital tools and solutions to achieve even (2021: EUR 31.6 mn, 2020: EUR 34.8 mn). The 1,574 patents and pa-
more transparent processes and products. For more information, tent applications (in 182 patent families) that Lenzing holds in 53
please see the “Digitalization & cyber security” chapter. countries worldwide are another indication of the Lenzing Group’s
innovativeness. The focus for new patents is clearly on sustainable
The central hub and innovation center at Lenzing is the Research innovations such as the forward-looking solutions of LENZING™
and Development (R&D) department at the company’s headquar- Web Technology and TENCEL™ Luxe or textile recycling.
ters in Lenzing (Austria). At the end of the reporting year, 218 staff
(2021: 222; 2020: 212) were working here on various innovation
projects, in most cases in close cooperation with other depart- Sustainability drives innovation
ments. Noteworthy examples include the newly formed Digital Inn-
Material topic: Sustainable materials & life cycle assessment (LCA)

[GRI 3-3]

–
Actions taken
–Positive
•
•
Further extension of LCA studies for standard and specialty fiber
portfolio
Further extension of low-carbon fiber products with correspond-
• Strengthening market position in sustainable net-benefit prod- ing offsets of remaining emissions
ucts and specialty fibers
• Strategic growth projects fully on track in Brazil and Thailand
• Communicating sustainability benefits of Lenzing’s products
• Lenzing’s fibers listed as “preferred fibers” in Textile Exchange’s
• Involvement in creating future standards for environmental com- Preferred Fiber Report
munication (product environmental footprint, product category
• Lenzing contributed to Textile Exchange’s Corporate Fibers and
rules, etc.)
Materials Benchmark Program (CFMB) including the Biodiversity
• Gaining expertise in life-cycle thinking to proactively demon- Benchmark
strate sustainable development
• Completion of Textile Exchange’s MMCF Producer Transparency
• Supporting current and future customers in achieving their sus- Questionnaire to provide information about the sustainability per-
tainability targets
–
formance at the group and production site level
• Lenzing contributing to leading multi-stakeholder initiatives
Negative • Broad range of third-party certifications

• LCA update involving independent party
Own activities:
• Alignment with Material Sustainability Index (MSI) of the Sustain-
• “Greenhushing” – producing sustainable materials/products but
able Apparel Coalition (SAC)
–
not being able to communicate
• Loss of reputation from not being transparent
• Potential regulatory, technology and market risks Sustainability targets, measures and progress

•
•
Better Growth strategy
Partnering for systemic change as part of the “Naturally positive”
sustainability strategy
–Responsible
• VP Global Nonwoven Business
• Sustainability Policy
65
66 Sustainability
Group
• Group Policy for Safety, Health and Environment • VP Global Textile Business
• Group Environmental Standard • VP Global Purchasing
•
•
•
Wood and Pulp Policy
Branding Strategy
Higg MSI
–Supporting
• Global QESH
• Research & Development
Sustainability acts as guiding principle for innovation and product often developed together with value chain partners or other stake-
development. Every process, product, or application innovation is holders. As new fibers are mainly tailored to special application
evaluated for sustainability from the very beginning. Key consider- fields, this goes hand in hand with the development of the respec-
ations include the life cycle perspective and the net-benefit princi- tive applications.
ple over the entire value chain, which are implemented in the pro-
ject management tools used by the company. Wood and hemp: a perfect match
A TENCEL™ Limited Edition using hemp was developed together
Lenzing’s innovation portfolio addresses key topics for the future. with Candiani Denim in 2022 to push the boundaries of innovation
Sustainable innovations and proactive partnerships form the basis and further inspire sustainability across the textile industry value
for Lenzing’s strategic efforts to green the value chain. Sustainabil- chain. Hemp as a portion of the pulp input is thereby replacing
ity targets for air emissions, water emissions, pollution, climate pro- wood content as the main cellulose source for TENCEL™ Lyocell.
tection, and the circular economy are the cornerstones of Lenzing’s
responsible entrepreneurship and act as innovation drivers. Hemp is recognized as a highly sustainable fiber and an alternative
to many classic fibers used in fabrics. Unfortunately, it is equally
Funding for sustainable developments renowned for its roughness. By applying Lenzing’s responsible
Sustainability criteria are becoming more and more important as closed-loop and resource-efficient manufacturing process, hemp
guidelines and requirements for R&D funding, both on national and pulp, along with wood pulp was transformed into a soft lyocell fiber.
European level. Lenzing, which has been active in this field for a The fiber has been the basis for the world’s first biodegradable
long time, uses this opportunity not only to boost in-house devel- stretch denim fabric made by Candiani Denim.
opments but is also active in cooperative research projects.
The launch of the TENCEL™ Limited Edition using hemp pulp
Lenzing was one of the few companies to receive the highly cov- again underlines Lenzing’s pioneering role in developing highly sus-
eted "Green Frontrunner" funding for a project in the first call in tainable production processes and in bringing innovations to the
2021. Entitled "Green Frontrunner – New Technologies for Sustain- market together with committed partners.
able Growth", the project, which runs from June 2021 to May 2025,
encompasses several technology topics related to the reduction of Matte TENCEL™ branded lyocell fibers - Enhancing the
emissions in pulp and fiber production. The project will make a sig- look of denim with eco-friendly credentials
nificant contribution to achieving Lenzing's goal of being CO2-neu- The Lenzing Group has expanded its sustainable offering for the
tral by 2050, while at the same time expanding production. Tech- denim industry with the introduction of matte TENCEL™ branded
nologies with various degrees of maturity will be examined; some lyocell fibers. The new fiber type is specially designed to scatter
will be implemented rather quickly, while others will offer new pos- light and permanently diminish sheen in denim applications, further
sibilities on a long-term horizon. enabling versatility of indigo-dyed denim fabrics.
One example for a cooperative project is REWAI (Reducing Energy By combining functionality with aesthetics, matte TENCEL™
and Waste using AI), which runs from April 2022 to March 2025 Lyocell fibers increase versatility in denim designs while reducing
with the partners Pro²Future, University Linz, Technical University the ecological footprint of the resulting fabric and garment. Pro-
Graz and Lenzing. The goal of the project is to use already existing duced by a resource efficient closed-loop production process, the
sensor data from a fiber production line (in combination with addi- new fiber type maintains all the comfort benefits of standard TEN-
tional sensors where needed) to create a predictive model for fiber CEL™ Lyocell fibers to bring next-to-skin smoothness while giving
quality. This will allow immediate response by the operators, which dark indigo dyed fabrics a deep and lusterless appearance.
will result in less low quality output and as a consequence a reduc-
tion in energy and resources since there is no longer a need for Hydrophobic cellulose fibers for sustainable nonwovens
additional handling of the low grade fibers. Lenzing is also a partner The development of a hydrophobic lyocell fiber widens the fiber
in the EU-funded CISUTAC (Circular and Sustainable Textile and portfolio of Lenzing and allows the replacement of synthetic fibers
Clothing) project, which aims at transitioning the textile sector to a with a cellulosic fiber which is compostable under home and in-
circular and sustainable model. For more information, please see dustrial conditions and biodegradable in soil, thus offering an alter-
the “Stakeholder engagement” chapter. native to conventional synthetic fibers. In addition, the cellulosic
fibers show increased softness and therefore are beneficial for fu-
Resource-and energy-efficient production processes (and the R&D ture product developments in applications touching the skin like
infrastructure) are the foundation for the development of new fi- hygiene products or wipes. Furthermore, the hydrophobic behavior
bers that offer both sustainability and performance. These fibers of the cellulosic fibers leads to a different behavior towards lotions
serve as raw materials for the textile and nonwoven chains and are
66
67 Sustainability
Group
allowing lotion amounts and formulations to be adjusted, thus wid- products take a life cycle perspective and thus include both up-
ening the options of nonwovens producers, especially when look- stream and downstream value chain processes. Customers can re-
ing into 100 percent cellulosic options. place resource-intensive products with Lenzing’s alternatives,
thereby improving their product footprint and reducing supply
The development of the hydrophobic fibers was extended to a chain risks.
wide range of application developments for hygiene products, to a
large extent in cooperation with customers. The results clearly The three strategic principles of the “Naturally positive” sustaina-
show that cellulosic fibers have the potential to be used in hygiene bility strategy and the underlying focus areas are combined in the
applications in a much wider range than today. Further work is net-benefit concept.
planned in the future optimizing product properties in collaboration
with customers while reducing the overall ecological footprint. Products and technologies with a net-benefit
Smart blends for improved performance Carbon-zero TENCEL™ and VEOCEL™ branded fibers
The change from conventional wipe blends containing up to 80 Lenzing launched new carbon-zero TENCEL™ branded lyocell and
percent synthetic fibers to 100 percent cellulosic fibers leads usu- modal fibers for application in the textile industry and added its first
ally to thinner wipes as cellulosic wipes collapse when wet. There- nonwoven carbon-neutral lyocell fibers under
fore, the main development goal was to achieve the wet thickness the VEOCEL™ brand in 2021. The new fibers are certified by Cli-
of conventional wipes with a 100 percent cellulosic fiber blend matePartner in accordance with the ClimatePartner Protocol , the
while preserving the tensile strength. The goal was achieved in leading global framework for measuring greenhouse gas emissions.
2022 by changing the fiber blend and machine settings.
The fibers help to lower carbon emissions across the supply chain.
100 percent cellulosic flushable wipes Four key levers – energy reduction, use of renewable energy, new
The Single-Use Plastic Directive (SUPD) heightens the need to offer technology innovation, and supplier engagement – are deployed
100 percent cellulosic wipes with sufficient strength and products to achieve Lenzing’s carbon net-zero target for the long term. The
that are flushable for safe and convenient disposal. As the usage of three pillars of “Reduce”, “Engage”, and “Offset” actively contribute
flushable wipes has increased over the years, the definition of to lowering the product’s carbon footprint by reducing emissions
flushability has become stricter. Therefore, Lenzing has worked on as far as the current technological and economic conditions allow.
gaining a fundamental understanding of the relevant fiber proper- These products have the lowest carbon footprint in respective fiber
ties and final product performance. Based on this work, Lenzing categories and can therefore contribute to the further reduce the
obtained the Fine to Flush certification from Water Research Cen- customers’ upstream emissions. For more information, please see
ter (WRC) as well as conducted and passed all the tests from the the “Climate & energy” chapter.
stringent International Water Services Flushability Group (IWSFG)
guidelines, demonstrating that LENZING™ Lyocell fine short cut LENZING™ ECOVERO™ viscose fibers and VEOCEL™
fibers with eco disperse technology are a suitable ingredient for specialty viscose fiber with Eco Care technology
flushable wipes. LENZING™ ECOVERO™ branded viscose (for textiles) and VE-
OCEL™ specialty viscose fiber with Eco Care technology
Wet laid developments as basis for transition into 100 (nonwovens) show a 50 percent reduction in greenhouse gas emis-
percent cellulosics sions and water impact compared to generic viscose (according to
In addition to flushable material, further progress has been made in Higg-MSI 40).
developing high-strength wetlaid products, which have been pre-
sented to customers. The wetlaid technology offers access to 100 TENCEL™ Modal with Eco Color technology and
percent cellulosics using a large proportion of wood pulp. Because TENCEL™ Modal with Indigo Color technology
a high proportion of pulp can be used, the process results in lower Fibers with this technologies incorporate pigments during fiber
raw material costs than 100 percent cellulosic spunlace. Interest in production and thus help avoid downstream and energy-intensive
wipes based on this technology has therefore increased over time. conventional dyeing processes. A fabric made from these fibers
Lenzing’s development work focusing on optimizing tensile has 60 percent lower greenhouse gas emissions than convention-
strength and productivity has been of considerable interest to cus- ally dyed fabrics 41.
tomers. Also further development to optimize the processability of
the fibers in the downstream processes has been started. Initial re- First launched in 2021, TENCEL™ Modal with Eco Color technol-
sults in 2022 clearly show that the number of web failures in cus- ogy has been established as the solution to address the demand
tomers’ trials were reduced significantly, thus helping to lower the for eco-responsible fiber alternatives among denim brands and -
amount of waste material. retailers. The technology incorporates indigo pigment directly into
TENCEL™ branded modal fibers using a one-step, spun-dyeing
process. Such process delivers superior color fastness relative to
Net-benefit concept conventional indigo dyeing. Compared with traditional rope-dyed
indigo yarns, the production of TENCEL™ Modal fiber with Indigo
Lenzing’s net-benefit products offer positive impacts and benefits Color technology saves around 99 percent of the water and elec-
to the environment, society, and value chain partners to a greater tricity, 80 percent of the chemicals and even 100 percent of the
extent than most competing alternatives in the market. Net-benefit heat energy in the dyeing and finishing of fabrics, and thus signifi-
cantly reducing the ecological footprint of denim products. In 2022,
40 Based on Higg MSI database v3.5 (Dec 2022). 41 Terinte, N., Manda, B.M.K., Taylor, J., Schuster, K.C. and Patel, M. (2014). Environmental assessment
of coloured fabrics and opportunities for value creation: spin-dyeing versus conventional dyeing. In:
Journal of Cleaner Production 72, pp. 127–138
67
68 Sustainability
Group
TENCEL™ Modal fiber with Indigo Color technology won the In- Lyocell
ternational Textile Manufacturers Federation (ITMF) Award for Lyocell fibers from Lenzing are derived from the renewable raw
Sustainability and Innovation. material wood and produced in a closed-loop process, which
transforms wood pulp into cellulosic fibers with high resource effi-
Lenzing fibers with recycled content – REFIBRA™ or Eco ciency and low ecological impact. This solvent-spinning process
Cycle Technology recycles process water and reuses the solvent at a recovery rate of
In line with Lenzing’s circular economy vision, “We give waste a more than 99.8 percent. Lenzing’s lyocell fibers show around 50
new life. Every day”, the current generation of innovative fibers, percent lower greenhouse gas emissions than generic lyocell (ac-
manufactured on a commercial large scale, use pre-consumer cot- cording to Higg-MSI 44).
ton scraps, post-consumer garments, and wood from sustainably
managed forests as a raw material. The cotton material is recycled Modal
into pulp which is blended in a ratio of up to 30 percent with 70 At the Lenzing site Modal fibers are produced using an integrated
percent of dissolving wood pulp to produce high-quality lyocell fi- production process in which the raw material pulp is manufactured
bers for textile and nonwovens applications. This technology di- at the same site as the fiber itself. Raw material from beechwood
verts tons of cotton scraps and post-consumer garments from en- and spruce is converted into cellulose and other biorefinery prod-
tering landfills or incineration. The fibers are subsequently pro- ucts. Beech forests grow naturally without the use of chemical fer-
duced with high levels of resource efficiency in a closed-loop pro- tilizers or artificial irrigation. Pulp production is energetically self-
duction process. For more information, please see the “Circularity sufficient while supplying a significant amount of bioenergy for the
& resources” chapter. entire fiber production process at the production site. Lenzing’s
modal fibers therefore generate around 80 percent less green-
TENCEL™ Luxe filaments house gas in production than generic modal fibers (according to
The TENCEL™ Luxe branded lyocell filament aims to become a Higg-MSI).
key milestone for eco-couture fabrics in the premium luxury market.
The closed-loop lyocell production process ensures low environ- LENZING™ Acetic Acid Biobased
mental impact due to low process water and energy use and raw Lenzing’s biorefinery technology converts wood into pulp, energy,
materials consumption and state of the art recovery systems. TEN- and biobased biorefinery products. One of the biobased biorefin-
CEL™ Luxe branded filaments produced with the Eco Filament ery products is LENZING™ Acetic Acid Biobased, which will be
technology avoid conventional yarn spinning, which is energy-in- also available as carbon-neutral alternative to conventional fossil-
tensive and predominantly based in regions that rely heavily on fos- based acetic acid, substantiated by a study conducted by an inde-
sil-based electricity. For example, at the industry level, yarn spin- pendent Life Cycle Assessment (LCA) consultant.
ning processes contribute to 28 percent of the total GHG emis-
sions of the textile value chain (excluding use phase) 42.
Process innovations drive efficiency
LENZING™ Web Technology and sustainability
The LENZING™ Web Technology is an innovative R&D develop-
ment technology platform that allows a wide range of novel sus- Process innovations focus on improvements to pulp and fiber pro-
tainable nonwoven materials to be produced from the raw material duction processes. Lenzing is constantly working on resource effi-
wood. The patented nonwoven web formation process – Lenzing ciency, occupational safety, process stability, and quality. Ongoing
holds more than 25 patent applications – starts with dissolving developments in pulp production aim to enhance the biorefinery
wood pulp and produces a directly formed cellulosic nonwoven concept, thereby optimizing wood consumption. Another issue is
fabric made of 100 percent continuous lyocell filament. This tech- the reduction of sulfur emissions through technological improve-
nology enables fiber and nonwoven production in only one step ments and aftertreatment systems. These measures allow effective
and sets new standards for the efficiency, circularity, and ecologi- cleaning of the exhaust gases and compliance with (and surpassing)
cal sustainability of cellulose nonwoven fabrics. The flexibility of the emission regulations.
this technology and possible integration with other nonwoven
technologies will enable the development of a wider range of new The foundation for sustainable innovations is the use of highly so-
cellulosic materials and composite structures for highly engineered phisticated production processes for pulp (including biorefinery
end use applications. products) and fibers (viscose / modal and lyocell). The lyocell tech-
nology platform has been expanded to the production of additional
Pulp materials already, namely filament and direct-spun web. A number
Dissolving wood pulp is the raw material for Lenzing’s fibers and of new innovations have been developed in recent years that have
predominantly produced in the company’s own biorefineries 43 . significantly improved the lyocell process in terms of efficiency and
Lenzing’s biorefinery process ensures that 100 percent of the wood quality but also in reducing energy and process chemical con-
is used to produce dissolving wood pulp for fiber production, bio- sumption, thereby improving the already sustainable lyocell pro-
refinery products, and bioenergy. All the pulp produced at Lenzing cess overall.
pulp production sites is totally chlorine-free. For more information,
please see the “Raw material security” chapter. In terms of process improvement, R&D has developed an alterna-
tive technology to suspend dissolving wood or recycling pulp in
solvent that requires not only fewer process steps and less energy
but also yields better-quality spinning dope. As a consequence less
42 2018 Quantis Report „Measuring Fashion“
43 In addition to its own dissolving wood pulp production, Lenzing procures dissolving wood pulp in 44 Based on Higg MSI database v3.5 (Dec. 2022)
the global market.
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69 Sustainability
Group
Lenzing via its science-based targets (SBTs). In order to achieve
maximum impact, pulp and fiber production are increasingly being
CLEAN TECHNOLOGY INVESTMENTS IN THE assessed together to find interactions and synergies. A concrete
LENZING GROUP
example in this regard relates to reducing the energy consumption
State-of-the-art lyocell plant in Thailand of evaporating aqueous systems by using membrane processes.
These processes can be used for both pulp and fiber production,
Lenzing’s lyocell technology is based on a closed-loop process that
transforms dissolving wood pulp into cellulosic fibers with high resource thereby demonstrating the Group’s holistic approach in process in-
efficiency and low environmental impact. The process has a solvent renovation.
covery rate of more than 99.8 percent, which lowers water and chemical
use. The state-of the art lyocell plant in Thailand is the world’s biggest-
capacity plant with improved efficiencies due to economies of scale and
process innovation within the Lenzing Group. The expansion of clean
technology within the Lenzing Group reflects the company’s commit-
ment to improving the ecological footprint of the global textile industry.
EU BAT
All Lenzing sites in the EU, including one viscose plant, two lyocell
plants, and two pulp plants, continuously met or exceeded the ap-
filtration effort is needed that on the other hand reduces filter reject, plicable EU BAT performance in 2022, which are set out in several
creates less waste streams and improves the overall yield. EU best available technology reference documents. Compliance
with EU BATs is the basis for the issuance and review of environ-
Another focus in recent years has been the development and man- mental and operating permits for the plants and is continuously
ufacturing of new spinnerets, which are the hearts of every fiber monitored by the competent authorities in the EU Member States.
production plant. These developments resulted in higher output Compliance monitorings, as well as requirements relating to man-
per spinning end (reduction of specific energy demand), more sta- agement, monitoring program, reporting, etc., are also carried out
ble spinning performance and thus improved fiber quality (less low in accordance with the EU BATs.
grade fibers or cellulosic waste). Both improvements ultimately
lowered greenhouse gas emissions. All these developments have The EU BAT cannot be invoked outside the EU. All products pro-
already demonstrated their benefits in the expansion project in duced in Lenzing production sites outside the EU, with the excep-
Heiligenkreuz, Austria as well as in the lyocell plant in Thailand. tion of one viscose plant in Indonesia, therefore have the EU Eco-
label for best-in-class performance. In 2022, the Lenzing produc-
R&D is also continuously working on online analytical methods to tion site in Thailand was successfully awarded the EU Ecolabel and
analyse various production streams in real time, a requirement for became the latest facility in the Group to produce products with
realizing digitalization and automatization and future benefits like the EU Ecolabel certificate. In line with the sustainability target, the
online grading, fiber production optimization in terms of quality and viscose site in Indonesia aims to achieve the EU Ecolabel in 2023
energy consumption. One current focus is the development of (targets 1 and 5).
technologies to more efficiently remove water from different pro-
cess streams compared to the standard evaporation technologies, Lenzing is also continuously working on improvements in other
which are very energy-intensive. These technologies may again business areas. It is fully committed to the Supplier to Zero
significantly help to further reduce energy consumption and thus roadmap of the multi-stakeholder Zero Discharge of Hazardous
the CO2 footprint per ton of produced fibers. Chemicals (ZDHC) initiative. All three viscose sites continued their
biannual reporting to the ZDHC gateway in 2022. Progress has
In addition, projects are ongoing to also further reduce water and been made towards achieving the Aspirational Level as set in the
process chemical consumption. These activities are accompanied sustainability target.
and supported by simulation and modeling. In the near future,
Lenzing will significantly enhance its textile recycling activities - a
very challenging task that not only includes the production of recy-
cling pulp but also has to deal with the processability of recycling
pulp in different fiber production processes. Success requires a ho-
listic approach from pulp to fiber production to final applications in
the textile and nonwovens. These activities may result not only in
necessary modifications of the pulp production processes and the
selection of feedstocks but also in adaptions or even new technol-
ogies in fiber production processes.
A current focus is on boosting biorefinery integration at Lenzing’s

pulp sites and therefore on increasing the usage of the raw material
of wood. Several projects related to pulp production deal with the
closure of loops (e.g. selective sulfur dioxide absorption, increased
caustic soda recovery) and the reduction of wastewater (e.g. sul-
fate in pulp and viscose fiber production). Increasing energy effi-
ciency and reducing carbon emissions are other topics of growing
importance.
Activities in this field go beyond regular continuous improvements

and seek innovative solutions to reach the ambitious goals set by
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70 Sustainability
Group
EU Ecolabel
EU Ecolabel criteria Table 23
Man-made cellulose fibers criteria Limit
Sustainable forestry: > 25 % e.g.

FSC®, PEFC or equivalent
schemes.
Pulp: wood sourcing Legal forestry: the rest
Pulp: bleaching agent Elemental CI free
Pulp: OX on finished fiber ≤ 150 ppm
50 % input from mills with energy or
Pulp: sourcing
chemicals recovery
Staple fiber: sulfur emission to air 30 g/kg
Chemicals and processes criteria
Spin finishes: 90 % of the
component substances readily
Restricted substance biodegradable
Should satisfy restrictions concerning
Substitution of hazardous substances
certain hazard classifications
The EU Ecolabel was established by the European Commission in

1992. It is an environmental quality label awarded to products and
services that have a lower environmental and health impact than
comparable goods throughout their entire lifetime. Products bear-
ing the EU Ecolabel are therefore among the most environmentally
friendly in the industry. Independent experts, scientists and NGOs
devised the guidelines and criteria for awarding the EU Ecolabel in
collaboration with the EU member states. The criteria are deter-
mined scientifically and consider the entire product life cycle. Reg-
ular revisions ensure that the criteria reflect new developments and
that assessments remain current. For the Lenzing Group, this
means that continuously stricter criteria have to be met in pulp and
fiber production, both with regard to emissions released into the
air and water as well as the handling of chemicals. The Lenzing
Group can provide viscose, modal, and lyocell fibers with EU Eco-
label.

70
Chemical management
A group-wide chemical management standard is currently under the environment, and the use of the products. The chemical man-
development featuring comprehensive chemical inventories, ap- agement transition process was established in 2020 and will be
proval processes, etc. with customization provided by an external rolled out to all the sites in stages to ensure all Group sites follow
IT consultant. It includes a hazard and exposure assessment for the same approach. Group wide Chemical Management Standard
each chemical in order to demonstrate its safe use for workers, will be rolled out in Q2 2023.
Material topic: Chemicals & toxicity

[GRI 3-3]

–Actions taken
–Positive
•
•
•
Safety & Health KPIs
Emission KPIs
Lenzing contributing to leading multi-stakeholder initiatives
• Compliance with stakeholder expectations (e.g. Zero Discharge
(ZDHC, SAC, EU-BAT)
of Hazardous Chemicals)
• Increase in the number of chemical suppliers
• Opportunity to reduce impact on Lenzing scope 3 CO2 footprint
via good supplier motivation efforts • Overall EcoVadis score of Lenzing Group suppliers higher than
–
the average EcoVadis score
• Supplier engagement to procure “low-carbon” caustic soda
Negative • Environmental management system in accordance with ISO
Own activities: 14001:2015 (including risk assessment and internal audits to en-
sure the effectiveness of the measures implemented)
• Negative health and environmental impacts
• Regular Global SHE meetings with management review
• Negative environmental and social impacts can lead to reputa-
tional damage • EcoVadis supplier assessment
• Integral part of internal communication (SHE-topics prioritized)
•
•
Regulatory changes and changing classification of chemicals
Negative health and environmental impacts
–Sustainability targets, measures and progress
–

•
•
Heartbeat for Safety and Health initiative
SHE Policy
–Stakeholder
• Zero Discharge of Hazardous Chemicals (ZDHC)
• Higg FEM 3.0
–
Responsible
• Global Purchasing
• Global QESH
• Site managers
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72 Sustainability
Group
Product quality and safety
Material topic: Product assurance

[GRI 3-3; ESRS S4-1, S4-2, S4-3, S4-4, S4-5]
–Actual and potential negative and positive impacts • Roll-out of a Chemical Management Group Standard
–
• Overview and monitoring of product safety & regulatory relevant
legislation and regulations
Positive • Evaluate new legislations or changes in directives, regulations
• Leading the market in terms of best product consistency, appli- and standards according their impact on Lenzing products and
cation performance, and service their intended uses
• Achieving business and sustainability targets by monitoring and • Uphold an extensive third-party certification portfolio to demon-
improving manufacturing processes strate the safety of the products in the appropriate area of use
–Negative
• Regular tests of products against stringent external third-party
standards, norms and regulations for product safety and compli-
ance in the respective areas of use
Own activities: • Maintain a database of intentional product ingredients and per-

form risk assessments
• Impact on health and safety of Lenzing product users
• Implementation of a holistic Management of Change (MoC) pro-
cess
• Continuous Improvement of customer satisfaction survey tooling
• Losing market position due to increasing competition or new and process
–
technologies

• Establish the Chemical Management at all sites
• Lenzing’s Better Growth Strategy
• Risk assessments carried out for all new ingredients and new
• Group Policy for Quality suppliers
• Group Policy for Safety, Health and Environment • Achieve third-party certifications according portfolio including
• Group Policy for Product safety new certifications based on NCR process
• Lenzing Group’s ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 For more information, please see the “Sustainability targets, measures and
certifications progress” chapter.
–
• Global Supplier Code of Conduct
• Cleaning and Hygiene Guidelines Responsible
–
Actions taken
–
• Global QESH
Supporting
• Collaboration across the entire value chain to support customers
and brands • Global Business Management (Textiles and Nonwovens)
• Roll-out of the Cleaning and Hygiene Guidelines across all sites • Global Business Management (Pulp and Wood)
• Roll-out of automated quality performance reports and visualiza- • Global Engineering
tions providing real-time information to the Lenzing community
• Performance.Improvement.Technology
• Optimization of customer service processes to improve the cus-
• Global Technical Marketing Development
tomer experience
• Research & Development
• QESH process management including risk assessments and in-
ternal audits to ensure the effectiveness of the measures and • Customer Service
standards implemented
[GRI 2-23, 2-25, 416-1, 416-2, 417-2; ESRS S4-1, S4-3] In this respect, Lenzing operates a quality management system
based on ISO 9001:2015. Additional quality management systems
To uphold the quality standards and fulfill our commitment as de-
such as FAMI-QS and Hazard Analysis Critical Control Points
scribed in our Quality Policy, Lenzing invests in people and innova-
(HACCP) are in place for specific business segments. All form the
tion and engages actively with raw material suppliers to establish
basis for the relevant work processes and reinforce efforts to
long-lasting relationships. Constant customer feedback and com-
achieve complete customer satisfaction. Product Safety & Regula-
petitor benchmarking ensures continuous improvement in our op-
tory Affairs manages the majority of external third-party certifica-
erations, services and products and delivers added value to
tions on a global level and assesses new certification requests.
Lenzing and customers. Independent third-party certifications are
These certificates serve to ensure transparency and demonstrate
in place to certify standards, products, and management systems.
72
73 Sustainability
Group
the safety and compliance of Lenzing fibers as well as their com- tions, standards, and requirements are continuously monitored, as-
patibility in their application fields. Information on all the Lenzing sessed and documented. In the reporting year, these assessments
Group’s product certifications are available at: https://www.len- did not trigger any additional measures in order to be compliant
zing.com/sustainability/product-benefits/ with the high internal standards.
It is imperative that Lenzing’s products meet and, whenever possi- Research collaborations
ble, exceed applicable safety standards and legislation. In the
Lenzing Product Safety Policy, Lenzing pledges to drive compli- Scientific collaboration is deeply rooted within Lenzing’s R&D. As
ance with this policy and high internal standards on a continuing a pioneer of sustainability Lenzing is actively seeking partners to
basis through appropriate reviews and evaluations. speed up the developments and to make the necessary impact
timely. The collaborations range from large research centers to
The Product Safety & Regulatory Affairs department (part of Global small individual projects and also include important networking
QESH) is globally responsible for the safety of Lenzing fibers in their with the scientific community.
intended uses and for compliance with laws, regulations, and
standards that apply to the nonwoven and textile fiber businesses. For more information, please see the “Stakeholder engagement”
Therefore, risk analyses for all intentional and non-intentional in- chapter.
gredients are carried out and the impact of business-specific reg-
ulations, standards, and requirements is continuously monitored Alternative sources of raw materials for fiber production
and assessed. All Lenzing fiber products undergo health and safety Any plant-based material can potentially serve as a source of cel-
testing. However, the ultimate responsibility for consumer health is lulose and hence as dissolving pulp for fiber production. Lenzing
borne by the companies that manufacture finished products from has undertaken extensive research into many different alternative
Lenzing fibers. non-wood cellulose sources. In its research, Lenzing identifies
promising new cellulose sources and carefully considers their avail-
Product quality and safety activity: 2022 summary ability, technical feasibility, and economic scalability as well as the
The newly introduced production site in Thailand has demon- overall ecological impact with respect to Lenzing’s climate target
strated a steady improvement of its quality metrics in line with its and circularity approach.
ramp-up plans. Despite COVID-19-related disruptions, pulp availa-
bility problems, energy prices and global political developments, Studies have been conducted on sources such as annual plants like
which created additional quality problems in some factories, devi- hemp, straw, and bamboo. In general, annual plants have a higher
ations in quality were further reduced. Although improvement in growth rate per hectare than trees. Additionally, certain species
key defect categories continued in most of Lenzing’s lyocell and have a higher cellulose content. Some of them are already available
viscose factories, performance is expected to be comparable to in large quantities, especially in the form of agricultural waste. This
2021, which is reflected in the quality-related KPIs for the entire allows an attractive cellulose yield per hectare to be achieved;
Group (e.g., reduction of poor quality share). however, the feasibility of any alternative raw material needs to be
assessed on a case-by-case basis.
In 2022, several of the Fiber Quality strategic initiative projects
achieved their goals, while others are in their last phase with com- Based on current data, large-scale and sustainable production of
pletion date in the first half of 2023. Deliverables from these pro- cellulose is still best conducted using wood from well- managed
jects are: a) the introduction of guideline documentation and sys- forests instead of the above mentioned alternatives.
tem for process modeling and presentation as well supporting
templates, b) the organization of a global quality conference where At the moment the most promising alternative raw materials to
winning quality practices and behaviors were presented, c) intro- wood are residuals from textile production and used clothing. This
duction of processes that accelerate internal activities that support is where Lenzing developed the first industrially implemented so-
service quality and customer intimacy (e.g., an end-to-end “Voice lution: REFIBRA™ Technology, which uses up to 30 percent of tex-
of the customer process” that focus on the effective translation of tile waste as feedstock and represents an important step towards
customer requests into needs and internal requirements and their achieving a circular economy. In order to progress faster and de-
consecutive conversion into new or change in existing products liver relevant volumes to the market, Södra and Lenzing teamed up
and services). in textile recycling in 2021. They are now jointly developing their
respective processes with the goal of implementing a recycling
Good results for 2022 plant with a capacity of 25,000 tonnes in 2025. For more infor-
In 2022, the number of product and logistics complaints for the fi- mation, please see the “Circularity & resources” chapter.
ber business remained at the same level as 2021. The current per-
formance indicates the effectiveness of the quality improvements At the same time, as an innovation company it is Lenzing’s aspira-
implemented in both product and service quality areas. Lenzing is tion to find new solutions, looking beyond the horizon. After the
confident that all of its products perform well in their respective successful first limited edition fibers with alterantive pulp sources
applications. As in previous years, there were no complaints or in- in 2021 (pulp derived from orange residues by Orange Fiber), an-
cidents of non-compliance concerning the health and safety im- other limited edition followed in 2022. This time a part of the wood
pact of products and services. pulp was replaced by hemp pulp and the produced fibers are the
basis for the world´s first biodegradable stretch denim fabric, made
Risk analyses and assessments for new intentional and non-inten- by Candiani Denim. Within the framework of the INGRAIN innova-
tional ingredients are carried out by performing formal compliance tion alliance the first development project was started together
reviews with a newly created template. Business-specific regula- with RWTH Aachen and other partners. Furthermore, Lenzing is in
73
74 Sustainability
Sustainability Report 2022 Lenzing
Group
exchange with manufactures of pulp form alternative cellulose new technologies, which help to reduce impact on the environ-
sources (like straw) and evaluating the suitability of these pulps. ment for these materials while maintaining product quality. By con-
trast, in woody plants like trees, these components are concen-
The development of further new sources of non-wood-based cel- trated in the bark, which can be easily removed in the first stage of
lulose in the future will require targeted research into the ecological the process.
and economic aspects of industrial production as well as increased
cooperation. A number of challenges need to be addressed and are Paper industry experience of these sources is of limited use since
described in more detail below. dissolving pulp has to meet very different quality and purity require-
ments. While modern breeding and harvesting concepts have been
Availability developed, a new biorefinery process for annual plants still has to
Alternatives such as bamboo, straw, and various annual plants do be adapted to the special requirements, not to mention circulation
not yet meet Lenzing’s needs in terms of availability in the required management for process chemicals and treatment of impurities
quality and quantity. Many sources from annual plants are only originating from the plants. So far, no established industrial process
available in the harvesting season and are difficult to store for year- meets these prerequisites.
round use. Annual plants are thus especially suitable for seasonal
production campaigns. Despite specific benefits and high annual For more information, please see the “Wood & pulp” focus paper.
growth per hectare, the material is very bulky and more costly to
transport. This favors obtaining the raw materials locally and keep-
ing production capacities small. Water stewardship
Environmental sustainability [GRI 303-1, 303-2; ESRS E3-1, E3-2, E3-3]
The conversion of forest to agricultural land for annual plants is a

Along the entire life cycle of Lenzing’s products, ensuring access
worldwide phenomenon that increases pressure on all kinds of for-
to affordable, reliable, and adequate water supplies is essential to
ests. Its drawbacks can be seen with palm oil production, for ex-
the effectiveness and efficiency of not only Lenzing’s operations,
ample. As well-managed forests store much more carbon per hec-
but also those of its suppliers, the local communities, and down-
tare than annual crops, this trend adversely affects the carbon bal-
stream customers. Lenzing is actively engaged in the assessment
ance of the entire value chain. The carbon balance must therefore
and management of the water footprint of its operations and prod-
be thoroughly calculated while including all co-products from an-
ucts, as well as the associated risks, in order to minimize the direct
nual plants.
and indirect impacts.
Another important factor in the performance of annual plants is the

Lenzing has established an internal Group-wide performance
management of the agricultural areas. Highly productive sites need
standard on water emissions regardless of site locations. This
far more fertilizers and pesticides than forests, causing other envi-
standard is based on proven industrial processes, such as the EU
ronmental issues. For example, the overall environmental profile of
BAT reference documents and ZDHC standards, and is regularly
large-scale bamboo plantations is known to be unsatisfactory.
reviewed and updated.
When considering processing, important factors that affect the en-

By using external assessment tools (e.g. World Resource Institute
vironmental impact include energy consumption and the use of
(WRI) and World Wide Fund for Nature (WWF)), the contextualized
process chemicals in pulp production. They depend heavily on the
situation of effluent-receiving water bodies is currently considered
actual process and vary significantly from one annual plant to the
from a superficial level but will be increasingly evaluated for the
next. For instance, dissolving pulp can be made with cotton linters,
future development of the Lenzing’s Group Environmental Stand-
as practiced by the viscose industry in some regions. However, the
ard.
pulping process uses substantial amounts of chemicals and energy.
If cotton linter pulp facilities are not state-of-the-art, resource use,
The Lenzing Group considers water-related issues in the upstream
emissions, and waste could be higher for cotton linter pulp.
and downstream value chain of its products. The Life Cycle As-
sessment (LCA) methodology is useful for identifying hot spots and
Technical feasibility
supports strategic decision-making. Lenzing aims to contribute to
Apart from not causing additional environmental issues, fibers pro-
the sustainable use of water wherever it can exert a direct or indi-
duced with alternative feedstock must meet the same quality cri-
rect influence.
teria as derived raw material wood fibers. The biorefinery process
for derived raw material wood fibers is closely aligned with the raw
This includes the consumption of fresh water as well as the dis-
material. This keeps quality and efficiency high and yields bioen-
charge of process water and effluents, which are the subject of
ergy as a co-product. With non-wood feedstocks, less bioenergy
Lenzing’s Group Environmental Standard and Water Policy. These
may be generated as a co-product, requiring additional energy
presuppose continuous monitoring and reporting according to En-
sources for processing the feedstock into dissolving pulp, resulting
vironmental Management System, GRI, CDP and other water-re-
in a potentially negative environmental impact.
lated standards and guidelines. Figure 20 illustrates Lenzing’s con-
tribution in this context at different stages of the value chain.
Annual plants contain more mineral components and organic sub-
Lenzing helps its customers reduce their water-related impacts by
stances that have to be removed to produce high-quality dissolving
providing solutions with LENZING™ fibers to replace water-inten-
pulp. This purification typically requires the use of aggressive
sive fibers and/or avoid the most polluting steps in the value chain
chemicals and causes waste issues. It is a big challenge to develop
according to Higg MSI data.
74
75 Sustainability
Group
Material topic: Water use & pollution

[GRI 3-3; ESRS E3-1, E3-2, E3-3]

–
Actions taken
–Positive
•
•
Update of life cycle methodology to assess water footprint of
products and technologies
Integration of global water-related assessment tools into risk
• Better product water footprint through higher proportion of management
Lenzing pulp and expansion of specialty product manufacturing
• Further development of Environmental Key Data (EKD) reporting
• LCA-based communication of Lenzing’s products with improved to comply with updated GRI indicator requirements
water footprint helps value chain partners fulfill their water tar-
• ZDHC MMCF wastewater guidelines implemented at viscose
gets
production sites
• Development of industry benchmarks and contribution to multi-
• CDP water reporting
stakeholder initiatives such as ZDHC
–
• Environmental management system based on ISO 14001:2015 (in-
cluding risk assessment and internal audits to ensure effective-
Negative ness of the measures implemented)
• Continuous development of Group Environmental Standard
Own activities:
• ZDHC MMCF roadmap
• Physical risk of water scarcity affecting operations
• Regular Global QESH meetings with management review
–
• Water pollution can affect the health of employees and commu-
nity residents as well as the surrounding environment

• Water pollution can affect the health of employees and commu-
–
–Policies and commitments Stakeholder

• Group Water Policy • Zero Discharge of Hazardous Chemicals (ZDHC)
• “Naturally positive” sustainability strategy with “Water steward- For more information, please see the “Stakeholder engagement” chapter.
–
ship” focus area
• Lenzing Group sustainability targets
• Lenzing Group ISO 14001:2015 certification Responsible
• Group Policy for Safety, Health and Environment • CEO
• Site managers
–
• Global Supplier Code of Conduct Supporting
• Wood and Pulp Policy • Global QESH
• Higg FEM • Performance.Improvement.Technology
75
76 Sustainability
Group
Water stewardship Figure 20
Water use is diligently managed in

all production facilities. The objective
of water management at Lenzing is
to close loops through recycling and
Sustainably managed forests which reusing water and to minimize
are part of the natural water cycle, environmental impacts through
ensuring the availability of fresh water continuous improvement of waste-
Conserve water treatment
water
Certified plantations that conserve resources
water resources
Wood Careful water

sourcing use and
efficient
treatment
Pulp and
Bio- End of life fiber
degradability manufac-
turing
Water
Stewardship
TÜV certified biodegrad-

able and compostable Textile and
Final nonwoven
LENZING™ fibers are products Reduced
biodegradable and com- manufacturing water
postable. consumption
and pollution
Reduced
water
footprint
For example reduced

Substanial reduction of consumption and pollution of
water impacts of final water in the dyeing step of the
products by products value chain through net-benefit
blended with LENZING™ product TENCEL™ Modal with
fibers Eco Color Technology
(dope-dyed)
Especially at the product level, LCA is the primary tool being used change. In this respect, Target-setting will thus also consider the
for assessing cradle-to-gate impacts and identifying areas for im- future of water resources aspects.
provement within direct and indirect operations, i.e. pulp and fiber
production or upstream supply. The procedure is supported by the Lenzing considers water to be an extremely valuable resource, en-
environmental data collection process from in-house operations, abling the production of dissolving wood pulp and cellulosic fiber
including water use, effluents, and discharge of priority substances products. Water stewardship is therefore key to carefully interact-
of concern, as well as gathering a growing volume of primary data ing with this natural resource. With water being a precious re-
on water use from suppliers. This approach is complemented by source, its increasing scarcity in many parts of the world consti-
corporate water risk assessment, contextualizing qualitative and tutes a threat to people, the environment, and sustainable eco-
quantitative information of the supply chain and own production nomic development. For example, poorly managed wood planta-
with WRI Aqueduct Water Risk Atlas and WWF Water Risk Filter. tions can put pressure on the regional water balance. Lenzing pro-
They not only support the evaluation of current water situation at cures certified wood from sustainably managed forests and there-
specific locations but also provide insight into future scenarios due fore mitigates the potential impacts of water stress. On the other
to the effects of climate change on water availability and quality. hand, some materials used in the textile supply chains occasionally
create high water impacts through water consumption and water
In order to ensure water quality and availability at Lenzing’s opera- pollution. Key issues in water stewardship are the efficient use of
tional sites, Lenzing aims to continuously reduce water consump- water in production and the use of state-of-the-art wastewater
tion and water-related emissions. Various elements are considered treatment technologies.
within the target-setting process, which acknowledges that the
water scarcity situation is changing in many regions due to climate Lenzing provides fibers with a lower water impact than other cel-
lulosic fibers in order to satisfy the growing future demand for fiber
76
77 Sustainability
Group
and innovates products that omit downstream value chain steps. Water consumption
This substantially reduces water use and impacts.
[GRI 303-3, 303-4, 303-5; ESRS E3-4]
The spinning bath in the lyocell process contains water and the sol-
All Lenzing production units are located in regions with high water
vent NMMO to dissolve the cellulose polymer prior to spinning.
availability, and are therefore not operated in water stress areas.
The viscose process uses a mix of process chemicals and water. In
Nevertheless, the objective of water management at Lenzing is to
both production technologies water is recycled by separating it
recycle and reuse as much water as possible. For example, the pulp
from process chemicals and/or solvents with very high efficiency.
mill at Paskov (Czech Republic) has a closed-loop cooling water
This is the state-of-the-art technology at all Lenzing facilities. It en-
system and therefore requires little make-up water to compensate
ables water to be saved, provides optimal pre-treatment for water
for losses. Furthermore, integrated pulp and fiber production saves
discharge, and optimizes fiber properties and quality. With the help
water by skipping the process of drying and re-moistening market
of the recovery systems, Lenzing gains marketable co-products
pulp. Pulp and fiber production facilities obtain water from adjacent
and reusable process chemicals. A final wastewater treatment
water bodies (mainly rivers and groundwater) and municipal local
stage reduces effluent charge, aiming to avoid potential harms to
suppliers. During manufacturing, water serves as a cooling and
receiving water bodies by exceeding local quality requirements.
process agent.
Water withdrawal (in megaliters)a (≤ 1,000 mg/L Total Dissolved Solids) Table 24
2014 2020 2021 2022
All areas
Surface water 103,000 82,359 87,029 80,851

freshwater 0 82,359 87,029 80,851
other water 0 0 0 0
Groundwater 14,000 12,730 12,980 14,335
freshwater 0 12,730 12,980 14,335
other water 0 0 0 0
Seawater 0 0 0 0
freshwater 0 0 0 0
other water 0 0 0 0
Produced water 0 0 0 0
freshwater 0 0 0 0
other water 0 0 0 0
Third-party water 0 6,849 6,726 5,701
freshwater 0 6,849 6,726 5,701
other water 0 0 0 0
Total water withdrawal 117,000 101,938 106,735 100,887
a) Freshwater (≤1,000 mg/L Total Dissolved Solids), Other water (>1,000 mg/L Total Dissolved Solids)
The effects of disrupted supply chains in 2022, especially in the plans in lyocell fibers will further reduce the Lenzing Group’s spe-
textile industry, were similar to the pandemic year of 2020, e.g. cific water consumption in the medium term.
unstable productions and idled lines. This is reflected in the
sustained lower absolute water use and water consumption, but
consequently also in a higher value (runaway) of specific water use Water consumption (in megaliters) Table 26
(tables 25 and 26).

2014 2020a 2021 2022
Total water consumption 9,000 5,151 8,741 8,087

Specifica water use in the Lenzing Group Index a) Due to subsequent corrections of the wastewater volumes at the Lenzing site, there
in percentage based on m3/t, 2014 = 100 % Table 25 is a reduction in water consumption of about 19 percent in the figures of 2020.
2014 2020 2021 2022
Specific water
intake/extracted 100 % 96.2 % 90.2 % 93.9 %
a) Specific indicators are reported per unit of production by the Lenzing Group
(i.e. pulp and fiber production volumes).
Substantial amounts of water are consumed by the inherent mois-

ture uptake of cellulosic fibers and evaporization in the cooling pro-
cess. The lyocell production process applied by Lenzing requires
less water than its viscose fiber production. Lenzing’s expansion
77
78 Sustainability
Group
Water discharge Table 27
2014 2020 2021 2022
Water discharged by destination (in megaliters)

Surface water 39,008 40,860 35,166
Groundwater 0 0 0
Seawater 0 0 0
Third-party water 57,779 57,133 57,633
of this amount third-party water sent for use to other organizations 0 0 0
Water discharged by water quality
Freshwater (≤1,000 mg/L Total Dissolved Solids) 67,673 69,772 66,496
Other water (>1,000 mg/L Total Dissolved Solids) 29,114 28,222 26,304
Total water discharged 108,000 96,787 97,993 92,799
Wastewater (water effluents) quirements for lyocell production but will also allow potential en-
largement of fiber production capacity. The project includes the
[GRI 303-1, 303-2, 303-4; ESRS E2-2, E2-4, E2-5] refurbishment of existing structures and new modular elements for
the most up-to-date waste water treatment. The investment
The management of water discharge-related impacts is reported
thereby extends the life cycle of the WWTP. After the project was
in chapter “Water stewardship”.
successfully approved, construction work was initiated in late 2021.
Conceptual design and clearance work continued in 2022. The
Process water is treated by biological wastewater treatment plants
project is on schedule and expected to be commissioning by the
(WWTPs). The Lenzing Group has wastewater treatment plants at
end of 2023.
all its sites except Grimsby (United Kingdom). However, the
wastewater situation at Grimsby complies with all local laws and
Sustainable pulp and fiber production comes with strict criteria not
regulations as well as the EU Water Framework Directive. In order
only for air emissions but also for water effluents and wastewater
to meet even more ambitious Lenzing Environmental Group Stand-
treatment. National or regional legislation as well as several indus-
ards, planning has begun for the construction of a wastewater
try standards and certification schemes – such as EU BAT, EU Eco-
treatment plant at the Grimsby site in cooperation with local gov-
label, and ZDHC – identify priority substances of concern and give
ernment with a view to applying new technology from an ongoing
guidance for reducing emissions and hence avoiding harmful im-
R&D project.
pacts on water bodies. Lenzing has decades of experience in the
safe handling and treatment of process chemicals used during
Organic chemicals from waste streams from the pulp production
manufacturing, including water-related issues. Lenzing has been
process are extracted early on in the biorefinery process at the
leveraging this extensive knowledge to develop and shape today’s
Lenzing (Austria), which significantly reduces the chemical oxygen
industry standards through multi-stakeholder initiatives such as
demand (COD) of effluent water. This is one example of best prac-
ZDHC. Discharge limits are included in the environmental permits
tices where potential waste streams are converted into useful
issued for all sites by relevant authorities based on national legisla-
products, thereby avoiding pollution and reducing the amount of
tion. Additional intragroup discharge limits that reflect best prac-
waste to be treated at the wastewater treatment plant.
tices may apply under internal environment standards.
Lenzing’s plant in Purwakarta (Indonesia) is making good progress

The Group Environmental Standard is designed to reflect the
in improving its wastewater after a project was launched in 2018.
benchmarks and emission thresholds of the best available technol-
Waste collection and treatment systems are flagged to be up-
ogies for industrial pulp and fiber production. The ambitious frame-
graded to ensure that wastewater treatment performance is always
work of the standard aims for continuous improvement. That said,
able to meet local regulations and future requirements. The project
some requirements have not been met by particular sites. However,
also involves constructing a water treatment system and repairing
no infringements of regulatory discharge limits occurred during the
an existing rainwater drainage system. The project is targeted for
reporting year.
completion mid-2023. This is in line with Purwakarta’s (Indonesia)
future project targets, which strongly support sustainable improve-
Sulfate emissions mainly originate from the viscose process; COD
ments that reflect best available technologies.
emissions originate from pulp and all fiber production processes.
Their reduction is part of the Lenzing Group’s sustainability targets.
In 2021, another WWTP upgrade project was approved for the site
Total emissions of COD and amines maintained same levels com-
of Mobile, USA. The lyocell plant was one of the first of its kind and
pared to last year, while sulfate emissions decreased due to lower
will undergo a modernization of the existing WWTP in order to
viscose production. This is also true for specific sulfate emissions.
meet the Group’s sustainability strategy and target for COD emis-
On the contrary, higher but still slightly instable lyocell operations
sions. This investment will not only help to fulfill future ZDHC re-
led to an increase of specific emissions of amines (tables 28 and
29).
78
79 Sustainability
Group
Absolute emissions to water
after wastewater treatment plant (t) Table 28
2014 2020 2021 2022
COD 6,110 5,510 5,666 5,056

SO4 173,648 177,003 182,576 143,528
Amines 198 233 247 250
Specifica emissions to water after

wastewater treatment plant (t) Table 29
Index in percentage based on kg/t, 2014 = 100 %
2014 2020 2021 2022
COD 100 % 99.60 % 91.70 % 90.10 %

SO4 100 % 112.60 % 104.00 % 90.00 %
Amines 100 % 130.10 % 123.30 % 137.70 %
a) Specific indicators are reported per unit of production by the Lenzing Group (i.e. pulp and fiber production volume)
Air emissions
– MANAGEMENT APPROACH
Material topic: Air emissions

[GRI 3-3]
– Actual and potential negative and positive impacts

–Actions taken
– Positive
•
•
LURA III (air cleaning system) started operations as part of vis-
cose modal production at Lenzing
Lenzing contributing to leading multi-stakeholder initiatives
• Further improvement and development of closed-loop pro- (ZDHC, SAC, etc.)
cesses and recovery technologies
• Continuous improvement activities to further reduce air emis-
• Showing leadership in pulp and fiber production with low envisions
ronmental and social impacts
–
• Environmental management system based on ISO 14001:2015 (in-
cluding risk assessment and internal audits to ensure effective-
ness of the measures implemented)
Negative
• Regular Global QESH meetings with management review
–
Own activities:
• Air emissions carry potential regulatory, technology, market and
corporate reputational risks Sustainability targets, measures and progress
• Air emissions can affect the health of employees and community For more information, please see the “Sustainability targets, measures and
residents as well as the surrounding environment
• Air emissions can affect the health of employees and commu-
–Responsible
–
• CEO
• Site managers
• “Naturally positive” sustainability strategy with “Sustainable in-
novations” focus area
–Supporting
• Global QESH
• Sustainability targets for the Lenzing Group
• Performance.Improvement.Technology
• Group Policy for Safety, Health and Environment
• Lenzing Group ISO 14001:2015 certification
• Higg FEM
[GRI 305-7; ESRS E2-4, E2-5]
79
80 Sustainability
Group
Reduction of sulfur emissions For more information about important steps taken in 2022, please
Sulfur and sulfur compounds are indispensable for the standard vis- see the “Sustainability targets, measures and progress” chapter.
cose fiber manufacturing process. Lenzing has dramatically re-
duced sulfur emissions over the decades by increasing cycles and Absolute emissions to aira Table 30
recovery systems. Although all of the Lenzing Group’s viscose fiber
2014 2020 2021 2022
production sites (Lenzing, Austria; Nanjing, China; and Purwakarta,
Indonesia) are equipped with waste gas purification and recovery Sulfur emissions (t)
(CS2, H2S emissions
technologies, some carbon disulfide (CS2), hydrogen sulfide (H2S), expressed as sulfur) 34,787 19,187 25,969 21,449
and sulfur dioxide (SO2) is emitted from the process itself and from SO2 emissions (t) 3,908 2,135 2,603 2,419
on-site energy production. The planned second carbon absorption NOx emissions (t)b 587 1,321 946
plant (CAP) project in Indonesia is on schedule. It will be essential a) Sulfur emissions were calculated using mass balance, and SO2 emissions are based
for reducing specific sulfur emissions by 50 percent by 2023 (sus- on measurements.
tainability target 1).
b) NOx data is only available on Group level from 2019 onwards respectively for the In-
donesian production facility since 2021.
In 2022, the absolute and specific air emissions reduced slightly
compared to 2021 due to lower production level. CS2 emissions Specific emissions to air Table 31
have fallen at the Austrian site in Lenzing due to the new emission
Index in percentage based on kg/t, 2014 = 100 %
treatment system that went into operation at the beginning of 2021
(table 30). 2014 2020 2021 2022
Sulfur emissions 100 % 60.90 % 73.80 % 67.10 %

Lyocell fiber production generates only trace emissions since SO2 emissions 100 % 60.30 % 65.90 % 67.40 %
NMMO, an organic solvent, remains in the water/solvent cycle
throughout the entire process and is recovered at a rate of more
than 99.8 percent.
For more information about other waste streams besides waste
water and air emissions, please see the “Waste management”
chapter.

80
Health & safety
Material topic: Health & safety

[GRI 3-3; ESRS S1-1, S1-5]
A safe working environment with supportive health systems for Lenzing’s employees are as critical to business success as eco-responsible products and
production processes. Healthcare at all Lenzing locations has been continously enhanced especially throughout the COVID-19 crisis.

• Lenzing Corporate Action Plan (COVID-19)
–
• Safety, Health & Environment Action Reporting System
• Management of risk processes
Positive • Regular Global QESH meeting with management review
• A safe work environment, and supportive health measures for • Regular meetings of health and safety committees at every pro-
employees enables an engaging and contributive workforce duction site
• Upcoming generations of talent are likely to value purpose, fulfil- • Heartbeat for Safety Program
ment and social responsibility more highly than ever before • IOSH safety training
• Educating, training and motivating employees to behave safely • Safety Walks and Talks
and to care for each other
• Monthly safety webinars
• Occupational medical services to ensure that employees are fit
• Provision of health services
and well, offering health surveillance to support workplace risk
• eMotion program with “Moveeffect” app
–
management and employee health screening to support health
and wellbeing
• Protecting people based on the belief that every adverse event,
injury and occupational illness is preventable Sustainability targets, measures and progress
–Negative
Lenzing Group target: To reduce the Total Recordable Frequency Rate
(TRIFR 45) to 0.3 by 2025.
Own activities:
For more information, please see the “Sustainability targets, measures
• Occupational health and safety risks for own employees, visitors and progress” chapter.
–
and contractors
• Talent attraction and retention

Stakeholder
•
•
Employees
Contractors
• Better Growth strategy
• Local communities
• HR Strategy
• Enforcing authorities
• Policy for Safety, Health and Environment
• Certification bodies
• ISO 45001:2018 certification
–
• Health guiding principle (“House of Health”) Responsible
• Life-Saving Rules Group Guideline
–
• Managing Board
• VP Global QESH
Actions taken • VP Corporate Human Resources

• Senior leadership roles
• Health Climate Index survey for employees to develop a work
climate everybody feels comfortable with • Health & safety is a shared responsibility through all layers of the
organization
–
• Health promotion campaigns e.g: Boost your immune system
• “ZUKUNFT SICHERn” (Safe Future) safety project at the Lenzing
site Supporting
• COVID-19 care measures: offering vaccinations, tests
• Corporate Communications
• Total recordable frequency rate reaching group target
• Regularly held safety webinars
45
TRIFR refers to the number of reportable cases in a workplace per 200,000 hours worked
81
82 Sustainability
Group
[GRI 403-2; ESRS S1-5] Key figures: occupational accidents
Employee health and wellbeing is a fundamental prerequisite for and work-related injuries
the Lenzing Group’s long-term success and business growth.
[GRI 403-9; ESRS S1-14]
Lenzing is morally, ethically and legally responsible for occupa-
tional health and safety, which ensures the wellbeing of Lenzing’s
Current performance compared to previous years
employees, contractors and visitors (e.g. customers).
In 2022, zero fatal accidents were recorded and Lenzing’s Total Re-
cordable Injury Frequency Rate (TRIFR) 46 met the current target,
The Lenzing Group’s health management system (“House of
with a reduction for employees from 0.8 in 2021 to 0.6. In addition,
Health”) is based on the salutogenesis concept, which is tailored to
the TRIFR for contractors decreased from 0.8 in 2021 to 0.4 in 2022.
the individual social and health care systems of the countries where
The employee rate for all work-related injuries rose from 3.0 in 2021
Lenzing operates. It provides a conceptual framework for targeted
to 3.3 in 2022, while the rate for contractors decreased from 1.6 in
investments in the health of Lenzing’s employees. Global Health
2021 to 1.1 in 2022.
Care Management works closely with the regional employees re-
sponsible for health issues as well as the department of Quality,
High-consequence work-related injury
Environment, Safety and Health (QESH).
In terms of broader personnel safety performance, high-conse-
quence work-related injury events (i.e. injuries from which the
worker cannot, does not, or is not expected to recover fully to pre-
Policies injury health status within six months) have remained at zero since
[GRI 2-23, 2-27, 403-4; ESRS S1-1, S1-17]
2019.
A safe working environment and supportive health systems for Work-related injuries for all employees
Lenzing’s employees are as critical to business success as eco-re-
2020 2021 2022
sponsible products and production processes. Lenzing’s approach
to keeping people safe and healthy is anchored, among other prin- Total hours worked (productive 13,661,177
working hours) 14,572,350 (15,440,743) 16,510,667
ciples, in the Better Growth corporate strategy and the Policy for
i) Number of fatal injuries 0 0(0) 0
Safety, Health and Environment. For more information, please see
Rate of fatal injuries 0 0(0) 0
the "Naturally positive" sustainable strategy and the “Business eth-
ii) Number of high-
ics” chapter. consequence work-related
injuries 0 0(0) 0
For more information about compliance with laws and regulations, Rate of high-consequence
work-related injuries 0 0(0) 0
processes to remediate negative impacts, and an overview of any
iii) Number of recordable
instances of non-compliance, please see the “Business ethics” work-related injuries 67 55(59) 52
chapter. Rate of recordable work-
related injuries 0.92 0.81(0.76) 0.6
Health and safety committees iv) Number of work-related

injuries or ill health 179a 205(220) 272
Where occupational health & safety committees are a regulatory
Rate of work-related injuries 2.46 3.01(2.85) 3.3
requirement, formal agreements with worker representatives are in
Bracketed data includes major projects in 2021.
place and all employees of Lenzing are represented by such com- a) Reduction partly related to COVID-19
mittees, which operate at a site level. Each individual site is respon-
sible for arranging and maintaining such committees. Specific de-
tails on how often the committees meet, agenda items and the
make-up of representatives are in the responsibility of the SHE Work-related injuries for other workers
managers and subject to agreement with union representative.
2020 2021 2022
Total hours worked (productive 5,917,437
Targets working hours)

i) Number of fatal injuries
4,179,812 (30,706,268)
0 0(0)
16,500,795
0
Rate of fatal injuries 0 0(0) 0
Lenzing has set a target at Group level to reduce the Total Record-
ii) Number of high-
able Frequency Rate (TRIFR) to 0.3 by 2025. Additionally, site tar- consequence work-related
gets were developed based on the Group target and actual perfor- injuries 0 0(0) 0
mance, taking into consideration the size of a site. Building on the Rate of high-consequence
work-related injuries 0 0(0) 0
TRIFR targets, sites set goals for leading indicators, breaking them
iii) Number of recordable
down to the departmental level and develop site-specific safety work-related injuries 18 23(42) 30
programs that they coordinate with Global Occupational Health Rate of recordable work-
and Safety (OHS). related injuries 0.86 0.78(0.27) 0.4
iv) Number of work-related
injuries or ill health 31 47(232) 92
Rate of work-related injuries 1.48 1.59(1.51) 1.1
Bracketed data includes major projects in 2021.
46 TRIFR refers to the number of total recordable cases occuring in a workplace per 200,000 working
hours.
82
83 Sustainability
Group
Top five work-related injuries
2020 2021a 2022
Cuts and lacerations –50 Cuts & lacerations –19 Cuts & lacerations –64
Bruises –21 Fractures –11 Bruises –33
Strains –17 Strain –6 Abrasions –32
The top five work-related injuries for Chemical burns –15 Hot burn –5 Chemical burn –32
employees Abrasions –15 Sprain –5 Strain –23
Chemical burns –7 Cuts & lacerations –11 Cuts & lacerations –20
Cuts and lacerations –5 Fractures –5 Foreign body –13
Abrasions –4 Bruise –5 Chemical burn –10
The top five types of injuries for Fractures –4 Sprain –5 Abrasions –8
contractors Bruises –3 Condition due to substances –4 Fracture –8
a) 2021 data analysis is for total recordable injuries only
Health care at Lenzing production O C C U PAT I O N A L H E A LT H P R O T E C T I O N D U R I N G

facilities THE PANDEMIC – ONE EXAMPLE
Construction site in Brazil
[GRI 403-3] It was very important for the Lenzing Group to be able to continue con-
struction work in Brazil. An extremely dedicated external company (with
several doctors and medical support staff) was contracted to provide
Lenzing gives employees at almost all production sites access to medical care for personnel. A physician was also hired to manage and
an in-house primary care system and is working on implementing coordinate all COVID-19 issues. In addition, extensive rapid antigen test-
it at all sites in 2023, complementing the existing health systems of ing and PCR testing was carried out in Brazil at a very early stage in col-
laboration with an external laboratory.
the individual countries. This also applies to our new plants in Brazil In 2022 this medical service was converted into a suitable offering for
and Thailand. The sites and their Health Care facilities are visited by permanent employees at the meanwhile regular production site in Brazil.
an occupational physician from the Lenzing Health Care & Wellbe-
ing department at irregular intervals to ensure the quality of those
services.
Occupational health and safety
[GRI 403-1, 403-5; ESRS S1-1, S1-14]
Lenzing draws on the services of medical partners in the regions
around the sites to offer its employees a diagnosis and therapy ser- The vision of Lenzing is to “leave home healthy, come home
vice tailored to local needs. The range of medical services extends healthy”. The aim is to provide a working environment and culture
from several medical examinations and therapy sessions per week where people actively engage and drive health and safety excel-
at the sites in Mobile (USA) and Grimsby (United Kingdom) through lence. At Lenzing, it is recognized that all employees can influence
to health care services for family members at a clinic in the vicinity the health and safety performance and, through individual owner-
of the production site in Purwakarta (Indonesia). ship and engagement, employees can contribute to a safer work-
place.
The large production plants in Lenzing and Purwakarta also have
their own outpatient clinics with qualified medical staff for quick, Leadership is critical to engagement, and this is the central theme
competent outpatient treatment of acute conditions and injuries as of the safety webinars, which were developed specifically for lead-
well as their own ambulances to ensure prompt follow-up treat- ers. The webinars outlined the journey in relation to “Accidents to
ment at special medical facilities. Zero”, which commenced in 2021, and continued in 2022 with the
aim of maintaining momentum in pursuit of this. In total, seven
Lenzing facilities have first aiders trained in certified basic and reg- webinars were held in 2022 covering topics such as safety as a
ular refresher courses. core value, unsafe acts, safety communication, culture and leader-
ship. In sum, more than 450 people participated from different
Occupational medical care functions including members of the Managing Board.
In 2022, Lenzing continued to work on the gradual development of
a coordinated network for occupational medical care that exceeds Lenzing also ensures that all employees receive adequate training
the minimum standards required by the individual countries. By en- on occupational health & safety topics, which is determined in line
hancing competence in occupational medical care, Lenzing will with the specific hazards to which employees are exposed while
ensure that employees and managers have the best resources carrying out their tasks. Training schedules are prepared for each
available to protect themselves from and deal with risks in the calendar year alongside refresher schedules in accordance with
workplace. regulatory and compliance requirements. Additionally, induction
training is given to both contractors and visitors to the various sites.
The COVID-19 pandemic was also a challenge for occupational
medical care at all Lenzing sites. Additional tasks such as COVID- Lenzing’s Safety Management System governs its approach to
19 testing, contact tracing and staff information were incorporated minimizing health, safety & environmental risks and, is based on
into daily activities. Thanks to the well-coordinated teams at the standards by the International Organization for Standardization.
various sites and the excellent preparation for global crisis man- Within this context, the company remains focused on its ongoing
agement, Lenzing Group has been able to manage the pandemic measures with regard to occupational health and safety perfor-
well so far. To date, there have been no major outbreaks at the sites. mance as well as monitoring leading and lagging indicators. The
83
84 Sustainability
Group
safety dashboards ensure that the teams have access to daily re- A large number of workers who are not employed by Lenzing work
ports on key safety performance metrics as part of their manage- at Lenzing operating sites and premises. As a result, contractors
ment dashboards. are carefully selected, with due consideration given to the strict
occupational safety criteria that Lenzing set for its own employees.
For more information about Lenzing’s SHE policies, please visit the Most have certified management systems for occupational health
Lenzing website. & safety. Where this is not possible the company expects its con-
tractors to be part of the regional contractor competency schemes
or will put in place additional controls to monitor occupational
Health promotion health & safety when this is not possible. There is also a Lenzing
nominated person as a direct contact for these contractors work-
[GRI 403-6, 403-7] ing under its control. When it comes to landlord and tenant health
& safety, responsibility is shared and managed appropriately.
In addition to numerous regular activities at the company's sites,
fitness training has been the focus of the Lenzing Group's health-
promoting measures since 2019. These programs are designed to
motivate and support employees in adopting a healthy lifestyle at H EA LTH C L I MATE I ND EX ( H C I ) S UR V EY
work and during their leisure time. Due to the pandemic, activities Since 2021, all employees have been surveyed twice a year about their
were still restricted in 2022. psychosocial working conditions. An index is compiled based on 17
questions on the topics of “health, social capital, effort, reward, control
of work tasks, recreation, meaning, support, respect and development”.
A healthy living app specifically tailored to companies (Moveef- The trend in this index over several survey rounds reflects the evolution
fect®) was adapted to meet the needs of the company and the var- of the working climate at the individual company sites. While each em-
ployee received personal feedback on its stated working conditions,
ious countries in which Lenzing operates. It was then distributed to
which can be discussed with its manager, the survey results are anony-
all employees for voluntary use. The app aims to encourage em- mous for evaluation and reporting purposes. A summary of the results
ployees to become more active via features such as feedback tools and the trends at the individual sites are discussed at Group manage-
ment level and, based on these discussions, areas on which to focus are
on the user’s own exercise habits, personal and group targets,
drawn up with a view to improving or optimizing the internal working
ranking options, and small-scale competitions. It also offers a plat- climate. The goal is to create an as positive and attractive work environ-
form for communicating about personal fitness activities and initi- ment as possible for all employees at the Lenzing Group. In four survey
rounds, the HCI was pretty much stable at a good level of around 67
ating group activities. In the last two years the company used the
percent. An HCI of 100 percent would mean optimal working conditions
app’s appointment booking feature to offer COVID-19 vaccinations for all participating employees. The participation rates in both survey
and “COVID-19-safe” health checks to employees at the site in rounds in 2022 increased versus 2021 to 54 percent and 50.4 percent,
respectively.
Lenzing.
“LENZ ING, WE CA R E! ” INITIATIVE
The COVID-19 pandemic and countermeasures taken by countries to

protect their health care systems put a lot of stress on many people. In
addition, COVID-19 protection measures put in place at companies
were perceived to be stressful by some employees. During this time,
Lenzing intensified its efforts to provide easily accessible psychological
help for employees in need at all sites and established regular digital
information meetings, at least at some sites. In autumn 2022, the com-
pany restarted the program with a broader focus on the various simul-
taneous crises and their impact on its employees. As the crisis takes dif-
ferent forms in different countries, Lenzing defined and prepared some
key elements at a corporate level, and all sites rolled out a program ad-
justed to the specific needs of their employees. Elements of the program
include hotlines and/or experts to provide help in cases of personal psy-
chological, social or financial crisis, basic information on how to deal
with a crisis and the creation of internal information channels.
84
85 Sustainability
Group
Human rights & fair labor practices
Material topic: Human rights & fair labor practices

[GRI 3-3, 406-1; ESRS S1-1, S1-5, S1-17, S3-4]
Diversity, inclusion and respect are core pillars of a talent strategy designed to attract and develop talent from all backgrounds. A committed and empowered
workforce is critical to business success, and Lenzing acts to provide equal opportunities for employment, learning and development. The company seeks to
create an open-minded and inclusive environment by proactively fostering ethical ways of working in compliance with high internal standards, as well as
principles outlined by international regulatory bodies. Lenzing continues to adhere to and uphold human rights and fair labor practices in all aspects of the
global working environment.
–Actual and potential negative and positive impacts • Lenzing Group Short Term Incentive Plan
–
• Global Salary Administration Guidelines
• Global Learning & Development Guideline
Positive • Global Performance Management Guideline
• Good labor practices promote staff safety and wellbeing and en- • Global Guideline for Creating a Job Description
sure healthy and satisfied employees
• Modern Slavery Act Transparency Statement (UK only)
–
• Launch of a clear and appealing purpose with people focus at its
core to deliver the Better Growth strategy
• Enabling personal success and contributing to the growth and Actions taken
success of the company
• Training on diversity topics for HR Business Partners
• Diversity promotes the quality of business decisions and contrib-
• 3rd party audits on social sustainability topics conducted for sev-
utes to the company’s resilience
eral sites
• Competitive advantage through a committed workforce
• Preparatory work carried out for creation of Employee Resource
• Development of a corporate culture that is characterized by Groups (ERGs)
openness and mindful interactions
• Performance and talent management processes expanded to all
• Definition of related targets of social sustainability white-collar staff
• Global Performance and Talent Management processes in place • Structured performance management processes with regular
• Global Skill Matrix and Functional Competency Frameworks in employee feedback
order to offer the right learning and development opportunities • Insightful talent data availability on career ambitions and potential
to employees future career paths and development opportunities
• Comprehensive set of business policies that set clear standards • Competency framework expanded to HR and Global Engineering
and processes regarding the behavior of leaders and employees
–
organization
• Skills matrix piloted at Lenzing site with six production areas -
identification of additional departments to proceed further
Negative
• Eye-to-eye partner for local unions, works councils, and other
Own activities: workforce representatives
• Employee training programs (HR capability academy, technical
• Risk of losing employees with high potential academy for Global Engineering, Commercial capability acad-
• Risk of reducing the engagement and productivity of employees emy)
• Risk of negatively impacting on the mental health of leaders and • Focus on digital learning led to a globally available catalog with
employees over 100 eLearning courses in German, English and Portuguese,
covering a range of topics from business to personal develop-
• Risk of not being able to hire and train a successor in time
ment and wellbeing.
• Regional social projects
Business relationships: • Compensation & benefit benchmarks and grading systems
• Application of 4-eye principle
• Risk of discrimination and other possible negative impact on hu-
• Whistleblower system and investigation directive
–
man rights
• Potential regulatory and corporate reputational risks
• Risk of failing to attract future talent or losing employees due to Sustainability targets, measures and progress
a lack of initiatives on diversity, equity and inclusion • No cases of discrimination or human right abuses, based on Dis-
• Risk of not meeting regulatory requirements with regard to the crimination ILO 111 Article 1, were reported.
share of different genders in executive management • No strikes at any Lenzing production facility
• Risk of losing know-how through demographic change
–
• The increasing importance of this topic led to the implementation
of a dedicated Social Sustainability unit within the Corporate
People Development department.
• Local Labor Right laws
85
86 Sustainability
Group
• Local Employee Terms and Conditions For more information, please see the “Sustainability targets, measures and
• 17 Sustainable Development Goals of UN progress” chapter.
–
• 10 principles of the UN Global Compact
• Lenzing’s Purpose, Culture & Strategy
Stakeholder
• Policy on Human Rights and Labor Standards
• Employees
• Lenzing Group Reward Guideline
• Local communities
• Rating agencies
• Policy for Safety, Health and Environment
• Brands & retailers
• Certification bodies
• Wood and Pulp Policy
• Suppliers
• Sustainability Policy
–
• Lenzing Sustainability Goals
• HR Strategy
• Global Anti-Bribery and Corruption Directive Responsible
• Global Whistleblower Directive • CEO
• Global Compliance Investigation Directive • VP Corporate Human Resources
•
•
•
Anti Money Laundering Group Directive
Global Recruitment Guideline
Global Job Evaluation Guideline
–Supporting
• Corporate Communications
[GRI 406-1; ESRS S1-17] Group. Those that explicitly come from Human Resources are de-
scribed in more detail below.
A company directly or indirectly impacts its employees, but also
the workers in the value chain, its customers, and the local com-
● Policy on Human Rights and Labor Standards
munities around its sites. Social sustainability is about identifying
This policy confirms the company’s commitment toward hu-
and managing the positive and negative impacts of the company
man rights and the principles proclaimed in the Universal Dec-
on people. Social sustainability is therefore one of the three pillars
laration of Human Rights (UDHR), United Nations Global Com-
of the holistic sustainability approach (Environment-Social-Gov-
pact (UNGC), OECD Guidelines, and the Rights at Work of the
ernance). The Lenzing Group is committed to conducting business
International Labour Organization (ILO). Lenzing believes in
in a manner that respects the rights and dignity of all people.
employee satisfaction and wellbeing as well as fostering com-
Lenzing respects internationally recognized human and labor rights
pliance with standards.
for all employees and business partners.
● Global Recruitment Guideline
This guideline clarifies the position approval process as well as
Labor rights are subject to national laws. Employees at all Lenzing
key rules and roles for the collaboration required to recruit or
sites receive fair wages thanks to a highly regarded internal global
transfer talent using sound hiring decisions through a fair and
grading system, collective bargaining, the activities of union repre-
unbiased process.
sentatives, and national protections for human rights. The EcoVadis
● Lenzing Group Reward Guideline
supplier assessment tool includes fair labor rights in the upstream
This guideline sets out the guiding principles and reward phi-
supply chain. The Lenzing Group’s own labor practices are also
losophies of the Lenzing Group with the aim of attracting and
evaluated through the yearly assessment which is conducted by
retaining staff while also maintaining internal and external eq-
EcoVadis.The wood certification systems used by Lenzing ensure
uity.
that labor conditions meet the requirements of the International La-
● Global Guideline for Creating a Job Description
bour Organization`s (ILO) Core Conventions.
This guideline provides a global process for creating a job de-
scription to ensure standardization and comparability of jobs.
The Lenzing Group’s corporate culture is characterized by long-
● Global Job Evaluation Guideline
term partnerships, close collaboration, and mutual respect based
This guideline has been created to ensure a globally consistent
on open dialog and transparency. Social sustainability is regarded
approach is taken towards job evaluation using the Korn Ferry
as a corporate value and has consequently been integrated into
Hay grading methodology.
Lenzing’s global human resources (HR) strategy, HR policy, and HR
● Lenzing Group Short-Term Incentive Plan
processes.
This plan confirms the structure and targets of the annual bo-
nus set by the Board.
Global Salary Administration Guidelines
Policies
●
These guidelines have been compiled to define the administra-

[GRI 2-23; ESRS S1-1, S2-1, S3-1]
tive standards required to ensure that an individual employee’s
base salary is set at a level that is market-competitive, internally
The policies and guidelines listed in the Management Approach equitable, and performance driven.
“Human rights and fair labor practices” apply to the entire Lenzing ● Global Learning & Development Guideline
86
87 Sustainability
Group
This guideline provides an overview of L&D processes to en- Enhancing community wellbeing
sure the Lenzing Group is prepared for further growth by hav-
ing key employee competencies and skills developed. [GRI 413-1, 413-2; ESRS S3-1, S3-4]
● Global Performance Management Guideline

The Lenzing Group’s various production sites operate in specific
This guideline informs employees and managers how to set
ecological, social, and economic environments. A map showing
goals at the start of the year and review them during and at the
the locations can be found in the “About the Lenzing Group” chap-
end of the year in order to share feedback and recognize
ter. Lenzing businesses and their regional partners are mutually de-
achievements.
pendent, sharing opportunities as well as challenges.
● Modern Slavery Act Transparency Statement (UK only)
This statement provides an annual update on the actions taken
Community wellbeing is therefore necessary for the company’s
by the business in combating modern slavery.
continued operations. As a good corporate citizen, the Lenzing
Group promotes the beneficial development of the communities
For more information about further policies, please see the “Busi-
and regions where it operates. This is achieved through safe and
ness ethics” chapter.
eco-friendly operations, fair employment practices and contribu-
tions to local economic development and community life.
Human rights
The Lenzing Group fosters a safety culture and a sustainable work-
Promoting societal wellbeing is a key cornerstone of Lenzing’s
ing environment for the benefit of all employees, all local commu-
“Naturally positive” sustainability strategy and more than just a
nities in which the company operates, and all business partners.
question of ensuring society’s acceptance of Lenzing’s activities.
The employees and the company’s social responsibility towards
The Lenzing Group takes its responsibility as a large industrial com-
them come first in everything Lenzing does. It is imperative that the
pany and reliable corporate citizen very seriously, even outside its
entire global network of the Lenzing Group fulfills, and wherever
direct business operations. The company strives to help improve
possible, exceeds all applicable social and ethical obligations. Sup-
the living conditions of its neighbors. Lenzing relies on them just as
pliers are held to the same high standards.
much as they rely on Lenzing.
The United Nations Global Compact (UNGC) is one of the world’s

In addition to conducting safe and environmentally responsible op-
most important initiatives for responsible corporate governance.
erations with fair business practices, Lenzing provides support to
As a member, Lenzing is committed to upholding human rights, re-
numerous social and environmental protection projects, often over
specting the rights of employees and their representatives, pro-
many years. It also promotes local activities, from educational initi-
tecting the environment, enabling fair competition and combating
atives to healthcare and infrastructure measures. The individual
corruption. The principles of the UN Global Compact are incorpo-
production sites of the Lenzing Group act autonomously for the
rated into the company’s strategy and thus into the corporate cul-
most part in selecting specific projects and measures that support
ture as well. The company regularly publishes information from all
local development and contribute to a positive social environment.
the countries in which it operates about its efforts to implement
For more information, please see the “Social responsibility” focus
these principles.
paper. Details on Lenzing's handling of complaints can be found in
the “Buiness ethics” chapter.
The Lenzing Code of Conduct creates a framework with ethical
standards within which the Lenzing Group operates. It also pro-
Managing social sustainability
vides firm guidelines and directives for individual themes and areas
that require particular attention, such as corruption prevention,
In the reporting year, the company defined its purpose, culture and
money laundering, counterterrorism, compliance with human
strategy anew for the coming years. In its "Better Choices" corpo-
rights, occupational health and safety standards, and the protec-
rate culture, the Lenzing Group focuses on the topic of "people" as
tion of whistleblowers. They serve to protect the individual and the
a strategic link. Accordingly, the topic of social sustainability has a
company.
high priority at Lenzing as part of its holistic approach to sustaina-
bility. It is increasingly being seen as a compliance topic within the
To fulfill the requirements of corporate due diligence, Lenzing
industry. This requires a systematic agenda and the management
monitors adherence to laws, human rights principles, and applica-
of social sustainability targets, which is why the Social Sustainabil-
ble environmental standards not only internally, but also at its sup-
ity department (within Human Resources – Corporate People De-
pliers and within its supply chains.
velopment) was established at the beginning of 2022 to aggregate
activities there and drive the topic forward. Further details on the
Compliance with human rights is essential and non-negotiable for
targets and a progress report can be found in the “Sustainability
the Lenzing Group. The company looks to internationally accepted
targets, measures and progress” chapter.
foundational principles and rights when it comes to work as per the
International Labor Organization (ILO).
Corporate citizenship
Communication
Both locally and internationally, the Lenzing Group takes its social
The policies and guidelines are accessible to all employees via the
responsibility as a corporate citizen seriously and makes a major
intranet and are also sent by e-mail. Information about engagement
contribution to strengthen the economy in the regions where it op-
and communication with stakeholders can be found in the “Stake-
erates. This is confirmed yet again by a study of the socio-eco-
holder engagement” chapter.
nomic and regional economic importance of the Lenzing Group,
conducted by the Gesellschaft für Angewandte
Wirtschaftsforschung KG (Innsbruck, Austria) for the year 2022.
87
88 Sustainability
Group
The study concludes that the business operations of the Group number of jobs that were created in the respective region indirectly
have measurable socio-economic effects that extend far beyond – through the company's input and supply chains – and induced
purely economic (business) aspects. through the spending on consumption and investment of the di-
rectly and indirectly generated income. The number of these jobs
Overall, the study concludes that the Lenzing Group creates significantly exceeds the number of staff directly employed by the
23,424 jobs worldwide. Every job within the Lenzing Group creates company.
more than two additional jobs in another branch of the economy.
Furthermore, the public sector benefits in the form of tax revenues The socio-economic effects of the activities of the Lenzing Group
and social security contributions. The study also quantifies the in 2022 are summarized in the table below.
Socio-economic effects of Lenzing's activities: Main results for 2022 Table 35
Additional compensation of
Site Number of employeesa Additional gross domestic product Created employmentb
employees
Lenzing (Austria) 2,931 EUR 906.4mn EUR 532.1mn 7,788

Heiligenkreuz (Austria) 324 EUR 113.7mn EUR 74.6mn 1,317
Paskov (Czech Republic) 489 EUR 127.3mn EUR 55.4mn 1,322
Grimsby (United Kingdom) 220 EUR 60.6mn EUR 35.9mn 621
Purwakarta (Indonesia) 1,523 EUR 93.2mn EUR 64.8mn 3,926
Nanjing (China) 762 EUR 115.1mn EUR 51.2mn 2,620
Mobile (USA) 217 EUR 75.7mn EUR 48.0mn 720
Prachinburi (Thailand) 301 EUR 34.0mn EUR 31.6mn 1,156
Indianópolis (Brazil) 949 EUR 140.0mn EUR 77.3mn 3,953
Total 7,716 23,424
Source: Lenzing Group, 2023. GAW, 2023.
a) Full-time equivalents (FTE). Only the nine production sites are considered.
b) Full-time equivalents (FTE)
The effects also include impacts from 2023 onwards, as the activities of the Lenzing Group in 2022 will not only result in economic effects in 2022, but also in subsequent years.
Works council Companies with a diverse workforce are 35 percent more likely to
outperform their competitors. According to a People Management
The Lenzing Group’s management is committed to a transparent article published in 2020, diverse teams are 87 percent better at
information policy towards the employees’ official representatives. making decisions, while companies employing an equal number of
There are local works councils at the facilities in Lenzing and Heili- men and women produce up to 41 percent higher revenue based
genkreuz. In accordance with the Austrian Labor Constitution Act, on a study conducted by Clear Company in 2022.
representatives of the Lenzing AG works council at the Lenzing site
have seats and voting rights on the Supervisory Board. The In addition, more diverse companies have a greater likelihood of
Lenzing AG works council represents the interests of employees at winning top talent and improving and promoting employee reten-
the sites in Lenzing and Heiligenkreuz, Austria. At all other sites ex- tion and satisfaction. A Glassdoor study conducted in 2018 shows
cept Thailand, there are trade union representatives from various that 2 out of 3 candidates look for companies that have diverse
factions and/or employee interest groups to represent the con- workforces; 76 percent of job seekers report that diversity is an es-
cerns of the workforce. sential factor when evaluating potential employers and job offers.
In addition, a study conducted by Deloitte University in 2015, high-
lights that millennials are 83 % more likely to be engaged at work at
Diversity inclusive companies. In a 2019 article, Josh Bersin supports the
view that diverse employers are 1.7 times more innovative. This sug-
[GRI 405-1, 413-1; ESRS S3-4] gests that diversity is likely to bring a competitive advantage for
companies when attracting and retaining talent.
Why diversity and inclusion matters for
Lenzing People perform best when they feel empowered, respected, and
valued by their colleagues and by their manager and top manage-
Lenzing is committed to creating a diverse and inclusive environment in general. Promoting diversity, equity, and inclusion is a win-
ment where people feel that they belong and can succeed regard- win-win for organizations, employees, and society. The clamor for
less of characteristics such as gender, age, ethnicity, cultural back- diversity, equity and inclusion encompasses and cuts across gen-
ground, or language. der, age, race, ethnicity, cultural background, language, religion,
sexual orientation, and disabilities. Lenzing data around diversity at
Companies that have greater workplace diversity outperform their different levels of the organization suggest a need for increasing
competitors by a significant margin. According to a McKinsey the diversity of the workforce and continuing to shape Lenzing’s
2020 report, there are many reasons to strive for a more inclusive culture towards a more inclusive company. The following section
and more diverse workforce, including greater innovation and en- shows Lenzing’s demographic data for its workforce as well as rel-
gagement and fostering diverse ideas. However, ethnically and evant insights.
gender diverse companies achieve higher profits as well.
88
89 Sustainability
Group
International workforce Diversity per age (all employees) Figure 21
The Lenzing Group’s workforce is becoming increasingly interna- 19%

tional. Despite the company’s firm roots in Europe, an international 21%
Under 30
corporate culture has evolved in the Lenzing Group based on Over 50
strong collaboration between its sites in Asia, Europe, and the
Americas. The management team actively supports the interna-
tionalization of the workforce at all levels. At the same time,
Lenzing remains an agile, hands-on company committed to service
60%
excellence while still preserving a close-knit community culture.
30-50
For details on the different nationalities working in the Lenzing

Group, please see the table in the annex.
Diversity per Site Figure 22
Heiligenkreuz Nanjing
Paskov China
Czech Republic Austria
Grimsby Istanbul Seoul

United Kingdom Türkiye Korea
New York Lenzing Hongkong Shanghai

Mobile USA Austria China China
USA
Coimbatore Taipeh
India Taiwan
Indianópolis Purwakarta
Prachinburi
Brazil Indonesia
Thailand
Jakarta
Singapore
Indonesia
Singapore
Female Male
In the Lenzing Group’s Policy on Human Rights and Labor Stand- gender, age, color, national origin, ethnicity, social background,
ards, Lenzing undertakes to respect and support fundamental labor sexual orientation, family responsibility (including pregnancy), dis-
rights and principles such as protection from discrimination, har- abilities, political opinion, sensitive medical conditions, marital sta-
assment, and inhumane treatment. This encompasses protection tus, and any other discrimination in working conditions. These top-
against employment decisions based on personal characteristics ics are also reflected in the Lenzing Global Code of Conduct,
or beliefs that are not related to the ability to do one’s job, including which all employees are required to follow.
89
90 Sustainability
Group
Based on the gender diversity analysis carried out in 2021 and the ● In Lenzing’s global Learning & Development catalog, more
results of the focus groups formed for this purpose, HR managers than 170 training courses (face-to-face, eLearning and blended
received special diversity training in the past fiscal year. Together learning courses) are available.
with Shape Talent, a renowned UK based agency, the company is ● The digital content creation process has been centralized to
currently working on the implementation of Employee Resource ensure high quality eLearning. This should also maximize learn-
Groups to address topics such as Women@Work or ethnicity to- ing success.
gether with committed and interested employees. ● A digital train-the-trainer program has been launched globally
to promote internal knowledge transfer, and ensure that em-
In order to make the workforce more aware of the topic, a corre- ployees who already have advanced functional competencies
sponding eLearning course was offered at the end of 2022 and are equipped with didactic skills to train their colleagues.
promoted as the “Course of the Month”.
A total of 1,902 trainings of these eLearnings courses have been
For detailed information about the social impact assessment, booked globally in 2022 via the L&D catalog.
please see the “Materiality analysis” focus paper.
It is important to highlight that the goal for employees was to de-
cide for themselves whether they really wanted to complete an en-
Learning and development tire chapter or even a course, or just watch different videos to fill
their knowledge gaps. Having had a total of 3.404 learning chap-
[GRI 404-2; ESRS S1-4] ters completed is therefore a great success.
Lenzing employees take responsibility for their own personal and

Total expenditure on lifelong learning and personnel development
professional development. To enable their continuous, individual
increased from EUR 4.03 mn in 2020 to EUR 6.19 mn in 2021 and it
development, Lenzing has developed a global Learning & Devel-
was EUR 6.75 mn in 2022. This includes group-wide expenses by
opment (L&D) catalog. The catalog is part of the Lenzing internal
Bildungszentrum Lenzing (BZL). Therefore, the group-wide consol-
learning management system Learn@Lenzing and allows employ-
idated expenses for trainings in 2022 are EUR 2.48 mn. (2021:
ees to individually browse through development opportunities. It
EUR 2.46 mn, 2020: EUR 1.38 mn).
includes formal training programs as well as social learning and ex-
periential learning opportunities.
Implementation of Global Performance and
Talent Management
This 70:20:10 (70 percent experience / on-the-job learning,
20 percent social learning and 10 percent formal learning) blended
Lenzing rolled out two fundamental people development pro-
learning approach has proven to be invaluable in adult develop-
cesses in 2021: Performance and Talent Management. The com-
ment. It was rolled out in Lenzing in 2021 and was promoted again
pany is stepping up its efforts to support the development of indi-
as part of Lenzing’s performance management process on an an-
vidual employees and the company as a whole by defining signifi-
nual basis. The catalog is available to all Lenzing sites in English. In
cant performance and talent management processes, clarifying
addition face-to-face training opportunities, many eLearning
roles, and developing a digital system.
courses are offered as well.
The global Performance Management process is there to manage,

In February 2022 the new global Learning & Development guide-
support and ensure the performance of teams and individuals with
line was launched to ensure processes, and the use of tools and
respect to goals through the use of clear and personal accounta-
systems, were standardized for the professional development of
bility. With easy and accessible processes and tools, the company
employees. This was done via specific training for all HR Business
manages performance to execute and deliver its Better Growth
Partners and via email to the entire workforce.
strategy, achieve the strategic choices and shape a culture of sus-
tainable business performance and high engagement.
As the global pandemic still affected many countries in 2022, face-
to-face training only started again slowly. Lenzing continued the
Lenzing defines performance as an action or process to accom-
expansion of its digital training offering. A representative cross-
plish a task or function in line with the company's values. The com-
section of the training sessions includes:
pany cares about not only what is achieved, but also how it is
achieved. Together, these two aspects define the performance of
● In the areas Commercial, Global Engineering and HR, func-
an individual. Both processes were rolled out to the entire Lenzing
tional academies have been set up to provide learning oppor-
Group this year.
tunities based on the identified needs from the competency
assessment. As part of the academies, a total of 25 different
Global Talent Management aims to accelerate talent development
training topics have been offered in 34 training sessions to
and enable promising individuals to grow with the business. The
more than 700 employees during 2022.
Talent Management process is designed to understand and sup-
port the needs of the Lenzing Group and to develop the right talent
Individual learning path offerings
mix to implement Lenzing`s Better Growth strategy. Furthermore,
● Over 120 new eLearning courses are available worldwide with
Talent Management helps to develop a strong internal talent pipe-
the selection ranging from business topics to personal devel-
line of successors to key positions in the future.
opment and well-being. Courses can be booked by the em-
ployees according to their individual needs.

90
Talent Management Figure 23 2. Global leadership program
The new global leadership program will be launched in 2023 for
Our guiding
principles e consistency of T
the first target group. In the following years, all managers will em-
ensur
We anagement practices alent
M
W
bark on this leadership journey. This program focuses on enabling
an e c
cu
s d b om behavioral change toward increased accountability, feedback,
fo ata us bi
in
d
y openness and teamwork. Lenzing believes that higher engagement
al s
ne ss g
qu ay
e
Talent
it
on alw
pe row
Planning
will lead to higher efficiency in how it achieves its goals and create
rs th
e
on
W
Talent
al
Aquisition
engagement and belonging for the employees. Additionally, the
company ensures that the new purpose to “Advance our world
bran
We d by different oyer
with better choices”, and the Better Growth strategy, are imple-
We alig r str sses
ategy
d
Succession,
rive our empl

Readiness mented and well understood within the entire Lenzing Group.
n proce
& Retention
Talent
Management
with ou
Onboarding
3. Re-skilling & up-skilling the employees
iation
&
Integration
Individual The company believes that reskilling and upskilling are essential for
Leadership &
Management developing a talent-leading company like Lenzing. To achieve em-
ion ity,
Development
us rs
Performance ployees’ full potential, learning must be extended beyond tradi-
cl ve
W at
in n di
e h al
Management
av e
tional training methods. Lenzing strongly believes in a blended

so
nt lea u
e
m der oc &
e f ty
in s w W qui
ds
et ith e learning approach for the best results. This approach is also clearly
We empower
our employees
reflected in its digital training portfolio. Lenzing continues to offer
Our Talent
Management shorter, more individual, Lenzing-specific learning opportunities so
practices that all employees can build their own learning path and thus max-
imize their learning success.
Lenzing has launched the implementation of Global Talent Man-
agement for the entire white-collar workforce in 2022. Therefore, 4. Strategic talent actions
482 (84 percent) managers have been trained in this process and The growth of both Lenzing and its employees is a win-win situa-
learned the benefits of it. This resulted in having talent data availa- tion and a smart approach to staying on top of best practices.
ble for 98 percent of the white-collar workforce and 777 out of Workforce development allows Lenzing to have the best talent in
2,519 (31 percent) positions having at least one successor in place. the field and tends to build strong cross functional relationships. By
This provides key insights regarding people and allows the business investing in people and showing them that the business care about
to make sounder decisions. their growth, it also promotes employee engagement, retention
and attraction. Therefore, rigorous talent actions will be planned
Milestones 2022 and followed up quarterly with each business area to track pro-
gress against delivery.
● 2,300+ employees have set their performance goals in Suc-
cessFactors, that is 88 percent of the white-collar employees. 5. Committed to diversity and inclusion
● 95 percent of the 1,200 people from last year’s scope, suc- Lenzing has started its journey towards a more diverse, equitable
cessfully completed a performance review of their perfor- and inclusive company and is committed to the implementation of
mance goals 2022. different coordinated actions aiming to raise awareness of diversity
● 1,000+ employees have filled in their talent card and shared and gender equality. Engagement workshops, employee resource
their background and ambitions. groups to discuss women, ethnicity and LGBTQI+ topics, train the
● 84 percent of all 563 people managers have been trained in trainer programs, and diversity training are some of the actions that
the Talent Management process. are taking place during the upcoming months.
● 2,400+ employees have data on potential, performance, re-
tention risk, potential development availability and succession Competency framework
options.
● 777 succession plans for key positions that provide a next pos- The Lenzing Competency Framework concept was developed in
sible career step for employees. 2020. Each framework consists of leadership and functional com-
petencies. The leadership competencies align with the Better
Talent targets Growth leadership model and are globally consistent for all Lenzing
employees. The functional competencies describe the required
1. Sustainable talent management level of competency for the specific business area. By assessing
Lenzing prioritizes the development of employees by differentiat- employees according to the expected competencies of their job
ing employees by talent, identifying learning gaps and anticipating role, Lenzing is able to systematically identify its employees’
development needs, and implementing development actions. The strengths and development needs. It can then leverage these in-
Talent Management approach has been launched for all white-col- sights to provide individual learning opportunities and prioritize dif-
lar employees and there are plans to consolidate the process for ferent training initiatives. In 2021, almost 200 colleagues from the
the blue-collar workforce in a pilot group in 2023. A new Talent Commercial area assessed their own competencies. The Com-
Management digital eLearning module will be available in 2023 on mercial Academy was developed based on the insights from the
the different parts of the process so that new joiners can learn competency assessments. In 2022, the concept was rolled out to
about the process, as can employees who want to consolidate their the first set of target groups in Global Engineering and Human Re-
process knowledge. sources. In total, more than 300 employees assessed their own
competencies.
91
92 Sustainability
Group
Lenzing will roll out the competency framework to all white collar A structured people development approach can be implemented
employees in the coming years to be able to analyze the develop- for operational staff that focuses heavily on blue-collar employees.
ment needs of individuals and teams. Since this area is one of the first departments to have instituted a
standardized yet tailored skills matrix in place, so called “learning
Skill matrix paths” will guide people to achieve the required skill levels and en-
able them to succeed in their respective roles and workplaces. In
Mid of 2021, Lenzing started to develop a global skill matrix for the addition, a performance and talent management process for blue
production area. The project started as a local pilot at the Lenzing collar areas is in scope to be piloted. This project can be seen as a
site, but with a global mindset. The objectives of the Lenzing skill blue print for a structured people development process in opera-
matrix are versatile. First of all, the Skill Matrix will support Lenzing tional areas that will be globally available in the near future.
in ensuring that employees are equipped with the required skills to
perform tasks in a safe and quality focused manner. Furthermore,
the skill matrix will enable Lenzing to fulfill legal and ISO require- Employees in numbers
ments.
[GRI 2-7, 2-8, 2-21, 2-30, 401-1, 405-1; ESRS S1-6, S1-7, S1-8, S1-16]
Integrated Manufacturing Capability Approach

Compared to previous years, the ongoing progress and develop-
(IMCA)
ment of Lenzing’s project in Brazil (+297 employees) has greatly
contributed to increasing group headcount in 2022. The main rea-
The IMCA project (Integrated Manufacturing capability approach)
sons for employees leaving in 2022 are retirements and mu-
should enable both white and blue collar employees in Vis-
tual/voluntary contract terminations. This is reflected in all figures
cose/Modal at the Lenzing site to constantly develop themselves
in the following tables.
according to the area's vision.
Employees 2022
General information required 2020 2021 2022
Total number of employees 7,358 7,958 8,301

Female 1,090 1,244 1,394
Male 6,268 6,714 6,907
thereof in Austria 3,482 3,575 3,675
thereof in Indonesia 1,614 1,633 1,523
thereof in Czech Republic 410 451 491
thereof in China 839 873 867
thereof in USA 210 221 222
thereof in UK 203 218 225
Others (India, Thailand, Türkiye, Korea, Singapore, Taiwan and Brazil) 600 987 1,298
Total number of employees – full time 6,904a 7,500 7,823
Female 797 933 1,075
Male 6,107 6,567 6,748
Total number of employees – part time 454 458 478
Female 293 311 319
Male 161 147 159
Number of apprentices 184 184 188
Female 22 20 31
Male 162 164 157
Total number of supervised workers 433 444 261
a) Due to a transition to a 5-shift system, these employees (= 0.9 FTE) were counted as part-time employees in the previous reporting years. From 2020 onwards they will be
counted as full-time employees and therefore be included in the full-time employees figures.
92
93 Sustainability
Group
Employees 2022 Table 37
Employee turnover 2020 2021 2022
Number of employees that left the company, total 566 598 898
Female 105 125 153
Male 461 473 745
Up to 30 119 135 184
Between 31 and 50 240 262 448
Over 50 207 201 266
Austria 244 222 278
Indonesia 123 86 206
China 95 98 99
Czech Republic 24 22 27
USA 11 20 41
United Kingdom 8 17 24
Others (India, Thailand, Türkiye, Korea, Singapore, Taiwan and Brazil) 61 133 223
Percentage of employees that left the company (turnover rate), total 7.7 % 7.5 % 10.8 %
Female 18.6 % 21 % 17 %
Male 81.5 % 79 % 83 %
Up to 30 21.0 % 23 % 20 %
Between 31 and 50 42.4 % 44 % 50 %
Over 50 36.6 % 34 % 30 %
Austria 43.1 % 37 % 31 %
Indonesia 21.7 % 14 % 23 %
China 16.8 % 16 % 11 %
Czech Republic 4.2 % 4% 3%
USA 1.9 % 3% 5%
United Kingdom 1.4 % 3% 3%
Others (India, Thailand, Türkiye, Korea, Singapore, Taiwan and Brazil) 10.8 % 22 % 25 %
Annual total compensation ratio 2022 Table 38
Employee category Compensation category Compensation a)

Ratio Percentage
Annual compensation
Highest paid individual (rounded to thousands) € 666,000 19.60 1,959 %
Median annual total
All employees (excluding compensation
highest paid individual) (rounded to thousands) € 34,000 1.00 100 %
a) Before taxes and including bonus payments
For further information, please see the Remuneration Report.
Collective bargaining agreements first 6 months under a fixed-term contract followed by an auto-
Lenzing complies with the local labor standards in all countries of matic transition to a permanent employment/service relationship.
operation. Collective agreements cover 82.4 percent (2021: Only around 2 percent of the workforce (including external person-
80.2 percent, 2020: 84.0 percent, 2019: 81.9 percent) of the nel) have a genuine fixed-term employment/service contract that
Lenzing Group’s global workforce. 99.5 percent (2021: 95.0 per- goes beyond the usual 6-month fixed-term period. For this reason,
cent, 2020: 91.1 percent, 2019: 98.9 percent) of employees are sub- there is no further separate breakdown into permanent/fixed-term
ject to notice periods governed by labor law or collective agree- employment contracts.
ments.
Employment contracts
Most Lenzing Group employees are employed in a permanent em-
ployment/service relationship. It is currently customary to work the
93
94 Sustainability
Group
Employees 2022
Newly hired employees 2020 2021 2022
Number of newly hired employees, total 888 1,198 1,241

Female 185 279 303
Male 703 919 938
Up to 30 152 285 275
Between 31 and 50 465 644 705
Over 50 271 269 261
Austria 213 315 378
Indonesia 2 105 96
China 96 132 93
USA 12 31 42
Others (India, Thailand, Türkiye, Korea, Singapore, Taiwan and Brazil) 536 520 534
Percentage of newly hired employees, total 12.1 % 15.1 % 15.0 %
Female 20.8 % 23.0 % 24 %
Male 79.2 % 77.0 % 76 %
Up to 30 17.1 % 24.0 % 22 %
Between 31 and 50 52.4 % 54.0 % 57 %
Over 50 30.5 % 22.0 % 21 %
Austria 24.0 % 26.0 % 30 %
Indonesia 0.2 % 9.0 % 8%
China 10.8 % 11.0 % 8%
Czech Republic 2.0 % 5.0 % 5%
USA 1.4 % 3.0 % 3%
United Kingdom 1.2 % 3.0 % 2%
Others (India, Thailand, Türkiye, Korea, Singapore, Taiwan and Brazil) 60.4 % 43.0 % 43 %
Employees 2022
Employees with disabilitiesa 2020 2021 2022
Lenzing Group 101 90 82

Austria 79 69 61
USA 2 2 4
Indonesia 2 2 2
China – – –
Brazil 7 9 7
a) No formal recording of numbers of employees with disabilities is conducted at the site in Grimsby (United Kingdom) since there is no definition provided by local legislation.
Individuals within the organization’s governance body (Managing and Supervisory Board)a 2020 2021 2022
Number of individuals, total 14 14 12

Up to 30 0 0 0
Between 31 and 50 2 4 4
Over 50 12 10 8
Female 2 2 2
Male 12 12 10
Percentage of individuals
Up to 30 0% 0% 0%
Between 31 and 50 14 % 29 % 33 %
Over 50 86 % 71 % 67 %
Female 14 % 14 % 17 %
Male 86 % 86 % 83 %
a) Excluding Supervisory Board members appointed by works council, members of Supervisory Board are not included in any other headcount figure/table, apart from this one.
94
95 Sustainability
Group
Employees 2022
Individuals outside the organization’s governance bodya 2020 2021 2022
Number of individuals, total 7,353 7,953 8,298

Up to 30 1,337 1,487 1,578
Between 31 and 50 4,341 4,722 4,980
Over 50 1,675 1,744 1,740
Female 1,090 1,244 1,394
Male 6,263 6,709 6,904
Up to 30 18.2 % 19 % 19 %
Between 31 and 50 59.0 % 59 % 60 %
Over 50 22.8 % 22 % 21 %
Female 14.8 % 16 % 17 %
Male 85.2 % 84 % 83 %
a) Including Supervisory Board members appointed by works council
Employees 2022
Category 1 white collar manager
Category 2 blue collar manager
Category 3 supervised worker manager
Table 43
Individuals within managing role – overall (at least one direct) 2020 2021 2022
Number of individuals, total 836 941 932

Up to 30 32 34 40
Between 31 and 50 507 586 587
Over 50 297 321 305
Female 128 155 171
Male 708 786 761
Up to 30 4% 4% 4%
Between 31 and 50 61 % 62 % 63 %
Over 50 36 % 34 % 33 %
Female 15 % 16 % 18 %
Male 85 % 84 % 82 %
Number of employee category 1, total 653 748 738
Up to 30 16 17 21
Between 31 and 50 388 466 460
Over 50 249 265 257
Female 115 138 153
Male 538 610 585
Percentage of employee category 1
Up to 30 2% 2% 3%
Between 31 and 50 59 % 62 % 62 %
Over 50 38 % 35 % 35 %
Female 18 % 18 % 21 %
Male 82 % 82 % 79 %
95
96 Sustainability
Group
Up to 30 16 16 19
Between 31 and 50 108 109 122
Over 50 43 46 44
Female 11 13 14
Male 156 158 171
Up to 30 10 % 9% 10 %
Between 31 and 50 65 % 64 % 66 %
Over 50 26 % 27 % 24 %
Female 7% 8% 8%
Male 93 % 92 % 92 %
Up to 30 0 1 0
Between 31 and 50 11 11 5
Over 50 5 10 4
Female 2 4 4
Male 14 18 5
Up to 30 0% 5% 0%
Between 31 and 50 69 % 50 % 56 %
Over 50 31 % 45 % 44 %
Female 13 % 18 % 44 %
Male 88 % 82 % 56 %
96
97 Sustainability
Group
Business ethics
Material topic: Business ethics
[GRI 3-3]
Lenzing and its people are expected to act with honesty and transparency in line with the Group’s Global Code of Conduct and corporate governance policies.
These expectations of compliance reach beyond legal requirements and regulatory standards as the company strives for exemplary quality in all products,
processes and dealings with customers, partners and shareholders. It is the responsibility of all employees and contractors to uphold these standards and to
help create a culture of tolerance and integrity. Lenzing continues to develop its Compliance Management System to ensure the company acts to prevent
misconduct, mitigate compliance risks and effectively safeguard its people. Training in business ethics ensures that all employees understand the behavior
expected of them and contributes to an environment where the people feel comfortable raising concerns or reporting misconduct. Suppliers are also expected
to adhere to the highest professional and ethical standards in the industry.
–Actual and potential negative and positive impacts • Implementation of local standards/limits for gifts and hospitality
–
• Employees trained on business ethics issues
• Anonymous management survey on Compliance Risks at Lenzing
Positive • Awareness campaign on whistleblowing
• Compliance through a shared culture of values • No corruption incidents
• Preventive measures via whistleblowing • Working on/Development of a Group-wide compliance eLearn-
• Prevent retaliation against those who raise a concern ing for Code of Conduct
• Promote trust and confidence in business dealings • Working on concept of ongoing Compliance Risk Assessment
• Maintain corporate reputation • Compliance with Lenzing Global Code of Business Conduct and
• Avoid conflicts of interest, misrepresentation, bias and negli- internal group-wide directives
gence • Reporting incidents via BKMS® (Business Keeper Monitoring
• Prevent and report bribery and other forms of corruption System) whistleblower system (“Tell us”)
–Negative
•
•
Following up procedure for reported incidents
Transparent reporting within Lenzing’s Corporate Governance
Report
Own activities: • Leading by example: supervisors, leaders, and managers act as
role models
• Violation of fair and compliant business practices leading to • Compliance trainings for employees
• Compliance Register Tool (e.g. gifts and hospitality)
–
• reputational damage and resultant loss of public trust
• loss of clients and business partners
• value depreciation in the capital market Sustainability targets, measures and progress
Business relationships: progress” chapter.
• Non-compliance with laws, regulations and obligations due to

constantly changing internal and external business environment –
–
Stakeholder engagement
• Employees
Policies and commitments • Suppliers
• Lenzing Global Code of Business Conduct • Governments
• Lenzing Global Supplier Code of Conduct • Customers
• Policy on Human Rights and Labor Standards • Membership associations
• Modern Slavery Act Transparency Statement For more information, please see the “Stakeholder engagement” chapter
• Sustainability Policy and focus paper.
•
•
•
Quality Policy
Policy for Wood and Pulp
Policy for Safety, Health and Environment (SHE)
–Responsible
• Managing Board
• Anti-Bribery and Corruption Directive (ABC Directive)
• VP Global Legal, IP & Compliance
• Local Guidance Document for the ABC Directive
• Local Compliance Manager
–
(e.g. registration system for gifts/hospitality)
• Antitrust Directive
• Whistleblower Directive Supporting
• Issuer Compliance Directive • Corporate Communications
• Anti Money Laundering Directive (AML Directive)
97
98 Sustainability
Group
• Know-How Protection Directive • Corporate HR
–
Actions taken
•
•
•
Corporate Audit & Risk
Corporate Sustainability
Global Process Information Technology
• Updating Code of Conduct, Anti Money Laundering Directive
(preparing for update) • Site managers
[ESRS G1-1, G1-3] and in compliance with the rules in every situation. At the same
time, it points out to Lenzing employees that violations of the Code
of Conduct have serious consequences (civil, criminal, administra-
Naturally compliant tive criminal and/or disciplinary consequences, up to and including
termination of employment). The Lenzing Global Code of Conduct
Lenzing’s mission of compliance is available to all employees in the Group languages on the intranet
Lenzing is a global company and naturally acts in a compliant man- (“Lenzing Connect”) and is also accessible to external stakeholders
ner. The Compliance Management System is an integral part of the on the company website. It is supplemented by the Global Supplier
Lenzing Group's reporting system. The compliance function aims Code of Conduct which outlines Lenzing’s expectations for sup-
to advise and support all Lenzing employees, executives and man- plier conduct with respect to safety and health at work, labor and
agers through preventive risk-oriented measures and consistent human rights, environmental protection, ethics and management
detection and response processes, ultimately protecting them practices. An overview of other publicly available policies to which
from the negative consequences of violations of laws and values. Lenzing has committed can be found here.
Compliance goes beyond adhering to legal requirements Policies

Lenzing strives to achieve exemplary quality in products and pro-
cesses, as well as integrity and honesty in dealing with business [GRI 2-23, 2-24; ESRS G1-1]
partners and shareholders. Compliance at the Lenzing Group not

All policies of the Lenzing Group are available under the following
only stands for compliance with legal regulations and regulatory
link: Compliance – Lenzing – innovative by nature. For international
standards. Compliance for Lenzing is a question of attitude that
regulations references in the Group’s policies, please see the “In-
also reflects a culture of tolerance and integrity when dealing with
tergovernmental regulation references in policies” table in the an-
one another. Thus, the subject of compliance via the active respon-
nex. To ensure that no human rights violations occur within the
sibility of all employees and executives, as well as a shared culture
sphere of Lenzing’s influence, Lenzing has a Human Rights Policy,
of values is firmly anchored within the entire Group.
which refers to the Organisation for Economic Co-operation and
Development (OECD), International Labour Organization (ILO) and
To Lenzing, compliance is teamwork
the Universal Declaration of Human rights (UDHR). For more infor-
mation on policies stipulating respecting human rights, please see
Lenzing’s compliance organization is transnational and composed
the “Human rights and fair labor practices” chapter. Each of the
of international experts led by the Group Compliance Officer, who
policy commitments was approved by the Managing Board of
reports directly to the managing board and the supervisory board.
Lenzing AG, the former Executive Committee or the Management
The executives of the Lenzing Group have the task of ensuring that
Directors of Lenzing Fibers Grimsby Ltd. (Modern Slavery Act of
the rules are known, understood and adhered to by all employees.
Lenzing Fibers Grimsby Ltd.). Policies and Directives are available
For more information on the role of the highest governance body
to all employees via the intranet or e-mail. They exist in the follow-
in overseeing the management of impacts, please see the Corpo-
ing languages: German, English, Czech, Chinese, Bahasa, Portu-
rate Governance Report. Lenzing expects its employees to comply
gues and Thai.
with its rules of conduct. They are also asked to be alert, examine
carefully and report anything that can be improved or any violation
Lenzing Global Compliance prepares its guidelines and directives
of rules and values that is detected.
in accordance with the document control process specified by
Global Quality Management. Processes and minimum require-
Lenzing Global Code of Conduct
ments are thus ensured globally. The document manager (“care-
Compliance measures and business ethics are crucial for Lenzing
taker”) in Compliance is the Group Compliance Officer, who thus
to comply with a multitude of legal regulations and standards at
has the responsibility to disseminate a document to relevant busi-
various sites and countries around the world. Lenzing attaches
ness units. Compliance guides and materials are stored in Len-
great value to the integrity and legally compliant behavior of all em-
zingConnect and made available to compliance stakeholders. The
ployees and business partners. Therefore, Lenzing has anchored its
resources are managed, updated and supplemented by Lenzing
principles for compliant behavior in the Lenzing Global Code of
Global Compliance.
Conduct. It serves as a guideline, orientation aid and advisor at the
same time, so that all employees know how to react appropriately
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99 Sustainability
Group
Hierarchy of compliance guidelines and directives Figure 24
Policies are a statement of the intent within the Lenzing Group

Policies
Directives Directives are binding by definition for all employees of the Lenzing Group
Guidelines Guidelines are procedural documents for the Lenzing Group
A certain degree of freedom for local needs and relating document

Other Documents types such as Instructions
Lenzing’s internal rules and principles Anti Money Laundering Directive and Know-How Protection Di-
[GRI 2-26; ESRS G1-1] rective.
Besides the Lenzing Global Code of Conduct, there are additional

Compliance Management System
internal rules and principles of conduct (known as directives) that
help to ensure that daily actions are in line with the applicable legal
The objective in setting up and continuously developing the Com-
frameworks and Lenzing’s demand for integrity from each individ-
pliance Management System is to prevent, detect and respond to
ual employee. Directives define rules of conduct that are binding
compliance violations against the interests of the company, to
for all employees of the Lenzing Group. Classifying a document as
avoid liability risks and damage to the company's reputation, to ad-
a directive always implicates the decision that non-conformance
vise and safeguard the company's management, executives and
with the content of the directive may incur penalties and, in the
employees, and to increase efficiency by coordinating existing
worst case, layoffs. Important directives include, amongst others,
compliance activities.
the Anti-Bribery and Corruption Directive, the Antitrust Directive,
the Whistleblower Directive, the Issuer Compliance Directive, the
The Compliance Management System corresponds to the follow-
ing structure (figure 25):
Elements of the Lenzing Compliance Management System Figure 25
Business strategy Company values

Management responsibility and supervision
Prevent Detect Respond

Compliance Risk Assessment & Monitoring
Code of Business Conduct Whistleblower system Compliance investigation

Directives, Policies Employee interview / surveys Case documentation
Processes and controls Business partner check Sanctioning
Compliance training / consulting Audit, reviews Process / control improvement
Compliance Advisory Data analysis Remediation
Compliance communication – internal and external
Evaluation and documentation
Continuous improvement process
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Compliance is based on the corporate values of the Lenzing Group minimum standards to ensure that Lenzing’s activities are con-
and its measures promote integrity within the company. Formal ducted ethically and with integrity. The goal of this Directive is to
structures, such as the assignment of responsibilities, ongoing ensure that all relevant anti-bribery and corruption regulations are
monitoring and structures for communication, evaluation and doc- known and observed across the Lenzing Group. The Directive ap-
umentation are essential components of the Compliance Manage- plies to all operations and activities in compliance with all applica-
ment System. ble anti-corruption laws, including the Austrian Criminal Code, the
United Kingdom Bribery Act 2010 and the US Foreign Corrupt
The ongoing compliance program is based on the following pillars: Practices Act. It clearly defines what bribery, corruption and accel-
eration payments mean and provides guidelines on what is consid-
● Measures to prevent misconduct ered acceptable behavior. Receiving and giving gifts, as well as ac-
● Measures to detect compliance risks and weaknesses cepting and giving hospitality or invitations, require – depending
● Measures to respond to misconduct and identified weak- on the monetary value – specific approval within the Compliance
nesses in order to avoid them in future. Register Tool. Country-specific limits have been defined for all le-
gal entities.
At the meetings of the Supervisory Board's Audit Committee on
March 1, 2022, September 7, 2022 and November 16, 2022, the Know-How Protection Directive
Compliance Officer reported on the content, objectives and status Specialization and innovative strength are key factors for the world-
of the compliance organization, the structure of the Compliance wide success of Lenzing. In today’s economy, information and
Management System, training, internal and external investigations Know-How as a result of R&D investments, creativity and business
and various compliance measures (communication, surveys) in a initiatives have become the most important factors for developing
separate agenda item. and maintaining competitive advantages. Lenzing’s Know-How is
a central asset that must be preserved and protected using all the
protective measures at Lenzing’s disposal. The protection of know-
Directives how relates not only to Lenzing’s leadership in technology, but also
extends to its many different activities worldwide, including busi-
Anti Money Laundering Directive (AML Directive) ness secrets. Every employee is a key factor in Lenzing’s future
Lenzing Group is committed to the highest standards of ethical know-how protection program and is directly affected by the
business principles and commits to fight money laundering and ter- Know-How protection process described in this directive.
rorist financing (ML&TF). Money launderers aim to introduce
money from illegal transactions into legal circulation. Terrorists aim
to obtain money from illegal and also legal transactions for terrorist Detective measures
activities. Lenzing avoids business with criminals and uses a series
[GRI 2-16; ESRS S2-3]
of preventative measures to ensure that money laundering and ter-
rorist financing are not unwittingly aided and abetted. The “AML Lenzing takes the complaints seriously and takes immediate action
Directive” describes the processes and control mechanisms imple- once it becomes aware of potential negative impacts. Lenzing has
mented at Lenzing. The directive was introduced in 2020. In 2022 established grievance mechanisms. There are various internal re-
tools for the KYC (Know Your Counterpart) process were intro- porting channels for employees. Externally, there is the possibility
duced to identify Lenzing counterparties and verify their identities. to submit indications via an online tool, which is not only available
Furthermore counterparties can be checked for adverse media, to all employees of the Lenzing Group, but also to customers, sup-
Politically exposed persons (PEP) and sanctions to mitigate the risk pliers and other third parties throughout the world. The online tool
of business relationships with illegitimate business activities. is also accessible through the Lenzing webpage: Compliance -
Lenzing - innovative by nature.
Antitrust Directive
Lenzing does not tolerate or participate in any business conduct, Whistleblower directive
transaction or activity that violates the antitrust and competition The purpose of Lenzing's Whistleblower Directive is to encourage
laws applicable to it. The company respects applicable trade laws all employees to speak up in good faith against potential violations
and restrictions as imposed by the United Nations or other national of laws, the Global Code of Conduct or Lenzing’s internal rules and
or supranational bodies or governments. To ensure that all relevant principles. The directive aims to provide all employees with more
antitrust regulations are known and adhered to within the Lenzing concrete guidance and information on how to report compliance
Group, Lenzing's internal Antitrust Directive serves as a supple- concerns about actual or potential rule violations. It emphasizes
ment to the Lenzing Global Code of Conduct. It applies to all busi- that for reports which were made in good faith (i.e. with a reason-
ness activities and operations in accordance with applicable com- able suspicion that a potential violation has occurred, is occurring,
petition law. It informs all employees how to behave correctly when or is likely to occur), the parties involved are protected from sub-
dealing with business partners and shows which activities may sequent punishment, discrimination, retaliation, disadvantage, har-
pose an increased risk of antitrust violations. Furthermore, this di- assment or termination for making reports. Lenzing takes all con-
rective helps to promote trust in business dealings, preserve cerns raised under the Whistleblower Directive serious and defines
Lenzing’s reputation and avoid or reduce costs, risks and damages clear processes in this Directive on how reports are handled inter-
resulting from a violation of antitrust law. nally, who is involved in any necessary investigations, and what the
consequences are for identified violations.
Anti-Bribery and Corruption Directive (ABC Directive)
The Anti-Bribery and Corruption Directive (“ABC Directive”) sup-
plements Lenzing’s Global Code of Conduct by providing global
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101 Sustainability
Group
Whistleblower system Legal complaints and investigations
In order to enable all employees and other stakeholders to report
concerns in connection with topics such as corruption, bribery, [GRI 205-3; ESRS G1-4]
conflicts of interest, antitrust laws and capital market law, an

Compliance violations via the whistleblower system are collected
online-based whistleblower system was established in 2017. Griev-
in the Legal, IP and Compliance department. One case of corrup-
ances can be reported in-house in person, by phone or email, e.g.
tion and two cases of alleged corruption were reported at Lenzing
to supervisors, the works council or the Group Compliance Officer.
in 2022. There were no public complaints in connection with cor-
In addition, the BKMS® whistleblower system (“Tell us”) is freely
ruption brought against the company or its employees during the
accessible for everyone on the webpage of Lenzing to express any
reporting period.
concerns anonymously (available in all languages relevant to pro-
duction sites: English, German, Czech, Chinese, Indonesian, Thai,
Social and environmental compliance
Portuguese). Reporting an incident does not only relate to Lenzing's [GRI 2-27]
employees, but also to customers, suppliers, and other third parties
around the world. Reported incidents are assessed by lawyers (if Conflicts of interest and production-related circumstances, such
necessary in cooperation with local partners), and forwarded to the as noise, unpleasant odors, and environmental pollution, can result
Group Compliance Officer or to the Local Compliance Officer. in disputes with local residents. Procedures are in place at all sites
Recommendations as to whether the investigation should be deep- to ensure that complaints are handled fairly and impartially. All
ened or terminated are provided. Concerns can be reported anon- complaints are reviewed monthly and reported directly to the
ymously and without fear of retaliation worldwide thanks to this Lenzing Group’s senior management teams.
system. The professional handling of the information protects both
the whistleblower and the person affected. 14 reports were filed Complaints were registered at the sites in Lenzing (Austria), Pur-
during the reporting period, which were processed in a targeted wakarta (Indonesia), Nanjing (China) and Prachinburi (Thailand) in
manner in accordance with the internal Investigation Directive. The 2022, and appropriate remedial measures were taken following the
Audit Committee is informed about the reported incidents once a investigation and review process. In Nanjing (China), high COD val-
year. ues exceeding the thresholds led to a permit breach and will result
in a fine. As the incident investigation is still ongoing the amount of
Communication of critical concerns the fine is not defined yet. In Grimsby (United Kingdom), there were
To remain compliant with all policies and react swiftly to any viola- two permit breaches related to waste water values. One on total
tions, the communication of critical concerns to the highest gov- suspended solids, the other one on AO, both breaches received
ernance body are important. For more information on this, please EPA recorded action and timeline. Paskov (Czech Republic), re-
see the Lenzing Group’s Annual Report 2022 (Corporate Govern- ceived a conclusion from the ministry of the environment to have
ance Report). committed a misdemeanor. Because of that conclusion a small fine
of 1,000 CZK (~42 EUR) to cover the proceeding was issued.
RISK ASSESSMENT
In June 2022, Group Compliance initiated a risk assess-

ment aiming to identify possible risks and improvement op-
tions. These assessments will be conducted regularly as
part of a monitoring scheme for the effectiveness of the
compliance measures.
Compliance trainings
Understanding rules and regulations is a fundamental requirement
for “correct” behavior. Hence the eLearning program was continu-
ously expanded during the reporting year to efficiently convey the
most important content of the compliance directives to the rele-
vant target groups. New employees receive welcome folders and
onboarding training on the Global Code of Business Conduct and
on the topics of “Bribery and Corruption” and “Issuer Compliance”.
In addition, every employee receives training on data protection,
whistleblowing and Know-How protection in the form of eLearning.
Roughly, 1,300 employees (approx. 15 percent of the total work-
force) completed the training on anti-bribery and corruption, while
some 3,400 employees (approx. 40 percent of the total workforce)
completed training on whistleblowing 47 . Due to COVID-19, this
training took place primarily via eLearning program and online
meetings.
47 For technical reasons training data as of January 10, 2023. Percentage data based on total work-
force as of December 31, 2022.
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102 Sustainability
Group
Digitalization & cyber security
Material topic: Digitalization & cyber security
[GRI 3-3]
As new digital technologies dramatically reshape industries, Lenzing pursues efforts to leverage the benefits of these technologies to optimize its operations,
enable transparency and traceability along the value chain and provide additional value to its customers. The COVID-19 lockdowns have been a boost for
digital solutions that safely supported internal collaborations and customer relationships when face-to-face meetings were not possible. The company pro-
motes a risk-based approach to ensure global compliance with information security. To empower its people with the knowledge needed to mitigate the risk
of cybercrime, Lenzing continued our ongoing initiatives to raise awareness, like eLearnings, face-to-face trainings and even phishing campaigns to test and
train the internal community. To further propel the digital abilities of its teams, Lenzing launched the Lenzing Digital Academy. This starts to be an important
basis for further digitalization initiatives, such as the digitalization and re-build of the business processes for the Enterprise Resource Planning System in a
greenfield approach already started. 2022 was another year with still rising challenges in cybersecurity, which have been anticipated with the right steps to
improve the cyber resilience in several dimensions. Lenzing is also extending its technical solutions to prevent fraud across the supply chain.

• Further development and management of the information secu-
–
rity & data protection management system
• Regular information security assessments and audits by external
and internal parties
Positive
• Regular internal/external penetration testing
• Increased transparency and traceability of supply chains and thus
• Regular risk assessments with enterprise risk management and
supply chain security
cyber insurance companies
• Protection of our business processes and data
• Close identified gaps through immediate actions and by the cre-
• Increased trust of employees, customers and partners through ation and execution of appropriate Service Improvement Plans
responsible data handling
• Running information security due diligence programs on third
• Optimization towards “lean” and digitally supported business parties
processes, saving time, energy and reducing raw material usage
• Notification mailbox to report any suspicious, probably fraudulent
• More flexible digital working environments to retain talent, at- emails and personal feedback given to the sender(s)
tract future talent and allow for a new way of working
• Digital Innovation Function is responsible for capitalizing on new
• Digitalization helps to anticipate the needs of customers and im- digital technologies
proves the customer experience
–
• Launch of fiber identification system for VEOCEL™ Lyocell fibers
• Up-skilling of work-force guarantees enhanced and more effi-
Negative cient utilization of IT applications and facilitates digital transfor-
mation
Own activities:
• Further digitalization with company seals used for E-Branding
• Successful cyber-attacks could stall business processes or even Service, invoice signing and approval workflows
–
impact operation
• Potential disclosure of information could incur high regulatory
penalties or claims Sustainability targets, measures and progress
• Potential compliance issues could reduce Lenzing’s credibility in
the values it champions
• Successful cyber-attacks could stall business processes or even
impact the operation of business partners
–Stakeholder
–
• Customers
• Consumers
Policies and commitments • Providers of digital solutions
• Data Protection & Information Security Policy approved by the • Employees
Board of Management • Lenzing shareholders
• Data Protection & Information Security by design & default • Competent authorities and auditors of various labels
• Protective measures appropriate to the related risks
–
• Applicable legal regulations and a set of internal policies, direc-
tives and guidelines
–Actions taken
Responsible
•
•
Member of the Managing Board (Finance)
VP Global IT
• Cyber-attacks have been averted successfully by technical
means (e.g. via the rapid mitigation of several zero-day incidents • VP Fiber Commercial
and regular vulnerability management), but also because of • Chief Information Security Officer
aware and empowered employees
• Senior Director Digital Innovation
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103 Sustainability
Group
•
•
•
Alignment of cyber security measures to business needs
Continuous improvement of Lenzing’s cyber security measures
Continue the Lenzing Security Programme, which was derived
–Supporting
• Business Process Organization
from the Cyber Security Framework Gap Analysis
• Global IT, IT Backoffice Team, Business Process Leaders
• Maintaining appropriate technical and organizational measures
for the processing of personal data • Department/team leaders, local coordinators
• Digital Product Owners
• Lenzing employees during their daily work
Digitalization End-to-end (e2e) digitalization program

The recently launched SAP S/4 HANA implementation program
Today, digital technologies are evolving at a faster pace than ever, will intensify digitalization efforts along e2e processes with the aim
becoming increasingly complex and affecting more and more peo- of embedding the same standard of compliant, repeatable, con-
ple. As new digital technologies dramatically reshape industries, sistent, and transparent processes throughout all Lenzing sites. As
Lenzing pursues efforts to leverage the benefits of these technolo- best practice principles will be used for the processes, the execu-
gies to optimize its operations, enable transparency and traceabil- tion of this program will reduce process complexity and hence in-
ity along the value chain, and provide additional value to its cus- crease efficiency.
tomers.
Digital Academy
Digital solutions leading to a new way of work The Digital Academy was established at the end of 2021 as
After the heights of the COVID-19 pandemic, Lenzing Group has Lenzing’s internal training facility. Lenzing is consequently fulfilling
retained the option of remote working. Its infrastructure is still well- important requirements to support its strategy, namely:
prepared for this new way of work with excellent video conferenc-
ing and virtual collaboration tools. To maximize IT security for re- ● Availability of qualified personnel
mote working, Lenzing makes sure that all protective IT security ● Reduction of labor market dependence
measures are maintained at a high level, for example, by providing ● Increase effectiveness and efficiency by improving end user IT
handling instructions for data protection and information security application knowledge
at home or by applying the same security patches at home that are ● Preparation and support of the SAP S/4 HANA transformation
applied in the office. ● Reduction of IT support effort
● Digitization of the workforce for optimal integration of applica-
“Lenzing eSign” is another tool that Lenzing uses in continuously tions
leveraging digital process optimization. It allows documents to be ● Increased awareness and capabilities regarding information
signed with qualified electronic signatures that comply with the security and data protection
EU’s eIDAS regulation and the UNCITRAL convention. Around 900
employees worldwide are currently authorized to either sign or ap-
prove thousands of documents with this intuitive and mobile tool. Lenzing aims to accomplish this by investing in IT applications and
It has replaced several paper-based processes, virtually eliminating infrastructure; however, it is aware that their potential can only be
the need to print, sign, scan and redistribute documents and con- fully captured with skilled employees.
tracts and allows documents to be permanently archived. The up-
dated version, which is being prepared and tested this year, con- The Digital Academy is being established as a comprehensive
tains powerful workflow features and can even include external training program for relevant IT applications and topics. Its me-
parties in signing documents. dium-term focus is on SAP, digital workplace applications, IT secu-
rity and data protection.
These measures have made large-scale remote working a highly
viable option for the Lenzing Group. Human resource experts as- Content is provided in training formats (classroom training, virtual
sume that many employees intend to continue working from home training, videos, printed material, etc.) that reflect the needs of the
in the future, at least for some time. Remote working is particularly target groups. A modular structure enables training up to the level
likely to appeal to a younger generation of employees because it of application experts (e.g. key users or IT consultants). A system
allows a better balance between work and private life. Besides this landscape has been developed for this purpose that provides a
social aspect, moving to a more digital working environment can clear overview of the content. In 2022, there were 75 training
also help to improve the environmental footprint. For example, the courses on SAP and digital workplace that reached 928 partici-
aforementioned replacement of several paper-based processes pants.
eliminates the need for printing, and thus conserves valuable re-
sources. Since the start of the pandemic, significantly more meet- The SAP part of the Digital academy is also aimed at external par-
ings have also taken place online. Overall, remote working and ticipants such as students and the unemployed. Tailored programs
more digital events have reduced commuting and business travel, are planned to reach these groups and thus address the difficult
which will likely lower CO2 emissions. situation on the labor market. In 2022, the "AMS Track" program
focusing on unemployed individuals was successfully launched;
five new employees were recruited.
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104 Sustainability
Group
The Digital Academy program is planned to be refined and ex- Digital solutions for transparency and
panded in 2023, while the concepts developed are intended to be traceability across entire supply chains
implemented over the same period.
Beyond ongoing digitalization processes in its own operations,
Exploration of digital technologies Lenzing is committed to driving digital solutions throughout the
A dedicated Digital Innovation Function was launched in 2021 that supply chain. Lenzing thus aims to improve transparency and trace-
explores the application of new digital technologies along e2e pro- ability in the textile and nonwovens industry. Transparency means
cesses, digital services, and digital interfaces to customers. One openness towards the people who come into contact with Lenzing
achievement in 2022 was the start of the implementation of a dig- fibers. This is crucial as only an honest discussion with the industry
ital customer portal that aims to connect Lenzing with its value can ensure traceability, verifying the origin of Lenzing fibers
chain partners and offers them digital services. The use of artificial throughout the supply chain up to the finished garment.
intelligence to optimize operational processes is also in a prototype
phase. This project aims to maximize the yield of input materials Lenzing’s fiber identification system and E-Branding Service form
and reduce energy consumption. the basis of its overall approach to transparency, while the Tex-
tileGenesis™ blockchain project uses the data for maximum trace-
ability.
Lenzing follows a three-pillar approach to a more sustainable and transparent supply chain:
Building blocks of transparency Figure 26
Fiber E-Branding Downstream

identification Service platform value chain track
system for fabric and traceability
certification with via blockchain
hangtags
Cooperation
with
Fiber identification system

Lenzing has developed a technology for fiber identification. The
AC H I E V E M E N T O F TA R G E T #1 3
system was successfully implemented for LENZING™
ECOVERO™ branded viscose fibers, TENCEL™ x REFIBRA™ Lenzing increased its physical traceability from TENCEL™ x RE-
FIBRA™ and LENZING™ ECOVERO™ to 100 percent of its textile spe-
branded lyocell fibers, and the LENZING™ FR portfolio. In addition, cial fibers in 2021, therefore fulfilling the Sustainability Target 13.
the VEOCEL™ product brand launched the beauty industry’s first
fiber identification system for LENZING™ Lyocell Skin, LENZING™
Lyocell Fine Skin, and LENZING™ Lyocell Micro Skin fibers.
The fiber identification technology relies on the physical identifica-

tion of fiber origin at different stages of production such as the fab-
ric and garment stage. This enables full fiber origin traceability and
counterfeiting protection. It thus protects the brands and retailers
by providing assurance that their products do not contain fibers
made from wood from controversial sources. This guarantees that
the fibers are produced in state-of-the-art-production facilities
that meet high standards for resource efficiency and environmental
and social responsibility.
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105 Sustainability
Group
E-Branding service
The Lenzing E-Branding Service is an online platform that provides
FOR ALL PARTNERS ALONG THE VALUE CHA IN
customers along the value chain with access to Lenzing’s product
brands. • Informed decisions for consumers
• Service for the supply chain partners
• Transparent communication in complex environments
E-BRANDING-SERVICE • Minimized risk of brand counterfeiting
Since the launch of the E-Branding Service in 2018, the number of ap-
plications for licenses and swing tickets processed by the E-Branding
Service Team has grown at a compounded growth rate of more than 40
percent every year. After emerging from the height of the pandemic in
2021, the TENCEL™ and LENZING ECOVERO™ brands managed to Downstream value chain track and traceability via
grow their licensed product base by more than 50 percent from 2021 to
blockchain technology
2022.
Building on several successful pilot projects in 2019 with the inno-
vative start-up TextileGenesis™, Lenzing introduced a digital plat-
form for textile supply chain traceability in 2020 – a milestone for
Registered Lenzing textile partners can apply for fabric certifica- the Lenzing Group. The digital platform was launched in Novem-
tions, license agreements, or Lenzing labels. Lenzing nonwoven ber 2020 for TENCEL™ and LENZING™ ECOVERO™ branded
partners can also register and apply for combined certification and fibers.
license agreements. In addition to the supply chain disclosure, cer-
tification also includes fabric testing by Lenzing only fabrics that
really meet the defined standards are accepted. TEXTILE GENESIS™
TextileGenesis™ is a pioneering supply chain traceability platform for

After acquiring the license to use the requested Lenzing brand on the fashion and textile industry that is enabled by blockchain technology.
the final product, partners may use the associated product logos in Fibercoin™ traceability technology creates real-time digital accounting
their communications to the end consumers. Ready-made Lenzing of sustainably produced fibers along the entire supply chain from fiber
to retail, creating an entirely new level of traceability for brands and re-
labels can also be provided to identify the product on request. tailers. The platform is custom-built for all sustainably produced fibers
such as wood-based cellulosic fibers, wool, recycled polyester, and or-
In addition to enabling end consumers to make conscious pur- ganic cotton.
chase decisions, the platform aims to protect the Lenzing brand

portfolio (TENCEL™, LENZING™ ECOVERO™, VEOCEL™,
TENCEL™ x REFIBRA™). It helps Lenzing and its partners defend
the brands against counterfeiting and assures the end consumers The platform provides customers, partners, and consumers with an
that the product is exactly what the label promises. overview of the entire textile supply chain. Supply chain traceability
has become a top priority for apparel and home textile brands.
Target groups for the Lenzing E-Branding Service are all partners Lenzing’s new blockchain-enabled supply chain traceability plat-
along the value chain, starting with direct customers (e.g. those form supports the entire supply chain in meeting increasing de-
who buy Lenzing fibers) to fabric/roll-good manufacturers/con- mands for transparency and sustainability.
verters and manufacturers of the end products all the way to retail-
ers who ultimately position the goods at the point of sales including More than 1,500 different textile value chain companies (spinners,
online stores. fabric mills, garment makers etc.) have joined the platform in 2022.
Several large fashion brands such as H&M and Bestseller have
Supply chain transparency through the Lenzing started rolling out TextileGenesis for all wood-based cellulosic fi-
E-Branding Service bers. Lenzing has experienced an increasing demand for fibers with
Many consumers know that not all textiles offered on the market blockchain traceability. The number of Fibercoins™ issued every
are produced in an environmentally conscious and socially sustain- month is rising steadily.
able way. Given the complexity of supply chains, they depend on
information on the packaging or label to make informed decisions.
AC H I E V E M E N T O F TA R G E T #1 2
Ingredient branding to communicate raw material
sustainability
In 2021, Lenzing had at least 500 value chain partners with blockchain
Lenzing has adopted an ingredient branding approach in which it technology and therefore achieved Sustainability Target 12 of having
collaborates with brand partners in the value chain who convey the digital fiber traceability.
valuable properties of the fiber to the end consumers. Retailers, in
turn, need supply chain partners who can positively support them
in communicating a believable and consistent sustainability story.
Lenzing has seized this opportunity with its branding platform.
TextileGenesis™ platform: Fibercoin™ technology to ensure
traceability along the supply chain
By using innovative Fibercoin™ technology in the TextileGenesis™
platform, Lenzing and other brand partners can now issue digital
tokens (blockchain assets) in direct proportion to the physical ship-
ments of TENCEL™ and LENZING™ ECOVERO™ branded fibers.
105
106 Sustainability
Group
These digital tokens provide an unique “fingerprint” and authenti- During 2022, the COVID-19 pandemic continued to challenge al-
cation mechanism, preventing adulteration, providing a more se- most all areas of everyone’s lives. Service organisations such as
cure and trustworthy, digital chain of custody across the entire tex- Lenzing`s IT-teams still suffered from volatile supply-chains in
tile supply chain, and, most importantly, ensuring the materials are hardware and software delivery.
sustainably produced.
Starting in December 2021, a new vulnerability in a common
Continuous digitalization investments in framework used for logging features –Log4j – shocked the entire
operations internet. Due to its versatility, Log4j is used in a very wide range of
products, from simple devices to servers and control systems. It is
Lenzing continuously invests in the improvement and expansion of widespread and easy to use, making it difficult for many companies
its production facilities. Modern plant engineering generates a to detect these toxic ingredients and properly evaluate the risk to
wealth of digital information that is enormous importance for the product or environment in which it was being used. This
further operation of the plants. In the past year, data quality has prompted multiple adhoc and follow-up actions that the IT team
been significantly increased to ensure the seamless transfer of all executed successfully through excellent teamwork.
information from engineering, startup, operation, and continuous
improvement. For example, a 3D plant model is used in the The war against the Ukraine caused high impacts on the economies,
development phase for reviews and walk-throughs to best meet global trade as well as Cyber Security. Due to Austrian’s geopoliti-
the needs (health, safety, operability) of all involved persons. This cal position and Lenzing`s absence from this region, no increase-
data model can also be used in maintenance for efficient services. in attacks or offenses were detected. On the contrary, the environ-
Another area involves the digitization of old inventory ment was easier to navigate for several months because well-
documentation: The documentation was scanned by artificial known hacker groups focused on other targets/areas or were shut
intelligence in order to implement additional extensions and down by police or judicial forces. On the other hand, a shift of sev-
adaptions to the then-current needs of existing plants. All measures eral actors towards business/cyber espionage was seen.
lead to an efficient process and thus in rapid implementation of
measures and improvements. Ransomware has long been feeding the coffers of highly skilled
hackers, whether criminal groups or state-sponsored teams look-
Furthermore, services such as the Controller Performance Moni- ing for money or information in both cases. They are well organized
toring tool (CPM) have been introduced for continuous process and staffed, equipped with top-of-the-line equipment/tools, and
optimization. These tools provide a quick and easy overview of the ruthless and strategic in their actions. They employ blackmailing,
entire process control of a plant and thus indirectly of the control among other things, to convince victims to pay ransom. No wonder
quality of the process. This drew attention to weak points and op- the criminal economy supposedly generated annual revenue of
portunities for improvement. Specific measures were then devel- EUR 1.5 trillion, or roughly the GDP of Spain 49.
oped to stabilize and improve processes. These improvements
have resulted in more stable, efficient and resource-saving opera- Because Lenzing, a global player in the textile business, is inter-
tions with fewer failures and alarms. connected with numerous business partners, authorities, custom-
ers, and consumers at various sites of (physical and digital) opera-
Another such services is "Alarm Management", which reduces the tion, it is at high risk to falling victim of one of these hackers. Last
number of alarms in plant control rooms, thus reducing operator year, several companies in Lenzing’s orbit were affected by cyber
stress and enabling them to take better and more targeted action attacks that disrupted services and commerce, involved encrypt-
if worse comes to worst. ing, stealing, and leaking confidential data (data breaches), and, in
some cases, even the closure of production sites.
Cyber security Therefore, Lenzing Group has invested heavily in improving cyber
resilience and information security. Existing security concepts have
Information security is the practice of protecting information by been and are constantly challenged and adapted to the new nor-
mitigating information risks. Cyber security is the practice of pro- mal. However, Lenzing not only relies on technical protection
tecting critical systems and sensitive information from digital measures, but also strongly focuses on the awareness of its em-
attacks. Cyber resilience is the ability to anticipate, withstand, re- ployees. Cyber security is not a project, but a permanent endeavor
cover from, and adapt to adverse conditions, stresses, attacks, or for the entire organization.
compromises on systems that use or are enabled by cyber re-
sources. These are the dimensions companies are permanently Information Security Policy
working on to reach an adequate level of protection. Protection of information is an ongoing endeavor for each and
every employee, contractor or business partner of all the Lenzing
Current state Group’s companies in order to proactively maintain and improve
an appropriate level of security for all kinds of information pro-
Most business organizations have incorporated information secu- cesses. The Information Security Policy promotes a risk-based ap-
rity into their daily work. Cyber security has become one of the top proach to achieve global compliance with information security and
ten risks for businesses worldwide in recent years 48 . Attacks data protection. Lenzing does this while balancing the rights and
against companies are soaring in number, quality, and scale. needs of the company, society and individuals.
48 World Economic Forum 2021, https://www.weforum.org/agenda/2021/01/building-resilience-in- 49 https://www.techrepublic.com/article/cybercriminals-raking-in-1-5-trillion-every-year/

the-face-of-dynamic-disruption/
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107 Sustainability
Group
This policy and applicable legal regulations constitute a framework of attacks constantly increases, Lenzing is employing its best ef-
for multiple directives/guidelines that are regularly reviewed and forts by regularly checking and improving the appropriate
reworked, including: measures at a similar pace.
● Lenzing Global Code of Conduct Achievements of the year

● IT User Directive (secure use of the IT systems and the basic
principles of data security measures) Lenzing performs annual penetration tests to assess security
● Smartphone Directive (mobile devices) measures. These tests, performed by highly skilled external part-
● Terms of Use for Private Mobile Devices ners, result in service improvement plans (SIPs). In addition, exter-
● Know-How Protection Directive (including classification of nal security scorecards systems are frequently used to gain feed-
data and its processing) back from outside the company. Regular background checks are
● Secure storage of personal identifiable information performed to search for potential threats, disclosures in the dark
● Cyber Defense Operation Handbook web or hacked accounts. All findings revealed by such assess-
ments, tests and by reported incidents result in a security review,
risk assessment, and, subsequently, corrective action.
On basis of the Lenzing Security Policy and in line with local legis-
lation an updated Data Protection Directive was proposed and will There was a slight decline in “zero-day vulnerabilities” in terms of
be rolled out after approval. numbers, but not in terms of impact. There were 46 zero-day vul-
nerabilities (compared to 89 in 2021) for IT vendors, of which 22
Activities to fight cybercrime (compared to 43 in 2021) were found in widely used products from
tech giants such as Apple, Adobe, and Microsoft.
As a consequence of last year’s assessment of Lenzing`s abilities
along the Cyber Security Framework, several short- to medium- Ransomware and nation-state hackers use the disclosure and ex-
term activities to improve cyber resilience within Lenzing’s security ploitation of vulnerabilities in enterprise resource planning (ERP),
program were started. mails, collaboration, and knowledge-sharing-tools as means to
harvest data and account information. To counter this, Lenzing em-
Examples of some of the activities that can be shared publicly are phasized the fast rollout of client and server patches to compete
listed below. with the dramatically lowered times to exploit (and attack). Several
campaigns included mobile device update cycles as well.
Human factor: the best firewall
As outlined above, technical measures are important but cannot Since almost two thirds of ransomware attacks are orchestrated by
provide full protection in all situations. This is why empowered and phishing mails, Lenzing provided specific awareness information
security-conscious employees are essential as the first line of de- and e-learnings about phishing to its employees and subsequently
fense. Lenzing carries out several activities to promote these skills, tested the results in a phishing test. Lenzing also intensified its
including: technical endeavors in this area. The IT infrastructure teams imple-
mented additional safeguards on Lenzing`s IT assets during the
● Regular awareness initiatives through news articles on the in- year to improve security hygiene and to reduce the risk to everyday
tranet operations.
● Regular information via group mails, info-screens and depart-
mental or town hall meetings A vulnerability management process was implemented, as mapped
● Ad-hoc information in the event of relevant observations in the out in Lenzing`s information security program, further increasing
neighborhood the pace with which the IT team closed open vulnerabilities as well
● Tailored face-to-face trainings for IT employees, HR teams, as the visibility of the IT team. The still-high number of newly re-
finance, and accounting vealed vulnerabilities as well as revoked or reissued patches re-
● Keynotes on (virtual) corporate department summits voked or reissued kept the teams incredibly busy. However, the
● Line for reporting any security concerns, questions, or poten- hard work enabled Lenzing to achieve key milestones towards im-
tial fraudulent activities proved threat detection and response capabilities. This quantum
(including giving feedback and advice on topics raised) leap will help to detect and respond to attacks faster.
● Security e-learning for each and every IT user
● Privacy e-learning for each and every IT user
The consciousness and awareness of Lenzing’s IT users has led to

more than 230 reports on potential spam, phishing/malware, and
fraudulent mails/calls/contacts worldwide in the reporting year.
Continuous improvement: paradigm for all

activities
Targeted technical and organizational measures have been in place

for several years to ensure data protection and combat data theft,
the manipulation of business processes, and other forms of internet
crimes. As technology evolves and the number and sophistication
107
108 Sustainability
Group
Stakeholder engagement
[GRI 2-28, 2-29] Circular and Sustainable Textile Clothing (CISUTAC)

In October 2022, Lenzing became a partner in the CISUTAC (Cir-
Lenzing is committed to stakeholder engagement and prioritizes
cular and Sustainable Textile and Clothing) project that is co-
meaningful, collaborative and sustained engagement with a variety
funded by the EU. The new consortium was established to support
of groups such as suppliers, value chain partners and employees.
the transition to a circular and sustainable textile sector. Besides
The Lenzing Group strives to be a sustainability leader and to have
Lenzing, the 27 members of the consortium include the industry
the necessary credibility to raise the standards of the entire textile
association Euratex, the textile company Inditex, PVH, Decathlon
and nonwovens industry.
and the non-governmental organization Oxfam. The aim of this in-
itiative is to prevent, identify and eliminate barriers to the circularity
In pursuit of this, this chapter will identify and define Lenzing’s en-
of the clothing chain. For its part, Lenzing is focusing on the devel-
gagement with the most important stakeholders in each material
opment of recycling processes for cellulose fibers in line with its
topic in the reporting year with the aim of increasing transparency
own corporate strategy.
and connecting with local communities.
Lenzing has always aspired to be a pioneer in sustainability and an

European Apparel and Textile Confederation (EURATEX)
inspiration for the textile industry while looking to catalyze change
EURATEX is the European Apparel and Textile Confederation, rep-
for the better within the fashion industry towards a more circular
resenting the interests of the European textile and clothing industry
and sustainable future.
at the EU institutional level. Lenzing has contributed to EURATEX,
and its latest project ReHubs to further promote circularity in the
Read more about Lenzing’s diverse stakeholder groups in the
textile industry.
“Stakeholder engagement” focus paper and how stakeholders
were involved in the double materiality in the “Materiality analysis”
EURATEX is currently working on the Recycling Hubs (ReHubs) in-
focus paper.
itiative. The goal of ReHubs is to set up an integrated system based
on recycling hubs in Europe to upcycle textile waste and industri-
ally scale up the collection, sorting, processing and recycling of
Circularity & resources pre- and post-consumer materials. Lenzing has committed to join-
ing the “Transform textile waste into feedstock” project within the
The Lenzing Group collaborates in industry and multi-stakeholder EURATEX ReHubs initiative led by Texaid.
initiatives – including the Microfiber Consortium of the European
Outdoor Group, the Cross Industry Agreement of the textile and ReHubs will enable the creation of a new European market of sec-
detergent industries, and the Textile Mission project within the ondary raw materials, saving additional waste-related costs. These
German research program on plastics in the environment (“Plastik recycling hubs will create and spread knowledge about product
in der Umwelt”). As well as providing fiber and textile intermediate recyclability and product design to improve cooperation between
materials for testing and developing new forms of textile construc- makers and buyers across the industry value chain.
tion, Lenzing gives feedback on draft reports and guidance docu-
ments. By the end of 2024, Europe will face the challenge of having to
separate the collection of textile waste. At present, there is no large
Circular Fashion Partnership scale plan across Europe to reuse and recycle the current 7.5 mil-
Circular Fashion Partnership is a cross-sectoral project led by lion tons of textile waste.
Global Fashion Agenda. Fashion brands, manufacturers and recy-
clers collaborate to capture and reuse textile waste in Bangladesh. Accelerating Circularity Project (ACP)
Lenzing is engaged in accelerating the transition to a circular sys- Accelerating Circularity’s mission is to design and implement sys-
tem in the fashion industry. tems in which textile waste is repurposed as a raw material, and is
no longer incinerated or sent to landfill. With this model, materials
Policy Hub will be constantly reused or recycled, and textile waste will itself
In 2019, Lenzing became a member of the Policy Hub on the circu- become a valuable resource. Lenzing welcomes the opportunity to
lar economy for the apparel and footwear industry, which it has also be a Board representative of an organization that envisions a textile
co-chaired since May 2020. In 2022, the company actively con- world that is restorative and regenerative by design; one that cre-
tributed to the industry’s understanding of barriers and challenges ates shared value, enhances equality, and promotes the wellbeing
facing the circular economy in areas such as waste and recycling of communities. As well as being a founding partner of the project
technologies, transparency, and sustainable product initiatives. in the US in 2019, Lenzing became a project partner in Europe in
Lenzing has also actively engaged with the public and EU policy 2021.
makers in exchanging information on barriers and possible solu-
tions for advancing circularity. Lenzing took part in two scientific trials in 2022 with the goal of a)
test for the highest post-consumer content using the REFIBRA™
technology as a carrier fiber and b) testing 50 percent of TENCEL™
fibers with REFIBRA™ technology mixed with a maximum amount
108
109 Sustainability
Group
of post-consumer textile waste, while also targeting a lighter denim Charter for Climate Action in 2018 and is an active member of its
weight. These trials were designed by ACP in collaboration with working groups to develop solutions to industry challenges.
participating trial members that are representative of all areas of Lenzing has also supported World Resource Institute (WRI) and
the circular value chain, including collectors, sorters, preproces- Apparel Impact Institute (AII) efforts to develop a high-level
sors, recyclers, fiber producers, yarn spinners, fabric mills, and roadmap for the apparel and footwear industry.
brands. Participants engage with a shared goal of testing the entire
system from collection through to brand procurement for technical, A supportive policy framework and incentives are needed to realize
logistical, and marketplace acceptance. Each input and output is measures such as fuel switching. Natural gas is currently more
tested for physical and functional feasibility along the entire pro- expensive than coal in many parts of the world. Biomass fuels are
cess chain, which is only just starting to include inputs from post- not sufficiently available in the required amounts. Similarly,
consumer collection sources. renewable grid-based electricity is not widely and economically
available in many parts of Asia. To advance low-carbon solutions, a
Textiles 2030 level playing field is required, such as global carbon pricing and the
In August 2021, Lenzing was one of the pioneering signatories of elimination of fossil fuel subsidies. Industry and local governments
the voluntary Textiles 2030 agreement. Textiles 2030 is Waste should ramp up efforts to generate more renewable electricity in
&Resources Action Programme (WRAP)’s new expert-led initiative order to supply current facilities and cater for future growth.
in the UK designed to limit the impact of clothes and home textiles
on climate change. It represents a voluntary agreement that is UN Fashion Charter
funded by its signatories and the government. Signatories will col- The Fashion Industry Charter for Climate Action under the auspi-
laborate on carbon, water and circular textile targets, as well as ces of UN Framework Convention on Climate Change (UNFCCC)
contribute to national policy discussions. With its manufacturing is a broad stakeholder movement in the textiles, clothing, and fash-
facilities in Grimsby in the United Kingdom, Lenzing is honored to ion industry aimed at achieving a holistic commitment to climate
take part in this initiative for proactively fostering circularity and action. Signatories commit to climate targets and ultimately to fully
systemic change in the textiles industry. decarbonizing the fashion industry value chain in alignment with
the Science-Based Targets initiative.
Renewcell
In December 2022, Lenzing and Renewcell, the Swedish textile-to- The original targets of the UN Fashion Industry Charter were to
textile recycling pioneer, signed a multi-year supply agreement to achieve net-zero greenhouse gas emissions no later than 2050 and
accelerate the transition of the textile industry from a linear to a reduce emissions by 30 percent by 2030. These targets were up-
circular business model. The agreement contains the sale of dated in November 2021 to limit the increase in global average
80,000 to 100,000 tons of Renewcell’s 100 percent recycled textile temperature to 1.5°C above pre-industrial levels, as the Intergov-
Circulose® dissolving pulp to Lenzing over a five-year period, for ernmental Panel on Climate Change (IPCC) and in line with the Sci-
use in the production of cellulosic fibers for fashion and other tex- ence Based Targets initiative 50. An initial report, the “Climate Action
tile applications. Playbook” 51, published in 2020 highlights major greenhouse gas re-
duction opportunities in fiber production, the fashion industry’s
Södra main raw material.
To further speed up the technological development of textile recy-
cling followed by an expansion of capacity for generating pulp from Lenzing was a founding member of the initiative and has continued
post-consumer waste, Lenzing began collaborating with Södra, to make an active contribution to the working group on raw mate-
another leading global pulp producer, in 2021. The goal is to recycle rials, sharing its longstanding experience in the production of sus-
and process 25,000 tons of textile waste per year by 2025 at tainable cellulose-based fibers and assessment of environmental
Södra’s Mörrum site. Together with partners along the value chain, impacts through life-cycle analyses (LCA). The working group has
Lenzing aims to promote the issue of textile recycling and process finalized a report entitled “Identifying Low-Carbon Sources of Cot-
100,000 tons of textile waste by 2028. Thus, as well as developing ton and Polyester” 52, which was published in early 2021. The report
recycled materials to satisfy Lenzing’s own circularity commit- contains an overview of existing LCA studies and identifies oppor-
ments, this joint project with Södra will enable substantial quanti- tunities for improvement by switching energy sources, changing
ties of recycled pulp to be used by other wood-based cellulose fi- technology, and innovating. In 2021 and 2022, Lenzing contributed
ber producers across the world. Lenzing is therefore contributing to the report on “Man-made cellulose fibers”, to be published in
to the scaling of circularity and fibers with recycled content in the Q1/2023.
market.
Roadmap to Zero
Lenzing contributed to the development of the “Roadmap to Zero”
Climate & energy publication, which aims to catalyze industry action against climate
change with proven approaches and measures. This document
was prepared by the World Resources Institute (WRI) together with
Stakeholder engagement and policy interventions
the Apparel Impact Institute (AII), a spin-off of Sustainable Apparel
Lenzing strongly believes that its own efforts should be
Coalition (SAC), which identifies, funds, scales, and measures the
complemented by engaging with industry stakeholders and civil
apparel and footwear industry’s proven environmental impact so-
society as collaboration is required to bring about systemic change
lutions 53.
in addressing the climate crisis. Lenzing signed the UN Fashion
50 https://unfccc.int/news/fashion-industry-steps-up-climate-ambition-with-renewed-charter [Ac- 52 https://unfccc.int/sites/default/files/resource/UCC_Cotton_Pet_report.pdf

cessed 10 December 2021] [Accessed 10. December 2021]
51 https://unfccc.int/documents/250059 [Accessed 15 February 2021] 53 https://apparelimpact.org/ [Accessed 15 February 2021]
109
110 Sustainability
Group
Renewable Carbon Initiative (RCI) based on common principles is shared throughout the TfS commu-
Lenzing was one of the eleven leading companies from six coun- nity and brings more transparency and unity. This will benefit
tries that founded the Renewable Carbon Initiative (RCI) in Sep- chemical companies as well as their suppliers.
tember 2020 under the leadership of nova-Institute (Germany).
The aim of the initiative is to support and speed up the transition Canopy
from fossil carbon to renewable carbon for all organic chemicals Lenzing cooperates with the NGO Canopy and maintains a contin-
and materials. In the first year the number of members increased uous dialog with members of the CanopyStyle initiative to ensure
to over 30 and now includes companies such as Beiersdorf (Ger- responsible wood sourcing and protect the world’s ancient and en-
many), BASF (Germany), Cosun Beet Company (The Netherlands), dangered forests from ending up in textiles and fibers.
Givaudan (Switzerland), Henkel (Germany), IFF (USA), LanzaTech
(USA), NESTE (Finland), Unilever (UK), Uniper (Germany) and UPM Canopy publishes the Hot Button Report, an annual ranking of all
(Finland). The Renewable Carbon Initiative aims to herald the end derived raw material wood cellulosic fiber manufacturers based on
of the fossil age for all organic chemicals and materials by 2050. their wood and pulp sourcing performance, transparency and in-
The concept of renewable carbon, which is essential for materials, novation. Today, more than 500 global brands with combined an-
is gaining more attention and traction – including on the political nual revenues of over USD 850 billion are looking to source from
side (e.g. the Sustainable Carbon Cycles communication paper “green shirt” producers 54. In recent years, Lenzing has shown con-
from the European Commission). Lenzing will continue to be an tinuous improvement in all of these criteria: Lenzing’s Wood and
active member of the RCI, with a particular focus on further green- Pulp Policy has been aligned with the CanopyStyle initiative for
ing up the textile and nonwoven businesses. years, and since 2020, the geographical locations of pulp suppliers
have been publicly disclosed in more detail. Regarding alternative
(“next generation”) cellulose sources, Lenzing is the first company
Business ethics to produce and market lyocell fibers on a commercial scale using
pre-consumer cotton scraps and post-consumer garments with
Employees Lenzing’s patented REFIBRA™ technology.
Employees are expected to follow the Global Code of Conduct.
They are also a viable asset in the timely notification of unlawful In Canopy’s latest Hot Button Report, published in October 2022,
conduct within the company. Every employee is informed and Lenzing received a dark green shirt for the third time and topped
trained with regard to Lenzing’s policies and directives. the overall ranking.
Suppliers Zero Discharge of Hazardous Chemicals initiative (ZDHC)

Suppliers are expected to follow the Supplier Code of Conduct as For more information about Zero Discharge of Hazardous Chemi-
well as respect human rights and labor laws within their own oper- cals initiative, please see the “Sustainable innovation, products and
ations. water stewardship” subchapter.
Austrian Code of Corporate Governance Greenhouse Gas Protocol

In order to meet the demands of Lenzing's shareholders and busi- The Greenhouse Gas Protocol has launched a process to develop
ness partners, it is essential for Lenzing to comply with the Austrian new standards or guidance on how companies should account for
Code of Corporate Governance (ÖCGK). Customers in particular the following activities in their greenhouse gas inventories: carbon
demand that their service providers and service suppliers adhere removal and sequestration, land use, land use change and bioen-
to their compliance standards. The Austrian Corporate Govern- ergy. One starting point for the initiative is the criticism of carbon
ance Code defines specific duties for the Managing Board, Super- neutrality for bioenergy and emissions from biogenic sources. In
visory Board and auditors. The overall responsibility for compliance Lenzing’s view, sustainably managed forests and plantations are
lies with the Managing Board – it must ensure compliance with le- key elements for climate change mitigation through carbon se-
gal provisions and work towards their observance within the com- questration in the forest, harvested wood products, and the re-
pany (§ 15 ÖCGK). In addition, it must inform the Supervisory Board placement of fossil-based materials that have high carbon foot-
regularly, comprehensively and promptly about all issues relevant prints. Moreover, sustainably managed semi-natural forests consti-
to the company and report at least once a year on precautions tute the most successful way of protecting biodiversity and ena-
taken to combat corruption (§ 18a ÖCGK). bling people to enjoy the benefits of forests in the form of recrea-
tion or micro-climate benefits (“ecosystem services”), for example.
Raw material security The outcome of these ongoing considerations will have a decisive
impact not only on the cellulose-based fiber industry, but on the
entire cellulose-based bioeconomy. Lenzing participated in the re-
Together for Sustainability (TfS)
view group to comment on the draft guidance in 2022, and started
Together for Sustainability (TfS) is an initiative consisting of and
a pilot for the guidance test. The pilot phase will end in Febru-
driven by chemical procurement specialists, which has the goal of
ary 2023.
collectively building more sustainable chemical supply chains.
Lenzing has been a member of this initiative since 2022. All TfS
Forest Europe, European and national forest strategies
members have full access to global network of assessed and au-
The Forest Europe political process was initiated in 1990 by the
dited suppliers, which will result in higher efficiencies in sustainable
Ministerial Conference on the Protection of Forests in Europe,
procurement through this shared database. Performance progress
which comprises 46 states, to promote sustainable forest manage-
54 https://hotbutton.canopyplanet.org/ [Accessed 31 January 2022]
110 Sustainability Report

2022 Lenzing Group
ment in Europe. A set of indicators grouped into six different crite- which are integrated into daily forest management work. Further-
ria was developed to measure the sustainability performance of Eu- more, ÖBf is cooperating with the NGO umbrella organization Um-
ropean forests and set targets for improvement 55. Current efforts weltdachverband.
focus on climate change adaption 56, water protection, and biodi-
versity 57. As a major buyer of wood in Europe, the Lenzing Group Textile Exchange (TE) Biodiversity Benchmark
supports these targets, which aim to ensure the continued and im- Textile Exchange Biodiversity Benchmark was launched on De-
proved function of forests in their ecosystems while maintaining cember 2, 2020. The benchmark is part of the TE Corporate Fiber
the long-term availability of wood as a raw material. and Materials Benchmark (CFMB) Program and is connected to
TE’s “Climate+” strategy. The role of the benchmark is to address
The Austrian Bioeconomy Strategy biodiversity loss and support improvements in the industry’s
sphere of influence through knowledge-sharing. The methodology
The Austrian Bioeconomy Strategy was published in 2019 58. The
for companies to set targets for nature is being developed through
current phase calls for the development of an action plan. Lenzing
the Science-Based Targets Network (SBTN).
is represented in the bioeconomy platform and provided input on
the strategy and the development of the action plan from 2019 to In 2021, Lenzing contributed as a member of the advisory group,
2021 through workshops and an online consultation. The action providing input to the tool development and its own input to the
plan aims to balance the need for mobilizing timber as a raw mate- benchmark. The “Biodiversity Insights Report 2021” provides “a first
rial for the bioeconomy with assuring and improving the vitality and global baseline for the apparel and textile industry” regarding the
resilience of forests through adequate forest management. The awareness of its impacts on biodiversity. It describes approaches
strategy is prominently placed in the government working program to actions in business integration, transparency, materiality, imple-
and its implementation is assured. mentation, monitoring and evaluation, as well as corporate report-
ing. In 2022, the findings of the Insights Report were integrated as
The underlying studies have shown a gap between increasing de- a new chapter of questions into the CFMB program.
mand for renewable resources for materials and energy on the one
hand, and the possible supply on the other hand, which is mainly Inspiring Cooperation Empowering People (ICEP)
limited by the available land area. Thus, one area of the action plan Inspiring Cooperation Empowering People (ICEP) is an independ-
of particular relevance to Lenzing is the continued development of ent Austrian development organisation with a business-oriented
the biobased circular economy involving the recycling of biobased focus. ICEP works with partner organisations in emerging markets
materials, to which Lenzing will contribute accordingly. and with Austrian companies and implements projects worldwide
with the aim of getting more people actively involved in economic
In 2021, the development process of the Bioeconomy Strategy was life. ICEP supports Lenzing since 2018 in the implementation of
linked to the Circular Economy Strategy. The catalogue of actions ADA co-financed afforestation and conservation project in Albania.
has been published in 2022.
Biodiversity & ecosystems CARBON DISCLOSURE PROJECT (CDP)
The Lenzing Group contributed to the Carbon Disclosure

Austrian State Forest (Österreichische Bundesforste, ÖBf) Project (CDP), a non-profit organization, in the areas of Cli-
One important wood supplier to the Lenzing site (Austria), is the mate Change, Forest and Water Security in 2022. Lenzing
state forest company Österreichische Bundesforste (ÖBf AG, Aus- is one of 12 companies worldwide that were recognized
trian Federal Forests). Managing 10 percent of the national territory with an outstanding triple “A”, which is the highest ranking
and 15 percent of Austria's woodland, ÖBf is the largest ecosystem possible, for environmental leadership in climate change,
manager, forest managing company and owner of hunting and fish- forests and water security. Only 25 companies worldwide
ing licenses. Sustainability forms the guiding principle for all ÖBf have an “A” rating for forests. Through its significant de-
activities. The Lenzing site pulp mill obtains more than 35 percent monstrable actions in these areas, Lenzing has taken a
of its wood from Austrian forests, the state of Austria’s forests is leading position on corporate environmental ambition, ac-
especially important for its sourcing situation. In Austria, forest bi- tion, and transparency. The CDP forest score confirms that
odiversity is monitored regularly according to a Biodiversity Index 59. the production of Lenzing’s derived raw material wood cel-
Recent outcomes are reported in the “Indicators of sustainable for- lulose fibers avoid contributing to deforestation, by com-
est management 2020” 60 from the multi-stakeholder organization bining a stringent wood sourcing policy, forest certification,
“Walddialog”, as a contribution to the Forest Europe indicators and and dedicated commitment to the CanopyStyle Initiative.
targets process. The ÖBf team for ecological landscape manage-
ment is developing individual nature conservation plans for each of
the 120 ÖBf-forest units, in addition to the existing forest manage-
ment plans 61. These include specific measures to protect endan-
gered species and increase biodiversity under local conditions,
55 Madrid Ministerial Declaration. 25 years together promoting Sustainable Forest 59 Geburek, T., Büchsenmeister, R., Englisch, M., Frank, G., Hauk, E., Konrad, H., Liebmann, S.,
Management in Europe, 7th Forest Europe Ministerial Conference, Madrid 2015. Available at: Neumann, M., Starlinger, F. and Steiner, H. (2015). Biodiversitätsindex Wald – Einer für alle! In: Bio-
https://foresteurope.org/wp-content/uploads/2016/11/III.-ELM_ diversität im Wald. BFW Praxisinformation 37, pp. 6-8
7MC_2_2015_MinisterialDeclaration_adopted-2.pdf [Accessed 15 February 2021] 60 https://info.bmlrt.gv.at/themen/wald/walddialog/dokumente/indikatorenbericht-2020.html
56 FOREST EUROPE 2020. Adaptation to Climate Change in Sustainable Forest 61 https://www.bundesforste.at/die-bundesforste/naturschutz/biodiversitaet/oekologisches-land-
Management in Europe, Liaison Unit Bratislava, Zvolen, 2020 schaftsmanagement.html
57 https://forestbiodiversity.eu/ [Accessed 15 February 2021]
58 https://www.bmbwf.gv.at/Themen/HS-Uni/Hochschulgovernance/Leitthemen/Nachhaltig-
keit/Bio%C3%B6konomiestrategie.html [Accessed 15 February 2021]

111 Group
Wood K plus the Linz Institute of Organic Solar Cells (LIOS), Johannes Kepler
Many Austrian companies, including Lenzing, and scientific bodies University Linz, on the dielectric properties of cellulose fibers.
have joined forces in the “Kompetenzzentrum Holz”. It is a leading
research institute in wood and wood-related renewable resources European Polysaccharide Network of Excellence (EPNOE)
in Europe. Recent topics addressed by the competence center in- Lenzing is also active in scientific networks such as the European
clude advanced biomass utilization (e.g. via closing loops in pulp Polysaccharide Network of Excellence (EPNOE) and in supporting
production), lignin and hemicellulose utilization, or the use of en- research projects by providing input and engaging in discussions.
zymes in the production process. One workstream of Wood K plus Experts from Lenzing R&D also participate in relevant conferences
for Lenzing is sustainability in wood sourcing. In 2021, the focus and have gave several talks or have been part of panel discussions
shifted to biodiversity, including support for the work for the Textile with a focus on sustainability, biodiversity and recycling.
Exchange Biodiversity Benchmark.
Industry associations and initiatives
Industry associations and initiatives are also an important corner-
Sustainable innovation, stone to deepen cooperations and develop new networks – again
products & waterstewardship with a very strong focus on sustainability. The European Technol-
ogy Platform for the Future of Textiles and Clothing (Textile ETP),
of which Lenzing is a member, is a very active player in this field. It
Zero Discharge of Hazardous Chemicals (ZDHC)
hosts the Innovation in Circular & Biobased Textiles masterclass, in
The Zero Discharge of Hazardous Chemicals (ZDHC) multi-stake-
which Lenzing experts participate, and the Textile Circularity Mul-
holder collaboration initiated a special focus and task teams for
tiplier Initiative.
wastewater, sludge, solid waste, and air emissions in the textile in-
dustry. Lenzing has been part of the Man-Made Cellulosic Fibers
Bright coatings
(MMCF) task team on wastewater, sludge/solid waste, and air Bright coatings is a research project funded by the COVID Re-
emissions since 2018. In 2020, Lenzing adopted the published construction Fund of the EU (EU React) and deals with furfural.
ZDHC guidelines on wastewater, air emissions, and responsible fi- Furfural is one of the biobased chemicals produced by the biore-
ber production for MMCF manufacturers. In 2021, Lenzing started finery in Lenzing. Research is being conducted with an EU-wide
the ZDHC Gateway reporting in accordance with the wastewater consortium to produce a new product from it, being more spe-
guideline in its viscose operations in Purwakarta (Indonesia), Nan- cific, a type of protective coating.
jing (China), and Lenzing (Austria). In 2022, as well as continuing
the Gateway wastewater reporting, Lenzing participated for revis-
ing and extending the MMCF guideline to include other fibers such
as lyocell and support the development of the MMCF supplier
Health & safety
platform program. Both will be finalized and published by ZDHC
by the end of 2022 and April 2023 respectively. Once published, Employees
Lenzing will begin to implement them accordingly. The most important stakeholder group with regard to the topic of
occupational health & safety is Lenzing’s workforce. To achieve
Research collaborations Lenzing’s vision - “LEAVE HOME HEALTHY, COME HOME
HEALTHY” - different activities and initiatives are conducted, such
Wood K Plus as specific training sessions and monthly safety webinars. Safety
For more information about Wood K Plus please see the sub- dashboards ensure employees have access to daily reports on key
chapter above “Biodiversity”. safety performance metrics in order to take appropriate measures
when needed.
Christian Doppler Laboratory
Lenzing is also a partner in the Christian Doppler Laboratory for an
efficient, recycling-based circular economy lead by the Technical Human rights & fair labor
University Vienna. The laboratory aims to provide the scientific practices
knowledge base for efficiently recovering secondary raw materials
from different municipal solid waste streams. Another cooperative
Employees
research project dealing with circular economy, more specifically
One very special stakeholder group is Lenzing’s staff. Thanks to
textile recycling, is the Upper Austrian EnzATex project, which is
their transparency, collaboration, and sharing of information, em-
now in its second and final year.
ployees at Lenzing are a testimony to a credible sustainability per-
formance by the Lenzing Group.
Circular and Sustainable Textiles and Clothing (CISUTAC)
For more information about Circular and Sustainable Textiles and
Communication with employees and employee representatives is
Clothing (CISUTAC) please see the subchapter above “Circularity
regular and varied to ensure a good understanding of the business
& resources”.
strategy, goals, performance, market conditions, financial situation
and policies as well as any matters relating to contractual terms,
Bilateral research
conditions and benefits. Information is shared through different
Bilateral research is also important to Lenzing’s approach to scien-
channels such as onboarding evets, notice boards, internal mail
tific collaboration. Noteworthy examples include its collaboration
and internal news, etc.
with the Scripps Institution of Oceanography, University of Califor-
nia San Diego, USA, on the biodegradability of cellulose-based ma-
terials in the maritime environment (for more information please
see the “End of product use” focus paper) or its collaboration with
112
113 Sustainability
Group
The works council represents the interests of the employees in var- Suppliers
ious committees and regularly shares information with employees, The responsible purchasing of primary and raw materials for fiber
for example regarding work conditions and remuneration. and pulp production plays a crucial role for the Lenzing Group.
Transparent business relationships with suppliers are key to pro-
Local communities moting and improving a sustainable supply chain. In response to
Both locally and internationally, the Lenzing Group takes its social increasing demands from value chain partners regarding the social
responsibility as a corporate citizen seriously. Therefore, the com- impacts of business practices, Lenzing undergoes the yearly
pany maintains continuous and consistent communication to in- EcoVadis assessment and reviews contracts to ensure a safe and
form local communities and listen to their concerns and ideas, with healthy working environment.
the goal of creating healthy community relationships. For more in-
formation, please see the “Social responsibility” focus paper.
Digitalization & cyber security
Rating agencies
Various rating agencies have shown an increasing interest in social Customers and consumers
and labor topics alongside environmental and governance related Supply chain traceability has become a top priority for apparel and
themes in recent years. Information is mainly provided via ques- home textile brands. Lenzing’s new blockchain-enabled supply
tionnaires. chain traceability platform TextileGenesis™ supports the entire
supply chain in meeting increasing demands for transparency and
Brands and retailers sustainability. More than 1,500 different textile value chain compa-
Retailers and brands are considered customers by Lenzing, even nies (spinners, fabric mills, garment makers etc.) have now joined
though they are at the end of the value chain. They are important the platform.
stakeholders for the company as they are the most important link
to consumers. During the reporting year, Lenzing worked on the Employees
implementation of the standardized Higg FSLM assessment tool. Technical measures are important but cannot provide protection in
In addition, customer audits were conducted at various sites, fo- all situations. This is why empowered and security-conscious em-
cusing on labor standards and fair labor practices. Customer ques- ployees are essential in the front line of defense. To promote these
tionnaires on relevant topics were also completed during the year. skills, Lenzing carries out several activities, such as regular aware-
ness initiatives via news articles on the intranet or privacy eLearning
Certification bodies for each and every IT user.
Certification bodies are also increasingly focusing on human rights
and fair labor practices, which is reflected in modified audit pro- The consciousness and awareness of Lenzing’s IT users has led to
cesses. In the context of self-assessments and/or audits, these top- up to 200 reports on potential spam and fraudulent
ics are examined in order to obtain the respective certification. mails/calls/contacts worldwide in the reporting year.
Lenzing, March 02, 2023
Lenzing Aktiengesellschaft
Managing Board
DI Stephan Sielaff Dr. Nico Reiner

Chief Executive Officer Chief Financial Officer
Robert van de Kerkhof, MBA DI Christian Skilich, MBA, LLM

Chief Commercial Officer Fiber Chief Pulp Officer
113
114 Sustainability
Group
CHAPTER
4 /4
Annex
2022
Table of content
Supplementary information pursuant
to §243b UGB 115
Additional information on chapters 117
NaDiVeG compliance table 120
GRI Content Index 120
TCFD Index 120
Independent Assurance Report on the
Non-financial Reporting according to
243b and 267a UGB 121
Glossary123
List of tables and figures 128
Imprint131

Supplementary information pursuant to §243b UGB
Lenzing Aktiengesellschaft – Safety

Work-related injuries for all employees – Lenzing AG
2020a 2021 2022
Total hours worked (productive working hours) 4,129,308 4,830,780 5,406,705

i) Number of fatal injuries 0 0 0
Rate of fatal injuries 0 0 0
ii) Number of high-consequence work-related injuries 0 0 0
Rate of high-consequence work-related injuries 0 0 0
iii) Number of recordable work-related injuries 35 34 28
Rate of recordable work-related injuries 0.94 1.41 1.04
iv) Total number of work-related injuries or ill health 99 87 107
Rate of work-related injuries 4.79 3.6 3.96
Work-related injuries for other workers (workers who are not employees
but whose work and/or workplace is controlled by the organization)
2020a 2021 2022
Total hours worked (productive working hours) 789,421 853,099 846,478

i) Number of fatal injuries 0 0 0
Rate of fatal injuries 0 0 0
ii) Number of high-consequence work-related injuries 0 0 0
Rate of high-consequence work-related injuries 0 0 0
iii) Number of recordable work-related injuries 5 5 7
Rate of recordable work-related injuries 1.27 1.17 1.65
iv) Total number of work-related injuries or ill health 5 10 13
Rate of work-related injuries 1.27 2.34 3.07
a) With the exception of the major projects in Brazil and Thailand for data consistency reasons. The data analysis for 2021 refers only to the total number of reportable violations.
Work-related fatalities
No work-related fatalities were reported at Lenzing AG in the 2022 financial year.
Top five injury types – Lenzing AG
Top five injury types – Lenzing AGa
2020 2021 2022
Cuts and lacerations –11 Cuts and lacerations –27

Bruises –6 Chemical burn –20
The top five work-related injuries for employees – Fracture –5 Abrasion –15
Sprain –5 Bruises –12
Conditions due to substances –2 Not assigned –12
Bruises –2 Abrasions –2
Chemical burn –1 Fracture –2
The top five types of injuries for contractors – Condition due to substances –1 Sprain –2
Cuts and lacerations –1 Not assigned –2
– Cuts and lacerations –2
a) The list of injury types for the Lenzing site was newly introduced with 2021.
115
116 Sustainability
Group
Lenzing Aktiengesellschaft – Workforce
Employees 2022 – Lenzing AG
Lenzing Aktiengesellschaft: Number of employees as of December 31; employees only (including apprentices, excluding temporary work-
ers)
Lenzing AG Lenzing Aktiengesellschaft: Number of employees as of December 31; employees only

(including apprentices, excluding temporary workers) 2020 2021 2022
Total headcounts as of 31.12. 3,119 3,201 3,278
Proportion of women 17.7 % 18.6 % 19.0 %
Proportion of age >50 26.0 % 24.9% 24.0%
Proportion of non-Austrians 6.1 % 6.8 % 7.9%
Apprentices 140 144 144
Contractors 144 167 128
Proportion of employees with full-time contract 87.5 % 87.2 % 87.0 %
Thereof female 10.8 % 11.6 % 12.0 %
Thereof male 89.2 % 88.4 % 88.0%
Proportion of employees with part-time contract 12.50 % 12.80 % 13.03 %
Thereof female 65.8 % 65.9 % 65.8 %
Thereof male 34.2 % 34.1 % 34.2%
Proportion of employees for whom collective bargaining agreements exist 100 % 100 % 100 %
Employees with disabilities 78 68 59
Turnover rate 6.7 % 6.1 % 7.7%
As regards potential corruption offenses or breaches of antitrust law, no official measures were undertaken or legal claims made against
Lenzing Aktiengesellschaft in 2022.
Figures concerning environmental matters will not be reported separately for competitive reasons and because these matters are man-
aged and measured on a Group-wide basis. The omission of this information does not prevent a fair and balanced understanding of its
development, performance, position, and impact of these activities.

116
Additional information on chapters
Wood and pulp procurement

Wood procurement for the company’s own fiber pulp
plants in Lenzing (Austria) and Paskov (Czech Republic)
Beech and spruce, by country, 2020 to 2022.
Regional – own country and neighboring countries
Lenzing
Country 2020 2021 2022

Certification status in the Lenzing
Austria 45.90 % 38.60 % 42.86 %
Group, 2020–2022
Germany 22.10 % 23.40 % 15.41 %
Czech Republic 9.90 % 14.00 % 17.02 % Certification status of total wood input at Lenzing fiber production
Slovakia 12.10 % 13.50 % 13.31 % sites via own and purchased dissolving wood pulp. Basis: dissolving
Hungary 4.00 % 5.30 % 4.70 % wood pulp by weight. All PEFC certified or controlled sources are
Slovenia 0.40 % 0.40 % 0.46 % also FSC® controlled.
Total regional 94.50 % 95.20 % 93.76 %
Poland 2.10 % 2.00 % 1.86 % Certification status in the Lenzing Group, 2020–
2022 Table 49
France 2.60 % 2.10 % 2.22 %
Switzerland 0.90 % 0.70 % 2.16 % 2020 2021 2022
Croatia 0.01 % PEFC 28.50 % 27.40 % 24.20 %
Other countries 5.60 % 4.70 % 6.25 % FSC® 100 % 0.00 % 0.00 % 3.50 %
Total 100.0 % 100.0 % 100.0 % FSC® Mix 41.80 % 35.90 % 37.40 %
FSC® Controlled Wood 29.70 % 36.70 % 34.10 %
No claima 0.00 % 0.00 % 0.80 %
a) Part of this is due to the formal process of certifying the new site. A small amount of
Paskov Table 48 non-certified wood was used for R&D purposes and was submitted to a due-dili-
gence process according to Lenzing’s Wood and Pulp Policy.
Country 2020 2021 2022
Czech Republic 89.60 % 84.00 % 89.67 %

Slovakia 10.00 % 8.70 % 5.80 %
Poland 0.40 % 2.10 % 1.78 %
Austria 0.00 % 2.90 % 0.78 %
Germany 0.00 % 2.30 % 1.97 %
Total regional 100.0 % 100.0 % 100.0 %
Lenzing’s most important wood species in 2022

Lenzing's most important wood species Table 50
Wood sourcing Region Europe South Africa North America South America
Beech, spruce, ash, Eucalyptus, Acacia Pine, Ash, Aspen, Maple, Eucalyptus
Wood species (most important) birch, poplar Fir, Hemlock
117
118 Sustainability
Group
Human rights & fair labor practices
Different nationalities within the Lenzing Group 2022 Table 51
Nationality Female Male Total

Afghanistan – 2 2
Albania 1 – 1
Australia – 1 1
Austria 613 2,781 3,394
Belgium – 3 3
Bolivia 1 – 1
Bosnia Herzeg. 2 28 30
Brazil 219 734 953
Canada – 1 1
China 180 688 868
Columbia 1 1 2
Croatia 3 12 15
Dutch Antilles – 1 1
Egypt – 1 1
France 3 1 4
Germany 26 67 93
Hong Kong 2 2 4
Hungary 1 9 10
India 4 35 39
Indonesia 63 1,450 1,513
Italy – 7 7
Kosovo 1 9 10
Malaysia 3 5 8
Mazedonia 3 4 7
Mexico 2 – 2
Montenegro – 1 1
Netherlands 3 7 10
Nigeria – 1 1
Pakistan 1 2 3
Poland 2 5 7
Portugal – 2 2
Romania 1 14 15
Russia 3 2 5
Serbia 1 2 3
Singapore 5 5 10
Slovenia 1 3 4
Slovakia 4 5 9
South Africa – 2 2
South Korea 4 1 5
Spain – 3 3
Switzerland – 2 2
Syria – 3 3
Taijikistan – 1 1
Taiwan 3 3 6
Thailand 45 225 270
Türkiye 14 11 25
Uganda – 2 2
Ukraine 3 – 3
USA 44 177 221
Vietnam 1 1 2
118
119 Sustainability
Group
References in policies
Table 52
Lenzing Policies Intergovernmental Regulation Reference
Global Code of Conduct International Labor Organization's Declaration on Fundamental Principles

International Bill of Human Rights
Sustainability Policy Paris Climate Agreement

United Nations Framework Convention on Climate Change
Supplier Code of Conduct None
Forest Stewardship Council® (FSC®) certification
Wood and Pulp Policy Programme for the Endorsement of Forest Certification (PEFC)
Declaration on Fundamental Principles and Rights at Work of the
International Labor Organisation (ILO) – Core conventions
Policy for Safety, Health and Environment None
Performance Management None
Anti-Bribery and Corruption Directive Reference made to United Nations, WHO
Investigation Directive None
Basel AML Index (published by the Basel Institute)
Anti-Money Laundering Directive Reference made to Financial Action Task Force (FATF), Transparency
International, the World Bank, the World Economic Forum
UN sanction list
Debarred firms World Bank list
IDB Group List of Sanctioned Firms and Individuals
Whistleblower Directive None
Water Policy EU Best Available Techniques Reference Documents (BREFs)

EU Discharge of Hazardous Chemicals (ZDHC)
International Financial Reporting Standards (IFRS)
Group Financial Reporting Directive IFRS Group Accounting Guideline
Committee of Spsonsoring Organisations of the Treadway Comission
(COSO)
Modern Slavery Act 2015
Universal Declaration of Human Rights
Modern Slavery Act Tansparency Statement (UK)
UN Global Compact
OECD Guidelines for Multinational Enterprises
International Labor Organisation (ILO)
ISO 26000
Universal Declaration of Human Rights
Policy on Human Rights and Labour Standards UN Global Compact
OECD Guidelines for Multinational Enterprises
International Labor Organisation (ILO)
Global EDI Policy (Draft) None
Global Recruitment Guideline None
Global Job Evaluation Guidelines None
Global Learning & Development Guideline None
Group Expatriate Guideline for Long Term International Assigments None
Group Expatriate Guideline for Short Term International Assignments None
Group Reward Guideline None
Group Salary Guideline None
Group Guideline for Creating a Job Description None
Group Short Term Incentive Plan Grade 6A and above None
Group Short Term Incentive Plan up to Grade 6A None
119
120 Sustainability
Group
NaDiVeG compliance table
You can find this table here:
https://reports.lenzing.com/sustainability-report/2022/annex/nadiveg
GRI content index

https://reports.lenzing.com/sustainability-report/2022/annex/gri
TCFD index
https://reports.lenzing.com/sustainability-report/2022/annex/tcfd

120 Group
Independent Assurance Report on the Non-financial
Report according to §§ 243b and 267a UGB
way that is free of material misstatements – whether due to fraud

To the Board of Directors and to or error.
the Supervisory Board of Lenzing
Aktiengesellschaft, Lenzing Auditors’ Responsibility
This English language independent assurance report is a translation
Our responsibility is to state whether, based on our procedures
provided for information purposes only. The original German text
performed and the evidence we have obtained, anything has come
shall prevail in the event of any discrepancies between the English
to our attention that causes us to believe that the Company’s NFI re-
translation and the German original. We do not accept any liability
port is not in accordance with the legal requirements of the Aus-
for the use of, or reliance on, the English translation nor for any er-
trian Sustainability and Diversity Improvement Act (§§ 243b and
rors or misunderstandings that may derive from the translation.
267a UGB), the legal requirements of the EU Taxonomy Regulation
and the sustainability reporting guidelines of the Global Reporting
We have performed an independent limited assurance engage-
Initiative (GRI Standards) Option “in accordance with” in all material
ment on the combined consolidated non-financial report accord-
respects.
ing to §§ 243b and 267a UGB (“NFI report”) for the financial year
2022, which has been published as Sustainability Report 2022 of
Our engagement was conducted in conformity with the Interna-
tional Standard on Assurance Engagements (ISAE 3000) applica-
Lenzing Aktiengesellschaft, Lenzing
ble to such engagements. These standards require us to comply
(referred to as “Lenzing” or “the Company”).
with our professional requirements including independence re-
quirements, and to plan and perform the engagement to enable us
Conclusion to express a conclusion with limited assurance, taking into account
materiality.
Based on the procedures performed and the evidence we have
obtained, nothing has come to our attention that causes us to be-
An independent assurance engagement with the purpose of ex-
lieve that the NFI report of the Company is not in accordance with
pressing a conclusion with limited assurance (“limited assurance en-
the legal requirements of the Austrian Sustainability and Diversity
gagement”) is substantially less in scope than an independent as-
Improvement Act (§§ 243b and 267a UGB), the provisions of Article
surance engagement with the purpose of expressing a conclusion
8 of the Regulation (EU) 2020/852 as amended and the supple-
with reasonable assurance (“reasonable assurance engagement”),
menting delegated Regulation (EU) 2021/2178 (hereafter “EU Tax-
thus providing reduced assurance. Despite diligent engagement
onomy Regulation”) and the sustainability reporting guidelines of
planning and execution, it cannot be ruled out that material mis-
the Global Reporting Initiative (GRI Standards) Option “in accord-
statements, illegal acts or irregularities within the non-financial re-
ance with” in all material respects.
port will remain undetected.
Management’s Responsibility The procedures selected depend on the auditor’s judgment and
included the following procedures in particular:
The Company’s management is responsible for the proper prepa-
ration of the NFI report in accordance with the reporting criteria.
● Inquiries of personnel at the group level, who are responsible
The Company applies the legal requirements of the Austrian Sus-
for the materiality analysis, in order to gain an understanding of
tainability and Diversity Improvement Act (§§ 243b and 267a UGB)
the processes for determining material sustainability topics
and the sustainability reporting guidelines of the Global Reporting
and respective reporting thresholds of the Company;
Initiative (GRI Standards) Option “in accordance with” as reporting
● A risk assessment, including a media analysis, on relevant in-
criteria. In addition, the company prepares disclosures in accord-
formation on the Company’s sustainability performance in the
ance with the EU Taxonomy Regulation, which are published as
reporting period;
part of sustainability reporting.
● Evaluation of the design and implementation of the systems
and processes for the collection, processing and monitoring of
The Company’s management is responsible for the selection and
disclosures on environmental, social and employees matters,
application of appropriate methods for non-financial reporting (es-
respect for human rights, anti-corruption as well as bribery and
pecially the selection of significant matters) as well as the use of
also includes the consolidation of data;
appropriate assumptions and estimates for individual non-financial
● Inquiries of personnel at the group level, who are responsible
disclosures, given the circumstances.
for providing, consolidating and implementing internal control
procedures relating to the disclosure of concepts, risks, due
Furthermore, their responsibilities include the design, implementa-
diligence processes, results and performance indicators;
tion and maintenance of systems, processes and internal controls
that are relevant for the preparation of the sustainability report in a
121
122 Sustainability
Group
● Inspection of selected internal and external documents, in or-
der to determine whether qualitative and quantitative infor-
mation is supported by sufficient evidence and presented in an
accurate and balanced manner;
● Assessment of the processes for local data collection, valida-
tion and reporting, as well as the reliability of the reported data
through a (remotely conducted) survey performed on a sample
basis at Lenzing Fibers LTd., Grimsby, UK.
● Analytical evaluation of the data and trend of quantitative dis-
closures regarding the GRI Standards listed in the GRI-Index,
submitted by all locations for consolidation at the group level;
● Evaluation of the consistency of the of the Austrian Sustainabil-
ity and Diversity Improvement Act (§§ 243b and 267a UGB),
the EU Taxonomy Regulation and the GRI Standards, Option
“in accordance with” to disclosures and indicators of the NFI
report, which apply to the Company;
● Evaluation of the overall presentation of the disclosures by crit-
ically reading the NFI report.
The procedures that we performed do not constitute an audit or a

review. Our engagement did not focus on revealing and clarifying
of illegal acts (such as fraud), nor did it focus on assessing the effi-
ciency of management. Furthermore, it is not part of our engage-
ment to audit future-related disclosures, prior year figures, state-
ments from external sources of information, expert opinions or ref-
erences to more extensive external reporting formats of the Com-
pany.
Restriction on use
Because our report will be prepared solely on behalf of and for the
benefit of the principal, its contents may not be relied upon by any
third party, and consequently, we shall not be liable for any third
party claims. We agree to the publication of our assurance certifi-
cate and NFI report. However, publication may only be performed
in its entirety and as a version that has been certified by us.
General Conditions of Contract

Our responsibility and liability towards the Company and any third
party is subject to paragraph 7 of the General Conditions of Con-
tract for the Public Accounting Professions.
Linz, 3rd of March 2023
KPMG Austria GmbH

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Mag. Alexander Gall

Wirtschaftsprüfer
(Austrian Chartered Accountant)
122
123 Sustainability
Group
Glossary
Accelerating Circularity Biodiversity

Accelerating Circularity is a collaborative effort to accelerate the This is the variability among living organisms from all sources in-
textile industry’s move from linear to circular. The textile industry cluding, among others, terrestrial, marine and other aquatic eco-
must move from a take, make waste system to circularity, avoiding systems and the ecological complexes of which they are part. This
the massive amounts of textile waste annually put into landfill. includes diversity within species, between species and of ecosys-
www.acceleratingcircularity.org tems.
AFRAC - Austrian Financial Reporting and Auditing Bioenergy

Committee Bioenergy is energy derived from biomass. The term refers to vari-
The Austrian Accounting Standards Committee, whose activities ous forms of energy, including heat and electricity. Also the bio-
are not aimed at profit, serves the research, documentation and mass that contains this energy can be referred to as bioenergy. The
further development of accounting and auditing in Austria, taking main sources of bioenergy are renewable resources.
into account international and European developments and Aus-
trian interests in this field. www.afrac.at Biorefinery
A biorefinery can be defined as a framework or a structure in which
Austrian Sustainability and Diversity Improvement Act biomass is utilized in an optimal manner to produce multiple prod-
The “Nachhaltigkeits-und Diversitätsverbesserungsgesetz” (Na- ucts such as fibers, biobased biorefinery products and bioenergy.
DiVeG) implements the European “NFI Directive” (2014/95/ EU) in
Austria. It expands the reporting obligations in the area of non-fi- Blended learning approach
nancial information for large companies of public interest, with an Blended learning (also known as hybrid learning) is a method
average of more than 500 employees. of teaching that integrates technology and digital media with tra-
ditional instructor-led classroom activities.
BAT – Best available techniques
Best available techniques means the most effective and advanced Blockchain
stage in the development of activities and their methods of opera- Blockchains are forgery-proof, distributed data structures in which
tions. The techniques should indicate the practical suitability of par- transactions are recorded in the time sequence, traceable, un-
ticular techniques for providing, in principle, the basis for emission changeable and without a central instance linked in a peer-to-peer
limit values designed to prevent, and, where this is not practicable, network. The blockchain technology enables digital traceability of
generally to reduce emissions and the impact on the environment fibers and the corresponding wood sources across each produc-
as a whole. tion and distribution step. The technology also allows consumers
to verify the garment composition and the underlying textile supply
Better Growth chain.
Lenzing`s corporate strategy Better Growth stands for moving from
linear to circular, transforming the cellulose industry, offering cus- Canopy
tomer-centric solutions and achieving excellence with a value- Canopy is a Canadian non-profit organization dedicated to the
driven mind-set. conservation and protection of ancient and endangered forests.
Lenzing works together with Canopy to ensure responsible wood
Biobased sourcing. Canopy publishes the Hot Button Report annually.
Biobased products are those that originate partially or completely https://canopyplanet.org/campaigns/canopystyle/
from renewable resources. These products can be either biode-
gradable or non-biodegradable. CDP – Carbon Disclosure Project
The Carbon Disclosure Project (CDP) is a non-profit organization
Biobased chemicals with the aim that companies and also municipalities disclose their
Chemicals from the biorefinery, originating from renewable re- environmental data, such as climate-damaging greenhouse gas
sources and also referred to in this report as biorefinery products emissions and water consumption. Once a year, the CDP collects
data and information on behalf of investors using standardized
Biodegradable / Biodegradation questionnaires on CO2 emissions, climate risks and reduction tar-
The property of a substance or material to be degraded by micro- gets and strategies of companies. Participation is voluntary.
organisms (bacteria, fungi, etc.) to water and carbon dioxide (CO2) www.cdp.net
and to be absorbed by the environment. Test methods specify a
fixed time under defined conditions of temperature, oxygen and Carbon footprint
humidity, and a certain percentage of degradation. For information A carbon footprint is the sum of greenhouse gas emissions and
about biodegradability of Lenzing fibers please see the definition greenhouse gas removals of a product system or an organization,
of “TÜV certified biodegradable and compostable LENZING™ fi- expressed as a carbon dioxide equivalent.
bers”.
123
124 Sustainability
Group
Carbon-neutral Dissolving wood pulp
CO2 neutrality means, in a narrow sense, that no CO2 is emitted A special kind of pulp with special characteristics used to manu-
or that the CO2 emissions are fully offset or compensated. Car- facture viscose, modal and lyocell fibers and other cellulose-based
bon-neutral is not the same concept as net-zero. https://de.wik- products. This grade of pulp is characterized by higher alpha cellu-
ipedia.org/wiki/Klimaneutralit%C3 %A4t. lose content and by a high degree of purity.
Carbon-zero ECF
Carbon-zero is the name of the concept for certain TENCEL™ fi- Elemental chlorine free – a bleaching process without using ele-
bers in our range. It is only offered to our TENCEL™ fibers with the mental chlorine.
lowest carbon footprint. The remaining emissions from our carbon-
zero TENCEL™ fibers are offset by supporting renewable energy EcoVadis
supply projects. EcoVadis aims to promote the environmental and social practices
of companies through CSR performance monitoring within the
Cellulose supply chain and to support companies in improving sustainability.
The raw material for pulp production. Cellulose is a component of EcoVadis operates the first collaborative platform to deliver CSR
all plants. The cellulose content of wood depends on the species ratings from suppliers to global supply chains.
and is typically around 40 percent.
elDAS - electronic identification and trust services
Chain of custody eIDAS is an EU regulation on electronic identification and trust ser-
The chain of custody documents the flow of materials and raw ma- vices for electronic transactions in the European Single Market.
terials through various stages right up to the final product. It is im-
portant for the certification of raw materials and their traceability. e2e- End to End
In order to ensure that final products really meet the requirements End-to-end describes a process that takes a system or service
of the standard, initiatives trace the flow of materials throughout from beginning to end and delivers a complete functional solution.
the chain of custody.
EPA (United States Environmental Protection Agency)
COD The United States Environmental Protection Agency (EPA, resp.
Chemical oxygen demand. A further method for assessing the or- USEPA) is an independent agency of the United States for the en-
ganic load of wastewater (besides BOD biological oxygen demand). vironmental protection and the protection of human health. EPA
It measures the degree to which the wastewater can undergo works to ensure that Americans have clean air, land and water.
chemical oxidation. https://www.epa.gov/
Compensation ESG – Environmental, social and governance standards

Reducing the negative impact of greenhouse gas emissions in the Environmental, social and governance (ESG) refers to the three
atmosphere by saving greenhouse gas emissions elsewhere, e.g. central factors in measuring the sustainability and ethical impact of
by supporting climate protection projects. an investment in a company or business.
Compostable / compostability ESRS – European Sustainability Reporting Standards

Compostable products undergone strict testing to ensure that they The ESRS is the new EU framework for sustainability reporting and
break down within a specific time frame and do not release any- is a key element of the EU’s new Corporate Sustainability Reporting
thing harmful into the environment. Directive (CSRD). The aim is to make reports more standardized
and comparable. It is mandatory for Lenzing from 2024 onwards.
Compliance
In general, compliance means conforming to a rule, such as a spec- FAO – Food and Agriculture Organization of the United
ification, policy, standard or law. Regulatory compliance describes Nations
the goal that organizations aspire to achieve in their efforts to en- The Food and Agriculture Organization of the United Nations (FAO)
sure that they are aware of and take steps to comply with relevant is a specialized agency of the United Nations that leads interna-
laws, policies, and regulations. tional efforts to defeat hunger. It is based in Rome.
Co-product FSC®
By-products recovered during pulp and fiber production. The Forest Stewardship Council® (FSC) is an international non-
profit organization for wood certification.
Decarbonization
Decarbonization denotes the declining average carbon intensity Furfural
(CO2 emission per unit of a product) over time. Products can be, A clear yellowish liquid with a characteristic scent of almonds. Dur-
for example, (primary) energy, gross domestic product, or any units ing viscose fiber production, beech wood is cooked and furfural is
produced by a company. released in a double distillation process.
Denial of service GHG – Greenhouse gas emissions

A denial of service attack (DoS attack) is a cyberattack, that pre- Emissions of gases which contribute to global warming by absorb-
vents legitimate users from accessing services, computer systems, ing infrared radiation, thereby heating the atmosphere. The main
networks, or other information technology resources. contributors are carbon dioxide (CO2), methane (CH4), and nitrous
oxide (N2O).
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125 Sustainability
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GRI – Global Reporting Initiative Climate Change (UNFCCC). In it, member states affirm their inten-
The Global Reporting Initiative (known as GRI) is an international tion to prevent “dangerous climate change.” https://wiki.bild-
independent standards organization that helps businesses, govern- ungsserver.de/klimawandel/index.php/IPCC
ments and other organizations understand and communicate their
impacts on issues such as climate change, human rights and cor- ISO 14001:2015
ruption. The purpose of GRI is to develop globally applicable An international standard for the certification of environmental
guidelines for sustainability reporting. management systems.
Hemicellulose ISO 9001:2015

The designation for carbohydrates that are contained in wood but An international standard for the certification of quality manage-
that are not cellulose. They can have the widest variety of compo- ment systems.
sitions depending on the type of wood involved, e.g. xylan (in
beech wood). ISS ESG
ISS ESG is the responsible investment arm of Institutional Share-
Higg FEM/FSLM holder Services Inc., the world’s leading provider of environmental,
The Higg Facility Environmental Module (Higg FEM) informs man- social, and governance solutions for asset owners, asset managers,
ufacturers, brands and retailers about the environmental perfor- hedge funds, and asset servicing providers.
mance of their individual facilities and enables them to make im-
provements achieve sustainability. The Higg Facility Social and La- KPI
bor Module (FSLM) tool focuses on issues such as hours of work, The term key performance indicator describes indicators in busi-
wages and benefits, health and safety, and strengthening commu- ness economics which are used to measure progress or achieve-
nities. https://apparelcoalition.org/higg-facility-tools/ ments related to important targets or critical success factors within
an organization.
Higg MSI
The Higg Materials Sustainability Index (Higg MSI) is the apparel LCA
industry’s most trusted tool to measure and score the environmen- Life Cycle Assessment is a systematic analysis of the environmen-
tal impacts of materials. tal impacts of products throughout their life cycle (“from cradle to
grave”).
ILO – International Labour Organization
The International Labour Organization (ILO) is a United Nations Lignin
agency that sets international labor standards and promotes social A polyaromatic component of wood that cannot be used for fiber
protection and work opportunities for all. The ILO has 187 member production. It is used for generating power and to recover co-prod-
states: 186 of the 193 UN member states plus the Cook Islands are ucts.
members of the ILO.
Lignosulfonate
Integration The decomposition products of lignin from wood after pulping.
All stages of fiber production are concentrated at one and the
same site, from wood, the raw material, to pulp and fiber produc- Lyocell fibers
tion. Lyocell fiber is the latest generation of cellulosic fibers. In Lenzing`s
case the cellulose used is wood-based or recycled cotton (RE-
IOSH – Institute of Occupational Safety and Health FIBRA™ Technology). The generic fiber name is lyocell, the
IOSH is the only Chartered body for safety and health professionals. branded products from Lenzing are marketed as TENCEL™ and
Their members follow a strict Code of Conduct and a formal pro- VEOCEL™ fibers. It is known for its smooth and silky handfeel as
fessional development program. well as performance aspects.
IPBES Microplastics
IPBES (Intergovernmental Science-Policy Platform on Biodiversity Small plastic particles of 5 mm or less in size – known as “micro-
and Ecosystem Services) is an intergovernmental body providing plastics” – are perceived to be a major pollution problem in fresh-
scientific policy advice on biodiversity – comparable to the IPCC water bodies and the sea. While recent industry initiatives and leg-
(Intergovernmental Panel on Climate Change). islation aim to promote the development of less polluting alterna-
https://www.bmuv.de/faq/was-ist-und-macht-ipbes tives, Lenzing, as a producer of wood-based cellulosic fibers, laid
the foundations for biodegradable products more than 80 years
IPCC ago.
The abbreviation “IPCC” stands for Intergovernmental Panel on
Climate Change. In German-language media, the IPCC is usually Modal
referred to as the “Weltklimarat”. Modal is a viscose fiber refined under modified viscose production
conditions and spinning conditions. It is characterized by a partic-
The IPCC was founded in 1988 by the World Meteorological Or- ular softness and is the preferred fiber for high-quality next to skin
ganization (WMO) and the United Nations Environment Pro- applications like underwear and similar products. The fibers have
gramme (UNEP). Its findings form the basis for international climate improved characteristics such as tenacity, dimensional stability,
negotiations under the United Nations Framework Convention on and so forth. Lenzing markets these fibers under TENCEL™ Modal.
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126 Sustainability
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Net-benefit products Pre-consumer
Lenzing’s net-benefit products offer positive impacts and benefits Pre-consumer upcycling is the reclamation of waste materials that
for the environment, society, and value chain partners, and are bet- were created during the manufacturing process prior to their de-
ter than most competing alternatives in the market. Net-benefit livery to a consumer (such as cotton scraps from garment making).
products take a life cycle perspective and thus include both up- Often also referred to as post-industrial waste.
stream and downstream value chain processes. Net-benefit think-
ing describes the performance of our specialties and forward solu- Ransomware as a Service (RaaS)
tions. RaaS is a service in which cybercriminals provide a compact mal-
ware program that can be used to launch a ransomware attack.
Net-zero target Ransomware is a malware, where cybercriminals attack a system
Companies shall set one or more targets to reach a state of net- with malicious code. The goal is to lock legitimate users out of their
zero emissions, which involves: (a) reducing their scope 1, 2 and 3 system and encrypt sensitive data. Companies are then often
emissions to zero or to a residual level that is consistent with reach- blackmailed into paying high ransoms in order to obtain the de-
ing net-zero emissions at the global or sector level in eligible 1.5°C cryption key.
scenarios or sector pathways and; (b) neutralizing any residual
emissions at the net-zero target date and any GHG emissions re- Salutogenesis
leased into the atmosphere thereafter. Source: Net-Zero-Stand- Developed by Aaron Antonovsky († July 7, 1994), an Israeli-Ameri-
ard.pdf (sciencebasedtargets.org) When talking about net-zero, a can professor of sociology. In contrast to pathogenesis, the saluto-
maximum of 10 % can be compensated by removal offsets (accord- genic approach does not focus on the question “What makes a hu-
ing to the science-based target initiative), 90 % of absolute carbon man being ill?” but rather “What keeps a human being healthy?”
must be reduced. This is the main difference to carbon-neutral,
where there are no limits on the level of offsetting. Security patch
A security patch is a method of updating applications, systems or
NIST Cyber Security Framework software by inserting code to fix the vulnerability.
The NIST Cyber Security Framework consists of voluntary guide-
lines, standards and best practices to manage cybersecurity risk. Science-based targets (SBT)
Targets adopted by companies to reduce greenhouse gas emis-
NMMO sions are considered “science-based” if they are in line with the
N-Methylmorpholine N-oxide is an aqueous, biodegradable, or- level of decarbonization required to keep global temperature in-
ganic solvent. crease below 1.5°C compared to pre-industrial temperatures, as
described in the Assessment Report of the Intergovernmental
Nonwovens Panel on Climate Change (IPCC). [Applies to the 4th or 5th AR of
Nonwoven fabric materials, fleece. Nonwovens made from IPCC as well as modelling of the IEA.]
Lenzing fibers are used for sanitary, medical, and cosmetics appli-
cations. Scope 1, 2 & 3 emissions
Scope 1 emissions are direct emissions from owned or controlled
Offsetting sources. Scope 2 emissions are indirect emissions from the gener-
Reducing the damage caused by releasing carbon dioxide into the ation of purchased energy. Scope 3 emissions are all indirect emis-
environment by doing other things that remove carbon dioxide sions (not included in scope 2) that occur in the value chain of the
from the atmosphere, e.g. through climate protection projects. reporting company, including both upstream and downstream
emissions.
OHSAS 18001:2007
Occupational Health and Safety Assessment Series (OHSAS) is a Semi-natural forest
certification system for management systems pertaining to work Forests of native species, established either through assisted or
safety. natural regeneration, or a mix of these under intensive stand man-
agement (includes forests in which assisted regeneration carried
PEFC out with same species and similar species composition as in the
The Programme for the Endorsement of Forest Certification natural forests in the area). Examples: many production forests in
Schemes (PEFC) is an international non-profit organization for Europe, some teak plantations.
wood certification.
These forests include, according to FAO (2020): Naturally regener-
Plantation forest ating forests, which are forest predominantly composed of trees
Planted Forest that is intensively managed and meet all the follow- established through natural regeneration. Planted forests, which
ing criteria at planting and stand maturity: one or two species, even are forest predominantly composed of trees established through
age class, and regular spacing (FAO-FRA 2020). Examples: poplar, planting and or/deliberate seeding. But not plantation forests.
acacia or eucalyptus plantations.
SFI-Sustainable Forestry initiative
Post-consumer The SFI program was developed in 1994 to ensure North America's
A product made from post-consumer material is made from waste valuable forests were protected and to document the commitment
that has been used and disposed of by a consumer (such as used of forest products industry members to keep our forests healthy
clothing). and to practice the highest level of sustainable forestry.
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SHEARS VBV Austrian Sustainability Index (VÖNIX)
Safety, Health and Environment Action Reporting System of the VÖNIX is Austria’s first sustainability index. It was created by the
Lenzing Group VBV Austrian pension fund and is comprised of listed Austrian
companies that are leaders in terms of social and environmental
Stakeholders performance.
All internal and external persons or groups affected directly or in-
directly by business activities currently or in the future. Viscose fibers
Viscose is a cellulosic fiber (also known as rayon). In Lenzing`s case
SAC – Sustainable Apparel Coalition the cellulose used is wood-based. Wood from trees is processed
An association of leading companies, non-profit organizations as into pulp which gets derivatized by a chemical reaction and then is
well as research and educational experts aiming to create a more dissolved until it becomes a sticky liquid. The solution is pushed
sustainable international apparel, footwear and textile industry. The through nozzles into a “spinning bath” which allows that fibers are
SAC is the developer of the Higg Index. regenerated from the solution into a shape suitable in diameter and
length for use in textile and nonwoven applications. The cellulosic
Sustainalytics fiber viscose is a fiber with a flowy drape, in personal hygiene prod-
Sustainalytics is a rating agency that assesses the sustainability of ucts it is used to absorb and retain liquid. LENZING™ ECOVERO™
listed companies based on their environmental, social and govern- Viscose is the branded fiber for textile and VEOCEL™ Specialty
ance performance. www.sustainalytics.com Viscose fibers for nonwovens applications.
TCF Wood-based cellulosic fiber

Totally chlorine free (bleaching process). A fiber industrially produced from the raw material wood. The in-
dustry is known as man-made cellulose fiber industry.
Textile Exchange (TE)
Textile Exchange, founded in 2002, is a global nonprofit organiza- Xylose
tion that works closely with all sectors of the textile supply chain to Wood sugar, component of thick liquor and base material for xylitol
find the best ways to minimize and even reverse the negative im- (sweetener that inhibits tooth decay)
pacts on water, soil, air, animals, and the human population.
ZDHC – Zero discharge of hazardous chemicals
TÜV certified biodegradable and compostable LENZING™ The ZDHC Foundation is a global center of excellence in responsi-
fibers ble chemical management which works towards zero discharge of
LENZING™ fibers which are TÜV certified biodegradable and hazardous chemicals in the textile, leather, and footwear value
compostable include the following products: LENZING™ Viscose chain to improve the environment and people’s wellbeing.
Standard textile/nonwovens, LENZING™ Lyocell Standard tex-
tile/nonwovens, LENZING™ Modal Standard, LENZING™ FR ZDHC MMCF Guidelines
Standarda, LENZING™ FR Blacka, LENZING™ Lyocell Filamentb, The ZDHC MMCF Guidelines is a set of guidelines that addresses
LENZING™ Lyocell Dryb, LENZING™ Web Technology integrated expectations for discharge wastewater quality, emis-
sions to air, and chemical recovery for manufacturing facilities pro-
a) LENZING™ FR Standard and LENZING™ FR Black are only industrial compostable. ducing Man-Made Cellulosic Fibers (MMCF).
b) LENZING™ Lyocell Filament was not tested for marine biodegradability and
LENZING™ Lyocell Dry is not compostable in salt water.
Zero-day vulnerabilities
A zero-day vulnerability is a computer-software vulnerability that is
UNCITRAL - United Nations Commission on International unknown to the vendors and therefore has no patch ready. The
Trade term zero-day means that there is a zero-day gap between the time
The United Nations Commission on International Trade Law is a the vulnerability is discovered and the first attack happens.
subsidiary body of the U.N. General Assembly responsible for help-
ing to facilitate international trade and investment.
127
128 Sustainability
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List of tables and figures
List of figures
Page
Figure 1: Value chain of Lenzing’s products 12
Figure 2: Locations of the Lenzing Group 14
Figure 3: Sustainability organization 16
Figure 4: ESG Committee structure 17
Figure 5: Materiality analysis 2022 19
Figure 6: Strategic focus areas of sustainability in the Lenzing Group and the corresponding SDGs 21
Figure 7: Key stakeholder groups 29
Figure 8: Circular economy model of the Lenzing Group 34
Figure 9: Highly efficient use of the raw material wood at the Lenzing Group’s biorefineries 35
Figure 10: Biodegradation of fibers in various environments 37
Figure 11: Fiber types on the world market 38
Figure 12: Lenzing Group’s carbon footprint 43
Figure 13: Energy sources of the world, Lenzing Group and Lenzing site 44
Figure 14: Levers to meet science-based target 48
Figure 15: Wood sourcing for Lenzing Group’s own pulp mills in Lenzing (Austria) and Paskov (Czech Republic) 53
Figure 16: Certification status in the Lenzing Group 2022 56
Figure 17: Certification status – overall certified and controlled wood FSC® 57
Figure 18: Certification status – FSC® Mix and FSC® controlled wood 57
Figure 19: The AR3T framework of Science based targets for nature 59
Figure 20: Water stewardship 77
Figure 21: Diversity per age (all employees) 90
Figure 22: Diversity per site 90
Figure 23: Talent Management 92
Figure 24: Hierarchy of compliance guidelines and directives 100
Figure 25: Elements of the Lenzing Compliance Management System 100
Figure 26: Building blocks of transparency 105
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129 Sustainability
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List of tables
Page
Table 1: Lenzing Group: Sustainability key performance indicators 5
Table 2: Lenzing Group 11
Table 3: Materiality analysis – allocation of topics 20
Table 4: Sustainability targets, measures and progress 23
Table 5: The proportion of turnover 27
Table 6: EU Taxonomy, CAPEX 28
Table 7: EU Taxonomy, OPEX 28
Table 8: Waste by type and disposal method 39
Table 9: Total waste generated 39
Table 10: Fuel sources used in the Lenzing Group 44
Table 11: Primary energy consumption of the Lenzing Group 45
Table 12: Greenhouse gas emissions of the Lenzing Group 45
Table 13: Transition risks, physical risks, Transition opportunities 47
Table 14: How forests and wood products work for climate change mitigation 49
Table 15: Countries of Lenzing Group‘s pulp suppliers (in 2022) 52
Table 16: Number of suppliers responding to EcoVadis questionnaire since the introduction of the assessment in 2017 52
Table 17: Regionality of purchased chemicals 52
Table 18: Certification status of Lenzing operations – Chain of custody 56
Table 19: Framework of actions for nature, from SBTN (2020) 60
Table 20: SBTN’s framework for action and Lenzing‘s approach 60
Table 21: Quantity of forest area used for Lenzing’s wood sourcing: data availability and quality 62
Table 22: Quantitative description of areas managed and influenced by LD Celulose 63
Table 23: EU Ecolabel criteria 71
Table 24: Water withdrawal 78
Table 25: Specific water use in the Lenzing Group 78
Table 26: Water consumption 78
Table 27: Water discharge 79
Table 28: Absolute emissions to water 80
Table 29: Specific emissions to water 80
Table 30: Absolute emissions to air 81
Table 31: Specific emissions to air 81
Table 32: Work-related injuries for all employees 83
Table 33: Work-related injuries for other workers 83
Table 34: Top five work-related injuries 84
Table 35: Socio-economic effects of Lenzing’s activities --Main results for 2022 89
Table 36: Employees 2022 – General information required 93
Table 37: Employees 2022 – Employees turnover 94
Table 38: Annual Total compensation ratio 2022 94
Table 39: Employees 2022 – Newly hired employees 95
Table 40: Employees 2022 – Employees with disabilities 95
Table 41: Employees 2022 – Individuals within the organization’s governance body 95
Table 42: Employees 2022 – Individuals outside the organization’s governance body 96
Table 43: Employees 2022 – Individuals within managing role 96
Table 44: Work-related injuries for all employees – Lenzing AG 116
Table 45: Top five injury types – Lenzing AG 116
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130 Sustainability
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Table 46: Employees 2022 – Lenzing AG 117
Table 47: Wood procurement for the company’s own fiber pulp plants in Lenzing (Austria) 118
Table 48: Wood procurement for the company’s own fiber pulp plants in Paskov (Czech Republic) 118
Table 49: Certification status Lenzing AG – 2020–2022 118
Table 50: Lenzing’s most important wood species 118
Table 51: Different nationalities within the Lenzing Group 2022 119
Table 52: References in Policies – Lenzing Policy 120
130
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Group
SPECIAL THANKS FOR EDITORIAL CONTRIBUTIONS GO TO:
• Amelung Felix • Heubrandner Florian • Nasioudis Andreas • Steinmair Philipp

• Austaller Anna • Holzinger Franziska • Panholzer Thomas • Tauzimsky Thomas
• Bartsch Peter • Innerlohinger Jo-Ann • Parsan Chand Maha- • Topbas Meltem
• Böhm Laura • Köfner Dominic veer • Untersberger Lukas
• Buchleitner Robert Jo- • Kogler Doris • Promberger Andrea • Viehbock Johann-Peter
hann • Krahbichler David • Rettl Giovanni • Waldow Luise
• Dodds Adrian • Kroeg Walter • Rivera Ramos Alexan- • Wechselberger Dietmar
• Durz Angelika dra
• Kulka Stephan • Welles Joyce
• Eder-Kollmitzer Alexan- • Schmid Susanne
• Ledl Caroline • Wester Andreas
dra • Schmid-Schlager
• Liu Sandy Stefanie • Winkelmeier Daniel
• Fili Gregor
• Luo Zheng • Schuster Kurt Christian • Wirth Florian
• Gibasova Jana
• Manda Krishna • Seyfriedsberger Ger- • Wukits Claudia
• Girardi-Walch Alexan-
der • Markus Janina hard • Zak Sonja
• Gluth Claudia • Matiz Thomas • Simunovic Nenad • Zimmermann Kerstin
• Gorringe Stuart • Mommer Claudia • Stampfel Angelika
• Grünewald Arne • Moosbauer Karin
Imprint
Copyright and published by
Lenzing Aktiengesellschaft
4860 Lenzing, Österreich
www.lenzing.com
Concept and edited by

GW+Co (www.gilmarwendt.com)
Lenzing Group
Layout and graphic design

Produced inhouse using firesys (www.firesys.de)
nexxar GmbH (www.nexxar.com)
Photographs by
Christian Leopold; Lenzing AG / Christian Leopold / YC Shek; Lenzing AG /
Richard Ramos; Lenzing AG / Lucas Capra; LD Celulose / Flavio Pasqua;
Lenzing AG / Richard Cordero; Lenzing AG / Getty Images / Franz Neumayr;
Lenzing AG / Franz Neumayr / Tawan Studio; Lenzing AG / Lee Jian Shen;
Lenzing AG / Kevin Wong; Lenzing AG / Cheung Chi Lock; Lenzing AG
131
132 Sustainability
Group

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Advancing Circularity

and the people making it happen

Lenzing Group 2022 3

Annex 2022 114

1 Sustainability Report 2022 Lenzing Group

In our online Sustainability Report 2022, we tell how we are

2 Sustainability Report 2022 Lenzing Group

3 Sustainability Report 2022 Lenzing Group

Lenzing Group: Sustainability key performance indicators Table 01

2020 2021 2022

Value creation EUR 406.4mn EUR 685.4mn EUR 527.6mn

[GRI 2-1, 2-2, 2-3, 2-4]

Lenzing Group Table 02

2020 2021 2022

For more information on detailed financial figures, please see the

Lenzing Aktiengesellschaft is a publicly traded company. Its shares

The Austrian B&C Group was the majority shareholder of

11 Sustainability Report 2022 Lenzing Group

The Lenzing Group is committed to the ecologically responsible production

End of life Manufacturing

Lenzing is at the start of a long value chain in the textile and

[GRI 2-1, 304-1, 413-2]

Numbers = Nominal capacities as at December 31, 2022

Grimsby Istanbul Seoul

New York Lenzing Hongkong Shanghai

1 Dissolving wood pulp

14 Sustainability Report 2022 Lenzing Group

Sustainability organization Figure 03

Continuous At least monthly At least semi-annual

16 Sustainability Report 2022 Lenzing Group

ESG Committee structure Figure 04

Capital Risk Operations Procure- Business Communi- Finance/ Human

ESG Ratings TCFD/ Climate Wood & Premium EU EU Social

17 Sustainability Report 2022 Lenzing Group

Dissolving wood pulp and fiber production require

18 Sustainability Report 2022 Lenzing Group

[GRI 3-1, 3-2]

Materiality analysis Figure 05

Phase Phase Phase

Create Sustainability impact

Develop Financial impact

Describe Stakeholder interest

* LCA = Life cycle assessment

19 Sustainability Report 2022 Lenzing Group

Raw material security, Partnering for Environmental matters,

For further information on the updated materiality analysis, please

Our defined sustainability mission and vision act as guide to making

Strategic focus areas of sustainability and the corresponding SDGs Figure 06

21 Sustainability Report 2022 Lenzing Group

[GRI 3-3] responsible company, Lenzing is committed to procuring wood

Color code status On track

Target year SDG

4 NACE (Nomenclature statistique des activités économiques dans la Communauté européenne) is

Substantial Contribution criteria DNSH criteria

Taxonomy-aligned proportion of turnover year 2022

Taxonomy-aligned proportion of turnover year (n/a)

Category (transitional activity)

Biodiversity and ecosystems