Stakeholder engagement Issue April 2022 - Lenzing
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Stakeholder engagement
Issue April 2022
Page 1 – issue April 2022
Table of contents
The sustainability strategy of the Lenzing Group: "Naturally positive" .................................................................. 3
Partnering for change ............................................................................................................................................ 4
Lenzing’s key stakeholders ................................................................................................................................... 4
Lenzing’s most important stakeholder dialogs ...................................................................................................... 5
Employees ......................................................................................................................................................... 5
Media ................................................................................................................................................................. 6
Local communities/neighbors ............................................................................................................................ 6
Direct customers & value chain partners ........................................................................................................... 6
Retailers & brands ............................................................................................................................................. 7
Suppliers ............................................................................................................................................................ 7
Multi-stakeholder organizations/initiatives ......................................................................................................... 7
Industry associations ....................................................................................................................................... 10
Non-profits ....................................................................................................................................................... 12
Academia ......................................................................................................................................................... 13
Value Chain Partnerships ................................................................................................................................ 14
Competence centers and technical services ............................................................................................... 14
Lenzing Innovation and Technology hubs ................................................................................................... 14
Cooperation between Lenzing & Hof University of Applied Sciences.......................................................... 14
Financial Community / Investors...................................................................................................................... 15
Ratings 2021 .................................................................................................................................................... 15
Page 2 – issue April 2022The sustainability strategy of the Lenzing Group:
"Naturally positive"
“Naturally positive”, the Lenzing Group’s sustainability strategy, was developed from the results of the materiality
analysis and is firmly rooted in the Lenzing Group’s sCore TEN strategy. Within the dimensions People – Planet
– Profit, this strategy defines those sustainability areas where Lenzing can do the most to create a more
sustainable world. This is the essence of Lenzing’s Naturally positive thinking. A successful implementation of
this thinking focus areas to reinforce the sphere of influence. One of these focus areas is “Partnering for change”.
The sustainability strategy “Naturally positive” is the basis for Lenzing’s approach to contributing to the United
Nations’ Sustainable Development Goals (SDGs).
Figure 1: "Naturally positive" sustainability strategy
Page 3 – issue April 2022Partnering for change
The world is more interconnected today than ever before. Improving access to technology and knowledge is an
important way to share ideas and foster innovation. The complex global sustainability challenges we are facing,
such as the COVID-19 pandemic, climate change, widespread biodiversity loss, plastic pollution, etc., call for a
collaborative approach to designing systemic solutions.
Transparency is a prerequisite for fostering trust and long-term relationships. Guided by the United Nations
Sustainable Development Goal SDG 17: Partnerships for the Goals, the Lenzing Group regularly engages with
a wide range of stakeholders in order to integrate different perspectives, understand global trends, and mitigate
risks. Lenzing strives to identify and develop cross-industry business cases to drive progress in instituting
circularity at Lenzing and throughout the industry. By contributing to the development of methods, tools and
products, Lenzing helps the industry to progress on its path towards a more sustainable future. For example,
with the introduction of carbon-zero TENCEL™ fibers, Lenzing contributes to reducing the carbon footprint of
customers’ supply chains.
Engaging in a dialog means respecting stakeholders, contributing Lenzing’s expertise and knowledge, and taking
the opportunity to learn from partners’ perspectives. Each dialog starts with providing transparent information,
supporting stakeholders to form an educated opinion and assess risks, and avoiding misunderstandings by
building trust. Furthermore, stakeholder relationships built on trust and openness help solve existing tensions
and avoid potential conflicts.
The ongoing stakeholder dialog in the Lenzing Group typically includes workshops and webinars with customers,
one-on-one discussions, training sessions, interviews, surveys, education, joint product development, web
platforms, roadshows, regular media relations, trade shows and conferences, press interviews, risk
assessments, and audits. All these activities are conducted either online or personally.
Various business functions are involved in reaching out to individual stakeholders. In addition to the Lenzing
Sustainability team, the Managing Board, managers of the different business functions, and key account
managers are all important players who drive the company’s proactive approach towards ongoing stakeholder
dialog.
Lenzing’s key stakeholders
The key stakeholders for the Lenzing Group are the people and entities who are potentially affected by its
operations, business conduct, and strategic targets. Lenzing regards them as strategic partners who have a
significant interest in and impact on areas that matter the most to Lenzing.
This figure below shows an overview of the most important stakeholder groups.
Page 4 – issue April 2022Figure 2: Lenzing's stakeholder groups
Lenzing’s most important stakeholder dialogs
The following information shows the way Lenzing usually engages with its stakeholders.
Employees
One very special stakeholder group is Lenzing staff. Transparency, collaboration, and sharing of information
make them key testimonials for credible Lenzing Group sustainability performance. For the special challenges,
COVID-19 presented for the Lenzing staff in the reporting year, please see “Health and safety” chapter in the
Sustainability Report.
Stakeholder interest Lenzing engagement through Activities
Regular information on work
Works councils/trade unions
conditions, remuneration, etc.
Regular town hall meetings, corporate
Fair employment conditions, respect media (newsletters, TV cooperation,
and collaboration, safe & healthy screens, online magazines, intranet
working environment, transparent etc.), workshops, presentations to
information, job security, long-term & sites and functions, internal
Internal communication
sustainable thinking sustainability training, site visits. In
2021, the frequency of virtual townhall
meetings and the provision of
information was considerably
increased due to COVID-19.
Page 5 – issue April 2022Media
Transparent and open communication is an essential prerequisite for a successful, globally operating, publicly
listed company like the Lenzing Group. Increasing digitalization enhances the significance of media as
stakeholders for the company.
Stakeholder interest Lenzing engagement through Activities
Press relations with national and
Corporate Communications,
Understanding and ongoing public international general and trade media,
Marketing Communication,
information regarding the press conferences, product launches,
Brand Management,
development of Lenzing interviews, social media
Business Management
communication
Local communities/neighbors
Both locally and internationally, the Lenzing Group takes its social responsibility as a corporate citizen seriously.
Therefore, the company maintains continuous and consistent communication to inform communities and listen
to their concerns and ideas, with the goal of creating healthy community relationships.
Stakeholder interest Lenzing engagement through Activities
Ongoing contacts with community
representatives, group-wide
grievances procedure, enhancing
development and wellbeing through
Safety, job creation, prosperity, clean Management at production sites, safe and eco-friendly operations, fair
environment in terms of water, air, Corporate Communication, employment practices and
noise; ethical standards, compliance, Community department of PT. South contributions to local economic
paying fair taxes Pacific Viscose development and community life
through beneficial activities in the field
of donations, sponsorships, health
and medical care, educational
programs, environmental projects
Direct customers & value chain partners
Customer intimacy and responsiveness to customer needs are part of Lenzing’s sCore TEN strategy.
Relationships are geared to the long term and often extend over many decades.
Stakeholder interest Lenzing engagement through Activities
Ongoing regular exchange on a wide
Innovative, sustainable and range of sustainability topics,
differentiating products, Sales, customer events, webinars, panel
long term and trustful Business Development, discussions and workshops about
partnerships, open and Corporate Sustainability, quality, product development,
transparent collaboration, Technical Customer Service innovation, supply chain
reliability management, site visits, trend
forecasts, color cards, fabric and
Page 6 – issue April 2022product development, exhibitions,
specialist conferences
newsletters, blogs
Retailers & brands
Retailers and brands are customers for Lenzing, which is located at the upstream end of the value chain. They
represent important stakeholders for the company, as they are the key link to the end consumer.
Stakeholder interest Lenzing engagement through Activities
Innovative, sustainable and
Ongoing regular exchange on a wide
differentiating products, Business Development,
range of sustainability topics,
long term and trustful Key account managers,
customer events and workshops,
partnerships, open and Corporate Sustainability,
conferences, exhibitions, virtual site
transparent collaboration, Brand Management
tour at Lenzing site, Austria
reliability
Suppliers
The responsible purchasing of primary and raw materials for fiber and pulp production plays a crucial role for
the Lenzing Group. Against the backdrop of the global issue of deforestation and land degradation, particular
importance is attached to responsible wood and pulp sourcing. Good and transparent business relationships
with suppliers are key to promoting and improving a sustainable supply chain.
Stakeholder interest Lenzing engagement through Activities
Long-term and trustful partnerships, Purchasing department, Audits and supplier assessments, site
open and transparent collaboration, Global Pulp & Wood, and forest visits, specialist
fair pricing, reliability EcoVadis assessment conferences
Multi-stakeholder organizations/initiatives
Stakeholder interest: Leadership and participation to change for the better, develop and shape new tools and
standards, collaboration, drive sustainable business practices and take responsibility.
Stakeholder Membership Description Activities
Group of CEOs from some of
In 2021, Lenzing’s Chief Executive Officer
Europe’s largest businesses to
European Round was the only CEO of an Austrian
Member promote sustainable growth,
Table (ERT) company to be appointed to the European
competitiveness and prosperity in
Round Table (ERT).
Europe.
Circular Fashion Partnership
Circular Fashion
represents a cross-sectorial project
Partnership (an Lenzing engages in accelerating the
led by Global Fashion Agenda.
initiative of the Participant transition to a circular system in fashion
Fashion brands, manufacturer and
Global Fashion industry.
recyclers collaborate for capturing and
Agenda)
reusing textile waste in Bangladesh.
Page 7 – issue April 2022Lenzing actively participates in dialog with
civil society and EU policy makers in
Policy Hub on Member since
exchanging information on barriers and
circular economy for 2019,
possible solutions for advancing
the apparel and co-chair from
circularity. Details see in “Circularity and
footwear industry May 2020
resources” chapter of Sustainability
Report 2021.
11 leading companies from six
Together with other leading companies,
countries founded the Renewable
Founding Lenzing focuses on supporting and
Renewable Carbon Carbon Initiative in September 2020
partner/Board speeding up the transition from fossil
Initiative (RCI) under the leadership of nova-Institute
member carbon to renewable carbon for all organic
(Germany). In 2021, the number of
chemicals and materials.
members increased to more than 30.
Lenzing contributes to the development
and testing of the Material Sustainability
Index (MSI) relaunch and the first part of
the product module. Lenzing has been
selected to serve on the SAC
Transparency Strategic Council. Its
participation is to collaborate with other
industry leaders to provide advice, input,
and counsel on the strategic direction and
SAC is the apparel, footwear and
Sustainable Apparel Founding implementation of the SAC strategic plan
home textile industry’s foremost
Coalition (SAC) member with regards to the Transparency goals
alliance for advancing sustainability.
and objectives. In 2021, Lenzing
sponsored the SAC Annual Member
Meeting, which was associated with the
Textile Exchange Conference. Lenzing
also contributed to the development of the
“Roadmap to Zero” publication in 2021,
which intends to catalyze industry action
against climate change with proven
approaches and measures.
Input to the annual Preferred Fiber
and Materials Report and Fiber
Benchmark Report
Pilot participant in the Corporate Fiber
and Materials Benchmark for
Suppliers
Completion of the MMCF Producer
Textile Exchange is a global non-profit Transparency Questionnaire
organization that works closely with Biodiversity Benchmark: Advisory
Member/ the global textile supply chain, brands, Group member and input to the new
Textile Exchange Advisory and retailers to drive industry questionnaire
Board in 2022 transformation in preferred fibers, Sponsorship and agenda support for
integrity, standards and responsible the Annual Textile Sustainability
supply networks. Conference including exhibiting and
participation in the MMC Fiber Round
Table
Collaborating, contributing to and
speaking at seminars for industry
engagement including:
Texworld New York (January and
July)
Page 8 – issue April 2022 Total Home MarketTextile
Exchange Webinars – on the
TextileGenesis® Blockchain
Collaboration
Textiles 2030 is WRAP’s new expert-
led initiative in the UK designed to
limit the impact clothes and home In August 2021, Lenzing joined as one of
Textiles 2030 (an textiles have on climate change. It the pioneering signatories the voluntary
initiative of Waste & represents a voluntary agreement that agreement Textiles 2030. Lenzing, which
Signatory
Resources Action is funded by its signatories and the manufactures in Grimsby in the UK, is
member
Programme government. Signatories will honored to take part in this initiative for
(WRAP)) collaborate on carbon, water and proactively fostering circularity and
circular textile targets, as well as systemic change in the textiles industry.
contribute to national policy
discussions.
Founded in 1945, the United Nations
has evolved over the years to keep
pace within a fast changing world. It
currently holds 193 member states
working together guided by the goals UN Fashion Charter (see below)
and principles contained in the UN United Nations Framework
Member in
founding charter. In 2015, all Member Convention on Climate Change
United Nations (UN) several UN
States of the United Nations adopted (UNFCCC)
initiatives
the Sustainable Development Goals Fashion Impact Found
(SDGs), a collection of 17 goals to Conscious Fashion Campaign
address global economic, social and
environmental challenges and
achieve a more sustainable future by
2030.
The Fashion Industry Charter for
Climate Action under the auspices of
UN Climate Change was presented in
Lenzing continued its active contribution
2018 at the COP 24 in Katovice,
to the working group on raw materials,
Founding Poland. It is a broad stakeholder
sharing its longstanding experience with
member of the movement in the textiles, clothing and
the production of sustainable wood-based
UN Fashion Charter UN Fashion fashion industry towards a holistic
fibers and assessment of environmental
Dialogue commitment to climate action.
impacts through life-cycle analyses (LCA).
(2018) Signatories commit to climate targets
Details see in “Decarbonization” chapter
and finally to fully decarbonize the
page 93 in the Sustainability Report 2020
fashion industry value chain in
alignment with the Science Based
Targets Initiative.
Contributor to CEO Climate Leaders
Alliance
The World Economic Forum is an Member of “Shaping the Future of
international NGO. It represents not Advanced Manufacturing and
World Economic
Contributor only an annual forum but also a Production” platform
Forum (WEF)
Member foundation, which is dedicated to Member of Steering Committee of the
global, regional and industrial issues Nature Climate Solutions Alliance
affecting society. Contributor to Platform for
Accelerating the Circular Economy
(PACE)
Page 9 – issue April 2022Contributor to
ZDHC’s Man- In 2021, Lenzing has started the ZDHC
Gateway reporting according to the
Made
wastewater guideline in its viscose
Cellulosic ZDHC works towards reducing the operations in Purwakarta (Indonesia),
Zero Discharge of Fibers industry’s chemical footprint and Nanjing (China), and Lenzing (Austria). In
Hazardous (MMCF) collaborates with global brands, 2022, Lenzing will start the Gateway
Chemicals (ZDHC) Task Team on chemical suppliers, manufacturers reporting on air emissions, while
wastewater, and other organizations. continuously taking part in the task team
sludge/solid in revising the guidelines and developing
further guidelines for other MMCF
waste, and air
materials.
emissions
Industry associations
Stakeholder interest: leadership and participation to change for the better, support industry interests, develop
and shape standards, collaboration.
Stakeholder Membership Description Activities
Beside the presidency in the CIRFS
executive board by Lenzing’s Board
CIRFS is the voice of the man-made
Member, Robert van de Kerkhof, Lenzing
fibers Industry in Europe. CIRFS’s
European Man- actively takes part in different committees
mission is to facilitate the sustainable
Made Fibres Presidency and working groups organized by CIRFS
growth of the European man-made
Industry Association Contributor for a wide range of topics. Apart from
fibers industry to meet the future
(CIRFS) Economic & Trade Policy and Statistics
needs of the consumer, society, and
the key focus of CIRFS is on different
our planet.
topics within Circular Economy,
Sustainability and Chemical Policy.
Lenzing cooperates with CNTAC Office
for Social Responsibility, Information
Center and Development Center on
sustainable development and new
application development of the industry
Important topics:
Circular economy in China
China National Support of “China Textiles
CNTAC is a national organization for
Textile and Apparel Contributor Development Report”
China’s textile and apparel industry.
Council (CNTAC) Piloting LCA of final garment/ bed set
products; with implementation in the
whole industry
Establishing online sustainability
training module - Empower
Sustainability
Establishing “LENZING™ Fiber
Development and Application” award
European EDANA promotes the sustainable Lenzing is engaged in several steering
Disposables and development of the nonwoven and working groups in various fields.
Nonwovens industry for a community of over 290 In 2021, a key focus of Lenzing’s work
Board
Association companies worldwide and advocate within EDANA was the advocacy working
(EDANA) the benefits of nonwovens for society. group, where the key topic for Lenzing
Page 10 – issue April 2022was the discussions around the EU
Single-Use-Plastics Directive.
Member in
several
industry
associations
EURATEX is the European Apparel Lenzing takes an important role in the
European Apparel like Eurocoton,
and Textile Confederation, latest project ReHubs to further drive
and Textile CIRFS,
representing the interests of the circularity in the Textile Industry. For
Confederation EDANA, WKO,
European textile and clothing industry details, see “Circularity & resources”
(EURATEX) which are
at the level of the EU institutions. chapter in the Sustainability Report.
represented as
members and
in the board of
EURATEX.
National Council of Textile
Organizations is a unique association
National Council of representing the entire spectrum of
Textile the textile sector. From fibers to Lenzing engages in several webinars,
Member
Organizations finished products, from machinery events, networking and lobbying activities.
(NCTO) manufacturers to power suppliers,
NCTO is the voice of the U.S. textile
industry.
OIA was founded in 1989 by a group
of 14 visionary outdoor industry
pioneers. It is a member-led trade
Lenzing engages in several lobbying and
Outdoor Industry organization for the outdoor industry
Member pursues research activities including the
Association (OIA) working on recreation and trade
Climate Action Corps.
policy, sustainable business
innovation and increasing outdoor
participation.
After years of participating in
The Transformers Foundation unifies
Transformers Talks, Lenzing has
the denim industry and its ideas for
recognized the need to drive change in
positive change. It grew up from the
the industry. Lenzing works closely with
intention of providing the jeans and
industry's supplier network and
Transformers Founding denim supply chain with a so far
encounters the ingenuity, expertise and
Foundation member missing platform and a central contact
commitment of its peers. Based on a
point for consumers, brands, NGOs
common basis of shared values, Lenzing
and media who are eager to learn
supports the Transformers Foundation
more about ethical practices and
and the people driving this change
sustainable innovation in the industry.
process.
Founded in 1989, USFIA represents
global brands, retailers, importers and
wholesalers based in the United
Lenzing launches events, webinars as
US Fashion Industry States. The association stands up for
Member well as contributes to reports and lobbying
Association (USFIA) eliminating tariff and non-tariff barriers
activities.
that impede free trade in the fashion
industry and seeks to create jobs in
the US.
Page 11 – issue April 2022Non-profits
Stakeholder interest: Drive a sustainable industry, change for the better, leadership
Stakeholder interest Lenzing engagement through Activities
Canopy is a not-for-profit
Lenzing maintains a continuous dialog
environmental organization dedicated
with Canopy and the CanopyStyle
to protecting forests, species and
initiative to constantly improve its
climate. Initiated by Canopy, the
sustainable sourcing practices and
CanopyStyle initiative is a group of
Canopy and CanopyStyle initiative contribution to global forest
more than 455 global fashion,
conservation. For details on
designer and retail brands that aim to
collaboration in the reporting year, see
protect the world’s ancient and
"Raw material security" chapter in the
endangered forests from ending up in
Sustainability Report.
textiles.
Lenzing is fully committed to
addressing the issues of
environmental and human health
impacts raised by Changing Markets.
In 2021, Lenzing continued its open
Changing Markets Foundation is a
exchange with the NGO in relation to
non-profit organization that
the Dirty Fashion Report. Numerous
Changing Markets Foundation accelerates and scales up solutions to
activities in safety, health, and
sustainability challenges by leveraging
environment at the Indonesian
the power of markets.
production site were carried out, such
as improvements in measuring and
reporting key environmental data,
continuous improvement, waste
management, and in safety.
Umweltdachverband worked in a
feasibility study about connecting
Umweltdachverband is an Austrian
Lenzing’s wood sourcing to activities
Umweltdachverband umbrella organization of
for protecting biodiversity, especially
environmental NGOs
endangered species, in managed
forests in Austria.
Based on its specialized know-how,
Lenzing supports the definition of
global improvement targets. Lenzing
has initiated collaboration and support
in developing the “Science Based
Target initiative’s Apparel Sector
The World Resources Institute (WRI)
Guidance”. This guidance was
fosters environmental protection,
launched in mid-2019 and will help all
World Resources Institute (WRI) sustainable development and the
companies along the value chain to
improvement of people’s living
develop climate change targets based
conditions.
on up-to-date climate science.
Lenzing contributed to the
development of the “Roadmap to Net
Zero: Delivering science based
targets in the apparel sector” report,
which was published in 2021.
Page 12 – issue April 2022Academia
Stakeholder interest: Industry insights, market development analysis
Institution Activities
Wood K plus Long-term cooperation
Ongoing R&D projects on advanced biomass, lignin and
hemicellulose utilization, use of enzymes in the production
process
Christian Doppler Laboratory „Efficient, recycling-based R&D on efficient, recycling-based circular economy
circular Economy”
Research Center for Non Destructive Testing Collaboration in PSSP project together with several
Austrian industrial companies
University of California, San Diego, USA – Scripps Biodegradability of cellulose-based materials in maritime
Institution of Oceanography environment
Johannes Kepler University, Austria, Basic research regarding dielectric properties of cellulose
Linz Institute of Organic Solar Cells (LIOS) fibers and their influence on processing
European Polysaccharide Network of Excellence (EPNOE) Exchange with European top institutes – Lenzing is also
member of Industrial Advisory Board
Austrian Institute of Technology (AIT) Development of energy-efficient technologies within NEFI
network (New Energies for Industry)
RWTH Aachen, Germany Cooperation e.g. in project INGRAIN (biobased circular
economy)
VTT, Finland Cooperation in project “Piloting alternatives for plastics”
BOKU (University of Natural Resources and Life Wide range of cooperation from smaller bilateral projects
Sciences), Vienna to joint partnership in larger research activities (e.g. Wood
K plus)
Pro²Future, Linz Cooperation in the overlapping field of Artificial
Intelligence, production and sustainability (e.g.
GreenFashion4Future)
Wageningen University & Research, The Netherlands Exchange regarding alternative raw materials and
circularity (incl. joint project proposals)
Page 13 – issue April 2022Value Chain Partnerships
Competence centers and technical services
Lenzing runs three competence centers and offers technical and professional advice for partners along the value
chain in order to deepen its relationships with them. These “Lenzing Innovation and Technology hubs” (LIT) are
equipped with state-of-the-art facilities, such as the latest airjet high-speed spinning & spin/knit technology, and
are operated by textile experts from the Technical Marketing Development team. The competence centers play
a crucial role when it comes to offering added value to Lenzing’s business partners who use Lenzing fibers.
Lenzing Innovation and Technology hubs
Lenzing, Austria – Technical Marketing Center (TMC)
Located at the Lenzing headquarters in Austria, the TMC’s competence focuses on the development of new
fiber applications and ranges to best practice in fabric production. The professional team and the technically
advanced facilities enable a wide scope from spinning to woven and knit fabric manufacturing and further
down to fabric and garment processing. Equally sophisticated laboratory and testing facilities are available
for nonwoven applications as well.
Purwakarta, Indonesia – Lenzing Center of Excellence
Lenzing’s Center of Excellence in Indonesia focuses on primary customers. Its energy-efficient state-of-the-
art machine park (fiber opening, carding, draw frame and spinning machines) covers all commercially
important spinning technologies for wood-based fibers along the entire textile production chain. The up-to-
date facilities respond to the customers’ need for highly flexible solutions.
Hong Kong, China – Application Innovation Center
The Hong Kong Application Innovation Center is specialized in fabric and new application development. Its
state-of-the art facilities include seamless, yarn/garment coloration & spin/knit technology.
Cooperation between Lenzing & Hof University of Applied Sciences
The testing facilities to support Lenzing’s nonwoven business were significantly strengthened in 2021. In a
cooperation with the German Hof University of Applied Sciences a brand new state of the art nonwoven pilot line
was inaugurated. The new line offers unique opportunities to run trials on an industrial scale line and will
specifically support Lenzing’s customers in their developments towards products made from 100 percent
cellulosic materials.
Page 14 – issue April 2022Financial Community / Investors
Investors are increasingly conscious of the social and environmental consequences of the decisions that
companies make. Environmental, Social & Governance (ESG) criteria combine the company’s environmental
and social impact with its corporate governance performance and measure these activities in transparent,
quantifiable metrics. Investors use ESG criteria to evaluate the creation of a company’s long-term value and
ability to mitigate risk, and regulators increasingly integrate ESG risk analysis and disclosure into their
frameworks. Nevertheless, only 30 percent of investors consider ESG information provided by companies
sufficient and therefore turn to third parties, such as rating agencies, for qualitative and quantitative data.
Global developments, such as the move towards reducing greenhouse gas emissions and increasing renewable
energies affect investments in all kinds of industries. An increasing number of investors use ESG screens to
direct capital towards change leaders.
Consequently, innovative and sustainability-based financing has gained in importance in the implementation of
Lenzing’s corporate strategy sCore TEN. ESG rating agencies are increasingly important for Lenzing to evaluate
its efforts to identify environmental, social and governance risks, and to improve its target setting.
As one of the first companies in the world, Lenzing successfully positioned a bonded loan bound to its
sustainability performance. The success of a EUR 500 million hybrid bond issued in 2020 is a vote of confidence
in Lenzing by the capital market. The company’s rating history shows constantly improving results, with ratings
being above sector average where rated. The ratings achieved in the reporting year underline that Lenzing’s
performance with regard to the production of climate-neutral and socially responsible fibers were positively
received by the investors’ community.
Ratings 2021:
CDP: ‘AAA’ rating
CDP is a non-profit organisation that runs the global disclosure system for investors, companies, cities, states
and regions to manage their environmental impacts. The world’s economy looks to CDP as the gold standard
of environmental reporting with the richest and most comprehensive dataset on corporate and city action. In
2021, over 590 investors with over USD 110 trillion in assets and 200 major purchasers with USD 5.5 trillion
in procurement spend requested companies to disclose data on environmental impacts, risks and
opportunities through CDP’s platform. A record-breaking 13,000 companies responded. Lenzing is one of
only 14 companies worldwide that were recognized with an outstanding triple ’A‘ for environmental leadership
in climate change, forests and water security.
CDP Climate: ‘A’ rating
CDP's climate change program aims to reduce companies' greenhouse gas emissions and mitigate climate
change risk. Lenzing received an ‘A’ for Climate (“Implementing current best practices”). This is higher than
the Europe regional average of ‘B’, and higher than the Chemicals sector average of ‘B’.
CDP Forests: ‘A’ rating
CDP Forests provides a framework of action for companies to measure and manage forest-related risks and
opportunities, transparently report on progress, and commit to proactive action for the restoration of forests
and ecosystems. Lenzing received ‘A’ for Timber, which is in the Leadership band. This is higher than the
Europe regional average of ‘B-‘, and higher than the Chemicals sector average of ‘B’.
CDP Water: ‘A’ rating
Page 15 – issue April 2022CDP’s Water Security program helps companies to increase awareness for their water management
practices through transparent disclosure of direct and indirect interactions with water resources, analyzed
risks, and identified opportunities. Lenzing received ‘A’ for the first time Water Security disclosure,
representing Leadership level. This is higher than the Europe regional average of ‘B’, and higher than the
Chemicals sector average of 'B’.
Sustainalytics: rating kept stable on 22/100 i Medium risk level compared to last evaluation
MSCI: ‘AA’ rating (‘A’ score in the last 3 years, before ‘BBB’)
Lenzing ranks among the world’s top 6 percent in the industry after receiving an ‘AA’ rating. This classification
is a further testimony to Lenzing’s leading role in sustainability. The upgrade to the MSCI ESG rating will also
lead to a reduction in Lenzing’s interest expense. Lenzing placed a bonded loan worth EUR 500 mn in 2020,
which is linked to its sustainability performance. In accordance with its commitment under the bonded loan
placement, the company will donate the full amount of the interest expense saved thanks to the rating revision
to a project it supports.
ISS-ESG: ‘B-’ rating
In its latest report, ISS ESG raised the Lenzing Group’s sustainability rating from ‘C+’ to ‘B–‘ the highest
rating in the category “Paper & Forest Products“, positioning the Lenzing Group among the top 10 percent of
rated companies and confirming “Prime Status”. ISS ESG is one of the leading agencies for sustainability
ratings internationally and currently covers more than 8,000 issuers worldwide. The assessment of
sustainability performance is based on more than 800 individual indicators in the areas of environmental,
social and governance (so-called ESG criteria) performance. 40 companies from all over the world are rated
in the “Paper & Forest Products” category. The best rating in this category is ‘B-‘.
Page 16 – issue April 2022EcoVadis: 78/100 Platinum status (Gold status in the last 3 years)
Its rating from EcoVadis with regard to corporate social responsibility is particularly outstanding. Having
achieved platinum status for the first time in 2021, Lenzing ranks among the world’s top 1 percent of
companies evaluated based on their approach to the environment, fair working conditions and human rights,
as well as ethics and sustainable procurement.
Vigeo Eiris: 59/100 – “robust” performance level
Lenzing is among the top 20 percent in its sector and among top 4 percent worldwide.
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