How Lenzing is Cutting Carbon in Its Supply Chain
Within Lenzing Group’s multifaceted environmental, social and corporate governance strategy, carbon reduction is a critical priority.
In 2019, we became the first wood-based fiber manufacturer to have approved science-based targets designed to restrict global warming to 2 degrees Celsius compared to pre-industrial levels, and we are still the only producer among our peers with a scientifically confirmed net-zero carbon target. A few years into our science-based target journey, we are establishing more aggressive targets that reflect the Paris Agreement goals of limiting global warming to 1.5 degrees Celsius.
Lenzing’s initial SBTs were to cut our carbon emissions per ton of product by 50 percent by 2030 compared to a 2017 baseline and to reach net-zero carbon emissions by 2050. Now, by 2030, we aim to shrink our Scope 1 emissions from fiber and pulp production and our Scope 2 emissions from energy purchases by 42 percent, and we are targeting a 25 percent reduction in Scope 3 emissions that come from our supply chain, all of which are relative to a 2021 baseline. With these updated targets, we will be cutting our carbon impact by 1.1 million tons by 2030, compared to the 700,000 tons originally outlined.
We are still working toward net-zero emissions by 2050. To get there, we will reduce our direct and indirect Scope 1, 2 and 3 emissions by 90 percent between 2021 and 2050.
“At Lenzing, we have the ambition to positively change the textile and nonwovens industries,” said Stephan Sielaff, CEO of the Lenzing Group. “This is precisely what makes a noticeable difference to other companies and is also the basis for long-term success. We set ourselves ambitious goals and pursue concrete measures to achieve them. This enables us to continuously increase our resilience to external influences such as the energy crisis and, on the other hand, to better meet the growing customer demand for eco-responsible products.”
Supporting these SBTs are infrastructure and energy projects at our plants. For instance, our production facilities in China and Indonesia are powered by 100 percent renewable energy sources that we purchase from the grid. We also acquired a biomass power plant in 2023 to power our plant in Bergenland, Austria.
“With our reduction targets, we are making a decisive contribution to meeting the 1.5-degree limit, which must be the benchmark for our corporate decision-making and actions,” said Christian Skilich, chief pulp officer and chief technology officer of the Lenzing Group. “We will continue to invest in energy savings and new technological developments and therefore I am confident that we are on the right track towards achieving our net-zero target by 2050.”
Tracking and reporting are integral to achieving targets and communicating about our carbon impact. Lenzing has four pillars of transparency: Share, Prove, Partner and Track. Share refers to our openness with customers about our efforts, while prove leans on our systems that can test and verify our fibers’ authenticity. We seek out partners—including brand customers—that have the same values as us. Finally, track relates to our traceability, including our partnership with TextileGenesis on blockchain-based chain of custody mapping.
We are also collaborating with Project44 to add visibility to our ocean shipments. Project44’s real-time tracker provides insight into not only the exact location of goods, but also the carbon emissions associated with each container. With this emissions data, which is accredited by the Global Logistics Emission Council (GLEC) framework, Lenzing and its customers can adjust shipment plans to meet carbon targets. “With supply chain transparency and sustainability becoming increasingly more important, our ability to implement groundbreaking carbon emission tracking at shipment and container level demonstrates that we are ready and eager to collaborate with our valued customers in jointly crafting ambitious carbon reduction targets,” said Thomas Panholzer, vice president global supply chain at Lenzing.