Lenzing’s Carbon, Water and Forest Impact Earn an A Score from CDP
A key element of sustainability initiatives is transparency. Measuring and reporting on progress provides benchmarks to see results and where there is room to grow.
Each year, carbon disclosure nonprofit CDP analyzes the reports it receives from companies and publishes sustainability scores for firms across industries. In 2022, Lenzing Group was one of just 12 companies among the over 330 studied that received a triple A rating, representing A scores in climate change, forests and water security.
“CDP is a gold standard for transparency and disclosures. It is holistic and requires concrete actions, governance and integration of sustainability in different functions,” said Krishna Manda, vice president of corporate sustainability at Lenzing. “Every year CDP improves its survey criteria to advance the transparency and disclosure to stakeholders so that they can make fact-based decisions. Therefore, it is a real challenge to achieve AAA for CDP for climate, water and forestry consistently. However, this challenge is worth taking as its framework can help continuously improve Lenzing’s journey towards embedding sustainability. It shows Lenzing’s current status as well as its commitment to transparency. We are honored to receive an AAA rating, for two years in a row, from an independent and credible organization like CDP, which underscores our holistic approach and progress.”
As a wood-based fiber maker, responsible forestry is imperative for Lenzing. All wood is procured from certified sustainable sources, such as those under PEFC or FSC, and wood doesn’t go to waste. At the biorefinery, Lenzing produces not only wood pulp for fibers, but also bioenergy and products like acetic acid for food.
In water, Lenzing has created spun-dyed fibers including TENCEL™ Modal black fibers with Eco color technology and TENCEL™ Modal with Indigo Color technology. Both of these innovations dye the fibers while they are in their liquid form, drastically lowering the water used in the dyeing process compared to conventional dyeing methods.
Lenzing set science-based targets in 2019 to halve its carbon emissions across Scopes 1, 2 and 3 by 2030. The company is also aiming to be carbon neutral by 2050, through a three-step plan that involves reducing, engaging and offsetting.
Capturing data is different depending on scope. For direct Scope 1 emissions, Lenzing can measure its own output. Scope 2 covers energy and heat bought by Lenzing, and data is gleaned from authoritative third-party sources or energy supplier data. Further out, Scope 3 includes emissions from all partners up and down the supply chain, so carbon information comes from supplier data and independent third-party databases.
Like most companies, the bulk of Lenzing’s total carbon impact comes from Scope 3, making this reporting and transparency important. “This is an area where every company needs to improve with primary data,” said Manda. “Thus, we continuously engage with our most relevant suppliers to support their emissions reduction ambitions and get up-to-date information.”
Lenzing published its first sustainability report in 2008. Transparency is crucial not only to prove progress, but also to create more momentum.
“Measurement and reporting are important for improving the company and support the decisions of its stakeholders,” said Manda. “First, data is required to advance sustainability, as we cannot manage which is not being measured. Second, stakeholders such as investors and customers need support in making business decisions that align with sustainability, whether to invest in a company or have a business relationship with it.
“As we make our impact and approach to mitigation and value creation visible, we can attract long-term partners who believe in our company’s approach and journey,” he added. “With this support only, we can make further progress since sustainability needs investment and orchestrating change in organizations and value chains.”