Lenzing

Corporate Sustainability reports directly to the CEO, and an internal management-level ESG Committee has been formed to advance the sustainability agenda. The Management Board steers strategic direction and oversees the implementation of policies and procedures to manage material impacts, risks and opportunities, with each member holding a defined area of responsibility. The Supervisory Board exercises an additional control function. Both boards were involved in the double materiality process and reviewed its results. CEO Rohit Aggarwal is responsible for sustainability on the Management Board. The Management Board and Supervisory Board access sustainability expertise through the Corporate Sustainability department, which serves as a competence centre supported by experts from other departments across all relevant fields such as renewable raw materials, climate and energy, circular economy, biodiversity and water management. In 2024, leadership bodies comprised 18 members, of whom 11 percent were women, and 100 percent of the Supervisory Board was independent. Reference: Governance der Nachhaltigkeit.

Lenzing operates two ESG Committees. A Management Board ESG Committee, chaired by the CEO and comprising board members and function heads, meets quarterly to formulate and implement an ESG vision, strategy and criteria, review progress on sustainability goals and assess management effectiveness including risks and opportunities. Corporate Sustainability leads and is an integral part of this committee. In 2023 the Supervisory Board established its own ESG Committee, which meets at least twice a year to oversee ESG topics relating to strategy, sustainable business success and transformation and to support the board, the Audit Committee and the Strategy, Growth and Innovation Committee. In these meetings members are informed by the Vice President Corporate Sustainability about material impacts, risks and opportunities. In 2024 the committees addressed topics including customer engagement, updated sustainability targets, ESG strategy and governance, the FSLM, equity, diversity and inclusion, life-cycle assessment, biodiversity, industry ratings such as CDP, ESRS/CSRD reporting, double materiality and the EU Taxonomy approach. Reference: ESG Committees.

Lenzing AG's remuneration policy links the Management Board's performance-based pay not only to financial criteria but also to non-financial sustainability (ESG) criteria that further the sustainability strategy. The Long-Term Incentive (LTI), a variable performance bonus, was supplemented with sustainability targets for board members. The share of variable remuneration dependent on sustainability-related targets or impacts is 6 to 10 percent for the CEO and 4 to 7 percent for an ordinary member; board remuneration is approved and adjusted by the Supervisory Board's Remuneration Committee. LTI targets across three-year tranches include ZDHC Lyocell wastewater goals, a 20 percent reduction of wastewater emissions (COD) by 2024 versus a 2014 baseline, science-based GHG reduction targets (40 percent by 2024 and 45 percent by 2026 per tonne of fibre and pulp), and equity, diversity and inclusion targets. In 2024 one board member was entitled to remuneration tied to a climate-related target, amounting to 2.3 percent of that member's total remuneration based on the 2022 tranche. Reference: An die Nachhaltigkeitsleistung gekoppelte Vorstandsvergütung.

Lenzing provides a statement mapping the core elements of due diligence to the relevant sections of the sustainability statement. Embedding due diligence in governance, strategy and business model is covered in the ESRS 2 general disclosures (GOV-2, GOV-3, SBM-3) and in the E1, E4, S1, S2 and S4 chapters. Engaging affected stakeholders in all key steps is addressed through GOV-2, Partnerships for Systemic Change (SBM-2), the S1, S2 and S4 SBM-2 sections, the double materiality analysis (IRO-1) and stakeholder engagement in each material thematic chapter (E1 to E5, S1, S2, S3, G1) and company-specific chapter. Identifying and assessing negative impacts on people and the environment is covered by IRO-1 and SBM-3. Actions to address negative impacts appear in the thematic chapters (E1 to E5, S1, S2, S4, G1) and the transparency chapter, including the climate transition plan (E1-1), biodiversity strategy development (E4-1) and procurement (G1-2). Tracking effectiveness is reported through metrics and targets in each material chapter. Reference: Erklärung zur Sorgfaltspflicht.

Corporate Sustainability and Corporate Communications are jointly responsible for sustainability reporting. Lenzing is working on a formal sustainability reporting document that will also cover internal controls. Sustainability reporting carries the risk of misstatement due to human error or incomplete data, and Lenzing has introduced controls to minimise this: the project core team reviews reporting requirements; Corporate Sustainability experts review their thematic chapters, cross-check against other chapters and proofread German and English versions under a four-eyes principle; the Management Board ESG Committee reviews and approves key content for publication; the Supervisory Board ESG Committee reviews the final draft and recommends approval to the Audit Committee; and Lenzing's external audit provides limited assurance. The Enterprise Risk Management (ERM) system takes a holistic approach that includes sustainability reporting, uses Monte Carlo simulation and follows the COSO framework combining top-down and bottom-up methods, with TCFD-aligned climate risk assessment. Semi-annual risk interviews are conducted, and results are reported twice yearly to the Management Board and the Audit Committee. Reference: Risikomanagement und interne Kontrollen der Nachhaltigkeitsberichterstattung.

Lenzing Group produces fibres from the renewable raw material wood grown in sustainably managed forests and plantations, belongs to the chemical industry and serves the fibre market with regenerated cellulose fibres used mainly for apparel, home textiles, technical textiles and hygiene products. Its product portfolio ranges from dissolving wood pulp as base raw material through specialty fibres to energy and bio-based biorefinery and co-products; the key ESRS product groups are regenerated cellulose fibres and dissolving wood pulp. Pulp production at Lenzing (Austria), Paskov (Czechia) and Indianopolis (Brazil) uses a biorefinery concept with full utilisation of wood, and the group masters three fibre technologies: viscose, modal and lyocell. Key raw materials are wood, process chemicals, water and energy. In 2024 revenue was EUR 2,663.9 million, total fibre sales volume was 962,000 tonnes and the group employed 8,228 people. The upstream value chain covers forestry and the chemical industry, and the downstream chain covers textile and nonwoven processing through to end of life. The sustainability strategy Naturally Positive is anchored in the Better Growth strategy. Reference: Strategie.

Lenzing maintains continuous year-round dialogue with its stakeholders, viewing them as strategic partners with significant interest in and influence over the areas the company cares about. Its most important stakeholders are people and companies potentially affected by, or able to support, Lenzing's business activities and strategic goals, with the workforce a particularly important group. Alongside Corporate Sustainability, the Management Board and function managers shape the proactive dialogue, which takes place through meetings, working groups, surveys and conferences. Key topics in 2024 included energy security and reducing fossil fuel dependence, climate change and science-based targets, equity, diversity and inclusion, responsible procurement and supply chain due diligence, EU regulations such as the Taxonomy and CSRD, ESG risks, governance, the Net Benefit approach, circular economy and traceability. The Supervisory Board and Management Board are partly informed of affected stakeholders' views; the workforce's views are communicated via the works council and the work climate survey, while consumers' views are gathered indirectly through customers. The views and interests of value chain workers are not actively communicated to group management. Reference: Partnerschaften für den systemischen Wandel.

Lenzing presents its material impacts, risks and opportunities in a detailed table covering the material topics E1, E2, E3, E4, E5, S1, S2, S4 and G1, distinguishing actual and potential impacts, own operations and upstream or downstream value chain, short, medium and long time horizons, and linking each to related policies and targets. For E1 Climate Change, examples include the risk to operations and supply chain from increasing chronic physical climate hazards, the risk of wood scarcity from non-resilient forests, opportunities from higher demand for low-emission products, positive impacts of sustainable wood sourcing on carbon sinks, and risks of rising carbon costs from new regulation. Following the preliminary materiality analysis, the Naturally Positive strategy was adjusted to reflect the new material topics, and Net Benefit products were developed in response to the identified impacts, risks and opportunities. Current financial effects relate mainly to Net Benefit specialty product revenues, climate-related investments, asset impairment testing and biological asset valuation. Digitalisation and cybersecurity are no longer material under ESRS. Reference: Wesentliche Auswirkungen, Risiken und Chancen.

Lenzing first conducted a double materiality analysis in 2021 and carried out a new analysis in 2024, expanding scope and adding topics to align with ESRS. The three-phase process (research, assessment, material topics) started from a longlist and assessed impacts, risks and opportunities across 94 ESRS sub-topics plus two additional sustainability topics, considering both impacts of the company on ESG matters and their effects on the company. Information sources included internal data such as the 2021 analysis and internal expert knowledge, an annual context analysis at production sites, life-cycle assessment at product level, water risk analysis using the WRI Aqueduct and WWF Water Risk Filter tools, and external sources such as scientific papers, NGOs and industry reports. Impact severity was scored on scale, scope, remediability and likelihood (0 to 5), with defined thresholds (for example 3.7) determining materiality. Risks and opportunities were scored for financial magnitude and likelihood, supported by a Lenzing risk expert. Results were validated in two workshop days and reviewed by the Supervisory Board and Management Board. TCFD climate and TNFD nature risk assessments feed the process. Reference: Doppelte Wesentlichkeitsanalyse.

Lenzing provides an ESRS index and a table of EU data points from other EU legislation, stating that the disclosed material information is based on the material impacts, risks and opportunities identified in its double materiality analysis, with materiality assessed at both the disclosure requirement and data point level while considering stakeholder decision-making needs. The ESRS 2 general disclosures index maps all cross-cutting requirements to sections of the statement: BP-1 and BP-2 to Über die Nachhaltigkeitserklärung, GOV-1 to Governance der Nachhaltigkeit, GOV-2 to ESG Committees, GOV-3 to An die Nachhaltigkeitsleistung gekoppelte Vorstandsvergütung, GOV-4 to Erklärung zur Sorgfaltspflicht, GOV-5 to Risikomanagement und interne Kontrollen, SBM-1 to Strategie, SBM-2 to Partnerschaften für den systemischen Wandel, SBM-3 to Wesentliche Auswirkungen, Risiken und Chancen, and IRO-1 to Doppelte Wesentlichkeitsanalyse. The index continues with the topical standards E1 to E5, S1, S2, S4 and G1. S3 Affected Communities is not included as it was not assessed as material. Reference: ESRS-Index.

Lenzing's climate action plan (Klimaaktionsplan) forms part of its long-term business strategy and has been approved by the Management Board. It is anchored in the Paris Agreement (1.5 degrees C goal) and UN SDG 13, and commits the group to science-based targets: cutting absolute Scope 1 and 2 GHG emissions by 42 percent and absolute Scope 3 emissions by 25 percent by 2030 (base year 2021), and reaching net zero (at least 90 percent reduction across Scopes 1, 2 and 3) by 2050. Decarbonisation levers include continuous improvement, fuel switching to low-carbon fuels, renewable electricity, electrification and new technologies, supplier engagement and logistics. Investments since 2021 include around EUR 20 million for the coal-to-gas conversion at the Nanjing viscose plant (China), a 43 MW biomass power plant for the Heiligenkreuz lyocell site (Austria), and a new sulphur recovery unit in Purwakarta (Indonesia). Lenzing states it is currently working to substantiate the plan and meet the formal ESRS and CSDDD transition plan requirements by 2026. The group is not excluded from the Paris-aligned EU benchmarks. Reference: Strategie.

Lenzing's policies address both climate change mitigation and adaptation, serving as a framework of general objectives and management principles for decision-making. The Sustainability Policy (2019) sets the direction for continuous improvement of sustainability performance, resource efficiency and decarbonisation across the value chain. The Safety, Health and Environment (SHE) Policy commits Lenzing to protect the environment by minimising emissions and waste and using resources more efficiently. The Environmental Policy and Standard outlines a group-wide approach to each material environmental topic and supports the climate goals by improving energy efficiency and reducing energy consumption at all sites. The Bioenergy Policy (approved 2023 by the CPO and CSO) guides sourcing of biomass for energy exclusively from uncontroversial sources and avoids biomass from agricultural feedstocks with high deforestation risk. The Wood and Pulp Policy and the Global Supplier Code of Conduct round out the set, the latter requiring suppliers to use natural resources responsibly and reduce electricity use and GHG emissions. The policies are implemented through the climate action plan and subsequent actions. Reference: Policies.

Lenzing's key 2024 actions are organised by decarbonisation lever. Under continuous improvement, replacement of the gas boiler at Mobile (USA) began, expected to avoid around 8,000 tonnes of Scope 1 CO2 annually once completed in 2025. Under fuel switching, a new natural gas pipeline, boiler and turbine were installed and commissioned at Nanjing (China), replacing coal-based steam; full conversion to gas by 2027 is expected to cut around 100,000 tonnes versus 2021. Indianopolis (Brazil) started a switch from heavy fuel oil to natural gas (LNG from 2026), expected to reduce Scope 1 by around 38,000 tonnes. The 43 MW biomass power plant at Heiligenkreuz (Austria) ran for its first full year, expected to save around 50,000 tonnes of Scope 1 annually by 2025. Sourcing renewable electricity at six sites cut around 400,000 tonnes. Supplier engagement to source low-carbon caustic soda saved around 95,000 tonnes across the value chain. Sustainable bulk-carrier shipping from Brazil avoided 23,000 tonnes in 2024. Reference: Maßnahmen.

Lenzing's short-term science-based target is to reduce absolute Scope 1 and 2 GHG emissions by 42 percent and absolute Scope 3 emissions by 25 percent by 2030 (base year 2021), and its long-term net-zero SBT is at least a 90 percent absolute reduction across Scopes 1, 2 and 3 by 2050 (base year 2021); both are rated on track. Lenzing first set SBTs in 2019, updated them in 2023 to align with 1.5 degrees C, and had them validated by the SBTi in early 2024. The updated targets use the Absolute Contraction Approach and cover all GHGs. The Scope 3 target covers categories 1, 3, 4 and 9 (excluding category 15) and around 97 percent of the reported Scope 3 inventory; Scope 2 uses a market-based method. The base year is 2021 because 2020 was distorted by COVID-19. A prior short-term intensity target (50 percent reduction per tonne sold by 2030, base year 2017) remains relevant for remuneration and corporate targets. Reference: Kennzahlen und Ziele.

Total energy consumption rose to 16.63 million MWh in 2024 (16.37 in 2023, 9.67 in 2022), driven by higher pulp and fibre production. Fossil energy consumption totalled 5.46 million MWh, or 32.80 percent of the total (30.84 percent in 2023, 47.30 percent in 2022), comprising coal and coal products (1.89), crude oil and petroleum products (0.37), natural gas (1.60), other fossil sources (0.44) and purchased fossil electricity, heat, steam and cooling (1.16). Nuclear consumption was 0.00. Renewable energy consumption totalled 11.16 million MWh, or 67.20 percent of the total (69.16 percent in 2023), of which fuel consumption from renewable sources including biomass was 10.14 and purchased renewable electricity, heat, steam and cooling was 1.02. Energy intensity from activities in high climate impact sectors was 0.0063 million MWh per EUR in 2024 (0.0065 in 2023). Fuels used vary by site, with coal predominant at the Asian sites Nanjing and Purwakarta. Reference: Energie und Brennstoffe.

In 2024, gross Scope 1 GHG emissions were 1.28 million tonnes CO2e (1.24 in base year 2021), with 15 percent from regulated emissions trading schemes. Market-based gross Scope 2 emissions were 0.40 million tonnes (location-based 0.80). Combined market-based Scope 1 and 2 emissions were 1.69 million tonnes, up 11 percent year on year, driven mainly by higher pulp and fibre production. Gross Scope 3 emissions were 1.54 million tonnes (also up 11 percent), led by purchased goods and services (C1) at 0.92, fuel and energy activities (C3) at 0.25, upstream transport (C4) at 0.14, downstream transport (C9) at 0.19 and investments (C15) at 0.04. Total market-based GHG emissions were 3.23 million tonnes in 2024 (3.65 in base year 2021). Total biogenic Scope 1 CO2 emissions were 3.29 million tonnes. GHG accounting follows the GHG Protocol using IPCC AR5 100-year GWPs. Specific Scope 1, 2 and 3 emissions per tonne of fibre and pulp sold rose slightly to 2.14 t CO2e per tonne. Reference: Lenzings Treibhausgas-Emissionen.

Since 2021 Lenzing has applied an internal carbon price (ICP) of EUR 75 per tonne of CO2 within its strategic investment planning process. The ICP is added to regulatory CO2 prices and applied uniformly across all Lenzing sites to Scope 1 and Scope 2 CO2 emissions. It is used as a shadow price (a virtual cash outflow) for future CapEx projects above EUR 2 million, with two business cases calculated, one with and one without the ICP. The adjusted internal rate of return (IRR) including the ICP is used to prioritise projects. The purpose of the ICP is to mitigate future carbon risks, promote the preference for renewable over fossil fuels, and encourage energy efficiency projects. The carbon price is derived from benchmark comparisons with competitors and a theoretical carbon price of 50 to 100 USD per tonne CO2 (from the High-Level Commission on Carbon Pricing and Competitiveness), aligned with the 1.5 degrees C goal. The ICP affects the adjusted IRR project ranking criterion and is not used for margins or returns. Reference: Interner Kohlenstoffpreis.

Lenzing reports several pollution-related policies. The Group Environmental Policy and Standard, introduced in 2023 and approved by the CTO, underpins the environmental management system and long-term targets; all production sites are ISO 14001 certified and must comply with the standard by 2025 at the latest, reflecting industry best practice and best-available-technique (EU-BAT) emission limits. The Safety, Health and Environment (SHE) Policy, approved by group management in 2022 and applicable group-wide, commits Lenzing to reducing emissions, waste and pollution, developing a safety culture, and complying with national law. A group-wide Chemical Management Standard, approved by the VP Global HSE in 2023, covers chemical inventories, hazard and exposure assessment, and emergency preparedness, and addresses avoidance of hazardous chemicals including SoCs and SVHCs. A Water Policy targets reduction of water-related emissions beyond legal requirements. The overarching Sustainability Policy addresses the ecological footprint of Lenzing and its value chain. Lenzing states it has no policies covering value-chain aspects of SoC/SVHC accidents or microfibre pollution, having set priorities and working stepwise. The VP Global HSE holds top responsibility. Reference: Policies.

Lenzing describes actions to reduce pollution. Since 2021, a EUR 100 million modernisation project at Purwakarta (Indonesia) added a new sulphur recovery plant (CAP), operational from July 2023, significantly cutting air sulphur emissions, plus a completed wastewater treatment plant upgrade fully operational from early 2024, reducing COD and sulphate effluent. Construction began on a new wastewater treatment plant at Grimsby (UK), where Lenzing invested EUR 24 million; commissioning started in 2024 with biomass cultivation from January 2025, and once fully operational the plant will cut water emissions by 65 to 80 percent. A wastewater plant upgrade at Mobile (USA) completed its construction phase, operational since May 2024. At Lenzing (Austria), Paskov (Czech Republic) and Indianopolis (Brazil), organic compounds are extracted early in the biorefinery process to lower COD. Lenzing pursues ZDHC Supplier-to-Zero, with Prachinburi and Heiligenkreuz reaching aspirational status, conducts Higg FEM self-assessments at all sites with third-party review at three sites, and runs an ISO 14001 environmental management system. Reference: Maßnahmen.

Lenzing has set voluntary group-level pollution targets using 2014 as the base year, aligned with EU Ecolabel performance tiers and EU best-available techniques (EU-BAT). The Air Emissions target, a 50 percent reduction in specific sulphur emissions by 2023, was achieved, with the Purwakarta CAP contributing; a 75 percent reduction in specific air sulphur emissions versus 2014 was reached in 2024. The Wastewater target, a 20 percent reduction in specific COD emissions by 2024, was delayed, as full-year operation of the Grimsby plant is required. The ZDHC Viscose target (aspirational status for MMCF wastewater and air emissions guidelines by 2026) is on track, and the ZDHC Lyocell target (aspirational status by 2028, relevant to the Management Board long-term incentive) is on track, with Grimsby's foundational milestone shifted from 2025 to 2026. The FEM target, implementing and annually updating the Facility Environmental Module across all pulp and fibre sites and sharing verified modules with customers from 2024, is on track and reclassified as continuous. The target-setting process is led by Corporate Sustainability with HSE, Operations, Commercial teams and the Management Board. Reference: Kennzahlen und Ziele.

Lenzing reports significant air and water emissions from its pulp, viscose, modal and lyocell sites; there are no material emissions to soil, and the Group neither generates nor uses microplastics. Emissions are disclosed as PRTR pollutants plus voluntary figures for sulphur to air and amines and sulphate to water. Absolute air emissions in 2024 (tonnes): sulphur (CS2 and H2S as elemental sulphur) 8,427 (down from 18,798 in 2023); SO2 2,535; NOx 3,351; and particulate matter (PM10) 135, reported for the first time. Absolute sulphur emissions more than halved year on year, mainly due to the second Purwakarta CAP. SO2 rose in absolute terms owing to higher production and energy generation, while NOx rose due to more biomass energy and pulp output, including the new Heiligenkreuz biomass plant. Absolute water emissions after treatment in 2024 (tonnes): COD 5,626 (target scope) or 6,230 (full scope); sulphate (SO4) 189,298; amines 183; total nitrogen 138; total phosphorus 100; chlorides 8,234; AOX 24. Reference: Luft- und Wasserverschmutzung.

Lenzing reports on substances of concern (SoCs) and substances of very high concern (SVHCs) using the ESRS Annex II definition, which references hazard classes and categories under Regulation (EC) No 1272/2008 (CLP). Chemicals containing SoCs and SVHCs are identified by mapping hazard classes in the production chemical inventories of all Lenzing sites, and quantities in mixtures are calculated from the supplier safety data sheet percentages. The total number of SoCs is the absolute figure regardless of whether a substance falls into multiple hazard classes. Total SoCs amount to 127,391 tonnes input and 8,769 tonnes output, broken down by hazard class including skin sensitisation category 1 (H317), respiratory sensitisation category 1 (H334), reproductive toxicity category 2 (H361fd), specific target organ toxicity repeated exposure category 1 (H372), aquatic chronic hazards (H410/H411) and persistent, bioaccumulative and toxic or very persistent, very bioaccumulative properties (EUH440/EUH441). SVHCs comprise 0.005 tonnes for respiratory sensitisation (Article 57f) and 2.192 tonnes for PBT/vPvB properties, for both input and output. Input covers only chemicals used in pulp or fibre production. Reference: Besorgniserregende Stoffe und besonders besorgniserregende Stoffe.

Lenzing's Water Policy, approved by the Management Board and published in 2022, is available on the company website. It recognises that pulp and fibre production involve water withdrawal from and emissions to water bodies, creating dependencies on and potential impacts on water availability and quality in the regions of its production sites. Lenzing actively manages and assesses water use in its own operations and its products, following a group-wide performance standard applicable to all production sites and based on industry best practices such as EU-BAT and ZDHC, which is regularly reviewed and updated. Compliance is ensured through regular audits within the global environmental management process under ISO 14001. The policy is summarised in five key elements: orienting to best practice and ensuring availability and sustainable management of water and sanitation for all (SDG 6); engaging value-chain partners and stakeholders; monitoring, controlling and reporting direct and indirect interactions with water resources; optimising water-use performance and product water footprint; and continuously reducing water consumption and water-related emissions beyond legal requirements. The VP Global HSE holds overall responsibility, with site managers and HSE managers responsible locally. Reference: Policies.

Lenzing describes actions for responsible water management. Global water-related assessment tools, namely the WRI Aqueduct Water Risk Atlas and the WWF Water Risk Filter, are integrated into risk management to assess current water situations, identify areas of water risk including high water stress, and model future climate scenarios; this is a continuous annual process carried out again in the reporting year. Life cycle assessment (LCA) is the key tool for assessing the water footprint of fibre products and raw materials, identifying improvement areas such as pulp production, supported by increasing collection of primary water-use data from pulp and chemical suppliers. Efficiency and improvement measures include the completed installation of an additional reverse osmosis plant at the Lyocell mill in Lenzing (Austria) by the end of 2024, which recovers water and reduces water needed for NMMO recovery. Higg FEM self-assessments were conducted at all production sites, with independent verification at Prachinburi (Thailand), Nanjing (China) and Purwakarta (Indonesia). Lenzing has not taken action on downstream value-chain impacts, having set priorities and working stepwise. Reference: Maßnahmen.

Lenzing's water target is the FEM target: implementing and annually updating the Higg Facility Environmental Module across all pulp and fibre production sites and sharing verified modules with customers from 2024. The target is on track and its overall target year was reclassified as continuous because it is an ongoing measure. In 2024 Lenzing continued the Higg FEM assessment; following Cascale's November 2023 release of Higg FEM 4.0, self-assessments were completed for all sites, and three sites in Thailand, China and Indonesia were verified with an end score of around 90, while Indianopolis (Brazil) verification was deferred from 2024 to 2025. The FEM target was first set in 2017 (base year) with zero verified sites, and each site sets individual water targets. It aligns with the Water Policy by providing monitoring mechanisms for continuous evaluation and improvement of water-related metrics and addressing water consumption at facility level and operations in water-risk and water-stress areas. Water pollution targets are covered in the E2 chapter. The Group Environmental Management and Corporate Sustainability teams were involved in target setting. Reference: Kennzahlen und Ziele.

Lenzing reports water withdrawal, discharge and consumption, monitored under its ISO 14001 environmental management system based on continuous measurement. Total water withdrawal in 2024 was 125,792,211 m3 (up from 118,793,000 m3 in 2023), comprising surface water 101,429,595 m3, groundwater 14,226,523 m3 and third-party water 9,600,396 m3, all freshwater; 1,325,900 m3 was withdrawn in areas of water stress. Total water discharge was 112,271,349 m3, and total water consumption (the difference between discharge and withdrawal) was 13,520,862 m3, of which 635,726 m3 in water-stress areas. Withdrawal, discharge and consumption all rose in 2024 due to higher production output, though Prachinburi (Thailand), the only site in a water-stress area, stabilised operations and lowered its withdrawals and discharges. Recycled and reused water is disclosed for the first time at 471,484,218 m3, mainly from cooling water circuits and lyocell process water recycling, though several recycling streams and the Indonesian site are not yet included. Water intensity (consumption per net revenue) was 5,076 m3 per EUR million, up from 4,828 in 2023. Reference: Wasserverbrauch.

Lenzing describes how biodiversity is embedded in its strategy and business model, whose core dependency is wood as its main raw material, making forestry land use the principal source of impacts. Following the IPBES framework of five pressures on nature (land/water/sea-use change, resource exploitation, climate change, pollution, invasive species), Lenzing concentrates on wood and pulp sourcing, fibre production processes and end-of-life of products. To advance its biodiversity strategy, Lenzing joined the European Business Nature Commitment (EBNC) and the Corporate Engagement Program of Science Based Targets for Nature (SBTN) in 2023, both aiming to halt and reverse nature loss by 2030, and used the practical recommendations of the TNFD. Preliminary results of the strategy process are captured in a Biodiversity Approach and Action Plan, which addresses complex nature-related dependencies, impacts and opportunities and current and future legal requirements, guided by the Biodiversity Policy. Lenzing notes this document does not yet constitute a full biodiversity strategy under ESRS; targets and measures for the medium to long term still need to be defined. Reference: Strategieentwicklung.

Lenzing reports three policies addressing biodiversity and ecosystems: a Biodiversity Policy, a Wood and Pulp Policy and the Sustainability Policy. The new Biodiversity Policy was adopted in 2024 and approved by the Management Board, covering all material impacts, risks and opportunities in Lenzing's own operations and its upstream value chain, and applies to all consolidated subsidiaries and operating sites. It sets out principles based on frameworks such as the TNFD and SBTN, with the aim of turning Lenzing into a nature-positive company, committing to the Kunming-Montreal Global Biodiversity Framework and supporting the EU Green Deal and Clean Industrial Deal. It also addresses Lenzing's water footprint alongside the Water Policy and commits to avoiding invasive species and genetically modified organisms. The Wood and Pulp Policy, approved by the Board in 2022, commits Lenzing to source wood and pulp only from uncontroversial sources, backed by FSC and PEFC certification and due diligence; three suppliers were excluded in 2020, one in 2021 and none since 2022. The Sustainability Policy addresses negative impacts on climate change and biodiversity loss. All policies are available on the Lenzing website. Reference: Policies.

Lenzing structures its biodiversity actions along the SBTN AR3T framework (Avoid, Reduce, Restore, Regenerate, Transform); it supports several restoration and regeneration projects inside and outside its value chain but does not carry out biodiversity compensation measures. Under Avoid, due diligence through sustainable sourcing ensures wood and pulp come only from near-natural forests and plantations, with all wood and pulp FSC or PEFC certified or controlled and annual FSC chain-of-custody audits. Under Reduce, circular-economy approaches and climate targets aim to consume fewer natural resources and minimise emissions and pollution, including cascading use of wood so it is 100 percent utilised, and REFIBRA recycling of cellulosic textiles. Under Restore, Regenerate and Transform, Lenzing undertakes conservation, afforestation and reforestation, including conservation areas within LD Celulose's plantations in Brazil, restoration of moors in the Ausseerland (Austria), and projects in Albania, the DR Congo, Burundi, Tanzania, China and the USA. Responsible functions include a Fibre Pulp Board member and Senior Director Purchasing Wood. Reference: Maßnahmen.

Lenzing reports three biodiversity targets under the heading Nature Conservation, mapped across the AR3T mitigation hierarchy and all linked to the Biodiversity Policy. The Nature Conservation Project Albania target, first set in 2017 (baseline zero), covered afforesting 20 ha of degraded land combined with a social-impact project and a vocational training centre by 2024; it was achieved and has since expanded across the Western Balkans (Kosovo, North Macedonia, Montenegro). The Nature Conservation Area Brazil target, first set in 2020 (baseline 13,000 ha), aims to increase the conservation area at the Indianopolis pulp site; the original 15,000 ha goal was reached in 2022 and total protected area exceeded 20,000 ha in 2024, so the target was raised to 20,000 ha by 2030. The Nature Conservation Projects target aims to expand engagement in forest preservation, biodiversity protection and afforestation in regions with endangered forests by 2025 and is on track, though not linked to a quantitative metric. Lenzing states no ecological thresholds or offsets were applied and a new biodiversity strategy is under development. Reference: Lenzings Biodiversitäts-Ziele.

Lenzing reports impact metrics for the LD Celulose plantations in Indianopolis, Brazil, its most important direct land-use area, with these figures not externally validated except by the auditor. Total area was 93,908 ha in 2024 (up from 90,200 ha in 2023), of which forest/plantation area was 66,540 ha, conservation area 22,980 ha (up 16 percent, 24 percent of total) and FSC area 48,155 ha. The land was converted to agriculture decades ago; tree species are mainly eucalyptus and no genetically modified organisms are used. In 2024 no primary forests, secondary forests, savannahs, grasslands or natural freshwater ecosystems were converted, though 55 ha of degraded former farmland became forest plantations. The conservation area includes a High Conservation Value Area protecting the endemic frog Pseudopaludicola facureae found only in this region of Minas Gerais. Flora and fauna monitoring covers the whole plantation once or twice a year; the plantation hosts about 200 plant and 450 animal species, including the maned wolf and giant anteater, and no significant species decline has been recorded since monitoring began. Reference: Kennzahlen zur Verbesserung der biologischen Vielfalt.

Lenzing reports policies on resource use and circular economy: the Sustainability Policy, the Safety, Health and Environment (SHE) Policy, the Environmental Policy and Standard, the Group Waste Management Guideline and the Wood and Pulp Policy. Together these mark a transition from new, fossil resources toward the greatest possible use of renewable, recovered and recycled resources, and commit Lenzing to resource-efficient technologies and products that optimise use of all raw materials and effectively recover chemicals, water and energy. The Sustainability Policy addresses the negative impacts on circular economy and recycling from material blends in the downstream value chain and on greenhouse gas emissions from energy-intensive recycling. The Wood and Pulp Policy addresses the positive emissions impact of introducing circular-economy practices, including use of the renewable raw material wood, requiring FSC and PEFC certification. The Group Waste Management Guideline, introduced in 2018 and updated in 2021 and 2022, aligns and improves waste management across all production sites, with the VP Global HSE responsible overall; it targets the negative environmental impact when textile-industry waste is improperly disposed of, following waste-management principles to reduce waste as far as possible. Reference: Policies.

Lenzing pursues its circular-economy vision through three core practices integrated into its business model: natural cycles, resource-efficient products and technologies, and development of commercial recycling technologies. Under natural cycles, wood is fully converted into high-value products and bioenergy, and LENZING Lyocell, Modal and Viscose standard fibres are TUV-certified as biodegradable and compostable, closing the biological loop. Under resource-efficient products and technologies, the biorefineries operate energy-autonomously, recovering solvents and chemicals at high rates; the closed-loop Lyocell process recovers 99.8 percent of its organic solvent. Under commercial recycling technologies, Lenzing operates both chemical and mechanical recycling: pulp from chemically recycled cotton textiles is combined with wood pulp via REFIBRA technology, and ECOVERO viscose made with REFIBRA contains at least 20 percent recycled content, certified to the Recycled Claim Standard. Lenzing also promotes circular design through a designer guide published with Sodra in 2024 and participates in partnerships and EU Horizon Europe projects (CISUTAC, ESCIB, CELLFIL). For downstream improper textile waste disposal, Lenzing states it has not yet taken action but has set priorities and is working stepwise. Reference: Maßnahmen.

Lenzing reports two voluntary targets, both first set in 2020 (baseline year) and aligned with the Better Growth strategy. The Textile Recycling target aims to increase the share and types of alternative raw materials, for example through recycled textile waste or agricultural waste, by 2030 and is on track; its measures include raising the recycled content in viscose and lyocell fibres from 20 percent to at least 30 percent from post-consumer textiles at commercial scale by 2030, and innovating with at least five alternative raw-material suppliers by 2030. This target replaced the original 2025 goal of offering staple fibres with up to 50 percent recycled content, which was reformulated with a five-year-extended timeframe due to a difficult market environment, price pressure, weak demand and the large investment needed. The Circular Economy target aims to implement a new circular business model by closing loops for post-consumer textiles and collaborating with 15 key supply-chain companies by 2025 (reduced from 25) and is on track. Lenzing has set no target for the negative impact of improperly disposed textile-industry waste but complies with applicable laws. Reference: Kennzahlen und Ziele.

Lenzing reports its main resource inflows as wood, pulp, chemicals, fuels and water; no critical raw materials or rare earths under the EU Critical Raw Materials Act are used. For confidentiality reasons no exact absolute weights or volumes of individual materials are disclosed. The total weight of technical and biological materials used in 2024 was 4.85 million tonnes. Sustainably sourced biological materials (wood and pulp) accounted for 72 percent of the total weight and are FSC and PEFC certified. Reused or recycled secondary components, products and materials totalled 2.33 million tonnes, representing 48 percent of the total, reflecting high recovery of chemicals and solvents; NMMO in Lyocell production is recovered at 99.8 percent, and carbon disulphide and other viscose/modal chemicals are recovered and returned or converted into the marketable co-product sodium sulphate. Data are collected from all production sites based on direct measurements of raw-material input (purchased quantity adjusted for stored quantity) and are not externally verified except by the auditor. Key chemicals (about 85 percent of procurement volume) include carbon disulphide, NMMO, caustic soda, sulphuric acid, sulphur, sulphur dioxide, titanium dioxide and zinc sulphate. Reference: Ressourcenzuflüsse.

Lenzing reports its main product outflows as regenerated cellulose fibres (Lyocell, Modal and Viscose) used in apparel, home textiles, personal care and hygiene products, alongside pulp, biorefinery products and co-products sold to other industries such as LENZING acetic acid Biobased, furfural Biobased, xylose, soda and magnesium lignosulphonate. Net-benefit products offer ecological and social advantages; TENCEL Lyocell and Modal and ECOVERO fibres are EU Ecolabel certified, and in 2024 TENCEL Lyocell, VEOCEL Viscose and VEOCEL Lyocell were certified by Climate Partner. On durability, repairability and recyclability, Lenzing notes fibre durability is strongly shaped by downstream textile processing, so an industry-average comparison would not yield meaningful insights. Because regenerated cellulose fibres can be technically recycled into new regenerated cellulose fibres, they are 100 percent recyclable; the recycling rate for product packaging is about 90 percent, an estimate for the group based on the Austrian Lenzing site. Reference: Ressourcenabflüsse.

Lenzing reports its waste outflows in Table 46, based on direct measurements (weighing) aggregated annually across production sites, with quantities validated by national authorities and by licensed disposal contractors. Total waste fell to 163,983 tonnes in 2024 from 187,772 tonnes in 2023 (150,702 tonnes in 2022). Waste diverted from disposal was 129,153 tonnes, comprising hazardous waste not going to disposal of 29,838 tonnes (all recycled) and non-hazardous waste not going to disposal of 99,315 tonnes (all recycled). Waste directed to disposal was 34,830 tonnes, of which hazardous waste to disposal was 4,034 tonnes (2,842 tonnes hazardous-waste incineration, 102 tonnes hazardous landfill, 1,090 tonnes other) and non-hazardous waste to disposal was 30,796 tonnes (10,901 tonnes incineration, 18,996 tonnes landfill, 899 tonnes other). Total hazardous waste was 33,873 tonnes and the share of non-recycled waste was 21 percent (2023: 19 percent). On-site landfilling of 1,213 tonnes is excluded as it is not a resource outflow. Waste and hazardous-waste volumes both declined in 2024, aided by optimised operations at the new Indianopolis (Brazil) and Prachinburi (Thailand) sites. Reference: Ressourcenabflüsse.

Lenzing's own-workforce policies apply across the whole Group, are accessible to all employees via the intranet and are additionally sent by email. Core policies are the Policy on Human Rights and Labour Standards, the Policy on Equal Opportunity, Diversity and Inclusion (EDI), the SHE (Safety, Health, Environment) Policy, the Global Code of Conduct, the Life Saving Rules Directive, the Standard for Cleanliness and Hygiene, the Communication Policy, the Global Salary Administration Guideline, the Global Learning and Development Guideline, the Global Performance Management Guideline and the UK Modern Slavery Act Transparency Statement. The company supports the UDHR, the UN Global Compact, the OECD Guidelines and the ILO fundamental principles, prohibiting child labour and forced labour and protecting freedom of association, fair pay, safe workplaces and non-discrimination. The Senior Vice President Corporate Human Resources is responsible for implementing the human rights and EDI policies. During the reporting year there were no formal procedures to prevent, mitigate and combat discrimination, though Lenzing states it is developing such procedures. Reference: Policies.

Lenzing engages its workforce and their representatives through regular and varied communication to ensure understanding of strategy, targets, market conditions, the financial situation, policies and matters relating to contractual terms and benefits. Information is shared through channels including onboarding events, works assemblies, notice boards, internal emails and internal messages. In particular, half-yearly global works assemblies are held for all Group companies and employees to discuss globally relevant topics, alongside site-specific assemblies. Assemblies take place interactively via video chat, allowing employees to participate and put questions directly to speakers. Employees are informed of important updates or special events through press releases as they arise. The Lenzing Connect intranet provides ongoing information and workplace applications. The Senior Vice President Corporate Human Resources holds operational control and responsibility. The section also describes the works council and social dialogue, the Lenzing Climate Survey (based on the House of Health framework, postponed from Q4 2024 to Q1 2025 due to organisational changes) and the Employee Resource Groups Women@Lenzing, Multicultural@Lenzing and PrideAlliance@Lenzing. Reference: Kommunikation.

Lenzing's workforce can raise concerns and complaints through several channels: the whistleblower system (described in the G1 Corporate Governance chapter); the works councils at the two Austrian sites, Lenzing and Heiligenkreuz; trade unions and employee interest representatives at all sites except Prachinburi (Thailand); and the Global Child Labour Remediation Procedure. A mandatory eLearning course titled Our Whistleblower System supports understanding and use of these channels, and the Compliance team runs an integrity survey to gauge employee awareness of the whistleblower system. A Whistleblower Directive is in place, with further detail in the G1 Corporate Governance chapter. Lenzing states there is no formal remediation process; remediation is handled on a case-by-case basis. The only structured mechanism is the Global Child Labour Remediation Procedure, which provides guidance for each case of child labour at Lenzing and sets out remedial measures that managers can follow to safeguard the safety and rights of children and keep children's welfare paramount. Reference: Kanäle, um Bedenken zu äußern.

Lenzing links actions to its material impacts, risks and opportunities and allocates resources by topic and department, for example cross-functional collaboration for job security, Corporate Health Care and Global OHS for health and safety, and Corporate Human Resources for work-life balance and diversity and inclusion. On remediation, Lenzing provided support in line with local regulations and gave a voluntary donation to support the family of an employee following a fatal accident. Effectiveness is tracked through metrics including the Climate Survey, the recordable injury rate, the gender pay gap, turnover and workforce diversity. Actions cover learning and development (expanded and refined in 2024, continued global performance and talent management), equal opportunity, diversity and inclusion (three Employee Resource Groups and signing of the Women's Empowerment Principles), social audits (all sites took part in the FSLM/SLCP certification process in 2024), health and safety, communication, and work-life balance and benefits (flexible working, part-time and home working; life, health, pension and disability insurance and group bonuses at most sites). Reference: Maßnahmen.

Lenzing states that the metrics in the S1 Own Workforce chapter are not validated by any external body other than the auditor. For targets, the report refers to the Sustainability Targets set out in the management approach at the start of the chapter and to the ESRS 2 chapter for the full set of targets and the process for setting and monitoring them. Key own-workforce targets include the Social Standard target (a permanently valid, independently audited and accredited social standard certificate for every production site, with FSLM implementation and annual updating, on track and reset to continuous), the Equal Opportunity, Diversity and Inclusion target (training on diversity, discrimination, non-discrimination and human rights for 75 percent of the workforce by 2025; raising the share of women to 22.5 percent in all positions from grade 5 by 2025; and reaching an inclusion index of 75 percent in the global climate survey by 2026), and health targets. In January 2025 (base year) Lenzing set a Group target to reduce the employee accident rate (TRIFR per 200,000 hours) to 0.8 in 2025, from a baseline of 1.1, after the earlier 0.3 target was judged unrealistic. Reference: Kennzahlen und Ziele.

Figures relate to per-capita headcount as at 31 December 2024. Lenzing employed 8,228 people (2023: 8,340; 2022: 8,301), comprising 1,451 women and 6,777 men; the company cannot currently report a third gender category. By contract, 7,834 were permanent and 394 fixed-term (101 women, 293 men), with no employees on non-guaranteed hours. There were 7,690 full-time and 538 part-time employees. By country, Austria had 3,511, Brazil 1,236, Indonesia 1,342, the Czech Republic 541, China 816, the USA 212, the UK 225 and Thailand 269, with 76 in other countries. Most employees hold permanent contracts, typically after an initial six-month fixed-term period; only 2.8 percent of the workforce (including external staff) held a fixed-term contract beyond the usual six months. Lenzing had 253 apprentices (2023: 236; 2022: 188), of whom 58 were women and 195 men. Total departures were 888 (turnover rate 10.8 percent) and 768 new hires were recruited (9 percent). Reference: Beschäftigte in Zahlen.

Lenzing reports non-employee workers (Fremdarbeitskräfte) in its own operations. As at 31 December 2024 there were 149 non-employee workers, compared with 156 in 2023 and 261 in 2022. The figures relate to headcount at year-end and do not include self-employed workers, as these are not recorded in the HR system. The largest group of non-employee workers is leased personnel, hired indirectly through a temporary employment agency. Leased personnel are treated in the same way as Lenzing's own employees. A large proportion of leased staff work in the production (shift) area, as established when assessing the relevant job titles and job descriptions. Reference: [ESRS S1-7].

Lenzing marks collective bargaining and social dialogue as not material under ESRS but still discloses it (headed "nicht wesentlich nach ESRS"). The company adheres to local labour standards in all countries where it operates. Collective agreements cover 79.9 percent of the Group's global workforce (2023: 83.0 percent; 2022: 82.4 percent). For 99.6 percent of employees (2023: 99.6 percent; 2022: 99.5 percent), notice periods were governed by labour law or collective agreement. The report presents a coverage table showing collective bargaining coverage in the 80 to 100 percent band for Austria (EEA) and for Indonesia and Brazil (non-EEA regions), and workplace representation in the 80 to 100 percent band for Austria (EEA only). Further detail on Lenzing's social dialogue, including the local works councils at the two Austrian sites and trade union representatives at all sites except Prachinburi (Thailand), is provided in the communication section. Reference: Tarifverhandlungen und sozialer Dialog.

Lenzing defines employees in a leading function as persons with at least one direct report. In 2024 there were 912 such employees (2023: 915; 2022: 932), of whom 164 were women and 748 men, giving a share of 18 percent women and 82 percent men. By age, 3 percent were under 30, 66 percent aged 30 to 50 and 31 percent over 50. Category 1 (salaried staff with management responsibility) numbered 729 (20 percent women), Category 2 (workers with management responsibility) 181 (8 percent women) and Category 3 (leased personnel with management responsibility) 2. For the total workforce diversity characteristics (8,224 employees, excluding governance-body members other than works-council-appointed supervisory board members), 18 percent were women and 82 percent men, with 18 percent under 30, 61 percent aged 30 to 50 and 21 percent over 50. Reference: Diversitätskennzahlen.

Lenzing marks adequate wages as not material under ESRS but still discloses the disclosure (headed "nicht wesentlich nach ESRS"). After comparing employee salaries against the corresponding benchmarks, the company states that all Lenzing employees are adequately remunerated. The related Global Salary Administration Guideline, described under Policies, defines the administrative standards ensuring that base salaries are set at a level that is competitive, internally fair and performance-oriented, applying to all graded positions globally where consistent with national labour law. Reference: Angemessene Entlohnung.

Lenzing reports on social protection of its workforce against loss of income due to major life events. Coverage against income loss from significant life events, including sickness, unemployment (from the point at which a person begins working for Lenzing), work-related injuries, parental leave and retirement, is provided through the state programmes in each country in which Lenzing operates, with the exception of the USA, where there are no payments for sickness and parental leave. Reference: Soziale Absicherung.

Lenzing reports on employees with disabilities. In the reporting year the share of employees with disabilities was 2 percent (2023: 2 percent; 2022: 2 percent). The category of employees with disabilities is based on the legal definitions of disability in each country of operation. In total there were 88 employees with disabilities in the Lenzing Group (2023: 83; 2022: 82), including 52 in Austria, 9 in the Czech Republic, 1 in the USA, 2 in Indonesia and 24 in Brazil. At the Grimsby (UK) site no formal recording of employees with disabilities is carried out because national legislation provides no definition. Because employees in the USA are not required to disclose their disability status, the figure for Mobile (USA) is an estimate. Reference: Menschen mit Behinderungen.

In the reporting year, courses from Learn@Lenzing were completed around 83,784 times, giving a total training time of 48,968.71 hours and an average of six hours per employee. Average training time was seven hours for women and six hours for men. Total spending on lifelong learning and staff development rose to EUR 6.70 million in 2024, from EUR 5.76 million in 2023 and EUR 6.19 million in 2021, including Group-wide expenditure of the Lenzing Education Centre (BZL); the consolidated Group training expense was EUR 2.17 million in 2024 (2023: EUR 2.25 million; 2022: EUR 2.48 million). Lenzing's global learning and development catalogue offers over 220 courses, including more than 120 new eLearning courses; 5,234 catalogue courses were completed over 981 hours of use. During the performance management process, 91 percent of the target group (of 2,535 employees) defined goals in SuccessFactors, and talent data was captured for 80.4 percent of salaried staff. Reference: Lernen und Entwicklung.

Lenzing reports that its health and safety performance declined markedly in 2024, attributed to increased operational pressure and organisational restructuring. The company reported one tragic accident in 2024 that led to the death of an employee, who was fatally injured through contact with a hazardous substance. It also recorded one work accident with serious consequences, in which an employee became entangled in staple fibre tow and suffered a complicated fracture. 100 percent of employees, contractors' workers and contractors working on company premises are covered by the OHS management system, and all production sites are certified to ISO 45001. The employee accident rate (TRIFR per 200,000 hours) rose from 0.7 in 2023 to 1.1 in 2024, and the contractor rate from 0.5 to 0.6. Per 1,000,000 hours worked (15,763,108 employee hours), there was 1 fatality, 1 serious accident, 86 accidents and 312 accidents or illnesses. There were 1,618 lost days for employees and 338 for other workers, and no recordable occupational illnesses. Reference: Gesundheit und Sicherheit bei Lenzing.

Lenzing reports on family-related leave. 100 percent of Lenzing employees are entitled to paternity, maternity or parental leave, and 61 percent are entitled to carer's leave. Employees have no entitlement to carer's leave at the production sites in Indianopolis (Brazil), Prachinburi (Thailand) and Purwakarta (Indonesia) and at the offices in Turkey, China, India, Hong Kong, Singapore, Taiwan and the USA. In 2024, 11.97 percent of the workforce took family-related leave; of those taking such leave, 16 percent were women and 84 percent were men. The duration of parental leave depends on country-specific definitions in the applicable labour laws and can range from a few days to several months. In the reporting year 156 men and 68 women were on parental leave, of whom 153 men and 36 women returned in 2024, and 135 men and 48 women were still employed 12 months after their return. Reference: Arbeitsfreistellung aus familiären Gründen.

Lenzing reports both the total annual remuneration ratio and the gender pay gap. The ratio of annual total remuneration was 41 in 2024 (2023: 22); the calculation method was refined this year, with all components of the total remuneration ratio used in detail and in close cooperation with the business units, representing total remuneration before tax and including bonuses. The overall gender pay gap for the Lenzing Group, including all Lenzing companies, was 23.90, calculated using the method defined in the ESRS standard. The pay gap is expressed as a ratio where 0 is the ideal value (men and women paid equally for the same amount of work) and higher positive values indicate greater pay inequality, with women earning less than men. The report provides a detailed breakdown by category (workers and salaried staff, split into production, entry-level, experienced, clerical, leading employees, middle management and executive management) and by site, for example a Group figure of 23.84 across the summary column. Lenzing acknowledges room for improvement but considers itself on the right track. Reference: Geschlechtsspezifisches Verdienstgefälle.

Lenzing reports on complaints and human rights incidents. Through the Lenzing Group whistleblower system there were 65 complaints, plus 96 through the whistleblower system of the joint venture in Indianopolis (Brazil). No case of discrimination and no (serious) human rights violation within the meaning of ILO Convention 111 Article 1 was submitted, reported or registered within Lenzing's workforce in the reporting year. Accordingly, Lenzing received no penalties and paid no fines or damages in connection with such cases or incidents. Reference: Bedenken und Menschenrechtsverletzungen.

Lenzing reports five policies addressing its two material negative impacts on value chain workers, namely child labour and forced labour, which are widespread in textile manufacturing. The policies are the Human Rights and Labour Standards Policy, the Global Code of Conduct for Suppliers, the Global Code of Conduct, the Wood and Pulp Policy and the Sustainability Policy. The Human Rights and Labour Standards Policy applies to Lenzing's sphere of influence, covering the upstream value chain and direct customers, and commits the company to identify, prevent, mitigate and remediate adverse human rights impacts, aligned with the UN Guiding Principles on Business and Human Rights. The Supplier Code and Wood and Pulp Policy apply only to the upstream value chain. The Supplier Code strictly prohibits child labour, forced labour, bonded labour, slavery and human trafficking, and requires full compliance with applicable law. In FY2024 no violations of the UNGPs, the ILO Declaration or the OECD Guidelines were reported. Reference: Policies.

Lenzing reports that it has not yet introduced a standardised process for active dialogue with workers in the value chain. The company acknowledges that its current self-commitments in the Human Rights and Labour Standards Policy do not follow a standardised approach to engaging value chain workers. Lenzing states that it has begun to assess in detail its impacts on the upstream and downstream value chain, but that in this initial phase it is still collecting data on vulnerable groups such as migrant workers, women and young workers, and that robust findings are not yet available. As a result, workers in the value chain, their legitimate representatives and other external stakeholders are not directly involved. Engagement therefore runs mainly through suppliers and initiatives such as EcoVadis and Together for Sustainability rather than through direct worker dialogue. Reference: Kanaele und Abhilfe.

Lenzing reports channels for value chain workers to raise concerns and its remediation processes. In 2017 the company introduced an online BKMS Whistleblower System ("Tell us"), freely accessible on the Lenzing website, allowing employees, customers, suppliers and other persons worldwide to raise concerns anonymously and without fear of retaliation, as set out in the Global Code of Conduct. The Global Code of Conduct for Suppliers requires suppliers to give their own workers the opportunity to report concerns or possible unlawful activities, to treat such reports confidentially, to follow up and provide remedy where necessary, and not to retaliate against those reporting in good faith. On remediation, Lenzing's Human Rights and Labour Standards Policy addresses remedy, but the only written procedure currently in place is Lenzing's remediation procedure for child labour. Its effectiveness could not yet be assessed because no cases were reported in the reporting year. Reference: Kanaele und Abhilfe.

Lenzing reports actions aimed at meeting its "Supplier Engagement" target. In the reporting year it carried out a hotspot analysis on forced and child labour across the entire value chain as a first step to gain deeper insight, with results to inform potential next-step measures. Suppliers must confirm they have read, understood and will comply with the Supplier Code of Conduct. Since 2023 Lenzing works only with suppliers achieving a minimum EcoVadis rating of 45 points; suppliers falling below trigger active dialogue and must submit a corrective action plan within three months, failing which the relationship is terminated. No relationships were terminated this way in 2024. Lenzing holds quarterly supply chain sustainability risk management meetings, applies FSC or PEFC standards for wood and pulp suppliers, and conducted four Together for Sustainability audits in 2024, which found no serious human rights issues. No remediation for actual material impacts was required, as no cases were reported. Reference: Massnahmen.

Lenzing reports its "Supplier Engagement" target, first set in base year 2014 from a baseline of zero assessments conducted, which aims to engage the most important suppliers accounting for more than 80 percent of spend to improve their sustainability performance. A sub-target seeks to assess 95 percent of these key suppliers by 2025 through EcoVadis, Together for Sustainability audits or internal assessment; both are reported as on track. In 2024 over 800 suppliers were assessed and monitored via EcoVadis and four were audited under TfS, covering around 60 percent of Global Procurement spend including wood and pulp. The average EcoVadis rating of Lenzing suppliers was 55.6, up from 54.2 in 2023 and 8.6 points above the benchmark. At least 99 percent of wood and pulp suppliers were assessed via forest certification or internal due diligence. No specific targets have yet been set for downstream value chain workers. Reference: Kennzahlen und Ziele.

Lenzing reports policies related to consumers and end-users, oriented on the OECD Guidelines for Multinational Enterprises (for example consumer health and safety and fair market practices). The relevant policies are the Quality Policy, the Safety, Health and Environment (SHE) Policy, the Product Safety Policy, the Global Code of Conduct, the Global Code of Conduct for Suppliers and the Cleanliness and Hygiene Standard. Because Lenzing operates predominantly in a business-to-business environment and its products are converted into finished goods by direct and indirect customers, these policies affect consumers and end-users only indirectly, and the customers bear primary responsibility for the finished products' human rights impacts. Consequently Lenzing makes no specific human rights, health and safety self-commitments toward consumers and end-users and, apart from the publicly accessible whistleblower system, has no dedicated remediation approach. The Product Safety Policy commits Lenzing to ensure product safety for all consumers and end-users through rigorous product testing and labelling in line with applicable standards, certifications and laws, and it conducts no animal testing unless legally required. Reference: Policies.

Lenzing reports that health and safety are taken very seriously but that consumers and end-users have no direct influence over how these impacts are managed. Because its focus is on B2B customers, Lenzing has no general process for active dialogue with consumers and end-users. Instead, it is proactively a member of various industry associations and receives feedback from direct and indirect customers, and is thereby informed indirectly about the concerns of, and impacts on, consumers and end-users. The Product Safety and Regulatory Affairs (PSRA) department manages a range of global external certifications relating to product safety for various applications (for example food contact and skin contact) and sustainability (for example biodegradability), and assesses new certification applications. These certificates serve transparency and demonstrate the safety and compliance of Lenzing fibres in their respective application areas. Reference: Prozesse fuer den Dialog mit Verbraucher:innen und Endnutzer:innen ueber die Auswirkungen.

Lenzing reports that the online BKMS Whistleblower System ("Tell us"), introduced in 2017 and freely accessible on the Lenzing website, is the channel through which employees, customers, suppliers and other third parties can raise concerns anonymously and without fear of retaliation, as also stated in the Global Code of Conduct. Because the platform is publicly accessible, consumers and end-users can raise potential concerns without having to approach Lenzing's direct and indirect customers or relevant associations directly. Lenzing notes that, operating predominantly in a B2B environment where its products are converted into finished goods by direct and indirect customers, it can neither control nor directly observe the impacts of those finished products. Consequently Lenzing has neither introduced specific processes or systems to provide or contribute to remedy for consumers and end-users, nor does it require its direct and indirect customers to develop such channels for consumers and end-users. Reference: Kanaele, um Bedenken zu aeussern.

Lenzing reports actions in its own operations to ensure products do not harm consumers and end-users, to avoid negative impacts and risks, and to pursue opportunities. It relies on independent third-party certifications of standards, products and management systems. During the reporting period PSRA completed recertification under OEKO-TEX STANDARD 100 covering all fibre products from Lenzing's production sites, with no non-compliance reported; renewed the "OK biodegradable WATER" certification confirming freshwater biodegradability; and completed Asthma Allergy recertification confirming a low risk of contact allergies for certified nonwoven fibres. Management systems are certified to ISO 9001:2015, with FAMI-QS and HACCP for certain business areas. Routine risk analyses are conducted for intended ingredients, and business-specific regulations and standards are continuously monitored. In the reporting year these assessments triggered no additional measures. Lenzing is not aware of any product causing serious human rights violations or incidents affecting consumers and end-users. Internal personnel resources are currently insufficient to meet demand. Reference: Massnahmen.

Lenzing reports that up to the current reporting period it has not set measurable, outcome-oriented targets for managing material risks and opportunities for consumers and end-users. The internal objective, as stated in Lenzing's strategy, is to avoid any non-compliance or problems that would affect consumers and end-users. Lenzing monitors and evaluates the effectiveness of its consumer and end-user policies and actions through customer feedback, product benchmarking, internal and confidential metrics and targets, and a quality management system. Consumers and end-users are not directly involved in setting, monitoring or evaluating targets. Energy prices, global political developments and volatile market demand continued to affect operations and product quality; improvements in key defect categories in most Lyocell and viscose plants were offset by production disruptions, leaving performance at the 2023 level. As in prior years, there were no complaints or incidents relating to non-compliance raised by direct and indirect customers or authorities regarding product and service information, product labelling or health and safety impacts. Reference: Kennzahlen und Ziele.

Lenzing anchors its business conduct expectations in the Global Code of Conduct, approved by the Management Board in 2023 and modelled on the UN Global Compact principles for human rights, labour and anti-corruption. The Code covers all identified material impacts and risks, applies to the entire Lenzing Group, and is available to employees via the Lenzing Connect intranet in all group languages and to external stakeholders on the company website. Violations can lead to serious consequences up to termination. The Group Compliance Officer monitors implementation, supported by local compliance units. The Code is complemented by directives that are binding on all employees, including the Anti-Bribery and Anti-Corruption directive, the antitrust directive, the whistleblower directive (a revised version was signed in 2024), the anti-money-laundering directive and the know-how protection directive, as well as the Global Supplier Code of Conduct. A Compliance Cockpit initiative was approved in 2024 to improve whistleblowing, gifts and hospitality, conflict-of-interest registration and policy management tools. Reference: Policies / Globaler Verhaltenskodex.

All Lenzing policies and directives are applied in day-to-day dealings with suppliers, and the company expects the same standards from its business partners as it applies itself. Purchasing of wood, dissolving pulp and chemicals is handled by three separate teams, with Lenzing seeking to minimise procurement risks such as price volatility and supply shortages through reliable long-term relationships and active supplier management. All wood suppliers (over 600 in 2024, half privately owned) are assessed once a year against criteria following FSC Controlled Wood and PEFC Controlled Sources. Pulp suppliers are evaluated through a due-diligence process using a comprehensive questionnaire covering sourcing standards, supply areas, traceability and greenhouse gas emissions. Over 800 suppliers have been assessed via EcoVadis against social and environmental criteria (824 responded since 2017), and sustainability clauses are included in contracts with the most important chemical suppliers. 100 percent of the wood and pulp used is FSC or PEFC certified or controlled to those standards. Supplier contracts can be terminated for serious sustainability breaches; no such case occurred in 2024. Reference: Beschaffung.

Lenzing operates a Compliance Management System built on three pillars: preventing misconduct, detecting compliance risks and weaknesses, and responding to detected misconduct to prevent recurrence. An online-based whistleblower system (BKMS "Tell us") has been available since 2017, accessible to employees, customers, suppliers and other third parties worldwide and offering anonymous reporting in all relevant production-site languages. Reports are handled under the internal Investigation directive by designated staff bound to confidentiality, reviewed by lawyers and forwarded to the Group or Local Compliance Officer, with whistleblower protection against retaliation. The Management Board receives monthly compliance updates and the Supervisory Board audit committee is informed quarterly. Compliance training is delivered through eLearning: mandatory annual courses on the Global Code of Conduct, whistleblower system and know-how protection are assigned to roughly 6,000 employees with IT access, requiring at least 80 percent on the final quiz; 89 percent of the 6,181 assigned employees completed them in 2024. ABC directive training was assigned to 3,405 people (97 percent completed), antitrust training to 267 (over 92 percent), and anti-money-laundering training to 354 (83 percent). Reference: Maßnahmen.

Reported incidents are recorded through the whistleblower system in the Legal, IP and Compliance department. Of 65 cases reported through the Lenzing Group whistleblower system and 96 cases reported through the whistleblower system of Lenzing's LD Celulose joint venture in Indianopolis, Brazil, Lenzing reports that the Lenzing Investigation Team investigated and processed all reported breaches of Lenzing's principles. Misconduct by employees was reported by others, and in some confirmed cases sanctions were imposed on employees. In 2024 there were no convictions or fines under anti-bribery and anti-corruption laws, and during the reporting period there were no public lawsuits relating to corruption cases against the company or its employees. Separately, in connection with the 2020 Hygiene Austria joint venture, Lenzing acknowledged a breach of the antitrust enforcement prohibition and agreed in a 2024 settlement before the Austrian Cartel Court to pay a fine of EUR 75,000. Reference: Kennzahlen und Ziele.