Going Sustainable: The Successstory of Lenzing

Many green investments today focus on companies and sectors that are carbon efficient in terms of their Scope 1 and Scope 2 emissions. This means that their direct and indirect emissions generated during the production of their products and/or services are taken into account. The data required for this is relatively easy to measure and widely available today. However, Scope 3 emissions are also crucial to a company's carbon footprint. However, like Scope 2, these are indirectly related to the company's activities. One example is the employees' commute to work. Scope 3 emissions have so far been difficult to measure and record. However, for textile companies, about 90% of emissions would fall under Scope 3, and again 25-30% of these emissions are due to raw materials. How can progress be made here? The practical example of Lenzing shows which strategies and processes are possible in procurement:

Lenzing produces textile fibers and pulp raw materials. The fibers are mainly used in the textile industry and for the production of non-woven fabrics, technical textiles, home textiles, curtains and towels. The company's sustainable fiber products enable customers to reduce emissions and save water along the entire value chain.

Target for reduction of carbon dioxide emissions

The company set a science-based carbon emissions reduction target in 2019. Achieving this goal will require collaboration across the company and integration of climate-related considerations into all functions. This includes conversations with procurement and working with investor relations to understand how investors think. The company is also looking for ways to support its customers and help them achieve their own knowledge-based goals. For climate-neutral products, there are internal criteria that must be met (e.g. emissions below a certain threshold, 100% renewable electricity at the site, etc.). Lenzing's intention is to create internal competition and an impetus for improvement for those products that qualify for this product portfolio.

Currently, Lenzing is experiencing growing interest and a positive trend for its climate-neutral fibers. Companies with which Lenzing cooperates can apply for a license to use trademarks (such as the Tencel logo). The companies consider this to be an advantage as the brand becomes better known to the end consumer and the end consumer knows what Tencel stands for. In the area of emissions avoided (Scope 4), corresponding claims are used to position and sell branded products. Ecovero, for example, claims 20% lower CO₂ emissions compared to conventional viscose on the market. Lenzing calculates this for all branded products for which a baseline is available, but has not quantified the prevented emissions at the Group level. Lenzing sells its product to a spinning mill that produces yarn from it. However, sales meetings take place with the brand companies, i.e. Lenzing approaches the companies and communicates the benefits they would achieve by using Lenzing fibers. The LCA is used as a decision-making tool. It can be applied, for example, in the selection of suppliers, as they influence the final footprint of the product. An LCA can also influence long-term supplier relationships.