Taking Responsibility

FOCUS SUSTAINABILITY SUSTAINABILITY IN THE LENZING GROUP ENVIRONMENT Voluntary commitment to stringent environmental standards WORKFORCE Corporate culture as Taking the basis for working together successfully Responsibility CUSTOMERS for Our Business Close cooperation along the entire value creation chain www.lenzing.com 2 ECONOMY Sustainability in the Lenzing Group Lenzing achieves sustainable success by thinking in the long term in a spirit of partnership giving equal attention to ecological, economic and social criteria: Lenzing makes products from the renewable raw material wood while at the same time meeting its environmental responsibilities. In light of the complex chemical and technological processes at its facilities, Lenzing considers environmental protection and a safe mode of production to be vital. Lenzing is following a path of generating long-term value through growth, innovation, quality and market-orientation. All stakeholders, e.g. customers, employees and shareholders, benefit in a fair balance. Lenzing promotes the personal development of its employees regardless of factors such as for example their origin, religion or gender. Lenzing remains in an open dialog with all stakeholders and is committed to the well-being of those around it. SUSTAINABILITY REPORT . Lenzing Group | 3 Preface by the Chief Executive Officer improvement process that can never for our employees, for our customers come to an end. and suppliers, for compliance with our social, legal and ecological obligations In earlier decades viscose plants were as well as self-imposed standards. considered polluters. Lenzing shows These values give rise to the reliabil- that they do not have to be. Besides ity upon which our customers have sustainable process improvements, always been able to count. Dear Readers, Lenzing has made its chemical cycles largely closed and uses the most With all the economic, ecological and ndustrially manufactured cellulose modern processes for cleaning waste social requirements a global company fibers, usually referred to as man- water and waste air. Through these like Lenzing has to meet, its goals can I made cellulose fibers (MMC), make efforts, it has set new benchmarks sometimes come into conflict with up the core business of the Lenzing for the entire cellulose fiber industry. each other. Recent years have shown, Group. Wood, a renewable raw mate- The environmental standards we set however, that these conflicts can be rial, is the starting material for these for ourselves are considered at all handled effectively from an economic products. Given this raw materials production locations and in all regions standpoint too if we adhere to our base, Lenzing is “genetically” predis- of the world to be the yardsticks that principles and values. Lenzing has posed to the principles of sustainable will also guide our future actions. been able to improve its key economic management and industrially imple- figures steadily over an extended ments and applies these principles Technologies used by Lenzing do not period of time. throughout the Group, a fact of which become truly globally effective until many stakeholders are still unaware. these innovations are also used by the There are many facets to personal ac- competition or imposed on all local countability and sustainable action at We are proud that Lenzing fibers manufacturers as requirements by Lenzing. Our intention with this report contribute in important ways to mak- local authorities. is to provide our readers, custom- ing life better and more comfortable. ers, suppliers and all partners of the About two thirds of our fibers go into Lenzing is active around the globe but Lenzing Group with an intermediate textile applications. In garments, Lenz- as an Austrian company with a 75- report on how we put these principles ing fibers cover another basic human year tradition in business, we repre- into practice in our daily operations. need besides the aspect of fashion; sent values deeply rooted in European We have already achieved a great they enhance people’s sense of well- culture. Regardless of the region of deal through these efforts. However, being. About one third of our fibers are the world in which Lenzing conducts we are aware of the many things we used for nonwovens, where they make business, the principles of tolerance, can improve in the future too and we an important contribution to personal openness and respect toward all hu- are working on doing just that. In this hygiene and are employed in health man beings apply equally. As a Euro- spirit, I hope you enjoy reading this care and child care. pean pioneer in globalization, Lenzing brochure. has been a model in applying these Lenzing fibers have become a small principles, for example, to its facilities but often indispensable part of our in Asia for several decades. Social modern industrial society. Fiber prod- commitment has always been an ucts are basically used all day and integral part of our economic activities. night in a variety of applications by Yours, men and especially women. We make Along with a passion for our business, every effort to produce these consum- the “Lenzing Spirit” stands for the will er goods with minimum environmental to change, power of innovation and impact and view this as a continuous the readiness to accept responsibility, Peter Untersperger 4 ECONOMYCONTENTS 24 Sustainability through Innovation Contents 02 Sustainability in the Lenzing Group Research 03 Preface by the Chief Executive Officer and Development 18 06 GENERAL 06 Sustainability Achieved through Long-term Thinking 08 The Lenzing Group 10 Products of the Lenzing Group 10 TENCEL® 10 Lenzing Viscose® 11 Lenzing Modal® 11 Lenzing FR® 12 The Production Sites of the Lenzing Group 13 Sustainability Management 14 Responsibility for the Economy 16 The Global Fiber Market 17 Fiber Types 18 Research and Development 18 Innovation – a key to long-term success 69 19 Lenzing’s model for innovation 21 Cooperation in the value creation chain Further Education and Training 23 Lenzinger Berichte – a recognized flagship of Lenzing innovation 24 Sustainability through Innovation 24 Lenzing Modal® with Edelweiss technology 25 Lenzing Modal® COLOR – spun-dyed fibers as an ecological alternative SUSTAINABILITY REPORT . Lenzing Group | 5 Social and Community Involvement 75 35 Environmental Standards in the Lenzing Group = Cover Stories 25 TENCEL®Biosoft – 60 Global Sustainability new advance from the nonwovens segment Cooperations in the Textile Industry 26 Guest Commentary: Economic Value 61 Biobased Label for Lenzing Products Creation by the Lenzing Group 62 RESPONSIBILITY FOR PEOPLE 28 Key Economic Figures 64 Corporate Culture 31 Purchasing 66 Health and Safety 32 RESPONSIBILITY FOR THE ENVIRONMENT 67 Policy for Safety, Health and Environment 34 Operational Excellence 68 Equal Opportunity 35 Environmental Standards in the Lenzing Group 69 Further Education and Training 36 Wood and Pulp 70 Guest Commentary: Coaching – the Art of Creating 37 Guest Commentary: On the Sustainability of the Sustainable Relationships Forestry and Wood Industry in Austria and Europe 72 Employee Communication 40 Wood and Pulp Supplies in the Lenzing Group 73 Parental Leave 42 In-house Pulp Production 74 Turnover 42 Pulp production in Lenzing 74 Employee Benefits 44 Pulp production in Paskov 74 Equal Treatment 46 Responsible Purchasing of Wood and Pulp 75 Social and Community Involvement 48 Lenzing Fibers 75 Health and social projects 48 The TENCEL® production process 76 Sports and culture 49 TENCEL®, fiber of the future 76 Community development 50 Viscose and modal fiber production 51 Management systems 78 REPORT PARAMETERS AND BOUNDARIES 52 EU Ecolabel 80 GLOssARY 54 Water 56 Energy 6 ECONOMYINTRODUCTION Sustainability Achieved through Long-term Thinking Renewable raw materials are the industrial future of the fiber industry 1 Our fiber products are part of the Our corporate culture natural cellulose cycle. One outstand- is shaped by stability ing trait of our products is that they are highly compostable. Man-made cellulose fiber has been our core business for 75 years. Lenzing has The wood or pulp for our cellulose been a standard-setter in the industry fiber products stems largely from for decades. sustainably managed sources. We therefore know the origins of our key Our corporate culture has evolved his- forests and plantations and their meth- torically. It is geared to long-term part- ods of production. nerships and applies high standards at all business locations. The importance of cellulose fibers on the world market is growing because We have been proving for decades that consumers increasingly value prod- ecologically and socially responsible ucts manufactured in an environmen- production and business success are tally friendly way. by no means mutually exclusive. In terms of ownership structure, the largest shareholder is a foundation (B & C Group). This foundation considers its role to be that of a stable shareholder with a long-term orientation. 2 SUSTAINABILITY REPORT . Lenzing Group | 7 Innovation is the factor that guarantees our market leadership Lenzing is a global technological 3 pioneer for ecologically responsible in- 5 We produce high- dustrial cellulose fiber production and Long-term relationships quality products to high for decades has been setting the high- with our stakeholders ecological standards est standards in this regard. We strive engender trust to achieve long-term market success Our production methods are

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