Sustainability activities in Lenzing Group Lenzing Leading Fiber Innovation

S³C summer school GIZ, Sep 2016

Dr. Krishna Manda, Senior Advisor Sustainability, Lenzing AG

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Contents Lenzing group and its business

Sustainability challenges for textile industry

Lenzing’s sustainable practices and innovation

Industry initiatives and tools

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960.000

tons/year

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Fibers on the world market

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Our core market: Man-made cellulose fibers

Produced from the raw material wood

Halfway position between natural and chemical fibers

Natural wearing properties of natural fibers combined with the advantages of

synthetical fibers such as purity and consistent quality

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Global fiber market Global fiber consumption 2015

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Viscose capacity: 770,000 tons/year

Fiber production sites1)

TENCEL® capacity: 222,000 tons/year

Grimsby / UK 40,000 tons/year

Mobile / USA 50,000 tons/year

Heiligenkreuz / AT 65,000 tons/year

Lenzing / AT 67.000 t/p.a.

Purwakarta / ID 320,000 tons/year

Lenzing / AT 272,000 tons/year

Nanjing / CN 178,000 tons/year

1) all capacities as at 31/12/2014

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Pulp production sites1)

Dissolving wood pulp capacity: 556,000 tons/year

Paskov / CZ 260,000 tons/year

dissolving wood pulp

Lenzing / AT 296,000 tons/year

dissolving wood pulp

1) all capacities as at 31/12/2014; air-dried

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Lenzing fibers fields of application

Textile industry Fashion, home textiles, technical applications

Nonwovens industry Wipes, hygiene, medical and technical applications

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Challenges for textile industry

Climate change – higher use of Renewable Energy, energy efficiency

Water scarcity – less water use and closed cycles

Deforestation – alternative sources, certifications & their harmonization

Toxicity – closed loop processes, use of green chemicals (design)

Resource scarcity – waste reduction, closing material loops

Innovation in different levels

- Fiber innovation (feed stocks, recycling, reduce downstream impacts)

- Textile Manufacturing (ultra efficient dyeing & finishing)

- Product innovation (eg. design for recycling)

- Textile chemical innovation (toxicity, recyclability of textiles)

Sustainable consumption – new business models to reduce consumption

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Putting into context:

How does Lenzing contribute to

address the challenges

presented?

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Energy use in Lenzing group

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Highly efficient use of the raw materials

The Lenzing site is fully integrated bio-refinery. Pulp production at the Lenzing site achieves a wood

utilization rate of over 50%.

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Lenzing Modal® produced by Edelweiss technology

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TENCEL® - the most sustainable fiber production process

Direct solving process

Closed-loop process

Complete recovery of solvent

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Lenzing‘s fiber certifications

We are proud to be able to say that…

…100 % of Lenzing‘s wood and pulp supply is either certified or from controlled*) wood sources!

*) controlled according to the standards of wood certifiers and externally verified!

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Modal® COLOR

Terinte et al. 2014

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Modal® COLOR – CO2 emissions reductions

0

1

2

3

4

5

6

Conventionally dyed fabric Spun-dyed fabric

GH

G e

mis

sion

s, k

g eq

. CO

2/kg

fabr

ic

Wastewater treatment

Drying

Centrifuging

Softening

Washing after dyeing

Conventional fabric dyeing

Scouring

Knitting

Spinning

Mass dyeing

Modal fibre production

Fiber & fabric

contribution

80% savings-only wet

processing comparison

Wet

processing

Terinte et al. 2014

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Circular economy and Apparels

The global apparel market is valued at 3 trillion dollars, 3,000 billion, and accounts for 2 percent of

the world's Gross Domestic Product (GDP).

About 60 million to 75 million people are employed in the textile, garment and footwear sector (2014)

In total about 47 million tons of apparel waste per year are coming up

Sources: https://fashionunited.com/global-fashion-industry-statistics, https://cleanclothes.org/resources/publications/factsheets/

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Circular economy Lenzing‘s solutions for higher Resource efficiency

Lenzing Textile Recycling

Initiative

Lenzing bio-refinery products

Pulp (42 %)

Acetic acid

Furfural

Xylose

Lignosulphonate

Soda

Energy (48%)

Waste from

garment making

Pulp production

Fiber production

Spinning

Textile formation

Garment making

Consumer use

End of life

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Recycling innovation – a collaborative Eco-system

Every actor in the value chain has a role to play to accelerate the recycling innovation process

Supply chain

Processing recycled fibres

Collecting cutting

waste Using prescribed

chemicals Brands and

Retailers

Design for recyclability

Create business models

for closed loop products Arrange collection etc.

Consumers Use products for

intended life-time Bring to take-

back systems

Collection and

separation

Lenzing Innovates technology of

cellulose recycling – post industrial and post consumer waste

Chemical Co. Develop dyes, finishes

and other chemiclas

suitable for recycling

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Sustainability – Our current activities

Alignment of Sustainability Strategy and business strategy sCore TEN

Sustainability Report for 2017

Man-made cellulose fibers – solution pathway (Canopy & brands/retailer)

Update of Lenzing Life Cycle Assessment (LCA)

Support of internal functions (fiber & application assessments and screening of R&D and business management projects, supplier assessments, strategy, stakeholder inquiries – customer, rating agencies)

Co-operation: Plant for the Planet (Conservation initiatives)

Engagement with NGOs, initiatives (SAC, TE, EDANA, Canopy, Bündnis Textil, CIRFS, IVC, EU PEF, Water Footprint Network, academic co-operations)

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Working together for industry improvement Individual company efforts are not sufficient to address wicked problems e.g. circular economy

(design for recycling), climate change etc.

Shared meaning and performance: How do we ensure what we mean and how we do it is

consistent across value chain partners within a sector?

Reducing redundancy and costs of assessments

Bringing momentum and create healthy competition for sustainability progress (benchmarking,

communication to consumers etc.)

Multi-stakeholder initiatives

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Audit Fatigue Plagues The Industry

Sustainable Apparel Coalition 26

In 2009, Patagonia & Walmart Had A

Radical Mission:

Collect peers and competitors from across the

apparel, footwear and textile sector and together,

develop a universal approach to measuring

sustainability performance.

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The Coalition Stakeholders

Sustainable Apparel Coalition

Our Vision

An apparel, footwear, and

home textiles industry that

produces no unnecessary

environmental harm and has a

positive impact on the people

and communities associated

with its activities.

Sustainable apparel coalition

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The Coalition Stakeholders

Sustainable Apparel Coalition 28

Brands

Retailers

Government

Nonprofits

Industry Associations

Manufacturers

Service Providers

Academia

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Diverse Global Membership

Sustainable Apparel Coalition Data to Drive Change: How Higg Assesses Impact at All Stages of the Product Lifecycle 30

Higg Tools for each step along the Supply Chain

DESIGN & PRODUCTION

Design & Developments Module

CONSUMERS & COMMUNITIES

Product Environmental Footprint

(due 2018)

RETAIL

Retail Module Pilot

(due 2017)

RAW MATERIALS

Materials Sustainability Index (MSI)

MANUFACTURERS

Facilities Environment Module (FEM)

Facilities Social/Labor Module

(FSLM)

LOGISTICS

Brand Environment Module (BEM)

Brand Social/Labor Module (BSLM)

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Certificates, Eco-Labels and Awards

VÖNIX (Austrian Sustainability Index)

The European Eco-Label (European Flower)

Responsible Care

Oeko-Tex Standard 100

European Award for the Environment

PEFC (Chain of Custody)

FSC (Chain of Custody)

Compostable (Din Certco, Vincotte, US BPI)

Home compostable (Vincotte)

Biodegradable (Vincotte)

ECOCERT ERTS (Standard TENCEL)

USDA Biobased

Food contact compliance

etc.

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Thank you