#Yarn & Fiber

2021-10-07

Lenzing rated “sustainability champion” by MSCI ESG

The Lenzing Group, the world’s leading supplier of wood-based specialty fibers, has received further recognition of its performance in sustainability. The prestigious rating agency MSCI has upgraded its rating for the Lenzing Group from “A” to “AA” as at September 2021. As a result, Lenzing ranks among the top 6 percent of companies rated in its peer group.

“We strongly believe that the fiber industry will have to change in order to meet the ecological and social demands of the future. The issue of sustainability has been firmly anchored in our strategy for many years and is fundamental to our commercial success. Lenzing is an absolute pioneer in this field and we will continue to be a role model in future”, says Thomas Obendrauf, Chief Financial Officer of the Lenzing Group.

The upgrade to the MSCI ESG rating will also lead to a reduction in Lenzing’s interest expense. Lenzing placed a bonded loan worth EUR 500 mn in November 2019, which is linked to its sustainability performance. In accordance with its commitment under the bonded loan placement, the company will donate the full amount of the interest expense saved thanks to the rating revision to a project it supports.

Vision of a zero-carbon future

The rating agency MSCI, whose rating determines the interest rate for the bonded loan, cited the company's ambitious climate targets, its approach to promoting a circular economy and exceptionally good governance structure as the main reasons for the upgrade.

Lenzing is actively involved in tackling the problems arising from climate change by implementing its science-based targets. In 2019, Lenzing set the strategic goal of halving its greenhouse gas emissions per ton of product by 2030. Its vision for 2050 is to achieve climate neutrality. The implementation of two key projects in Brazil and Thailand is an important milestone in this process, while the investments in its existing locations in Asia are also consistent with Lenzing’s decarbonisation targets.

Another milestone in Lenzing’s push to implement its ambitious climate and sustainability targets is its collaboration with Swedish pulp producer Södra. Both of these global market leaders, which have proactively engaged in promoting a circular economy in the fashion industry for many years, are pooling their resources to drive this issue forward and make a vital contribution to solving the problem of global textile waste.

Platinum status from EcoVadis

Lenzing has received multiple awards for its performance in 2021, especially in the field of sustainability. Its rating from EcoVadis with regard to corporate social responsibility is particularly outstanding. Having achieved platinum status for the first time, Lenzing ranks among the world’s top 1 percent of companies evaluated based on their approach to the environment, fair working conditions and human rights, as well as ethics and sustainable procurement.

The not-for-profit environmental organization Carbon Disclosure Project (CDP) has also commended Lenzing’s efforts to combat climate change once again. The listing on CDP’s Supplier Engagement Leaderboard is attributable to the company’s leading role in working with suppliers.

Lenzing invests EUR 15 mn to strengthen position in the hygiene market

The Lenzing AG is investing approximately EUR 15 mn to expand its production capacity for premium viscose fibers at its site in Lenzing, Austria. This strategic investment is part of the recently announced investment program of EUR 100 mn in total to secure the long-term competitiveness of Lenzing’s Austrian production sites. The capacity expansion reinforces the company’s commitment to providing sustainable solutions to the global hygiene market. It also strengthens the company's role as a trusted provider of high-quality fibers for feminine care applications.

Lenzing AG: Stable revenue and improved EBITDA despite market headwinds

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Lenzing confirmed as global leader in Canopy sustainability ranking

Lenzing AG has once again taken first place in this year's Hot Button Report published by the Canadian non-profit organization Canopy. With 34.5 out of 40 points and no known risk of sourcing from ancient and endangered forests, Lenzing remains one of the most sustainable companies in regenerated cellulose fiber production – setting a benchmark for responsible business practices in the textile and nonwovens industries.

Lenzing AG refines strategy and strengthens competitiveness for a challenging environment

Lenzing AG, a leading provider of regenerated cellulosic fibers, refined its strategy to strengthen its global positioning and competitiveness. With this step, the company responds to the ongoing challenges in the global textile and nonwovens markets as well as geopolitical changes. Cornerstones of the refined strategy include focusing on high-performance fibers, enhancing operational efficiency and asset footprint optimization, which should further unlock the company’s full value creation potential.

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Techtextil India 2025 commences: Ushering in a new era for functional textiles

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Solution for lower energy consumption proves itself in practice

Getzner Textil is one of KARL MAYER’s first customers to use PROSIZE with CASCADE. The innovative weaving specialist has tested the steam and condensation system by KARL MAYER and determined the energy savings it achieves. Karl-Heinz Vaaßen, Head of Textile Drying at KARL MAYER, assisted Getzner Textil’s production specialists both with the tests and with all questions relating to CASCADE. In a conversation with Werner Egger, Head of Weaving, and Thomas Rossi, Head of Warp Preparation at Getzner Textil, he learnt more about the system’s benefits for his customer.