Sustainability activities in Lenzing Group Lenzing Leading Fiber Innovation S³C summer school GIZ, Sep 2016 Dr. Krishna Manda, Senior Advisor Sustainability, Lenzing AG
Contents Lenzing group and its business Sustainability challenges for textile industry Lenzing s sustainable practices and innovation Industry initiatives and tools 15.09.2016-2
960.000 tons/year 15.09.2016-3
Fibers on the world market 15.09.2016-4
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 15.09.2016-5
Global fiber market Global fiber consumption 2015 15.09.2016-6
Fiber production sites 1) Viscose capacity: 770,000 tons/year TENCEL capacity: 222,000 tons/year Lenzing / AT 272,000 tons/year Purwakarta / ID 320,000 tons/year Mobile / USA 50,000 tons/year Grimsby / UK 40,000 tons/year Nanjing / CN 178,000 tons/year Heiligenkreuz / AT 65,000 tons/year Lenzing / AT 67.000 t/p.a. 1) all capacities as at 31/12/2014 15.09.2016-7
Pulp production sites 1) Dissolving wood pulp capacity: 556,000 tons/year Lenzing / AT 296,000 tons/year dissolving wood pulp Paskov / CZ 260,000 tons/year dissolving wood pulp 1) all capacities as at 31/12/2014; air-dried 15.09.2016-8
Lenzing fibers fields of application Textile industry Fashion, home textiles, technical applications Nonwovens industry Wipes, hygiene, medical and technical applications 15.09.2016-9
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 15.09.2016-10
Putting into context: How does Lenzing contribute to address the challenges presented? 15.09.2016-11
Energy use in Lenzing group 15.09.2016-12
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%. 15.09.2016-13
Lenzing Modal produced by Edelweiss technology 15.09.2016-14
TENCEL - the most sustainable fiber production process Direct solving process Closed-loop process Complete recovery of solvent 15.09.2016-15
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! 15.09.2016-17
Modal COLOR Terinte et al. 2014 15.09.2016-18
GHG emissions, kg eq. CO 2 /kg fabric Modal COLOR CO 2 emissions reductions 6 5 80% savings-only wet processing comparison Wastewater treatment Drying 4 Wet processing Centrifuging Softening Washing after dyeing 3 Conventional fabric dyeing 2 Scouring Knitting 1 Spinning 0 Fiber & fabric contribution Conventionally dyed fabric Spun-dyed fabric Mass dyeing Modal fibre production Terinte et al. 2014 15.09.2016-20
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/ 15.09.2016-21
Circular economy Lenzing s solutions for higher Resource efficiency Lenzing bio-refinery products Pulp (42 %) Acetic acid Furfural Xylose Lignosulphonate Soda Energy (48%) Lenzing Textile Recycling Initiative Pulp production Fiber production Spinning Textile formation Garment making Consumer use Waste from garment making End of life 15.09.2016-22
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 Chemical Co. Develop dyes, finishes and other chemiclas suitable for recycling Lenzing Innovates technology of cellulose recycling post industrial and post consumer waste Collection and separation Processing recycled fibres Collecting cutting waste Using prescribed chemicals 15.09.2016-23 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 takeback systems
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) 15.09.2016-24
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 15.09.2016-25
Audit Fatigue Plagues The Industry 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. Sustainable Apparel Coalition 15.09.2016-26 26
The Coalition Stakeholders Our Vision Sustainable apparel coalition 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 15.09.2016-27 27
The Coalition Stakeholders Brands Retailers Manufacturers Government Industry Associations Nonprofits Service Providers Academia Sustainable Apparel Coalition 15.09.2016-28 28
Diverse Global Membership Sustainable Apparel Coalition 15.09.2016-29 29
Higg Tools for each step along the Supply Chain DESIGN & PRODUCTION Design & Developments Module RAW MATERIALS Materials Sustainability Index (MSI) CONSUMERS & COMMUNITIES Product Environmental Footprint (due 2018) RETAIL Retail Module Pilot (due 2017) MANUFACTURERS Facilities Environment Module (FEM) Facilities Social/Labor Module (FSLM) LOGISTICS Brand Environment Module (BEM) Brand Social/Labor Module (BSLM) Sustainable Apparel Coalition Data to Drive Change: How Higg Assesses Impact at All Stages of the Product Lifecycle 30
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. 15.09.2016-31
Thank you 15.09.2016-32