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Robert van de KerkhofChief Commercial Officer, Lenzing AG 20th October 2019
Commitment to Improve ITMF Annual Conference 2019Porto/Portugal
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Demand for fibers still growing healthy
Source: Fiber Year 2018, Smithers Apex, team analysis, Euromonitor, ICAC (update as of September 2018)
4-5
0-1
0-1
5-6
Fiber mix development, mt
97
108
2017
6
116
8
65
28
68
6
2021
27
2018
8071
86
28
2019
74
86
2828
6
2020
9
77
123
28
6
2022
105112
119
Synthetic Wood Based Cellulosic Fibers (WBCF) Other natural Cotton
Compound annual growth rate
(CAGR)2017-2022 in %
3 - 4%
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Is this what we
reallywant?
Source: Fashion2Fashion, McKinsey
1’322 1’386 1’4491’517
2’011
2016 20242017 2018 2019
+5%+5%
+6%Billion USD
Global apparel retail market
www.lenzing.com 4Source: UN Environment
Global apparel and footwear industry is responsible for 10% of the global carbon emissions…
www.lenzing.com 5Source: UN Environment
…and produces 20% ofglobal waste water
Source: UN Environment
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The global fashion waste in 2030 is anticipated to
reach
148 million tons
Source: Global Fashion Agenda & BCG Inc. – Pulse of the Fashion Industry
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And there is the human
cost:Textile workers are often paid derisory
wages and forced to work long hours under appalling
conditionsSource: Global Fashion Agenda & BCG Inc. – Pulse of the Fashion Industry
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*1 Title from Mike Berners-Lee, Cambridge Press, January 2019
Our industry is in a crisis
Overcapacity
Tought consumers to „huntfor bargains“
Climate crisis Greed
Fast fashion became "fast" very quickly
Borrowing from thefuture
Cheapened ourexpectations
Consumer-driven material economic growth
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Meet Teresa: A young millennial
• Concerned about climate change & environment
• Is more conscious and want’s to be engaged:
• …be informed• …reduce consumption• …reuse
#whomademyclothes
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Over 36 major brands pledge to achieve
sustainable cotton by 2025
European Parliament adopting new rules on
single–use plasticsTextile industry in search
of sustainable alternatives
8 popular companies like Nike and Pategonia commit to reducing
environmental footprint by using organic cotton
Business InsiderTextile Exchange
European CommissionNordic Way
Leading brands, retailers and NGO’s are driving change
54 measures to "close the loop" of product lifecycles
European Commission
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Reached or passed the limits of our current economic model of consumer-driven material economic growth
• Loosing trust of the consumer
• The true cost
• Greenwashing
• The human and social aspect
• Reluctant to change
• Innovations of today creating the problems of tomorrow
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End-to-end thinking: Recycle, don’t throw away
Raw Material
Swapping, BorrowingRenting, tradingFabric recyclingFiber recycling
Monomers, oligomers, polymer recycling
PET Bottles
Machine manufacturers, Technology
Downcycling
Rags, blankets, insulation
Heat or electricity
Energy recovery
Closed loop recycling
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Why transparency matters• Value chains global and complex• Brands have hardly any visibility on
their raw material suppliers• No clear sustainability index
communicating impact of the actions brands have taken
• Consumer wants transparency• 100% organic cotton – really? What about
the sewing thread?• Chemicals used?
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Partnering for systematic change: moving from linear economy to complex, circular ecosystems
Our planet Future generationsInvestors & Raters Machine Manufacturers
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Example: LENZING commits to Science Based Targetsand defines CO2 ambitions
● Science Based Targets organization provides the leading frameworkfor climate targets in line with Paris agreements● Lenzing joins companies such as Levi’s, Nike, Chanel, IKEA, H&M
● Lenzing commits to ambitious CO2 targets next to existing sustainability targets● Commitment to net-zero CO2 emissions target by 2050● Reduction of specific CO2 emissions
per metric ton of sold product1 by 50 % by 20302
● Investment of more than EUR 100 mnto combat 1.3 mn tons of CO2 emissions3
1) Pulp and fiber2) Compared to 2017 baseline3) Scope 1 -3
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What are YOU prepared to
commit to NOW?As leaders we must not be stained by the bad
players, but leave them behind and show
a different way forward.
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