Lenzing Fibers – Sustainable Solutions for the Textile Industrie Dr. Peter Bartsch, Frankfurt, 13.06.2016

2

960.000

tons/year

3

1 1

4

Lenzing Pulp production sites

Paskov / CZ 258,000 tons/year dissolving wood pulp

Lenzing / AT 296,000 tons/year dissolving wood pulp

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

Dissolving wood pulp capacity1: 554 000 tons/year

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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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Benefits of TENCEL®

strength & durability

wearing comfort

tactile comfort & softness

Improved hygiene properties

drying time

color fastness

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Sustainability transforms our business

Rising expectations of stakeholder to take more social and

environmental responsibility

The Industry is looking across the entire supply chain to foster total

resource productivity and transparency

Better understanding of sustainability context and stakeholder views

required

The industry is asked to formulate and implement a sustainability

strategy

The industry is creating more sustainable value chains

Corporate commitments to sustainable procurement all along the supply

chain are required

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Driving factors of Green Public Procurement

A United Nations Environment Programme global review, published in

2013, identified 43 countries that had put some kind of sustainable

procurement program in place.

Programs are driven mainly by northern Europe.

In United States some government agencies say they prioritize

sustainability.

EU – Green Public Procurement

Norway’s zero-deforestation public procurement policy following a joint

pledge made by Norway, Germany and the UK in 2014.

EU – Product Environmental Footprinting Pilot

Industry driven initiatives – e. g. The Sustainable Apparel Coalition

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Challenges for textile industry

Climate change – higher use of renewable energy

Water scarcity – water use in closed cycles

Deforestation – divesting 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 (e.g. design for recycling)

- Textile chemical innovation (toxicity, recyclability of textiles)

Sustainable consumption – new business models to reduce consumption

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The Man Made Cellulose Fiber Cycle

Renewable raw material - cellulose is nature‘s most important construction material and available in abundance

Certified wood and pulp sources

Rate of wood utilization

Best available manufacturing technologies

Sustainability of fibers is confirmed by LCA, certifications and awards

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Lenzing‘s fiber certifications

Lenzing implemented a strict wood & pulp sourcing policy

We source wood and pulp from non-controversial sources

Regular risk-assessments, audits and on-site visits as well as independent third-party

certification of the sustainable forest management programs help to ensure the policy

compliance.

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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Canopy Style Initiative

Summit in Shanghai June 2015:

Canopy, a NGO, rates Lenzing as best performer

We successfully co-operate on a joint solution pathway to meet

Stakeholder‘s needs.

Canopy‘s strong policy includes:

No sourcing from ancient forests

Respect First Nations & Community

Advance Conservation Solutions

Support alternative fibers

Preference FSC certification

Traceability & verification

Reduce greenhouse gas emissions

Communication and continuous improvement

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The Man Made Cellulose Fiber Cycle

Renewable raw material - cellulose is nature‘s most important construction material and available in abundance

Certified wood and pulp sources

Rate of wood utilization

Best available manufacturing technologies

Sustainability of fibers is confirmed by LCA, certifications and awards

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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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Life Cycle Assessment

LCA as a tool for benchmarking

environmental impact of fibre and

pulp production (sites,

technologies)

Identifying most critical impact

areas

Data are used for on going pilots

(EU, SAC, MSI)

Monitoring new methods to access

waterfootprint or biodiversity.

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TENCEL® is significantly more environmentally friendly than cotton

Process water Cooling water Surface water irrigation Groundwater irrigation

TENCEL®

Austria

Cotton USA

and China

263

21.8x 5,730

Water consumption

Required acreage for

production of one metric

ton of fiber

Environmental

impact of production1

m3 per metric ton of fiber Hectares per metric ton and year Relative to cotton

TENCEL®

Austria

Cotton USA

and China

0.24

3.4x 0,82

Lenzing Group

Avg.

Cotton USA

and China

5.7%

17.5x 100%

Source: “Life Cycle Assessment of man-made Cellulose fibers”; Li Shen, Martin Patel; 2007

1) including freshwater ecotoxicity, terrestrial ecotoxicity and others

More than 50% of Lenzing’s fuel consumption sourced from renewable resources

Lenzing Group environmental impact of production relative to cotton only approx. 5.7%

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The Man Made Cellulose Fiber Cycle

Renewable raw material - cellulose is nature‘s most important construction material and available in abundance

Certified wood and pulp sources

Rate of wood utilization

Best available manufacturing technologies

Sustainability of fibers is confirmed by LCA, certifications and awards

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Sustainability through innovation

Lenzing is a pioneer for ecologically responsible fiber

applications

TENCEL® resource efficient fiber technology

Lenzing Modal® with Edelweiss technology –

CO2-neutral fiber and totally chlorine-free bleaching

Lenzing Modal® COLOR – spun-dyed fibers saving water

and energy – 100% compostable packaging

Textile Recycling Initiative – project (TRI)

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Lenzing Modal® Color – 80% Green House Gas reduction in wet processing

0

1

2

3

4

5

6

Conventionally dyed fabric Spun-dyed fabric

GH

G e

mis

sio

ns

, k

g e

q. C

O2/k

g f

ab

ric

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

Source: Terinte et al., 2014

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Lenzing Modal® Color – 64% water savings in wet processing

0

20

40

60

80

100

120

140

160

180

Conventionally dyed modal fabric Spun-dyed modal fabric

Wa

ter

co

ns

um

pti

on

, L

/kg

fa

bri

c

Fiber & fabric

production

Wet processing

64% savings-only

wet processing

comparison

Source: Manda et al., 2014

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Certificates, Eco-Labels and Awards

The European Eco-Label (European Flower)

Oeko-Tex Standard 100

PEFC (Chain of Custody)

FSC (Chain of Custody)

Compostable (Din Certco, Vincotte, US BPI)

Home compostable (Vincotte)

Biodegradable (Vincotte)

ECOCERT ERTS (Standard TENCEL)

Responsible Care

USDA Biobased (TENCEL und Lenzing FR)

Food contact compliance

VÖNIX (Austrian Sustainability Index)

European Award for the Environment

Thank you for your attention!