The Lenzing Group said Friday it will invest 100 million euros ($113.4 million) over the coming years to reduce carbon emissions both inside its operations and in its supply chain.
Due to its ambitious CO2 emission reduction strategy, the Lenzing Group said it will further contribute toward helping customers to transition their business to a lower CO2 base.
A first milestone is set for 2030, when Lenzing plans to reduce CO2 emissions per ton of product by almost 50 percent compared to a 2017 baseline. The total CO2 reduction of all the planned initiatives will yield 1.3 million tons, the Austria-based cellulosic fiber company said.
“Climate change is the most important issue mankind is facing,” Stefan Doboczky, CEO of the Lenzing Group, said. “With this commitment, we are fully in line with the Paris climate agreement and will further help the world to reduce the speed of global warming.”
Doboczky said Lenzing’s “ambitious decarbonization targets” puts it in the forefront, not only in the world of fiber producers, but also among major industrial companies.
“Despite the substantial investment that is necessary, we are convinced that this is not only a very responsible step, but that it will also be a value-generating move” he added. “It is our responsibility toward our children and grandchildren to act now.”
The company said a series of measures in production, as well as innovations and adaptations to new technologies, will help achieve these ambitious targets. A major contribution will also come from investments in the production of highly eco-responsible products such as Tencel-branded lyocell fibers. In addition, the drastic improvement of energy efficiency and an increase in the percentage of renewable energy used in the energy mix will deliver the targets set.
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“To underpin this strategy, Lenzing will commit itself to the Science Based Targets initiative, the most recognized organization in the field of climate-relevant target setting,” Robert van de Kerkhof, chief commercial officer of the Lenzing Group, said. “This step is a significant contribution to green up the textile industry and will help our partners to offer consumers textiles with an ecologically responsible footprint.”
Lenzing said targets adopted by companies to reduce greenhouse gas emissions are considered “science based” if they are in line with the goals of the Paris Agreement. Lenzing noted that it is a member of the CEO Climate Leaders Group of the World Economic Forum and is a signatory to the United Nations Fashion Industry Charter for Climate Action.
Lenzing Group revenue for the first quarter ended March 31 rose 1.8 percent to $627.5 million. Earnings before interest, tax, depreciation and amortization dropped 9.5 percent to $103.1 million.