Lenzing believes the time to “activate transformation” has arrived.
The wood-based cellulosic fiber producer said its sustainability report exists as a “call to action and an entry point to positive change” for the textile and nonwovens industry to make sincere progress toward the sustainable production transition.
“At Lenzing, we have the know-how and experience to produce fibers on a large scale from renewable raw materials, and to utilize them sustainably. To really make a difference, we need to move towards industry-wide collaboration with binding commitments and specific actions,” Lenzing Group’s new(ish) chief executive officer, Rohit Aggarwal, wrote in the CEO’s letter kicking off the resulting 342-page exhortation. “Tackling climate change is a business imperative. This is certainly a challenge, but also an opportunity.”
While the Vienna-based supplier revenues saw a 5.7 percent increase year-over-year, reaching roughly $2.8 billion (2.66 billion euros.) While the business performed better in 2024 than 2023, per Aggarwal, the market remains challenging and uncertain, with fiber prices still not “fully recovered.” The modal manufacturer demonstrated “a significant improvement” in key earnings indicators against 2023, driven by increased fiber sales and strong pulp performance, as well as strategic collaborations and “application-oriented innovations.”
Lenzing has reduced its specific greenhouse gas emissions by 41 percent since 2017 and said the group is on track to meet its science-based targets.
Take, for example, the collaboration with Recyc Leather and Ganni on the novel shoe material Pélinova. The trio launched slouchy boots made with Recyc’s next-gen material—which combines Tencel lyocell fibers with recycled leather fibers—at Première Vision Paris last February and have more product drops in place for 2025 as the Danish avant-garde label works to phase out virgin leather.
“Our partnership with Lenzing and Ganni demonstrates Pelinova’s potential as a truly sustainable alternative to traditional leather,” Olivier Grammont, co-founder of Recyc Leather, said in the report. “It is an inspiration for us to expand the range of applications and actively shape the future of the leather industry.”
On the nonwoven front, Lenzing highlighted its Veocel brand’s partnership with supplier Graminton Enterprise—which yielded wood-based and biodegradable hygiene products—as well as the Veocel co-branding partnership with pantyliner producer Carefree that introduced hydrophobic cellulose fibers to the market.
On top of the full commissioning of its upgraded wastewater treatment plant at the Indonesian site, Lenzing implemented further measures to install a new wastewater treatment plant at the UK-based Grimsby site in the reporting year as well.
Looking at dyeing technologies was the teaming with knitwear manufacturer Cobalt Fashion and startup Exponent Envirotech on the waterless EcoHues offering for regenerated cellulose fibers—something the Candiani collaborator believes has the potential to “revolutionize conventional practices” in the textile value chain, per Lenzing’s Rex Mok.
“Together,” per Kaihara Denim’s Hirofumi Inagaki, “we are shaping the future of sustainable denim applications for both casual and formal wear, paving the way for a circular value chain in the fashion industry.”
Also of note was the June agreement between Lenzing’s main shareholder, the B&C Group, and Suzano in which the Brazilian pulp producer acquired 15 percent of Lenzing AG from B&C.
“This arrangement is an absolute win,” Aggarwal said. “With its core competencies in pulp production and operational excellence, Suzano will make a valuable contribution to the successful implementation of our strategy.”
Looking ahead, the Austrian group’s future targets include “aspirational” achievements embedded within Lenzing’s broader “Naturally Positive” sustainability strategy.
Lenzing has made an 83 percent reduction of specific sulfur emissions to air since 2014.
“After the long crisis, Lenzing’s results and returns are still not satisfactory,” Aggarwal said. “However, the trend shows that we are on the right track and our measures are working; what has been achieved should be an incentive for further, even greater progress.”
Following the last-August-launch of the European Union-funded Cellfil project, Lenzing is now working to achieve “aspirational” man-made cellulosic fiber (MMCF) levels for ZDHC wastewater and production guidelines at Lenzing’s viscose factories by 2025 and its lyocell facilities by 2028. Which tracks for the group’s 2030 goal of increasing both fibers’ recycled content to a minimum of 30 percent, sourced from post-consumer waste on a commercial scale.
“Without a doubt, we face strong headwinds in this process,” Aggarwal said. “But you can also sail with headwinds. And the partners who are ahead here will also benefit the most—ecologically, socially, and above all, economically.”
