The Lenzing Group, a global supplier of specialty fibers for the textile and nonwovens industries, has once again been recognized for its sustainability performance and its active contribution to transforming the industry towards a circular economy. The rating agency MSCI awarded Lenzing an “AA” rating for the third time in a row, placing Lenzing among the top eight percent of rated companies in its peer group. In addition, Lenzing participated for the first time in the SAC Higgs FEM verification to assess the environmental impact of product manufacturing at its sites and achieved excellent positive results.
According to the rating agency MSCI, Lenzing continues to lead the way among global companies in terms of governance structures. In addition, MSCI highlights Lenzing’s leadership in implementing strong initiatives to mitigate the risk of environmental liabilities associated with the release of toxic pollutants and highlights its strong water stewardship program, which includes a water risk assessment. The confirmation of the “AA” rating from MSCI ESG enables Lenzing to further reduce its interest expense. In November 2019, Lenzing placed a bonded loan in the amount of around EUR 500 mn, which is linked to the company’s sustainability performance. In line with its commitment under the bonded loan, the company will donate the entire interest expense it saves thanks to the “AA” rating to a social-ecological project.
“I am proud that Lenzing is among the top eight percent of the world’s most sustainable companies. At Lenzing, we are working hard to make our industries even more sustainable and to drive the transformation of the textile business model from a linear to a circular economy model. This approach is firmly anchored in our strategy and corporate values. I am therefore particularly pleased about the MSCI rating and that we as the Lenzing Group have also achieved excellent results in the SAC Higgs FEM,” says Stephan Sielaff, CEO of SAC is an alliance of the apparel, footwear and textile industries in which Lenzing is an active member.
Lenzing has achieved outstanding results in the Facility Environmental Module (FEM) assessment. The Higgs FEM is a revolutionary tool for assessing the environmental impact of product manufacturing in factories and provides a clear picture of the environmental impact of a facility. Every stage of the production process is captured with this tool – from water consumption and waste management to the use of chemicals and energy. This not only identifies hotspots for improvement, but also reduces redundancies, mitigates risks and creates a common language for communicating sustainability to stakeholders.
By November 2023, all Lenzing sites, with the exception of the sites in Brazil and Thailand, which are however scheduled for 2024, have completed the first external verification of the module with excellent results. With almost 20,000 participating companies from different sectors of industry, which achieved less than 50 percent in total average in 2023, Lenzing sites achieved verified scores of more than 70 percent to 95 percent.
