Why we do what we do
Our purpose
We have the ambition to change the world for the better. That's what differentiates us from others and gives our actions a meaningful purpose - one that's worth getting up for every day.
The trust that so many partners and consumers put in Lenzing is earned by better decisions which we take for the sake of our environment. Our values which are rooted in sustainability guide us to make better choices every day, in everything that we do. We firmly believe that better choices lead to better growth, which secures a sustainable and profitable future.
Lenzing’s corporate strategy
Driven by our purpose we developed our strategy “Better Growth” - a successful strategic evolution. It helps us to achieve better growth. Not only for our company, but for all people whose life we can improve.
As Lenzing, we want to be successful as a company as well as make a positive contribution to the world. This approach is reflected in our corporate strategy “Better Growth”.
“Better Growth” frames the exciting and ambitious objectives to achieve our overall aspiration and advance not only Lenzing as a business but the world as whole. It accelerates our overall profitable growth journey and enables us to move with greater assurance towards strong financial targets.
Lenzing anticipates strong growth in demand for environmentally responsible fibers for the textile and clothing industry as well as the hygiene and medical sectors. Our strategy is directed towards better meeting the growing customer demand for our fibers marketed under the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands.
We identified four strategic drivers that map out a clear path ahead. These drivers strengthen differentiation and competitiveness to help us to achieve better growth across market segments.
Sustainability
We strive for more sustainable systems and processes in everything we do. We will direct our focus where we can have the greatest impact and create greater differentiation, such as increasing our recycling capacity and lowering our CO2 footprint. We will cut emissions at production sites by switching to cleaner fuels and installing more energy-efficient equipment. Furthermore, we will connect linear supply chains that end in textile waste to achieve circularity.
Innovation
We lead the industry transformation by continuing to bring our innovations to market and manage innovation as a key value driver. Our longstanding culture of innovation supports our profitable growth and sustainability agenda by driving the discovery of new products, applications, processes and technology. Smart solutions are part of transforming the industry towards a more sustainable future for our planet, which ultimately leads us towards our purpose.
Excellence
We become a little bit better everyday. Achieving excellence in all that we do not only drives value, it also builds resilience that enables our business to thrive in a volatile market. Our relentless pursuit of excellence spans operations, commercial and global functions, and generates value through all activities, projects and products. Applied effort towards continuous improvement – through increased efficiency, quality and safety – also gives us the flexibility to face challenging times with confidence.
Premiumisation
We create premium products and services centered around customer needs to meet market demand at the highest level. As leaders in the production of innovative, carbon-neutral fibers, we will continue to invest in our share of the market with differentiated ingredient brands, and work to increase transparency and traceability along the value chain, making Lenzing a sought after partner.
Our growth and sustainability ambitions
Specialty fibers are Lenzing’s great strength. Lenzing operates globally today and, with its aspiration to innovation leadership, is the best partner when it comes to high-quality specialty fibers. In Lyocell we expand capacities to address the growing demand for our fibers from customers and value chain partners. In Viscose we advance the next generation of carbon neutral fibers, including recycled pulp. In Modal we enhance what is already a reliable specialty fiber.
As for pulp, Lenzing strenghtened its backward integration into dissolving wood pulp, which is the key raw material for the production of Lenzing’s high quality, bio-based fiber.
Lenzing in 2027
Our four strategic drivers will accelerate our profitable growth and enable us to move with greater certainty towards the targets we have set for 2027.
- In financial terms, we are aiming for substantially higher EBITDA and an improvement in our return on capital employed.
- In operational terms, we will continue to significantly reduce greenhouse gas emissions on our path to net zero and increase our share of sustainable premium fibers to over 60 percent.
