From the Sector

• Successful measures to fight against the COVID-19 pandemic with a focus on the safety and health of employees, customers and partners and securing sustainable business development
• Implementation of strategic investment projects and climate targets progressing on schedule – launch of first TENCEL™ branded carbon-zero fibers
• New level of transparency in the textile industry: introduction of blockchain technology
• Target setting: Lenzing raises the bar even higher and sets new sustainability goals

The Lenzing Group presented its Sustainability Report 2020 on April 22, 2021, World Earth Day. Featuring the title “Stand up for future generations”, Lenzing once again emphasized its commitment to taking responsibility beyond the products it makes. The non-financial report, prepared in accordance with the reporting standards of the Global Reporting Initiative (GRI) and the Austrian Sustainability and Diversity Improvement Act (NaDiVeG) and reviewed by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, illustrates how the company is responding to the global challenges of our time.

The 2020 financial year of the Lenzing Group was largely dominated by the COVID-19 pandemic. Lenzing took short-term measures to safeguard its business operations and mitigate the effects of fiber prices and fiber demand which came under increasing pressure. The priority was to protect employees and strengthen long-term partnerships with suppliers and customers. Following the current fight against the coronavirus and its consequences, the company continues to move ahead determinedly to achieve its sustainability targets, also against the backdrop of such a difficult market environment.

With the implementation of its science-based targets, the Lenzing Group actively contributes to mastering the problems caused by climate change. In 2019, Lenzing made a strategic commitment to reducing its greenhouse gas emissions by 50 percent per ton of product by 2030. The overriding target is to be climate-neutral by 2050.*

The launch of the first carbon-zero TENCEL™ fibers certified as CarbonNeutral® products in accordance with The CarbonNeutral Protocol – the leading global framework for carbon neutrality – represents another important milestone from the reporting year. As of June 2021, Lenzing will also market the first VEOCEL™ branded lyocell fibers as certified CarbonNeutral® products.

Promoting the circular economy
Lenzing also sets standards for the entire fiber, textile and clothing industry with respect to the circular economy which is of such crucial importance in climate and resource protection. In order to enhance resource efficiency and offer a solution for the global problem of textile waste, the company developed the REFIBRA™ recycling technology. REFIBRA™ is the only technology in the world enabling the production of new lyocell fibers on a commercial scale from cotton scraps derived from manufacturing cotton clothing as well as from used garments. In this way, an important contribution is made to promoting circularity in the textile industry.*

New level of transparency in the textile industry
In addition to environmental protection, the issue of transparency along the supply chain poses a major challenge to the textile industry. Working in cooperation with TextileGenesis™, Lenzing offers an innovative solution to ensure greater transparency on the basis of blockchain technology. Following several successful pilot projects with renowned fashion brands, this digital platform was ultimately launched in 2020 to enable the traceability of textiles, from the fiber to all stages of production and distribution. Thanks to the innovative Fibercoin™ technology of the TextileGenesis™ platform, Lenzing and its partners are able to issue so-called “blockchain assets” in direct proportion to the physical fiber deliveries of the brands TENCEL™ and LENZING™ ECOVERO™. These digital assets function like a “fingerprint” and thus prevent adulteration.*

Target setting: Lenzing raises the bar even higher
The Lenzing Group operates in line with three strategic principles within the context of its “Naturally positive” sustainability strategy: partnering for change, advancing circularity and greening the value chain.*

*See attached document for more information..

• The new platform created for b2b / b2c online sales entirely dedicated to the business of denim.

The year 2020 witnessed an acceleration in the importance of online sales. It is now clear to anyone involved the business of sales that e-commerce represents the future.

That’s when the creative idea by Laura Pianazza, founder of DENIMAZING (combination of DENIM and AMAZING), was launched on the platform powered by VELVET.  Its prime objective is to help small and medium sized companies to increase their online sales, focusing on the development of marketing strategies in an omnichannel environment thanks to an intelligent balance between technology and professional experience.

Laura Pianazza derives her professional experience from the editorial sector, where she was active for many years on a European level for a trade magazine specialized in the denim business. Thanks to this background, she was able to develop a strong network of contacts with entrepreneurs, top management and marketing agencies. Her constant interaction with customers shed light on the digital challenges present in most Italian companies: firstly, the fragmentation of services offered online and, secondly, the lack of integration between technology and marketing strategies. The latter is the one most often neglected by firms and Laura recognized many risked not being well prepared for this transformational shift in business by investing little time and at a slow pace.

The DENIMAZING project works side by side with denim fabric manufacturing companies (b2b), finished product brands and distribution companies (b2c), all with the same common denominator: denim. A unique service assisting raw materials manufacturers in finding market niches in companies that create product, who in their own right would like their brand to be seen and sold to a growing customer base. In the b2b landscape, companies can sell their own fabrics by the meter thanks to their own 3D presentation and customers can virtually visit their showrooms. Similarly, brands will have the same possibility to sell their creations as on a real e-commerce site, thanks to virtual tours in their showroom and specific areas for sales and/or chatting/videocalls with end-customers. Instead, for companies providing supply chain services (coloring, washing, etc.), individual virtual rooms will be made available inside the marketplace, in order to speak directly with sales managers from brands and the fabric companies.

The business side is just one aspect of this project. Thanks to its partnership with the marketing and online sales agency VELVET, DENIMAZING grows based upon a series of key tasks during different phases, namely: platform construction, marketing and advertising, both traditional and via web and social medias.

Not only has Laura has added a series of high-level technology/web master courses to her experience, but DENIMAZING also brings together a team of qualified professionals having a longtime experience in different fields of the denim business: sales, entrepreneurs, web design and marketing, while the end-customer will be in direct contact with the headquarters for assistance, customer care and updates.

Flocus™ offers a range of kapok textile materials such as fibers, yarns, textiles and nonwovens, which provide the textile industry with a naturally sustainable and regenerative alternative which has not been available before.

Kapok is a natural fiber, traditionally used by local population for fillings but with no large scale applications until Flocus™ founding. Beside kapok several interesting properties, there were some limits that had been inhibiting the possibility to use it at a larger scale and build a supply chain on textile products based on it: kapok fibers are short stapled ones (2-4 cm length), very light and empty inside: for this reason they incorporate air and made the spinning attempts unsuccessful.

Flocus™ pioneers sustainable and regenerative textile solutions based on kapok fiber, and it is creating a responsible supply chain for kapok.

With one of the most advanced technologies in the market, FLOCUS™ can spin the highest kapok percentage, offer yarns in the thinnest counts with the possibility of low minimum order quantity per blend.

Flocus™ Kapok offers products which can reduce the presence of animal and synthetic products in the market, utilizing a completely natural alternative without abandoning functionality.

The Flocus™ team works in partnership with companies who want to investigate the use of the eco-responsible fibers and is testing the wide range of applications of Flocus™ kapok stuffing, yarns, fabrics, nonwovens for thermo and sound insulation, waddings, foam replacement, medical, automotive and technical uses and others.

• 18+ metric tons of aniline are estimated to have been removed from the denim supply chain in about 3 years⁽²⁾.
• That represents 300'000'000+ pairs of jeans free of aniline, with 18'000+ garment workers, and aquatic life, protected from its toxicity⁽²⁾.

Archroma celebrates nearly 3 years of successfully converting the denim industry to aniline-free⁽¹⁾ pre-reduced liquid indigo.

Archroma launched its aniline-free⁽¹⁾ Denisol^® Pure Indigo in May 2018⁽³⁾.

Aniline is a key ingredient to make the indigo molecule. Unfortunately, during this process some aniline impurities are carried through into the indigo dyestuff. When the indigo is dyed on the fabric, a lot of the aniline impurity is locked into the pigment in the fabric. The remainder of the aniline impurity, approximately 300 metric tons annually, is discharged during dyeing. This can be an issue as aniline is toxic to aquatic life. In addition, exposure levels to factory workers can be high. The new Denisol^® Pure Indigo 30 liq was therefore developed as an aniline-free⁽¹⁾ indigo solution for designers, manufacturers and brand owners who long for authentic indigo inspiration.

Since the launch of Denisol^® Pure Indigo, several denim manufacturers, such as front-runner Absolute Denim, as well as Advance Denim, Azgard 9, Kilim Group, Nuevo Mundo, Rantex, Shasha Denim and Tuong Long, have taken the matter in their hands and converted their production or dedicated lines to aniline-free denim to brands and retailers.

The innovation is also supported by denim partners such as Be Disobedient and The Denim Window.

Archroma evaluates that, based on the total quantity of Denisol^® Pure Indigo sold until its introduction, its partners helped remove almost 18 metric tons of aniline from the denim supply chain. That represents an equivalent to about 300’000’000 pairs of jeans free of aniline and more than 18’000 garment workers protected from its toxicity⁽²⁾.

(1) Below limits of detection according to industry standards (tested & proven).
(2) Based on 15 minutes of work to produce one pair of jeans, produced over 8-hour working days and 300 working weeks per year.
(3) For the launch press release, click here.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today on the White House announcement that President Biden will sign an executive order today, “ensuring the future of America is Made in America by all of America’s workers.”  Further, NCTO launched a new industry video campaign today that outlines steps the Biden administration and Congress must take to re-shore the production of personal protective equipment (PPE) and the entire supply chain for critical products. The video can be found here: MakeAmericanPPE.

National Council of Textile Organizations President and CEO Kim Glas said:
“We commend President Biden for taking action in his first days in office to strengthen our domestic supply chain and manufacturing base with a “Made in America” executive order directing the federal government to spend taxpayer dollars on American-made goods produced by American workers using American-made components.

Increasing the domestic procurement threshold and the price preferences for domestic goods under the current Buy American law will bolster domestic production and stimulate more investment in U.S. manufacturing.

We believe it is critical that taxpayer dollars are used to invest in American manufacturing and our workforce. It is essential that we close loopholes in our Buy America laws, expand application and product coverage of domestic content rules, and close unnecessary contract waivers that undermine American manufacturing and its workforce.
 
We look forward to working with the Biden administration and Congress on immediately strengthening our domestic procurement laws. The COVID-19 crisis was exacerbated when foreign supply chains broke down leaving our frontline workers vulnerable, underscoring the vital need for America to manufacture essential medical products at home. We look forward to working with the Biden administration on implementing this Executive Order, and with members of Congress to push critical bipartisan legislation to help ensure this onshoring effort is fully realized.

We also sincerely thank Senator Sherrod Brown (D-OH) and Representative Kathy Manning (D-NC) for their leadership in sending a recent letter to President Biden, requesting the president prioritize “Made in America” personal protective equipment (PPE) purchases and outlining key steps the administration can take to produce and procure quality American-made PPE for frontline workers.”

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today welcoming President Biden’s action plan and COVID-19 response, accompanied by a series of executive orders, including an order signed today to strengthen U.S. supply chains by directing federal agencies to use the Defense Production Act (DPA) to address shortages of personal protective equipment (PPE) and related vaccine supplies.

“We are closely reviewing President Biden’s national strategic plan to confront the pandemic and welcome the executive order signed today to strengthen our supply chains by directing all federal agencies to use the Defense Production Act to address shortages of personal protective equipment, vaccine supplies and essential products. These are important steps that will help ramp up critical manufacturing of these essential PPE products and other critically needed supplies like tests and vaccines.”

American manufacturers have been at the forefront of the effort to build a domestic PPE supply chain since the onset of the COVID-19 pandemic. The U.S. textile industry retooled production and operations virtually overnight, producing millions of face masks, isolation gowns, testing swabs and other critical medical textiles.

The industry is dedicated to making significant investments in automated equipment for PPE, but the industry needs long-term, multiyear contracts to help realize that investment.

The deployment of DPA is one of the critical tools that will help incentivize investment in equipment, propel the hiring of U.S. workers and expand these critical production chains.

Since its inception, the DPA has been utilized by the Department of Defense to make critical investments in domestic textile manufacturing infrastructure and capacity, creating private-public partnerships through the government’s capital investments under the DPA and guaranteeing purchases through long-term contracts.  

NCTO applaud President Biden’s action and anticipate further steps including a reported order that will seek to strengthen government procurement of U.S. products in the coming days. NCTO appreciate President Biden outlining the “National Strategy for the COVID-19 Response and Pandemic Preparedness” a series of actions and steps the administration will undertake to deploy and manufacture the vaccine and other essential products.

• Partnership offers customers access to full-scale garment design, manufacturing and packaging

Ascend Performance Materials has announced a commercial agreement with The S Group, a globally recognized provider of apparel design, development and manufacturing. The alliance will focus on commercialization of Acteev Protect™ antimicrobial yarns, fibers and fabrics, offering customers full-scale supply chain service from garment design to delivery.

The agreement pairs Ascend's world-class manufacturing operations with The S Group’s track record of success in the wholesale and direct-to-consumer apparel industry. “Our customers will now benefit from a revolutionary antimicrobial material combined with end-to-end support to guide a product from ideation to actualization,” said Lu Zhang, vice president of Acteev.

The S Group offers complete supply chain management for apparel brands, including product development, manufacturing, logistics, quality assurance, packaging and order fulfillment. The company lists some of the world’s most recognized brands among its partners, including Lululemon, New Balance and Mack Weldon. Athleisure, performance, scrubs, and seamless products such as intimates, leggings, active wear, socks and gaiters will be available.

Gary Peck, CEO of The S Group, says his team is excited about the commercial potential of Acteev, especially given the new reality of global health concerns. “Garment design has primarily focused on functionality, sustainability and comfort,” said Peck. “The past year has made us all aware that safety can be a valuable feature of fabrics as well, and Acteev checks all those boxes.”

Acteev is Ascend’s patent-pending technology that embeds zinc ions in a polymer to create fibers with long-lasting antimicrobial properties. The result is a fabric that destroys odor-causing bacteria and fungi. Acteev technology is available in a wide range of textiles featuring the flexibility, softness and durability of nylon 6,6.

Recent testing on knit fabric completed at the University of Cambridge has demonstrated that Acteev technology deactivates the virus that causes COVID-19, SARS-CoV-2, with 99.9% efficacy on contact1. Ascend is working with the U.S. Environmental Protection Agency, the U.S. Food and Drug Administration and other governmental agencies to obtain the appropriate regulatory clearances to make specific claims regarding the technology’s antiviral properties.

The Bavarian viscose speciality fibres manufacturer Kelheim Fibres has partnered with the European Technology Platform for the Future of Textiles and Clothing (ETP) in two strategic programs: “Bio- Based Fibres” and “Circular Economy”.

Against the backdrop of the increasingly important sustainability debate, fundamental changes inside the textile supply chain are taking place. The two three-year ETP programmes “Bio-Based Fibres” and “Circular Economy” are a clear response to this. The goal is to bring key players from industry and science together to develop a long-term strategy to actively shape the sustainable realignment of the European textile industry.

“We have been manufacturing bio-based fibres for almost 85 years – these fibres are made from the renewable material wood and they are fully biodegradable at the end of their product lifecycle. As an alternative to crude-oil based materials, these fibres are becoming increasingly popular in various applications. Part of the reason for this is the fact that we can functionalize our speciality fibres during the production process and give them the exact properties that are required for different end uses. In terms of performance, they can keep up with synthetic materials”, explains Dr. Marina Crnoja-Cosic, head of New Business Development at Kelheim Fibres.

But Kelheim’s sustainability criteria also include the full life cycle of their products: When a textile, after its use, can become the raw material for new fibres and new products, for Crnoja-Cosic that is a huge advantage in terms of sustainability. “We want the best possible result – bio-based fibres AND circular economy are the way to get there.”

• New level of transparency in the textile industry
• Building on several successful pilot projects with TextileGenesis™, the digital platform for the traceability across the textile supply chain has now been introduced.

The Lenzing Group, a leading company in the area of wood-based specialty fibers, celebrates another milestone on the way to making the textile and apparel industry more sustainable and transparent. Since 2019, Lenzing has been using the blockchain technology powered by the Hong Kong start-up TextileGenesis™ to ensure the traceability of textiles from fiber to production and distribution. After several successful pilot projects, the digital platform was launched on 5 November for TENCEL™ and LENZING™ ECOVERO™ branded fibers. The platform provides customers and partners as well as consumers with an overview across the entire textile supply chain.

With the COVID-19 pandemic, more changes have been brought to the already transforming fashion and textile industries. To date, supply chain traceability has become a top priority for apparel and home brands. With the blockchain-enabled supply chain traceability platform powered by TextileGenesis™, Lenzing supports the entire supply chain in meeting the increasing demand for transparency and sustainability.

Phased onboarding and new digital certificates

A follow-up of a 12-month pilot program and field trials with four leading sustainable brands (H&M, ArmedAngels, Mara Hoffman and Chicks) and supply chain players from 10 countries in three regions, the global roll-out of Lenzing’s blockchain-enabled supply chain traceability platform will be conducted in phases. During the first phase, Lenzing’s supply chain partners based in South Asia (India, Bangladesh, Pakistan and Sri Lanka) will complete the onboarding process within Q4 2020. An estimated 300+ supply chain partners in China and Turkey will also join the program in Q1 2021. It is estimated that by Q2 2021,  most eligible Lenzing supply chain partners will be onboarded into the platform, ensuring full supply chain traceability.

One of the core components of the platform powered by TextileGenesis™ is integration with the Lenzing EBranding fabric certification system, which allows brands and retailers not only to access the full supply chain traceability for TENCELTM and LENZINGTM ECOVEROTM branded fibers but also to view the results of forensic (physical) verification of fabric samples via the digitally signed Lenzing E-Branding fabric certificates. “

Over the past year, during the pilot program and field trials we have been receiving very positive feedback from brands and supply chain partners. Our brand partners have also been encouraging us to accelerate the global roll-out for traceability of Lenzing fibers. With this new system and the integration with Lenzing E-Branding fabric certificates, the entire Lenzing ecosystem will create an unprecedented level of transparency. This will provide consumers with the most sustainable and climate-friendly clothing and home textile products that are made of TENCEL™ or LENZING™ ECOVERO™ branded fibers”, says Robert van de Kerkhof, Chief Commercial Officer and Member of the Board at Lenzing.

“With increasing compliance and reputational risks, CEOs and Boards of top 100 fashion brands have committed to using 100% sustainable and traceable fibers over the next 5 years, with transparency being a core part of business priorities. Sustainability and traceability are two sides of the same coin, and it’s great to see Lenzing paving the way for the entire fashion industry to follow. Our supply chain traceability platform will create digital accounting for Lenzing’s innovative and sustainable fibers across the entire supply chain using Fibercoins™ traceability technology”, says Amit Gautam, Chief Executive Officer and Founder of TextileGenesis™.

Fibercoin™ technology to ensure traceability across supply chain

Through using the innovative Fibercoin™ technology of the TextileGenesis™ platform, Lenzing and other brand
partners are now able to issue digital tokens (blockchain assets) in direct proportion to the physical shipments of TENCEL™ and LENZING™ ECOVERO™ branded fibers. These digital tokens provide a unique “fingerprint” and authentication mechanism, preventing adulteration, providing a more secure, trustworthy, digital chain-of custody across the entire textile supply chain, and most importantly, ensuring the materials are sustainably produced.

• Conservation and Biodiversity Information Now Available

Asia Pacific Rayon’s (APR) Follow Our Fibre is a blockchain-based tool that allows users access to information in real-time on the source of the raw materials in their garments and the origination of the fibre.

Launched in May 2019, the platform is now refreshed to include information of its suppliers’ conservation and biodiversity efforts, taking information transparency and richness to a new level. The refresh comes at a time when the fashion industry, through the Fashion Pact, is beginning to embrace biodiversity as a core focus on its agenda.

Follow Our Fibre now maps APR’s supply chain right down to locations of forest plantation concessions and conservation areas. The textile fibre producer’s suppliers are collectively responsible for the conservation of more than 3.12 million hectares of forests around the world, including boreal and peat swamp forests. These protected forests have rich biodiversity like the elusive Sumatran Tiger and Canadian Boreal Caribou, and provide ecosystem services, including 22 rivers and tributaries totalling over 900km.

“It is vital that we work with our supply partners to protect and strengthen forest landscape conservation areas rich in flora and fauna, and home to threatened and endangered species for today and future generations. These efforts are part of APR’s commitment to the United Nations Sustainable Development Goals (UNSDGs) 13 on Climate Action, and 15 on Life on Land,” said Cherie Tan, Vice President of Sustainability and Communications.

By providing a snapshot of the forest landscapes and biodiversity, APR hopes to quantify its ecological footprint and, as a next step, seek opportunities to partner its stakeholders to further strengthen forest conservation and enhance biodiversity in areas it sources from. Follow Our Fibre reflects the company’s long-term objectives for sustainable pulp sourcing and responsible manufacturing, and is a tool for its customers and stakeholders to trace finished products back to forest plantation origins, as well as monitor the environmental performance of APR’s supply chain.