From the Sector

The Lenzing Group, a leading provider of wood-based specialty fibers, is expanding its global clean electricity portfolio by gradually transitioning to green energy at its production site in Nanjing. This will enable its Chinese subsidiary Lenzing Nanjing Fibers to use electricity derived solely from renewable sources from 2023 onwards and reduce the site’s carbon emissions by 100,000 tonnes annually. Lenzing only recently announced the transition to green electricity at its Indonesian production facility.

In 2019, Lenzing became the first fiber producer to set a target of halving its carbon emissions by 2030 and becoming climate neutral by 2050. This carbon reduction target has been recognized by the Science Based Targets Initiative. In Nanjing, Lenzing is currently investing in cutting its carbon emissions and converting a standard viscose production line to 35,000 tonnes of TENCEL™ branded modal fibers. Thanks to this move, the Chinese site will exclusively produce eco-friendly specialty fibers.

The company aims to generate more than 75 percent of its fiber revenue from the wood-based, biodegradable specialty fibers business under the TENCEL™, LENZING™, ECOVERO™ and VEOCEL™ brands by 2024. With the launch of the lyocell plant in Thailand in March 2022 and the investments in existing production sites in China and Indonesia, the share of specialty fibers in Lenzing’s fiber revenue is set to exceed the 75 percent target by a significant margin as early as 2023.

Adient, a supplier of seating systems for the automotive industry, has entered into a cooperation with Swedish steelmaker H2 Green Steel (H2GS) to reduce the carbon footprint in its value chain.
 
On 1st September Michel Berthelin, Executive Vice President Adient EMEA, and Henrik Henriksson, CEO of H2 Green Steel, have mutually signed an agreement to supply fossil-free steel with low carbon footprint from 2026 on and subsequently use it in Adient's metal products.

Michel Berthelin explains the background to the cooperation: “As a company, we are committed to the Science Based Targets Initiative, a collaboration between leading global institutions to set a science-based climate target. We also support the Carbon Disclosure Project, which helps companies and cities to understand and disclose their environmental impacts. The decision to shift parts of the steel volume sourced for our production to a steel with low carbon footprint is part of our sustainability strategy. It is our goal to reduce emissions at our production sites that are caused directly by our own sources or indirectly by our energy suppliers by 75% by 2030. In parallel, we aim to reduce emissions along our supply chains by 35% over the same period. In doing so, Adient actively fosters the industry's transformation towards a more responsible use of natural resources.”

Steel from H2 Green Steel is produced with up to 95% less CO₂ emissions compared to conventional steel production. The company achieves this by replacing coal with green hydrogen in production and by the use of electricity from non-fossil sources. In this way, mainly water and heat are produced as waste products.

• Gradual transformation of production capacities to LENZING™ ECOVERO™ and VEOCEL™ branded specialty viscose

The Lenzing Group, provider of wood-based specialty fibers, is expanding its global clean electricity portfolio and transitioning its production site in Purwakarta to green electricity. The Indonesian subsidiary PT. South Pacific Viscose (SPV) has been using electricity generated solely from renewable sources since July this year, which will reduce its specific carbon emissions by 75,000 tonnes annually.

In 2019, Lenzing became the first fiber producer to set a target of halving its carbon emissions by 2030 and becoming climate neutral by 2050. This carbon reduction target has been recognized by the Science Based Targets Initiative. In Purwakarta, Lenzing is currently investing in the reduction of carbon emissions, as well as air and water emissions. Thanks to its EUR 100 million investment in this area, Lenzing is gradually transitioning its existing capacities for standard viscose to LENZING™ ECOVERO™ and VEOCEL™ branded specialty viscose.

“Demand for our wood-based, biodegradable specialty fibers is constantly rising. We see enormous growth potential, especially in Asia. The switch to green, renewable electricity marks a huge step forward in converting our Indonesian site into a specialty fiber supplier. This makes us better positioned to meet the growing demand for sustainably produced fibers,” comments Robert van de Kerkhof, Chief Commercial Officer for Fiber at Lenzing.

The company aims to generate more than 75 percent of its fiber revenue from the wood-based, biodegradable specialty fibers business under the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands by 2024. With the launch of the lyocell plant in Thailand in March 2022 and the investments in existing production sites in Indonesia and China, the share of specialty fibers in Lenzing’s fiber revenue is set to exceed the 75 percent target by a significant margin as early as 2023.

• Joining Science Based Targets initiative

ith its Advance Sustainability Strategy 2025 launched in 2018, Autoneum defined ambitious goals in the areas of environment, society and governance. In the past year, significant quantitative and qualitative improvements were achieved, as shown in the Corporate Responsibility Report 2021 published today. For example, CO2 emissions were reduced in 2021 and the proportion of reused production scrap (recycling) was significantly increased.

Following Autoneum’s decision last year to extend its environmental targets with quantifiable targets for all direct and indirect greenhouse gas emissions and a time horizon to 2027, the Company has recently signed the declaration to join the Science Based Targets initiative (SBTi). Autoneum acknowledges the urgent need for action and will submit its ambitious, science-based targets to the SBTi to reduce CO2 emissions in the near term. In addition, Autoneum is reporting its Scope 3 emissions in full for the first time. In line with the strategic goal of continuously reducing electricity purchases from fossil fuels and replacing them with renewable energies, ten plants worldwide were converted to renewable energies in 2021.

In the past year, Autoneum again implemented a large number of projects in the areas of “Sustainable Products and Production Processes”, “Fair and Attractive Workplace”, “Good Corporate Citizenship” and “Responsible Supply Chain Management”: 29 eco-efficiency projects with a focus on materials efficiency and recycling contributed to more environmentally friendly production and correspondingly more sustainable components worldwide. The result was a significant reduction in waste and a further optimization of processes for a range of products. Moreover, new eco-efficient products were successfully launched on the market.

A complete overview of all targets and activities during the past year can be found in the Corporate Responsibility Report 2021.

Over 400 employees work hard every day to improve the environmental performance of Radici Yarn’s site. Through teamwork and continuous improvement in energy efficiency, Radici Yarn has obtained ISO 50001 Energy Management Systems certification, which attests to the organization’s commitment to contain and progressively reduce energy consumption.

Radici Yarn, one of the companies in the RadiciGroup Advanced Textile Solutions Business Area, is engaged in the production and sale of polyamide 6 polymer, PA6 and PA66 continuous filament and staple yarn, and other synthetic fibres, including products made of recycled or bio-based materials.

All the processes - polymerization and spinning (Villa d'Ogna plant), as well as warping and draw-warping (Ardesio plant) - are run under constant monitoring with the goal of achieving maximum energy efficiency and lower consumption. Both sites are powered by two hydroelectric power plants owned by Geogreen, a RadiciGroup partner and energy supplier. The share of energy consumption from renewable sources and reduced environmental impact (natural gas) sources  is constantly increasing.

The energy issue has always been a priority for Radici Yarn, whose products serve numerous sectors, including automotive, clothing and furnishings.

"Already at the beginning of the 1990s, Radici Yarn started investing in cogeneration, the simultaneous production of electricity and steam,” pointed out Laura Ravasio, energy manager of Radici Yarn SpA. “We have recently started up an advanced trigeneration plant – a highly efficient system that produces not only electricity and steam, but also chilled water for our production processes. One of the first results recorded in 2021 was a 30% reduction in water consumption. Thus, ISO 50001 certification seemed like the next logical step to take in formalizing a long-term approach to energy.”

The ISO 50001 certification, which is voluntary and valid for a period of three years, was added to the ISO 14001 Environmental and ISO 9001 Quality Management system certifications previously achieved by Radici Yarn.

Indorama Ventures Public Company Limited issued a THB 10 billion triple-tranche Sustainability-Linked Bond, showcasing the company’s long-standing commitment to sustainable growth. It is the largest SLB issued in Thailand and the first offered to both institutions and high-net-worth investors.

The bond is part of IVL’s financing strategy across a range of instruments linked to the company’s sustainability targets. It is aligned with internationally accepted standards including International Capital Markets Association’s (ICMA) Sustainability-Linked Bond Principles and the Loan Market Association’s (LMA) Sustainability Linked Loan Principles.

The SLB is linked to IVL’s performance of reducing GHG emissions intensity by 10% by 2025 (from a 2020 base), increasing recycling of PET bale input to 750,000 tons per year by 2025, and achieving 25% renewable electricity consumption in 2030.

The triple-tranche structure includes 5-, 7-, and 10.5-year tenors, offering coupons of 2.48%, 3.00% and 3.60% per year respectively, targeting asset managers, commercial banks, insurance companies, cooperatives and high-net-worth individuals. With the orderbook peaking at over THB 17.8 billion due to strong interest in the sustainability-linked instrument, oversubscription was around 3x over the planned issuance amount of THB 6 billion with a green shoe option of THB 4 billion. In view of the strong orderbook from the investors, the company decided to exercise the green shoe option and increased the issuance to THB 10 billion, setting a new benchmark as the largest SLB transaction in Thailand. IVL appointed Bangkok Bank, Kasikorn Bank, Krungthai Bank, Siam Commercial Bank, and The Hongkong and Shanghai Banking Corporation Limited, Bangkok Branch as arrangers and bookrunners for the transaction.

On 23 September 2021, the bond was assigned an AA- rating and a “stable” outlook by TRIS Rating following a strong recovery of petrochemicals and derivatives and IVL’s growing profitability.

Under the terms, all tranches must purchase Energy Attribute Certificates (EAC) or voluntary carbon offsets in the event of failure to meet the sustainability performance targets (SPT). The testing dates for tenors with a maturity of 5 and 7 years are 31 December 2025, and 31 December 2030 for the 10.5-year tenor. SPT performance will be independently verified upon the testing dates.Proceeds for the issuance will be used to finance IVL’s corporate working capital and refinance existing debt.

In recent years, IVL secured loans linked to improvements in the company’s sustainability performance as a global leader in environmental, social and governance (ESG) integration. These included Thailand’s first Green Loan of USD 200 million and EUR 200 million from Japan’s Mizuho Bank, Thailand’s first cross-border Sustainability-Linked Ninja Loan worth USD 225 million from 16 institutions in Japan and a Blue Loan of USD 300 million arranged by International Finance Corporation and funded by Asian Development Bank and DEG.

Marabu is one of the first ink manufacturers to achieve climate neutrality. All Marabu Business Units will, where possible, make a specific contribution to achieve the 17 United Nations Sustainable Development Goals (SDGs) with PROJECT GREEN and therefore participate in the Green Deal.

"We are safeguarding the future of the next generations and are proud that we have managed to be a climate neutral company from July 2021 with the Tamm and Bietigheim sites. All our products, whether printing inks or creative colours, are climate neutral, too," explains York Boeder, CEO Executive Committee. "Our so-called PROJECT GREEN combines all measures that are taking us on our journey to climate neutrality. Climate protection is a particular concern for us, to which we have made a binding commitment within the scope of an extensive sustainability strategy. In accordance with our Marabu Green Deal, we avoid and reduce emissions wherever possible, e. g. by using green electricity, energy-saving schemes, mobility concepts or environmentally friendly materials. We offset all unavoidable CO2 emissions by supporting internationally certified climate protection projects. We are continually implementing measures to improve our carbon footprint and update them annually to make their success measurable. We have therefore set ourselves the active goal of reducing our CO2 emissions by another 25 % by 2030."

For decades, Marabu has invested in the research and development of safe production processes, environmentally friendly products, and clean technologies with the aim of preserving the natural environment. Marabu has worked with Climate Partner to analyse all the CO2 emissions from the sites in Tamm and Bietigheim and determine its carbon footprint. Including all product-related factors such as raw materials and logistics, Marabu currently generates approx. 18,500 tons of unavoidable CO2 emissions. This value is the positive result of a number of climate-friendly measures pursued by Marabu, such as the early switch to green electricity in 2007.

Marabu's main activities to avoid and reduce CO2 emissions:

• Energy - Switching to green electricity from hydropower
• Mobility - Migration of the company's vehicles to electric and hybrid cars as well as in e-charging stations
• Production - Use of renewable energies and resource-efficient production processes
• Raw materials - Replacing critical substances with environmentally friendly alternatives for new and existing products
• Transporting - Climate-neutral freight carriers and lower-emission transport methods like shipping or road transport replace air freight wherever possible
• Product technology - Modern, low-emission products

The Lenzing Group scored a total of 30.5 points (4 points more compared to last year) and received for the first time a leading dark green shirt, the highest Hot Button ranking category. Lenzing once again convinced the non-profit organization Canopy with its innovative vision with regard to circular economy and REFIBRA™ technology, its high level of transparency in wood and pulp sourcing, as well as its active contribution towards protecting forests and preserving biodiversity.

In this widely recognized ranking, Canopy grades the world’s 31 largest producers of wood-based fibers with respect to their sustainable wood and pulp sourcing, their efforts with regard to using alternative non-wood feedstock and their achievements for lasting conservation in critical forests round the globe.

Leading in sustainable sourcing with a decade-long clean record
Wood and pulp are the most important raw materials for Lenzing’s sustainable production of cellulosic fibers. The Lenzing Group is particularly proud of its decade-long clean record of sustainable wood sourcing, evidenced by its long-standing credible commitment to wood certification, which Lenzing pioneered already in the 1990s. Lenzing’s commercial wood sources are  100 percent either certified by FSC® or PEFC™, or controlled in line with FSC® standards.

Social impact and afforestation project in Albania
At the backdrop of Lenzing’s long history of clean sourcing, the company is even more aware that the global forests are seriously threatened by illegal logging and deforestation but also by the consequences of climate change. This is why Lenzing – in addition to supporting a number of Canopy’s conservation projects – has set up a social impact and afforestation project in Albania (Southern Europe).*

Special focus on sustainable plantations in Brazil
For its latest investment in a pulp mill in Brazil, Lenzing actively collaborates with Canopy to ensure that the wood sourcing is in line with sustainable practices. The plant will be among the highest productive and energy-efficient facilities in the world and will feed the 40 percent excess bioelectricity generated on site as “green energy” into the public grid.*

REFIBRA™ technology: Commercially available since 2017
As a long-standing player in the industry, Lenzing has undertaken extensive research into many different alternative non-wood cellulose sources such as annual plants, like hemp, straw, and bamboo. Until now, textile waste has turned out to be the most promising alternative feedstock for scaled commercial use.
Lenzing’s lyocell fiber produced with the breakthrough REFIBRA™ technology (Eco Cycle technology for nonwoven applications) uses textile waste as part of the feedstock and is an important step towards a circular economy.*

50 percent recycled content by 2024
It is Lenzing’s vision to make textile waste recycling a common standard process like paper recycling and to offer fibers produced with REFIBRA™ technology with up to 50 percent recycled content from post-consumer waste by 2024.

*Please read attached document for more information

• Italian expertise, research and green innovation.
• METALBOTTONI ups the stakes with one-of-a-kind interpretations, to enhance its market presence.

At Première Vision Accessories (Paris, 19-21 September) the company presents the new collection VÀNITA, a mix of leatherwear and sportswear, based on Made in Italy craft, with an increasingly wide and coordinated range.

Based on product experience, combining new trends in accessories. The METALBOTTONI strategy is enriched with product novelties which aim at exploring new existing market segments. A strategy which increasingly leads great artisan production skills to meet constant research and expansion of the range, with the world of sportswear becoming more and more pivotal; without forgetting the important sustainable innovations of the NO IMPACT protocol.

No Impact becomes “Committed Accessories”

The guideline for restyling the METALBOTTONI range over the past two years has been the recent implementation of the NO IMPACT corporate sustainability protocol, which has just acquired a new “dress”, associated with the following pay-off: “Committed Accessories”. It is a way of underscoring the constant green development of the company over the past few years, in terms of process and product: use of recycled raw materials, development of finishing without chemicals, implementation of processes which today have allowed to reduce electricity and water consumption to almost zero.

Moreover the range of NO IMPACT proposals for this season has expanded to include not only new metal finishing but also leather label completely made from processing scrap, thus establishing Metalbottoni as “partner for branding elements” also in terms of sustainability. Pure Made in Italy and constant expansion of collections towards sportswear The great skill in metal processing, which for sixty years now has characterised the top-of-the-range quality of METALBOTTONI products, is now combined with constant research work conducted by our in-house Style Office, resulting in new collections which are more and more in line with the trends emerging from major trade fairs. Maintaining a presence on strong markets (central Europe, Northern Europe and United States), increasing the depth of segments and intercepting new ones. This is the main goal also chosen for the Première Vision Accessories Exhibition where, alongside the autumn-winter 2019/2020 collections, there will be a preview of VÀNITA, the new collection dedicated to leatherwear and more.

METALBOTTONI is proving to be one of the most dynamic companies in the accessory industry.

Over the past two years, in fact, it has introduced numerous product and process innovations, aiming at increasing its range especially as regards sportswear accessories. This trend was driven by a substantial increase in demand by read-to-wear and luxury brands in the past two seasons, and today it means new proposals which account for 35% of the range for METALBOTTONI. New collections have been presented in the past two seasons expressly dedicated to the sportswear world, namely GRAVITA, the first line designed by the company for pressure buttons, and MÀRYA, the new beachwear collection. Also the line called LABORA, the classic collection of accessories for fashion and ready-to-wear has been constantly enhanced with proposals combining style and technical performance. This mix of fashion and sport elements is increasingly evident in the company’s product range, for example in the combination of different materials, using metal with nylon or other resins to create new and unique accessories.

Vànita: beyond leatherwear, a world of accessories

The meeting between fashion, luxury and sportswear has produced VÀNITA, the brand new collection which presents a new approach to accessories dedicated to leatherwear, from an allround perspective from luxury to sportswear. Developed starting from solid product research by the company’s in-house Style Office, VÀNITA is a true meeting of styles and elements, a combination of high product standards with unique elegance. This line introduces one-of-a-kind visions for accessories, exploring highly original pathways dedicated to the world of leather. The VÀNITA proposal ranges from accessories for leatherwear and small leatherwear, to those for shoes, bags and the sportswear worlds. There are two main lines within this collection: one is expressly designed for the world of luxury, the other has a more technical and sporty approach. A true mix between artisan metal processing, based on the great METALBOTTONI expertise in this sector, and “ingredients” such as nylon, rubber finishes or innovative 3D processing, which are often combined together.

“Our goal is to offer an increasingly comprehensive range which allows us to explore new segments on the markets where we are present” - says Gregorio Valli, CEO and President of METALBOTTONI S.P.A – “a ‘recipe’ which should be able to integrate our unmatched product expertise with a constant expansion of our range and continuous implementation of our pathway towards corporate responsibility and sustainability”.