Innovation

Looking into the company Lenzing the specific innovation that is focused is on the production of fibers which are produced from wood pulp from specific sourced managed forests. When Lenzing was established in 1938 they evolved their processes and production to be environmentally balanced. When we look deeper into the production of fibers they are produced in a closed-loop operation where water is reduced and recycled and waste is reduced which is a proven way of sustainable manufacturing. Lenzing has also put a focus on advancing their technology to ensure that their fibers are biodegradable that decompose naturally. 

Looking into the UN SDGs, Lenzing is specifically touching on two with this innovation. Sustainable Development Goal (SDG) 12: Responsible Consumption and Production is being supported by the innovation in how fiber is produced, and the water and waste reduction. Lenzing also contributes to SDG 13: Climate Action, by addressing climate change through lowering carbon emissions and using less water. Lenzing has commitment and future innovation for environmental innovation and responsibility, this ensures that the SDGs that are being touched on are not temporary and will continue to have a long term effect to make the world better.

Inspiration

The inspiration originated from nature. The company views life itself as the greatest innovator; as the world is constantly changing and resources are limited, we are compelled to innovate. Lenzing considers sustainability not just a goal but its "Driver of Innovation." The textile industry is projected to reach $143.7 billion (USD) in 2024 and employs one of the largest labour forces in the world. The ability to impact such a significant industry creates opportunities to positively influence large numbers of people every day. Over time, Lenzing has aligned its practices with the Sustainable Development Goals (SDGs) set by the United Nations. Minimizing waste, carbon emissions, and plastic usage is crucial for fostering environmental responsibility in the textile industry while pursuing growth.

After our interview with Krishna Manda, he asked us about our views on sustainability and its potential alignment with our career paths. Initially, we thought it wouldn’t have a significant impact since we see ourselves in the finance field. However, Krishna quickly pointed out that incorporating sustainability into decision-making can be one of the biggest drivers for change. 

Overall impact

The innovation that is stated above has many short-term and long-term effects on the environment. In the short term, the production has led to a significant reduction of water waste by 95% said Krishna Manada. Specifically closed-loop production ensures that almost 99% of the waste is being reused and recycled which minimizes pollution. The benefits that come from adopting these techniques include reducing the company's carbon footprint and encouraging other companies to adopt the same strategies. Since wood and pulp are the main sources for their production there are many long-term benefits. Lenzing ensures that their wood is from certified or controlled sustainable forestry. As said from the website more than 99% of the wood used at their own site is certified and controlled. This leads to the long-term benefit of reducing deforestation through sustainable methods. Both of these methods have long-term benefits of sustainability for the environment, by reducing carbon footprint, reducing waste and carbon emissions. Lezing is also positioning itself to be a company that promotes a circular economy. The result of their commitment to sustainability has led to an increase in sales and demand for its fibres by 25%, said the website. Overall Lenzing's strategies and adoption of sustainability can and will create a ripple effect for other companies and brands.  

Business benefit

Due to Lenzing implementing many sustainable practices in fibre production, this has benefited the business in many ways. This has led to a 25% increase in demand and sales as well as an increase in revenue of 27.5% due to their sustainability, said the website. This increase has led to the company being able to stretch into new markets and create the opportunity for more future partnerships. These partnerships allowed for the first circular-based fashion collection to be made which led to a huge milestone for Lenzing from the website. Not only did the partnerships allow for milestones and collaboration to be used, but it also allowed for new products to be created through sustainability. As Lenzing is reducing its carbon emissions, carbon footprint, and waste this has led to them being named sustainability champion for the second time said from EcoVadis. Lenzing has also hired over 1000 new employees due to their need for higher skills and assistance in innovation production. With the new hiring, Lenzing has also implemented programs that focus on the well-being of their employees. New investment opportunities have also become available to Lenzing, as they are now attracting environmentally conscious investors which contribute to their current and future innovations. Overall the new sustainable production and environmental balance have provided Lenzing many benefits as provided above. 

Social and environmental benefit

The innovation that Lenzing has implemented in their company has allowed for many benefits for society other than the most significant benefit of a better environment. As Lenzing is expanding its company due to the increase in demand, sales, and revenue this means creating more job opportunities for individuals. Not only does it create more jobs but it creates better labour standards as Lenzing uses ethical practices throughout its supply chain due to the innovation of sustainability. Another benefit for society is consumer awareness of Lenzing fashion products. Lenzing provides in-depth and transparent information for the whole process of their products including the sourcing and production process allows for the company to educate its consumers. Lenzing does not only attract consumers who put a focus on sustainability but they attract environmentally conscious investors, this allows for the society to have more companies that are environmentally balanced to invest in. Lastly, Lenzing provides the benefit of being a “role model” for society and other companies, to adopt their sustainability practices. 

The Lenzing Group's innovative approach provides significant benefits to our planet by prioritizing sustainable options in all aspects of their business. This commitment spans from resource gathering and production to distribution, ensuring they do their utmost for the environment. Their emphasis on sustainable farming and production practices sets a benchmark for the industry, optimizing processes to minimize waste at every stage of manufacturing, thereby reducing contributions to landfills worldwide.

Thanks to their closed-loop products, all utilized materials are minimized and repurposed, leading to a lower environmental impact. Furthermore, as a major production company, Lenzing's greatest contribution to the environment is its efforts to reduce its carbon footprint and mitigate negative environmental effects.

Interview

Krishna Manda, Vice President of Sustainability