Download - Time to act! - UNECE
13.11.2018 - 1www.lenzing.com
Robert van de Kerkhof, Lenzing AG, Chief Commercial Officer
November 6th, 2018
Time to act!
13.11.2018 - 2www.lenzing.com
Fibers form a fundamental basis of everyday life
Providing solutions
to technical
challenges…
…and
saving
lives
Pictures: Lenzing; Shutterstock
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Impossible
to imagine
a world
without
textiles…
…comfort
and
protection
they
provide
Fibers form a fundamental basis of everyday life
Pictures: Lenzing
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Global fiber marketGlobal fiber consumption 2017
Source: ICAC, CIRFS, TFY, FEB, Lenzing estimations
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Fiber demand growing at 3-4 % p.a.
60
0
10
20
30
40
50
70
80
90
100
110
120
2000 2005 2010 2015 2020
Million
metric tons
Expected growth of global fiber demand until 2020
Synthetics
Wood-based fibers
Cotton
Other natural
Sources: ICAC, The Fiber Year 2018, Lenzing data
5-6% p.a.
1-2% p.a.
Synthetic fibers
(64%)
Cotton (25%)
Wood-based
fibers1 (6%)
3-4% p.a.
CAGR
(2015e – 2020p2)
3-4% p.a.
1 Wood-based and cotton linter-based cellulose fibers - Viscose, Modal, Lyocell and other (acetate, cupro) both staple fiber and filament2 Projected
Total fiber market
106 m tons
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Population growth and higher purchasing power in the emerging markets will continue to drive overall Textile growth
GDP growth,
In USD ths per capita
Population,
In bn
Textile fiber
consumption,
In kg per capita
Industrial world Developing world
1,221,161,08
+0,6% 6,485,715,02
+1,3%
+3%
50.0342.0728.33
+8%
6.213.771.24
+1%
2020
31.53
2010
30.21
2000
27.46+6%
2020
16.60
2010
8.52
2000
5.60
Overall fiber market growth drivers
Sources: World Bank, IMF, ICAC, Gherzi
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… as well as the increasing the pressure on the environment
Less than 1% of global water
resources is available as fresh
water for people
Arable land is decreasing due to
erosion and urbanization
Oil is a finite resource causing
negative externalities
• Sooner or later “peak oil” will be
reached
• New sources can only be tapped
by taking high ecological risks
• But water consumption is rising
due to population growth and
changing consumption habits
• With a growing global population,
this intensifies the competition for
farm land
13.11.2018 - 9www.lenzing.com
Source: Changing Markets Foundation
The textile industry is the second most polluting industry after
the petrochemicals
www.lenzing.com 4/11/2018- 10
Picture: Shutterstock
Source: *1 National Geographic
9 million tons of plastic waste ends up in the ocean every year*1
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Picture: Shutterstock
Source: *1 “The price of fast
fashion”, Nature Climate
Change, Vol 8, Jan 2018
Textile industry producing 1.2 billion tons of CO2 equivalents every year*1
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Picture: Shutterstock
Source *1 Global Fashion Agenda
& BCG Inc. – Pulse of the
Fashion Industry
The anticipated total fashion waste in 2030 anticipated to reach148 million tons*1
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BUT…We have options
We, the textiles value
chain, have the
opportunity to avoid
fashion being positioned
as “wasteful, frivolous
consumption”,
while meeting the
expectations of the
consumers!
13.11.2018 - 14www.lenzing.com
As pollution and environmental crisis are forcing us to re-think our economy
• Effective use of resources and with a move to alternative,
renewable materials
• Transform the way we use & consume resources and
creating waste
• Innovate:
• Business models: Radically improve recycling and
move to a circular economy
• Technology: i.e. carbon capture & utilization; a move
to renewable energy
• Focus & speed
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The Lenzing Group 2017
● Lenzing with best financial year in history
● Group revenue up 5.9 percent to EUR 2.26 bn
● EBITDA up 17.3 percent to EUR 502 mn
● ROCE at 18.6 percent
● Strong balance sheet
● Retail bond redeemed (EUR 120 mn) on
September 27, 2017
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Our vision
● Our passion is to make sustainable fibers
available to the growing world.
● This creates more positive impacts and
benefits for people and the planet.
● It also ensures our economic success.
Sustainability is the key foundation to our corporate values
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Where does Lenzing fit in?
Cellulose, Casein, Silk
Cotton
PBS, PVA,
PGA
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● Natural and renewable origin: Cellulose from wood is our bio-based and renewable raw material
● Responsible sourcing: Guaranteed by exclusively certified & controlled wood and pulp sources
● Clean technologies: Due to high resource efficiency and closed loops
● Sustainable innovations: Providing specialties and forward solutions that are better than market alternatives
● Stakeholder engagement and collaboration: provides benefits to our customers
● End of life solutions: Our biodegradable and compostable fibers avoid waste problems in society
● Holistic thinking and evidence: Sustainability of fibers is confirmed by LCA, certifications and awards
Lenzing‘s cellulose cycle
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Dissolving wood pulp consumes only about 0,5 % of the global wood harvest
Certification status of the total wood & pulp consumed by Lenzing
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Lenzing™ EcoVero™ - The new standard in eco-responsible viscose!
● Lenzing™ EcoVero™ fibers are the innovative and
unique answer to the increasing demand
for sustainable products along the textile
value chain
● Worldwide highest environmental standards
in the viscose production relying on three major
pillars
● Use of certified and controlled wood
(FSC®, PEFCTM)
● Sustainable production process proven by third
parties (Higg index, EU Eco label)
● Innovative identification system allows everyone
in the supply chain transparency in all
processing steps (yarn, fabric, ready made
garment)
● Lenzing™ EcoVero™ fibers are positioned as
specialty fibers in the viscose segment
Note: “These Results were calculated using the Higg Material Sustainability Index (Higg
MSI) tools provided by the Sustainable Apparel Coalition. The Higg MSI tools assess
impacts of materials from cradle-to-gate for a finished material (e.g. to the point at which the
materials are ready to be assembled into a product). However, this figure only shows
impacts from cradle to fiber production gate. Lenzing™ EcoVero™ branded viscose fibers’
Higg MSI score was calculated based on Lenzing fibers which are already in the Higg MSI.”
0
5
10
15
20
25
30
EcoVeroTM Viscose generic
MS
I sco
re,
po
ints
/kg
fib
er
Fossil resource depletion
Water Scarcity
Eutrophication
Global warming
LenzingTM EcoVeroTM Viscose generic
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Networking & Partnering for systemic change
Textile value chain
Brands & Retailers
Consumer
Investors
Multi-governmental initiatives Governments
Raters Multi-stakeholder initiatives
NGO’s
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As leaders we must not be tarnished by the bad players, but rather
leave them behind and show a different way forward…making the fiber
industry a highly functional, emotional, exciting and responsible
industry
What are you prepared to commit to?
● We, as an industry, need to close the
loop to actively and collectively
engage on these challenges
● Set high standards, carve out a
space for the best companies to be
recognized as the leaders
● Show consumers that responsible
fashion is possible
● Change starts with you!
● We can change and determine the
way and amount of goods and
services we consume
● Know what your clothes are made
from, be a conscious buyer,
As Industry? As Individuals?