# Prove wood-based fibre origin from source to store rail

> Austria's Lenzing AG, together with Hong Kong-based TextileGenesis, issues digital tokens known as Fibercoins in direct proportion to the volume of TENCEL and LENZING ECOVERO fibre shipped. Every downstream tier passes the tokens along with the goods, so no more branded fibre can ever be declared than Lenzing actually delivered. The platform launched on 5 November 2020 and is, according to Fashion for Good, used across more than 1,500 fashion supply chains.

**Sector:** Secondary sector · **Industry:** Textile and clothing industry · **Organisation:** Lenzing AG · **Maturity level:** Production

Canonical URL: https://www.sapientblock.com/en/use-cases/lenzing-holzfasern-bis-kleiderbuegel-nachweisen

## Documentation status

- **Project status:** Production
- **Evidence:** Evidence medium
- **Editorial review:** pending

## Description

The Austrian company Lenzing AG, together with the Hong Kong-based company TextileGenesis, demonstrates how much of their branded fibres are actually contained in a garment. Between the fibre producer and retail lie spinning, weaving, finishing and garment manufacturing in various countries, during which branded fibres may be mixed or replaced by cheaper alternatives. Because conventional certificates relate to operations and not to specific quantities of goods, sustainability claims could not previously be physically verified.

Lenzing has been using the technology in pilot projects since 2019 and launched the platform on 5 November 2020 for the brands TENCEL and LENZING ECOVERO. The process works via so-called Fibercoins: when shipping fibres, Lenzing issues digital tokens in direct proportion to the physically delivered quantity. Each subsequent stage passes these tokens on together with the goods, so the quantity balance is maintained throughout the entire chain and it is never possible to declare more branded fibre than was actually delivered. The process is complemented by Lenzing's E-Branding fabric certificates, which set additional checkpoints at critical points in the chain. According to Fashion for Good, the platform is used in more than 1,500 supply chains in the fashion industry; TextileGenesis also participates in Fashion for Good's Viscose Traceability project with BESTSELLER and Kering, supported by Zalando. The crucial difference from traditional certifications is that a specific quantity of goods, not an operation, is proven.

## Benefits

- Reliable basis for sustainability claims towards retail and regulators.
- Protection of own branded fibres from substitution by cheaper alternatives.
- More reliable sustainability claims when buying clothing.
- Branded fibres are proven by precise quantities rather than just by operation.
- False declarations are computationally impossible because there can never be more tokens than goods.
- According to Fashion for Good, the platform is used in more than 1,500 supply chains.
- Lenzing's E-Branding fabric certificates complement the digital proof at critical points.
- Continuous quantity balance instead of isolated operational certificates.
- Clearer decision-making basis in material purchasing.

## Challenges

- Connecting many small processing companies in various countries is complex.
- All processing stages from spinning to garment manufacturing must participate to keep the balance closed.
- The allocation between physical batch and tokens must be maintained at every stage.
- The proof applies to the quantity, not to the physical identity of an individual fibre.
- Processing companies must reliably integrate token transfer into their workflows.

## Technology foundation

The solution is based on the TextileGenesis platform, which issues blockchain-supported tokens, so-called Fibercoins, as a digital representation of a physically delivered fibre quantity. A distributed ledger is central here because the tokens are passed on through many independent processing stages in various countries, and none of these stages should be able to alter the quantity balance retrospectively.

## Sources

- [New level of transparency in the textile industry: Lenzing introduces blockchain-enabled traceability platform](https://www.lenzing.com/newsroom/news-events/new-level-of-transparency-in-the-textile-industry-lenzing-introduces-blockchain-enabled-traceability-platform/)
- [Meet the Innovator: TextileGenesis](https://www.fashionforgood.com/our_news/meet-the-innovator-textilegenesis/)