Displaying items by tag: Sustainability
Carbon Trust validates Cemex’s 2030 CO2 reduction roadmap
30 September 2020Mexico: Cemex says that Carbon Trust has validated its roadmap to decarbonise global operations in line with the Sectoral Decarbonisation Approach (SDA) 2-degree scenario (2DS) developed by the International Energy Agency (IEA). The validated roadmap is intended to help the company to achieve a 35% reduction of net carbon emissions by 2030. The findings validate Cemex's roadmap for reducing Scope 1 and 2 emissions.
The Carbon Trust has assessed the technical feasibility of the plan based on guidelines defined by international institutions including the International Energy Agency, the Cement Sustainability Initiative, and the European Climate Research Alliance. The CO2 reduction methods include the use of alternative fuels, using decarbonated raw materials, renewable power projects, and novel cements, among others. The validation also included a review of Cemex's commitment to implement the scheme based on governance mechanisms and business planning.
“The magnitude and complexity of change required by a company such as Cemex to decarbonise its global operations is significant. Our assessment provides the organization’s management, investors and stakeholders with an independent validation that its commitments are backed up by sound assumptions and planning,” said Aleyn Smith-Gillespie, Associate Director Advisory at the Carbon Trust.
Dalmia Cement signs Near-Zero pledge
25 September 2020India: Dalmia Bharat subsidiary Dalmia Cement has joined five leading companies of other sectors in signing the Near-Zero pledge, an industry charter targeting “near-zero carbon dioxide (CO2) emissions by 2050” at the virtual Climate Week NYC. The Times of India newspaper has reported that the pledge consists of a commitment to “undertake carbon sequestration efforts, if needed, and set reporting indicators and targets to enable tracking of corporate goals on the decarbonisation pathway.”
Dalmia Cement urged national governments to “positively enforce targets for efficiency, emissions reduction and circular economy to make carbon neutrality by 2050 a reality.”
Holcim España launches the Carbon Challenge think tank
24 September 2020Spain: LafargeHolcim subsidiary Holcim España has announced the launch of the Carbon Challenge, a think tank to promote CO2 emissions research and reduction. The company says that the plan involves “the formation of various working groups in areas such as reducing process emissions, reducing the emission factor for fuels and changing cement content of concrete and investigating alternative additives.” This is part of its Ecological Transition strategy, in addition to its Euro20m carbon footprint reduction investments announced on 31 December 2019.
Sustainability and Health director Raúl Pérez said, “We have high expectations for this project. It is a laboratory of ideas that will allow us to add and share knowledge that materialises in concrete initiatives applied to our processes, products and solutions, all with a common denominator: anticipating the new European decarbonisation scenario with an established plan to be carbon neutral by 2050.”
The race to zero
23 September 2020Cemex last week. HeidelbergCement and LafargeHolcim this week. China yesterday. One can’t seem to move for major building materials companies (or their owners) issuing carbon neutral strategies at the moment. This week HeidelbergCement first launched its ‘Beyond 2020’ plan, a mixture of financial, portfolio and sustainability goals. Then, LafargeHolcim said that it had signed a pledge with Science-Based Targets (SBT) towards meeting intermediate targets by 2030. Last night, President Xi Jinping told the United Nations (UN) General Assembly in New York that China was aiming to hit peak emissions before 2030 and carbon neutrality by 2060.
The timing of these various sustainability goals are directly or indirectly linked to Climate Week NYC, a notable annual event on the climate change calendar that is taking place at the moment. So it’s a good time for large-scale industrial CO2 emitters, like building material producers, to have something positive to say.
China’s announcement steals the limelight given that the country produces around half of the world’s cement and holds a higher share of clinker production capacity. Western media has pointed out the geopolitical implications of Xi’s statement that was delivered shortly after a speech by US president Donald Trump, a notable climate change sceptic. Xi’s speech didn’t contain any details so it may simply have been an attempt to demonstrate global leadership. Yet if the Chinese government makes a go of it, the effect could be profound. Data from the Centre for International Climate and Environmental Research (CICERO) shows that the Chinese cement industry emitted an estimated 782Mt CO2 in 2018 compared to 1.50Gt CO2 from the cement industry globally and 37.1Gt CO2 from all human-related sources. In other words, the Chinese cement industry was responsible for 2% of all CO2 emissions in 2018. And this industry is mostly owned by a government that has just publicly declared a carbon neutral target.
In some ways the other announcements, by the western-based multinational building material companies, are even more radical since these producers are subject to market forces. These companies don’t have to do this. They also contain more specifics than Xi’s words so far.
HeidelbergCement says it has brought forward its CO2 emissions target for 2030 of 525kg CO2/t (specific net CO2 emissions per tonne of cementitious material) to 2025. That’s a 30% decrease from 752kg CO2/t in 1990. Its new goal for 2030 is below 500kg CO2/t. The main emission reduction methods it outlines include: increased use of alternative raw materials and fuels; increased use of secondary cementitious materials to reduce the clinker factor of cement; investment in plant efficiency and CO2 reduction at the plant level; and increased share of low-carbon concrete products.
Chart 1: HeidelbergCement’s path to net carbon zero concrete: Source: Leading the way to carbon neutrality, HeidelbergCement.
Chart 1 above outlines HeidelbergCement’s thinking post-2030 with further reductions to CO2 emissions mainly achieved through circular economy methods and different carbon capture techniques. Two points to hold in mind here. One: note the current uncertainty about which route will provide the biggest share of the reduction. Two: this chart considers concrete, not cement.
LafargeHolcim’s announcement was that it has joined Science Based Targets initiative (SBTi) ‘Business Ambition for 1.5°C.’ It says that by doing so it has become the first global building materials company to sign the pledge with intermediate targets for 2030, validated by SBTi. This is slightly confusing given that other building materials companies have had different dealings with the SBT as it has worked towards its current scheme. Earlier this month, for example, we reported that Taiwan Cement had started an SBT project in 2019 and had some targets approved by the SBTi in June 2020. Grupo Cementos de Chihuahua (GCC) said it was joining SBTi at the start of 2020 and HeidelbergCement reported its SBTi approved targets in mid-2019. Finally, India-based Dalmia Cement is also on the SBTi ‘Business Ambition for 1.5°C’ list but it is a stretch to describe it as a ‘global’ company.
The core of LafargeHolcim’s statement is a further reduced target for CO2 intensity in cement of 475kg CO2/t by 2030. So far it’s decreased its CO2 intensity by around 23% to 516 kg CO2/t in 2019 from ~730kg CO2/t in 1990. There’s less looking ahead after 2030 compared to HeidelbergCement but the measures outlined until then include: more use of low-carbon and carbon-neutral products; increased use of alternative raw materials and fuels; doubling waste-derived fuels in production to reach 37%; greater use of calcined clay and developing novel cements with new binders; and operating the company’s first net zero CO2 cement production facility.
Many of the various networks and initiatives across the climate action community came together in June 2020 as part of the UN backed ‘Race To Zero Campaign,’ an attempt to align the disparate leading net zero initiatives ahead of the 26th United Nations Climate Change Conference (COP), due to take place in November 2021 in Glasgow, Scotland. This swirl of different net zero schemes also partly explains the confusion over the different organisations backing sustainability targets that companies can sign up to. So it’s a good thing to see closer collaboration here.
More cynical readers will have latched on to president Xi’s opportunity to show up President Trump in the climate change action stakes. They may also prefer news stories about activist investors prompting change at shareholder-owned companies as they increase their portfolios or stories like Morgan Stanley’s announcement this week that it has a new commitment to reach net-zero financed emissions by 2050. If the investment bank actually means it and other financiers follow suit then the fiscal incentives for net zero draw closer and the rest should follow. Moneys talks… and hopefully CO2 stays buried in the ground.
For sustainability comparisons among the top global cement producers see the October 2020 issue of Global Cement Magazine
LafargeHolcim commits to net-zero CO2 emissions with 20% specific reduction by 2030
21 September 2020Switzerland: LafargeHolcim has signed the Science-Based Targets initiative (SBTi) Business Ambition for 1.5°C pledge, which commits it to net-zero carbon dioxide (CO2) emissions by 2050. Additionally, the company has committed itself to a 20% reduction in its CO2 intensity between 2018 and 2030.
The company says that over the period it will: “accelerate the use of low-carbon and carbon-neutral products such as ECOPact and Susteno, recycle 100Mt of waste and by-products for energy and raw materials, scale up the use of calcined clay and develop novel cements with new binders, double waste-derived fuels in production to reach 37%, reach net CO2 emissions 475kg/t of cementitious material and open and operate its first net-zero CO2 cement plant.
Chief Executive Officer (CEO) Jan Jenisch said, “I believe in building a world that works for people and the planet. That’s why we are reinventing how the world builds today to make it greener with low-carbon and circular solutions. I am very excited to be working with SBTi, taking a rigorous science-based approach to shape our net zero roadmap and accelerating our efforts to substantially lower our CO2 footprint. I will not stop pushing the boundaries to lead the way in green construction.”
HeidelbergCement presents Beyond 2020 business strategy
18 September 2020Germany: HeidelbergCement has presented a new business strategy, involving an accelerated climate action plan, called Beyond 2020. Under the Strategy, the company will aim to reduce its specific carbon dioxide (CO2) emissions by 10% to 525kg/t of cement by 2025 from 585kg/t in 2019. Its financial targets over the period are “a significant increase in earnings before interest, taxation, depreciation and amortisation (EBITDA) margin by 300 basis points and return on invested capital (ROIC) to clearly above 8%. The group says that it will target a leverage ratio between 1.5 and 2 times its result from current operations in 2020.
Chief executive officer (CEO) Dominik von Achten said, “We see climate change and digitalisation as the two central challenges of the future for society and for our company. As one of the world's leading building materials producers, we have the ambition and the innovative strength to actively shape this change in a pioneering role. At the same time, we see further optimisation potential in our plants and processes. Ecology and economy are not contradictory. Our new medium-term targets for 2025 illustrate this claim.”
PCA names Energy and Environment Award 2020 winners
18 September 2020US: The Portland Cement Association has announced the winners of the Energy Environment Awards 2020. Cementos Argos’ 1.1Mt/yr Harleyville, South Carolina cement plant won the Energy Efficiency Award “by reducing kiln specific heat consumption and increasing the utilisation of the new vertical cement mill,” while CRH subsidiary Ash Grove Cement’s 1.0Mt/yr Midlothian cement plant won the Environmental Performance Award for “operating a whole-tyre burning system utilising a first-in-the-US hot disk system supplied with whole tyres from a nearby tyre recycling company.” Other winners were GCC’s 0.9Mt/yr Odessa, Texas cement plant for Innovation, LafargeHolcim’s 2.2Mt/yr Holly Hill, South Carolina plant for Land Stewardship, Titan Cement's Roanoke Cement Troutville plant for Outreach and HeidelbergCement subsidiary Lehigh Hanson’s 3.2Mt/yr Union Bridge, Maryland plant for Overall Environmental Excellence.
PCA president and chief executive officer (CEO) Michael Ireland said, “America’s cement manufacturers continue to focus on researching and developing new and innovative ways to reduce environmental footprint. The companies receiving these awards are great examples of our industry’s commitment to sustainability and energy efficiency.”
Solidia Technologies partners with Chryso to further develop Solidia concrete product
15 September 2020US: Solidia Technologies and France-based Chryso have announced a collaborative partnership for the further development of the Solidia ‘ultra-low’ CO2 concrete product. The companies plan to use their “combined expertise to improve the sustainability performance and material properties” of the concrete.
“Incorporating Chryso’s exclusive water-reducing admixtures adapted to the specific chemistry of Solidia Concrete, will further reduce water consumption in the curing process,” said Tom Schuler, president and chief executive officer (CEO) of Solidia Technologies.
UK: Cemex UK says that construction company Kier used concretes from its reduced-carbon dioxide (CO2) Vertua range to complete a net-zero CO2 residential construction project at the University Warwick. Sales executive Matthew Doran said that the student accommodation, called Cryfield, “was the first project for which Kier has chosen to use the Vertua range and it was an exciting opportunity for Cemex to demonstrate the value of this product as both a high-performance and sustainable choice.”
Standard matters
09 September 2020The Bureau of Indian Standards (BIS) has warned local cement producers to rein in their more outlandish claims. In a letter reported upon by the Economic Times newspaper this week, the government department has accused some manufacturers of making both objective and subjective claims about their products that strained credulity and didn’t fit the corresponding official standards. One industry source from the newspaper blamed the crackdown on some producers claiming that their cement products helped protect people from Covid-19! In their view the bureau was now over-enforcing its rules in retaliation. Given the severity of the outbreak in India - it has the second highest number of reported cases in the world this week - the response of the authorities is understandable to say the least.
The distinction between objective and subjective exaggeration that the BIS makes it worth looking at in more detail. For example, objective or supposedly fact-based claims the BIS cited included: ‘Protect Steel in Concrete’; ‘Protect Concrete from Corrosion’; ‘Corrosion Resistant’; ‘Weather Proof’; and ‘Damp Proof.’ Then, there were subjective, or more emotionally evocative, claims along the lines of ‘strong’ or ‘high performance.’ The BIS then outlines the specific ways in which objective and subjective assertions can be used. Objective claims should be avoided on marketing and packaging material. Subjective claims should, “explicitly indicate that such claims are not covered under the scope of BIS licence granted to them and the responsibility of such claims lies with them.”
Marketing is a big part of standing out in the crowded Indian cement market with producers sponsoring major sports teams. This might seem odd to readers elsewhere in the world but it demonstrates the target market, the importance of cement as a commodity to the general public and the power of brand awareness. Amubja Cement’s logo of a man with a Charles Atlas style physique cuddling a building sums up the message they want to convey: strength. No wonder producers are wary of the BIS wading in.
Standards also appeared in another news story this week with the announcement that Taiwan Cement Corporation (TCC) had obtained the first cement product carbon footprint label issued by the Environmental Protection Administration (EPA) in the country. Its products will be marked with carbon footprint labels from the fourth quarter of 2020.
This shows a general trend in cement products towards showing sustainability credentials from putting environmental footprint data in front of specifiers for large projects towards making it a more basic retail selling point. Lots of other cement producers around the world have done and/or are doing similar things, from the dedicated slag cement manufacturers to the larger producers routinely releasing and promoting new low-CO2 products. To pick one example from many, in July 2020 LafargeHolcim France introduced ‘360Score CO2 emissions reduction ratings’ to its bagged cement range. The score, between ’A’ and ’D,’ corresponds to the factor of CO2 compared to CEM-I Ordinary Portland Cement (OPC), with ‘A’ products producing less CO2 than ‘D’ products in their overall creation.
To look at an older example of the need for standards generally, building collapses in Nigeria appeared to increase post-2000, with the misuse of lower-grade cements blamed for the situation. The Standards Organisation of Nigeria (SON) took action in 2014, local producers introduced higher strength cements and the problem was reduced. Given the intangible nature of measuring sustainability in cement products there is a need for reliable standards. Unlike performance metrics, such as a strength or durability, the CO2 footprint of a cement product will generally remain utterly intangible for most end-users. The effects of CO2 emissions are continually analysed and debated, but the negative climate effects of cement products are more akin to someone else’s house flooding on the other side of the world 50 years later, than one’s own house falling down a decade later due to using the wrong strength cement. So, some form of trustworthy enforcement for sustainability standards is crucial. Standards may represent ‘boring’ bureaucratic red tape at its most officious but we need them. In India and elsewhere though, the debate on enforcement continues.