OUR CONTRIBUTION TOWARDS A CARBON NEUTRAL WORLD
Transcript of OUR CONTRIBUTION TOWARDS A CARBON NEUTRAL WORLD
CEMEXPOSITIONONCLIMATECHANGE
1
OUR
CONTRIBUTION
TOWARDSA
CARBON
NEUTRAL
WORLD
CEMEXPositionon
ClimateChange
AtstockProductions/Shutterstock
CEMEXPOSITIONONCLIMATECHANGE
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Executive Summary
CEMEXbelievesthatclimatechangeisoneofthebiggestchallengesofourtimeandsupportstheurgencyof collective action to ensure compliance by all parties in the implementation of theParis AgreementcommitmentsandthefulfilmentoftheUNSustainableDevelopmentGoalsonClimateAction.Advancingon climate solutions requires a collaborative cross-industry action and cooperationwith governments,non-profitorganizationsandmultilateralinstitutions.
ClimatechangehasbeenapriorityforCEMEXformanyyearsandwehavebeenworkingtomaximizethetechnicalleverscurrentlyavailableinthecementproductionprocess:investinginenergyefficiency,useofalternative fuels, expanding our use of renewable energy and increasing clinker substitution throughalternativecementitiousmaterials.
Throughtheseeffortswehaveachievedasignificantreductionofmorethan22%inournetspecificCO2emissionscomparedtoour1990baseline. In2019weannouncedagoaltoreduce30%ofourCO2netemissionsby2030,andwearenowcommittingtoamoreambitiousintermediatetargetofreducing35%ourCO2netemissionsby2030,alignedwiththeScience-BasedTargetsMethodology.Toensurewemeetournewtarget,thisobjectivehasbeenincludedinourCEOandtopmanagementvariablecompensationschemeandwehavedetailedCO2roadmapsdevelopedateachofourcementplantswhichincludearolloutofprovenCO2reductiontechnologiesandtheinvestmentsrequiredfortheirimplementation.
Cementisthebasicingredientofconcrete,ourendproductthatisthesecondmostwidelyusedmaterialintheworldafterwater.Therearenosubstitutesforthekeyattributesofconcrete:strengthandresilience.Asaresult,webelieveconcretehasacriticalroletoplayinthetransitiontoaLow-CarbonEconomy.Wehave the aspiration to deliver net-zero CO2 concrete globally by 2050, which will contribute to thedevelopmentofclimate-smarturbanprojects,sustainablebuildingsandclimate-resilientinfrastructures.Thetechnologytoreachthisgoalisstillinearlystagesofdevelopmentandweintendtoworkwiththeindustry,governmentsandmultilateralagenciestodevelopthemeanstoachievethisimportantgoalofnet-zeroconcrete.
Theopportunityforreducingouremissionsisnotlimitedtotheproductionprocessbuttothewholelifecycleofourproducts.Thisincludesthemanufacturing,deliverytoconstructionsite,finishedconstructionand the recycling and re-use of thematerials at the end of their lifecycle. The biggest contribution ofconcrete is in the use phase due to its unique inherent characteristics: strength, durability, energyefficiency, resilience,minimummaintenance, recyclable and lowerCO2 emissions over its full life cyclecomparedtootherconstructionmaterials.
Thepresenceofarobustandsustainablecementandconcreteindustryiscloselylinkedtotheeconomicdevelopmentoflocalregionsandcountries.CEMEXbelievesthattheavailabilityofthebuildingmaterialsweoffer-cement,concreteandaggregates-arethefoundationsofsustainableeconomicdevelopment:puttingroofsovertheheadsofbillions,creatingaffordablehomesforthoselivingbelowthepovertyline,providing a livingwage for the local construction team that builds it, fortifying existing infrastructureagainst natural disasters and providing building solutions tailored for critical societal services likehealthcare,education,mobility,energyandindustrialdevelopment.
Weshallbeopenandtransparentinmeasuringourprogressandadvocatefortheurgentneedtomakeclimatechangeatoppriorityintheindustry.Asareflectionofthis,CEMEXhasrecentlybeenincludedinthe“AList”ofCDP(formerlyCarbonDisclosureProject), inrecognitionforouractionstocutemissions,mitigateclimaterisksanddeveloptheLow-CarbonEconomy.CDP’sannualenvironmentaldisclosureandscoringprocessiswidelyrecognizedasthegoldstandardofcorporateenvironmentaltransparency.
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CEMEXHASTHE
ASPIRATIONTODELIVER
NET-ZEROCO2CONCRETE
GLOBALLYBY2050
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CEMEXbelievesthatclimatechangeisoneofthe
biggestchallengesofourtimeandsupportsthe
urgency of enhanced ambitions to ensure the
highest possible mitigation and adaptation
efforts by all parties, recognizing the need to
limitglobalwarmingbeyond2°Celsius.
ClimatechangehasbeenapriorityforCEMEXfor
many years and we have been working to
maximize the technical levers available in the
cementproductionprocess: investinginenergy
efficiency,usingalternativefuels,expandingour
use of renewable energy and increasing our
substitution of clinker through alternative
cementitiousmaterials.
Through these efforts we have achieved a
significantreductionofmorethan22%inournet
specific CO2 emissions compared to our 1990
baselineandwearenowcommittingtoamore
ambitious intermediate targetof reducing35%
our CO2 net emissions by 2030, which should
takeustoalevelofemissionsof520kgCO2per
tonofcementitiousproduct.Thisnewtarget is
aligned with the Science-Based Targets
Methodology,sothatwecontributetomeetthe
ParisAgreementgoals.
Cementisthebasiccomponentofconcrete,our
endproduct.Concretehasakeyroletoplay in
thetransitiontoaLow-CarbonEconomyasitis
themostusedman-madematerialintheworld
used to build resilient infrastructure (roads,
highways,bridges,dams,airport runways,etc.)
and buildings (schools, hospitals, homes,
commercialandindustrialbuildings).
Wehave theaspiration todelivernet-zeroCO2
concretegloballyby2050,whichwillcontribute
to the development of climate-smart urban
projects, sustainable buildings and climate
resilientinfrastructures.
The challenge of significantly cutting global
emissionswill also require a transformation of
thebuiltenvironmentthatlooksstrategicallyat
the full construction value chain and
incorporates products that can guarantee
performancebothintermsofcarbon-efficiency
andresilience.
The opportunity for reducing emissions is not
limited to the production process but to the
whole life cycle of our products. The biggest
contributionofconcreteisintheusephasedue
to lower CO2 emissions over its full life-cycle
comparedtootherconstructionmaterials.
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Although more data, transparency and robust
life-cyclestandardsarestillneededtocoverall
the emissions in the built environment, an
independent2019reportfromtheInternational
InstituteforSustainableDevelopment“EmissionOmissions: Carbonaccountinggaps in thebuiltenvironment” suggests that, when all thoseemissions are taken into account, concrete’s
embodied carbon footprint could be up to 6%
lessintensivethanthatofwoodproducts.
Thepresenceofarobustandsustainablecement
and concrete industry is closely linked to the
economic development of local regions and
countries.CEMEXbelievesthattheavailabilityof
the building materials we offer - cement,
concreteandaggregates-arethefoundationsof
sustainable economic development: putting
roofs over the heads of billions, creating
affordable homes for those living below the
povertyline,providingalivingwageforthelocal
construction team that builds it, fortifying
existing infrastructure against natural disasters
and providing building solutions tailored for
critical societal services like healthcare,
education, mobility, energy and industrial
development.
Concrete is a local business, employing local
communitiesandboostinglocaleconomies.The
componentsthatgointomakingconcrete–
aggregates,cementandwater-arealsosourced
locally. Hence it is one of the few industries
wheretheproductionvalueremainslocal.Most
ready-mixedconcreteisusedwithin30kmofthe
productionsite.
Withthisemphasisonlocalvalue,thesectorisa
vital component in strengthening and building
local economies by delivering access to
sustainablebuildingmaterials,promotingskilled
jobs and generating stable economic activity.
Today, it is estimated that the global cement
industry employs directly approximately
1.2millionpeopleandsupportsmillionsmorein
itssupplychain.
Webelievethatalleconomieshavetherightto
developtotheirmaximumpotential.Inlinewith
the rising global population and urbanization
patterns, global cement production is set to
grow by 12-23% by 2050 from current levels.
Knowing this, our challenge is clear - wemust
meettheincreasingdemandforcementaround
theglobe,whileat the same time, significantly
reducingdirectandindirectCO2emissionsfrom
our operations, together with providing
sustainableandinnovativesolutionsforsociety.
CEMEX will focus on delivering innovative
productsthatbuildresiliencetoclimatechange
impactsandadvancebuildingsustainability.
ASOF2019,WEHAVE
REDUCED22%OURNET
CO2EMISSIONSPERTON
COMPAREDTO1990
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CONCRETEABSORBSUP
TO25%OFITSEMBODIEDCO2PROCESS
EMISSIONSDURINGITS
LIFETIME
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Up to 2019, we have achieved a significant
reduction of more than 22% in our net CO2
emissionspertonofcementitiouscomparedto
1990levels,whichjustforthatyearalone,meant
weavoidedemittingmorethan7.5milliontons
ofCO2,equivalenttotheemissionsof1.6million
passengervehiclesdriveninoneyear.Withour
newtargetoffurtherreducing35%ournetCO2
emissions by 2030, we shall avoid the annual
emissionofupto16milliontonsofCO2by2030
compared to 1990 levels, equivalent to the
emissionsof3millionpassengervehiclesdriven
inoneyear.
CEMEX has been working for many years to
maximizetheuseoftraditionalleversavailable
in the cement sector such as investing in
optimizingtheenergyefficiencyofourplants,
fuel switching strategies to use alternative
fuels,expandingtheuseofrenewableenergy
and increasing the substitution of clinker in
cementbyalternativecementitiousmaterials.
We are committed to continue reducing our
directandindirectemissionsinourprocesses,
both through the maximization of the
traditional CO2 reduction levers and through
investingininnovation.
1. Newtypesofclinkerandnovelcements
2. Energyefficiency
3. Increasingtheuseofalternativefuelsto
substitutefossilfuels
4. Maximizingtheuseofrenewableenergy
aspowersource
5. Clinkersubstitutes
6. Expandingandprotectingnaturalcarbon
sinks
7. Implementing Carbon Capture,
UtilizationandStorage(CCUS)andother
carboninnovativetechnologies
Wearealsopursuingnewinnovativeprocesses
to mitigate our environmental impact through
continuous improvement in our production
processes,liketheproductionofnovelcements
as alternatives to traditional Portland cement.
But even with the most efficient processes
possible, there is a part of the CO2 emissions
linkedtoproductionthatcannotbeavoideddue
to the process emissions from the
decarbonization of limestone. That is why we
recognize the need of exploring innovative
CarbonCapture,UtilizationandStorage (CCUS)
technologies,whichshallenableustominimize
ourimpacts.
New types of clinker and novel cements with
lowercarbonfootprint
Inrecentyears,thedevelopmentofnewtypesof
clinker with a smaller CO2 footprint and/or
higher reactivity has received increased
attention. CEMEX has successfully developed
new types of clinker with 20% to 30% lower
emissions due to changes in the raw meal
compositionandloweremissionsincementdue
to the increased reactivity of the clinker,
allowingahighercontentof clinker substitutes
incement.CEMEXhasalreadyintroducedanew
clinker type with lower energy demand and
higher reactivity in a relevant number of its
cementplantsandcontinuestoworkinthisarea.
EnergyEfficiency
Energyefficiencyplaysacentralroleinachieving
a Low-Carbon Economy, reducing energy
demandandloweringenergy-relatedemissions,
whilehelpingmitigate climate change.Cement
manufacturing remains an energy intensive
process,soourfocusistoidentifyopportunities
toreplaceoutdatedequipmentwithnewenergy
efficient technologies and optimize existing
plants with automation and process control
technology. An example of this is the recently
implemented project in our Sv Juraj plant in
Croatiawherethesystemwhichcontrolsthe
DECARBONIZINGOUROPERATIONS
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fanstocooltheclinkerproductionwasreplaced,
allowing for a 25% reduction in power
consumption.
IncreasingtheuseofAlternativefuelsto
substitutefossilfuels
A relevant lever to reduce emissions from our
combustion process is the use of alternative
fuelsfromdifferentsourcesofwaste(industrial
waste, municipal solid waste, biomass, tires,
etc.) to substitute fossil fuels, suchas coal and
pet coke. Our challenge when increasing our
substitution rate is the lack of stable quality
wastesupply, limitedpolicyincentivestargeted
atdevelopingthewaste-to-fuelvaluechainand
alackofaregulatoryframeworkthatrecognizes
co-processingastheoptimalwastemanagement
solutionforunrecyclablematerials.
Co-processing is a more efficient waste
management solution than landfilling and
incineration, this means that the cement
industryisanetconsumerofwasteandit’sat
theheartoftheCircularEconomy.Co-processing
leadsto4keyclimateobjectives:
• Reducing CO2 intensity of cement
manufacturing
• Reducingourdependenceonfossilfuels
• Decreasing the amount of landfilled
waste
• Minimizing public investment costs in
new dedicated waste management
facilities
AtCEMEX,wearecontinuouslyinvestingin
upgrading our cement plants to maximize
the use of alternative fuels. In 2019 our
alternativefuelssubstitutionratewas28%;
weco-processed3million tonsofwaste in
90% of our cement plants, enabling the
replacementofalmost2milliontonsofcoal.
We shall continue to seek investment
opportunities to find and transform new
sources of waste to replace fossil fuels,
whereverpossible.
28%AlternativeFuel
Substitution
Ratein2019
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Maximizingtheuseofrenewableenergyas
powersource
Ourindirectemissions,relatedtotheelectricity
consumedbyourplants,arealsoanopportunity
toreduceourenvironmentalimpact.OurGlobal
Energy business focuses on promoting and
developingstrategicprojectstoallowaccessand
use of renewable energy sources in our
operationsworldwide.
Itnotonlycomplementstoourexistingeffortsto
reduce carbon emissions, but also makes
business sense, representing economically
attractive sources of energy in the countries
whereweoperate.Asaresultofourstrategyto
transitiontocleanenergysources,during2019,
30% of our cement operations’ power supply
came from renewable sources. We currently
lead our industry in this effort and we have
establishedanambitious2030goalof40%ofour
projected consumption. An example of this
ambitionisthepartnershipwehaveestablished
intheUKtoconsume100%renewableelectricity
inover320sitesstartingin2019.
Renewableenergyisincreasinglyavailableandin
some markets, it’s becoming very competitive
comparedwithfossilfuelgeneration.However,
productionunpredictabilityandintermittency
fromitsrelianceonexternalfactorssuchaswind
andsunlight,meansthatrenewableenergyhas
not yet been able to fully replace fossil fuel
generation.
Toovercomeunpredictabilityandintermittency,
CEMEXpartneredwithEnergyVaulttodevelop
an energy storage technology that enables
renewables to deliver around-the-clock
baseload power for less than the cost of fossil
fuels. The solution is not dependent on land
topographyorspecificgeologyunderground.
Clinkersubstitutes
Theuseofothercementitiousmaterialsreduces
theclinker-to-cementratio,whichmeanslower
emissions and lower energy use. CEMEX uses
clinkersubstitutessuchasblastfurnaceslag,fly
ash,limestoneandotherpozzolanicmineralsto
reduce our carbon footprint. Currently, the
averageclinkercontentinourcementproducts
isof78.7%asof2019,downfrom85.5%in1990.
This has allowed us to avoid approximately 4
milliontonsofCO2during2019.
Oneofourkeychallengesisthelocalavailability
of clinker substitutes; for example, granulated
blast furnace slag availability depends on the
location and output for pig-iron production
havingaslaggranulator,theflyashavailabilityis
30%OFOURENERGY
SUPPLYCAMEFROM
RENEWABLESIN2019
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dependentonsupplyfromlocalcoal-firedpower
plantsandtheavailabilityofnaturalpozzolansis
limitedtoanumberoflocations.Additionally,in
themediumterm,thefuturedecarbonizationof
thepowersectorcouldlimittheavailabilityoffly
ash and the production of slag is expected to
decline.
Therefore, CEMEX is dedicating its efforts and
investing in the research and development of
other cementitious materials and fillers to
replaceclinkercontent,likecalcinedclay,which
haspozzolanic-typeproperties.
CEMEXhasalsobeendeveloping itsknow-how
to find the optimal synergies between organic
chemicals and its clinker chemistry in order to
develop tailor-madequality enhancer additives
to improve the reactivity of cement and
therefore also increase the inclusion of clinker
substitutes.Atthesametime,CEMEXisusingits
proprietary grinding aids admixture technology
to reduce energy consumption during cement
production.
Expandingandprotectingnaturalcarbonsinks
Westronglysupporttherolethatnaturalcarbon
sinks play in reducing the total CO2
concentration in the atmosphere. CEMEX’s
nature reserve, El Carmen (140,000 hectares
wildlife reserve located on the U.S. - Mexican
border),storesaround11millionmetrictonsof
biologically sequestered CO2. In addition, 23.5
million tons of CO2are currently stored within
thevegetationofallour300quarriesaroundthe
world.Itisourintentiontoexpandandprotect
thesenaturalcarbonsinks.
Additionally,during2019wepublishedthe27th
volumeofourConservationBookserieswhichis
focused on how nature-based solutions
contributesignificantlytocaptureandstoreCO2.
Through a combination of impressive
photography and expert commentaries, this
volume aims to inspire global audiences to
continue expanding and protecting natural
carbon.Inthisbook,CEMEXhasbeenhonored
to work with some of the world’s most
prestigious conservation organizations such as
Conservation International, Wild Heritage, Sea
LegacyandGlobalWildlifeConservation.
Throughthesepublicationswewanttopromote
environmental awareness, which is key for
decision-making on conservation issues, while
reinforcing our company’s commitment to
promoteacultureofbiodiversityconservation.
ImplementingCarbonCapture,UseandStorage
(CCUS)andothercarboninnovativetechnologies
It is essential that CO2 separation and capture
technologiesbecomewidelyavailabletoachieve
the sectorial reduction ambitions. Several of
these Carbon Capture, Use and Storage
technologiesarebeingevaluatedat large scale
bythepowerandthecementsector.
CEMEX actively participates in various R&D
collaborative efforts with different sectors to
develop CCUS technologies, as well as other
carbon technologies. Some of these projects
include:LEILAC,eCOCO2andOxyfuel.
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11MILLIONMETRIC
TONSOFCO2ARE
BIOLOGICALLY
SEQUESTEREDINEL
CARMENRESERVE
Photoby:SantiagoGibert
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Concrete plays a fundamental role in the
transformation that the built environment
requires to mitigate climate change. More
importantly, in order to achieve rapid and
impactful climate change mitigation, CEMEX
believesthekeyisINNOVATION.
TechnologiestargetingClimateChange
LedbyCEMEXGlobalR&DandCEMEXVentures,
the company is advancing in cutting-edge
research and developing a wide range of
technologiesandconstructionsolutionsthatare
contributing, or are designed to contribute, to
themitigationofCO2emissions,enhancementof
energy efficiency of buildings, improvement of
resilience, intensification of long-lasting
structuresandthemaximizationofresourcesby
circulating products, components,
andmaterialsin use at the highest possible
levelsatalltimes.
CEMEX’s portfolio of concrete technologies,
construction solutionsandglobalbrandsoffers
lightness, porosity, resistance, ductility and a
numberofotheruniquefeaturesthatfulfillthe
increasingly demanding performance
requirements of sustainable buildings,
structuresandcities.
• Recarbonation of CO2 - A key
characteristicofconcreteiscarbonation,
which is the gradual absorption of CO2
during the lifecycle of the concrete
structures in the buildings. During the
lifeofabuiltstructure,upto25%ofthe
process emissions related to the
production of the cement can be
absorbed. In collaboration with key
partners and start-ups, CEMEX is
developing advanced research to
acceleratethiscarbonationprocess.
• Energy Efficiency - Making use of
concrete’s unique capacity to manage
heat (insulate, reduce, absorb, retain,
reflect and conduct), CEMEX has
developed a palette of concrete
technologiesthatenableenergysavings
inbuildingsandcities.
• Resilience-Throughadvancedmaterial
engineering,CEMEXtakesadvantageof
theporosityof thematerial todevelop
solutions thatmanagewater to reduce
the magnitude and/or duration of
disruptive events such as floods or
droughts. Furthermore, CEMEX´s
THEROLEOFCONCRETEINACARBON
NEUTRALECONOMY
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concrete technologies provide
constructionsolutionswiththecapacity
to resist fire, hurricanes and other
naturaldisasters.
• Life-Cycle - CEMEX has enhanced the
inherent durability and long-lasting
characteristics of concrete to develop
productsthatcaneasilybeplacedunder
extreme weather conditions and will
require minimum maintenance
throughout the entire life of the
construction.
• CircularEconomy-CEMEXhas focused
strong efforts on developing in-house
technology to reducing both inputs of
materials and outputs of waste. To
exemplify, CEMEX´s unique fiber-
reinforced concrete technology
eliminates the need of steel
reinforcement in structures, enabling
thinnerelementswhich leadtoamore
efficientuseofmaterials.On theother
hand, CEMEX´s technologies make use
ofwaste streams to generate products
and solutions with identical
performance as conventional concrete
suchasreuseofreturnedconcrete,use
of recycled aggregates and use of by-
productsfromotherindustries.
CEMEX is one of the 22 industrial partners
working together with public organizations,
privateresearchcenters,anduniversitiesinthe
EuropeanprojectFastCarb.Thisprojectaimsat
validatingacceleratedcarbonationofrecycled
concreteaggregatewhile improvingthequality
of this aggregate by plugging the porosity and
ultimatelyreducingtheimpactoftheCO2inthe
concrete contained in structures. FastCarb is
administratedbyIREX(InstitutpourlaRecherche
Appliquée et l’expérimentation en Génie Civil)
and is supported by the French Ministry in
charge of Sustainable Development (Ministère
delaTransitionÉcologiqueetSolidaire).
We are strongly committed to continuing
investinginResearchandDevelopment(R&D)to
deliverinnovativesolutionsanddriveabusiness
model thatbenefitsboth theenvironmentand
society andwe shall continue to promote and
encourage the use of sustainable products
among our clients (developers, architects,
government, etc.) by investing in technical
capacitybuildingthatgeneratesthefoundations
ofeco-friendlydecisionmakingandenablesthe
buildingenvironment to transition towards the
useoflastingandsustainableproducts.
AsCEMEX,wegohandinhandwithourclients
andpartnersincreatingaLow-CarbonEconomy
where the use of innovative buildingmaterials
and solutions is driving the market. We will
continue to provide green building services to
promotebuildingcodesandcertificationswhich
deriveinhighperformancebuildingstandards.
CEMEXadvocatesfortheincrementaluseoflow-
carbon and climate resilient products in its
engagements with governments, NGO’s, and
distinguishedacademicsby increasinglygetting
involved at the early stages of buildings and
infrastructure planning and design in the
countrieswhereweoperate.
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CEMEXCONSUMES32TIMESMORE
WASTEFROMOTHERINDUSTRIES
THANTHEAMOUNTOFWASTEWE
GENERATEANDSENDTOLANDFILL
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CEMEX has been a driver of reporting and
transparency within the global cement and
concrete industry. We believe that successful
organizations today must actively measure,
report and validate (MRV) in order to create
long-term sustainable value and a continuous
improvement in their operational culture. We
understand reporting and disclosure of
environmentalimpactsandmitigationactionsas
a key driver for awareness, management and
leadership.
CementSustainabilityInitiative(CSI)
CEMEX was a founding
member of the Cement
Sustainability Initiative (CSI),
which operated under the
auspices of the World
Business Council for
SustainableDevelopment(WBCSD).Foundedin
1999, the CSI was a voluntary CEO-led global
effort by 24 major cement producers with
operations in more than 100 countries
representingaround30%oftheworld’scement
production. CSI members agreed on a global
methodologyforcalculatingandreportingCO2
emissions:TheCementCO2andEnergyProtocol.
The protocolwas alignedwith the overarching
Greenhouse Gas Protocol developed under a
joint initiative of the WBCSD and the World
Resources Institute (WRI) and based on
extensive practical application of Getting the
NumbersRight(GNR)project.
Today, the work carried out by the Cement
Sustainability Initiative (CSI) has been officially
transferredfromtheWorldBusinessCouncilfor
SustainableDevelopment(WBCSD)totheGlobal
Cement&ConcreteAssociation (GCCA)asof1
January2019.
GlobalCementandConcreteAssociation(GCCA)
CEMEX is also one of the
foundingmembersof thenew
Global Cement and Concrete
Association (GCCA). The GCCA
has been established as the
globalindustryplatformtoenablealignmentand
to facilitate sustainable development of the
cement and concrete sectors and their value
chains.
REPORTING&DISCLOSURE
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GCCA members are required to develop a
climate change mitigation strategy, verify the
key performance indicators by a third party,
establish targets and report progress in
accordancewiththeGCCASustainabilityCharter
allowing the industry to standardize the
measuringandreportingonCO2emissionsata
globallevel.
Through our work in the GCCA we promote
cementandconcreteinnovationasakeydriver
for Climate Action. The recent launch of
Innovandi, the Global Cement and Concrete
Research Network composed of world-class
scientistsandindustryexperts,isatestimonyof
our commitment to achieve sound progress
through global collaboration on cement and
concrete innovation. The Global Cement and
Concrete Research Network is designed to
support global innovation with fact-based
researchfocusedonloweringtheCO2.
TaskForceonClimate-relatedFinancial
Disclosures(TCFD)
Additionally, we adhere to the
recommendations of the Financial Stability
Board (FSB) Task Force on Climate-related
FinancialDisclosures(TCFD)asitrepresentsthe
next step in our climate-related disclosures.
Creating a common understanding of climate-
related risks and opportunities across the
cement and concrete industry is key in the
deliveryoftheParisAgreementgoals.Disclosure
ofclimate-relatedgovernance,strategy,riskand
metrics is essential information for successful
long-terminvestors.
CDP
Both, Getting the Numbers
Right and the Carbon
Disclosure Project (CDP)
initiatives, represent
togetherthebiggestsources
ofcross-industrydataonCO2
emissions.
Asaresultofourdisclosureeffortswehavebeen
recentlyincludedinthe“AList”ofCDP(formerly
CarbonDisclosureProject),inrecognitionforour
actions to cut emissions,mitigate climate risks
anddeveloptheLow-CarbonEconomy,basedon
the data submitted by CEMEX through CDP’s
2019 climate change questionnaire. CDP’s
annual environmental disclosure and scoring
processiswidelyrecognizedasthegoldstandard
ofcorporateenvironmentaltransparency.
CEMEXwas
includedinCDP’s
2019“Alist”in
recognitionforour
disclosureactions
inClimateChange
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WESUPPORTMARKETBASED
MECHANISMSASTHE
OPTIMALWAYTOREGULATE
CO2EMISSIONS
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Webelieveglobalindustrycollaborationiskeyin
accelerating the development of strategic
Climate Action enablers at a global scale.
Therefore, we are active members and hold
leadership positions in national, regional and
global industry associations in the countries
where we operate such as the GCCA (Global),
CEMBUREAU (Europe), FICEM (Central and
SouthAmerica),PCA(UnitedStates),CANACEM
(Mexico),etc.Itismainlythroughglobalindustry
collaborationthatwepromoteandadvocatefor:
• Building energy efficiency - policy
measures that apply specific
recommendations to advance building
energy efficiency through the use of
innovative products and construction
solutions.
• Market-basedmechanismsandcarbon
pricing - we support market-based
mechanismsasakeypolicy instrument
and the optimal way to regulate and
reduce CO2 emissions. We believe the
market will lead to a predictable and
reliable carbon price, enabling
confidenceamongmarketplayersanda
continuous flow of the required
investments on climate solutions. In
CEMEX, we have incorporated an
internal carbon price into our
investment decisions to internally
evaluate the exposure to a potential
external carbon pricing, driving at the
same time a culture of constantly
reducing our carbon footprint
sometimes even beyond local
regulation. Carbon prices based on
externalmechanismsallowustobetter
evaluatetheprofitabilityofprojectsand
strategies.
• Avoiding Carbon Leakage - to avoid
carbon leakage, protection should be
offered to the industry where its
competitivenessisatstake.Suchborder
adjustmentmechanismsarealsoaway
to encourage other countries to
promotecarbonneutraleconomies.
• EfficientWasteManagementSystems-
the development and consolidation of
efficient waste management systems
across the Paris Agreement signatory
countries would enable a reliable and
high-quality sourcing of alternative
fuels, accelerating the efforts of the
cement industry to reduce its
dependency on fossil fuels. We will
continuetobuildawarenesswithpolicy
makers in the understanding that our
cement plants consume waste, leaving
no residues for landfilling, thus a key
part in the implementation of a global
WasteManagementHierarchy.
• Circular Economy Policy Framework
Implementation - across the countries
whereweoperate,westronglyadvocate
for a transition to a Circular Economy
wherethevalorizationofwastestreams
andthedesignofproductsareaimedat
reducing the impacts of landfilling on
humanhealthandtheenvironment.
• Carbon Capture, Use and Storage
Technologies - we support legislation
that enables the development and
deploymentofCarbonCaptureUseand
Storage (CCUS) as a potentially crucial
technologytolimitGHGemissionsinthe
longrun.
Wediscloseourmembershipandinvolvementin
industryassociationsrelatedtoclimateissuesin
our CDP annual disclosure process and have
consistency between our global climate action
policy position and those taken at industry
associationlevel.
CLIMATEACTIONADVOCACY
CEMEXPOSITIONONCLIMATECHANGE
19
FOR2030,WEARE
COMMITTEDTOENSURING
THATATLEASTHALFOUR
CEMENTANDCONCRETE
SALESARELINKEDTO
SOLUTIONSWITH
OUTSTANDINGSUSTAINABLE
ATTRIBUTES
CEMEXPOSITIONONCLIMATECHANGE
20
• Net-zeroCO2Concrete:Concretehasa
key role to play in the transition to a
Low-Carbon Economy as it is themost
usedman-madematerial in the world.
Wearefocusingoureffortsindelivering
net-zeroCO2concretegloballyby2050,
which shall contribute to the
development of climate-smart urban
projects, sustainable buildings and
climate resilient infrastructures. This
vision requires a concerted effort, not
justinthedeploymentofnewemerging
technologies to capture and utilize our
carbonemissions,butworkingtogether
with governments, environmental
agencies, NGO’s, the financial
community, industry professionals,
manufactures and builders. CEMEX
believesthatconcretecouldbecomethe
most sustainable building material,
having a key role in the emissions
absorption and avoidance in buildings
and infrastructure. Aspart of ournet-
zeroCO2visionforconcrete,CEMEXshall
continuepreservingthebiodiversityand
protecting carbon sinks throughefforts
likeour“ElCarmenNatureReserve”and
the conservation of the land in our
quarries. These nature-based carbon
offsets are a fundamental part of the
final solution and we will continue to
proactivelydevelopandpromotethem.
• Carbon Capture, Use and Storage
(CCUS):accesstoCCUStechnologiesisa
crucialmilestone for the industry tobe
able to continue reducing its GHG
emissions in the long run. We believe
CCUStechnologieshavethepotentialto
be cost effective. The development of
low-carbon solutions at scale for the
industry requires a proactive multi-
stakeholder approach and government
support.
• OurCommitmenttoInnovation:weare
strongly committed to continuing
investing inResearchandDevelopment
(R&D) to deliver innovative solutions
anddriveabusinessmodelthatbenefits
boththeenvironmentandsociety.
• Use of innovative and sustainable
products:wewill continue to promote
and encourage the use of sustainable
productsamongourclients(developers,
architects, government, etc.) by
investing in technical capacity that
generates the foundations of eco-
friendlydecisionmakingandenablesthe
building environment to transition
towards the use of lasting and
sustainableproducts.AsCEMEX,wego
hand in hand with our clients and
partners in creating a Low-Carbon
Economy where the use of innovative
building materials and solutions is
drivingthemarket.Wewillcontinueto
provide green building services to
promote building codes and
certifications which derive in high
performancebuildingstandards.
• Measuring Life-cycle impacts: we will
continue to advocate for the universal
implementation of Life-cycle
Assessment (LCA)whenmeasuring the
carbon emissions in infrastructure and
buildings.Thewaydataispresentedand
the disparity inmethodologies used to
measureandcompareemissionsacross
industries, influences regulatory
decision making and public opinion.
More quality data, transparency and
robustLCAstandards,arestillneeded.
LOOKINGFORWARD
CEMEXPOSITIONONCLIMATECHANGE
21
ImplementationofLCAstandardsacross
all building materials industries, would
enableatransparentandfairanalysisof
the real carbon intensity of different
materialsandencouragetherightpolicy
stimulus to promote low carbon
products. For example, according to
differentstudiesanalyzingLCAofwood,
up to 72% of carbon emissions from
wood are not being counted for,
challenging the assumption that wood
construction materials are less carbon
intensive than steel or concrete.
Concrete’s embodied carbon footprint
could be up to 6% less intensive than
that of wood products when these
emissions are considered; moreover,
concrete can be the greener choice
among all building materials when
measuredoveritscompletelifecycle.
• Contribution to a Circular Economy:
CEMEX currently consumes as
alternative fuels or as alternative raw
materials 32 times more waste from
other industries than the waste we
generateandsendtolandfill.Webelieve
there is potential to do more to
consolidate ourselves as the preferred
destination for relevant waste streams
comingfromindustrial,commercialor
municipalsourcesaswellastoturninto
abusinessopportunitythepossibilityof
reprocessing the inert waste coming
from excavation, demolition and
construction activities, transforming it
into recycled aggregates than can be
usedintheconcreteproductionprocess
or in pavement projects. Circular
Economy is a natural extension of our
core businesses, we will devote great
effortstoprovidewastesolutionstothe
growingmetropolitanareas.
• Monitoring,ReportingandVerification
(MRV): is key to maintaining
accountability.We shall continue tobe
transparentinourexternalreportingof
climatechangeperformanceindicators,
alwaysrecognizingtherisksassociated.
Weshallmaintainandevenenhancethe
third-party verification of our key
performance indicatorsso theprogress
in our Climate Action strategy can be
tracked and monitored by all relevant
stakeholders.
CEMEXPOSITIONONCLIMATECHANGE
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Thispositionpapercontainsforward-lookingstatementswithinthemeaningoftheU.S.federalsecuritieslaws.CEMEXintendstheseforward-lookingstatementstobecoveredbythesafeharborprovisionsforforward-lookingstatementsintheU.S.federalsecuritieslaws.Insomecases,thesestatementscanbeidentifiedbytheuseofforward-lookingwordssuchas“may,”“assume,”“might,”“should,”“could,”“continue,”“would,”“can,”“consider,”“anticipate,”“estimate,”“expect,”“plan,”“believe,”“foresee,”“predict,”“potential.”“target,”
“strategy,”“intend”orothersimilarwords.Theseforward-lookingstatementsreflectCEMEX’scurrentexpectationsandprojectionsaboutfutureeventsbasedonCEMEX’sknowledgeofpresentfactsandcircumstancesand
assumptionsaboutfutureevents,aswellasCEMEX’scurrentplansbasedonsuchfactsandcircumstances.Thesestatementsnecessarilyinvolverisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfrom
CEMEX’sexpectationsreflectedinthispositionpaper.
©2020CEMEX,S.A.B.DEC.V.and/oritssubsidiaries.Allrightsreserved.
CEMEXPOSITIONONCLIMATECHANGE
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