Cement industry calls for long-term policy certainty as it aspires to reduce CO 2 emissions by 20-25% by 2030
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1 Cement industry calls for long-term policy certainty as it aspires to reduce CO 2 emissions by 20-25% by 2030 Cement industry leaders announce plans to reduce their emissions by 20% to 25% by 2030 Action plans launched at COP21 today by cement companies of the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD) call for an international CO 2 policy framework and the removal of existing barriers in order to unlock the sector s full reduction potential Cement Action Plan is part of WBCSD s Low Carbon Technology Partnerships initiative (LCTPi) to accelerate the deployment of low carbon solutions Paris [December ] Today, at COP21 in Paris, the cement industry reaffirmed its commitment to help tackle climate change, releasing a set of action plans aimed at reducing carbon emissions by 1Gt by 2030 compared to business as usual. The report identifies the barriers the industry faces, what needs to be done, by whom and when. Peter Bakker, President & CEO of WBCSD, said: Cement production accounts for approximately 5% of worldwide man-made CO 2 emissions. This collective effort by the cement industry to mitigate its emissions is highly encouraging and showcases the importance of leadership and collaboration in making the transition to a low carbon economy. These business measures can only achieve their full potential if backed by the right policy frameworks and financial incentives. We count on the support of policymakers worldwide and the financial community in removing the barriers to scale up. The Low Carbon Technology Partnerships initiative is an unprecedented business collaboration to scale up the development and deployment of low carbon technologies. Among the member companies, 86 have made 94 endorsements and are ready to move to implementation. There is a lot of potential for emission reductions, but in order to unlock it we need the whole private sector to be involved, and we need to work with governments and other stakeholders in order to remove regulatory and other barriers" said Fernando González, CEO of Mexico-based CEMEX. The LCTPi on Cement has gathered CEO commitment from 16 cement companies around the world. Building on 15 years of collaboration, the CSI and its members are working towards scaling up their efforts and leveraging the implementation of identified business solutions to a broad majority of cement companies worldwide. Engaging the whole cement sector would be delivering an additional reduction of close to 1 Gt of CO2 by 2030, which is about the same amount of total CO 2 emissions of Germany in said Philippe Fonta, Managing Director of the CSI at WBCSD. In many cases, the technologies are already available, but there are either political barriers that need to be removed or financial incentives to be put in place in order to scale up investment in implementing existing and developing breakthrough technologies required to deliver meaningful reduction targets. COP21 is a unique moment in history and an unprecedented opportunity deliver results that will scale up decisive action on climate. We need to ensure that business solutions to climate change are
2 implemented to deliver the low carbon vision we work for. Explained OP Puranmalka, Managing Director of UltraTech Cement. It is simply not possible to achieve robust and sustainable growth without taking consistent action to promote sustainable development. COP 21 represents the beginning of a new phase in which it will be necessary to combine the efforts of the sector and other key stakeholders to ensure that low-carbon technology initiatives are implemented said Walter Dissinger, CEO of Votorantim Cimentos. The LCTPi Cement report identifies a range of actions that tackle emissions of the sector, including expanding the use of alternative fuels and cement components, developing new low carbon cements, looking into avoided emissions in the use phase of concrete as a sustainable building material and exploring novelties in the production process. "Since 2001 the cement sector has demonstrated its ability to make progress on mitigating its impact on climate change. The LCTPi provides additional opportunities to accelerate these efforts and widen engagement through actions by all members of the industry, together with other stakeholders, to overcome barriers and achieve performance matching the best in the sector" said Eric Olsen, CEO of LafargeHolcim. To help achieve the goals outlined in the Action Plan, companies will expand the use of tools developed and pioneered by the CSI on CO 2 and energy measurement, reporting and benchmarking across the sector. The CSI and its members are working to break down barriers and take decisive steps around the world in addition to the development of technology roadmaps on a global scope. Customized national roadmaps have been or are being launched in India, Brazil, Egypt and potentially in China to allow for the sharing of learnings and know-how. Engaging the building and infrastructure value chains to reduce cement s footprint will further contribute to the use of concrete as a sustainable and resilient construction solution. List of companies supporting the Action Plan: Cementos Argos CEMEX CRH Dalmia Cement GCC HeidelbergCement InterCement Italcementi Group LafargeHolcim SCG Cement Secil Shree Cement Titan UltraTech Cement Votorantim Cimentos West China Cement ENDS Notes to Editors For more information, please contact: Felicity Glennie-Holmes WBCSD Director Communication glennie-holmes@wbcsd.org +41 (0) Tim Wild (London) Havas twild@maitland.co.uk Philippe Fonta WBCSD, Managing Director, CSI fonta@wbcsd.org +41 (0)
3 About WBCSD & the Low Carbon Technology Partnerships Initiative (LCTPi) At COP20, WBCSD launched the Low Carbon Technology Partnerships initiative (LCTPi) with SDSN (Sustainable Development Solutions Network) and IEA (International Energy Agency). Supported by the French Presidency of COP21, the LCTPi is part of the Lima-Paris Action Agenda. It aims to present a series of concrete action plans at COP21 for the large-scale development and deployment of low-carbon technologies. It is a unique initiative whose size and scale is unprecedented. Over 150 companies and 70 partners have joined together to collaborate on low-carbon action plans designed to reach ambitious targets on emissions reduction. LCTPi is a collaborative platform that brings together WBCSD s Action2020 Business Solutions, SDSN s Deep Decarbonisation Pathways and IEA s Technology Roadmaps to: Accelerate the diffusion of existing technologies by removing technological, market and social barriers and introducing required policy and financial instruments Develop Public Private Partnerships (PPPs) on the Research, Development, Demonstration and Deployment (RDD&D) of potentially game changing new technologies. About Peter Bakker, President & CEO of WBCSD Peter Bakker is the President and CEO of the World Business Council for Sustainable Development. Mr. Bakker is a distinguished business leader who until June 2011, was the CEO of TNT NV, the Netherlandsbased holding company of TNT Express and Royal TNT Post. Under his leadership TNT rose to the forefront of Corporate Responsibility via a ground-breaking partnership with the UN World Food Program and ambitious CO 2 reduction targets from its Planet Me initiative, holding multiple-year topranking positions in the Dow Jones Sustainability Index. Mr. Bakker is the recipient of Clinton Global Citizen Award (2009); SAM Sustainability Leadership Award (2010); and has been an Ambassador Against Hunger for the UN World Food Programme since In addition he is the Chairman of War Child Netherlands. About CSI The Cement Sustainability Initiative (CSI) is a global effort by 26 leading cement producers, with operations in more than 100 countries. Collectively these companies account for around 30% of the world s cement production and range in size from very large multinationals to smaller local producers. All CSI members have integrated sustainable development into their business strategies and operations, as they seek strong financial performance with an equally strong commitment to social and environmental responsibility. Acknowledging that the cement manufacturing process is energy intensive and chemically releasing CO2, CSI companies have customized the reference GHG Protocol to fit to their operating conditions and they developed the most comprehensive database of CO2 and energy emissions of any sector, called the Getting the Numbers Right (GNR) database. Using this database (9 years of reporting in 2015) to monitor progress and set up baselines, the CSI partnered with the International Energy Agency (IEA) in 2009 to develop the first sectoral low-carbon technology roadmap for the cement sector, paving the way for other sectors to follow. This exercise is now being duplicated at national level, through the roadmaps in India, Brazil and Egypt with the ambition to initiate one similar exercise in China. The CSI is an initiative of the World Business Council for Sustainable Development (WBCSD).
4 About Philippe Fonta, Managing Director, CSI & TIP, WBCSD Philippe Fonta has about 25 years of experience with private companies, working in cooperation with international institutions, policy-making bodies and non-governmental organizations. Occupying various management positions, including Director of Environment and Head of Sustainable Development for Airbus, one of the two major aircraft manufacturers, he also endorsed the responsibility of Chairman of the environmental committee of the aerospace manufacturers trade association, which is the official observer to the environmental work carried out at the International Civil Aviation Organisation (ICAO), the UN aviation-specialized standard- and policy-making agency. Mr. Fonta is now bringing his technical engineer s background, his experience in handling economic scenarios and managing international cooperation to the cement sector, leading WBCSD s CSI since March In September 2012, Mr. Fonta also took over the responsibility of the WBCSD s Tire Industry Project (TIP), which gathers 11 major tire producers, representing more than 70% of the world s tire manufacturing capacity. This group is working together through the WBCSD in moving forward their sustainability agenda. About CEMEX CEMEX is a global building materials company that provides high-quality products and reliable services to customers and communities in more than 50 countries. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future. About Fernando González, CEO of CEMEX Fernando A. González first joined CEMEX in During his first eight years with the company, he held several senior management positions in Strategic Planning, New Business Development, and Human Resources. Afterwards, he headed the operations of CEMEX in South America and the Caribbean, Europe, the Middle East, Africa, Asia, and Australia; as well as corporate areas including Finance, Strategic Planning, and Administration. Fernando A. González was appointed Chief Executive Officer in Mr. Gonzalez earned his B.A and M.B.A. from Tecnologico de Monterrey. About LafargeHolcim With a well-balanced presence in 90 countries and a focus on cement, aggregates and concrete, LafargeHolcim (SIX Swiss Exchange, Euronext Paris: LHN) is the world leader in the building materials industry. The Group has 115,000 employees around the world and combined net sales of CHF 32 billion (EUR 26 billion) in LafargeHolcim is the industry benchmark in R&D and serves from the individual homebuilder to the largest and most complex project with the widest range of value-adding products, innovative services and comprehensive building solutions. With a commitment to drive sustainable solutions for better building and infrastructure and to contribute to a higher quality of life, the Group is best positioned to meet the challenges of increasing urbanization. About Eric Olsen, CEO of LafargeHolcim Eric Olsen, 51 years old, American and French citizen, is Chief Executive Officer of Lafarge Holcim since July He was formerly Executive Vice President Operations of Lafarge and a member of its Executive Committee.
5 He joined the Lafarge Group in 1999 first as Senior Vice President for Strategy and Development of Lafarge North America. Since 2001, he served as both President, North-East Cement region and Senior Vice President, Purchasing. Since 2004, Eric Olsen served as Chief Financial Officer and Senior Vice- President for Lafarge North America, a NYSE traded company. From 2007 to 2012, he served as Executive Vice President, Organisation and Human Resources of Lafarge Group. Prior to Lafarge, Eric Olsen started his career in the field of M&A at Deloitte & Touche, Banque Paribas and was a partner of Trinity Associates. He is a business graduate from the University of Colorado, Certified Public Accountant (Chicago, USA), and holds a Master of Business Administration from HEC international business school in Paris. Eric Olsen is presently a Board Member of Cimpress N.V. About UltraTech Cement UltraTech Cement Limited, an Aditya Birla Group cement major, is among the leading producers of cement in the world and the largest in India with a capacity of 67.6 million tonnes. With over US $ 3.5 billion in revenues and anchored by more than employees, UltraTech has 12 integrated units, 14 grinding units and 6 bulk terminals in India. Overseas, UltraTech has 2 grinding units and 1 clinkerisation plant in UAE, 1 grinding unit each in Bahrain & Bangladesh, and a bulk terminal in Sri Lanka. It is also the largest producer of white cement, wall care putty and Ready Mix Concrete in India. UltraTech offers solutions for the construction industry with its presence in building products -- dry mix mortar, concrete blocks and water proofing. A consumer validated Superbrand, UltraTech stands for premium quality, reliability, green technology and innovation. About OP Puranmalka, Managing Director of UltraTech Cement Limited OP Puranmalka is the Managing Director of UltraTech Cement Limited and leads the Aditya Birla Group s cement business. He provides strategic direction to the business and oversees the setting up of new plants, locating limestone reserves, and exploring global opportunities for mergers and acquisitions. Mr. Puranmalka s entrepreneurial abilities and deep knowledge of the cement business have guided UltraTech s foray into areas such as ready mix concrete, building material solutions and designer white cement products and its positioning as an end-to-end solutions provider for the construction industry. He is also a Director of the Aditya Birla Management Corporation Private Limited, the Aditya Birla Group s apex decision-making body that provides strategic direction to the various companies that are part of the Aditya Birla Group, a USD 41 billion global conglomerate. Mr. Puranmalka is President of the Cement Manufacturers Association, the apex body of cement manufacturers in India in the private and public sector. About Votorantim Cimentos Votorantim Cimentos, which has been in the construction materials business (cement, concrete, aggregates and mortars) since 1933, is one of the largest companies in the sector, with an annual production capacity of 54.5 million metric tons of cement and revenues of R$ 12.9 billion in Votorantim Cimentos has a network of operating units that are strategically located near the most important and faster growing consumer markets. In addition to Brazil the company has a presence in a further 13 countries, namely: Argentina, Bolivia, Canada, Chile, China, India, Morocco, Peru, Spain, Tunisia, Turkey, the United States and Uruguay.
6 About Walter Dissinger, CEO of Votorantim Cimentos Mr. Dissinger joined Votorantim Cimentos in June 2013 as President of the company s operations in Brazil. He became Global Chief Executive Officer (CEO) in January 1, Born in the USA to German parents, Walter is an industrial engineer graduated at Karlsruhe University, Germany, with an extension in Finance from Insead (France) and in Negotiation and Strategy from the Harvard Business School (USA). Mr. Dissinger s career was consolidated at Basf, where he began working as trainee and held different positions in Brazil, Argentina and Germany, including Director of Strategy and Business Development, Global Vice President of Performance Chemicals division and Regional Vice President of Agricultural Products for Latin America. Before joining Votorantim Cimentos, he occupied the position of Global President of Nutrition & Health Division at Basf and was a member of the Global Executive Committee.
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