Global Cement (GC): What are the stand-out findings from the 2020 Getting the Numbers Right (GNR) database?
Claude Lorea (CL): The 2020 cement industry GNR data, the most recent we can publish due to competition law, shows a continuation of the good work that is taking place in our sector. This has to be seen in the context of the Global Cement & Concrete Association’s (GCCA) Net-Zero Roadmap. We have now reached a 22% reduction in CO2 emissions per tonne of cementitious materials. This includes the savings made through using alternative fuels, the use of which is now 10 times higher than in 1990. Energy efficiency has also improved by 19% over the same 30 year time-frame.
Elsewhere in the GNR database we can see that we are on track to meet the targets set out by GCCA’s Net Zero Roadmap. It is a very promising trend and we see acceleration too in some cases.
GC: Was there anything in the data that surprised you? For example, is it possible to see the effects of the Covid-19 pandemic in the data?
CL: There were no big surprises in the data for 2020 and I would say that there were no discernable effects on accuracy or coverage levels due to the pandemic. There may have been some minor effects due to shutdowns in some markets, but this is a small effect in the overall dataset.
GC: You mentioned coverage, which varies by region in the GNR. How is this changing with time?
CL: In 2020 we were able to improve coverage once again, but this is a long process. When we took over the GNR database at the end of 2019, coverage was actually declining year-on-year, so it is great that we have been able to turn this around.
In Europe, Latin America and North America we have very good coverage, above 75%. There are then regions where coverage is lower, for example India and Africa. The coverage is steadily increasing in these regions. For example, in Africa, we now have Dangote Cement contributing to the GNR database as a GCCA member. This is a major development that we hope will encourage others to contribute too.
If you asked me to point out the biggest weakness of the GNR database right now, it is coverage in China, which is only around 5%. This is a big gap in the database. Improving Chinese coverage is a key priority in the coming years.
GC: How else has the GNR database changed since GCCA took it over?
CL: We have migrated to a new database architecture, which we call GNR 2.0. It is much more user friendly, which makes it easier for GCCA members - and others - to contribute. When they do, they get a benchmark report, which shows them their performance relative to others. This is a very valuable tool.
Of course, contributing to the GNR is a major undertaking. That has been off-putting for some in the past, but it is entirely worthwhile. The vast majority of data needed - fuel mix, energy use, raw materials, clinker and cement volumes, selected emissions - is already available at plant manager level. It is well within the abilities of existing plant staff, or those at corporate level in the case of larger entities. GCCA can help new members with
reporting, sometimes with discussions for up to a year before a company starts to report in full. Beyond that, the first step is to know your own performance, the second is to be able to benchmark against peers. This encourages action towards CO2 reduction in line with GCCA’s thorough and comprehensive reporting methodology. Another part of joining is that companies will often contribute historical data, which further enhances our collective efforts to track changes within the industry.
Another important change that we have made is to somewhat restrict access to the GNR database and make users sign up to a code of conduct. We found that, previously, it was too easy for cement producers to go online, access the data and calculate the benchmarks themselves, without contributing their own data. This may have been a contributing factor to the declining coverage seen in the 2010s.
Another feature, which will come online later in 2023, is a new data visualiser. This will further enhance the useability of the information and help cement sector participants to increase their sustainability, with a particular emphasis on the GCCA’s Net Zero Roadmap.
Aside from this, we have initiated a review of the CO2 reporting protocol, which was last updated in 2013. There are many aspects of monitoring and reporting that need to be updated. For example, there is no accounting method for CO2 capture, recarbonisation or calcined clay in the current version of the CO2 reporting protocol. Including such factors will represent an important overhaul.
GC: Are there any parameters within the GNR database heading the ‘wrong way’ or too slowly?
CL: In the face of the climate change crisis, we all have to move as quickly as we can. Ours is a complex industry to decarbonise – but the prize is great. We know that full transformation of production, materials, energy and so on, cannot change at once overnight – it is just not realistic. We do believe however, that the goal of net zero emissions is achievable and it is important to note that we are, overall, on track. One area that we want to focus on indeed is the acceleration in the trend towards lower clinker to cement ratios.
GC: Is the database dominated by cement producers one might perceive to be the ‘best’ performers?
CL: Honestly there is no way of knowing for sure - if we don’t collect, we don’t know! The database is entirely anonymous, so even I can’t track the data from individual plants. This is quite deliberate and should encourage individual producers to join, regardless of their current performance. Indeed, those performing poorly have the most to gain. What I would say is that we may have the most competent monitoring companies in the sector.
On the other side of the coin, however, it is clear that higher coverage already exist in regions that we know to perform more strongly, particularly Europe. GNR has 95% coverage there, so that’s almost everyone, regardless of how good or bad they are.
GC: The GNR database is very CO2 focused, and rightly so. However, are there any plans to expand to things like water use and biodiversity?
CL: We are currently exploring ways to improve our monitoring of other sustainabilty factors such as these. However, all GCCA members are already required to operate according to the five pillars of GCCA’s sustainability charter - Health and Safety, Climate Change and Energy, Social Responsibility, Environment and Nature & the Circular Economy. Full members will start to report on these parameters for the first time in their 2022 reports, including safety incidents, water use, and efforts towards enhancing biodiversity. Note, however, that this data will not have as many participants as the main GNR database, as there will not be any non-GCCA-member contributions.
GC: What are the long-term targets for the GNR database?
CL: In the next five to 10 years I would like to see 80% coverage in the GNR database. This is what we need for the database to truly represent the whole. There are many places where we already have close to 80%, but remember that 60% of all cement plants are in China. This is the main area where we can improve the database... and we are working on it!
GC: Thank you for your time today - We look forward to following the database in the future!
CL: You are very welcome!
GNR Database
The Getting the Numbers Right (GNR) database is a unique, independently managed and externally verified set of data gathered directly from cement producers since 2001 and which covers the time period 1990 to 2020. It has been maintained by the GCCA since late 2019, prior to which it was under the auspices of the World Business Council for Sustainable Development. Due to the GCCA being based in the UK and covered by the UK Competition and Markets Authority (CMA), the data can only be published following a two year delay. Data is provided anonymously and can be interrogated by nation and region.