Displaying items by tag: Cement Sustainability Initiative

India/UK: The Global Cement and Concrete Association (GCCA) has launched GCCA India. As part of GCCA’s strategic partnership with the World Business Council on Sustainable Development the new office, based in Mumbai, will take over the work of the Cement Sustainability Initiative (CSI) India, which formerly served as the sector’s sustainability alliance.

GCCA India plans to ensure that, from a sustainability angle, innovation in technology and manufacture, and collaboration across the wider built environment, the Indian cement sector can play a key leadership role. It will develop a work program that will focus on the wider global GCCA priorities but with practical application across the Indian built environment.

India: UltraTech Cement aims to increase contribution of so-called ‘green energy’ to 25% of its total power consumption by 2021 from 10% at present. It also intends to raise its contribution of renewable energy to its total power consumption by five times in the next two years to 2021 to over 10%. By building capacity for renewable power the cement producer intends to become one of the largest users of renewable energy in the Indian cement sector.

In addition to renewable energy, the green energy contribution includes energy generated through waste heat recovery systems (WHR). During its 2019 financial year UltraTech commissioned 28MW of WHR systems to take its total generation from WHR to 8% of total power consumption. Further upgrades are expected to be completed in a phased manner by 2021, taking its WHR share to 15% of its total power requirement.

“To bring the cement sector in line with the Paris Agreement on climate change, UltraTech Cement’s annual emissions will need to fall by at least 16% by 2030. There are a number of solutions for reducing emissions associated with cement production as identified by the latest Low Carbon Technology Roadmap published by International Energy Agency (IEA) in partnership with Cement Sustainability Initiative (CSI). These solutions need to be deployed at scale to meet the decarbonisation challenge,” said K K Maheshwari, the managing director of UltraTech Cement.

UltraTech Cement has set a target to reduce its CO₂ emissions by 25% from its 2005 – 2006 level by 2021. The company is also working on CO₂ reduction strategies including energy efficiency, alternative fuels, WHR, renewable energy and reducing its clinker ratio.

Brazil: The National Union of Cement Industry (SNIC) and the Brazilian Portland Cement Association (ABCP) have launched a Cement Technology Roadmap to 2050. SNIC president Paulo Camillo Penna said that the document would help the local industry cut its carbon footprint in the medium and long term. The roadmap was developed with the International Energy Agency (IEA), the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD), the International Finance Corporation (IFC) of the World Bank and a group of academics led by José Goldemberg.

The roadmap intends to reduce specific CO2 emissions by over 30% to 375kg CO2/t of cement in 2050. Key actions to 2030 include strengthening national and international cooperation, promoting new cement standards, raising the clinker substitution rate, promoting the use of alternative fuels in compliance with the National Policy on Solid Waste (PNRS), sharing best practive in energy efficiency and promoting resaerch and development in new greenohuse has mitigation technologies.

Fascinating information came out of LafargeHolcim last week as part of its Capital Markets Day 2018. The building materials company said it is expecting sales growth to slow in 2019 but earnings to grow. Jan Jenisch, the chief executive officer (CEO), said that the group was ‘aggressively’ moving forward in aggregates and ready-mix concrete. Alongside this, its recent divestment of its Indonesian operations was declared a ‘major’ milestone in focusing its portfolio and cutting down on debt.

Graph 1: LafargeHolcim’s major product lines by sales (%), 2015 – 2017. Source: Company reports.

Graph 1, above, gives a good idea of how LafargeHolcim has been changing its business. Cement sales as a percentage of total sales have been cut to 60% in 2017 from 67% in 2015. Ready-mix concrete and other sales (including asphalt) have risen to 26% from 19%. Aggregate sales have stayed at around 14%. If the world is making too much cement then LafargeHolcim is switching to concrete and balancing out its supply chain. Naturally, this was backed up in one of its investor presentations showing a more even split in the world building materials market between cement, concrete and aggregates. This fits with Jenisch’s background as the former head of Sika. That company manufactures a wide range of specialty chemicals for the construction and automotive industries.

That shift in focus could also be seen at the inaugural Global Cement and Concrete Association (GCCA) event in late November 2018 where concrete was very much the centre of attention from a sustainability angle. The main companies involved with the GCCA are vertically integrated ones and, by switching its product balance, LafargeHolcim seems to be moving in the same direction. In a sense this is a continuation of the synergy-seeking that was promised when Lafarge and Holcim merged in 2015.

Graph 2: Forecast cement demand growth in LafargeHolcim markets. Source: LafargeHolcim investor presentation 2018.

The other interesting question for LafargeHolcim is where next for growth? The graphic above shows a number of promising areas, including India and east Sub-Saharan Africa. Also, note the slowdown forecast for China. That renewed faith in India is timely this week given the expectation by the Indian Cement Manufacturers Association that cement demand growth in the country will rise by at least 10% in the current financial year to March 2019. If the momentum holds up after a strong first half then it will mark the fastest increase for the region since the market slowed down in 2011. LafargeHolcim doesn’t appear to be on course to grow significantly in India anytime soon but it has major ‘skin in the game’ in a promising market.

Another indication of the vibrancy of the Indian market also came this week from the Cement Sustainability Initiative (CSI) with the results of a status review from its low carbon technology roadmap (LCTR). The results were fairly good for such a large industry, with falling CO₂ emissions intensity, growing co-processing rates and a decreasing clinker factor. This report carried a sad note given that the work that the CSI does will be taken over by the GCCA in January 2019. However, if this is the last we’re going to hear from the CSI, then they’ve left on a high note.

Lastly, leafing through old financial reports may not be everybody’s idea of a good time but it does let one see how LafargeHolcim’s product mix has changed. It also gives one time to catch up with old faces. Like Bruno Lafont and Eric Olsen. Once again those two former executives popped up in the latest twist of the on going Lafarge Syria legal case as a group of Yazidi women have applied to become ‘civil parties’ in the case. Whether the war crimes inflicted upon the Yazidis can be pinned on Lafarge Syria remains to be seen. Yet, for all of the LafargeHolcim’s business reorganisation, its predecessor’s conduct in Syria continues to make headlines. However much progress the company makes in turning around its fortunes, if it can be, this will continue to overshadow everything. Once a line is drawn under the affair then LafargeHolcim can move on properly.

India: A report by the Cement Sustainability Initiative (CSI) shows that the local cement sector is on track to meet its 2030 targets from the low carbon technology roadmap (LCTR). Direct CO₂ emission intensity fell by 5% in 2017 in the Indian cement sector compared to the 2010 baseline. CO₂ emission intensity, including onsite or captive power plant (CPP) power generation, was reduced by 6.8% compared to the 2010 baseline. The alternative fuels thermal substitution rate (TSR) increased by 5 times from 2010 to 2017. The sector consumed more than 1.2Mt of alternative fuels in 2017.

“Sustainability is a journey, not a destination. In our globalised and interconnected world, no one can solve alone the challenges ahead of us and the only opportunity to succeed is through collaborative partnerships, where the common interests of all are considered as more important than the sum of individual interests. This is exactly the spirit that has animated the CSI’s low carbon journey since 1999. This flagship project - with its members - has developed, implemented and shared collective solutions for measuring, reporting and improving its greenhouse gas reduction performance, year after year,” said Philippe Fonta, managing director CSI.

The CSI and the International Energy Agency (IEA) worked with nine local CSI member companies - ACC, Ambuja Cements, CRH, Dalmia Cement (Bharat), HeidelbergCement, Orient Cement, Shree Cement, UltraTech and Votorantim Cimentos - to carry out the status review on the sector’s performance trends, continuous implementation measures and notable achievements based on the milestones set in the 2013 LCTR. The Status Review Report was developed in consultation with Confederation of Indian Industry (CII), with support from International Finance Corporation (IFC) and the Cement Manufacturers Association (CMA).

The findings of the report show that the direct CO₂ emission intensity was reduced by 32kgCO₂/t cement to 588kgCO₂/t cement in 2017 mainly due to an increased use of alternative fuel and blended cement production, coupled with a reduction in clinker replacement factor. However, the study also shows that significant efforts will be needed to meet the 2050 objectives of 40% reduction. The CO₂ emission intensity (including onsite or CPP power generation) has reduced by 49kgCO₂/t cement to 670kgCO₂/t cement in 2017 compared to the baseline year. The report has highlighted the adoption of waste heat recovery (WHR) systems by local cement plants.

The alternative fuels TSR increased to 3% in 2017 from 0.6% in 2010. More than 60 cement plants in India have reported continual usage of alternative fuels, with 24% of the total alternative fuels consumed as biomass. The share of blended cements used in the total quantity of cement manufactured increased to 73% in 2017 from 68% in 2010, largely due to the market’s growing acceptance of blended cement, emerging awareness of sustainability concepts, the availability of fly ash from thermal power plants and the use of advanced technology. The production of Pozzolana Portland Cement grew to 65% in 2017 from 61% in 2010. The share of Portland Slag Cement in cement production remained flat, at less than 10%, over the same period. The clinker factor reduced to 0.71 in 2017 from 0.74 in 2010.

In August 2018 the Global Cement and Concrete Association (GCCA) said it was taking over the work previously done by the CSI from 1 January 2019.

Chief executives from over 30 companies attended the Global Cement and Concrete Association (GCCA) inaugural event last week in London. Its first president Albert Manifold, the chief executive officer (CEO) of CRH, laid out the line by saying that, “For the first time we have a global advocacy body.” He followed this up by emphasising that ‘our product’ is the most used man-made product in the world. Just like the Cement Sustainability Initiative (CSI), the body the GCCA is partly-replacing, it is a CEO-led organisation. The target is very much about giving a global voice to the cement and concrete industries and the vertically integrated companies that produce these products.

Along with the head of CRH, the leaders of LafargeHolcim, HeidelbergCement, CNBM, Votorantim, Buzzi Unicem and Eurocement, amongst others, were all on the attendance list too. That kind of representation gave the event a charged air and a real sense of intent. At present the association says it represents 35% of global cement production and its aim is to reach 50%. That compares to the 30% base that the CSI had.

Representatives from some major cement associations were also present, including Europe’s Cembureau, the Federación Interamericana del Cemento (FICEM), the Canadian Cement Association and the VDZ. The only thing stopping the US Portland Cement Association being there was reportedly the Thanksgiving holiday. Although not comprehensive, that kind of representation suggests serious interest from the regional cement associations. The word from the GCCA CEO Benjamin Sporton was that the GCCA is here to provide a global level of coordination to the advocacy and sustainability side of the industry dealing with global organisations like the United Nations (UN), development banks, other associations and non-government organisations (NGOs).

How this will work in practice has yet to be seen, but at the very least, the GCCA can take over the work of the CSI and run with it. The word from the attendees we spoke to was uniformly positive for the association. It was seen as a long-overdue move to finally give the industry some sort of uniform voice at a global scale. In this sense it is catching up with similar bodies in industries like wood and steel. One benefit from moving from the CSI to a full advocacy organisation is that the industry can actually talk about the good things it does rather than being limited to sustainability and environmental data reporting. It seems like a small change in focus but it’s a big shift in mind-set.

A cynic might suggest that the exercise is one of a dirty industry trying to wrest the Overton window, or window of public discourse, back from legislators facing mounting environmental pressure. The latest UN Emissions Gap Report for 2018, for example, reported this week that CO₂ emissions rose in 2017 after four consecutive years of decline. This is the latest environmental report in a long line pointing out bad news. Yet, the GCCA’s unwritten mantra, that concrete improves lives, is sound. Somebody or something needs to link it all up. That somebody might just be the GCCA.

A review of the inaugural annual general meeting and symposium of the GCCA will be published in a forthcoming issue of Global Cement Magazine.

India: Mahendra Singhi, the group chief executive officer (CEO) of Dalmia Cement, says that the company aims to be carbon negative by 2040. Singhi made the announcement at the Global Climate Action Summit in San Francisco, US, according to the Indo-Asian News Service. The cement producer is planning to increase its low-carbon product portfolio and use more ‘green’ fuels and raw materials in all of its 14 plants in India.

Dalmia Cement is the first Indian cement company to join RE 100 and it is committed to a target of 100% renewable electricity use. Singhi said that the major challenge is to convert the climate risks into business opportunities while sustaining business growth for the benefit of present as well as future stakeholders. Singhi was previously the Indian co-chair of the Cement Sustainability Initiative (CSI).

Singhi said that Dalmia Group has been able to reduce carbon dioxide emissions to 526kg/t of cement on a group average and to 342kg/t in its eastern operations. According to the CDP (formerly Carbon Disclosure Project) cement sector report in April 2018, Dalmia Bharat achieved the first rank in CDP's low carbon transition league.

UK: The Global Cement and Concrete Association (GCCA) has appointed Claude Loréa as Cement Director. She will take up the role in early November 2018 and will be based at the association’s offices in London. Loréa joins the GCCA from European cement industry body, Cembureau where she is Deputy Chief Executive and Industrial Affairs Director. Loréa will report to incoming GCCA chief executive, Benjamin Sporton and will be a member of the executive team.

Loréa will lead all aspects of GCCA work related to cement, calling for a practical understanding of its chemistry, production, co-processing, data collection, standards as well as international climate policy, regulatory requirements and trends. With sustainability a key priority of the GCCA, she will also oversee the smooth transition of the activities of the Cement Sustainability Initiative to the GCCA.

Over her career Loréa has built up knowledge of the cement industry including the sector’s sustainability agenda where, among other achievements, she has led the development of the European Cement Industry Low Carbon Economy Roadmap. A Belgian national, she holds a degree in Civil Engineering from the University of Brussels and has worked as an environmental consultant and auditor. She gained her first hands-on experience of the cement industry as an environmental engineer with Cimenteries CBR in Belgium, in time moving to Cembureau where she was appointed technical director and subsequently deputy chief executive.

The Global Cement and Concrete Association (GCCA) announced this week that it intends to take over the work done by the Cement Sustainability Initiative (CSI). This marks a change in how the cement industry as a whole approaches sustainability and in the wider context how the sector manages itself on the world stage.

The CSI was set up in 1999 with the aim of advancing a sustainability agenda for the cement industry. It has done this by laying out strategy for the industry to follow in the form of technology roadmaps and publishing its ‘Getting the Numbers Right’ (GNR) data on CO₂ and energy performance information. By 2018 it had 24 cement company members composed of nine core members, 14 participating members and one affiliate member. It represents around 2.4Bnt/yr of global cement production capacity or over half of the world production, according to Global Cement Directory 2018 data.

The idea behind the membership was that the core members are all members of the World Business Council for Sustainable Development (WBCSD) and that the members would contribute ‘modest’ funds to run the organisation. That last point about WBCSD membership is worth noting because members need to stick to conditions such as publishing an annual sustainability report and agree to have the sustainability report reviewed and benchmarked by the WBCSD.

Figure 1: Outline of selected current global cement organisations with a sustainability remit. Source: Association websites, Global Cement Directory 2018.

The GCCA, which formed in early 2018, says it had formed a ‘strategic’ partnership with the WBCSD and that it will take over the work previously done by the CSI from the start of 2019. Although there’s no mention so far whether GCCA members have to actually become WBCSD members with all that this entails. At present the GCCA consists of nine major international cement producers, including over half of the world’s top 10 producers by production capacity, with a production base in every inhabited continent except Antarctica. Roughly speaking it represents just under 2Bnt/yr of global cement production capacity or about half of the world’s total.

Now where this starts to get confusing is that other cement associations exist with their own established advocacy roles and sustainability agendas. The established players include the various regional associations such as the Portland Cement Association in the US, Cembureau in Europe and so forth. The multinational ones also often represent national bodies.

Then there is the World Cement Association (WCA), which formed in 2016. This independent body is a private company run out of an office in London, UK with non-profit aims. It has 45 members but only three quarters are actual cement producers. Of these most are single-country cement manufacturers. The glaring standout is China National Building Material (CNBM) and its subsidiaries, representing over half of the association’s member’s cement production capacity. The production capacity of the WCA’s members is around 1Bnt/yr or a quarter of the global total. More than half of this comes from CNBM and its subsidiaries. Unsurprisingly then that Song Zhi Ping, the head of CNBM, is the president of the WCA. It too supports a sustainability agenda, saying that it, “seeks to co-operate with the WBCSD, CSI and regional and national Cement Associations.” What is noteworthy is how few of the current members of the WCA joined the CSI previously.

There is definitely a need for a global organisation advocating sustainability issues for the cement industry and by taking over the work of the CSI and the GCCA has cornered this part of what a global cement association might do. However, the GCCA represents less cement production capacity than the CSI did. The main omissions are the Indian producers, led by UltraTech Cement, as well as others. It seems likely that they will join the GCCA following the end of the CSI but there is no guarantee.

The other point arises when looking at these various cement associations is: who does what exactly? The CSI’s focus on sustainability gave it a purpose that it did well with a genuine appearance of independence. Its narrow focus also gave it a complimentary role to the existing national and regional associations. Global bodies like the GCCA and the WCA are clearly more into advocacy territory for their members. Also, a more general association approach like the GCCA and the WCA may clash with regional bodies like the PCA and Cembureau. Regional bodies seem better suited to the way governance works globally with regional groups such as the European Union (EU) or government departments in continental sized countries such as the US, China and India. However, a truly global cement body could respond better to coordinated environmental lobbying and fill in the gaps around the world in places with looser regional representation.

Sustainability is the immediate link between the CSI, the GCCA and the WCA. Indeed the WCA recently held a ‘Global Climate Change’ forum in Paris to discuss its own climate action plan. Yet, with the GCCA taking over the work the CSI does and the WCA saying it wants to cooperate with the CSI, the obvious outcome is that the GCCA will become the world’s apex cement association. It will represent the companies with the most cement production capacity, have a presence in every inhabited continent and take the lead on WBCSD issues. Beyond this though it will be interesting to see what, if anything else, the GCCA chooses to do.

UK: The Global Cement and Concrete Association (GCCA) has formed a strategic partnership with the World Business Council for Sustainable Development (WBCSD) to facilitate sustainable development of the cement and concrete sectors. As part of the new agreement, the work carried out by the Cement Sustainability Initiative (CSI) will transfer from WBCSD to the GCCA on 1 January 2019 with activities managed out of the GCCA’s London offices. The new partnership will also create synergies between work programmes to benefit both the GCCA and WBCSD and their respective member companies.

“Transferring the activities of the CSI to the GCCA is a logical step and further underlines the cement and concrete sector’s commitment to advance sustainable development across the construction cycle. As the authoritative worldwide voice of the cement and concrete sector, the GCCA is ideally placed to take this work to the next level, building on the strong foundations established by WBCSD,” said Albert Manifold, chief executive officer (CEO) of CRH and GCCA President.

The CSI, which was established in 1999 and currently operates under the auspices of WBCSD, is a global effort by 24 major cement producers to advance sustainable development. Over its 19-year history, the CSI has focused on understanding, measuring, managing and minimising the impacts of cement production and use by addressing a range of issues including: climate change, fuel use, employee health and safety, airborne emissions, concrete recycling and quarry management.