The cement industry is responsible for around 7 to 8 per cent of global CO2 emissions every year. This makes it one of the largest industrial producers of greenhouse gas emissions. These primarily come from two sources: The calcination process, in which CO2 is produced as a by-product, and the combustion of fossil fuels to heat the kilns.
As a sustainable Swiss asset manager, we believe it makes sense to focus our climate engagement efforts on this sector. In Switzerland, around 80 per cent of the CO2 emissions of the Swiss equity market are attributable to the cement manufacturer Holcim (as at 2020/21).
Cement manufacturers take on challenges
Large listed cement companies such as CRH, Cemex, Holcim and Heidelberg Materials (formerly HeidelbergCement) are endeavouring to reduce CO2 emissions:
- Holcim aims to reduce CO2 emissions per tonne of cementitious materials to 420 kg by 2030. The company's management is therefore planning to make significant investments in carbon capture and storage (CCS) technologies. By 2030, over 5 million tonnes of CO2 are to be incorporated into building materials or permanently stored in the ground. Holcim is also active in recycling construction and demolition waste as part of its sustainability strategy.