Boral

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Boral discloses that it commits to reducing absolute scope 1 and 2 emissions by 46% by the fiscal year 2030 from the base year 2019, and scope 3 emissions by 22% per tonne of cementitious material within the same timeframe. However, these targets could not be translated to emissions intensity evaluations since the company does not disclose its annual cement production levels. Between 2020 and 2022, Boral decreased its emissions intensity by 1.3% a year. Its projected future scope 1 and 2 emissions intensity is also not expected to decrease in alignment with a 1.5°C pathway, which requires the company to deliver emissions intensity reductions of 2.3% annually over the next five years. Furthermore, the company’s locked-in emissions from current and planned assets are not expected to stay within its carbon budget for the period between 2023 to 2037. The company should also set intermediate targets at gaps of no more than five years to incentivise near-term action on its longer-term goals.

The Health, Safety & Environment Committee of Boral oversees climate matters, but none of its members were found to have significant expertise in the low-carbon transition. Moreover, the company’s transition plan does not include financial projections, cost estimates or other estimates of financial viability or a climate scenario analysis. Apart from disclosing that in 2022, the sale of lower carbon concrete accounted for 7% of its total concrete sales volume, the company does not provide information regarding its revenues from low-carbon products. Boral demonstrates dedication to advancing carbon capture projects with an ambitious growth trajectory. However, it can extend this level of ambition to other low-carbon business models and further broaden its scope, for example, developing low-clinker cement products or enhancing the use of biomass.

Boral has not disclosed its R&D expenditure in the last three years, nor has it provided quantitative data on its investment in low-carbon technologies. Additionally, while 15% of the thermal energy used to feed its clinker production at its Berrima plant came from alternative fuels in 2022, the company has an opportunity to increase the current share of alternative fuels it uses. Boral does not have an ambitious decarbonisation plan in place, nor does it carry out electricity management to reduce the intensity of its electricity use in gigawatt-hours (GWh) for its cement grinding and mixing operations by at least 6% per year. Further, there is no evidence that it carries out interventions within its value chain to reduce emissions for purchased or imported clinker or materials.

Despite stating that it engages with suppliers on lower carbon energy, materials and services, Boral lacks public disclosure of supplier as well as client engagement policies, including information on the scope of its engagement and whether it quantifies emissions reduction targets or has any low-carbon requirements or recommendations for suppliers and clients. The company can also enhance transparency by documenting its recent and current activities relating to supplier and client engagement, along with their respective impacts. Further, the company should establish a policy for engaging with trade associations on climate change issues, complete with a contingency plan to address any misalignment regarding climate positions. Boral should also explicitly commit to the Paris Agreement and implement a monitoring and review process to ensure its policy positions align with the agreement’s goals.

Boral commits to reducing its absolute scope 1 and 2 emissions by 46% by the fiscal year 2030 from the base year 2019. It also commits to reducing scope 3 emissions by 22% per tonne of cementitious material within the same timeframe.

Although Boral’s near-term absolute scope 1 and scope 2 emissions reduction goals, despite being recently adjusted to lower ambitions, are still aligned with a 1.5°C pathway, the absence of data on the company’s cement production levels hinders the translation of these targets into emissions intensity evaluations.

Boral achieved a 1.3% annual reduction in emissions intensity from 2020 to 2022. However, its anticipated future emissions intensity for scope 1 and 2 emissions is not projected to align with a 1.5°C pathway, which requires the company to deliver annual reductions of 2.3% over the next five years.

While Boral discloses the revenue generated from cement production in the last three years, it does not publicly disclose the share of its revenues from low-carbon products and services over this timeframe. The company also does not disclose its R&D expenditure for the past three years, or a breakdown of its investments in both mature- and non-mature climate technologies. In the fiscal year 2023, the company’s capital expenditure totalled USD 223.1 million, reflecting a 29% decline from the previous year. However, there is no disclosure regarding its capital expenditure allocation towards low-carbon activities specifically.

Boral pledges to decrease its absolute scope 1 and 2 emissions by 46% by the fiscal year 2030 compared to 2019 levels, alongside a commitment to reduce scope 3 emissions by 22% per tonne of cementitious material within the same period. To do so, the company plans to utilise action levers such as alternative kiln fuels; renewable energy; energy efficiency; lower carbon concrete; kiln feed and cement plant optimisation; renewable fuels; mineralised carbon products; and carbon capture, use and storage (CCUS) technology.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights. However, no evidence was found of its committment to the ILO fundamental rights at work. Additionally, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. Additionally, the company discloses the share of employees that is covered by collective bargaining agreements, as well as the proportion of each gender in their workforce. However, the company can strengthen its disclosure on these subjects, as well as on other decent work fundamentals, including gender equality, living wages and working hours practices.

The company has policies in place where they prohibit bribery and corruption, specify that they do not make political contributions, and show a committment to protecting personal data. However, the company can strengthen its disclosure on these topics and other key ethical business topics including responsible tax fundamentals and anti-bribery and anti-corruption practices.