CRH

CRH’s Decarbonisation Roadmap features a pivotal 2030 milestone en route to its journey to net zero by 2050. The company has established a series of comprehensive targets for 2030 that encompass scope 1, 2 and 3 emissions. These emissions reduction targets are fully aligned with its 1.5°C pathway and are forward-looking enough to cover the extended lifetimes typical within the sector. Moreover, the company remains firmly on course to meet its targets with its current emissions trajectory.

CRH’s Decarbonisation Roadmap establishes clear, time-bound emissions reduction targets and corresponding actions across the short-, medium- and long-term. While the roadmap outlines significant financial changes and its integration into the business strategy, the company should provide more detail on how it will allocate additional capital expenditure to low-carbon activities and technologies. Although the company has a process to report progress , it should also consider implementing a review and updating mechanism for its roadmap. CRH conducts climate scenario analysis for all operations and its value chain to bolster resilience. Furthermore, its executive remuneration is also linked to performance on specific climate metrics.

About 36% of the company’s energy sources come from alternative fossil fuels and mixed fuels and electricity. Of this, 24% comes from alternative fuels, especially those that contain carbon-neutral waste biomass, including solid recovered fuels, used tyres, solvents and used oil.

The company employs action levers like the Know Your Supplier (KYS) Programme and the Supplier Code of Conduct (SCOC) to engage with suppliers. It conducts audits, risk assessments and surveys, aiming for full SCOC compliance. The company’s engagement covers 79% of supplier-related scope 3 emissions and ensures full compliance with the company code of conduct, encourages innovation and trains procurement teams in responsible sourcing.

CRH’s emissions intensity declined by about 2% annually between 2019 and 2022. However, to get on track with its 1.5°C pathway, the company needs to deliver significant reductions in emissions intensity of about 3% annually over the next five years.

CRH has board-level oversight of climate change, but it lacks climate expertise among the relevant board committee members. In 2022, around 3.8% of the company’s revenue came from low-carbon activities. The company has started undertaking low-carbon initiatives, such as producing low-clinker cement with recycled materials, using alternative fuels and advancing carbon capture technologies. However, there is room for improvement in expanding these initiatives across all its business models.

CRH has not disclosed its research and development (R&D) expenditure in the past three years and lacks quantitative data on its investment in low-carbon technologies. Though the company has filed patents over the last five years, including some for low-carbon technologies, detailed breakdowns of the company’s efforts in progressing mature- and non-mature climate technologies are unavailable.

CRH engages suppliers to reduce emissions but can broaden its approach. It advocates for environmental compliance but needs clearer procedures for addressing non-compliance. The company is also recommended to set up a comprehensive client engagement strategy to promote emissions reduction targets. Further, CRH should disclose a policy for engaging with industry associations and trade groups, ensuring alignment with climate goals. While it supports climate policies and the Paris Agreement, it should clarify the climate positions of the trade associations it is a member of.

CRH targets to reduce its scope 1 and 2 emissions by 33.5% per tonne of cementitious product and 42% from other activities by 2030, based on 2021 levels. Additionally, it commits to reducing scope 3 emissions by 23.5% per tonne of purchased products over the same timeframe. These targets aim for a 30% reduction in absolute carbon emissions by 2030, covering scopes 1, 2 and 3. Moreover, the company has a decarbonisation roadmap for 2030 and has joined the Business Ambition for 1.5°C initiative to achieve net-zero emissions by 2050.

CRH sets industry-leading goals to reduce carbon emissions by 25% by 2030 and achieve net zero emissions by 2050. It outlines significant financial changes and investments in low-carbon innovation strategies over the next decade. It also engages with suppliers to influence emissions; however it can enhance its supplier engagement strategy by incorporating emissions reduction targets into procurement templates. Further, it should also develop a client engagement strategy focused on emissions reduction.

CRH has a track record of surpassing its previous targets ahead of schedule. While there was an increase in the company’s scope 3 emissions in 2022 compared to the 2021 baseline, most of its targets have already been partially achieved. Despite the increase in scope 3 emissions, the company has made significant progress in reducing its group-wide total emissions, with 11% of its 2030 target already achieved in 2022, from a 2021 baseline.

CRH discloses its low-carbon capital expenditure and a USD 250 million venture and innovation fund dedicated to addressing challenges like decarbonisation. It has begun producing low-clinker cement using calcined clay technology and recycled materials while substituting carbon-intensive fuels with alternatives, including biomass. The company is also actively advancing carbon capture technologies and continuously innovating to offer sustainable products, aiding customers in achieving higher green building ratings.

The company outlines its long-term actions in its Decarbonisation Roadmap. It is actively pursuing decarbonisation across its supply chain, manufacturing operations and transport operations to meet these goals. Its key focus areas include low-carbon technologies, resilient construction, circularity, water-use efficiency and water management plans across all its companies.

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. The company has a commitment to re- and up-skill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, its Frontline Leadership Programme (FLP) provides training to over 10,000 frontline leaders across modules including I&D, safety and resilience. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders.

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 that the company commits to respecting the ILO fundamental rights at work and expects its business relationships to make the same commitment. While the company describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations, no evidence was found that it covers its supply chain. The company discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks. The company takes action to mitigate these risks in its own operations and supply chain. However, 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. No evidence was found of a time-bound target for paying all workers a living wage. No evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. The company discloses the gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. No evidence was found that the company commits to gender equality and women’s empowerment.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. No relevant disclosure was found of the company’s expenditure on lobbying activities.