Dangote Cement

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.

Dangote Cement does not publicly disclose emissions reduction targets for its operations or its supply chain. The company should develop a long-term emissions reduction target that aligns with its 1.5°C pathway and covers its scope 1, 2 and 3 emissions. Additionally, it should set intermediate targets at gaps of no more than five years to incentivise near-term actions on the longer-term goal. It should also clearly report its base year emissions and any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.

Dangote Cement lacks a transition plan or climate strategy with financial estimations and associated costs. Furthermore, the company does not disclose its revenues from low-carbon products, and there is no evidence to suggest that it is creating or expanding low-carbon business models or implementing actions to decarbonise activities within its existing business models. The company is recommended to establish quantitative emissions reduction targets and develop both short- and long-term action plans for decarbonisation.

Dangote Cement has not disclosed its research and development (R&D) expenditure in the last three years, nor has it provided quantitative data on its investment in low-carbon and non-mature technologies. Additionally, the current share of alternative fuels used by the company is less than 5%.

Dangote Cement does not publicly disclose strategies for engaging suppliers and clients to promote emissions reduction and the low-carbon transition. Although the company’s recent supplier engagement efforts involve incentivisation and information collection to reduce emissions, there is room to bolster these initiatives by fostering demand for low-carbon alternatives and implementing action plans. Furthermore, the company should develop a policy for engaging with climate change associations and consider publicly committing to the Paris Agreement and actively participating in initiatives for emissions reduction.

Dangote Cement does not publicly disclose emissions reduction targets for any of its scope 1, 2 or 3 emissions originating from its operations or its supply chain. The company has not developed a vision of what it will look like in a low-carbon future.

The company states that the environmental pillar of its sustainability strategy – ‘The Dangote Way’ – defines its ways of entrenching sustainability by identifying, measuring and mitigating actual and potential negative environmental impacts resulting from its operations. However, it has not disclosed a strategy towards this objective, including financial estimations and associated costs, or its short- and long-term action plans.

Dangote Cement’s emissions intensity and absolute emissions disclosures are insufficient for analyzing its emissions performance to date. Although the company has provided scope 1 emissions data since 2018 and scope 2 emissions data since 2022, additional transparency regarding its emissions is needed for a comprehensive assessment. Furthermore, there is no evidence that the company has a strategy to engage its clients and suppliers to reduce emissions.

Dangote Cement does not provide information regarding its low-carbon capital expenditure and low-carbon mitigation R&D. The company also does not disclose whether it is creating or expanding low-carbon business models or implementing actions to decarbonise activities within its existing business models.

Dangote Cement does not have a low-carbon transition plan and there is no evidence it intends to develop one in the near future.

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.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, it discloses the actions it takes to create jobs through targeted expansion in its home market and additional green jobs in its alternate fuel value chain. No relevant disclosure was found of the company’s assessment of employment dislocation risks. Further, no public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their 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.

While the company has a grievance mechanism available to workers and external stakeholders, no other company policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

The company discloses the gender statistics for its workforce by employee category. However, no other evidence of the company’s policies or commitments related to key decent work issues was found in the public domain. These issues include the provision of safe, secure and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

The company has a public commitment to protect personal data. Additionally, it offers a confidential channel to report bribery and corruption concerns. However, it can strengthen its disclosure on these topics as well as other ethical business fundamentals, including responsible tax practices and lobbying and political engagement practices.