Holcim

No leading practices were identified for this company.

The company’s decarbonisation strategy outlines its investments for carbon dioxide reduction and its plans to increase green capital expenditure by 2025, but it can be strengthened with cost details and business evolution projections. The company conducts scenario analysis using a carbon price aligned with the requirements of low-carbon scenarios, but it can use the results of this analysis to update its strategy. Holcim focuses on reducing clinker content, utilising construction waste, and implementing CCUS projects, and it presents areas for potential growth. Additionally, it delivers sustainable cement and concrete solutions to address construction sector challenges.

Holcim discloses that around 27% of the thermal energy consumption in its cement production comes from alternative fuels. The company can work further to reach its target of 50% share of alternative fuels by 2030 and 70% by 2050.

Holcim uses different actions for supplier and client engagement but lacks detailed quantitative evidence of the impacts of these actions. It has a publicly available advocacy and government affairs strategy, which includes a plan for addressing misalignment between its climate positions and the positions of its membership associations. The company can improve oversight of climate change issues at the board level and implementation of its low-carbon strategy at the managerial level. Nevertheless, Holcim supports climate policies, commits to the Paris Agreement and actively engages in sectoral initiatives against climate change. Its climate policy and advocacy positions undergo review and monitoring overseen by the board and implemented by key officers.

Holcim has set emissions reduction targets for 2030 and net-zero targets for 2050 validated by the SBTi and covering all three scopes of emissions. The company also aims to reduce its scope 1 and 2 emissions intensity by 25% in 2030 compared to 2018. The company should consider setting additional intermediate targets at intervals of no more than five years to incentivise near-term actions on its longer-term net-zero goal. Between 2020 and 2022, Holcim’s emissions intensity declined by 1.1% per year. However, to align with a 1.5°C pathway, the company needs to deliver a 3% reduction in emissions intensity annually over the next five years.

Though Holcim has a board committee overseeing its climate strategy, it could work to enhance low-carbon expertise among the committee members. Further, despite low-carbon products and services contributing 4.7% of its total revenue in 2022, there remains substantial room for the company to grow in this segment. While the company has made efforts to substitute fossil fuels with biomass as an energy source, there is potential for the company to increase the scope of this decarbonisation action.

Holcim discloses that, on average, low-carbon research and development (R&D) constitutes 45% of its total R&D expenditure. However, only 15% of its R&D spending in the past three years was dedicated to non-mature climate technology. These figures suggest avenues for the company’s further growth.

Holcim has a strategy aiming to influence suppliers and clients to reduce emissions, but it can expand its engagement coverage, and quantify and add emissions reduction and other low-carbon requirements to its strategy. Additionally, the company retains membership in several influential associations that engage negatively with climate policy. The company should implement a policy to review its engagement with such associations.

Holcim aims to achieve net-zero emissions across its value chain by 2050. Its near-term targets include reducing its total scope 1 and 2 emissions by 25% per tonne of cementitious materials by 2030 compared to 2018. Additionally, the company is targeting a reduction in its scope 3 emissions from purchased goods and services by 25.1%, fuel and energy activities by 20%, and downstream transport by 24.3% by 2030 respectively from their 2020 baselines. Its long-term goals include reducing scope 1 and 2 emissions by 95% per tonne of cementitious materials by 2050 compared to 2018 levels, and absolute scope 3 emissions by 90% by 2050 compared to 2020 levels.

Holcim commits to reach net-zero emissions across it value chain by 2050, with clear near-and long-term targets and actions, set out in its Strategy 2025 – Accelerating Green Growth. The company is leading efforts towards a circular economy by reducing waste and recycling materials across its business.

Holcim has made some progress in achieving its 2030 emissions targets. The company’s scope 1 and 2 emissions intensity has declined from 0.67 tonnes of carbon dioxide per tonne of cementitious materials in 2018, to 0.64 in 2022. Similarly, it has made some progress in reducing its scope 3 emissions from purchased goods and services, fuel and energy-related activities and downstream transport.

About 45% of Holcim’s total R&D expenditure is dedicated to low-carbon technologies, with only 15% for non-mature climate technologies. The company’s strategy provides details on its 2022 project investments for carbon dioxide reduction and outlines plans to increase green capital expenditure by 2025. The company is also investing in alternative low-carbon cements and binders, CCUS and low-clinker cement.

Holcim’s Strategy 2025 – Accelerating Green Growth outlines short-term actions to reach its longer-term net-zero target by 2050. These actions include increasing its net sales of ECOpact low-carbon ready-mix concrete to 25% and of integrated solutions and systems related to construction, energy efficiency, repair and refurbishment to 30% of total sales. This will help the company achieve about USD 550 million in green capital expenditure, boost its sustainable financing ratio to 50%, and reduce its year-on-year carbon dioxide per tonne of cement by 3-4% by 2025.

The company commits to engaging in social dialogue with workers and unions. It also discloses the categories of stakeholders it engages with on a just transition, including workers, suppliers, communities and consumers/customers. However, 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. However, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. No relevant disclosure was found of the company’s assessment of employment dislocation risks. The company commits to reskill and upskill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, it organises an early career leaders programme to provide employees with the necessary tools, knowledge, skills and experiences to become effective leaders. 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 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.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. Furthermore, the company discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks, such as health and safety, working conditions in its operations and supply chain, discrimination and harassment, security-related abuses and violations, and child labour in high-risk supply chains. The company takes actions to mitigate these risks in its operations and supply chain, and it engages with affected stakeholders. Additionally, the company has 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 from its business relationships. However, no evidence was found of the company having 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 or its required working hours. The company discloses some indicators of workforce diversity, such as the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. The company commits to promoting gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data and has a privacy statement regarding the collection, sharing and access to personal data. The company discloses its global tax strategy and the corporate income tax it pays in each relevant jurisdiction. It also has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. Next to this, the company has a lobbying and political engagement policy. However, no evidence was found where it specifies that it does not make political contributions or discloses its expenditure on lobbying activities.