InterCement

No leading practices were identified for this company.

InterCement presents its climate-related goals in its Agenda 2030. These targets are aligned with the low-carbon objectives of the company, which aim at the company becoming one of the most carbon-efficient cement producers. The company provides comprehensive short- and long-term strategies and roadmaps to achieve this transition, along with a vision for its future assets and business model.

No leading practices were identified for this company.

InterCement’s biggest subsidiaries, InterCement Brazil and Loma Negra, have disclosed their membership in various industry associations. These associations do not appear to engage in climate-negative activities or hold positions contrary to climate goals.

InterCement aims to be among the lowest carbon-intensity producers with emissions below 0.50 tonnes of carbon dioxide (tCO2) per tonne of cement by 2030. The company’s emissions reduction target is not fully aligned with a 1.5°C pathway. Additionally, the company could set intermediate targets at gaps of no more than five years to incentivise near-term actions towards its longer-term goals. InterCement’s emissions intensity declined by less than 1% between 2020 and 2022. However, this diverges from the company’s 1.5°C pathway, which demands significant emissions intensity reductions of over 2% annually over the next five years.

InterCement lacks evidence of board members’ expertise in the low-carbon transition and does not link climate achievements to its incentive plan for executives. While the company discloses environmental expenses, it could better integrate its transition plan into the business strategy and outline future business evolution. Additionally, it can strengthen its plan by including climate scenario analysis and carbon pricing, and by extending its targets beyond 2030 and broadening its scope to the entire value chain.

InterCement reports that alternative fuels constitute a 24% share of its total energy consumption, which it can enhance further. The company has not disclosed its R&D expenditure over the past three years and lacks quantitative data on its investments in low-carbon technologies. Moreover, there is limited information on InterCement’s patents related to low-carbon technologies over the past five years.

InterCement integrates environmental compliance into its supplier code but can strengthen suppliers’ sustainability efforts by introducing emissions reduction requirements. The company should expand its action levers for engaging with suppliers and clients and improve transparency in reporting its impact. Its subsidiary, Loma Negra, responds to low-carbon product demand, but InterCement requires broader client engagement covering the entire group. Further, it should establish a climate-related engagement policy and consider endorsing initiatives like the Paris Agreement.

InterCement’s Agenda 2030 sets ambitious targets to reduce carbon intensity, aiming for emissions below 0.50 tCO2 per tonne of cement. It also focuses on increasing renewable energy use and reducing micropollutant emissions. Additionally, the company aims to replace 50% of fossil fuels with alternatives and decrease the cement clinker factor to an average of 0.69.

InterCement has set low-carbon targets to become one of the lowest carbon-intensity cement producers. While it discloses environmental expenditures and operating expenses, there is a need for clearer integration of the company’s transition plan into its overall business strategy. Furthermore, the company lacks targets and policies for the broader value chain and a client engagement policy to drive scope 3 emissions reduction efforts.

The company’s scope 1 and 2 emissions intensity decreased slightly from 0.546 tCO2 per tonne of cement in 2020 to 0.542 in 2021. In 2021, alternative fuels accounted for over 24% of the company’s total energy consumption, down from about 28% in 2019. Its cement clinker factor decreased from 0.71 in 2019 to 0.69 in 2021.

InterCement’s environmental capital expenditure and operating expenses increased by 22% in 2021 compared to 2020. The company’s materials management strategy focuses on substituting fossil fuels and reducing clinker content in cement products. Additionally, it is exploring carbon capture and storage technologies and innovating to optimise the construction sector’s response to climate change and consumer demands.

The company prioritises becoming one of the lowest carbon-intensity cement producers by intensifying renewable energy use and reducing micropollutants. It aims to promote a circular economy by replacing 50% of fossil fuels with alternatives and lowering clinker content in its cement. To achieve these goals, it plans to increase environmental capital expenditure and operating expenses. As part of its Agenda 2030, the company has interdisciplinary teams working to study factors affecting carbon dioxide emissions and develop ideas, solutions and investments necessary to meet its targets.

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 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 discloses its actions to provide training opportunities for workers and affected stakeholders. For example, it provides integration planning for role transitions and on-the-job training for its employees. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. For example, its Alicerce initiative focuses on the education and mental-cognitive development of vulnerable groups. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to reskill or upskill.

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.

No 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. However, the company does have a grievance mechanism available to workers and affected stakeholders.

No 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.

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. No relevant disclosure was found of the company’s global tax strategy and the corporate income tax it pays in each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. While the company also specifies that it does not make political contributions, no evidence was found that it has a lobbying and political engagement policy. No relevant disclosure was found of the company’s expenditure on lobbying activities.