Titan Cement

Titan Cement has set both near-term and long-term targets to reduce its Scope 1 emissions, as well as its combined Scope 1, 2 and 3 emissions. All of these targets have been validated by the Science-based Targets Initiative (SBTi).

Titan Cement demonstrates leading practice demonstrating some progress towards transitioning towards a low-carbon business model through its efforts in increasing its low-clinker cement production, developing CCU/CCS technologies and increasing the recycling rate of cement.

No leading practices were found for this company.

Titan Cement demonstrates leading practices in its engagement with suppliers and with various stakeholders at local, regional and global level. With regards to supplier engagement, not only has has devised and published an associated engagement strategy, but it also requests all its key suppliers to set objectives and targets to reduce environmental impact, devise action plans to mitigate climate change-related impact and report progress on an annual basis. Additionally, it partners with suppliers to innovate and introduce novelty products that will directly and indirectly reduce emissions. On policy engagement, Titan Cement is an active proponent of climate policies such as the EU ETS Directive, the Paris Agreement and the CBAM (Carbon Border Adjustment Mechanism) Regulation. It also participates actively in sectoral and cross-sectoral initiatives including SBTi’s “Business Ambition for 1.5 degree Celsius”, the Energy Transition and Climate Change Working Group of the European Roundtable for Industry and the 2050 Climate Ambition by the Global Cement and Concrete Association (GCCA).

Although the company has set verified targets for their scope 1 emissions it should also set targets specific to reducing Scope 2 and 3 emissions.

The company has an opportunity to further accelerate its transition towards a low-carbon business model. Besides scaling up its current efforts to produce low-clinker cement, develop CCU/CCS technologies etc., it could also consider developing zero-clinker development and enhancing the use of biomass.

There was no observed activity related to patenting of low-carbon technologies. Additionally, there is a lack of quantitative data regarding the company’s investment in low-carbon technologies, in particular a breakdown encompassing both mature and non-mature climate technologies. Lastly, Titan Cement could also increase its use of alternative fuels.

There is scope for Titan Cement to engage with suppliers further. For instance, it could explicitly include emission reduction requirements in its procurement templates and disclose escalation measures in the event of non-compliance. With regards to policy engagement, although Titan Cement is very active, it has an opportunity to publish a public policy document on its engagement strategy. On client engagement, Titan Cement has a significant opportunity to enhance its disclosures. Notably, it has an opportunity to publish a client engagement strategy which includes GHG emissions reduction targets, low-carbon transition recommendations and action levers such as education and information sharing, collaboration and innovation, compensation and marketing. Additionally, there is scope for the company to expand the reach of its engagement activities and demonstrate the associated impact by reporting relevant qualitative and quantitative metrics.

With the aim to reach net zero by 2050, Titan Cement has set targets to reduce the emissions intensity of its Scope 1 and 2 emissions, as well as absolute Scope 3 emissions arising from the use of sold fossil fuels. All of these targets have been validated by the SBTi. Additionally, the company has taken concerted efforts to increase its use of absolute fuels, leading to an alternative fuel substitution rate of 19.6% in 2023.

While Titan Cement demonstrates commitment to reducing its emissions by setting ambitious targets and validating them against the SBTi, it has an opportunity to extend its Scope 3 emission targets to all other categories, as well as its entire value chain. Recognizing that the increased use of lower-carbon fuels is a key lever towards achieving its decarbonisation targets, the company has also increased its alternative fuel substitution rate. However, it can also consider increasing the recycling rate of cement, developing zero-clinker cement and enhancing the use of biomass.

Titan Cement has made significant progress towards its emissions reduction targets. Relative to 2020, the emission intensity of its Scope 1 emissions reduced by 8.3% whereas its Scope 2 emission intensity decreased by 16.0%. Notably, its absolute Scope 3 emissions from the use of sold fossil fuels fell by 95.5%.

The company invests in R&D technologies relating to decarbonisation. Additionally, TITAN Group participates in the “Business Ambition for 1.5°C” global campaign led by SBTi and joined the United Nations Framework Convention on Climate Change (UNFCC) “Race to Zero” global campaign.

Titan Cement has developed a transition plan, which it terms the “2030 decarbonisation roadmap”. This roadmap includes traditional levers to support its transition towards a low-carbon model, such as reducing clinker content in the final product, increasing the thermal substitution rate of fossil fuels with alternative fuels and reducing specific heat consumption.

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. Furthermore, 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 discloses the actions it takes to provide upskilling and education opportunities for workers and affected stakeholders. For instance, it collaborated with Florida International University to offer an internship programme which gives work experience in the cement industry, and that eight of its employees received work and new interns joined the programme.. 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 or a public commitment to help workers displaced by the transition to re- or up-skill.

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. Furthermore, 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 a commitment to respect the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. Furthermore, 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 worker health and safety and gender equality. However, there is no evidence of a statement disclosing information on collective bargaining. However, there is evidence of workforce diversity fundamentals, including age and gender. However, the company can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

The company commits to protecting personal data and prohibiting bribery and corruption. However, no policies or commitments of the company related to key ethical business topics – , tax, lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.