UNACEM

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.

UNACEM does not publicly disclose emissions reduction targets for 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. Furthermore, between 2019 and 2022, UNACEM decreased its emissions intensities 1.1% a year. In order to get on track with its 1.5 pathway the company needs to deliver 2.9% reductions annually over the next 5 years.

UNACEM 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. as part of its Sustainability Declaration 2021-2050, the company has set goals around reducing the clinker ratio, heat and electricity consumption as well as using clean and alternative fuels. However, the company is recommended to establish quantitative emissions reduction targets besides for its near-term scope 1 target for 2030 and develop long-term action plans for decarbonisation.

In 2022, even if the group-wide weighted alternative fuel usage of UNACEM reached 15% in 2022, the comprehensive list of the specific resources employed remains undisclosed. Furthermore, the company 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 technologies.

UNACEM does not publicly disclose strategies for engaging suppliers and clients to promote emissions reduction and the low-carbon transition. Moreover, the company lacks a policy for engaging with trade associations on climate change and should consider publicly committing to the Paris Agreement as well as actively participating in initiatives to strengthen its commitment to emissions reduction.

UNACEM is committed to reach to 500 kg CO2/t of cement for its cement units by 2030, a reduction of 21.0% compared to 2014 and to become net-zero by 2050.

The Sustainability Declaration 2021-2050 outlines objectives like reducing the clinker ratio by 10%; however, it lacks financial details, notably regarding low-carbon CapEx and R&D investments, indicating a need for greater transparency.

UNACEM witnessed a reduction of 1% annually in its emissions intensity from 2019 to 2022. However, this contrasts with the company’s 1.5°C pathway, which requires it to make substantial decreases in its emissions intensity of 2.9% between 2022 and 2027, but it is unlikely that the rate at which UNACEM’s future scope 1 and 2 emissions intensity is expected to decrease between 2022 and 2027 is aligned with the company’s 1.5°C pathway. Furthermore, there is no evidence that the company has a strategy to engage its clients and suppliers to reduce emissions.

UNACEM 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 besides aiming to reduce the clinker-to-cement ratio by 10%.

UNACEM plans to reduce its Scope 1 emissions to 500kg CO2/t cementitious by 2030, a reduction of 21% compared to 2014. To do so, its Sustainability Declaration 2021-2050 focuses on the use of cement materials (10.0% reduction of clinker ratio), clean and alternative fuels (10.0% consumption of alternative fuels), energy efficiency (15.0% reduction of heat consumption and 10% reduction of electricity consumption), clean energy, and carbon capture, even if the details are not disclosed in detail.

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. No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

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.

While the company has a grievance mechanism available to workers and external stakeholders where human rights issues can be reported, no other policies or commitments of the company 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 commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. Additionally, the company discloses the share of women in its workforce by employee category. However, the company can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

The company prohibits bribery and corruption, and states that it does not make political contributions. The company can however strengthen its disclosure on these topics and other key ethical business topics including personal data protection and responsible tax practices.