Vicat

No leading practices were identified for this company.

No leading practices were identified for this company.

Vicat has invested significantly in research and development (R&D) of low-carbon technologies. The company invested USD 13.5 million from 2020 to 2022, from which about 35% was dedicated to non-mature carbon capture and use (CCU) technologies. The company relies on such technologies for its long-term strategy, seeking new markets related to carbon dioxide.

No leading practices were identified for this company.

Vicat has set targets to reduce its scope 1 emissions to 497 kilograms of carbon dioxide per tonne of cement at the group level and to 430 kilograms for the European region by 2030. The company also aims to contribute to sectoral carbon neutrality by 2050. This 2050 target could not be assessed since the company fails to mention the scope of emissions covered and its reliance on offsets. Vicat decreased the scope 1 emissions intensity of its cement production by 1% per year between 2017 and 2022.

Although Vicat has implemented board-level oversight of climate change, there is no evidence that its board has adequate climate expertise. The company has also linked board-level incentives with long-term climate-related targets by establishing key performance indicators. Further, the company has a comprehensive low-carbon transition plan informed by climate scenario analysis. The company can enhance this analysis by considering its entire value chain and by adopting a higher level of climate ambition. The company is actively developing business models for a low-carbon future, such as low-clinker cement products and CCU technologies.

Vicat disclosed having used a 28% share of alternative fuels in 2022 and recently updated its ambition to increase this share to 50% by 2030. The company has created subsidiaries in France, Switzerland and Turkey dedicated to circular economy and the collection of waste to be used as alternative fuels. In its 2021 Climate Strategy. Vicat stated it will allocate about USD 900 million up to 2030 to capital expenditures for low-carbon technologies and solutions.

Although Vicat requires suppliers to adhere to its Supplier Code of Conduct, this does not yet include quantified emissions and other low-carbon requirements. Vicat mainly engages with its clients in regions with more demanding climate regulations, typically Europe and North America. The company actively promotes its low-carbon products, such as its low-carbon DECA cement offering designed to meet the French RE2020 environmental regulation for the buildings sector. Vicat does not publicly publish a list of trade associations it is a member of. However, the company states its support for international climate policies, such as the Paris Agreement.

Vicat commits to quickly and significantly decarbonise its cement production, having set various 2030 climate targets related to emissions, clinker content, alternative fuels, renewable electricity sourcing and implementation of carbon capture, use and storage (CCUS) technologies.

Vicat has adapted its climate targets to Europe where the core of its operations take place, compared to its broader targets at the group level. The company considers local regulations, market opportunities and technical risks and opportunities to ensure all projects and actions can be successfully implemented.

Vicat initiated its Climate Strategy in 2021 and has decreased its scope 1 emissions intensity between 2017 and 2022. However, the company needs to accelerate its efforts since its 2030 target requires decreasing its emissions intensity almost three times faster than this previously observed trend.

Vicat is progressively decarbonising its cement production mainly by substituting coal as an energy source, investing in thermal energy efficiency technologies, self-producing renewable electricity and developing cement formulations with lower clinker content.

Vicat separates the 2030 and 2050 horizons in its climate strategy, favouring proven and available solutions to decarbonise its activities in the short term. In the long term, the company counts on CCU technologies, to which it intends to dedicate R&D investments.

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 discloses the actions it takes to create jobs. It also discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. In particular, it has specific hiring plans to ensure a diverse workforce and works to remove gendered stereotypes about industrial careers. However, no evidence was found of the company committing to create and support access to green and decent jobs as part of the low-carbon transition.
No relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and educational opportunities for workers and affected stakeholders. For instance, it has training centers for employees, apprenticeship programmes and partnerships with local universities. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through targeted development plans and specific support for people with disabilities. 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.

The company expects its business relationships to respect the ILO fundamental human rights at work. Additionally, the company has a grievance mechanism available to workers and external stakeholders for reporting human rights issues. However, the company can strengthen its commitment to human rights and the disclosure of its human rights due diligence process and engagement with affected stakeholders.

The company expects its business relationships to respect the health and safety of their workers. Additionally, the company discloses some statistics regarding the diversity of its workforce, such as age and gender by employee category. However, it can strengthen its disclosure on these subjects and other key decent work issues, including collective bargaining and working hours.

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. Additionally, the company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. It can, however, strengthen its disclosure on these subjects and other key ethical business topics, such as responsible tax practices, lobbying and political engagement.