Votorantim Cimentos

No leading practices were identified for this company.

Votorantim Cimentos has one board committee member with climate-related expertise. Further, the company links executive compensation to carbon dioxide emissions reduction. The company’s transition plan, which discloses financial details, outlines action plans to reduce its carbon footprint until 2030. The company also has processes for reporting its progress on its transition plan and conducts climate scenario analysis to guide its decarbonisation efforts.

No leading practices were identified for this company.

Votorantim Cimentos provides low-carbon products like CPIII and CPIV Cement, industrial mortar, Portland-Limestone Cement and Spectra concrete, to meet customer demand. It educates customers about the carbon footprint of these products through Environmental Product Declarations (EPDs). The company gauges the impact of its customer engagement through the increased demand for EPD products, which rose by 30% from 2018 to 2020, and by monitoring the share of environmentally friendly concrete supplied.

Votorantim Cimentos has established a net emissions target of 0.48 tonnes of carbon dioxide per tonne of cementitious product by 2030, representing a more aggressive stance than its previous target. While its increased ambition is commendable, the company’s target is only partially aligned with a 1.5°C pathway. The company’s emissions intensity declined by 1.73% per year between 2018 and 2022. To get on track with a 1.5°C pathway, the company needs to deliver annual reductions of 2.34% in emissions intensity over the next five years. To further enhance its commitment to climate action and drive near-term emissions progress, Votorantim Cimentos should also introduce intermediate targets at intervals of no more than five years.

Votorantim Cimentos has not disclosed the percentage of its revenue derived from low-carbon products and services in the past three years. Although the company has invested in low-carbon business models, there is room for it to expand the scope of activities covered under its decarbonisation efforts.

Votorantim Cimentos currently sources 27% of its total energy from alternative fuels, with potential for further expansion in this area. However, the company has not disclosed its research and development (R&D) expenditure over the past three years, nor has it provided quantitative data on its investment in low-carbon technologies. This lack of transparency extends to information about patents related to low-carbon technologies the company has applied for in the past five years.

While Votorantim Cimentos implements a strategy to reduce environmental impacts across its supplier base, it can strengthen this by integrating emissions reduction and other low-carbon requirements into its procurement process. It should also consider broadening its engagement with suppliers and quantifying its supplier engagement impacts. Its client engagement strategy focuses on adapting its product portfolio to include sustainable products but does not explicitly mention emissions reduction targets. Additionally, the company has limited disclosure on its public policy engagement strategies. The company has the opportunity to improve its decarbonisation efforts by monitoring and reviewing the climate policy positions of its membership associations and aligning its policy positions with international commitments like the Paris Agreement.

Votorantim Cimentos pledges to achieve net emissions of 475 kilograms (kg) of carbon dioxide per tonne of cementitious product by 2030, representing a 24.8% reduction from 2018 levels. Additionally, it aims to reduce scope 2 emissions by 52.4% by 2030 and achieve net-zero emissions by 2050. The company has also set targets for increasing the share of renewable energy, thermal substitution, reducing clinker factor and increasing concrete recycling.

Votorantim Cimentos has set an ambitious goal to achieve net-zero emissions by 2050. The company provides detailed financial projections and cost estimates, including capital allocation and access to capital, to support its carbon reduction efforts. These efforts are integrated into key operational activities, such as targeting 30% of revenues from sustainable solutions by 2030. While the company has outlined short- and long-term actions up to 2030, there is a need for action plans beyond 2030 to ensure the achievement of its net-zero target.

Votorantim Cimentos achieved a reduction in both scope 1 and scope 2 emissions intensities in 2022 compared to the 2018 baseline. Specifically, the company’s scope 1 emissions intensity decreased from 0.63 to 0.58 tonnes of carbon dioxide equivalent (tCO2e) per tonne of cementitious materials, while its scope 2 emissions intensity declined from 0.022 to 0.018 tCO2e per tonne of cementitious materials.

The company discloses that about 8% of its total capital expenditure is allotted to environmental projects. The company has made significant investments in reducing emissions in cement production. This includes initiatives for reducing the clinker content of cements, enhancing the use of recycled materials in cement production, substituting fossil fuels with biomass, developing products and processes to optimise the construction sector and advancing CCUS technologies.

The company has outlined long-term strategies to meet its emissions targets. These focus on reducing air pollutants like particulate matter, nitrogen oxide and sulfur oxide. The company’s plans also include boosting renewable energy use, reducing clinker content and integrating more recycled components into its cements. The company’s significant investments in renewable energy infrastructure, such as photovoltaic and hydropower plants, aim to lower emissions and production costs. Furthermore, the company has earned recognition for its sustainability efforts and consistent reductions in energy use through the implementation of energy efficiency measures across its plants.

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. Further, no public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

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. The company does, however, have a grievance mechanism available to workers and affected stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. No evidence was found of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses indicators of workforce diversity, such as the age, gender and disability of its workforce by employee category. It also commits to 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. 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. It also specifies that it does not make political contributions. However, 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.