2023 CLIMATE REPORT
INTRODUCTION
In 2023 we accelerated progress across all our decarbonization targets.
CLIMATE HIGHLIGHTS 2023
20% | 3% | 6 |
Reduction in | Reduction in CO2 net/ton | CCUS projects in |
CO2/net sales1 | of cementitious material2 | execution |
5M | 8.4M | +24% |
Tons of CO2 /annum | Tons of CDM recycled | Recycling of CDM2 |
captured by 2030 |
- 2023 Scope 1 + Scope 2 CO2 emissions per million of net sales compared to 2022
2 Compared to 2022
CLIMATE | DRIVING | ADVOCACY AND |
LEADERSHIP | CIRCULARITY | ENGAGEMENT |
P4 | P38 | P46 |
Cover Image:
Little Island park in New York City, with a view of One World Trade Center - built with 150,000 m3 of specially-designed Holcim concrete, manufactured using recycled materials
DRIVING | ADVOCACY AND | CLIMATE | |
CIRCULARITY | ENGAGEMENT | REPORTING |
CONTENTS
2 CEO's and Chief Sustainability Officer's Letter
12 Decarbonizing our solutions
16 Decarbonizing our energy mix
24 Decarbonizing our mobility
26 Driving advanced technologies
28 Advancing carbon capture, utilization and storage technology
34 Sustainable construction
36 Reinventing concrete
DRIVING CIRCULARITY
40 Driving circularity to build new from old
42 Circular living
44 From sea to city
ADVOCACY AND ENGAGEMENT
48 Advocacy positions and transparency
54 Just Transition
58 Holcim Foundation
CLIMATE REPORTING
62 Climate governance
64 Climate-related risks and opportunities
80 Scenario analysis
84 Performance data tables
LEADING IN ESG DISCLOSURES &
TRANSPARENCY
Read more about our transparent ESG disclosures in the 2023 Integrated Annual Report.
Art. 964b Swiss Code of Obligations.
Read on page 434
EU Taxonomy. Read on page 266
TCFD. Read on page 238
TNFD. Read on page 238
HOLCIM 2023 Climate Report 1
INTRODUCTON
We are decarbonizing Holcim for people and the planet,
from our operations and solutions through to buildings in use.
2 HOLCIM 2023 Climate Report
"With climate at the core of our strategy, Holcim is leading the shift to low-carbon, circular and energy-efficient building solutions."
JAN JENISCH
Chairman & CEO
In 2023 Holcim delivered record results and achieved its Strategy 2025 financial targets two years ahead
of plan, while advancing its leadership in sustainability. With climate at the core of our strategy, we are making decarbonization a driver of profitable growth and accelerating green growth with our advanced building solutions.
Cities are where more than half of us live, and where 80 percent of greenhouse gas emissions occur.
With the building sector at the backbone of urbanization, Holcim is playing a central role in creating a future
that works for people and the planet.
Taking a rigorous science-driven approach, Holcim is accelerating the shift to circular cities. In this decade of action to 2030, we are executing our net-zero 1.5°C- aligned targets with speed and scale to decarbonize building across its lifecycle.
In 2023, we made progress across all our decarbonization targets, reducing CO2 per net sales by 20 percent. Region Europe even launched our industry's most ambitious targets, to reach 285 kg CO2 net per ton of cementitious by 2030, a 45 percent reduction versus 2020.
Making net-zero cement a reality, we aim to deliver eight million tons of fully decarbonized cement a year by 2030. We owe this breakthrough to six carbon capture, utilization and storage (CCUS) projects that we are executing to capture five million tons of CO2 per annum by 2030.
CCUS complements our other decarbonization levers. Expanding our low-carbon formulation, we advanced use of innovative raw materials like calcined clay, which reduces the carbon footprint of cement by up to
50 percent, and accelerated our shift to decarbonized energy: expanding use of alternative fuels while advancing our share of renewable electricity globally.
Driving circular construction across key metropolitan areas, we launched ECOCycle®. Using this proprietary circular technology platform, we are accelerating urban mining, increasing recycling of construction demolition materials into new building solutions by 24 percent
in 2023.
"In 2023, we accelerated climate action, making progress across all of our decarbonization levers to lead the transition
to sustainable building."
NOLLAIG FORREST
Chief Sustainability Officer
We gained recognition for our leadership in this area by winning the Circular Transition Award at the Reuters Responsible Business Awards, as well as the Lighthouse Award for circularity at the World Economic Forum. We signed a partnership with the Ellen MacArthur Foundation to accelerate circularity, collaborating on a series of ambitious initiatives.
In a year when Holcim achieved record results, we accelerated green growth with our billion Swiss-franc sustainable brands. ECOPlanet low-carbon cement reached more than CHF two billion in net sales, while ECOPact low-carbon concrete delivered more than CHF one billion in net sales.
Sustainability is inseparable from our business, and we reached a new level of disclosure this year as well, integrating this Climate Report within our Annual Report for the first time, sharing our EU Taxonomy results, and aligning with the non-financial reporting requirements of the Swiss Code of Obligations (page 434 in the 2023 Integrated Annual Report).
During this exciting time for our sector, breakthrough innovations are unlocking sustainable solutions at scale. At Holcim, we are transforming the way the world builds for a net-zero future.
JAN JENISCH
Chairman & CEO
NOLLAIG FORREST
Chief Sustainability Officer
HOLCIM 2023 Climate Report 3
CLIMATE LEADERSHIP
We are decarbonizing Holcim for peopleand the planet,
from our operations and solutions through to buildings in use.
CityLife in Milan, Italy, is one of the most important urban redevelopment
projects in Europe. Two iconic skyscrapers set in a new park, a brand new shopping district and a new metro line have all been built with Holcim products
4 HOLCIM 2023 Climate Report
DRIVING CIRCULARITY
ADVOCACY AND | CLIMATE |
ENGAGEMENT | REPORTING |
IN THIS SECTION
- Decarbonizing our solutions
- Decarbonizing our energy mix
- Decarbonizing our mobility
- Driving advanced technologies
- Advancing carbon capture, utilization and storage technology
- Sustainable construction
- Reinventing concrete
CASE STUDY
Decarbonization
in Europe
Leveraging an advanced regulatory environment, we have set the industry's most ambitious targets to make decarbonization a profitable growth driver in Europe.
Meeting customers' sustainability needs, Holcim is expanding its multi-billion brands delivering premium margins. By 2030 we aim to grow our low-carbon cement ECOPlanet to reach more than 50 percent of cement net sales, and produce eight million tons of fully decarbonized cement each year.
Making circularity a driver of profitable growth, we want to increase our ECOCycle® circular technology platform to 150 sites in Europe by 2030, to recycle 20 million tons of construction demolition materials per annum.
We are accelerating CCUS too. Six full-scale projects have been selected for EU funding to capture five million tons of CO2 annually by 2030, while delivering high returns, with eight additional projects in development
Learn more on our website
"Europe offers the most advanced regulatory environment in the world to accelerate the transition to net zero, from the EU green deal to carbon pricing."
MILJAN GUTOVIC
Region Head Europe and CEO Designate
HOLCIM 2023 Climate Report 5
CLIMATE LEADERSHIP
CLIMATE
MAKING PROGRESS ACROSS ALL DECARBONIZATION LEVERS
ACCELERATING GREEN GROWTH | 2023 IMPACT |
IMPACT DASHBOARD | |
ECOPACT READY-MIX | 19% |
NET SALES | |
TONS OF CONSTRUCTION | 8.4M |
DEMOLITION MATERIALS RECYCLED | |
GREEN CAPEX CHF | 402M |
SUSTAINABLE FINANCE | 40% |
REDUCTION CO NET/T CEM | 3% |
YEAR-ON-YEAR2 |
RECOGNIZED CLIMATE AND NATURE LEADERSHIP
First in sector with SBTi- validated net-zero targets
Piloting science-based targets for nature
Signatory since 2017 with aligned reporting
Taskforce member and early adopter
6 HOLCIM 2023 Climate Report
2021
2022
2023
2025 IMPACT
25%
10M
500M
40%
2%-4%
'Energy Transition | 'Circularity Lighthouse |
Changemaker' | Award' |
BY 2030
AMBITIONS FOR A 1.5°C FUTURE
5M
Tons of CO2 captured each year in Europe using CCUS
2BN | 8M |
Investment | Tons of net-zero |
in CCUS CHF | cement per annum |
Six CCUS projects selected for EU grants
HOLCIM 2023 Climate Report 7
CLIMATE LEADERSHIP CONTINUED
CLIMATE
DECARBONIZING HOLCIM TO BECOME NET-ZERO
At Holcim, we take a science-driven approach to becoming
a net-zero company. In 2023, we made strong progress towards our targets, which are in line with the 1.5°C framework.
Our net-zero pledge
With climate action at the core of Holcim's strategy, we have 2030 and 2050 net-zero targets in line with the 1.5°C framework validated by the Science Based Targets initiative (SBTi) for all three scopes.
Our Climate Policy
Holcim's approach towards accelerating climate action while enabling a Just Transition and climate adaptation are described in our Climate Policy. The main principle of our policy is the delivery of our actions in a rigorous, science-based manner, to execute our net-zero journey. We comply with local, state, federal and national regulations in all our operations and advocate for collective actions with relevant stakeholders.
Read more about climate- and nature-related risks and opportunities on page 64
What is new?
We have further updated our 2030 and 2050 targets by:
- Upgrading our combined Scope 1 & 2 2030 targets to meet the latest SBTi validation criteria
- Extending our 2050 target coverage to include all 15 categories of Scope 3 emissions
FOR YEARS, HOLCIM HAS BEEN AT THE FOREFRONT OF CLIMATE ACTION:
2020 | 2020 / 2021 | 2021 / 2022 | 2023 | 2023 |
In 2020, Holcim was | In 2020, we | In 2021, Holcim was |
the first global | launched ECOPact | first in its sector with |
building solutions | concrete, and | SBTi-validated 2030 |
company to sign the | followed that in | and 2050 net-zero |
United Nations | 2021 with the launch | targets. In 2022, we |
Global Compact's | of ECOPlanet | upgraded our 2030 |
'Business Ambition | cement, to offer the | targets to align with |
for 1.5°C' initiative, | broadest range of | our sector's new 1.5°C |
with intermediate | low-carbon | science-based |
2030 targets | solutions. | framework. |
approved by SBTi. |
In 2023, Holcim was selected for funding from the European Union (EU) Innovation Fund for six of its breakthrough carbon capture, utilization and storage (CCUS) projects in Germany, Poland, Greece, France, Croatia and Belgium.
Holcim committed to producing eight million tons of fully decarbonized cement per annum by 2030, thanks to the six CCUS projects in Europe that are planned to go live before 2030. One of the projects, Lägerdorf in Germany, won two awards at COP28.
8 HOLCIM 2023 Climate Report
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Holcim AG published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 09:35:57 UTC.