‘Getting the Numbers Right’: Beyond the Inventory in the Cement Industry 23 March 2010, Washington, USA Caroline Twigg World Business Council for Sustainable Development (WBCSD)

WBCSD Cement Sustainability (CSI) 23 member companies100 countries ~40% global productionCEOs sign CSI Charter

3 Industry emissions reductions with Protocol: Sector specific detail Benchmarking and target-setting Policy framework based on sound data Competitive issues, anti-trust Using the data From accounting to reducing: challenges Sector characteristics: 60% of cement emissions: process emissions Long infrastructure life Increasing demand … …

4 ‘… provide a harmonized methodology for calculating CO 2 emissions, with a view to reporting these emissions transparently’ ‘… addresses all direct and main indirect sources of CO 2 emissions related to cement manufacturing, in absolute and specific or unit-based terms’ Developed and revised with stakeholders Sector specific detail

5 Verification ItemProposed requirement StandardISAE3000, ISO and CSI CO2 Protocol Materiality Threshold 5% of one or more CO2 KPIs LevelLimited FrequencyAt least once every two years, assuring data from both Coverage Verifiers decide number of sites to be visited and assurance statements explicitly mention number of sites visited and corresponding % CO2 emissions covered Sampling Plan Count plants assured in other schemes (eg EUETS, CDM) as samples for CSI CO2 assurance, avoiding double verification Deadline Data must be verified and reported: Old plants/ new plants/ acquisitions – two years at most New CSI members – four years at most

6 Companies set own emissions reductions targets, sharing learning together By 2010 (1990 baseline) Holcim: 20% reduction in specific CO 2 emissions Titan: 15% reduction in specific CO 2 emissions Siam Cement Group: reduction to 670 kg/ton cementitious product By 2012 (1990 baseline) Votorantim: 10% reduction in specific CO 2 emissions Italcementi: reduction to 690 kg/ton cementitious product … etc Benchmarking, target-setting

7 CSI ‘Getting the Numbers Right’ Aim: obtain current and robust data for CO 2 and energy performance … at global and regional levels across cement companies worldwide Provides: –transparent, verifiable, current data on key drivers of emissions and performance –global and regional data: 1990, 2000, 2005, 2006, data = 891 global cement installations / 31% of global cement production Policy framework based on sound data

8 Note: 5 Chinese companies recently joined the CSI; their production volumes and emissions data are not yet included. Once they are, coverage in China will reach approximately 20% and global coverage over 40% ‘Getting the Numbers Right’

9 Managed by independent 3 rd party Complies with anti-trust laws Participants may only see reports on own individual company data or aggregated results Confidential information on companies or plants is: –not disclosed –not accessible –protected by contractual and data security measures Competition issues, anti-trust

10 Using the data

12 Provides Company benchmarking Tracking emissions inventories Industry data and performance analysis Credible, verified source of industry-wide and regional information for policy discussions Data-based responses to climate management Using the data

13 CSI Sectoral Approach modeling work Cement Technology Roadmap 2009 with IEA Policy discussions Stakeholder queries: Using the data AgencyFocus of query PWC MexicoSectoral approach study International Energy Agency (IEA)Regional information (India) French Ministry of EnvironmentCement industry environmental performance Cement Association of CanadaBenchmark modeling

14 Future outlook Maintain system robustness Secure, accurate, structured, rules, verification Increase representativeness 31% coverage: expanding to 50%, annual collection Improve system Improved Protocol January 2011, User Guide update Answer external queries (50 to date) CSI analysis and commentary Mitigation projects based on sound data

15 Find out more CD available Caroline Twigg:

16 ‘Very valuable asset allowing the industry to engage in fact-based dialogue … speaking one common language has proved very useful’ (CEMBUREAU)

17 Thank you