The Cement Sustainability Initiative (CSI) A member-led program of the World Business Council for Sustainable Development (WBCSD) CSI Forum, São Paulo, 1 September 2009

WBCSD – 190 members

WBCSD Regional Network NHO (Norway) n n Vernadsky Foundation (Russia) Danish CSBD n BCSD UK n n Responsible Business Forum (Poland) n econsense (Germany) Business Europe (Belgium) n The EXCEL Partnership (Canada) n BCSD Austria n n BCSD Hungary n Kazakhstan BCSD EpE (France) n n BCSD Croatia n BCSD Mongolia CGLI (USA/Canada) n FE BCSD Spain n FFA (Spain) n n BCSD Turkey n BCSD Korea BCSD Portugal n n SEV-BCSD Greece China BCSD n n Nippon Keidanren (Japan) US BCSD n APEQUE (Algeria) n AEEC (Egypt) n BCSD Pakistan n CII India n n BCSD Taiwan BCSD UAE n BCSD El Salvador n n BEC (Hong Kong) BCSD Mexico n TERI BCSD India n CentraRSE (Guatemala) n n BCSD Honduras BCSD Thailand n n Vietnam BCSD* uniRSE (Nicaragua) n n BCSD Curaçao n PBE (Philippines) IntegraRSE (Panama) n AED (Costa Rica) n n BCSD Venezuela BCSD Sri Lanka n n BCSD Colombia BCSD Malaysia n BCSD Ecuador n PERU 2021 n n BCSD Brazil BCSD Bolivia n BCSD Zimbabwe n BCSD Paraguay n FEMA (Mozambique) n NBI (South Africa) n BCA Australia n n BCSD Uruguay Accion RSE (Chile) n n BCSD Argentina BCSD New Zealand n * In the process of being created Strong presence in Latin America

CSI Participants (with headquarters country) Ash Grove Cement (USA) Camargo Correa (Brazil) CEMEX (Mexico) Cementos Molins (Spain) Cimentos Liz (Brazil) Cimpor (Portugal) CRH (Ireland) Grasim Cement (India) HeidelbergCement (Germany) Holcim (Switzerland) Italcementi (Italy) Lafarge (France) SCG (Thailand) SECIL (Portugal) Shree Cement (India) Taiheiyo (Japan) Titan (Greece) Votorantim (Brazil) These are the companies who participate in the program, and they include a mix of global and national cement makers. Many operate in a large number of countries well beyond their corporate headquarters. Collectively, participants have operations in more than 100 countries

CSI Agenda for Action (2002) Joint projects develop: guidelines best practices reporting and monitoring systems Individual company actions develop Sustainable Development strategy implement guidelines and best practices publically report KPIs 3rd party verification set targets and report progress Key areas Climate protection Local impacts on land and communities Responsible use of fuels and raw materials Communications and progress reporting Employee health and safety Concrete recycling (since 2006) Emissions monitoring and reduction Concrete sustainability (since 2008)

Current Focus: Health and Safety CSI commitment develop standards to measure, monitor and report Exchange information to reduce number of accidents report performance in common format; analyze for trends and common problems Specific fatality prevention programs being developed for drivers and contactors Presentation by Anthony Henshaw, CEMEX Breakout on driver safety this afternoon

Current Focus: Climate protection CO2 protocol used by 80% of the world’s cement industry “Getting the Numbers Right (GNR)”: Global cement database for CO2 and energy factors, with independently verified data Policy Work – Sectoral approach to CO2 emissions management for post-Kyoto international agreement. New CDM Methodology proposed to encourage more wide scale use of CDM. CSI-IEA Technology Roadmap to identify technology needs to 2050. Companies set voluntary CO2 reduction targets, leading to measurable reductions in CO2 emissions intensity. More than 12% improvement in specific emissions (CO2/ton of cement) since 1990, and speed of improvement has increased in recent years. Roadmap breakout session with Caroline Twigg and Martin Schneider.

Climate change policy discussions EU Emissions Trading System – next phase US Waxman-Markey bill in Congress China planning to set emissions intensity targets in next 5-year plan. Already have energy efficiency goals. Asia Pacific Partnership IEA Roadmap development UNFCCC COP 15 Copenhagen … and beyond… NAMAs and sectoral emissions management Reform of CDM mechanism

“Getting the Numbers Right” (GNR): a database for the cement industry Representative statistical information on the energy and CO2 performance of clinker and cement production, worldwide and regionally, to serve the needs of internal and external stakeholders. World-wide cement production related CO2 and Energy Performance Information, from over 800 cement plants: 23 indicators at installation and company level on production, CO2 emissions, thermal & electric energy use, fuel mix, etc., … Years now available: 1990, 2000, 2005, 2006 2007 data collection available by end of September External assurance of CO2 data by CSI members In 2006, the CSI initiated a key project: the “Getting the Numbers Right (GNR)” system. Its objective is to obtain current and robust data for CO2 and energy performance of clinker and cement production at global and regional levels across cement companies worldwide. It is a unique system that provides transparent and verified data. Data Collection CO2 and energy performance data is collected on: Specific gross and net CO2 emissions per ton clinker, cement and cementitious product Absolute gross and net CO2 emissions Thermal energy consumption per ton clinker Electric energy consumption per ton cement Fuel mix (fossil fuel / fossil waste / biomass) Clinker to cement ratios To enable calculation of the percentiles, trend lines and correlations, company facilities were also required to provide: Clinker and cement production volumes Differentiation by grey and white clinker Type of installation Location of installation Nominal capacity Year of construction

Regional coverage of cement production in GNR database (800 million tons cement produced by CSI members) The scope of the data collection covers all countries and regions where GNR system participants have clinker, cement and grinding operations. The geographical scope is expected to expand as additional parties join the effort. The GNR system is to date the database with the widest coverage of the cement industry globally, but could be better represented in Asia, particularly in China. Currently, GNR participants cover 31% of global cement production in 2006, with high data representation for Europe, North America, Latin America and India, but low for Asia and China. The CSI is actively encouraging other cement companies and federations worldwide to participate, so as to build a more representative global database as a foundation for policy analysis. CEMBUREAU (the European Cement Association) and the Cement Industry Federation Australia have signed up to the GNR system. First Chart CSI: Leading cement companies in a global voluntary initiative (800 million tons cement produced by CSI members) Box: Cement Industry Features 2.6 billion tonnes produced, 2007 Manufactured in nearly all countries 50% of industry in China More than half CO2 comes from chemical reaction during cement manufacture Technology developed by others, readily available in the market The CSI member companies represent approx. 30% of the global cement production, in some regions such as Europe and North and Latin America, coverage is between 65% and 90%. The lowest coverage is in the CIS countries and China.

Energy consumption per tonne clinker by kiln type The best energy efficiency – 3,380 MJ/tonne of clinker (yearly average in GNR) – is achieved with preheater kilns with precalciner (PH-PC), followed by preheater kilns without precalciner (PH), which are on average ~9% less efficient. The variation of performance within each technology is around 5%. Modern PH-PC kilns have a higher production capacity than older installations, which also contributes to higher energy efficiency across the board. Long dry kilns without preheater towers consume around 33% more thermal energy and the old wet kilns consume up to 85% more energy than in PH-PC kilns. What is important here is that these data show that the potential to improve the thermal efficiency of existing kilns through operational optimization is very small. Substantial improvement of the industry average thermal efficiency can only be achieved by investment in new or upgrading old kilns, assisted by closure of the less efficient install ations.The thermal efficiency of an installation is largely defined by its original engineering design

Global gross CO2 per tonne clinker (1990 to 2006)

Global net CO2 per tonne cementitious (1990–2006) From 1990 to 2006 the specific CO2 emissions go down.

CO2 emissions trends Conclusion Results from the GNR-system show that cement production by companies participating in the GNR initiative increased by 53% from 1990 to 2006, whereas absolute net CO2 emissions increased more slowly, by only 35%, showing evidence of a decoupling of production and related emissions. GNR contains a wealth of data to develop knowledge and to manage and improve the cement industry’s CO2 and energy performance The CSI invites further participation especially from North- and Latin America, China, Russia & Japan.

GNR - conclusion A wealth of data to develop knowledge to manage and improve the cement industry’s CO2 and energy performance CSI invites further participation Detailed report published in June 2009 online: www.wbcsdcement.org/co2data Global data available online Regional data being added to support CDM In 2006, the CSI initiated a key project: the “Getting the Numbers Right (GNR)” system. Its objective is to obtain current and robust data for CO2 and energy performance of clinker and cement production at global and regional levels across cement companies worldwide. It is a unique system that provides transparent and verified data. Data Collection CO2 and energy performance data is collected on: Specific gross and net CO2 emissions per ton clinker, cement and cementitious product Absolute gross and net CO2 emissions Thermal energy consumption per ton clinker Electric energy consumption per ton cement Fuel mix (fossil fuel / fossil waste / biomass) Clinker to cement ratios To enable calculation of the percentiles, trend lines and correlations, company facilities were also required to provide: Clinker and cement production volumes Differentiation by grey and white clinker Type of installation Location of installation Nominal capacity Year of construction Breakout session with Eamon Geraghty, CRH this afternoon

International Climate Policy: a Sectoral Approach A combination of policies and measures, developed within the UNFCCC International Cooperation with major sector actors to develop agreed data, monitoring and verification requirements, etc. Nationally Appropriate Mitigation Action (NAMAs) to set local goals, policies and timetables. Offers the ability to move more quickly with a smaller number of parties. It does not limit economic growth in developing countries Presentation by Vincent Mages, Lafarge Breakout Session with Vincent & Patrick Verhagen (Holcim)

Other Recent Work Cement Technology Roadmap (with IEA) Breakout session this afternoon Recycling concrete: Towards “Zero Landfill” Report published in July 2009, available online www.wbcsdcement.org/recycling

Recycling concrete: Towards “Zero Landfill” Raise awareness of concrete recycling In some countries, near full recovery achieved But mostly, concrete ends up in landfills Little data available Recommendations: Collect and publish data Adopt policies to incentivize recycling Set targets for use of recycled concrete Report published in July 2009, available online: www.wbcsdcement.org/recycling In 2006, the CSI initiated a key project: the “Getting the Numbers Right (GNR)” system. Its objective is to obtain current and robust data for CO2 and energy performance of clinker and cement production at global and regional levels across cement companies worldwide. It is a unique system that provides transparent and verified data. Data Collection CO2 and energy performance data is collected on: Specific gross and net CO2 emissions per ton clinker, cement and cementitious product Absolute gross and net CO2 emissions Thermal energy consumption per ton clinker Electric energy consumption per ton cement Fuel mix (fossil fuel / fossil waste / biomass) Clinker to cement ratios To enable calculation of the percentiles, trend lines and correlations, company facilities were also required to provide: Clinker and cement production volumes Differentiation by grey and white clinker Type of installation Location of installation Nominal capacity Year of construction

Quarry rehabilitation case studies 21 case studies from CSI members Links with UEPG, UNEP, CEMBUREAU Breakout on quarry rehabilitation at 4.15pm www.wbcsdcement.org 19

Summary 2008-09: A very busy year for CSI: many climate data and policy projects Increased work on employee safety: companies are not satisfied with their current safety performance Further discussions this morning + Come to the breakout sessions this afternoon Technology Roadmap Sectoral Approach Getting the Numbers Right Improving Driver Safety Carbon Capture and Storage Quarry Rehabilitation

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