OUR CONTRIBUTION TOWARDS A CARBON NEUTRAL WORLD

CEMEXPOSITIONONCLIMATECHANGE

1

OUR

CONTRIBUTION

TOWARDSA

CARBON

NEUTRAL

WORLD

CEMEXPositionon

ClimateChange

AtstockProductions/Shutterstock


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Executive Summary

CEMEXbelievesthatclimatechangeisoneofthebiggestchallengesofourtimeandsupportstheurgencyof collective action to ensure compliance by all parties in the implementation of theParis AgreementcommitmentsandthefulfilmentoftheUNSustainableDevelopmentGoalsonClimateAction.Advancingon climate solutions requires a collaborative cross-industry action and cooperationwith governments,non-profitorganizationsandmultilateralinstitutions.

ClimatechangehasbeenapriorityforCEMEXformanyyearsandwehavebeenworkingtomaximizethetechnicalleverscurrentlyavailableinthecementproductionprocess:investinginenergyefficiency,useofalternative fuels, expanding our use of renewable energy and increasing clinker substitution throughalternativecementitiousmaterials.

Throughtheseeffortswehaveachievedasignificantreductionofmorethan22%inournetspecificCO2emissionscomparedtoour1990baseline. In2019weannouncedagoaltoreduce30%ofourCO2netemissionsby2030,andwearenowcommittingtoamoreambitiousintermediatetargetofreducing35%ourCO2netemissionsby2030,alignedwiththeScience-BasedTargetsMethodology.Toensurewemeetournewtarget,thisobjectivehasbeenincludedinourCEOandtopmanagementvariablecompensationschemeandwehavedetailedCO2roadmapsdevelopedateachofourcementplantswhichincludearolloutofprovenCO2reductiontechnologiesandtheinvestmentsrequiredfortheirimplementation.

Cementisthebasicingredientofconcrete,ourendproductthatisthesecondmostwidelyusedmaterialintheworldafterwater.Therearenosubstitutesforthekeyattributesofconcrete:strengthandresilience.Asaresult,webelieveconcretehasacriticalroletoplayinthetransitiontoaLow-CarbonEconomy.Wehave the aspiration to deliver net-zero CO2 concrete globally by 2050, which will contribute to thedevelopmentofclimate-smarturbanprojects,sustainablebuildingsandclimate-resilientinfrastructures.Thetechnologytoreachthisgoalisstillinearlystagesofdevelopmentandweintendtoworkwiththeindustry,governmentsandmultilateralagenciestodevelopthemeanstoachievethisimportantgoalofnet-zeroconcrete.

Theopportunityforreducingouremissionsisnotlimitedtotheproductionprocessbuttothewholelifecycleofourproducts.Thisincludesthemanufacturing,deliverytoconstructionsite,finishedconstructionand the recycling and re-use of thematerials at the end of their lifecycle. The biggest contribution ofconcrete is in the use phase due to its unique inherent characteristics: strength, durability, energyefficiency, resilience,minimummaintenance, recyclable and lowerCO2 emissions over its full life cyclecomparedtootherconstructionmaterials.

Thepresenceofarobustandsustainablecementandconcreteindustryiscloselylinkedtotheeconomicdevelopmentoflocalregionsandcountries.CEMEXbelievesthattheavailabilityofthebuildingmaterialsweoffer-cement,concreteandaggregates-arethefoundationsofsustainableeconomicdevelopment:puttingroofsovertheheadsofbillions,creatingaffordablehomesforthoselivingbelowthepovertyline,providing a livingwage for the local construction team that builds it, fortifying existing infrastructureagainst natural disasters and providing building solutions tailored for critical societal services likehealthcare,education,mobility,energyandindustrialdevelopment.

Weshallbeopenandtransparentinmeasuringourprogressandadvocatefortheurgentneedtomakeclimatechangeatoppriorityintheindustry.Asareflectionofthis,CEMEXhasrecentlybeenincludedinthe“AList”ofCDP(formerlyCarbonDisclosureProject), inrecognitionforouractionstocutemissions,mitigateclimaterisksanddeveloptheLow-CarbonEconomy.CDP’sannualenvironmentaldisclosureandscoringprocessiswidelyrecognizedasthegoldstandardofcorporateenvironmentaltransparency.


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CEMEXHASTHE

ASPIRATIONTODELIVER

NET-ZEROCO2CONCRETE

GLOBALLYBY2050


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CEMEXbelievesthatclimatechangeisoneofthe

biggestchallengesofourtimeandsupportsthe

urgency of enhanced ambitions to ensure the

highest possible mitigation and adaptation

efforts by all parties, recognizing the need to

limitglobalwarmingbeyond2°Celsius.

ClimatechangehasbeenapriorityforCEMEXfor

many years and we have been working to

maximize the technical levers available in the

cementproductionprocess: investinginenergy

efficiency,usingalternativefuels,expandingour

use of renewable energy and increasing our

substitution of clinker through alternative

cementitiousmaterials.

Through these efforts we have achieved a

significantreductionofmorethan22%inournet

specific CO2 emissions compared to our 1990

baselineandwearenowcommittingtoamore

ambitious intermediate targetof reducing35%

our CO2 net emissions by 2030, which should

takeustoalevelofemissionsof520kgCO2per

tonofcementitiousproduct.Thisnewtarget is

aligned with the Science-Based Targets

Methodology,sothatwecontributetomeetthe

ParisAgreementgoals.

Cementisthebasiccomponentofconcrete,our

endproduct.Concretehasakeyroletoplay in

thetransitiontoaLow-CarbonEconomyasitis

themostusedman-madematerialintheworld

used to build resilient infrastructure (roads,

highways,bridges,dams,airport runways,etc.)

and buildings (schools, hospitals, homes,

commercialandindustrialbuildings).

Wehave theaspiration todelivernet-zeroCO2

concretegloballyby2050,whichwillcontribute

to the development of climate-smart urban

projects, sustainable buildings and climate

resilientinfrastructures.

The challenge of significantly cutting global

emissionswill also require a transformation of

thebuiltenvironmentthatlooksstrategicallyat

the full construction value chain and

incorporates products that can guarantee

performancebothintermsofcarbon-efficiency

andresilience.

The opportunity for reducing emissions is not

limited to the production process but to the

whole life cycle of our products. The biggest

contributionofconcreteisintheusephasedue

to lower CO2 emissions over its full life-cycle

comparedtootherconstructionmaterials.

OURPOSITIONONCLIMATECHANGE


5

Although more data, transparency and robust

life-cyclestandardsarestillneededtocoverall

the emissions in the built environment, an

independent2019reportfromtheInternational

InstituteforSustainableDevelopment“EmissionOmissions: Carbonaccountinggaps in thebuiltenvironment” suggests that, when all thoseemissions are taken into account, concrete’s

embodied carbon footprint could be up to 6%

lessintensivethanthatofwoodproducts.

Thepresenceofarobustandsustainablecement

and concrete industry is closely linked to the

economic development of local regions and

countries.CEMEXbelievesthattheavailabilityof

the building materials we offer - cement,

concreteandaggregates-arethefoundationsof

sustainable economic development: putting

roofs over the heads of billions, creating

affordable homes for those living below the

povertyline,providingalivingwageforthelocal

construction team that builds it, fortifying

existing infrastructure against natural disasters

and providing building solutions tailored for

critical societal services like healthcare,

education, mobility, energy and industrial

development.

Concrete is a local business, employing local

communitiesandboostinglocaleconomies.The

componentsthatgointomakingconcrete–

aggregates,cementandwater-arealsosourced

locally. Hence it is one of the few industries

wheretheproductionvalueremainslocal.Most

ready-mixedconcreteisusedwithin30kmofthe

productionsite.

Withthisemphasisonlocalvalue,thesectorisa

vital component in strengthening and building

local economies by delivering access to

sustainablebuildingmaterials,promotingskilled

jobs and generating stable economic activity.

Today, it is estimated that the global cement

industry employs directly approximately

1.2millionpeopleandsupportsmillionsmorein

itssupplychain.

Webelievethatalleconomieshavetherightto

developtotheirmaximumpotential.Inlinewith

the rising global population and urbanization

patterns, global cement production is set to

grow by 12-23% by 2050 from current levels.

Knowing this, our challenge is clear - wemust

meettheincreasingdemandforcementaround

theglobe,whileat the same time, significantly

reducingdirectandindirectCO2emissionsfrom

our operations, together with providing

sustainableandinnovativesolutionsforsociety.

CEMEX will focus on delivering innovative

productsthatbuildresiliencetoclimatechange

impactsandadvancebuildingsustainability.

ASOF2019,WEHAVE

REDUCED22%OURNET

CO2EMISSIONSPERTON

COMPAREDTO1990


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CONCRETEABSORBSUP

TO25%OFITSEMBODIEDCO2PROCESS

EMISSIONSDURINGITS

LIFETIME


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Up to 2019, we have achieved a significant

reduction of more than 22% in our net CO2

emissionspertonofcementitiouscomparedto

1990levels,whichjustforthatyearalone,meant

weavoidedemittingmorethan7.5milliontons

ofCO2,equivalenttotheemissionsof1.6million

passengervehiclesdriveninoneyear.Withour

newtargetoffurtherreducing35%ournetCO2

emissions by 2030, we shall avoid the annual

emissionofupto16milliontonsofCO2by2030

compared to 1990 levels, equivalent to the

emissionsof3millionpassengervehiclesdriven

inoneyear.

CEMEX has been working for many years to

maximizetheuseoftraditionalleversavailable

in the cement sector such as investing in

optimizingtheenergyefficiencyofourplants,

fuel switching strategies to use alternative

fuels,expandingtheuseofrenewableenergy

and increasing the substitution of clinker in

cementbyalternativecementitiousmaterials.

We are committed to continue reducing our

directandindirectemissionsinourprocesses,

both through the maximization of the

traditional CO2 reduction levers and through

investingininnovation.

1. Newtypesofclinkerandnovelcements

2. Energyefficiency

3. Increasingtheuseofalternativefuelsto

substitutefossilfuels

4. Maximizingtheuseofrenewableenergy

aspowersource

5. Clinkersubstitutes

6. Expandingandprotectingnaturalcarbon

sinks

7. Implementing Carbon Capture,

UtilizationandStorage(CCUS)andother

carboninnovativetechnologies

Wearealsopursuingnewinnovativeprocesses

to mitigate our environmental impact through

continuous improvement in our production

processes,liketheproductionofnovelcements

as alternatives to traditional Portland cement.

But even with the most efficient processes

possible, there is a part of the CO2 emissions

linkedtoproductionthatcannotbeavoideddue

to the process emissions from the

decarbonization of limestone. That is why we

recognize the need of exploring innovative

CarbonCapture,UtilizationandStorage (CCUS)

technologies,whichshallenableustominimize

ourimpacts.

New types of clinker and novel cements with

lowercarbonfootprint

Inrecentyears,thedevelopmentofnewtypesof

clinker with a smaller CO2 footprint and/or

higher reactivity has received increased

attention. CEMEX has successfully developed

new types of clinker with 20% to 30% lower

emissions due to changes in the raw meal

compositionandloweremissionsincementdue

to the increased reactivity of the clinker,

allowingahighercontentof clinker substitutes

incement.CEMEXhasalreadyintroducedanew

clinker type with lower energy demand and

higher reactivity in a relevant number of its

cementplantsandcontinuestoworkinthisarea.

EnergyEfficiency

Energyefficiencyplaysacentralroleinachieving

a Low-Carbon Economy, reducing energy

demandandloweringenergy-relatedemissions,

whilehelpingmitigate climate change.Cement

manufacturing remains an energy intensive

process,soourfocusistoidentifyopportunities

toreplaceoutdatedequipmentwithnewenergy

efficient technologies and optimize existing

plants with automation and process control

technology. An example of this is the recently

implemented project in our Sv Juraj plant in

Croatiawherethesystemwhichcontrolsthe

DECARBONIZINGOUROPERATIONS


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fanstocooltheclinkerproductionwasreplaced,

allowing for a 25% reduction in power

consumption.

IncreasingtheuseofAlternativefuelsto

substitutefossilfuels

A relevant lever to reduce emissions from our

combustion process is the use of alternative

fuelsfromdifferentsourcesofwaste(industrial

waste, municipal solid waste, biomass, tires,

etc.) to substitute fossil fuels, suchas coal and

pet coke. Our challenge when increasing our

substitution rate is the lack of stable quality

wastesupply, limitedpolicyincentivestargeted

atdevelopingthewaste-to-fuelvaluechainand

alackofaregulatoryframeworkthatrecognizes

co-processingastheoptimalwastemanagement

solutionforunrecyclablematerials.

Co-processing is a more efficient waste

management solution than landfilling and

incineration, this means that the cement

industryisanetconsumerofwasteandit’sat

theheartoftheCircularEconomy.Co-processing

leadsto4keyclimateobjectives:

• Reducing CO2 intensity of cement

manufacturing

• Reducingourdependenceonfossilfuels

• Decreasing the amount of landfilled

waste

• Minimizing public investment costs in

new dedicated waste management

facilities

AtCEMEX,wearecontinuouslyinvestingin

upgrading our cement plants to maximize

the use of alternative fuels. In 2019 our

alternativefuelssubstitutionratewas28%;

weco-processed3million tonsofwaste in

90% of our cement plants, enabling the

replacementofalmost2milliontonsofcoal.

We shall continue to seek investment

opportunities to find and transform new

sources of waste to replace fossil fuels,

whereverpossible.

28%AlternativeFuel

Substitution

Ratein2019


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Maximizingtheuseofrenewableenergyas

powersource

Ourindirectemissions,relatedtotheelectricity

consumedbyourplants,arealsoanopportunity

toreduceourenvironmentalimpact.OurGlobal

Energy business focuses on promoting and

developingstrategicprojectstoallowaccessand

use of renewable energy sources in our

operationsworldwide.

Itnotonlycomplementstoourexistingeffortsto

reduce carbon emissions, but also makes

business sense, representing economically

attractive sources of energy in the countries

whereweoperate.Asaresultofourstrategyto

transitiontocleanenergysources,during2019,

30% of our cement operations’ power supply

came from renewable sources. We currently

lead our industry in this effort and we have

establishedanambitious2030goalof40%ofour

projected consumption. An example of this

ambitionisthepartnershipwehaveestablished

intheUKtoconsume100%renewableelectricity

inover320sitesstartingin2019.

Renewableenergyisincreasinglyavailableandin

some markets, it’s becoming very competitive

comparedwithfossilfuelgeneration.However,

productionunpredictabilityandintermittency

fromitsrelianceonexternalfactorssuchaswind

andsunlight,meansthatrenewableenergyhas

not yet been able to fully replace fossil fuel

generation.

Toovercomeunpredictabilityandintermittency,

CEMEXpartneredwithEnergyVaulttodevelop

an energy storage technology that enables

renewables to deliver around-the-clock

baseload power for less than the cost of fossil

fuels. The solution is not dependent on land

topographyorspecificgeologyunderground.

Clinkersubstitutes

Theuseofothercementitiousmaterialsreduces

theclinker-to-cementratio,whichmeanslower

emissions and lower energy use. CEMEX uses

clinkersubstitutessuchasblastfurnaceslag,fly

ash,limestoneandotherpozzolanicmineralsto

reduce our carbon footprint. Currently, the

averageclinkercontentinourcementproducts

isof78.7%asof2019,downfrom85.5%in1990.

This has allowed us to avoid approximately 4

milliontonsofCO2during2019.

Oneofourkeychallengesisthelocalavailability

of clinker substitutes; for example, granulated

blast furnace slag availability depends on the

location and output for pig-iron production

havingaslaggranulator,theflyashavailabilityis

30%OFOURENERGY

SUPPLYCAMEFROM

RENEWABLESIN2019


10

dependentonsupplyfromlocalcoal-firedpower

plantsandtheavailabilityofnaturalpozzolansis

limitedtoanumberoflocations.Additionally,in

themediumterm,thefuturedecarbonizationof

thepowersectorcouldlimittheavailabilityoffly

ash and the production of slag is expected to

decline.

Therefore, CEMEX is dedicating its efforts and

investing in the research and development of

other cementitious materials and fillers to

replaceclinkercontent,likecalcinedclay,which

haspozzolanic-typeproperties.

CEMEXhasalsobeendeveloping itsknow-how

to find the optimal synergies between organic

chemicals and its clinker chemistry in order to

develop tailor-madequality enhancer additives

to improve the reactivity of cement and

therefore also increase the inclusion of clinker

substitutes.Atthesametime,CEMEXisusingits

proprietary grinding aids admixture technology

to reduce energy consumption during cement

production.

Expandingandprotectingnaturalcarbonsinks

Westronglysupporttherolethatnaturalcarbon

sinks play in reducing the total CO2

concentration in the atmosphere. CEMEX’s

nature reserve, El Carmen (140,000 hectares

wildlife reserve located on the U.S. - Mexican

border),storesaround11millionmetrictonsof

biologically sequestered CO2. In addition, 23.5

million tons of CO2are currently stored within

thevegetationofallour300quarriesaroundthe

world.Itisourintentiontoexpandandprotect

thesenaturalcarbonsinks.

Additionally,during2019wepublishedthe27th

volumeofourConservationBookserieswhichis

focused on how nature-based solutions

contributesignificantlytocaptureandstoreCO2.

Through a combination of impressive

photography and expert commentaries, this

volume aims to inspire global audiences to

continue expanding and protecting natural

carbon.Inthisbook,CEMEXhasbeenhonored

to work with some of the world’s most

prestigious conservation organizations such as

Conservation International, Wild Heritage, Sea

LegacyandGlobalWildlifeConservation.

Throughthesepublicationswewanttopromote

environmental awareness, which is key for

decision-making on conservation issues, while

reinforcing our company’s commitment to

promoteacultureofbiodiversityconservation.

ImplementingCarbonCapture,UseandStorage

(CCUS)andothercarboninnovativetechnologies

It is essential that CO2 separation and capture

technologiesbecomewidelyavailabletoachieve

the sectorial reduction ambitions. Several of

these Carbon Capture, Use and Storage

technologiesarebeingevaluatedat large scale

bythepowerandthecementsector.

CEMEX actively participates in various R&D

collaborative efforts with different sectors to

develop CCUS technologies, as well as other

carbon technologies. Some of these projects

include:LEILAC,eCOCO2andOxyfuel.


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11MILLIONMETRIC

TONSOFCO2ARE

BIOLOGICALLY

SEQUESTEREDINEL

CARMENRESERVE

Photoby:SantiagoGibert


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Concrete plays a fundamental role in the

transformation that the built environment

requires to mitigate climate change. More

importantly, in order to achieve rapid and

impactful climate change mitigation, CEMEX

believesthekeyisINNOVATION.

TechnologiestargetingClimateChange

LedbyCEMEXGlobalR&DandCEMEXVentures,

the company is advancing in cutting-edge

research and developing a wide range of

technologiesandconstructionsolutionsthatare

contributing, or are designed to contribute, to

themitigationofCO2emissions,enhancementof

energy efficiency of buildings, improvement of

resilience, intensification of long-lasting

structuresandthemaximizationofresourcesby

circulating products, components,

andmaterialsin use at the highest possible

levelsatalltimes.

CEMEX’s portfolio of concrete technologies,

construction solutionsandglobalbrandsoffers

lightness, porosity, resistance, ductility and a

numberofotheruniquefeaturesthatfulfillthe

increasingly demanding performance

requirements of sustainable buildings,

structuresandcities.

• Recarbonation of CO2 - A key

characteristicofconcreteiscarbonation,

which is the gradual absorption of CO2

during the lifecycle of the concrete

structures in the buildings. During the

lifeofabuiltstructure,upto25%ofthe

process emissions related to the

production of the cement can be

absorbed. In collaboration with key

partners and start-ups, CEMEX is

developing advanced research to

acceleratethiscarbonationprocess.

• Energy Efficiency - Making use of

concrete’s unique capacity to manage

heat (insulate, reduce, absorb, retain,

reflect and conduct), CEMEX has

developed a palette of concrete

technologiesthatenableenergysavings

inbuildingsandcities.

• Resilience-Throughadvancedmaterial

engineering,CEMEXtakesadvantageof

theporosityof thematerial todevelop

solutions thatmanagewater to reduce

the magnitude and/or duration of

disruptive events such as floods or

droughts. Furthermore, CEMEX´s

THEROLEOFCONCRETEINACARBON

NEUTRALECONOMY


13

concrete technologies provide

constructionsolutionswiththecapacity

to resist fire, hurricanes and other

naturaldisasters.

• Life-Cycle - CEMEX has enhanced the

inherent durability and long-lasting

characteristics of concrete to develop

productsthatcaneasilybeplacedunder

extreme weather conditions and will

require minimum maintenance

throughout the entire life of the

construction.

• CircularEconomy-CEMEXhas focused

strong efforts on developing in-house

technology to reducing both inputs of

materials and outputs of waste. To

exemplify, CEMEX´s unique fiber-

reinforced concrete technology

eliminates the need of steel

reinforcement in structures, enabling

thinnerelementswhich leadtoamore

efficientuseofmaterials.On theother

hand, CEMEX´s technologies make use

ofwaste streams to generate products

and solutions with identical

performance as conventional concrete

suchasreuseofreturnedconcrete,use

of recycled aggregates and use of by-

productsfromotherindustries.

CEMEX is one of the 22 industrial partners

working together with public organizations,

privateresearchcenters,anduniversitiesinthe

EuropeanprojectFastCarb.Thisprojectaimsat

validatingacceleratedcarbonationofrecycled

concreteaggregatewhile improvingthequality

of this aggregate by plugging the porosity and

ultimatelyreducingtheimpactoftheCO2inthe

concrete contained in structures. FastCarb is

administratedbyIREX(InstitutpourlaRecherche

Appliquée et l’expérimentation en Génie Civil)

and is supported by the French Ministry in

charge of Sustainable Development (Ministère

delaTransitionÉcologiqueetSolidaire).

We are strongly committed to continuing

investinginResearchandDevelopment(R&D)to

deliverinnovativesolutionsanddriveabusiness

model thatbenefitsboth theenvironmentand

society andwe shall continue to promote and

encourage the use of sustainable products

among our clients (developers, architects,

government, etc.) by investing in technical

capacitybuildingthatgeneratesthefoundations

ofeco-friendlydecisionmakingandenablesthe

buildingenvironment to transition towards the

useoflastingandsustainableproducts.

AsCEMEX,wegohandinhandwithourclients

andpartnersincreatingaLow-CarbonEconomy

where the use of innovative buildingmaterials

and solutions is driving the market. We will

continue to provide green building services to

promotebuildingcodesandcertificationswhich

deriveinhighperformancebuildingstandards.

CEMEXadvocatesfortheincrementaluseoflow-

carbon and climate resilient products in its

engagements with governments, NGO’s, and

distinguishedacademicsby increasinglygetting

involved at the early stages of buildings and

infrastructure planning and design in the

countrieswhereweoperate.


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CEMEXCONSUMES32TIMESMORE

WASTEFROMOTHERINDUSTRIES

THANTHEAMOUNTOFWASTEWE

GENERATEANDSENDTOLANDFILL


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CEMEX has been a driver of reporting and

transparency within the global cement and

concrete industry. We believe that successful

organizations today must actively measure,

report and validate (MRV) in order to create

long-term sustainable value and a continuous

improvement in their operational culture. We

understand reporting and disclosure of

environmentalimpactsandmitigationactionsas

a key driver for awareness, management and

leadership.

CementSustainabilityInitiative(CSI)

CEMEX was a founding

member of the Cement

Sustainability Initiative (CSI),

which operated under the

auspices of the World

Business Council for

SustainableDevelopment(WBCSD).Foundedin

1999, the CSI was a voluntary CEO-led global

effort by 24 major cement producers with

operations in more than 100 countries

representingaround30%oftheworld’scement

production. CSI members agreed on a global

methodologyforcalculatingandreportingCO2

emissions:TheCementCO2andEnergyProtocol.

The protocolwas alignedwith the overarching

Greenhouse Gas Protocol developed under a

joint initiative of the WBCSD and the World

Resources Institute (WRI) and based on

extensive practical application of Getting the

NumbersRight(GNR)project.

Today, the work carried out by the Cement

Sustainability Initiative (CSI) has been officially

transferredfromtheWorldBusinessCouncilfor

SustainableDevelopment(WBCSD)totheGlobal

Cement&ConcreteAssociation (GCCA)asof1

January2019.

GlobalCementandConcreteAssociation(GCCA)

CEMEX is also one of the

foundingmembersof thenew

Global Cement and Concrete

Association (GCCA). The GCCA

has been established as the

globalindustryplatformtoenablealignmentand

to facilitate sustainable development of the

cement and concrete sectors and their value

chains.

REPORTING&DISCLOSURE


16

GCCA members are required to develop a

climate change mitigation strategy, verify the

key performance indicators by a third party,

establish targets and report progress in

accordancewiththeGCCASustainabilityCharter

allowing the industry to standardize the

measuringandreportingonCO2emissionsata

globallevel.

Through our work in the GCCA we promote

cementandconcreteinnovationasakeydriver

for Climate Action. The recent launch of

Innovandi, the Global Cement and Concrete

Research Network composed of world-class

scientistsandindustryexperts,isatestimonyof

our commitment to achieve sound progress

through global collaboration on cement and

concrete innovation. The Global Cement and

Concrete Research Network is designed to

support global innovation with fact-based

researchfocusedonloweringtheCO2.

TaskForceonClimate-relatedFinancial

Disclosures(TCFD)

Additionally, we adhere to the

recommendations of the Financial Stability

Board (FSB) Task Force on Climate-related

FinancialDisclosures(TCFD)asitrepresentsthe

next step in our climate-related disclosures.

Creating a common understanding of climate-

related risks and opportunities across the

cement and concrete industry is key in the

deliveryoftheParisAgreementgoals.Disclosure

ofclimate-relatedgovernance,strategy,riskand

metrics is essential information for successful

long-terminvestors.

CDP

Both, Getting the Numbers

Right and the Carbon

Disclosure Project (CDP)

initiatives, represent

togetherthebiggestsources

ofcross-industrydataonCO2

emissions.

Asaresultofourdisclosureeffortswehavebeen

recentlyincludedinthe“AList”ofCDP(formerly

CarbonDisclosureProject),inrecognitionforour

actions to cut emissions,mitigate climate risks

anddeveloptheLow-CarbonEconomy,basedon

the data submitted by CEMEX through CDP’s

2019 climate change questionnaire. CDP’s

annual environmental disclosure and scoring

processiswidelyrecognizedasthegoldstandard

ofcorporateenvironmentaltransparency.

CEMEXwas

includedinCDP’s

2019“Alist”in

recognitionforour

disclosureactions

inClimateChange


17

WESUPPORTMARKETBASED

MECHANISMSASTHE

OPTIMALWAYTOREGULATE

CO2EMISSIONS


18

Webelieveglobalindustrycollaborationiskeyin

accelerating the development of strategic

Climate Action enablers at a global scale.

Therefore, we are active members and hold

leadership positions in national, regional and

global industry associations in the countries

where we operate such as the GCCA (Global),

CEMBUREAU (Europe), FICEM (Central and

SouthAmerica),PCA(UnitedStates),CANACEM

(Mexico),etc.Itismainlythroughglobalindustry

collaborationthatwepromoteandadvocatefor:

• Building energy efficiency - policy

measures that apply specific

recommendations to advance building

energy efficiency through the use of

innovative products and construction

solutions.

• Market-basedmechanismsandcarbon

pricing - we support market-based

mechanismsasakeypolicy instrument

and the optimal way to regulate and

reduce CO2 emissions. We believe the

market will lead to a predictable and

reliable carbon price, enabling

confidenceamongmarketplayersanda

continuous flow of the required

investments on climate solutions. In

CEMEX, we have incorporated an

internal carbon price into our

investment decisions to internally

evaluate the exposure to a potential

external carbon pricing, driving at the

same time a culture of constantly

reducing our carbon footprint

sometimes even beyond local

regulation. Carbon prices based on

externalmechanismsallowustobetter

evaluatetheprofitabilityofprojectsand

strategies.

• Avoiding Carbon Leakage - to avoid

carbon leakage, protection should be

offered to the industry where its

competitivenessisatstake.Suchborder

adjustmentmechanismsarealsoaway

to encourage other countries to

promotecarbonneutraleconomies.

• EfficientWasteManagementSystems-

the development and consolidation of

efficient waste management systems

across the Paris Agreement signatory

countries would enable a reliable and

high-quality sourcing of alternative

fuels, accelerating the efforts of the

cement industry to reduce its

dependency on fossil fuels. We will

continuetobuildawarenesswithpolicy

makers in the understanding that our

cement plants consume waste, leaving

no residues for landfilling, thus a key

part in the implementation of a global

WasteManagementHierarchy.

• Circular Economy Policy Framework

Implementation - across the countries

whereweoperate,westronglyadvocate

for a transition to a Circular Economy

wherethevalorizationofwastestreams

andthedesignofproductsareaimedat

reducing the impacts of landfilling on

humanhealthandtheenvironment.

• Carbon Capture, Use and Storage

Technologies - we support legislation

that enables the development and

deploymentofCarbonCaptureUseand

Storage (CCUS) as a potentially crucial

technologytolimitGHGemissionsinthe

longrun.

Wediscloseourmembershipandinvolvementin

industryassociationsrelatedtoclimateissuesin

our CDP annual disclosure process and have

consistency between our global climate action

policy position and those taken at industry

associationlevel.

CLIMATEACTIONADVOCACY


19

FOR2030,WEARE

COMMITTEDTOENSURING

THATATLEASTHALFOUR

CEMENTANDCONCRETE

SALESARELINKEDTO

SOLUTIONSWITH

OUTSTANDINGSUSTAINABLE

ATTRIBUTES


20

• Net-zeroCO2Concrete:Concretehasa

key role to play in the transition to a

Low-Carbon Economy as it is themost

usedman-madematerial in the world.

Wearefocusingoureffortsindelivering

net-zeroCO2concretegloballyby2050,

which shall contribute to the

development of climate-smart urban

projects, sustainable buildings and

climate resilient infrastructures. This

vision requires a concerted effort, not

justinthedeploymentofnewemerging

technologies to capture and utilize our

carbonemissions,butworkingtogether

with governments, environmental

agencies, NGO’s, the financial

community, industry professionals,

manufactures and builders. CEMEX

believesthatconcretecouldbecomethe

most sustainable building material,

having a key role in the emissions

absorption and avoidance in buildings

and infrastructure. Aspart of ournet-

zeroCO2visionforconcrete,CEMEXshall

continuepreservingthebiodiversityand

protecting carbon sinks throughefforts

likeour“ElCarmenNatureReserve”and

the conservation of the land in our

quarries. These nature-based carbon

offsets are a fundamental part of the

final solution and we will continue to

proactivelydevelopandpromotethem.

• Carbon Capture, Use and Storage

(CCUS):accesstoCCUStechnologiesisa

crucialmilestone for the industry tobe

able to continue reducing its GHG

emissions in the long run. We believe

CCUStechnologieshavethepotentialto

be cost effective. The development of

low-carbon solutions at scale for the

industry requires a proactive multi-

stakeholder approach and government

support.

• OurCommitmenttoInnovation:weare

strongly committed to continuing

investing inResearchandDevelopment

(R&D) to deliver innovative solutions

anddriveabusinessmodelthatbenefits

boththeenvironmentandsociety.

• Use of innovative and sustainable

products:wewill continue to promote

and encourage the use of sustainable

productsamongourclients(developers,

architects, government, etc.) by

investing in technical capacity that

generates the foundations of eco-

friendlydecisionmakingandenablesthe

building environment to transition

towards the use of lasting and

sustainableproducts.AsCEMEX,wego

hand in hand with our clients and

partners in creating a Low-Carbon

Economy where the use of innovative

building materials and solutions is

drivingthemarket.Wewillcontinueto

provide green building services to

promote building codes and

certifications which derive in high

performancebuildingstandards.

• Measuring Life-cycle impacts: we will

continue to advocate for the universal

implementation of Life-cycle

Assessment (LCA)whenmeasuring the

carbon emissions in infrastructure and

buildings.Thewaydataispresentedand

the disparity inmethodologies used to

measureandcompareemissionsacross

industries, influences regulatory

decision making and public opinion.

More quality data, transparency and

robustLCAstandards,arestillneeded.

LOOKINGFORWARD


21

ImplementationofLCAstandardsacross

all building materials industries, would

enableatransparentandfairanalysisof

the real carbon intensity of different

materialsandencouragetherightpolicy

stimulus to promote low carbon

products. For example, according to

differentstudiesanalyzingLCAofwood,

up to 72% of carbon emissions from

wood are not being counted for,

challenging the assumption that wood

construction materials are less carbon

intensive than steel or concrete.

Concrete’s embodied carbon footprint

could be up to 6% less intensive than

that of wood products when these

emissions are considered; moreover,

concrete can be the greener choice

among all building materials when

measuredoveritscompletelifecycle.

• Contribution to a Circular Economy:

CEMEX currently consumes as

alternative fuels or as alternative raw

materials 32 times more waste from

other industries than the waste we

generateandsendtolandfill.Webelieve

there is potential to do more to

consolidate ourselves as the preferred

destination for relevant waste streams

comingfromindustrial,commercialor

municipalsourcesaswellastoturninto

abusinessopportunitythepossibilityof

reprocessing the inert waste coming

from excavation, demolition and

construction activities, transforming it

into recycled aggregates than can be

usedintheconcreteproductionprocess

or in pavement projects. Circular

Economy is a natural extension of our

core businesses, we will devote great

effortstoprovidewastesolutionstothe

growingmetropolitanareas.

• Monitoring,ReportingandVerification

(MRV): is key to maintaining

accountability.We shall continue tobe

transparentinourexternalreportingof

climatechangeperformanceindicators,

alwaysrecognizingtherisksassociated.

Weshallmaintainandevenenhancethe

third-party verification of our key

performance indicatorsso theprogress

in our Climate Action strategy can be

tracked and monitored by all relevant

stakeholders.


22

Thispositionpapercontainsforward-lookingstatementswithinthemeaningoftheU.S.federalsecuritieslaws.CEMEXintendstheseforward-lookingstatementstobecoveredbythesafeharborprovisionsforforward-lookingstatementsintheU.S.federalsecuritieslaws.Insomecases,thesestatementscanbeidentifiedbytheuseofforward-lookingwordssuchas“may,”“assume,”“might,”“should,”“could,”“continue,”“would,”“can,”“consider,”“anticipate,”“estimate,”“expect,”“plan,”“believe,”“foresee,”“predict,”“potential.”“target,”

“strategy,”“intend”orothersimilarwords.Theseforward-lookingstatementsreflectCEMEX’scurrentexpectationsandprojectionsaboutfutureeventsbasedonCEMEX’sknowledgeofpresentfactsandcircumstancesand

assumptionsaboutfutureevents,aswellasCEMEX’scurrentplansbasedonsuchfactsandcircumstances.Thesestatementsnecessarilyinvolverisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfrom

CEMEX’sexpectationsreflectedinthispositionpaper.

©2020CEMEX,S.A.B.DEC.V.and/oritssubsidiaries.Allrightsreserved.


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Documents

OUR CONTRIBUTION TOWARDS A CARBON NEUTRAL WORLD