‘Getting the Numbers Right’: Beyond the Inventory in the Cement Industry

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

2. WBCSD Cement Sustainability (CSI) 23 member companies 100 countries ~40% global production CEOs sign CSI Charter

3. From accounting to reducing: challenges • Sector characteristics: • 60% of cement emissions: process emissions • Long infrastructure life • Increasing demand … … • 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

4. Sector specific detail ‘… provide a harmonized methodology for calculating CO2 emissions, with a view to reporting these emissions transparently’ ‘… addresses all direct and main indirect sources of CO2 emissions related to cement manufacturing, in absolute and specific or unit-based terms’ Developed and revised with stakeholders

5. Verification

6. Benchmarking, target-setting Companies set own emissions reductions targets, sharing learning together By 2010 (1990 baseline) • Holcim: 20% reduction in specific CO2 emissions • Titan: 15% reduction in specific CO2 emissions • Siam Cement Group: reduction to 670 kg/ton cementitious product By 2012 (1990 baseline) • Votorantim: 10% reduction in specific CO2 emissions • Italcementi: reduction to 690 kg/ton cementitious product … etc

7. Policy framework based on sound data • CSI ‘Getting the Numbers Right’ • Aim: obtain current and robust data for CO2 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, 2007 2007 data = 891 global cement installations / 31% of global cement production

8. ‘Getting the Numbers Right’ 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%

9. Competition issues, anti-trust • Managed by independent 3rd 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

10. Using the data

11. Using the data

12. Using the data 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

13. Using the data • CSI Sectoral Approach modeling work • Cement Technology Roadmap 2009 with IEA • Policy discussions • Stakeholder queries:

14. Futureoutlook 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 www.wbcsdcement.org/co2data CD available Caroline Twigg: twigg@wbcsd.org

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