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

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

Cement Industry

23 March 2010, Washington, USACaroline Twigg

World Business Council for Sustainable Development (WBCSD)

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

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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 … …

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‘… 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

Sector specific detail

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VerificationItem Proposed requirement

Standard ISAE3000, ISO 14064-3 and CSI CO2 Protocol

Materiality Threshold

5% of one or more CO2 KPIs

Level Limited

Frequency At least once every two years, assuring data from both

CoverageVerifiers decide number of sites to be visited and assurance statements explicitly mention number of sites visited and corresponding % CO2 emissions covered

Sampling PlanCount plants assured in other schemes (eg EUETS, CDM) as samples for CSI CO2 assurance, avoiding double verification

DeadlineData must be verified and reported:• Old plants/ new plants/ acquisitions – two years at most• New CSI members – four years at most

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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

Benchmarking, target-setting

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• 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

Policy framework based on sound data

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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’

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• 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

Competition issues, anti-trust

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Net CO2 emission per tonne clinker

200

300

400

500

600

700

800

900

1000

1100

1200

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% clinker production

kg C

O2/

t

2007 2006 2005 2000 1990

Using the data

Using the data

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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

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• CSI Sectoral Approach modeling work• Cement Technology Roadmap 2009 with IEA• Policy discussions• Stakeholder queries:

Using the data

Agency Focus of query

PWC Mexico Sectoral approach study

International Energy Agency (IEA) Regional information (India)

French Ministry of Environment Cement industry environmental performance

Cement Association of Canada Benchmark modeling

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Future outlookMaintain system robustness• Secure, accurate, structured, rules, verification Increase representativeness• 31% coverage: expanding to 50%, annual collectionImprove system•Improved Protocol January 2011, User Guide updateAnswer external queries (50 to date)CSI analysis and commentaryMitigation projects based on sound data

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Find out morewww.wbcsdcement.org/co2data

CD availableCaroline Twigg: [email protected]

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‘Very valuable asset allowing the industry to engage in fact-based dialogue …

speaking one common language has proved very useful’ (CEMBUREAU)

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Thank you