CEMEX Points to Growing Adoption, Benefits of ESG Initiatives

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Editorial by Geoffrey Lakings for Industrial Info Resources (Sugar Land, Texas)--In our last featured content article, Petrochemical Execs Talk Competitiveness and Energy Transition at Conference, we highlighted how IIR has detailed and extensive coverage of environmental, social, and governance (ESG) activity throughout the industrial marketplace.



I had the distinct pleasure this week of attending the Rice Business Partners Thought Leadership Series: Adapting to Globalization A Strategic Focus on Innovation and Sustainability, where Jaime Muguiro, the president of CEMEX S.A.B. de C.V.'s (NYSE:CX) (San Pedro Garza García, Mexico) U.S. division, discussed in depth his company's unfolding global strategy.

CEMEX, which develops and supplies quarried materials, cement, ready-mix concrete and concrete products around the world, is navigating today's unprecedented challenges, including those related to ESG and sustainability. The company is well positioned to chart its course while remaining a sustainable leader in the building materials industry. Last June, CEMEX launched a major initiative in this area:

• Yahoo! Finance: CEMEX Continues to Lead in Climate Action with its New Green Financing Framework - CEMEX announced last year the launch of its Green Financing Framework (the "Framework"), the first in its sector, further expanding its commitment to sustainable finance and building a more sustainable world. The Framework reflects the roadmap and objectives of CEMEX's climate action program, "Future in Action."
  The Framework enables CEMEX to issue green financing instruments aligned with the International Capital Market Association ("ICMA") Green Bond Principles and the Loan Market Association Green Loan Principles. Under the Framework, CEMEX intends to allocate the net proceeds from the issuances to finance eligible green projects in areas such as CO2 emissions reduction, clean electricity and energy efficiency, clean transportation, water management, air quality, circular economy, and waste management.
  CEMEX has a steadfast commitment to lead in climate action and to achieve net-zero carbon emissions globally in concrete by 2050. The Framework further aligns CEMEX's financing strategy to its corporate sustainability commitments, as outlined in its Future in Action program.

As 2023 was coming to a close, CEMEX announced how it would reward its suppliers who demonstrate strong ESG commitments through their operational practices:

• World Cement: CEMEX to offer preferential conditions to suppliers committed to sustainability - CEMEX has announced that it has signed an agreement with BBVA Mexico to offer preferential rates under its supply chain finance program to suppliers that demonstrate the best ESG practices.
  As part of this agreement, a revolving line of MXN1.6 billion was made available to approximately 3,000 CEMEX suppliers, which can now finance their working capital at preferential rates.
  Suppliers seeking to access this benefit will be evaluated by a third party to ensure that they meet the ISO 26000 standard, which is a social responsibility guide for public and private entities encompassing human rights, labor practices, the environment, fair operating practices, and active participation in community development. Supply chain finance operations will be carried out through the eFactor Network platform, a leading fintech company in working capital financing in Mexico.

This spring, CEMEX is updating its overall brand as it strives to be at the forefront of innovative, sustainable living globally, in both emerging and developed markets. Among the tools that CEMEX says will aid in decarbonizing its supply chain is sustainable aviation fuel (SAF):

• CEMEX to turn CO2 into sustainable aviation fuel - CEMEX continues its path to a net-zero future by joining forces with integrated chemicals and energy company Sasol ecoFT and renewable energy company ENERTRAG in a milestone project that will combine CO2 with hydrogen to produce sustainable aviation fuel. This project is part of CEMEX's Future in Action program to reduce its carbon footprint and contribute to a circular economy and an integral component of CEMEX's master plan to develop a carbon neutral operation at its Rüdersdorf cement plant by 2030.

And, not to mention carbon capture, utilization and storage (CCUS):

• CEMEX awarded grant from U.S. Department of Energy to develop pioneering carbon capture technology - CEMEX announced today that its U.S. operations have been awarded a grant from the United States Department of Energy ("DOE") to research, engineer and develop a pilot for a breakthrough carbon capture unit. The project, anchored to CEMEX's Victorville, California, cement plant, also will contemplate cost-competitive solutions to completely close the loop on current carbon emissions.
  In this initiative led by RTI international, a nonprofit research institute, CEMEX is joining forces with UK-based Carbon Clean and Oak Ridge National Laboratory. The goal of the consortium is to increase efficiencies and value in CEMEX's overall building material fabrication process, while significantly reducing its CO2 footprint through the leverage of technological upgrades.

And the above is just what CEMEX is undertaking. Imagine how one would be able to understand--and stay on top of--what players across multiple industrial sectors are doing in their own ESG and sustainability initiatives. Fortunately, IIR has extensive global ESG and sustainability coverage on what has been, is and will be undertaken, thanks to its unparalleled research, analytics and news. For example, IIR News is reporting on how the International Energy Agency (IEA) sees CCUS as one of the keys to achieving net-zero:

• IEA Sees Cleaner Energy & Carbon Capture Growth Among Keys to 1.5˚ C Climate Scenario - The road to achieving the COP21 ideal of holding human-induced temperature increases to 1.5 degrees Celsius above pre-industrial levels will be paved with electric vehicles (EVs), low-carbon electricity and a thick layer of CCUS, says a new report.
  Issued in April by the IEA, the report is entitled "Credible Pathways to 1.5 Degrees Celsius," with the subtitle "Four pillars for action in the 2020s." Its four pillars are:
  
  • Getting the energy sector to net zero by 2050
  • Reducing deforestation to net zero by 2030
  • Cutting non‐CO2 greenhouse gases (GHGs), especially methane
  • Scaling up the innovation and deployment of carbon management technologies

Industrial Info's recent ESG chemical processing webinar went into some depth & detail on this industry's development and activity. Chemical Processing is just one of 12 industries extensively researched by IIR:

• IIR Chemical Processing Webinar: ESG Plays Key Role in Industry Development and Activity - The global Chemical Processing Industry faces challenges both this year and next in the form of inflationary pressures, the Russia-Ukraine conflict and environmental initiatives driven by stakeholders. Nevertheless, the outlook for planned spending in the Chemical Processing Industry remains strong.
  Industrial Info has seen a 17% uptick in global chemical project spending this year over the same period of 2022. While not all of these projects will move forward as planned, IIR expects about $177 billion worth to break ground this year, an 18% increase over 2022.
  In Industrial Info's recent webinar on the outlook for Chemical Processing Industry, Trey Hamblet, IIR's vice president of research for Chemical Processing and Refining, discussed the spending trends being seen.

As one is aware, ESG, in the context of the ever-evolving energy transition, relies on healthy and growing global economies.



These economies will be required to fund multiple decarbonization initiatives, especially in the hard-to-abate sectors like cement, shipping/maritime, refining and petrochemicals.



And because of its novel Market Analytics Engine (MAE), IIR can provide graphical, analytical intel on project spending across all global regions and call out market trends across several key segments.



Remember how CEMEX is looking to adopt CCUS into its overall operations? Well, IIR is tracking more than US$50 billion of related projects globally, including US$35 billion in the U.S.



However, as it is very important to be able to look ahead, IIR provides MAE future outlooks on spending as well.



As IIR is the leading provider of global market intelligence.



Therefore let IIR Energy's Dedicated Market Research place the world at your fingertips. Tomorrow's News Today. Ask us! We have answers!

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• IIR Team Email: iirteam@iirenergy.com
• Latest IIR Crude & Products Market Scorecard

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).