Towards a Sustainable Cement Industrywbcsdcement.org/pdf/sdi.pdf · BACKGROUND TO THE PROJECT In...
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BACKGROUND TO THE PROJECT In 1999, three leading members of the cement industry – CIMPOR, Holcim and Lafarge – approached the WBCSD and asked them to organise a structured evalu- ation of the sustainable development issues facing the industry. A further seven producers quickly joined, and together they formed a group which represented every continent and almost one third of the world’s total cement output. The resulting two year initiative – entitled Toward a Sustainable Cement Industry – took the form of thirteen highly focused sub-studies covering a range of issues including; climate change, land use, biodiversity, deter- mination of key sustainable development performance indicators, industrial ecology, environmental perfor- mance and public policy. The Council turned to the Battelle Institute to conduct the study in order to ensure both objec- tivity and transparency. The study further ensured its independence via an external assurance group, chaired by Mostafa Tolba, former Director General of the United Nations Environment Programme. Third party views are crucial in reaching sustainable solutions. With this in mind, worldwide dialogues with key stakeholder groups have been a key component to this project from the outset – in countries as far apart as Brazil, Thailand, Portugal and Egypt. Ongoing consultation was an integral part of the process and meetings held in Brussels and Washington with both government and non-government organisation (NGO) representatives were integral to the process. A final workshop on implementation issues took place in Beijing in December 2001. Since this date details of the study’s progress are available online so that NGOs and other interest groups worldwide can register their views. (www.wbcsdcement.org) Once the findings have been made public, the cement producers will begin preparing their response to the study recommendations. The formal industry reply is due for completion around the middle of 2002, and is expected to consist of both collective and individual company commitments, with clearly defined targets, objec- tives and a reporting framework. SUSTAINABLE DEVELOPMENT AND THE CEMENT INDUSTRY In many countries, the cement industry is powered by state-of-the-art production plants, which require highly sophisticated continuous processes, advanced control technology and energy management systems. With over 1.6 billion tonnes of cement produced each year, quality control and economic, repeatable produc- tion is of paramount importance to cement producers worldwide. However, cement production is also a highly capital and energy-intensive process. The cost of a new plant averages out at some $130 million per million tonnes of cement produced i.e. a long payback period which equates to about three years worth of production revenue at a typical plant. With rotary kilns continually operating at temperatures of over 1,500°C massive fuel requirements are inevitable. Any reduction in overheads – whether through more accurate process control or improved energy efficiency – can quickly have a significant effect on costs, on the CO 2 process-related burden, and ultimately the company’s bottom line. Cement companies are operating in an intensely competitive commercial environment, but at the same time is facing increasingly strong regulatory and stakeholder pressure. In the context of sustainable development the cement industry faces a unique set of issues, which attract attention at both local and international level. A diverse range of stakeholder groups – from environmental organ- isations, local customers, the local community, special interest groups and the company’s own shareholders – are increasingly voicing their concerns about the effects of quarrying and processing on employment, health, job safety, amenity and property values, visual impact, pollution control, CO 2 , NO x and SO x emissions, volatile organic compounds, heavy metals, dust, noise, and so forth. Increasingly stringent environmental legislation now plays a key role in many developed S USTAINABLE D EVELOPMENT I NTERNATIONAL 65 A BSTRACT T he largest independent research study ever undertaken into the long-term sustainability of the global cement industry is now nearing completion. Results of the over $4 million project – conducted on behalf of the World Business Council for Sustainable Development (WBCSD) by the Battelle Memorial Institute in the United States – are due to be released within the next few weeks and are expected to provide the blueprint for sustainable cement production in the 21st century. H OWARD K LEE , World Business Council for Sustainable Development (WBCSD), Geneva, Switzerland Towards a Sustainable Cement Industry
Transcript of Towards a Sustainable Cement Industrywbcsdcement.org/pdf/sdi.pdf · BACKGROUND TO THE PROJECT In...
BACKGROUND TO THE PROJECTIn 1999, three leading members of the cement industry– CIMPOR, Holcim and Lafarge – approached theWBCSD and asked them to organise a structured evalu-ation of the sustainable development issues facing theindustry. A further seven producers quickly joined, andtogether they formed a group which represented everycontinent and almost one third of the world’s totalcement output.
The resulting two year initiative – entitled Toward aSustainable Cement Industry – took the form of thirteenhighly focused sub-studies covering a range of issuesincluding; climate change, land use, biodiversity, deter-mination of key sustainable development performanceindicators, industrial ecology, environmental perfor-mance and public policy. The Council turned to the BattelleInstitute to conduct the study in order to ensure both objec-tivity and transparency. The study further ensured itsindependence via an external assurance group, chairedby Mostafa Tolba, former Director General of the UnitedNations Environment Programme.
Third party views are crucial in reaching sustainablesolutions. With this in mind, worldwide dialogues withkey stakeholder groups have been a key component tothis project from the outset – in countries as far apartas Brazil, Thailand, Portugal and Egypt. Ongoingconsultation was an integral part of the process andmeetings held in Brussels and Washington with bothgovernment and non-government organisation (NGO)representatives were integral to the process. A finalworkshop on implementation issues took place in
Beijing in December 2001. Since this date details of thestudy’s progress are available online so that NGOsand other interest groups worldwide can register theirviews. (www.wbcsdcement.org)
Once the findings have been made public, thecement producers will begin preparing their responseto the study recommendations. The formal industry replyis due for completion around the middle of 2002, andis expected to consist of both collective and individualcompany commitments, with clearly defined targets, objec-tives and a reporting framework.
SUSTA INABLE D EVE LOPMENT AND THE C EMENTINDUSTRYIn many countries, the cement industry is powered bystate-of-the-art production plants, which requirehighly sophisticated continuous processes, advancedcontrol technology and energy management systems.With over 1.6 billion tonnes of cement produced eachyear, quality control and economic, repeatable produc-tion is of paramount importance to cement producersworldwide. However, cement production is also ahighly capital and energy-intensive process. The costof a new plant averages out at some $130 million permillion tonnes of cement produced i.e. a long paybackperiod which equates to about three years worth ofproduction revenue at a typical plant. With rotarykilns continually operating at temperatures of over1,500°C massive fuel requirements are inevitable. Anyreduction in overheads – whether through moreaccurate process control or improved energy efficiency– can quickly have a significant effect on costs, on theCO2 process-related burden, and ultimately thecompany’s bottom line. Cement companies are operatingin an intensely competitive commercial environment,but at the same time is facing increasingly strongregulatory and stakeholder pressure.
In the context of sustainable development thecement industry faces a unique set of issues, which attractattention at both local and international level. A diverserange of stakeholder groups – from environmental organ-isations, local customers, the local community, specialinterest groups and the company’s own shareholders– are increasingly voicing their concerns about the effectsof quarrying and processing on employment, health,job safety, amenity and property values, visual impact,pollution control, CO2, NOx and SOx emissions,volatile organic compounds, heavy metals, dust, noise,and so forth. Increasingly stringent environmentallegislation now plays a key role in many developed
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AB S T R A C T
The largest independent research study everundertaken into the long-term sustainability of theglobal cement industry is now nearing completion.
Results of the over $4 million project – conducted onbehalf of the World Business Council for SustainableDevelopment (WBCSD) by the Battelle Memorial Institutein the United States – are due to be released within thenext few weeks and are expected to provide theblueprint for sustainable cement production in the21st century.
HOWARD KLEE, World Business Council for Sustainable Development (WBCSD), Geneva, Switzerland
Towards a Sustainable Cement Industry
economies. To stay in business cement producerswork with strict emissions standards, energy taxation,targeted levies and raw materials management practices.
Few people would underestimate the size of thechallenge facing the cement industry – but itscurrent work with the WBCSD reflects a growingenthusiasm and commitment to understand andinvest in sustainable development. Howard Klee,programme manager at the WBCSD, believes this isa positive step. “The cement industry may not yet havethe same high profile, with regard to sustainabledevelopment, as other industries. However, the studycurrently being undertaken demonstrates that themajor producers are taking the issue very seriously.We hope that this study will provide the industrywith a comprehensive roadmap towards a sustainablefuture and a number of tools to navigate that roadsuccessfully. No one expects the industry to be ableto immediately implement all the changes andimprovements that are highlighted in Battelle’s study.The world is full of good reports. However, cementmanufacturers are very serious about followingthrough on the study’s conclusions by developingtheir own Agenda for Action to address issues raised.”
THE C EMENT INDUSTRY CO 2 PROTOCOLThe study has already produced a range of practicalmanagement tools that can be used to implementinitiatives that will move companies towards a moresustainable future. One of the first tangible results isa global carbon dioxide inventory protocol which hasbeen independently verified and validated by KPMGand has been significantly endorsed by a number of keyglobal institutions, including; the InternationalFramework Convention on Climate Change, Inter-Governmental Panel on Climate Change and the WorldResources Institute. The participating cement compa-nies believe that they are the first industry group to createsuch a widely applicable protocol. Other tools includea Communication Guidebook for plant managers to help
improve stakeholder engagement, and a SustainableBusiness Decision Framework.
SUSTA INAB I L I TY I S GOOD FOR BUS INESSThe CO2 protocol is a real example of the benefits thatindustry-wide studies undertaken on this scale canprovide. It is however, important to point out that manyof the cement producers concerned had alreadyrealised that by adopting a responsible environmentalapproach, their business improves and that compet-itive advantage is in fact, enhanced by the adoption ofbest practice. Patrick Verhagen, head of industrial ecologyat Swiss cement producer Holcim who co-chairs theproject team, explains: “In many of the emergingnations where we operate, environmental legislation isoften non-existent, or if there is regulation, it is not ascontrolled as in more developed countries. However, byimplementing good practices globally, we benefiteconomically as well as supporting the environmentaland social bottom lines of sustainable development.”Holcim is not alone in realising that better energymanagement, re-use of materials and waste reductionhave a positive impact on their production costs,while also improving final product quality. NoelMorrin, International Environmental Director ofRMC Group, one of the study sponsors, adds furtherweight to the argument. “Maximising the recoveryand use of raw materials is a priority for all manufac-turing industries. Cement producers are no exception.Recent developments in automation technologies haveenabled us to improve the control of productionprocesses dramatically. As an example, in the lasttwenty years, dust emissions from cement makinghave been cut by more than 90 percent”.
SUSTA INAB I L I TY – KEY TO LONG-TERM SUCCESSAND SURV IVALSkeptics – or cynics – may argue that the WBCSDinitiative will simply result in biased findings, which
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Figure 1Cimpor’s cement factory inMozambique
can be used with a suitable PR spin – to the benefitof big cement manufacturers. However, the use of thenot-for-profit Battelle Institute and further assurancemeasures by outside referees highlights the indepen-dence and objectivity of the study and its results. AsNoel Morrin from RMC emphasises “Sustainabilityis not a straightforward issue. The major cementproducers realise that their viability and prospects offuture existence – let alone growth – depend onadopting a responsible approach to the subject.”Integrity and impartiality have been watchwordsthroughout the study – the long-term success andsurvival of the cement industry may ultimately dependon its outcome. “The companies began this programmeabsent any catastrophic event. This approach wasnot forced on any of the participants. If the compa-nies involved weren’t prepared, either to acceptcriticism or take action, they wouldn’t have embarkedon the project in the first place.”
ABOUT THE AUTHORHoward Klee works with the World Business Council for
Sustainable Development in Geneva, Switzerland. He is
Programme Manager for the WBCSD’s Sustainable Cement
project. Prior to joining the Business Council, Dr. Klee
worked with BPAmoco where he served in a number of
executive and business functions, including strategic planning,
business development, environmental affairs, and manufacturing.
Dr. Klee received his undergraduate degree in Chemistry
from Williams College, and his doctorate in Chemical
Engineering from MIT. He has previously served on President
Clinton’s Council on Sustainable Development, and as a
Director for the Foundation for Research on Economics and
the Environment.
IF YOU HAVE ANY ENQUIRIES REGARDING THECONTENT OF THIS ARTICLE, PLEASE CONTACT:Howard Klee
WBCSD
4, Chemin De Conches
Ch-1231 Conches-Geneva
Switzerland
Tel: +41 (22) 839 3124
Fax: +41 (22) 839 3131
E-mail:[email protected]
Web site: www.wbcsd.org
SU S TA I N A B L E DE V E L O P M E N T IN T E R N AT I O N A L 67
Figure 2 Cemex site, Mexico
