A group of investors with more than $2trn in assets under management has demanded the European cement industry achieve net zero emissions no later than 2050.
The investors, including BNP Paribas Asset Management and Aberdeen Standard Investments, also called on the sector to report in line with the Task Force on Climate-related Financial Disclosures.
The demands were sent in letters to CRH, LafargeHolcim, HeidelbergCement and Saint-Gobain, along with the steps most applicable to each of the building material companies. Cement is the source of 7% of global man-made CO2 emissions.
Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change, which convened the investors, said that decarbonisation is “business-critical issue“ for the industry and that delay is not an option. “The cement sector needs to get ahead of the profound transformation their sector faces by addressing barriers to decarbonisation in the short to medium-term if companies are to secure their future,“ she added.
The investors called for a governance framework that assigns specific climate change responsibilities to board members, and for cement companies to engage with policymakers to ensure an orderly low-carbon transition.
“These investor expectations highlight good practice, and others in the sector are encouraged to follow their example to avoid the consequences of increased scrutiny from their shareholders,“ said RPMI Railpen manager Jocelyn Brown.
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