This summer saw the release of an interim report from one of the most comprehensive sustainability initiatives ever undertaken by an industry sector. Leading players in the cement industry initiated task forces on six critical issues facing the industry:

• climate protection and CO₂ management
• responsible use of fuels and materials
• employee health and safety
• emissions monitoring and reporting
• local impacts on land and communities
• reporting and communications

BACKGROUND

In 2002, ten leading international cement companies joined forces as the Cement Sustainability Initiative (CSI) to proactively engage in understanding and incorporating sustainability into their operations and business strategies. Their plan of work was published in Our Agenda for Action.

Under the auspices of the World Business Council for Sustainable Development (WBCSD), the Agenda for Action offered challenging recommendations for the industry. In response, the CSI set up task forces and facilitated a series of stakeholder dialogues to address the issues posed by the Agenda for Action.

Research on and assessment of the individual issues was undertaken and managed by task forces comprised of the CSI members. Other parties (project partners) participated in some task forces where their special expertise could best be used. Their initial goal was to assess the current status of the six critical areas in the industry, and to develop common guidelines on actions for improving the status quo.

Dr Mostafa Tolba, president of the International Centre for Environment and Development (ICED) and former director of the United Nations Environment Program (UNEP), commented, “The CSI represents a serious effort by an important industry sector to tackle complex sustainability issues in a practical, results-oriented way. Using a common set of key performance indicators, which address both business and stakeholder concerns, while requiring public reporting of individual company achievements is a major step forward in providing an important level of accountability for a voluntary program.”

CLIMATE PROTECTIONAND CO₂ MANAGEMENT

The cement industry produces about 5% of global man-made CO₂. The CSI Task Force on Climate Protection and CO₂ Management produced a protocol for accounting and reporting CO₂ emissions consistent with the World Resources Institute (WRI) and WBCSD Greenhouse Gas (GHG) Protocol. The CSI protocol establishes a common approach to monitoring and reporting all CO₂ emissions from the cement manufacturing process.

The Task Force reviewed and updated emissions factors for a number of traditional and alternative fuels based on new measurements. They incorporated accounting practices that allow for emission credits and trading to meet the requirements of current and future trading systems. The Task Force worked with the WBCSD Energy and Climate Program, International Emissions Trading Association (IETA) and WRI, as well as consultants engaged by the European Commission to assist in developing the protocol, for use according to the EU Emissions Trading Scheme (ETS).

Progress will be measured by the number of companies using the tools set out in the protocol guidelines, developing climate change mitigation strategies, and reporting annually on company-wide emissions as called for in the protocol.

RESPONSIBLE USE OF FUELS AND MATERIALS

The cement industry can recover and use many industrial byproducts, waste streams, and other materials in cement manufacturing. Some are used as raw materials, some incorporated into the final product, while others provide the fuel needed to convert limestone into clinker. This can allow the reduction of our own and other industries' environmental impacts. Yet the complexity of these operations has left many stakeholders concerned about emissions from cement facilities and the contribution that the industry can make in helping to solve waste problems. There are clear business and environmental benefits to be gained from using byproducts. However, they must only be used in accordance with sound management practices, where they can be used safely, without harm to employees, neighbors, or the environment.

Following extensive stakeholder consultations, the Task Force on Responsible Use of Fuels and Materials developed a set of guidelines intended to lay out a consistent approach to the selection and use of fuels and raw materials. These are built upon the principles of sustainable development, eco-efficiency, and industrial ecology, and integrated into local resource management infrastructures. CSI member companies have agreed to measure and report on alternative energy sources and raw materials used.

EMPLOYEE HEALTH & SAFETY

Early independent research concluded that the health and safety performance of the cement industry as a whole is lagging behind that of other manufacturing sectors. It called upon the industry to share knowledge and good practices so that these can become the industry norm. The Task Force on Employee Health and Safety agreed on industry safety definitions and reporting criteria, the first set of internationally-agreed definitions, thereby enabling consistent reporting. These definitions cover fatalities, lost-time injuries and for direct employees, fatality rates and lost-time injury frequency ratio. These definitions enabled the preparation of a common safety reporting format, and the compilation of a report based on data submitted by 13 CSI companies covering the years 2003 and 2004.

The Task Force prepared a report illustrating the key elements needed for effective health and safety management. Most CSI companies have already implemented such guidelines, but these will need to be disseminated to the wider industry and external stakeholders, and ensure that they are fully followed at all CSI member facilities.

EMISSIONS MONITORING AND REPORTING

The production of cement releases different types of pollutants into the environment, primarily as airborne emissions. Some stakeholders feel that existing emissions regulations are not strong enough. In some developing countries, standards may not have been developed or they may be poorly enforced. Stakeholders want clear information on the nature of the industry's emissions, their impacts, and what steps are being taken to reduce them.

The Task Force on Emissions Monitoring and Reporting agreed on a common protocol. It identified NOx, SOx, and dust as the main polluting emissions in terms of volume. All CSI member companies agreed to monitor these pollutants at the main stacks according to international or national standards accepted by the local authorities. Member companies also agreed to pay increased attention to other, low-volume pollutants such as dioxins, VOCs and trace metals, by establishing the current performance of each cement kiln. The results can help companies decide, for each plant individually, whether and what further measurements or remedial actions are necessary.

Each company will make its specific (per metric ton of product) and total emissions data publicly available and accessible by 2006 to stakeholders using the CSI's agreed reporting format.

LOCAL IMPACTS ON LAND AND COMMUNITIES

The impacts from quarries and cement plants may be positive (including employment for local communities, products, and services) or negative (disturbance to the landscape and biodiversity, noise, and pollutants). The Task Force on Local Impacts on Land and Communities produced draft guidelines for an Environmental and Social Impact Assessment (ESIA) process for the industry to enable companies and communities to address critical issues during each phase of a cement facility's development, from site acquisition through construction, operation, and closure. The ESIAs cover methods and key issues, the legislative framework, the consultation process, the social and environmental baseline, consideration of alternatives, prediction and evaluation of significant social and environmental impacts, mitigation and/or offset measures, and environmental and social management and monitoring plans.

Companies' progress will be checked by measuring the percentage of sites with community engagement plans in place; the percentage of active sites with quarry rehabilitation plans in place; and the number of active sites where biodiversity issues are addressed.

COMMUNICATING

The Reporting and Communications Task Force has been writing up and communicating the work of the other Task Forces. They are responsible for the current progress report. In 2002, the Initiative produced a communications guidebook for cement plant managers to help deal with local stakeholder concerns.

THE FUTURE

A complete progress report in 2007 will report the CSI's progress and identify issues where future actions may be required. Between now and then the seventeen member companies have a full and complex job integrating these commitments, processes, and measurements into their individual organizations. Those companies are now evaluating various assurance processes for the key performance indicators on which to report. These will ensure the credibility of reports as individual companies, while trying to minimize the complexity, time, and costs frequently associated with many verification and certification approaches.

The Agenda for Action is based on a 20-year timeframe, divided into five-year blocks, matching the cement industry business planning cycles, capital spending and a typical public policy timeline. There are other issues that could be addressed by the CSI. But the first priority is to reduce the industry footprint from today's operations. The CSI's Interim Report is the strongest evidence yet of an industry making sustainable change work.

The CSI's Interim Progress Report is available to download from the WBCSD web site at www.wbcsdcement.org

CSI MEMBERS

CEMENT SUSTAINABILITY INITIATIVE MEMBER COMPANIES

Ash Grove Cement (USA)

Cemex (Mexico)

Cementos Molins (Spain)

Cimpor (Portugal)

CRH (Ireland)

Gujarat Ambuja (India)

HeidelbergCement (Germany)

Holcim (Switzerland)

Italcementi (Italy)

Lafarge (France)

Secil (Portugal)

Shree Cement (India)

Siam Cement (Thailand)

Taiheiyo Cement (Japan)

Titan (Greece)

Uniland (Spain)

Votorantim (Brazil)