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building a better future - Cemex

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our approach<br />

CEMEX operates in an energy-intensive industry facing<br />

several environmental challenges. Given this reality, applying<br />

a comprehensive carbon strategy is at once a necessity<br />

and an opportunity for our business. CEMEX has designed its<br />

carbon strategy to help reduce the environmental impacts of<br />

its operations, while creating economic value and driving the<br />

construction industry’s participation in the development of a<br />

low-carbon economy.<br />

The following are the key components of our carbon strategy:<br />

1) Reducing the ecological footprint of our production process<br />

• Replacing traditional fossil fuels with lower-emission<br />

alternatives<br />

• Reducing the clinker content in cement<br />

• Increasing our use of renewable electricity and the energy<br />

efficiency of our operations<br />

2) Aligning our operations and initiatives with international<br />

standards, regulations, and market-based mechanisms for<br />

emissions reduction<br />

challenges ahead:<br />

Reducing the clinker factor in our cement<br />

products is an ongoing effort and a challenge<br />

due to the limited availability of<br />

alternative raw materials (fly ash, slag, and<br />

pozzolan), the high logistics costs related<br />

to their transport, and limited market acceptance<br />

of cement and concrete products<br />

using these clinker substitutes.<br />

We also face the challenge of securing<br />

long-term supply contracts for alternative<br />

fuels and complying with more stringent<br />

environmental permitting processes for our<br />

operations.<br />

• Cement Sustainability Initiative (CSI) within the WBCSD<br />

demonstrates CEMEX’s ongoing commitment to industry<br />

best practices, idea sharing, and transparency. For example,<br />

CEMEX participates in Getting the Numbers Right (GNR),<br />

a sector-wide global information database covering more<br />

than 800 facilities in more than 100 countries. GNR provides<br />

accurate, verified data on the cement industry’s CO2<br />

emissions and energy performance.<br />

• Participation in the Carbon Disclosure Project, a voluntary<br />

initiative that requests annual information on climatechange<br />

performance and risk management.<br />

• Compliance with the mandates of the European Union<br />

Emissions Trading Scheme (EU ETS) prepares CEMEX for<br />

ever-increasing regulatory stringency around emissions and<br />

environmental stewardship, and provides a platform for<br />

CEMEX’s participation in the emissions-trading market.<br />

• Participation in Clean Development Mechanism (CDM) and<br />

other market-driven emissions-reduction programs provides<br />

a cost-effective option to distinguish CEMEX’s GHG reduction<br />

efforts.<br />

• Due to CEMEX’s strong sustainability performance, we were<br />

selected to become part of the new Sustainability Index of<br />

the Mexican Stock Exchange (Bolsa Mexicana de Valores)<br />

along with other high-performing companies.<br />

reducing the ecological footprint<br />

of our production process<br />

Our carbon strategy helps us take a broad view of the impacts<br />

associated with concrete production. To reduce our direct<br />

emissions, we focus on curbing our reliance on carbon-intensive<br />

inputs—such as fossil fuels and clinker—and replacing<br />

them with more sustainable alternatives. This process not only<br />

presents immediate environmental benefits; it also enables<br />

CEMEX to diversify its supply chain as traditional fuels and<br />

feedstocks become scarcer and more costly. In a complementary<br />

effort to reduce our CO2 emissions, we continue to increase<br />

the use of alternative raw materials to reduce the clinker<br />

usage in cement production. In addition, we are able to reduce<br />

our indirect emissions by sourcing clean, renewable energy<br />

wherever possible. Furthermore, we continue to develop and<br />

implement carbon reduction projects such as CDM’s, that allow<br />

for additional optimization of our footprint.<br />

carbon emissions in context<br />

For more than 200 years, advances in human industrial and agricultural<br />

activities have contributed to increased concentrations of greenhouse<br />

gases—namely carbon dioxide—in the Earth’s atmosphere. Today, climate<br />

change and many forms of environmental degradation are understood<br />

to have strong linkages to the burning of coal and fossil fuels, as well as<br />

deforestation. Understanding the environmental challenges we face and<br />

responding with decisive actions are matters of paramount importance<br />

for people and societies everywhere. At CEMEX, these imperatives influence<br />

many aspects of our business operations and strategic planning.<br />

The production of cement is a particularly carbon-intensive process,<br />

requiring high temperature sintering of limestone, clay, and iron oxide to<br />

create clinker—the base material for cement. This heating process takes<br />

place in large rotary kilns that reach temperatures over 1,400˚C (2,500˚F)<br />

to catalyze proper chemical reactions. Both the fuel requirements of<br />

our kilns and these reaction processes, themselves, result in significant<br />

releases of CO2 into the atmosphere. In fact, the cement industry as a<br />

whole represents 5% of all carbon emissions associated with human activity—an<br />

issue that has spurred widespread effort to reduce the carbon<br />

footprint of cement production.<br />

Despite the nature of our manufacturing processes, we do not feel<br />

that our environmental and economic priorities are at odds with one<br />

another. Instead, CEMEX has made ongoing, concerted efforts to reduce<br />

the carbon intensity of its operations and equip customers with tools<br />

to understand the full life-cycle impacts of materials used in their own<br />

construction projects.<br />

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