ZURICH, Sept 19 (Askume) – Holcim’s (HOLN.S) $30 billion New York spin-off of its North American business has faced strong opposition from environmental groups, the major cement maker saidVery little effort is being made to tackle climate change .
Industrial Labs, a US-based non-profit environmental group, said the Swiss-based company failed to invest enough in reducing direct emissions from its factories or reducing material or energy waste.
Holcim on Thursday announced an investment in a US low-carbon cement start-up, the latest move to reduce its environmental impact. It rejected the industrial labs’ claims and said it was committed to sustainable development.
Industrious Labs, part of the Concrete Transformation campaign aimed at reducing the industry’s environmental impact, gave Holcim a grade of D (the second lowest grade) for its sustainability performance.
The spin-off, expected in the first half of 2025, masks rising costs and a failure to adapt to growing demand for clean cement, the company said .
“The market is brutal and will not reward incumbents that are slow to react to customer demand,” Nachi Kanfer, a partner at Industrious Labs, told Askume. Back. Later.
Industrious Labs, which has no stake in Holcim, said it would not provide investment advice, but Kanfer said Holcim would have to invest heavily to outperform rivals or it would be vulnerable to the market shift toward low-carbon cement.
“We are not looking for lower valuations, but rather higher valuations, and Holcim has made a clear and concrete commitment and invested capital to improve sustainability,” Kanfer said.
According to the Global Cement and Concrete Association, the cement industry accounts for about 7% of global carbon dioxide emissions.
Holcim said 90% of the cement it sells in North America comes from low-carbon grades and it is working on three projects in the region to capture more than 5 million tonnes of carbon dioxide per year.
“Holcim is switching to alternative fuels and three plants are already running on almost 100% fossil fuel-free thermal energy,” a Holcim spokesperson said.
