EDVALDO RABELO – DIRECTOR TÉCNICO VOTORANTIM CEMENTOS Y DELEGADO

CEMENT SUSTAINBILITY INITIATIVE

•Comenzó su carrera profesional en el Grupo Votorantim, el área de

operaciones en Brasil, Canadá y EE.UU.

•Graduado de Ingeniería Química de la UFMG

•MBA de la Universidad de São Paulo y la Universidad de Vanderbilt /

EE.UU

•Curso en General Manegement en la Universidad de Harvard

The Cement Sustainability Initiative (CSI)

Edvaldo Araújo Rabelo (Votorantim – co-chair of CSI)

FICEM XXVIII Technical Congress

Sao Paulo, 5 September 2011

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About the WBCSD

The World Business Council for Sustainable

Development (WBCSD) is a global CEO-led

coalition of some 200 international companies, from

35 countries and 22 sectors, with a shared

commitment to sustainable development.

Collectively, members represent an estimated:

•15 million employees

•7 USD trillion annual revenues

•5 USD trillion market capitalization(Source: Observatoire de la Finance, Geneva, December 2009)

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Cement Sustainability Initiative

23 member companies

One third global cement production

Two thirds outside of China

2002

2006

2011

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From study to action

ActionPlanning Independent Study

1999 - 2002 2002 2002 - 2020

Individual

implementation

Joint projects

Communication

and outreach

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All reports available on the CSI website, www.wbcsdcement.org

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CSI Charter

• All CSI members have

signed the CSI Charter

• It summarizes individual

member actions included in

the Agenda for Action

• Companies joining the CSI

agree to implement these

actions within 4 years of

joining

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CSI Work program

Early WorkIdentifying impacts and minimizing them

CO2, NOx, SOx, micro-pollutant emissions, land use, safety

Defining metrics – key performance indicators

Recent WorkPublic reportingContributing to public policyInternational outreach – India, China, South America

Impacts on biodiversity

Sustainable use of Construction Materials

Future work program

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CSI communications partners

Arab Union for

Cement & Building

Materials

Brazilian Cement Association (SNIC)

Mineral Products Association

Brazilian Cement

Association (ABCP)

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CSI and climate change

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CO2 emissions

• 5+% of manmade CO2 emissions come from cement

production. Cement is on the radar of all policy

makers around the world.

• Mitigation policies will impact cement production.

• Carbon costs will be a major production cost in the

future.

• All models (IEA, CSI, McKinsey, others) identify the

same 4 levers for CO2 Control

• Energy efficiency

• Alternative Fuels

• Clinker substitution

• Carbon capture and storage

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CSI work

Five key elements

• CO2 Protocol – accounting and reporting

• Global CO2 and Energy Database

• Cement Technology Roadmap – with

International Energy Agency (IEA)

• Global Climate Policy Analysis – Sectoral

Approach

• New CDM methodology, based on standardized

baselines (not approved)

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CSI Global CO2 and Energy Database

“Getting the Numbers Right (GNR)”

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What is the GNR database?

• The GNR database is :

– An independently-managed database of

CO2 and energy performance information on

the global cement industry.

– The possibility for all participating companies

and interested stakeholders to get access to

standard web-based reports.

• Reflecting their own performance

• Positioning their performance with regards

to the sector’s average (worldwide or by

region)

• Within strict confidentiality guidelines.

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GNR database – the objective

• The objective of the GNR database is to deliver :

– Uniform (based on the agreed GHG protocol),

accurate and verified data so that

• the industry can understand its own

current and future performance

potential. Key drivers of emissions and

performance are also included.

• policy makers can get access to current

performance data to aid their analysis and

decisions.

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Confidentiality and anti-trust issues

• The database

– complies with anti-trust laws and

– is managed by an independent third party

service provider.

• Individual participants may only see reports

based on their individual company data or

aggregated results.

• Confidential information on individual companies

or plants is not disclosed, nor made accessible,

and is protected by contractual and data security

measures.

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The interests of joining

• Joining the GNR reporting process

– provides access to state-of-the-art data and

analysis of the cement industry’s global and

regional performance,

– allows participants to benchmark their own

performance, track their emissions

inventories, and develop sound, data-based

responses to company and regional climate

management issues.

– Joining is possible directly through CSI (by

becoming a CSI member) of through regional

trade associations (CEMBUREAU, FICEM…)

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GNR coverage

“Getting the Numbers Right” (GNR)

Representative statistical information on the energy and

CO2 performance of clinker and cement production,

worldwide and regionally, to serve the needs of internal

and external stakeholders.

Coverage (2009, latest data available):

• 918 facilities

• 608 million tons clinker

• 789 million tons cement

• 26% of global cement production

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Regional coverage

35%

34%

72%

72%

5%

18%

93%

54%

41%

79%

37%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Africa + ME

Asia ex. China, India, CIS and Japan

Brazil

Central America

China

CIS

Europe

India

Japan Aus NZ

North America

South America ex. Brazil

Regional coverage (2009)

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Levers for CO2 reductions

1. Energy efficiency – small impact; new plants

already highly energy efficient

2. Alternative fuels – co-processing biomass and

waste materials

3. Blending materials – using substitutes for

clinker

4. Carbon Capture and Storage – not yet ready

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Energy consumption per region

India is most efficient region

Driver: high energy prices

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Alternative fuel use (2009)

• 2009:

88% fossil fuel;

9% fossil waste;

3% biomass

• Europe leads on

fossil waste

(>20%); Brazil on

biomass (10%)

• Models assume

25-60%

alternative fuels

by 2050

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Clinker to cement ratio

Average:

• 76%

Blending material:

• Slag

• Fly ash

• Limestone

• Pozzolana

Models assume

ratio 70-73% in

future

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Net CO2 per ton cementitious

• Text

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Summary: Levers for CO2 reduction

Clinker

Substitution

and Alt Fuels

Investment in

Pre-calciner

technology

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Good progress, well documented

1990 2000 2005 2009 % change

Net CO2 / tonne clinker,

kg/tonne

907 863 847 827 -8.8

Net CO2 / tonne

cementitious, kg/tonne

754 712 672 633 -16

Heat Consumption,

MJ/tonne clinker

4266 3763 3686 3586 -16

% Alternative fuel 2.7 6.2 9.4 12.0 +450

Clinker/cement ratio, % 83 82 79 75,6 -9

Electricity Consumption

kWhr/tonne cement

114.7 112.9 111.1 107 -6.7

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CSI – Summary

• Sustainability is important to CSI companies

• Licence to operate & access to resources

• Opportunities as well as risks

• Positive performance by companies

• Reductions in emissions of CO2, dust, NOx, SOx,

• Public reporting and third party verification

• Engagement with stakeholders

• Rehabilitation of quarries

• Companies work actively on today’s challenges

• Fatalities

• Climate change

• Biodiversity and land use management

• Water

• Role of concrete in sustainable construction

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Thank you!

Cement Sustainability Initiative

www.wbcsdcement.org