Performance Score
Although Holcim announces an ambition to be carbon neutral by 2050, a large part of the reduction in scope 1 and 2 emissions is based on carbon capture, utilisation and storage (CCUS) technological solutions that require a significant investment (56% of CAPEX from 2023 to 2032). In addition, the scope 3 targets validated to date by the SBTi on a 1.5°C trajectory represent only 8% of scope 3. The company's focus on technological solutions will certainly be part of the solution, but at the same time Holcim could further challenge its business model to maximize its chances of aligning itself with a low-carbon economy
Narrative Score
Overall, Holcim has understood that climate is a deeply material subject and has put in place multiple actions to manage this subject. Unfortunately, Holcim's actions seem to be aimed at minimising costs in order to continue its usual activities. The company did not give itself the opportunity to broaden the scope of its business model redefinition, for example by considering itself a building materials company rather than a cement company. Significant efforts seem to have been made in Holcim's climate plan and the level of transparency is positive. The main strengths of the climate plan are the science-based targets, the high share of the R&D budget dedicated to low-carbon technologies, the company's climate governance, the transparency of the engagement policy and the alignment with the positions in favour of climate protection.
Trend score
Holcim is expected to increase the scale at which its low-carbon solutions are implemented and improve the compatibility of its business model with a low-carbon economy. This lack of redefinition of its business model forces Holcim to rely too much on CCUS for its climate strategy, which is considered an uncredible strategy.
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