Heidelberg Materials Ag · XETR:HEI
Heidelberg Materials — HeidelbergCement — Investor Day (September 2020)
19 slides from Heidelberg Materials's investor day presentation, Sep 16, 2020
Slide 1: 2020 Capital Markets Day: Leading the Way to Carbon Neutrality
2020 Capital Markets Day 16 September 2020 Leading the Way to Carbon Neutrality Jon Morrish Member of the Managing Board
Slide 2: Agenda: five key sustainability messages
1. Strong track record of reducing CO2 emissions 2. Setting new industry leading targets for 2025 and 2030 3. New targets underpinned by a clear roadmap 4. Leveraging our strong local sustainable and low-carbon product portfolio to further drive down emissions 5. Driving critical breakthrough CO2 re
Slide 3: Strong track record of reducing CO2 emissions
OUR SUSTAINABILITY COMMITMENTS 2030 Strong track record of reducing CO2 emissions Specific net emissions kg CO2/t cementitious: CO2 reduction targets are an integral Our achievements so far part of our strategy ‒ By 2019, we had reduced our specific net CO2 target 800 by 22% from our 1990 baseline 6
Slide 4: Industry-leading emission target of <500kg/t by 2030
OUR SUSTAINABILITY COMMITMENTS 2030 Industry-leading emission target of <500kg/t by 2030 Our previous 2030 target will already be met in 2025 New 2030 CO2 target 800 Specific net emissions kg CO2/t cementitious 750 700 650 590 560 600 525 <500 550 500 Our previous 2030 Target (-30% vs 1990) 0 1990 2
Slide 5: Our new CO2 targets are underpinned by a clear roadmap
OUR SUSTAINABILITY COMMITMENTS 2030 Our new CO2 targets are underpinned by a clear roadmap −Each country has a detailed bottom-up carbon roadmap −All measures agreed with local management at plant level −Carbon roadmaps are embedded in management incentive schemes −Carbon roadmaps rolled out globall
Slide 6: Less clinker incorporation and more biomass are key levers for CO2 reduction
OUR SUSTAINABILITY COMMITMENTS 2030 Less clinker incorporation and more biomass are key levers for CO2 reduction 5 levers to meet our 2030 target Product mix Alternative fuels -5% pts +100% Clinker incorporation: AF rate: Biomass rate: 2019 until 2030: 2019 until 2030: 2019 until 2030: 75% to 70% 24
Slide 7: Leveraging our strong local sustainable and low-carbon product portfolio
LOW CARBON CONCRETE PRODUCTS AND SOLUTIONS Leveraging our strong local sustainable and low-carbon product portfolio A short list of some of our sustainable / low carbon products and solutions Products / Solutions Brands Details Low carbon concrete -60% -20% − EcoPlus uses ground slag as secondary ce
Slide 8: Deep dive: Ecocrete
LOW CARBON CONCRETE PRODUCTS AND SOLUTIONS Deep dive: Ecocrete Ecocrete® Up to 70% lower CO2 Product description: Sustainable/ eco-friendly concrete with up to 100% recycled aggregates and low CO2 cement Range of application: Residential, non-residential, floors, foundations Advantages: − Up to 70%1
Slide 9: Deep dive: i.Tech 3D
LOW CARBON CONCRETE PRODUCTS AND SOLUTIONS Deep dive: i.Tech 3D i.Tech 3D Up to 50% lower CO2 Product description: High-tech concrete that can be used for construction solutions by means of 3D printers Range of applications: Buildings, precast elements and urban furniture, columns, facades, stairs A
Slide 10: Carbon emissions regulations are being tightened worldwide
PUBLIC POLICY FRAMEWORK Carbon emissions regulations are being tightened worldwide Emission trading schemes (ETS) currently in force/ planned across HC markets EU ETS Alberta ETS ETS in force Ontario ETS ETS under consideration California ETS (Kazakhstan, Turkey, Guangdong ETS Indonesia, Thailand, C
Slide 11: EU-ETS system acts as a global blueprint
PUBLIC POLICY FRAMEWORK EU-ETS system acts as a global blueprint ETS regulatory framework − The EU-ETS is the blueprint for other cap and Lack of trade emissions trading schemes globally allowances − Free allowance certificates are issued to cement Surplus allowances companies below an emission cap
Slide 12: Actively engaging policy makers to drive change
PUBLIC POLICY FRAMEWORK Actively engaging policy makers to drive change 1 4 Establish a global level playing field by Government funding in the develop- introducing carbon border adjust- ment and implementation phase for ments (starting in EU by 2025 latest) de-carbonization technologies 2 5 Policy
Slide 13: Our goal is to realize carbon neutral concrete by 2050 at the latest
Our goal is to realize carbon neutral concrete by 2050 at the latest.
Slide 14: Carbon neutrality by 2050 requires a variety of localized approaches
LEADING THE WAY TO CARBON NEUTRALITY Carbon neutrality by 2050 requires a variety of localized approaches Our approach to carbon neutrality Circular economy & innovative products − Recycled materials (recycled aggregates, recycled 250 concrete paste as raw material) Conventional 200 − Alternative ce
Slide 15: Circular Economy – many recycled aggregates activities already well established
LEADING THE WAY TO CARBON NEUTRALITY Circular Economy – many recycled aggregates activities already well established Australia USA (CAL) Germany Netherlands Mature, stand- – Recycled aggregates have Business Ancillary Ancillary alone business 50/50 JV become increasingly description activity at HC a
Slide 16: CCU/S – driving innovative projects and technologies with significant potential
LEADING THE WAY TO CARBON NEUTRALITY CCU/S – driving innovative projects and technologies with significant potential TRL 8 TRL 5 TRL 6 Post combustion (Amine) Oxyfuel Direct separation (LEILAC) Early Stage: 4 research projects in Europe Early Stage: Preparatory research work Pilot: LEILAC-1, Belgium
Slide 17: Northern Lights at Norcem Brevik – the first global CCS project in Cement
LEADING THE WAY TO CARBON NEUTRALITY Northern Lights at Norcem Brevik – the first global CCS project in Cement CO2 capture CO2 transport CO2 storage Facts Technology: Amine - Post combustion capture Scope: Capture, liquefaction, pipe transfer, storage on quay Strategic Partners: – Aker Solutions tec
Slide 18: Summary of key messages
1. Strong track record of reducing CO2 emissions 2. Setting new industry leading targets for 2025 and 2030 3. New targets underpinned by a clear roadmap 4. Leveraging our strong local sustainable and low-carbon product portfolio to further drive down emissions 5. Driving critical breakthrough CO2 re
Slide 19: Disclaimer
Disclaimer Unless otherwise indicated, the financial information provided herein has been prepared credit business and, in particular, additional uncertainties arising out of the subprime, under International Financial Reporting Standards (IFRS). financial market and liquidity crises; the outcome of