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Indian Cement Sector

SDG Roadmap
Contents

FOREWORD | 4
Foreword by NITI Aayog 4
Message from the United Nations Industrial Development Organization (UNIDO) 5
Message from the Swiss Agency for Development and Cooperation (SDC) 6
Message from WBCSD 7

EXECUTIVE SUMMARY | 8
Purpose 9
Method and Approach 9
Priority SDGs for the Sector 9

INTRODUCTION | 12
What are the Sustainable Developmental Goals (SDGs)? 12
What do the SDGs mean for business? 12
Why does the Indian cement sector need an SDG Roadmap? 12
What are the next steps for the Roadmap’s implementation? 13
What are the goals? 13
Approach and methodology 14

THE CEMENT SECTOR AND THE SDGs | 16


Sector overview – Introduction 17
Future outlook – Establishing opportunities 20
Method and approach for prioritization of SDGs 22

IMPACT OPPORTUNITIES | 24
Description of the cross-cutting priorities 26
Impact opportunities 27
Energy and climate 28
People and communities 32
Circular economy 36
Natural resources 38

THE ROAD TO 2030 | 39

ACKNOWLEDGEMENTS | 42

Indian Cement Sector SDG Roadmap3


4 Indian Cement Sector SDG Roadmap
Foreword
Message from the The Agenda comprises The cement sector is critical
United Nations Industrial 17 SDGs with 169 associated to progress across a broad
Development Organization targets, converging into one spectrum of SDG targets.
(UNIDO) destination: the journey to the Cement as a product is
future we want. The 17 SDGs indispensable to achieving
The United Nations Industrial
are integrated and ambitious, the ambitious Goals for cities
Development Organization
and hence indivisible. It is the and infrastructure (SDGs 11
(UNIDO) has the global
first time ever that industry and 9). Innovations in cement
mandate to foster and facilitate
has been explicitly included technology, plants and
the transition to inclusive
in the development agenda, value chains are necessary
and sustainable industrial
specifically the achievement to achieving Goals on
development. As such, UNIDO
of inclusive and sustainable water, energy, decent work,
applauds the efforts the Indian
industrialization (SDG9). sustainable consumption and
cement industry is making
This reflects the widespread production, and terrestrial
as it takes the lead on this
recognition that industry is ecosystems (SDGs 6, 7, 8,
cement roadmap to achieve the
indispensable in achieving 12, 13 and 15). In addition,
Sustainable Development Goals
inclusive and sustainable the sector’s business
(SDGs).
economic growth. practices and partnerships
offer an opportunity for
In 2015, the 193 Member States positive contributions in the
Business needs the SDGs, areas of health, education,
of the United Nations universally
as they offer a compelling gender equality and reduced
adopted “Transforming our
growth strategy for individual inequalities (SDGs 3, 4, 5
World: the 2030 Agenda for
businesses, for business and 10). Opportunities for
Sustainable Development.
generally and for the world positive change abound and
The Agenda is an outcome of
economy. The SDGs also the Indian cement industry
an unprecedented consultative
urgently need business has started pursuing them,
process that brought national
because until private particularly regarding low-
governments and millions of
companies seize the market carbon and energy efficiency
citizens worldwide together to
opportunities SDGs create, transitions, and health and
negotiate and adopt ambitious
their abundance won’t safety. The present SDG
goals covering five pillars for
materialize. For India alone, Roadmap presents a deeper
sustainable development:
experts estimate the size of and integrated set of actions
planet, people, prosperity,
the SDG business opportunity to enable cement companies
peace and partnerships.
at USD $1 trillion by 2030 to lead the way in realizing the
in four main sectors: SDGs.
food and agriculture; cities;
energy and materials; but
also health and well-being.

Dr. René Van Berkel


Representative (India)
United Nations Industrial Development Organization

Indian Cement Sector SDG Roadmap5


Message from the Swiss The present report profiles SDC has been supporting the
Agency for Development and the prioritized impact development of low-carbon
Cooperation (SDC) opportunities and related cement for the last several
actions that are necessary years in many countries and
The implementation of the
for the implementation of the India has been the focus of
Sustainable Development Goals
SDGs in the cement sector. major activities. The present
(SDGs) calls for the adoption
The main takeaway is the key work also reflects SDC’s
of an integrated and inclusive
partnerships that would support commitment to creating a
approach to address societal
the translation of sectoral low-carbon built environment.
needs and create shared value.
commitments into action. We believe that the
The role of the private sector
This report showcases the ways India-specific cement sector
in the SDG implementation
in which the cement sector roadmap paves the way for
agenda is widely recognized
supports India’s actions to other sectors and countries
as necessary to achieve
meet the 2030 Agenda. to come forward and develop
transformational impact
similar commitments for SDG
globally. The Swiss Agency for
implementation.
Development and Cooperation
(SDC) strongly supports a
multistakeholder approach to
achieving the SDGs globally. This report showcases
In this context, SDC has been the ways in which
actively engaged in various the cement sector
global thematic areas, including supports India’s
health, migration, water, food
security and climate change.
actions
to meet the 2030
Agenda.

Marylaure Crettaz Corredor


Head of the Swiss Agency for
Development and Cooperation, India

6 Indian Cement Sector SDG Roadmap


Message from WBCSD India has played an important These companies have come
role in the inception of the together once more to develop
The Sustainable Development
SDGs and will also be integral this first country-specific
Goals (SDGs) have the
to realizing them. Because of sectoral roadmap based on
potential to unleash
the size of its population, its the WBCSD’s SDG Sector
innovation, economic growth
stage of development and its Roadmap Guidelines
and development at an
fast-growing economy, there framework. I commend
unprecedented scale. They also
can be no sustainable world the sector’s commitment
represent a significant market
without a sustainable India. to collaborating on this
opportunity for business,
transformative agenda
estimated to be worth at least The Indian cement sector
to address the risks and
USD $12 trillion per year has been working for many
capitalize on the opportunities
by 2030. years to address the various
presented by the SDGs.
sustainability challenges facing
However, the ambitious, It is heartening to note that
the sector. Under the auspices
transformative agenda that the sector has also set key
of the WBCSD Cement
the SDGs represent goes performance indicators to
Sustainability Initiative (CSI)
beyond business as usual. monitor progress against
India program, nine companies
In particular, realizing the goals the prioritized actions.
(ACC, Ambuja Cements,
– and unlocking the business
CRH India, Dalmia Cement WBCSD will continue to
opportunities they represent
(Bharat), HeidelbergCement support the sector as it delivers
– will require a critical mass
India, Orient Cement, Shree on its commitment to the
of companies to pioneer new
Cement, UltraTech Cement 2030 Agenda for sustainable
forms of collaboration.
and Votorantim Cimentos) and development. I wish the sector
This is often most effective
the Cement Manufacturers’ the very best for their journey
at the sector level.
Association of India developed on this path.
WBCSD supports its member the Low-Carbon Technology
companies as they integrate Roadmap for the Indian
the SDGs into their business Cement sector in 2013.
models. Through our SDG This first country roadmap
Sector Roadmap project, we are based on the International
championing the development Energy Agency’s sectoral
of robust SDG roadmaps to technology roadmaps has
guide and inspire entire sectors paved the way for similar
as they seek to optimize their roadmaps in Brazil and
contributions to the SDGs. other countries. These nine
sustainability leaders
represent more than 60%
of the production capacity
in the world’s second largest
cement market.

Filippo Veglio
Managing Director, People
WBCSD

Indian Cement Sector SDG Roadmap7


Executive
summary

8 Indian Cement Sector SDG Roadmap


Purpose • the sector’s SDG interactions Priority SDGs for the sector
across the cement value chain;
The Sustainable Development Goals The Roadmap’s eight impact
(SDGs) are a universal framework that • key areas where the sector can opportunities for the Indian cement
the private sector can use to drive make the most transformative sector contribute to 12 of the 17 SDG
sustainable development, presenting contributions to the SDGs; and goals and deliver on 19 of the 169 SDG
new strategic opportunities for industry. • actions that the sector can take targets.
The SDG framework provides the to maximize its SDG impact. Moving forward, the companies involved
opportunity to renew and integrate The Roadmap’s priority SDGs are based in the development of this Roadmap will
sustainability efforts in order to meet on the impact opportunities identified for establish working groups to advance
national and global aspirations by the cement sector and key interactions the impact pathways identified and
2030. India’s cement sector, the throughout the sector value chain. set up appropriate frameworks to
second largest in the world, will play a track and communicate progress.
crucial role in supporting national SDG The Roadmap’s eight impact The contributors to the Roadmap also
implementation. What’s more, aligning opportunities and related actions that strongly encourage other companies
the sectoral priorities with India’s contribute to the high-priority SDGs throughout the sector value chain to
sustainability priorities is important for for the sector are grouped into adopt the Roadmap and align their
the success of the sector and for the four key themes: activities and strengthen partnerships
country. to accelerate progress on SDG goals.
1. Energy and climate;
The Indian Cement Sector SDG The following table summarizes the
2. People and communities;
Roadmap is the first country-level SDG eight impact opportunities and actions
Roadmap initiative. It is led by nine Indian 3. Circular economy; and identified across the four themes and
cement companies convened by the lists the prioritized SDGs linked to each
4. Natural resources management
World Business Council for Sustainable impact opportunity.
Development (WBCSD).
Cross-cutting priorities that influence
The Roadmap’s purpose is to explore,
impact opportunities include:
articulate and help realize the potential
of the sector to contribute to the 2030 • human rights;
Agenda for Sustainable Development
• low-carbon economy; and
through an integrated approach that
recognizes material sectoral challenges • innovation in processes, products
and opportunities to meet societal and services, and technology.
needs. India’s success is critical to
delivering the SDGs globally. Aligning The impact opportunities are mapped
with the country’s sustainability against three key pathways through
priorities is important for the cement which the cement sector can support
sector’s success. the SDGs:
• Products – to address challenges
Method and approach that currently lack a viable solution;

In the development of this Roadmap, • Processes – to improve the way


the cement sector has implemented the the sector operates;
Photo credit: Dalmia Cement
three-step framework described in the • Partnerships – to leverage collective (Bharat)
WBCSD SDG Sector Roadmaps.1 In doing resources and drive mutual value
so, participating companies and industry propositions.
associations have established a collective
understanding and position on several key
factors, including:

Indian Cement Sector SDG Roadmap9


Impact opportunities and actions

Energy and climate People and communities

Low-carbon transportation and logistics Skills enhancement

• Augment rail, marine and other inland waterway-based • Collaborate with academic institutions to develop advanced
transport technical and vocational courses for youth to meet cement,
• Encourage long-term contracts with railways concrete, construction and allied building material sector
skills gaps
• Increase use of low-carbon fuels for road transport
• Expand and implement cement sector-oriented skills training
• Encourage rail/road transportation to transition to greater
programme and vocational training for youth and adults
use of electric energy/renewable sources
• Link company-specific skills initiatives to state and national
• Scale efforts for gradual transition to bulk transport (e.g.,
skill development initiatives
construction of bulk cement terminals)
• Scale implementation of existing employment-linked training
• Scale efforts to build new plants near waterways or rail
courses (sector agnostic)
networks to reduce and share road transport loads
• Scale efforts to localize and integrate supply chains and
optimize transport routes Enhance diversity and inclusiveness
• Scale use of locally sourced alternative fuels for transport
• Incentivize and build the capacity of suppliers to reduce their • Increase numbers of women in the workforce at entry,
carbon footprint management and board level
• Encourage transportation and logistics providers to define • Increase recruitment of workforce members with a disability
carbon reduction targets • Strengthen policies supporting diversity and inclusion
across workforce
Resilient and sustainable built environment • Scale involvement and access to local vendors and suppliers

• Scale research and development efforts to develop Transport safety


sustainable and resilient building products
• Collaborate with the construction and infrastructure sector
• Develop a safety rating system for drivers (similar to Bureau
to develop climate-resilient infrastructure and provide
of Energy Efficiency (BEE) energy rating system; Ministry
customized solutions and durable and resilient building
of Transport may consider developing a rating system for
materials (cement) through partnerships with architects and
drivers/logistics providers, etc.)
urban planning departments
• Increase dissemination of journey risk management, safe
• Partner with research institutions to develop sustainable and
load and defensive driving training for drivers
innovative products
• Install in-vehicle monitoring system (IVMS) and GPS-based
• Scale sustainable building product portfolios (e.g., roofs,
vehicle tracking system for dedicated fleet
building envelope solutions)
• Extend health and safety measures to market fleet
• Scale health and well-being initiatives for drivers
Energy efficiency and use of clean energy
• Build capacity of transportation and logistics providers
• Increase use of renewable energy in manufacturing units
• Improve thermal and electrical energy efficiency of
manufacturing plants

7.3 9.4 9.5 11.2 11.6 12.2 13.1 13.2 3.6 4.4 5.5 8.5 10.4 11.2 11.6

13.a

10 Indian Cement Sector SDG Roadmap


Impact opportunities and actions

Circular economy Natural resources management

Using waste as resource Natural resource management

• Increase production of blended cements, including • Develop and monitor detailed biodiversity and ecosystem
composite cement, to optimize use of alternative materials management plans for all sites and monitor implementation,
(fly ash/slag/other waste products) including closure and site rehabilitation
• Increase replacement of virgin raw materials with alternative • Enhance employee awareness and capacity building on
raw materials/other substitutes (e.g., construction biodiversity conservation
demolition waste, foundry sand, crushed rock fines, • Increase source water vulnerability assessment studies
refractory bricks, cement kiln dust) (to identify and assess potential risks that may jeopardize
• Scale R&D efforts and innovation to use alternative materials sufficient water availability of desired quality for industrial
• Scale efforts to maximize recycling of construction and facilities)
demolition waste • Scale up rain water harvesting efforts
• Increase sustainable construction practice training and • Increase use of low-grade limestone and in the process
awareness to optimize the use of building materials and reduce dependency on high-grade limestone and extend
other natural resources (e.g., skill building for masons) quarry life
• Increase adoption and use of alternative waste-derived fuels
(e.g., municipal solid waste (MSW), hazardous wastes, waste
tires, others)
• Develop public-private partnership model by working with
local urban bodies on waste segregation and management
of MSW through co-processing in cement kilns

4.4 8.5 9.4 9.5 11.6 12.2 12.4 6.4 6.5 12.2 15.2

12.5

Indian Cement Sector SDG Roadmap11


Introduction
What are the Sustainable Why does the Indian The Indian Cement Sector SDG
Developmental Goals? cement sector need Roadmap is an initiative led by nine Indian
cement companies convened by the
The Sustainable Development Goals an SDG Roadmap? World Business Council for Sustainable
(SDGs) are a collection of 17 Global India is the fastest growing major Development (WBCSD). This group
Goals resulting from a multi-year economy in the world today.2 formed as the Cement Sustainability
multi-stakeholder global consultation The country, which is home to 1.3 billion Initiative (CSI) in India in 2009.
universally adopted by the 193 United people and 8% of the world’s biodiversity, As of 1 January 2019, the CSI program
Nations Member States as part of has the potential to contribute to the moved to the Global Cement and
the 2030 Agenda for Sustainable overall positive impact of and value Concrete Association (GCCA). WBCSD
Development. These 17 Global Goals creation through SDG implementation. continues to lead the work on SDGs
each include specific targets (a total and will collaborate with GCCA on the
of 169) to achieve by 2030. The SDGs The country is committed to high growth topic going forward.
cover environmental, social and rates to lift its people out of poverty
and to the large-scale development of Transitioning to a more sustainable
economic development issues,
infrastructure and housing as it seeks and resilient cement sector requires
including poverty, hunger, health,
to move from an emerging economy an integrated approach that recognizes
education, global warming, gender
to a developed one. Swift development material sectoral issues, challenges
equality, water, sanitation, energy,
is creating opportunities along with and opportunities for improvement
urbanization, and social justice.
social and environmental challenges. to meet societal needs. The SDGs
Achieving the SDGs not only
Rapid urban expansion and migration provide a structured framework to
requires significant efforts by national
to cities have caused housing shortages, further enhance the good work that
governments, but also material
particularly for economically weaker the cement sector has already done
contributions from the private sector,
sections of society. Existing cumulative through the WBCSD’s collaborative
civil society, communities
housing supplies for all three income approach. These companies are leading
and individuals.
groups (low, medium and high) have the way in sustainability by seizing the
been grossly inadequate.3 India’s energy opportunities that collaboration creates.
What do the SDGs mean consumption will triple by 2030 under While the initiative addresses all 17 SDGs
for business? a business as usual scenario.4 in some way, both by the sector and
across the value chain, the development
Governments have universally resolved The Indian cement sector has an active of an SDG Roadmap will help to prioritize
to implement the SDGs. However, they role to play in providing solutions to and coordinate the effort.
will not be able to realize them without these challenges and helping to realize
strong private sector engagement: sustainable growth. India is the second
as an engine of economic growth and largest producer of cement in the world
employment, as a source of investment, and has witnessed high growth recently.
Vision
and as a driver of technology and The Indian cement sector has a track The Indian cement sector aspires
innovation. record of implementing initiatives to to demonstrate leadership by
Aligning with the SDGs presents new drive growth and operational excellence. identifying areas where the sector
The sector recognizes that cement can have the most impact in
strategic opportunities for the sector.
manufacturing and related operations realizing the SDGs by accelerating
The goals provide a framework for the
contribute to climate change. It has innovation, scaling successful
provision of business solutions while
taken proactive measures in India, such stewardship initiatives, and
addressing some of the cement sector’s creating new opportunities for
key needs. Companies that are able as producing a Low Carbon Technology
Roadmap (LCTR) 5 and implementing collaboration.
to deliver inclusive and sustainable
products and services aligned with its recommendations, resulting in lower
these ambitions are likely to be more emissions intensity. For continued Mission
innovative, better at unlocking new success and long-term value creation,
The Indian cement sector is
market opportunities and attracting the sector will need to align its long-term
committed to implementing the
the best talent. sustainability and business strategies
Roadmap, measuring progress
with the SDGs.
with clear KPIs and seeking new
The SDGs provide companies with a new
partnerships to continually evolve
lens to analyze and address operational
and expand the sector’s
and regulatory risks, as well as a tool to
contribution to the SDGs.
secure a strong and enduring license
to operate.

12 Indian Cement Sector SDG Roadmap


What are the next steps What are the goals The forum confirmed the need for
for the Roadmap’s of the Roadmap? a collaborative approach to better
understand how the sector can enhance
implementation? In 2017, 23 cement companies came engagement to scale up solutions for a
The Roadmap’s implementation together through the WBCSD’s CSI sustainable business environment, both
requires a shared understanding by to examine and evaluate the new in India and worldwide. This Roadmap is
all stakeholders of how the SDGs frameworks set by the SDGs for those an initiative to identify the pathways to
can create shared value, enhance areas most critical to the cement and take the sector in this direction.
collaboration with key partners and concrete manufacturing sector. Over The Roadmap will promote:
identify new business opportunities. 100 participants representing cement
• The achievement of direct and indirect
The Indian cement sector has: companies, trade associations, United
sector-related SDGs and their targets;
Nations agencies, non-governmental
1. Prioritized SDG targets; organizations, financial institutions and • Dialogue between organizations,
2. Identified impact opportunity multilateral agencies – from more than sectors and countries through the use
themes and drafted key actions 30 countries – considered opportunities of existing networks and platforms;
for business; and for collective action by CSI members.
• The revitalization of sectoral, cross-
3. Explored potential partnerships sectoral and global partnerships; and
to increase impact. • Monitoring and evaluation of the
The Indian cement sector can use the implementation of the SDGs for
Roadmap as a tool to influence its value the sector.
chain partners to further scale and
accelerate impact.

Photo credit: Ambuja Cements

Indian Cement Sector SDG Roadmap13


Approach and methodology - Mapping of SDGs in a materiality - Short-, medium- and long-
matrix to understand sector term actions to realize impact
We created this Roadmap by applying priorities. opportunities;
the WBCSD SDG Sector Roadmap
Guidelines framework, which provides • Interviews and discussions with - Potential partnerships with
sectors with a step-by-step process to WBCSD CSI members in India to relevant sectors to create
explore, articulate and realize a common understand the key successes of scalable impact;
vision for how the sector can contribute and challenges facing the Indian
- Enablers for the effective
to realizing the SDGs. cement sector and also to
implementation of actions
understand linkages with other
The Roadmap development process (outlined under each impact
sectors.
included: opportunity) to meet the SDGs;
• Interviews and discussions with key
• A literature review of ongoing national - KPIs for actions outlined under
external stakeholders to understand
and sectoral initiatives in the country each impact opportunity, to
the current and potential future
and a review of impact opportunities measure and evaluate progress.
alignment with SDGs throughout
available for the cement sector to the value chain.6 This Roadmap presents impact
contribute to material environmental, opportunities and actions along with
social and economic issues. • Compilation of information, data and
KPIs that the cement sector companies
insights obtained through a literature
• The exploration of interactions are committed to tracking as a
review, interviews, analysis and
between the cement sector value preliminary measure.
workshops with WBCSD CSI member
chain and the SDGs, including:
companies in India and stakeholders. The Indian cement sector will:
- Identification of the sector’s The workshops established:
current level of positive and 1. establish clear ambitions and
negative impact on the goals - The Roadmap’s vision targets based on the impact
and their contributing targets; and purpose; opportunities;

- Assessment of the sector’s - A prioritized list of the significant 2. undertake performance


untapped potential to impact impact opportunities for the review at a later stage.
each goal and the potential for cement sector with respect
accompanying opportunities to the SDGs;
to create business value; and

14 Indian Cement Sector SDG Roadmap


Cement sector interaction with the SDGs throughout the value chain

Procurement of End use,restoration


Production Logistics and support
raw materials and others

• Land and biodiversity • Energy efficiency • Partnerships and support • Sustainable and
• Selection of raw • Alternative fuels, raw for raw materials innovative products and
materials materials • Logistics and product information
• Employee welfare • Employee welfare transportation • Circular economy
• Local communities • Local communities • Reducing GHG emissions • Learning and
• Employee welfare development
• Occupational health • Reducing GHG emissions
and safety and effective management of • Building partnerships • Building partnerships
other environmental impacts to enhance a circular
• Effective management • Local communities economy
of environmental • Occupational health
impacts and safety
• Building partnerships

Photo credit: Ambuja Cements

Indian Cement Sector SDG Roadmap15


The
cement
sector and
the SDGs

16 Indian Cement Sector SDG Roadmap


Sector overview - Introduction
Background Production capacity: Demand and consumption:
Production capacity for the sector is The cement demand is expected to
India is the second largest producer approximately 500 million tonnes. grow by 7-8% in 2019.8 As such, with
of cement in the world. India’s cement The Cement Manufacturers Association the rising demand for cement and the
sector plays a vital role in its economic (CMA) estimates that this will increase development of large infrastructure
growth and provides direct employment to nearly 550 million tonnes by 2020. and construction projects, the CMA
to more than one million people and The top 20 cement companies in India expects the Indian cement sector to
many more indirect jobs across the account for almost 70% of total cement benefit substantially and continue to
country. It employs about 20,000 produced. Some 99% of installed grow fast over the next few years.
people7 downstream for every million capacity lies with the private sector.
tonnes of cement produced.
There are 210 large cement plants in
The Indian government deregulated the India, which account for 500 million 9%
cement sector in 1982 and the sector tonnes of installed capacity, while 350 67%
has since attracted large investments mini-cement plants make up the rest.
from both Indian and foreign investors. 13%
Of the large plants, 77 are located in
The availability of raw materials locally three of India’s 29 states: Andhra
to manufacture cement has also been a Pradesh, Rajasthan and Tamil Nadu.
key factor enabling the sector’s growth. Breakdown
of cement
35%
11% consumption
18%
t in India
s
Ea
So
uth

Regional
Central

13%
contributions
in India
Housing and real estate

or Commercial construction
st
N

th
20% We 14% Infrastructure
Industrial construction

Southern India contributes the The housing and real estate sector
most to installed capacity, with 35%, accounts for approximately 67%
followed by northern India at 20%. of total cement consumption in India.

Investments
With growing demand owing to increased Key investments in the Indian cement • Cement players are opting for inorganic
construction and infrastructure sector include the following: growth or brownfield acquisitions to
activities, the cement sector in India speed up capacity expansion and
• Existing key players are making robust achieve cost efficiency.
has seen substantial investments and
investments in enhancing production
developments in recent years. According
capacity over the next three to four
to data released by the Department of
years;
Industrial Policy and Promotion (DIPP),
cement and gypsum products attracted • Many players are planning to expand
foreign direct investments (FDI) worth and strengthen their presence in India’s
USD $5.26 billion between eastern, southern and western markets;
April 2000 and June 2018.

Indian Cement Sector SDG Roadmap17


Facts and figures • Investments made into CSR • By adopting state-of-the-art
activities in the 2016-17 technological interventions, innovative
• The Indian cement sector accounts financial year amounted to production techniques and climate-
for approximately 8% of global INR 2.2 billion (USD $ 0.03 billion),12 resilient resource optimization
cement production. The CMA or 3.7% of after-tax profits. measures, cement manufacturers
estimates that cement production in Of this total, companies spent in India are gradually integrating
India will reach 1.360 billion tonnes 38% on education and training sustainability principles within their
annually by 2050. and 23% on healthcare and growth aspirations. Some examples
sanitation. The Indian cement sector of how the sector has integrated
• The cement sector is the has implemented several CSR energy efficiency and low-carbon
fifth-largest contributor to initiatives,13 including: transition:
India’s economy, bringing in - Planting nearly 50 million trees; - Indian cement companies top
INR 105.44 billion (USD $1.52 billion) - The sector adds over the Carbon Disclosure Project
in excise taxes in 2015-16. 1,200 hectares of forest (CDP) table owing to the reduced
every year.14 carbon footprint in their cement
production process.15 This is in part
• Cement deliveries are the second - The creation of more than
due to better access to alternative
largest revenue source for Indian 60 water bodies in drought-
materials from other carbon-
Railways, contributing INR 69 billion prone areas for rainwater
intensive sectors. The sector also
(USD $0.99 billion) per annum in harvesting;
benefits from newer and more
freight revenue in fiscal year - The adoption of more than efficient cement plants driven by
2017-18.9 700 neighborhood villages for high market growth in the region.
the provision of basic education,
- The cement sector is a significant
• The Indian cement sector is a primary healthcare, water supply
player in the Bureau of Energy
leading employment provider and clean environment; and
Efficiency’s (BEE) ongoing Perform,
in the manufacturing sector - The establishment of 225 primary Achieve and Trade (PAT) scheme
contributing to 1 million direct and secondary schools and for energy savings and one of the
employment opportunities. The financing of 25 colleges. best performing sectors in energy
sector employs about 20,000 people efficiency. The sector has achieved
downstream for every 1 million the PAT Cycle Reduction target
tonnes of cement produced by about 1.81 times by reducing
and consumed.10 1.48 Mtoe (million tonnes of oil
equivalent) compared to the target
of 0.815 Mtoe. The sector has
• Indian cement companies have
already surpassed the targets of
defined their corporate social
the government’s PAT scheme
responsibility (CSR) policies and
by 80%, making it one of the most
focus areas and are implementing
energy-efficient globally.16
CSR programs focusing on their
operational sites and on a broader - Specific energy consumption
geographic scale. Key themes for achieved by some Indian cement
CSR projects include: plants – at 676 kcal/kg of clinker
and 63.9 kWh/tonne of cement
a) healthcare – sanitation, drinking
– are comparable to those of the
water, HIV/AIDS;
best in the world; the sector’s best
b) education – skill enhancement performing plants consume
initiatives; 19% less energy than the global
c) gender equality and women’s average.
empowerment; - Indian cement companies have
d) environmental protection; and Photo credit: UltraTech identified and implemented
e) rural development and energy-efficiency solutions,
livelihoods. exceeding the anticipated savings
identified in the Low-Carbon
The sector’s contribution to CSR
Technology Roadmap (LCTR)
has often exceeded the mandatory
developed in 2013 by WBCSD and
2% of net profit.11
the International Energy Agency
(IEA).

18 Indian Cement Sector SDG Roadmap


- The Indian cement sector is on - The CMA estimates the waste heat • The Indian cement sector has been
track to meet its 2030 LCTR recovery (WHR) potential of the steadily progressing in using waste
targets. Direct CO2 emission Indian cement sector at 800 MW as a resource through the substitution
intensity fell by 5% in 2017 and the present installed capacity of alternative fuels and raw materials
in the Indian cement sector at approximately 307 MW. (AFRs) over the years. Apart from the
compared to the 2010 baseline. large-scale use of wastes such as fly
The sector reduced its carbon ash and slag in cement manufacturing,
• The Indian cement sector is the largest
dioxide emission intensity, AFRs include the use of different kinds
consumer of fly ash produced by
including onsite captive power of hazardous and non-hazardous
India’s thermal power plants annually.
plant (CPP) power generation, wastes. This reflects the sector’s
It also consumes almost 100% of slag
by 6.8% compared to the 2010 commitment to the Swachh Bharat
produced by India’s steel plants.
baseline. The alternative fuels Abhiyan (Clean India) nationwide
The sector is enhancing resource
thermal substitution rate (TSR) campaign that aims to clean up the
efficiency efforts for blending and the
increased 5-fold from 2010 to streets, roads and infrastructure of
use of alternative fuels, as well as the
2017. The sector consumed India’s cities, towns and rural areas.
implementation of waste heat recovery
more than 1.2 million tonnes The waste management rules give
systems.
of alternative fuels in 2017.17 preferential status to co-processing
The sector is looking at and have allowed many types of
investments of between • Over 95% of manufacturing plants hazardous and non-hazardous wastes
INR 2 trillion (USD $30 billion) and have taken on water stewardship, to be co-processed without the
INR 3.8 trillion (USD $50 billion) transitioning from wet/semi- need for companies to undertake
to achieve the CO2 emission wet production practices to dry co-processing trials. Of particular
reduction target envisaged processes. Almost 99% of installed note:
for 2050.18 capacity in India uses dry process
- The number of cement plants using
manufacturing; companies have
- The sector reduced its direct CO2 AFRs has increased from 12 plants
installed half of this capacity in the
emission intensity by 32 kgCO2 in 2010 to 59 plants in 2016.
last 10 years.
per tonne of cement to 588 kgCO2 - The AFR thermal substitution
per tonne in 2017, mainly due to rate increased from 0.6% in 2010
increased use of alternative fuel to 4% in 2016. This accounts for
and blended cement production, 1.6 MT of alternative fuel use
coupled with a reduction in the in the Indian cement sector.
clinker replacement factor.19 Current AFR substitution levels
save 1.1 million tonnes of coal
per annum, which is 0.5 million
tonnes of oil equivalent.

Picture: Carbon sequestration through algae cultivation


Photo credit: Ambuja Cements

Indian Cement Sector SDG Roadmap19


Future outlook – Establishing opportunities
India’s built environment needs in Government initiatives - Metro rail expansion:
housing, transportation and infrastructure As of March 2019, India has
for 2030 is yet to take shape. The Government of India has established 638.91 km of operational metro lines;
major plans for investments in housing the metro rail projects in Mumbai,
This phase of urban transformation and infrastructure development. Bangalore and Hyderabad are in
represents significant opportunities for The government expects these plans to the expansion phase, aiming to add
domestic and international investments. significantly boost cement demand in approximately 500 km of rail lines
Further, the India Brand Equity Foundation the country and support the growth of by 2021-22.
expects India’s real estate sector to a sustainable Indian cement sector.
contribute 13% to the country’s GDP Some initiatives include the following: - Smart cities mission:
by 2025 and to reach a market size of This initiative by the Government
INR 69 trillion (USD $0.99 trillion) by of India aims to drive economic
• Allocation in budget 2018-19:
2030.20 India’s cement industry will play growth and improve the quality
The Union Budget has allocated
a pivotal role in this future growth path as of life of people by enabling local
USD $92.22 billion for infrastructure
cement is paramount to infrastructure development and harnessing
development in 2018-19 (compared
development, with an estimated cement technology as a means to create
to USD $76.31 billion in 2017-18).
production of 1.36 billion tonnes smart outcomes for citizens.
by 2050 in the country.21 This initiative currently covers
• Affordable housing fund:
100 smart cities.
The outlook for the cement sector is In the 2018-19 budget, the Government
stable and the sector expects overall of India announced the setting up of a - Bharatmala project:
demand to increase. USD $3.86 billion Affordable Housing This is a new umbrella program
Fund under the National Housing Bank for the highway sector focuses
Cement demand in India stems from (NHB) to provide credit to homebuyers. on optimizing freight efficiency
three main sectors: housing and real and passenger movement across
estate, public infrastructure and industrial • Pradhan Mantri Awas Yojana – Gramin the country by bridging critical
development. National initiatives such scheme: The government has proposed infrastructure gaps through
as Housing for All, projects like dedicated the outlay of USD $5.097 billion to build effective interventions such as
freight corridors and ports, metro rail 4.9 million houses under the Pradhan the development of economic
and smart cities, and growth of the Mantri Awas Yojana – Gramin scheme corridors, inter corridors and
industrial sector are the key drivers in the Union Budget 2018-19. feeder routes, national corridor
and opportunities for the cement efficiency improvements, border
sector in India. and international connectivity roads,
• Infrastructure development:
The factors below have informed the The government has a strong focus on coastal and port connectivity roads,
impact opportunities for the Indian infrastructure development to boost and greenfield expressways.
cement sector. The section on impact economic growth, including: The government intends to build
opportunities sets out the related actions. 83,677 km of roads, spending
- Dedicated freight corridors: INR 6.92 trillion over the next
The government expects five years.
Demand for green built infrastructure projects such as
- Expansion/addition of airports:
environment dedicated freight corridors and new
The International Air Transport
and upgraded airports and ports to
An estimated 40% of the country’s Association estimates that the
further drive construction activity.
population will reside in urban areas by Asia-Pacific region will drive the
2030. This would require the addition - Rural road and rail networks:25 largest growth in terms of total new
of 700 to 900 million square meters of The government also plans to passengers, with India taking third
urban (residential and commercial) space extend its rural road network scheme place globally.26 To keep up with
every year.22 The World Economic Forum connecting all eligible habitations rising demand, the Government
estimates that India’s green building under Phase III of Pradhan Mantri of India is planning to increase the
market will double by 2022,23 supported Gram Sadak Yojana (Prime Minister’s budget for the development of
by growing awareness and policy Rural Road Scheme), renovate about new airports and the expansion/
provisions. India’s Nationally Determined 600 railway stations and suburban modernization of existing ones.
Contributions (NDCs) to the Paris Climate railway infrastructure, and renew Airport modernization and
Agreement require a 33-35% decrease in 26,000 km of railway lines. connectivity projects are underway
annual greenhouse gas (GHG) emissions across major cities.
by 2030,24 further emphasizing the need
to green the built environment.

20 Indian Cement Sector SDG Roadmap


Logistics and connectivity
Indian Railways recorded its highest
ever total loading of cement and clinker,
at 114 million tonnes in a year, and
highest ever incremental loading, at
9.26% in 2017-18. The rise in the share
of road transportation has increased
from 36% of total dispatches in the
1980s to over 65% in 2017-18.
A majority of cement plants now have
their own truck fleets and could benefit
from the government’s enhancement
of road infrastructure. Also, the cement
sector is keen to promote the bulk
loading of cement and fly ash for more
efficient handling (bulk wagons carry
40-50% more cement), leading to faster
loading and evacuation, thus improving
turnaround time. This development
fosters faster growth of the Indian
cement sector to address upcoming
market demand while boosting
GDP growth.

Indian Cement Sector SDG Roadmap21


Method and approach for prioritization of SDGs
The Roadmap is the first We undertook six activities:
collective initiative by the Indian 1. Exploration of how the cement sector We completed the activities above at the
cement sector to extensively value chain interacts with each SDG; SDG target level based on participants’
map and prioritize the 17 SDGs knowledge of the sector and third-
2. Identification of the sector’s current
and their 169 targets in the party industry expertise, alongside
level of positive and negative impact published literature. We conducted
context of the sector as a on the SDGs; further discussions with WBCSD CSI
whole. Although the cement
3. Assessment of the sector’s untapped member companies in India, presenting
sector can contribute to all information, data and insights obtained
potential to impact each goal and
17 SDGs, this Roadmap seeks through literature review, interviews and
the potential for accompanying
to go deeper and identify the opportunities to create business discussions with stakeholders and with
SDGs – and the respective value, member companies reviewing a list of
targets thereunder – where the prioritized SDG targets.
4. Mapping of SDGs in a materiality
cement sector has the most matrix to understand sector priorities; We mapped a final list of 19 SDG
potential to drive transformation targets across 12 SDGs against eight
and innovation while having 5. Interviews and discussions with impact opportunities where the sector
WBCSD CSI member companies has the most potential to contribute
a lasting SDG impact. We
in India to understand the key to the SDGs. For each of the impact
completed this prioritization successes and challenges facing opportunities, WBCSD CSI member
exercise collaboratively with the Indian cement sector and also companies agreed on the key indicators
the involvement of participating to understand sustainability inter- that will be used to monitor progress
cement sector companies and linkages with other sectors; and and on the time frame for taking action.
representatives from industry 6. Interviews and discussions with key Below, a prioritized list of sub-targets
associations, WBCSD and external stakeholders to understand and associated SDGs mapped against
external experts. the sector’s current level of alignment finalized impact opportunities.
with SDGs throughout the value chain.

List of SDG targets prioritized for the Cement Sector Roadmap

5.5 6.4 7.3

6.5

• Ensure women’s full and effective • By 2030, substantially increase • By 2030, double the global rate of
participation and equal opportunities water-use efficiency across all improvement in energy efficiency.
for leadership at all levels of sectors and ensure sustainable
decision-making in political, withdrawals and supply of
economic and public life. freshwater to address water
scarcity and substantially reduce 8.5
the number of people suffering
from water scarcity.

• By 2030, implement integrated


water resources management
at all levels, including through • By 2030, achieve full and
transboundary cooperation as productive employment and
appropriate. decent work for all women and
men, including for young people
and persons with disabilities, and
equal pay for work of equal value.

22 Indian Cement Sector SDG Roadmap


List of SDG targets prioritized for the Cement Sector Roadmap

9.4 10.4 12.2 12.5

9.5 12.4

• By 2030, upgrade infrastructure • Adopt policies, especially fiscal, • By 2030, achieve the sustainable
and retrofit industries to make wage and social protection policies, management and efficient use
them sustainable, with increased and progressively achieve greater of natural resources.
resource-use efficiency and equality.
• By 2020, achieve the
greater adoption of clean
environmentally sound
and environmentally sound
management of chemicals and
technologies and industrial
all wastes throughout their life
processes, with all countries taking 11.2
cycle, in accordance with agreed
action in accordance with their
international frameworks, and
respective capabilities.
significantly reduce their release
11.6
• Enhance scientific research, to air, water and soil in order to
upgrade the technological minimize their adverse impacts
capabilities of industrial sectors • By 2030, provide access to on human health and
in all countries, in particular safe, affordable, accessible and the environment.
developing countries, including, by sustainable transport systems for
• By 2030, substantially reduce
2030, encouraging innovation and all, improving road safety, notably
waste generation through
substantially increasing the number by expanding public transport,
prevention, reduction,
of research and development with special attention to the needs
recycling and reuse.
workers per 1 million people and of those in vulnerable situations,
public and private research and women, children, persons with
development spending. disabilities and older persons.
• By 2030, reduce the adverse
per capita environmental impact
of cities, including by paying
special attention to air quality
and municipal and other waste
management.

13.1 13.a 15.2

13.2

• Strengthen resilience and adaptive capacity to climate-related hazards • By 2020, promote the
and natural disasters in all countries. implementation of sustainable
management of all types of
• Integrate climate change measures into national policies, strategies and planning.
forests, halt deforestation,
• Implement the commitment undertaken by developed-country parties to the restore degraded forests
United Nations Framework Convention on Climate Change to a goal of mobilizing and substantially increase
jointly $100 billion annually by 2020 from all sources to address the needs afforestation and reforestation
of developing countries in the context of meaningful mitigation actions and globally.
transparency on implementation and fully operationalize the Green Climate
Fund through its capitalization as soon as possible.

Indian Cement Sector SDG Roadmap23


Impact
opportunities

24 Indian Cement Sector SDG Roadmap


WBCSD CSI member companies in India • Additionality principles, e.g., thinking Based on these screening criteria,
identified 19 targets under 12 SDGs as beyond business-as-usual (BAU) WBCSD CSI members identified four
priority engagement areas for the sector. scenarios in setting targets; themes that are most critical to aligning
They identified these areas with the the sector’s growth and success with
• Sector leadership roles;
understanding that interdependencies India’s sustainable development:
exist across all the SDGs and specific • Possibilities/potential for collaboration
1. energy and climate;
contributions related to one goal and partnerships;
and target can potentially contribute 2. people and communities;
positively or negatively to other goals. • Consideration of possible barriers,
This is something that the sector should enablers and accelerators; and 3. circular economy; and
remain conscious of and alert to moving • Setting of KPIs to allow easy tracking 4. natural resource management.
forward. For the selection of key impact of Roadmap implementation progress
opportunities for the sector, we included and broader business benefits for
the following screening criteria: the companies.

Products Processes Partnerships

Energy People and Circular Natural resouces


and climate communities economy management

Impact opportunities across key SDGs for the sector

• Low-carbon transportation • Skills enhancement • Using waste • Natural resource


and logistics • Enhance diversity and as a resource management
• Resilient and sustainable inclusiveness (water, biodiversity,
built environment • Transport safety limestone)
• Energy efficiency and use
of clean energy

Although the member companies did not identify SDG 17 (Partnerships for the
goals) as a priority goal, the spirit of partnership and collaboration that it embodies
is a recurring theme throughout this Roadmap and indeed is central to the exercise
of undertaking a sector Roadmap itself.

Indian Cement Sector SDG Roadmap25


Description of the cross-cutting priorities
Low-carbon economy Innovation in processes,
The Indian cement Spurred by the Paris Climate Agreement, products and services
sector envisions strong, the transition to a low-carbon economy and technology
is beginning to transform industries
inclusive and sustainable worldwide. The scale of challenges
The sector is continually looking for
growth for the country. posed by climate change will require
opportunities to improve the quality
of its products and reduce its
This Roadmap identifies the sector to adopt holistic thinking
environmental and social impacts.
and embrace systemic change.
multiple high-potential Embracing technological advances
impact opportunities; The Indian cement sector represents and innovations is the way forward in
about 7% of the country’s energy and accelerating operational excellence.
three cross-cutting process CO2 emissions and is the Digitalization is essential to achieving
priorities that companies largest industrial emitter.29 Given this operational efficiency, transparency
must achieve to maximize background and the growing need to and real-time visibility. This trend
safeguard the future, the Indian cement promises across-the-board changes
impact intersect these sector has been taking proactive in various aspects of manufacturing,
opportunities. These measures to carve out a low-carbon ranging from quality control to overall
priorities will be critical pathway for the sector, under the aegis supply chain efficiency.
of the 2013 Low-Carbon Technology
to the sectoral Roadmap (LCTR) for the Indian cement
Some cement companies have begun
to apply digital technologies in their
interventions as sector. Since 2010, WBCSD CSI
operations. Some of the applications that
introduced below. members in India have been acting
they have already implemented or tested
to reduce CO2.
include automated vehicle management,
The sector’s direct CO2 emissions fuel management, centralized monitoring
intensity (kgCO2 /t cement) went down and control of operations, automated
Human rights by 32 kgCO2 /t cement to 588 kgCO2 /t cement packaging, live tracking of
cement in 2017 compared to the 2010 orders, sensor-based technologies,
Ensuring corporate respect for human
baseline year. With this reduction, and drone technology deployment to
rights is the starting point for delivering
the sector has already achieved the avoid overloading of wagons.
the Roadmap. The Indian cement
objectives for 2020 as projected in
sector must follow the United Nations Indian industry is starting to apply
the LCTR. The sector will now be making
Guiding Principles on Business and artificial intelligence (AI), machine
significant efforts to reach the additional
Human Rights27 and the Indian National learning and digitalization, seeing
40% reduction required to meet
Guidelines on Responsible Business benefits in operational efficiency,
the 2050 objectives.
Conduct.28 This will further enhance transparency and real-time visibility.
the integration of social responsibility Aptly designed modern concrete These technologies offer great potential
elements in all future sector actions buildings can use 75% less energy in energy performance, reuse of
throughout their life cycle. The cement materials, protection and restoration of
and will help the sector to maximize
sector has a major role to play in natural resources, and building resilient
its potential to drive positive impacts
providing low-carbon products to the infrastructure. To derive larger benefits
on people throughout the value chain.
construction and infrastructure sector, from these projects, companies must
thus catalyzing sustainable growth also invest in training their staff on the
and reducing greenhouse gas (GHG) above technologies to further improve
emissions across multiple value process efficiency.
chains and across a building’s life cycle.
Further, a host of integrated digital
solutions are available for cement
companies to adopt at a larger scale
in the areas of plant production control,
process control, process optimization,
quality control, laboratory management,
and the installation of smart
instrumentation within operations.
It is essential to counterbalance the
negative impacts on job availability within
and outside the sector that may occur
due to these technological innovations.

26 Indian Cement Sector SDG Roadmap


Impact opportunities
The Indian cement sector can only realize The proposed timelines (short-term The actions take into account known
the impact opportunities identified in this (S), medium-term (M) and long-term (L)) barriers to implementation and
section at the scale necessary to make indicate the timeframe by which the deployment, potential solutions and
a significant contribution to the SDGs actions will begin to show expected ways to accelerate SDG impact. We
through timely, continued and combined outcomes. Short-term actions will have established the agreed actions
efforts. With a view to advancing these typically show results within one to (as presented in each of the impact
impact opportunities and fulfilling three years and long-term actions will opportunities) based on the sector’s
the potential that they represent, this show results by 2030 and will be based understanding of ways to create step-
Roadmap also identifies a series of on the success of reaching medium-term change impact in one or more prioritized
short-, medium- and long-term actions results.30 SDGs. The tables across the following
that constitute “action pathways” to pages highlight the final actions for each
The actions also present KPIs that
deliver each opportunity and to inspire thematic area. Each action links
will help the sector track progress
the sector to pursue tangible progress to the SDGs and targets to which it most
on achieving SDG objectives.
on the SDGs. profoundly contributes. Furthermore,
each action establishes external support
and categorizes such support in terms
of the technical, financial and legal
support that companies may require to
make tangible progress on successfully
achieving identified actions.

Indian Cement Sector SDG Roadmap27


Energy and climate
Transition to low-carbon and sustainable transportation and logistics

The requirement to move both raw In addition, some raw materials, such as of the sector’s GHG impact unless the
materials and finished goods in large cement-grade limestone, are available industry takes action. Therefore, the
volumes drives the cement sector’s in only a few locations in the country, industry is working on solutions to
transport intensive nature. The inward which lengthens transport routes. reduce transport-related emissions and
movement of input materials, particularly Transportation accounts for about expects to make significant progress in
coal, gypsum, slag and limestone and 20% of the retail price of cement. terms of reducing emissions related to
the outward movement of the finished heavy and long-distance haulage.
As the industry decarbonizes its plant
product to consumption centers require Select actions for the transition to low-
operations, transport will continue to
huge transportation volumes. carbon and sustainable transportation
take up an increasing proportion
include the following:

Low-carbon transportation and logistics - Actions

Value chain: Transportation and logistics


Actions Indicators Key partners SDG

Enablers

Timelines
targets
involved

• Augment the rail, marine and other • Percentage increase in rail, -- Indian Railways
-- Transport and logistics providers;
9.5
inland waterway-based transport marine and inland
• Encourage long-term contracts waterway-based transport -- Suppliers and transport associations
with Indian Railways • Percentage reduction -- Ministry of Road Transport P 11.6 M
in Scope 3 emissions and Highways
-- Cement Manufacturers Association
(CMA)
13.2

• Increase use of low-carbon fuels • Percentage of transport operations -- Transport and logistics providers
for road transport transitioning to low-carbon fuels -- Suppliers
-- Transport associations
9.5
• Encourage rail/road transportation • Percentage reduction in
to transition to greater use of Scope 1 emissions (for own fleet) -- Ministry of Road Transport P
electric energy/renewable sources • Percentage reduction in Scope 3 and Highways 11.6 M
emissions (for market fleet) -- CMA T
-- Ministry of Oil & Gas
• Change in Scope 2 emissions 13.a
-- Ministry of Power
(for own fleet)

• Scale up efforts for gradual • Percentage reduction -- CMA


transition to bulk transport (e.g., in Scope 3 emissions -- Transport associations
construction of bulk cement -- Ministry of Road Transport
terminals) and Highways
• Scale efforts to build new plants -- Local municipal authorities and 9.5
near waterways or rail networks to waste management authorities
reduce and share the load of road
-- CMA & Confederation of Indian
Industry – Indian Green Building
P 11.6 L
transport
Council (CII-IGBC)
• Scale efforts to localize and
13.a
integrate supply chains and
optimize transport routes
• Scale use of locally sourced
alternative fuels

• Incentivize and build the capacity • Number of capacity building -- Transport and logistics providers
of suppliers to reduce their carbon programs for transport -- Suppliers
footprint and logistics providers on -- Transport associations 11.6
-- Training institutes
• Encourage transportation and transportation efficiency, carbon M
logistics providers to define footprint reduction 13.a
carbon reduction targets • Percentage reduction
in Scope 3 emissions

Enablers The sector would require policy support for marine and waterway-based transport, biofuels/blending, electric mobility and the use of alternative
fuel (compressed natural gas (CNG)/hybrid/biofuel). Further access to affordable technology to upgrade the existing fleet to consume alternative
fuels cost-effectively and the provision of government financial support to small fleet owners to upgrade their fleet vehicles and in promoting
clean energy would be essential. CMA, IGBC and consumer awareness would play a big role in the shift to bulk transfers.

28 Indian Cement Sector SDG Roadmap


Energy and climate
Resilient and sustainable built environment

The intensifying physical impacts and the intensity and frequency of The country’s investments in new
of climate change pose major risks extreme weather events. In view of infrastructure and smart cities present
to the real estate and infrastructure this emerging megatrend and its tremendous potential to integrate
industry. It is increasingly evident that implications on the built environment, sustainable and resilient features.
climate change has impacted seasonal the development of resilient and
temperature patterns, sea levels, sustainable infrastructure is critical.

Resilient and sustainable built environment (infrastructure and housing) - Actions

Value chain: Cement sector customers (real estate and infrastructure)


Actions Indicators Key partners SDG

Enablers

Timelines
targets
involved

• Scale research and development • Number of products developed -- Construction and real estate
efforts to develop sustainable and and percent net sales from such companies
resilient building products solutions -- Green building associations
• Number of green building/ – CII Green Business Centre (GBC)
P 9.5
infrastructure projects with and IGBC L
-- Global cement associations
features to withstand physical risks
(Europe, UK, others) T 13.1
of climate change (challenges for
-- World Cement and Concrete
cement companies to access to
Association (WCCA)
this data)
-- CMA

• Collaborate with the construction • Number of infrastructure and -- Research and academic institutions
and infrastructure sector housing sector projects executed -- National Council for Cement and
to develop climate-resilient with integrated features for Building Materials (NCBM) P 9.5
infrastructure, provide customized enhanced climate resilience -- Bureau of Indian Standards L
solutions and durable and resilient
-- Investors (mobilizing investment T 13.1
in climate resilient structures)
building materials (cement) -- CMA

• Partner with research institutions • Number of innovative products/ -- Research and academic institutions
to develop sustainable and solutions launched in the market/ -- NCBM
innovative products market share -- Bureau of Indian Standards 9.5
• Percentage reduction -- Investors (mobilizing investment T M
in Scope 3 emissions in climate resilient structures)
13.1
-- CMA

• Scale sustainable building product • Number of innovative products/ -- Research and academic institutions
portfolios (e.g., roofs, building solutions launched in the market/ -- NCBM
envelope solutions) market share -- Bureau of Indian Standards P 9.5
-- Investors (mobilizing investment
• Percentage reduction
in climate resilient structures)
M
in Scope 3 emissions
-- CMA
T 13.1
• Percentage of revenue from
sustainable products

Enablers This would require investments in R&D for the development of sustainable building products and related solutions and to bring them to market.
It would also require policy support to influence demand for these products and to encourage innovative product manufacturing.

Enablers P Policies T Technology F Finance

Timeline L Long-term M Medium-term S Short-term

Indian Cement Sector SDG Roadmap29


Energy and climate
Energy efficiency and use of clean energy

India currently ranks among the top that the average temperature globally It has also played a leadership
energy consumers in the world.31 will increase by 3°C - 6°C by the end of role in reducing carbon emissions
With India’s population and GDP century.32 To relieve pressure on energy through the implementation of the
expected to grow in the future, energy supplies and reduce carbon emissions, Low-Carbon Technology Roadmap,
demand will rise significantly, along with it is essential to move to a more efficient including: the adoption of state-of-
associated GHG emissions. and cleaner energy system. Countries the-art technological interventions;
Fossil fuels are the main source will likely use various mechanisms innovative production techniques; and
of energy generation and as such to drive this transformation. The climate-resilient resource optimization
are a major contributor to GHG Indian cement industry is a significant measures. The sector must maintain
emissions and to climate change. contributor to GHG emissions (almost and enhance efforts to achieve energy
The Intergovernmental Panel on 7% of the country’s emission footprint). efficiency and low-carbon growth on an
Climate Change (IPCC) now projects ongoing basis moving forward.

Energy efficiency and use of clean energy - Actions

Value chain: Operations


Actions Indicators Key partners SDG

Enablers

Timelines
targets
involved

• Increase use of renewable energy • Total installed renewable energy -- Renewable energy technology
in manufacturing units capacity providers
• Percentage increase in renewable P 7.3
energy generation M
• Percentage reduction in T 13.2
Scope 1 and Scope 2 emissions

• Improved thermal and electrical • Specific thermal energy -- Research and development
energy efficiency • Specific electrical energy organizations
-- Industrial bodies 7.3
in manufacturing units
-- Technology providers P M
-- Ministry of Power 13.2

Enablers Policy support will help the sector accelerate the adoption of renewable energy. Currently, cement companies face challenges in terms
of obtaining approvals for group captive or open access in certain states.

30 Indian Cement Sector SDG Roadmap


Indian Cement Sector SDG Roadmap31
People and communities
Skills enhancement

Cement manufacturing has changed technical workers at all levels trained to running these programs. It is also
dramatically in India in the last in the operation and management of indispensable to define the shared
20 years. It is essential to upgrade the modern cement plants. Currently, the objectives of the industry in specific
knowledge and skills of the workforce sector is experiencing a deficit in its markets to avoid duplication of efforts
in order to keep pace with the changes trained workforce, which is causing and increase the impact and coverage
in cement manufacturing technology, an adverse impact on the sector’s of programs. Furthermore, upskilling
machinery and input materials, growth. Collaboration with academia benefits the people as it helps to future-
and to tackle new process-related and institutions to enhance skills and proof their careers and provides them
problems that may arise. Further, the initiatives and policy support from state with enhanced earning opportunities.
sector’s future will demand additional and union governments are essential

Skills enhancement - Actions

Value chain: Cement manufacturing and entire value chain


Actions Indicators Key partners SDG

Enablers

Timelines
targets
involved

• Collaborate with academic • Number of new advanced technical -- National Council for Cement and
institutions to develop advanced courses developed for the sector Building Materials (NCB)
technical and vocational courses (Note: Courses that address the -- Engineering colleges/universities
for youth in order to bridge the upcoming sustainability challenges 4.4
present gap that exists in sector- for the sector, such as technology S
specific skills required for the for the development of sustainable 8.5
cement, concrete, construction products)
and allied building materials
sector

• Expand and implement cement • Number of workshops, seminars -- National Council for Cement and
sector-oriented skills training conducted on cement sector- Building Materials (NCB)
program and vocational training specific technical and vocational -- Engineering colleges/universities 4.4
for youth and adults needs -- State- and national-level skills S
• Number of graduate engineers institutes
8.5
covered by technical and
sector-oriented training

• Link company-specific skills • Number of candidates covered -- State- and national-level skills
initiatives to state and national by employment-linked training institutes
skill development initiatives courses -- National Skill Development 4.4
• Scale up implementation of Corporation (NSDC) S
existing employment-linked -- Skill and Entrepreneurship 8.5
training courses (sector agnostic) Development Institute (SEDI)

32 Indian Cement Sector SDG Roadmap


People and communities
Enhance diversity and inclusiveness

Companies that embrace diversity and Companies are increasingly seeing This not only includes workforce
inclusion in all aspects of their business inclusion and diversity as key enablers diversity but also diversity within
outperform their peers.33 There is for growth and a competitive advantage. the supplier base. High-performing
significant correlation between a Globally, leading companies have organizations implement diversity
diversified team, higher profitability and recognized the importance of creating policies that help instill inclusion,
financial outperformance. environments encouraging a variety of respect and appreciation across the
different voices. entire workforce.

Enhance diversity and inclusiveness - Actions

Value chain: Cement manufacturing & entire


Actions Indicators Key partners SDG

Enablers

Timelines
targets
involved

• Increase number of women in the • Percentage increase in women -- Local communities and NGOs
workforce at entry, management employees -- Suppliers and contractors 4.4
and board levels • Percentage increase in recruitment -- Academic institutions
• Increase recruitment of workforce of employees with disabilities -- National Skill Development Centre
(NSDC)
P 5.5
with a disability
-- Ability Foundation (national cross S
disability organization) or other 8.5
NGOs working in similar areas
10.4

• Strengthen policies supporting • Workforce diversity -- Local communities and NGOs


diversity and inclusion across the -- Suppliers and contractors 4.4
workforce -- Academic institutions
-- National Skill Development Centre 5.5
(NSDC)
-- Ability Foundation (national cross
S
disability organization) or other 8.5
NGOs working in similar areas
10.4

• Scale involvement and access to • Percentage of new vendors that -- Local vendors and suppliers
local vendors and suppliers are local -- Local communities and NGOs 4.4
• Number of local vendors/suppliers
on board annually 5.5
• Percentage of procurement budget S
spent on local suppliers
8.5

10.4

Enablers Policy support could help encourage and build the capabilities of local suppliers.

Indian Cement Sector SDG Roadmap33


People and communities
Transport safety

Transportation networks connect Reported road related fatalities for Over the years, the cement sector
business supply chains spread over 2018 are 150,785.34 Some of the factors has witnessed growth in production
diverse geographies. Well-functioning, contributing to road accidents include and a corresponding rise in road
efficient and safe transport networks inadequate law enforcement, transportation share,35 thus further
are a prerequisite for trade, economic a surge in the number of trucks and cars emphasizing the need to strengthen
growth and development, and enhanced on the roads, and a flood of untrained road safety programs implemented
quality of life. drivers. by companies in the sector.

Transport safety - Actions

Value chain: Transportation and logistics


Actions Indicators Key partners SDG

Enablers

Timelines
targets
involved

• Develop a safety rating system • Number of drivers receiving -- Transport and logistics providers
for drivers (similar to Bureau proficiency training -- Training institutes
of Energy Efficiency (BEE) • Percentage reduction in accidents/ -- Suppliers 3.6
energy rating system; Ministry incidents --
--
Transport associations
Ministry of Transport
S
of Transport may consider
11.2
developing a rating system for
drivers/logistics providers, etc.)

• Increase dissemination of journey • Number of drivers covered -- Transport and logistics providers
risk management, safe load and • Number of refresher courses -- Training institutes 3.6
defensive driving training for provided -- Suppliers S
drivers • Percentage reduction in accidents/ -- Transport associations
11.2
incidents

• Install in-vehicle monitoring • Number/percentage of fleet -- Technology providers


system (IVMS) for dedicated fleet with installed IVMS/GPS (global -- Transport and logistics providers 3.6
positioning system) P S
11.2

• Install GPS-based vehicle tracking • Number/percentage of fleet with -- Technology providers


-- Transport and logistics providers
3.6
system for dedicated fleet installed IVMS/GPS
S
11.2

• Extend health and safety • Number of contractors enrolled -- Transport and logistics providers
measures to market fleet to implement health and safety -- Training institutes 3.6
measures (transfer of liability -- Suppliers S
clauses included as part of -- Transport associations
11.2
contract agreement, etc.)

• Scale health and well-being • Percentage decrease in -- Transport and logistics providers
initiatives for drivers absenteeism -- Training institutes 3.6
• Increase in job satisfaction -- Suppliers S
-- Transport associations 11.2

• Build capacity of transportation • Percentage reduction in accidents/ -- Transport and logistics providers
and logistics providers incidents -- Training institutes
• Number of workshops/seminars -- Suppliers
(on road safety, driver competency -- Transport associations
and training needs) conducted 3.6
for transportation and logistics S
providers 11.2
• Percentage of sector (transport/
logistics) workforce trained on
defensive driving techniques

Enablers Policy support could encourage or mandate installation of vehicle monitoring, global positioning systems for commercial fleets.

34 Indian Cement Sector SDG Roadmap


Indian Cement Sector SDG Roadmap35
Circular economy

A circular economy is linked to the Millions of tonnes of hazardous and The majority of the limestone deposits
promotion of resource efficiency, non-hazardous solid waste and a lack available in the country are of marginal
taking into account the full life cycle of adequate infrastructure to deal with grade. Many of the deposits that have
of the cement sector, from initial it in an ecologically sustainable manner come up or are likely to come up for
planning and manufacturing of cement are affecting the country’s ecosystem. auction have high silica, low to
and construction products to final Improperly managed landfills, land sub-optimal calcium oxide (CaO) grades
demolition. As an integral part, it availability to construct new landfills, and high magnesium oxide (MgO)
includes a well-organized, optimal and the release of toxic gases from landfills, content as well. Cement companies
efficient system for the collection, fire incidents, illegal waste dumping, cannot use this type of deposit in the
characterization, reduction, reuse and odor issues and health impacts on cement manufacturing process without
recycling of wastes to the greatest local communities are a few examples blending it with high-grade limestone.
extent possible, followed by the recovery of waste management problems the The sector must make greater use
of energy and other resources before country is facing. of waste materials and by-products
ultimately disposing of the absolutely from other industries as valuable raw
Cement demand in India will continue
non-reusable components. Improving materials and fuels. The co-processing
to grow. On the other hand, the natural
resource efficiency throughout the of different types of wastes in cement
resources used as raw materials and
infrastructure and buildings life cycle kilns as alternative raw materials and
fuel by the cement sector are depleting
will also support the sector’s efforts fuels is one of the ways through which
quickly and acquiring new reserves is
to reduce the environmental impacts companies can mitigate to a large extent
becoming more difficult. This includes
associated with the built environment. the waste management challenge the
limited availability of the required grade
country is facing.
of limestone.

36 Indian Cement Sector SDG Roadmap


Using waste as a resource - Actions

Value chain: Operations and end of life


Actions Indicators Key partners SDG

Enablers

Timelines
targets
involved

• Increase adoption and use of alternative • Percentage increase in use -- Pollution control boards
waste derived fuels (e.g., municipal solid waste of waste derived fuels -- Local urban bodies/
(MSW), hazardous wastes, waste tires, others) municipal corporations P 12.2
• Develop public-private partnership model
by working with local urban bodies on waste T 12.4 M
segregation and management of MSW
through co-processing in cement kilns
F 12.5

• Increase replacement of virgin raw materials • Percentage of blended cement -- Research and academic
with alternative raw materials/other in total cement production institutions
9.4
substitutes (e.g., construction demolition • Percentage of composite -- Technology providers
waste, foundry sand, crushed rock fines, cement in total cement -- Sectors providing
refractory bricks, cement kiln dust) production alternative materials- 9.5
• Increase production of blended cements, • Percentage/volume reduction steel, power, other P M
-- Cement manufacturers
including composite cement to optimize use in use of virgin raw materials 12.2
-- Ministry of
of alternative materials (fly ash/slag/other • Percentage/volume increase in
Infrastructure
waste products) use of alternative raw materials 12.4
• Scale R&D efforts and innovation to use
of alternative materials

• Increase training on and awareness of • Number of masons covered by -- Construction Skill


sustainable construction practices to training and awareness initiatives Development Council
optimize the use of building materials and • Number of technical service of India 4.4
other natural resources (e.g., skill building engineers appointed in each market M
• for masons) • Sites visited by technical service 8.5
engineers to train and educate the
construction agency and the builder

• Scale efforts to maximize recycling • Percent increase in recovery -- Ready-mix


of construction and demolition waste and percent increase in reuse of manufacturers P 12.4
construction and demolition waste and aggregate S
manufacturers
T 12.5

Enablers Policy changes can have significant impact on achieving scalable success on the impact opportunities presented above. Key areas are
availability of waste materials, their pricing, and the safe handling of recycled concrete at the end of its useful life. Further access to the right
technology and financial incentives to encourage and promote the use of alternative fuels and raw materials will also play a big role. State and
central policy on the responsible disposal of concrete and other construction and demolition waste in coordination with the cement sector can
promote resource recovery from waste material.

Indian Cement Sector SDG Roadmap37


Natural resources
Water
Usable water is essential for drinking, Currently 600 million Indians face The sector must assess its water risk
health and sanitation, energy, food and high-to-extreme water stress, with (physical and non-physical) exposure
other goods and services. Competing 21 major cities expected to run out of in order to implement sound water
demands for water continue to rise groundwater as soon as 2020, affecting stewardship strategies. This includes
(from agriculture, households, energy around 100 million people. NITI Aayog addressing risk at the watershed level.
generation, industrial use, ecosystems, projects that by 2030, the country’s
etc.) and the effects of climate change are water demand will be twice the available
exacerbating the challenges associated supply,36 implying severe water scarcity
with water quality and availability. for hundreds of millions of people.

Biodiversity
Natural resources (land, water, address climate change, and protect The sector is currently facing a shortage
biodiversity and genetic resources, water quality and other natural of skilled technical resources in niche
biomass resources and forests) provide resources. fields such as biodiversity management.
the foundations for human survival,
Careful biodiversity impact management The sector must be increasingly mindful
progress and prosperity, and they have
at sites is a material issue and a of its impacts on biodiversity and how it
been degrading fast. Biodiversity is
fundamental requirement for the can address these impacts to maintain
crucial for the country’s ecosystems
sustainable operation of the cement and enhance ecosystems.
to maintain balance, combat pollution,
sector.

Natural resource management - Actions

Value chain: Operations and end of life


Actions Indicators Key partners SDG

Enablers

Timelines
targets
involved

• Develop detailed biodiversity • Percent of sites with quarry rehabilitation plans -- International Union
and ecosystem management in place for Conservation of
plans for all sites and monitor • Percent of decommissioned sites rehabilitated Nature (IUCN)
implementation, including • Number of active sites where biodiversity issues -- India Business
and Biodiversity
closure and site rehabilitation are addressed as per international best practices
Initiative (IBBI) of the P 15.2 S
• Enhance employee biodiversity • Number of workshops conducted for biodiversity
Confederation of
conservation awareness management
Indian Industry (CII)
and capacity building • Number of sites for which baseline biodiversity
-- Local NGOs, GIZ
surveys are conducted
-- Academic institutions

• Increase source water • Number of sites covered for hydrological -- Central Ground Water
vulnerability assessment modelling/water vulnerability assessments Board
studies • Raw water savings achieved -- State/central
• Percentage of sites that have implemented governments
• Scale up rain water
rain water harvesting measures -- CSR trusts for other
harvesting efforts 6.4
• Water risk assessment and reporting in companies/sectors
sustainability/annual report
-- Local NGOs P S
• Targets for reductions in freshwater 6.5
consumption and increases in rainwater
harvesting/ground water recharge
• Percentage of products that use less water
in construction

• Increase use of low-grade • Amount of low-grade limestone used -- Research and 12.2
limestone and in the process • Increased mine life development
reduce dependency on high- organizations P
grade limestone and extend -- Industrial bodies 12.4 L
quarry life -- Ministry of Mining T
12.5

Enablers To achieve scalable success on the impact opportunities presented above, the sector requires enabling policies for state governments to partner with
companies on water and biodiversity management programs, as well as policy support on the use of low-grade limestone and incentives for companies
that contribute to extending the lifespans of quarries. Policy support for the development of educational programs to augment the availability of skilled
resources for biodiversity management aspects are required to maximize the positive impact of biodiversity management programs.

38 Indian Cement Sector SDG Roadmap


The road to 2030
The cement sector makes a critical • Develop a baseline to capture the The WBCSD transferred the work that its
contribution to India’s sustainable status of existing initiatives linked with Cement Sustainability Initiative carried
development. This Roadmap reflects the impact opportunities and to define out to the GCCA on 1 January 2019.
the broader actions – supported with targets for improvement accordingly; The two organizations have set up a
key performance indicators – that will strategic partnership to facilitate the
• Develop targeted working groups to
guide the sector to achieve its strategic sustainable development of the cement
advance the different action points
priorities, mission and vision while and concrete sectors and their value
identified in the Roadmap, convening
contributing to achieving the SDGs. chains. The new partnership aims to
the most relevant expertise to deliver
create synergies between work programs
The Roadmap presents the progress; and
to benefit both organizations and their
interconnected nature of the sector’s
• Establish appropriate mechanisms respective member companies.
activities and the common goals on
and frameworks to regularly report
which the sector is and will be working.
on progress against the Roadmap
The articulation of the key impact
and to keep stakeholders updated. India is a positive reflection of this
opportunities and actions highlighted
partnership, with the work of the WBCSD
in this report is the first step on the road
to continued SDG engagement. Strategic partnership Cement Sustainability Initiative in India
transforming into GCCA India. WBCSD
Moving forward, leading cement sector between the Global Cement has been pleased to foster and support
representatives will look to advance its and Concrete Association the CSI in India, which has a track record
implementation. This will include ongoing (GCCA) and WBCSD to be proud of, and is committed to
efforts to: ensuring the program’s smooth transition
Nine major cement companies, including and a successful future for the GCCA in
• Develop strategic partnerships within several WBCSD CSI members, formed India. The GCCA India will take forward
and outside the sector by leveraging the Global Cement and Concrete the actions from this Roadmap.
this Roadmap; Association (GCCA) in January 2018.
• Deepen engagement with companies The GCCA works on cement and
involved in this report on the impact concrete sector sustainability issues.
opportunities and to create forums
to share knowledge;

Photo credit: UltraTech

Indian Cement Sector SDG Roadmap39


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40 Indian Cement Sector SDG Roadmap


Indian Cement Sector SDG Roadmap41
Acknowledgments
We would like to thank the following Coordination: About the World Business Council for
organizations for their support in Sustainable Development (WBCSD):
WBCSD:
the development of this Roadmap:
Esha Sar, Joe Phelan, James Gomme WBCSD is a global, CEO-led organization
• Swiss Agency for Development of over 200 leading businesses working
ERM:
and Cooperation (SDC) – for their together to accelerate the transition to
Neena Singh, Swaroop Banerjee, Sai
partnership and partial funding a sustainable world. We help make our
Pranit, Shubha Shanbhag, Bryan Hartlin,
of this project. member companies more successful
Linden Edgell
and sustainable by focusing on
• Cement Manufacturers Association
the maximum positive impact for
(CMA) – Communication Partner
Special thanks to the representatives shareholders, the environment
for the project.
from stakeholder organizations who and societies.
• The nine members of WBCSD’s provided their feedback during the
Our member companies come from
Cement Sustainability Initiative (CSI) development of the Roadmap: NITI
all business sectors and all major
in India program (now members of Aayog, United Nations Industrial
economies, representing a combined
the GCCA) – ACC Limited, Ambuja Development Organization (UNIDO), CII-
revenue of more than USD $8.5 trillion
Cements Limited, CRH India ITC Centre of Excellence for Sustainable
and 19 million employees. Our global
Management Services Private Limited, Development (CII-ITC CESD), CII Green
network of almost 70 national business
Dalmia Cement (Bharat) Limited, Business Centre (CII-GBC), National
councils gives our members unparalleled
HeidelbergCement India Limited, Council for Cement & Building Materials
reach across the globe. WBCSD is
Orient Cement Limited, Shree Cement (NCB), Indian Institute of Technology,
uniquely positioned to work with member
Limited, UltraTech Cement Limited Delhi (IITD), International Finance
companies along and across value chains
and Votorantim Cimentos. Corporation (IFC).
to deliver impactful business solutions
We would like to thank the following For more information on this document, to the most challenging sustainability
people for their valuable contributions contact: issues.
and leading roles in the development
Esha Sar, Together, we are the leading voice of
of this Roadmap.
WBCSD business for sustainability: united by our
sar@wbcsd.org vision of a world where more than 9 billion
Contributors: people are all living well and within the
• Co-chairs of the Steering Committee: Disclaimer: boundaries of our planet, by 2050.

Ambuja Cements Limited: This report is released in the name of www.wbcsd.org


Sandeep Shrivastava WBCSD. Like other reports, it is the result Follow us on Twitter
of collaborative efforts by members https://twitter.com/wbcsd
Dalmia Cement (Bharat) Limited: of the secretariat and executives from
Ashwani Pahuja, Sanjay Jain and LinkedIn
member companies. Drafts were https://www.linkedin.com/company/
UltraTech Cement Limited: reviewed by a wide range of members, wbcsd/
Surya Valluri, Vishal Bhavsar ensuring that the document broadly
represents the majority view of WBCSD
• All Steering Committee members. Credits
members. It does not mean, however,
that every member company agrees Copyright © WBCSD June 2019
with every word.

An initiative of: Supported by: Communication partner:

Led by:

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Light Blue: Pantone 646

42 Indian Cement Sector SDG Roadmap


Indian Cement Sector SDG Roadmap43
World Business Council
for Sustainable Development
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Chemin Eugène-Rigot 2B
CP 2075, 1211 Geneva 1
Switzerland
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