At a time when climate action has been gaining impetus across the globe, there has been an increasing amount of pressure on energy-intensive industries such as cement to innovate their way towards building a resilient, environment-conscious value chain for building a sustainable world. This week, we are in conversation with Mr. Neeraj Akhoury, CEO & Managing Director of Ambuja Cements, to understand how they are evolving within the Indian construction sector through sustainability to address some of the global challenges faced thus far by the industry at large.
Mr. Neeraj Akhoury
Carbon footprint majorly matters when we speak of cement manufacturing. What potential does the Indian cement industry hold when it comes to reducing its carbon footprint to tackle Climate Change?
Mr. Akhoury: Despite multiple challenges, the scope for creating a more sustainable construction sector remains immense and the use of environment-friendly materials is an integral part of this effort.
In India, Ambuja Cements Limited and ACC Limited have taken the lead in promoting innovation and sustainable practices. We have consistently remained committed to making a difference in the areas of carbon footprint reduction, circular economy, and protection of natural resources. As a responsible organization, our vision is to “be the global leader in innovative and sustainable building solutions” and we believe in building progress for people and the planet.
In line with our purpose, our sustainability framework is very comprehensive and integrates green products and solutions with the circular economy, the built environment, digitalisation, and the capture and utilisation of carbon. To achieve this, we are:
- Setting ourselves ambitious 2030 climate targets that are validated by the Science-Based Targets initiative (SBTi)
- Accelerating our reduction in CO2 intensity to exceed 20% (compared to our 2018 baseline)
- Partnering with SBTi looking beyond 2030, to support the development of the first climate targets for a 1.5°C future in the cement sector.
Both Ambuja Cements and ACC have built their sustainable development ambitions on global standards and aligned with Holcim’s sustainability strategy. Both these organizations have taken several CO2 reduction measures such as clinker factor reduction, thermal substitution rate, thermal & electrical energy efficiency, renewable energy, and adoption of new technologies.
The Waste Heat Recovery System (WHRS) being installed across six sites will aid in reducing 5.61 lakh tons of CO2 emissions each year. Cumulatively, this will further reduce carbon emission intensity to help Holcim’s sector-leading 2030 targets.
Sustainability is well embedded in all facets of the business and our supply chain starting from our customers to our production facilities and suppliers. The adoption of these key levers to accelerate decarbonisation will not only strengthen our focus on contributing to economic and social development but will also enable us in protecting the environment.
ACC as an LHIC company has been a forerunner within the cement industry to tackle climate change in reducing its carbon footprint in India. What are the three key drivers that have helped ACC to achieve this over the last three decades?
Mr. Akhoury: Holcim India entities, Ambuja Cements, and ACC have taken the lead in promoting innovation and sustainable practices. Some of our efforts include:
- Low carbon solutions: Launch of global concrete range ECOPact by ACC in India. We are also looking at bringing Green Cement range ECOPLANET to India
- Promoting Circular Economy initiative – Bubble Barrier Technology: This pilot project of Holcim and Geocycle India is being implemented in Agra and endeavours to clean plastics in the Yamuna River. In the coming days, it will be implemented in other cities across the country.
- Driving Digitalization: Focus on digitalization and technology to increase plant efficiency through initiatives like Plants of Tomorrow and Transport Analytics Centre (TAC).
- Ambuja Cements has pioneered the usage of biodiesel in sea transportation in India.
- Green Building Centres initiative by ACC: ACC is generating self-employment through its 100 Green Building Centres across India. This is also encouraging entrepreneurial effort.
As always, sustainability remains at the heart of our business strategy and as a responsible corporate, we aspire to be a leader and set new standards in sustainable construction. We want to transform the way our industry works and encourage the whole construction sector to play its part in addressing our planet’s biggest issues.
There has been a rising interest globally to develop alternate clinker-free cement however, there hasn’t been much development in that area? Where do ACC and Ambuja Cements stand when it comes to producing green cement or novel cement that could sequester carbon?
Mr. Akhoury: Carbon emissions will remain a key challenge for the Indian cement industry and it is essential that both the industry and our consumers have an awareness and understanding of the dynamics of sustainability. Presently, there is a huge inefficiency and wastage in the ways buildings are constructed and products are used resulting in huge efficiency loss.
At Holcim India, while we are focused on our sustainability goals, we are also helping our customers reduce CO2 emissions being released from buildings and infrastructure throughout their entire life cycle using our portfolio of sustainable products and services.
Our sustainable products and solutions from a global range include green concrete – ECOPact, we are also planning to bring green cement ECOPLANET that have a minimum of 30 percent CO2 reduction compared to conventional products, and Airium insulating foams and Firestone Building products are making buildings more energy-efficient from foundation to the rooftops. Our two local low CO2 offerings are Ambuja Kawach and ACC Gold Water shield cement which are both certified by Solar Impulse Foundation.
India is the second country after China with the highest CO2 emissions within the cement industry. What should the Indian cement industry focus on to reduce emissions to achieve 2030 sustainable goals?
Mr. Akhoury: India is still at a nascent stage in terms of the adoption of the latest technologies and sustainable practices in the construction sector. For example, there are no incentives to create demand for green solutions, norms and regulations do now allow for innovations in solutions, limited recycling of construction demolition waste, and slow substation of traditional fuels with alternate fuels due to regulatory issues.
At Holcim India, while we are focused on our sustainability goals, we are also helping our customers reduce CO2 emissions being released from buildings and infrastructure throughout their entire life cycle using our portfolio of sustainable products and services.
Through our “Plants of Tomorrow”, we are making our businesses smarter with automated data-driven solutions, cutting across robotics, artificial intelligence, predictive process, maintenance, and quality. By digitally connecting our manufacturing processes with our sales, sourcing, and logistics we are improving our operational efficiency and CO2 footprint.
Despite these challenges, the scope for creating a more sustainable construction sector is quite immense and the use of environment friendly-building materials is one important part of it. Our entities in India, Ambuja Cements and ACC have taken the lead in promoting innovation and sustainable practices in India.
Green and sustainable construction is slowly garnering interest in India. How do ACC and Ambuja Cements help its clients and other stakeholders within its supply chain to navigate towards sustainable construction?
Mr. Akhoury: At Holcim India, we remain focused on our sustainability goals and are also helping our customers reduce CO2 emissions being released from buildings and infrastructure throughout their entire life cycle using our portfolio of sustainable products and services.
Ambuja Cement and ACC have undertaken an industry-first approach – leveraging sustainable construction through green products, to reduce CO2 emissions in India.
Through innovation and R&D, the Companies have developed a range of green and responsible products for high-performing and circular construction. These products are giving an impetus to Ambuja Cement and ACC’s contribution towards SDG 9 and 11, our sustainable products will be contributing to the United Nations’ Sustainable Development Goals (UN SDGs). ~90% of Ambuja Cement’s product portfolio is low carbon fly ash-based PPC and composite cement. Innovative products such as PuraSand, AAC Cool Wall Blocks, Ambuja KAWACH, Ambuja Roof Plus, and Composite Plus, address the sustainability issues in construction. New Sustainable product, Ambuja Kawach, is a specially formulated product with high-quality water repellent properties acting as a shield against water seepage in all construction applications (foundation, slab & walls) and ensuring that structures can withstand the vagaries of harsh weather. It was certified by an international organization Solar Impulse Foundation as an efficient solution.
Similarly, ACC’s Gold Water Shield Cement’ is one of its kind, specially formulated cement with sustainable characteristics and high-quality water repellent properties, which protects the houses from dampness and seepage. Solar Impulse Foundation through its Efficient Solution Label recognises ‘ACC Gold Water Shield Cement’ as one of the world-leading efficient solutions that profitably protect the environment.
ACC’s low carbon concrete ECOPact has equipped the Company to make a positive impact on its community of builders, and eco-conscious Individual Home Builder (IHB). The innovative manufacturing process of the ECOPact reduces CO2 emissions by up to 100%, enhancing sustainable offerings for the construction industry.
As mentioned earlier, we will be bringing green cement ECOPLANET to India soon along with Airium insulating foams and Firestone Building products are making buildings more energy-efficient from foundation to the rooftops.
Sustainability is well embedded in all facets of the business. The adoption of these key levers to accelerate decarbonisation will not only strengthen our focus on contributing to economic and social development but will also enable us in protecting the environment.