~The success of our sustainability initiative depends directly on how much the leadership is willing to invest in it~
CEO India Holcim Group
Managing Director & CEO of Ambuja Cements Ltd
There is a reason why the CEO’s or Chairman’s office is often called the ‘corner office’. It usually comes with windows on two sides, thus quite literally and figuratively providing a better and clearer world view. Needless to say, I think the latter is more important. There is a good reason why I am bringing this up now.
The role of a chief executive is not easy to define, that is to say, you cannot create a JD (job description) that can do any real justice to what he or she will end up doing on any given day. In many ways, organisations whether they are driven by economic, social, or political goals are structured so to ensure the buck stops at some point. This also provides an effective framework to handle some vital functions that cannot be delegated completely.
Sustainability is one such area along with ethics and governance that falls within this broad category. Yes, most large companies today have a Chief Sustainability Officer, but that does not in any way dilute the role of a CEO in fostering a culture of sustainability across the organisation. I think most CEOs understand this quite well now, better than they would have a decade or so ago when sustainability was not a mainstream function but largely relegated to a footnote in corporate chronicles.
Fortunately, we have evolved into something better and subjects like climate change, energy security, community well-being, etc. have come under the direct purview of the highest offices in small and large organisations alike.
At Holcim, India sustainability prevails over almost everything we do. It is a vital part of every important decision we take, which also explains why the CEOs office oversees it with great interest.
Both ACC and Ambuja Cements have aligned with the ‘Net Zero’ target for 2050 with intermediate SBTs or Science-Based Targets for 2030 of our parent company Holcim, and have undertaken an industry-first approach in leveraging sustainable construction through green products to reduce CO2 emissions in India.
ACC Ltd has taken several measures to reduce CO2 emissions, such as improving the Thermal Substitution Rate, reducing thermal & electrical energy intensity, implementing a waste heat recovery system and increasing the rate of renewable energy. Both Ambuja Cements and ACC will continue their proactive approach in developing low carbon products and sustainable solutions. We take great pride in the fact that ACC is the first company in the Indian construction sector to sign the “Business Ambition for 1.5°C” commitment with 2030 intermediate targets approved by the Science Based Targets initiative (SBTi) and Ambuja Cements a close second.
Similarly, Ambuja Cements is the only cement company to be certified eight times water positive in the industry. In 2020, Ambuja reduced its specific net CO2 per tonne of cementitious product to 531 kg. To contribute to a circular economy, Ambuja co-processed around 2.75 lakhs t of waste in its kilns and captive power plants including more than 83,000 tonnes of plastic waste. Overall, it also consumed about 8 million tonnes of waste-derived alternative raw materials such as fly ash, slag, and synthetic gypsum in the manufacturing process.
Today both brands have a formidable range of eco-friendly products that makes Holcim India future-ready to meet our long-term sustainability goals. This is particularly important because the question of sustainability should expand beyond inputs and processes to the products we create, thus helping our customers also contribute towards a greener world.
At the end of the day, sustainability is also an integral part of an organisation’s culture, and that is how it is also shaping up now. When leaders occupying the corner office throw their weight behind it, it will gain the critical momentum to make it an all-pervasive organisational ethos.