2012 Annual Report - Italcementi Group

4 Environmental protection
4.1 Climate and energy
As stated in its Energy Policy, the Group is committed to move towards a low-carbon economy while alleviating
social impacts and to play a part in developing practical and feasible solutions together with governments and
other responsible players in the building material sector.
More frequent occurrence of extreme precipitation in the Asian countries pose at risk key elements of the
supply chain. Furthermore adverse weather conditions affect the cement market causing unexpected stops of
production. In 2012 floods affected the supply chain in Thailand limiting operations. Unexpected production
stops, with stoppages of kilns and following start ups increase the production costs. The Group diversifies both
type and source of raw materials and fuels while prioritizing local sources. Insurance systems have also been
put in place to cover unplanned plants stops. In the interest of all Group subsidiaries, Italcementi has worked
with leading insurance companies to cover risks to people and assets.
The Group intensity based target, for direct emissions, is to achieve an emission factor of 640 kg CO 2 per
tonne of cementitious product by 2015 (5% of reduction versus 1990). In 2012, the emission factor was 712 kg
CO 2 per tonne of cementitious, penalized by the discontinuous operation of the European plants, due to
continued market instability. In terms of thermal consumption reduction, the Group recorded some progress in
2012 in emerging markets, confirming their positive trend registered in the last four years.
Reduction initiatives are mainly focusing on increasing the use of less carbon intensive fuels, following an the
Alternative Fuels Multiannual Plan. Those alternative fuels (AFs) reached a 6.5% substitution rate in 2012, of
which almost 3% coming from biomass; in 2012, avoided emissions from use of biomass amounted to more
than 400 ktons CO 2 . Italy was able to increase its substitution rate of almost 40%. Egypt and India, which
started up using agricultural waste in late 2011, continued in 2012 with a broader variety of alternative fuels,
such as RDF. Two CDM (Clean Development Mechanism) projects based upon fuel switch have been applied
for registration to UNFCCC in December 2012.
In addition to direct emissions, the Group is also tracking sources of indirect emissions, capturing upstream
and downstream activities (e.g. transport of fuels and raw materials, business travel). The whole Group carbon
footprint is then calculated on annual basis. Two subsidiaries, Italy and Bulgaria, obtained the inventory
validation against the standard ISO 14064-1, being pioneers in their countries and in the cement sector as well.
Available indirect CO 2 emissions are available on page 338.
The Group is firmly moving towards self production of electricity from renewable sources. Our renewable base
load in Italy relies on hydro power plants (approximately 52.7 MW installed), progressively being modernized,
and photovoltaic plants (Salerno, Sarche, Vibo Valentia and Guiglia quarry), with a total installed capacity of
7MW. In addition the Group is operating wind farms in Bulgaria and Morocco, with a total installed capacity of
23MW. The Group is operating a waste heat recovery (WHR) system in Morocco producing electrical power
and saving up to 4,400 tons of CO 2 per year. It will be complemented by a concentration solar plant, now under
construction. Overall 150,000 tons of CO 2 were saved in 2012 through self production of electricity.
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