Indian Cement Sector SDG Roadmap - WBCSD

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Indian Cement Sector SDG Roadmap - WBCSD
Indian Cement Sector
SDG Roadmap
Indian Cement Sector SDG Roadmap - WBCSD
Indian Cement Sector SDG Roadmap - WBCSD
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
Indian Cement Sector SDG Roadmap - WBCSD
4   Indian Cement Sector SDG Roadmap
Indian Cement Sector SDG Roadmap - WBCSD
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
Indian Cement Sector SDG Roadmap - WBCSD
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
Indian Cement Sector SDG Roadmap - WBCSD
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
Indian Cement Sector SDG Roadmap - WBCSD
Executive
                                       summary

8   Indian Cement Sector SDG Roadmap
Indian Cement Sector SDG Roadmap - WBCSD
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
Indian Cement Sector SDG Roadmap - WBCSD
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
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