CO2 Emissions and Climate Change

Value Chain Boundaries

Impacts of this topic reach Argos’ procurement processes and the supply chain.Supliers
Impacts of this topic are evaluated throughout all Argos operations.Argos
Impacts of this topic reach our industrial and/or retail clients.Clients
Impacts of this topic reach our communities, authorities and other individuals of the society.Society

Our management approach

Added value to the company

Our climate strategy allows us to reduce climate change-related risks while generating new business opportunities through innovation in processes, products and solutions. It also increases operational efficiency and reduces costs.

Added value to society

Through our engagement with tackling climate change, we contribute to the global challenge of reducing CO2 emissions and mitigating associated impacts on society. The cost to society for 2016 derived from CO2 emissions decreased 1.8% compared to 2015 according to our Value Added Statement – VAS.

103-2 Initiatives, commitments, and policies


Cement Sustainability Initiative

Sustainability Policy

Low Carbon Technology Partnership Initiative

Carbon Disclosure Project

Carbon Cure

Environmental Policy

103-2 Governance

Sustainability and Corporate Governance Committee
Sustainability
VP
Environmental corp Director and Managers
Regional
VP
Environmental regional Directors and managers/plant Director
Hydroelectric power station, Francisco Morazán, Honduras, Caribbean and Central America Region

2016 performance

  • We developed of the Carbon Footprint BI Model for the automatic calculation of scope 1 and scope 2 emissions in our cement operations in the Colombia Region, in accordance with the methodology of the CSI CO2 Protocol.
  • We formulated CO2 emission reduction plans for the Colombia, and Caribbean and Central America regions. The plans include annual targets, projects, and initiatives to develop in order to achieve the corporate 2025 CO2 reduction goal.
  • We participated in the construction of the Road Map of the Cement Industry in Latin America, which is being developed under the leadership of FICEM
    (Inter-American Cement Federation).
  • We established an agreement with CarbonCure Technologies to use captured CO2 to improve the resistance of some of our concrete mixes and contribute to the reduction of CO2 emissions. We were the first company in the USA to be able to offer our customers a product with CO2 capturing and incorporating properties.
  • We approved the use of Internal Carbon Pricing to assess project feasibility.
  • We ensured compliance and transparency of the information reported by having an external audit performed by PwC for scope 1 and 2 CO2 emissions.
  • The slight reduction in specific net CO2 emissions across our operations was driven by increasing the use of alternative fuels, specific heat consumption improvement and the implementation of energy road map initiatives (see Energy and Coprocessing section).

Upcoming challenges

  • To start the implementation of CO2 reduction plans for cement operations in the Colombia, and Caribbean and Central America regions while boosting expected results for the company.

A-EC1 Specific net CO2 Emissions (kg CO2/t cementitious products)

Environmental Policy indicator

2016600
2015601
2014613
2013589

Specific Net CO2 Emissions in 2016 were 600 kg CO2 per ton of cementitious products, which corresponds to a decrease of 29% compared to our baseline.

305-1 305-2 Direct and indirect emissions

Cement
Direct millions of tons of CO2

20166.6
20157.1
20146.5
20135.6

Indirect thousands of tons of CO2

2016320
2015315
2014634
2013971

Concrete
Direct thousands of tons of CO2

201668
2015147
201472
201350

Indirect thousands of tons of CO2

201620
201519
201422
201318

Aggregates
Direct thousands of tons of CO2

20162.5
20151.5
20141.4
20131.5

Indirect thousands of tons of CO2

20161.4
20150.97
20140.55
20130.73

Generation of energy
Direct thousands of tons of CO2

2016505
2015568
2014642
2013550

TOTAL EMISSIONS
Millions of tons of CO2

20167.5
20158.2
20148.0
20137.2
2016 Goal tracking
···
· We developed specific plans for operations that enabled us to make further progress toward the established goal of decreasing CO2 emissions by 35% by 2025.
· We conducted an external audit of our inventory of CO2 emissions to confirm the transparency of the report and emissions management.
2017 Goals
  • We will formulate the scope 1 emissions reduction plan for USA cement operations.
  • We will implement the methodology established by the CSI in the recently published “Cement Sector Scope 3 GHG Accounting and Reporting Guidance”.

2025:

  • We will reduce CO2 emissions per ton 35% of cementitious products by 2025 (Baseline 2006).