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US-based environmental nonprofit criticizes Holcim's

climate

efforts

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Holcim invests $474.17 million in green projects in 2023

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Holcim's North American spinoff set for first half of 2025

By John Revill

ZURICH, Sept 19 (Reuters) -

Holcim's $30 billion New York spinoff of its North

American business has come under fire from an environmental

group that said the major cement maker was doing too little to

tackle climate change.

The Swiss-based company has failed to cut direct emissions

from its plants or spend enough to reduce materials or energy

waste, said Industrious Labs, a U.S.-based environmental

nonprofit.

Holcim on Thursday announced an investment in a U.S. low-carbon

cement startup - its latest move to shrink its environmental

footprint.

It rejected the claims of Industrious Labs and said it is

committed to sustainability, having won an award for industrial

decarbonisation this year after spending 402 million Swiss

francs ($474.17 million) on green projects in 2023.

Industrious Labs, which is part of a campaign called

Concrete Change to reduce the sector's environmental impact,

gave Holcim a grade of "D" - the second-lowest rating - for its

sustainability performance.

It said the spinoff, due to take place in the first half of

2025, hides mounting costs and a failure to adapt to growing

demand for cleaner cement.

"Markets are brutal and don't reward incumbents which are

slow to respond to customer demand," Nachy Kanfer, a partner at

Industrious Labs, told Reuters. "We see multiple net zero cement

projects under way, and Holcim is being left behind."

Industrious Labs, which holds no stake in Holcim, said it is

not providing investment advice, but Kanfer said Holcim will

have to invest heavily to catch up with rivals or risk missing

out on a market shift to lower-carbon cement.

"We are not hoping for a lower valuation, but a premium

valuation where Holcim makes a clear and specific commitment and

spends capital on improving sustainability," Kanfer said.

The cement industry is responsible for about 7% of global

CO2 emissions, according to the Global Cement and Concrete

Association.

Holcim said it generates 90% of its cement sales in North

America from its low-carbon range, and that it is working on

three projects in the region to capture more than 5 million tons

of CO2 per year.

"Holcim is transitioning to alternative fuels, with three

plants already operating with close to 100% fossil-fuel free

thermal energy," a Holcim spokesperson said.

"The planned listing of Holcim's North American business in

the U.S. is on track to be completed in the first half of 2025,

with the aim of unlocking a new era of value creation for all

stakeholders," he added.

($1 = 0.8478 Swiss franc)