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

non-profit.

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

cement start-up - its latest move to shrink its environmental

footprint. It rejected the claims of Industrious Labs and said

it is committed to sustainability.

Industrious Labs, which is part of a campaign called

Concrete Change to reduce the sector's environmental impact,

gave Holcim a D - the second lowest grade - 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 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.