“The sustainability landscape will continue to evolve rapidly. With unified disclosures and increasing regulations, it might become easier yet challenging. The sustainability landscape in the cement and concrete sector will be driven by newer technologies for accelerating decarbonization, innovations in SCMs, Carbon trading, and technologically and policy supported pathways to zero,” shares Kaustubh Phadke, India Head, Global Cement and Concrete Association (GCCA) India, during an interview…
How is the industry perceiving circular economy, and is it making efforts in the same direction?
Kaustubh Phadke, GCCA India
India is the second largest producer of cement in the world. Cement has the highest CO2 footprint among construction materials despite being the least expensive. It’s a challenging sector to address in terms of emissions. The cement is produced by heating limestone, which releases CO2... But at the same time, you will be surprised to know that the Indian Cement sector is the most energy-efficient sector in the world. The cement industry in India has been a pioneer in the circular economy; close to 73% of cement produced in India is blended cement.
Blended cements are formulated by blending of portland clinker with other finely ground materials such as pozzolana, fly ash and granulated blast furnace slag. Both fly ash and slag are waste components from the thermal power plants and the steel industry, respectively. The partial replacement of clinker, which is not only the more expensive component of cement but also the most resource, energy and emission-intensive, with mineral additives improves the sustainability of the material. Most importantly, the performance of cement can be improved through this replacement, making blended cement the most attractive means to achieve sustainable infrastructure development.
The Indian cement sector utilizes close to 30% of the fly ash produced in India. The cement and concrete sector in India also co-processes the non-recyclable segregated combustible fraction of the municipal solid waste in their kilns to use as alternative fuels. In India, the consumption of blended cement like Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), and Composite Cement is significant. Other cement formulations, such as Limestone Calcined Clay Cement (LC3), which is standard by BIS, have been released recently, and Portland Limestone Cement is at different stages of development in India.
We need to create awareness among the value chain partners, comprising architects, structural engineers, the construction industry, contractors, etc., of the adoption of sustainable manufacturing practices and the efficient use of cement. In 2021, at the COP-26 in Glasglow, GCCA (global) released a Net Zero roadmap for the cement and concrete industry, an ambition to be net zero at the concrete level by 2050 in alignment with the Paris Climate Agreement. We also have an intermediate target for 2030. Our purpose is to create awareness among the value chain partners as to how they can build a sustainable infrastructure with the least CO2 footprint.
The cement and concrete sectors are highly focused on sustainability. GCCA India, along with TERI, is working on an India-specific roadmap for net zero CO2 in the cement and concrete sector in alignment with the government’s commitment to net zero.
What exactly are sustainable business practices? Would you like to share a few success stories with us?
Cement industry has emerged as the solution provider to all the other sectors in circular economy. The Indian cement sector is leading the way in utilizing by-products like fly ash from thermal power plants and Ground Granulated Blast- Furnace Slag (GGBS) from steel plants. This not only reduces the need for virgin raw materials but also promotes the circular economy by repurposing waste materials.
Around 30% of fly ash generated in India is used by the cement industry. Before the term circular economy was coined, the cement industry was already practising it. Similarly, the slag which is generated from the steel plants is used in manufacturing the – Portland Slag Cement,
India generates approximately 4 million tonnes of plastic waste annually, with only a quarter being recycled or treated. To address this issue, the government implemented the Extended Producer Responsibility (EPR) rules, mandating that plastic users are responsible for collecting and recycling their waste. This system operates through an online EPR trading platform where recyclers receive certificates for recycled plastic that can be purchased by companies falling short of their recycling targets.
However, the EPR system has faced significant challenges. While the market-driven approach shows promise, addressing India’s plastic waste problem requires improving the recycling system, focusing on reducing plastic production, and promoting sustainable alternatives.
Co-processing plastic waste is a great alternative as it provides the cement company with needed energy, is a greener alternative to coal/pet coke, and completely tackles plastic waste. Plastic waste is a very good substitute for coal. With a temperature beyond 1500 degrees, you are able to completely destroy the hazardous properties of plastic. These are successful business cases for implementing a circular economy within the cement industry. Another one is AFR—Alternative Fuel and Raw Material. In countries like the US and Europe, some cement plants run on 80-90% alternative fuels.
According to you, what challenges are companies facing in shifting gears to more sustainable alternatives?
The challenges are funding the sustainability alternatives and supportive policy measures. Every transition requires investment in terms of technology, operation and talent. The Cement and Concrete sectors in India have already made many transitions to be more sustainable – moving from wet process to dry process, using Captive Power plants, Waste heat recovery systems, and increasing renewable energy use. However, larger, more effective, and newer technologies like carbon capture utilization and storage (CCUS), such as Kiln electrification, require huge investment, which will require considerable funding and support from the government or financing institutions.
What are the tenets of GOOD sustainability practices?
At the GCCA, we have a GCCA Sustainability Charter, and we encourage the member companies to focus on the five pillars (Health & Safety, Climate Change & Energy, Social Responsibility, Environment and Nature, and Circular Economy). Our charter also places great importance on monitoring and reporting the data because data is the most reliable indication of performance. So, the data has to be relevant, complete, consistent, transparent and accurate. Each of the pillars has a set number of KPIs set by industry experts, which we use to create GNR (database of country-wide cement industry numbers). So, the tenet of Good Sustainability practices is reporting fair data and monitoring progress on the set KPIs or targets.
How can companies assess suppliers on various ESG parameters? How can technology adoption drive significant change in this regard?
Companies can use questionnaires and checklists to assess suppliers on ESG parameters. And yes, technology would make the entire process much more efficient by streamlining, creating a database and maybe with further technology adoption also rating the supplier will be become easy.
How do you foresee the sustainability landscape moving from here on?
The sustainability landscape will continue to evolve rapidly. With unified disclosures and increasing regulations, it might become easier yet challenging. The sustainability landscape in the cement and concrete sector will be driven by newer technologies for accelerating decarbonization, innovations in SCMs, Carbon trading, and technologically and policy supported pathways to zero.
How can companies take the first step right in driving the change?
The first step would be to conduct a materiality assessment to better comprehend, understand, and prioritize sustainability issues based on the company and the sector you are operating in.
Aligning Value Chain Partners to your Sustainability Vision
Aligning the sustainability vision with all the value chain partners is one of the critical tasks. But here are a few ways to help align the value chain partners with the organisation's sustainability vision-
Integrating sustainability criteria in the procurement process
Creating awareness of embodied CO2 emissions for construction projects
Collaboratively working with the suppliers to expand the company's sustainability goals
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