Cemex has updated its Sustainability-Linked Financing Framework to align with its more ambitious 2030 decarbonization targets, announced on November 2022 and validated by the Science-Based Targets initiative (SBTi) for alignment under their 1.5°C scenario, the most ambitious pathway defined for the cement industry.
Cemex’s Framework, first issued in 2021, aligns Cemex’s financing strategy with its corporate sustainability commitments. The Framework establishes Cemex’s guiding principles when issuing new sustainability-linked financing instruments, including bonds, private placements, loans, derivatives, working capital solutions, and other financing instruments. The Framework is now being updated to align with Cemex’s targets, which accelerate the company’s path toward carbon neutrality.
“The updated Framework announced today reinforces our commitment to reducing the carbon footprint of our operations,” said Maher Al-Haffar, Cemex’s Chief Financial Officer and founding member of the UN Global Compact CFO Coalition for the SDGs. “Sustainable finance is an enabler of the low carbon transition and plays a crucial role in aligning our sustainability ambitions with the expectations of the financing community.”
The Framework is now linked with more aggressive scope 1 and 2 emission reductions in cement production. It is also linked to reducing Cemex’s 2030 clinker factor and increasing the use of alternative fuels with high biomass content. Morningstar Sustainalytics, a global leader in ESG research and data, has provided its opinion on the framework updates and considers the KPIs as strong or very strong, and the respective sustainable performance targets as moderately or highly ambitious.
Cemex is aligned with the Climate Transition Finance Handbook 2023, and the Framework aligns with the Sustainability-Linked Bond Principles 2023, and the Sustainability-Linked Loan Principles 2023, according to the second-party opinion issued by Sustainalytics.
The Framework and Sustainalytics’ second-party opinion can be found at the following link:
https://www.cemex.com/investors/debt-information/sustainable-finance.
