After water, concrete is the second-most-consumed material in the world. With no scalable substitutes currently available, it is a critical construction material for society — and cement is a key input in its production. With the global urbanization rate projected to reach 68% by 2050, concrete production will likely increase to meet the demand for residential buildings and public infrastructure. Consequently, it is imperative for cement and concrete companies to accelerate their journey toward a nature-positive and net-zero future and to ensure they operate within Earth’s safe and just system boundaries.
Because of the important role nature can play in reducing emissions, a nature-positive transition becomes an essential component in company efforts to meet net-zero commitments. Nature-based solutions can contribute up to 37% of the emissions reductions required by 2030 to keep global temperature increases below two degrees Celsius. Accordingly, companies need strategies and solutions that address climate change and nature loss simultaneously.
For cement and concrete companies, proactively managing nature-related risks and building a sustainable and resilient supply chain represents an opportunity to align with emerging regulation and take advantage of business opportunities available with the transition.
By implementing five priority actions, the cement and concrete sector can reduce its impact on nature and unlock $44 billion in annual business opportunities by 2030 in the burgeoning nature-positive economy
Key actions for a nature-positive cement and concrete sector
Improve water stewardship across the value chain
Enhancing ongoing initiatives, cement and concrete companies need to reduce further their dependence on fresh water and their impact on its availability and quality, especially in regions facing water scarcity or insecurity. Solutions include water audits, sustainable water management plans, and using non-freshwater sources such as harvested rainwater. Companies can also establish closed-loop recycling systems at production sites and create artificial wetlands to reduce water withdrawal and improve water quality.
Adopt tech practices to cut greenhouse gas and airborne emissions
Companies in the sector are already working to reduce their greenhouse gas and other airborne emissions. Solutions include switching to renewable energy (including sustainable alternative fuels); developing substitutes for carbon-intensive clinker; retrofitting facilities with emissions-reduction technologies, such as carbon capture, utilization, and storage (CCUS); and investing long-term in innovative technologies, such as green hydrogen and kiln electrification. An enabling policy environment, adequate support infrastructure, and multistakeholder collaboration are also pivotal in helping companies follow through on their commitments.
Enhance reclamation, biodiversity management, and land stewardship
Companies should consider biodiversity management and rehabilitation programs for operational and inactive quarries. This offers a unique opportunity for cement and concrete producers to make positive contributions to nature, as it helps with species recovery and the restoration of degraded habitats. Companies can measure their positive impact with tools, such as the Biodiversity Indicator and Reporting System (BIRS) developed by the International Union for Conservation of Nature (IUCN). They should engage with environmental organizations such as IUCN, Fauna & Flora International (FFI), and BirdLife International to develop biodiversity management standards and guidance to influence the industry. Companies can also implement biodiversity management plans on all the land they occupy, including offices, plants, and storage yards, particularly when sites are located in regions rich in biodiversity.
Expand circularity efforts across the value chain
Cement and concrete companies are already contributing to waste management through “co-processing” in kilns, which involves recovering energy from waste. In addition, the sector has a significant opportunity to make more positive contributions to nature through circularity. For example, entire concrete elements and structures can be recycled. Construction and demolition waste can be reused as aggregate and in other valuable applications as standards and policies evolve. Companies can capture and recirculate carbon dioxide emissions in the value chain; similarly, water reuse is increasingly common. With more supporting policies, good initial building planning and design, thoughtful renovations and demolitions, and careful life-cycle analysis of the environmental impact, the potential of circularity in the built environment can be fully captured.
Innovate faster to offer nature-positive products
Developing and introducing new concrete mixes and cement blends can be a key solution. For example, businesses can change the feedstock needed for cement production to more sustainable materials using cement additives such as slags, fly ash, and pozzolans. Additionally, companies can expand their product and service portfolios to introduce new offerings, especially downstream, such as waste processing and recycling. These will offer new business opportunities. New products can also contribute to nature-based solutions, such as using concrete in coral reef restoration, following a careful analysis of the benefits and impacts.
Navigating nature-related risks across industries
We partnered with the World Economic Forum to release a series of reports detailing the material impacts and dependencies on nature of 12 global industries, including the chemical industry, household and personal care products, and concrete and cement. Developed in collaboration with Business For Nature and the World Business Council For Sustainable Development, these reports outline priority actions within sectors to avoid and reduce negative impacts, mitigate nature-related risks, and unlock opportunities across value chains.
