Dangote Cement Plc
Climate Impact & Sustainability Data (2020)
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:16,034,409 tCO2 (Scope 1)
Scope 1 Emissions:16,034,409 tCO2
Total Energy Consumption:92,515,735 GJ
Water Consumption:6,789,816 m3
ESG Focus Areas
- Cultural
- Economic
- Operational
- Social
- Environmental
- Financial
- Institutional
Environmental Achievements
- Increased corporate focus and strategies for reducing carbon footprints by committing to the use of alternative fuel sources in our energy mix.
- Planted over 450,000 trees across six countries.
- Developed an Alternative Fuel (AF) project Charter which entails the roadmap and milestones for the realisation of our AF strategy.
Social Achievements
- Spent ₦2.852 billion on social investments, a 157% increase from 2019. A significant 67% (₦1.912 billion) was spent on COVID-19 interventions.
- Institutionalised employee volunteering, with an active pool of over 2,500 employee volunteers.
- Implemented Acutherapy Training – a youth skill acquisition and empowerment programme for youths in Ibese – Ogun State, Nigeria.
Governance Achievements
- Won the SERAS Award for ‘Best Company in Sustainability Reporting’.
- Sustainability report prepared in accordance with the GRI Standards: Core option, and validated through external assurance.
- Recorded zero cases of non-compliance (including on ESG regulations) in Nigeria and other Pan-African operations.
Climate Goals & Targets
Short-term Goals:
- By end of 2025, alternative fuels will substitute approximately 25% TSR (thermal substitution rate) of fossil fuels currently used in our kilns for the production of clinker.
Environmental Challenges
- COVID-19 pandemic disrupted business activities, impacting employee hiring and exits.
- Supply chain disruptions due to lockdowns and restrictions.
- Challenges around foreign currencies availability and security concerns in Ethiopia.
- High expectation from the government (from a revenue drive standpoint) regarding alternative fuel project; awareness in communities; availability, quality and cost of sourcing alternative fuel materials; seasonality of required resources; logistics, lack of existing waste streams and collection system; and regulatory bottlenecks.
Mitigation Strategies
- Implemented cost-saving measures (improved plant efficiency, better fuel mix, general overhead optimisation).
- Developed alternative sourcing strategies.
- Disciplined cost control measures enabled maintaining a relatively flat cash cost per tonne.
- Developed a comprehensive Health and Safety Improvement Plan in all operations.
- Implemented an Alternative Fuel (AF) project Charter with a roadmap and milestones.
Supply Chain Management
Responsible Procurement
- Prioritising local content (76% of procurement spending in 2020 was on locally sourced procurements).
- Enforcing transparency in procurement activities.
- Encouraging and supporting best environmental, social, and governance standards.
Climate-Related Risks & Opportunities
Transition Risks
- Regulatory changes
- Carbon taxes
- Offsetting costs
Opportunities
- Development of energy-efficient products
- Diversification into renewable waste management industry
Reporting Standards
Frameworks Used: GRI Standards: Core option
Certifications: ISO 14001:2015 EMS (in process)
Third-party Assurance: Deloitte (limited assurance)
UN Sustainable Development Goals
- 4 (Quality Education)
- 8 (Decent Work and Economic Growth)
- 9 (Industry, Innovation and Infrastructure)
- 11 (Sustainable Cities and Communities)
- 12 (Responsible Consumption and Production)
- 13 (Climate Action)
- 17 (Partnerships for the goals)
Dangote Cement has prioritised seven SDGs that directly align with its corporate objectives, line of business and sustainability agenda.
Awards & Recognition
- SERAS Award for ‘Best Company in Sustainability Reporting’
- SERAS Award for ‘Best Company in Stakeholder Engagement’
- SERAS Overall winner (Africa) – First Runner Up
- SERAS CSR/Sustainability Professional of the Year
- Nigeria Institute of Public Relations’ award for “Best Company in Infrastructure Development”