Climate Change Data

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”