Leading building materials company Holcim announced today of its growth strategy, “Strategy 2025 – Accelerating Green Growth,” anchored by plans to become the global leader in innovative and sustainable building solutions.
According to Holcim, the plan envisions the company achieving profitable growth across all its businesses, with sustainability and innovation driving 3%-5% sales growth, 10% ROIC in 2025 and improved EBIT margins.
Holcim’s strategy takes advantage of the increasing focus on sustainable building solutions, particularly as building materials companies find themselves at the center of the fight against climate change, due to the carbon intensity of their primary products. Cement production accounts for approximately 8% of global carbon dioxide emissions, with over 900 kg of CO2 emissions generated for every 1000 kg of material produced.
Holcim has been one of the most active companies in its industry on the sustainability front, as the first to set a 2050 net zero target, and the first global building materials company to sign on to the Science Based Targets initiative’s “Business Ambition for 1.5°C” pledge. Earlier this month, the company announced a new commitment to reach 40% of sustainable financing by 2024.
The company spelled out the key drivers of the 2025 strategy, including accelerating growth through innovative building solutions such as ECOPact green concrete and ECOPlanet cement. ECOPact was introduced by the company last year, featuring between 30% to 100% less carbon emissions compared to standard concrete, and ECOPLanet, a new range of green cement delivering at least 30% lower carbon footprint compared to ordinary cement, was launched by the company in July of this year.
Holcim has pledged to remain at the forefront of green building solutions, with 25% of ready-mix net sales coming from ECOPact. The company’s plans also include recycling 75 million tons of materials across its business including 10 million tons of construction & demolition waste by 2025.
Jan Jenisch, CEO Holcim, said:
“With our strategy ‘Accelerating Green Growth’ we are ready to seize the opportunities ahead, on our way to become the global leader in innovative and sustainable building solutions.”