Dangote Cement Plc Annual Report 2021
CDP
B-
CDP
SUPPORTER
2021
Strategic report
•
Our climate response strategy
Versatile and long-lasting concrete structures are required for
climate-resilient construction. The threats of climate change
as outlined in the Paris Agreement of the United Nations
Framework Convention on Climate Change (UNFCC) however
makes it imperative for the cement industry to set out its plan
for decarbonisation. Dangote Cement acknowledges the
challenges of reducing its specific CO2 emissions, owing to
heavy dependence on fossil in limestone-based clinker, where
the demand for cement is high in the market. Nonetheless, we
have adopted a two-pronged response to climate change: laying
a foundation for climate action through a climate risk register and
the exploration of alternatives for reducing CO2. The climate risk
register supports the management of associated environmental
and financial risk, and recommends implementation of control
measures. This is supported by an ESG metrics-based system
which assesses current and potential future CO2 emissions of
our operations in 14 plants across Africa. The Company increased
financial investment in projects, exploring low-carbon fuels, such
as biomass as substitutes for fossil fuels in heating limestone and
clay, while remaining open to emerging technologies to support
our commitment towards CO2 reduction.
How we performed on environment: energy,
emissions, water and wastes
In the past three years we have disclosed our environmental
performance through the Climate Disclosure Project (CDP) and a
GRI standards framework. Our third CDP report published in 2021
obtained an improved rating from C to B-. This rating reflects our
improvement in governance, risk management processes and
disclosures, emissions reduction initiatives, and business strategy.
CDP rating upgraded to B-
Submission to Carbon Disclosure Project (CDP)
Rated "B-" by CDP on our carbon disclosure for 2021
One of the highest ratings in Sub-Saharan Africa and the
only Nigerian company rated by CDP
In 2021 DCP became a CDP supporter
2020
2019
Awareness
band:
Knowledge of
impacts on, and
of, climate issues
Awareness
band:
Knowledge of
impacts on, and
of, climate issues
2021
Management
band:
Taking coordinated
action on climate
issues
"As a mission-based non-profit that runs
the global environmental disclosure
system, CDP greatly values the support
of Dangote Cement. Action this decade
is critical to ensuring that we can limit
global warming to 1.5°C and safeguard
our planet's natural resources. Quite
simply what is measured can be
managed. Through its 2021 disclosure to
CDP, Dangote Cement has demonstrated
its clear commitment to transparency
around its environmental impacts and
its strategies for action. This benefits
the Company as well as its shareholders,
customers and employees alike."
Sonya Bhonsle
Global Head of Value Chains & Regional Director
Corporations, CDP
Energy consumption
The manufacturing of cement is an energy-intensive process, with
a large proportion of production costs spent on fuel sourcing for
kilns operations. Our kilns, like others in the industry, require high
energy for the conversion of raw materials such as limestone,
laterite and other minerals into clinker in a heat-intensive process
known as sintering. Sintering is an energy-intensive process
that occurs at about 1450°C. We acknowledge the fact that the
amount of energy consumed cannot be out-rightly reduced.
Hence our corporate strategy and commitment are to enhance
our investments in alternative fuel sources and energy-saving
initiatives, focusing on cleaner energy.
Across all our locations, total energy consumption in 2021
was 101,355,380 GJ, an increase of 9.55% year on year, relative
to 2020. This rise was basically due to a significant increase in
total production output compared to 2020, the resumption of
production from our Gboko plant, and increased output from
Obajana and Tanzania, as detailed in our production output section
of this report. With 68.51% of the total, our Nigeria operations
which host the larger part of our total cement production was the
highest energy consumer in the year under review.
Dangote Cement Plc Annual Report 2021 37View entire presentation