SDG Engagement Equity Q2 2024 case study

Sustainability. We mean it.

Head of Impact Engagement - Equities and Lead Engager Small & Mid Cap Equities, Federated Hermes Limited

Insight

27 June 2024 |

Active ESG, Impact

Our Q2 case study looks at leading US cement manufacturer Eagle Materials. At the present time, the manufacture of cement accounts for 1.25% of CO2 emissions in the US. But as we outline, Eagle is well positioned to drive change and is implementing measures that should support decarbonisation in the industry.

SDG Engagement Equity Q2 2024 case study

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Cement manufacturing is unavoidably carbon intensive. The transformation of calcium carbonate in limestone into calcium oxide is a vital step to produce clinker – a key component in cement – which is responsible for about 60% of total cement-manufacturing emissions.
According to industry associations, three principal drivers are needed to support cement decarbonisation: increased use of alternative fuels; reducing clinker content; and carbon capture, utilisation and storage technology (CCUS).
Eagle Materials has taken a number of positive steps, but a marked improvement is still required – in terms of its own production and across the industry at large – if this essential commodity is to support rather than hinder national and global efforts to achieve net-zero emissions.

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