Boral sets ambitious 2030 targets, commits to net zero

Boral has set itself some of the most ambitious emissions reductions targets in the global construction materials industry to 2050, and joined the international Science Based Targets initiative.

The Science Based Targets initiative (SBTi) is a partnership between non-profits CDP, the United Nations Global Compact, the WWF and the World Resources Institute. The SBTi assists companies and corporates with setting science-based targets with defined programs to reduce their emissions in line with the Paris Agreement goals. There are more than 1000 businesses working with the SBTi to reduce their emissions in line with the climate science.

Boral has joined two SBTi programs Business Ambition for 1.5^oC and the United Nations Framework Convention on Climate Change Race to Zero. The company has committed to net zero emissions by no later than 2050 and it is currently seeking validation by SBTi of its 2030 targets, which include:

A 46% reduction in “absolute” Scope 1 and 2 emissions.
A 22% reduction in relevant Scope 3 emissions per tonne of cementitious materials, from a 2019 baseline.

In line with other construction materials and cement companies that are taking action through SBTi, these are, according to Boral, some of the most ambitious reduction targets in the global construction materials industry.

“As Australia’s largest integrated construction materials company, we have a unique opportunity to lead the way to make a meaningful contribution to build greener cities and create a net zero future,” Boral CEO and managing director Zlatko Todorcevski said.

“We are proud to be the first company in the cement sector to set science-based targets aligned with a 1.5°C pathway for Scope 1 and 2 emissions.”

Decarbonisation strategy

Todorcevski added Boral has further redefined its strategy to become an innovator in sustainability by decarbonising its cement and other construction materials businesses and “embedding a more circular economy approach”.

“Our decarbonisation pathways include shifting to renewable energy sources, and growing our proprietary lower carbon, higher performing concrete solutions.”

Five key decarbonisation levers will underpin Boral’s climate targets:

Energy efficiency. The company will transition to 100% renewable electricity.
Cementitious intensity. Boral will optimise the energy efficiency and increase the use of alternative fuels at its Berrima Cement kiln, as well as accelerate adoption of its lower carbon concrete products, including ENVISIA, Envirocrete and EnvirocretePlus.
Boral will optimise supply chain logistics and routes, and explore alternative fuel fleet options.
Boral will prioritise lower carbon intensity suppliers.
Carbon capture use and storage (CCUS). Boral will explore and test emerging CCUS technologies.

Todorcevski said Boral was already investing in research and development and partnering with other bodies to bolster its sustainability and innovation efforts and access to leading technologies, as well as collaborating with customers and suppliers.

“We are supporting our customers to make more sustainable choices, including by broadening our suite of lower carbon concrete products and offering Climate Active certified net carbon neutral concrete,” he explained.

“We have a clear line of sight to deliver on our 2030 targets and beyond 2030, we are working on new and emerging technologies.”

Future ambitions

Todorcevski said that “collectively” Boral’s decarbonisation efforts seek to achieve carbon neutrality by no later than 2050 and deliver future growth by reshaping the business to be a decarbonisation leader.

“Just how we achieve our 2050 ambitions will depend on further development and commercial viability of new and emerging technologies,” he said.

“Our Innovation team is leading the way in developing high performing sustainable products and solutions for our industry, including piloting CCUS technologies.

“The team is supported by strategic partnerships, including with academia, government and through collaborative industry innovation hubs.

“By pursuing opportunities to re-define Boral through decarbonisation, we are confident that we can support the ambition of our customers and Australia.”

For more information on Boral’s net zero ambitions, visit the Boral website.

For more information about the SBTi, visit sciencebasedtargets.org

Positive credit rating

In other good news for Boral, Moody’s Investor’s Service affirmed Boral’s investment credit rating at the end of August. Boral Limited has a rating of ‘Baa2’ with a stable outlook, following the increased shareholding interest of Seven Group Holdings.

Moody’s stated that the affirmation of the ratings reflected the strength of Boral’s balance sheet, financial strategy and risk management policies, its leading position in the Australian construction materials industry and expectations that the company will benefit from government stimulus measures that will support construction.

“We welcome the decision by Moody’s to affirm its investment grade credit rating and stable outlook for Boral, recognising the strength of Boral’s financial framework and our disciplined approach to managing Boral’s balance sheet,” Boral’s chief finance and strategy officer Tino La Spina said in a statement.

“We recognise that maintaining a strong balance sheet is in the best interests of investors.

“We are focused on generating additional surplus capital and being disciplined in the way we allocate capital.”

The Moody’s Investor Service Ratings report can be viewed on the Boral website.

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