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Today: Jun 13, 2024

Sustainable finance: Decarbonizing the building sector – can it happen?

1 min read

Sustainability is an important focus for Holcim, a global leader in building solutions, and the company recognizes the role that sustainable finance can play in decarbonizing the building sector.

According to Leila Sassi, Head of Sustainable Finance at Holcim, sustainable finance integrates environmental, social, and governance (ESG) criteria into investment decisions and financing activities. It aims to support sustainable growth and reduce environmental pressures by channeling capital into climate-friendly projects and those that help transition to a climate-neutral economy.

Sustainable finance is essential for decarbonizing the construction industry, as it provides the necessary capital, incentives, and frameworks. Holcim is actively involved in this effort, developing sustainable construction solutions and technologies, incentivizing energy-efficient building construction, and complying with government regulations and incentives for reducing carbon emissions.

Specifically, Holcim has adopted a holistic approach to sustainable finance, integrating it into its funding activity, investment strategy, and reporting. The company is committed to reaching at least 40% of sustainable financing by 2025 and investing in green capital expenditures and carbon capture technology. It follows EU Taxonomy reporting guidelines and reports its eligible activities in its annual sustainability and financial reports.

In terms of financing instruments, Holcim has issued sustainability-linked bonds and green bonds. Sustainability-linked bonds link the cost of the bond to the achievement of sustainability targets, while green bonds have dedicated use of proceeds directed to green projects.

Holcim has been a pioneer in sustainable finance within the industry and has over 7 billion CHF of financing agreements linked to its sustainability objectives. The company recently updated its financing framework to support the issuance of green bonds and sustainability-linked bonds, providing transparency and accountability regarding its environmental impacts and sustainability strategy.

In conclusion, Holcim recognizes the importance of sustainable finance in decarbonizing the building sector and has taken proactive steps to integrate sustainable finance into its operations. By leveraging finance as a tool to support sustainability goals, the company is contributing to a more sustainable and resilient built environment.