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Project Details


CEMEX Sustainability-Linked Financing Framework Second-Party Opinion (2021)


CEMEX, S.A.B. de C.V

Project Type

Sustainability Linked Bond or Note

Industry Group

Construction Materials

Use of Proceeds




Evaluation Date

Aug 2021

Evaluation Summary

Selection of Key Performance Indicators (KPIs)

Sustainalytics overall considers KPI 1 to be very strong, KPI 2 to be adequate and KPI 3 to be strong given that all KPIs speak to relevant and material environmental issues for cement manufacturers, such as carbon emissions and energy efficiency, and all three KPIs follow a recognized clear and consistent methodology. All KPIs are direct measures of performance against the material environmental issues. Further, KPI 1 is considered very strong as it lends itself to benchmarking against external contextual benchmarks and its very high scope of applicability and KPI 2 is adequate as it has a low scope of applicability given the low proportion of Scope 2 emissions to CEMEX’s emissions profile, while KPI 3 can be assessed against IEA’s key indicators and has a medium range scope of applicability.  

Calibration of Sustainability Performance Targets

Sustainalytics considers the SPTs to align with CEMEX’s sustainability strategy and considers CEMEX’s SPT 1 to be ambitious given that it presents a material improvement compared to past performance, is aligned to market best practice and does align with science-based trajectories. Sustainalytics considers CEMEX’s SPT 2 to be ambitious given that it presents a material improvement compared to past performance and is aligned with market best practice but does not lend itself for comparison against external contextual benchmarks. Sustainalytics considers CEMEX’s SPT 3 to be highly ambitious given that it presents a material improvement compared to past performance, aligns with market best practice and can be compared to science trajectories.  

Bond/Loan Characteristics

CEMEX has disclosed that it expects to link the financial characteristics of any Sustainability-Linked Securities issued under the Framework to the achievement of the SPTs. For the SLLs, a failure to meet the SPTs at a target observation date would result in an upward adjustment of the margin payable by CEMEX while if the SPTs are met, a downward adjustment to the margin would be applied. For the Sustainability-Linked Notes, a failure to meet the SPTs would trigger a step-up in the coupon rate as agreed upon in the bond indenture and payable from the first coupon payment date following the target observation date until maturity or callable date. Pricing adjustments would be non-cumulative, and all penalties or incentives associated with each KPI would accrue independently. All KPIs would be included in any instruments under the Framework. If for any reason, the performance level against each SPT cannot be calculated, observed or delivered within the time limit prescribed in the respective documentation, or verification assurance is not delivered in a satisfactory manner, the step-up in the coupon rate or margin would be applicable.    


CEMEX would commit to report on an annual basis on its performance on the KPIs and expects to include the relevant figures in the Integrated Report available on the Company’s website; this approach to reporting is aligned with the SLBP and SLLP. CEMEX would further commit to disclose relevant information enabling investors to monitor the level of ambition of the SPTs such as updates to the Company’s sustainability strategy, targets, methodology or benchmark changes and reporting.   


CEMEX would commit to having an external verifier provide limited assurance on the KPI performance at the SPT deadline, which is aligned with the SLBP and SLLP on verification. Verification would consist of an assurance statement by an auditor on the KPI information included in CEMEX´s Integrated Report and a verification assurance certificate following the observation date confirming whether the performance of the KPI meets the relevant SPT as outlined in the Framework.