Project Details
Project
Votorantim Cimentos Sustainability-Linked Financing Framework Second-party Opinion (2024)
Client
Votorantim Cimentos S.A.
Project Type
Sustainability Linked Bond or Note; Sustainability Linked Loan; Transition;
Industry Group
Construction Materials
Use of Proceeds
N/A
Location
Brazil
Evaluation Date
Mar 2024
Evaluation Summary
Sustainability-Linked Instruments
Sustainalytics is of the opinion that the Votorantim Cimentos Sustainability-Linked Financing Framework aligns with the Sustainability-Linked Bond Principles 2023 and Sustainability-Linked Loan Principles 2023. Overview of KPIs and SPTs:
KPI | Strength of | SPT | Ambitiousness of SPT |
KPI 1: Net scope 1 intensity (kgCO2/tonne | Very Strong | SPT 1: Reduce net scope 1 intensity to | Ambitious |
KPI 2: Thermal substitution (%) | Strong | SPT 2: Achieve a thermal substitution rate of 40% by 2026, 46% by 2028 and 53% by 2030 | Ambitious |
Climate Transition Finance Handbook
Sustainalytics has evaluated Votorantim Cimentos’ transition governance, strategy, decarbonization targets and intentions to report on transition progress and finds Votorantim Cimentos to be aligned with the recommendations of the Climate Transition Finance Handbook 2023. As a cement producer, Votorantim Cimentos is involved in an energy-intensive sector and has established CO2 emissions reduction targets aligned with the Transition Pathway Initiative’s well below 2°C scenario. Votorantim Cimentos has outlined an implementation plan for its decarbonization strategy and has its 2030 emissions reduction targets verified by the SBTi.