Working with a Chinese cement producer to reduce emissions
CO2 emissions linked to the production of cement are significant, accounting for about 7% of CO2 emissions globally according to researcher Global Efficiency Intelligence. Yet cement production is essential to global infrastructure development, and there isn’t yet a viable sustainable alternative that can be used at sufficient scale. As a result, cement decarbonization is a major climate topic addressed during our engagements.
Over the past year, we continued collaborating with a cement producer in China that's already committed to making significant carbon reductions, with targets set at five-year intervals through 2035. The company intends to generate lower emissions per ton of cement generated by using natural materials and industrial solid waste. While this plan puts the issuer ahead of peers, we encouraged the company to verify its carbon reduction target and ensure full alignment with the <2°C goals of the Paris Agreement. We also requested that the company publish a physical and transitional risk assessment using the TCFD framework.
We continue to work with the company on its long-term decarbonization plan and to accelerate its interim targets.
The case studies shown here are for illustrative purposes only, do not represent all of the investments made, sold, or recommended for client accounts, and should not be considered an indication of the ESG integration, performance, or characteristics of any current or future Manulife Investment Management product or investment strategy.
Manulife Investment Management conducts hundreds of ESG engagements each year but does not engage on all issues or with all issuers in our portfolios. We also frequently conduct collaborative engagements in which we do not set the terms of engagement but lend our support in order to achieve a desired outcome. Where we own and operate physical assets, we seek to weave sustainability into our operational strategies and execution. The case studies shown are a sampling across issues and geographies. Our approach to ESG investing and incorporation of ESG principles into the investment process differs by investment strategy and investment team. It should not be assumed that an investment in the company discussed herein was or will be profitable. Actual investments will vary and there is no guarantee that a particular fund or client account will hold the investments or reflect the characteristics identified herein. Please see our ESG policies for details.
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