Wednesday 11th August 2021

Driving Race to Zero ambition with contractors

& product manufacturing business members

A UKGBC and Climate Champions event

UKGBC & Race To Zero

Why Race to Zero?

Requirement of Membership

Our support to members

In the chat please add…

1. The organisation you are representing

2. Your area of responsibility

3. A short sentence about what you hope to takeaway

from todays roundtable.

This will help us guide the discussion.

Agenda

The Race To Zero campaign

SBTi Business Ambition for 1.5°C Campaign

Q&A

Case Studies from Multiplex & Holcim

Q&A

Closing remarks

Contributors

Olwen Smith

UK & WW Regional

Lead, Net Zero

Campaigns, CDP

Pavan Patel

Senior Sustainability

Manager, Multiplex

Sonal Jain

Senior Director, JLL and

Climate Champions

Team

Antonio Carillo

Head Climate and

Energy, Holcim

Making 2021 the most impactful year for climate action

2021 is the year of COP26, bringing an unprecedented opportunity for the building and construction sector to demonstrate its contribution to achieving Paris Agreement goals.

Well Below 2℃

Hold warming well below 2℃ and pursue

efforts to stay below 1.5℃ to significantly

reduce the risks and impacts of climate

change. For this, we need to reduce 45%

of global emissions from 2010 levels by

2030 and reach net zero emissions by

2050

IPCC 2018 1.5 degree report changed

everything

Net Zero Emissions

Reach global peaking of GHG emissions as

soon as possible

Undertake rapid reductions thereafter in

accordance with the best available

science

Reach net zero by 2050

Climate Resilience

Enhance adaptive capacity, strengthen

resilience and reduce vulnerability to

climate change

What are the Paris Agreement Goals?

1

ActionReduce emissions2

AdvocacyAdvocate to supply chains, peers and policymakers

3

What role can you play?

AmbitionJoin Race to Zero

The UN-backed, global campaign to rally leadership and support from all non-

state actors for a healthy, resilient, zero carbon recovery.

All members are committed to the same overarching goal: achieving net zero

emissions by 2050 at the very latest.

What is Race to Zero?

9Nigel Topping Gonzalo Muñoz

Led by the High-Level Climate Champions for Climate

Action, Race To Zero mobilizes actors outside of national

governments to join the Climate Ambition Alliance.

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4000

3500

3000

2500

2000

1500

1000

500

0

GROWTH RATE

June 2020(Launch)

Sept 2020(CWNY)

Dec 2020(CAS)

March 2021 April 2021 May 2021

Organization Investor Company City Region

4500

June 2021

5000

Who from the built environment has already joined the Race to Zero?

…and many more

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Race to Zero criteria

1. PLEDGEPledge at the head-of-

organization level to reach (net)-zero as soon as possible.

2. PLANWithin 12 months of joining,

set an interim target representing your fair share of

50% reduction by 2030.

3. PROCEEDTake immediate,

meaningful action toward achieving net zero within the

first 12 months of joining.

4. PUBLISHReport progress annually by

publishing against your targets on a public platform..

Targets must cover all GHG emissions:1. Including Scope 3 for businesses and investors 2. Including all territorial emissions for cities and regions

1. Prioritise immediate abatement. 2. Any neutralization of residual emissions must transition

to permanent removals. 3. Encourage immediate contributions to the preservation

and restoration of natural sinks.

ALL SCOPES OFFSETS

LEADERSHIP PRINCIPLES

Seek to enable all actors to contribute to the global transition toward net zero through engagement, information sharing, access to finance, and capacity building. Develop pledges, plans, and actions in consideration of equity, drawing on, inter alia, the Sustainable Development Goals and Articles 2 and 4 of the Paris Agreement.

Join as an actor

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Yes No

Please move to the next page

Large businessCompany with <500

employeesB-Corporation

Company with a sectoral focus

Am I a business?

SME Climate Hub Climate CollectiveFashion Charter

Healthcare without Harm

Water UK

International Wineries for Climate Action

Business Ambition for 1.5

The Climate Pledge

Exponential Roadmap Initiative

Future Net Zero with CBN

Business Declares

Pledge to Net Zero

Am I a…

UN Net Zero Asset Owner Alliance

Net Zero Asset Managers Initiative

Financial institutions

Paris Aligned Investment Initiative

UN Net Zero Banking Alliance

Bankers for Net Zero

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Please see previous

Yes No

City RegionEducational institutions

Country-specific entity

Am I a business?

Cities Race to Zero Under2 Coalition Race to Zero for Universities and

Colleges

Japan Climate Initiative

Am I a…

Join as an actor

Chambers for Climate

Chambers of commerce

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What benefits are the participants getting?

• Target essential component of long term climate strategy that considers risks and opportunities from transition to low carbon economy

Aligning business strategy with low carbon economy

• Climate action efforts will be recognised as credible and science-based which can boost shareholder and investor confidence

Greater climate strategy credibility and investor confidence

• Actively play a role in 2021 as the most decisive year in climate action history • Recognition of company climate action can strengthen reputation with broader

stakeholders

Improved company brand and reputation

• Signal to policymakers that large emitters are planning to make substantial emission reductions

• This can help governments scale up their climate ambition in advance of COP26

Supporting scale up of government climate ambition

• Join a supportive community spanning regions and sectors, with whom to share tools and knowledge

• Receive support every step of the wayOngoing support

Join the Race to Zero through the SBTi Business Ambition for 1.5°C Campaign

UKGBC Roundtable

11th August 2021

Olwen Smith,

UK & WW Regional Lead, Net Zero Campaigns, CDP/SBTi

OFFICIAL

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THE SCIENCE BASED TARGETS INITIATIVE (SBTi)

In collaboration with

Partner Organizations:

SCIENCE BASED TARGET-SETTING JOURNEY

DAY 1 24 MONTHS

Company submits a

letter establishing

its intent to set a

science-based

target

Company works on

an emissions

reduction target in

line with the SBTi

criteria

Company presents

the target to the

SBTi for official

validation

Company

announces the

target and inform

stakeholders

Company report its

wide emissions and

progress against

targets on an

annual basis

AFTER

APPROVAL

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HOW TO COMMIT VIA BUSINESS AMBITION FOR 1.5°C

1. Sign the Business Ambition for 1.5°C commitment letter and

submit it to commitments@sciencebasedtargets.org.

2. By joining, organizations are also joining the UNFCCC Race

to Zero.

3. By joining, companies commit to follow the SBTi step-by-step

process to set GHG emissions reduction targets in line with

SBTi Criteria and Recommendations.

4. Companies commit to policy advocacy positions consistent

with a 1.5°C future.

Commitment Letter

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WHAT DO COMPANIES COMMIT TO?

CHOOSE ONE OR BOTH OPTIONS

Commitment Letter

Option 1 – 1.5°C science-based emissions reduction targets: My company commits to set science-based emissions reduction targets across all scopes, in line with 1.5°C emissions scenarios and the criteria and recommendations of the Science Based Targets initiative.

Option 2 – Net-zero science-based emissions reduction targets: My company commits to a) set a long-term science-based target to reach net-zero value chain GHGs emissions by no later than 2050 and to b) set interim science-based targets across all relevant scopes and in line with the criteria and recommendations of the Science Based Targets initiative.

→ By ticking both options, companies are committing to the

highest level of ambition in the short and long-term.

BUSINESS AMBITION FOR 1.5°C IN NUMBERS

21#OurOnlyFuture

677 companiesIn 47 countries

Across 48 sectors

With 16+ million employees

112

35

165

360+

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▪ Asahi

▪ Suntory

▪ Olam

▪ General Motors

▪ Walmart

▪ Pfizer

▪ Natura & Co

▪ JBS

▪ Grupo Bimbo

• L'Oréal

• National Grid

• Volvo Cars

• Holcim

75+

Value chain emission reductions:

1. Near term science-based

targets: Companies must set 5-10 year

targets to reduce value chain emissions in

line with limiting warming to 1.5°C.

2. Long term science-based target:

Companies must set targets to reduce

emissions to a level consistent a state of

global net-zero.

Compensation* & neutralisation:

3. In the transition to net-zero: Companies

are encouraged to compensate for

remaining emissions.

4. At net-zero: Companies should move

from compensation to removals as they

get closer to net-zero to neutralise any

residual emissions that cannot be

eliminated. Companies cannot claim net-

zero until their long term science-based

target is reached and residual emissions

are neutralised.

KEY ELEMENTS FOR REACHING NET ZERO

1.5°C-aligned

emissions pathway

Em

iss

ion

s (

tCO

2e

)

2

Carbon removals

Gross GHG emissions in the

value-chain

Compensation activities

Net-zero emissions

1

34

By 2050 at the latest

5 to 10 years

Science-

based

emission

reduction

targets

Net-zero

commitment

* The term

compensation is

currently under review

and is being used as a

placeholder

FEATURES OF THE SBTI’S NET-ZERO FRAMEWORK

Does not rely on offsetting, but looks to incentivise climate finance.

Ensures that in the long-term residual emissions (about 5% of current energy and industry-related emissions) are effectively neutralised with removals.

Short and long-term targets lead to a level of abatement that is consistent with 1.5˚C. This means that many activities will fully decarbonise by the time of net-zero.

Long-term science-based targets cover all relevant emissions (95% of Scope 1 & 2 and 95% of Scope 3).

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LEARN MORE ABOUT SCIENCE BASED TARGETS

• Consult the SBTi Resources

• SBTi Criteria and Recommendations

• Use the SBTi tool including scope 3 tool to model your targets

• Take the new UNGC E-Learning course on SBTs here

• Watch our new SBTi Net-Zero FAQ videos here

UKGBC - Together for a better built environment

Questions & Answers

UKGBC - Together for a better built environment

Case Study One

Multiplex, Pavan Patel

UKGBC - Together for a better built environment

Case Study Two

Holcim, Antonio Carillo

UK Green Building Council EventHolcim Case Study

11th August

ANTONIO CARRILLO - HEAD OF CLIMATE AND ENERGY

| UK Green Building Council Event | Antonio Carrillo | © Holcim 2021

FAST FACTS ABOUT HOLCIM

>70 countries 2,300 operating sites ~72,000 employees 26.7billion CHF net salesLike-for-like

Net Zeropledge

SBTivalidated 2030 targets

ESGSustainalytics rating

Green Solutions1/3 of our sales

Global R&D

organization - 6 hubs worldwide

300 Scientists

In green construction

1,500 Patents

In green construction

100+ startupsopen innovation ecosystem

The world’s global

leader in building

solutions

Leading the way in

sustainability

#1 R&D

organization

in its industry

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| UK Green Building Council Event | Antonio Carrillo | © Holcim 2021

DID YOU KNOW?

80% of the population is expected to live in cities by 2050

Today 1.6 billion people lack adequate housing

3 billion people are expected to need affordable housing by 2030

The world is building the equivalent of New York City every month

Concrete is the second most used material after water

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| UK Green Building Council Event | Antonio Carrillo | © Holcim 2021

AT THE FOREFRONT OF DECARBONIZING OUR INDUSTRY

Construction

~38% world's

greenhouse gas

emissions

Cement 8% world’s greenhouse

gas emissions

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| UK Green Building Council Event | Antonio Carrillo | © Holcim 2021

AT THE FOREFRONT OF DECARBONIZING OUR INDUSTRY END-TO-END

OPERATIONS PRODUCTS BUILT

ENVIRONMENT

32

| UK Green Building Council Event | Antonio Carrillo | © Holcim 2021

LEADING THE WAY IN OUR INDUSTRY’S DECARBONIZATION

Becoming a net zero company with industry’s most

ambitious 2030 climate targets in line with Paris

Agreement

Taking a rigorous science based approach with targets

validated by the Science-Based Targets initiative

(SBTi)

Working with Science Based Target initiative (SBTi) on

industry’s first cement roadmap for a 1.5°C future

and to publish the industry’s first climate

transition report

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| UK Green Building Council Event | Antonio Carrillo | © Holcim 2021

All indirect

emissions

SCOPE 3SCOPE 2SCOPE 1

Fuels combustion

Cement production

Raw materials decarbonation

Cement production

Energy generation

Aggregates and RMX operations

25% 20%5%2.5%

0.5%

47%

HOLCIM CO2 FOOTPRINT

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| UK Green Building Council Event | Antonio Carrillo | © Holcim 2021

800

700

600

500

1990 2006 2020 2022 2030

550

2018

555576

35

610

475

2022Target

2030Target

2050 and beyond

Holcim performance

Sector average

Kg C

O2 N

et / t cem

entitious

OUR PATHWAY TO NET ZERO

Holcim will reduce scope 1 CO2

emissions to a target consistent with a

net-zero pathway endorsed by SBTi

| UK Green Building Council Event | Antonio Carrillo | © Holcim 2021

Getting ready to scale up CCUS technologies

Accelerating green solutions

Expanding wind turbines and solar panel farms

Driving efficiency from automation to AI

Maximizing traditional levers

Carbon capture

Green products

Clinker factor and alternative fuels

Renewable energy

1990 2050

and beyond

2020 2030 204020102000

Plants of tomorrow

OUR BUILDING BLOCKS TO NET ZERO

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| UK Green Building Council Event | Antonio Carrillo | © Holcim 202137

DECARBONIZING OUR PRODUCTS

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UKGBC - Together for a better built environment

Questions & Answers

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