Why Performance with Integrity Is Key for Holcim

Holcim’s commitment to ethical sustainability targets

Holcim has built its business strategy around a straightforward proposition: sustainability and profitability work together, not against each other. The global building materials company has committed to science-based net-zero targets while simultaneously growing its market position through low-carbon products. For UK businesses watching how major industrial players navigate the transition to net zero, Holcim’s approach offers practical evidence that decarbonisation can drive commercial success rather than simply representing a compliance cost.

The company’s NextGen Growth 2030 strategy aims to generate over half of its net sales from sustainable building solutions. This isn’t a marginal commitment. Holcim plans to recycle more than 20 million tons of construction demolition materials annually by 2030, three times its 2024 volumes. Meanwhile, it targets a 30% reduction in Scope 1 emissions per ton of cementitious material compared to 2020 levels, bringing emissions below 400 kg CO₂ net per ton.

These targets have been validated by the Science Based Targets initiative, which assesses whether corporate climate commitments align with limiting global warming to 1.5°C. The validation matters because it provides independent verification that Holcim’s plans are consistent with climate science, not just aspirational statements. The company aims for net-zero across all scopes by 2050, including the challenging Scope 3 emissions from product use.

Product innovations reducing embodied carbon

Holcim launched ECOPlanet cement in 2025, incorporating 20% recycled materials and achieving a 39% lower carbon footprint compared to traditional CEM I cement. The reduction against CEM IIa, a commonly used variant, stands at 28%. These products demonstrate that lower-carbon alternatives can meet technical performance requirements for major construction projects.

The company supplies 300,000 tons of high-performance cement for Switzerland’s Second Gotthard Road Tunnel, scheduled for completion in 2030. This project shows how sustainable materials can work in demanding applications where structural integrity and durability are non-negotiable. Similarly, Holcim’s ECOPact ready-mix concrete range offers specifiers a lower-carbon option without compromising on strength or longevity.

In 2018, Holcim pioneered Susteno, marketed as the world’s first circular cement, in Switzerland. Circular cement uses industrial by-products and recycled materials to replace virgin raw materials, reducing both emissions and resource extraction. The ECOCycle technology processes construction and demolition waste into usable aggregates, creating a closed-loop system that addresses the industry’s substantial waste problem.

Beyond carbon reduction, Holcim develops products for climate adaptation. Its Hydromedia permeable concrete helps manage surface water and reduce urban flooding risks. Bioactive concrete incorporates materials that support plant growth and biodiversity in built environments. These innovations address the dual challenge of reducing construction’s environmental impact while building resilience into infrastructure.

Operational changes driving emissions reductions

Holcim’s strategy for reducing Scope 1 and 2 emissions by 2030 involves several technical approaches. Lowering the clinker factor reduces the proportion of clinker in cement, as clinker production generates most of cement’s carbon emissions through the chemical process of heating limestone. Substituting alternative fuels and raw materials decreases reliance on fossil fuels in kilns. Improving energy efficiency across operations cuts overall energy demand.

The company plans to scale carbon capture, utilisation, and storage technology across its facilities. From 2030, it aims to produce 8 million tons of near-zero cement annually through 17 flagship projects. These projects represent significant capital investment in new technology and process modification. However, they also position Holcim to meet increasingly stringent building regulations and client requirements for low-carbon materials.

In Belgium, Holcim’s Obourg plant will feature the company’s first floating photovoltaic installation from 2025, supplying up to 15% of the facility’s electricity. This demonstrates how industrial sites can integrate renewable energy generation into existing operations. For energy-intensive manufacturing, even partial renewable supply reduces both emissions and exposure to fossil fuel price volatility.

Water management forms another operational priority. In November 2025, the Accountability Accelerator validated Holcim’s freshwater reduction targets for specific water-stressed basins. In the Haine basin in Belgium, the company commits to a 38% reduction in freshwater withdrawal by 2035 compared to the 2020-2024 average, representing 2.5 million cubic metres. Greek operations in the Cyclades target a 23% reduction by 2030, equivalent to 53,082 cubic metres. Spanish facilities in the Onyar basin aim for 16% reduction by 2030, saving 174,128 cubic metres.

These basin-specific targets matter because they address local water stress rather than applying generic global reductions. Industrial water use can significantly impact local communities and ecosystems in water-scarce regions. Therefore, context-specific commitments demonstrate more meaningful environmental stewardship than company-wide averages that might mask hotspots of high consumption.

Commercial logic behind sustainability investment

Holcim CEO Miljan Gutovic stated at the World Economic Forum 2026 in Davos that government support through standards and procurement could accelerate the scaling of sustainable construction solutions. This highlights a crucial dynamic for UK businesses: regulatory requirements and public sector procurement criteria increasingly favour low-carbon products and suppliers with credible sustainability credentials.

Public procurement represents a substantial market. Consequently, suppliers who can demonstrate verified emissions reductions and sustainable practices gain competitive advantages. Procurement Policy Note 06/21 already requires UK central government suppliers to publish carbon reduction plans. Local authorities and private sector clients increasingly adopt similar requirements. Holcim’s approach suggests that investing in sustainability capabilities opens market opportunities rather than simply meeting compliance thresholds.

The financial case for sustainable products depends partly on market demand. Holcim’s target of generating over 50% of net sales from sustainable solutions by 2030 implies confidence that clients will pay for lower-carbon alternatives. This confidence appears grounded in regulatory trends, corporate sustainability commitments from major developers and contractors, and growing awareness of embodied carbon in buildings.

For manufacturers and industrial businesses, Holcim’s experience demonstrates several commercial principles. First, sustainability investment can differentiate products in competitive markets. Second, operational efficiency and emissions reduction often align, as energy efficiency reduces both carbon and costs. Third, circular economy approaches can create new revenue streams from waste materials while reducing raw material costs. Fourth, validated targets provide credibility with clients, investors, and regulators.

Essential facts for UK construction supply chains

Several key points matter for businesses involved in UK construction and building materials:

• Holcim has committed to Science Based Targets initiative validated goals for net-zero across all scopes by 2050, with interim targets for 2030 including emissions below 400 kg CO₂ net per ton of cementitious material.
• The company’s ECOPlanet cement achieves 39% lower carbon footprint compared to traditional CEM I cement through incorporation of 20% recycled materials.
• Holcim plans to recycle over 20 million tons of construction demolition materials annually by 2030, three times its 2024 volumes, using ECOCycle technology.
• The NextGen Growth 2030 strategy targets over 50% of net sales from sustainable building solutions, demonstrating expected market demand for low-carbon products.
• Basin-specific freshwater reduction targets validated in November 2025 include 38% reduction in Belgium’s Haine basin by 2035 and 23% reduction in Greece’s Cyclades by 2030.
• Seventeen flagship projects aim to produce 8 million tons of near-zero cement annually from 2030 using carbon capture, utilisation, and storage technology.

Implications for UK businesses in construction sectors

UK companies supplying construction materials or services face growing pressure to demonstrate credible sustainability credentials. Client requirements, tender criteria, and regulatory standards increasingly specify carbon performance alongside traditional factors like cost, quality, and delivery. Holcim’s experience suggests that businesses which integrate sustainability into core operations rather than treating it as separate corporate social responsibility activity gain commercial advantages.

Supply chain transparency becomes increasingly important. Major contractors and developers need data on embodied carbon in materials to meet building regulations and client requirements. Suppliers who can provide verified environmental product declarations and transparent emissions data make procurement easier for their clients. Conversely, businesses unable to demonstrate sustainability performance risk exclusion from tenders and frameworks.

Investment in lower-carbon products and processes requires upfront capital but can generate returns through market access and operational efficiency. Holcim’s substantial investment in carbon capture technology and alternative materials reflects confidence in future market conditions. For smaller businesses, the scale of investment differs, but the principle holds: sustainability capabilities increasingly determine competitiveness rather than representing discretionary spending.

Circular economy approaches offer practical opportunities for many businesses. Construction and demolition waste represents a significant volume, and companies that can process this material into usable products address both waste disposal challenges and raw material costs. Holcim’s ECOCycle technology demonstrates this at industrial scale, but similar principles apply to smaller operations. Businesses that develop waste processing capabilities or partnerships can access lower-cost materials while improving environmental performance.

The emphasis on validated targets matters for credibility. Science Based Targets initiative validation and independent verification of water reduction goals provide assurance that commitments are meaningful. UK businesses setting their own targets should consider similar validation to differentiate genuine action from greenwashing. Our net-zero program supports carbon reporting compliance and helps businesses develop credible reduction strategies aligned with regulatory requirements.

Water management might seem less relevant to UK businesses than to operations in water-stressed regions. However, environmental permits increasingly include water use conditions, and abstraction licences face tighter controls. Businesses with high water consumption should assess their exposure to regulatory changes and consider efficiency improvements that reduce both environmental impact and operational costs.

Strategic positioning for regulatory changes

Holcim’s proactive approach anticipates regulatory direction rather than reacting to mandated requirements. This strategy provides time to develop capabilities, test solutions, and spread investment costs. UK businesses face similar choices about timing: wait until regulations compel action or build sustainability capabilities ahead of requirements.

Building regulations continue to evolve towards lower embodied carbon. The Future Homes Standard and Future Buildings Standard will tighten energy performance requirements. Planning policy increasingly includes sustainability criteria. Therefore, businesses involved in construction need to track regulatory developments and assess implications for their products, services, and operations.

Public sector procurement represents a significant driver of sustainability requirements in the UK. Central government departments must evaluate suppliers’ carbon reduction plans under Procurement Policy Note 06/21. Local authorities increasingly adopt similar approaches. Consequently, businesses seeking public sector contracts need documented emissions data and credible reduction plans. Understanding what carbon reporting compliance involves helps businesses prepare for these requirements before they become barriers to tender participation.

Private sector clients also drive sustainability requirements. Major developers, retailers, and corporate occupiers set net-zero targets that cascade down supply chains. Suppliers who can demonstrate alignment with client sustainability goals become preferred partners. This creates commercial advantages beyond regulatory compliance. However, it requires businesses to understand client expectations and communicate their sustainability performance effectively.

Industry standards continue to develop, providing frameworks for measuring and reporting environmental performance. Product category rules for environmental product declarations establish consistent methodologies for calculating embodied carbon. Standards for circular economy practices help businesses demonstrate waste reduction and material efficiency. Engaging with these standards provides clarity about expectations and enables meaningful performance comparison.

Further Reading

Businesses seeking detailed guidance on construction sector sustainability can access several authoritative sources. The UK Green Building Council provides resources on embodied carbon reduction, whole-life carbon assessment, and net-zero buildings. Their framework for net-zero carbon buildings offers practical guidance for different building types and project stages.

The Construction Leadership Council publishes roadmaps and guidance on industry decarbonisation, providing context for how the sector approaches net-zero targets.

For water management, the Environment Agency provides guidance on abstraction licensing and water efficiency. Businesses with environmental permits should review the Environment Agency’s requirements for water use reporting and efficiency measures. The WRAP organisation offers resources on construction waste reduction and circular economy practices, including case studies and technical guidance.

The Science Based Targets initiative website explains the process for setting and validating corporate climate targets. Businesses considering science-based targets can access guidance on methodologies, sector-specific approaches, and validation requirements. Understanding this process helps assess the credibility of peer commitments and informs decisions about setting targets.

The Department for Energy Security and Net Zero publishes policy documents and consultations on building regulations, energy efficiency standards, and decarbonisation strategy. Monitoring these publications helps businesses anticipate regulatory changes and participate in policy development through consultation responses.