CEMEX announced the launch of the most comprehensive Sustainability-Linked Financing Framework in the building materials sector. The Framework sets CEMEX’s guiding principles when announcing new sustainability-linked financing instruments, comprising public bonds, private placements, loans, derivatives, working capital solutions, and other financing instruments. Sustainalytics, a leading independent firm that focuses on providing ESG research, ratings, and data to institutional investors and firms, approved the Framework’s alignment with the Sustainability-Linked Bond Principles, the International Capital Market Association’s Climate Transition Finance Handbook and the Loan Market Association’s Sustainability-Linked Loan Principles. Maher Al-Haffar, Chief Financial Officer, CEMEX, told the media that climate change is one of the major difficulties, and they would continue to address it as a significant part of their business strategy. CEMEX is committed to improving the role sustainable finance plays in its capital structure by potentially linking the cost of the financial instrument to the fulfilment of targets, directly aligning their corporate finance plan to sustainability commitments and further adding to a low-carbon future. The three indicators contribute to the attainment of the UN Sustainable Development Goals, and for each one, CEMEX has set 2025 and 2030 Sustainability Performance Targets (SPTs). KPI performance and corresponding SPTs will be verified by adequate external parties and be made available via CEMEX’s yearly Integrated Report. CEMEX has taken a bold step by adding three KPIs, an unusually high number for the building materials industry, in the Framework. This decision shows the confidence and commitment the firm has about its Climate Action targets. Chosen KPIs are net CO2 emissions per ton of cementitious product, clean electricity consumption and alternative fuels price. All of them were qualified by Sustainalytics as material, relevant, ambitious, and aligned with the climate action strategy of the firm. CEMEX’s 2030 aim of reaching less than 475 kg CO2 per ton of cementitious product is aligned with the Science-Based Targets initiative (SBTi) - Well Below two degrees, scenario, the most ambitious for the cement industry. This goal is currently in the process of validation. Additionally, the firm has established a 2050 goal of delivering net-zero concrete globally, aligned with the Paris Agreement. CEMEX recently declared that it signed the Business Ambition for 1.5 degree celsius commitment directed by the We Mean Business Coalition in partnership with the SBTi and the UN Global Compact. The firm also joined the Race to Zero Campaign of the UN Framework Convention on Climate Change. Image Source Also read: CEMEX to implement mp connect driver card by 2021 end