SDG engagement equity, Q2 2024 case study: Eagle Materials – Federated Hermes Limited

Federated Hermes Limited's Q2 case study looks at leading United States cement manufacturer Eagle Materials.

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  • Cement manufacturing is unavoidably carbon intensive. The transformation of calcium carbonate in limestone into calcium oxide is a vital step to produce clinker – a key component in cement – which is responsible for about 60% of total cement-manufacturing emissions.
  • According to industry associations, three principal drivers are needed to support cement decarbonisation: increased use of alternative fuels; reducing clinker content; and carbon capture, utilisation and storage technology.
  • Eagle Materials has taken a number of positive steps, but a marked improvement is still required – in terms of its own production and across the industry at large – if this essential commodity is to support rather than hinder national and global efforts to achieve net-zero emissions.

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