Page 130 - Sigmaroc Annual-Report 2023

SIGMAROC ANNUAL REPORT 2023 STRATEGIC REPORT
TCFD Report
KEY OPPORTUNITIES
Four key climate-related financial opportunities that could have a financial impact on the Group have been identified:
Opportunity
1. Improved operational efficiency
2. Transition to green electricity
3. Increased market share in products aiding the transition to a green economy
4. Resilience through innovation
Type
Primary potential financial impact
Time horizon
Likelihood
Location or service most impacted
Metrics
Resource Efficiency
Reduced operating costs
Short/Medium
High
Global
• Energy intensity
• Resource efficiency
1. Improved operational efficiency
Reducing energy consumption through a programme of efficiency and carbon reduction initiatives may decrease operating costs, increase operating margins and mitigate against the cost of future carbon pricing.
Operational efficiency improvements have already been introduced across the Group and continue to be implemented both through dedicated programmes and business-as-usual activities. Examples include:
• Metering and monitoring of fuel and electricity consumption;
• Limiting machinery idling – through software analysis and optimisation of shift patterns;
• Switching to more efficient fuels, such as the transition from coal and oil to biofuel and recycled fuel in the North East Region;
• Electrification – such as the replacement of diesel- powered water pumps and forklifts with electric alternatives;
• Intensity innovations – such as trials of low temperature asphalt;
• Efficiency upgrades of machinery;
• Consolidation of operations to improve efficiencies.
Strategy to capitalise
SigmaRoc is targeting energy intensity reductions of 2.5% by 2030 from a 2021 base year, for 100% of all manufactured products to utilise waste/recycled materials by 2025, and for 100% utilisation of all production materials by 2027. These targets are in excess of operational efficiency improvements that will be made as part of business-as-usual activities, such as the upgrade of machinery at the end of its lifespan to more efficient models. Efficiency improvements will increasingly be aided by technological advancements in the future.
2. Transition to green electricity
Transition to green electricity, both through purchase of renewable grid electricity and through generation of renewable electricity onsite, presents another opportunity to
Energy Source
Reduced operating costs
Medium
High
Global
• Energy intensity
• % renewable energy
consumption
Markets
Increased sales
Medium
High
Global
• % of products that can be
manufactured through “green” processes (e.g. use of cement alternatives in Greenbloc range)
Resilience
Reduced operating costs
Medium
Medium
Global
• New products to market
• Innovation spend including R&D and technology such as MEVO
• FTE hours dedicated to
innovation