Bulletin: HeidelbergCement Presents Ambitious CO2 Reduction Goals; Revised Financial Targets Leave Sufficient Rating Headroom

This report does not constitute a rating action. MILAN (S&P Global Ratings) May 27, 2022--S&P Global Ratings said that HeidelbergCement AG's revised financial targets through 2025 leave it enough headroom for the 'BBB' rating, and include ambitious carbon dioxide (CO2) reduction targets. The 2030 CO2 reduction targets raise the standard for the cement industry's decarbonization efforts. Still, we believe that, beyond 2030, it is hard to assess if the industry goal to achieve carbon neutrality is feasible, because a significant drop in emissions can only come with full-scale adoption of carbon capture use and storage (CCUS) and a bigger shift to recycled materials or low-clinker products. On May 24, HeidelbergCement updated its financial targets through 2025 and provided new decarbonization

...MILAN (S&P Global Ratings) May 27, 2022--S&P Global Ratings said that HeidelbergCement AG's revised financial targets through 2025 leave it enough headroom for the '###' rating, and include ambitious carbon dioxide (CO2) reduction targets. The 2030 CO2 reduction targets raise the standard for the cement industry's decarbonization efforts. Still, we believe that, beyond 2030, it is hard to assess if the industry goal to achieve carbon neutrality is feasible, because a significant drop in emissions can only come with full- scale adoption of carbon capture use and storage (CCUS) and a bigger shift to recycled materials or low-clinker products. On May 24, HeidelbergCement updated its financial targets through 2025 and provided new decarbonization targets for the decade. The company is looking to cut scope 1 net CO2 emissions to 400 kilograms per ton (kg/t) of cement by 2030, which is close to a 50% reduction versus 1990, and compares with a former commitment to reduce its scope 1 net CO2 emissions...

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