Dangote Cement’s commitment to environmental disclosures and sustainability is yielding the desired results as its Carbon Disclosure Project (CDP) rating was raised from B- to B.
Environmental sustainability issues have become major issue due to the threat they constitute to the ecosystem and this has brought about the need for companies to expand the scope of responsibility and accounting disclosures.
An expanded responsibility to disclose efforts of organisations toward placating environmental impact of their operations would influence management attitudes and behaviour, increase transparency, precipitate plausible dialogue between the firms and environment and improve performance. World-wide, appreciable efforts have been made by different reporting jurisdictions to ensure that corporate organisations disclose outcome of their business operations with significant environmental impact.
Sustainability reporting disclosure refers to a company’s economic, social and environmental sustainability activities. In the process of transforming the global economy, sustainability reporting disclosure has evolved into a potent tool for boosting company growth and performance by preserving stakeholder trust.
Therefore, sustainability disclosure will be crucial to creating corporate value and the company’s competitiveness, as well as contributing to sustainable development. Investors believe that companies with a high level of sustainability disclosure will also have good performance by enhancing the company’s social reputation, reducing agency costs, and boosting customer loyalty.
Dangote Cement recently has had its Carbon Disclosure Project (CDP) rating raised from B- to B in recognition of the cement producer’s commitment to climate change. The rating upgrade indicates that Dangote Cement has addressed the environmental impact of its business and ensures good environmental management. This upgrade demonstrates the continued efforts made by the company to increase its levels of non-financial disclosure and improve its sustainability reporting, said Dangote Cement in a statement.
In 2022, for the fourth time, Dangote Cement submitted to the CDP, one of the world’s leading research groups focused on climate change. Dangote Cement has received two conseACor the progress we are making in our environmental disclosures and sustainability. The CDP rating upgrade clearly illustrates the growth we have achieved in our commitment to transparency on climate and environmental issues.
“This year, our Alternative Fuel Project has reached an advanced stage and aims to leverage waste management solutions and reduce CO2 emissions. As at 9M22, we co-processed 101,553t of waste representing a 77 per cent increase over last year.
“We understand the impact of social and environmental factors on our operating environment and believe that measuring and reporting our activities transparently and consistently is a crucial component in transforming our ecosystem. At Dangote Cement, we will continue to take coordinated steps towards transparency on environmental issues.”
The company, in its 2021 annual report, said: “our Environmental Pillar defines our ways of entrenching environmental sustainability by identifying, measuring and mitigating actual and potential environmental impacts of operations.
“Our goal is continuous improvement of performance on energy efficiency, waste management, water consumption, greenhouse gas emissions. The business leverages opportunities in environmental stewardship, such as efficiencies in alternative fuel, and the circular economy model.”
On creating sustainable impact in host communities, Dangote Cement noted that, “our efforts to deliver sustainable and inclusive outcomes have seen us maintain strong partnerships with our different categories of stakeholders including our host communities.
“Through mutual collaboration, we develop strategic initiatives that align with our business priorities and meet the needs of our host communities. In the year under review, our social investment initiatives cut across education, health, economic empowerment, infrastructural support to host communities, environmental sustainability initiatives among others.”
Head, Sustainability, Dangote Cement, Igazeuma Okoroba stated that, “as a member of the Global Cement and Concrete Association (GCCA), we join the collective commitment of the world’s leading cement and concrete companies to fully contribute to building the sustainable world of tomorrow. In confirmation of our commitment to climate action and continuous improvement process for reaching sustainability goals in 2021, the Carbon Disclosure Project (CDP) raised the Company’s rating.
“We are pleased that our efforts are being recognised locally and globally but we continue to strive to improve on our environmental, social and governance (ESG) processes.”
Okoroba said, the appreciation goes to the employees, customers, investors, suppliers and communities who have contributed to the sustainability outcome presented in the document, saying, the sustainability section of the report is organised in three main sections of Environmental, Social and Governance (ESG) to reflect the Company actions and the data supporting its 2021 sustainability performance.
Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. A fully integrated quarry-to-customer producer, the cement company has a production capacity of 35.25Mta in its home market, Nigeria. Obajana Plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta; Gboko plant in Benue state has 4Mta; and Okpella Plant in Edo state has 3Mta. Through its recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries.
Dangote Cement has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).