(AOF) – Saint-Gobain has signed a power purchase agreement (PPA) with the leading energy supplier in Spain, Endesa. This 11-year agreement will come into effect in 2024, and will cover around 55% of Saint-Gobain’s electricity needs in Spain. The electricity supplied by Endesa will be generated by its wind, solar and hydroelectric sites.
This agreement will reduce CO2 emissions by nearly 39,000 tonnes per year.
This is the second renewable electricity supply agreement signed in Spain by Saint-Gobain. Combined, these two agreements will cover 65% of the Group’s electricity needs in Spain. This is an additional step in the fight against global warming, in line with the Group’s objective of achieving carbon neutrality by 2050.
Under this agreement, Endesa will supply Saint-Gobain with 150 GWh of renewable energy per year, the equivalent of supplying 43,000 Spanish homes with renewable energy each year.
This agreement comes as the Group recently signed two major renewable electricity supply agreements in Poland and North America, bringing the share of renewable electricity to more than 60% for the entire Group. It follows the recent approval by the Science Based Targets initiative (SBTi) of the Group’s long-term targets for reducing greenhouse gas emissions, SBTi deeming them to be in line with its new Net-Zero Standard and the agreement of Paris on the climate.
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Key points
– World leader in housing materials, created in 1665;
– Turnover of €44.2 billion divided into 5 branches, Northern Europe for 34%, Southern Europe & Africa (including France) for 32%, Americas for 13% and High performance for 15%;
– Activity 54% intended for renovation and infrastructure (52%), ahead of new residential (22%) or industrial (10%), mobility (7%) and other industries;
– Business model based on a complete portfolio of brands and a solution-based approach: productivity gains for construction professionals, well-being for the end user and tailor-made performance & innovation for the industrial client;
– Split capital (8.3% for employees), Pierre-André de Chalendar, chairing the 14-member board of directors, Benoît Bazin as general manager;
– Solid balance sheet with net debt of €8.3 billion, or 36% of shareholders’ equity, at the end of June.
Challenges
– “Grow & Impact” strategic plan launched in October 2021:
– growth superior to the markets
– offer of integrated, differentiated solutions for the decarbonization of construction,
– industrial investments of around €1.5 billion;.
– Innovation strategy with 3 principles, anticipation of standards, integration of digital in production and customer journeys and sustainable growth:
– structured by 20 platforms shared by the industrial and construction client businesses: smart materials, robotization, lightening of materials, reduction of the carbon footprint in manufacturing processes, etc.,
– customer experience with 90% of sales covered by PIM, “digital pricing” accelerating sales;
– internally, Open program in the form of a “Digital journey”, Datala, partnerships with start-ups led by NOVA, etc.,
– externally, partnerships with research or industrial centers, such as Ecocem, participation in EAGLE, WOOL2LOOP, etc. projects, and co-development with customers;
– Environmental strategy integrated into the product offer, 72% of the portfolio contributing to the reduction of CO2 emissions, aiming for total neutrality in 2050 and with 2030 objectives:
– 33% reduction in CO2 emissions vs 2017 via a €1 billion allocation,
– research in solid oxygen fuel cells,
– circular economy avoiding the extraction of solid raw materials,
– launch of green loans;
– Optimization of the group’s profile with disposals, mainly in distribution, and acquisitions, in construction chemicals with Chryso and GPC, wood construction systems with Panofrance and Rockwool India, exterior materials with the American company Kaycan …
Challenges
– Cyclical nature of the activity, with 4/5ths of sales in the construction sector;
– Inflation of raw materials, transport and energy, for a cost of €3 billion in 2022 more than offset by increases in selling prices and by hedging energy costs;
– Impact of the Russian-Ukrainian conflict on Russian gas supplies: plans to continue operations in Germany and the Czech Republic and manufacturing substitution between countries;
– Energy sobriety: additional savings in European factories, reuse and recycling, production of lighter products, etc.;
– After a 15.6% increase in turnover at the end of September, confirmation of the 2022 objective of sales growth exceeding that of the market, industrial investments of €1.8 billion and further growth in operating profit;
– Redemption of shares.
CSR permeates the sector
Unicem created a CSR label in 2018, which met with some success: in concrete, nearly 700 sites, i.e. half of the activity in France, have committed to the approach, as well as 400 sites constituting almost 30% of the turnover of French quarries. This approach encompasses several initiatives such as reducing the carbon footprint of products or improving relations with suppliers. Great efforts have been made in terms of recycling, which now reaches 70% in the sector, compared to about 50% ten years ago, and while it was almost non-existent thirty years ago. However, Unicem would like the public authorities to strengthen their support for this CSR approach through the use of labeled companies.