The building materials giant says the framework will enable it to issue green financing instruments aligned with the International Capital Market Association (ICMA) Green Bond Principles and the Loan Market Association Green Loan Principles.
Under the framework, CEMEX intends to allocate the net proceeds from the issuances to finance eligible green projects in areas such as CO2 emissions reduction, clean electricity and energy efficiency, clean transportation, water management, air quality, circular economy, and waste management.
CEMEX says it has "a steadfast commitment" to lead in climate action and to achieve net-zero carbon emissions globally in concrete by 2050. The company adds that the framework further aligns its financing strategy to its corporate sustainability commitments, as outlined in its Future in Action programme.
“After launching our Sustainability-Linked Financing Framework last year, it is only natural for us to build on that initiative with additional sustainable finance innovation in the form of the Green Financing Framework, that will enable the building of a more resilient future for all,” said Maher Al-Haffar, CEMEX's chief financial officer and founding member of the UN Global Compact CFO Coalition for the SDGs.
The framework has been subject to an independent external assessment by Sustainalytics, a provider of ESG (Environmental, Social, and Governance) research and analysis. Sustainalytics issued a second party opinion confirming that the CEMEX Green Financing Framework is credible and impactful and aligns with the Green Bond Principles 2021 and the Green Loan Principles 2021.
CEMEX stakeholders will have the ability to assess CEMEX’s progress on the allocation of all net proceeds related to the framework and their environmental impact through an annual update in its Integrated Report.
The Framework and Sustainalytics’ Second Party Opinion can be found here.
