Holcim launch Strategy 2025 ‘Accelerating Green Growth’
Company sets out strategy to become global leader in innovative and sustainable building solutions
HOLCIM have announced ‘Strategy 2025 – Accelerating Green Growth’ to become the global leader in innovative and sustainable building solutions, following the overachievement of ‘Strategy 2022’ one year in advance.
With ‘Accelerating Green Growth’, the company aims to achieve profitable growth across all its businesses, fuelled by sustainability and innovation. Holcim plan to accelerate the expansion of their Solutions & Products business to reach 30% of Group sales, positioning the company in the most attractive segments of the construction value chain with new technologies.
Chief executive officer Jan Jenisch said: ‘We delivered what we promised with our Strategy 2022 one year in advance, setting strong foundations for our next era of growth. With our new level of performance, we have the firepower to invest in Solutions & Products to make it 30% of our company, while leading the way in green building solutions.
‘With our ‘Accelerating Green Growth’ strategy, we are ready to seize the opportunities ahead, on our way to become the global leader in innovative and sustainable building solutions.’
Holcim’s new strategy has four value drivers:
Holcim plan to accelerate growth across all their markets with leading profitability and cash flow. Profitable growth will be driven by innovative building solutions, ranging from ECOPact green concrete to energy-efficient roofing systems. The company says it will lead cement’s green transformation with solutions such as ECOPlanet, including the world’s first cement incorporating 20% construction and demolition waste.
Holcim will further fuel their growth with bolt-on acquisitions in mature markets in the aggregates and ready-mixed concrete businesses. Strengthening its performance, the company will also scale up digitalization across its value chain, from its operations and distribution to its customer experience.
Expanding Solutions & Products
Holcim plan to reach 30% of their Group net sales in Solutions & Products by expanding their range of integrated solutions and systems, from construction and energy efficiency to repair and refurbishment, building on their acquisition of Firestone Building Products, a global leader in roofing systems, as a new growth and innovation engine for the company.
Leading in sustainability and innovation
Sustainability is at the core of Holcim’s strategy, with the industry’s first 2050 net-zero targets, endorsed by the Science Based Targets initiative (SBTi). The company plans to remain at the forefront of green building solutions, with 25% of ready-mixed concrete net sales coming from ECOPact.
Leading the circular economy, Holcim will recycle 75 million tonnes of materials across their business, including 10 million tonnes of construction and demolition waste by 2025.
The company will also continue to deploy smart technologies, from 3D printing using 70% less materials to green mineral components such as calcined clay, and will further develop next-generation technologies, including 30 pilot projects in carbon capture, utilization, and storage, in line with Holcim’s target to operate at least one net-zero plant by 2030.
Delivering superior performance
Holcim’s ‘Strategy 2025 – Accelerating Green Growth’ financial targets are: 3–5% net sales growth, like for like; over-proportional increase in recurring EBIT, like for like; 45% cash conversion; 10% return on invested capital in 2025; and ratio of net financial debt to EBITDA of under 1.5x in 2025.
The strategy includes ambitious 2025 sustainability targets in line with Holcim’s net-zero roadmap, validated by the SBTi: 25% of ready-mixed concrete sales from ECOPact, with 30–100% lower CO2 footprint; 10 million tonnes of construction and demolition waste recycled in the company’s products and 75 million tonnes of recycled materials overall; green capex of CHF500 million; and more than 40% of financing agreements linked to sustainability goals.
Holcim say they will deliver these results by fostering a high-performance culture whilst operating at the highest level of ethics and integrity.