Construction and buildings account for 38% of the total global CO2 emissions and 35% of total energy use. Much of this energy-use in buildings is the result of heating and air-conditioning, lighting, information and communications systems, security and access systems, fire alarms, elevators, appliances, and indirectly through plumbing.
In most buildings, some of the energy used in heating and cooling the interior is wasted through windows. Windows, even when closed, are far less efficient than insulated walls at keeping room temperature in and outside temperature out - by a factor of ten or more.
High-performance glass solves this problem by replacing conventional plain glass. High-performance glass uses any of several technologies that can reduce heat flow through glass, including multiple layers, low-emissivity glass, tinted glass, and vacuum glazing.
High-performance glass is already widely adopted in wealthy countries. In the rest of the world, a faster and wider installation of high-performance glass can help reduce a substantial amount of GHG emissions by 2050:
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In 2018, 5 billion square meters of high-performance glass was installed in residential buildings, and 130 million sq. meters in commercial buildings
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By 2050, 13.7 billion sq meters should be installed in residential buildings and 7.5 billion sq meters in commercial buildings
If this scale can be achieved by 2050, high-performance glass can avoid 12.6 gigatons of emissions and save $3.9 trillion in energy costs over building lifetimes for an installation cost of $10.8 trillion.
About
CRH Plc (stock ticker: CRH) is an international group of diversified building materials businesses that manufactures and supplies a wide range of products for the construction industry. Headquartered in Dublin, Ireland, they operate in 29 countries and sell their products in Europe and the United States.
CRH's Role in Drawdown
CRH sells a long list of products for the construction industry. Their heavy-side materials include aggregates, cement, asphalt, ready-mix concrete, architectural concrete, and precast concrete. Their light-side products include glass and glazing systems, construction accessories, shutters and awnings, perimeter protection products, and network access products.
Many of these products (p. 26) help reduce carbon emissions from buildings. Some notable sustainability-enhancing products are their high-performance glass and glazing products that incorporate innovative thermal break technologies for superior thermal performance while letting in sunlight and allowing ventilation. They also include concrete that harnesses the thermal mass property for improved building energy efficiency.
CRH: What We Like
CRH is leading their industry’s response to the challenge of climate change through the Global Cement and Concrete Association’s 2050 Climate Ambition (p. 11) which aspires to deliver carbon neutral concrete by 2050.
To this end, CRH is currently partnering (p. 33) with a low-carbon cement technology manufacturer to pilot new technology that would allow for a 30-40% reduction in CO2 emissions during the manufacturing process.
Also as part of this process, they’re researching, developing and applying new technologies (p. 71) in areas including carbon capture, storage and use, re-carbonization, alternative materials and process changes that will be required to achieve this ambition. The use of 2.1 million tonnes of alternative fuels (p. 31) like biomass, solid recovered fuels, waste tires, solvents and used oil also helps CRH reach this goal.
Beyond these innovations, CRH has hit several of their previous sustainability targets in recent years achievements (p. 7):
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Avoided 1 million tonnes of CO2 emissions in 2020
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Reduced NOx emissions by 22% since 2006
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Reduced water intake by 59% through recycling
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Recycled 36.5 million tonnes of material in 2020
They have committed to going further toward sustainability by setting several targets for the rest of this decade:
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To reduce CO2 by 33%, to less than 520 kg net CO2 per tonne of cementitious products by 2030
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To increase their share of revenue from products with enhanced sustainability attributes to 50% by 2025
What We Want to See Improve
Reduce Absolute Emissions
We are impressed by CRH’s sustainability targets and achievements so far. But until now, the company has focused on reducing their carbon emissions intensity (carbon emissions per ton of products). We want them to set even bolder targets by focusing on absolute reductions by the end of the decade.
Accelerate Low-Carbon Cement Development
We are very excited about CRH’s initiative to innovate lower-emission cement. As such, we want them to speed up their innovation so that they can achieve the promised 30-40% reduction in carbon emissions during the manufacturing process. Beyond using alternative fuel, alternative materials, carbon capture, storage and use, we encourage CRH to explore other decarbonization techniques like the electrification of kilns.
Push Suppliers to Reduce Emissions
CRH has a large number of suppliers (p. 102) across different geographic areas and industries. And we are encouraged by their Supplier Code of Conduct (p. 3) that sets out their expectation for suppliers to “support a proactive approach” to energy optimization, resource efficiency, waste management and recycling. But we want CRH to go a step further by using more specific language around these expectations. In particular, we want to see CRH to nudge suppliers to reduce their GHG emissions within a well-specified near-term time frame.
Arcosa services wind farms and utilities to improve grid flexibility. It however makes more revenue from its storage, transportation, and construction products that serve the fossil fuel industry.
AECOM helps clients achieve net zero emissions in their buildings among other pro-climate projects, but it also works with many oil and gas companies. It is unclear what makes up a majority of its revenue.
Albemarle produces lithium compounds promoting energy storage, a Drawdown solution. It however makes more of its revenue from other compounds like bromine that have end-markets in the fossil fuel industry due to applications, such as oil and gas well drilling and completion fluids.
Avista produces 55% of its power from renewables, 43% from fossil fuels, and 2% from non fossil fuel combustion. While it passes the generation mix criteria of > 50% non fossil fuel sources, 9% of its power comes from coal and it has no plans to shut down its coal plants within the next 3 years.
Bloom Energy's Energy Servers can operate using both hydrogen and biogas, both climate solutions, but a majority of its Energy Server's use natural gas. This use of natural gas is considered fossil fuel revenue, particularly because we don’t want to lock in natural gas emissions by a commitment to weak transitionary infrastructure.
Babcock & Wilcox produces waste to energy and biomass solutions, both Drawdown solutions. It also works on carbon capture technologies, but not storage which we would define as fossil fuel revenue. A revenue breakdown is not present
BWX performs fabrication activities for missile launch tubes for US submarines, which fails the defense filter as this would be classified as weapons related.
Capstone Green Energy produces microgrids and microturbines with renewable applications, both of which are Drawdown solutions, but receives the majority of its revenue from application of its microturbines to fossil fuel industries.
Euro Tech Holdings does not produce any not leak detection or water conservation technologies and therefore fails our water distribution efficiency filter.
Cummins derives a very small part of its revenue from hydrogen production solutions and electrified power systems, but a much larger portion of its revenue is from ICE parts and oil & gas markets, both of which would be categorized as fossil fuel revenue.
CMS produces 62.73% of its power from fossil fuels, 19.92% from nuclear, 7.67% from mixed sources, and 6.65% from renewables. Even if all of the mixed sources were renewable, CMS would still not have >50% power from non fossil fuel sources.
Cooper sells healthcare products like contact lenses, fertility products, and contraceptives, but makes less than 50% of its revenue from contraceptives
Capstone Turbine produces microgrids and microturbines with renewable applications, both of which are Drawdown solutions, but receives the majority of its revenue from application of its microturbines to fossil fuel industries.
Cree sells materials products and RF devices used in military communications, which fails the defense filter because it sells something to the defense industry that is not a Drawdown solution.
China Recycling Energy conducts waste to energy operations, but also utilizes gas from coal mining, which is considered as fossil fuel revenue. A revenue breakdown is not present.
BioCorteva's products help maximize crop yield, not reduce food waste, leaving them without a Drawdown solutionceres' products help maximize crop yield, not reduce food waste, leaving them without a Drawdown solution
DuPont de Nemours has some end-markets in solar energy and LEDs, both Drawdown solutions, but derives a larger portion of its revenue from various products that have end-markets in the fossil fuel industry.
Centrais Elétricas Brasileiras - Eletrobrás produces 92.45% of its power from renewables, 3.89% from nuclear, and 3.66% from fossil fuels. While it passes the generation mix criteria of > 50% non fossil fuel sources, 0.68% of its power comes from coal and it has no plans to shut down its coal plants within the next 3 years.
Ecolab offers products that can help businesses conserve water, a Drawdown solution, but also sells products built specifically for the fossil fuel industry. It is unclear which it makes more revenue from
Consolidated Edison produces 52.5% of its power from fossil fuels, 37.5% from nuclear, 8.6% from renewables, and 1.3% from unknown sources. Even if all of the unknown sources were renewable, CE would still not have >50% power from non fossil fuel sources.
Empresa Distribuidora y Comercializadora Norte Sociedad Anónima did not provide complete enough power generation info to determine if they pass or fail the utility filter
Emerson Electric Co. produces smart thermostats, a Drawdown solution, but also sells certain products to the oil and gas industry. It is unclear which segment it makes more revenue from.
Enbridge derives some of its revenue from solar and wind energy, both Drawdown solutions, but receives the majority of its revenue from pipeline work for the natural gas industry, which is categorized as fossil fuel revenue.
Enel Américas produces 62% of its power from renewables and 38% from fossil fuels. While it passes the generation mix criteria of > 50% non fossil fuel sources, 3% of its power comes from coal and it has no plans to shut down its coal plants within the next 3 years.
Energizer Holdings, makes only batteries for household products and lighting products for flashlights and headlamps, neither of which are Drawdown solutions.
Eversource Energy produces 62.28% of its power from fossil fuels, 19.64% from renewables, 13.83% from non fossil fuel combustion, 4.24% from nuclear, and 0.01% from energy storage.
ESCO derives its revenue in part from promoting grid flexibility, a Drawdown solution, by enabling electric power grid operators to assess the integrity of high-voltage power delivery equipment. It however receives a larger portion of its revenue from products that have an end-market in commercial aerospace applications.
Ford Motor produces some EVs, a Drawdown solution, but receives the majority of its revenue from traditional ICE vehicles, which are categorized as fossil fuel revenue.
FuelCell energy makes hydrogen fuel cells, a Drawdown solution. They also sell carbon capture services (but not storage) to the oil and gas industry, which we categorize as fossil fuel revenue. A revenue breakdown between the two is not present
Franklin Electric does not produce any not leak detection or water conservation technologies and therefore fails our water distribution efficiency filter.
Whole Earth Brands makes plant-based consumer packaged goods, but it also makes flavored products used by the tobacco industry, thus failing the tobacco filter
Flexible Solutions International produces nitrogen conservation products, a Drawdown solution, but also produces products for the oil and gas industries. A revenue breakdown is not present
General Electric derived 19.4% of its revenue from wind energy, a Drawdown solution, but received 21.8% of its revenue from various products dependent on oil and gas, which is categorized as fossil fuel revenue.
General Motors produces some EVs, a Drawdown solution, but receives the majority of its revenue from traditional ICE vehicles, which are categorized as fossil fuel revenue.
Generac Holdings derives part of its revenue from the Drawdown solution of energy storage. It however has fossil fuel profucts and a large natural gas customer base that is not quantified and no revenue breakdown for that segment is present.
Genuine Parts sells auto parts and while it does seem to service the EV industry in part, its business is mostly oriented towards ICE vehicles. It even lists EV adoption as a risk to its business.
Granite Construction does not produce any not leak detection or water conservation technologies and therefore fails our water distribution efficiency filter.
Helios Technologies does not produce any not leak detection or water conservation technologies and therefore fails our water distribution efficiency filter.
Honda Motor produces some EVs, a Drawdown solution, but receives the majority of its revenue from traditional ICE vehicles, which are categorized as fossil fuel revenue.
Honeywell has an aerospace segment which is categorized as fossil fuel revenue that comprises a greater portion of its net sales than its production of smart thermostats, a Drawdown solution. They also fail the defense filter.
Hubbell derives a large part of its revenue from producing solutions that enhance Grid Flexibility, but also has customers in the gas industry whose portion of the revenue is not specified.
Hyliion Holdings derives its revenue by selling electrified and hybrid powertrain solutions, a Drawdown solution, but also sells powertrain systems that can be fueled with CNG, which is considered fossil fuel revenue. The revenue breakdown between these products is not provided.
IDACORP produces 59.8% of its power from renewables, 32.8% from fossil fuels, and 7.4% from mixed sources. While it passes the generation mix criteria of > 50% non fossil fuel sources even if the entirety of the mixed source power generation was from fossil fuels, 20.9% of its power comes from coal and it has no plans to shut down its coal plants within the next 3 years.
IES Holdings services both wind energy projects and solar projects, both Drawdown solutions. It also services refineries, which are categorized as fossil fuel revenue. It is unclear which takes up a greater portion of the revenue.
Littelfuse, sells products used in EVs and related infrastructure, but also has end markets in the traditional auto industry, as well as the oil and gas industry. A revenue breakdown is not present.
Limoneira 's Drawdown revenue comes from growing avocados, a perennial staple crop. It however derives the vast majority of its total revenue from other non-perennial crops.
Lindsay sells different irrigation systems and offers repair services for those systems. It also sells moveable barrier systems that help in many applications such as highway reconstruction.
Lyft theoretically enables rideshareing, a Drawdown solution, but in practice likely increases emissions due to drivers going further from their homes daily to service higher paying regions.
MDU produces 55.5% of its power from renewables, 25.6% from mixed sources, and 18.87% from renewables. Even if all of the mixed sources were renewable, MDU would still not have >50% power from non fossil fuel sources.
Montrose helps clients deal with water distribution issues among other pro-climate projects, but it also works with many oil and gas companies. It is unclear what makes up a majority of its revenue.
Mueller Industries does not produce any not leak detection or water conservation technologies and therefore fails our water distribution efficiency filter.
Mueller Water Products, sells water leak detection systems, a Drawdown solution, but also has an infrastructure segment that has some customers in the natural gas industry. A breakdown of that segment is not present.
NV5 helps clients achieve net zero emissions in their buildings and deal with water distribution issues among other pro-climate projects, but it also works with many oil and gas companies. It is unclear what makes up a majority of its revenue.
Northwestern produces 61% of its power from renewables and 29% from fossil fuels. While it passes the generation mix criteria of > 50% non fossil fuel sources, 20% of its power comes from coal and it has no plans to shut down its coal plants within the next 3 years.
Corning produces LED products and also emissions control products for the fossil fuel industry. It is unclear which is a greater percentage of the revenue.
Ocean Power Technologies utilizes ocean power to provide electricity, a Drawdown solution. But 87% of its revenue comes from servicing the fossil fuel industry.
Public produces 54.91% of its power from fossil fuels, 40.41% from nuclear, 3.84% from renewables, 0.81% from non fossil fuel combustion, and 0.02% from fossil fuels.
Pentair offers products that can help businesses conserve water, a Drawdown solution, but also sells products built specifically for the fossil fuel industry such as fracking fluids. It is unclear which it makes more revenue from.
Polar Power, manufactures DC power systems that help with grid flexibility, a Drawdown solution, but diesel, natural gas, and propane appear to the predominant formats. A revenue breakdown is not present.
Portland GE produces 50.19% of its power from fossil fuels, 27.81% from nuclear, 14% from mixed sources, and 8% from renewables. Even if all of the power produced from mixed sources was from renewables, Portland still would not produce > 50% of its power from non fossil fuel sources.
Perma-Pipe International does not produce any not leak detection or water conservation technologies and therefore fails our water distribution efficiency filter.
Roper Technologies does not produce any not leak detection or water conservation technologies and therefore fails our water distribution efficiency filter.
Republic derives its revenue in part from recycling, a Drawdown solution, but captures landfill gas at fewer than 50% of its landfills, thus failing the landfill gas filter.
Electrameccanica Vehicles has no sales of electric vehicles to date. It has some sales in its custom build segment, which we categorize as fossil fuel revenue.
Spark produces 59.65% of its power from fossil fuels, 34.47% from nuclear, 4.82% from renewables, 1.03% from non fossil fuel combustion, and 0.03% from fuel cells.
Steel Partners Holdings L.P. produces LEDs, a Drawdown solution, but also produces tubing for the oil and gas industry, which is considered fossil fuel revenue. It also produces blades for meat/fish processing plants.
Sociedad Química y Minera de Chile sells fertilizer but not in a way that promotes nutrient management, meaning they do not produce a Drawdown solution.
Stellantis N.V. produces some EVs, a Drawdown solution, but receives the majority of its revenue from traditional ICE vehicles, which we categorize as fossil fuel revenue.
Sterling Construction does not produce any not leak detection or water conservation technologies and therefore fails our water distribution efficiency filter.
Toyota Motor produces some EVs, a Drawdown solution, but receives the majority of its revenue from traditional ICE vehicles, which we categorize as fossil fuel revenue.
Tutor Perini builds military defense facilities, which fails the defense filter because it sells a product/service to the military that is not a Drawdown solution.
Tattooed Chef, sells vegetarian/vegan products, but in order to count towards the Drawdown solution of promoting a plant-based diet, a must not make products that include animal products.
Tetra Tech helps clients achieve net zero emissions in their buildings among other pro-climate projects, but it also works with many oil and gas companies. It is unclear what makes up a majority of its revenue.
Tata Motors Limited produces some EVs, a Drawdown solution, but receives 99.8% of its revenue from traditional ICE vehicles, which are categorized as fossil fuel revenue.
Uber theoretically enables rideshareing, a Drawdown solution, but in practice likely increases emissions due to drivers going further from their homes daily to service higher paying regions.
Ultralife derives the majority of its revenue from the promotion of electric vehicles and energy storage, both Drawdown solutions, through the sale of lithium batteries and electric vehicle charging solutions. It also makes scopes for rifles and SATCOM communications for the defense industry, leading it to fail the defense filter
WEC produces 62.2% of its power from fossil fuels, 19.6% from nuclear, 8.4% from mixed sources, and 7.4% from renewables. Even if all power produced from mixed sources was from renewables, WEC would still not have >50% power from non fossil fuel sources.
Williams Industrial Services Group maintains nuclear projects and some renewable projects, but also works on fossil fuel plants. It is unclear which is a majority of their revenue.
Advanced Drainage Systems does not produce any not leak detection or water conservation technologies and therefore fails our water distribution efficiency filter.
Xcel produces 53% of its power from fossil fuels, 30% from renewables, 13% from nuclear, and 4% from mixed sources. Even if all of the power produced from mixed sources was from renewables, Xcel still would not produce > 50% of its power from non fossil fuel sources.
Zymergen biofacturing and bio-based products like adhesives largely for electronics, but not creation of bioplastics. They IPO'd in April 2021, lack an annual report/investor presentation/description of their products & services
Cement is a major emitter of CO2e. CRH is leading the push towards carbon-neutral cement (commitment by 2050), having already reduced their emissions by 26%.
Covanta Holding operates facilities that burn waste to produce electricity and recycle industrial waste. Waste-to-energy is an important bridge solution
Belden sells basic connectiviting solutions for energy and telecom, but not products specifically designed to strengthen and expand the grid, and therefore does not produce a Drawdown solution
Lydall creates insulation for things like car interiors to reduce noise, not to help buildings stay temperate, meaning they produce no Drawdown solution
Lucid makes luxury electric sedans in the United States. Its IPO date was less than six months before the 2022 Climate Index update, leading it to be excluded from this years index.
Li-Cycle recycles old lithium-ion batteries to create new ones. Its IPO date was less than six months before the 2022 Climate Index update, leading it to be excluded from this years index.
Rivian makes electric pickup trucks, SUVs, and delivery vehicles. Its IPO date was less than six months before the 2022 Climate Index update, leading it to be excluded from this years index.
The Metals Company mines deep sea metals that are rare and critical for batteries. Its IPO date was less than six months before the 2022 Climate Index update, leading it to be excluded from this years index.
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