The building sector is a major contributor to the greenhouse effect. Cement production alone has a share of up to eight per cent of global CO2 emissions while rapid urbanization in developing countries is increasing the demand for cement and concrete. Therefore, the need for innovative solutions to decarbonize this sector is essential. An expert from HEAT, a GFA Group member company, presented a sustainable alternative at the Hamburg Sustainability Conference.

“If cement was a country, it would be the third-largest emitter after China and the United States”, says César Jiménez. The environmental engineer explained an alternative for reducing the emissions in the cement sector in the networking area of the Hamburg Conference. Jimenez is an expert at HEAT International, a company specialized inter alia on climate-friendly heating, cooling and building within GFA Group. He focuses his solution pitch on one particular issue: „Low carbon cement is a viable solution to reduce emissions and balances environment goals with the need for housing and infrastructure”.

LC3 needs much less energy in production and could reduce CO2 emissions by up to 20-40 per cent per ton of cement. It can also lead to operational cost savings of up to a quarter, compared to traditional cement.

César Jiménez

The so-called LC3 cement is a blended material using calcined clay and limestone to replace up to 50 per cent of clinker. An immense benefit: It can be used in up to 70 per cent of existing cement plant infrastructure, with only minor modifications. And it performs as good or even better in terms of strength and durability than ordinary cement. For Jiménez, the advantages of this Limestone Calcined Clay Cement are clear, as he pointed out to his audience in Hamburg: “LC3 needs much less energy in production and could reduce CO2 emissions by up to 20-40 per cent per ton of cement. It can also lead to operational cost savings of up to a quarter, compared to traditional cement.” However, investments for boosting the technology are necessary.

In his presentation in Hamburg, César Jiménez also spoke on behalf of the National Designated Entity (NDE) that supports developing countries in the deployment of transformative climate technologies. In this context, he named some international examples from Ghana, India and Cameroon, where the production of low-carbon cement is already on its way to become a reality. Currently, several developing countries are following the example of the European Union by updating their building regulations to allow the use of technologies such as LC3.

Hanna Brüning is Corporate Sustainability Manager at GFA Consulting Group. She uses her knowledge and experience to support GFA in integrating sustainable practices into its work. In this interview, she explains where she sees the biggest challenges and chances for more sustainability in an organization like GFA and in the area of international cooperation.

Hanna, how is sustainability interwoven in the daily work of GFA Consulting Group?

Sustainability at GFA begins with recognizing that all human beings have the same rights and responsibilities regarding economic prosperity and social justice. We all depend on each other, wherever we live on this planet. Rooted in these principles, GFA works towards a vision of improving people’s living conditions worldwide. The United Nations 2030 Agenda confirms the efforts towards sustainable development and a future reflecting the integration of social, environmental and economic values. These values present a powerful global framework for us at GFA and is a motivation for us to take action across all our strategic business areas. The Sustainable Development Goals (SDGs) define what we need to achieve regarding sustainability, and we focus on how to realize these goals.

How exactly does that look like?

Since 2018, we have been actively integrating the UN principles into our company’s strategies and policies. This has initiated a long-term journey of fostering integrity and sustainability within GFA. Currently, we use global goals to develop an impact logic for the company. As a result, we find ways to increase positive contributions to all 17 SDGs not only in our advisory mandates and projects in over 80 countries, but also in our everyday work as a consulting firm. This approach has become our trademark. Evaluating our influence on employees and the environment, especially climate change, is part of this approach. GFA started this process as an early adopter of the UN Global Compact, and our annual Communication of Progress report reflects the achievements we have made. In addition, we keep up to date with regulations such as the Supply Chain Act and the Corporate Sustainability Reporting Directive (CSRD), and implement them in our business model. The CSRD in particular requires us to refine our sustainability reporting as we now need to combine our sustainability reporting with our financial reporting. This means we have to move beyond economic data and instead present a holistic overview of our organization and the values it delivers for people and planet.

How important is the CSRD for a company active in international development cooperation?

CSRD is a reporting requirement and we ask ourselves: What are we doing differently because of this new requirement? The CSRD essentially provides a framework to develop an M&E system for organizations, it entails rigid indicators and qualitative reporting that is based on accountability and allows for comparison between organizations. It is also possible for a firm or sector to develop its own individual indicators. Let’s see how corporate sustainability reporting develops in our sector and for consulting companies in upcoming years. Currently, much of the work involves time consuming efforts in setting up the analysis framework that details the issues the report needs to cover. The indicator setting and the agreement on data entry points on the other hand might give us in future the possibility to understand our impact into the world in a more systematic and fact-based manner.

What are the challenges in terms of sustainability and the sustainability management itself?

According to UN, only 17 per cent of the 169 targets under Agenda 2030 are 'on track,' while nearly half of them are showing just moderate progress and some are even regressing. The COVID-19 pandemic was a setback, but the global community was already behind targets before the virus struck, largely due to insufficient political ambition and lack of finance. These issues have been discussed at the recent high-level Hamburg Sustainability Conference, too. The responsibility of political and economic decision makers cannot be denied. But we can all contribute the motivation, understanding, and necessary attitude and practice changes to overcome the sustainability challenges at stake – as individuals, in the communities we live in, or at our work stations. At GFA, we aim at fostering a conducive environment for such transformative change. Initiatives such as our Green Team and our Technical Working Group on Gender and Diversity are practical examples of this approach. One of the most significant challenges in sustainability management is data availability and reliability. Accurate, thorough measurement of impacts, as required by the CSRD, is complex. Motivating every single staff member to embrace this new level of reporting is another obstacle. Above all, we need to cultivate a sustainability mindset across the organization and equip our teams with the skills and tools to make sustainability a daily practice. This requires collaboration across all departments and a genuinely integrated approach.

The challenges posed by rapid urbanization are at the top of the global agenda. Over the past decade, countries around the world have stepped up their efforts to put growing cities on a low-carbon, more sustainable development path that allows for a better quality of life and an improved climate footprint. When it comes to urban development, countries are facing similar challenges, though the starting point naturally varies depending on economic capacities, the quality of existing urban infrastructure, local planning systems, and other context factors.

Cities in the Global South are often forced to deal with more fundamental issues such as rapid, unplanned growth and extreme inequality. Yet, the broader goals remain the same: cities need to be resilient, inclusive, and low on emissions in the face of economic, social, and environmental pressures. “Therefore, urban development is a field of cooperation where learning can and should go both ways to maximize benefits”, says Sascha Kuhn, Senior Consultant at GFA’s Governance Department.

With its projects, GFA helps bridge the gap between ambitious sustainability goals and the practical challenges facing cities. Many cities in the Global South are struggling with the provision of basic services such as waste collection and water supply while at the same time dealing with the urgent need for advanced, technology-based climate protection measures.

Kuhn mentions two current GFA projects as a case in point. In November 2023, Ecuador and the European Union signed a Financing Agreement for the implementation of the Green Pact for Ecuador. As part of the Global Gateway Initiative, it seeks to mobilize at least one billion US dollars to meet the country’s infrastructure investment needs. In this context, GFA on behalf of GIZ supports Ecuadorian cities in accessing climate finance as part of the Sustainable Intermediate Cities II (CIS II) project. To this end, GFA experts first need to address the lack of basic infrastructure. Tackling both immediate infrastructure needs and long-term climate goals at the same time is a real challenge.

Strategic planning, initial project scoping, and combining available financial instruments are key elements of the advisory and training the project is providing.

Sascha Kuhn, GFA Consulting Group

The second project relates to a recent report by the Africa Finance Corporation. The latter found that despite progress in recent decades, the pace of infrastructure development has not kept up with the growing needs of the population. The technical assistance to the African Sustainable Cities Initiative (ASCI) project, implemented by a GFA team of experts, therefore focuses on improving access to finance for sustainable urban infrastructure in secondary cities. Funded by the European Investment Bank (EIB), the project currently supports local governments in Kenya, Ivory Coast, and Ghana in identifying and preparing specific projects. “Strategic planning, initial project scoping, and combining available financial instruments are key elements of the advisory and training the project is providing”, states Sascha Kuhn.

Through initiatives such as ASCI and CIS II, GFA demonstrates the importance of collaboration between governments, international financial institutions, and local stakeholders in creating a sustainable urban future. As many cities across the world are facing climate challenges while they still deal with unresolved basic needs, Sascha Kuhn adds: “Climate action must happen now, but it will only be effective if international cooperation is built on equal partnerships, coordinated efforts, and leads to tangible and mutually beneficial results.”