ESG stands for Environmental, Social and Corporate Governance. The world we live in is facing numerous challenges. Progressive climate change and rising social tensions are causing far reaching changes in the way we think about human activity and the acceptable means of getting there. Among other things, the demands on business are changing – companies are expected, among other things, to develop in a more sustainable way.

One symbol of these expectations is the acronym ESG, which you may increasingly encounter in sustainability-related publications. Behind the English terms Environmental, Social and Corporate Governance are three areas of company activity: environmental, social and corporate governance. Year after year, there is growing interest in data on companies’ activities in this area. There is also an increase in the number of companies in the European Union that are required to report their environmental, corporate social responsibility and corporate governance activities.

ESG is becoming increasingly important for several reasons:

• Investors are demanding it.A 2023 MSCI study indicates that 90% of investment decision-makers consider ESG factors as an important factor in their investment decisions.
• Customers are demanding it. A recent study by McKinsey & Co. found that 66% of all respondents and 75% of millennial respondents consider sustainability when making a purchase. This shows a clear shift in consumer behaviour, with people increasingly aligning themselves with brands that share their values and priorities.
• Governments are demanding it. Governments around the world are introducing new regulations and legislation that require companies to report on their ESG performance. This is making it more important than ever for companies to take ESG seriously.
• Employees are demanding more from companies, not only choosing where to work based on a company’s core values, but on their actual impact and results.

But ESG isn’t just about meeting the demands of investors, customers, and governments. It’s also about doing the right thing. At Cemex, we believe that we have a responsibility to operate our business in a way that is sustainable and that benefits the communities in which we work.

In the following months, you will learn more about our ESG activities in the EMEA region.

For more information about our ESG 2030 targets, please visit our website at https://www.cemex.com/sustainability/our-2030-targets.