main challenges of a circular economy approach for the

ConsultingLabProject

UnderthesupervisionofProfessorConstança Casquinho

AlexandraMoniznº2977

MiguelFontouranº2505

PedroPintoGomesnº2761

MainchallengesofaCircularEconomyapproachfortheCementandBuildingMaterialsIndustryinPortugalandforSecil

January 6th,2017

Glossary

Clinker Adarkgreyincombustiblematerialmadebyheatinggroundlimestone,clayandother

minerals,whichisusedtoproducecement

Cement Abuildingmaterialmadebygrindingclinkerandgypsumtoafinepowderthatcanbeused

asan ingredientformortarorconcrete

Concrete Abuildingmaterialconsistingofcementasthebinding agent,aggregates,waterand

admixtures

Aggregates Mineralmaterialssourcedatquarriesthatareusedinmakingconcrete,asphaltandmortar,

suchassand,gravelandcrushedstone

Bitumen Ablackviscousmixtureofhydrocarbonsobtainednaturallyorasaresiduefrompetroleum

distillation

Mortar Amixtureofsand,abindersuchascementorlime,andwaterandisappliedasapaste

whichthensetshard

Fly ash(PFA) PulverizedFly Ashconsistsinaby-productofcombustingcoalinthermalpowerstations

Slag(GBFS) GroundGranulatedBlast-FurnaceSlag consistsin awasteproductfromsteelproductionby

basicoxygenfurnacetechnology

Pozzolana Atypeofvolcanicashofsiliceousorsilico-aluminouscompositionthatcanbeusedin the

productionof mortarorcement

Landfill Acarefullydesignedstructurebuiltintoorontopofthegroundinwhichwaste materials

areisolatedfromthesurroundingenvironment

2

Agenda

IntroductionandProjectBackground

IndustryandCompanyOverview

ImpactoftheIndustrytotheEnvironment

SustainabilityandCircularEconomy

KeyInitiativesandPrioritiesforSecil

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4

5

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2

1

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4

5

4

TheTeamandProjectAdvisors

TheTeam

AlexandraMoniz PedroPintoGomes MiguelFontoura

ProjectAdvisors

Prof. Constança CasquinhoFernandoLopes– BusinessDevelopmentManager

5

ContextandLimitationsoftheproject

• ThiswasnotatypicalacademicresearchprojectbutratheraconsultingprojectrequestedbySecil toNovaSBEinordertoaddressaspecificissuewithsignificantpotentialimpacttotheClient’sindustryandbusiness

• Thisdocumentaimstoanalyze thepotentialimpactofthechallengesemergingfrom

theconceptofcirculareconomytothecementandbuildingmaterialsindustryandalsopresentthemainprioritiesforthecompany

• Thisconceptisstillatanearlystagewiththeindustrytryingtoidentifythemost

significanttrendsandanticipatethepossiblechangesoftheregulationwithina

contextofhighuncertainty

• TheFieldLabworkprojectwasdoneoveraperiodof10weeksatSecil andcomprisedTeamworkwithaproblemsolvingformatorresearchapproachaswellas

severalexpertinterviewsbothtoprovideinputandalsotovalidateTeamhypothesis

6

IssuestoAddressandmainProjectGoals

Problem Statement:• The growing environmental concern led to several global initiatives that aim to ensure economic sustainability, the

optimization and recycling of the existing resources and, within this front, emerged more recently also the circular

economy concept.

• These initiatives have been translating into new regulation and recommendations that vary across industry and, in

some cases, also across regions. The industry of building materials is one of the largest consumers of natural resources

(both raw materials and fuels) and has also a significant production of end product residues. Naturally, this is already

one of the most regulated sectors, but its players, aware of the impact of the industry have also proactively invested in

improving its efficiency and reducing its impact on the environment.

• Despite these improvements, changing consumption trends and increasing regulation will bring additional and

significant challenges for the industry as a whole and for the sustainability of its players.

Inthiscontext,theProjectwithNovaSBEhad3maingoals:

1. Tounderstandthemainregulatorytrendsthatcanimpacttheindustryofthebuildingmaterials– thisshouldcovernotonlythepossiblechangestotheexistingEUandnationallawsanddirectivesbutalsonewdevelopmentsandits

potentialimpactforSecil.

2. EvaluatetheinitiativesandmeasuresthathavealreadybeendonebytheindustryandbySecil – thisshouldbethebasetoaccessthestateofreadinesstodealwiththeupcomingchallenges.

3. IdentifythemostrelevantissuesandopportunitiesforSecil andthepossibleactionsthecompanyshouldtaketoadaptitsprocessesandproducts– thisshouldconsidertherelevantproductdevelopmentofthemainplayersand

newresearchinthepipelineofbeingtestedandhowitcouldbeadoptedbySecil.

7

Methodology

ThemethodologyusedinthisProjectconsistedof3mainstages

MethodologyExternalandinternal

analysis

1Identificationofkey

environmentalinitiatives

2 Selectionofthemostrelevant

initiativesandfinal

recommendations

3

• Basicindustryandcompany

overview

• Analysisofinternational

benchmarks,bestpractices

andtrendsintheindustry

worldwide

• Revisionoftherelevant

industryenvironmental

regulation

• Identificationofthemain

conceptsandframeworksof

thecirculareconomy

• Internalfieldinterviewswith

Secil managerstoidentifythe

keyregulationrisksforSecil

andunderstandthemain

environmentalinitiatives

fromSecil

• Analysisofthepotential

impactoftheinitiatives

identified

• Interviewswithexternal

expertsandSecil managersto

validatetheTeamanalysis

andhypothesis

• Analysisandstructureofthe

implicationsandrequirements

forthemostrelevantinitiatives

• ParticipationintheNational

InnovationForum(COTEC,this

yearunderthemaintopicof

circulareconomy)withsome

helpprovidedtotheClient

interventions

• ElaborationoffinalTeam

recommendations

8

ExecutiveSummary

.• The Cement and Building Materials industries are among the main consumers of natural resources and its

production process release significant amounts of residues and emissions and thus have always been heavy

regulated.

• Growing environmental and sustainability concern is leading towards even more regulation and new limitations on

the industry impact on the environment.

• The companies cope with these challenges by researching new products and developing new, more efficient

technologies and production processes that are less impactful to the environment.

• The concept of circular economy aims to minimize further the negative environmental externalities, and raises the

challenges to the whole value chain and production cycle of the industry.

• Based on the Ellen MacArthur’s model, our team developed the “7 R’s framework” in order to analyze where can

Secil – as a leading cement and construction materials company in Portugal and with sizeable presence in other

continents – improve and innovate in the context of circular economy.

• The outcome of this document is a selection of 5 initiatives or potential projects that are not yet explored by Secil

and that can deliver a strong impact for the company in the long term.

• Furthermore, the team identified two critical uncertainties, out of the five final initiatives, to further elaborate

different scenarios regarding how will these uncertainties develop in the future and, how what are Secil’s strategic

options regarding the different scenarios

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Buildingmaterialscanbedividedintwomaingroupsofproductsaccordingtotheirfunctionintheconstructionprocess

Twomaincategoriesofbuildingmaterials

Source:HSBC

Buildingmaterials

Cement

Aggregates

Ready-mixconcrete

Asphalt

Mortars

Wallboard

Insolation

Bricks

Tiles

…

“Heavy-sidematerials”

“Light-sidematerials”

Consumedbyinfrastructure

projects(suchasroads,

bridgesortunnels)aswellas

thefoundationsandcore

structureofmostresidential

andotherbuildings

Usedpredominantlyin

above-ground-levelbuilding

construction,bothforinside

andoutsidedecorationand

finishingoftheconstruction

11

Concreteisthemainendproductandconsumesmostoftheaggregatesandcement,which,asaproducthasthelargestenvironmentalimpact

EndproductsandrawmaterialsintheBuildingMaterialsIndustry

Source:Secil/NovaSBE Team,EllenMacArthurFoundation

Aggregates

Cement

Water

Admixtures

80%

12%

7%

1%

Asphalt Concrete

Aggregates95%

Bitumen5%

CementAggregates

Mortar

RawMaterials

EndProducts

Typicalcompositionofendproducts

Whilecementmakesup

onlyasmallpercentage

ofthemix,itisthemaincostitem (about300kg

ofcementisneededfor

1m3 ofconcrete)andis

responsiblefor96%ofitsCO2 emissions

Multiplepossible

mixturesaccording

tointendedfinal

use

Highest

environmental

impact

Mandatory

Otherraw

materialscanbe

used

12

Theimpactofcementproductionandconsumptionintheenvironmentisfurtherenhancedbythefactthatmostofithappensinlessregulated,emergingcountries(e.g.ChinaorIndia)

GlobalCementIndustry– KeyFigures

Source:Secil/NovaSBE Team,Cembureau

Asia(excluding

India,China)

23%

Restoftheworld

14%

Europe

6%India

6%

China

51%

Worldcementproductionin2015,byregionandmaincountries(%oftotal)

100%=4.6billionmetricTons

KeyfiguresforCementWorldwide

• €17.5Bannualsales

• 4.6Bmetrictons(~600kgspc)

• Cementconsumptionfollows

economicdevelopmentuptoacertainstage,thenremainsstable

• Chinaalonerepresentsmorethanhalfofglobalproductionandconsumption

• Mainplayersareeither largelocalcompanies orbelongtoadozenofmultinationals

• Totalthermalenergyconsumedper

yearequalsto118millionbarrelsofoil

13

TheCementIndustryrequireshighinvestmentswithlongpaybackperiodsandhasastrongimpactonlocaleconomies

Source:Cembureau

ImplicationsfortheIndustry

Homogeneous,standardproduct

Energyintensiveprocess

Capitalintensive

• Thereareonlyafewclassesofstandardcementformulasthatmostcompaniescanproduce

• Priceisthemostimportantsalesparameternexttocustomerservice

• Qualitypremiumsexistsbutarelimitedforspecialtypesofcementoruse

• 1cementtonnerequires60to130kgoffueloiloritsequivalent,and110kWhofelectricity

• Additionalfuelisspentondistributionlogistics(truck,rail,ship,etc.)

• Cementplantscancostfrom$150-300pertonnesofinstalledannualcapacity

• Plantupgradesareplannedconsideringthelong-termdemand/supplyandcostevolution

• Typicalpaybackperiodofacementplantcantakeupto10years

• Thepriceoflongroadtransportationmaybehigherthanthecostprice

• Bulkshippingisabetteroptionthantousetruckstomovecargo

• Inlargemarkets,regionalclustersbecomenatural

Low-costandheavyproduct

• ClearlylinkedtostateofeconomicdevelopmentandtheoverallGDPgrowthrate

• GrowthfollowsGDPindevelopingmarketsandpopulationgrowthinmaturemarkets

• Cementavailabilityiscriticalformajorpublicinfrastructureanddevelopmentplans

Criticalbutmatureproduct

Variablelaborintensity

• Automatedprocessesandcontinuousmaterialhandlingdevicesenablesamodernplanttoworkwithless

than150people

• Indevelopingcountries,processesarestillmoremanualandrequiremorelowskilledlabor

Characteristics

14

MostoftheCompetitiveForcesatworkintheCementindustrytendtocreatefew,stronglocalchampionsorglobalplayers

Source:Secil/NovaSBE Team

SupplierPower

• Strongprocessintegration

(cementplantsarelocated

neartheirownquarriesand

typicallyalsoownlogistics)

• Mostequipmentandraw

materialshavelimited

suppliersandrequirespares,

stocksormaintenance

• Energysourcesarelimited

(particularlyelectricity)but

pricesaregenerallysetin

globalmarkets

EntryBarriers

• Excesscapacityindevelopedmarkets,high

investmentandstrongeconomiesofscale

• Hightransportationcostsrequiresstrategic

locationsnearrawmaterials,consumptionand

accesstoenergy(e.g. seaports)

• Governmentslimitthenumberoflicenses

Substitutes

• Stateoftheartmaterialwithnorealsubstitutes,

particularlyforheavyinfrastructureprojects(such

asbridges,dams,tunnels,etc)

• Cementproductioncanbeoptimisedwiththeuse

ofotherrawmaterials(e.g.slagorfly-ash)

reducingcostsandincreasingcementquality

Buyerpower

• Cementpricesgenerally

determinedbytheforcesof

localsupplyanddemandand

totalcosttoreachthemarket

• Buyerpowerislimiteddueto

thelackofsubstitutes,the

smallnumberofproducersand

theinelasticdemand

• Formajorprojects,specific

typesofcementareneededin

ashortperiodoftimeleading

toproductshortages

IndustryRivalry

• Structureofthemarkettendstobeoligopolistic

duetohighfixedcost

• Competitionbetweenexistingproducersis

typicallylimitedbutcangetintenseduetolow

productdifferentiation,lowswitchingcostsand

highcontributingmargins

Low

Moderate

High

Competitivestrengthofindustryplayers

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SecilisaleadingplayerfromPortugalwithasignificantandgrowinginternationalpresence

Company,MissionandVision

Source:Secil-GroupWebsite

Company

• Secil isaPortuguesebasedbusinessgroup,detainedandsupportedbytheholdingcompanySemapa,that

producesandsellscement,concrete,aggregatesandmortars

• Secil hasitsowntechnicalcentresfocusedinthedevelopmentofnewconstructionmaterials,process

optimization,environmentalservicesandtheuseofalternativeenergysources

• Thegroupcurrentlyoperates8plantsin7countries,locatedin4continentswithalmost10milliontonsof

capacityandusespartofittoexportformorethan50countries,namelyfromOutão/Setúbal

• In2015,Secil hadrevenuesof478millioneuros,a11%increasecomparedtothepreviousyear,reflectingthestart

ofoperationofitsnewplantinBrazil

Mission

• “Weareaninternationalcompanyofcementandbuildingmaterials,aimedatcreatingvalueforthebenefitofthe

company’sstakeholders.Weutilizeresourcesinasustainableway,offeringhighqualityandinnovativeproducts,

throughtheexcellenceofouremployeesandrespectingthecommunitiesinwhichweoperate.”

Vision

• “Weaimtoextendourimpacttonewgeographiesandmarkets,offeringsustainableconstructionproductsand

solutions,creatinganenvironmentbuilttobenefitandimprovesociety’squalityoflife.”

16

Secil hasbeenexploitinginternationalopportunities(plantsinemergingcountriesandterminalsinstablemarkets)tobalanceitsportfolioandbenefitfromlocalmarketconditions

InternationalPresenceandProducts


Brazil:• Cement

• RMC

• Aggregates

Angola:• Cement

Portugal(scopeofthework):• Cement

• RMC

• Aggregates

• MortarsandBinders

• PrecastConcrete

• IndustrialWasteValorisation

CapeVerde:• Cementdistribution

• Aggregates

• PrecastConcrete

Netherlands:• Cement

Lebanon:• Cement

• RMC

• PrecastConcrete

Tunisia:• Cement

• RMC

• ArtificialLime

• PrecastConcrete

17

Secil alsobenefitsfromhavingawideandcomplementaryrangeofproductsacrossthevaluechainwithsynergiesfromverticalintegration

ProductPortfolio


Ready-mixconcrete

Mortars PrecastCement

White

Lime

GrayGray

Stabilizedmortars

Self-compacting

GrayWhite/colored

Decorative

Draining

GrayLightweight

Sand

Ballasts

GrayGravel

Armourstone

Crushedstone

GrayToutvenants

WaterproofingandETICs

Technicalmortars

GrayTileFixingmortars

Primaryandadditives

SolutionsforMasonry,Floorand

wall

Gray

SolutionsforRenovationandRehabilitation

Blocks

Windows

GraySolarPanels

GrayTiles

Aggregates

Argibetão

Secil Group

Company

ProductCategory

87

GrossRevenuesinPortugal,persegment(€M2014) 37 13 10 2

18

Threekeyemergingtrendsarecombinedtobringmorepressuretomostplayersofthebuildingmaterialsindustry

Maintrendsinthebuildingmaterialsindustry


Industry Trends

Changeintheconsumptionprofile

IndustryConsolidation

Environmentalandlegalpressures

19

Ahigherpercentageofrehabilitationconstructionsischangingthetypeofmaterialsconsumedtowardslesscementwhichrequiresafastadaptationofthesuppliers

Source:INE

Industry Trends




2009 2014

RehabilitationworksandnewconstructioninPortugal(2009and2014)

Rehabilitation

NewConstruction

22%(7,587)

78%(26,466)

34%(5,053)

66%(9,793)

34,053

14,846

• Totalnumberofconstructionsdeclinedtolessthanhalfinjust5years

• Withinthistrend,Rehabilitation constructionsrepresentnowoverathirdoftotalconstructions

• Rehabilitationrequiresadifferentconstructionapproach,usuallyconsuminglesscementleadingto

asubstitutionofcementforothermaterialssuchas

mortarsandplaster

20

Cementisprimarilyalocalbusinessbutglobalcementplayersbenefitstronglyfromsynergiesandroll-outofbestpractices

Source:GlobalCement

Industry Trends




• Top15companieshaveone-thirdofglobalcapacity

• IncreaseinM&Abetweenthemainplayers

• LafargemergedwithHolcimandthemerged

entitybecamethelargestcompany

• HeidelbergacquiredItalcementi

• Cemex soldassetsintheUS(toArgos)

• Mostofthedivestedassetsfromthese

transactionswereacquiredbyotherregional

players(suchasCRH,TitanorCementir)that

alsobroadenitsglobalreachandsize

• Thesemergersreducethenumberofrelevant

cementplayersgloballyandputmorepressureonthelocalplayers thatneedtohavesuperiorlocation,bettertechnology,innovativeproductsor

lowerproductioncoststobeabletocompete

effectivelywiththemajors

21

Thetop10playersincreasedtheirmarketsharetoalmost30%butthefastestgrowthcamefromChinaandotherdevelopingcountries

CompetitorAnalysis

Source:Secil/NovaSBE Team,GlobalCementMagazine

Largestcementcompaniesintheworldbyproductioncapacity(Milliontons,early2015)

287

217

176

121

87

76

71

63

45

45

LafargeHolcim

AnhuiConch

CNBM(Sinoma)

HeidelbergCement

Cemex

Italcementi

ChinaResources

TaiwanCement

Eurocement

Votorantim

• Thetop10playersrepresentalmost

30%ofglobalcapacityinstalled

• MostofthemcomefromChinaand

otherdevelopingcountries(BRIC)

• Therankingischangingasmostplayers

keepoptimizingcapitalallocationsand

managingitsportfoliowithspecific

assetsales

• Marketleadersinlargeprofitable

markets(suchasCemex inMexico,

Eurocement inRussiaorVotorantim in

Brazil)grewinsizebutnotin

geographicalreachduetoitshighdebt

costs

22

Theindustryisalsofacingmountingenvironmentalprotectionregulations,giventheimpactofthecementproductionprocess


Industry Trends




• Cementproductionimpliesahighenvironmental

impactthroughair,waterandnoisepollution,butalsothroughtheextractionofnaturalresourcesandfuelconsumption

• Strictenvironmentalrestrictionshaveemergedin

thecontextoftheParisAgreement

• Companieswerepressuredtopromoteatransition

towardsamore“green”cement,whichisfacilitatedbymoderntechnology,useof

alternativefuelsandotherrawmaterials:

• Wasteheatrecoverysystems,toconvertwasteheatintoelectricity

• Useofalternativefuelssuchasbiomass

• Alternativerawmaterialssuchasflyash,slagandpozzolana actuallyimprovecement

qualitiesandreduceitsproductioncost

23

TheSTEEPanalysisshowsthatthepressuresonthecementindustrycomefromallexternalfronts,fromeconomytoregulationorevensocialandmarketfactors

STEEP1Analysis

Source:Secil/NovaSBE

Social

Technological

Economical

Environmental

Findings

• Lessbudgetforgovernment spendingininfrastructureandsocialprojects

• Ongoingurbanization1 (64%oftotalpopulation)butataslowerpace

• Consumersaremoreenvironmentalconscious

• Smarthomes,moredurableandenergyefficientbuildings

• Newbusinessmodels(trendtowardrentandrehabilitationnotnewbuildings)

• Newtechniquesregardingwasterecycling/reduction

• EconomicUncertaintyandstagnantGDPgrowth

• Lowinterestratesandinflationinsomemarkets

• Morepressurefrombanksonhighdebtcompanies

• Carbonfootprintconcerns

• AdoptionofAlternativeSourcesofEnergy

• NaturalResourcesscarcity

• GrowinglegislationonGHGemissions

• Lackoflegislationconcerningthepricingofrawmaterialsandcostoflandfilling

doesnotcreateanincentiveforsustainableproduction

Political/Regulatory

S

T

E

E

P

Note1:Social,Technological,Economical,EnvironmentalandPolitical24






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Thepressuretoreducetheimpactofthecementintheenvironmentcomesatatimewheremostcompaniesalsofaceseriouschallengesintheirmarketsandinindustryasawhole

ChallengesoftheCementandBuildingmaterialsindustry


Challengesarisefromtwomaintypesofproblems

Industryproblems Environment-relatedproblems

• Waterandsoilpollution

• Airpollution

• Impactonbiodiversityandecosystems

• Resourcescarcity

• Excesscapacityinstalledinmostmarkets

• Changesintheconsumptionprofile

• Reducingvolumesindevelopedmarkets

• Endproductswithalonglifecycle

• Pricesensitivityandproductsubstitution

• Highcostofdebtandfixedcoststructure

• Highmaintenanceandupgradeinvestments

requiredtoremainefficient

• Emergingcountrieshaveanincreasing

relevantroleintheindustry

• Marketdependsonpublicinvestment

26

Cementproductionhasastrongimpactonenvironmentwithspecificissuesacrossitsproductionprocess

Valuechainofcementandkeyenvironmentalissues


RawMaterialsProcurement

ClinkerProduction

CementProduction

Distribution

• Drillingfor

limestone,clayand

sand

• LoadingShovel

• DumpinginTrucks

• Transportingand

dumpinginthe

crusher

• Grindingandsetting

thecompositionof

themixture

• Fromtheblending

silostheraw

materialsmixture

isprocessedina

rotarykiln

• Followsseveral

stages:heating,

dehydration,

calcificationand

cooling

• Grindingofthe

clinkertogether

withabinding

regulator

(gypsum)and

otheradditives

• Storageof

cementinbulkor

inbags

• Cementcanbe

distributedby

train,shipor

truck

• Bagsorbulk

Endusers

From

wholesalersand

retailchains

(DIY)tolarge

direct

contractorsMain steps

Key

Environmental

issues

• Naturalresources

(limestone,sand,

clay)consumed

• Fossilfuelsfor

transportand

extraction

• FossilFuels(petcoke,coal)

• Highelectricityconsumptioninplants

• Carbondioxide(CO2)emissions

• Productionwaste

• Fossilfuelsfor

transport

• Construction

anddemolition

waste(CDW)

27

Theimpactofthecementandbuildingmaterialsintheenvironmentcanbesplitinto4maincategories

Mainenvironmentalissuesfromthebuildingmaterialsindustry


Extractionofnaturalresources

Massiveexploitationoffinite

naturalresources,suchas

limestone,sand,clay

FossilfuelsconsumptionGreenhousegasesemissions

Waste

Heavyuseoffossilfuelsforplants,

machineryandtrucks,suchasoil,

coalandgas

Theproductionprocessand

transportationrequiretheuseof

fossilfuelsthatcontributetohigh

emissionlevels

Duringtheconstructionand

demolitionprocess,ahighamount

ofwasteiscreated

MainEnvironmental

Issues

28

Thecementproductionprocessbeginswiththeextractionoffinitenaturalrawmaterialsatquarries

Extractionofnaturalresources

Source:Secil/NovaSBE Team,TheFreedonia Group

j

Worldcementdemandin2014perregion(millionmetrictons):

• NorthAmerica136

• WesternEurope126

• Asia/Pacific3158

• Central&SouthAmerica153

• EasternEurope120

• Africa/Mideast467

TOTAL 4160 j

Worldwideestimatedconsumptionofnaturalresourcesforcement/concreteproductionandusageinconstructionin2014(approximatelyandinBillionmetrictons/year):

• 5.3Bt/yofLimestoneforcementproduction

• 43.3Bt/yofaggregatesforconcreteandotherusesinconstruction(includingbothsandandcrushedstone)

• 0.4Bt/yofclay/pozzolana

• 0.2Bt/yofgypsum

• Also0.2Bt/yofslagand0.2Bt/yoffly-ashwithapositiveimpactontheenvironment(reducestheamountofclinkerand

limestoneneeded)

• 15%ofalloilconsumed(bothforproductionanddistribution/transport/logistics)

Theextractionofnaturalresourceswillcontinuetoincreasesinceglobaldemandforcementis

expectedtorise4.5%until2019

29

Althoughfossilfuelsarestillthemostusedandcontributetotheemissionofpollutinggases,theindustryhasbeeninvestinginalternativefuelsforsometimewithgoodresults

FossilFuelsConsumption

Source:Gettingthenumbersright(GNR)2012;Secil 2015;CSI2014

• Thecementandbuildingmaterialsindustryisheavily

dependentonconventionalfossilfuels,suchasnaturalgas,oil andcoal, atallstagesoftheproductionprocess

• Somealternativefuels(biomass,usedtires,plasticwaste,

etc)canbeusedtomeetthethermalneedsofthe

productionprocess,thusreducingtheuseofnon-

renewablesourcesanddecreasingcosts

• Whenburningalternativefuels,therearetwovariablesto

consider:itsthermalpotentialanditsownimpactontheenvironmentaswell

• Fossilfuelsarestillthebestoptionbecausetheyprovidethebestbalanceofthermalpotentialandcost,despiteits

negativeimpactonenvironment

• Secil hasalreadybetter/similarlevelsofalternativefuelsas

EU28averagebutsomespecificplantsinEUareabletouse

non-fossilfuelsatahigherlevel

47 5340

65

0

10

20

30

40

50

60

70

80

90

100

Secil

(Portugal)

Secil"Best

Practice"

EU28 EU28"Best

Practice"

(Germany)

FossilFuels AlternativeFuels

MaintypesoffuelsusedatSecil andintheEU28(%oftotal)

30

Despitetheimprovementsinitsproductionprocess,cementandbuildingmaterialsindustryarestillakeycontributortotheglobalGHGemissions

Greenhousegasesemissions

Source:Ecofys,WBCSD,TheEllenMacArthurFoundation

• Globally,cementproductionalone

isresponsiblefor7%ofannualGHGemissions

• Thecementandbuildingmaterials

industrycontributestothe

emissionsofthesecondmostpollutantconsumptioncategory

• Emissionsfromcementproduction

comefromtheuseoffuels(around

40%oftotalemissions)toheat

limestone,clayandsand;thecalcinationprocess(about50%of

total);andtheuseofelectricity

andtransportof10%ofthetotal)

MainconsumptioncategoriesandtheirshareinglobalGHGemissions(%oftotal)

21,6

21,2

16,2

13,6

12,7

7,5

5,1

2,1

Education,medicalcare,

publicandotherservices

Shelterandconstruction

Mobility

Furnitureandhousehold

appliances

Foodandtobacco

Electricityuse

Fueluseforspaceheating

andcooking

Clothing

Mainpollutingsectors

%

Petroleum,

chemicalsand

non-metallic

mineral

products

31.7

Electricity,gas

andwater27.8

Miningand

quarrying11.2

Electrical,

machinery,

metalsand

manufacturing

11

Relevantcategory

31

Thecementandbuildingmaterialsindustryalsoproducesasignificantpartofwasteandresiduesthatcould(andshould)berecovered

Waste

Activitiesaffectedbythecementandbuildingmaterials

industry

Wastenotoriginatedfromthecementandbuilding

materialsindustry

Source:EurostatReport,Ecofys,Cembureau

Note1:Excludingmajormineralwaste

Globalwasteproductionbyeconomicactivityandtypeofwastetreatment1 inUE28(2012,%dototal)

• Thecementandmaterialsindustry

contributestowastein3keyeconomicactivities,which accountfor73%oftheglobalwaste

• Themainproblemofwasteproduction

relatestothefactthatasof2012,34%ofvaluablewastethatwaslostthroughlessfavourabletypesoftreatment,suchasincinerationfordisposalandlandfill

• Inthecementandbuildingmaterials

industry,thepropertreatmentofwaste

canleadtosavingsconcerningfossilfuels,GHGemissionsandnaturalresources

33%

29%

11%

8%

19%

Construction

Miningandquarries

ProductionProcesses

Domestic

Other

activities

51% 29%

13% 5%

2% Reuseandrecycling

Landfill

Incineration/

energyrecovery

Incineration/

disposal

Backfilling

Originofwaste Destinationofwaste

32

Increasingenvironmentaldemands,mainlydrivenbytheParisAgreement,makeitcrucialforcementcompaniestoredefinethecurrentbusinessmodelinordertoensurecontinuityinthemediumandlongrun

Environmentalissuesandregulation

Source:Secil/NovaSBE team,EuropeanCommission

Extractionofnaturalresources Fossilfuelsconsumption

Greenhousegases

emissions Waste

20%reductioninGHG

emissions

Anincreasein

energyefficiency

consistsin

decreasing

consumption

throughenergy

recoverysystems

orother

technologies

70%CDWvalorization

20%ofrenewable

energysources

20%increaseinenergy

efficiency

Impliesashiftto

othersources

(solarpower,

hydroelectric

power, biomass

andthe

renewablepartof

waste,among

others)

Reductionof

GHGsuchas:

carbondioxide

(CO2),methane

(CH4),nitrous

oxide(N2O),and

F-gases

Reusingand

recyclingCDW

intothe

productionof

productsorasa

sourceofenergy

Notargets

Inconformity

Noconformity

MainEnvironmentalissues

EUobjectivesfor2020

Portugal’sconformitywithtargets

33

PortugalisalreadyaheadoftheEUrenewableenergyandenergysavingstargets

EuropeanUnionObjective:Targetof20%ofenergyoriginatedfromotherrenewablesourcesandincreaseof20%inenergyefficiency

Source:Eurostat

Percentageofrenewableenergyongrossfinalenergyconsumptionin2014(%oftotal)

16%

27%

EU-28 Portugal

PercentageofprimaryandfinalenergysavingsinEU28in2014(%)

• Portugal alreadyhasahighproductionofenergyfromrenewablesourcesandisabovethetargetfor2020with

27%oftotalenergyduetoitsmoredemandingnationaltargetof31%

• Inthecementandbuildingmaterialsindustry,renewableenergycomesmainlyfrombiomass

• Intermsofenergyefficiency,Portugalalreadyachievedasavinghigherthanthe20%targetin2014,inboth

primaryandfinalenergysavings

Target2020=20%

Target2030=27%

Target2020=20%

16% 17%

Primaryenergy Finalenergy

OK

34

PortugalisfarfromreachingtheEUtargetsforGHGreductionsandinfacthasbeengrowingitsemissions

EuropeanUnionobjective:20%reductioningreenhousegasesemissions

Source:Eurostat

Target2020=80%

Target2030=60%

Target2050=20%

77%

109%

EU-28 Portugal

• Themaingreenhousegasesare

CarbonDioxide(CO2),Methane

(CH4),NitrousOxide(N2O)and

Fluorinatedgases(F-gases)

• Inthecementandbuildingmaterials

industry,CO2 isthebiggestproblemduetotheheavyuseoffossilfuels,

especiallyinthecementproduction

process

• Whilemostcountriesexhibita

decreaseinemissionscomparedto

1990,Portugalshowsasignificantincrease

Emissionsofgreenhousegases(Baseyear=1990)

!

35

PortugalstillhasalongwaytoreachtheEUtargetsforCDWreuseandrecycling,whichrequiresstrongcooperationbetweentheindustryandtheregulators

EuropeanUnionobjective:Targetof70%onConstructionandDemolitionWastevalorization rate

Source:EuropeanCommission

QuantityofgeneratedCDWandpercentageofreuseandrecyclinginGermany,France,SpainandPortugal(2011)

• Thereuseorrecyclingofconstructionand

demolitionwastenotonlydirectly

benefitstheenvironmentbutcanalso

reducethecostsofproducingconcreteand other building materials

• InPortugal,theconstructionand

demolitionwastevalorizationrateis

around5%,whichclearlyrequiresahugeimprovementtoreachthe70%targetfor2020

• Thelowercostassociatedwithlandfills,

thelackofhighqualityrecycledwaste

andthelogisticsneededtotransportand

recyclethesematerials,makethistarget

adifficultproblemtosolve

• Thesolutiontotheproblemwillprobably

requirespecificregulationandincentives

86%

45%

14% 5% 0%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0

10

20

30

40

50

60

70

80

90

Germany France Spain Portugal

Production(Milliontons) Reuseorrecycled(%)

!

36

InadditiontotheEUtargets,thecreationofaCarbonTaxconsistsinapossiblethreattocementandbuildingmaterialscompanies

RationalebehindaEUCarbonTax

Source:UnitedNations,FinancialTimes,CarbonTaxCenter,TheWashingtonPost

?

Greenhousegasesasthe

maincauseforglobal

warming(CO2,methane,

nitrousoxideand

fluorinatedgases)

Thecostof

purchasingfossilfuels

ismuchlowerwhen

comparedto

renewablesources

Theoverallobjectiveforlimiting

theaveragetemperatureriseof

theplanettolessthan2°Ccanonly

beachievedifcountriesreduce

theirgreenhousegasesemissions,

ofwhichCO2 isthemainpriority

duetoitsweightintotal

greenhousegases

Thesolutionisto

chargeaCarbonTax

thatwillmake

companiesconsider

thetransitionto

renewableenergy

sources

The report from the Intergovernmental Panel on Climate Change (IPCC) shows the urgency for drastic changes andsupports the implementation of the carbon tax:

• In order to remain below 2° C, emissions must decrease from 40% to 70% globally between 2010 and 2050

• Delaying additional mitigation to 2030 will substantially increase the technological, economic, social and

institutional challenges associated with limiting global warming throughout the 21st century to below 2°C in

relation to pre-industrial levels

37

In additiontothepossibilityofastandardcarbontax,thecapallowancesforindustryemissionsarelikelytobereduced

Source:EuropeanCommission,CarbonTaxCenter,Ecofys;EstimatesdoneforSecil cementbusinessinPortugal2015

?

The EU emissions trading system (EU ETS) is a policy created to fight climate change and reducegreenhouse gas emissions.This system works on a “cap and trade” principle: a cap is set on the total amount of greenhouse gases

emitted by each installation. This cap is in constant reduction overtime so that total emissions fall all

over the world.

Each year, companies have to ensure they possess enough allowances to cover its emissions in order to

avoid heavy fines.

CurrentETSsystem Possiblefuturesystem

• Tradesareallowed:whenwithremainingallowances

companiescansellthemtoothersinneed,oreven

sparethemtocoveritsfutureneeds.

• Secil isfarbelowitstargethavingunusedCO2sales

currentlygeneratingnearly 1%ofTotalRevenuesandrepresenting 6%ofEBITDAofSecil cementbusinessinPortugal

• TheETSislittleeffective- hasnotsubstantially

reducedemissions

• Avoidslow-carboninvestments,sincecompaniescan

cheaplypurchaseallowanceselsewhere

• Ifthiscapisreduced,companieswilllikelyexceed

theiremissionslimitsandhaveserious

consequencesfortheirbusinesses:

• Increasingcostsforcompanies

• Heavyweightonrevenues

• Reductiononproductionorincreasingprices

• Investmentinclean,low-carbontechnologies

38

Concreteisthemostusedbuildingmaterialduetoitsinherentqualities/characteristicsdespiteitshighenvironmentalimpact

Mainconcretecharacteristics

Source:Secil/NovaSBE Team,WorldBusinessCouncilforSustainableDevelopment(WCBSD)

Strength

Workability

Durabilityandsafety

Materialavailability

Description

• Onlyconcretecanbeusedforheavystructuressuchasbuildings,bridges,tunnelsanddamsduetoitsstrength

• Apropertyoffreshlymixedconcretethatdeterminesitsworkingcharacteristics,i.e.theeasewithwhichitcan

bemixed,placed,compactedandfinished

• Workabilitymakesconcreteaversatilematerialthatcanbeusedinmanydifferenttypesofstructureandcan

producemanydifferentshapes

• Concrete,beinginert,compactandnon-porous,isnotweakenedbymoisture,mould orpestsovertime

• Concretestructurescanwithstandnaturaldisasterssuchasearthquakesandhurricanes

• Beingnaturallyfire-resistantconcreteformsahighlyeffectivebarriertofirespread

• Concreteanditsingredientsarewidelyavailableinanynativearea

• Comparedtoothercomparablebuildingmaterials(e.g.steel),concreteislesscostlytoproduceandremains

extremelyaffordable

• Themaintenancecostofconcreteisverylow

Costeffectiveness

Highenvironmentalimpact

• Althoughconcreteisthemostcompletebuildingmaterial,itsmixturerequirescementandaggregates,which

arerawmaterialsthatimposeagreatimpactintheenvironment

39

Whencomparedtoother“heavy”constructionmaterials,concreteisnotasharmfultotheenvironmentasitisperceived

Assessmentoftheenvironmentalimpactbetweenwood,steelandconcrete

Source:Secil/NovaSBE Team,CanadianWoodCouncil

0% 20% 40% 60% 80% 100%

Primaryenergy(Gj)

GlobalWarmingPotential

(Eq.CO2kg)

Airpollution*

Waterpollution*

WeightedResourceUse

(kg)

SolidWastes(kg)

Wood

Steel

Concrete

EmbodiedEffectsofwood,steelandconcreteacrossenvironmentalmeasures (%oftotal)

• Woodoutperformssteelandconcreteinallmeasuresasconstructionmaterials

• Concretehasparticularconsequencesfortheenvironmentregardingtheuseofresourcesandgreenhousegasesemissions

• Concretecontributesto29% moregreenhousegasesemissions,anduses50%moreresources(fromaweightedresourceuseperspective)whencomparedtowood

• Althoughconcretehasthehighestenvironmentalimpact,woodandsteelalsohaveasignificantenvironmentalimpactandlackcharacteristicsthatmakeconcretethemostusedbuildingmaterial

40






1

2

1

3

4

5

41

TheSustainabledevelopmentconceptwascreatedtohelpsocietiesbeawarethatsustainabilityisonlyachievedifsocial,economicandenvironmentallimitationsaretakenintoaccountsimultaneously

SustainableDevelopmentandtheLinearEconomy

Source:Ellen MacArthurFoundation

• Sincetheoriginofthesustainabledevelopmentconcept,

severalrestrictionswerecreatedwiththegoalofreducingnegativeenvironmentalandsocialexternalitieswhilemaintainingeconomicviability

• However,thecurrentIndustrialeconomyfollowsalinearmodelofresourceconsumption,whichhasagreatenvironmentalimpact

• AccordingtotheOECD,approximately65billiontonnesofrawmaterialsenteredtheglobaleconomicsystemin2010,

andthisfigureisexpectedtogrowtoabout82billiontonnes

in2020(intermsofvolume)

• Theextractionofnaturalresourcesandothermajor

environmentalissuesrelatedtothelineareconomymakeit

crucialtore-thinkthecurrentproductionandconsumption

modelinordertoachievesustainability

Social

Environmental Economic

Sustainable

Bearable Equitable

Viable

42

TheproblemisthattheLinearEconomyconceptanditsinherentbusinessmodelswillnotbeviableasenvironmentalpressuresincrease

TheLinearEconomyanditslimitations

Source:EuropeanCommision,EllenMacArthurFoundation

Thelinear“Take,Make,Dispose”economicmodel Descriptionofthemodel

Themodelrepresentsanenormouswasteofusefulmaterials

andenergythatinmostcasesarenotrecovered

Materialsandenergy

Themodelputsunduestrainonlimitedlandfillspaceandthe

incinerationprocesscontributestotheemissionofpollutant

gases

Problems Implications

Landfillsandincineration

Naturalresourcesscarcity

Themodelisbasedontheassumptionthatresourcescanbe

alwaysextractedbuthumanityisusingnaturalresourcesfaster

thantheycanregenerate

MainDriver

World’spopulationgrowth

• Companies harvestandextractmaterials,usethemto

manufactureproducts,andsellproductstoconsumers

• Consumers usetheproductandthendisposethem

whenproductsnolongerservestheirpurpose

• Afterdisposal,asignificantpartofthewasteis

landfilledorincinerated,whichmeansthatallthe

valueislost

43

Currentconsumptionandpopulationtrendswillnotbesupportedinthelongterm,thusmakingitclearthatlinearmodelswillhavetochange

ProblemsoftheLinearEconomyinnumbers

Source:UnitedNations,UnitedNationsEnvironmentProgramme,OECD,WorldBank

By2030,populationisexpectedtogrowby15%to8.5Billioncomparedtocurrentlevels

By 2030,moderateUnitedNationsscenariossuggestthatifcurrentpopulationandconsumptiontrendscontinue,

wewillneed2Planets tosupportconsumptionlevelsatthecurrentgrowthrate

By2050,around140Billiontonsofnaturalresources willbeconsumedperyear– 3timesthe

currentrate

By2025,thequantityofwasteproducedisexpectedtogrowin70%to6Milliontons/day

8.5B

By2030,3billionpeoplefromdevelopingcountrieswill

riseintothemiddleclass,andtheglobalmiddleclasswillhaveapproximately5Billionpeople

5B

Demographicfactors

Creationofanunprecedented

globaldemandforenergy andresources,and,consequently,

anincreaseinwaste

Environment-relatedfactors

140B

3B

44

TheCircularEconomymodelappearedasasolutiontosustainabilitylimitationsofthe“take,make,anddispose”systembydesigningandoptimizingproductsformultiplecyclesofdisassemblyandreuse

TheCircularEconomy

Source:EllenMacArthurFoundation

Acirculareconomyisrestorativeandregenerativebydesign,andaimstokeepproducts,components,and

materialsattheirhighestutilityandvalueatalltimes.

Concept

Shifttowardtheuseofrenewable

energyReplacethe“endoflife”conceptwithrestoration

Eliminatewastethroughsuperior

designEliminatedeuse

oftoxicchemicals

• Decreaseresource

dependence

• Increasesystemresilience

(e.g.,tooilshocks)

• Superiordesignofmaterials

products,systemsand

businessmodels

• Designwiththeintentionof

disassemblyandreuse

• Avoidthelossofvalue

relatedtodisposalandeven

recycling

• Differentiate

consumableanddurable

componentsofa

product

• Consumablesshould

returntothebiosphere

• Durablesshouldbe

reusedindefinitely

• Toxicchemicalsimpair

reuse

• Suchchemicalscause

environmentaland

healthissues

45

TheCirculareconomyhasthepotentialtoturnthelimitationsofthelinearmodelintoeconomic,environmentalandsocialbenefits

FromaLineartoaCircularEconomy

Source:EuropeanCommission

• Lostvalueofmaterialsandproducts

• Scarcityandvolatilepricesofresources

• Continuouslyincreasingamountofwastegenerated

• Unstablesupplyofrawmaterials

• Environmentaldegradationandclimatechange

LimitationsoftheLinearEconomy BenefitsofCircularEconomy

• Thevalueofproducts,materialsandresourcesismaintainedintheeconomyforaslongaspossible

• Wastegenerationisminimized

• Newbusinessopportunities,andintroducinginnovativeproductsandservices

• Createseconomic,socialandenvironmentalgains

46

AccordingtotheEllenMacArthurFoundation,theCircularEconomyhasthreefundamentalprinciples,eachoneaddressingseveraloftheresourceandsystemchallengesthatindustrialeconomiesface

ThethreefundamentalprinciplesofaCircularEconomy


Preserveandenhancenaturalcapital

Optimizeresourceyields

Fostersystemeffectiveness

• Control finite stocks and balance renewable resource flows

• Circulate products, components, and materials at the highest utility at all times in both

technical and biological cycles

• Design for remanufacturing, refurbishing, and recycling to keep components and materials

circulating in and contributing to the economy.

• Reveal and design out negative externalities, which implies reducing damage to human

utility, such as food, mobility, shelter, education, health, and entertainment, and managingexternalities, such as land use, air, water and noise pollution, release of toxic substances, and

climate change.

47

The“ReSOLVE”frameworkconsistsonamorepracticalapproachwithgeneralinitiativesaimingtoachievethethreefundamentalprinciplesoftheCircularEconomy

The“ReSOLVE”Framework:GeneralinitiativestoachievetheCircularEconomyobjectives


REGENERATE

OPTIMIZE

LOOP

VIRTUALIZE

EXCHANGE

SHARE

• Shifttorenewableenergyandmaterials

• Reclaim,retain,andrestorehealthofecosystems

• Returnrecoveredbiologicalresourcestothebiosphere

• Shareassets(e.g.cars,rooms,appliances)

• Reuse/second-hand

• Prolonglifethroughmaintenance,designfordurability,upgradability,etc.

• Increaseperformance/efficiencyofproduct

• Removewasteinproductionandsupplychain

• Leveragebigdata,automation,remotesensingandsteering

• Remanufactureproductsorcomponents

• Recyclematerials

• Digestanaerobically

• Extractbio-chemicalsfromorganicwaste

• Directvirtualization(e.g.:books,CDs,DVDs,travel)

• Indirectvirtualization(e.g.:onlineshopping)

• Replaceoldwithadvancednon-renewablematerials

• Applynewtechnologies(e.g.:3Dprinting)

• Choosenewproduct/service(e.g.multimodaltransport)

Initiative Description

48

Thesystemdiagramillustratesthecontinuousflowoftechnicalandbiologicalmaterialsthroughthe‘valuecircle’,makingclearthekeyinitiativesthatshouldbetakenateachphaseoftheprocess

TheCircularEconomySystemDiagram*

Source:AdaptationfromtheEllenMacArthurFoundationDiagram

Serviceprovider

Partsmanufacturer

Productmanufacturer

Collection

Recycle

Biofuel

Regenerate

Renewables FiniteMaterials

Minimizeleakageandnegativeexternalities

Regenerate VirtualizeSubstitute

Consumer

BiochemicalFeedstock

Restore

User

Refurbish/

Remanufacture

Reuse/Redistribute

Maintain/Prolong

Collection

RenewablesFlow

Management

FlowofBiologicalMaterials

FlowofTechnicalMaterials

Biosphere

StockManagement

Preserveandenhancenaturalcapital

Optimizeresourceyields

Fostersystemeffectiveness

*Seeannex1forflowdescriptions

49

ThetransitionintoaCircularEconomyprinciplescanleadtobenefitsintheeconomic,environmentalandsocialdimensions

KeyFiguresandFactsabouttheCircularEconomy


Environment Economy

Social

• ReductionofCO2emissionsof48%until2030,and83%until2050,regardingsystemsofmobility,food

andconstruction

• Primarymaterialconsumptionmeasuredbycarand

constructionmaterials,syntheticfertilizer,pesticides,

agriculturalwaterandlanduse,fuelsandnon-

renewableelectricity,andlandforrealestate could

dropasmuchas32percentby2030and53percentby2050

• InEurope,theadoptionofthecirculareconomy

principlescanyieldannualbenefitsofupto€1.8trillionby2030duetothepotentialreductioninannualprimaryresourcecosts,cash-outcostsand

externalexternalities

• EuropeanGDPcouldincreaseasmuchas11percentby2030and27percentby2050inacircularscenario,comparedwith4percentand15

percentinthecurrentdevelopmentscenario

• Theadoptionofthecirculareconomymodelreducestheenvironmentimpactofmanyindustries,which

contributestoanincreaseinhumanwell-being- reductionofhealthissues(relatedtoair,landandwaterpollution),andmaintenanceofimportantnaturalresources

• Thepotentialvalueandjobcreationcanleadtoanincreaseindisposalincomeoffamilies,whichalsocontributes

toanincreaseinhumanwell-being

50

CleardriversaremakingtheCirculareconomymodelincreasinglyattractiveforseveralindustries,withcompaniesalreadyobservingopportunitiestoexplore

DriversoftheCircularEconomyandMarketDrivers


• Scarcityandincreasingdifficultyto

extractnaturalresources

• Sharpincreaseinrawmaterialpriceand

volatility

• Increasingenvironmentalregulationand

standards

• Pervasiveshiftinconsumerbehavior

• Continuousadvancesininformation

technology

• Efficiencyintheirglobalsupplychain,produce

quality,quantityandconsistencyofasecondary

rawmaterial

• Beinawin-winsituation,createvalue

• Brandimage

• Riskmanagement(rawmaterialshortage,

disruptioninthesupplychain,etc.)

• Environmentalefficiency(eliminationoftoxic

material,avoidaccumulationoftoxicity,CO2

footprint,energyefficiency,waterre-use,etc.)

• Innovation

CircularEconomyDrivers WhyareIndustriesinterestedintheCE?

51

Somecharacteristicsofthecurrentlineareconomyariseaschallengestoacceleratethetransitiontowardsthecirculareconomyacrossglobalsupplychains

ChallengesoftheCircularEconomy

Source:“IntelligentAssetsUnlockingtheCircularEconomyPotential”,EllenMacArthurFoundation

Description

• Thesize,complexityandglobaldispersionofsupplynetworks

• Forreverselogistics,take-backorotherinitiativestoworkglobally,various

legislationsneedtobesynched

Geographicdispersion

• Complex formulations(multiplematerialsandbuilt-infunctionality)paired

withthelackoflabellingmakepost-consumermaterialidentificationand

trackingdifficult

• Inability(ordifficulty)ofseparatingandrecuperatingvaluablematerials

fromtherecoveryprocess

Materialcomplexity

• Misalignmentofincentives

• Lackofmarketsatscale

• Lackofreversecapabilitiesandinfrastructure

Linearlock-ins

52






1

2

1

3

4

5

53

Althoughthecementandbuildingmaterialsindustryisverypollutingandfacesmanychallenges,itprovidesanirreplaceablegoodandthereareopportunitiestoexplorecircularityinitsproductionprocess

CircularEconomyappliedtotheCementandBuildingMaterialsIndustry

Source:Secil/NovaSBE Team.

Usageof

Alternative

Fuels

Maintenance

/Repair

Recycling

Usageof

Alternative

Materials

Other

industries

Other

industries

Gravel

Extraction

Rawmaterialsextraction

ClinkerProduction

CementProduction

Transportationandlogistics

ConcreteProduction

DemolitionConstructionConcrete

Transportation

Each circle represents opportunities toexplorecircularity in

the cement and building materials production process

54

Basedonthe“ReSOLVE”model,theTeamdevelopedthe“7Rs”frameworktobetterassessinitiativeswithgreatandspecificimpacttothecementandbuildingmaterialsindustry

The“7Rs”ProposedFramework


REDUCE

Drivers Description

RECYCLE

REMANUFACTURE

REUSE

RETAIN/PROLONG

REFINE/OPTIMIZE

RECOVER/RESTORE/REGENERATE

• Consumptionreductionorsubstitutionofspecificproductswhichhavethe

highestimpactfortheenvironment

• Recyclingwasteandendproducts;recoveringandconverting wasteinto

reusablematerialsorproducts

• Changeontheproductmanufacturingprocessanddesigntocreatesolutions

withlessimpactontheenvironment

• Reuseofproducts,materialsorenergyintheproductionprocessthatwould

bewastedotherwise

• Designsmarterproductsandsolutionswithalongerlifetimevalue,

promotingmaintenanceandrepairinsteadofsubstitutionanddisposal

• Recoveryorrestorationofresourcesusedintheproductionprocess.

Reductionofthelong-termenvironmental footprint

• Developmentofproductsthatreduceorinfluencepositivelyenergy

consumptionandresourcesduringitslifetime

55

TheTeamidentifiedinitiativesaimingtoreduceenvironmentalimpactandpromotecircularity

InitiativesthatSecil couldimplementacrossthewholevaluechain


Drivers Initiatives

Reduce 1Replacecement/concretebyothermaterials(wood,steel,glass,

ceramics, asphalt,bitumen,etc.)

Recycle 2 Recycletheendproductandcomponents (concrete)

Remanufacture

3 Adopt3Dprintingasanalternativebuildingtechnology

4 Usageof alternativefuels

5 Replaceclinker/cement withalternativerawmaterials(slag,fly-ashes,etc.)

Reuse 6 Reuseheat/energy/waterreleasedintheprocess

RetainandProlong7 Rehabilitatebuildings(insteadofbuildingnewones)

8 Constructbuildings withlongerlifespan

Refine/Optimize

9 ConcretethatabsorbsCO2

10Constructionofmoreefficientbuildingsthatoptimizeenergyconsumptionduring

itslifetime

11 CarbonCapture andStorage(CCS)

Recover/Restore/Regenerate 12 Landscaperecoverandrehabilitation (landfillsandquarries)

NONEXHAUSTIVE

56

Inordertoscopetheinitiativesanditsmainhypothesistheteamappliedaplannedmethodologytoeachsinginitiative

Threemainphasesoftheprocess


Phase2Phase1 Phase3Phases

Objectives

• Understandthe

Circulareconomy

conceptbasedon

theEllenMacArthur

framework

• Developaspecific

frameworkforthe

BuildingMaterials

Industry– 7R’s

Framework

• Identifyrelevant

industryinitiatives

foreachofthe“R”

drivers

• Analyzethepotential

andtheimpactfor

bothbusinessand

environment

• Selectthemost

relevantinitiativesto

developbasedonits

stageof

developmentandon

theimpactforSecil

• Understandthe

potential

recommended

approachforSecil

andtheexpected

implementation

challenges

BasedonTeamResearchandExpertInterviews

57

Reduce:Replace cement /concrete by other materials

Description


1

Naturalresources

Decreasedusage

ofnatural

resources,suchas

limestone,gravel,

clayandwater

andIncreaseduse

ofothernatural

resources(wood,

fuel)

FossilFuels

Decreasedusage

offossilfuelsdue

todecreased

cement

production

CarbonDioxide

Thereductionof

clinkerproduction

impliesa

decreaseinGHG

emissions

Waste

Wastefromother

materialscanbe

lessharmfulto

theenvironment

(ex:wood)

Thereductionofconcreteproductionwillalsoresultin

thereductionofcementandaggregates

Substitution of concrete due to the negative impact it has on the environment. Reducing the use of

concrete (and consequently of cement and aggregates) by replacing it with other materials such as

wood, glass, steel, ceramics, asphalt or bitumen.This initiative becomes even more relevant if the other industries are able to develop more

sustainable practices and if new regulation is created on this area.

Impactontheenvironment Impactonmaterials

RelevantContingencies

“Thisinitiativemustbetakenwithagrainofsaltbecause

othersubstitutestocementcanbemoreharmfulto

planetthanthecementitself.Inordertobuildwithwood

weneedtotakedownforests,steelismuchmore

pollutantinitsmakingprocess”– Eng.DinaFrade

58

Woodasatrendygreenalternativematerialworldwide

Source:SocietyofWoodScienceandTechnology

Wood stillretainssomeadvantagesovermore

industrial buildingmaterials likeconcreteorsteel:

§ Requiresmuchlessenergy-intensivemethodsto

processintoconstructionproducts

§ Woodisenvironmentalfriendlysinceit’srenewableandcanensureabiodiversehabitat.Treesalso

absorbCO2 astheygrow,makingitcarbonnegative

§ Thismaterialis5timesmoreinsulativethan

concrete,meaninglessenergyisneededtoheatand

coolawoodbuilding

§ Thereisalsotheaestheticappealofwood—its

earthycolorsandaromas,finegrains,durability,

dimensionalstability,workabilityandcost

effectiveness

§ However,forlarger,morerobustbuildingsand

infrastructures,concreteisfarmoresolidandlasts

longer

59

Recycle:Recycle the end product and components(concrete)

Description

Source:Secil/NovaSBE Team,The Cement Sustainability Initiative (CSI)

2

Naturalresources

Reductionof

naturalresources

usage,suchas

graveland

Increaseduseof

othernatural

resources(wood,

fuel)

FossilFuels

Mayneedto

incorporatemore

cementinto

concreteand/orit

isnecessaryto

counttheenergy

consumedto

processthewaste

CarbonDioxide

Noapparent

impact

Waste

Use(partof)the

constructionand

demolitionwaste

Maychangetherequiredconcretecomposition(more

cement)andincreaseitsproductioncosts

Recycling concrete consists in transforming construction and demolition waste into new aggregates,

thus replacing a fraction of the gravel extraction.



“Wearefullycapableofstoringandrecyclingconstruction

anddemolitionwaste.Theproblemisthatweneedthat

companiesbringusthatwaste.Wecanevenusethe

reverselogistics.Theproblemisthatthelandfillcostsare

socheapthatcompanieshavenoincentivestorecycle

theirwaste”– Eng.PedroMartins

“Incorporationofrecycledmaterialsincementproductionis

limitedduetotheinherentdecreaseinthequalityofthe

product– Themaximuminsertionisabout5%.”– Eng.MariaJoãoBotelho

60

Remanufacture:Adoption of 3Dprinting asan alternativebuilding tecnology

Description

Source:Secil/NovaSBE Team,3DPrinting Industry

3

Naturalresources

Decreaseduseof

naturalresources

dueto

optimizationand

reductionof

wasteinthe

process

FossilFuels

Decreaseinthe

useoffossilfuels,

derivedfromthe

reductionin

cement

production

CarbonDioxide

Lessclinker

productionwith

thereplacement

ofcementfor

othermaterials,

implyinga

reductioninthe

emissionofgases

intothe

atmosphere

Waste

Theaccuracyand

efficiencyof3D

printingmeans

lesswasteinthe

constructionand

manufacturing

process

Optimizationandreplacementbyothermaterialshasa

majorimpactonallcementproducts

3D Printing can have a huge potential if it enables significantly lower costs and time of construction.

This innovative method is still in a development stage but there are already final projects showing

how disruptive this technology can be for the construction sector. Initially, the main material used in

the printing was cement but there is the possibility of using other materials, such as plastics and

metals, and even recycled concrete.



“3Dprintingissurelygoodforenvironmentsincewecan

haveadirectinfluenceonthedosesusedinthefinal

mixtureandtheprinterprecisionandefficiencymake

wasteduringconstructionalmostnon-existent.Itcan

evenuserecycledconcrete”– Eng.António Nunes

“Thisisagamechanger.Itcanshapetheentireindustry”

– Mr.Fernandolopes

61

Example- 3DPrintinghasthepotentialtodrasticallychangetheconstructionindustry

Source:3DPrintingIndustry,CNET

10smallhousesbuiltinlessthan24hourscostinglessthan5000$each

Assembledinjust3hoursThisconstructiontookabout90daysandcost161000$

Eachfloortookonedaytobeproduced”off-site”andassembled

62

Example- 3DPrintingisveryflexibleandcanadapttomostconstructionneeds

Source:CNET

• First office building printed by a

3Dprinter

• Took 17days tobe produced andcost about 140000$

• The UAEPrime-minister intends to

have 25%of all Dubaibuildings3Dprinted

• Assembled inless than 2days

• System is based on “Lego”type

pieces that aredesigned tobe

assembled inan “Ikea”way

63

LafargeHolcim investedina3Dconcreteprintingventure

Source:LafargeHolcim website

Recently,LafargeHolcim haspartneredwiththe

Frenchstart-upXTreeE,specializedinlarge-scale3D

printedprojects:

• Thispartnershipmadepossiblethefirst3DconcreteprintedcreationsinEurope

• Thefirstoneisaload-bearingpost,witha

heightof4meters,tosupportthe

playgroundroofofamiddleschoolinFrance

• Thelatterisapavilionwitharevolutionary

designcreatedforIle-de-Franceregional

authority

64

Remanufacture:Usage of alternative fuels

Description


4

Naturalresources

Noimpact

FossilFuels

Theusageof

alternativefuels,

suchastiresand

biomass,reduces

theusageoffossil

fuels

CarbonDioxide

ReductionofGHG

emissionsby

burning

alternativefuels.

Renewable

energieswill

reducethe

emissionsaswell.

Waste

Thereisawaste

reductionsince

wastefromother

industrieswillbe

used.

Significantimpactoncement.Notonlyreduces

environmentalcosts,butproductioncostsaswell.

Instead of using the most common fossil fuels, such as coal and petroleum derivatives (petcoke) in

the production of cement, it is possible to use fuels, tires, biomass or even garbage, for the same

purpose. These alternative fuels will generate less impact on the environment, since the use of

renewable energy in the production process contributes to a lower consumption of fossil fuels and,

consequently, reduces CO2 emissions.



“Itispossibletorunakilnpurelyonalternativefuels.In

ordertodothatwewouldneedanewkilnandthecostof

productionwouldgreatlyincreasesincecoalandpetcoke

aremuchcheaper”– Eng.Ângela Nunes

“Renewablefuels,suchasBiomass,donothavethe

requiredcalorificpropertiestoheatuplimestoneinthe

clinkerproductionprocess– otherfuelsare

indispensable.”– Eng.MariaJoão Botelho

65

Example– SolarEnergyasFuel

Source:PaulScherrer Institute,Holcim

HolciminpartnershipwithleadingSwissresearchinstitutesPaulScherrer InstituteandETHZuricharedeveloping“solarcement”

• “Solarsteamgasification”consistsinthe

productionprocessofsyngas throughsolarenergy,becominganexcellentfuelthatcanbe

usedforheatingcementkilns

• Syngasisproducedbyaddingrawmaterials

suchascoal,wasteorbiomasswiththesolar

energy,generatingcarbon.Itsreactionwith

watervapouriscalledsyngas (carbonmonoxideandhydrogen)

Oneoftheadvantagesofthistechniqueisthat

syngascontainsmore40%ofenergywhen

comparedtowasteusedasfuel

66

Remanufacture:Replaceclinker/cementwithalternativerawmaterials

Description


5

Naturalresources

Reductionofthe

extractionof

naturalresources

(limestoneand

otherraw

materials)dueto

thedecreasein

theproductionof

clinker.

FossilFuels

Reductionof

clinkerproduction

and,

consequently,in

theusageoffossil

fuels.

CarbonDioxide

Thedecreasein

clinkerproduction

alsotranslates

intoadecreasein

CO2 emissions.

Waste

Wastereduction

– ashandslagare

wastefromother

industries

Significantimpactoncementcostsandquality(positive).

Notonlyreducestheenvironmentalimpactofthecement

industrybutitalsoreducescementproductioncosts.

To produce cement it is necessary to extract natural resources, such as limestone, sand and clay.

Alternatively, waste from other industries such as fly ash and slag can be used, which reduces the

use of clinker or cement, while eliminating waste from other industries at the same time.

Incorporation of alternative raw materials has 3 different outcomes:

• Reduction of the weight of clinker on cement

• Reduction of the weight of cement in the end product due to more durability or quality provided by alternative materials

• Performance enhancer – it is proven than the usage of raw materials has a positive impact on the concrete performance.



“Secondaryrawmaterials,suchasslagandflyingash,are

eitheravailableinlowquantitiesinthemarketorhavea

pricewhichmakesitinviable,respectively.”– Eng.RaquelNascimento

“Corkwastehasahugecommercialpotentialsinceitisa

trendymaterialthathasacousticandthermalproperties.

Ifuseditalsosolvesaproblemofwasteinthecork

industrywhileatthesametimereducestheweightof

cementonconcrete”– Eng.Ângela Nunes

67

Reuse:Reusethe heat/energy/water released intheproduction process

Description


6

Naturalresources

Waterreuse,thus

implyinga

reductioninthe

extractionof

water

FossilFuels

Withthereuseof

heat,fossilfuels

arespared.

CarbonDioxide

Bydecreasingthe

usageoffossil

fuels,CO2

emissionsare

reducedaswell

Waste

Noimpact

Reducesenvironmental-relatedcostsofcement

During the cement production process, energy is generated, especially on the form of heat, which

can be reused. In the same way, water used in the process can be reused.



“Inthefactorieswealreadyreusemuchoftheheatand

steamgeneratedintheprocess”– Eng.António Nunes

“Wewouldnothavesignificantbenefitstoinvestin

moreefficientsystemsgiventhatSecil alreadycaptures

mostofthepotentialtoreuseenergyinitsindustrial

facilities.It’smostlymarginalgains.”–Mr.FernandoLopes

68

Retain/Prolong:Rehabilitation of buildings

Description


7

Naturalresources

Decreaseinthe

productionof

cementand,

consequently,in

theextractionof

naturalresources.

FossilFuels

Cement

production

reductionimplies

thereductionin

theusageoffossil

fuels.

CarbonDioxide

Lesscement

production

impliesa

decreaseinthe

productionof

clinker,which,in

turn,reduces

emissionsof

gases.

Waste

Rehabilitation,as

analternativeto

demolition,

impliesa

reductionof

waste.

Therehabilitationofbuildingswillleadtoareductionin

theconsumptionofcementandconcrete.

Option to rebuild or rehabilitate a building at the end of its useful life. In the case of rehabilitation

(instead of demolition and construction of a new one), there is less consumption of

concrete/cement in return for a higher consumption of other building materials (ex: mortars).



“Rehabilitationismuchmorefocusedonmortarsand

downstreamsolutionsthancementitself”– Eng.DinaFrade

“Weneedtoplaceourselvesmuchmoredownstreamin

thevaluechainandcreatediversifiedsolutionsthatfit

eachprojectneeds”– Eng.DinaFrade

69

Retain/Prolong:Construction of buildings with longerlifespan

Description

Source:Secil/NovaSBE Team,PortlandCement Association

8

Naturalresources

Thereductionof

theproductionof

cementinthe

longtermimplies

areductionof

naturalresources,

suchaslimestone

andclay.

FossilFuels

Reductioninthe

usageoffossil

fuels,derived

fromalower

cement

production.

CarbonDioxide

Reductionof

pollutinggases

emissions.

Waste

Thelowerneed

fordemolition

willreduce

constructionand

demolitionwaste

Itwillimplyanincreaseinqualityandcostofcement.

Use of raw materials that increase the durability and strength of the cement, thus increasing the

longevity of the final construction. By building more durable and sturdy buildings, we are reducing

the need for long-term cement production and hence its environmental impact.



“Buildingwithanemphasisonqualityanddurabilityis

crucial.Inordertodothatwewouldneedtoprovidea

servicewherewewouldguaranteethatourproductsare

properlyusedandapplied”– Eng.DinaFrade

”BuyingsomeproductsfromSecil butusingotherlow

qualitymaterialscandamagethecompanyimageover

time”– Eng.MariaJoão Botelho

70

Refine:Concrete that absorbs CO2

Description


9

Naturalresources

Noimpact

FossilFuels

Dependingonthe

production

process,there

couldbechanges

intheuseoffossil

fuels

CarbonDioxide

Although

production

emissions

remainedthe

same,thiswould

makecement

productionmuch

moresustainable

Waste

Noimpact

The possibility of producing cement or concrete that has the capacity to absorb CO2 from the

atmosphere could reduce the industry's environmental footprint. Although there are studies being

developed to enhance the absorption of carbon dioxide in the production process, the concrete itself

already absorbs CO2 during its lifetime. It’s a natural process called carbonation – since its production

process is made by decarbonating limestone, over its lifetime is natural that concrete carbonates

again, absorbing CO2 from the atmosphere.



Thistypeofconcretewillincreaseitscostbecauseit

requiresamorecomplexformulationwithothercostly

materials

“CementandconcretenaturallyabsorbCO2.Itisanatural

chemicalprocess.Cementisdecarbonizedinthe

productionprocessand,torestorebalance,cementwill

carbonize(absorbCO2)duringitslifetime”– Eng.RaquelNascimento

”IfwemadeconcreteabsorbCO2 itwouldmeanthatthe

steelstructuresinsidetheconcretewouldhaveamuch

fastercorrosion,loweringdurability”– Eng.DinaFrade

71

Example– ConcretethatabsorbsCO2

Source:Novacem

Standard cement is produced by heating limestone or clay at

1500 to 2000ºC, releasing 800 kg of CO2 per ton of cement

According to Novacem, a company originating from the Imperial College of London,

this product’s typical emissions are of -50kg to +100kg CO2 /ton cement, meaning it

absorbs about 600 kg of CO2 per ton of cement.

Novacem’s cement is produced with magnesium

silicates - which is a raw material that requires half of

the temperature needed to heat limestone, and also

absorbs CO2 while it hardens

72

Refine:Constructionofmoreefficientbuildingsthatoptimizeenergyconsumptionduringitslifetime

Description

Source:Secil/NovaSBE Team,WBCSD

10

Naturalresources

Noimpact.

FossilFuels

Energyefficiency

willimplya

reductioninthe

usagefossilfuels

CarbonDioxide

Thereductionof

fossilfuelsusage

willcausea

reductionofCO2

emissions

Waste

Noimpact

Increaseinthecostofcementandconcreteduetoa

morecomplexformulationwithothercostlymaterials

The construction of houses with materials that have a high thermal capacity will enable these

houses to be much more efficient from an energetic perspective.

This topic becomes especially relevant when embedded in a service throughout the chain and

building lifecycle rather than just selling products.



“Concretestructuresaremuchmorethermalandenergy

efficientinthelongtermthanwoodorsteelstructures”

– Eng.Ângela Nunes

“Cementcanbemixedwithalmostanything,enablingthe

productionofconcretesthatcanhavethermal,acoustic

orevenlightweightpropertiesdependingonthecountry

andareaofconstruction”- Eng.Ângela Nunes

73

Refine:CarbonCaptureandStorage(CCS)

Description

Source:Carbon Captureand Storage Association

11

Naturalresources

Noimpact

FossilFuels

Noimpact

CarbonDioxide

Thistypeof

technology

reducesCO2

emissionstothe

atmosphere

Waste

Noimpact

Willincreasecementcostofproductionhaving,

therefore,influenceonconcreteandmortarscost

Carbon Capture and Storage (CCS) is a technology that allows the capture of about 90% of the CO2

emissions produced during the cement production, and deposit it underground.



“ThisisjustdelayingaproblembyburyingCO2 inthe

groundinsteadofsendingittotheair”– Eng.DinaFrade

“Itisnotviableeconomicallynorenvironmentally,butitis

possible,yes”- Eng.Ângela Nunes

“Secil madeastronginvestmentoncarboncaptureand

recyclingbyusingmicroalgaetoabsorbCO2 andcreate

biochemicalcompoundsusedinotherindustries”– Eng.António Nunes

74

Example– Creation of microalgaeforCO2absorption

Source:Secil-Group Website

Inordertosequesterthecarbondioxideemittedbycementproduction,Secil hasinvested

around15millioneurosinaprocessthatusesmicroalgaetoabsorbpartofthereleasedCO2

andatthesametimecreatesvalue-addedproductsforotherindustries

Thecommercializationofmicroalgae- forthedifferentmarketsthatusethemasa

sustainable,naturalingredientrichinvariousbiochemicalcompounds- willbeabusiness

activitycentralizedbythecompanyAllmicroalgae - NaturalProducts,aunitbelongingtoSecil

75

Example- CarbonCaptureandStorage(CCS)

Source:CarbonCaptureandStorageAssociation,JouleUnlimited

ThistechniquecanreduceCO2 emissionsinitsplantsupto

40%.TheprocessofcapturingandstorageCO2 has3

phases:

• CarbonDioxidecapture

• Transportation

• StorageCO2 underground

CompaniesinvestinginCCS:

• Heidelberg aspioneerinthistechnologyinNorcemplant, inBreivik

• JouleProject– Pioneerintransformingitsemissionsin

fuels.Usessolarenergy,nonpotablewaterandbacteria

toproducefuel

• Calera– companythatcapturesCO2 andconvertsitin

calciumcarbonate,soitcanincorporateitinitscement

andproducecementmaterialswithit.

Plant Site

CO2

emissionscapturedperyear(M/Ton)

ValVerde NaturalGasPlants Texas,EUA 1,3

EnidFertilizer Oklahoma,EUA 0,7

ShuteCreekGasProcessing

Facility

Wyoming,EUA 7

Sleipner NorthSea,Norway 1

TheGreatPlainsSynfuelsplant

andWeyburn-Midale Project

Saskatchewan,Canadá 3

InSalah Algeria 1

TheSnøvit plant Norway 0,7

CenturyPlant Texas,EUA 8,5

Examplesofoperationalcommercial-scaleCCSplantsintheworldandcaptureofCO2 emissionperyear

76

Recover/Restore/Regenerate:Landscaperecoverandrehabilitation(landfillsandquarries)

Description


12

Naturalresources

Noimpact

FossilFuels

Noimpact

CarbonDioxide

Noimpact

Waste

Therecovery

impliesan

efficientuseof

thewastein

theselocations


Companies can recover the landscapes of landfills and quarries, minimizing its implicit

environmental impact.


Ithasanimpactonthecostsassociatedwiththe

extractionofrawmaterialsfrombothaggregatesand

limestone.

“Thereisalreadylegislationforthisinitiative.Secil

rehabilitatesandrestoresallitsquarriesbyplantingnew

treesandcontributingtobiodiversityinrehabilitated

landscapes”– Eng.RaquelNascimento

77

Giventhestrictenvironmentalcontextthattheindustryisfacing,anassessmentofSecil’s positiontofacetheseissuescanbedonewithaSWOTAnalysis


EnvironmentalSWOTAnalysis

Strengths Weaknesses

Opportunities Threats

• InvestmentinCCU(carbon,captureand

usage)technologies,suchasmicroalgae

• Alreadyusingalternativefuelssuchas

biomass,usedtiresandotherwasteand

alternativerawmaterialssuchasslagand

ashwheneverpossible

• Presenceandcooperationinenvironmental

institutionssuchasBCSDandCSIand

experienceinpartnershipswithuniversities

• Secil canbecomepioneerin3DPrinted

constructioninPortugal

• Secil’s equipmentisfullypreparedto

processCDWinordertorecycleconcrete

• Shiftondemandforvalueaddedproducts

andservicescomplementarytothecement

industrythatonlyfewplayerscanproduce

• CanleadR&D/innovationpilotprojects

intothemarketgivenitsreputation

• Itscorebusiness– cementproduction–

releasestonsofCO2totheatmosphere

• Currentkilndoesn’tsupportthe

combustionofalternativefuelsat100%

• Insufficientrenewableenergysourcesin

someofitsfacilities

• Inefficientlyreusingenergyandwaterthat

arereleasedintheproductionprocess.

• Carbontax

• EUenvironmentallegislationwithstrict

targets

• Shifttootherconstructionalternative

materialssuchaswood,steel,inorderto

reduceCO2emissions

• Rehabilitationindevelopedcountriesis

becomingincreasinglymorerelevantthan

newconstruction

78

Secil shouldfocusitseffortsontheinitiativesthatarestillataearlydevelopmentstageandthatcanhaveasignificantimpactonitsbusiness

PriorityMatrix


DevelopmentStage

ImpactonSecil

7

4

3

9

82

6

10

12

AlreadyDeveloped Notdeveloped

11

ActionPriorityDrivenbyBusiness

Effortthatrequires

external(regulatory?)

push

(Probably)Driven

byRegulation

1*5

1.Replacecement byothermaterials

2.Recycleconcrete

3.3Dprinting

4.Usageof alternativefuels

5.Replaceclinker/cement withalternativeraw

materials

6.Reuseheat/energy/water

7.Rehabilitatebuildings

8.Constructbuildings withlongerlifespan

9.ConcretethatabsorbsCO2

10.Energyefficientbuildings

11.CarbonCapture andStorage(CCS)

12.LandscaperecoverandrehabilitationLowImpact

HighImpact

Prioritiestobefurtherexplored

1*- Initiative willnotbeconsideredasstatedinitially

79

TheprioritymatrixclearlyidentifiedwhataretheinitiativesorgroupofinitiativesthathavethemostimpactandimportanceforSecil

TheFivePrioritiesfortheFuture


Adoptionof3DPrintingforconstruction

Recycleendproductsandcomponents

(concrete)

Usingnewmaterialsforbuilding

rehabilitation(insteadofnewconstruction)

Evolvebuildingconstructiontodevelopaserviceprovidingefficienthousesolutions

Alternativeproductstoconcreteandcementforconstruction

1

43

2

5

80

Adoptionof3DPrintingforconstruction(1/2)


Developmentstage

Businessimpact

Environmentalimpact

Initiativedescription

• Thepotentialusefor3DPrintingisenormousrangingfrom

smalldwellingsassembledon-sitetolargeinfrastructuresfor

commercialandpersonaluse

• Currently,3DPrintingcanbeefficientlyusedforpre-cast

modules,thatneedtobeassembledon-site,andfull

printingofsmallbuildingsstructures

• Therearealreadysomecompaniesexploring3DPrinting

solutionsintheconstructionsector.Huashang Tengda,

Winsun andLafargeHolcim areexamplesofcompaniesthat

havealreadyhadsuccessfulresults.

• Lessuseofcementonendproductsfinalmixtureduetoa

moreefficientmixandintroductionofnewmaterialsmore

suitablefor3DPrinting

• Decreaseinconstructiontimewhichmeansfasterandmore

efficientcementandconcretedeliveries

• Needforcementandconcretemixturesthatcanbeused

efficientlyon3DPrintingprojects

• Costreductiononbuildingconstructionthatcangoupto80%

• Relativelyhighinvestmentintheprinter,software

developmentandtests,sinceengineersneedtooperateit

efficiently

• A3Dprinterthatusesamixtureofgroundconstructionand

industrialwaste,suchasglassandtailings,aroundabaseof

quick-dryingcementmixedwithaspecialhardeningagent

(feedstockmadefromrecycledrubble,fiberglass,steel,

cementandbinder)

• Useofrecycledrawmaterialsdirectlyembeddedintheprintingmixture- decreasetheneedforquarriedstoneandothermaterials-- resultinginaconstructionmethodthatis

bothenvironmentallyandcosteffective.

• A3Dprinterisusedtoprintthebuildinginaspecialconcrete

mixture,layerbylayer

• Theprintercanalsopre-castlargepiecesatthefacilityand

thenassemblyisdoneon-site

• Severalfinalprojectshavealreadybeenassembledin

countriessuchasChinaandUnitedArabEmirates

• Ifoperatingatscalethistechnologycanbecompletely

disruptiveintheconstructionindustrybygreatlyreducing

costsandconstructiontimes

81

Adoptionof3DPrintingforconstruction(2/2)


Challenges Potential approach

• Takeadvantageofanichemarketthathasahugepotentialfor

growthandbenefitfromresearch/EUfundsforinnovation

programs

• Developanetworkofcompromised,reliablepartners(both

equipment,softwareandapplicationtoconstructionprojects)in

pilottestswillquicklybuildexperienceonthistechnology

• Initiallytargetedatpre-castconcretemanufacturingbyreplacing

moldsthathavehighcostsandarespecificforeachproject

• Majorgoalofearlyadoptionistoprepareforadrasticpossible

shiftintheconstructionindustry

• Whilethetechnologyhasbeensuccessfulinindustrial

applicationsandprintingcomplexshapes,scalecanbean

issueduetothelimitedsizeofsomeprintersandthecosts

associatedwithtransportationfromsitetosite

• Softwareandprinterprogrammingcanbethemain

challengesinceasimplefailcancompromiseanentire

structurethatwouldneedtoberemadefromscratch

• Adoptingthistechnologyforconstructioninthelong–

termwouldmakeSecil movedownstreamonthevalue

chainandcompetedirectlywithconstructioncompanies

• Currentlythereisnotauniqueuniversalmixturefor3D

Printing.Itcanbechallengingtohavedifferentmixtures

fordifferentprinters,especiallyifthiswouldnotenable

efficientscalableoperations

82

Recycleendproductsandcomponents(1/2)


• ConcreterecyclingconsistsinreusingConstructionand

DemolitionWaste(CDW)generatedfrombuildingsand

constructionthatreachedtheendofitslife

• Buildingsgeneratemanytypesofwastebutthecement

andconcreteindustrycanonlymakeuseofaspecific

typeofwaste,namelycementderivatives,bricksand

stones

• RecycledCDWcanbeusedforconcretemixture,

replacinggravelandaggregates.

• Recycledconcretecanalsobeusedforcement

productionreplacinglimestoneintheburningphase.

Thisrequireswastetobeseparatedbetweencarbonated

materialsandnon-carbonatedmaterialsthatcanbe

usedtoproduceclinker

• InPortugal,recyclingofCDWisbarelyinexistentor

residual

• InEurope,thenortherncountriesarealreadyrecycling

CDWduetothehighcostsandevenforbiddanceof

landfilling

• Directapplicationofcirculareconomybycreatingvaluefrom

wasteproductsand,atthesametime,reducingtheneedfor

usingnaturalresources

• Thetransportationlogisticsalreadyexistwiththedelivery

truckswithconstructionproductsreturningempty,thatnow

canbringCDWfromthecustomeronthewaybacktothe

quarry

• Costoftransportation- canbesoftenduetoreverselogistics

• Investmentoninfrastructuretoseparateandstore

constructionanddemolitionwaste

• Duetochemicalcharacteristicsofrecycledaggregates

concretemayneedmorecementandthusincreaseitscost

• Unlesscoveredasafee,theoverallcostislikelytoincrease

giventhecheappricesofvirginaggregatesfromthequarry

• Useofrawmaterialsthatareconsideredwasteinother

industriesisadirectapplicationofthecirculareconomy

concept.Inthiscaseitbecomesevenmorerelevantsinceit

willnotonlyrecyclewaste,minimizingdisposaland

landfilling,butwillalsodecreasefossilfuelconsumptionand

CO2emissionsintheproductionprocess

Developmentstage

Businessimpact

Environmentalimpact


83

Recycleendproductsandcomponents(2/2)


• Turnpotentialthreatintoabusinessopportunitybyusing

reverselogisticsfortransportationofwastefrom

constructionsitetoquarriesandthegrindingcapacityand

spaceoftheaggregatesproducers

• Ifthematerialsarewellseparatedthereshouldbeno

differencefromaregularcementorconcretebutthishas

highcostsofseparatingandrecyclingwastematerialswhen

comparedtousingoriginalaggregates

• Themainproblemwithrecycledconcreteisitscost,thatwill

havetoeitherbeembeddedinthefinalproductpriceor

chargedasaservicetotheconstructioncompanies

• Thetestingoftherequiredlogisticsandinfrastructure

neededisimportanttobecarriedoutbySecil,sinceitsvery

likelythatlegislationwillenforcewasterecycling

• CurrentlyinPortugalthecostoflandfillingissolowthat

thereisbarelynoincentiveinrecyclingCDW

• EvenifallCDWwouldbefullyrecycled,thetotalwaste

generatedwouldonlycover~30%ofthetotalexisting

concretedemand(inPortugal)

• Usageofrecycledaggregatesinthefinalproductwhilestill

maintainingtheproductqualitycanbechallengingdueto

thedifferentcharacteristicsofdifferenttypesofwaste(i.e.

couldrequiremorecementinthemixorchangeits

properties)


84

Usingnewmaterialsforbuildingrehabilitation(1/2)


• Theconstructionindustryindevelopedmarketswhose

citieslackconstructionspaceisshiftingfromnew

constructiontorehabilitationandreconstruction

projects

• Thistypeofconstructionusesmuchmoreproductssuch

asmortarsorcarton-gypsumstructuresthantraditional

materialssuchascementandconcrete

• Rehabilitationisalsoseenasaninvestmenttorenovate

ahouseoradaptittonewuses(suchasrentingor

transfixingspaces),whichrequires,fromthecustomer

pointofview,lowcost,acceptablequalityandeasyand

quickapplication

• Asanoriginallycementcompanywithitsownconcrete

productionanddistribution,Secil isstillgrowingits

presenceinthemortarbusinessandhastocompete

withlargermultinationalsexpertintheseproducts

• Nevertheless,Secil’s productreputationwillenableto

benefitfromagrowingrehabilitationmarketinPortugal

• Possibilitytocreatevaluedownstreamwithfocusonspecific

mortarsandvalueaddedconcretes

• Opportunitytocaptureshareofaincreasinglygrowingmarket

andtoshiftfromcompany’scorebusiness(cement)tovalue-

addedproductssuchasspecificmortarsandspecialconcretes

• Thetransitiontoendproductsolutionsandcompetitionin

retailoutletsforsmallerconstructionscanbedifficultfora

companythatusedtobefocusedoncementproduction

• Increasedcostswithspecializedlabor,newmaterialsand

moretailor-madesolutionsneededfortheseprojects

• Byrehabilitatinginsteadofconstructingfromscratch,less

cementisconsumed,whichreducesCDWovertime,its

emissions,andeventheconsumptionofnaturalresources

• Byshiftingtoamoremortar-intensiveindustrythereisalso

theopportunitytoincludemorerenewablematerialssuch

asglassandwoodintheend-product

Developmentstage

Businessimpact

Environmentalimpact


85

Usingnewmaterialsforbuildingrehabilitation(2/2)


• Constructioncompanieswhicharemorefocusedon

rehabilitatingthanconstructingfromscratchareoneofthe

mostattractiveopportunities,especiallyiftheiroperations

areconcentratedonbigcitieswherethesquaremeteris

moreexpensiveandthereisroomforamorepremium

offeringrequiringwiderrangeofproductsfordifferentend

uses

• EmphasizingthereliabilityandaddedvalueofSecil products

andsolutionsnotjustforfinal,specificproductsbutforthe

wholeservice(includingtrainingandconsultingthe

companiesthatusetheproductsinitsprojects– thismeans

positioningmoreasaconsultantthanasuppliertothe

customers

• Anewapproachtomarketandchannelsisrequiredwith

strongloyaltyprogramsforqualifiedsuppliers/applicators

andqualityinsuranceserviceincludedintheproductsused

• Rehabilitationtrendintheconstructionindustrywill

takefocusfromlargestructuresconstruction,thatuse

morecement,toproductsthatrequiredifferent

materialsandarefocusedonamorepremiumand

nichesegment

• Shiftingcompanyvisionfromlargeconcrete

constructiontomorespecificprojectsusingvarious

typesofmortarsandconcretes

• Thiswillrequiredifferent,morespecificmarketingand

commercialskillsandafocusfrominnovationnotonly

todevelopnewproductsthatcan“filltheblanks”in

itsproductlinevscompetitionbutalsotoadequately

test,launch,sellandtrainconstructionworkersonits

use


86

Alternativeproductstoconcreteandcementforconstruction(1/2)


Developmentstage

Businessimpact

Environmentalimpact


• Usingalternativerawmaterialscanbedonewithtwodifferent

goalsandobjectives:

1. Replacinglimestoneinthecementformulaasa

substitutetoreducetheenvironmental impactand

costofproduction(lessclinkerinthefinalproduct)

2. Addingtothecementformulaasaperformance/

qualityenhancer tocreateabetter,premiumend-

productwithspecificcharacteristics(e.g.:thermal,

acoustic,elasticity,etc)byincludingdifferentraw

materialsthatcanbemixedwithcementtocreate

concreteandmortars

• Useofalternativestoclinkerforcementproductionin

Portugal islimitedgiventhelackofrawmaterialssuchas

slagorfly-ash

• InPortugal,therearealreadysomeapplicationof

performanceenhancedmaterialsandpremiumproducts,

bothinmortars(mainlybySaint-Goban/WeberandSika)

andalsocementcompanies(althoughlimitedtofew,

specialprojects)

• Takeadvantageofthecurrenttrendofshiftfrom

constructionofnewbuildingstowardsmore

rehabilitation

• Opportunitytomovetoapremiumsegmentofthe

marketwiththeintroductionofnew,innovativeproducts

• Reducethecostofcementproductionduetomoreuseof

alternative,cheapermaterialssuchasslagoffly-ash

• Theremaybeaneedforinvestmentininfrastructuresand

equipmentabletoprocesssomeofthealternative

materials

• Costsofgoodssoldwillprobablyincreaseduetohigh

costsofsomematerials(e.g:cork,metals,gems,etc)

whichrequiresapremiumprice

• Useofrawmaterialsthatareconsideredwasteinother

industriesisadirectapplicationofthecirculareconomy

concept.Inthiscaseitbecomesevenmorerelevant

becauseitwillnotonlyrecyclewaste,minimizing

disposalandlandfilling,butwillalsodecreasefossilfuel

consumptionandCO2emissionsintheproduction

process

87

Alternativeproductstoconcreteandcementforconstruction(2/2)



• Secil needstopositionitselfmoreasabuilding

consultant(orevena“partner”)andnot(just)a

materialssupplier

• Constructioncompanies,increasinglyfocusedon

rehabilitation,arethemostattractivetargets,

particularlyinthemaincitieswherethesquare

meterismoreexpensiveandthereisdemandfor

premiumproducts

• Theuseofalternativerawmaterialinthecement

productionprocessisalreadyoptimizedbySecil

anddependentonmaterialsavailability

• Secil hasalsoalreadytestedandappliedsomeof

thenewmaterialsinnicheproductsbutthe

challengeistobeabletosellitasmainstream

product

• Shiftfromcompany’scorebusiness(cement)to

valueadded(althoughmoreniche)productssuch

asdifferentmortarsandconcreteswithspecific

characteristics

• Availabilityandpriceofalternativematerialscan

compromisethequantitiesneededtoproduce

theseproductsatanefficientscale

• Secil willcompetewithmultinationalplayers

focusedonthismarketneeds(mortars),with

broaderproductlinesandthathavealreadya

strongknowhowtodevelop,produce,selland

advertisethistypeofproductswherequality

standardsareevenmorerequired

88

Evolvebuildingconstructiontodevelopaserviceprovidingefficienthousesolutions(1/2)


Developmentstage

Businessimpact

Environmentalimpact


• Movetowardstheendofthevaluechaintroughthe

creationofafullintegratedserviceaimingtodeliver

customersacompleteconstructionsolutioninsteadof

individualproducts

• Restructurethevaluechaininordertosellmoreadded

valueproductsderivedfromcementthancementitself–

needtocreatedemandforpre-castconcrete,cement

bricksandmortarinsteadofthecementbagssoldcurrently

tobemixedon-site

• Havingmorecontrolontheselectionandapplicationof

companyproductsforeachindividualconstructionwill

servebothasqualitywarrantyandalsoto“push”different

typesofproductsthatcanbringbetterqualitytoend

product

• MainEuropeancementcompaniesworldwidearealready

focusingonvaluingtheirsolutionportfoliodownstream

• Lafarge-Holcimisagoodexampleofacompanywitha

increasingpresenceofvalue-addedservices

• Reductionofcementonendproduct

• Highermarginstocapturefromtailor-madeservicesandfocus

onvalueaddedproducts

• Enhancedbrandreputationtroughtheperceived

improvementandsophisticationofqualityofitsproducts

• Possibilitytohavemorecontrolacrossthewholevaluechain

andcreateadistinctiveservice(withawarrantyofqualityon

everystepoftheprocess)

• Operatingcostswilllikelyincreaseduetotheneedofhaving

morein-siteapplicantsandexperts

• Thelowerpotentialpercentageofcementinthefinalmix

canreducethetotalimpactoftheindustryonenvironment

• Withamorecontrolledandproperapplicationofproducts,

thequantitiesofwastedmaterialssuchaswater,cement

andgravelcanalsobesignificantlyreduced

89

Evolvebuildingconstructiontodevelopaserviceprovidingefficienthousesolutions(2/2)



• Initially,largerconstructioncompanies

responsibleforthemainpublicinfrastructure

projectsarethemaintargetsofthisredefined

offerthattendstobedonecasebycase

• Inthelongrun,Secil willneedtocreate

partnershipswithconstructioncompaniesand

otherproductandserviceproviders tobeable

todevelopanofferwithmoremainstream

usage,moresuitableforsmallerprojectsand

lesssophisticatedconstructioncompanies

• Pricingwillalsoevolvefrom“add-on”foreach

additionalproductdeviceprovidedtoamore

“full-service”model

• Internalchallengeofcreatingabroadercultureto

fitthepositioningof“constructionsolutions

providerandexpert”insteadof“just”the

cement/concretesupplier

• Longtermstrategicshiftversustheshortterm

profitsthatcomefromcurrentbulk/bag

concrete/cementsales

• Marketsarenotpreparedenoughtopaymorefor

thistypeofoffer– constructioncompaniesoptfor

mixingproductsonsiteandusetheirownlabor

forceandexpertisetoapplytheproductswithan

ultimategoaltominimizecostofproductiongiven

afixedminimumquality

• Secil needstobalanceitsroleasmaterials

producerandsolutionsprovider thatmaycompete

withitscustomers(asalreadyexistsbetweenits

cementandconcretedivisions,forexample)

90

Basedonthepreviousfindingstheteamdecidedtostudyhowcouldtheinitiativesdevelopinthefutureconsideringboththecompaniesactionsandthemarketsandindustrypossibleevolutiontrends

Setofpossibleuncertaintiesdirections*


Largescale

industrialuse

Smallscale

nicheoriented

Uncertainties

Adoptionof3DPrintingforconstruction

Extreme1 Extreme2

Highlevelof

recycling

Lowlevelof

recyclingRecyclingofconstructionanddemolitionwaste

Performance

enhancerCostsaving Useofalternativerawmaterials

Becomes

prominent

Develops

slowlyRehabilitationtrend

DemandedNotvalued Constructionasaservice

*Annex5showsrelativeimpact,overalluncertaintyandcorrelationbetweeneach

uncertaintywiththeobjectiveofchoosingthekeyuncertaintiesforthefuture

91

Afteranalysingandcomparingalltheuncertaintiestheteamidentifiedthetwocriticaluncertaintiesthathave,respectively,themajorimpactandthegreateruncertaintyattachedtotheirdevelopment

Adoptionof3DPrintingintheConstructionIndustry


Direction: Currently 3D Printing is used a lot in small scale projects focused on repairing

and constructing furniture and decorative pieces such ornaments and statues. Nevertheless

3D Printing is already being tested and developed for large scale buildings and

infrastructures, with some prototypes already on the market. The future concerning the

direction of growth for 3D Printing still remains uncertain but factors such as mass

production building costs and speed will be crucial in setting the direction of 3D Printing

Speed:Speedisgreatlyinfluencedbyexternalfactorssuchassocialacceptance,technologicaldevelopmentandregulationexistent

Impact: 3D Printing will surely shape the industry even if it is not adapted at a large scale

and being the standard for future construction. Secil needs to develop products that are

compatible with printers and, the company can even take advantage of this technology in

the pre-cast concrete sector.

KPI:Numberof3Dprintedconstructionprojectspercountryperyear

92

Afteranalysingandcomparingalltheuncertaintiestheteamidentifiedthetwocriticaluncertaintiesthathave,respectively,themajorimpactandthegreateruncertaintyattachedtotheirdevelopment

ConstructionasaServiceforEfficientHousingSolutions


Direction: Evolving construction to a service industry rather than just a product one is

largely dependent on demand and consumer preferences. The extreme of this uncertainty

would be to plan an entire projects with products and expertise from within the company

and then charge periodical fees to the customer while maintaining full responsibility for

maintenance and repair over the life-cycle of the building. On the other side, construction

would remain as it is with contractors choosing different materials and application is done

by unexperienced people undermining the quality of the end-product.

Speed:Speedisgreatlyinfluencedbytheeducationoftheconsumerandthecreationof

demandforthistypeofsolution.

Impact: If this type of service begins being requested by costumers Secil would have a

much more downstream control of its products creating a greater emphasis on quality and

longevity of the end product. The constructors, on the other hand, would leave

responsibility of application and choosing of materials to the producers, which in this case,

is Secil and other cement and construction materials companies.

KPI:Numberofapplicatorsperconstructionmaterialcompany

93

Basedonthecriticaluncertaintiesanditsimpacttheteamwasabletodevelopdifferentscenarioshavinginmindhowwilltheseuncertaintiesbeinthefuture


of3DPrintingforconstruction

asaservice

Construction

Adoptionanddevelopment

Largescaleprojectsprinting

Smallscaleprojectsprinting

Constructionservicesaredesirableanddemanded

Constructionservicesarenotessential

Companies use 3D Printers to prototype

projects and pre-cast concrete structures to

be assembled on-site. Companies will

construct buildings more efficient and

durable and will be responsible for

maintenance and rehabilitation during the

whole life cycle of the building. There will

be more focus on quality and efficiency.

Buildings and structures are printed on-site in

few days at a reduced cost. Customers will

personalize every single detail of the project

and companies will provide the best solution

possible for each project. Companies will

charge periodical fees and ensure the

building is always at its maximum quality and

efficiency

The construction value chain will maintain

its current form with construction

companies buying materials and applying

as they want. 3D Printing will be used for

prototypes and small projects only. The

market can demand for more efficient

alternatives to cement but cost will still

play a major role

Mass 3D printing of houses becomes general

and mainstream. Construction companies

will choose from any material fits better in

3D printers with an emphasis on cost and

speed as long as minimum quality is ensured.

Printing is done on-site in few days/weeks

with much less labor work or pre-produced in

mass scale with standard pieces to assemble.

“Ahousefortomorrowplease”

“Troweldominion” “Printersovercranes”

“Ourproductsfitbetter”

94

Afteranalyzinghowcouldthecriticaluncertaintiesdevelopitisimportanttotakeintoaccounttheenvironmentalimpactofeachscenario


of3DPrintingforconstruction

asaservice

Construction

Adoptionanddevelopment

Largescaleprojectsprinting

Smallscaleprojectsprinting

• Companies control quantities and

types of products used leading to

much less waste and incorrect

application

• More emphasis on quality and

durability reducing CDW waste over

time

• 3D Printers will use less cement and

more alternative materials.

• Incorporation of recycled CDW in the

printer mixture and less waste due to

printer precision and effectiveness

• Personalized solutions will emphasize

use of mortars and concretes with

alternative materials (cork, wood, etc)

• Possibility of replacing cement and

concrete by other materials such as

wood or glass

• Rehabilitation remains a trend

reducing overall levels of CDW

• CDW recycling and incorporation in

new concrete or cement will reduce

both the aggregates and limestone

extracted from quarries

• Cement companies need to focus

their environmental actions upstream

• Mass production of houses at a

reduced cost can lead to people

changing house more often and thus,

requiring more rehabilitation work and

more CDW produced, which will have

to be recycled and incorporated in the

end product

• Use of alternative materials on printers

Constructionservicesaredesirableanddemanded

Constructionservicesarenotessential

95

InordertoprepareforthefuturescenariosSecil hassomestrategicoptionsthatcanalreadybedevelopedanddeployed


“Ahousefortomorrowplease”

“Ourproductsfitbetter” • Secil alreadyhasanimageofspecialistonconcretesolutionsforlarge,specific

projectsbutshoulddevelopfurtherthisroleandleadthemarketeducation

• Thisservicewouldrequireamovementoffocusfromtheupstreamcement

production/supplytothemoredownstream“cement”/solutionsapplications

• Partneringwitharchitectsandengineersearlyintheprocessiscriticalto

ensurethecorrectuseofSecil products

• ThisservicewillrequireaconsistenthighlevelofqualitytoallSecil products

• Inthefuture,Secil wouldneedtobeabletobephysicallypresent/availablein

everystageofeachprojectthatinvolvesitsproducts,fromdesigntopost

salesinspectionsandmaintenance

• Inordertocapturethefullvalueofthemarketandensurethecontrolofthe

process,Secil wouldneedtonotonlyprovidethematerialsbutalsothewhole

solution,includingthedesignsandconstructing(printing)thehouses

• ThiscouldbeanissuesinceSecil wouldbecompetingwithsomeofitscurrent

customers.NeverthelessifSecil isabletograbafirst-moveradvantageandis

abletodevelopanddeploythenecessarytechnology,candifferentiateitsoffer

andbuildexperience,reputationandmarketshare

• Ensuringtheprintingandthepersonalizationofeachsingleproject,Secil would

beabletohavefullcontroloverquality,durabilityandefficiencyallowingthe

companytochargefeesfortheserviceitwouldprovideoverthetime

96

InordertoprepareforthefuturescenariosSecil hassomestrategicoptionsthatcanalreadybedevelopedanddeployed


“Troweldominion”

“Printersovercranes”

• Secil shouldmaintainitsoperatingstructurewithanemphasisupstreamin

cementproductionbutshouldalsodevelopmoreenvironmentalfriendly

alternativesinconcreteandcementproduction,betterthanwoodorglassto

bepreparedforchangesinconstructionproductsdemanded

• Recyclingofconstructionanddemolitionwasteiscrucialiflegislationis

implementedwhichwillrequirethepreparationofspecificinfrastructureand

logisticstoreceiveandprocessthistypeofwaste

• Incorporationofalternativefuelsandmaterialsinthecementandconcrete

productioncontinuestobekeytoreducecostsandenvironmentalimpact

• Anewcommercialandmarketingapproachiscriticaltogainingmarketshare

innewproductsandstaycompetitiveinthelongterm

• Secil shouldbepreparedtosupplyproductsthatareperfectlycompatibleand

appropriatefor3Dprinters.Thiswillparticularlyberelevantfordeveloping

marketsthatneedtobuildlargeamountsofhouseholdsatlowcost

• Thecompanywillneedtopartnerwithreliableequipmentandsoftware/design

companiesanddevelopoff-the-shelfsolutions(easytoadoptforinstitutional

customerssuchasschoolsofsocialhousesformunicipalities)andtailor-made

solutionsforlargerprojects

• Thecompanycanstarttesting3DPrintinginpre-castconcretestructureinorder

tofullyoptimizeitsmixturesandproducts

• Partneringwithothercementcompaniesinworldwideorganizationsiskeyto

ensurethattheprimarymaterialusedby3Dprintersiscement

97

Self-Assessment

BelbinResultsandKeyLearnings

January 6,2017

BymatchingBelbinresultswithmypersonality,therolethatfitsmethemostistheOperationalone,whereastheonethatfitsmetheleastistheFinisherone

Toproles:Operational

Strategist

TeamWork

Bottom roles:President

Prospector

Finisher

This top 3 results truly reflects my role within the team during the consulting

project. I identify myself with the operational role since I prefer a hands-on

approach and like to put theoretical and abstract ideas into practice. I relate

myself with the strategist one as well, since I’m an extrovert person, always

full of energy, outgoing and emotional. Having the team worker role as one

of the top 3 doesn’t surprise me, since I like to make sure that the people in

the group get along and work together effectively. Being a team worker

comes natural to me - I’m loyal and always aware of the individual’s needs

and worries.

After analyzing Belbin results on the bottom roles, I can understand why the

president role does not fit in my personality. Despite being an extrovert and

social person, I’m not the one always concerned about final objectives and

outcomes. Besides having the prospector role as one of the bottom ones I

can relate myself to it since I get easily demotivated and bored if the work

involved is stagnated or without the stimulus of others.

Considering the bottom role, the finisher is the role that least describes my

character within the team. The person within the role usually is introvert and

nervous, always worrying in what can go wrong. Even though it’s critical to

have quality checks and revisions on the project, the eye for detail and

precision doesn’t come natural to me.

AlexandraMoniz

99

Bylearningaboutmyselfandmycapabilities,thisprojectmademegrowinanindividualandprofessionalmanner

KeyLearnings

Title • Text

KeyLearnings

Personally Professionally

• Workunderstress:don’tbreakunderpressureandtightdeadlines

• Adaptability:Balancedifferentworkingmethodswithintheteam

• Feedbackacceptance:Manage

criticismwhentheworkdidnot

meettheexpectations

• Syndication:updatingtheclientduringthedocumentsinprogress

inordertoaccomplishthe

objectiveseffectively

• Clientrelationship:howtocreateagoodrelationshipwiththeclient

• Knowledge:Workingasa

consultantmeanstoexplorein

depthsubjectswearenot

familiarizedwith

100

BymatchingBelbinresultswithmypersonality,therolethatfitsmethemostistheMonitorone,whereastheonethatfitsmetheleastistheTeamworkerone

MiguelFontoura

Toproles:Monitor

Prospector

Finisher

Bottomroles:President

Strategist

Teamworker

After analyzing Belbin’s results, I can conclude they were very accurate, since I’m a

really objective person and have a serious approach. I only criticize the team’s work

when I see a flaw in the project, or something that can be improved. I identify myself

as a prospector due to my ability to stimulate new ideas and innovative approaches

within the group. The role that I relate the most is the finisher one, since I consider

myself a perfectionist always concerned with the small details and making sure

everything is done on time and with quality.

In what concerns the bottom roles, I identify myself much more as a leader in the

work itself rather than within the team, reason why the president role is not the

one that most fits my personality. Nevertheless, I see myself as a goal-focused

person despite creativity not being my strong point. The strategist role does not fit

well in my behavior due to the fact that I am completely focused and objective on

the work and what needs to be done, instead of worrying with the other team

members’ performance. This also leads to a poor result on team worker role

because, even though, I have good social and communication skills, I am not

sensitive and emotional enough.

101


KeyLearnings

Title • Text

KeyLearnings


• Adaptability:Acceptandadaptmyselftodifferentworking

methods

• Analyticalskills:anticipatequestionsandrethinkestablished

structures

• Versatility:dealwithunexpectedclientdecisionsandadaptthe

projecttoitsneeds

• Roleofaconsultant:Understandingwhatarethe

consultingchallengesandhowto

dealwiththemonadailybasis

• Timemanagementskills:Working

undertightdeadlines

• Communicationandpresentationskills:theteamdeveloped3

differentpresentationstothe

client

102

BymatchingBelbinresultswithmypersonality,therolethatfitsmethemostisthePresidentone,whereastheonethatfitsmetheleastistheIntellectualone

PedroPintoGomes

Toproles:President

TeamWorker

Monitor

Bottom roles:Prospector

Finisher

Intellectual

Duringthisproject,andafteranalyzingmyroleintheteam,Iwasabletorelate

withtheBelbinresultsfindings.IwasabletoidentifymyselfwiththePresident

rolesinceIbelieveI’manextrovertandstablepersonandpossessleadership

skillswithintheteam.Iwasabletohaveadominantroleovertheprojectbut

alwaysinarelaxedandunassertiveway.Theroleofateamworkerisprobably

theonethatIcouldmoreeasilyrelatesinceIwasabletoinvolveeveryteam

memberineverysingledecisionandmotivatethemembersindifferent

occasions.Themonitorrolehasalsosomecharacteristicsthatfitmypersonality

andbehaviorwithinthegroup.Mycriticapproachtoeveryproblemwas

importanttodefinecleargoalsandobjectives,aswellasanalyzedifferent

problemsandsituations.

TheBelbinanalysisalsomademeunderstandwhataretherolesthatare

unrelatedwithmypersonalityandthatIneededtoworkonthemduringthe

project.Despiteworkingwellunderpressureandimprovisingwell,Ilackedin

socialskillstocreateempathywithsomeofthecompanycollaborators.The

finisherroleistheonethatIleastidentifymyselfwith,sinceIamnota

perfectionistpersonthatpaystoomuchattentiontodetails.Theintellectualis

clearlynotmybestrolesinceIammuchmorepracticalandgoal-orientedthan

creativeoranalytical.

103


KeyLearnings

Title • Text

KeyLearnings


• Workingasateam:acceptand

understanddifferentwaysof

thinkinganddistinctpersonalities

• Pressure:toworkeffectivelyunderpressure

• Communicationskills:howtocommunicateandpasstheright

message

• Problemsolvingskills:beingabletodevelopnewapproachesand

strategiestocreateaneffective

solution

• Leadershipskills:howtouniteateamandconductsuccessful

interviews

• Timemanagementskills:meeting

tightdeadlinesandaccumulating

workaccordingtoclientneeds

104

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main challenges of a circular economy approach for the

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