Climate transition: SVVK-ASIR makes progress in dialogue with steel and cement industries.

Over the past three years, the Swiss Association for Responsible Investments (SVVK–ASIR) has been engaged in active dialogue with the international cement and steel industries, aimed at accelerating the climate transition. The recently published «Climate engagement» report provides details of the progress made so far, highlights the problem areas and explains how SVVK-ASIR intends to step up its efforts in this area.

Implementing the climate transition and meeting the net-zero carbon emission targets are challenging for many sectors of the economy, including the steel and cement industries. Both of these have been somewhat overlooked in the climate debate for a long time – even though steel and cement are some of the world’s most in-demand resources, and their production accounts for around 13% of anthropogenic greenhouse gas emissions.

For SVVK-ASIR, this was reason enough to seek dialogue with representatives of these industries. The association’s members firmly believe that the most effective way to accelerate the climate transition is to engage in direct dialogue with companies about their actions in this area – a view which is backed up by academic data.

Greater transparency is essential

Since 2018, SVVK-ASIR and its partner Sustainalytics have held numerous discussions with 20 large and medium-sized steel and cement companies. Among other things, the companies concerned were asked to provide more information on their climate risks and to show how they intend to bring their production in line with the 1.5˚C pathway. After all, these two industries have also set themselves the goal of transitioning to net-zero carbon emissions by 2050.

The latest SVVK-ASIR «Climate engagement» report, which is available now, provides an overview of the progress made in the dialogue with these companies, especially with regard to disclosure and meeting the net-zero targets. The report also discusses the next steps needed.

The PACTA climate test is a starting point for further activities

Another focus of the publication is on the climate transition activities that SVVK-ASIR has planned for the future. The results of the Paris Agreement Capital Transition Assessment (PACTA), which the Federal Office for the Environment conducted for the Swiss capital market in 2020 with the involvement of SVVK-ASIR members, form the starting point for this further engagement. Based on the test results, the association intends to establish a dialogue with the 20 biggest producers of fossil fuels and energy providers, so that the necessary changes can be initiated in this area too.

Link to the report: Climate engagement: Strategy and Activities 2018–21+