This report provides an overview of how financial institutions are developing decarbonization targets for cement, a hard-to-abate sector.

It sets out key methodological choices for banks, including the use of physical emission intensity metrics, definitions of emissions scope and approaches to portfolio coverage and data quality. It reflects current industry practices, where most banks rely on portfolio-weighted average intensity and convergence-based targets to assess alignment, while navigating data gaps and inconsistencies in corporate disclosure.

The report also highlights key transition levers, such as clinker substitution, alternative fuels, operational efficiency, and carbon capture, utilisation and storage. It is intended to support banks in refining practical, decision-useful transition strategies for supporting their clients’ transition in the cement sector.