Cementos Argos S.A. (CEMARGOS) Earnings Call Transcript & Summary

It is a pleasure for me to be with you today. Before we begin, I'd like to remind you that you can share your questions and comments through the different chats and different platforms that -- where we are transmitting or broadcasting this webinar. I'd like to share with you e-mail for communications in case there are any doubts or questions. You can share them to that channel as well. This is [email protected]. Now as a citizen of this role, I believe that with small actions we can contribute to the purpose of mitigating climate change. But without doubt as part of the team such as Cementos Argos, we can do so much more. Today, we gather in a very interesting conversation, not just for Argos, but for all of the actors of society. And it is that climate change as a challenge is also an opportunity, a unique one for us to move forward together with the construction of the sustainable world that we dream of in Argos, we assume climate change is a challenge. But also was a unique opportunity for our operations and our chain value. Today, we will address and go into detail on our strategy for climate change. We will be accompanied by María Isabel Echeverri, Legal VP and for Sustainability of Argos; also Edgar Martínez, I Promise Manager for Environmental and Communities; Travis Reed, Executive Director for Health, Safety and Communities; and also our Director for the Caribbean region in Central America. We are accompanied by collaborators and external actors intent audience. We invite you to publish in your social networks with the hash tag ArgosCambioClimatico whatever content you wish to publish. And I'd like to welcome our Legal and Sustainability President, María Isabel Echeverri to tell you about how we perceive climate change within our company. Maria?

Thank you, Danny, and of course, greeting to everyone. We're happy to speak to you about the subjects that we're passionate about in Argos and with which we are very committed to. And it's very important for us to be able to talk to the groups of interest about these subjects because the first vision that we have regarding climate change is that we have to work on it together. That -- it's not something that each individual can do on his own, that we can all contribute, but it's something that has to be done in collaboration. And so we have assumed it as a challenge and as an opportunity. And we've made a commitment to use up our capacity as best as we can to adapt to climate change, and we're seeking to contribute to competitiveness and the growth of the companies, whether it's U.S. or our groups of interest. And so it's been over 10, 15 years working on the reduction of our carbon footprint. And in that time, there are a lot of efforts. We've been able to reduce our emissions by 14% since 2006, which is our baseline year. And we have committed to work on this in 3 lines of action, which are in terms of mitigation, the reduction of our carbon emissions, direct and indirect. In terms of that application, we want -- and we've worked a lot to develop the -- our capacities to respond efficiently to the effects of climate change to all of the situations that we assume being seen constantly floods, landslides, warming and others. And so how -- we assume being and the company develop capacities to respond to these effects. And in terms of compensation, we've worked on research and development of actions for innovation to the capture of carbon and many others that we're constantly at work on -- in order to achieve our long-term goals, which I will mention now and it is that we've established 2 large goals as a corporation, as an industry. The first is that by 2030, we have the goal of reducing our CO2 emissions by 20%. And the second one with which we'll be collaborating as an industry is that by 2050, we want to be able to produce a concrete that is carbon neutral. That's a great challenge today for science for the industry and for us as a company. But we are convinced that we can achieve this, and we will be leveraging several matters. First, the reduction in physical risk and our transition of climate change and how do we potentiate all of the opportunities associated to the application of our products with sustainability characteristics, which later on we will be talking about. And we're very proud of them. Of course, we believe that they make a very relevant contribution to this process. The next point is how do we carry out more efficient processes, increasing productivity while decreasing our environmental impact. Another subject that you'll be hearing about during this session is innovation, our constant search for innovation. As you can see in my background, this is one of the projects that we're very proud of which is the micro algae project. Edgar Martínez will be speaking about this later on. And we are, of course, applying all of our capacity for innovation to seek something that will allow us to capture that carbon and use it at a more advanced level. Something else that we worked on that we believe will be relevant in the medium term is access to mechanisms for sustainable financing. We are so committed to climate change that we have even linked our debt and rates of interest to the fulfillment of indicators associated to sustainability and especially climate change. And so if we meet these goals that we have set in medium and long term, we will have a possibility to have better cost in terms of our debt. If we don't meet those goals, then it's -- we're in big trouble. And another matter that we work on continuously, which is also a point of leverage is how our decisions and corporate governance decisions move or lead us toward our goals. So when we, as a company, are making decisions regarding production and investment, how do we consider or take into account these impacts in our plans in the medium and long term. And so how we apply an internal price for carbon for our users. When we're thinking of an investment, how do we determine whether that investment will have a positive impact or not in terms of climate change. And whether we approve or how we perceive that investment internally that helps us to prioritize. And so to conclude and tell you that we're absolutely committed to contributing to competitiveness and growth, not just of the company but of our groups of interest with these long-term goals that I've mentioned, especially the one that we stated that we're going to work hand-in-hand with the industry and has been led by the Global Association Concrete Producers, which is to have a carbon-neutral concrete by 2050. To us, if we're able to reach these goals, then we will be creating social value to all -- for all of our groups of interest. So with this, I conclude. We're going to have an interesting conversation. And I'd like to invite all of you. Each of you has something to contribute in this process from your business, from your home, from your individualities but also as our correctives. Yes, we can all contribute to this purpose. Now before we go into detail on the progress of Argos within our climate change strategy, I'd like to hear from Lisseth Sandoval, the environmental director for the Caribbean and Central American region to talk to us about all of this.

Thank you, Isabel. and good morning, everyone. I'm going to explain a little bit about the theory behind this climate change. We live on it, find it earth and it has seen specific conditions that allow for us to be here for us to live. But for those conditions to take place, well, the earth is covered by a layer of gases from our atmosphere and the atmosphere is made up of greenhouse gases. So naturally, there is CO2 in the atmosphere. And what that layer of gas does is built or the entry of the sun's rays and keep some in the -- in order to allow us a certain temperature and release others. After the industrial revolution, when we began to use some fossil fuels, coal, petroleum. Then we started to generate more CO2 and that layer of gases are -- started to grow. And as it becomes thicker, it means that the sun's rays are trapped and warm up the earth. And so the gases keep them in and so they cannot leave at the rate that they used to. In the last 150 years, the average temperature of the earth has increased by 1 degree. So our body temperatures between -- it is at a certain temperature. If we increase 1 degree in our bodies, we have -- we're having fever already. And that's what's happening to the earth, it is warming up too much. It's having a fever. And as Juanita mentioned and everyone who has participated in the video that we saw at the beginning, the effects of the earth increasing temperature by 1 or 2 degrees, we're already noticing them with more catastrophic events, the melting of the poles, the average level of the ocean even. When we start to -- as we start to see these consequences, what we need or what we seek is to decelerate that rapid change that we're going through. And that's why we're all here as citizens of the world, as a corporation, as a government and different groups of interest and as individuals, we all play a part in this process of preventing or mitigating the warming and what's the temperature.

Lisseth, thank you, and now we'll continue with the Edgar Martínez, the Manager of I Promise and Communities for Argos to talk to us about how we conceived this process within Argos and to talk about different projects for this strategy.

Thank you, Danny. Good morning. We and Argos are aware of the impact that our industry has and our activities have in the countries where we operate and where the economic growth is impacted by the construction industry and this has an impact on the well-being of communities. And so we believe that our business should be sustainable throughout time. And as María Isabel mentioned earlier, we have committed to sort of interesting goals, including the reduction of CO2 emissions per ton of -- by 2030 we're committed to reaching 29% reduction of CO2 emissions per ton of production. And by 2050, we are committed to having products in concrete that are carbon neutral. So to achieve this, we have 3 points of leverage in our climate change strategy. Number 1 is the reduction of the calorie consumption per kilo of clinker produced. And we've been working on in some of the regions. In the States, we have certifications that we've obtained for energy efficiency. Also, the second point is the reduction of the clinker cement factor. And for this, we've been working arduously with the operation, research and development and all of the innovation in projects and having products that are made with other materials and limestones, which is one of the project we're working on incorporating or supplementaring materials that will help us to reduce the amount of clinker that we've incorporated in our cement. And we also have the third point, which is the increase and the substitution of conventional fuels or alternative fuels, and we want to do this. We want to have an increase by 2030. This is how we've been working in our 3 regions in Colombia, Central America, the Caribbean and the United States and the incorporation of other materials and purpose as María Isabel shared here, and in our background, we have the micro algae pilot, which is a beautiful project that we've been working on for many years. And today, we said this year, it's one of these things that we know we have to continue supporting as an industry because there are many opportunities with which we can transform the CO2 into other products. And this project, the Cartagena 6, the capture of CO2 in order to transform it into crude. And there's a very dedicated team for -- working on R&D. And we work seeking renewable electric energy sources. And this is one I think where we have in the solar fund, which is one of those projects that we also feel is beautiful for the rest of the industry to also invest in this and see it the way that we have. We also work with the supply chain. We have electric vehicles, hybrid vehicles and natural gas-based vehicles. And in terms of electric energy, we're constantly seeking for our new providers to offer energy from renewable resource, renewable sources. Now we have a great objective, which is to become a point of reference in terms of sustainability, not just in this sector but in the world. Edgar talked to us about the role of our vendors, our clients and other groups is interested regarding this strategy. For us, our groups of interest are fundamental. It is with them that we interact on a day-to-day basis. And so I'd like to say that initially, we count CO2 emissions, direct and indirect. And in this case, when we talk about groups of interest that our side of our operation, we've started to work on counting of our direct and indirect emissions. And then one of the most important categories that we've been working on is when we purchase clinker for the mills where we don't produce it. So it's one of those jobs that we do continuously in order to know how we're doing it. And we have many initiatives with our groups of interest and with vendors. We carry out the determination of carbon footprint of the transport providers, the services that we use to transport raw materials and then deliver product. So in Bucaramanga, in -- we've done this task and have identified very interesting opportunities for improvement that have led to planted actions with these vendors. We also have the sustainability index of vendors we developed with the technological institute of Massachusetts, MIT. We've identified some gaps and many opportunities that have helped us to improve this relationship with our vendors and also understand how we are impacting our CO2 emissions and you see other plans of actions arise for seeking improvement. And with lenders of alternative fuel seeking negotiations that assure that supply chain, which is so important when we have processing implemented in some of the plants. And we make a lot of purchases from local vendors. And you might say that 41% of our purchases are from local vendors. This is important because it reduces transport. In this case, we talk about maritime transport that this helps to reduce some of the impact. This is why we're reducing -- how we're reducing emissions and supporting the development in different countries. And we've been recognized by carbon exposure project as a leading company in the supplier engagement rating in which we have -- when we speak of our relationship to our vendors. Now in climate change management, we've been offering a portfolio of green solutions and we've launched multiple products in different operations, and we have cement and concrete with sustainability practices. It's sustainability. And an important factor which is the analysis of life cycle, which allows us to quantify the reduction of CO2 emissions in order to communicate them in our technical sheets and in our environmental product declarations and also to show the transparency of the processes and products that we consider green. We're constantly speaking with clients to find the best solutions and help them to reduce their emissions, and this has helped to strengthen our value chain and finally, to maximize the impact of construction for a sustainable future. Now there's something quite beautiful that we've been doing, which is the relation of -- the way that we promote a sustainable culture because it's not just a matter of doing this in the operation and working with our vendors, but it's also about how we carry this to our communities around us and the countries where we have operations. This is why we have activities of the sustainability dialogues and the integrated report. We do everything. We show everything that we do, and this is open for all of the groups of interest. We have sustainability, which is a beautiful event that we carry out within the company. And also the impact of using alternative fuels and seeking to reduce our own emissions to having a direct impact here and -- where the land fields are where potentially we could have open burns of coverage, we are reducing our impact there. For example, with landfills, when waste arrives in the composition processes, this generates other greenhouse gases, which have even greater warming impact than CO2. And this is part of the impact and the work that we're doing. And with collaborators, we are -- we have recognition within the company called Green Plant, where we promote good environmental practices. And of course, one of the items that is qualified here is the reduction of CO2 emissions before COVID, which has changed so many things for us. We had a program for electric bicycles and carpooling. But with our work from home, things have changed somewhat. But we are now estimating the emissions that have been reduced, thanks to our remote work because this is an important impact. And within our company's compensation system, we have incentives for operational results associated to the reduction of CO2 emissions. Thank you, Danny. I hope I haven't taken too long.

And that was perfect. Now we'd like to hear from Travis Reed, Executive Director for -- helping in environmental processes in Argos in the United States to hear about our strategy in the United States and some of the main projects taking place there.

[Foreign Language] clinker in it. So with this type 1 now, you can get the same million tonnes of cement. Using this material you have a lot less clinker, which means you have a lot less carbon dioxide emissions as part of that. So that's been a major challenge in the U.S. The pipeline now is a new product. There is -- for years, there's been a lot of uncertainty around it, about this performance compared to the traditional Type 1, 2 cement. But between our staff, working with different lobbies groups, our competitors also working with them as well. We've made some great progress over the years in pushing this new product. So it's gaining some traction and is being -- the acceptance of it is growing. And so with that, being accepted, we can reduce -- significantly reduce our carbon footprint in both cement and in ready-mix. So shifting gears a little bit to energy efficiency. This is something that has always been a focus in the cement manufacturing process, producing clinker and cement has required a lot of energy. There's a lot of heat and a lot of power that you consume in at our integrated cement plants. And so we're always trying to produce the same amount of clinker and use a lot less heat, and we also are trying to -- try and produce the most cement that we can get and consume a lot less power. So our process engineers are always optimizing those processes to reduce our specific heat consumption and also power consumption. And so we said the U.S. EPA has a program called AgSTAR in which they recognize those plants that are standing out within the top 25 cement producing plants in the country. And so I'll say that 3 of 4 of our plants -- 3 of the 4 of our plants have been AgSTAR certified over the years, and a couple of them have been -- and over consecutive years have been certified. So we're working hard to have all 4 of our integrated cement plants here in the U.S. certified with EPA in AgSTAR program and there has been some actions along those lines that we've adopted, and we'll get there. And you're reducing energy then you're going to reduce your carbon footprint -- and you also you're going to save money that this is one of the highest cost of manufacturing process as well. Sort of aligned with that is the circle economy. So a lot of these things all work hand-in-hand together. So we've also been looking at alternative fuels and alternative raw materials. So alternative raw materials will be things such as fly ash that does not have -- the carbon footprint in itself. So and all these different products, if you can produce clinker with has already in-house and we say you -- for CO2 and that lowers your carbon footprint. Additionally, the fuels, you have a visibility to fuels. Alternative fuels typically have a lower CO2 emission factor than that of traditional fuel like coal. And so all our plants have a low level reaching between 30% and 40% of substitution by 2030 or 2050. And so we're working hard to get there as well. Two of our plants are hitting like 25% substitution right now. The other 2 are fairly younger programs with stages recently installed. So they're right around the same percent. So there's a learning curve with that, and we'll get there. And so the actions are around really learning and optimizing the process to reach those higher substitution rates as well as working with suppliers to make sure that they all become a barrier for those regional goals. So that's really it for the U.S., also the main focuses right now as far as the climate change roadmap.

Thank you, Travis. [Foreign Language] open to respond to these questions. As we've mentioned throughout this webinar, there are different initiatives associated to our strategies for reduction. And I'd like to highlight that one of the most important initiatives is the reduction of carbon in consumption goals has a significant impact, as Travis has stated environmentally, economically in the world. This is why we work on this in particular. We also have the reduction of the clinker cement factor. And here, the work that's done in terms of research and development is important because we're seeking for having less and less clinker in the cements and the different amounts that we produce and ensuring that we deliver the same performance to our clients and to the projects themselves. The substitution of conventional appeals for alternatives is fundamental. And regarding what Travis mentioned in terms of circular economy, we also have work that we've been seeking to have. Products that contribute to particular economy reutilizing them. This is why recycled concrete is an important subject and the promotion of the demands with low emissions and again to transparency perspective, with our analysis of life cycle, trying to understand what we're actually achieving in these processes. Now I'd like to hear from Travis on the same subject. And you can introduce CO2 emissions in the U.S.A.

That's a tough one. I would say the actual emissions, the best thing we can do with the alternative fuels now, I already talked about it a lot, but there are some projects that research and development are working on for CCUS, which is Carbon Capture Use and Storage. And so there's a lot to learn there in that regard. But the best thing we can do for one would be to look at alternate materials on the front end to prevent those emissions from being emitted in the first place. And then so you've also got raw materials, even you've got alternative fuel. So those are tools that we have to use in full. You then look at emissions efficiency. So that's the third level, right? But once you employ all those and then at that point, they have to look at technology to capture the carbon and put it out the stack. So we've got the algae that's going on that's being tested down in the innovation center in Colombia. The micro algae, we're looking at doing in pilots and doing a study here in our Newberry plant in Florida. So there's other technologies where you can convert the CO2 emissions and go to a primary process and make dry carbon and capture it. So there's some other technologies out there that can be employed in our cement plants. But I think we're a bit early, and we haven't done a lot of testing in some of those technologies today.

Thank you, Travis. We have another question that says the objectives of climate change are validated by science-based targets. We need -- Edgar, you can help us to answer this question.

Of course, Danny, it's -- to some extent, we're passionate about it. I like to connect this with what Travis has just stated. Just for everyone to know what those science-based targets are, it's a global initiative, which validates that the goals that a company sets are indeed or will achieve the goals that we've set as a society in the Paris Agreements of reducing the temperature of the planet. And so what we do as companies is that our goals and plans in terms of climate change are presented to a group of experts that validate that these plans do align in terms of helping to achieve those goals. So as an organization at the beginning of this year, we presented and signed the letter of commitment that has to be in time -- you need to participate in the process of validation of the goals with this mechanism. We are working on fine-tuning our route country by country, region by region, where we have those commitments well defined and that the idea is to submit these to the science-based targets initiative within the coming months. It's a process that has -- there are several phases to it. But we believe that our work is well constructed and very solid and that they will be approved by the initiative. So we are articulating not just as a company, but as an industry to achieve the goal that we have set as a society in Paris Agreements, whatever adjustments as needed to be made throughout these years.

There's another one. When you go from the pilot of micro algae in Cartagena into a real project, can you please give the answer to this?

Yes. So first of all I'd like to say that the current pilot in Cartagena is serving to validate in a real environment that the micro algae technology actually works. Right now, we are identifying critical processes within that technology. And basically, what we have found so far is that we've had better performance than what the literature shows and what else happening in the world that the pilot gets stronger and stronger, and it becomes more and more important to us to grow with it, and we are thinking broadening the capacity of this project in the Cartagena plant, which is where our current pilot is. And in some other geographies we want in the short term to implement a new pilot. And that's basically it.

Thank you. We have another question here that says why the goal by 2030 to have a reduction of by 21% if the country goal is 51%?

Yes. And it's important here to highlight that remember that this organization is not just Colombian. We have presence in over 17 countries. Each of these countries has established its individual goals. And there are, of course, those contributions -- specific contributions in each of these countries. Over 70% of our revenue and our production is coming from countries other than Colombia. So we've included all of the regions in this, all of the operations and businesses throughout our entire value chain. And so the rate in terms of production, it give us the goal that we have right now. And as I've mentioned, we have a goal for 2030 and another by 2050. The one for 2050 is the one that's very challenging right now because producing carbon-neutral concrete today scientifically is not possible. It is not possible today because the mechanisms of carbon capture storage and usage that Travis and Edgar mentioned, today, at an industrial level are not established and defined. But as an industry, we will work collectively to develop them. So it's great leap. This is a process that involves all of the different point of leverage that we've mentioned, seeking alternative fuels reducing the clinker, cement relationship and being more efficient. But there's another part that has to happen which have to do with capturing that carbon and using it in these other processes and using it for any of these things. And so today, the science is not there at an industrial level. So we have to continue investigating and working. And this is why that goal is a bit farther in time, it's for 2050. But we hope that we will achieve some great reductions.

Here we -- want to know more about that process with micro algae.

I think that more than compensation, what we do is a capture of carbon. We have a hierarchy of management of environmental impact. And when we speak specifically about everything we're doing right now, we're aiming for the medication to how we are improving our process as Travis has explained. And all of the projects that we're doing now are directed toward mitigation, the reduction of our emissions, compensation would be things like buying or planting trees and payments for environmental services. But the micro algae is what in the category of capture. This means that in the environment, there's CO2. And what the algae does is absorb that CO2. And so micro algae would be more an opportunity to capture and compensation.

And we have another interesting one. The change in new energy sources, does it generate a reduction or will it increase the cost of the product? We would like to hear an answer from Edgar.

Good question and I imagine we're talking about renewable energies and the development of a new process, things are cheaper at the beginning. You've seen the example with the solar panels that we're importing about 15, 20 years ago. So the answer to this, Danny, is that sure the people have things that we'll be able to invest in quickly, which is really low hanging fruit essentially that we used to reduce emissions, but there are also other factors that aren't -- haven't quite been invented or can't be implemented because of their cost right now, but this is why we have the commitment to continue working toward reducing our emissions by 2030 and to participate in the development of solutions.

Thank you, Edgar. We have another one, very active. How this -- particularly with our governance goals and national registries, how does all of this articulate?

Danny, this is a matter that we work on, not just on the Colombian level, but in each of the countries where we're present. And I'll talk about the Colombian case. First, these things have a sector-based goal. So what the government does and the Ministry of Industry and Commerce together with other institutions, they establish a set of goals per sector based on interaction and participation that we've had. Again, they set those goals. And based on this, we report to the government periodically. In our case, to the Colombian government, but this happens in every country where they have set their goals as well. Some are more advanced than others, some are more challenging than others. But in each country where we are present, we try to be very participated in the conversation with the government and understand how we can contribute to those goals. And this brings reporting commitments that we have to address periodically. The main source, and for those of you who are interested in learning about this, is our integrated report. Every year, we publish a detailed report with the progress on our climate change strategy. And in addition, we participate in -- with Posenco in the Colombian case. FICEM, which is the Inter-American Cement Federation, PCA in the United States. And so we try to participate in all of those conversations so that the construction of those guidelines are actually based on reality, and it's not just someone saying that the goal shouldn't be this much, it should be 7% to 8%. You can talk about miracles, but we should set goals that are actually realistic. And this is why we try to participate in all of these conversations. We're very transparent with the information that we provide. And we report periodically, not just to them, but to all of our groups of interest because we want to carry out some -- a real follow-up on this plan in order to achieve it.

Thank you, Maria. Here, we have another question that I'd also like to help answering it is when will our green solutions portfolio arrive in other countries.

Now here, we carried out a launch of that portfolio for green solutions because we wanted to articulate and give more relevant presence and a clear understanding to our clients regarding what we do in terms of products and the options that we have for them. But in all locations, we see the same thing today. We have many products with sustainability characteristics that are in the market now. In Central America and the Caribbean, we have products such as compacting concrete and adaptation to the circular economy. We have the multipurpose and eco cement, which is low in carbon. We have other cements that benefit the well-being of a person because they contribute to luminosity or heating, just white cement, permeable concretes and concretes for pavement. And in the United States, we have a very important group of products that meet those conditions of sustainability characteristics which are green carbon, deep green, PLC cement, masonry cement. There's a large list of products that we are making now. So when we speak of those green solutions, what we do is an explanation and a promotion so that our clients can see in that portfolio, all of the possible solutions for these impacts. And so we have, again, these parts are from different countries. We are in process in terms of communications and marketing of divulging these in a more articulate manner, but today our clients can access this portfolio of green solutions.

We have another one is how we guarantee the implementation of initiatives from the vendors that will help us to achieve our climate change goals?

Now first, Argos must lead by example. And this is the only way that we can inspire our vendors and groups of interest to implement initiatives associated to the reduction of CO2 emissions. But particularly, we have mechanisms for the strengthening of our chain of vendors around the climate change and sustainability. And right now, specifically, we have something which is the sustainability evaluation, which provides a classification in order to understand at what point they stand now and for us to build plants together to develop that capacity for sustainability in the business and internally. The results of that evaluation help us to understand what we can improve so that, that group of interest can also minimize their impact in terms of CO2. And this is how we articulate for interest of taking up to leverage our process.

Thank you, and there's another. It has to do with coal processing, how does this work in Colombia unit? And -- can you talk to us a bit about this?

Can you repeat the question?

All about coal processing and how it works.

Okay. Coal processing is the way that you take subproducts from another industry and incorporate them into your process as a product so that you can have your final product, which in this case is cement. So we can see, for example, the use of used tires, if you substitute fuel in the process of clinker production, but there are also other types of products that arise from industries like the -- when I say oil pump where we see waste with a calorie potential that can be brought to the process to replace some carbon in the production of clinker. And this is why I had mentioned that for us in our supply chain, it's important to find these types of products with vendors that allows us to commit to achieving our goals. It's not much use for us to make a commitment instead of the installations and then not have the product available. So this is a fundamental, but clinker processing is all about using the subproducts or ways in order to achieve a result.

Thank you, and thanks to everyone who's participated this morning. We have 4 minutes left, and I would like María Isabel Echeverri, our Legal VP and for Sustainability to give us a closing message. I'd like to remind you that we have an e-mail where you can share your questions if they weren't addressed during the session, [email protected], through our social networks and our website. We will be addressing our progress regarding the processes of our climate change strategy. Thank you.

Thank you, Danny. And I would like to thank everyone for your participation. We're very enthusiastic about seeing your interest in the subject and the contribution that we can make to the company in the process. We are absolutely committed to mitigating climate change. It is a global phenomenon that affects all of us. And this is why we're working hard. And this year, we have a more detailed plan that will allow us to identify all of the projects that will help us to achieve this goal and do quantify the investments required for this because this does require a significant effort from our part. And again, we're absolutely committed to these goals that we've expressed throughout the webinar. We want to reduce our emissions by 21% by 2030. And by 2050, we'd like to produce a concrete that is carbon neutral. This, together with our allies and colleagues in the industry and Global Cement and Concrete Association, where we're joining the efforts to investing together and work on finding the options that don't yet exist at an industrial level and that will allow us to reduce our impact significantly. So thanks, everyone, again, for your interest. I invite you to continue working with us. Everyone from your businesses, from your homes, you can contribute so much. And we have to be more and more aware that every action we take as humans and as companies impact others and so that collaborator spirit has to be present. Otherwise, we won't have quality of life, we won't even have a planet to leave behind for others. We're already seeing these situations like what we're experiencing today floods, disease, all of this is connected to the changes of conditions that we're facing on our planet. And so this is an invitation to continue working with enthusiasm so that we can continue creating social value for everyone. Thank you. Thanks, everyone. [Statements in English on this transcript were spoken by an interpreter present on the live call.]