The recalculation highlights how methodological shifts can influence the likelihood of SPTs being met, depending on whether there is a disparity between new methods and the SLB methods of KPI calculation. AFII now rates Holcim’s 2025 Scope 1 carbon intensity target as Likely MEET and its freshwater withdrawal target as Currently MET.
We also find that Holcim’s bonds referencing the recalculated targets appear to trade largely in line with comparable instruments, suggesting the market is not assigning meaningful option value to the potential coupon step-ups.
