Alkali activated cements (AAC) are becoming an increasingly promising alternative to traditional Portland cement. There are still some significant barriers which have yet to be addressed, by all the agents involved in the construction industry. However, it appears that some AAC applications can be introduced in current applications at a faster rate than, for instance, structural concrete. One of these applications are materials with thermal performance, based on the capacity of some types of AAC to expand during initial reactions. The present paper aims to assess the viability of producing porous AAC for application in thermally effective façade panels. A wide range of industrial by-products were activated with sodium hydroxide and sodium silicate. Two additional by-products were incorporated to increase the thermal damping of the pastes, with the intention of taking advantage of the large pore volume. Flexural and compressive strength and density was measured, and selected pastes were then submitted to microstructural characterisation (SEM/EDX), environmental behaviour (heavy metal leaching), porosity (SEM) and thermal performance (thermal coefficient). The results showed maximum compressive strengths of 2.5 MPa, while the majority of the pastes tested showed conductivity values below the threshold of 0.2 W/m.°C, which is the requirement for obtaining a classification of ‘thermal’. Therefore, the production of panels for thermal insulation based on alkali activated industrial by-products is competitive with traditional materials based on current commercial solutions, and, given the non-structural nature of this application, can be very close to reach industrial production.