corporate sustainable development report 2009
TRANSCRIPT
Strength. Performance. Passion.
Corporate Sustainable Development Report 2009
1
Corporate Sustainable Development Report 2009
Contents
Vision and strategy 6
Priorities 10
Performance data 26
Methodology and assurance 32
Chairman and CEO statement 4
Introduction 2
Sustainable development is embedded in our vision, strategy and values 6
An organization with integrity 6
Managing sustainable development 7
Our SD priorities 8
Determining material issues 8
Performance against targets 9
Awards and ratings 3
Sustainable products and sustainable construction 10
Energy and climate 14
Resources conservation 18
Social commitment 20
Economic performance 26
Environmental performance 27
Social performance 30
Methodology 32
Assurance statements 33
Holcim response 35
Communication on progress 36
CommitmentHolcim remains committed to sustainable development even in the face of global economic challenges.
80%of our product portfolio is composite cements.
Continuous improvementCO2 emissions per tonne of cement have been reduced by 21% since 1990.
70%improvement in the lost-time injury frequency rate since 2005.
See page 12.
Affordable housing project in Nicaragua
See page 17.
Check dams in Thailand
See page 21.
Community investment in Russia
2
Introduction
The integration of the principles of sustainable development
into our core business strategy and our aim to create value
for all stakeholders has ensured that our commitment
remains resolute, even in the face of current global
economic challenges.
Holcim is one of the world’s leading suppliers of cement and aggregates (crushed stone, gravel and sand), as well as
further activities such as ready-mix concrete and asphalt including services. The Group has majority and minority
holdings in around 70 countries across all continents.
Covering the Group’s cement, aggregates and ready-mix concrete businesses, this fifth Holcim Corporate Sustainable
Development Report focuses on key facts and figures and highlights our most material issues: sustainable products
and sustainable construction, energy and climate, resources conservation and social commitment. It complements our
Annual Report 2009 and the more comprehensive information available on our website. www.holcim.com/sustainable
The report and complementary information is aligned with the Global Reporting Initiative’s G3 guidelines and also
forms part of our communication on progress for the UN Global Compact. The report itself has been assured against
the principles of the AA1000 Assurance Standard and our WBCSD CSI commitments, with CO2 and occupational health
and safety data separately assured. Furthermore, an External Report Review Panel was established to review the report.
A glossary defining the terms used in this report can be found on our website. www.holcim.com/sustainable
Key to symbols:
see page in this report
see our Annual Report
see graph data
visit www.holcim.com/sustainable for more information
reference to GRI indicator
Contact us at HolcimSustainable DevelopmentRuksana Mirza Phone +41 58 858 82 30 Fax +41 58 858 82 34 [email protected]
Corporate CommunicationsRoland Walker Phone +41 58 858 87 10 Fax +41 58 858 87 19 [email protected]
Investor RelationsBernhard A. Fuchs Phone +41 58 858 87 87 Fax +41 58 858 80 09 [email protected]
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Awards and ratings
The awards received by our Group companies and our continuous inclusion in the FTSE4Good and the Dow Jones
Sustainability Indexes are the best evidence of our commitment to sustainable development. The table below
highlights a sample of the many awards received at a local level. A complete list of awards received by Group
companies in 2009, as well as in previous years, is available on our website. www.holcim.com/sustainable
Ratings
9
For the DJSI assessment of company performance compared with others in the sector, visit www.holcim.com/sustainable
Examples of awards received Group company
Environmental awards
Greentech Environmental Excellence Gold Award in the Cement Sector to Tikaria for environmental performance.
ACC Limited, India
Federación de Áridos awarded El Puente Gravel Pit with the First prize in Biodiversity in the category “big company” for rehabilitation work and level of biodiversity achieved.
Holcim (España), S.A., Spain
Gold Cup for Environment Protection by Ministry of Natural Resources and Environment for contributions to the environmental protection and preservation in Vietnam.
Holcim (Vietnam) Ltd, Vietnam
Special Jury Price of ALM (Aujourd’hui le Maroc) ecology trophy for engagement and environmental policy based on sustainable development.
Holcim (Maroc) S.A., Morocco
PEP – Partners for Environmental Progress award for the storm water conservation program at Theodore plant.
Holcim (US) Inc., USA
Social awards
Award from Centro Mexicano para la Filantropía for being a socially responsible company. Holcim Apasco S.A. de C.V., Mexico
Wirtschaftspreis Schleswig-Holstein for successful HR concept for employee recruiting/retention and the integration of migrants.
Holcim (Deutschland) AG, Germany
Fundación Adecco awarded Holcim España for integrating people with a disability. Holcim (España), S.A., Spain
High-prestige award from CSR Hungary as an acknowledgement of activities in order to spread sustainable construction and to set an example on CSR to create value for stakeholders.
Holcim Hungária Zrt., Hungary
The Department of Conservation award in recognition of Holcim’s contribution to the community and conservation in the Buller region.
Holcim (New Zealand) Ltd, New Zealand
OH&S awards
Special recognition for safety, occupational health and environment performance by The Colombian Safety Council.
Holcim (Colombia) S.A., Colombia
Zero lost-time injuries in South Carolina for Taylor Street, Lugoff, Simpsonville, Powderville, New Cut Road, Greer, Imo and Batesburg plants presented by Carolina Ready Mixed Concrete Association.
Aggregate Industries Management Inc., USA
Safety Award presented by Ready Mixed Concrete Association of Ontario for having no lost-time injuries.
Holcim (Canada) Inc., Canada
Golden Flag Safety Award by the Indonesian Ministry of Public Work for Occupational Safety. PT Holcim Indonesia Tbk., Indonesia
Occupational Health and Safety Excellence Award presented by the Ministry of Labor of Nicaragua for the excellence on risk management practices and full legal compliance at Nagarote cement plant.
Holcim (Nicaragua) S.A., Nicaragua
4
Chairman and CEO statement
The need for companies to engage with stakeholders
and society to ensure license to operate is more
important than ever.
In the two years since our last Corporate Sustainable Development Report, the economic crisis has affected many
regions and sectors. However, as sustainable development is such a fundamental objective, we remain committed to
its principles. Our commitment to sustainability engages our people, and also allows us to operate more effi ciently –
providing us with competitive advantage throughout the entire value chain.
The most important contribution to sustainable development is through products and services. By offering value-
added solutions to customers, we ensure sustainability of profi ts and benefi ts to society. Concrete is the most
versatile, cost-effective and durable building material available; it substantially contributes to energy effi ciency in
buildings and it is – in itself – a sustainable product. Our company is continually improving the effi ciency of our
production processes and developing more “eco-friendly” products. At the end of 2009, over three-quarters
of Holcim’s product portfolio consisted of composite or lower clinker content cements. The Holcim Foundation
for Sustainable Construction continues to promote sustainable building practices and innovation in the
construction industry.
Holcim’s business depends on access to natural resources. Related responsibilities are taken very seriously. We must
– like all players – try to increase the effi ciency of the use of scarce resources and avoid material loss in production
processes wherever possible. We have, together with the International Union for Conservation of Nature (IUCN)
created an expert panel to advise us on how to manage biodiversity. The panel has already visited Holcim sites in
a number of countries and has provided invaluable guidance.
Reduction of CO2 emissions continues to be an area of focus. In 2009, we achieved the CO2 emission reduction target
earlier than planned, and are pleased to report that CO2 emissions per tonne of cement were more than 20% lower
than in the reference year of 1990. Holcim also actively participates in the policy debate on climate change and on
effective regulatory incentives to improve energy effi ciency and CO2 containment.
“Sustainability is an integral part of the Group strategy. Even in difficult times, Holcim takes its environmental and social responsibilities very seriously. Programs to strengthen the safety culture across the Group will be continued without exception. The Board of Directors and Executive Committee is doing everything in its power to achieve the objective of worldwide comprehensive workplace safety.” Rolf Soiron, Chairman of the Board of Directors.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
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This report refl ects a number of new targets that have been set at an even higher level:
• We now aim to further reduce our specifi c net CO2 emissions by 2015 to 25% below the 1990 benchmark.
• We will be developing and rolling out a comprehensive biodiversity management system. Of sites situated
in high biodiversity value areas, 80% must have biodiversity action plans in place by 2013.
• Recognizing that building constructive and trustful relationships with communities in which we operate
is imperative; all plants are bound to have community engagement plans by 2012.
Safety of employees, subcontractors and third parties remains an area of concern and key focus. Management
continues to improve the effectiveness and impact of safety programs and directives. To change mindsets and to
embed a culture of safety can still be a challenge in some places, but we remain committed to our vision of “zero
harm to people”.
The current report describes our path toward sustainability, as we understand it for our industry. It discloses
performance data across a broad range of indicators, including those from the Global Reporting Initiative* relevant
to our specifi c businesses and has been externally assured. A panel of external stakeholders has also contributed to
this report with valuable guidance and comments.
We have been in continuous contact with stakeholders and have recently joined the Corporate Support Group of
the International Committee of the Red Cross (ICRC). We look forward to cooperating in specifi c confl ict-affected
countries where both Holcim and the ICRC operate. Humanitarian actors like the ICRC substantially contribute to
stabilizing the operating environment in such areas.
Holcim’s efforts in the area of CSR and SD have been well recognized. The best evidence is the many awards received
by Group companies. Holcim has also been confi rmed as a member in the Dow Jones Sustainability World Index for
the seventh consecutive year and the company again received the SAM Gold Class classifi cation for 2009.
We thank all those who are accompanying Holcim on its journey. We are grateful to customers, suppliers and
partners for their continued support. A very special word of thanks goes to our employees all over the world,
who have lived our values and have delivered on our commitment to build a sustainable future in these
challenging times.
Rolf Soiron Markus Akermann
Chairman of the Board of Directors Chief Executive Offi cer
May, 2010
* This report is aligned with the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines released in October 2006, at an application level of A+.
“The development of new and sustainable products and services is of high priority. The rapid dissemination of existing expertise and new findings is heavily encouraged, while experiences gained in the market are being systematically incorporated into our research. This multiplication effect, as well as cooperation with leading universities and research institutes, has helped accelerate the pace of innovation.” Markus Akermann, Chief Executive Offi cer.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
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of our business – our products and services, ongoing
communications and, most importantly, the behavior
of our people. The graphic below outlines group strategy
and our approach to value creation.
An organization with integrity
Holcim applies the highest standards of business conduct.
At a corporate level, we follow the Swiss Code of Best
Practice for Corporate Governance while the Holcim
Code of Conduct, which is applied throughout the Group,
provides a consistent framework and clear direction for
daily decision-making. In addition, the Holcim Compliance
Policy spells out the rules for compliance with laws,
regulations and Group-wide policies and directives.
For more information on corporate governance and the Code
of Conduct, please see pages 80 and 81 in our Annual Report.
“We at Holcim are proud to work for a company with such a clear and effective vision and focus with regard to sustainable development. Our global strategy and standards, applied locally according to the requirements and realities of each country in which we operate, result in sustainable and responsible operations that are noted for their high performance, multiple initiatives and enduring commitment to the communities.” Eduardo Kretschmer, CEO, Holcim Apasco, Mexico.
Visit www.holcim.com/sustainable to read more.
Vision and strategy
At Holcim, we believe that delivering value for all
stakeholders while operating with integrity is key
to our long-term success.
Working within the triple bottom line
Holcim remains a member of the DJSI World Index.
Visit www.holcim.com/sustainable for more information.
Sustainable development is embedded in our vision,
strategy and values
Holcim is committed to creating value for all its
stakeholders. We have placed sustainable development
(SD) at the heart of our business strategy for many
years because we believe it contributes in adding
value and ensuring continued success.
To meet the increasing demand for high-quality and
sustainable construction products, which are critical
for global infrastructure development and economic
growth, we have fully integrated the principles of
the triple bottom line (value creation, sustainable
environmental performance and social responsibility)
in our business strategy and into our product and
service portfolio. See strategy house in the next column.
The current, challenging economic climate has not
weakened our commitment to sustainable development.
We continue to strive to improve safety at all our
operations, and to work on identifying new, sustainable
business opportunities while minimizing the impacts
of our extraction and production activities.
Holcim’s values of strength, performance and passion
are our promise to perform, providing the foundation
for sustainable business relationships based on trust.
We aim to deliver on this promise through all aspects
Stra
tegy
Min
dset
sBa
seG
oal
Creation of Value
Product Focus
SustainableEnvironmentalPerformance
Better Cost Management
Permanent MarketingInnovation
Human ResourcesExcellence
CorporateSocialResponsibility (CSR)
GeographicDiversification
Local ManagementGlobal Standards
People
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
9
7
The Code of Conduct covers all aspects of our operations,
including specific provisions on bribery and corruption.
The code is very clear – violations will not be tolerated.
Non-compliance with the code may be subject to
disciplinary sanctions, including termination of
employment, and this is explicitly stated within the code.
Group companies are responsible for ensuring
that employees and managers are aware of their
responsibilities under the code and for implementing
appropriate measures. These include training and
information sessions, integration of Code of Conduct
provisions into contracts and a requirement for
employees to sign the code. Visit www.holcim.com
Building on our existing program, in 2009 we refreshed
the Holcim Value Creation in a Competitive Environment
(VCCE) program. We rolled this out with a series of
workshops on the rules of fair competition, also as
contained in our Fair Competition Directive, which is
binding for all Holcim employees worldwide. In 2009,
10 VCCE workshops were conducted covering Group
companies in all regions. In 2010, further VCCE training
will be conducted in all the consolidated operating
companies of the Group. For more information, please see
page 25 in our Annual Report.
In addition to the Code of Conduct and Fair Competition
Directive, we require our employees to comply with all
relevant policies, including Group policies on alternative
fuels and raw materials, corporate social responsibility,
environment and occupational health and safety.
Visit www.holcim.com/sustainable to download the policies.
Managing sustainable development
Responsibility for SD ultimately rests with every
employee, and the commitment of line managers to
implement Group targets and objectives related to SD is
key to our aspiration to remain a leader in our industry.
A steering group for SD operates as a sub-committee
of the Executive Committee (Exco), and includes
the CEO, the Exco members accountable for SD and
occupational health and safety (OH&S) as well as
senior SD managers.
At Exco level, since 2010, accountability for SD and
OH&S falls under Roland Köhler, and the Sustainable
Development and Occupational Health and Safety
departments report directly to him. A graphic
illustrating our integrated approach is available at www.holcim.
com/sustainable
To assist us in managing our performance and
ensure that global standards are maintained, various
management systems are in place. The starting point
in managing our performance is ISO certification.
Holcim has also developed its own management tools.
Examples of these include the Holcim Environmental
Management System with its Plant Environmental
Profile (PEP) monitoring and reporting tool, which goes
beyond the requirements of ISO 14001, and the Holcim
OH&S management system, which goes beyond the
requirements of OHSAS 18001. See page 30.
Visit www.holcim.com/sustainable
Code of Conduct Our Code of Conduct provides the guiding principles against which to make decisions.
Visit www.holcim.com/sustainable for more information.
For further information see page 26 and visit our website www.holcim.com/sustainable
Cement, aggregates,concrete and other constructionmaterials
Payments
Goods andservices
Monetary flows
Source: Holcim, 2009 data* See page 26 for additional information on political contributions and subsidies.
Non-monetary flows
Dividends Capital Interest Capital Taxes Services Salaries Labor Goodneighbor
Licence to operate
SUPPLIERS Input costs (CHF 12.0 billion)
SHAREHOLDERS(CHF 0.8 billion)
CREDITORS(CHF 0.8 billion)
GOVERNMENTS*(CHF 0.6 billion)
EMPLOYEES(CHF 3.9 billion)
DIRECT IMPACTS
CUSTOMERS Net sales (CHF 21.1 billion)
MULTIPLIEDINDIRECTIMPACTS
MULTIPLIEDINDIRECTIMPACTS
COMMUNITIES(See page 25)
Retained in business (CHF 1.2 billion) and depreciation (CHF 1.9 billion)
Categories purchased by suppliers:Raw materialsServices including transportOperational materialEnergyPlant, equipment and infrastructure
TradersWholesalers RetailersReady-mix concrete producersConcrete products manufacturersConstruction contractorsIndividual customers
HOLCIM Sales
Economic impacts along the value chain
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
8
Our SD priorities
We constantly re-examine our SD priorities to enable
us to focus on those issues which are the most material
to our business and where we can make a meaningful
difference. Continuity and focus are critical aspects of
this re-evaluation process. Our current priorities are:
• sustainable products and sustainable construction
• energy and climate
• resources conservation
• social engagement (including employment
practices, OH&S, community engagement and
human rights).
These priorities were confi rmed by an External Report
Review Panel, which we convened as part of our
materiality review process (see below) and to review
Holcim’s corporate SD report. The panelists’ biographies
are available on our website at www.holcim.com/
sustainable
Determining material issues
Holcim has a well-embedded business risk management
process for identifying risks at both corporate and Group
company level. For more information, please see pages 28
and 85 in our Annual Report.
Since 2007, a materiality review has been implemented
at Group level to ensure the identifi cation of SD
risks and opportunities as well as the integration of
stakeholder views. Since this process was introduced,
materiality reviews have been conducted by many
Group companies. Results reveal that the full list of
material issues is consistent with the Group-level
review, but there are differing weightings according
to local circumstances.
The results of the latest Group-level materiality review,
incorporating the results of the Group companies’
reviews as well as the views of the External Report Review
Panel at a consultation in September 2009, are shown
in the graphic below. In conjunction with our business
risk management system, the consultation confi rmed
that the issues identifi ed on the matrix remain the most
material for Holcim. The fundamental difference from the
previous review was that almost all external stakeholders
felt that water management and human rights should be
refl ected separately. The difference between the company
and stakeholder view on water is likely to narrow as the
new water management scheme is implemented.
“Holcim demonstrates a credible approach to sustainability. However, I would like to see the Group take a clearer leadership in reducing absolute fossil CO2 emissions. This is a key challenge for the entire cement industry. Efforts to increase the use of biofuels also need to be intensified over time.” Patrik Bosander, Business Development Director, Billerud AB.
Corporate governance
Customer and supplier relations
Economic impact
Low Medium High
Econ
omic
Issues
OH&S
Employment practices and human rights
Community involvementand stakeholder relations
Soci
al
CO2 and energy
Ec0-efficient products
Sustainable construction
Atmospheric emissions
Resources managementand biodiversity
Waste and transport
Water
Envi
ronm
enta
l
Holcim view – result of Holcim business risk management process.
External stakeholder view – result of interviews with 16 external stakeholders including academics, government officials, NGOs, suppliers, analysts and customers at a global level.
View from Holcim and external stakeholders coincide.
Range of external stakeholder views.
Represents a clear difference between internal and external view.Low: Low level of concern to stakeholders and low level of current
impact on Holcim.
High: High level of concern to stakeholders and high level of current
or potential impact on Holcim.
Importance of issues – global view
SD materiality review – aligning global stakeholder
feedback with current Group priorities
Review An External Report Review Panel was convened to review SD priorities, materiality and to comment on the report. Details of the panel can be found on our website.
Visit www.holcim.com/sustainable for more information.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
9
Performance against targets
The following table is a status report on our progress toward goals set in the past and also reflects new SD targets. Targets already
achieved are not repeated here – please refer to our website for an overview of all targets. Note that many of these are “evolving targets”
due to the continued dynamic growth of the Holcim Group. Our priority is to ensure that Group companies and new acquisitions
embrace these measures. Visit www.holcim.com/sustainable
Area Target Progress Target date Status 2009
Vision, strategy and corporate governance
Strategy Integration of SD materiality review in existing business risk management system for use by Group companies.
The SD materiality review has been integrated into the existing BRM system and piloted by 10 Group companies.
2008 Achieved
Management systems
ISO 14001 implemented by all cement plants and alternative fuels and raw materials (AFR) pre-treatment platforms.
This is a rolling target as newly acquired Group companies require time to implement the management system.
2004 Cement 92%
AFR 84%
Environmental performance
Climate and energy
Reduce global average specific net CO2 emissions (kg CO2/tonne cementitious materials) by 20%, using 1990 as reference.*
This target was reached in 2009. 2010 21%
Reduce global average specific net CO2 emissions(kg CO2/tonne cementitious materials) by 25%,using 1990 as reference.*
2015 New
Environmental impacts
Emissions monitoring and reporting standard implemented.
This figure excludes our plants in India. We anticipate that they will have continuous emissions monitoring in place by 2011.
2004 85%
Reduce global average specific nitrogen oxides, sulfur dioxide and dust emissions (g pollutant/tonne cementitious materials) by 20%, using 2004 as reference.
We have already far exceeded the reduction target in specific SO2 emissions in 2009. Due to the current economic conditions, our efforts to reduce dust and NOx emissions have focused on implementing primary reduction measures. The target date has thus been revised to 2012 for dust and 2013 for NOx.
2012 NOx -16%SO2 -59%Dust -7%
Quarry rehabilitation plans. This is a rolling target as newly acquired Group companies require time to implement plans.
2006 91%
Biodiversity: 80% of sensitive sites to have biodiversity action plans.
2013 New
PCB equipment elimination. Electrical equipment containing PCB to be eliminated from the cement sector (cement and grinding plants) by the end of 2010, and from the non-cement sector (aggregates, ready-mix and asphalt) by 2011.
2011 New
Social performance
Community involvement
CSR review completed by all Group companies. This target was not reached by the end of 2009 due to a focus on more pressing issues. Group companies will be encouraged to conduct the reviews going forward.
2009 40%
Every Group company to have a community engagement plan for its sites.
2012 New
OH&S Reduce lost-time injury frequency rate by at least 30% per annum in each operating company, using 2004 as reference, from 2006 to 2009.
Within an acceptable tolerance allowance, this target was met for the Holcim Group. Some Group companies, however, have not yet reached the target.
2009 See Progress
OH&S fatality prevention elements implemented.
Implementation of the current 11 OH&S fatality prevention elements is ongoing and the target date has been adjusted to 2010, when implementation status will be audited in all Group companies.
2010 See Progress
OH&S contractor safety management implemented.
The OH&S Contractor Safety Management Directive has been aligned with the relevant 2009 CSI Guidelines. Full and sustainable implementation will take another 2–3 years and the target date has been adjusted to 2012.
2012 See Progress
Targets included in previous reports on areas such as CO2 assurance, employment practices and supplier qualification programs have already been met and are thus not listed in the above.
Visit www.holcim.com/sustainable to read more.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
* Excluding own power generation.
10
Demand for construction products is increasing
Concrete is a versatile material indispensable to
infrastructure and economic development – and after
water is the most widely used product in society.
Concrete is made of aggregates, water and cement.
Cement is the “glue” that provides strength and
durability and represents 15% of concrete’s volume.
Although concrete and cement have a relatively low
embedded CO2 intensity compared to other construction
materials, high demand results in the cement industry
producing an estimated 5% of man-made CO2 emissions.
The dilemma that Holcim and other responsible players
face is how to meet the growing demand for high-quality
products while limiting emissions and decreasing our
ecological footprint.
Studies have shown that buildings account for up to 40%
of primary energy consumption. Sustainable construction
can reduce energy consumption and the CO2 emissions
of existing and new buildings signifi cantly. For example,
buildings with a Gold or Platinum Leadership in Energy
and Environmental Design (LEED) certifi cation consume
up to 50% less energy than those using less energy-
effi cient designs. Examples include IUCN’s conservation
center in Gland, Switzerland and Development
Alternatives’ headquarters in Delhi.
Visit www.holcim.com/sustainable for case studies.
Innovation in products and processes
As a major player in the industry, Holcim has a role
to contribute to sustainable products and building
techniques. We are developing new solutions through
product innovation and process innovation.
Product innovation. We are developing environmentally
friendly cementitious materials for specifi c applications.
Examples include products with minimum carbon
footprint combined with extended service life and
concretes that reduce peak temperatures through
water absorption or desorption. Additionally, we are
developing materials to increase the durability and
longevity of buildings and roads. We are also currently
conducting detailed lifecycle assessments with
government, academics and other partners.
The use of composite cements is another vital strand of
product innovation at Holcim. Our focus on substituting
(and therefore reducing) clinker in cement with slag, fl y
ash, pozzolans and other minerals is highly effective in
carbon reduction. By 2009, we had decreased the share
of Ordinary Portland Cement to 20% of our product
portfolio and increased the share of composite cements
to 80% . See chart on page 11.
“I believe that our creative imagination, by definition, is unbounded, and that the principles of sustainable design are not a limitation; rather, they provide fertile ground for engaging the imagination to nurture a vibrant architecture of the future.” Ashok B Lall (India), Visiting Professor, Guru Gobind Singh Indraprastha University (GGSIU); Principal, Ashok B Lall Architects; and Head, Holcim Awards jury Asia Pacifi c 2008.
Visit www.holcim.com/sustainable to read more.
Sustainable products and sustainable construction
Population growth, socio-economic development and
adaptation to climate change will increase the demand
for construction products.
Challenge Buildings account for up to 40% of energy consumption: Holcim has a role to play in promoting sustainable construction.
Visit www.holcim.com/sustainable for more information.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
11
See pages 26–31 for full data tables.
Visit www.holcim.com/sustainable for more information.
Key dataSustainable products and sustainable construction
Process innovation. Through research and development
in sustainable and energy-efficient manufacturing,
we are seeking technical solutions to the challenges
ahead including the rising cost of electrical and thermal
energy, ensuring their availability worldwide while
also improving the emissions of cement kilns. Holcim’s
program aims to transform these challenges into
opportunities for sustainable value creation across the
Group. As part of this, we leverage the diversity of our
Group companies to multiply good practice and ensure
that innovations and solutions are systematically shared
to create competitive advantage.
Responsible relationships and partnerships
Providing our diverse customers with the right product
for the right application is fundamental to a successful
and sustainable business. To ensure we are meeting
these needs, 75% of Group companies carried out a
customer survey in 2009, and of these, 88% measured
customer satisfaction levels . Product stewardship
remains an important element of our customer
relations. In 2009, 54% of Group companies reported
having a specific policy covering customer health and
safety and 50% reported having policies on product
information and labeling .
To ensure a sustainable supply chain, Holcim is
mindful that its suppliers should respect our social
and environmental policies. Our Group procurement
policy and supplier qualification programs include a
self-assessment of suppliers’ compliance with social
and environmental standards. Details of supplier
assessments are shown opposite.
Working with academic institutions is key to achieving
a sustainable future. In this regard, Holcim engages
with Clausthal University and the Swiss Federal
Institute for Technology in Zurich and Lausanne who
are both permanently represented on our process
and product innovation committees. In addition, the
Holcim Foundation for Sustainable Construction has a
network of partner and associated universities that is
representative of every continent. The foundation’s aim
is to promote sustainable responses to technological,
environmental, socio-economic and cultural issues
affecting building and construction at national, regional
and global levels.
Cement types produced by Holcim* in 2009
Supplier screening
EN3
HR1, HR2
Local suppliers screened
2008 2009
0
20
40
60
80
100 96 92
0
20
40
60
80
100
81 8177
83
67
75
38 38
29 3034
44
26 29
% Group companiesscreening local suppliers
% Group companiesscreening local suppliers
% local suppliersscreened
% local suppliersscreened
OHS standardsEMS systems
Labor standards (other than human rights)Social accountability or other human rights criteria
20% Ordinary Portland Cement
5% Masonry cement, oilwell cement, white cement, special binder
17% Multiple blend cement Fly ash cement 26%
Limestone cement 14%
Pozzolan cement 9%
Slag cement 9%
The Holcim Forum, convened by the Holcim Foundation
for Sustainable Construction, provides an academic
platform for architects, engineers, construction
professionals and other specialists to exchange
information on sustainable built environments and
sustainable development. Forums on “Basic Needs”,
“Urban Transformation” and “Re-inventing Construction”
have been convened.
The Holcim Foundation for Sustainable Construction
promotes and encourages sustainable construction practices;
for more information, visit www.holcimfoundation.org
* All but Ordinary Portland Cement are composite cements. Composite cements increased from 30% in 1990 to 80% of our product mix in 2009.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
Sustainable products and sustainable construction
Best practiceA model affordable home being built at our plant in Nagarote, Nicaragua.
Sustainable affordable housing – an inclusive
business solution
Holcim Group companies are active in searching
for inclusive business solutions such as sustainable
affordable housing. The concept has spread since we
started initiatives in the 1990s: currently, 12 affordable
or social housing programs, mainly in Latin America and
Asia and three mega-cities projects in Jakarta, Manila
and Singapore are being implemented. In 2009, an
estimated 27,600 families benefi ted from the affordable
housing schemes.
The housing defi cit in Nicaragua, a country with seven
million inhabitants, amounts to more than half a
million. With 85% of the population considered as poor
or extremely poor and the number of inappropriate
houses rising steadily, shelter is one of the country’s
main challenges. In order to contribute to meeting this
challenge, Holcim Nicaragua started implementation
of Edifi cando Vidas, an affordable housing program. It
aims at offering Nicaraguan families an appropriate,
sustainable and culturally accepted housing solution
that complies with Holcim’s sustainability requirements.
In order to achieve this goal, the company – in
collaboration with its distribution channel Construmas
and the Holcim Nicaragua Foundation for Sustainable
Development – selected pilot communities and
conducted a participatory assessment of housing
needs. As a result of these community consultations,
the project team developed a technical solution that is
appropriate for local conditions and uses construction
techniques and materials that are familiar locally.
The solution was well accepted by the community
and project advisory panels were set up and are now
managing community participation. In addition to
providing the housing solution, the project integrates
a fi nancing option and supports the development of
construction-related micro-enterprises. Model houses
have been erected at the plant in Nagarote at the
beginning of 2010. There are plans to construct 30 to
40 houses for participating families in the course of
the year.
“Holcim’s efforts to provide affordable housing in Latin America and Asia are extremely commendable. To build on these first achievements, I would encourage Holcim to share the resulting learning with a wider range of companies and organizations to collaborate on a roll-out of such programs. This will help to reach not just dozens, but thousands of families.” Fernando Almeida, Executive President, Business Council for Sustainable Development, Brazil.
Visit www.holcim.com/sustainable to read more.
12 Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
Innovation in practice
The Holcim Commercial Awards acknowledge
excellence along the Holcim Value Chain, and are judged
against criteria of customer orientation, innovation,
value creation, sustainability and transferability. Among
the projects recognized by the awards are the following:
The Integra Construction System was developed by
Holcim Costa Rica. Integra is an innovative wall system,
based on a modular concrete block and also integrates
other innovative aggregate and cement products.
The system reduces waste, increases productivity and
durability and improves safety on construction sites.
Holcim Green and Holcim Supercrete were developed
by Holcim Singapore, who was recognized for the
development of eco-friendly concrete products. Holcim
Green reduces the usage of imported materials by
replacing fine aggregates with recycled materials while
Holcim Supercrete, because of its strength, facilitates
smaller columns and more usable spaces in buildings.
Construction can be faster and can result in up to 45%
less concrete use for a structure. Both products obtained
a Green Label from the Singapore Environment Council.
Red Minetti was developed by Juan Minetti, our Group
company in Argentina. It is a national chain of outlets
for building materials where end users (normally owner-
builders) can find, in one place, all the materials needed
to build their house, personalized guidance on how to
use the materials and assistance with purchase finance.
Cirkelstad was developed by Holcim Netherlands –
a regeneration project for inner-urban areas with a
focus on recycling and re-use of “old” city demolition
materials for “new” city construction. The project also
had the goal of providing job opportunities for long-
time unemployed people from the local community.
London 2012 Olympic village
The Olympic Delivery Authority (ODA), the body
responsible for the building of the 2012 Olympic
Games venues, identified sustainable construction as
key in the procurement of materials and construction
of the games infrastructure. With this in mind, the ODA
set “green” targets for all the bidding companies. At
least 25% of the materials supplied need to be recycled
and at least 50% of materials, by weight, have to be
transported to the Olympic Park by sustainable methods.
Our Group company in the UK, Aggregate Industries,
successfully bid to supply the project with aggregates
and ready-mix concrete. It ensured that the sustainable
transport target was substantially exceeded in the
bid, with over 90% of the aggregates to be supplied by
either rail or barge. In addition, Aggregate Industries
is confident that it will well exceed the ODA’s aim of
25% for recycled aggregate materials delivered to the
project. It will achieve this through its use of secondary
aggregates from assets in Cornwall in England, as well
as recycled glass and recycled concrete derived from
demolition sites in London.
An example of a “Red Minetti” outlet in Argentina. The chain offers a “one-stop” solution for owner-builders.
Mohammed Rafati (far left) and Said Saoudi (left) are employees of Holcim Netherlands working on the “Cirkelstad” project aimed at regenerating inner-city urban areas with a focus on recycling.
13Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
14
Energy and climate are critical factors for sustainability
Global energy demand is predicted to rise by 45% by
2030 (World Energy Outlook), accompanied by higher
energy costs, depleting energy sources and limited
discoveries of affordable new ones. The combined
challenges of energy and climate require unprecedented
investment and changes in production, consumption
and behavior.
Addressing the challenge of climate change requires
global emissions to be stabilized then reduced and all
sectors have a responsibility. We advocate differentiated
responsibilities at country level, accepting the need
for absolute CO2 emission reductions in developed
countries and increases to be limited in emerging
economies. Holcim further believes that no single
policy instrument can fi t all sectors, and that a range
of instruments is needed to incentivize the growth of
the most CO2-effi cient and energy-effi cient companies
and products.
Energy and CO2 effi ciency
Holcim is committed to further improve the effi ciency
of its production processes and products and to remain
an industry leader. In cement production, our focus
is on lowering the clinker factor, increasing the use
of alternative fuels and materials and improving
energy effi ciency.
To maximize all available emission-reduction levers,
Holcim advocates that industry benchmarks should
include the entire production process and products, and
that these should incentivize both product innovation
and consumer choice.
For further information on our positions on climate and
energy, visit www.holcim.com/sustainable
According to the McKinsey Global GHG Abatement
Cost Curve, the maximum potential to reduce specifi c
emissions in the cement industry is -23% by 2030,
excluding carbon capture and storage. The International
Energy Agency (IEA) estimates an absolute reduction
potential in 2050 of 18%, including carbon capture
and storage. A Cement Sustainability Initiative (CSI)
study, see page 16, identifi ed similar levers and
abatement potentials. Holcim has already signifi cantly
contributed to reducing emissions. In 2009, we met
our target by achieving a 21% reduction in net CO2
emissions per tonne of cement (2008: 19.6%) .
One of the main drivers has been our lowering of
the clinker factor, Holcim’s being among the lowest
in the industry with an average of 71.1% of clinker in
cement. Furthermore, by implementing best practices
and technology, Holcim increases energy effi ciency in
production, thus lowering related CO2 emissions. To
further improve our performance we have a new target
to reduce CO2 emissions per tonne of cement by 25%,
compared to 1990 levels, by 2015.
“Holcim faces a major challenge in reducing its energy usage and carbon emissions. I’d like to see more discussion of its possibilities to shift energy supply from fossil fuels to more sustainable energy sources.” Holger Walbaum, Chair in Sustainable Construction, Swiss Federal Institute of Technology (ETH Zurich).
Visit www.holcim.com/sustainable to read more.
Energy and climate
Energy security and climate change are critical risk factors
for the long-term sustainability of the company.
CO2 We achieved our CO2 emission reduction target one year ahead of schedule.
Visit www.holcim.com/sustainable for more about CO2 emissions.
To further improve our performance we have set a new CO2 emission reduction target.
See pages 9
and 15 for details.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
15
Key dataEnergy and climate*
Overall, Holcim has improved its thermal energy
consumption from over 4,500 MJ per tonne of clinker in
1990 to 3,580 MJ per tonne of clinker in 2009, reflecting
efforts to upgrade technology and optimize operations.
Concurrently, the substitution of traditional fossil fuels
with biomass residues and waste-derived fuels recovers
energy from waste, thus also reducing CO2 emissions .
Despite these improvements, Holcim’s absolute
emissions from cement production are bound to rise
due to increased demand for concrete. Breakthrough
innovations are needed to achieve absolute reductions.
See page 30 in our Annual Report for examples of Holcim’s
efforts in this area.
For details of specific CO2 emissions, clinker factor and
substitution rate by alternative fuels, see charts opposite.
Data on other atmospheric emissions including SO2, NOx and
dust is reported on page 28 and at www.holcim.com/sustainable
Policy and stakeholder engagement
Holcim constructively contributes to policy debate
to develop effective regulatory incentives to improve
energy efficiency and CO2 intensity. We believe that
the most effective way to reduce society’s carbon
footprint is via mandatory government policies and
regulated market instruments that set CO2 and
energy benchmarks.
To promote our positions on energy and climate, we
support GLOBE, an organization bringing together
legislators who share an interest in developing sound
environmental legislation. This has proven to be
a positive platform through which to channel our
viewpoints to members of national parliaments and
the European Parliament alike.
Carbon capture and storage (CCS) may offer important
carbon reduction potential. Holcim, with others in the
industry, supports the ongoing work of the European
Cement Research Academy (ECRA) on CCS technologies
in the cement industry.
For details of our engagement with the WBCSD Cement
Sustainability Initiative see page 16.
See pages 26–31 for full data tables.
Visit www.holcim.com/sustainable for more information.
* Due to ownership changes in 2009, figures for previous years have been restated.
Specific CO2 emissions
Clinker factor
Thermal substitution rate by alternative fuels
EN16
EN2
EN5
kg CO2/tonne cement % improvement
Average % of clinker in cement
% of thermal energy from alternative fuels
Specific gross CO2 emissions (excluding on-site power generation)
Specific net CO2 emissions (excluding on-site power generation)
% improvement trendline Sector average emissions
(WBCSD GNR database)
1990 2000... ... ...2005 2007 2008 2009 2015500
550
600
650
700
750
800
500
550
600
650
700
750
800
-30
-25
-20
-15
-10
-5
0
0
5
10
15
20
25
30
764756
706689
660642
640 620 628608
616
597
1990 2000... ... 2007 2008 200960
65
70
75
80
85
90
81.9
60
65
70
75
80
85
90
79.8
72.5 71.8 71.1
1990 2000... ... 2007 2008 20090
2
4
6
8
10
12
3.6
0
2
4
6
8
10
12
0
2
4
6
8
10
12
9.0
12.1
11.111.7
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
16
Energy and climate/Resources conservation
Best practice
“As an owner of landholdings all over the world, Holcim recognizes the principle of good land stewardship – that is, to be responsible not only for the resources below ground but also for the ecosystems, habitats and species above ground. Impacts on biodiversity will inevitably arise from the extraction of mineral resources, but these can be mitigated in many different ways through targeted management actions. Ultimately, this could sometimes even lead to biodiversity enhancements – as Holcim has already shown in places such as the El Puente aggregate quarry in Spain.” Dr Christoph Imboden, Chair of the Independent Expert Panel of the Holcim–IUCN Partnership.
Visit www.holcim.com/sustainable to read more.
Working with the Cement Sustainability Initiative (CSI)
Holcim is a founding member of the CSI,
www.cementwbcsd.org, part of the World Business
Council for Sustainable Development (WBCSD). The
CSI has developed in consultation with international
stakeholders a “sectoral approach” model which
is a framework enabling countries to fulfi ll their
commitments to the UNFCCC’s Bali Roadmap. The
model shows the same mitigation drivers as the
McKinsey Cost Curve and the IEA Technology Roadmap,
and all three models show, albeit in varying degree,
that sequestration such as carbon capture and storage
will be required to reduce absolute emissions from the
global cement industry. The approach was presented to
governments and negotiators in the lead-up to the 15th
UN Climate Change Conference (COP15) in Copenhagen
in December 2009. Work on this approach is continuing.
A key factor in enabling a sectoral approach is the
availability of robust and verifi ed global data, allowing
for fair, meaningful and effective benchmarking of the
industry’s CO2 and energy performance against which to
set improved targets. Holcim has participated with the
CSI members in developing the Getting the Numbers
Right (GNR) database as part of enabling this approach.
To facilitate a more streamlined process for the approval
of projects under the Clean Development Mechanism
(CDM), Holcim has supported the CSI in developing a
new CDM baseline and monitoring methodology based
on benchmarking. This tool, together with data from
a pilot project undertaken by Holcim Ecuador, was
presented to the UNFCCC’s CDM methodology panel
in mid-2009 and deliberations are continuing.
For a case study on working toward CO2-neutral sites,
visit www.holcim.com/sustainable
Experts help shape our management of biodiversity
Through our global agreement with the International
Union for Conservation of Nature (IUCN), signed in
2007, Holcim has forged strong links with this leading
organization. See page 17 for more about the partnership.
One of the key activities of our partnership was the
convening of an Independent Expert Panel (IEP),
consisting of fi ve well-respected biodiversity specialists
and chaired by Dr Christoph Imboden, an ecologist and
biodiversity conservation expert. Visit www.holcim.com/
sustainable for biographies of the panel members.
The IEP’s role is to advise Holcim on developing a
biodiversity management framework, including
overarching policies and practical toolkits to enable
“on the ground” management of biodiversity. The panel
has conducted visits to Group companies in Belgium,
China, Spain, Hungary, Indonesia, the UK and the USA
to learn about the company and its operations. The
visits allowed the panel to experience the diversity in
size, geography, maturity, outputs, issues and different
regulatory landscapes of Holcim operations.
16
Cement Sustainability Initiative
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
This interaction has led to a better understanding of
the relevance of biodiversity to our business and a set of
recommendations for Group and local operations. Some
of the panel’s initial observations are that:
• biodiversity management should cover a full scope
of operations, cement and aggregates sites
• biodiversity issues must be considered throughout
the entire lifecycle of a site, from early planning
through to closure
• sites should work with local experts and partners to
leverage their expertise
• rehabilitation can be done more cost-effectively by
providing the right conditions and structure so that
nature can re-establish itself, rather than planting
expensive flora
• progressive rehabilitation should be the preferred
option. This approach has proven to be more effective
in cost and time than an after-care program.
In addition to the global agreement with the IUCN,
Group companies and IUCN local branches have
undertaken joint projects in Costa Rica, Spain, Sri Lanka
and Vietnam. A joint workshop on capacity-building is
also being planned by our associated company in China
with the IUCN. For a case study on biodiversity action plans
in the UK and New Zealand, visit www.holcim.com/sustainable
Water conservation in Thailand
Our Group company in Thailand, Siam City Cement
has collaborated since 2007 with a local NGO to
support the construction of check dams to promote
water conservation.
Check dams retain water for use during droughts, slow
the flow of water in creeks, so reducing erosion and
other damage, and aid soil fertility. Water can also be
diverted from the dams into forest areas to limit the
build-up of dry leaves and reduce fire risk. Studies by
Chiang Mai University, supported by Siam City Cement,
have shown that check dams restore ecological balance,
revive natural resources, contribute to improved air
quality and help to raise local living standards.
The project was started following an environmental
initiative by the King of Thailand. Siam City Cement
provided funding of 27 million baht (USD 820,000) over
three years and supplied cement for construction. Over
1,000 volunteers, including Siam City Cement employees,
built 3,880 check dams in eight provinces over the
three-year period, which were handed over to the Chai
Pattana Foundation in a ceremony in December 2009.
Quarry or natural habitat? This rehabilitated quarry at El Puente in Spain has become a haven for an increasing variety of bird species.
17
Our Group company in Thailand, Siam City Cement, has been promoting water conservation with a project to construct 3,880 check dams in the country.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
18
Biodiversity and water: key issues to be addressed
Growing population levels and continuing economic
development are increasing the demand for land,
food, water, energy and other resources, adding to
the pressure on ecosystems and biodiversity. Holcim
is a resource-intensive business with 154 cement and
grinding plants, 485 aggregates plants, 1,457 ready-mix
concrete plants and some 800 quarries worldwide.
We recognize that biodiversity supports essential
ecological functions and human wellbeing. It helps
to maintain ecosystem services, secure food supplies,
provide opportunities for recreation and tourism, and
safeguard sources of wood, medicines and energy.
Holcim has a long history of conducting environmental
and social impact assessments and of quarry
rehabilitation. The work we are undertaking in
partnership with the IUCN has confi rmed that
biodiversity needs to be considered throughout the
complete lifecycle of our operations from site opening
to closure. This is not just at a policy and planning level,
but also to ensure that existing tools are being adapted
and new ones integrated in an overall biodiversity
management system. More details on the partnership
with the IUCN can be found under stakeholder
engagement in this section.
We aim for effi cient water use in all our operations.
In cement production, water is used for cooling heavy
equipment and hot exhaust gases, for dust control and
for preparing slurries in wet process kilns. Water is also
used in concrete and aggregate operations. Feedback
from stakeholders has emphasized the importance
of improving our performance in managing water
resources, especially in areas where water is in short
supply. Holcim has reported among the lowest water
consumption in the sector, having reduced specifi c
water consumption signifi cantly from 430 liters per
tonne of cement in 2005 to 360 liters in 2009. Water
recycling is key to reducing process water usage in
our aggregate and ready-mix concrete operations.
Just under three-quarters (72%) of ready-mix concrete
operations have water recycling systems in place .
We have taken note of stakeholder concerns and
are developing a water management scheme for all
business units, which we intend to implement by the
end of 2013.
Eco-effi ciency is at the core of Holcim’s business –
producing more while using fewer resources and
producing less waste and pollution per tonne of
product. At Holcim, we are convinced that conserving
natural resources plays an ever-increasing role in our
long-term resource and reserve strategy and we aim
at continuously improving our performance.
“We have to find ways in which we can satisfy the housing and construction needs of the world without jeopardizing the environment with chemicals and affecting the flows of substances like water. The mining of limestone not only adversely affects the landscape, but also the hydrological cycle in the area.” Ashok Khosla, Chairman, Development Alternatives.
Visit www.holcim.com/sustainable to read more.
Resources conservation
Increasing competition for scarce land and water
resources are growing global concerns.
Target 80% of sensitive sites to have biodiversity action plans by 2013.
Visit www.holcim.com/sustainable for more information.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
19
Key dataResources conservation
Stakeholder engagement
Holcim’s partnership with the IUCN to increase its
knowledge and experience in biodiversity issues and
realize operational efficiencies has been extended until
the end of 2010. The partnership is well on track to
deliver the expected objectives.
One of the first activities was to establish a baseline of
Holcim’s activities related to biodiversity management,
including the development of a biodiversity
management system. Guidelines for biodiversity-
based micro-enterprise development projects were
also developed and the IUCN is also being consulted
to ensure that greenfield projects address biodiversity
issues. Jointly, both organizations participated in a
number of events such as European Minerals Day, for
which Holcim opened 13 of its rehabilitated sites to
the public. Visit www.holcim.com/sustainable for a case
study on the European Minerals Day.
The Holcim–IUCN relationship is complemented by
Holcim’s active participation in the WBCSD (World
Business Council for Sustainable Development)
ecosystem focus area, which addresses ecosystem
and biodiversity issues. This provides an engagement
and collaboration platform with other industries to
address challenges and opportunities associated
with ecosystems and ecosystem services. For more
information, visit www.wbcsd.org
Furthermore, the WBCSD Cement Sustainability
Initiative and Cembureau (the organization that
represents the European cement industry) have
established task forces to explore and share best
biodiversity practices within the industry, in which
Holcim participates as well.
See pages 26–31 for full data tables.
Visit www.holcim.com/sustainable for more information.
Cement Aggregates Ready-mixconcrete 2007 2008 2009 2007 2008 2009 2007 2008 2009
Number of 148 145 143 315 319 365 953 987 1,031 plants included in evaluation
Water
Water 340 320 360 647 621 643 240 230 238 consumption l/m3 l/m3 l/m3 l/t Total million 56 47 49 104 91 86 10 10 9 m3/a Water recycling n/a n/a 78%1 50% 45% 45% 72% 72% 72% systems
Quarry management and rehabilitation
% of plants 30% 28% 37% 17% 14% 28% 8% 8% 4% operating in sensitive areas2 Approved 94% 95% 97% 87% 83% 95% n/a n/a n/a mining plans by local authorities Rehabilitation 90% 91% 91% 81% 82% 95% n/a n/a n/a plans in place
Water, quarry management and rehabilitation EN10, EN11, EN13
Cement Aggregates Ready-mixconcrete 2007 2008 2009 2007 2008 2009* 2007 2008 2009
Road 73% 73% 74% 95% 95% 87% 100% 100% 100% Rail 18% 19% 17% 1% 2% 8% n/a n/a n/a Water 9% 8% 9% 2% 1% 4% n/a n/a n/a Other n/a n/a n/a 2% 2% 1% n/a n/a n/a
Transport
Cement and aggregates are heavy, low-price, bulk products, and transport choices are thus driven by cost considerations: the table below details the methods employed by Holcim to transport products.
EN22
Members of the Independent Expert Panel visiting an area neighboring our plant in Moloko, Indonesia.
1 Relates to closed circuit equipment cooling systems.2 The increase in figures reflects revised definition of sensitive area following input from
the IUCN and the expert panel.
* The difference from previous years is mainly due to a revised calculation methodology.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
Social commitment
Best practice
The winner of a conservation poster competition receives her prize at a Conservation Day conducted by our Group company in the USA.
Making a difference – engaging and
motivating employees
Creating an innovation culture and promoting active
engagement of employees can help generate creative
ideas around sustainable development while saving
costs. To encourage this creativity, Holcim US is
conducting Conservation Days in plants all over the
country. The fi rst one took place in the Ada plant in
Oklahoma in December 2007.
The Conservation Days aim at raising awareness
among employees, their families and members of
local communities of how daily choices impact on the
environment. The program motivates and educates
participants on how to take personal and professional
stewardship for protecting the environment and
“to pledge to make a difference today”.
Conservation Day visitors are encouraged to visit
different interactive stations covering themes such
as energy conservation, recycling, carbon footprint
calculation and transportation. After computing their
personal carbon footprint, employees are given the
opportunity to pledge to reduce their footprint, using
recommendations learned at the various theme booths
at the event. Holcim fuels their enthusiasm with a
Conservation Fund. Employees who purchase an energy-
effi cient vehicle, an energy star-approved appliance or
complete a home energy savings project receive a
small subsidy.
The program helped to raise awareness on how to
reduce a family’s carbon footprint with simple solutions
and to change individual attitudes at home as well
as at work. Plant employees’ action had an impact on
the community. In one community, for example, the
local high school formed a Holcim Conservation Youth
Leadership group promoting the conservation concept
in many schools and the carbon footprint concept was
introduced to other organizations.
20
“Attending the Conservation Day motivated our family to make a variety of changes from purchasing a hybrid car to buying re-usable grocery bags. These small changes make all the difference.” Karen Bittner, employee of Holcim US.
Visit www.holcim.com/sustainable to read more.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
Dialogue with employee representatives
In all countries of operation, we support collective
bargaining and proactively collaborate with elected
employee representatives. In addition, we engage with
employee bodies at national or international levels.
One example is the European Forum. It comprises
29 representatives of 13 countries covering the
United Kingdom as well as Western, Eastern and
Central Europe. The forum is further staffed with two
representatives of the European labor union (European
Federation of Building and Woodworkers, EFBWW), and
two observers from the Swiss operating company. All
delegates have clearly defined roles, responsibilities and
rights of involvement.
Topics and issues which have an international impact,
such as significant changes in organizational structure
and production processes are dealt with by the
forum. It further must be informed of any initiative or
project that may have a cross-border impact on social
structures, conditions of employment or employees.
Sewing shops were established in Volsk, Russia following an engagement by our Group company Alpha Cement to establish the needs of the community.
Employee representatives of the European Forum at a meeting on occupational health and safety issues held in Belgium.
Selecting the right community projects
Following an assessment of its community activities,
Alpha Cement, our Group company in Russia, began to
implement a program that is driven and ultimately owned
by community stakeholders. In April 2009, Alpha Cement
launched a project competition in Volsk, in collaboration
with local authorities. Local stakeholders had the
opportunity to suggest projects for funding and project
implementation support. The projects needed to comply
with a set of criteria and a jury composed of internal and
external experts nominated winners according to the
established selection criteria (relevance of project, urgency
of problem, probable effectiveness, innovation, number
of beneficiaries, and soundness of project planning).
Examples of successful projects include the establishment
of a sewing shop, offering employment to disabled people,
as well as affordable sewing services to low-income
citizens; the renovation and equipping of a health center
for the mainly retired citizens living on the outskirts of the
city; and the creation of a learning environment for English
studies at the local school.
Overall, 12 projects were implemented in collaboration
with local authorities between June and November
2009, reaching about 70,000 beneficiaries.
21Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
22
Shared sustainable benefi ts
Our approach to social engagement has always been
strategic, not philanthropic. Social responsibility is
how Holcim manages its business while benefi ting
society and all its stakeholders. Employment practices,
occupational health and safety, upholding human rights
and community engagement are focus areas for Holcim.
Holcim as an employer
Holcim recognizes the crucial role employees play
in creating value. They are the basis of success. This
recognition is clearly refl ected in the Group strategy. For
Holcim to succeed, it needs competent, committed and
engaged employees. We therefore want to be attractive
in the highly competitive employment market and
approach talent proactively. Our employment practices
contribute to creating a working environment where
employees can fl ourish.
By nature of our global structure, we are a company
with a highly diverse workforce, particularly in terms of
culture and age. In our senior management team alone,
60 nationalities are represented. In what is traditionally
a heavy manufacturing environment, driving gender
diversity remains a challenge, and in 2009, 12% of the
workforce was represented by women, while 8% of our
top and senior managers were female . More than
ever, we are committed to providing equal opportunities
for all our employees and work on strengthening
a culture of mutual respect, trust and openness.
To foster this culture, we further engage with elected
employee representatives. See page 21 for a case study
on the European Forum. On average, 47% of employees
are represented by an independent labor union and in
countries where no unions exist, Holcim makes sure
that collective bargaining takes place and an employee
complaint system is implemented . In striving to be
one of the most attractive employers in our industry,
we further ensure wages that refl ect local industry
standards, and at the lowest paid entry level, our
Group companies on average pay 138% above local
minimum wage .
Professional and individual development is crucial
to maintaining the high competence level of our
employees. Despite the economic crisis, a high level
of training has been maintained. In 2009, Group
companies reported a total of 1,240,620 hours of
training for employees, 75% of which was received
by non-managerial level employees . For more
information about our corporate training activities, see our
Annual Report, page 48.
In addition to our performance management system,
which provides a framework for the evaluation of
performance and setting of objectives, all middle
Social commitment
Through its longstanding social commitment, Holcim
aims at contributing to a more sustainable society.
Diversity Our 1,957 top and senior managers represent 60 nationalities. Women constitute 12% of the workforce.
Visit www.holcim.com/sustainable for more information.
“We congratulate Holcim as a leader in the cement industry in reducing its emissions. ICEM member unions appreciate the serious efforts by Holcim in developing alternative fuels, such as biomass. In the next report we would like to see substantiation of Holcim’s commitment to global labor standards such as the ILO Conventions, the UN Global Compact and the OECD guidelines. It is our sincere hope that Holcim designates a specific resource to deal with social dialogue.” Phee Jung Sun, ICEM – International Federation of Chemical, Energy, Mine and General Workers’ Unions.
Visit www.holcim.com/sustainable to read more.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
23
Key dataSocial commitment
and senior managers complete a leadership training
program. In the context of this training, direct reports, as
well as peers and internal clients, have the opportunity
to evaluate performance and leadership skills. This
enables managers to gain a better understanding of
their personal strengths as well as improvement
potential for their next career steps. Since 2007, over
550 senior and top managers have participated.
Due to the global economic recession, some
redundancies were necessary in Holcim Group
companies in 2009. These were made in accordance
with prevailing legislation and with sensitivity toward
those affected. In many cases support such as retraining
or assistance in finding other employment was offered.
Fostering a safe working environment
Occupational health and safety (OH&S) is and remains
a top priority for Holcim. The health and safety of
employees, contractors, third parties and visitors is
fundamental to our business success. We recognize that
even one incident is one incident too many. There are
significant challenges in embedding a culture of safety
not just within our plants, but also specifically among
third-party contractors and drivers transporting
our products.
Despite ongoing efforts, we deeply regret that 28 people
lost their lives in 2009 while discharging their duties
for Holcim . We remain committed to achieving our
vision of “zero harm to people” and will continue with
efforts to improve our safety performance. All accidents
and near-misses are exhaustively analyzed and
communicated internally.
A systematic approach is followed, guided by the Holcim
OH&S management system, which has 19 specific
building blocks. Clear organizational and personal
accountabilities are supported by a robust program of
training, communication, strict procedural discipline
and locally developed policies and action plans. Five
Cardinal Rules, visit www.holcim.com, have been laid
down, and there is zero tolerance for breaches. In this
context, managers are required to lead the way as role
models and make OH&S part of the daily routine of
all employees.
Visit www.holcim.com/sustainable for more information.
See pages 26–31 for full data tables.
Visit www.holcim.com/sustainable for more information.
Female workforce
Lost-time injury frequency rate*
Fatalities – cement, aggregates and ready-mix concrete*
LA2, LA14
LA8
LA8
% of female workforce
LTIFR
Number of fatalities
Top management level Middle management level
Directly employed (2007: 89,364/2008: 86,713/2009: 81,498) Indirectly employed Other
Directly employed
Senior management level Other employees
* Numbers of fatalities are reported following the WBCSD reporting standards.
* Data for LTIFR are regrouped to reflect the CSI reporting standards. Direct employees include own and subcontracted personnel under direct Holcim supervision. The lost- time injury frequency rate (LTIFR) is calculated as:
Number of lost-time injuriesTotal number of hours worked
x 1,000,000
0
5
10
15
20
7
12
0
5
10
15
20
9
13
16
8
13
7
Female 2007 Female 2008 Female 2009
78
12 12
2007 2008 20090
5
10
15
20
25
19
0
5
10
15
20
2521
5
8
15
8
6
19
2
2007 2008 2009 20100
1
2
3
4
5
6
3.9
0
1
2
3
4
5
6
0
1
2
3
4
5
6
Threshold<2
2.7
2.1
Target
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
Data include all cement, aggregate and ready-mix concrete operations.
Sustainable products and sustainable construction Energy and climate Resources conservation Social commitment
24
All Group companies are required to implement a
series of fatality prevention directives by the end of
2010. Furthermore, new directives on contractor safety
management and safety in alternative fuels and
resources (AFR) platforms have been developed and are
being rolled out.
In line with our commitment to the Cement
Sustainability Initiative, our OH&S performance in 2009
has been externally assured by PricewaterhouseCoopers.
Upholding human rights
There is a growing responsibility on companies,
especially those operating in confl ict-affected
countries, to manage human rights transparently and
in accordance with universally accepted principles. Our
stakeholders encourage us to engage with this issue
beyond the traditional fi elds of labor rights and worker
safety and ask that we use our presence as a positive
contribution in these countries.
Holcim follows an integrated approach to managing
human rights based on the commitments stated in
our CSR policy and our support for the UN Global
Compact. Responsibility for managing human rights
issues rests with Group company line management.
All Group companies are required to apply global
Holcim standards and are expected to take appropriate
measures to mitigate any human rights risks present in
the country. In our global survey, eight Group companies
identifi ed a country risk of child labor, eight a country
risk of forced or compulsory labor and seven a country
risk of freedom of association . In these cases, Group
companies are encouraged to develop a related policy.
Twenty-one Group companies implement human rights
training. Thirty-two Group companies undertake human
rights assessments when taking major investment
decisions and where specifi c issues arise, our Group
companies are encouraged to conduct Human Rights
Impact Assessments (HRIAs), and take appropriate
measures based on the outcomes of the assessment.
Operating in confl ict-affected countries
Holcim has a long history in engaging with the
communities where we operate. However, in confl ict-
affected countries, a strong external partner is needed
to defi ne and implement humanitarian action. For this
reason Holcim joined the Corporate Support Group of
the International Committee of the Red Cross (ICRC)
at the beginning of 2010. The collaboration enables
Holcim to work with an organization that has earned
exceptional international credibility in protecting
the lives and dignity of victims of armed confl ict
and other situations of violence, and providing
them with assistance.
With this collaboration we would like to target specifi c
humanitarian projects in confl ict-affected countries,
where both Holcim and the ICRC operate, promoting
projects linked to our business activities.
Holcim initially supported a program to provide clean
water in Sudan in 2009. Improving access to water for
vulnerable people in rural areas of Sudan will continue
to be the focus in 2010. In addition, Holcim will support
the ICRC’s efforts to improve water supply and
sanitation systems in other confl ict-affected
communities such as Colombia.
Together with the ICRC, Holcim will defi ne, on a yearly
basis, the scope of the joint activities in selected
countries. In addition, the two organizations intend to
share their expertise and experiences in areas of mutual
interest such as crisis and risk management, provision
of water services and infrastructure development.
Visit www.holcim.com/sustainable for more information.
“It is important that Holcim recognizes human rights as an issue that applies beyond OH&S and the rights of employees. The challenge Holcim faces is in addressing it as an overarching priority and demonstrating that to external stakeholders.” Melany Grout, Director, Confl ict Risk Network.
Visit www.holcim.com/sustainable to read more.
Holcim has joined the ICRC Corporate Support Group and will target humanitarian projects in confl ict-affected countries where we operate.
Visit www.holcim.com/sustainable for more information.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
25
Key dataSocial commitment
See pages 26–31 for full data tables.
Visit www.holcim.com/sustainable for more information.
Type of engagement % of Group companies 2007 2008 2009
Needs assessment 65% 65% 46%
Stakeholder involvement in CSR planning 85% 83% 83%
CSR/SD memberships 70% 77% 79%
Stakeholder dialogues 89% 88% 83%
Community advisory panels 50% 54% 38%
Cooperations 76% 65% 67%
Stakeholder engagement at local level*
* �2007 data covered 46 Group companies and 2008 and 2009 data covered 48 Group companies.
SO1
Contributing to sustainable community development
Community engagement that results in mutual
trust and social acceptance remains a priority for
Holcim in all countries of operation. Related activities
focus on developing countries, in particular, places
where institutional capacities are not adequate.
Effective relations with our host communities and the
implementation of collaborative projects that are based
on community needs represent sound risk management,
ensure freedom to operate and lead to economic
success. Our approach is to contribute innovative
solutions to some of the most pressing development
issues in the communities where we operate.
In the context of our focus areas – education,
community development and infrastructure – we are
currently concentrating our efforts on sustainable
affordable housing initiatives, micro-enterprise
development and vocational training. In 2009,
CHF 36 million was spent on community engagement,
which is around 1.4% of net income before tax,
benefiting some 3 million people .
Given the high quality of ongoing community projects
and the expertise of our CSR staff, we were able to
attract significant amounts of external funding,
allowing for an upscaling of existing projects. In Brazil,
for example, the Interamerican Development Bank
approved an income generation project in Cantagalo,
Rio de Janeiro, and invested USD 138,600 out of a total
of USD 290,000.
To adopt an even more strategic approach to
community investment, Group companies are asked to
evaluate community initiatives to ensure that they are
adding value to both the stakeholders involved and the
company. By the end of 2009, 56% of Group companies
had assessed their most important projects using the
Social Engagement Scorecard (SES), a tool developed
by Holcim to measure the effectiveness of projects
and donations. The assessment led to a reduction of
some donations to good causes while other strategic
community projects were strengthened.
Stakeholder engagement
Community advisory panels and other community
engagement activities have proven to be an excellent
way to collaborate with community stakeholders,
share responsibilities and ensure project ownership.
To ensure that all operational sites have a community
engagement plan in place, a new target has to be
achieved by 2012.
Visit our website for a complete list of memberships
and partnerships.
Target All Group companies should have a community engagement plan in place for their sites by 2012.
Visit www.holcim.com/sustainable for more information.
Community involvement EC1Community spending (CHF million)
Donations and charity Education projects Community development projects
Infrastructure community projects CSR overhead Other
2007 2008 20090
3
6
9
12
15 15
0
3
6
9
12
15
7 7
4
9 9
12
6 6
3
67 7 7
6
2
5
7
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceSustainable products and sustainable construction Energy and climate Resources conservation Social commitment
26
KPI UNGCprinciples
GRI 2007 2008 2009
Sales in CHF billionNet sales 3 EC1 27.1 25.2 21.1Input factor (cost of all goods, materials and services provided) EC1 14.0 15.0 12.0Depreciation and amortization EC1 1.9 2.0 1.9Value creation for Holcim and key stakeholders EC1
Benefit to employees 4.6 4.5 3.9Benefit to governments (taxes) 1.2 0.7 0.6Benefit to shareholders (including minorities) 1.2 1.3 0.8Benefit to creditors 0.8 0.8 0.8Benefit to communities 0.048 0.041 0.036Retained in business 3.3 0.9 1.2
Sales of cement (million tonnes) 3 149.6 143.4 131.9Sales of mineral components (million tonnes) 3 5.5 4.8 3.5Sales of aggregates (million tonnes) 3 187.9 167.7 143.4Sales of ready-mix concrete (million m3) 3 45.2 48.5 41.8Sales of asphalt (million tonnes) 3 14.8 13.5 11.0Sustainable product% of cement products containing mineral components 3 EN2 75% 78% 80%Cement types produced by HolcimSlag cement (%) 10 11 9Pozzolan cement (%) 7 8 9Fly ash cement (%) 19 23 26Limestone cement (%) 12 15 14Multiple blend cement (%) 23 17 17Masonry cement, oilwell cement, white cement special binder, MIC and other (%)
4 4 5
Ordinary Portland Cement (%) 25 22 20SuppliersGoods, services and materials purchased (CHF billion) EC1 14.0 15.0 12.0Global suppliers screened using the self-assessment questionnaire (%)
HR1 HR2
78 95 96
Group companies screening local suppliers (%) OHS standards (%) 83 96 92EMS systems (%) 44 81 81Labor standards (other than human rights) (%) 67 77 83Social accountability or other human rights criteria (%) 59 67 75
Local suppliers screened OHS standards (%) 23 38 38EMS systems (%) 19 29 30Labor standards (other than human rights) (%) 21 34 44Social accountability or other human rights criteria (%) 20 26 29
Government relationsPolitical contributions (CHF) SO6 415,468 1,018,054 279,491Number of Group companies making political donations SO6 5 9 7Average subsidies from national governments (grants, tax relief and other financial benefits) (CHF million)
EC4 4.1 4.7 3.1
Number of Group companies receiving subsidies EC4 12 12 15Customer relations% of Group companies conducting a customer survey PR5 65 79 75
% of those surveyed measuring customer satisfaction 80 71 88% of Group companies with a specific customer health and safety policy
PR1 50 52 54
% of Group companies with a specific product information and labeling policy
PR3 39 44 50
Economic performance
Performance data
Visit www.holcim.com/sustainable c0ntinued
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceEconomic performance Environmental performance Social performance
27
KPI UNGC principles
GRI 2007 2008 2009
Number of plants included in evaluationCement EN3 148 145 143Aggregates EN3 315 319 365Ready-mix concrete EN3 953 987 1,031Management systemsImplementation of ISO 14001 (% of plants)
Cement plants 93 93 92AFR pre-treatment platforms 92 84 84Aggregate plants 56 57 53Ready-mix concrete plants 37 35 39
Environmental investments and environmental complianceEnvironmental investments (CHF million) EN30 144 132 40Provisions for site restoration and other environmental liabilities (CHF million)
EN13 518 478 585
Number of plants/quarries reporting non-compliance cases EN28Cement 8 4 8Aggregates 4 2 33Ready-mix concrete 13 15 31
Non-compliance casesCement 8 4 9Aggregates 4 4 40Ready-mix concrete 18 25 41
Associated fines and penalties (CHF) EN28Cement 1,025,000 320,000 253,900Aggregates 19,500 19,875 9,400Ready-mix concrete 111,500 53,900 3,022,300*
Reducing CO2 emissions Absolute gross CO2 emissions (million tonnes) 3 EN16 108.5 105.5 96.6
Without power generation 104.6 101.2 92.2Emissions of on-site power generation 3.9 4.3 4.4
Absolute net CO2 emissions (million tonnes) 3 105.3 102.3 93.7Without power generation 101.4 98.0 89.3Emissions of on-site power generation 3.9 4.3 4.4
Specific gross CO2 emissions (kg CO2/t cementitious materials) 3 3 664 654 645Without power generation 640 628 616Emissions of on-site power generation 24 26 29
Specific net CO2 emissions (kg CO2/t cementitious materials) 3 3 644 634 626Without power generation 620 608 597Emissions of on-site power generation 24 26 29
AggregatesAbsolute gross CO2 emissions (million tonnes) 0.26 0.24 0.22Specific gross CO2 emissions (kg CO2/tonne of product) 1.6 1.6 1.7
Ready-mix concreteAbsolute gross CO2 emissions (million tonnes) 0.10 0.09 0.08Specific gross CO2 emissions (kg CO2/m3) 2.4 2.1 2.2
AsphaltAbsolute gross CO2 emissions (million tonnes) 0.22 0.16 0.18Specific gross CO2 emissions (kg CO2/tonne of product) 19.2 13.6 13.3
Indirect CO2 from purchased power (million tonnes) EN4Cement 6.6 6.6 5.9
EnergyThermal energy mix of clinker production (%) EN3
Coal 52 56 56Petcoke 20 21 19Heavy fuel 2 1 1Natural gas 12 8 8Shale and lignite 2 2 4
Environmental performance
Visit www.holcim.com/sustainable c0ntinued
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
* This increase results from a settlement of approximately CHF 3.0 million paid by a Group company in the USA to the US EPA.
Economic performance Environmental performance Social performance
28
Environmental performance (c0ntinued)
c0ntinued Visit www.holcim.com/sustainable
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
KPI UNGC principles
GRI 2007 2008 2009
EnergyAlternative fossil fuels EN3 9 10 10Alternative biomass fuels 2 2 2
Thermal energy efficiency (MJ/tonne clinker) 3 3 3,666 3,661 3,580Thermal substitution rate (% thermal energy from alternative fuels)
3 3 EN5 11.1 11.7 12.1
Waste types used as alternative fuels (%) EN3 EN5Waste oil 8 8 8
Tires 17 16 15Plastics 11 12 13Solvents 12 11 10Impregnated sawdust 9 8 10Industrial waste and other fossil-based wastes 27 27 27Animal meal and animal fat 4 3 3Agricultural waste/charcoal 7 9 9Wood/non-impregnated sawdust 2 3 3Other biomass 3 3 2
Clinker factor (average % of clinker in cement) 3 3 EN2 72.5 71.8 71.1Fuel consumption (specific MJ/t)* EN3
Cement 3,025 3,007 2,932Aggregates 22 22 22Ready-mix concrete (MJ/m3) 21 20 31
Fuel consumption (total MGJ/a)*Cement 461 457 439Aggregates 3.5 3.2 3.0Ready-mix concrete 0.9 0.9 1.2
Power consumption (specific) kWh/t* Cement 105 105 104Aggregates 2.5 2.5 2.8Ready-mix concrete (kWh/m3) 3 3 3.7
Power consumption (total million kWh/a)* Cement 16,942 16,779 15,454Aggregates 381 368 366Ready-mix concrete 124 126 135
Other atmospheric emissionsNOx EN20
Number of kilns reporting 141 145 133Total emissions (tonne/a) 3 199,595 171,925 152,100Average specific concentration (g/tonne cementitious materials)
3 1,220 1,160 1,120
SO2Number of kilns reporting 150 143 133Total emissions (tonne/a) 3 52,670 49,335 24,670Average specific concentration (g/tonne cementitious materials)
3 320 330 180
DustNumber of kilns reporting 160 152 137Total emissions (tonne/a) 3 17,735 14,400 12,090Average specific concentration (g/tonne cementitious materials)
3 110 100 90
MercuryNumber of kilns reporting 129 144 126Total emissions (tonne/a) 2.7 1.9 1.8Average specific concentration (g/tonne cementitious materials)
0.02 0.015 0.013
* Due to ownership changes in 2009, some figures for previous years have been restated. Fuel consumption figures for cement includes kiln and non-kiln fuels. 2009 fuel consumption figures for aggregates and ready-mix concrete includes natural gas (previously excluded).
Economic performance Environmental performance Social performance
29
Environmental performance (c0ntinued)
Visit www.holcim.com/sustainable c0ntinued
* This figure excludes our plants in India. † The increase in figures reflects a revised definition of “sensitive area” following input from the IUCN and the expert panel.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
KPI UNGC principles
GRI 2007 2008 2009
Other atmospheric emissions (continued)Organics EN20
Number of kilns reporting 145 141 133Total emissions (tonne/a) 10,280 8,320 5,080Average specific concentration (g/tonne cementitious materials)
63 56 37
Dioxins/furansNumber of kilns reporting 129 136 127Total emissions (grams/a) 6.0 6.0 5.2Average specific concentration (micrograms TEQ/tonne cementitious materials)
0.037 0.040 0.038
Implementation rate of continuous emission monitors (%)* 83 83 85Biodiversity and resources conservation% of sites operating in environmentally sensitive areas† 3 EN13
Cement 30 28 37Aggregates 17 14 28Ready-mix concrete 8 8 4
Approved mining plans by local authoritiesCement 94 95 97Aggregates 87 83 95
% of sites with quarry rehabilitation plans in place 3
Cement 90 91 91Aggregates 81 82 95
WaterWater consumption l/t EN8
Cement 340 320 360Aggregates 647 621 643Ready-mix concrete (l/m3) 240 230 238
Water consumption (total million m3/a) EN8Cement 56 47 49Aggregates (water withdrawal) 104 91 86Ready-mix concrete 10 10 9
Water recycling systems EN10Cement n/a n/a 78%Aggregates 50% 45% 45%Ready-mix concrete 72% 72% 72%
TransportRoad (%) EN29
Cement 73 73 74Aggregates 95 95 87Ready-mix concrete 100 100 100
Rail (%)Cement 18 19 17Aggregates 1 2 8
Water (%)Cement 9 8 9Aggregates 2 1 4
Other (%)Cement n/a n/a n/aAggregates 2 2 1
Waste management and recyclingGeneral waste management system (%) EN22
Cement 98 98 98Aggregates 86 80 81Ready-mix concrete 77 75 76
Returned concrete recycling system (%)Ready-mix concrete 22 30 27
Economic performance Environmental performance Social performance
30 Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
KPI UNGC principles
GRI 2007 2008 2009
CSR strategy% Group companies with a specific CSR strategy 3 80 83 94Employment practicesGroup employees by region LA1 89,364 86,713 81,498
Europe 22,905 23,557 20,800North America 11,190 9,825 8,016Latin America 13,409 13,548 12,626Africa Middle East 2,795 2,477 2,256Asia Pacific 38,133 36,196 36,858Corporate 932 1,110 942
Employee turnover (%) LA2Europe n/a 12.3 15.6North America n/a 20.1 29.5Latin America n/a 14.6 12.7Africa Middle East n/a 3.9 3.7Asia Pacific n/a 5.8 7.3Corporate n/a 8.4 23.2
Personnel expenses (CHF million) LA3 4,558 4,497 3,939Europe 1,761 1,837 1,577North America 1,265 1,103 918Latin America 543 603 471Africa Middle East 150 105 92Asia Pacific 574 598 632Corporate 265 251 249
% of female workforce LA13Top management level 3 6 7 7Senior management level 3 9 8 8Middle management level 3 16 12 13Other employees 13 12 12
Notice given for operational changes LA5 5–6 weeks
5–6 weeks
5–6weeks
% Group companies conducting employee satisfaction surveys 59 42% Group companies with employee grievance procedures 76 75 81
% where grievances can be submitted anonymously 55 48 63TrainingHours of training per employee LA10
Senior management 57 68 32Middle management 65 77 47Other organizational levels 30 25 23Average all levels n/a 31 27
Occupational health and safetyNumber of fatalities – cement, aggregates and ready-mix concrete
3 LA7
Directly employed 9 16 8Indirectly employed 11 9 15Other 28 2 5
Lost-time injury frequency rate LA7Directly employed 3 3.9 2.7 2.1
% Group companies with serious disease programs LA8 91 88 83% Group companies with joint health and safety committees LA6 100 98 98
% of workforce represented by committees LA6 83 81 74
Social performance
c0ntinued Visit www.holcim.com/sustainable
* Employee satisfaction surveys are conducted on a cyclical basis, generally every one to three years. Due to the global economic crisis, a number of Group companies cancelled or postponed surveys due to be conducted in 2009.
27*
Economic performance Environmental performance Social performance
31Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
KPI UNGC principles
GRI 2007 2008 2009
Human rights% Group companies giving training on equal opportunity policies HR3 61 50 56% Group companies giving training on human rights policies HR3 30 40 44Community involvementCommunity spending (CHF million) 3 EC1 48 41 36
Donations and charity 15 12 9Education projects 7 6 5Community development projects 7 6 7Infrastructure community projects 9 7 7CSR overhead 6 7 6Other 4 3 2
Community spending breakdown (%) Donations and charity 32 29 27Education projects 14 14 15Community development projects 15 14 18Infrastructure community projects 18 18 18CSR overhead 13 18 16Other 8 7 6
Stakeholder engagementStakeholder engagement at local level (% of Group companies) SO1
Needs assessment 65 65 46Stakeholder involvement in CSR planning 85 83 83CSR/SD memberships 70 77 79Stakeholder dialogues 89 88 83Community advisory panels 3 50 54 38Cooperations 76 65 67
Social performance (c0ntinued)
Visit www.holcim.com/sustainable
Economic performance Environmental performance Social performance
32
Methodology
We continue to develop a robust framework for managing
and reporting SD performance.
Methods of data collectionWe collect information from Group companies using the following tools: Plant Environmental Profile (PEP)questionnaire; equipment data and operating statistics based on annual plant technical reports; corporate CO2 inventory according to the WBCSD/WRI Cement CO2 Protocol; corporate OH&S questionnaire; corporate social responsibility questionnaire.
Our data collection systems enable monitoring of performance at three operational levels: individual plant performance, Group company and corporate consolidation of global performance.
System boundariesThe scope of our reporting is outlined below.
Economic performance – Data included represent consolidated data from Holcim Group plants and companies covering all of the Group’s operations, and are consistent with those reported in the Holcim Annual Report 2009.
Environmental performance – CO2 and energy: the scope of data collection for CO2 and resources use includes integrated cement plants, grinding stations and terminals. Consolidation of data is consistent with the WBCSD/WRI Cement CO2 Protocol where operational control is used as a criterion.
Where Holcim owns between 20% and 50% of the Group company and does not have management control, data are proportionally consolidated; below 20%, the data are not reported; all other companies are reported 100%.
Other environmental data – The Plant Environmental Profile (PEP) self-assessment questionnaire is the source of performance information and data related to all other environmental impacts of the cement, aggregates and ready-mix concrete business segments; all data
from all principal consolidated Group companies are included in this report at 100%.
Restatement of historical data – Holcim now reports CO2 and resources use according to Version 2 of the WBCSD/WRI Cement CO2 Protocol. All historical data have been recalculated according to the updated Protocol, to enable comparison of data over time. Historical data are also restated to reflect changes in consolidation of companies and acquisitions/divestments.
Social performance – Personnel data represent consolidated data from Holcim Group plants and companies covering all of the Group’s consolidated operations. Occupational health and safety data are collected for all operations via monthly reports and an annual survey, which is then revalidated by our regular business process system. Data are segregated according to on-site and off-site (logistics-related) incidents, and cover directly and indirectly employed, third-party service providers, visitors and others. This is consistent with the WBCSD CSI Guidelines for Reporting. All other social performance data are derived from the CSR questionnaire, which covers all Group companies, and are fully consolidated.
Reporting cycleHolcim has publicly reported SD performance for the last seven years. A full report is published each second year (the last in 2008), with data and performance information updated on our website every year.
External assuranceTwo Tomorrows has undertaken external assurance of our reporting, including a stakeholder review of our materiality process and of the draft report. See page 33 for more information. PwC provided independent assurance of our CO2 data for the 2008 and 2009 reporting periods and OH&S data for the 2009 reporting period. See page 34 for more information.
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceMethodology Two Tomorrows assurance statement PricewaterhouseCoopers assurance statement Holcim response Communication on progress Methodology Two Tomorrows assurance statement PricewaterhouseCoopers assurance statement Holcim response Communication on progress
33Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
Two Tomorrows assurance statement
Independent Assurance Statement
Scope and objectivesTwo Tomorrows (Europe) Limited has undertaken independent assurance of the Holcim Corporate Sustainable Development Report (CSDR) 2009. The assurance process was conducted in accordance with AA1000AS (2008). We were engaged to provide Type 1 assurance, which covers evaluation of adherence to the AA1000APS (2008) principles of inclusivity, materiality and responsiveness (the Principles). The scope of our work also included an evaluation of Holcim’s reporting against the Cement Sustainability Initiative Commitments.
We undertook no checking of sustainability performance data and consequently offer no assurance over performance data or associated claims included in the report. Any claims relating to financial information contained within the report are excluded from the scope of this assurance process. The scope of our work did not include a review of the report against the Global Reporting Initiative (GRI) Sustainability reporting Guidelines; confirmation of the Application Level achieved by this report was made by GRI. For further information on “the responsibilities of the Executive Committee of Holcim and the assurance providers” and “the basis of our opinion”, and additional observations, please see the full version of this assurance statement available on www.holcim.com/sustainable
FindingsWe reviewed and provided feedback on drafts of the report and where necessary changes were made. The level of assurance is moderate as defined by the scope and methodology described in the full version of this assurance statement. We found that the report achieves a good level of alignment with the disclosures expected through the Cement Sustainability Initiative Commitments.
Observations Without affecting our assurance opinion we also provide the following observations.
Inclusivity concerns the participation of stakeholders in developing and achieving an accountable and strategic response to sustainability.• Holcim maintains a wide range of mechanisms for involving
stakeholders in the development of Holcim’s response to the challenges of sustainability, at both an international and national level. Holcim has introduced new ways of measuring progress toward biodiversity objectives, and in future we recommend that Holcim should report in more detail on the outcome of these activities.
• In our statement for the Holcim CSDR 2007, we recommended that future reports should seek to further illustrate how engaging with customers on Holcim’s development of products with greater eco-efficiency is being achieved. Whilst the report does include examples of products with greater eco-efficiency, it is difficult to appreciate the significance of these products in the context of sales volumes across the entire portfolio. Future reports would be enhanced through provision of a vision for the future of products with greater eco-efficiency. We also recommend that Holcim should introduce reporting on additional measures to support claims relating to reductions in embedded product carbon.
Material issues are those which are necessary for stakeholders to make informed judgments concerning Holcim and its impacts.• In our opinion the report includes information on Holcim’s
main sustainable development issues and should enable global stakeholders to make informed judgments. We consider that the level of detail and balance of information provided on the highest materiality issues is appropriate at Group level.
• For future reports, we recommend that Holcim should include additional analysis on the financial implications of its sustainability programme. Examples of relevant elements could include the net costs and savings from atmospheric emission reduction activities, and the predicted financial and operational implications for the business of emissions trading schemes, as proposed at the time. Future reports should also make clear Holcim’s involvement in any CDM projects and carbon offsets on a consolidated global basis, in terms of financial investment and carbon reductions.
• We recommend that future reports should provide an overview of which Group companies have affordable housing programmes in place, the stage of evolution of these programmes, and the numbers of people benefiting from these programmes. We recommend that information should also be provided on the status of discussions with key stakeholders associated with these programmes, on common challenges such as land ownership, local skills in construction, and availability of micro-finance.
Responsiveness concerns the extent to which an organisation responds to stakeholder issues.• From our observations we can confirm that the outputs of the
Stakeholder Report Review Panel have received full consideration, and many of the suggestions generated through this process have resulted in positive improvements to the CSDR.
• In our statement for the Holcim CSDR 2007, we recommended that Holcim should extend assurance processes to priority indicators within the CSR and environmental data sets, beyond the existing assurance of CO2 data. Assurance processes for the CSDR 2009 have been extended to include safety performance data. For the next CSDR, we recommend that key performance indicators from the CSR data sets and other specific environmental impact areas should be included in the scope of assurance activities.
• The CSDR includes new performance targets linked to the Holcim Operational Roadmap. Building on from feedback from the Stakeholder Report Review Panel, we recommend that Holcim should consider setting a new ‘impact or outcome oriented’ performance target relating to affordable housing, as part of Holcim’s vision and leadership for sustainability in its sector.
May, 2010Two Tomorrows (Europe) LimitedLondon
Jon Woodhead Thomas KrickGroup Director Senior Consultant
Methodology Two Tomorrows assurance statement PricewaterhouseCoopers assurance statement Holcim response Communication on progress
34
PricewaterhouseCoopers assurance statement
Independent Assurance Report on the carbon dioxide emissions
and occupational health and safety data disclosed in the Corporate
Sustainable Development Report 2009 of Holcim Ltd, Rapperswil-Jona.
To the Executive Committee of Holcim Ltd, Rapperswil-Jona (‘Holcim’):
We have performed assurance procedures to provide assurance on the following aspects of the carbon dioxide (‘CO2’) emissions and occupational health and safety (‘OH&S’) data disclosed in Holcim’s Corporate Sustainable Development Report 2009.
Subject matterData and information disclosed in the Corporate Sustainable Development Report of Holcim and its consolidated subsidiaries, for the period January 1, 2008 to December 31, 2009 on the following aspects:• The application of the WBCSD Cement Sustainability Initiative
(CSI) Cement CO2 Protocol, the WBCSD guidelines ‘CSI Safety in the Cement Industry: Guidelines for measuring and reporting’ and Holcim internal CO2 emissions and OH&S data reporting guidelines to the CO2 emissions and OH&S reporting;
• The internal reporting system and procedures, including the control environment, to collect and aggregate CO2 emissions and OH&S data;
• The CO2 emissions data in the tables in the section Environmental Performance on page 27 and the OH&S data (Fatalities & LTIFR) in the tables in the section Social Performance on page 30 of the Corporate Sustainable Development Report 2009.
Criteria• The WBCSD Cement Sustainability Initiative (CSI) Cement CO2
Protocol: CO2 Accounting and Reporting Standard for the Cement Industry, June 2005;
• The WBCSD guidelines ‘CSI Safety in the Cement Industry: Guidelines for measuring and reporting’, updated October 2008 (Version 3.0);
• The Holcim internal CO2 emissions and OH&S data reporting guidelines;
• The defined procedures by which the CO2 emissions and OH&S data are gathered, collated and aggregated internally as part of the data management of Holcim; and
• The principles summarized in the section “Methodology and assurance” on page 32 of the Corporate Sustainable Development Report which define the scope of the reporting.
Responsibility and MethodologyThe accuracy and completeness of CO2 emissions and OH&S data are subject to inherent limitations given their nature and methods for determining, calculating and estimating such data. Our assurance report should therefore be read in connection with Holcim’s internal guidelines, definitions and procedures on the reporting of its CO2 and OH&S performance.
The Holcim Executive Committee is responsible for both the subject matter and the criteria. Our responsibility is to provide a conclusion on the subject matter based on our assurance procedures in accordance with the International Standard on Assurance Engagements (ISAE) 3000.
Main Assurance ProceduresOur assurance procedures included the following work:• Evaluation of the application of external and internal reporting
guidelines. Reviewing and assessing the application of the external WBCSD CSI Cement CO2 Protocol, the WBCSD CSI Safety measuring and reporting guidelines and the Holcim internal CO2 emissions and OH&S data guidelines;
• Site visits. Visiting selected plants of Holcim in France, Belgium, Germany, Brazil, USA, Philippines and India. The selection was based on quantitative and qualitative criteria;
Interviewing personnel responsible for internal reporting and data collection at the plants we visited and at the country Head Office level;
• Assessment of the performance indicators. Performing tests on a sample basis of evidence supporting the CO2 emissions and OH&S related data (fuel consumption, fuel net calorific values, clinker production, calcination/emissions factor, bypass dust and CKD, clinker produced/bought/sold and clinker/cement substitutes, fatalities, injuries, direct/indirect employees, days lost, hours worked) relative to completeness, accuracy, adequacy and consistency;
• Review of the documentation. Reviewing the relevant documentation on a sample basis, including management and reporting structures and documentation;
• Assessment of the processes and data consolidation. Reviewing the appropriateness of the management and
reporting processes for CO2 and OH&S reporting; and Assessing the consolidation process of data at the group level.
ConclusionsIn our opinion• The external WBCSD CSI Cement CO2 Protocol and WBCSD CSI
Safety measuring and reporting guidelines are applied properly;• The internal CO2 emissions and OH&S data reporting guidelines
are applied properly;• The internal reporting system and procedures to collect and
aggregate CO2 emission and OH&S data are functioning as designed and provide an appropriate basis for its disclosure.
Based on our work described in this report, nothing has come to our attention that causes us to believe that the data and information mentioned in the subject matter and disclosed in the Corporate Sustainable Development Report 2009 of Holcim does not give a fair picture of Holcim’s performance in the area of CO2 emissions and OH&S.
Zurich, March 19, 2010PricewaterhouseCoopers AG
Markus Nöthiger Stephan Hirschi
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceMethodology Two Tomorrows assurance statement PricewaterhouseCoopers assurance statement Holcim response Communication on progress Methodology Two Tomorrows assurance statement PricewaterhouseCoopers assurance statement Holcim response Communication on progress
35Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assurance
Holcim response
We have considered the contents of the independent
assurance statements from the assurance providers
and the feedback from the External Report Review Panel
received during the preparation of the report.
We are encouraged where our performance and
reporting is considered appropriate, and we have taken
note of their recommendations for improvement. Our
response to their observations against the pillars of the
AA1000 assurance standard is as follows:
Inclusivity
We are grateful to the External Report Review Panel
for their valuable inputs and their generally positive
feedback on the draft report. We have documented their
recommendations and where possible and appropriate,
adjusted the draft report to reflect these. We will take
note of the recommendations for future website updates
as well as when deciding the structure of future reports.
Following the recommendation of the assurers to in
the future provide more detail on the outcome of the
activities of the IUCN expert panel, we will ensure that
the biodiversity pages on our SD website are upgraded to
reflect the activities of the panel and the implementation
of programs resulting from their recommendations.
We take note of the recommendation to clarify the role
and economic impact of eco-efficient products and will
consider this for future reports. The information in this
SD report is complemented by further information in the
Annual Report in the innovation section on pages 30 to 33.
Materiality
We are aware of the expectation for Holcim to report an
analysis on the financial implications of its sustainability
program, including the possible financial implications
of current and future carbon trading schemes. This will
be extremely difficult to do in the current uncertain
situation where there is not yet clarity on what
mechanisms may be employed. It should also be taken
into account that Holcim is a geographically diverse
Group and it would not be representative or inclusive to
only report on, for example, the possible implications of
the European Emissions Trading Scheme. As more clarity
on global carbon trading schemes emerges, we will
address this issue in more detail.
Responsiveness
We note the recommendation to extend assurance
to further data. We will review our assurance strategy
prior to future reports, bearing in mind not only this
recommendation, but also trends in the sector, the
value it adds to stakeholders and the company and our
commitments to the Cement Sustainability Initiative.
We further undertake to systematically update and
increase the number of case studies of SD related
activities available on our website.
We note the recommendation by several members of
the External Report Review Panel that we set targets
to reduce absolute CO2 emissions. As concrete is an
indispensable building material vitally necessary
for emerging economies to develop infrastructure,
demand for the product will increase. In the absence
of technological breakthroughs in the field of carbon
sequestration and carbon capture and storage, targets
to reduce absolute emissions are not realistic at this
stage. We remain committed to operating as efficiently
as possible and have announced, in this report, a new
carbon intensity target.
Methodology Two Tomorrows assurance statement PricewaterhouseCoopers assurance statement Holcim response Communication on progress
36
Global Reporting Initiative (GRI)
This print report, with additional information on our
website, is aligned with the Global Reporting Initiative
(GRI) G3 Sustainability Reporting Guidelines, at an
application level of A+. To locate the elements and
information contained within the guidelines, including
disclosures on management approach to economic,
environmental and social aspects, use the GRI index
at www.holcim.com/sustainable
UN Global Compact (UNGC)
With our integrated approach to sustainable
development, Holcim aims at embracing the UNGC
principles. We strive to implement the 10 principles
of the Compact and to use it as a basis for advancing
responsible corporate citizenship. At the same time,
the Compact provides Holcim with the opportunity to
further push our own ongoing programs and processes
in the areas of human rights, labor standards, the
environment and anti-corruption.
Holcim, along with 580 other organizations from over
50 countries, is an Organizational Stakeholder of the GRI
and we are a member of the GRI Stakeholder Council.
To learn more about the Organizational Stakeholder role
in the GRI, go to www.globalreporting.org/OS
For a detailed explanation of the GRI indicators, visit
www.globalreporting.org
Holcim is involved in the expert group on “Responsible
Business and Investment in conflict-affected and
high-risk areas” as well as in the “supra-environmental”
stewardship strategy group.
Our annual communications on progress (COP) to the
UNGC outlines Holcim’s continued commitment to
the Compact’s philosophy, intent and principles. This
latest document highlights key actions implemented
in 2009 against the Compact’s 10 principles as well as
confirming our sustainability priorities and performance
targets. Review the COP at www.holcim.com/sustainable
Communication on progress
G3 ProfileDisclosures
G3 Management Approach
Disclosures
G3 PerformanceIndicators &
Sector SupplementPerformance Indicators
ReportApplication Level C B AC B A+ + +
Report on:1.12.1 - 2.103.1 - 3.8, 3.10 - 3.124.1 - 4.4, 4.14 - 4.15
Not Required
Report on a minimum of 10 Performance Indicators, including at least one from each of: Economic, Social and Environmental.
Report on all criteria listed for Level C plus:1.23.9, 3.134.5 - 4.13, 4.16 - 4.17
Management Approach Disclosures for eachIndicator Category
Report on a minimum of 20 Performance Indicators, at least one from each of Economic, Environmental, Human rights, Labor, Society, Product Reponsibility.
Report on each core G3 and Sector Supplement* Indicator with due regard to the Materiality Principle by either: a) reporting on the Indicator or b) explaining the reason for its omission.
Management Approach Disclosures for eachIndicator Category
*Sector supplement in final version
Same as requirement for Level B
Chairman and CEO statement Vision and strategy Priorities Performance data Methodology and assuranceMethodology Two Tomorrows assurance statement PricewaterhouseCoopers assurance statement Holcim response Communication on progress
Holcim is one of the world’s leading suppliers of cement and aggregates (crushed stone, gravel and sand), as well as further activities such as ready-mix concrete and asphalt including services. The Group has majority and minority holdings in around 70 countries across all continents.