Corporate Sustainable Development Report 2011: 100 Years of Strength. Performance. Passion
Corporate Sustainable Development Report 2011: 100 Years of Strength. Performance. Passion
Corporate Sustainable Development Report 2011: 100 Years of Strength. Performance. Passion
100
1921 1922 1923 1924 1925 1926 1927 1928
1938 1939 1940 1941 1942 1943 1944 1945
1955 1956 1957 1958 1959 1960 1961 1962
1972 1973 1974 1975 1976 1977 1978 1979
Holcim’s original cement plant in
Holderbank in the Swiss canton
of Aargau.
1989 1990 1991 1992 1993 1994 1995 1996 The new Ste. Genevieve plant of Holcim US in Missouri.
Introduction
Performance against targets 2
Chairman’s statement 3
CEO interview 4
Vision and strategy 6
Q “Delivering value to your stakeholders is part of your mission. How do
you achieve results while operating with sustainability and integrity?
Are incentives for sustainable practices integrated into performance
compensation plans?”
SD challenges 10
Sustainable solutions and construction 10
Q “What is Holcim’s contribution to improve efficiencies in the building
materials industry?”
Our people 22
Q “There
have been complaints from unions regarding labor
issues. What kind of measures is Holcim taking to prevent
unfair labor practices?”
Social commitment 28
Q “ How is Holcim’s business model able to improve the quality of life
of the poor?”
Performance data 30
Key to symbols:
CR see page in this report Contact us at Holcim
Sustainable Development Corporate Communications Investor Relations
ARA see our Annual Report
Ruksana Mirza Roland Walker Bernhard A. Fuchs
see graph data Phone +41 58 858 54 61 Phone +41 58 858 87 10 Phone +41 58 858 87 87
Fax +41 58 858 54 59 Fax +41 58 858 87 19 Fax +41 58 858 80 09
www. visit www.holcim.com/
sustainable.development@holcim.com communications@holcim.com investor.relations@holcim.com
sustainable for more
information
GRI reference to GRI indicator
Strategy Integration of SD materiality review in existing The SD materiality review has been integrated into the 2008 Achieved
business risk management (BRM) system for use existing BRM system and recommendations provided to and ongoing
by Group companies. Group companies. Work is continuing with integrating SD
issues fully into the standard BRM system. See CR page 9
Management ISO 14001 implemented by all cement plants This is a rolling target as newly acquired Group companies 2004 Cement 93%
systems and alternative fuels and raw materials (AFR) require time to implement management systems. AFR 95%
pre-treatment platforms. See CR page 31
Environmental performance
Climate and Reduce global average specific net CO2 emissions See CR pages 14 and 9 2015 21.8%
energy (kg CO2/tonne cementitious materials) by 25%,
using 1990 as reference.
Environmental Emissions monitoring and reporting The figure reported reflects the percentage of plants with 2004 88%
impacts standard implemented. continuous emission monitoring in place and includes our
operations in India. This is an ongoing target as newly acquired
plants and companies require time to implement systems.
Reduce global average specific nitrogen oxides, The specific SO2 emission target was exceeded in 2009. Due 2012 NOx – 21%
sulfur dioxide and dust emissions (g pollutant/ to the global economic crisis, efforts to reduce dust and NOx Dust – 29%
tonne cementitious materials) by 20%, using 2004 emissions focused on implementing primary measures. The SO2 – 65%
as reference. target date was thus revised to 2012 for dust and 2013 for NOx.
See CR pages 14 and 9
Quarry rehabilitation plans. This is an ongoing target as newly acquired plants and 2006 Cement
companies require time to develop and implement plans. – 100%
See CR page 33 Aggregates
– 93%
Biodiversity: 80% of sensitive sites to have The definition of sensitive sites was developed as part of a 2013 40%
biodiversity action plans. biodiversity management system developed in conjunction
with IUCN. The Biodiversity Management System was launched
in late 2010. See CR page 18
PCB equipment elimination. Electrical equipment containing PCB to be eliminated from See progress
the cement sector (cement and grinding plants) by the end of
2010, and for the non-cement sector (aggregates, ready mix
and asphalt) by 2011. By the end of 2011, only one cement plant
and three non-cement plants were not PCB free.
Social performance
Community Every Group company to have a community See CR page 29 2012 24%
involvement engagement plan covering all sites.
OH&S Reduce lost-time injury frequency rate by at least This objective has been achieved. We now plan to further 2009 See progress
30% per annum until it is under 2, using 2004 as reduce the rate to below 1.0 for 2013.
reference, from 2006 to 2009.
OH&S fatality prevention elements implemented. This target has been extended to 2013. The implementation 2013 See progress
standards will be reviewed and implementation assessed
starting in 2012.
OH&S contractor safety management Significant progress has been made. The target date remains 2012 See progress
implemented. 2012, after which implementation will be assessed.
We have already met a number of targets and details of these are available at www.holcim.com/sustainable.
Chairman’s statement
assurance
Introduction
Current global events are bringing an
increased obligation on companies to
examine their economic, social and
environmental sustainability.
The past two years have provided many challenges In January 2012, we issued a Directive on the use of
for Holcim, but also many opportunities. Through the contract workers. The Directive formalizes the obligation
dedication, hard work and innovative qualities of our of Group companies to address all national regulations,
people, we have not just weathered the economic but also the core conventions of the International Labor
downturn, but have emerged leaner, stronger and more Organization and the requirements of the UN Global
focused. We have also experienced a number of changes Compact, to which we are committed.
in our leadership, but the commitment to sustainable
development remains resolute. The report again underlines the importance of our Code
of Conduct which is binding on all employees and also
In February 2012, Markus Akermann retired as CEO of introduces the new Anti Bribery and Corruption Directive.
Holcim, and was replaced by Bernard Fontana. Under
the leadership of Markus, Holcim established itself as The assurance of data for this report has been extended
a leader in the field of sustainable development and and now covers more environmental and social
played a significant role in driving the sustainability data. Details of this assurance can be found in the
agenda of the entire sector forward. He leaves a rich “Methodology” section on CR page 36. As in previous
legacy. There is no doubt that Bernard Fontana will reports, we have asked for the inputs of an External
ensure that this legacy is built on, and he has already Report Review Panel, consisting of a broad range of
made clear his determination to make a real difference, stakeholder groups. The panel provided inputs into the
especially in terms of Occupational Health and Safety. content of the report and has also provided a statement
with recommendations and observations which can be
This report details our ongoing activities in sustainable found on CR page 38. We would like to thank the panel
development and discloses data on a number of for their time and effort. It is truly appreciated.
performance indicators. The report also features
a number of important achievements. The water We also thank our employees for living up to our
management system we committed to implement in commitment to sustainable development. Our success
our previous report has been developed and is being depends on their efforts and dedication.
implemented throughout the Group. Our continuing
partnership with the IUCN has yielded a fit for purpose
Biodiversity Management System and work continues,
in collaboration with the IUCN, on implementing the
system throughout the Group. Rolf Soiron
Chairman of the Board of Directors
CEO interview
assurance
Introduction
Q In your view, what have been the most significant has galvanized the thought leaders in the industry
achievements of the company to date? Where has into action. The Foundation is building a very tangible
Holcim left its mark? legacy with numerous prize winning concepts now
A It is clear that the company has worked hard to ensure being built and becoming reality.
that SD is integrated into the business and into our
thinking. This is reflected not only in the way the Another important achievement has been the
business is structured with high level committees extremely effective and fruitful global partnerships
ensuring visible leadership, but also the measures with IGOs and NGOs that we have been involved
taken to ensure that SD is embedded in the company in. The results of these partnerships are impressive
culture. This is reflected in Holcim’s fundamental and have made a real difference. The co-processing
strategy with SD related disciplines as core elements in guidelines developed in conjunction with the GIZ and
the “strategy house”. SD related targets are entrenched the Biodiversity Management System developed in
in operational roadmaps and performance against conjunction with IUCN are good examples.
these targets is monitored and reported.
Q Where do you think the company could have made
Holcim’s people are proud of our achievements in SD more progress?
and are amongst our most demanding stakeholders. A Whilst we have made significant progress with
This pride, and a determination to make a difference, Occupational Health and Safety and have seen the lost
is an important component of the value proposition time injury rate and the number of fatalities in areas
that we offer employees. In the past decade Holcim under our direct control decline, there is still much
has doubled in size and expanded its operations into work to be done to achieve our long term vision of
every continent. Much of this expansion was due to “zero harm to people”.
acquisitions of companies with very different mindsets
and cultures. The way that Holcim’s people from very Holcim was a pioneer of co-processing and the use of
different backgrounds have embraced our SD culture alternative fuels, especially waste derived fuels, in our
is clearly evident. kilns. The benefits of co-processing are beyond dispute.
Whilst we have made significant progress in Europe
An important achievement has been the with thermal substitution rates (TSR) as high as 68%,
establishment of the Holcim Foundation for we have clear room for improvement in other regions,
Sustainable Construction. Through its activities, notably Asia Pacific. Improving the TSR will lower our
the Foundation has played a significant role in the environmental impact, conserve natural resources
promotion of sustainable construction techniques and and make us more competitive.
Introduction
Q Why is a commitment to SD so important to Holcim? Q How do you intend to drive sustainable development
A The long term nature of the business makes a forward? What would you like to achieve in the years
commitment to SD fundamental. Not only does the to come?
company have a significant environmental footprint, A I have made it very clear that my single most
which society expects us to minimize, but we also important priority in this area is Occupational Health
have a presence in our host communities for decades. and Safety. While I recognize and applaud the progress
It is thus vital that we address all elements of the that Holcim has made in this area, I am convinced
triple bottom line and have strong relationships with we can improve even further. A safe and healthy
communities and other stakeholder groups. A strong workplace is a prerequisite for motivated, productive
performance in SD also enables us to attract and and committed people. I expect all Holcim managers
retain passionate and committed people who are key to show leadership for their performance in this
to our continued success. area. My very first action as new CEO was to take
management responsibility for the OH&S team.
Q Sustainability and profits – can they really go I expect every single person in the organization to
together? Isn’t there a contradiction? play their part and to be responsible for their own
A They have to go together. In my view it is not a case of safety and the safety of their colleagues.
either profits or sustainability. The two can and should
be interlinked. We have a collective responsibility It is important that Holcim uses its leadership position
to manage the limited resources of the planet. We in SD to raise the bar in the sector. We will strive
simply have to do more with fewer resources. This to maintain our leadership in this area and we will
is a challenge, but provides opportunities too. As continue to engage with other players and collaborate
an example, meeting the challenges we face as an on sustainability issues through fora such as the
energy intensive industry in innovative ways can not Cement Sustainability Initiative.
only lessen our energy footprint and provide energy
security but can lower production costs and ensure a I expect Holcim’s people to “live” SD. If each of our
competitive advantage. 80,000 employees takes ownership and responsibility
for their work related and personal impacts, we can
SD initiatives and activities must pay their way. SD is make a real difference, not just to the company, but
not about how we spend our money; it is integral to to the environment and the communities which host
the way we make our money. That is the only way it us. As an initial step, volunteering activities are taking
can be truly sustainable. Ultimately, we are in business place across the Holcim world as part of our centennial
to provide products and solutions to our customers. celebrations. This will just be the start of the ongoing
We need to ensure that the solutions we provide are employee involvement in SD activities.
superior in quality, competitive in price and have the
lowest possible environmental and social footprint.
Bernard Fontana
Chief Executive Officer
Methodology and
We have earned our reputation by delivering commercially Our Code of Conduct guides the way we do business.
superior solutions for our customers, making profits and Launched in 2004, it underpins our mission statement
providing a return to our shareholders. We create value for and sets out the behavior we expect from every
our employees, communities and for society at large, and Holcim employee.
we know our success depends on operating sustainably
and with integrity. Our Operational Roadmap sets targets for our ambitions
and includes several sustainable development
performance indicators. The remuneration of Holcim’s
executive committee (Exco) depends on how we perform
against these indicators.
Management
Better Cost
Innovation
Permanent Marketing
Excellence
Human Resources
Responsibility (CSR)
Corporate Social
Cement,
aggregates,
concrete
and other
Goods and construction
services materials
Payments HOLCIM Sales
SUPPLIERS CUSTOMERS
Input costs (CHF 12.6 billion) Retained in business (CHF -0.03 billion) and depreciation (CHF 2.4 billion) Net sales (CHF 20.7 billion)
Methodology and
assurance
For more
information
visit www.
holcim.com/
sustainable
Group company level (see ARA page 42). We carried out Low Medium High
Corporate governance
our first sustainable development materiality review to and business ethics
Economic
identify the issues of importance to our business and our Customer and
supplier relations
stakeholders in 2007. Economic impact
our last materiality review in 2010: Holcim view – result of Holcim business risk management process.
External stakeholder view – result of interviews with a range of
external stakeholders.
• “Corporate Governance” has been amended to
View from Holcim and external stakeholders coincide.
“Corporate Governance and Business Ethics” to reflect
Range of external stakeholder views.
an increased importance of business ethics Represents a clear difference between internal and external view.
• innovation has been added to eco-efficient products Low: Low level of concern to stakeholders and low level of current
impact on Holcim.
• the importance of “water” as an issue to Holcim
High: High level of concern to stakeholders and high level of current
has increased or potential impact on Holcim.
• the matrix now reflects the difference between The grey shaded areas are impacts. Our mitigation activities in
these areas may also provide solutions.
impacts and solutions. The blue shaded areas represent solutions to SD related issues.
Our priorities
Based on our 2011 materiality review, our current
sustainable development priorities are:
assurance
Our Group company in the UK, Aggregate Industries, Holcim has a key role to play in promoting and developing
is also reducing its impacts on virgin resources by sustainable construction techniques and technology. The
producing and selling concrete products containing up Holcim Foundation for Sustainable Construction is one
to 62% recycled content. The building materials industry way we are meeting our commitment.
value chain is complex, involving many different
interests and issues. Demand for building materials Providing sustainable solutions
continues to grow against a background of population Holcim demonstrates innovation by creating value
growth, urbanization and developing economies. The through new solutions that meet the needs of our
challenge for us is to meet this demand while reducing customers and stakeholders in an increasingly fast-
our environmental footprint over a construction’s entire changing business environment. We aim to lead the
lifecycle. We believe that environmental, economic and industry in our innovative approach, providing customer
social considerations must be a top priority for Holcim solutions that achieve sustainability and cost efficiency.
and for others all the way along the building materials
value chain.
Sustainable solutions
Performance data
and construction
Methodology and
assurance
We commit to:
• meet customer needs exceptionally well along the Key data See CR pages 30–35 for full data tables.
Visit www. holcim.com/sustainable
construction value chain Sustainable products and
for more information.
sustainable construction
• drive sustainability along the whole building lifecycle
• maximize efficiency in “cost to serve” along the whole
Cement types produced by Holcim* in 2011 GRI EN3
supply chain.
Slag cement 10%
assurance
The production
process for our Holcim Optimo, Switzerland
new “Optimo” To be successful, our sustainable products must
range generates
achieve a quality that creates customer interest
between 10%
and demand. In 2010, Holcim Switzerland
and 19% less
CO2 during launched the “Optimo” range. Holcim Optimo,
production than made from fired shale, is a high-quality cement
traditional clinker. with a reduced environmental footprint. The
fired shale is mixed with additives and added to
clinker, gypsum and limestone. It requires a low
temperature and it contains organic material, so
it burns without additional fuel. The production
process for Optimo requires less energy and
generates between 10% and 19% less CO2 than
the production of traditional clinker.
through innovation
Performance data
Methodology and
Creating value
assurance
Our Hermosillo
Hermosillo innovations, Mexico plant in Mexico,
Our new Hermosillo plant in Mexico uses the latest which is a model
of sustainable
generation of technologies to optimize thermal energy,
construction.
reduce electrical energy and reduce water consumption
during production. The plant’s office building is a
model of sustainable construction. Non-conventional
thermal and photovoltaic systems provide energy used
for lighting, heating and air conditioning. Daylight is
channeled to the center of the building and water is
re-circulated for cooling. All grey water is treated in a
sanitizing pond and then used for irrigation. We are also
planning to re-plant the area with indigenous species
to restore biodiversity, mitigating the effects of the
plant’s construction.
Holcim Italy is supplying high-performance, sustainable ready-mix concrete products, together with technical
and logistics services, to the main contractors of the project. All our products have been designed for
sustainability, using recycled aggregates, low-clinker cements and low-heat concretes. This has helped the project
to achieve LEED credits for using recycled materials, limiting the use of natural resources, and regionally sourcing
quarried and manufactured materials.
Due to the complexity of the project and the specific product needs of contractors, Holcim Italy had to provide
an integrated and customized solution for the Porta Nuova project. We provided our customers with high-quality
services, technical facilities, and certification support, as well as developing special sustainable products. To meet
project specifications and the customer’s requirements, we designed high-performance, specific-mix concretes
with high strength, low heat of hydration, and high workability even after long-distance vertical pumping.
assurance
Today, the debate has broadened to reflect that fuels with waste-derived fuels wherever feasible. To
the greenhouse gas emissions associated with the foster innovation in this regard, Holcim has established
production of cement are only a small fraction of the a special energy fund which is described in the case
emissions in the total lifecycle of a building, and Holcim study on CR page 16.
welcomes this development. We are collaborating with
others in the sector through the Cement Sustainability CO2 efficiency
Initiative to drive efficiencies in the industry, including Over 95% of the CO2 emissions from cement come
the development of Environmental Product Declaration from the manufacturing of clinker, one of its key
for cement and concrete. components. About 60% of these emissions are
from the limestone used to make clinker and about
Apart from a willingness to play our part in contributing 40% are from the burning of fossil fuels. The scope for
to global greenhouse gas emission reductions, other using less energy to produce clinker is limited by the
key drivers for Holcim are energy security and cost available technology. By reducing the amount of clinker
reduction. With increasing energy costs and concerns we use per ton of cement, we can significantly lower
over energy availability in the future, it is clearly in the carbon intensity of the cement. We can also
Holcim’s interest to drive energy efficiency in our reduce emissions by using greener sources of
production processes and to substitute expensive fossil energy to heat the kilns.
613
600 618 608 -20
in our cement in the industry, with an average 71% 595 599
591
550 -25
clinker content (the clinker factor). We have increased
500 -30
the energy efficiency of our clinker production process, 1990 ... 2000 ... 2005 ... 2009 2010 2011 ... 2015
reducing thermal energy consumption from over
4,500 MJ per tonne of clinker in 1990, to just 3,510 MJ Specific gross CO2 emissions Specific net CO2 emissions
% improvement trendline
per tonne of clinker produced in 2011, equivalent to a
Sector average emissions
22% reduction. Since 1990, we have reduced the CO2 (WBCSD GNR database)
emissions per tonne of cement produced by 21.8%.
Comprehensive details of Holcim’s CO2 performance Absolute CO2 emissions GRI EN16
can be found in our annual submissions to the Carbon Million tonnes CO2
102.0
Disclosure Project at www. cdproject.net 100 97.3 97.2
99.1
94.8 94.3
92.6
89.9
90
Emissions trading and regulation
80.1
Holcim operates around the world and is subject to 80 78.2
Due to the initial allocation of allowances being Thermal substitution rate by alternative fuels GRI EN5
followed by a decrease of absolute emissions resulting % of thermal energy from alternative fuels
12.0 12.0 12.2
from efficiency improvements and a decrease of cement 12
10.5
production due to the economic crisis, Holcim had 10 9.0
assurance
Waste exhaust
heat from the Holcim Energy Fund
neighboring In 2010, we set up a special fund as part of our
cement kiln is
comprehensive energy strategy which provides up
used to dry the
to CHF 100 million every year to support energy
crushed limestone
aggregate used efficiency projects. The fund is partly financed by
in dry mortar the sale of excess CO2 emissions certificates.
products at our
Group company
Projects for electricity generation by means of
in Thailand.
waste heat recovery, wind power and alternative
fuels in place of fossil heat carriers have already
been approved. With these projects alone,
Holcim will save around 200,000 tonnes of
CO2 annually, approximately as much as the
annual CO2 emissions of a community of
30,000 inhabitants.
We are generating
Renewable energy renewable energy
At Holcim we currently generate about 25% of our through our wind
farms in India.
electrical energy needs from our own captive power
plants. Of the 25%, around 6.3% is generated from
renewable energy sources, such as waste heat recovery,
wind, hydroelectric power and biomass.
Further projects were approved in 2011 in Slovakia and India and are in the engineering phase. These projects
will be completed in 2013 and will generate approximately 8.1 MW net electrical power.
All these projects, together with the WHR power plant in operation since 1992 at the Saraburi plant, will
generate around 60 MW of CO2-free electrical power.
Holcim is working to further exploit WHR potential by evaluating new technologies to increase power
generation efficiency at low temperatures, and projects are currently being evaluated by at least seven
Holcim Group companies.
assurance
600
partnership with IUCN in implementing the BMS will 600
20
Water Program. Approved by the Holcim Executive
15
10 8
system comprises three elements:
0
2010 2011
• a Holcim Water Directive – issued under the Holcim
Environmental Policy to set general requirements to
Cement Aggregates
manage water in an efficient and responsible way Number of biodiversity-sensitive sites Number of biodiversity-sensitive sites
across all our operations Number of biodiversity-sensitive Number of biodiversity-sensitive
• a Holcim Water Measurement Protocol – a mandatory sites with Biodiversity Action Plans sites with Biodiversity Action Plans
in place in place
tool to provide reliable and accurate water
measurements across all Group companies
• a Holcim Water Risk Assessment Methodology –
setting consistent criteria and procedures to carry out
water-related risk assessment and risk mapping and
to determine the level of monitoring required at our
operational sites.
assurance
We enhance
biodiversity Conserving biodiversity in Switzerland
at our sites by In Switzerland, the closed Testori quarry at the Eclepens plant
protecting rare
contains rare habitats and species and is one of the best spots in
plant species
the region for dry meadows. When the plant was applying for an
such as the
Lizard Orchid extension to its existing Mormont quarry in 1999, the Company
in Switzerland. committed to improve biodiversity at Testori. The site had been
closed for many years and this was an opportunity to create rare
and important habitats for the area.
Enhancing biodiversity
SD challenges
Performance data
Methodology and
assurance
worldwide
Certified positive water balance in India
With increasing global pressure on the available water resources, there is a strong need
to step up conservation efforts. Our Group company in India, Ambuja Cements, seeks to
secure water supply not only for itself but also for the communities around its locations.
The Company set out to intensify its water conservation efforts over two decades ago.
In the course of time it has become not only “water neutral,” but “water-positive.” Ambuja
Cements is the first cement company in India to be certified as being water positive
by an external third-party verifier.
The terms “water-neutral” and “water-positive” refer to the balance between the amount
of water withdrawn by the Company and the amount of fresh ground water recharge
created by rain water harvesting in its plants, colonies, and nearby villages and through
the use of spent quarries as water reservoirs.
After a comprehensive study covering all its facilities (including operating plants, bulk
Ambuja Cements
cement ports, and offices), mine recharge, as well as structures in the community, it was
CEO and Area
established that in 2011, total harvesting and recharge (credit) was about twice (16,860 Manager for India,
million liters) the Company’s water consumption, or debit (8,389 million liters). The Onne van der
Company was thus water-positive by over 100% as assured by Det Norske Veritas (DNV), Weijde with the
water balance
an independent assurance provider.
certification.
Although the Company’s water conservation initiatives have been in place for a long time,
the third-party data assessment and verification was conducted for the first time, covering
all facilities, in 2011.
Ambuja Cements will continue its efforts to give back to nature and society by increasing
water credits through conservation, water harvesting, and recharge.
Our people
SD challenges
assurance
Our people
management system and, in particular, the embedding of Our desire to be an attractive employer ensures that
the Contractor Safety Directive and the Fatality Prevention our wages match or exceed local industry standards.
Elements have shown encouraging results with a At lowest-paid entry level, our Group companies pay a
reduction of injuries for directly employed personnel. median of 39% above minimum wage.
The number of severe accidents involving directly The global nature of our Group results in a highly
employed personnel continues to decline in line with diverse workforce. Our senior management team has 60
the lost time injury frequency rate, which remains below nationalities represented. Gender diversity remains low
Holcim’s target level. and represents an opportunity for Holcim. In 2011, 12%
of our total workforce were women, with 9% of our top
Despite the ongoing efforts in the year under review, and senior management being female.
26 individuals (2 directly employed and 24 indirectly
employed) lost their lives while working for Holcim. While To foster a culture of mutual respect and trust, we
there is steady improvement in the number of fatalities in engage with elected employee representatives. In 2011,
areas under Holcim’s direct control, accidents with third on average 61% of employees were either represented
parties, particularly traffic accidents, remain a daunting by an independent trade union, took part in collective
challenge and resulted in the recorded deaths of a further bargaining, or both.
27 people. The Board of Directors and the Executive
Committee deeply regret this and will continually strive to Developing our people
achieve the vision of “Zero Harm to People.” Holcim takes the development of its people very
seriously and, despite the global economic crisis, we
Holcim will focus its efforts going forward by continuing have maintained a high level of training to meet
to embed the Fatality Prevention Elements and the our skills development requirements. Holcim strives
Contractor Safety Directive throughout the business. to maintain a work environment in which people
We will start assessing the effectiveness of the feel appreciated, know that they are contributing to
implementation of these directives across all regions the creation of value and have the opportunity for
and businesses. Holcim will further strengthen the professional and personal growth. Group companies
competence of its people in OH&S through intensive reported a total of 1,961,964 hours of training for
training and an improved safety organization. employees (compared to 1,241,160 hours in 2010),
of which 37% was received by non-managerial-
Holcim is fully committed to its vision of “Zero Harm to level employees.
People” and will also continue to work with others in the
sector through the Cement Sustainability Initiative. Engaging with employees
Employee satisfaction is important to Holcim. In the last
A responsible employer two years, 69% of Group companies have conducted
The vital role played by employees in the creation employee engagement or satisfaction surveys. In 97%
of value is recognized and clearly articulated in of these surveys, we have improved or maintained
Holcim’s strategy (see strategy house diagram on employee satisfaction.
CR page 7). The attraction and retention of top-class
people is considered as strategic and is reflected in In 2011, we carried out a Values and Engagement
employment conditions and practices throughout the survey in a number of Group companies and overall
Group. Holcim’s CSR policy states “we value diversity the results were encouraging. As examples, in Spain,
and promote equal opportunities in recruitment, despite extremely challenging market conditions, the
employment, development, and retention.” This includes engagement score was significantly higher than the
non-discrimination in respect of aspects such as gender, Spanish average, placing Holcim Spain just short of the
religion or ethnic origin.
assurance
*D
ata for LTIFR are regrouped to reflect the CSI reporting standards. Direct employees Asia Pacific
include own and subcontracted personnel under direct Holcim supervision. The lost- 1.0 1.5 1.3
time injury frequency rate (LTIFR) is calculated as: Corporate
Number of lost-time injuries 2.7 0 0.7
x 1,000,000
Total number of hours worked and paid Total
2.1 2.0 1.6
Data include all cement, aggregate and ready-mix concrete operations.
Our people
We provide volunteering and development opportunities
that benefit local communities and are an excellent way
for our people to develop their skills and networks.
Holcim Argentina run a program called “Manos Voluntarias.” Employees share their skills with the community
through helping to run training sessions at schools and colleges, and supporting the company-run scholarship
program. Activities include technical training, language classes, a course on writing a CV, and training on
waste management.
Holcim Canada engages in a long-term partnership with “Habitat for Humanity” to provide housing for
less privileged families in the communities around its operations. As well as the satisfaction they gain from
making a difference to communities, Holcim employees benefit from the on-site experience of seeing our
products in use and from networking opportunities. In a related project, Holcim Canada invited three business
partners to join them in a Habitat for Humanity project to provide housing following the earthquakes in Haiti.
One of the drivers for the project was the sizeable Haitian community in Montreal. The invitation to business
partners to join in cemented relationships and demonstrated to customers the good work undertaken by
Holcim Canada, and is fully aligned with the triple bottom line concept of sustainable development.
Holcim Vietnam undertakes volunteering activities including the construction of houses for less privileged
families, the collection of pesticide waste from farmers, and the cleaning of beaches and planting of trees.
Holcim Italy and Holcim Switzerland both undertake “Community Days” in partnership with local NGOs to
benefit the elderly, disabled people, and people with addictions. Our employees get involved in activities such
as gardening, cooking, and helping at sheltered workshops. They benefit from the opportunity to enrich the
lives of others and to interact with their colleagues in a different environment.
assurance
Our leadership
and management Developing future leaders
programs help our People engagement and development, as well as leadership development,
senior managers
are of utmost importance to achieve the high performance targets
to develop the
Holcim has set to continue the sustainable growth of the Group.
skills they need
to achieve our Executive education programs were designed in conjunction with leading
sustainability universities to provide a platform where future leaders could meet with
goals. senior management and Executive Committee members and have an
open discussion on critical issues to challenge both their own thinking
and their core understanding of Holcim’s objectives across a range of
topics. As the triple bottom line (value creation, sustainable environmental
performance and social responsibility) is fully integrated in the Holcim
strategy, sustainable development receives the same attention and
commitment as other topics. Sustainable development case studies and
project work comprise an important element of the program.
stakeholders
Improving health service delivery and the status of women
In India, our Group company Ambuja Cement operates plants in remote areas with insufficient or sometimes
dysfunctional health services. To improve this situation, the Ambuja Cement Foundation started in 2002 to
train local women as community health workers, called Sakhis. The focus of this – now nationwide –
initiative is to improve community health services with an emphasis on prenatal and child health in close
collaboration with government programs. Sakhis consult community members, conduct house visits,
implement household hygiene campaigns and holistic child development programs, inform about available
government services and collaborate with the respective government institutions.
The results after less than ten years of implementation are compelling: child and maternal mortality as well as
home delivery rates have decreased significantly; pregnant women are registered and receive pregnancy-related
services, and family planning as well as HIV prevention methods are known and used. Ties between community
groups and government institutions are strengthened and the local primary health centers have improved their
services. In addition to these outcomes, the status of women in general has risen through the respect for the Sakhis
and their important role in the community. Women increasingly participate in community affairs and are elected
into the community councils.
“Edificando Vidas (Building Lives)”, started in 2008, aims at introducing sustainable construction for
low-income clients in Nicaragua with a pilot program in the range of 400 houses. After the first years of
implementation it became clear that Holcim Nicaragua had to develop a new construction technology –
the Holcim Block – in order to serve this segment. It further proved absolutely crucial to develop models of
progressive housing and to include housing improvements as an option. The project in Nicaragua is supported
by both the Government and the International Development Bank. Capacity building for self construction as
well as for construction-related microenterprise development and community organization must be another
integral component of a successful housing program. “Construyendo Juntos (Building Together)” in Costa Rica
aims at sustainably improving employees’ quality of life through adequate housing. Participating families
are selected based on a socio-economic survey and, in addition to accessing a “home”, participate in capacity-
building modules on education, health and household economy. To develop the master plan and the technical
solution for the 64 housing units of Los Olivos, Holcim Costa Rica collaborated with construction companies
and developers, universities and consultants. Based on previous experiences and learnings from within the
Holcim Group, Holcim Argentina is currently conducting a feasibility study for a large-scale housing project
that integrates technical, financial, capacity-building and community development components. The goal of
the project will be to contribute to decreasing the housing deficit in Argentina through a participatory as well
as environmentally and culturally acceptable housing initiative. In the case of Argentina, the individual house
is not meant to be an end in itself, but an enabling platform for sustainable community development and
income generation.
Social commitment
SD challenges
assurance
We agree with the saying “business cannot thrive where Holcim has also delivered low-income housing solutions
societies fail.” To be truly sustainable, our solutions need in 14 countries, mainly across Latin America and Asia. An
to address all the elements of the triple bottom line – estimated 1,700 families have benefited from the projects
economy, society and environment. That way, we not only we have supported.
make a difference to people’s lives, but we can provide
solutions to a whole new customer base. Strategic community investment
Holcim’s approach to social engagement has always been
Our training programs help to improve the quality strategic, not philanthropic, so it is embedded within
of life of masons in many countries, improving their our core business and it creates value. We prioritize
qualifications and their employability. At the same time, projects that develop low-income housing, support
we are developing a global team of skilled workpeople, microenterprise and provide vocational training.
loyal to the Holcim brand and in a position to stimulate
the building materials sector. In 2011, Holcim Group companies invested CHF 38 million
in community engagement activities, representing over
1% of pre tax profits. Some 9.4 million people benefited
from the projects we supported.
Social commitment
Methodology and
assurance
We encourage Group companies to use our “social risk mapping exercise at corporate level and piloted
engagement scorecard” to determine whether a project human rights assessments in higher risk countries
meets the needs of the communities where it operates to assess our impacts in line with John Ruggie’s
and Holcim’s corporate responsibility objectives. The guiding principles.
scorecard can also be used to measure the effectiveness
of donations and to help determine the viability of We also monitor our human rights performance
proposed projects. In 2011, 65% of Group companies through Holcim’s annual CSR questionnaire. In 2011,
evaluated projects using the scorecard. 43% of Group companies had provided training for
their employees on equal opportunities policies and
Stakeholder engagement and strategic partnerships procedures, and 31% reported that they have run
Close cooperation with local stakeholders is vital for our training on human rights policies and procedures. Also,
business and it helps to build mutual understanding 61% of Group companies reported that they considered
and trust. Holcim engages with stakeholders through human rights in their major investment decisions.
a wide range of forums, including community advisory
panels, formal dialogue sessions, open days, and local
partnerships. We place real importance on developing
effective local relationships, and we have set a target
that all Holcim Group companies will have a formal
community engagement plan in place by 2012. By the end Key data See CR pages 30–35 for full data tables.
Visit www. holcim.com/sustainable
of 2011, 24% of Group companies had met the target. Social commitment
for more information.
Methodology and
Performance data
assurance
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.
† Figures restated to include use of liquid fuels and natural gas which were previously not included.
Methodology and
assurance
Performance data
Methodology and
assurance
Methodology and
assurance
Performance data
Methodology and
assurance
* These reflect fatalities in areas out of our direct control and influence, mainly traffic related accidents on public roads.
Methodology
assurance
Methods of data collection and ready-mix concrete business segments; all data
We collect information from Group companies using from all principal consolidated Group companies are
the following tools: Plant Environmental Profile (PEP) included in this report at 100%.
questionnaire; equipment data and operating statistics
based on annual plant technical reports; corporate Restatement of historical data – Holcim now reports CO2
CO2 inventory according to the WBCSD/WRI Cement and resources use according to Version 3 of the WBCSD/
CO2 Protocol; corporate Occupational Health and WRI Cement CO2 Protocol. All historical data have been
Safety (OH&S) questionnaire; corporate social recalculated according to the updated Protocol, to enable
responsibility questionnaire. comparison of data over time. Historical data are also
restated to reflect changes in consolidation of companies
Our data collection systems enable monitoring of and acquisitions/divestments.
performance at three operational levels: individual
plant performance, Group company and corporate Social performance – Personnel data represent
consolidation of global performance. consolidated data from Holcim Group plants and
companies covering all of the Group’s consolidated
System boundaries operations. OH&S data are collected for all operations
The scope of our reporting is outlined below. via monthly reports and an annual survey, which
is then revalidated by our regular business process
Economic performance – Data included represent system. Data are segregated according to on-site
consolidated data from Holcim Group plants and and off-site (logistics-related) incidents, and cover
companies covering all of the Group’s operations, directly and indirectly employed, third-party service
and are consistent with those reported in the Holcim providers, visitors and others. This is consistent with
Annual Report 2011. the WBCSD CSI Guidelines for Reporting. All other
social performance data are derived from the CSR
Environmental performance – CO2 and energy: the questionnaire, which covers all Group companies,
scope of data collection for CO2 and resources use and are fully consolidated.
includes integrated cement plants, grinding stations
and terminals. Consolidation of data is consistent Reporting cycle
with the WBCSD/WRI Cement CO2 Protocol where Holcim has publicly reported SD performance for the
operational control is used as a criterion. last seven years. A full report is published each second
year (the last in 2009), with data and performance
Where Holcim owns between 20% and 50% of the Group information updated on our website every year.
company and does not have management control, data
are proportionally consolidated; below 20%, the data are External assurance
not reported; all other companies are reported 100%. PwC has undertaken external assurance of our reporting,
including a review of our materiality process and of the
Other environmental data – The Plant Environmental draft report. Full details of the scope of the assurance
Profile (PEP) self-assessment questionnaire is the source which included CO2, OH&S and selected environmental
of performance information and data related to all data can be found in the assurance statement on
other environmental impacts of the cement, aggregates CR page 37. An independent expert panel also reviewed
the report and their statement is on CR page 38.
PricewaterhouseCoopers
assurance
assurance statement
Review Panel
Holcim’s Corporate Sustainable Development Report
highlights steps towards sustainable development and
addresses major sustainability issues for the building
materials industry.
Since 2007 Holcim has invited an External Report Review Panel to SD challenges
review SD priorities, materiality and to comment on the Corporate The External Report Review Panel expects Holcim to recognize its
Sustainable Development Reports. The terms of reference of the responsibilities beyond its fiscal boundaries analyzing both risks
External Report Review Panel, its members and the full statement and opportunities. As the company is in the business of providing
can be downloaded from www. holcim.com/sustainable services to the built environment new, more energy efficient
building materials with a lower impact than cement should be
Summary of the statement explored and innovation in this area supported.
Compared to previous reports the panel acknowledges the
advancements achieved and the many initiatives that have At the same time, there are opportunities to use cement more
been launched or will be initiated in 2012, such as the Supplier efficiently. Particularly in developing countries, the technical
Code of Conduct. knowhow of the use of cement is rather weak amongst downstream
users. To ensure more efficient use of its materials, Holcim should
Holcim has been responsive to comments made by the panel in bring the knowledge downstream and ensure adequate training.
previous years and the report reflects recommendations suggested This could be done through affordable housing projects that exist
during the first on-line consultation in September 2011 and during in several countries; a good example is Solusi Rumah in Indonesia.
individual interviews early 2012. The panel would like to know Holcim’s strategic view on affordable
housing and suggests that Holcim raises the bar within the sector
The panel believes that the Q&A format chosen for this report is an and becomes part of consultative structures which are emerging
interesting approach to highlight controversial issues, bearing in between NGOs, governments, state owned enterprises, customers,
mind that the answers to the questions are solely Holcim’s response financial institutions and community stakeholders in this area.
and are not officially endorsed by the respective member of the
panel or its stakeholder organization. One of the biggest challenges in sustainable development is the
connectivity and linkages between the different sustainability
Vision and strategy issues. To address this, Holcim should highlight synergies between
A 15 to 20 year perspective is needed to fundamentally review SD issues, such as explaining how its biodiversity activities
the cement, aggregates and concrete industry. In order to do so, contribute to climate change or how its work on water influence
the External Report Review panel expects Holcim to formulate biodiversity management or impacts local communities. In addition,
visionary targets for 2020 and to take into consideration existing Holcim should encourage schools and universities to prepare future
international targets such as the Aichi biodiversity targets for 2020. leaders accordingly.
Furthermore, the panel recommends the creation of a think tank
with external stakeholders, coming from different sectors of society As a big multinational, Holcim should not only focus on the
and with different backgrounds, who can support Holcim in products but on the people that work with the products. Topics
this review. such as human rights, health, and disability should be further
explored in the report as they give a good indication on how Holcim
In the area of sustainable development, it is important to reach cares about people.
scale and to create value for all stakeholders. For future reports,
the panel recommends addressing the following questions:
What effects are being achieved with the different sustainability
initiatives? What’s the impact of the individual measures?
Holcim response
assurance
Communication on progress
assurance
Report
Application Level C C+ B B+ A A+
Report on: Report on all criteria listed Same as requirement for
1.1 for Level C plus: Level B
G3 Profile 2.1 - 2.10 1.2
Disclosures
3.1 - 3.8, 3.10 - 3.12 3.9, 3.13
4.1 - 4.4, 4.14 - 4.15 4.5 - 4.13, 4.16 - 4.17
Read the full GRI application level check statement at www. holcim.com/sustainablewww.