“The 2030 Plan” The LafargeHolcim Sustainability …...require companies to go beyond...

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“The 2030 Plan”The LafargeHolcim Sustainability Strategy

For internal use only.

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Executive Summary

The social and environmental challenges the world is facing are more critical than ever. The newly adopted United Nations Sustainable Development Goals (SDGs) and the Paris Agreement on Climate (COP21) have created a new framework for action for everyone – including regulators, companies and citizens. At LafargeHolcim, sustainability contributes to our business strategy and is a key lever for growth. We want to lead in sustainability and set new standards. We want to help transform the way our industry works and encourage the whole construction sector to play its full part in addressing our planet’s biggest issues.

Our Sustainability Strategy – “The 2030 Plan” – sets a vision. The construction sector of tomorrow will be innovative, climate-neutral and circular in its use of resources. It will be respectful of water and nature. It will be inclusive – enhancing quality of life for all.

“The 2030 Plan” defines the required next steps for our company to move in that direction along 4 fields of action. It sets quantitative targets related to our direct and indirect impacts, positive and negative, over the whole lifecycle of our products and services. It also addresses the impacts our operations have beyond the fence line of our plants.

“The 2030 Plan” was developed with involvement of employees from every relevant Group function and every region of LafargeHolcim. In addition, 11 high-level external stakeholders were involved in developing it.

We will help our customers avoid 10 million tonnes of CO² being released from buildings each year through our innovative solutions

In house

Beyond our fence

Innovativesolutions

Climate CircularEconomy

Water & Nature

We will generate 1 /3 of our turnover from solutions with enhanced sustainability performance

Note: all targets are for 2030. Baseline year is 2015 unless stated otherwise.CDW: Construction & Demolition Waste, RAP: Reclaimed Asphalt Pavement, WASH Pledge: Water, Sanitation and Hygiene Implementation at the Workplace, LTI FR: Lost Time Injury Frequency Rate, TIFR: Total Injury Frequency Rate.

People &Communities

We will reduce net specific CO² emissions by 40% per tonne of cement (vs. 1990)

We will use 80 million tonnes of waste-derived resources per year

We will provide end-of-lifesolutions for our products and will supply 4 times more recycled aggregates from CDW/RAP

We will make a positive impact on water in�water-scarce areas

We will show a positive change for biodiversity

We will reduce specific freshwater withdrawal in cement operations by 30% We will implement The WASH Pledge on all sites

Low-carbon cement &�concrete

Insulating concrete

Thermal-mass solutions

Recycled aggregates Urban mining solutions

Waste management services

Rainwater harvesting

Pervious concrete

Stormwater protection

Vertical green solutions

Affordable housing materials and solutions

Affordable sanitation solutions

We want zero fatalities We will reduce LTI FR < 0.20

We will reduce TIFR by 50%

We will reduce our disease rate < 0.1 We will have 30% minimum gender diversity at all management levels

We will develop initiatives to benefit 75 million people

We will engage in collective action to combat bribery & corruption in high risk countries

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Context

Population growth (an estimated 1.4 billion more people by 2030), rising living standards (the global middle class is expected to increase by over a billion people in the next 10 years) and greater urbanization offer significant business and growth opportunities for LafargeHolcim. At the same time, these trends bring major challenges for the planet. Issues like climate change and increasing demand for limited resources require companies to go beyond “business as usual”, innovate their solutions portfolio and, ultimately, consider alternative business models.To be sustainable, mankind must achieve a high level of human development without exceeding nature’s carrying capacity. This is the quintessential challenge of the times. As countries industrialize and raise their populations out of poverty, they need solutions that allow them to have both prosperity and an acceptable environmental quality (clean air, clean water and uncontaminated land). However, the current growth model has led to a significant overshoot of this carrying capacity as living standards have risen.

The Stockholm Resilience Centre, with a number of research institutions, has identified 10 “planetary boundaries” – i.e. the frame within which humanity can safely operate without triggering irreversible changes to the planet. Their studies have also identified that we have already pushed over the safety zone for Climate Change, Biodiversity Loss and the Nitrogen Cycle, and that we are approaching the limit of the Phosphorous Cycle. Climate Change and Biodiversity Loss are particularly relevant topics for the cement industry as it has a significant impact in these areas.

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Context

Alignment with the UN Development GoalsIn response to the increasing calls for leadership in dealing with poverty, inequality and climate change, world leaders gathered on September 25, 2015 at the United Nations in New York to adopt the 2030 Agenda for Sustainable Development.

The 2030 Agenda comprises 17 new Sustainable Development Goals (SDGs), or Global Goals, which will guide policy and funding for the next 15 years, beginning with a historic pledge to end poverty.

As can be seen from the diagram below, the LafargeHolcim 2030 Plan aligns with the majority of the 17 Sustainable Development Goals adopted – particularly those that are most material to our operations.

Adaptation creates business opportunitiesWithin this broad context, companies are increasingly required by their stakeholders to demonstrate that the growth of their businesses does not come at a cost to the natural environment and to society. In response, progressive companies have set out programs to demonstrate that they have the potential to contribute positively to holistic value creation. This has extended the concept of the triple bottom line beyond the simple management of financial, natural and social aspects as 3 separate legs, to the recognition that all 3 are a form of capital (financial, natural and social) that can only be optimized with an integrated approach.

There is growing consensus that a sustainable future for society requires the full cost of social and environmental impacts (negative and positive) to be accounted for in products and services in order to provide the price signal needed to achieve sustainable consumption and production. Increasingly, governments are taking action to ensure that so called “externalities” are internalized. Fossil fuel subsidies are being reduced, water-pricing policies are being reformed to reflect real value, and countries are establishing CO2 regulations aimed at putting a price on carbon.

COP21, towards a globally coordinated frameworkIn December 2015, a deal to attempt to limit the rise in global temperatures to less than 2°C was agreed at the climate change summit in Paris (COP21) after two weeks of intense negotiations. The Paris Agreement, the first universal climate agreement provides a framework to accelerate the transition to a competitive and low-carbon economy that was called for by the forward looking business community. It formulates the ambition to peak GHG emissions as soon as possible and achieve carbon neutrality by 2050.

Importantly, the agreement provides long-term visibility and introduces the need to set and regularly review national reduction targets, leading to cooperative and comparable efforts among countries. It also underlines the importance of establishing consistent rules to measure emissions. This is an important step towards deployment of carbon pricing policies globally.

NO POVERTY

ZEROHUNGER

GOOD HEALTHAND WELL-BEING

QUALITYEDUCATION

GENDEREQUALITY

CLEAN WATERAND SANITATION

AFFORDABLE AND CLEAN ENERGY

DECENT WORK AND ECONOMIC GROWTH

INDUSTRY, INNOVATIONAND INFRASTRUCTURE

REDUCEDINEQUALITIES

SUSTAINABLE CITIES AND COMMUNITIES

RESPONSIBLECONSUMPTION AND PRODUCTION

LIFE ON LAND

PEACE, JUSTICEAND STRONGINSTITUTIONS

CLIMATEACTION

LIFE BELOW WATER

PARTNERSHIPSFOR THE GOALS

For queries on usage, contact: [email protected] in collaboration with | [email protected] | +1.212.529.1010

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“The 2030 Plan” – Building for tomorrow

Introduction – “The 2030 Plan”

“The 2030 Plan” sets a long-term vision. The construction sector of tomorrow will be innovative, climate-neutral and circular in its use of resources. It will be respectful of water and nature. It will be inclusive – enhancing quality of life for all.The Plan demonstrates our own efforts to improve the sustainability performance of our operations and puts the focus on developing innovative and sustainable solutions for better building and infrastructure. It goes beyond our own business activities. It covers the entire construction value chain and the lifecycle of buildings.

We are committed to working in partnerships to make a real difference – for communities, our planet, and our business. Because at LafargeHolcim, we want to build for tomorrow.

“The 2030 Plan” defines the required next steps to achieve our long-term vision. It sets quantitative targets related to our direct and indirect impacts, positive and negative, over the lifecycle of our products and services: from the sourcing of raw materials to our products’ end-of-life through the manufacture and use phases. It also addresses the impacts our operations have beyond the fence line of our plants.

LafargeHolcim is the largest building materials company in the world, with a presence in 90 countries, over 100,000 employees, net sales of more than CHF 30 billion and a production capacity of 370 million tonnes of cement a year. We focus on cement, concrete and aggregates and own approximately 2,500 plants (including over 1,600 in ready mix concrete, over 600 in aggregates, over 180 in cement, and over 70 grinding plants).Our company has a long history of performance in Sustainable Development. Building on this strong heritage, the LafargeHolcim Sustainability Strategy – “The 2030 Plan” – has been developed to help us efficiently develop and deploy solutions to social and environmental challenges, whilst continuing to grow our business.

Our ambition Sustainability contributes to our business strategy and is a key lever for growth.

As LafargeHolcim, we want to lead in sustainability and set new standards. We want to help transform the way our industry works and encourage the whole construction sector to play its full part in addressing our planet’s biggest issues. As the global leader in the construction materials industry, we have both the opportunity and a responsibility to make a positive difference.

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Our ambitionWe will lead by innovation and develop products, services and solutions with enhanced environmental and social performance compared to current standards.

We will be a thought leader in the sector and drive transformation along the construction value chain.

We will identify, promote and reward the most progressive concepts in the construction industry via the LafargeHolcim Foundation for Sustainable Construction.

Our 2030 targetWe want to generate 1/3 of our revenue from our “2030 Solutions”, our portfolio of products and services with enhanced sustainability performance.

Driving Innovation

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Driving Innovation

Our agenda for action Innovation leadership in sustainability: the “2030 Solutions”We will continue using our ideas, influence and research capabilities to build a portfolio of innovative, sustainable solutions that will benefit the environment and society as well as our business.

We continue to invest more in research and development than other international cement groups. We have the world’s leading R&D center in our sector, located in Lyon (France), with satellite locations across various regions developing a broad portfolio of innovative and sustainable “2030 Solutions”.

Our “2030 Solutions” are products and services with enhanced environmental or social performance compared to the prevalent solution in a given market along the lifecycle.

These include different categories: inclusive business models, water management solutions, urban mining solutions (recycled aggregates), waste treatment services, energy-efficient solutions (insulating building materials), resource-efficient solutions (high recycled content, soluble cement bags) and low CO2 building materials.

We believe we can gain a first-mover advantage by developing expertise and brand equity in the segment of sustainable construction. We will do this by moving quickly and anticipating and shaping green labels and green regulations to drive sound decisions on building materials.

Our challenge is to successfully deploy our “2030 Solutions” across the 90 countries we operate in. “The 2030 Plan” requires transformational change of our business, dedication, determination and accountability.

Thought leadership in the construction sectorDespite all efforts to harmonize the definition of sustainable construction and establish common metrics, the construction value chain is still highly fragmented. This causes dilemmas of conflicting interests (i.e. owner vs. user of buildings) and different “languages” used to describe sustainable construction in different ways.

We will lead strong cross-sector partnerships to optimize and synchronize the construction value chain. By doing so, we want to drive the transformation towards a seamless, progressive and solution-based construction sector.

We want to create a proactive network among leading players along the construction value chains, including supranational organizations and NGOs. The aim is to enable value chain transformation in areas like carbon savings down the value chain, energy efficiency in buildings, responsible sourcing of construction materials or common methodologies and tools to measure and communicate sustainable performance.

Promoting progressive sustainable construction practicesThe LafargeHolcim Foundation for Sustainable Construction creates awareness of the importance of sustainable construction among professionals and the public. It encourages sustainable responses to the built environment leading to an improved quality of life for users.

Together with its partner universities, the Foundation advances the academic discourse of sustainable construction by holding international symposiums – the LafargeHolcim Forum and Roundtables. The Foundation also presents LafargeHolcim Awards on regional and global levels. The Awards are the most significant international competition for sustainable design and are open to everyone involved in sustainable construction.

The Foundation supports the Group in its R&D and innovation efforts by conducting academic symposiums – on topics such as low CO2 binders, recycling demolition waste or lifecycle economy of buildings.

Our advocacyWe will advocate for the development of an enabling and incentivizing regulatory and normative framework that is performance-based, material-neutral and thereby ensures the maintenance of a level playing field. The deployment of our 2030 Solutions will require incentivizing regulations – for instance a robust CO2 price signal or appropriate waste management regulations – as well as progressive building codes and standards. We will also raise awareness in the market to create a demand for sustainable solutions and promote increased cooperation across the construction value chain.

Our pathway to 2030

Objective/Metrics Target 2020 Target 2025 Target 2030

Percentage of turnover from portfolio of innovative and sustainable solutions (specifically labelled, on a voluntary basis)

Baseline 2014 (estimate): 6–8%

10% 20% 33%

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Climate

Moving towards a carbon-neutral construction sector

Our ambitionLafargeHolcim will continue its mission to cut its net CO2 emissions per tonnes of cement and will help its customers avoid CO2 emissions released from buildings and infrastructure over the whole lifecycle thanks to its portfolio of sustainable products and services.

Our targetsBy 2030, we want to produce 40% less net CO2 per tonne of cement than we did in 1990 – representing an additional effort of 19% reduction if we consider 2014 as reference year.

This will help us remain the most CO2-efficient global business in our sector. In line with the global climate agreement concluded in Paris at COP21, we commit to revise this target every 5 years in order to adapt to technical innovations and to the evolution of climate change regulations.

By 2030, we want to help our customers avoid 10 million tonnes of CO2 released every year from their buildings and infrastructure by using our innovative solutions.

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Climate

Our agenda for action Leadership in net CO2 emission per tonne of cementAs a result of our past efforts, we are the most carbon-efficient cement company among international groups.

This 40% reduction target corresponds to the commitment to maintain the same average rate of improvement as the past 25 years. Maintaining a similar pace of improvement in the future will be challenging, as we are getting closer to the known limits in many of the known improvement levers.

We will further decrease our emissions per tonne by using more by-products and waste-derived resources as raw materials and fuels and investing in energy efficiency and innovation. Practically, the following levers will be activated:

– We will further replace clinker in final products, and develop low carbon binders:

– Low CO2 binders – reducing clinker content in our products. We have reduced the intensity of clinker content by 13% since 1990 by using alternative mineral components and we aim to reduce up to 5% more in the next few years

– We’ll deploy innovative clinker types and new low CO2 binders (footprint decreased by 30 to 70%), such as Aether for precast concrete products & ready mixed concrete

– We will use more waste-derived fuels, including biomass waste:

– We will use biomass from agricultural waste, building on our long experience in biomass initiatives with communities in Africa – not competing with human food production. We have successfully increased our use of biomass waste fuels by more than 600% since 1990 and want to do more

– We will further deploy waste treatment solutions. We have increased the use of alternative fuels by over 350% since 1990 and we aim to double our actual offer of waste treatment solutions

– We will further invest in energy efficiency: – We will replace our least energy-efficient

production facilities. We have reduced our specific thermal consumption by 22% since 1990 and want to do more

– We will explore new strategies: – We are exploring carbon capture and use

techniques (CCU) focusing on the application of CO2 in building materials production processes – a promising option is “Solidia” cement for precast applications

Reducing CO2 emissions from buildings and infrastructureOur target of 10 Mt avoided CO2 per year from buildings and infrastructure is a considerable commitment. For comparison, the city of Paris emits about 7 Mt CO2 per year, London 18 Mt CO2 per year.

Buildings are responsible for 30–40% of global carbon emissions. We strongly believe that we have a critical role to play to help decrease that footprint.

We will develop solutions improving buildings’ energy efficiency, enhancing their durability and reducing the material required to achieve the same functionality. We will provide solutions to repair roads faster or extend the durability of road surfaces. We will also develop solutions maximizing CO2 capture by concrete over its lifecycle.

Knowing that the only relevant metric is the absolute CO2 emission over the lifecycle of our products, we have developed a peer-reviewed methodology which enables us to conservatively calculate avoided CO2 emissions during the use phase of our innovative solutions. This cutting-edge approach will help us further drive innovation towards carbon neutral construction.

Practically: – We will remain the company investing the

most in R&D in our sector– We will deploy our innovative solutions to

the market (Aerium, Thermedia, Indoor Climate Solutions, Insulating Concrete Formwork, Speedcrete, Ductal…) and report on the generated turnover

– We will work with our customers to develop integrated solutions reducing CO2 emissions over the whole lifecycle. We’ll do this in partnership from the design phase of structures (e.g. Building Information Modeling)

– We will leverage the LafargeHolcim Foundation for Sustainable Construction to promote case studies of the most innovative low CO2 solutions in the use phase

– We will continue to be a leading figure in cross-sectoral initiatives aiming at achieving – in the long term – carbon neutrality in the construction value chain

Addressing the carbon footprint of our supply chain, of logistic activities and from own buildingsWe consider our carbon footprint over the whole value chain – from the sourcing of our raw materials to structures’ end-of-life including our emissions from transport and office buildings.

Practically: – We will engage other companies in our

supply chain to declare and reduce the emissions from products we purchase (e.g clinker purchased)

– We will improve the performance of our transport fleet and use low CO2 transport modes (water, train, etc.) whenever technically and economically feasible

– We will transparently disclose the CO2 footprint of our products to our customers through Environmental Product Declarations, applying recognized standards

– We will monitor and improve energy consumption of our own buildings

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Developing the use of renewable energyWhile direct CO2 emissions (Scope 1) represent the vast majority of our greenhouse gas emitted, and is thus our primary focus, we acknowledge our responsibility to act on our total power portfolio. We therefore commit to report on our use of electricity from renewables.

Practically: – We will optimize the use and performance

of our assets producing low carbon power (e.g. waste heat recovery units)

– We will invest in renewable power – or purchase it – when it is economically and technically advantageous

– We will seize opportunities to generate renewable energy by optimizing the use of our land (e.g. using biomass residues, using quarries as water reservoir for hydro power, using land for wind mills or solar panel farms)

Our advocacyWe engage with governments across many jurisdictions on the development of effective and incentivizing climate regulatory frameworks. We advocate for efficient, effective, fair and consistent regulations:– We support carbon pricing, the linking

between carbon pricing mechanisms as a way to progress towards a global carbon price signal

– We advocate for a long term, stable and reliable environment to encourage investments and support plans to reduce CO2 emissions further and to adapt to climate change,

– We advocate for climate policies that are fully integrated in a coherent policy framework (incl. energy, industrial and innovation policies) and that is responsive to changes in macro-economic environments;

– We advocate for a level-playing field between domestic producers and importers, and among industries. This is a necessity to avoid carbon leakage during the transitory period in which different carbon costs apply from one jurisdiction to another,

– We advocate for comparable and coordinated efforts among countries, and consistent and equally enforced monitoring and reporting rules for carbon emissions.

– We support a higher share of renewables in the energy mix of a country power generation capacity,

– We advocate for higher energy efficiency standards in buildings, based on life cycle performance and material/technology neutrality.

Our pathway to 2030


Net specific CO2 emissions – improvement form 1990 baseline (2014 – 26%)

-33% -37% -40%

Specific net kg CO2/t cem. (2014 – 574)

519 488 467

Clinker factor (2014 – 71%)

< 68% < 66% < 65%

Thermal Substitution Rate (2014 – 14.4%)

> 25% > 30% > 35%

Climate

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Circular Economy

Making the most of waste

Our ambitionWe will create more value from waste by transforming it into resources for all our production processes – providing sustainable waste treatment solutions.

In urban areas, we will develop the use of construction and demolition waste to produce recycled aggregates.

Our targetsBy 2030, we want to use 80 million tonnes of resources made from waste in our operations each year.

We will be supplying 4 times more recycled aggregates from construction & demolition waste and reclaimed asphalt pavement by 2030.

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Our agenda for action Transforming waste into resources for all our production processesWe will reduce our dependency on natural resources and fossil fuels by transforming waste into resources for all our production processes. This will also enable us to bring more value to the environment and society through sustainable solutions to waste – while reducing waste landfilling and incineration. We will therefore create more local employment opportunities (among others in waste collection, waste segregation and treatment).

Practically: – We will further deploy our waste treatment

services over all continents, building on our long experience and applying strict environmental and safety standards

– We will further deploy co-processing installations for waste-derived fuels and raw materials in our cement operations; these can include:

– Shredding installations for solid waste – Handling, dosing and feeding systems – Physical and chemical pre-treatment

processes

– We will further deploy biomass production initiatives, initiating long-term partnerships with local farmers and communities. While providing sustainable livelihood to communities, these projects enable us to increase our use of residues from agriculture and forestry

– We will use more industrial mineral components and mineral waste (blast-furnace slag, fly ash from coal-fired power plants, artificial gypsum and other by-products)

– We will further apply our principle of transparent communication and reliable information towards all our stakeholders

Providing solutions for the end-of-life of our productsRecycling construction and demolition waste improves buildings’ lifecycle performance and increases resource efficiency in a world where natural resources are becoming increasingly scarce. Our cities will be the quarries of tomorrow.

We will build on our unique experience in the recycled aggregates business to achieve our ambitious target. We will accelerate the deployment of our recycled aggregates business model linked to full service delivery for construction and demolition waste within major urban areas. We will engage in local partnerships or joint ventures in order to develop locally-appropriate business models.

Our unique selling proposition will be based on our commitment to deliver high-quality recycled aggregates to our customers.

We will also closely monitor the increasing scarcity of sand in various regions of the globe and develop technical alternatives – focusing on the processing of waste-derived materials.

Our advocacyWe advocate for an enabling regulatory framework for waste collection, segregation, preparation and recovery through co-processing in our production processes – in line with the waste treatment hierarchy. We advocate for the recognition of the added-value of co-processing as a double and simultaneous recovery process (energy and minerals).

We advocate for an incentivizing regulatory framework for the production and use of recycled aggregates from construction and demolition waste, creating a business case for these activities and the use of secondary raw materials. We act on building standards to enable broader use of recycled aggregates in high-value applications.

Circular Economy

Our pathway to 2030


Alternative fuels – million tonnes 12.6 16.5 21.4

Alternative raw materials – million tonnes 9 10 11

Industrial mineral components – million tonnes 28 31 37

Mineral components sold externally – million tonnes

8 8 8

Industrial gypsum – million tonnes 4 4.5 5

Total use of waste-derived resources – million tonnes

> 60 > 65 > 80

Multiplying by 4 volume of recycled aggregates from CDW/RAP – million tonnes

> 12 > 18 > 26

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Water & Nature

Demonstrating respect for water and nature

Our ambitionWe will save freshwater in all business lines. We will give more water to communities and nature than we withdraw in water- scarce areas.

We will demonstrate a global positive change for biodiversity in our mining sites.

We will provide appropriate hygiene conditions of all workers on our sites.

Our targetsBy 2030 we want to reduce the amount of freshwater we withdraw to produce each tonne of cement by 30%.

We want to make a positive difference to water resources in areas where it’s scarce.

We want to bring a global positive change on biodiversity by 2030.

We want to make sure that all our employees and contractors can access safe water, sanitation and hygiene on all our sites.

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Our agenda for action Reduction of freshwater withdrawalWe will reduce our freshwater withdrawal through rainwater harvesting, reuse of wastewater and deployment of best practices in responsible and efficient use of freshwater resources within our operations.

Positive impact on water resources in water-scarce areasWe will create a more efficient, equitable, and sustainable approach to water resource management in water-scarce areas by giving back more and better quality water to communities and nature than the water we withdraw.

The “positive water index” for each site will be assessed through a “Water Credit versus Water Debit” approach. It will consider both quantitative and qualitative dimensions.

Building on previous experiences, we will deploy different categories of projects enhancing water sustainability1:– Watershed protection and restoration:

recharge of natural water, construction of wetlands to intercept run-offs, reduction of water consumption for irrigation using drip irrigation, reforestation

– Water access and sanitation: improvement of the access to safe water by well constructions, development of sanitation solutions

– Water for productive use: reuse of treated water for irrigation purposes, increased water supply through rainwater harvesting

We will build our actions on the existing knowledge and expertise of local communities.

We will conduct public education and awareness programs and provide capacity building and appropriate training to key stakeholders.

Positive change on biodiversity We will use our established biodiversity reporting methodology2 to assess the overall biodiversity condition of a defined site consisting of one or more different habitat types. The outcome of this assessment is expressed as a “Site Condition Class” on a scale of 1–10 and takes into account:– The extent of every habitat type found on

a site– The ecological condition of these habitats,

including enhancements and threats– The uniqueness and ecological importance

of each habitat in the regional context

We will deploy professional biodiversity management practices and rehabilitation/restoration practices to demonstrate an overall net positive change to ecosystems and biodiversity.

We will further engage in partnerships with international or local organizations, with proven track records of success.

Our advocacy We advocate for an enabling regulatory framework for the protection and enhancement of water, biodiversity and ecosystems (e.g. water pricing policy, tax incentives).

Related projects often require a team with a combination of relevant skills and expertise (water specialist, social scientist, ecologist, engineer, etc.). Appropriate training and capacity building, as well as public education and awareness, are key factors to a successful project.

1 Our “Water Positive Impact” methodology was developed with the support of an external party and reviewed by the Swiss Development Agency. Methodologies were developed to calculate benefits of 6 projects (Water-Efficient Cultivation Techniques, Water-Efficient Irrigation, WASH, Restoration of Natural Habitat, Reforestation, Groundwater Recharge).

2 Methodology developed together with IUCN. The methodology has been piloted in several countries (France, Canada, Costa Rica, Indonesia, Sri Lanka).

Water & Nature

Our pathway to 2030


Reduction of specific freshwater withdrawal in the cement business line

-20% -25% -30%

Achieve a positive Change on Biodiversity across the Group

Baseline assessment of biodiversity condition of all active quarries established

Demonstrate a positive change on biodiversity at Group level

Biodiversity Management on our sites

All our active quarries to have a Biodiversity Management System (BMS) in place

Biodiversity Management Plan of quarries with medium to high biodiversity sensitivity externally reviewed/validated

Ensure access to safe Water, Sanitation and Hygiene at the workplace

Sign the WBCSD WASH Pledge and be compliant by 2020

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Helping people thrive

Our ambitionWe will further develop and deploy affordable housing solutions, targeting at the base of the social pyramid.

We will provide inclusive business models, education and health programs to support local communities’ economic and social development.

We will take a stand against corruption and bribery.

We will promote and deploy responsible and sustainable business practices throughout our value chain. In particular, we will act for the universal respect of human rights.

We will champion diversity in our sector.

We put health and safety at the center of everything we do. Health and safety is our overarching value.

Our targetsBy 2030, we want to help 75 million people live better lives through our affordable housing solutions, our inclusive business initiatives and our social investments.

We want to work with others to fight bribery and corruption in all the high-risk countries where we operate.

We want to implement our Sustainable Procurement Initiative in all the countries we operate in.

We want to promote equality and diversity at LafargeHolcim. We want to achieve a minimum of 30% gender diversity at all management levels around our business by 2030.

By 2030, we want to achieve a zero fatality target, a Lost Time Injury Frequency Rate of 0.2, a 50% reduction in Total Injury Frequency Rate (vs 2015), and have an occupational disease rate of 0.1.

People & Communities

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Our agenda for action Helping people thrive, enhancing wealth and local economyWe will enhance quality of life for 25 million beneficiaries through our affordable housing projects and 50 million beneficiaries through our inclusive business models and social investments.

Affordable housing solutionsDue to our expertise, our business can make the most significant contribution to society in the areas of shelter and livelihood.

In response to the enormous challenge of providing the world’s population with decent and sustainable housing at an affordable cost, we have developed a unique portfolio of affordable housing solutions across a range of geographies3. This business program generates positive returns – it is being and will continue to be deployed through our marketing and sales teams.

Practically: – We will provide affordable housing

solutions to many through the implementation of business programs and dedicated teams in countries Sales & Marketing departments

– We will launch joint ventures with experienced partners

– We will further deploy our affordable housing offer around 4 pillars:

– Microfinance solutions to help people in emerging markets fund the construction, renovation or extension of their homes

– Technical assistance and labor training to ensure good-quality construction, which will also increase employability of trained workers

– New building materials (such as Durabric, a new type of low-carbon clay brick that contributes to reduce construction cost)

– Solutions for the distribution of building materials in small quantities for areas that are hard to reach through standard methods of delivery

Inclusive business modelsWe will develop inclusive business models that provide sustainable solutions to critical social issues.

Practically, we will: – Further deploy initiatives that improve the

living conditions of low-income communities while extending access to our products, services and solutions in ways that create mutual value – such as our affordable sanitation initiative in India

– Further promote local micro-enterprise development to market products and services that relate to our core business or to supply our facilities with goods and services such as community-based waste collection and segregation activities or biomass production activities by local farmers

Social investmentsOur social investments aim to improve people’s quality of life in a sustainable way by building capacity, improving health, providing seed capital for activities that are then self-sustaining.

We will focus our social investments on the needs of our communities. We will design and implement them in close collaboration with community stakeholders – building upon our core business knowledge and assets. These include:– Micro-enterprise development based on

community assets and needs– Provision of access to basic infrastructure in

collaboration with governments and/or international organizations and foundations

3 As at end 2015, 24 countries of operation have affordable housing projects in place or under assessment, and the program has benefited an estimated 500,000 people since its inception.

– Building on existing programs for HIV and malaria and providing health clinics or services to surrounding communities in developing countries

We will develop our social initiatives through stakeholder engagement programs that build on existing methodologies based on the AA1000 standard.

Fight against corruption and briberyWe will participate in and/or lead collective action initiatives to fight bribery and corruption in high-risk countries where we operate. Collective action is defined as a collaborative and sustained approach by like-minded organizations to address systemic corruption in a specific geography or sector. Examples include integrity pacts, standard-setting initiatives, declarations and joint activities.

Practically, we will: – Inform, consult and coordinate between

local management and corporate teams to develop a supported and coherent collective action

– Join existing collectives or create new groups of like-minded companies in a particular geography

– Collectively tackle certain common interest issues (such as extortion by government officials for services common to multiple companies – e.g. licensing, permits, police services, customs clearance)

Human RightsWe will roll out our Human Rights program to all countries.

We will further use the Freedom House and UN Human Development indices to help us proceed to a global assessment of the countries in which we operate.

We will conduct impact assessments by corporate teams – in coordination with the local team – for high-risk countries. Self-assessments conducted by local teams will be deployed in low-risk countries. Progress against action plans will be consistently followed up and reported.

Acting across our supply chainWe will lead in the promotion of responsible business practices throughout the entire value chain. Through our Sustainable Procurement Initiative, sustainable practices will be promoted towards suppliers all over the world.

Championing diversityWe will build our company’s success with the best talent. We believe that diversity of thought is key to seizing the right business opportunities and delivering sustainable top performance.

We will create a gender-balanced and inclusive work environment where diverse talent can thrive and contribute to superior business results. We will achieve a minimum of 30% gender diversity at all management levels by 2030 by developing a regional approach to diversity and inclusion.


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This approach will guide a consistent process of action planning at local level that will take upcoming recommendations from the LafargeHolcim Women’s Task Force into account. Actions will include:– Developing programs with a focus on

women in operations – Rolling out of flexibility options– Global implementation of diversity and

inclusion training at all management levels (gender balance awareness and unconscious bias)

– Leadership development (mentoring and sponsorship)

We will move ahead with gender certification programs, and work with partners to achieve our objectives. By moving ahead on gender diversity we will help to develop a culture of inclusivity at the workplace which will also foster improvement in all areas of staff diversity.

Keeping people safeWe place health and safety at the center of everything we do and we conduct our business with a goal of zero harm. We will act to improve the health of employees, contractors, third parties and communities.

We believe in visible leadership and personal accountability for Health and Safety at all levels and throughout our organization.

Practically, we will: – Maintain a global Health and Safety

Management System designed to continuously improve our performance and actively manage risk in our business

– Drive for operational discipline by instilling a mindset of safe execution and follow-up

– Communicate openly with all stakeholders on relevant health and safety issues

Our advocacyWe advocate against any discrimination, for the universal respect for human rights and for diversity. We fully support and work in respect of fair competition rules and practices. We take a visible stand against corruption and bribery. We advocate for the development of policies enabling the outrolling of affordable housing solutions, thereby contributing to bringing responses to housing, well-being and safety needs.

Our pathway to 2030


Enhancing local economy and wealth

Affordable housing – direct beneficiaries (million people – cumulative)

1.5 5 8

Affordable housing – indirect beneficiaries (million people – cumulative)

3.5 10 17

Social investments and inclusive business beneficiaries (including health programs) (million people – cumulative)

20 35 50

Total beneficiaries from our social programs (million people – cumulative)

25 50 75

Placing health and safety at the center of everything we do

Fatalities Zero on-site fatalities

Zero on site + 50% reduction off site

Zero on and off site

LTIFR (per million hours worked) < 0.5 < 0.25 < 0.2

TIFR (per million hours worked) 30% reduction vs 2015

40% reduction vs 2015


Road safety Seat belts fitted to all company and contractor vehicles + Defensive driving training for 50% of all employees & contractors

Vehicle monitoring systems fitted to all company and contractor vehicles operating in high-risk areas + Defensive driver training for 100% of employees & contractors

Occupational disease rate (per 2 million hours worked)

– < 0.5 < 0.1

Total Hearing Shift Rate – < 1.0 < 0.1


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Manual Handling of cement bags by employees & contractors




Health Assessment (risk based). All employees undergo assessment

Employees & contractors undergo assessment

Annual Audiometric Testing (with STS Analysis)

All employees

Annual Industrial Hygiene Sampling All high-exposure risks assessed annually

Crystalline Silica Testing to determine risk All quarry & cement sites complete annual testing

External Health Engagement > 5% of CSR beneficiaries

> 10% of CSR beneficiaries

> 15% of CSR beneficiaries

We value differences

30% gender diversity in all management levels by 2030 (2015 – 10%)

20% 30%

Promotion of clean & fair business practices

Leadership role/participation in collective action initiatives against bribery & corruption

3 high-risk countries

10 high-risk countries

All high-risk countries

Fully deployed by 2020

Sustainable procurement initiative 80% of high-risk active suppliers assessed

Top 60% spend Tier 2 suppliers assessed



Environmental Management System implemented in all business lines

ISO 14001 certified EMS in all cement and geocycle plants

40% EMS in all other production sites which conforms with main requirements of ISO14001

100% EMS in all other production sites which conforms with main requirements of ISO14001

Integrated certified management system commended (Env, Quality, H&S, Energy, CSR)

Audits on environmental compliance and performance (second party or third-party audits)

Audits conducted on all production sites once every 5 year

(compliance to legal requirements and other commitments

Average specific emissions of Dust, NOx and SO2 vs 2014 [g/t cem]

-15% -20% -25%

Fugitive dust emissions Fugitive Dust Management Plan implemented at all cement plants

Fugitive Dust Management Plan implemented at all sites

Stakeholder engagement plan in place at site level

Cement plants: 80%

A&C: 40% at cluster level

Cement plants: 100%


Cement plants: 100%


Other sustainability targets

Our pathway to 2030

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LafargeHolcim Ltd Zürcherstrasse 156 CH-8645 Jona/Switzerland www.lafargeholcim.com/2030-Plan Phone +41 58 858 58 58

For internal use only.

“The 2030 Plan” The LafargeHolcim Sustainability …...require companies to go beyond...

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