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Lafarge | 2011 | Sustainability Report 3

Introduction

Produced using power from 100% renewable resources and waterless printing technology.

GlossaryARM Alternative Raw Material

BAT Best Available Technique

BREF Best Available Technology Reference Documents – used by site operators as a guide only – they do not have legal status

CEM Continuous Emissions Monitors

CKD Cement Kiln Dust

CO2Carbon dioxide

EA Environment Agency

ELV Emission Limit Value

EMAS Eco Management and Audit Scheme

KEPI Key Environmental Perfomance Indicator

Kg/tPCE Kilogramme per tonne of Portland Cement Equivalent – a standard measure in the cement industry

MBM Meat and Bone Meal

MPA Mineral Products Association

NIEA Northern Ireland Environment Agency

NOXOxides of nitrogen

PPE Personal Protective Equipment

PSP Processed Sewage Pellets

RFO Recovered Fuel Oil

SEPA Scottish Environment Protection Agency

SO2Sulphur dioxide

SRF Solid Recovered Fuel

SSSi Site of Special Scientifi c interest

WDF Waste Derived Fuel

WDLF Waste Derived Liquid Fuel

WID Waste Incineration Directive

Report complied by: Jonathan Bailes/Paul Firth

Managing Editors: Steve Carter/Dave Shenton/Michele Wheatley

Design and Production: mark-making.com

Lafarge Cement UK Ltd: Portland House, Bickenhill Lane, Solihull, Birmingham B37 7BQ, Phone: + 44 (0) 845 812 6400 | www.lafarge.co.uk

contents

If there is anything you wish to discuss in this Report, please contact us at: [email protected]

Welcome to Lafarge Cement UK’s 2011 Sustainability Report, the fourth such document produced by the company, reinforcing our commitment to open communications and reporting. To meet the requirements of our accreditation to the Eco-Management and Audit Scheme (EMAS), this Report provides an overview and data for our last three years’ performance in the key areas of sustainability – environment, social and economic.

Part of the Lafarge Group, Lafarge Cement UK is one of the country’s leading manufacturers of

construction materials, employing over 1000 people. We operate a network of fi ve cement works, and

14 depots and terminals, producing up to fi ve million tonnes of cement products each year.

Despite the economic downturn, and ongoing challenges in this market, we have continued to develop

and demonstrate our commitment to sustainability in all areas of our operations. This Report presents

you with details but in brief, over the years 2009-2011, we have achieved key improvements in

reductions of emissions to air (for example dust emissions are down by 85 per cent in comparison

with 2000 levels); an increase in movement of cement from road to rail; more land rich in biodiversity;

less water consumption; and improvements in health and safety performance.

Importantly we have made major steps forward in reducing our carbon footprint through several

operational areas, including the increased use of more sustainable, waste-derived fuels and the

production of more blended cements which have lower CO2 impact.

With regards to our most important asset, our people, we have also continued investing in our

employees with around £600,000 spent on training in 2011 alone. And outside the business, our

stakeholders at all levels continue to play an important role. We actively engage with a range of

national and local interest groups and individuals, and use the information we gather to review and

further develop our drive for sustainability.

I hope you fi nd this Report provides an interesting insight into how sustainability is at the heart of

everything we do at Lafarge. The drive to make our operations more sustainable is an ongoing journey

and we welcome your comments and suggestions on this fundamental goal for our business.

Dyfrig James

President, Lafarge UK

EMAS - The environmental

management system

implemented at Lafarge

Cement has been verifi ed.

Certain information within

this statement has been

validated to the Eco-

Management and Audit

Scheme regulation (EC) No. 1221/2009 on

24 August, 2012 by Lloyd’s Register Quality

Assurance, EMAS accreditation number UK-

V-005. This information is identifi ed on each

page by the presence of the EMAS logo.

At the time of going to print, Lafarge in the UK was working towards the formation of a 50:50 joint

venture with Tarmac. The joint venture, approved by the Competition Commission subject to a

number of conditions, when formed will be a market leading UK construction materials company

in the supply of cement, concrete, aggregates, asphalt and contracting services.

03 Introduction

04 Operations overview

05 The cement-making process

06 Environmental policy

07 Environmental management

08 Raw materials

09 Use of energy

10 Emissions to air

12 Water

13 Waste production

14 Logistics & supply planning

15 Land use

16 Biodiversity

18 Health and safety

20 Employees

22 Corporate Social Responsibility

24 Products and services

26 Supply chain

27 Compliance

Appendices

29 EMAS data - Works 2011

29 EMAS summary - 2009-2011

30 Barnstone Plant and Depot data

34 Group data

POSITIVE IMPACTS

Essential product used in construction projects

Good thermal qualities for concrete

Signifi cant potential to recover and use wastes from other sectors

Economic contribution to local communities

Stakeholder involvement at national and local level

Quarry restoration and biodiversity plans

Responsible use of transport

Responsible employer

NEGATIVE IMPACTS HOW CAN WE IMPROVE?

Emissions to air, land and waterCompliance with regulations, recycling and

use of waste-derived fuels

Use of natural resources Use of alternative raw materials

Use of energy (including fossil

fuels and electricity)

Increase use of waste-derived fuels and

refi ne local energy plans

Use of water Recycle water and reduce leaks from system

Noise/vibration Improve acoustic abatement

Visual impact Continue use of screening, quarry restoration

Road traffi c Increase use of rail, more effi cient road fl eet

Lafarge | 2011 | Sustainability Report 54 Sustainability Report | 2011 | Lafarge

The cement-making processThe cement-making process varies from site to site but the basics are as follows.

Limestone is quarried on site and then crushed and ground with shale and sand. This ground raw material is passed through the pre-heater tower and kiln, where it reaches temperatures of 1450°C. Heat for the process is provided by coal, petcoke and a range of sustainable waste-derived fuels at each site, including

chipped tyres, Processed Sewage Pellets (PSP), Meat and Bone Meal (MBM), Waste Derived Liquid Fuel (WDLF) and Solid Recovered Fuel (SRF). After cooling, the product is known as ‘clinker’. Clinker is ground with gypsum to make cement. This product is distributed in bulk, via road or rail tankers, or packed in bags.

Packing and distributionThe cement is distributed in bags or in bulk by road or rail

GrindingThe clinker is ground with gypsum and a small amount of additives to make the required cement

Kiln processThe raw materials are heated in the kiln to temperatures in excess of 1,450°C where a chemical reaction takes place, changing them into nodules of cement ‘clinker’

Raw material preparationThe raw materials are won and prepared for processing in the kiln

Environmental impacts of cement operations

This Report represents a full sustainability report covering the years 2009 to 2011 and refl ects our continued commitment to maintaining external verifi cation for our activities under:

• EMAS – registration to Eco-management and

Audit Scheme;

• ISO 14001 – environmental management systems;

• ISO 9001 – quality management systems;

• OHSAS 18001 – health and safety

management systems. n

Operations overview Lafarge Cement UK is one of four major UK-based cement

producers. The UK combined capacity for the manufacture of cement is around 12 million tonnes per year. In 2011, Lafarge continued to be the UK market leader, with capacity to manufacture up to five million tonnes of cement product through five works and seven blending plants across Great Britain and Northern Ireland. In the UK, the Lafarge Group also operates aggregates and concrete, asphalt and contracting businesses. This Report focuses purely on Lafarge Cement UK.

Inverness

Aberdeen

Uddingston

Cookstown

Depots

Land and Planning Team

Sapphire EnergyRecovery

Terminals

Head Office

Dewsbury

HopeCauldon

West Thurrock

NorthfleetThealeWestbury

Liskeard

Aberthaw

CelticAsh

Isle of Wight

Dunbar

Leith

Seaham

Barnstone

Solihull

Works

ScotAsh

CelticAsh

ScotAsh

Belfast

Dunbar Works

Aberthaw Works

Cookstown Works

Hope Works

Barnstone Plant

Cauldon Works


Environment policyIn order to demonstrate the company’s commitment to complying with relevant environmental regulations and improving operational sustainability, an environment policy is developed and published. It is reviewed annually to reflect any significant changes. The current policy was published in Jan 2012.

Environmental managementAll of Lafarge’s UK cement works and directly associated activities where Lafarge hold key management control are registered under the ISO14001 environmental management system. Registration to the Eco-Management and Audit Scheme (EMAS) was first completed in 2000.

ENVIRONMENT

We will operate in line with Lafarge Group’s Environment Policy and will:

• Comply with applicable environmental legislation

and relevant codes of practice

• Continually improve our environmental

performance

• Develop and implement energy reduction plans

• Contribute to the UK’s long-term economic,

environmental and social sustainability.

We will:

Operate a formalised, multi-site Environmental Management System (EMS) throughout the company:

• Maintain certification to ISO 14001 and

registration to the European Eco-Management

and Audit Scheme (EMAS)

• Undertake audits, including energy audits, and

seek opportunities for improvement.

• Head office shall audit all of our operations at least

once every three years against legal obligations

• Ensure our business performance plans each

year include environmental and energy issues,

on a company wide basis and at individual sites

• Review progress against objectives and targets as

part of the management review under the EMS.

Identify significant impacts and set short and long term targets for the control and prevention of pollution:

• On a company wide basis, we aim to achieve the

following targets for our cement manufacturing

operations by 2012*:

• 20% reduction in carbon dioxide emissions –

measured against estimated 1990 performance

• 20% reduction in emissions of sulphur dioxide

– measured against 2005 performance

• 20% reduction in emissions of oxides of nitrogen

– measured against actual 2005 performance

• 30% reduction of dust measured against

actual 2005 performance

• 5% reduction in electricity consumption

against 2005 performance reported as kWh/t

cement

• The procedures will ensure we operate

responsible production and energy

management control to achieve our energy

and carbon dioxide reduction targets as part

of the Climate Change and Emissions Trading

agreements

• Operate emergency response procedures at

all sites.

Integrate environmental and energy considerations into decision-making at all levels:

• Consider the environmental and energy

implications of new projects

• Develop rehabilitation plans at our quarries and

implement them on an ongoing basis

• Work with others to develop bio-diversity action

plans

• Screen all our (operational) quarries against the

criteria validated by WWF international.

To train employees to achieve high standards of environmental and energy efficiency performance and awareness:

• Ensure the employment of sufficient and

qualified staff

• Provide both general and specific training

to meet individual requirements to facilitate

continuous environmental improvement

• Include environmental considerations in

Personal Development reviews.

*Unless stipulated targets reported in relation

to per tonne of product made (Portland Cement

Equivalent/World Business Council for Sustainable

Development GRI reporting index)

To consider the impacts associated with our products throughout their life cycle:

• Seek to reduce the impact of our products on

the environment

• Work with other bodies to improve the

sustainability of our business and enhance

its contribution to sustainable construction,

including:

• the use of waste materials, to reduce the use

of virgin raw materials and fuels

• advise key suppliers of our environmental

expectations and work with them to improve

their environmental performance and the

energy efficiency of equipment supplied to us

• increasing our knowledge of the impacts

our processes and products have on the

environment, energy use and human health.

To proactively communicate openly and consult with our stakeholders

• Liaise with stakeholders on sustainability issues

seeking their feedback and encourage candid

dialogue

• Work with government and non-government

bodies as well as relevant industry groups

• Issue annual environmental statements,

including energy data, as part of the

• EMAS scheme

• Ensure that this policy, and other environmental

information, is made available on our company

internet site.

Formally review this policy annually and re-issue it as required

• Review this policy at annual EMS reviews

centrally and at each operation. n

The environmental management system is made up of the following five sections:

• A centrally controlled manual, setting out

our company structure and responsibilities,

environmental policy and links with other

business systems and controls

• A centrally controlled set of management

procedures giving details of how to handle

issues such as training, communication,

assessment of regulatory compliance, evaluation

of environmental aspects and impacts, setting

of objectives and targets, internal audits and

management review

• A set of local operating procedures which

are developed at a site level to manage the

significant environmental aspects and impacts,

including consideration of abnormal and

emergency situations, identified at each location

• A compendium of the relevant legal and

regulatory controlling documents, including

Environmental Permits, abstraction licenses and

discharge consents, held at each location

• A task list for management and operating

procedures summarizing responsibilities as

identified in the management and operating

procedures.

The performance of the system is regularly audited and reviewed internally throughout the year at both local and central levels. External surveillance by Lloyd’s Register Quality Assurance (LRQA) is carried out centrally and at operational sites every six months, with full reassessments every three years.

Performance is monitored through the use of Key Environmental Performance Indicators (KEPI). These measures are used to monitor performance in significant areas, including emissions to air, energy and water use, waste arisings and packaging. n

2000

Coal (kg/tPCE)

WDF (kg/tPCE)

140

120

100

80

60

40

20

0

2009 20112010

2000

Electricity(GJ/tPCE)

0.6

0.5

0.4

0.3

0.1

0

2009 20112010

Tyres

50.5%

MBM

21.5%

PSP

15.4%

WDLF/RFO

12.6%

2010 2011

0.6

0.5

0.4

0.3

0.2

0.1

020092000


WASTE ASH USED AS A SUSTAINABLE RAW MATERIALFly ash – a waste-product from the coal-fi red power industry – is helping Hope Works in Derbyshire improve the sustainability of its process. We continue to use fl y ash at opposite ends of our process, as a raw material replacement and also for our low CO2 cements . It is complementary as a partial replacement for one of our virgin raw materials, shale, and also as an extender, added to our pure CEM I cement to make a more sustainable, lower carbon product known as CEM II. It is going a long way towards helping us meet the demands of our customers for a more sustainable end product.

Along with waste-derived fuels and the use of rail for product transportation, fl y ash holds the key

to a more sustainable future operation at Hope Works. In order to achieve this, we will need to bring fl y ash in by rail as well as road. At the same time as getting the most out of our rail investment, we are keen to ensure we manage and minimise the impact the rail movements have on local people. To this end, we are currently in discussions with the Peak District National Park Authority to establish how to go forward with applying for a permit to bring the fl y ash in by rail, to change the site layout to accommodate this and to install new fi lters on some of our silos for fl y ash storage.

Raw materials The majority of the raw materials we use to make cement are derived from quarried virgin sources. In order to reduce our dependence and impact on these natural resources, we are now well-practised at treating waste and by-products from other industries to replace natural materials.

Use of energy The use of energy is one of the significant aspects of the cement manufacturing process, which requires large amounts of electricity and fuels for heating the kiln process and driving the cement mills.

Our innovative approach to securing the supply of waste-derived raw materials includes the creating of Sapphire, a business division based at the Cauldon Works in Staffordshire. It is dedicated to securing the supply of waste-derived fuels and raw materials for the cement manufacturing process. We have also made considerable investment in R&D and software developments to ensure that the use of alternative raw materials is optimised.

In addition, we have strategic partnerships with four power stations to supply fl y ash as an alternative raw material and as an additive in our cement (see the section on Products). This mutually-benefi cial arrangement helps reduce the environmental impact of both electricity generation and cement manufacture.

In 2011, our Alternative Raw Material (ARM) usage rate was 7 per cent, which although slightly lower that 2010’s fi gure of 10 per cent, still represents a signifi cant proportion of our raw materials sourced from non-virgin sources. Aberthaw Works achieved a substitution rate of 17 per cent by using slag and iron oxide, both of which are by-products of the steel manufacturing industry, and fl y ash supplied from the adjacent power station.

Our resource effi ciency index still holds at 1.5kg of raw material to make 1kg/tPCE (Portland Cement Equivalent) of product. n

Fossil fuels, mainly coal and petcoke, continue to be the main source of energy for the cement kilns. However, the drive to replace fossil fuels with waste-derived fuels (WDFs) continues. As a result, the amount of coal we used to make a tonne of cement fell from 87kg in 2009 to 83kg in 2011.

The case for using WDFs is well documented and brings benefi ts in terms of the environment, economy and community.

We closely missed our 2011 target of 31 per cent WDF substitution rate, obtaining 29 per cent. This was mainly due to problems with the supply of Meat and Bone Meal (MBM) to Aberthaw, which achieved a WDF substitution rate of only 8 per cent. However, the works at Cauldon achieved a substitution rate of 49 per cent meaning nearly half of their fuel energy requirement was met by WDFs.

In 2011 Lafarge’s portfolio of WDFs included 100 per cent biomass carbon neutral content fuels such as Processed Sewage Pellets (PSP) and Meat and Bone Meal (MBM), partially carbon neutral fuels (tyres 28 per cent biomass) and non-biomass fuels such as Waste-Derived Liquid Fuel (WDLF) and Recycled Fuel Oil (RFO).

Our target for 2012 will be to drive WDF usage rates above 35 per cent. To continue this progress, several new WDFs are already permitted for use in 2012 or are in the process of being applied for, including tyres and Solid Recycled Fuel (SRF) at Aberthaw; PSP at Dunbar and SRF at Hope.

Reductions in the use of electricity has been driven by the implementation of Lafarge’s ‘10 Golden Rules of Energy Management’, which has given the sites key guidance and tools to help them reduce power use and increase power effi ciency. We have already beaten our 2012 target of a 5 per cent reduction from 2005 electricity usage by achieving a 17 per cent reduction.

Dunbar continues to increase the use of renewable energy by tapping into electricity produced from methane generated by a neighbouring landfi ll site. In 2011, over 6 per cent of their total power requirement was derived from this source. n

CASE STUDYDERBYSHIRE - HOPE WORKS

ENVIRONMENT

CASE STUDYWALES - ABERTHAW WORKSFIRST DUAL FUEL PERMIT

In early 2011, Lafarge announced plans to extend the range of sustainable waste-derived fuels used at our Aberthaw Cement Works in South Wales by applying to the agency for a dual-fuel permit. This was the fi rst time that two WDFs had been applied for at the same time.

Ahead of applying to the Environment Agency for permission to trial the use of these new fuels - used tyres and SRF – Lafarge undertook a comprehensive consultation with our local communities around the site. The aim of this community engagement programme was to ensure that all local stakeholders were given the opportunity to assess the facts about this sustainable waste derived fuel, and to gain their support for the application.

As a result of the proactive engagement, the permit variation to allow the new fuels was subsequently granted in less than eight weeks. This engagement has also resulted in enhanced community links that will benefi t both the community and the Works in the years ahead. Achievements

• Coal used to make a tonne of cement

fell to 83kg

• Replacement of 29% of coal use

• New dual permit for two WDFs granted

for Aberthaw.

2011

Targets

• Increase in use of waste-derived fuels

by 8% compared to 2011 levels

• Secure permit for PSP use at Dunbar

and SRF at Hope

• 5% reduction in electricity

consumption against 2005

performance reported as kWh/tPCE

by 2012.

2012

Achievements

• 7% Alternative Raw Materials usage

(Aberthaw Works achieved 17% usage

rate)

• Resource effi ciency index held at 1.5kg

of raw materials per 1kg cement

2011

Targets

• To increase use of alternative raw

materials and product ‘extenders’ by

10% compared with 2011 levels.2012

2000

Coal (kg/tPCE)

WDF (kg/tPCE)

140

120

100

80

60

40

20

0

2009 20112010

2000


0.6

0.5

0.4

0.3

0.1

0

2009 20112010

Tyres

50.5%

MBM

21.5%

PSP

15.4%

WDLF/RFO

12.6%

2010 2011

0.6

0.5

0.4

0.3

0.2

0.1

020092000

Coal v Waste-Derived Fuel (WDF) usage

2000

Coal (kg/tPCE)

WDF (kg/tPCE)

140

120

100

80

60

40

20

0

2009 20112010

2000


0.6

0.5

0.4

0.3

0.1

0

2009 20112010

Tyres

50.5%

MBM

21.5%

PSP

15.4%

WDLF/RFO

12.6%

2010 2011

0.6

0.5

0.4

0.3

0.2

0.1

020092000

Waste-Derived Fuels used 2011

Electricity GJ/tPCE

7%ACHIEVED RATE OF ALTERNATIVE RAW MATERIAL USAGE IN 2011

29%PERCENTAGE OF FUEL USED FROM SUSTAINABLE WASTE-DERIVED SOURCES IN 2011


Achievements

• A reduction of 26% in particulates

• A fall in NOx and CO2 levels2011

Targets

• Retain or improve 2011’s

performance in all emissions

• 20% reduction in carbon dioxide

emissions - measured against

estimated 1990 performance

• 20% reduction in emissions of

sulphur dioxide - measured against

2005 performance

• 20% reduction in emissions of oxides

of nitrogen - measured against actual

2005 performance

• 30% reduction of dust measured

against actual 2005 performance.

2012

Emissions to air One of the most significant environmental focuses of our operations is emissions to air. The Environment Agency in England and Wales, the Scottish Environment Protection Agency in Scotland and the Northern Ireland Environment Agency closely regulate our cement manufacturing activities.

All our regulators set Emission Limit Values which must be complied with by the relevant sites. In addition, we set internal targets to ensure legal compliance, but also to minimise emissions in line with the principles of Best Available Technology (BAT) .

Particulates (dust) Dust emissions can impact on vegetation where deposition occurs. Research is focused on its impact in terms of public health, particularly the capacity of the smallest fraction of particulate matter to be inhaled and cause respiratory problems. Dust emissions continued at historic lows with a reduction of 26 per cent over 2010’s performance.

Oxides of Nitrogen (NOx) NOx produces photochemical pollutants, such as ozone, in the presence of sunlight. NOx emissions can also be further oxidised in air, which contributes to the production of acid rain. Oxides of Nitrogen (NOx) emissions levels have continued to drop slightly as the optimisation of Selective Non-Catalytic Reduction (SNCR) abatement continues.

Sulphur Dioxide (SO2) Sulphur Dioxide contributes to the production of acid rain, which can cause damage to vegetation, soils, buildings and water courses. The key area to improve on in 2012 is emissions of sulphur dioxide (SO2). In 2011, these rose back to 2009 levels. This was due to naturally high content of sulphur in the raw materials at most Lafarge Cement works in the UK. As is well understood, the quarried materials significantly affect the volumes of SO2 we emit.

The rise in emissions in 2011 was not totally unexpected and operating methods have been put in place to minimise this change in raw material chemistry as we investigate longer-term solutions. These include the partial replacement of shale at Hope with fly ash which has been seen to significantly reduce emissions; and trials of lime injection at Aberthaw to act as a scrubber or neutraliser of SO2 in the later stages of the kiln process.

While the rise in emissions in 2011 is disappointing, it is important to note that the impact assessment of SO2 around our factories shows all UK and EU air quality requirements are well within the mandatory limits (see case study).

Carbon Dioxide (CO2) Carbon Dioxide and Carbon Monoxide are greenhouse gases which contribute to the process of climate change. Our carbon dioxide impact was reduced again, showing a 22 per cent decrease since 1990 in relative terms, substantially ahead of the Group target of 20 per cent n

ENVIRONMENT

2000 2009 2011TARGET ACTUAL

TARGET ACTUAL

TARGET ACTUAL

TARGET ACTUAL

2010 2011

0.27

0.070.06T0.06

0.04

2000 2009 20112010 2011

3.55

1.511.42T1.42

1.13

2000 2009 20112010 2011

2.06

0.740.60T0.57

0.74

0.3

0.25

0.2

0.15

0.1

0.05

0

4

3.5

3

2.5

2

1.5

1

0.5

0

2.5

2

1.5

1

0.5

0

2000 2009 20112010 2011

852

703 703T706 704

1000

800

600

400

200

0

Dust kg/tPCE


TARGET ACTUAL

TARGET ACTUAL

TARGET ACTUAL

2010 2011

0.27

0.070.06T0.06

0.04

2000 2009 20112010 2011

3.55

1.511.42T1.42

1.13

2000 2009 20112010 2011

2.06

0.740.60T0.57

0.74

0.3

0.25

0.2

0.15

0.1

0.05

0

4

3.5

3

2.5

2

1.5

1

0.5

0

2.5

2

1.5

1

0.5

0

2000 2009 20112010 2011

852

703 703T706 704

1000

800

600

400

200

0

NOx kg/tPCE


TARGET ACTUAL

TARGET ACTUAL

TARGET ACTUAL

2010 2011

0.27

0.070.06T0.06

0.04

2000 2009 20112010 2011

3.55

1.511.42T1.42

1.13

2000 2009 20112010 2011

2.06

0.740.60T0.57

0.74

0.3

0.25

0.2

0.15

0.1

0.05

0

4

3.5

3

2.5

2

1.5

1

0.5

0

2.5

2

1.5

1

0.5

0

2000 2009 20112010 2011

852

703 703T706 704

1000

800

600

400

200

0

SO2 kg/tPCE


TARGET ACTUAL

TARGET ACTUAL

TARGET ACTUAL

2010 2011

0.27

0.070.06T0.06

0.04

2000 2009 20112010 2011

3.55

1.511.42T1.42

1.13

2000 2009 20112010 2011

2.06

0.740.60T0.57

0.74

0.3

0.25

0.2

0.15

0.1

0.05

0

4

3.5

3

2.5

2

1.5

1

0.5

0

2.5

2

1.5

1

0.5

0

2000 2009 20112010 2011

852

703 703T706 704

1000

800

600

400

200

0

CO2 kg/tPCE

CASE STUDYAIR DISPERSION MODELLING

Instead of using our compliance with the Emission Limit Values (ELVs) prescribed in our permits as a measure of our impact on the environment, we were keen to better understand the impact our emissions have on the local air quality.

Therefore, in 2011 we carried out air dispersion modelling to assess the impact our emissions have on air quality around our Works. This specialist computer modelling work was carried out by consultants Bureau Veritas and built on work first done in 2000.

The results of the assessment allowed us to demonstrate that our current emissions have no significant impact on local air quality and will help us to identify where to focus our resources to improve our environmental performance.

CO2 calculated under different method: 2000 using UKETS calculation; 2009-2011 using EUETS methodology

26%A REDUCTION OF 26% IN

PARTICULATES EMISSIONS WAS ACHIEVED IN 2011


WaterAs a company that uses significant amounts of water, Lafarge is working with its global partner WWF to better understand the issues around water. The Lafarge Group has piloted ‘water footprint’ assessments at some of our plants and developed a plan to roll this out across the Lafarge network to proactively address our water consumption.

Waste production The generation of waste material is a significant aspect of the cement manufacturing process. The impact of this aspect of our activity has been reduced significantly over the last few years as we try to find ways to manage waste back into the process.

Many of our sites are located in areas of extreme water scarcity. In 2008 we handled one tonne of water for every tonne of cement we produced (1.01m3/tPCE). It is clear that our behaviour, water use and discharge, efficiency of use and relationships with communities upstream and downstream of our company, matter more than ever.

In the UK, we are taking action to reduce our water footprint. Our Cauldon Works has already made major changes to its water processes and now has one of the lowest footprints of our UK works. One of the environmental objectives set in 2010 was to make our water use more efficient and, in a nutshell, find ways of using less.

In 2010 we commissioned an independent water footprinting study by consultants WSP. This looked at the whole water impact of our business – from use directly on-site, through the supply chain, to customer end use.

This has shown that water is the largest commodity we handle on our sites and whilst

the largest water use is in the application of our final products, we can do more to address management on sites. This can mean savings through the development of closed loop systems (as implemented at Cauldon Works – see case study); but also through the amount of energy we use to move the water around.

Such schemes are being reviewed at our works in Dunbar, where a former quarry has been flooded as part of the coastal margin restoration scheme, and in Aberthaw, where we are investigating whether we can replace water currently abstracted from a local river with water fed from some lagoons in the adjacent quarry.

The WSP study also shows that our use of waste-derived fuels not only lowers our carbon impact, but also our water footprint.

The improvement work to date is reflected in our 2011 usage figures with average water consumed in the cement-making process reducing to 0.14m3/tPCE (Portland Cement Equivalent).

The objective for 2012 is to use the findings of the UK footprint survey to improve knowledge of water use on site, and establish where efficiencies can be made. Working with sales and marketing teams, Lafarge Cement UK will also be looking at ways of improving water efficiency for customers. n

Waste production rose slightly in 2011 (we produced 1.5kg/tPCE against a target of 1.1kg/tPCE); mainly as a result of planned kiln refractory repair work and ground works associated with capital projects. New, more modern and efficient equipment means redundant buildings and plant are often removed, generating large amounts of scrap metal waste and demolition rubble, which is easily recycled off site.

Cookstown Works also had to send a small amount of Cement Kiln Dust (CKD) waste to landfill (33 tonnes in 2011), but managed to minimise this waste material by re-introducing it back in to the process (3,726 tonnes were sent to landfill in 2005 reduced to zero in 2010).

Overall the company has dramatically reduced maintenance, construction and demolition waste. Lafarge Cement UK production sites undertook mapping exercises in order to understand what waste was being produced and why. This mapping visualised the waste hierarchy of ‘elimination’, ‘reduction’, ‘recycle’ and ‘disposal’. Focus was on stopping waste production at source, particularly production spillage.

Where waste production on site could not be avoided, the next key step was to identify the most suitable point in the cement-making process where it could be returned.

Where waste has to be sent off site, the provision of segregated and clearly identified waste containers and skips has meant that over 76 per cent of non-hazardous waste taken off site is sent for recycling or recovery.

None of the above could be achieved without the engagement of employees and contractors on site. Specific training packages and ‘tool-box-talks’ were developed, alongside visual communication media such as posters and signage. n

ENVIRONMENT

CASE STUDYSTAFFORDSHIRE - CAULDON WORKS WATER USE REDUCTION SCHEME

The water management scheme developed by the Cauldon Works team was designed to improve water efficiency, and to reduce water abstraction and the environmental impact of the manufacturing operation – by creating a closed loop water system from a restored area of the worked-out Shale Quarry.

Before the water recirculation and recycling project, the factory abstracted up to 300,000m3 of water from the river annually. Although taken under license from the Environment Agency, the abstraction and ultimate discharge of water caused some concerns within the local community, particularly during dry summers when aquatic species and ecosystems come under natural stress.

The Shale Lake now acts as the hub of the plant’s closed and re-circulating water system, providing water required for gas conditioning and industrial cooling. A floating pump is located on the Lake, pumping water over a much shorter distance to the Works’ Braithwaite Tanks, where it is stored and pumped into the Works for use.

Once used, the water is directed through the site drainage system into a large interceptor designed to collect sediments, solids or oils and greases, after which water is gravity-fed back to the Lake through a 450m long water return culvert.

This project has totally eliminated water abstraction from the river.

Other benefits of this project include:

• Reduced flood risk to the local community

• Reduced pollution risk through the provision of significant sink facility for the collection, retention, and potential treatment of pollution should there ever be a major environmental incident at the Works

• Habitat protection and creation, plus leisure and recreation facility for the community.

Achievements

• 76% of all non-hazardous waste

sent off site is recycled.2011

Targets

• Reduce waste sent off site for recovery

or disposal to less than 1.0kg/tPCE.

2012Achievements

• Average water consumed in the cement-

making process reduced to 0.14m3/

tPCE (Portland Cement Equivalent).2011

AWARDS WON

• Environment Agency Water Save Award –

Cauldon Shale Lake Project

• Environment Agency Chairman’s Gold Award –

award for best of the best of Water Save winners

– Cauldon Shale Lake Project.

Targets

• Target a 5% efficiency improvement in

water use at all sites based on 2010

levels

• Use the findings of the UK footprint

survey to improve knowledge of

water use on site to establish where

efficiencies can be made.

2012

2009 20112010

0.06

0.04

0.06

350

300

250

200

150

100

50

02002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0.07

0.06

0.05

0.04

0.03

0.02

0.01

0

Mains water usage (m3/tPCE)

<1.0kg/tPCE2012 TARGET FOR WASTE SENT OFF-SITE FOR RECOVERY OR DISPOSAL


Logistics & supply planning

Land use The three-year period up to 2011 reflects the dramatic shifts in the economics of real estate brought about by the global economic crisis. Lafarge, however, continues to invest significant time, effort and resources into its landholdings. The preceding three years have seen three major planning applications driven forward.Modernising the fleet –

lorriesHaving replaced 24 lorries in 2010, and a further 44 in 2011, we are now operating 78 per cent of our road fleet with new generation, modern, fuel efficient engines that have allowed us to achieve a 7 per cent improvement on our fleet’s average road miles per gallon (mpg) fuel use. In 2011, we narrowly missed our target of an average mpg of 7.7, achieving 7.0mpg. The target for 2012 is to reach 7.15mpg.

This modernisation and the new design ground level ‘suzie’ coupling technology has also delivered driver health and safety benefits, savings in maintenance costs, reduced vehicle downtime and increased payload. It has also lowered our fleet’s CO2 footprint.

Modernising the fleet – tankersVehicle payload continues to be optimised, increasing from 29.33 tonnes in 2009 to 29.83 tonnes for bulk tankers in 2011. The target for 2012 is 30.10 tonnes. Increasing the payload for each lorry reduces the number of vehicle movements and therefore environmental impact.

Our new design tankers deliver a substantial tare weight reduction (reduction in the weight of the vehicle itself), which subsequently allows us to increase payload by up to 1.5 tonnes, depending on the vehicle replaced. We replaced 46 of our fleet of tankers in 2011 and have replaced a further 36 since the beginning of 2012; 63 per cent of our road fleet is now modernised. Together with the benefits delivered through the improvements to our lorries, this initiative has delivered an increase of

0.5mpg on our fuel efficiency performance, which equates to a saving of around seven tonnes of CO2 per vehicle per year, translating to 500 tonnes across our new fleet*. The increase in payload allows us to reduce the number of customer deliveries, saving approximately 1,450 journeys per year across our road fleet (based on an optimum capacity).

Innovative delivery equipmentThe new design lorries with quieter delivery equipment include directional reversing alarms, that are not only an important safety device, but also utilise innovative white sound technology which minimises noise pollution for local residents in delivery areas and is approved for use during nighttime deliveries. These alarms work effectively at lower decibel ratings, containing sound only to the danger area. Being able to deliver throughout a 24-hour window allows us to optimise our route and supply planning to make the best use of resources and maximise efficiencies.

Driver training and engine managementWe are using ‘Microlise’ technology across all of our road fleet, which meant installing a small computer into our lorries to record driver and engine data, enabling satellite tracking and combining with geo-fencing to allow more efficient route planning. ‘Microlise’ is connected to an engine management system which records data on acceleration, cruise control, engine idle time, green band driving (optimum driving efficiency), harsh braking, over-revving and speeding. This data is used to calculate fuel economy and enables us to monitor performance against KPIs via driver reports. Monthly score sheets encourage safe as well as fuel-efficient driving behaviour and can used to develop training initiatives and performance incentives.

Rail transportRail freight was increased between 2009 and 2011 with 1,422k tonnes moved by rail in 2011 compared to 1,211k tonnes in 2009. In 2011, 69 per cent of all stock transferred was moved by rail and it is planned to increase to 74 per cent in 2012.

A £116,000 grant awarded to Lafarge Cement UK by the Scottish Government in 2011 will also help shift some 3,500 lorry journeys off the road and on to rail every year.

The funding has been used to help distribute bagged cement from Dunbar to Depots at Uddingston, Inverness and Aberdeen by rail rather than road.

Lafarge Cement already transports a significant amount of bulk product by rail – this development in transporting our packed product will now mean that 60 per cent of product leaving Dunbar will be by train. This has been achieved over the years by investment in Depots, railway sidings and shunting locomotives. n

Outline approval was granted for a mixed use village at our former Weardale cement works in County Durham in 2010, using solely renewable energy to provide heat and power to the new development. The project includes developing geothermal energy deep beneath the site. Investment in drilling the boreholes has proven the potential of this resource.

In Northern Ireland, planning permission was granted in 2009 for the regeneration of our 153-hectare former works and quarry at Magheramorne into a major international tourism and recreation project. In 2010 we saw the

first commercial occupation (a major television series production – Game of Thrones through US company HBO) take place on the site, and in 2011, an industrial archaeology archive centre was opened for business.

Work has also continued with WWF on developing the ultra-green ‘One Planet Living’ community concept for the residential element of the scheme. This would see Magheramorne become one of only two or three such projects accredited by WWF globally.

Significant progress has been made at Northfleet Works. During 2011, approvals were granted for the creation of a new, mixed use community, containing over 500 new homes and generating up to 1,500 new jobs; and a new bulk aggregates import terminal and the temporary use of the site by Crossrail (see case study). n

ENVIRONMENT

CASE STUDYDERBYSHIRE - HOPE WORKS RESTORATION PROJECT WINS AWARD

Lafarge Cement’s Hope Works was chosen as Runner-Up in the Mineral Products Association (MPA) National Restoration Awards for its work to transform a former fluorspar quarry, Dirtlow Rake. These Awards celebrate the work carried out by operators who ‘go the extra mile’ to restore quarried land in ways that benefit people and the environment. The Runner-Up accolade, which was achieved in a category of seven entries, was reward for work Lafarge Cement carried out in conjunction with the landowner and the Peak District National Park Authority. Although Lafarge does not now own the Dirtlow Rake land, it borders Hope Works’ limestone quarry. As a company committed to restoration and landscaping to minimise the visual impact of its operations, we felt it was important to work proactively with our neighbours to assist in restoring these former fluorspar and barytes workings. Lafarge worked closely with the Dalton family, who owned the land surface, and whose aim was to regain the land for grazing after the quarrying operation had come to an end. Not only does this area now fit back into the local landscape, but the farmer has opened a permissive path across the site and Lafarge has installed a public information board.

Achievements

• Approval granted for ambitious new

mixed-use development at Northfleet

• Winner of Sustainable Communities

and Regeneration category in the RTPI/

RSPB Northern Ireland Sustainable

Planning Awards competition.

• Runner-up in Mineral Products Association

(MPA) National Restoration Awards

2011

Targets• Dunbar – North West Quarry: Work with

operational team and RSPB to develop

proposals for a bird reserve

• Holborough Marshes – work with Kent

Wildlife Trust to achieve the enhanced

and widened marsh reserve (SSSI)

• Medway Woodlands – achieve FSC status

• Magheramorne – complete INTERREG

funding process for recreation and

tourism elements of the project

• Northfleet – work with Crossrail and its

contractors to ensure barge movements

of excavated material to Wallasea Island,

from September 2012

• Weardale – formalise managed access to

Fairy Hole Caves SSSI

2012

Achievements

• Vehicle payload increased from 29.33

tonnes in 2009 to 29.83 tonnes for

bulk tankers in 2011

• Increase of 0.5mpg in fuel efficiency

2011

Targets

• Road tanker fuel efficiency 7.15mpg

• Road tanker payload target of 30.10 tonnes

• 74% of stock transfer (between sites)

by rail

2012

CASE STUDYKENT - NORTHFLEET READY FOR REGENERATION

Planning permission was granted in 2011 for the temporary use of part of the Northfleet site as a tunnelling logistics centre to receive and recycle material arising from the boring of the Crossrail tunnels beneath central London. Track reinstatement and related work commenced during the year, ready for operations to begin when required. Crossrail will operate until 2018, and during this period, the site will enable Crossrail to move 90 per cent of the excavated material by rail. After being temporarily stockpiled, the material will be transferred to ships for beneficial use in the RSPB Wallasea Island Wild Coast project.

NORTHERN IRELAND - MAGHERAMORNE PLANS WIN SUSTAINABLE AWARD

In 2011 Lafarge’s plans to regenerate the former cement works and quarry site at Magheramorne in Northern Ireland won the Sustainable

Communities and Regeneration category in the RTPI/RSPB Northern Ireland Sustainable Planning Awards competition. The winners were announced at a ceremony at Stormont. The award was given jointly to Lafarge Cement, David Lock Associates (lead consultants and master planners) and Turley Associates (local town planning services and environmental assessment coordinators).

After nine years of intensive work on the project, the team was delighted to receive this award. From the outset, Lafarge and its partners worked with the local community and secured one hundred per cent support for what will be a very special example of sustainable development. This award is recognition of the efforts and vision for the site, and helps reinforce the commitment to turn the vision into reality.

*based on an emission factor of 2.65kg of CO2 per litre of diesel fuel used.

78%PERCENTAGE OF ROAD FLEET

WHICH IS NOW NEW GENERATION, MODERN, FUEL EFFICIENT

Favourable

450.0

Unfavourablerecovering

102.6

Unfavourableno change

0.3

Unfavourabledeclining

0.4

Partlydestroyed

0

Not assessed

98.5


Biodiversity Our operations rely on biodiversity and ecosystem services but some of our activities, especially quarrying, can be a risk for biodiversity as they have a visible impact on the landscape and on natural habitats.

But, through our operations and activities we have a commitment and opportunity to enhance biodiversity conservation and preservation on our sites, in both less sensitive and biodiversity-rich ecosystems and areas.

To support our activities we often join forces with recognised expert bodies to ensure that we protect, replace and enhance biodiversity wherever we can.

Hope Works has liaised with the Peak District National Park Authority (PDNPA) to help draw attention to the national decline in biodiversity-rich hay meadow habitats in the UK. Hay Meadows are recognized as being the most threatened habitat in the Peak District. In order to redress this issue, restoration of species-poor sites to fl ower-rich meadows is necessary through the adoption of traditional hay meadow management and the application of local hay meadow seed.

After consultation with PDNPA, Lafarge have focused on enhancing the Bradwell hay meadows and particularly an area known as South Lee, which is now one of the fi nest hay

meadows in the Peak Park and in such a good condition that it could qualify for Site of Special Scientifi c interest (SSSi) status.

Cauldon Works is a corporate member of Staffordshire Wildlife Trust. This membership helps to facilitate and encourage constructive dialogue between the Trust and Lafarge on a range of environmental issues and gives Lafarge access to the Trust’s vast knowledge and expertise in the natural environment.

The Trust has been advising Cauldon for many years on restoration, biodiversity initiatives, habitat management, bat, bird and owl boxes and a bird hide. The bird box initiative involved Waterhouses Primary School, who also make use of the bird hide through the year.

In September 2009, the Cauldon site treated the northern section of their shale quarry with green hay as part of the restoration process to create a species rich hay meadow. Staffordshire Wildlife Trust assisted by conducting soil sampling and identify a suitable local donor site to provide the green hay. The Trust is monitoring the project on an annual basis and a decision should be made this year on whether a second treatment will be required.

The site also commenced a series of trials in autumn 2010 to create a species rich calcareous grassland in the Cauldon Limestone quarry. A source of green hay was identifi ed by Staffordshire Wildlife Trust from a suitable local limestone species rich hay meadow site, the green hay was spread on certain parcels of land with different substrate preparations so that results can be monitored over time to fi nd out the best methodology for creating species rich calcareous grassland as part of the site’s limestone quarry rehabilitation plan.

Dunbar Works has also teamed up with RSPB Scotland to help manage an area of restored quarry (see case study).

Overall, the percentage of land which is classed as restored increased in 2011 to 14 per cent. The SSSis we manage have also improved in status as monitored and measured by Natural England representatives in terms of their sustainability and favourability for encouraging biodiversity. In 2011, the area of SSSi land in our ownership classed as favourable had gone up to 450 hectares of the 652 hectare total. n

ENVIRONMENT

CASE STUDYKENT - PARTNERSHIP COMPLETES CHALK GRASSLAND PROJECT

The fi rst stage of one of the largest chalk grassland restoration projects in the south-east of England has now been completed. The work is taking place on a SSSi site near Snodland in Kent, thanks to a partnership between Lafarge Cement UK and the Valley of Visions Landscape Partnership Scheme.

Some 40 hectares of Lafarge-owned land has been sympathetically cleared of scrub, using environmentally sustainable methods to reveal and restore the valuable and protected rare chalk grassland. Chalk grassland is the species-rich turf that is found growing on the chalky soils of southern England. Often considered ‘Europe’s rain forest’, it supports a diverse range of plant and animal species including the scarce Adonis blue butterfl y. A well-managed chalk grassland can contain 30-40 different species of plant in a single square metre including marjoram, wild thyme, salad burnet, rock rose, eyebright and squinancywort.

The restoration process has involved the removal of around 800 tonnes of cut scrub and trees using a novel carbon-neutral procedure. This woody material has been ‘baled’ using a specialist machine, which creates compact bundles to be taken away for use in bio-composting, rather than simply burning the material on site.

Chalk grassland requires active management to keep it in optimum condition and prevent gradual invasion by shrubs and trees. Grazing is the traditional form of management, and following clearance, 100 Hebridean sheep have been introduced across the downland. This hardy breed is highly effective at browsing on the scrub and maintaining the open grassland and the important plant species associated with it.

Achievements

• Partnerships set up or continued

with RSPB, local wildlife trusts and

national parks 2011

Targets

• Carry out a biodiversity screening and

assessment at all of our UK sites.2012

CASE STUDYSCOTLAND - DUNBAR WORKS TEAMS UP WITH RSPB TO PROTECT QUARRY’S FUTURE

Dunbar Works is close to reaching an agreement with RSPB Scotland to manage its former northwest quarry as a nature reserve. The agreement, which will include East Lothian Council and its countryside ranger service, will aim to:

• Enhance all forms of wildlife, primarily birds but to include other fl ora and fauna, plus ‘earth science’ interests

• Manage the land so it can combine various ongoing Lafarge operational activities with wildlife enhancement

• Facilitate the maximum public access possible, consistent with public safety, operational activities and conservation objectives

• Manage neighboring lands so that opportunities for mutual co-operation and co-ordination can be identifi ed.

This plan is at an early stage and has yet to be formalised, but the co-operation between the parties has already prompted a new public path and viewing area, which will be reviewed and developed further if necessary after a year.

SSSi status (hectares)

Scope of assessment: Aberthaw, Cauldon, Cookstown, Dunbar, Hope, Medway, Weardale & Westbury

RSPBPARTNERSHIPS SET UP WITH

RSPB, LOCAL WILDLIFE TRUSTS AND NATIONAL PARKS

1 Road to Zero Harm, a situation where the business has Zero Medical Injuries (MI), Zero Lost-Time Injuries (LTIs) and Zero fatalities.


CASE STUDYNORTHERN IRELAND - COOKSTOWN WORKS GLOBAL SAFETY FIRST

The spirit of total team commitment paid off for the Cookstown Works as it approached a global safety milestone. The site was heading for (and has since achieved) a decade without a Lost Time Injury (LTI). Reaching 10 years without an LTI reinforces the site’s place in Lafarge Group’s record books. Of the company’s 170 cement production sites across the world, this is the longest any site has gone without an LTI.

Through continued hard work and constant vigilance on safety in all aspects of its operation, the site team has managed to maintain its exemplary safety performance to achieve this record.

CASE STUDYNOTTINGHAMSHIRE - BARNSTONE PLANT BEST PRACTICE AWARD

Health and safetyHealth and safety is Lafarge’s number one priority and to this end, we have a single defined goal: The Road to Zero Harm1.

As well as Cookstown’s remarkable achievement,

which has become an international case study

for the business, many of our other sites have

been working hard to attain, and indeed surpass,

some very important safety milestones:

• In Northern Ireland, our Belfast Depot has

achieved six years LTI-free.

• The land and planning department has clocked

up a very impressive seven years without an LTI.

This includes all landholdings for which the team

has responsibility, including Northfleet, Weardale,

Magheramorne and Medway.

• In our ash businesses, we have had a double

celebration: ScotAsh (our joint venture with

Scottish Power) has reached nine years without

an LTI; and CelticAsh (our joint venture with RWE

NPower, based close to our Aberthaw Works), has

achieved three years without an LTI.

• Over the past few months, Aberthaw and Cauldon

Works have reached three years without an LTI,

as has the whole Sapphire business.

• The team at our National Laboratory in Cauldon

exceeded five years without an LTI.

In 2011 we saw a dramatic decline in first aid

cases, with a 31 per cent reduction in incidents

involving our employees compared with previous

years. ‘Near Miss’ reporting saw almost two-

thirds more potential issues ‘closed out’ (ie

spotted early and remedied), compared with

2010 figures. This means more unsafe acts and

conditions are being addressed and resolved by

sites – an integral part of the Zero Harm concept.

The national close out rate for 2011 was 60 per

cent. n

Lafarge Cement UK is dedicated to becoming

one of the safest companies to work for in the

world, and in 2011, we played an important part

in supporting the Group’s safety ambition.

In 2011, we carried out Risk Assessment training

for all supervisors and ran the ‘It’s your call’

supervisors’ road show and our ‘New Visible Felt

Leadership’ workshop. We have already started

developing site-specific action plans, identifying

areas for specific attention that will improve

overall health and safety performance.

Contractor management remains a key focus

and evolving our induction systems has been

a priority throughout 2011 and into 2012. A

scheme of work to improve the transport induction

programme is being undertaken as part of a joint

venture with the procurement team.

We have also developed a new Visible Felt

Leadership (VFL) training programme in

recognition of the fundamentally important role

it has played as a safety leadership tool over the

past six years.

We are now taking the opportunity to rejuvenate

the VFL process by developing the abilities of over

300 leaders to coach employees and contractors,

and raise awareness of how the VFL process can

improve performance.; this will further enhance

VFL’s impact across the business.

In 2011, the ‘Good Idea’ award scheme

continued to gain support, with a total of 47

ideas for good practice submitted by employees,

which were subsequently shared across the BU

and within the Group.

By working together toward the shared goal of

Zero Harm, we can really improve our health

and safety performance and make Lafarge one

of the safest places to work.

The roll-out of the revised electrical safety standards throughout the Group required all of our electricians to wear full Arc Flash PPE. Some of this equipment is bulky and not all works have electrical panels in switch rooms where equipment can be easily stored. To overcome this issue, the team at Barnstone Works designed Arc Flash PPE stands.

The stands can be located near the electrical panel and are designed to hold a protective rubber mat and a case containing the gloves, hoods and headlight required for working on the equipment. The stands were made by craftsmen on site, and were shared across the business unit as Best Practice, which subsequently won an award and cash prize for the team involved.

Achievements

• 31% reduction in Frist Aid incidents

involving our employees

• Two thirds more ‘Near Miss’ potential

issues resolved

Targets

• 60% reduction for LTIs

• 30% reduction in MIs

• 75% close out of Near Miss reports

• ‘Back to Basics’ Risk Assessing

SOCIAL

2011

2012

31%REDUCTION IN FIRST AID

INCIDENTS ACHIEVED IN 2011


CASE STUDYPROFESSIONAL DEVELOPMENT PROGRAMMESeveral years ago, Lafarge Cement UK senior managers recognised that the company needed to invest in increasing the pool of people in the business with technical skills and expertise. As a result, the Cement Professional Development Programme (CPDP) was developed. This scheme has helped identify future talented technicians and offer them a career ‘stepping stone’ to other roles in the company.

In September 2011, following three years of hard work, nine people completed the five-step Programme, which involved:

• A half-day launch

• ‘Exploraid’ – on-the-job learning assignments in the workplace

• Building Foundation module, including participants from all over Europe (in 2011, this involved a visit to plants in Romania for the UK-based group)

• ‘Dig-in’ – on-the-job learning assignments in the workplace

• Building Performance – an interactive course for all Lafarge participants in Europe, hosted in the UK head office for the first time.

At the same time as working to identify more technical experts for the future, the company has also looked to increase the proportion of employees with membership of a professional trade body or chartered scheme.

Lafarge gained accreditation for the CPDP through the Institute of Chemical Engineering (IChemE), which gives added weight to this internal qualification and will stand ‘graduates’ in good stead for their future careers.

EmployeesAt the end of 2011, there were 1,075 employees within Lafarge Cement UK. Male employees – 90 per cent of the workforce – were on average 44 years old, while the average age of females was 40. In terms of average staff retention, female members in our team had spent eight years with the company while men had completed closer to 15 years of service.

Training and educationPeople development within Lafarge is seen

as critical for performance and change as

it supports us in overcoming our business

challenges and achieving our strategies. A global

framework provided through Lafarge University is

tailored to local circumstances and adapted for

local delivery.

Lafarge promotes a variety of development

practices at all levels of our organisation:

• On-the-job learning – in class and through

e-learning

• Action learning – including secondment to

particular projects/assignments

• Coaching

• Knowledge sharing – transferring best practices,

and building knowledge and know-how through

teamwork and networks.

Lafarge Cement UK’s annual training is designed

to incorporate all of these practices. It includes

formal courses provided by Lafarge University

and both internal and external training providers

to meet the needs of the Group and any specific

needs of the UK cement business.

These needs are assessed through the

mandatory annual appraisal system. This

includes a section looking at the specifications

of a role alongside the skills of the individual

to ensure there is a match – and proposes

development actions where necessary.

As Lafarge Cement UK moves toward becoming

a learning organisation and its culture to one

of self-awareness and personal improvement,

development activities are increasingly supported

by on-the-job coaching and training, as well as

any formal courses as required.

In financial terms, around £600,000 was spent

on training and development in 2011; this was

on a par with 2010 and, while lower than in

previous years due to a reduction in employee

numbers, was the same investment per head.

Trade union relationships and labour/management relationsLafarge Cement UK employees are members of

a number of different unions, including GMB

and Unite the Union (the recent amalgamation

of Amicus and the Transport and General

Workers’ Union).

There are frameworks to manage labour relations

within the business, in particular within our Way

Ahead Agreement. The Agreement was originally

signed by company and union officials on 12

May 1997 and built on existing collective working

agreements. It is designed to broaden the scope

and opportunity for all employees to contribute to

the success of the company.

This is achieved through providing an environment

in which our employees can develop, acquire

additional skills, practise those skills and

demonstrate maximum flexibility. The company

is also committed to providing maximum

employment security, with harmonised terms and

conditions of employment wherever possible.

The Agreement covers all employees except

sales lorry drivers (who have their own collective

working agreement), senior management and

executives, and acts as the reference document

in outlining relationships between Lafarge

Cement UK and its established employees.

During 2011, the proposed joint venture between

Lafarge UK and Tarmac was announced. Our

collective working agreements, including the

Way Ahead Agreement, have provided us with

a strong framework to manage this period of

uncertainty and change.

During 2010 and 2011 we successfully ran

‘Partnership’ courses for over 100 employees

to ensure the spirit and philosophy remained

fresh. These workshops have proved highly

beneficial, with employees from all disciplines

and levels in Lafarge Cement UK coming

together to learn about the Way Ahead

Agreement and how working collaboratively

gives great benefit to the organisation.

Non-discriminationWe are an equal opportunities employer. Our

future success in a highly competitive world

depends on our employees and the development

of their skills and abilities.

Our objective is to provide equal employment

opportunities and employment conditions throughout

the organisation, and it is our policy that there will be

no unlawful discrimination on grounds of sex, sexual

orientation, marital status, race, colour, religion,

political affiliation, personal contacts, age or disability.

We act in accordance with the Race Relations

Act 1976, the Sex Discrimination Act 1975, the

Disability Discrimination Act 1995, the Equal

Pay Act 1970, the Fair Employment (Northern

Ireland) Acts 1976 and 1989, and relevant

regulations and appropriate amendments.

People are evaluated on the basis of ability and

performance, and we believe that all employees

should have the opportunity to develop and use

their abilities. The Government’s statutory codes

of practice for the elimination of discrimination

and for the promotion of equality of opportunity in

employment have been developed to give practical

guidance, and we use these extensively to guide

our objectives in recruitment, training, promotion,

dismissal, transfer and all other benefits and terms

and conditions of employment.

The general principles adopted by Lafarge

Cement UK extend to Northern Ireland,

although discrimination on the grounds of

religion and/or political affiliation is governed by

the Northern Ireland Fair Employment Acts and

Code of Practice. This legislation does not apply

to Great Britain.

In 2011, no incidents of discrimination

were reported. n

Achievements

• Significant focus on the development of

management coaching capability

• Introduction of a tool to build awareness of

self and others and improve relationships

between employees and teams.

Targets

• Roll out ‘Visible Felt Leadership’

training to managers and supervisors.

• Develop a mentoring programme

for young professionals and newly-

promoted supervisors and managers

• Increase focus on on-the-job learning

within individual development plans

• Implement local team development

programmes to increase employee

engagement

2011

2012

Achievements

• Lafarge’s approach to labour and

management relations and the

partnership approach with all

stakeholders including the Trade

Unions are identified as best practice.

Targets

• Maintain this approach, chiefly through

the framework established by collective

working agreements such as the Way

Ahead Agreement

• Continuing observance of the non-

discrimination policy.

2011

2012

£600,000AMOUNT SPENT ON TRAINING IN 2011

SOCIAL


Corporate social responsibility In 2011, we continued to demonstrate the responsible role we play within the communities in which we operate. Our policy of supporting suitable community groups and initiatives, and our commitment to open communications, was reinforced right around the UK through a variety of activities.

A comprehensive public consultation exercise

was carried out by the team at Aberthaw Works in

South Wales around plans to apply for permits to

introduce two additional sustainable waste-derived

fuels. The newsletters, exhibitions, community

liaison committee and stakeholder and media

contacts enabled Lafarge to explain all the facts

surrounding these new fuels – end-of-life tyres and

Solid Recovered Fuel (SRF).

The consultation work also reinforced the

environmental and economic benefits these fuels

offered to a plant where fuel costs account for

around a third of the annual production bill.

A similar consultation exercise was employed for

the application to use a new waste-derived fuel

at our Dunbar Works in Scotland. A new website

was established to give further transparency and

access to information. The site

(www.lafargeconsultations.co.uk) allows anyone

to view all the consultation materials first-hand,

and also provides Lafarge with an easy way to

keep the community up-to-date on the progress

of fuels applications.

There was a continuing partnership between

a head office-based team and Brays School in

Birmingham. A team-building exercise resulted

in the establishment of a multi-sensory garden for

the pupils, all of whom have significant physical

and health challenges. And in 2011 the team

raised funds for a company to come to the school

with animals and birds.

Educational links continued with a range of head

office and plant-based initiatives. At Hope Works in

Derbyshire we hosted visits from over 700 visitors

in 2011, including school pupils and students from

across the country.

At Aberthaw Works, two of the laboratory team’s

members spent a day at a local secondary school

helping students gain a better understanding

of how chemistry plays an important role in the

world of work. And a head office team helped

a group of GCSE students prepare for their

exams by holding a Maths and Communications

Challenge Day at their school.

Meanwhile, the charity committee at Cauldon

Works in Staffordshire continued to support a

range of local organisations including the First

Responders and local swimming and football

groups.

Our approach to Corporate Social Responsibility

and stakeholder relationships is consistent with

that of the Lafarge Group internationally. The

continued development of Community Liaison

Committees around most of our plants provides

us with a robust two-way communications

channel and an opportunity for us to continue

to look for ways in which we can operate as a

responsible neighbour in all our communities. n

CASE STUDYSCOTLAND - DUNBAR WORKS FUEL CONSULTATION

SOCIAL

A picture of Matt Petty – Dunbar Works’ optimisation manager – holding a handful of PSP (see right) proved the unlikely inspiration for a story in Scottish national paper The Sunday Post.

The photo was taken to publicise the community consultation around a proposal to use PSP as the latest waste-derived fuel at Dunbar. Reporter Alan Shaw was so interested in this way of reducing the carbon footprint of cement while helping Scotland towards its zero waste targets, he wanted to visit the site and write a special story.

All possible concerns such as smell, transport and emissions were covered over the two-month consultation, and feedback – almost all positive – was included in the application to evaluate PSP which was submitted to the Scottish Environment Protection Agency (SEPA) at the end of October. As part of the consultation process, Dunbar Works’ community liaison committee went on a fact-

finding mission to Cauldon to see how PSP has been used there over the past eight years.

During this period, the Works liaison committee and local stakeholders were briefed about the plans, 6,000 newsletters were distributed, and three exhibitions were hosted by the Works team and representatives from Sapphire, our energy recovery company. For the first time, the company also hosted the information on a website – www.lafargeukconsultations.co.uk.

CASE STUDYKENT - RELAUNCHING BEACON WOOD COUNTRY PARK

‘Creepy Crawlie’ mini beast hunts and environmental arts and craft demonstrations were among a range of activities specially designed to keep children amused and re-launch the Beacon Wood Country Park in Kent. Lafarge Cement UK (owner of the site) teamed up with Bean Parish Council and Groundwork Kent and Medway Trust to breathe new life into the Country Park and celebrate its official re-opening.

A new five-year Management Plan will be used to manage and enhance Beacon Wood Country Park for local people and for wildlife. Conservation and community features include remnants of ancient woodland, scrub habitat, grassland, areas of silver birch colonisation and associated fungus and lichen flora.

Beacon Wood represents a valuable countryside recreation resource for the village of Bean and the surrounding area. The Park will be managed and maintained to the highest possible standard for visitors, while ensuring both the protection and enhancement of flora, fauna and wildlife native to the site. It will also offer opportunities for environmental education and awareness through interpretation of the site and by planning a range of events and activities during the year, which will cater for many ages and interests.

Achievements

• Five community newsletters issued

(Hope 1, Cauldon 1, Aberthaw 2,

Dunbar 1) with a combined circulation

of more than 18,000

• Two public consultation exercises

held – Aberthaw dual fuel application;

Dunbar Processed Sewage Pellets

(PSP) application

• 10 Works Community Liaison

Committee meetings held (Aberthaw 2,

Hope 3, Dunbar 5)

• More than £15,000 donated to

good causes.

2011

Targets

• Establish Community Liaison

Committee at Cauldon Works

• Continue to hold regular Liaison

Committee meetings at all Works

• Issue a minimum of one Spotlight

newsletter for each Works

• Carry out community perception

surveys around our cement works.

2012

700+VISITORS WHO CAME TO HOPE WORKS IN 2011

10TOTAL OF COMMUNITY LIAISON COMMITTEE

MEETINGS HELD IN 2011


Lafarge Cement launched a cement recycling

scheme at the Barnstone Plant for its packed

products in a move to help the construction

industry cut waste going to landfill. Disposal of

un-saleable construction materials has posed a

growing problem for merchants, who are faced

by escalating landfill taxes.

In addition, CO2 arising from the collection was

offset by a pledge to plant a tree in the vicinity

of its Barnstone Plant, for every tonne of

cement recycled.

This free-of charge service was the first phase

of continually looking for ways to reduce the

environmental impact of our packed products. n

ECONOMIC

CASE STUDYPRODUCTS IN TUBS

Over recent years our product range has evolved into a more versatile selection, with tailor-made products and packaging becoming more important to our customers. Through research with customers in a small niche market (plumbers, engineers etc), we identified that we needed to be able to offer products in smaller; more manageable packaging for certain jobs. After investigating packaging options, Lafarge launched a range of 2.5kg and 5kg tubs.

Demonstrating one of the key aims of Extra Mile, from initial customer research to product launch in stores, this project took only eight months (March to November). The tubbed products (Multi-purpose Concrete; Extra Rapid and new product Quick Repair Concrete) build on the successful principles of plastic-packed Mastercrete – reducing waste and improving weather resistance. The tubs can be resealed for use over a longer period of time, or customers can mix the product in them.

The tubs also deliver a few significant advantages:

• mainstream cement products offered in tubs

• application images available on the packaging

• the packaging includes a ‘QR code’ which enables smart phone users to quickly access application instruction videos on YouTube.

Achievements

• Supply chain awarded BRE 6001

Responsible Sourcing Standard

• Won the British Precast’s

Sustainability Champion Award

for a third year running

• 8% of pallets recycled against

a target of 10%.

2011 Targets

• 49% of grey cements sales to be CEM

II, III or IV

• 10% of pallets recycled

• Reduce non-recyclable packaging by

10%

• 10% of timber and paper to be derived

from FSC or PEFC certified sources.

2012

Products and servicesThere are different standards for classification of Portland cement. Within the European EN-197 standard, cement types CEM I, II, III, IV, and V relate to different compositions while maintaining the highest performance such as heat of hydration, sulphate resistance and strength. All of our packed cement products have now been changed from CEM I to CEM II specification (a stronger product), with the change in Dunbar Mastercrete taking place during 2011.

Building upon the success of the CEM II

range of Portland-limestone and Portland-fly

ash cements which reduce the CO2 content

by around 30 per cent compared with

Portland cement, Lafarge launched two new

products, Pozzolanic and the award winning

Cemergi® with 45 per cent and 55 per cent

lower embodied CO2 than Portland cement

respectively.

Despite a dip in last year’s sales as a result

of challenging trading conditions, market

penetration of the low CO2 grey cements

continues to grow from 51 per cent in 2009 to

54 per cent in 2011.

Proportion of low CO2 cement sales

2009 2010 2011 2012

Budget 41% 51% 55% 49%

Actual 51% 57% 54% -

Cemergi was launched during the 2011

Ecobuild exhibition at Excel in London and

comes as part of Lafarge Cement’s drive to

support the construction industry in its use of

more sustainable products, providing cost-

effective solutions that respond to demand for

greener building materials.

As a CEM III/A bulk blast furnace cement,

Cemergi is manufactured using traditional

Portland cement combined with a minimum

of 50% ground blast furnace slag, which is a

by-product of the iron and steel industry, and

a small amount of limestone. The addition

of these materials brings the dual benefits

of product sustainability and improved

performance.

Lafarge will continue to reduce the impact of

the packaging used for our products and has

set three challenging targets for 2012:

• To reduce volume of packaging

• To develop reusable packaging (see the case

study on tubs)

• To increase the stewardship of paper and timber

products used for packaging by 10% in 2012. n

54%PERCENTAGE OF TOTAL SALES OF GREY CEMENT WHICH WAS LOWER

CO2 PRODUCTS IN 2011


Supply chainIn 2011, Lafarge extended the assessment and evaluation of its supply chain to cover ethical and social issues – criteria increasingly stipulated by end-users such as architects and quantity surveyors during the specifying phase of development.

The supply chain was then externally assessed

and awarded BES 6001 Responsible Sourcing

standard, and Lafarge became the first UK

cement manufacturer to have its entire portfolio

and operations awarded this standard.

The ‘Very Good’ classification applies to all bulk

and packed cements from Lafarge Cement as

well as the packed ready-to-use range. We also

achieved ‘Good’ classification for our bulk loads

of BS EN450-1 Fly Ash, meaning that products

supplied to ready mix, precast or packed

customers are now responsibly sourced.

The BES 6001 framework standard is an

independent certification scheme, launched

at the start of 2009 to assess responsible

sourcing policies and practices throughout

the construction product supply chain. The

universal rating system enables architects,

specifiers and builders to more easily meet

sustainability targets and move towards zero

carbon buildings.

To meet the scheme’s strict criteria, Lafarge

Cement had to demonstrate compliance in three

categories: organisational management, supply

chain management, and environmental and

social issues. Products were assessed under a

range of criteria relating to quality, emissions,

raw material minimisation, biodiversity and

supporting management systems.

The certification demonstrates our commitment

to reducing CO2 and waste to landfill, by

recovering and re-using other industries’

waste by-products in our cements. But more

importantly, it supports our customers in

boosting their own sustainability credentials.

In 2011, Lafarge Cement won the British

Precast’s Sustainability Champion Award for a

third year running. The award recognises the

important contribution made by Lafarge Cement

to the precast concrete industry’s sustainability

strategy. Judged by the British Precast

Sustainability and Environment Committee, the

award is granted by industry peers for Lafarge

Cement’s investment and achievement in

sustainability and environmental performance.

The judges highlighted Lafarge Cement’s success

in lowering CO2 emissions through investing

in waste-derived fuels, leading the industry in

composite cements, improving environmental

performance and for sustainability initiatives

spanning recycling, supply chain improvement

and waste management.

Lafarge Cement also won the prestigious

Supplier of the Year award at the 2010 Builders’

Merchants News Awards for Excellence. The

annual awards recognise the success of both

merchants and suppliers across the construction

industry. The awards were judged by the heads

of the key associations, federations and societies

for builders’ merchants. Lafarge Cement was

recognised for its achievements including

its pallet and cement recycling scheme, its

innovative point of sale marketing materials and

its improvements to the supply chain. n

ECONOMIC

ComplianceAll our cement works are permitted by Part A Environmental Permits issued by the Environment Agency, SEPA and NIEA. Our grinding stations and some Depots are regulated by Part B Environmental Permits issued by Local Authorities, and the planning permissions associated with our quarries also regulate how we must operate.

In 2010, all our Part A Environmental Permits were revised and re-issued to bring them in line with the new BREF (Best Available Technique Reference) document. All Part A permitted sites are now working to ensure that the timetable specified in the new permits is adhered to with regard to the implementation of new lower Emission Limit Values (ELVs).

Improvements in our environmental performance have been driven by the annual Works Managers’ Environment Commitments introduced in 2009, which is highlighted by the reduction in the number of complaints received and the number of regulator notifications made.

CASE STUDYLRQA TRAINING

Our Health and Safety, Environment and Quality coordinators are now better equipped with the skills to act as lead auditors, thanks to a tailor-made training package developed by Lafarge in conjunction with Lloyds Register Quality Assurance (LRQA).

The Lead Auditor Training was designed around our own Integrated Management Systems (IMS). Focusing mainly on environment and ISO 14001, the course considered the specific differences between this and ISO 9001 (Quality) and 18001 (Safety), allowing delegates to become competent to audit against these standards, cross-functionally, within Lafarge.

The training used much of Lafarge’s own documentation, system elements and templates, which helped the delegates gain confidence and familiarity with the IMS tools and techniques, whilst being able to critically assess their suitability and effectiveness.

99%ABERTHAW WORKS ACHIEVED A 99% COMPLIANCE SCORE FOR

MONITORING EMISSIONS TO AIR

LAFARGE CEMENT UK 2011 ENVIRONMENTAL PERFORMANCE DATA

2011 Works EMAS Data

UNIT Aberthaw Cauldon Cookstown Dunbar Hope TOTAL

PRODUCTION Clinker PCE Tonnes 496,738 921,482 265,593 677,152 1,405,101 3,766,066

Cement Tonnes 484,818 951,510 270,081 705,231 1,379,568 3,791,208

RAW MATERIALS Limestone/chalk Tonnes 570,430 1,170,161 360,524 804,000 1,603,554 4,508,669

Shale/clay Tonnes - 204,029 24,862 32,252 275,306 536,449

Sand Tonnes - 27,090 - 36,672 - 63,762

Gypsum Tonnes 25,645 44,503 16,007 23,901 64,969 175,025

Other Tonnes 122,415 31,465 722 81,341 165,792 401,735

Total Tonnes 718,490 1,477,248 402,115 978,166 2,109,621 5,685,640

FUELS Fossil fuels Tonnes 43,853 59,325 31,032 55,738 121,394 311,342

Tyres Tonnes - 32,769 - 15,235 21,321 69,325

WDLF/RFO Tonnes - 8,197 280 8,745 - 17,222

PSP Tonnes - 18,867 - - 2,240 21,107

MBM Tonnes 5,853 - - - 23,634 29,487

SRF Tonnes - 1.3 - - - 1.3

Total WDF Tonnes 5,853 59,835 280 23,980 47,195 137,143

%WDF subs % 8.0 49.2 0.01 31.2 26.0 28.6

Electricity kwh 54,526,031 109,251,406 33,087,178 64,006,790 171,311,424 432,182,829

Green electricity kwh - - - 125,452 - 125,452

Total Energy GJ 1,525,319 3,151,229 931,421 2,144,799 4,867,009 12,619,777

EMISSIONS Particulates Tonnes 19.9 27.1 25.5 62.3 32.7 167

SO2 Tonnes 320 200 321 595 1,359 2,795

NOx Tonnes 584 133 623 671 2,246 4,257

CO Tonnes 254 2,525 268 3,229 3,702 9,978

CO2 Tonnes 323,933 632,364 201,087 499,231 994,770 2,651,385

WATER USE Mains m3 64,319 20,088 4,383 44,556 5,011 138,357

Process m3 47,294 - 49,748 221,418 55,006 373,466

WASTE CKD Tonnes - - 32.8 - - 33

Hazardous Tonnes 34.6 188 5.4 52.5 122 403

Non-hazardous Tonnes 789 634 136 666 3,189 5,413

COMPLIANCE Notifications Number 2 3 4 4 25 38

Complaints Number 20 12 1 14 16 63


Air Emission Monitoring InfrastructureAs described in this Report, the emissions to air from our factories are one of the more significant environmental impacts of our operations.

We use a combination of Continuous Emission Monitors (CEMs) and extractive testing carried out by MCERTs accredited organisations to ensure our emissions are below the ELVs set in our permits. This is backed up by robust training and system procedures for the operators who control our processes.

The whole monitoring regime is supported by Lafarge Cement UK’s national air monitoring technician, who oversees the management of the air emission-monitoring infrastructure across the UK.

Our positive approach to emission monitoring and control was demonstrated by Aberthaw Works achieving a 99 per cent compliance score for emissions to air at its last Operator Monitoring Assessment carried out by the Environment Agency (Wales).

ComplaintsAll sites operate established complaint management procedures. This, combined with active stakeholder engagement, robust Community Liaison Committees and active community engagement (for example our waste-derived fuel pre-consultation exercises) has led to a year-on-year decrease in the number of complaints received by our operational teams.

All complaints we do receive are investigated in an open, direct, and – most importantly – timely manner. n

ECONOMIC

Achievements

• Aberthaw Works achieved a 99%

compliance score

• 53% reduction in complaints since

2009 receiving 27 less than our

2011 objective

• 53% reduction in notifications to

our regulators since 2000

2011

Targets

• Reduce notifications to the regulator for

breaches of Emission Limit Values to

less than 10.

• Reduce the number of complaints we

receive to less than 50

• Provide cement-manufacturing training

for sector regulation officers.

2012

2000

Complaints

Notifications

140

120

100

80

60

40

20

0

2009 20112010

Complaints and notifications

Compliance

53%REDUCTION IN COMPLAINTS

RECEIVED SINCE 2009

LAFARGE CEMENT UK 2009-2011 ENVIRONMENTAL PERFORMANCE DATA LAFARGE CEMENT UK 2011 ENVIRONMENTAL PERFORMANCE DATA

2011 Barnstone EMAS Data*

Unit Data

PRODUCTIONCement Tonnes 182,567

RAW MATERIALSSand Tonnes 116,223.00

Gypsum Tonnes 534.00

Ferrosulphate Tonnes 55.00

FUELOil Litres 1,889,898.00

Electricity Tonnes 7,296,466.00

ENERGYOil GJ 70,687.09

Electricity GJ 26,267.28

EMISSIONS TO AIRParticulates Tonnes 6.90

WATERMains m3 5,174.00

WASTEHazardous Tonnes 2.81

Non-hazardous Tonnes 590.55

COMPLIANCENotifications Number -

Complaints Number 1.00

2009-2011 EMAS Summary

UNIT 2009 2009 2010 2010 2011 2011

Actual unit/tPCE Actual unit/tPCE Actual unit/tPCE

PRODUCTION Clinker PCE Tonnes 3,278,012 3,467,571 3,766,066

Cement Tonnes 3,139,249 3,425,384 3,791,208

RAW MATERIALS Limestone/chalk Tonnes 3,797,449 1,158 3,961,813 1,143 4,508,669 1,197

Shale/clay Tonnes 484,135 148 528,764 152 536,449 142

Sand Tonnes 50,181 15.3 53,548 15.4 63,762 16.9

Gypsum Tonnes 146,350 44.6 156,049 45.0 175,025 46.5

Other Tonnes 477,062 146 535,056 154 401,735 107

Total Tonnes 4,955,177 1,512 5,235,230 1,510 5,685,640 1,510

Raw material efficency kg 1.5 1.5 1.5

FUEL Fossil fuel Tonnes 285,104 87.0 312,881 90.2 311,342 82.7

Tyres Tonnes 54,060 16.5 60,267 17.4 69,325 18.4

WDLF Tonnes 9,301 2.8 8,738 2.5 17,222 4.6

PSP Tonnes 10,983 3.4 6,929 2.0 21,107 5.6

MBM Tonnes 18,414 5.6 25,886 7.5 29,487 7.8

SRF Tonnes 0.0 0.0 2,650 0.8 1.3 0.000

Total WDF Tonnes 92,758 28.3 104,470 30.1 137,143 36.4

Electricity kwh 453,951,896 138 421,140,859 121 432,182,829 115

Energy efficiency GJ 11,215,897 3.4 11,992,354 3.5 12,619,777 3.4

EMISSIONS TO AIR Particulates Tonnes 222 0.07 209 0.06 167 0.04

SO2 Tonnes 2,417 0.74 1,976 0.6 2,795 0.74

NOx Tonnes 4,939 1.5 4,911 1.4 4,257 1.1

CO Tonnes 7,235 2.2 8,593 2.5 9,978 2.6

CO2 Tonnes 2,306,922 704 2,448,404 706 2,651,385 704

WATER USE Mains m3 185,943 0.06 206,282 0.06 138,357 0.04

Process m3 2,534,714 0.77 4,031,398 1.16 373,466 0.10

Total m3 2,720,657 0.83 4,237,680 1.22 511,823 0.14

WASTE CKD Tonnes 0.00 0.00 0.00 0.00 32.8 0.01

Hazardous Tonnes 493 0.15 314 0.09 403 0.11

Non-hazardous Tonnes 4,885 1.5 3,512 1.0 5,413 1.4

Total Tonnes 5,378 1.6 3,826 1.1 5,849 1.5

COMPLIANCE Notifications Number 41 0.01 50 0.01 38 0.01

Complaints Number 134 0.04 101 0.03 63 0.02

BIODIVERSITY Area m2 8,140,259 2.5 8,111,931 2.3 8,162,517 2.2

Figure amended as data incorrectly reported in 2009 report. New figure verified as correct.

Figure amended as data incorrectly reported in 2010 report. New figure verified as correct.

Total area of disturbed land. Scope: Aberthaw, Cauldon, Cookstown, Dunbar, Hope, Medway, Northfleet, Weardale & Westbury


2011 Blending Plants and Depots EMAS Data*

Unit Westbury Theale Liskeard Dewsbury Uddingston Seaham Northfleet West Thurrock Scotash Belfast Manchester Aberdeen Inverness Total

PRODUCTIONLCUK GB Sales by all depots Tonnes 137,620 215,265 47,412 184,519 163,535 127,473 144,851 626,194 145,193 28,926 1,405 52,865 42,035 1,917,292

RAW MATERIALSAsh Tonnes 3,622 0 7,546 10,169 0 10,564 185 0 95,621 0 2,692 0 0 130,398

ENERGYElectricity kwh 1,952,722 651,509 80,090 596,638 349,847 360,080 2,286,063 5,206,077 2,339,460 101,744 54,680 104,881 101,129 14,184,919

WATER CONSUMPTIONWater m3 - 96 4,614 - - - - 132 12,639 98 - - - 17,579

WASTEHazardous Waste Tonnes 0.28 0.0 0.0 0.9 0 0 0 1.3 0.35 0 0 0 0 2.8

Non Hazardous Waste Tonnes 227 37.6 5.5 53.9 6.3 20.5 0 463.5 15.50 10.10 0 9.54 4.38 854

COMPLIANCEComplaints Number 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Non-Cementitious Sales

*Data verified but not included in EMAS core indicators.

WaterWhere indicated (-) water data not provided

West Thurrock Water usage for 2011 calculated by averaging three months water usage from site and using this average throughout the Year.

Theale water usage for 2011 calculated by averaging water usage in Dec and using this average throughout the Year.

Sapphire 2011 EMAS Data*

Unit Dunbar/Glasgow Manchester Oldbury/Ketton West Thurrock Total

PRODUCTIONTyres Recieved Tonnes 14,741 12,230 13,333 16,806 57,111

WASTETyre Waste Tonnes 10 13 2 0 25

Hazardous Waste Tonnes 0 115 1 0 116

Non Hazardous Waste Tonnes 3 19 4 12 39

LAFARGE GROUP SUSTAINABILITY REPORT 2011 DATA LAFARGE GROUP SUSTAINABILITY REPORT 2011 DATA


Values and GovernanceThe Code of Business Conduct sets the standards of behavior for all employees and executives of the Group as well as for suppliers of goods and services. The Group also set up a Competition Compliance Program. It includes awareness building and training for employees and verifi cation at business unit level (96% of them were tested at the end of 2011). The Board of Directors is composed of 17 members, 10 of whom are independent, including three women. Finally we recognize the UN Declaration on the Rights of Indigenous People, the OECD Principles of Corporate Governance, and the UN Global Compact. See pages 6 to 8.

Public Positions We are committed to responsible lobbying based on transparency, stakeholder dialogue and in coherence with the Group’s strategy and values; to ensure that the Group’s long-term interests are taken into account by public authorities. In 2011, our lobbying actions within the European Union focused primarily on climate change, energy effi ciency and resource effi ciency issues. See pages 8 and 9

People development and social dialogueDiversity and Inclusion is a key enabler of the Group strategy and is based on 3 mains levers: Behaviors and mindset, communication & awareness and business and HR processes. Another key element of our social strategy is employee ownership; our 2011 LEA share ownership plan reached a subscription rate of 44 per cent, versus 53 per cent in 2009. Moreover, we endeavored to limit or postpone headcount reductions, and to assist every affected employee as prescribed in our Employment Policy. See pages 4 and 17 to 19

Health and SafetyLafarge’s objective is to reach zero incidents over the long-term and across all units, for employees and for contractors. Even though Lafarge has continued to make progress, we still had 34 fatalities in 2011 which is deeply regrettable. To avoid future fatalities, the Group is producing “Key Learnings” for each fatal incident that are shared within every operation. See pages 4, 20 and 21

CommunitiesFor Lafarge’s 2012 Ambitions, the priority was placed on ensuring that the key personnel responsible for stakeholder engagement were trained on the Group’s methodology. A key area was to ensure that our sites engage in effective programs with their communities. Lafarge is also maintaining or creating many partnerships to help it evolve its approach and rethink the way it can interact with other organizations. See pages 4, 22 and 23

Sustainable ConstructionIn order to offer solutions upstream in the value chain, the Group focuses on innovation and carries out research in collaboration with architecture firms and engineering offi ces. Lafarge is present in numerous bodies and working groups on an international and local level, to contribute to progress towards more sustainable methods of construction, in its sector and beyond. See pages 24 and 25

Climate ChangeLafarge is implementing a comprehensive strategy contributing to the overall objective of limiting the Earth’s temperature increase to a maximum of 2°C. The Group has set three new targets for 2015 and 2020, within the framework of its partnership with WWF. They encapsulate the entire construction chain. See pages 5 and 26 to 28

Industrial Ecology and RecyclingLafarge is adding value to waste by using it as an alternative fuel or material. In 2011 we recorded an increase in the substitution of fossil fuels, with 13 per cent of our energy needs for cement production met by alternative sources, such as waste and biomass. We made progress on the biomass stream which represented 36 per cent of total alternative fuels in 2011. Regarding raw material substitution, we have increased use by 2.3 million tons1, mainly due to fi nished product substitutes, such as slag and fl y ash.(1) throughout this report, tons refers to metric tons (1,000 kilograms). See page 29

Managing our EmissionsThe Group has exceeded its reduction target for NOx, SO2 and Dust. For persistent pollutants, Lafarge has continued its 10-year work with WWF to understand and reduce mercury and dioxin/furan emissions from our kilns. One of the biggest improvements in 2011 is the quality of the data we are collecting, particularly from emerging countries, after the release of a new measurement protocol at the beginning of 2011. For all emissions, the calculation method has been modifi ed for current and past data to refl ect the latest CSI protocols. See pages 5, 30 and 31

Biodiversity at our Sites2011 was the International Year of Forests, a campaign which celebrated and raised awareness of the importance of forests in our societies. This past year we mapped all of our quarries and used IBAT to confi rm the identity of the high biodiversity locations. We worked in partnership with WWF International to develop a guidance document for our operations and a leafl et for our visitors. See pages 5, 32 and 33

Water FootprintA quarter of our cement production takes place in areas where there is high water stress. In 2011 Lafarge progressed further in its understanding of the water footprint and has set best practices for water management. Several installations of rainwater harvesting have been promoted as a model to limit the use of fresh water. In 2011 the water program was also expanded to aggregate quarries. See pages 34 and 35

Sustainability RatingsWe are recognized for inclusion in the Dow Jones Sustainability Index with an overall score of 76 per cent. We have also been reconfi rmed for inclusion in both the Ethibel PIONEER and Ethibel EXCELLENCE Investment Register. For the Carbon Disclosure Project, Lafarge is ranked 10th across industries worldwide and is a member of the Carbon Disclosure Leadership Index for the 6th year running.

The year at a glanceLafarge’s presence in the world

World leader in building materials, Lafarge holds top-ranking positions in each of its business lines. With a diversified and balanced geographic portfolio and 68,000 employees in 64 countries, Lafarge is at the heart of global growth, supporting developing economies and responding to the tremendous need for housing and infrastructure in emerging countries.

CementWorldwide market position:World Leader - Cement, hydraulic binders and lime for construction, renovation and public worksEmployees: 43,400Revenues: 9,975 million eurosCountries: 58Number of plants: 166

Aggregates & ConcreteWorldwide market position:N°2 for Aggregates and N°4 for Concrete - Ready-mix and precast concrete products, asphalt and paving for engineering structures, roads and buildingsEmployees: 23,200Revenues: 5,227 million eurosCountries: 35Number of plants and quarries: 1,438

World map of Lafarge’s presence as at December 31, 2011 (plants and sales offices).

15,284

593REVENUES

(IN MILLION EUROS)

NET INCOME (IN MILLION EUROS)

GROUP REVENUES BY DIVISION

Aggregates& Concrete

34.2%

Cement

65.8%

LAFARGE GROUP SUSTAINABILITY REPORT 2011 DATA LAFARGE GROUP SUSTAINABILITY REPORT 2011 DATA


NEW TARGETS WILL BE ANNOUNCED IN 2012

TARGET Deadline 2011 Performance

2010 Performance

WHY IS LAFARGE PURSUING THIS AMBITION? WHAT WILL CHANGE? HOW ARE WE PROGRESSING AGAINST THIS AMBITION?

MANAGEMENTOn safety, reduce the employee Lost Time Injury Frequency Rate (LTIFR) for Lafarge employees to 0.94 or below in 2010.

2010 0.63 0.76 We continue to make progress with both our own employees and with contractors. Our contractor’s LTIFR has also improved to the point where it also is better than the original target we set for our own employees.

Continue to check the implementation of our Competition compliance program in our business units. 100 per cent of all significant business units tested for compliance by end of 2010.

2010 96% 96% In past years we have reported on the implementation of our competition compliance program in all countries where we operate, with a special emphasis on competition trainings and verification of proper implementation by our business units. We now continue to follow-up this worldwide program with a self-assessment competition compliance questionnaire, which also includes Code of Business Conduct matters (such as anti-corruption rules). 100 per cent of our operations submitted this survey in 2011, allowing the Group to consolidate all results and monitor compliance with our high business ethics standards. Further tools will be established in 2012, including a worldwide e-learning program dedicated to Code of Business Conduct at large.

Manage and improve our local stakeholder relationship management by: • training 100 per cent of units in the local

stakeholder relationship methodology;

• full reporting of the three new indicators.

Three additional targets (undertaking self-assessment on stakeholder relationships, launching a dedicated intranet site and providing an internal audit screening tool) were completed in 2009.

2012

2009

Cement76%A&C: 80%

done

Cement81%

done

Training workshops focus on the key drivers for stakeholder engagement: Cement Plant Managers and Aggregates & Concrete (A&C) Area/Regional Managers. In 2011, over 260 people participated in trainings dedicated to this topic. For A&C, there is an improvement from the 22 per cent reported in 2009 (no figure was reported for 2010 due to realignment undertaken during that year). The slight decrease for trained Cement Plant Managers likely reflects a change in personnel. The other objectives have been previously completed.

On customers, by 2012, the Group will achieve €3bn annual sales in new products.

2012 €2.3bn €1.9bn Although all sales were affected by the recession, sales of new products showed more resilience in the developed countries where they are primarly sold.

Reach 20 per cent of women in senior and executive management (Lafarge Hay grades 18+) by 2012.

2012 15.8% 13.5% At end of 2011, 15.8 per cent of positions in senior management were held by women, a 16 per cent improvement over 2010. Although it may be difficult for us to reach our target of 20 per cent by end-2012, our program of inclusion which is used to attract and maintain women in both senior management and throughout the organization is making great progress.

SOCIALBy end 2010, establish a comprehensive Group-wide occupational health program including, at a minimum, regular medical examinations.

2010 Completed Plan rolled-out A protocol for Health Assessment (HASOP) has been developed and broadened in all business units to provide a standardized approach to risk-based medicals. This protocol will ensure that the relevant occupational and personal health risks are identified and managed.Assessments are now under implementation at business units level, and should be finished by 2014.

For HIV/AIDS and malaria, by end 2010, Lafarge will have extended to major emerging countries where it operates, its best practice implemented in Africa.

2010 Completed Completed Based on its experience in Africa, the Group has developed a manual and user guide to assess and manage relevant public health issues. Our public health methodology has been extended to Russia and Ukraine, where we have broadened our approach to reflect better the public health issues that are prevalent in these countries.

Progress against our sustainability ambitions

We are entering the last year of our Ambitions 2007-2012 cycle.Many of these objectives have already been achieved, but a fewrequire further progress.

(1) Sensitive areas are defi ned as quarries within 0.5km of IUCN I-VI, Ramsar, IBA, Natura 2000. (2) Net CO2 emissions are the gross emissions less the emissions that come from burning waste.(3) The change from the fi gure reported in 2010 is due to a change in defi nition of active quarries.

Progress on our Sustainability Ambitions: Fully achieved Partially achieved In progress

TARGET Deadline 2011 Performance

2010 Performance

WHY IS LAFARGE PURSUING THIS AMBITION? WHAT WILL CHANGE? HOW ARE WE PROGRESSING AGAINST THIS AMBITION?

ENVIRONMENTHave 100 per cent of our sites audited environmentally within the last four years.

Permanent 88% 89% We need to progress further to reach this objective.

By end 2010 reach a rate of 85 per cent of quarries with a rehabilitation plan complying with Lafarge standards.

2010 86% 84.5% We reached this objective in 2011.

By end of 2010, all our quarries will have been screened according to a criteria validated by WWF International.

2010 97% 91%(3) Building on the screening program, in 2011 Lafarge mapped the location of all its quarries and screened them to confirm locations that are inside internationally protected areas or within 500m of them using IBAT (Integrated Biodiversity Assessment Tool).

Sites in sensitive areas(1) will have developed a site biodiversity program by 2012.

2012 49% Use of the IBAT tool resulted in a reassessment of the list sites in sensitive areas.

By end 2010: • cut our worldwide net(2) CO2 emissions

per ton of cementitious by 20 per cent compared to 1990. During 2011, a new objective of reduction of 33 per cent vs 1990 by 2020 was set.

2010

–23.3%

–21.7%

Our new CO2 emission reductions objective was made public in June 2011 after having widely consulted our stakeholders and our partner WWF.By end of 2011, we have made significant progress, in line with our new objective.

Cut our dust emissions in our cement plants by 30 per cent over the period 2005-2012.

2012 –38.9% –33.5% Although cement plants generate dust, we have continued to make significant progress in lowering emissions through revamping or replacing less efficient air pollution control devices.

Cut our NOx emissions in our cement plants by 20 per cent over the period 2005-2012.

2012 –33.4% –27.9% NOx is emitted from virtually every combustion, including cement manufacture. Since achieving our targeted reduction in 2009 we have continued to implement NOx abatement technologies such as SNCR (Selective non catalytic reduction) and many of our newer kilns are designed with low-NOx precalciners.

Cut our S02 emissions in our cement plants by 20 per cent over the period 2005-2012.

2012 –51.3% –52.8% SO2 can be another unwanted product of some cement kilns. After reducing emissions by around 50 per cent since 2007; in 2011 we started to install abatement systems whose reductions will be seen in future years.

By end 2010 have a baseline for persistent pollutants in our cement plants for 100 per cent of kilns and reinforce our Best Manufacturing Practices to limit emissions.

2010 100% 100% Persistent pollutants are emitted by cement kilns. Lafarge is working with WWF to achieve significant reductions in emissions.The program has completed measurement of persistent pollutants in all operating kilns.Plant specific action plans have been developed to reduce emissions from a group of top-emitting plants.Progress with reducing emissions will be monitored and reported.

LAFARGE CEMENT UKPortland House

Bickenhill Lane, SolihullBirmingham B37 7BQ

Phone: + 44 (0) 845 812 6400

www.lafarge.co.uk [email protected]

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