Building a sustainable future our agenda and our contribution launch of the corporate sustainable development report 2007 june 2 2008 holcim ltd switzerland

Building a sustainable future: Our agenda and our contribution Launch of the Corporate Sustainable Development Report 2007 June 2, 2008... Sustainable Development Report 2007 - Facts ƒ R

Building a sustainable future:

Our agenda and our contribution

Launch of the Corporate Sustainable Development Report 2007

June 2, 2008

Sustainable Development Report 2007 - Facts

ƒ Reduction of CO2 and other atmospheric emissions

 On track to reach 2010 target

ƒ Partnerships with

 IUCN on biodiversity (new)

 GTZ on AFR (continued)

ƒ OH&S performance

 Improvements, yet further efforts needed

ƒ CSR and stakeholder engagement

 Community spending and Community Advisory Panels

increased

ƒ External assurance and broad external recognition

Sustainable Development: A part of our mission

Vision: We want to provide foundations for society's future.

Mission: We want to be the world's most respected and attractive company in our industry – creating value for all our stakeholders.

Holcim Strategy House:

Working within the triple bottom line

© 2008 Holcim Ltd/Switzerland

ƒ High standards of Corporate Governance and Code of Conduct implemented

ƒ Governance structure and committees set up

ƒ External assurance of the CSDR 2007 and CO2 data

9 Audit Committee (all 3 members independent)

9 Governance, Nomination & Compensation Committee

(all 4 members independent)

9 Assessment of Board, Committees and CEO

9 Single share: one share = one vote

9 Policy landscape and directives

9 Business Risk Management

9 Internal Audit

9 Corporate Governance Reporting

9 Corporate Sustainable Development Report

Population growth and urbanization

ƒ World population to increase to more than 8 billion by 2030

ƒ World is facing the largest mass migration in history

ƒ Sustainable construction will be key to securing long-term environmental, economic and social viability

Jakarta

Manila

Osaka Karachi

Mumbai

Shanghai KolkataDhaka

Moscow London

Istanbul

Seoul Delhi Beijing Los Angeles

Mumbai KolkataDhaka

London

Istanbul

Seoul Delhi Los Angeles

© 2008 Holcim Ltd/Switzerland

Source: World Green Building Council, The ecological footprint

The ecological footprint

Wood harvest

Worldwide, buildings account for up to …

Concrete is an indispensible building material

ƒ High significance for economic development

ƒ Modern infrastructure inconceivable without concrete

ƒ Second most used commodity by volume after water

ƒ Due to its natural thermal inertia, long life cycle and reusability, one of the most energy-efficient and eco-friendly materials

75% Composite cement

Ordinary Portland cement

Ordinary Portland cement

30% Composite cement

Holcim Foundation for Sustainable Construction

ƒ Platform to promote sustainable construction

ƒ Activities include: Holcim Awards competitions, Holcim

Forum, seed funding for building initiatives and research

ƒ 2nd Awards cycle: 5,000 ideas to build a sustainable future

Holcim Awards: from idea to reality

© 2008 Holcim Ltd/Switzerland

Since 1990:

ƒ 103% increase of our total cement production – absolute CO2

emissions increased by only 70%

ƒ 16.3% reduction in net CO2 emissions per tonne cementitiousmaterial

ƒ Voluntary target of 20% reduction per tonne by 2010 within reach

ƒ Lowering the clinker factor is one of the best approaches for reducing CO2 emissions

ƒ The use of alternative fuels contribute to decrease fossil fuel use and costs

© 2008 Holcim Ltd/Switzerland

Controlling other atmospheric emissions

ƒ Our target is to reduce specific NOx, SO2 and dust emissions

by 20% by 2010 compared to 2004 levels

ƒ Ongoing investments in plant equipment and training

ƒ Results:

 SO2 target already achieved

 On track to reach dust targets

 Further measures taken to reach NOx target

Conserving ecosystems and biodiversity

ƒ Production of cement and aggregates depends on access to raw materials

ƒ Commitment to quarry rehabilitation and biodiversity conservation

ƒ Collaboration with IUCN extends and builds on our efforts

Safety at work is of paramount importance

ƒ Health and safety are vital to business success

ƒ Despite improvement in Lost Time Injury Frequency Rate (LTIFR), overall performance is unsatisfactory

ƒ Improving the safety record remains a high priority

© 2008 Holcim Ltd/Switzerland

Safety awareness initiatives

ƒ Example Holcim Ecuador: ¡para y piensa en mi!

Effective social commitment

ƒ Holcim CSR approach is strategic, not philanthropic

ƒ Education, building infrastructure and community development are our focus areas

ƒ Community spending of CHF 48 million in 2007

 equaling 1% of net income before tax

 9 out of 10 conduct stakeholder dialogue

 A majority involve stakeholders in CSR planning

ƒ Our alliances with the WBCSD and the UN Global Compact help to make step changes

Commitment across the Group

ƒ Awards won by Group companies are evidence of this

© 2008 Holcim Ltd/Switzerland

Strength Performance Passion.