sustainable development at holcim integrating sustainability into ongoing business activity swiss sustainability leaders sri conference 4 october 2013 holcim ltd strength performance passion

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Strength Performance Passion.

Sustainable Development at Holcim

-Integrating sustainability into ongoing business activity

IFZ - MAS Corporate Finance 20_10 – Funding December 7, 2012, 14.10 – 17.50

Swiss Sustainability Leaders SRI Conference; 4 October 2013

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Agenda

2

Energy and Climate Protection, 2013-07-31

Holcim at a glance and our impacts

Managing SD and determining material issues

Managing key impacts: OH&S

Managing key impacts: Energy and carbon emissions

Managing key impacts: Sustainable Procurement

Managing key impacts: Other environmental impacts

Managing key impacts: Social responsibility approach

Managing key impacts: Human Rights Impact assessments

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Holcim at a glance – product segments and net sales

Cement Aggregates

Net sales CHF 21.5 billion

Cement Clinker

Product segments 2012 Net sales per segment 2012

 217.5 million tonnes production capacity

 147 cement and grinding plants

 Sales: 148.0 million tonnes

 470 aggregates plants

 Sales: 159.7 million tonnes

 1,286 RMX plants

 99 asphalt plants

 Sales of ready-mix concrete: 46.9 million

m 3

 Sales of asphalt: 9.1 million tonnes

Op EBITDA per segment 2012

Op EBITDA CHF 4.0 billion

3.4%

86.5%

10.1%

Other Construction Materials and Services

3

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Holcim at a glance – well balanced global portfolio

Africa Middle East Europe

Asia Pacific North America Latin America

Net sales per region 2012

14.7%

26.1%

39.2% 4.3%

Africa Middle East

Asia Pacific (million t or m 3 ) Net sales CHF 21.5 billion

Op EBITDA per region 2012

Op EBITDA CHF 4.0 billion

44.4% 6.6%

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Our commercial success means that Holcim has a

significant footprint on the planet…

WATER

• Water consumption: 140 Mm 3 /y

• Sufficient to supply the city of Paris or Berlin for one year

RAW MATERIALS

• Raw materials extraction: 360 Mt/y

• One 55t truck every 5 seconds

CLIMATE CHANGE

• Climate change: 100 Mt of CO2/y

• Equivalent to 0.3% of worldwide carbon emissions

• Equivalent to the total carbon emissions of Belgium in a year (but GDP of Belgium = 20 x Holcim revenues)

POWER

• Annual electricity consumption of 17.5 TWh

• Sufficient to cover yearly demand of more than 4 Millions households

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Managing our impacts - Sustainable Development: A part of our mission

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Optional footer entry, 2013-02-11

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

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C O M P E T I T I V E A D V A N T A G E

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The driver is clear - sustainable development makes

recognition by regulators and engage

Identifying and avoiding risk, identifying opportunities, providing societal value

Brand differentiation, new markets,

products & services outperforming competitors, maximizing societal and shareholder value

business

Risk Mitigation

Reputation Management

„Some of the greatest opportunities in the 21st century will be turning waste (inefficiency, underutilization,

energy waste) into profit“

Source: Michael Braungart and William McDonough, „Cradle to Cradle: Remaking the Way we Make Things“; 2002

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Agenda

8

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• Managing these issues makes good business

sense

 Mitigating risk and leveraging opportunity

 Maintain our license to operate

 Reduce operating costs and increase

revenues

 Ability to attract and retain employees

 Improve access to capital

 A seat at the regulators table

Key SD issues - determined with SD materiality review.

External report

review panel:

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Agenda

10

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• Aim to improve even further – want

to achieve <1 by 2013

• Our long term vision remains “Zero Harm to People”

• Fatalities remain a grave concern

Holcim CEO Summertalk 2013, 2013-06-21

Target < 1

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Agenda

12

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Concrete and cement are essential elements in

infrastructure, residential and commercial buildings

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other industrial materials

• On a specific level, CO2 embedded

in cement is half, respectively one third, of that of steel and

aluminum

• The low price of cement determines the high financial exposure of the industry to CO2(high CO2 emissions per unit of revenue)

CO 2 and financial intensity of commodities

0 2 4 6 8 10 12

Concrete Cement Steel Aluminium

Financial intensity [kgCO2/$ revenue]

CO2 intensity [tCO2/tProd]

Source: Holcim estimates

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The production of clinker – the key component of cement –

Clinker production Quarry - extraction Raw meal grinding

Concrete production Cement grinding Cement distribution

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Since 1990, Holcim took actions to improve energy efficiency and to reduce CO2 emissions per unit of product

500 550 600 650 700 750 800

-30 -25 -20 -15 -10 -5

0

% improvement

2015 2012

Sector average emissions (WBCSD-GNR database)

% improvement Specific net CO2 emissions

Holcim specific CO2 emissions Holcim production and energy consumption

0 50 100 150

200 500.000

2000 1990

Mt TJ

+117%

+25%

2012 2011

Cement prod Traditional

Energy from waste Biomass

Power

Source: Holcim

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Holcim successfully develops new products that can be

manufactured more efficiently…

Actions on energy and climate change go beyond efficiency in operations

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…and valorizes waste as alternative fuel and material

Efficient for economic, social and environmental reasons

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Product transparency is key, as customers choice can

reduce energy and climate change challenges

Green labels

Product Carbon Footprint

Environmental Product Declaration

Increase customers awareness of efficient solutions

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The next step change is bringing solutions to reduce energy and emissions during the life of a building…

Ecoterm® Ready-mix

0 100 200 300

400

-25%

Ecoterm Concrete

Blocks

Regular concrete

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…and to reduce emissions on the infrastructure

Sources of Green House Gas emissions

Partnerships and innovation along the value chain are fundamental

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Agenda

22

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Managing supply chain risks - A pragmatic approach has been developed

 The initial scope is to manage the risk derived from doing business with

suppliers that do not uphold standards in OH&S, social responsibility and

environment

Tools and methodologies are developed and it is expected that Holcim

Group Companies use them to manage their risk

Managing Supplier Risk

Partnering with suppliers to maximize benefits

Procuring sustainable products

United Nations Global Compact Principles

Reputation &

Supply assurance

Human rights and Labor

Occupational Health & Safety Environment Bribery and Corruption

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The approach to implement the SPI across the Holcim

supplier base consists of 5 steps

1 Supplier Code of Conduct

Supplier Code of Conduct approved by Holcim EXCO and communicated to all

suppliers and Group Companies

2 Supplier prioritization

High risk suppliers to be prioritized by Group Companies and Corporate

Procurement based on their judgment of local conditions

3 Risk assessment

Continuous evaluation of risk exposure through self-assessment / fact finding

/ verification, as determined by Group Companies

4 Risk mitigation

Supplier development or replacement, as determined by Group

Companies

5 Scorecard

Continuous performance tracking for the Holcim Corporate

Sustainable Development Report as in the past

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Agenda

25

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 Plant Environmental Profile questionnaire

 Biodiversity Management System (being

implemented in partnership with the IUCN)

 Emission Monitoring and Reporting (EMR)

 Emission Reduction Targets (ERT)

 Water management scheme

Key Environmental Targets:

Biodiversity target: 80% of sensitive sites with Biodiversity Action Plans (2013)

Water target: Reduce water consumption per tonne of product by 20% by 2020

(Base year 2012)

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Agenda

27

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Social Responsibility: Holcim CSR approach is strategic,

not philanthropic

• Education, infrastructure and community development are our focus areas

• Community spending of CHF 45 million in 2012

• Holistic low income housing projects in implementation in various countries

• Employee awareness and outreach program to mobilize Holcim's 80,000 employees

• Stakeholder and community engagement vital to business success

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Agenda

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Holcim has a Group-wide approach to manage

business-related human rights risks

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The copyright for this document and all appendices are reserved by Holcim Technology Ltd.

The methodology is based

on a global risk mapping and pilot assessments conducted between 2010 and 2012.

 Face-to-face and online trainings delivered

Appropriate assessments

in line with the risk categorization of the operating environment are planned in all Group companies

Tiêu đề	Sustainable Development at Holcim Integrating Sustainability into Ongoing Business Activity
Trường học	Swiss Federal Institute of Technology Zurich
Chuyên ngành	Sustainable Development
Thể loại	conference presentation
Năm xuất bản	2013
Thành phố	Zurich

Định dạng
Số trang	31
Dung lượng	1,78 MB