csr - an introduction

CSR in LafargeCHENG Feng CHENGJIE Fang MARTIN MelanieCHIVUKULA Sai SiddharthYU Liao Wan

Content Layout • About Lafarge• CSR contributions –

• Building sustainably• Health and safety• Building the circular economy

• Governance• Reporting techniques used

Introduction• The Lafarge was founded in 1833 in France, and has the

history of 170 years• It is a leader status in the area of gypsum board, aggregates

and concrete branch.• Lafarge headquarters are located in Paris, France. The Group

is present in 64 countries.

Statistics• Annual revenue : 15,816 million euros• Net profit amounted : 432 million euros • 65000 employees • Only company in the building materials industry selected for

"Global 100 most sustainable companies" In 2008.• From 1999, selected in the "Fortune 500 list"

CSR actions

Sustainable Buildings

Biodiversity

Socio-economic

development

Health and safety

Employee values

Building sustainably

1• Sustainable construction and cities

2• Access to housing

3• Sustainable Supply chain

Sustainable constructionand cities

• Created an in-house team of construction specialists to optimize building performance and contribute to climate change adaptation.

• Lafarge invested €116m in 2012 in product innovation(concrete having recycled waste too!) and industrial performance improvement.

Affordable housing

• Aims to provide decent, affordable housing and financing for homes for 2 million people by 2020.

• €10m is the amount targeted to be invested over the next 2 years as part of Lafarge’s program for affordable housing.

Sustainable supply chain• Innovative duplex residence to achieve zero net energy use. • The use of precast concrete panels for fast and efficient on-

site assembly.• Ensures that its supply chain respects the principles of the UN

Global Compact.

Building The Circular Economypreserve biodiversity and

enhance it

Contribute to better water,

air quality

improve energy and

raw material management

contribute to sustainable

societal development

create jobs

Energy consumption andresource management

• Focus on biomass

• Alternative raw materials

• Recycling practices

Biodiversity

• New tools to help sites manage biodiversity• Raising Awareness on Biodiversity• Roll-out of the Biodiversity Management

Plan template

Water

• Water footprint • High priority basins• Local stakeholders

CO2 & Air emissions• Emissions reductions are therefore an important part of its

Sustainability Ambitions 2020 program.

• Lafarge has reduced its CO2 emissions per ton of cement by 24.7% compared to 1990.

• Mitigating climate change

• Reducing emissions

Health and Safety 

Lafarge’s ambition is to reach zero fatalities and virtually eliminate lost-time incidents (LTI) for employees and contractor across its operations around the world.

Results & incident reduction Lafarge continued to make progress in 2012 in its lost-time injury frequency rate (LTIFR) for on-site contractors, with a 19% reduction compared to 2011.• Example : 34 fatal incidents in 2011, 16 on-site and 18 off-site. 25 fatal incidents in 2012.

Strengthening local health

Safety management by developing a risk-based approach. In line with its Health and Safety Management System, the Group moved to a Risk Based Approach starting in early 2012.

Developing an integrated health approach 

In 2011 Lafarge developed a Health strategy supporting its goal of providing a healthy work environment and preventing occupational illness  

Employee diversity and skills 

Lafarge, are convinced that diversity speeds up change

and is a source of performance,

creativity and innovation.

(In terms of gender diversity, Theyhave set an ambitious objective to have 35%of senior management positions held by women by 202).

Strong investment in people development

training programs, e-learning tools and on-the-job training

In partnership with CARE• partnership with local communities .• being a driver of local socio-economic development• volunteer working to boost level of employee engagement

outside our operations

Governance in Lafarge• Strong governance heart of sustainability and key to strong

business• Enables commitment to key values – courage, integrity,

respect and transparency. • Member of UN Global compact- ensures reflection of Lefarge

principles in decisions• All employees show loyalty to Lefarge principles and values

Governance structure• CEO Shapes sustainability agenda• Executive committee approves strategies • Legal department conducts regular, unannounced

compliance checks• Executive VP sustainability issues• Public affairs dept. implementation overseas• Ethics committee rolls out code of conduct

Code of conduct in practice• Business code AFEP and MEDEF• competitors & NGO’s used as benchmarks and verification &

checks authorities• Part of the “Group Competition Compliance program”

worldwide employee awareness & training program• “Public dialogues” with stakeholders about sustainability,

energy, pollution and such concerns

Stakeholder panel

European Work council

Building and wood works international

CARE

African center of Economic

transformation The

IndependentCenter of

human ecology

Reporting standards• KPI’s GRI GP3 standard• Health and safety records Internal and external audits• Stakeholder relationship monitored and verified• Reports were GRI A+ level checked• Social and environmental CSR claims verified and certified

by Bureau Veritas

Conclusion – Recognition for CSR Excellence

• Lafarge Tarmac wins CSR 2013 excellence award in France• Lafarge cement wins SERA 2013 award for being the most

socially responsible company, best design for sustainability and best company for community involvement in Nigeria

Thank you for your attention!!