integrating sustainability into ongoing business activity585cf64c-2ab4-4f8f-b5a1-c43e4ea… ·...

Strength. Performance. Passion.

© 2013 Holcim Ltd

Sustainable Development at Holcim - Integrating sustainability into ongoing business activity

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

2013-06-27 © 2013 Holcim Ltd

Swiss Sustainability Leaders SRI Conference; 4 October 2013

© 2013 Holcim Ltd

Agenda

2 Swiss Sustainability Leaders conference 2013

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

© 2013 Holcim Ltd

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 m3

Sales of asphalt: 9.1 million tonnes

Aggregates

Other construction materials & services

10.4%

58.0%

31.6%

Op. EBITDA per segment 2012

Op. EBITDA CHF 4.0 billion

3.4% 86.5%

10.1%

Other Construction Materials and Services


© 2013 Holcim Ltd 4

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%

15.7%

Europe

Sales volumes per region 2012

North America

Latin America

Africa Middle East

Asia Pacific (million t or m3) Net sales CHF 21.5 billion

Op. EBITDA per region 2012

Op. EBITDA CHF 4.0 billion

11.4% 14.9%

44.4% 6.6% 22.7%

• Cement 79.2 • Aggregates 27.8 • Ready-mix concrete 12.8

• Cement 24.9 • Aggregates 14.0 • Ready-mix concrete 10.2 • Cement 26.3 • Aggregates 74.3 • Ready-mix concrete 14.7 • Cement 12.0 • Aggregates 41.3 • Ready-mix concrete 8.1 • Cement 8.4 • Aggregates 2.3 • Ready-mix concrete 1.1

Swiss Sustainability Leaders conference 2013

http://www.railway-technology.com/projects/mumbai-metro/


Our commercial success means that Holcim has a significant footprint on the planet…

WATER • Water consumption: 140 Mm3/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

POWER • Annual electricity consumption of 17.5 TWh • Sufficient to cover yearly demand of more than 4 Millions households


© 2013 Holcim Ltd

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

6

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


© 2013 Holcim Ltd

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

7

The driver is clear - sustainable development makes business sense

Regulatory compliance, legal license to operate

Societal license to operate, 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

Compliance Integration into 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


© 2013 Holcim Ltd

Agenda

8





• 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:


© 2013 Holcim Ltd

Agenda

10




© 2013 Holcim Ltd

Safety is our first priority

11

• Lost-Time Injury Frequency Rate (LTIFR) for own and subcontracted employees has dropped to 1.3

• 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

Target < 1


© 2013 Holcim Ltd

Agenda

12





Concrete and cement are essential elements in infrastructure, residential and commercial buildings



Concrete and cement have low embedded CO2 compared to 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)

CO2 and financial intensity of commodities

0

2

4

6

8

10

12

1,5

2,5

0,0

1,0

2,0

0,5

3,0

kgC

O2/

$rev

enue

tCO

2/t p

rodu

ct

Concrete Aluminium Steel Cement

Financial intensity [kgCO2/$ revenue] CO2 intensity [tCO2/tProd]

Source: Holcim estimates



The production of clinker – the key component of cement – relies on energy and is the main source of CO2

Clinker production Quarry - extraction Raw meal grinding

Concrete production Cement grinding Cement distribution



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

579

2011

584

2010

594

2005

634

2000

685

1990

757

kgCO2/t cem

Sector average emissions (WBCSD-GNR database) % improvement Specific net CO2 emissions

Holcim specific CO2 emissions Holcim production and energy consumption

0

50

100

150

200500.000

400.000

300.000

200.000

100.000

0 2010 2005 2000 1990

Mt TJ

+117% +25%

2012 2011

Cement prod Traditional Energy from waste

Biomass Power

Source: Holcim



Holcim successfully develops new products that can be manufactured more efficiently…

Actions on energy and climate change go beyond efficiency in operations

6% 29% 31% 18% 4% 12%

Industry Buildings Transportation Waste Other Cement Industry Direct and indirect sources; excluding emissions from forestry and agriculture Source: IPCC

Sources of Green House Gas emissions



…and valorizes waste as alternative fuel and material

Efficient for economic, social and environmental reasons

6% 29% 31% 18% 4% 12%





Product transparency is key, as customers choice can reduce energy and climate change challenges

Gold Silver Bronze Innovation

Green labels

Product Carbon Footprint

Environmental Product Declaration

Increase customers awareness of efficient solutions



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

kWh/

ym2

-25%

Ecoterm Concrete Blocks

Regular concrete

Energy needs

6% 29% 31% 18% 4% 12%





…and to reduce emissions on the infrastructure

Industry Buildings Transportation Waste Other

29% 31% 18% 4% 12%

Cement Industry

6%

Direct and indirect sources; excluding emissions from forestry and agriculture Source: IPCC


Partnerships and innovation along the value chain are fundamental


© 2013 Holcim Ltd

Agenda

22




© 2013 Holcim Ltd

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

Hum

an ri

ghts

an

d La

bor

Occ

upat

iona

l H

ealth

& S

afet

y

Env

ironm

ent

Brib

ery

and

Cor

rupt

ion


© 2013 Holcim Ltd

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


© 2013 Holcim Ltd

Environment: Reduction of Environmental impact and Conservation of Biodiversity

Key environmental programs: ISO 14001 certification 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)


© 2013 Holcim Ltd

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

Key target:

Community Engagement Plan (CEP) in place for each site by 2012

Achieved 94% by end 2012


© 2013 Holcim Ltd

Holcim has a Group-wide approach to manage business-related human rights risks

30

The methodology is based on a global risk mapping and pilot assessments conducted between 2010 and 2012.

Implementation to date: 5 human rights impact

assessments completed Manual and tools

communicated to all Group companies

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.


© 2013 Holcim Ltd

Contact information and event calendar

Contact information

Bernhard A. Fuchs Michel R. Gerber Swetlana Iodko David Kingma (Sustainable Development) Investor Relations Phone +41 58 858 87 87 Fax +41 58 858 80 09 [email protected] www.holcim.com/investors Mailing list: www.holcim.com/subscribe

Event calendar

November 5, 2013 Press and analyst conference for the third quarter 2013

February 26, 2014 Press and analyst conference on annual results for 2013

April 29, 2014 General meeting of shareholders


© 2013 Holcim Ltd

Disclaimer

Cautionary statement regarding forward-looking statements

This presentation may contain certain forward-looking statements relating to the Group’s future business, development and economic performance.

Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to (1) competitive pressures; (2) legislative and regulatory developments; (3) global, macroeconomic and political trends; (4) fluctuations in currency exchange rates and general financial market conditions; (5) delay or inability in obtaining approvals from authorities; (6) technical developments; (7) litigation; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially from the statements made in this presentation. Holcim assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise.


integrating sustainability into ongoing business activity585cf64c-2ab4-4f8f-b5a1-c43e4ea… ·...

Documents