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154, rue de l’Université – F – 75007 ParisTel + 33 (0) 1 49 55 63 00Fax + 33 (0) 1 49 55 63 01www.imerys.com

Imerys - a French limited liability company (société anonyme) with Board of DirectorsShare capital 150,285,032 euros Trade register RCS Paris B 562 008 151

Design and production: Photo credits : Imerys Talc Luzenac France/A. Baschenis, Paul Williams, Dominique Lecuivre, Clive Kessel, Thomas Schauer, Gernot Gleiss, Planète 360-D.Glevarec, Photothèque Imerys DR.Impression : Les Deux Ponts. The report is printed on paper that is FSC certifi ed and contains Imerys pigments. Wood used in the paper pulp comes from forest managed for sustainable development.

Sustainable Development 2011

FSC à venir

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2011 Sales

€3,675 million

16,187employees

47countries

More than 240industrial sites

2011 salesThe world leader in mineral-based specialty solutionsfor industry

Contents

Message from the Chairman & CEO • 01Sustainable Development Strategy • 02Review & Outlook • 04Our Commitments & Achievements • 08Governance & Ethics • 09Environment • 12• Our levers for continuous improvement of performance• Sites restored, biodiversity protected• Air emission reduction targets• Carefully monitored withdrawals and releases

Innovation • 20• Assessing and improving our products and processes

Safety & Health • 21• An ambitious, systematic safety process• Managing workplace health issues

Human Resources • 25• Promoting diversity• Stepping up training efforts• Improving benefi ts• Fostering industrial dialogue• Supporting the development momentum• Checking and improving data accuracy

Communities • 30• The will to address communities expectations

Indicators & Methodology • 32

The world leader in mineral-based specialty solutions for industry, Imerys bases its development on a sound, profi table business model. The Group processes, enriches and combines a unique range of minerals, in many cases mined from its own deposits, to contribute essential functions to its customers’ products and processes. Thanks to their properties (heat resistance and mechanical strength, conductivity, coverage, barrier effect, etc.), these specialties have a great number of everyday applications in consumer durables, fast-consumer goods, capital goods and construction, and are developing on many growing markets.

To fi nd out more, visit our website notre www.imerys.com

by destination

Minerals for Ceramics, Refractories, Abrasives & Foundry

Performance & Filtration Minerals

Pigments for Paper & Packaging

Materials & Monolithics

Western Europe

United States / Canada

Emerging countries

Other (Japan / Australia)

by business group

48%

20%

5%

27%

28%32%

19%21%

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At Imerys, Sustainable Development is inseparable from our value creation strategy. Protecting the environment and biodiversity, developing relations of trust around our operations, complying with the highest standards of governance and ethics, and giving our employees career development opportunities are actions we

must take for the long-term future of our businesses.

The Group’s ambitions for internal and external growth also mean we must be irreproachable in these areas. If we are not, how can we hope to obtain new operating permits or convince authorities and stakeholders to host our activities?

Our approach is built on a three-year plan adopted from the in-depth work of a number of senior managers. These senior managers are tasked not only with creating the strategy, but also with implementing it.

We measure our carbon emissions and our plants’ gas releases and water consumption with a view to their constant reduction. As regards safety, our determination is achieving results. Our lost-time accident rate is 1.69 per million hours worked, an improvement of more than 30% from 2010. In 2012, we’ll keep up our action on safety, supported by the Imerys Safety System, which we launched at the beginning of the year.

The bonds forged with neighboring communities grow stronger every year, as refl ected in the many dynamic projects submitted by our operations for the Group Sustainable Development challenge.

Finally, 2011 was the fi rst year of our new diversity program, and a measurement tool has already been established. From 2012, this tool will enable us to steer the progress made in the Group.

To improve our performance still further, Imerys is implementing an operational excellence process that will require constant improvement of our Sustainable Development indicators.

This 4th Sustainable Development Report describes our method and quantifi es our success. Rather than boasting, this report is provided with the modesty that comes from realizing we still have a long way to go. Faced with this realization, the Executive Committee’s determination is unwavering, and the enthusiasm of all of the people in the Group gives us every confi dence that we will meet the challenges ahead.

Sustainable development: an essential condition for value creation.

Gilles MichelChairman and Chief Executive Offi cer

«

Editorial 3 01Imerys 3 Sustainable Development Report 2011

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Our international scale gives us special responsibilities with respect to our employees, our customers, our neighboring

communities and our shareholders. The analysis of the main issues for the future, as well as the potential impact of our industrial and mining activities on those various stakeholders, led us to focus our efforts on six main areas. We then made commitments to improve on all those points and are implementing the commitments through a set of Group-wide instructions.

• Governance & Ethics: We strive to improve our corporate governance constantly, in particular by drawing inspiration from the best practices implemented by comparable companies. Going beyond the observance of applicable local laws and regulations, we also make sure that our activities are carried out ethically and transparently worldwide, while protecting the best interests of all stakeholders and making stringent internal controls possible.

• Environment: we work to reduce the impact of our activities and use natural resources effi ciently. We control our activities’ impact on the environment and set up management systems that allow us to improve our performance continuously.

Sustainable DevelopmentA global strategy

Our Sustainable Development policy supports the Group’s long-term strategy. Our determined approach is both gradual and demanding. Actions are taken on the ground. Support services set these actions in motion and coordinate them.

• Innovation: we innovate constantly to improve our processes and increase our products’ environmental benefi ts.

• Safety & Health: we consider that meeting ambitious health and safety standards is essential and believe that success in this area depends on the active involvement of everyone who plays a part in the company: management, employees, contractors, visitors and neighboring communities.

• Human Resources: we seek to increase diversity in the Group. We give our employees the resources they need to develop professionally and ensure that they have satisfactory benefi ts. We encourage open dialogue with personnel representatives and trade union organizations.

• Communities: we build constructive, transparent relations with the communities where we are based and seek to contribute to their economic development.

We are aware of the importance of these commitments to our long-term development. The effectiveness of our Group’s Sustainable Development policy, therefore, is an essential component of our results and guarantees our future operating performance.

3 02 Imerys 3 Sustainable Development Report 2011

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A disciplined, improvement-focused process

Our Sustainable Development actions are guided by a three-year plan that sets goals for each of our areas of activity. The three-year plan also provides for gradual, continuous performance improvement.

We implement the plan by defi ning protocols and training operating teams. We then monitor the plan’s rollout on the ground through performance indicators defi ned by internal experts. These indicators take into account the guidelines set by the United Nations’ Global Reporting Initiative (GRI)(1) and the Greenhouse Gas Protocol (the global framework for reporting energy and CO2 emissions) taking the specifi c nature of our activities(2) into account.

We gradually enrich these indicators in line with the ramp-up of our action plans. In health & safety, we have collected data on lost time accidents since 2011 and we will begin tracking the number of occupational diseases in 2012. As regards the environment, we have begun measuring volumes of recycled water and CO2 emissions from our mining contracting activities in order to enhance understanding of our environmental impacts. In human resources, the absenteeism rate and the share of employees covered by collective bargaining agreements were added to our monitoring tools in 2011.

We also work to improve the quality and accuracy of our reporting and are preparing for the new regulatory obligations arising from the "Grenelle II" environmental law. To build on the work done centrally by our Internal Control Department and our EHS audit teams, we tasked Deloitte with checking our data collection processes and a selection of indicators for 2011. This assignment resulted in a report that is available on our website. A new data collection tool will be rolled out in 2012.

Effective membership of representation bodies

Imerys is an active member of the Industrial Minerals Associations for Europe and North America (IMA-Europe and IMA-North America). Through these associations, we work with the European Union and the US federal government to encourage sustainable development initiatives in the industrial minerals sector. Through our French clay roof tiles & bricks activities, we also have presence in the building materials sector. We work actively with public authorities on the application and modifi cation of regulations for this sector of our business. In 2011, our main positions on public policies concerned biodiversity and effi cient management of mineral resources.

We encourage relevant partnerships with NGOs on local projects, mostly on protecting biodiversity, health, or economic development.

We maintain ongoing dialog with rating agencies and socially responsible investors in order to present our SD activities and processes and improve our performance on environmental management, safety, community relations and ethics. Our desire for transparency was rewarded in late 2011 by 3rd prize for sustainable development in the Trophée des Meilleures Relations Investisseurs (investor relations trophy) awarded by Forum des Relations Investisseurs. We are also listed on specialized stock market indexes such as FTSE4Good and ASPI Eurozone.

(1) The GRI is a global framework for environmental and social indicators.

(2) The methodology and defi nition of each of our indicators are presented at www.imerys.com / Sustainable Development section.

The importance of using mineral resources effi cientlyLocal access to mineral resources is essential to the reduction of production costs and environmental impacts such as CO2 emissions from transport. We constantly improve our mining methods to improve usage of our mineral resources and put major innovation efforts into increasing the environmental benefi ts of our minerals. Our products are often reused through the recycling of the products that contain them.

Strategy 3 03


We achieved a great majority of the Sustainable Development goals we set in late 2008, leading to signifi cant

progress on every aspect covered. We carefully monitored the rollout of the goals over the period and adjusted the pace of implementation as needed. Our fundamental ethical principles and values – in terms of both business conduct and human rights – are now widely disseminated and shared by all of our employees. We have also strengthened the internal control of our major risks.

Environmental focus

We have improved the management of our main environmental risks by rolling out our environmental management systems across the Group and intensifying our compliance audit programs. Over the last three years, we continued to improve our energy effi ciency by monitoring our consumption in more detail and setting up equipment optimization programs. This led to a signifi cant decrease in our greenhouse gas emissions. In late 2011, we completed a map of our sites’ biodiversity sensitivity before setting up a more structured approach at Group level. Greater knowledge and control of our water consumption remains an important goal for the years ahead. Our innovation efforts increasingly focus on meeting our various customers’ environmental expectations and developing manufacturing processes that make better use of raw materials – particularly minerals.

Review & OutlookGoals achieved

Our fi rst three-year Sustainable Development action plan was defi ned in 2008, following an internal consultation process. It has enabled us to make progress on all six of our main action areas.

Social focus The safety of our employees and contractors remains one of our main priorities. The Group’s executive management has renewed its commitment to this issue. The programs that we began in 2005, and signifi cantly enhanced from 2008, place Imerys’ practices at the forefront of our industry. We will continue to improve them going forward. Personnel development also remains a priority at Imerys, and we deliver a variety of training programs through the Imerys Learning Center. Personal development is formalized through training plans in our activities. Similarly, the priority we place on high-quality benefi t systems in our host countries continued. Adding to these priorities, the Group launched its diversity policy in 2011.Finally, we structured our approach to community relations to ensure our stakeholders’ expectations are effectively taken into consideration. Our plan for the next three years will enable us to sustain and build on these improvements.

Key dates

2003 • Coordination of Imerys Sustainable Development process

2004 • 1st Sustainable Development report; indicators covering 60% of the Group scope

2005 • Reporting scope extended to 100% of the Group’s activities

• Global safety action plan launched

2006 • Code of Business Conduct and Ethics published

2008 • Environmental action plan launched

2009 • 1st three-year Sustainable Development plan launched

• Audit Committee tasked with annual review of Sustainable Development strategy and action plans

2011 • Imerys diversity policy established

• Sustainable Development action plan defi ned through 2014



An ambitious but realistic plan

Views

The progress made throughout Imerys in recent years is a valuable asset for our decentralized group. We are convinced that the values we hold, and the Sustainable Development programs we implement, make our Group more robust and better able to create long-term value.

For the next three years, the many Sustainable Development issues inherent in mineral mining and processing – from controlling environmental impact to taking into consideration the wishes and constraints voiced by stakeholders, via safety and employee skill development – mean we must have ambitious but realistic goals.

The plan has been the subject of in-depth internal discussions and was approved on several management levels. In this way, we have set priorities for action and intend to control the gradual deployment of these priorities, year after year.

How would you describe Imerys’ approach to Sustainable Development? Our operations are responsible for implementing the various programs, while the central structure sets initiatives in motion and coordinates them.

Our approach is intended to be both ambitious and pragmatic.

As we cannot act on all subjects at the same time with the same intensity, we must defi ne priorities – depending on the main risks, of course, but also on our own ethical and moral principles – and determine the right pace for their implementation.

Why does the Group have a medium-term Sustainable Development plan?In a decentralized group like Imerys, a plan like this allows us to orchestrate initiatives in the medium term.

The plan also gives our action a methodical, disciplined framework through the regular control of progress made in relation to targets.

Thanks to the strong foundations we now have, we can aim higher in many areas while rolling out programs gradually. The following table (see pages 6 & 7) shows the main lines of action.

> As the action plan defi ned in late 2008 for the 2009-2011 period was drawing to an end, a new internal consultation process was launched in June 2011 to defi ne the Group’s ambition for the next three years. Workgroups brought together around 40 specialists from the various fi elds representing our business groups and geographic zones to draw up

proposals for the future. This exercise integrated the conclusions of the workshop organized on Sustainable Development at the Group’s senior manager convention in June 2011. Our peers’ practices and our stakeholders’ opinions were also taken into consideration.

Close-up on…

Review & Outlook 3 05

Thierry SalmonaVice-President, Innovation, Research & Technology & Business Support

A concerted process

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2011 objectives 2011 performance

GOVERNANCE & ETHICS

• Implement the three-year communication plan on policies and procedures. • Train all new managers in the Code of Ethics and Business Conduct as part of induction. • Continue to promote diversity and Sustainable Development awareness among the Board

of Directors.• Compliance audit at four Imerys sites in countries identifi ed as sensitive in terms

of human rights.

• Postponed to 2012• Achieved• Achieved

• Achieved

PURCHASING • Launch self-appraisal of suppliers up to 20% of spend. • Achieved

ENVIRONMENT • Increase scope of Environmental Management System by 10%.• Complete biodiversity sensitivity analysis in Asia-Pacifi c. • Estimate mining contractors’ energy consumption.• Continue the Group’s energy effi ciency plan.

• Achieved• Achieved• Achieved• Achieved

INNOVATION • Introduce at least fi ve products or processes that offer an environmental benefi t.• Estimate the carbon footprint of at least three new products.

• Achieved• Achieved

SAFETY • 20% decrease in LTA Rate for employees and contractors.• 100% of Group sites audited by management on the "Serious Six Protocols".


HUMAN RESOURCES

• Implement Annual Training Plans in at least fi ve Group Divisions according to the principles defi ned in 2010.

• Continue to analyze and implement suitable benefi t programs (life insurance / AD&D / Health & Medical benefi ts) in fi ve countries (Tunisia, Hungary, India, Turkey, Vietnam).

• Involve the European Works Council in at least one Sustainable Development initiative. • Begin implementing the Group Diversity Program.

• Achieved

• See (1)


COMMUNITIES • Provide operations with the appropriate tools to build their stakeholder mapping and action plans.

• Carry out at least three community relations events in each Division.

• Achieved

• Achieved

Our Sustainable Development Goals


(1) Vietnam replaced by Ukraine; India and Turkey postponed to 2012.


2012 objectives Objectives for the future

• Update the general compliance program for the Group, incorporating the latest recommendations, particularly with respect to preventing fraud and corruption.

• Establish an annual audit to check compliance of a division’s trade and competition practices.

Continue to comply with best Corporate Governance practices by: • Making sure that the ethical and fair competition rules set by the Group

for its business conduct are observed in all the countries where it operates. • Promoting more than 20% representation of women on its Board

of Directors.

• Launch self-appraisal of suppliers on child labor prevention on a scope representing 15% of spend.

• Audit fi ve suppliers in zones identifi ed as sensitive.

Ensure that the practices of the Group’s suppliers meet international standards on child labor.

• Defi ne an Environment Management System (EMS) audit process and audit 5% of Group sites.

• Defi ne a biodiversity action plan for 10% of sites located in sensitive zones in terms of biodiversity.

• Draw up an energy action plan for fi ve of the 15 highest energy-consuming mining sites.

• Defi ne an overall thermal effi ciency indicator as a key process monitoring indicator.

Continue reducing the Group’s environmental impacts. • Ensure that operations’ environmental management systems are robust. • Continue action in favor of biodiversity. • Begin a water consumption optimization program on sensitive sites. • Improve the Group’s energy effi ciency by 10% over fi ve years

(baseline 2009).

• Estimate the carbon footprint of three new products.• Assess the recyclability of some minerals.

Continue to factor Sustainable Development into R&D projects. • Regularly launch products that offer an environmental benefi t. • Work on the carbon footprint of new products.

• Reduce the LTA Rate for employees and contractors to under 1.6.

• Defi ne and collect an occupational disease monitoring indicator.

• Add a new tracking criterion for behavior-based safety to the self-appraisal program on the Group’s Serious Six Protocols.

• Site managers to take part in a Safety University within 12 months following their appointment.

Continue to improve safety culture to reach the zero-accident target. • Continue reducing the workplace accident rate. • Continue efforts on behavior-based safety.

• Carry out at least one training initiative on basic knowledge for the least qualifi ed personnel in fi ve new divisions.

• Gradually roll out recommendations on the prevention of unsuitable working hours (management information and regular audits).

• Create an indicator on the number of employees benefi ting from death coverage for any cause.

• Draw up a bi-annual report on diversity in order to measure the progress made and to be achieved.

• Set up a signifi cant initiative to raise our employees’ awareness of disability issues.

Give our employees the means to develop professionally and provide satisfactory benefi ts. • Encourage the recruitment and promotion of diverse profi les and

consideration for disabilities within the Group. • Improve training programs for the least qualifi ed categories of personnel

in particular. • Set up relevant benefi ts, particularly in terms of death & disability coverage. • Promote constructive dialogue with personnel representatives and trade

union organizations.

• Set up the Community Relations protocol in the most sensitive 20% of sites on the subject in each division.

Maintain good community relations to enable our activities and communities to develop together.

Review & Outlook 3 07


Our Commitments & Achievements


Promoting the best principles

We comply with applicable French regulations on Corporate Governance and refer to the AFEP-MEDEF Code for the implementation of best practices.

The 16 members of the Board of Directors perform their duties in accordance with the Board’s Internal Charter, which defi nes

its operating principles and rules of conduct for its individual members.

Three specialized committees with a consultative role give the Board the benefi t of their opinions and advice in preparing its decisions on strategy (Strategic Committee), on appointment and compensation of the Group’s corporate offi cers or top managers (Appointments & Compensation Committee), and accounting and fi nancial risks facing the Group (Audit Committee).

In 2005, Imerys was organized as a Limited Liability Company (Société Anonyme) with a Board of Directors, and on April 28, 2011, Imerys opted to merge the positions of the Chairman of the Board of Directors and the Chief Executive Offi cer. Furthermore, a Deputy Chairman was appointed as "Lead Director" (Administrateur Référent). He assists the Chairman in organizing the work of the Board and its Committees and in the Company’s relations with its controlling shareholders, while making sure that best practices are applied in terms of Corporate Governance. This governance structure has been adopted by the main French listed companies and is intended to simplify the functioning and operational management of the Company in order to improve its effi ciency.

Governance & Ethics

In accordance with its Internal Charter, the Board of Directors assesses its activity every year. In general, the members of the Board and its Committees judge their activities as satisfactory. Nevertheless, improvements are often suggested.

In 2011, they resulted in the following changes:• the proportion of women on the Board increased again, reaching 12.5% (compared with 6% in 2010);• an ethics representative was appointed in early 2011, tasked in particular with giving an opinion prior to any transactions on securities in the Company being considered by executive managers.

The Company’s Corporate Governance principles and practices – composition, duties and compensation of the Board of Directors and its specialized committees – are described in the Annual Report and in the Internal Charter adopted by the Board of Directors. These documents can be viewed on our website.

Imerys 3 Sustainable Development Report 2011 Governance & Ethics 3 09

44%Percentage of independent Directors, higher than the proportion recommended for controlled companies by AFEP-MEDEF

90%Attendance rate in Board Meetings



The Board of Directors places increasing importance on Sustainable Development risks and issues, which are the subject

of a formal presentation at one of its meetings every year. It tasks the Audit Committee with the annual review of the related organization, policies, objectives and results.

Stringent management of Sustainable Development

Our Sustainable Development strategy is set by Imerys Executive Committee, based upon the recommendations from a Steering Committee that meets every quarter and represents different corporate functions. Three Executive Committee members have seats on the Steering Committee.

This strategy is initially drafted by the SD Working Group made up of Environment, Health & Safety, Sustainable Development and Human Resources professionals of the operating entities and geographic zones in which we operate. The Group’s Vice President Environment, Health & Safety (EHS) coordinates SD objectives as well as their implementation.

Shared and observed ethical principles

The Imerys Code of Business Conduct and Ethics, published in 2006, summarizes the principles that the Group expects of all of its employees, particularly executives, and the contractors, suppliers and other partners with whom it has forged close relations. The Code was amended in late 2011 to take into account the geographic expansion of the Group’s activities, developments in its regulatory framework and compliance with the best practices of comparable corporations. It is designed to lead everyone, in their daily work, to behave in accordance with local legislation and observe the principles of responsibility, integrity, fairness and openness that are the Group’s values.

Published in 10 languages, the Code of Business Conduct and Ethics is available to anyone from Imerys web and intranet sites. It is presented in internal seminars and regularly covered in the Group’s magazine. Online training, initially created in the United States, is followed by all US employees, all of the Group’s other main managers and, since 2011, all new management recruits. At year-end 2011, approximately 2,300 employees had been trained in the Group’s Code of Business Conduct and Ethics and more than 300 additional employees were in the training process.

Since the end of 2010, the Group has set up a simplifi ed annual reporting process that enables division management to report

Tightening prevention of fraud and corruption risksWe have begun the review of the Group’s current general compliance program. Prevention of fraud and corruption risks and compliance with competition regulations are part of the program. It will be updated in 2012 and further employee training actions will be carried out in 2012.

2,300employees trained on the Code of Business Conduct and Ethics

The achievement of our goals, both fi nancial and non-fi nancial, relies on disciplined, effi cient and transparent business management. We are therefore guided by Group-wide common principles such as respect for human rights and compliance with applicable regulations, particularly as regards competition and the prevention of fraud and corruption risks.


Governance & Ethics 3 11

any infringements of the Code of Business Conduct and Ethics that may come to their knowlegde with respect to the year in question.

Respect for human rights

We comply with the Universal Declaration of Human Rights and monitor the risk associated with the Group’s growth in some emerging countries. We have placed special importance on the prevention of child labor since 2009: operations managers on all Imerys sites in zones where vigilance is particularly recommended by indices such as FTSE4Good have been trained in the relevant regulations. In parallel, the biggest suppliers of those sites have been asked to certify that they comply with the International Labour Organization convention on child labor. Finally, application of the Child Labor protocol is systematically checked in the internal audit assignments performed in those countries (9 sites audited in 2011).

More generally, the Group intends to involve its suppliers in its Sustainable Development process, particularly through its internal qualifi cation system, which is intended to reduce supply risks and qualify suppliers, particularly in terms of child labor.

Good control of the main risks

Under the supervision of the Board of Directors and its Audit Committee, our Internal Control department annually updates the mapping of the major fi nancial

and operating risks facing our activities. It checks that the action plans needed for their correct control are implemented.

We have undertaken a continuous improvement process on our internal control systems. Twenty-eight of the Group’s main entities (representing approximately 65% of consolidated turnover) take part in the detailed self-assessment of the 12 main processes with the potential to generate material risks for the Group. These assessments are updated every two or three years according to the entity and the selected processes. Furthermore, in 2010, the smallest legal entities in the Group carried out a simplifi ed self-assessment of their internal control mechanisms in rotation.

Framework agreement and risk assessmentOrganized in Lisbon, Portugal in June 2011, the Imerys Convention brought together the Group’s top 200 managers for three days. Several workgroups at the Convention addressed the analysis of the Group’s main risks. Based on the workgroups’ proposals, the Executive Committee defi ned a list of action plans that are now in the implementation process, in order to improve the control of certain risks or reduce their potential impact on the Group. In early 2012, these actions were incorporated into the update of the Group’s risk mapping.

The main rules defi ned by the Code of Business Conduct and Ethics:

> Protection of the environment and human rights;

> Relations with local communities and diversity;

> Employee safety; > Confi dentiality rules;> Prevention of insider trading,

confl icts of interest, fraud or corruption;

> Protection of the Group’s assets and fair competition.

Close-up on…


Our global presence means we must carefully control the environmental consequences of our activities. We therefore require all of our operations to assess their environmental risks in order to prevent or reduce negative effects on the environment.

3 Environmental Management Systems

Levers for continuous performance improvement

We believe that sound Environmental Management Systems (EMS) and compliance with the laws,

regulations and internal protocols(1)

that apply to our activities are essential to our performance and long-term future. Action programs for the continuous improvement of our environmental performance are being set up in the principal areas, e.g. effi cient use of mineral resources, consideration of biodiversity during site operation and restoration, improvement of energy effi ciency, and reduction of greenhouse gases, optimization of water consumption and limitation of dust releases.

A momentum of continuous improvement

We regularly conduct audits on our sites to check compliance with current regulations and internal protocols, and to build a continuous improvement momentum. Our team was bolstered in 2010 and now numbers around 20 Environment, Health and Safety specialists selected from operations. Peer review is provided for all audits to ensure quality and action plans are monitored quarterly to guarantee implementation. The EHS audit team conducts 30 to 35 audits per year. The schedule for the audits is defi ned according to a risk grading model that factors in criteria such as size of site, existence of mineral solid storage facilities, occurrence of environmental incidents or lost-time accident rate.

Environment


32EHS audits implemented in 2011

(1) We have created a set of global Environment, Health & Safety (EHS) protocols that apply to all our activities. There are 17 protocols relating to safety, 5 for health and 8 for the environment. They are available on our EHS intranet and are regularly covered in training sessions.


In 2011, we continued to focus on setting up Environmental Management Systems (EMS). Furthermore, we continued our review of the 20 operations managing the main impound basins, dams, stockpiles, etc. The 20 operations will be audited over four years, with fi ve site audits completed in 2011.

We report "environmental incidents" in relation to our sites in order to determine their causes and take corrective measures to reduce the risk of their reoccurrence. In 2011, twelve incidents were reported. Finally, we carefully monitor any prosecutions against us on environmental grounds and the amount of any fi nes we may have to pay.

Tools to measure the performance of our Environmental Management Systems

Since 2009, our goal has been to have an Environmental Management System (EMS) in all of our operations. In 2010, our operations began regular self-appraisals on the implementation of our Group protocol, based on the 8 pillars of an effective EMS. Each division manager presents the results to the Chairman & CEO in quarterly business reviews.

Supported by personnel awareness-raising and training activities, the program led to a signifi cant increase in the number of sites covered by an EMS. At year-end 2011, there were 220 sites with an EMS,

Brazil: Integrated Management SystemIn December 2011, Imerys RCC and PPSA renewed their OHSAS 18001, ISO 9001 and ISO 14001 certifi cations. Both companies now benefi t from an integrated management system. These certifi cations go beyond international recognition for the best practices implemented by Imerys. They refl ect the commitment of RCC and PPSA, both located in Pará state, Brazil, to Sustainable Development.

Environment 3 13

compared with 107 in 2009. Imerys encourages ISO 14001 or EMAS certifi cation, which is considered an outstanding achievement at Imerys but is not mandatory. Efforts will be continued in 2012 with the rollout of initiatives to estimate the robustness and effectiveness of existing systems. Regular self-appraisal will measure the achievement of the highest priority target designated by each operation.

Environmental Management Systems

Eight pillars of an effective Environmental Management System: existence of a policy; identifi cation of aspects & impacts; identifi cation of legal requirements; setting goals and targets; appointment of a specifi c representative; training given out; emergency procedures; audit.

2009 2010 2011

59 6881

48

92

139

Sites with the 8 pillars of a good EMS

ISO 14001 or Eco Management and Audit Scheme (EMAS) certifi ed sites


The locations of our mining operations are determined by geology. On these sites, we strive to protect biodiversity as we carry out our activities. Our mining sites and quarries are restored as operations progress, often contributing to the conservation of fauna and fl ora species.

Our mining and processing operations use land and natural resources. This can affect biodiversity and ecosystems

throughout the lifecycle of our quarries. We ensure our mining activities are compatible with biodiversity conservation through relevant planning and restoration.

When restoration is an opportunity for biodiversity

Our "Post-Mining Rehabilitation" protocol requires operations to prepare their quarries’ future and describes the restoration methods that will be applied during the site’s operating life and when it closes.

In this effort to reduce our activities’ negative impact on biodiversity, we act along three main lines: keeping affected surface area to a minimum, continuous restoration whenever possible and taking offset measures. Our quarries, especially their end-of-life restoration, offer many opportunities to enrich biodiversity by reviving natural areas or helping to conserve endangered animal or plant species. Several examples of positive contributions to ecosystems on our sites demonstrate this phenomenon. Most of these examples result from partnerships with local environmental associations or NGOs.

Better knowledge serving best practices

Our strategy consists of building our knowledge and understanding of the environment and, in sensitive zones, encouraging the development of biodiversity management plans. Our biodiversity sensitivity study begun in Europe in 2009 continued in 2011 and now covers all our sites worldwide. In total, approximately 15% of our sites are located in or near recognized zones of biodiversity interest.

We plan to step up reviews of the "Post Mining Rehabilitation" protocol under the EHS program and a specifi c module on biodiversity management plans will also be added to the program. Our 2012 goal is to roll out the new module at 10% of our biodiversity-sensitive sites.

Furthermore, we continue to play an active part in mining industry associations to share best practices on biodiversity management and defi ne common performance indicators.


3 Biodiversity

Restoring sites in a manner which respects biodiversity


Model restoration Australia

The Lal Lal quarry in Victoria, Australia is being transformed into a biorich plantation that will set a new benchmark.

Developed in cooperation with Ballarat Region Treegrowers, the project covers 10 hectares of marshy land around the Imerys Minerals Australia mine. In line with methods outlined in the book "Recreating the Country" by Stephen Murphy, the aim is to design sustainable ecosystems that are rich in native fl ora and fauna species. A plantation sustainability index was defi ned based on diversity, structure, species survival and location. Most of the plant species are native and grown from local seed.• A varied mix of local fl owering trees was planted, comprised of 15 families, 20 genera and 40 species;• These include fi ve eucalyptus and seven acacia varieties, all native, which will foster development of wild fauna;• Several native forest species was planted on the southern part of the site to show that biorich plantations can produce high-quality logs and useful products for agriculture.

Over fi fty people, including several Imerys employees, volunteered for

the two planting phases in late 2010 and mid-2011. More than 9,000 plants in the program are in place and the site is being monitored continuously.

Imerys will manage and maintain the site when planting is completed. The program will show how farming activities, forestry and rehabilitation can mix. The aim is to prove that biodiversity can be improved, vegetation protected and water quality improved, while developing local forestry and farming.

An experimental plantation in the UK

> Imerys Minerals Ltd (United Kingdom) is assessing the development potential of planting Araucaria araucana – a rare species on the IUCN red list – in former kaolin quarries. Commonly known as the monkey-puzzle tree and considered lucky by Cornish miners returning from Chile, the Araucaria was introduced into the UK in the late 18th century.

> This ambitious biodiversity conservation project is being carried out in partnership with the Combined Universities of Cornwall. The aim is to create one of the world’s largest populations of Araucarias by gradually increasing the genetic diversity. Imerys Minerals Ltd is making a commitment to future generations with this experimental approach: the Araucaria takes more than a century to fully grow and doesn’t produce seeds until it is 35-40 years old!

Environment 3 15

Close-up on…

Visit our website: www.imerys.comThen go to Sustainable Development section, environmental focus/restoration & biodiversity page.


3 Energy & Emissions

Air emission reduction targets

For several years we have implemented action programs to improve the energy effi ciency of our industrial activities and thereby reduce our greenhouse gas emissions.

In our business, the main cause of direct greenhouse gas emissions is the use of fuel. Energy is mostly used to convert raw materials or products, while some

operations cause CO2 emissions directly, particularly by decarbonation.

Greater energy effi ciency for lower emissions

We consider the improvement of our energy effi ciency as the major lever for reducing our greenhouse gas emissions. We set the goal of improving that indicator by 10% in fi ve years using 2009 as a baseline. The related reduction in CO2

emissions was increased by the use of renewable energies in some of our units (see box page 17).

The work of the Energy team, part of the Group’s Process Technology Department since 2011, is arranged along two main lines:

• Improving knowledge of the Group’s energy consumption and carbon emissions. Since January 1, 2011, we have monitored data on energy and CO2 on a monthly rather than quarterly basis. In-depth analyses of trends are regularly provided to the Executive Committee.

Also in this timeframe we have overhauled the assessment method for energy productivity to improve its quality and accuracy by measuring energy consumed per metric ton (SEC: Specifi c Energy Consumption). In parallel, estimates of mining operations’ energy consumption, which began in 2010, have been stepped up. In 2012, fi ve pilot sites (chosen from the 15 highest-consuming sites) will undergo in-depth monitoring and implement an action plan to reduce their consumption.

• Setting up and tracking action plans undertaken on sites to improve process energy effi ciency. The Process & Technology Department provides >


Energy consumptionand productivity

(1) Net of resold electricity. (2) Production sites only.

28,322

100 35,180 35,654

2009 2010 2011

Total energy consumption(1) (thousands of Gj)

Energy productivity(2) (baseline 100 in 2009)

97.7 96.9


Replacing natural gas with biomass

Ukraine

Sunfl ower husks have become the main energy source for our Ukrainian subsidiary Vatutinsky. They have successfully replaced gas, which has risen 60% in price over the past 2½ years.With gas-fi red rotary kilns, energy accounted for a large share of the plant’s costs. The unit makes chamottes for the European refractories and sanitaryware industries. Finding a cheaper, alternative fuel was crucial to its long-term future.Replacing gas with coal was ruled out. Given the local abundance of straw, a renewable resource, a study was carried out on its use. After a series of tests at our French chamotte plant, it was decided to try sunfl ower husks, another widespread crop in Ukraine.

After checking performance on a pilot facility in early 2009, the operation’s management worked to set up a full-size project. By May 2011, six months after the fi rst investment, sunfl ower husk had replaced more than 60% of gas. The operation obviously led to a signifi cant reduction in the unit’s CO2 emissions (a 59% decrease from 2010) and should be repeated on other kilns at the plant.

Environment 3 17

Imerys RCC’s energy action plan

> Fuel oil is a heavy variable cost at Imerys RCC’s kaolin plant in Barcarena, Brazil. The team formed to reduce consumption focused on evaporators and driers, the most energy-intensive items.

> Several solutions were identifi ed: pre-heating slurry before it goes into the evaporators and driers; preheating air entering the main ventilator with heat from the burner; reducing the slurry’s water content by increasing the amount of solids in the fi lters and reducing dilution after fi ltration.

> Since the launch of the project – a 2010 award winner in our internal Sustainable Development challenge – the operation has signifi cantly cut its fuel oil consumption per metric ton of production.

Innovative projects regularly focus on substituting biomass for fossil fuels. The Building Materials, Chamottes Europe and Performance & Filtration Minerals Europe activities have made the most progress. At year-end 2011, biomass accounted for 4.6% of the Group’s total energy consumption.

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support as needed and helps engineers on the ground in the Group’s different divisions to optimize the effi ciency of their machines. For thermal energy, for example, a total thermal effi ciency indicator has been defi ned as part of more general work on increasing our overall industrial effi ciency. In line with European benchmarks(1), this indicator will be rolled out on all of our sites in 2012, and will allow us to index avenues for improvement, monitor energy effi ciency and draw up action plans.

More formal methods have already led to a signifi cant improvement in energy effi ciency (up 0.8% in 2011, i.e. 3.1% aggregate improvement over two years) and these improvements should continue in the coming years. In parallel, specifi c CO2 emissions relating to fossil energy and processes continued to decrease (- 2.1% in 2011; - 4.5% on aggregate since 2009), thanks to higher energy effi ciency and an energy mix that generates fewer emissions. The relative share of biomass also rose slightly to 4.6% of total energy consumption.

Twenty-one of our industrial sites take part in the greenhouse gas emission quota trading system set up in the European Union. For the third year of application of Phase 2 of the trading system (2008-2012), those sites’ emissions remain below the allocated emission quotas.

SOx, NOx and dust emissions

Controls on the emissions of these materials are becoming stricter in many countries. We intend to be proactive with respect to those controls. Fuel generates oxides of nitrogen (NOx) and sulfur dioxide (SOx) during calcination or sintering phases. In addition, some processing operations give off sulfur, which causes SOx emissions.

Our mining activities can generate fugitive dust emissions, which we control by measures such as spraying water on roads, installing sprinkler systems or planting vegetation.

(1) Cf. "Reference Document on Best Available Practices for Energy Effi ciency" published by the European Commission in February 2009.

> Using locally mined resources helps to reduce supply costs but also environmental impacts such as CO2 emissions from mineral transport. This approach leads us to consider other sources for some of our plants.

>


2011 Energy consumption by source

2011 CO2 emissions by source

CO2 emissionsand carbon effi ciency

2009 2010 2011

2,371

2,975 2,910

Access to minerals: favor local sources

Energy (excluding biomass)

Processes

BiomassElectricity (net) & steam

Natural gas

Other fossil fuels

Biomass

41.1%

24.2%

4.6%

30.1%

5%

7.6%

87.4%

(1) Production sites only.

100

Total CO2 emissions(thousands of metric tons)

Carbone effi ciency(1) (baseline 100 in 2009)

97.5 95.5

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Environment 3 19

Water consumption is essential in many of our activities. We recycle water whenever possible and our standards recommend regular reviews of the resources available to reuse water on our sites. We produce little industrial waste and the great majority of the waste generated is recycled.

3 Water & Waste

Carefully monitoring withdrawals and releases

We withdraw ground water to keep our quarries in good working order and use water to process our

minerals. Water is often stored in impound basins for reuse and after settling and treatment, it is ultimately released to the environment. In addition, our products are sometimes delivered as aqueous suspensions.

Towards optimal water consumption

We survey our water consumption(1)

and have gathered data on the quantities of water recycled by our sites since mid-2010. However, we do not consider this recycling data stable enough to be published in its current state. The mapping of operations in zones where water is scarce was extended in 2011 to all our sites using the WBCSD’s(2)

Global Water Tool. Our data quality will be further improved in 2012 and our three-year plan calls for pilot programs in the future on water effi ciency at operations using large quantities of water.

Extensively recycled industrial waste

Our activities produce small quantities of industrial waste, as we mainly transform our minerals by mechanical and physical processes. Minerals with no market value are usually stored on or near our sites as they may be useful in the future. In many cases these minerals are used as fi ll in post-mining restoration work and are not recorded as "waste". In 2011, as the European directive on

mining waste management came into effect, our European sites implemented plans for managing their inert waste.

In 2011, our activities generated 310 Kt of industrial waste of which less than 1% was hazardous waste. Approximately 63% of that tonnage is already recycled and innovative actions have been taken by some of our operations to implement further recycling activities.

(1) Excluding ground water withdrawn to maintain quarries.(2) World Business Council for Sustainable Development.

Water consumption(millions of liters)

48,916

2009

53,491

2010

50,228

2011


300scientists and technicians, 8 main research centers and 20 regional laboratories.

Assessing and improving our products and processes

Innovation, one of our strategic priorities, represented 1.5% of our turnover in 2011, a signifi cantly higher percentage than in recent years.

Our innovation process is decentralized, with each activity in charge of creating its own products and processes. The central Innovation Department coordinates those efforts.

Greater effi ciency of research efforts

A highlight of 2011 was the defi nition of an action program to make the resources dedicated to Research, Development & Innovation at Imerys even more effi cient. The best tools for managing the divisions’ research programs are used in this way, helping to improve the effi ciency of the Group’s innovation efforts, which unceasingly focus on new markets. Several innovation projects have been analyzed in terms of their carbon footprint at an early project stage. "Green economy" expectations also result in new ideas. Our innovations are generated through in-depth knowledge of our customers’ needs and the constant search for new features that we can give to our minerals, so that they in turn contribute the required properties to our customers’ products. Sales of new products accounted for 5% of Imerys’ turnover in 2011.

Innovative products designed under a sustainable rationale

Our ability to combine minerals enables our customers to make signifi cant, quantifi able improvements, e.g. better controlled, more cost-effective production, lower consumption of expensive raw materials, greater energy effi ciency, reduced emissions and environmental impact. We also optimize our own processes to increase our productivity, but also limit our energy consumption and carbon emissions and make better use of natural resources.

For several years, we have factored innovation goals into our Sustainable Development action plan. These include:• The development and introduction every year of products with an environmental benefi t,• The measurement, from the design stage, of our innovations’ carbon footprint.

We achieved our goal in 2011, with the market launch of many new products offering an environmental, health or safety benefi t. In 2012, we intend to keep up our efforts and assess the recyclability of some of our minerals in cooperation with IMA-Europe.

Constantly improving the environmental impact of our products and processes is a priority for our R&D programs. In 2011, Imerys launched around 50 new products, a large number of which offered an environmental, health or safety benefi t.


Innovation

RAIM011_RDD_20_GB_bat.indd 20 23/03/12 10:10

3 Safety

An ambitious, systematic Safety process

Safety and workplace health are priorities for Imerys. Mining and mineral processing activities demand a strong safety culture if accidents are to be avoided. To continue making progress on this issue, we have coordinated a series of initiatives over the past seven years.

Our approach is centered on clearly defi ned and regularly audited safety protocols, a demanding global training plan

and continuous improvement programs. This has enabled us to improve our safety performance substantially. Now, we want to build our efforts into a systematic process with the setup of the Imerys Safety System in early 2012 (see box p.22).

Top management mobilization to prevent serious accidents

Following the three fatal accidents that occurred at Imerys in the 2nd half of 2010, a major action plan was rolled out in 2011 to prevent serious accidents. Online training was set up on the "Serious Six Protocols", which cover the mining activities that entail the highest risks of serious injury. The manager of each of our sites followed the training in the 1st quarter of 2011. In April 2011 the site managers were also tasked with producing a monthly self-diagnosis of the correct application of the Serious Six Protocols. The results are presented quarterly to the Executive Committee in business reviews. Five sites per month are chosen at random for quality control to make sure the process is consistent overall. Finally, webinars throughout the year enhanced managers’ knowledge of the Serious Six Protocols, including a specifi c session on sharing best practices and the main lessons learned from the program.

The program will continue in 2012 with the addition of a new self-assessment criterion focusing on behavior-based safety, which will also be the subject of online training.

Continuous improvement levers for safety culture

The monitoring and analysis of safety indicators is essential to the continuous improvement of our performance. Following the signifi cant improvement in the lost-time accident (LTA) rate since 2005 for Group employees (a 82% decrease from 2005 to 2010), since January 2011 we have tracked our monthly safety performance using a combined employees/contractors indicator (formerly, this data was monitored and analyzed separately). This enables us to involve our contractors fully in Imerys’ safety process.

As at the end of December 2011, the combined LTA rate was 1.69, a 31% decrease from the previous year, in line with our target of 1.9.

Furthermore, since January 1, 2011, data on accidents without lost time has also been reported monthly and consolidated in order to track and understand our safety performance in more depth. We plan to publish this new indicator in 2012.

Safety & Health

Safety & Health 3 21

>

LTA rate(1)

Combined employees/contractors(2) rate

(1) LTA rate: (number of accidents with lost time x 1 000 000) / number of hours worked.

(2) Employees of a company under contract with Imerys, in charge of a specifi c operation on site or of providing a service.

20102009 2011

2.46

1.69

3.09


An integrated approach

Example from operations

Imerys Safety System

I CARE Ceramics

Based on a set of common safety values defi ned in the new Health & Safety Charter signed by Gilles Michel on taking over at the head of the Group in April 2011, the Imerys Safety System organizes the various components of the safety program implemented since 2005 into an integrated approach.

The aims are greater clarity and impact.

The Imerys Safety System sets out the rules and standards that the Group wants all of its operating activities worldwide to observe. It also describes

the main continuous improvement levers for safety used in the Group.

Finally, it indexes the training and communication tools for applying those levers. These tools are regularly updated under a management system.

Imerys’ decentralized management organization means that the Group’s various activities are asked to build their own programs in line with the framework and principles defi ned in the Charter.

Launched at the end of March 2011, I CARE, the Minerals for Ceramics division’s new safety program, fi ts perfectly with the Imerys Safety System. It enables the Division to roll out the principles of the System in its operations. The program is not only designed to improve operations’ safety standards. It also aims to make safety a core value by changing mindsets. The program will focus on three main areas: tightening safety procedures; training management in behavior-based safety and safety culture; and organizing workgroups to analyze behavior-based methods, improvement areas and possible solutions.

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The 2011 safety initiative on mining practices

> To focus our mining standards more on improving operational control, in early 2011, we began taking a comprehensive, objective and independent inventory of our mining practices. Over two years, an external organization specializing in mining risk prevention will inspect 22 mining operations in our different business groups across several continents. These site visits will be used to compare the Group’s mining practices with a reference grid of the best practices in the industry. This will result in new mining standards that we will roll out in all of our activities.



Reducing workplace accidents and serious accidents in the Group also involves root cause analysis following accidents and action on behavior-based safety.Safety Alerts are circulated whenever a serious accident occurs. In 2011, Imerys issued eight Safety Alerts setting out the causes of the accident, the corrective measures and the lessons learned. Video reconstructions of the most serious past accidents were also produced and circulated to the Group’s sites to foster understanding.The Safety Culture Improvement Team takes action on priority sites. Corrective measures are monitored in detail. It stepped up its program in 2011 with 15 assignments across every region where the Group operates. Orientation meetings are organized at operations that have recently joined the Group within 90 days of their acquisition or startup. The integration of Talc de Luzenac operations from August 2011 led to presentations of our safety process at formal meetings.

Finally, we consider that the setup of behavior-based safety programs fosters the emergence of a strong safety culture. Three new training sessions were held in 2011 for our EHS managers on the implementation of the ISIS program created in 2010. In total, approximately 175 of our sites (compared with 80 in 2009) have launched a behavior-based safety program and we will step up those efforts in 2012.

"Safety Toolbox Meetings"Launched in Asia-Pacifi c in 2010, the Safety Toolbox Meetings program has proved an effective tool for improving safety awareness on the ground. These short, regular discussions (the recommendation is 15 minutes per week) are organized by unit management with operators on specifi c safety issues. They are an effi cient way of raising awareness, reducing accident risk and complying with regulations. A monthly message on Safety Toolbox Meetings is circulated in the EHS network.

Improvement through training and awareness-raising

The Imerys Safety University (ISU) was initially designed to develop site managers’ safety culture with training modules on risk assessment, employee guidance, behavior-based safety and causal analysis. Now, the ISU has several formats that address new audiences (e.g. supervisors) and new topics. Since 2005, almost 50 ISUs (of which 11 in 2011 alone), organized in 33 countries and 8 languages, have trained more than 1,400 participants. Virtual training sessions and useful tools make these formal meetings even more effective.

Safety & Health 3 23

>

Severity rate(1) Combined employees/contractors(2)

(1) Severity rate: (lost days x 1,000) /number of hours worked.

(2) Employees of a company under contract with Imerys, in charge of a specifi c operation on site or of providing a service.

50Imerys Safety Universities

1,400participants since 2005

20102009 2011

0.09

0.17

0.11


Our occupational health program is designed to address these points through fi ve main protocols. We systematically

check the correct application of these protocols as part of our EHS audits.

Managing the impact of our products

For six years, our European operations have taken part in the European agreement on "workers’ health protection through the good handling and use of crystalline silica and products containing it". The third NEPSI(1) report on the application of the agreement and the improvements made will be published in June 2012. We identify and manage our products’ health impacts throughout their lifecycle. We implement European REACh(2)

regulations, though "minerals which occur in nature" are exempt, signifi cantly limiting the effects of REACh on Imerys. We have, of course, registered those products that are covered by the regulations. In line with the implementation of GHS/CLP regulations from the end of 2010, additional safety studies have been conducted on the substances marketed in Europe by the Group’s operations. Some substances have been classifi ed as hazardous and notifi ed as such to the European Chemicals Agency (ECHA). In most cases, the hazard stems from the presence of crystalline silica in alveolar form. Working with the European Industrial Minerals Association (IMA-Europe), Imerys has helped to defi ne an

industry-wide methodology for quantifying the percentage of the hazardous substance in a fi nished product.

Raising our employees’ awareness

Initiatives to raise awareness of workplace health continued in 2011, mainly through Safety Universities. Work during the year also concerned the defi nition of a new EHS reporting indicator for recording occupational diseases in the Group which will be deployed in 2012. This indicator will help to defi ne priorities for action on workplace health.

(1) European Network on Silica.(2) Registration, Evaluation, Authorisation and Restriction of Chemicals.


3 Health

Managing workplacehealth issues

Imerys has a strong commitment to workplace health because the Group’s employees are potentially exposed to mineral dust and chemicals. Similarly, the processes we use can cause noise in many different ways. Certain activities also involve moving heavy loads or carrying out repetitive tasks.

> To facilitate international trade in substances and mixtures while protecting human health and the environment, the United Nations has standardized classifi cation and labeling criteria and set down the general principles for their application. This is the Globally Harmonized System for the Classifi cation, Labeling and Packaging of substances. The European Community has integrated these international criteria into law through regulation CLP 1272/2008, which is gradually replacing the previous system.

Globally Harmonized System / Classifi cation, Labeling and Packaging of substances (GHS / CLP)

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Adapting to the Group’s evolution and supporting our employees

The mission of Human Resources is to make sure that the Group has the people it needs to grow and to offer its employees fulfi lling career possibilities.

Human Resources professionals, in close cooperation with operations managers, defi ne and implement principles

and processes in line with the Group’s decentralized management organization. In Human Resources, Imerys has organized its sustainable development strategy along four main lines:

• Diversity: encourage the recruitment and career development of profi les from varied backgrounds throughout our organization.

• Training: ensure that divisions implement training plans and encourage operations managers to roll out new actions, particularly on safety, for the least skilled employees.

• Benefi ts: continue to analyze the benefi ts we provide and implement new plans, particularly in life / disability / health insurance, wherever necessary.

• Industrial relations: foster positive relations with employee representation bodies and trade unions.

Promoting diversity

The Group launched its diversity initiative in late 2010 and rolled it out gradually in 2011, with the signing of the Imerys Diversity Charter by our Chairman & CEO, with relevant training, particularly for Executive Committee members and Human Resources managers.

A diversity awareness program, centered on a 30-minute online training module, will reach all managers on every continent. The strengthening of our Human Resources structures in major countries such as India and Brazil in 2011 should speed up rollout of this program.

Specifi c reporting, with an intermediate version published at the end of 2011, will enable us to measure progress in the years ahead.

Human Resources

Human Resources 3 25

>

16,187employees in 2011


The Diversity Charter

World

Workplace diversity is a combination of visible and invisible differences that infl uence employees in their attitudes, behaviors, values and ways of working within their professional environment. At Imerys, we strive to recognize, accept and value these differences, fostering an environment of mutual respect and dignity.

One of the strengths of Imerys is the diversity of our workforce, with men and women of many nationalities and backgrounds working together and sharing common objectives. Embracing workforce diversity opens up opportunities for innovative, creative solutions, which helps enhance business decisions and better serves the needs of our customers.

This Diversity Charter formally outlines Imerys’ commitmentand responsibility in achieving and valuing greater diversity within IMERYS. It is to be used as part of our ongoing efforts on several fronts: recruiting, promoting based on performance, providing professional development on an inclusive basis and creating training programs.

Under this Charter, Imerys shall:• Cultivate a culture based on mutual respect and appreciation for each individual.• Ensure that all employees demonstrate behaviors and attitudes that show understanding and awareness of different backgrounds and culture. • Develop programs focussed on the leading priorities of our Diversity Plan: gender, nationalities, ethnic minorities, and disabled people.• Respect and promote the principle of non-discrimination in all aspects of human resources management, with particular emphasis on the recruitment, training, promotion and career development of employees.• Strive to achieve greater diversity in our management to refl ect global scope of our business.• Endeavour to refl ect the cultural and ethnic diversity in the local workforce of the communities where we live and do business.• Make all of our employees aware of our commitment to non-discrimination and diversity and keep them informed of the practical results of this commitment.Daniela McDowall

Quincy and Fernley ControllerFiltration Minerals North America

Testimony

"I joined Imerys in 2005, as a Reporting Supervisor, working in Imerys do Brazil, in Sao Paolo. With the acquisition of World Minerals, I was transferred to California to be part of the integration process, and I am currently a Financial Controller in the Division. Imerys allows you to be a global citizen and lets you move to where the opportunities are".



Stepping up training efforts

Imerys operates on a decentralized basis through a great number of sites and on every continent. That context means training is an essential driver of improvement, dialogue and motivation.The Imerys Learning Center was founded in 2006 to help the Group’s employees to develop key skills in Geology, Finance and Marketing etc., to create communities for dialog and to foster individual recognition. In early 2011, the Group gave Imerys Learning Center new logistical and other resources to enable it to offer a broader range of training and to expand its geographical reach.

In 2011, there were 36 sessions delivered in the Group in 14 different locations including the United States, Brazil, Asia and Europe. Furthermore, specifi c training was developed on Management Principles. Several test sessions took place in the second half of 2011 to participants’ satisfaction.

As training is a crucial development lever, the Group decided in the fi rst half of 2011 to set up a Learning & Development Committee, chaired by a Business Group head and made up

of division and support managers. Its main missions can be summed up as follows:• Give the Group a vision in the areas under the Committee’s scope,• Ensure that the various corporate training initiatives are aligned with Imerys’ strategy and short-term action plans,• Give relevant opinions and advice on the content of training programs under consideration, whether these are general programs or aimed at specifi c categories of employees.

The Committee has already met twice, in July and December 2011, and is already making progress towards its goals.

Furthermore, precise recommendations on the goals of a training process and the defi nition of a training plan were sent to all our entities in April 2011 with the fi rst tangible results, including in terms of learning basic skills (reading, writing, arithmetic).

Training (in thousands of hours)

Share of women in workforce (%)

>

>


Total workforce

Salaried employees

2009 2010 2011

197215

235

2009 2010 2011

15.515.014.8

29.729.929.8


Improving benefi ts

Imerys strives to offer all its employees benefi ts in line with the local context, particularly as regards life and disability insurance. Every year the Compensation & Benefi ts department analyses the benefi t systems set up in a given number of countries where Imerys operates. It identifi es improvement areas and implements new plans wherever necessary.Benefi ts systems were optimized in China and South America (particularly Brazil, Argentina and Chile) in 2009 for almost 3,000 employees. In 2011, benefi ts were improved in Tunisia, Spain and Ukraine. In Hungary, new life insurance coverage began in January 2012. Our policy of raising benefi t standards in our activities will continue in 2012.

Encouraging industrial dialogue

We intend to promote and develop constructive relations with trade union organizations and personnel representatives in every country where the Group operates. Almost 70% of the Group’s employees come under a collective bargaining agreement on topics such as working hours and work organization or compensation and benefi ts.

The European Works Council was involved in several processes (Imerys Safety University, Sustainable Development Challenge, etc.), while in France the number of government initiatives on employment issues required several negotiations with trade unions.

Supporting the development momentum

The acquisition of the Groupe de Luzenac in summer 2011, together with the various organizational adjustments that occurred throughout 2011, enabled Imerys to keep up its internal promotion drive. Internal Mobility days were organized in Europe and the Americas in addition to the existing monthly reviews in order to strengthen the mechanism further.In parallel, despite the great caution

imposed by economic uncertainties, some critical functions have been bolstered by external recruitment, particularly in Innovation, Geology, Communications and Audit & Internal Control.

Checking and improving data accuracy

The Human Resources function believes that a reliable base of information is needed to track trends in a number of parameters (e.g. headcount, absenteeism) and, as the case may be, make decisions in all relevant areas.

Consequently, actions in the same country that call upon identical external professionals for pay processing and personnel administration come under a continuous improvement process in terms of the security and reliability of individual data. In China, the work begun in late 2010 should be completed in the fi rst half of 2012, although it has taken into account around 10 legal entities and almost 25 sites.

This action will help to optimize the collection of overall salary data, which started in September in line with 2012 budget preparation, in the main countries where the Group operates.

The "Group Pension Committee" which was set up in 2010, played its full role in controlling and guiding the main pension systems. It met four times, mainly to discuss Imerys’ pension schemes in the United Kingdom and, to a lesser extent, the United States. In December 2011, the Committee presented its assignments, work and goals to the Group Audit Committee.

Employee headcount in 2011(by business group)

220people changed jobs through internal mobility in 2011

>


Mineral for Ceramics, Refractories, Abrasives & Foundry

Performance & Filtration Minerals

Pigments for Paper & Packaging

Materials et Monolithics

Holdings

14%

2%

24%

26%34%


Two new benefi t plans

SpainFor all our activities in this country, the 220 employees benefi t from complementary insurance in the event of death and coverage in the event of absolute, defi nitive disability. These systems are in addition to obligatory basic coverage. As from January 1, 2012, coverage will be identical for all employees in all entities in Spain.

UkraineFrom January 1, 2011 the Group set up death and disability coverage for 70% of our Ukrainian employees. Complementary health insurance is also available to the great majority of managers in the country. Work is in progress to bring all our subsidiaries into the system.


Training in basic knowledge for adults in South Africa The Imerys Andalusite business unit supports ABET*, South Africa’s literacy and numeracy drive. "ABET is an opportunity to get all employees up to basic standards of arithmetic and reading and writing English", says Veneshan Veramuthu, Talent Development Manager at Imerys South Africa. Participants can also learn mining-related subjects and are rewarded for their progress.The Andalusite business unit signed a new agreement with the participants, setting out exactly what the company expects of them. Imerys South Africa is currently looking into the possibility of offering employees who have completed the basic skills training to take a

National Certifi cate in Mining. The aim is to keep up motivation for learning and improve technical knowledge on production units.

Improving our employees’ basic education enables Imerys to give them tasks with greater responsibilities. "As an employer, it’s our responsibility to effect a positive change", adds Veneshan Veramuthu.

* ABET: Adult Basic Education and Training.

Employee headcount in 2011(by geographical zone)

Western Europe

Central Europe

North America

South America

Asia-Pacifi c

Africa

41%

9%17%

19%

5%

9%


The will to address communities’ expectations

Transparency, openness and dialogue form the basis of the constructive relations we seek to build wherever we operate worldwide. We aim to contribute to the economic and social development of our host communities.

Taking into consideration the expectations of communities near to our industrial sites is crucial to our business’s

long-term future. Our worldwide goal is to increase positive fallout from our activities and reduce any negative effects.

A decentralized approach for local action

Imerys’ experience shows that communities expect commitments from us. It also tells us that action is more effi cient when it is managed locally.

This is why our "Community Relations Protocol", adopted in 2007, formally delegates responsibility for those relations to the highest authority on each site. Under the protocol, which was published in seven languages, every operation must map its stakeholders and draw up action and continuous improvement plans. The protocol encourages proactive dialogue with stakeholders and demands that every admissible complaint be treated seriously.

In that framework, the Group’s operations have developed a great number of projects such as contributing to local economic development, promoting education and training, and taking part in community improvement activities. This is refl ected in the quality of the community relations projects submitted every year for our internal Sustainable Development challenge (almost half of

the 53 entries in 2011). Since late 2010, a database has listed case studies to help our global operations share valuable experience.

Formalizing relations to ensure success

Furthermore, to support our operations in rolling out the Community Relations Protocol and help them organize existing actions into a formal community relations program, the Group created a Community Relations Toolbox in 2011. The Toolbox is available on the Imerys intranet and has been the focus of awareness-raising and training activities, including articles in the in-house magazine and on the intranet site, presentations in operations and a webinar involving approximately one hundred participants in Europe, Asia and the Americas.

Specifi c action was taken on our largest sites to ensure effective rollout of the protocol by the end of 2011. We will keep up these efforts in 2012 with the aim of implementing the process in 20% of the Group’s units, selected according to their sensitivity on the issue.

Communities



L’importance d’une utilisation effi cace de la ressource

Discovery and learning for a young audience

Europe

European Minerals Day was an opportunity for the Performance & Filtration Minerals Europe Division to raise public awareness of its businesses, particularly with young people.

Seven of the Division’s sites took part in the initiative. In Beverley (UK) and Villers (France), school students toured a quarry and learned about biodiversity, both today and 200 million years ago. The young audience was excited to take part in a fossil hunt and a presentation on the different stages in restoration and the use of minerals. The Gran Bianco site (Italy) organized workshops for pupils at a local elementary school in cooperation with a children’s hospital charity. At MikroMineral (Turkey) employees’ children were invited to an open day and learned about the environmental benefi ts of carbonates. Alicante (Spain), Axat and Murat (France) took the opportunity to present their issues and plans to local councilors.This coordinated participation earned the jury’s special award for Community Relations in our in-house Sustainable Development challenge.

In total, 34 sites representing all of Imerys’ business groups took part in European Minerals Day in Belgium, France, Germany, Italy, Spain, Sweden, Turkey and the United Kingdom, but also outside Europe (Argentina, Australia, Brazil, Chile, China, India, Malaysia, Singapore, Taiwan and the United States).

The Imerys Ceramics France unit in Beaujard (Seine-et-Marne) hosted the kick-off event for the Minerals Day in France. Local and national elected representatives visited the plant and the restored Montpothier quarry, which was listed as a site of ecological, fl oral and faunal interest in 2000.

Communities 3 31

Close-up on…

European Minerals Day 2011

> From Friday May 13 to Sunday May 15, 2011, more than 200 events – site and quarry tours, restoration or environmental project presentations – were organized for European Minerals Days in 32 countries (including 11 outside Europe). The aim was to improve the public’s knowledge of the mineral industry’s issues. Almost 30,000 visitors were welcomed the event. The focus was particularly on biodiversity conservation, with examples from restored mining sites.

> European Minerals Day is coordinated by IMA-Europe,the European Industrial Minerals Association, UEPG, the European Aggregates Association, and CEMBUREAU, the European Cement Association.


(1) Number of voluntary departures (excluding dismissals) compared with headcount as of December 31 of previous year (open-ended contracts only).

(2) According to the defi nition used in the Group (application of national law or regulations or, as the case may be, according to the International Labour Organization defi nition).

Social Data 2011 2010 2009

Total headcount 16,187* 15,090 14,592Of which the following were on fi xed-term contracts 816* 664 512

Average headcount 15,821 15,093 15,368

Employees by business group

Minerals for Ceramics, Refractories, Abrasives & Foundry 5,572* 5,664 5,330

Performance & Filtration Minerals 3,809* 2,769 2,865Pigments for Paper & Packaging 2,345* 2,364 2,108Materials & Monolithics 4,168* 4,028 4,048Holding Companies 293* 265 241

Employees by geographic zone

Western Europe 6,715* 6,064 6,207Central Europe 1,406* 1,229 1,119North America 2,748* 2,431 2,387South America 1,420* 1,484 1,237Asia-Pacifi c 3,112* 3,137 2,934Africa 786* 745 708

Employees by function (%)

Operations / Production / Manufacturing 68.5* 69.4 69.9Logistics / Purchasing 5.0* 4.7 4.5R&D / Geology 3.7* 3.4 3.1Sales & Marketing 8.2* 7.8 7.9Support & Administration 14.6* 14.7 14.6

Percentage of women (%)

All employees 15.5* 15.0 14.8Salaried employees 29.7* 29.9 29.8Senior managers 11.1* 11.3 9.2

Employee turnover (%)(1) 5.7* 5.4 4.6

Absenteeism (%) 2.45 nd nd

Recruitment 2,279* 2,701 1,581

Internal mobility 220* 250 362

Number of disabled employees(2) 239 196 209

Training hours 235,000 215,000 197,000

Technical expertise (%)Environment, Health & Safety (%)Management (%)

38

5111

40

519

44

479

Share of employees covered by a collective bargaining agreement (%) 70 nd nd

Working hours lost due to strikes 26,583 9,432 4,872

Proportion of shareholders among employees (%) 14.0 18.0 20.0

Indicators & Methodology

MethodologyThe processes used to gather the data were controlled by the Group’s Internal Control department for 2009 and 2010 data.

To ensure that its Environmental and Social reporting complies with the new regulatory obligations arising from the passing of the "Grenelle II de l’Environnement" law of June 2010, Imerys asked Cabinet Deloitte to check a selection of 2011 Sustainable Development indicators published in the present Sustainable Development report.

The indicators audited by Cabinet Deloitte are marked with an asterix*.

This assignment resulted in a report describing the work done and the related observations.

The report by Cabinet Deloitte, as well as the methodology adopted for the defi nition of each of our indicators, is presented on our website www.imerys.com, Sustainable Development section.


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(3) The 2009 and 2010 data presented in this section differs – as regards the Environment – from that published in the Annual Report 2010. Allowance for several changes in Group structure and the correction of some reporting errors are the main reasons for any difference.(4) In terms of energy consumption and CO2 reporting:

• Only the Group’s production sites come under the perimeter. Marketing activities, sales offi ces and administrative offi ces, for which most of the selected indicators would not be relevant, were excluded from the scope of reporting. This exclusion has a minor impact on energy consumption and CO2 emissions.

• On a few sites, Imerys contracts out some activities, mainly transportation and mining. When data on fuel is available, particularly when Imerys buys the fuel, Imerys takes them into account. In the event that the fuel is bought by contractors, the corresponding data has not been taken into account because it could not have been recorded with the necessary accuracy and reliability. Only data concerning companies directly controlled by Imerys has been taken into account.

• GHG Protocol methodology was applied to emissions in 2009 and 2010 in order to provide comparable information under the 2011 perimeter. For sites within the USA, the e-grid emission factors were used.

(5) Ratio analyzing the change (from year Y to year Y-1) in total energy consumption per ton, excluding variations in perimeter, volume or mix. Production sites only.(6) Ratio analyzing the change (from year Y to year Y-1) in total CO2 emissions per ton (scopes 1 and 2 of the GHG protocol) excluding variations in perimeter, volume or mix. Production sites only.(7) SOx and NOx emissions are estimated applying conversion factors which are specifi c to each source of combustion consumed.

Environmental data(3) 2011 2010 2009

Environmental Management Systems

Number of ISO 14001 or EMAS certifi ed sites 81* 68 59Number of sites with the 8 pillars of a good EMS 139 92 48

Regulatory compliance

Number of prosecutions 30 10 32Total amount of fi nes in euros 1,417 28,872 21,248

Total energy consumption(4) (thousands of GJ) 35,654* 35,180 28,322

of which electricity (net) & steam (%)of which natural gas (%)of which other natural fossil fuels (%)of which biomass (%)

30.1* 41.1* 24.2*4.6*

30.839.8 25.44.0

29.040.526.44.1

Energy productivity(5) (baseline 100 in 2009) 96.9 97.7 100

Total CO2 emissions(4) (thousands of metric tons) 2,910* 2,975 2,371

of which energy-related emissions (%)of which process-related emissions (%)of which biomass-related emissions (%)

87.4* 7.6* 5.0*

88.8 7.0 4.2

90.3 5.64.1

Carbone effi ciency(6) (baseline 100 in 2009) 95.5 97.5 100

Total water consumption (millions of liters) 50,228 53,491 48,916

of which water from water suppliers (%)of which water from underground sources (%)of which water from surface sources (%)of which water from other sources (%)

14.0 46.824.914.4

14.442.627.515.6

12.758.821.27.3

Waste (metric tons) 310,072* 312,583 282,879

of which hazardous industrial waste (%)of which recycled hazardous industrial waste (%)of which non-hazardous industrial waste (%)of which recycled non-hazardous industrial waste (%)

0.3*0.2*

36.7*62.8*

0.5 0.2

38.161.2

0.4 0.1

33.765.8

SOX emissions (metric tons)(7) 3,530 3,788 3,214

NOX emissions (metric tons)(7) 6,665 6,322 4,942

Safety data 2011 2010 2009

Lost-time accident frequency rate

Imerys employees rate 1.73* 2.19 2.87Contractors & agency staff rate 1.58* 3.34 3.96Combined employees / contractors rate 1.69* 2.46 3.09

Workplace accident severity rate

Imerys employees rate 0.12* 0.10 0.19Contractors & agency staff rate 0.09* 0.07 0.04Combined employees / contractors rate 0.11* 0.09 0.17

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154, rue de l’Université – F – 75007 ParisTel + 33 (0) 1 49 55 63 00Fax + 33 (0) 1 49 55 63 01www.imerys.com

Imerys - a French limited liability company (société anonyme) with Board of DirectorsShare capital 150,285,032 euros Trade register RCS Paris B 562 008 151

Design and production: Photo credits : Imerys Talc Luzenac France/A. Baschenis, Paul Williams, Dominique Lecuivre, Clive Kessel, Thomas Schauer, Gernot Gleiss, Planète 360-D.Glevarec, Photothèque Imerys DR.Impression : Les Deux Ponts. The report is printed on paper that is FSC certifi ed and contains Imerys pigments. Wood used in the paper pulp comes from forest managed for sustainable development.

Sustainable Development 2011

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sustainable development 2011 - · pdf filewith creating the strategy, ... personnel...

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