Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible business
• Climate change and energy
• Circular economy
• Environment and nature
• Social responsibility
• Contributing to a sustainable built environment

Environmental Achievements

• Emissions intensity reduced from 1.9 kgCO2e/£ revenue in 2019 to 1.7 kgCO2e/£ revenue in 2020.
• Increased use of alternative fuels in cement plants, achieving a fossil fuel replacement rate of more than 45%.
• Increased recycling by 50% at Kinnegad cement plant.
• No process waste from Hope plant sent to landfill in 2020.
• 93% diversion of waste from landfill in 2020 for GB sites.
• Reduced wooden pallet use by 80% and eliminated paper sheet use at Kingscourt Brick.

Social Achievements

• Launched a new Group Health, Safety & Wellbeing policy.
• Improved SHE ASSURE internal reporting system.
• Developed the HSEQ HUB, an intranet repository for HSEQ procedures.
• Continued to invest in employee training and development, despite the pandemic.
• Implemented robust COVID-19 protocols and support for employees.
• Continued community engagement and sponsorship.

Governance Achievements

• Appointment of first Group Head of Sustainability.
• Appointment of a Designated Non-executive Director (DNED) responsible for sustainability.
• Appointment of a DNED responsible for workforce engagement.
• Strengthened Board with new independent Non-executive Directors.
• Undertook a triennial board effectiveness review.
• Developed a new purpose and values for the Group.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted trading in the first half of 2020.
• Increased competition and rising costs of energy and commodities.
• Transition to a lower-carbon economy.
• Potential for supply chain disruptions.
• Managing health and safety risks during the pandemic.

Mitigation Strategies

• Took early and decisive action to restrict capital expenditure and preserve liquidity.
• Implemented strategic purchasing plan to minimise key supplier risks.
• Developed a sustainability strategy to reduce environmental impact.
• Implemented robust COVID-19 protocols across all sites.
• Improved data collection and reporting to better manage risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible sourcing practices, including BES 6001 certification.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Emission restrictions, transition to a low-carbon economy

Opportunities

• Development of energy-efficient products and solutions, renewable energy projects, nature-based solutions.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, BES 6001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16
• SDG 17

Various initiatives contribute to these goals, as detailed in the Sustainability Report.

Sustainable Products & Innovation

• Recofoam® (recycled asphalt)
• Slate asphalt

Awards & Recognition

• Transportation Innovation Award (Whitemountain)

Environmental Metrics

ESG Focus Areas

• Planet
• People
• Places

Environmental Achievements

• Reduced CO2 emissions intensity by 7% compared to 2020
• Increased alternative fuel rate at Kinnegad plant to 75%
• Diverted 94% of general waste from landfill
• Planted c.25,000 trees in 2021
• Reduced CO2 emissions by 30% compared to conventional treatments in a road resurfacing project using in-situ recycling

Social Achievements

• Launched first graduate programme with 12 candidates
• Maintained apprenticeship numbers with 37 new apprentices
• Increased colleague engagement by 5%
• Launched a new Diversity and Inclusion Policy
• Increased the number of women in management and senior leadership roles to 119
• Donated materials to various community groups and organizations
• Supported community projects with charitable donations exceeding £150,000

Governance Achievements

• Established a Sustainability Committee
• Refreshed the management and senior leadership team
• Implemented changes to the annual bonus scheme aligning the pension contribution levels of executive directors with those of the wider workforce
• Updated Performance Share Plan Rules approved by shareholders

Climate Goals & Targets

Environmental Challenges

• Input cost inflation (energy, fuels, bitumen, carbon permits)
• Supply chain disruptions (fuel, HGV drivers)
• Climate change (physical impacts and transition risks)
• Digitalisation
• Credit risk from customers
• Health, safety, and wellbeing risks

Mitigation Strategies

• Layered hedging strategy for energy and carbon costs
• Dynamic pricing approach to recover input cost increases
• Investing in plant and protective personal equipment with advanced safety features
• Revitalized health and safety campaigns and prioritized Visible Felt Leadership safety visits
• Upgraded employee assistance programme and addressed mental health through awareness and partnerships
• Developed a sustainability framework with strong links to purpose and values
• Set new commitments and performance metrics
• Enhanced communications programme
• Refreshed senior management team
• Implemented a consistent standard for financial controls across the Group

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• BES 6001 Framework Standard for Responsible Sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Availability of resources (water, electricity, fuels)

Transition Risks

• Failure to achieve net zero commitments
• Rising input costs
• Significant capital investment required
• Increased consumer preference for lower carbon products

Opportunities

• Development of energy-efficient products and processes
• Increased demand for sustainable products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001:2015

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 12
• SDG 13
• SDG 15
• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 11
• SDG 16
• SDG 17

Various initiatives contribute to these goals as detailed in the sustainability report.

Sustainable Products & Innovation

• Bulk CEM II product with high proportion of limestone
• Warm Mix asphalt
• Recycled slate asphalt
• Recofoam® foam mix asphalt
• Low-carbon concrete mixes

Awards & Recognition

• MPA’s John Crabbe Trophy
• Ecovadis Silver Medal

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy and carbon
• Responsible resource use and the circular economy
• Environment and nature
• People and communities
• Contributing to a sustainable built environment
• Responsible business principles

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Ensure ethical operations and responsible sourcing through the accreditation of key sites to an appropriate responsible sourcing standard; Source locally wherever feasible and appropriate to do so

Climate-Related Risks & Opportunities