Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decarbonization and digitalization
• Growth-enabling work environment
• Positive local impact
• Responsible sourcing
• Good governance, transparency and business ethics

Environmental Achievements

• Reduced specific net Scope 1 CO2 emissions from 619 kgCO2/t cementitious product in 2022 to 607.7 kgCO2/t cementitious product in 2023, an annual drop of 1.8%
• Increased alternative fuel thermal substitution rate to 19.6% in 2023 (from 17.5% in 2022)
• Reduced clinker-to-cement ratio from 78.4% in 2022 to 76.9% in 2023
• Six Group integrated cement plants achieved zero-waste certification, with five attaining Platinum rating
• Percentage of total waste diverted from landfills increased to 87.5% (from 84.8% in 2022)
• Reduced water consumption by 3.7% compared to 2022
• Increased use of recycled water to 71.0% of overall water consumption

Social Achievements

• Achieved TITAN’s lowest Lost Time Injury Frequency Rate (LTIFR)
• Launched Titan Pulse, a new well-being program in Titan America
• Increased share of women in management to 20.8% (from 16.5% in 2020)
• Increased share of women in talent pool to 24.0% (from 13.0% in 2020)
• Implemented 265 community engagement initiatives, benefiting over 330,000 people
• Total spending for community initiatives exceeded €2.6 million

Governance Achievements

• Improved credit ratings from S&P and Fitch
• Implemented a revised Remuneration Policy, including share-based remuneration for the non-executive Chair
• TITAN’s Group Anti-Fraud Compliance Program won a Silver prize
• Implemented a new Group Guideline for Contractor Management

Climate Goals & Targets

Environmental Challenges

• Climate change and increasing regulations to reduce GHG emissions
• Market conditions and cyclicality in the construction industry
• Political and economic uncertainty in operating markets
• Global systemic disruptions
• Talent management challenges
• Currency volatility
• Interest rate risks
• Liquidity and leverage risks
• Counterparty risks
• Health and safety risks
• Environmental risks and regulatory compliance
• Energy volatility
• Physical impacts from climate change and extreme natural disasters
• Cybersecurity risks
• Supply chain disruptions

Mitigation Strategies

• Decarbonization strategy including alternative fuels, clinker substitution, energy efficiency, and CCUS
• Geographical diversification and robust planning processes
• Annual budgeting and strategic review processes
• Risk assessments, scenario evaluation, and contingency planning
• Talent management initiatives including HR policies, training programs, and diversity initiatives
• Natural hedges, currency swaps, and forward contracts
• Mix of fixed- and floating-rate debt and interest rate derivatives
• Maintaining sufficient cash and credit lines
• Limits on exposure to financial institutions and collateral mechanisms
• Monitoring customer receivables and provisions for doubtful receivables
• Detailed Health and Safety policies, procedures, training, and auditing
• Environmental management systems, compliance with regulations, and ESG targets
• Group Compliance Program, awareness training, and monitoring
• Third-Party Due Diligence System
• Strategies to adapt sourcing and insource energy needs
• Infrastructure design, emergency plans, and insurance coverage
• Information Security Management Framework, cybersecurity awareness program, and security systems
• Evaluating supply chain resilience, securing supplies through contracts, and developing flexible sourcing strategies

Supply Chain Management

Supplier Audits: 24.7% of key suppliers assessed in 2023 as adhering to ESG standards or having improvement plans.

Responsible Procurement

• Group Procurement Policy
• Group Code of Conduct for Procurement
• ESG criteria for supplier qualification

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperatures
• Flooding
• Water stress
• Wildfires

Transition Risks

• Carbon pricing
• Reputational damage
• Litigation
• Carbon leakage
• Increased production costs
• Use of concrete and cement substitutes

Opportunities

• Development and sale of new low-carbon products and solutions
• Alternative energy sourcing
• Product portfolio adaptation
• Resource efficiency

Reporting Standards

Frameworks Used: Belgian law, 2020 Belgian Code on Corporate Governance, Non-Financial Reporting Directive 2014/95/EU, European Taxonomy Regulation (EU) 2020/852, IFRS, IIRC principles, UN SDGs 2030, UN Global Compact, GCCA Charter and Guidelines, SASB Standards, TCFD recommendations, GRI standards

Certifications: ISO 14001, ISO 45001, Energy Star, TRUE Zero Waste

Third-party Assurance: PwC and DNV

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)
• Goal 16 (Peace, justice, and strong institutions)

Initiatives contribute to these goals through decarbonization efforts, community engagement, sustainable product development, and responsible sourcing.

Sustainable Products & Innovation

• Low-carbon cements
• Ternary blended cement Type IT
• Pozzolanic cement CEM IV/B(P-W) 32.5R
• Blast furnace slag cements CEM III/B 32.5N-SR and CEM III/B 42.5N-SR
• Hydraulic road binder HRB E4
• CEM II/B-LL 42.5N white cement

Awards & Recognition

• CDP 'A' List for climate action
• MSCI ESG Rating of 'AA'
• Silver prize for TITAN’s Group Anti-Fraud Compliance Program
• Silver Badge from EcoVadis
• 95% ESG Transparency Score from ATHEX ESG
• Platinum-level recognition in Forbes Transparency Index