Climate Change Data

Environmental Metrics

ESG Focus Areas

• Education
• Water provision to communities
• Health and Safety
• Environmental Sustainability
• Community Engagement
• Corporate Social Responsibility

Environmental Achievements

• Implemented robust EMS 14001:2015 for improving environmental performance.
• Engaged in afforestation initiatives through seedling distribution.

Social Achievements

• Supported Chepkutung Secondary School with cement for classroom construction.
• Donated furniture to Kasoito Primary School and EAPC Plc Kibini Primary School.
• Provided clean water through six boreholes in Kibini Hill.
• Implemented COVID-19 preventive measures and donated masks and sanitizers.
• Organized a food drive for affected families.

Governance Achievements

• Upholds high standards of corporate governance.
• Guided by Capital Markets Authority Guidelines, Public Officer Ethics Act, and best practices.
• Established Board Committees with defined roles and terms of reference.
• Implemented a Code of Ethics emphasizing lawful and ethical conduct.

Climate Goals & Targets

Environmental Challenges

• Persistent downward price pressure due to competition.
• Insufficient throughput due to tight working capital position.
• Plant operating below capacity.
• Deteriorating working capital position.
• High level of legacy debt.
• Litigation costs and provisions.
• Oversupply of cement in the domestic market.
• Increasing competition impacting credit and liquidity risks.
• COVID-19 pandemic impacting consumer purchasing power.

Mitigation Strategies

• Business re-engineering and cost containment measures.
• Staff rationalisation programme.
• Plant spares purchase (KES 100 Million) to improve efficiency.
• Recapitalization through land sale proceeds.
• Balance sheet restructuring programme.
• Exploring refinancing options.
• Cost rationalization (staff and borrowing cost).
• Partnering with the national government in its affordable housing and infrastructure agenda.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Stability
• Environmental Conservation
• Social Inclusion
• Governance
• Community Relations

Environmental Achievements

• Launched Green Triangle Cement, aimed at minimizing carbon emissions through less clinker and energy utilization.
• Planted more than 2,000 trees.
• Donated over 1000 tree seedlings to various institutions.

Social Achievements

• Offered internships to graduates and attachment opportunities to over 200 students.
• Conducted Fundi Seminars for over 200 construction workers.
• Conducted a Girl Child Awareness programme and provided sanitary towels.
• Drilled a borehole in Bissil, set up a water storage tank and installed solar panels, providing clean water and electricity to the community.
• Maintained 6 community boreholes, providing water for communities in Bissil.

Governance Achievements

• Enhanced governance framework, implementing comprehensive governance protocols.
• Active board committees with defined terms of reference.
• Independent directors (except Managing Director).
• Established whistleblowing measures to discourage corrupt and unethical practices.

Climate Goals & Targets

Environmental Challenges

• Depreciation of the Kenyan Shilling, increasing input and distribution costs.
• Political uncertainty and disruptions.
• Delayed investment decisions and balance sheet restructuring.
• Insufficient working capital to support plant throughput.
• Intensified competition and new market entrants.
• Increased input prices.

Mitigation Strategies

• Plant refurbishment (kiln shell replacement), improving production volumes.
• Market regeneration efforts.
• Retirement of corporate debt (Shs 1.8 billion).
• Disposal of idle land assets to generate income and improve working capital.
• Organizational restructuring to enhance effectiveness.
• Strategic investments to revitalize the plant and increase production capabilities.
• Regularization plan for encroached land (expected proceeds of Shs 5 billion).
• Subdivision of adjacent property into 50-acre plots for sale (expected proceeds of Shs 5 billion).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Green Triangle Cement