Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate & Energy
• Circular Economy
• Health & Safety
• Environment & Nature
• Social Responsibility

Environmental Achievements

• Pueblo Plant achieved ENERGY STAR® certification for the second consecutive year.
• Entered into long-term agreements with renewable energy suppliers for electricity at Mexico operations and Odessa and Rapid City cement plants.
• Reduced specific net CO2 emissions by 8.8% to 744 kg per metric ton of cement between 2005 and 2019.
• Achieved a 3.8% reduction in CO2 emissions from 2018 levels in 2019.
• Increased alternative fuel utilization by 28% at the Pueblo Plant.
• Increased raw material substitution rate to 2.08%, using 148,000 metric tons of discarded material from other industrial processes.

Social Achievements

• Received the “Great Place to Work” designation for the first time in the U.S. and increased ranking in Mexico to 14th from 30th.
• Improved ethics score, obtaining 82.35 out of 100 points in Corporate Integrity 500.
• Received the Socially Responsible Company Award for the 15th consecutive year.
• Implemented a health and safety management process focusing on behavior-based safety training and regulatory compliance.
• Pueblo Plant earned ISO 9001, 14001, and 45001 certifications.

Governance Achievements

• Fitch Ratings upgraded GCC’s global credit and corporate debt rating from BB to BB+.
• GCC stock was included for the first time in the FTSE index and FTSE BIVA.
• Sustainability Committee developed the Company’s new sustainability strategy focusing on CO2 reduction.

Climate Goals & Targets

Environmental Challenges

• Severe weather, rising seas, higher temperatures, and other effects of climate change could increase raw material prices, interrupt supply, decrease construction activity, and damage infrastructure.
• Increased energy consumption due to increased operation time at the Pueblo and Rapid City plants.

Mitigation Strategies

• Internal sourcing of fuel and raw materials through owned or leased quarries and mines.
• Vertically integrated supply chain to manage costs and reduce supply disruption risk.
• Technical improvements in cement plants allowing for the use of coal or alternative fuels.
• Long-term agreements with solar and wind energy suppliers to reduce CO2 emissions and energy costs.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Vendor Development Program (Mexico)

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Rising seas
• Higher temperatures

Transition Risks

• New environmental laws and regulations

Opportunities

• Adoption of new technologies and products
• Mitigation of volatile energy costs through alternative fuels
• Increased production of blended cements
• Long-term agreements with renewable energy suppliers

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ENERGY STAR, ISO 9001, 14001, 45001 (Pueblo Plant)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

GCC’s 2030 sustainability targets and action plans are based on these SDGs.

Sustainable Products & Innovation

• Blended cements

Awards & Recognition

• ENERGY STAR
• Great Place to Work
• Socially Responsible Company Award
• Lytx® Driver of the Year Award
• John P. Gleason, Jr., Leadership award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Circular Economy
• Social Responsibility
• Diversity and Inclusion

Environmental Achievements

• Reduced net CO2 emissions by 10% from 2005 levels
• Reduced specific net CO2 emissions by 10% to 734 kg CO2 per metric ton of cement between 2005 and 2020
• Achieved a 1.34% reduction in specific net CO2 emissions from 2019 levels
• Record year of Portland limestone cement (PLC) sales with six times growth over 2019 sales (PLC reduces CO2 emissions by 7%)
• Two cement plants earned EPA 2020 ENERGY STAR® certification for superior energy performance (Pueblo Plant for the third consecutive year, Rapid City Plant for the first year)
• 11% reduction in lost time incident frequency and a 31% reduction in severity rate in health and safety

Social Achievements

• Five consecutive years of certification as one of Mexico's best companies by the Great Place to Work® Institute
• U.S. Division received its second consecutive Great Place to Work® certification
• Provided approximately 6,000 food kits to families in Chihuahua and the Sierra Tarahumara
• Donated a ventilator to the State of Chihuahua
• Awarded 61 scholarships in Mexico and is building a scholarship program in the United States
• GCC University provided more than 22,000 hours of training to 1,770 teammates

Governance Achievements

• Formed the Diversity and Inclusion Committee to strengthen diverse culture, promote labor inclusion, and ensure equity
• Updated cybersecurity policies based on regulations, standards, and best practices
• Sustainability Committee focused on climate change initiatives to produce cements with a lower clinker factor and increase alternative fuel use
• CEO signed a letter of commitment for the Women Empowerment Principles, established by the United Nations

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains
• Economic uncertainty affecting employee morale
• Climate change impacts (severe weather, rising seas, higher temperatures, etc.)
• Potential increases in raw material, energy, and fuel costs
• Supply chain disruptions
• Decreased demand from lowered construction activity

Mitigation Strategies

• Formed a multi-disciplinary task force to manage the COVID-19 response
• Implemented strict protocols to prevent outbreaks
• Provided bonuses to frontline employees
• Internal sourcing of fuel and raw materials
• Vertically integrated supply chain
• Sophisticated distribution network
• Transitioning electrical needs towards renewable energy sources
• Investing in permits and processing equipment to increase the use of alternative fuels
• Increased production of blended cements

Supply Chain Management

Supplier Audits: 412 new suppliers screened using environmental and social criteria in 2020

Responsible Procurement

• Supplier code of conduct
• 33% of goods and services procured from local providers in 2020
• 54.4% of total expenditures spent locally in 2020

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Rising seas
• Higher temperatures
• Global pandemics

Transition Risks

• Increases in pricing of raw materials, energy, and fuel costs
• Interruption in the supply of raw materials
• Decreased demand from lowered construction activity
• Cancellation or delay of projects
• Disruption or delay in production
• Disruption in transportation logistics
• Damaged infrastructure and production facilities
• New environmental laws and regulations

Opportunities

• Adoption of new technologies and products
• Transitioning to renewable energy sources
• Increased production of blended cement
• Use of Portland limestone cement (PLC)
• Increased use of alternative fuels

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (some cement plants)

Third-party Assurance: No external verification

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

2030 SDG targets for Climate and Energy, Health and Safety, and Circular Economy

Sustainable Products & Innovation

• Portland limestone cement (PLC)
• GCC Tijeras 1P cement (using natural pozzolan)

Awards & Recognition

• Portland Cement Association’s (PCA) 2019 Chairman’s Safety Performance Award (Pueblo Plant)
• Portland Cement Association (PCA) 2020 Energy and Environment Award for Innovation (Odessa Plant)
• Sixteen consecutive years recognized by the Mexican Center for Philanthropy (Cemefi) and the Alliance for Corporate Social Responsibility (AliarSE) as a socially responsible business

Environmental Metrics

ESG Focus Areas

• Climate Change & Greenhouse Gases
• Energy Management
• Air Emissions
• Health & Safety
• Employee Training & Development
• Sustainable Products & Innovations
• Business Ethics
• Product Quality and Safety

Environmental Achievements

• Reduced specific gross CO2, Scope 1 emissions per ton of cementitious material by 3.4% compared to 2015 baseline.
• Reduced specific Scope 2 emissions per ton of cementitious material by 25.8% compared to 2015 baseline.
• Achieved 15% renewable energy share in overall electricity consumption.
• Pueblo and Rapid City cement plants achieved ENERGY STAR certification.
• Increased alternative fuels utilization to improve combustion efficiency and reduce emissions at the Samalayuca plant.
• Decreased clinker content from 88% to 86% in 2022 with blended cements.
• Pueblo plant started producing 100% PLC (Portland Limestone Cement).

Social Achievements

• Partnered with an international firm to create a strategic roadmap for the safety program.
• Launched an expat program for internal mobility and development.
• Achieved more than 20 hours of training per employee.
• Recognized by the Mexican Center for Philanthropy with the Empresa Socialmente Responsable award for the 18th consecutive year.
• 11% women representation overall and 9% in management.

Governance Achievements

• Board of Directors discussed sustainability-related topics during half of their 6 meetings in 2022.
• Established a Sustainability Committee reporting directly to the CEO.
• Senior management incentivized to reach short-term sustainability goals.
• Conducted first Climate Scenario Analysis.

Climate Goals & Targets

Environmental Challenges

• Increase in incident rate from 2.4 to 3.1 in 2022, including two employee fatalities.
• Climate change and its impact on operations and supply chain.
• Transition risks related to regulatory changes, market shifts, and technology obsolescence.
• Physical risks from severe weather and natural disasters.

Mitigation Strategies

• Focusing on enhancing safety governance and implementing a Serious Injury and Fatality Prevention System.
• Implementing a multi-year plan to incorporate CCUS technology at select plants.
• Improving thermal energy efficiency, adopting carbon capture, increasing the use of alternative fuels, and lowering the clinker factor.
• Transitioning to renewable energy sources.
• Developing a sophisticated distribution network to reduce the risk of supply disruption.

Supply Chain Management

Supplier Audits: 306 new suppliers aligned in Code of Business Conduct and environmental criteria in 2022

Responsible Procurement

• Code of Conduct
• Environmental criteria
• ISO 450001, ISO 14001 and ISO 9001 compliance

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Natural disasters
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Technology obsolescence
• Lack of federal policy on carbon pricing in the US

Opportunities

• Development of energy-efficient products
• Implementation of CCUS technology

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Standards (Construction Materials sector)

Certifications: ISO 14001 (66.8% of cement sites), ENERGY STAR (Pueblo and Rapid City cement plants)

Third-party Assurance: KPMG Cárdenas Dosal, S. C.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Portland Limestone Cement (PLC)
• Blended cements with lower clinker factor

Awards & Recognition

• ENERGY STAR certifications (Pueblo and Rapid City plants)
• Chairman’s Safety Award (Rapid City cement plant)
• Top Safety Awards (two Iowa ready-mix plants)
• Empresa Socialmente Responsable award (Cemefi)