CEMEX, S.A.B. de C.V.

Climate Impact & Sustainability Data (2006, 2016, 2017, 2018, 2019, 2020, 2022)

Reporting Period: 2006

Environmental Metrics

Total Carbon Emissions:56.37 million metric tons (Net CO2)

Renewable Energy Share:25% (in European cement plants)

ESG Focus Areas

Environmental
Social
Governance

Environmental Achievements

Reduced accident rate by 17% in cement operations and 12.8% overall.
Alternative fuels provided 25% of total energy used in European cement plants.
Reduced specific fuel consumption in some European cement plants by sharing best practices.

Social Achievements

Patrimonio Hoy program helped 160,000 low-income families improve their homes.
ConstruApoyo program helped 17,500 families rebuild homes after hurricanes.
Employee engagement worldwide higher than 85%.

Governance Achievements

Implemented a company-wide Sustainability Management System.
Seven of thirteen board members are independent of management.
Adapted Code of Ethics for European businesses to account for cultural and legal differences.

Climate Goals & Targets

Medium-term Goals:

25% reduction in CO2 emissions per metric ton of cement product by 2015 (from 1990 baseline)
10% alternative fuels substitution by 2015
5% biomass fuels substitution by 2015
12% alternative raw materials substitution by 2015
Reduction in specific emissions per ton of clinker by 2015 (50% for dust, 15% for NOx, 10% for SOx)

Short-term Goals:

100% participation in employee health program by 2010
100% of drivers certified by 2010
Reduce accident rate to 1.0 per 200,000 hours worked by 2010 and 0.5 by 2015
50% of kilns to have continuous monitoring by 2010; 100% by 2015

Environmental Challenges

High CO2 emissions from cement production.
Accident rate, despite reduction, still includes fatalities.
Balancing growth with consistent people policies and practices.

Mitigation Strategies

CO2 strategy focusing on clinker content reduction, alternative fuels, energy efficiency, and renewable electricity.
Action plan to control operational risks leading to accidents.
New Job Opportunities Policy to increase internal job applications and provide equal career opportunities.

Supply Chain Management

Responsible Procurement

Supplier qualification program including social, financial, accountability, quality assurance, environmental, and employee health and safety criteria.
Strategic Sourcing Methodology

Climate-Related Risks & Opportunities

Opportunities

Use of alternative fuels and renewable energy; development of energy-efficient products.

Reporting Standards

Frameworks Used: Global Reporting Initiative G3 guidelines (Application Level B)

Certifications: ISO 14001 (many manufacturing facilities)

Sustainable Products & Innovation

Antibacterial concrete
Rapid-setting cement
Self-compacting concrete
Porous concrete
Safe Energy Concrete

Awards & Recognition

World Business Award for Patrimonio Hoy

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:Scope 1: 1.8 million tCO2e (from biomass), Scope 2: 3.3 million tons CO2e (for cement), Scope 3: data in CDP submission

Scope 1 Emissions:1.8 million tCO2e (from biomass)

Scope 2 Emissions:3.3 million tons CO2e (for cement)

Scope 3 Emissions:Data in CDP submission

Renewable Energy Share:25% (electricity in cement operations)

Total Energy Consumption:202,255 TJ (total); 7,698 GWh (electricity)

Water Consumption:Data available in report following IUCN methodology, 9% of sites in areas of potential water stress

Waste Generated:Data available in report, methodology for data collection by disposal method is under development

Carbon Intensity:Scope 1 = 678 kg CO2/ton of cementitious product; Scope 2 = 51 kg CO2/ton of cementitious product

ESG Focus Areas

Climate Change
Emissions Reduction
Environmental Management
Community Engagement
Human Rights
Labor Practices
Occupational Health and Safety
Diversity and Equal Opportunity
Ethics and Compliance
Supplier Sustainability
Biodiversity

Environmental Achievements

Reduced specific heat consumption of clinker production by 11.9% and specific electricity consumption of cement production by 6.1% since 1990.
Substituted 23.3% of primary fuels with alternative fuels, avoiding more than 1.6 million tons of coal.
25% of power needs in cement operations from clean energy sources.

Social Achievements

98% of operations have community engagement plans.
72.7% of the workforce is represented in formal joint management-worker health and safety committees.
939 employees were eligible for parental leave and 671 employees took parental leave.
9,064 training hours on Human Rights-related issues.

Governance Achievements

100% of governance body members and employees have access to the Code of Ethics.
797 employees trained on corruption and bribery.
All supplier contracts include anti-bribery clauses and anti-bribery certification letters.

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Not disclosed

Short-term Goals:

Not disclosed

Environmental Challenges

Potential water stress at 9% of sites.
18% of quarries located in areas with high biodiversity value, where red-listed species might be present.
Medium to high risk countries for perceived corruption (15 CEMEX operations).

Mitigation Strategies

Implementing Biodiversity Action Plan (BAP) in quarries with high biodiversity value.
Assessing all 15 high-risk operations for corruption risks; no incidents found.
Implementing water management methodology in collaboration with IUCN.

Supply Chain Management

Supplier Audits: 1,288 suppliers evaluated using environmental, labor practices, and human rights criteria in 2016.

Responsible Procurement

Supplier Code of Conduct addressing environmental, labor, human rights, and diversity issues.

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI, UNGC, Cement Sustainability Initiative (CSI)

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Energy-efficient products and solutions

Awards & Recognition

Not disclosed

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:Not disclosed

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed

Scope 3 Emissions:Not disclosed

Renewable Energy Share:26%

Total Energy Consumption:Not disclosed

Water Consumption:13.2 million m3

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Health and Safety
Customer Experience
CO2 emissions reduction
Community Development
Supplier Sustainability
Biodiversity
Water Management
Business Ethics and Transparency
Human Rights

Environmental Achievements

20.7% reduction in CO2 emissions per ton of cementitious product from 1990 baseline
26.2% alternative fuels rate
92% of clinker produced with continuous monitoring of major emissions
84% annual reduction in dust emissions per ton of clinker from 2005 baseline
43% annual reduction in NOX emissions per ton of clinker from 2005 baseline
67% annual reduction in SOX emissions per ton of clinker from 2005 baseline
69% of active quarries with high biodiversity where BAPs are actively implemented
95% of waste generated by production processes was recovered, reused or recycled
More than 7 million tons of CO2 emissions avoided in 2017 versus 1990 baseline
26% of cement operations’ power supply came from renewable sources

Social Achievements

Employee Lost Time Injury Frequency Rate of 0.5 (closer to 0.3 target by 2020)
95% of CEMEX operations were fatality and lost-time-injury free
100% of countries conduct regular customer satisfaction surveys
More than 14.1 million people positively impacted by high-impact social strategy
Over 4,800 line managers trained through H&S Academy
More than 37,000 employees participated in Voices into Actions survey (82% participation rate)
US$21.5 million invested in training and development
More than 9,500 affordable housing units built (approximately 928,000 m2 of livable space)
More than 38,500 young people positively impacted by New Employment Opportunities (NEO)

Governance Achievements

Two credit-rating upgrades from S&P, reaching a global scale rating of BB
Fitch ratings revised outlook from stable to positive
568 ethics-related reported cases investigated, 432 closed, 185 disciplinary actions taken
73 employees dismissed as a result of investigations
More than 12,300 hours dedicated to business ethics and human rights training
115 internal legal audits conducted in 9 countries

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

35% alternative fuels rate by 2020
25% reduction in CO2 emissions per ton of cementitious product from 1990 baseline by 2020
100% clinker produced with continuous monitoring of major emissions by 2020
70% annual reduction in dust emissions per ton of clinker from 2005 baseline by 2020
40% annual reduction in NOX emissions per ton of clinker from 2005 baseline by 2020
55% annual reduction in SOX emissions per ton of clinker from 2005 baseline by 2020
≥90% of countries conduct regular customer satisfaction surveys by 2020
≥55% of global procurement spend assessed under the Supplier Sustainability Program by 2020
83% of employees perceive they are enabled to perform their job effectively by 2020
80% of employees are engaged with the company by 2020
≥90% of executives and employees actively aware of our Code of Ethics by 2020
≥90% of Ethics and compliance cases reported during the year that were investigated and closed by 2020
≥90% of target countries that participated in the Global Compliance Program by 2020
≥15 million community partners by 2020

Short-term Goals:

Reduce Employee LTI Rate to 0.3 or less by 2020

Environmental Challenges

Economic conditions in operating countries (e.g., US interest rate hikes, Mexican currency depreciation, European economic weakness, Chinese economic deceleration)
Political uncertainty in operating countries (e.g., elections, social unrest, Brexit)
Complex competitive dynamics (e.g., aggressive commercial strategies, new market entrants)
Debt level and financial restrictions
Regulatory changes and increased scrutiny
Volatility in energy markets
Price volatility and uncertain availability of materials
Cyber and information security
Adverse weather conditions
Health and safety related risks

Mitigation Strategies

Value-before-volume strategy
Monitoring and scenario planning
Cost containment
Business continuity plans
Asset optimization
Debt prepayments through focus on EBITDA generation
Reduction of financial costs
Continuous compliance with regulatory changes
Code of Ethics and Business Conduct
Increased use of alternative fuels
Processes and products to reduce heat consumption
Clean power projects
Long-term renewable contracts and framework agreements
Proactive measures to secure IT systems
Business continuity plans for business disruption
Business continuity plans for adverse weather
Insurance for assets
Zero4Life commitment (focus on health and safety)

Supply Chain Management

Supplier Audits: Almost 1,300 suppliers assessed using sustainability criteria in 2017; 25% of procurement and energy spend assessed by year-end 2017

Responsible Procurement

Supplier Sustainability Program
Inclusion of human rights, labor, antitrust and sustainability clauses in contracts

Climate-Related Risks & Opportunities

Physical Risks

Adverse weather conditions

Transition Risks

Regulatory changes
Volatility in energy markets

Opportunities

Increased use of alternative fuels
Clean power projects
Development of low-carbon cement

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, EMAS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

CEMEX aligns its business strategies with the UN SDGs, contributing to goals related to health, education, economic growth, sustainable cities, responsible consumption, climate action, life on land, and partnerships

Sustainable Products & Innovation

CEMEX Go (digital platform)
Neogem (value-added aggregates brand)
Low-carbon cement
Various value-added ready-mix concrete products

Awards & Recognition

German Design Award for Rhizolith Island project
Merit Award at the American Institute of Architects New York Chapter 2017 Design Awards
Lone Star Land Steward Award for El Carmen Nature Reserve
ENERGY STAR® certification for four cement plants
Best Socially Responsible Practices 2017 Award from the Mexican Center for Philanthropy
Stevie Award for Lintar extra virgin olive oil (Croatia)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:Scope 1: 2.0 million tCO2e (including biomass); Scope 2 and 3 data available via CDP submission

Scope 1 Emissions:2.0 million tCO2e

Scope 2 Emissions:Data available via CDP submission

Scope 3 Emissions:Data available via CDP submission

Renewable Energy Share:26% (cement operations)

Total Energy Consumption:7.8 thousand GWh

Water Consumption:Data available via IUCN Water Management Methodology; 9% of sites in potential water stress areas

Waste Generated:Data available via internal Waste Guidelines; 0% of hazardous waste shipped internationally

Carbon Intensity:Scope 1 = 674 kg CO2/ton of cementitious product; Scope 2 = 54 kg CO2/ton of cementitious product

ESG Focus Areas

Economic performance
Market presence
Indirect economic impact
Anti-corruption
Anti-competitive behavior
Emissions
Environmental compliance
Employment
Labor/management relations
Occupational health and safety
Training and education
Diversity and equal opportunity
Freedom of association and collective bargaining
Local communities
Public policy
Customer health and safety
Product and service labeling
Customer privacy
Socioeconomic compliance
Procurement practices
Materials
Energy
Water
Biodiversity
Effluents and waste
Supplier environmental assessment
Non-discrimination
Child labor
Forced or compulsory labor
Security practices
Indigenous rights
Human rights assessment
Supplier assessment for labor practices

Environmental Achievements

Reduced specific heat consumption of clinker production by 10.5% and specific electricity consumption of cement production by 3.6% since 1990
Substituted 27.1% of primary fuels with alternative fuels, avoiding almost 2 million tons of coal
26% of power needs in cement operations from clean energy sources

Social Achievements

71.8% of the workforce represented in formal joint management-worker health and safety committees
566 employees eligible for parental leave, 502 took leave
9,973 executives and employees had access to performance and career development reviews

Governance Achievements

Established ETHOSline, a safe and confidential tool to report potential violations related to ethics, compliance, and governance
Sustainability Committee comprised of four board members reporting directly to the Board of Directors
100% of supplier contracts include anti-bribery clauses and anti-bribery certification letters

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Not disclosed

Short-term Goals:

Not disclosed

Environmental Challenges

19 CEMEX operations classified as medium to high risk countries for perceived corruption
9% of sites located in areas of potential water stress
20% of quarries located in areas with high biodiversity value, where red-listed species might be present

Mitigation Strategies

Assessed all 19 high-risk operations for corruption risks; no incidents found
Implemented CEMEX Water Policy and CEMEX Environmental Policy
Working to implement a Biodiversity Action Plan (BAP) in all quarries in high biodiversity value areas

Supply Chain Management

Supplier Audits: 2,835 suppliers evaluated in 2017; 2,835 suppliers evaluated in 2018

Responsible Procurement

Code of Conduct, Sustainability Supplier Program

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option

Certifications: Null

Third-party Assurance: KPMG Limited

UN Sustainable Development Goals

UNGC 8.5, 10.3, 16.3, 16.7, 5.5, 16.6, 1.2, 3.8, 8.2, 8.3, 8.5, 1.2, 3.8, 8.2, 8.3, 8.5, 16.5, 8.8, 4.3, 4.4, 4.5, 5.1, 8.2, 8.5, 10.3, 8.2, 8.5, 5.5, 8.5, 10.3, 8.8, 1.4, 2.3, 16.5, 8.3, 8.4, 12.2, 7.2, 7.3, 8.4, 12.2, 13.1, 7.2, 7.3, 8.4, 12.2, 13.1, 8.4, 12.2, 13.1, 7.3, 8.4, 13.1, 6.4, 6.3, 8.4, 12, 6.6, 14.2, 15.1, 15.5, 17, 3,8, 6.6, 14.2, 15.1, 15.5, 8, 6.6, 14.2, 15.1, 15.5, 5.1, 8.8, 8.7, 16.2, 8.7, 4, 16.1, 5.2, 8.8, 16.1, 2,6, 5.2, 8.8, 16.1, 2

Not disclosed

Sustainable Products & Innovation

Ready-Mix Concrete Technologies, Green Building solutions

Awards & Recognition

Not disclosed

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:3,350,904 tCO2e (Scope 1) + 398,182 tCO2e (Scope 2)

Scope 1 Emissions:3,350,904 tCO2e

Scope 2 Emissions:398,182 tCO2e

Renewable Energy Share:6.8% (Waste Heat Recovery)

Total Energy Consumption:15,266,176 GJ

Water Consumption:1,487,810 m3

Waste Generated:1,693,916 kg

ESG Focus Areas

Climate change
Water scarcity
Energy security
Materials scarcity
Physical hazards to communities
Biodiversity
Social inequality
Infrastructure development
Government and regulatory uncertainties
Economic performance
Procurement practices
Anti-corruption
Employee hiring and benefits
Diversity and equal opportunity
Employee training and development
Labor-management relations
Workplace conditions
Labor laws and human rights
Supply chain management
Relationship with the community
Customer management
Customer privacy
Data security
UN Sustainable Development Goals

Environmental Achievements

Reduced energy consumption by 82,397 GJ (fuels) and 10,333 MWh (electricity)
Avoided 53,467 tCO2e through alternative fuel use
Avoided 13,328 tCO2e through raw meal composition innovation
Avoided 24,322 tCO2e through clinker substitutes
Avoided 6,748 tCO2e through novel cement production
Recycled 20,493 cubic meters of water
Reduced total solid waste generated to 1,693,916 kg
Co-processed 113,000 kg of solid waste
Recycled 45.7% of solid waste
Rehabilitated 9 hectares of pozzolan quarry site

Social Achievements

Launched Employee Net Promoter Score (eNPS) to assess employee engagement
Provided 23,255 total training hours to employees
Employed six individuals from vulnerable sectors
Maintained lowest paid employee rate 135-154% higher than minimum wage
Zero employee work-related injuries
Zero incidents of corruption
Implemented various community programs benefiting 2,900+ individuals

Governance Achievements

100% of employees and business partners received anti-corruption training
Established ETHOSline for anonymous reporting of ethics violations
Implemented a robust risk management process aligned with ISO 31000, ISO 31010, ISO 22301, and BCI guidelines
Golden Arrow Recognition by the Institute of Corporate Directors (ICD) under the ASEAN Corporate Governance Scorecard (ACGS)

Climate Goals & Targets

Short-term Goals:

Increase lower-carbon cement production to over 60% in 2020
Improve customer satisfaction score to 60

Environmental Challenges

High dependence on Philippine economic performance
Reduction or delay in public/private construction projects
Highly competitive markets
Price fluctuations from cement oversupply
Operability of cement plants (equipment breakdowns, natural disasters)
High debt-to-operating EBITDA ratio
Fluctuation in interest rates
Regulatory risks
Climate change impacts (flooding, water shortage, extreme weather)
Availability of raw materials
Presence of informal settlers near quarry sites
Residential development near mining areas
Natural disasters and hazards at quarry sites
Water scarcity
Air pollutant emissions
Solid and hazardous waste management
Customer satisfaction
Data security and customer privacy

Mitigation Strategies

Monitoring of economic indicators and scenario planning
Superior customer experience and operational excellence
CEMEX Go digital platform
Regular assessment of sales and operations strategy
Annual audits and regular internal audits on plant management systems
Business continuity plans and asset insurance
Continuous monitoring of financial condition and prudent financial strategy
Monitoring of local, regional, national, and international news and regulations
Code of Ethics and Business Conduct
Anti-corruption policies and trainings
ETHOSline for reporting ethics violations
Supplier accreditation and assessment processes
Collaboration with LGUs to manage informal settlers
Coordination with local government for better zoning plans
Detailed procedures to deal with natural hazards
Closed-circuit water system and rainwater catchment basin investment
Electrostatic precipitators, bag house dust collectors, and hybrid bag filters
Continuous Emissions Monitoring System (CEMS)
Waste management through third-party DENR-accredited haulers
Co-processing of hazardous waste
CEMEX Go digital platform for customer service
Complaints management system
Information security policy, cybersecurity controls, and monitoring services
Disaster recovery plans and rapid response teams
Cyber liability insurance

Supply Chain Management

Responsible Procurement

Supplier Code of Conduct
Environmental performance assessment
Compliance with laws and regulations
Anti-bribery and anti-corruption measures
Human rights compliance
Labor standards compliance
Health and safety compliance

Climate-Related Risks & Opportunities

Physical Risks

Flooding
Water shortage
Extreme weather events

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001

UN Sustainable Development Goals

SDG 12 (Responsible Consumption and Production)
SDG 13 (Climate Action)

Products contribute to reduced material use, energy consumption, and GHG emissions

Sustainable Products & Innovation

APO Type 1P Cement
Masonry Cement
Rizal Portland Super

Awards & Recognition

Golden Arrow Recognition by the Institute of Corporate Directors (ICD)

Reporting Period: 2020

Environmental Metrics

Renewable Energy Share:30% (cement operations in 2020)

ESG Focus Areas

Economic performance
Market presence
Indirect economic impact
Procurement practices
Anti-corruption
Anti-competitive behavior
Materials
Energy
Water and Effluents
Emissions
Waste
Supplier Environmental Assessment
Employment
Labor/management relations
Occupational health and safety
Training and education
Diversity and equal opportunity
Non-discrimination
Freedom of association and collective bargaining
Supplier social assessment
Public policy
Customer health and safety
Marketing and labeling
Customer privacy
Socioeconomic compliance
Biodiversity
Environmental compliance
Child Labor
Forced or compulsory labor
Security practices
Rights of indigenous peoples
Human rights assessment
Supplier social assessment

Environmental Achievements

Reduced specific heat consumption of clinker production by 9.4% and specific electricity consumption of cement production by 3.9% since 1990.
Consumed 30% of power needs in cement operations from clean energy sources in 2020.
Substituted 25% of primary fuels with alternative fuels in 2020.

Social Achievements

68% CEMEX Net Promoter score for 2020
78% of the workforce represented in formal joint management-worker health and safety committees.
6800 employees eligible for parental leave, 500 employees took parental leave in 2020.

Governance Achievements

Established ETHOSline, a safe and confidential tool to report potential violations related to ethics, compliance and governance topics.
Over 8,000 employees trained on antitrust, anti-corruption and bribery.
All supplier contracts include anti-bribery clauses and anti-bribery certification letters.

Climate Goals & Targets

Environmental Challenges

Risks related to corruption in various countries based on Transparency International's Corruption Perception Index.
Potential negative social impacts in the supply chain.

Mitigation Strategies

Assessed all main operations for risks related to corruption; no incidents found.
Supplier contracts include anti-bribery clauses and anti-bribery certification letters.
Analysis of suppliers' historical corruption behavior prior to signing contracts.
Evaluated 290 critical suppliers using different sustainability criteria; terminated relationship with one supplier due to negative impacts, remediation plan for another.

Supply Chain Management

Supplier Audits: 290 critical suppliers evaluated in 2020

Responsible Procurement

Supplier Code of Conduct
Local initiatives to assess suppliers
90% of purchases in 2020 sourced by locally-based suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: KPMG Limited

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

Health and Safety
Climate Action
Circular Economy
Air Emissions
Water Administration
Conservation of Land and Biodiversity
Social Impact
Building a Better Workforce
Customer Experience
Responsible Sourcing
Corporate Governance
Ethics
Low Carbon and Sustainable Products
Green Financing and Sustainability-Linked Financing
ESG Disclosure and Compliance

Environmental Achievements

Scope 1 emissions reduction of 31% per ton of cementitious material
Scope 2 emissions reduction of 58% per ton of cementitious material
Scope 3 emissions reduction of 25% per ton of clinker and cement purchased
Scope 3 emissions reduction of 40% per ton of fuel purchased
A 42% reduction in absolute Scope 3 emissions from the use of traded fuels
A 30% reduction in Scope 3 emissions from transportation prior to distribution and commercialization per ton of materials transported

Social Achievements

Implementation of key diversity and inclusion initiatives
Progress on 2030 goals for gender representation

Governance Achievements

Implementation of the ETHOS program to ensure adherence to world-class standards of corporate behavior
Progress achieved in the Global Compliance Program
CEMEX was the first in its industry to publish a Sustainability-Linked Financing Framework, verified by an independent third party

Climate Goals & Targets

Environmental Challenges

Sustainability risks identified in the 2022-2023 sustainability risk agenda

Mitigation Strategies

Action plans aimed at mitigating sustainability risks and minimizing their impact