Climate Change Data

Environmental Metrics

ESG Focus Areas

• CO2 reduction
• Sustainability

Environmental Achievements

• Labeled as “Prime” in ISS-oekom Corporate Rating, one of the sustainability leaders in the construction materials sector.
• First cement producer with a CO2 reduction target verified by the Science Based Targets Initiative.
• Reducing specific net CO2 emissions per tonne of cement by 30% by 2030 compared to 1990.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Harsh weather conditions in the US and Europe impacting volumes.
• Slowdown due to new government formations in Indonesia, India, and Thailand impacting volumes.
• Energy cost inflation (though easing).

Mitigation Strategies

• SG&A saving program (80m€ secured for the full year).
• Positive pricing to compensate for weak volumes and cost inflation.
• Energy cost expected to be below prior year in H2.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) Sustainability Standards

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Commitment to UN Global Compact and UN Social Development Goals

Sustainable Products & Innovation

• Various projects for CO2 capture (e.g. LEILAC) and CO2 utilisation for the production of construction materials

Awards & Recognition

• ISS-oekom “Prime” status

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Biodiversity
• Occupational Health and Safety
• Social Responsibility
• Human Rights
• Resource Efficiency
• Compliance
• Transparency

Environmental Achievements

• Reduced specific net CO2 emissions by approximately 25% compared to 1990 levels (reaching 565 kg CO2 per tonne of cementitious material)
• Increased alternative fuel rate to 26.4% (from 25.7% in 2020)
• Lowered clinker ratio to 72.9% (from 74.3% in 2020)
• Successfully operated a cement kiln on a net zero fuel mix (hydrogen, biomass) in a world-first demonstration at Ribblesdale plant
• 98.2% of integrated cement plants operating with a certified environmental management system

Social Achievements

• Published a new version of the Code of Business Conduct, emphasizing human rights and sustainability
• Launched the fifth Quarry Life Award to address biodiversity loss
• Organized #BeatCOVID19 vaccination campaign for employees and their families in India
• Implemented a Group standard harmonizing preventive healthcare regarding dust, noise, and vibration protection
• Increased share of women in management positions in Germany above the target

Governance Achievements

• Appointed Dr. Nicola Kimm as Chief Sustainability Officer
• Anchored CO2 emission reduction in the remuneration of the Managing Board and bonus-eligible employees
• Revised Supplier Code of Conduct to accommodate Germany's Supply Chain Due Diligence Act
• Launched Responsible Procurement project to increase supplier sustainability
• Implemented a Group-wide compliance program based on the Code of Business Conduct

Climate Goals & Targets

Environmental Challenges

• High energy consumption and CO2 emissions in cement production
• Securing sustainable supplies of raw materials
• Climate change impacts (extreme weather, floods, droughts)
• Transition to a low-carbon economy (policy and legal risks, technology risks, market and reputational risks)
• Compliance with environmental regulations and human rights standards in the supply chain

Mitigation Strategies

• Investing in CCUS technologies (Brevik, Slite, Edmonton, Padeswood)
• Optimizing product mix and process improvements (alternative fuels, renewable energy)
• Implementing energy efficiency measures
• Developing sustainable products (EcoCrete®, i.tech® 3D)
• Promoting circular economy (concrete recycling, alternative raw materials)
• Developing water management plans for plants in water-scarce areas
• Implementing a Group-wide compliance program and supplier code of conduct
• Engaging with stakeholders and policymakers

Supply Chain Management

Supplier Audits: Further suppliers reviewed according to defined sustainability criteria in 2021 in cooperation with Avetta.

Responsible Procurement

• Supplier Code of Conduct (incorporating SA 8000, ISO 14001, ILO principles)
• Proactive communication of sustainability standards to suppliers
• SAP Ariba Risk system for global risk assessment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts, heatwaves)
• Damage to production sites
• Supply chain disruptions

Transition Risks

• Tightened EU regulations (EU ETS, Fit for 55)
• Increased costs for emission allowances
• Carbon leakage
• Investment in unsuccessful technologies (CCS)
• Changes in consumer preferences
• Rising commodity and electricity costs
• Changing investor preferences

Opportunities

• Increased demand for durable building materials
• Increased demand for sustainable products
• Opportunities in recycled building materials
• Competitive advantages from new technologies

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Global Compact, TCFD

Certifications: ISO 14001, ISO 45001, CSC

Third-party Assurance: Limited assurance for key environmental and occupational safety figures from the cement business line

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 8 (Decent Work and Economic Growth)

Sustainability Commitments 2030 support the UN Sustainable Development Goals.

Sustainable Products & Innovation

• EcoCrete®
• i.tech® 3D
• Powercrete®
• Heatcrete®

Awards & Recognition

• CDP Climate Change A List
• CDP Supplier Engagement A rating
• CDP Water Security A- rating
• MSCI ESG Ratings AA

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Biodiversity
• Water management
• Occupational health and safety
• Diversity, equity & inclusion
• Responsible procurement
• Human rights
• Community engagement

Environmental Achievements

• Reduced specific net CO2 emissions by 2% in 2022
• Increased alternative fuel rate to 28.7% in 2022
• Reduced clinker ratio to 71.6% in 2022
• Won the German Innovation Award for Climate and Environment for ReConcrete-360° concept

Social Achievements

• Launched Trainee Driver Program for Women in Australia
• Implemented community engagement plans at 100% of sites
• Offered one day of paid leave for voluntary community work per employee

Governance Achievements

• Established a Sustainability-Linked Financing Framework
• Achieved AA rating in MSCI ESG Ratings
• Improved score in S&P Corporate Sustainability Assessment

Climate Goals & Targets

Environmental Challenges

• Massively rising energy and raw material prices impacting construction activity and demand
• Supply chain disruptions due to geopolitical tensions and climate events
• Weakening demand in key markets

Mitigation Strategies

• Effective price adjustments
• Continued cost discipline
• Portfolio optimization through acquisitions and divestments
• Investments in CCUS technologies
• Increased use of alternative fuels and raw materials

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct based on SA 8000, ISO 14001, and applicable laws
• Global risk assessment program with Avetta and IntegrityNext
• SpeakUp compliance hotline
• Zero-tolerance policy for violations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Heatwaves
• Droughts

Transition Risks

• Regulatory changes
• Market shifts
• Carbon pricing
• Energy price volatility

Opportunities

• Development of energy-efficient products
• Expansion of CCUS projects
• Growth in sustainable building materials market

Reporting Standards

Frameworks Used: GRI, HGB, IFRS, SASB, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PwC

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15

Initiatives contributing to gender equality, decent work, sustainable industrialisation, sustainable consumption and production, climate action, and biodiversity protection

Sustainable Products & Innovation

• Low-carbon cements and concretes
• Concretes with recycled aggregates
• Ultra-high-performance concretes
• 3D concrete printing
• ReConcrete-360°
• EcoBlock+

Awards & Recognition

• German Innovation Award for Climate and Environment
• Freight Industry Association’s Female Leadership Award