Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Innovation and research
• Sustainable financial performance
• Corporate ethics
• Regulatory compliance
• Low-carbon product portfolio
• Waste prevention
• Fair and competitive conduct
• Energy efficiency of our production
• Circular economy
• Product quality and safety
• Acquisition, training, and retention of talent
• Customer experience and satisfaction
• Carbon emissions
• Access to affordable housing
• Transparency and reporting

Environmental Achievements

• Reduced CO2 emission intensity by 6.6% in 2021 vs 2019 (-8.6% on Building Materials scope only)
• 7,700 tons of CO2 emissions reduced through Capex projects
• 2,000 tons of AAC materials collected and reused
• 170 tonnes of GHG emissions saved/year by new solar panels at Atella plant (Italy)
• 73.2% of mineral wool and 41.8% of XPS products made from recycled or reprocessed materials
• Xella France received the Nord Isère award for Sustainable Development for its new recipe to reuse residue AAC powder from production, reducing sand consumption.

Social Achievements

• €2 million spent on training in 2021
• Flexible paternity leave introduced for practically all staff
• Share of female managers increased to 19%
• Over 2,850 individual hours of safety training for senior leaders.

Climate Goals & Targets

Environmental Challenges

• Climate change impacting the construction materials sector
• Supply chain disruptions
• Need to improve data quality in areas such as water management and Scope 3 emissions
• Fatal accident at glass wool production plant in Serpukhov, Russia

Mitigation Strategies

• Mapping Scope 3 emissions to set reduction targets
• Prioritizing energy efficiency actions with the best payback
• Installing solar panels and replacing coal boilers
• Using more energy-efficient machines
• Investing in safety training and leadership programs
• Implementing robust safety standards and procedures
• Improving data collection and measurement methods

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct, local sourcing, ESG audits (starting in 2022)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: PricewaterhouseCoopers (limited assurance)

Sustainable Products & Innovation

• Ytong and Multipor (Cradle to Cradle certified)
• Mortars with minimum environmental impact

Awards & Recognition

• Nord Isère award for Sustainable Development (Xella France)
• Best Building Materials Manufacturer 2020 Award (Xella Czech)

Environmental Metrics

ESG Focus Areas

• Climate
• People
• Resources & circularity
• Products & services
• Governance & stakeholders

Environmental Achievements

• Reduced market-based CO2e emissions (Scopes 1 and 2) by close to 17% since 2019.
• 100% of production leftovers reused in Koningsbosch plant in the Netherlands.
• 14,000m3 waste saved in 2022 by projects using blue.sprint digital solution.
• 1,000t of CO2e/year saved by an optimized heat recovery system at Deva in Romania.
• 50,000l of diesel fuel saved per year by introducing smaller and electric forklift trucks.
• 14.2kt reduction in CO2e emissions/year from energy-saving projects (2021 and 2022).

Social Achievements

• 39,174 hours of “safety at work” training in 2022, with a 10% drop in severe injuries.
• Launched a new Communities Policy, targeting €100,000 support for communities by 2025.
• 42% rise in employees accessing online learning.
• 20% of managers across the Group are now female (up from 19% in 2021).

Governance Achievements

• 100% of major suppliers comply with the Supplier Code of Conduct.
• Introduced ‘IntegrityNext’ software to improve supply chain due diligence.
• Successfully met the targets in relation to a sustainability-linked loan.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and high gas prices due to the conflict in Ukraine.
• High energy and commodity prices.
• Workforce shortages in most of Europe.

Mitigation Strategies

• Accelerated investment in renewables and energy savings.
• Transferred production from less efficient plants to more modern sites.
• Introduced energy-efficiency measures at plants.
• Implemented a new Community Policy.
• Increased investment in training and upskilling of workforce.
• Used employee referrals and innovative recruitment campaigns.

Supply Chain Management

Supplier Audits: 100% of major suppliers comply with Supplier Code of Conduct; implementation of risk management system and IntegrityNext software in 2023.

Responsible Procurement

• Supplier Code of Conduct
• Preference for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Cost savings from energy efficiency measures

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

Initiatives align with these SDGs through community engagement, sustainable production, and climate action.

Sustainable Products & Innovation

• Low lambda AAC block
• Products using granulates from crushed production residues

Awards & Recognition

• Construction Manufacturer of the Year (Czech Association of Entrepreneurs)
• Environmentally Friendly Product certification (Herman Ottó Institute, Hungary)