Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee Health and Safety
• Employee Development
• Ecoefficiency
• Environmental Awareness
• Community Health and Development
• Customer Satisfaction
• Shareholder Value Creation

Environmental Achievements

• Reduced specific CO2 emissions by 8.5% (1990-2002) while cement production grew by more than 30%
• Increased use of alternative fuels in various plants
• Acquired Mineral Resource Technologies, Inc., a major supplier of fly ash
• ISO 14001 certification obtained in several plants

Social Achievements

• Reduced lost-time accident rate to 1.6%
• Launched Congruencia program in Mexico to provide opportunities for disabled people
• Participated in Egyptian government initiative to provide education for 500,000 girls
• Implemented various community development programs globally (e.g., Patrimonio Hoy, Piso Firme)

Governance Achievements

• Established a code of ethics and ethics committees
• Implemented confidential whistle-blowing procedures
• Complied with the Sarbanes-Oxley Act of 2002
• Established an employee stock option plan (ESOP) to align executive and stockholder interests

Climate Goals & Targets

Environmental Challenges

• 12 fatalities in 2003 related to operations
• Need to further reduce CO2 emissions
• Need to further increase use of alternative fuels and materials

Mitigation Strategies

• Reinforce safety efforts to eliminate workplace fatalities
• Continue energy optimization, clinker substitution, and use of alternative fuels
• Explore and implement new technologies and practices to improve ecoefficiency

Supply Chain Management

Responsible Procurement

• CEMEX supplier website with suggestion box

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative’s 2002 Sustainability Reporting Guidelines

Certifications: ISO 14001 (in several plants)

Sustainable Products & Innovation

• EXTRA-500™ highly crack-resistant concrete
• White cement

Awards & Recognition

• Bandera Ecológica Award (Costa Rica), Engineer Othman A. Othman Award (Egypt), Industria Limpia Certificate (Mexico), Socially Responsible Company emblem (Mexico), National Labor Board for Safety and Hygiene Award (Nicaragua), North American Safety Award (US)

Environmental Metrics

ESG Focus Areas

• Climate protection
• Fuels and raw-materials use
• Employee health and safety
• Emissions reduction
• Local impacts
• Reporting and communication with external audiences

Environmental Achievements

• Reduced overall accident rate to 1.46% from 1.60% in 2003. In our concrete sector, we achieved an all-time low of 1.20% in 2004.
• Began sourcing electricity from the Termoeléctrica del Golfo (TEG) power plant in Mexico, which uses lower-cost pet coke and special technology to reduce emissions of sulfur oxides and nitrogen oxides.
• Implemented an innovative approach that minimizes NOx emissions by injecting small quantities of water into the kiln combustion flame, yielding up to a 30% reduction in NOx emissions at several U.S. plants.
• Reduced clinker use and energy consumption by capturing and reusing waste dust in the cement-production process in Nicaragua.
• Many plants certified to ISO 14001 standard.

Social Achievements

• Launched Construcard initiative, offering credit and financing options for small contractors and individuals; sales reached approximately U.S.$15 million in its first year.
• Continued Patrimonio Hoy program, providing credit, materials, and training to underserved communities; established 61 community offices in Mexico serving 103,000 families.
• Built and equipped eleven schools in 2003 and ten more in 2004 in remote villages of Assiut, Egypt, to promote the education of young girls.
• Invested up to U.S.$13 million per year to foster employees’ continued professional development through various programs.

Governance Achievements

• Implemented confidential and anonymous whistle-blowing procedures and established a disclosure committee and an internal process for certifying public disclosures to ensure compliance with the Sarbanes-Oxley Act of 2002.
• Revised code of ethics to clarify and strengthen certain provisions and to ensure compliance with the Sarbanes-Oxley Act of 2002.
• Established an employee stock-option plan in 1995 and offered to exchange executives’ options for restricted stock to better align the interests of our executives with those of our stockholders.

Climate Goals & Targets

Environmental Challenges

• Increase in gross and specific CO2 emissions in 2004 due to the acquisition of Dixon-Marquette, increased use of pet coke, and reactivation of lower-efficiency kilns.
• Work-related deaths (10 in total).

Mitigation Strategies

• Using alternative fuels and raw materials, increasing additives in the cement-making process, and optimizing energy use to offset the increase in CO2 emissions.
• Implementing risk-prevention programs in the concrete sector, especially in the area of driver training and certification; working to ensure that safety-performance improvements in the cement sector are made permanent; pursuing certification of plants and facilities to the OHSAS 18001 standard; striving to reduce the average severity rate of lost-time injuries.

Supply Chain Management

Responsible Procurement

• Working with suppliers who meet high quality standards; streamlining procurement process to improve efficiency and consistency of products and services.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 2002 Sustainability Reporting Guidelines, Cement Sustainability Initiative Agenda for Action

Certifications: ISO 14001, ISO 9001

Sustainable Products & Innovation

• Llancreto paving concrete (incorporates used tires)

Awards & Recognition

• Semper Virens award (Nicaragua)
• Best Practices award (Mexico)
• Clean Production award (Panama)
• Good Image in Quarries and Gravel Mines prize (Spain)
• Best environmental performance (Venezuela)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced specific CO2 emissions per ton of cement product (from 1990 baseline)
• Increased alternative fuel use in European cement plants to 25% of total energy
• Reduced accident rate by 17% in cement operations

Social Achievements

• Launched Patrimonio Hoy program, benefiting over 160,000 low-income families
• Helped more than 20,000 families rebuild homes after natural disasters
• Increased employee engagement to over 85%

Governance Achievements

• Implemented a company-wide Sustainability Management System
• Improved corporate governance practices
• Established an Ethics Committee to oversee the Code of Ethics

Climate Goals & Targets

Environmental Challenges

• High CO2 emissions from cement production
• Resource consumption (energy, water, raw materials)
• Impacts on biodiversity from quarrying
• Maintaining high safety standards

Mitigation Strategies

• Implementing CO2 reduction strategies (alternative fuels, clinker substitution, energy efficiency)
• Improving water management practices
• Developing quarry rehabilitation plans
• Implementing a Health and Safety Management System

Supply Chain Management

Responsible Procurement

• Supplier qualification program including social, financial, and environmental criteria

Climate-Related Risks & Opportunities

Opportunities

• Use of alternative fuels and raw materials

Reporting Standards

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

Certifications: ISO 14001 (at many manufacturing facilities)

Sustainable Products & Innovation

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

Awards & Recognition

• World Business Award for Patrimonio Hoy

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions per ton of cementitious product from 1990 baseline by 36%
• Alternative fuels rate of 71%
• Investments of 5.5 million Euros in new, environmentally-friendly conveying technology at Piesberg quarry, reducing dust and noise emissions and improving the energy balance of raw material transport.

Social Achievements

• 89% of trainees offered permanent positions after completion of training.
• Active participation in community events (Rüdersdorf business mile, Stienitz Race, Schliersee Open-Air Museum support).
• Implementation of uniform, high-quality vocational training guidelines.

Governance Achievements

• 100% of sites with a CEMEX Safety Management System.
• Zero total fatalities (employees, contractors, third parties) reported.
• Implementation of a holistic approach to supply chain management, optimizing processes while considering social and environmental aspects.

Climate Goals & Targets

Environmental Challenges

• Closure of headquarters in Düsseldorf due to strategic reorientation and sale of production sites, resulting in job losses.
• Intense price competition in the industry.
• Uncertainties regarding the impact of statutory regulations on power prices and intensified environmental requirements.

Mitigation Strategies

• Comprehensive social payments for affected employees.
• High-quality product range and excellent customer service.
• Introduction of a sustainability surcharge from 2016 onwards.

Supply Chain Management

Responsible Procurement

• Preference for local suppliers when financially and technically viable.
• Supplier sustainability evaluation (partial participation).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: DIN EN ISO 14001, DIN EN ISO 9001, DIN EN ISO 50001, OHSAS 18001, EMAS

Sustainable Products & Innovation

• Orange wanne ® (orange tank) for efficient basement construction.
• Ergoton ® family of concrete products.

Awards & Recognition

• CEMEX Concrete Innovation Prize