Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial
• Institutional
• Economic
• Operational
• Social
• Environmental
• Cultural

Environmental Achievements

• Achieved particulate emission levels (30mg/Nm3) far below Nigerian environmental emission (100mg/Nm3) regulations.
• Reduced lost time injuries by 53% from 47 to 22.

Social Achievements

• Invested approximately ₦1.4B in social projects in Nigeria covering healthcare, education, and infrastructure.
• Offered scholarships to nearly 900 students in Nigeria.
• Held first Sustainability Week with hundreds of employees volunteering in 6 African countries.

Governance Achievements

• Increased the number of Independent non-Executive directors by 20%.
• Increased Board diversity by onboarding another woman.

Climate Goals & Targets

Environmental Challenges

• Plant shutdown in Tanzania due to gas turbine installation delay.
• Civil disruptions in Ethiopia.
• Reductions in cement imports from Nigeria into Ghana.
• Price and product competition in South Africa.
• Unfavorable weather conditions and production disruptions.
• Difficult relationship with host communities in Ethiopia (including the murder of three colleagues).

Mitigation Strategies

• Strong performances recorded in other Pan-African markets.
• Focus on strategic marketing, cost reductions, and operational efficiency in South Africa.
• Proactive engagement with local communities in Ethiopia.
• Improved grievance mechanisms in Ethiopia.
• Review of employment practices in Ethiopia to offer local communities greater opportunities.

Supply Chain Management

Supplier Audits: 20% of major suppliers and vendors to be evaluated using environmental and social criteria by 2020.

Responsible Procurement

• Prioritising patronage of local vendors (57% of total procurements in 2018)
• Developing KPIs to measure supplier sustainability performance
• Developing a standardised Sustainability Code of Conduct for Vendors, Suppliers and Contractors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Use of alternative fuels in kilns

Reporting Standards

Frameworks Used: GRI Standards: Core option, Nigerian Stock Exchange Sustainability Disclosure Guidelines 2018, Global Cement and Concrete Association (GCCA) sustainability guidelines, IFC’s Performance standards, UN Sustainable Development Goals (SDGs), UN Global Compact

Certifications: MANCAP certificates from the Standards Organisation of Nigeria

Third-party Assurance: PricewaterhouseCoopers (limited assurance)

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 16, 17

The report maps the 7 Pillars to various SDGs.

Sustainable Products & Innovation

• Falcon (32.5-grade cement)
• BlocMaster (42.5R cement)

Awards & Recognition

• SERAS Award for Best Company in Supply Chain Management
• Award for Best Quality Cement by the Standards Organisation of Nigeria

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water Usage
• Emissions Control
• Social Investment
• Employee Well-being
• Community Development
• Corporate Governance
• Transparency
• Compliance

Environmental Achievements

• CDP rating upgraded from C to B-
• Increased use of alternative fuel sources by 69%, accounting for 1.51% of the total fuel mix
• Thermal energy consumed per tonne reduced to 849.18 Kcal/kg in 2021 from 894.13 cal/kg in 2020
• Co-processed 89,000 tonnes of waste in kilns
• Launched first CNG trucking station in East Africa (Tanzania)

Social Achievements

• ₦2.5 billion spent on social investment across 148 CSR projects
• Construction of a new elementary school in Sant Yalla, Senegal
• Increased number of new hires (1,303) compared to 2020 (656)
• Decreased employee turnover rate (407 exits) compared to 2020 (982)
• Various employee wellbeing initiatives (insurance, healthcare, leave policies)

Governance Achievements

• 27% female Board member representation
• 15 confirmed cases of bribery and corruption (down from 28 in 2020)
• Implementation of an anti-corruption policy and training programs
• ESG Code of Conduct for Suppliers, Vendors and Contractors launched

Climate Goals & Targets

Environmental Challenges

• High energy consumption in cement production
• Greenhouse gas emissions from cement manufacturing
• Increased water consumption
• Dust emissions from various production processes
• Bribery and corruption incidents

Mitigation Strategies

• Investment in alternative fuel sources (biomass)
• Energy-saving initiatives
• Efficient water management system (recycling, stormwater management)
• State-of-the-art dust abatement equipment
• Routine maintenance and installation of new dust abatement systems
• Anti-corruption policy, training, and investigations

Supply Chain Management

Supplier Audits: 45 suppliers, vendors and contractors participated in materiality assessment survey

Responsible Procurement

• ESG Code of Conduct for Suppliers, Vendors and Contractors
• Prioritization of local content

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Use of alternative fuels

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, Nigerian Exchange Group’s Sustainability Disclosure Guidelines, Global Cement and Concrete Association (GCCA) Sustainability Principles and Guidelines, United Nations Global Compact (UNGC) Principles, Sustainable Development Goals (SDGs), Securities & Exchange Commission (SEC) Code of Corporate Governance

Certifications: ISO 14001:2015 EMS

Third-party Assurance: Deloitte (ISAE 3000 Standards)

UN Sustainable Development Goals

• 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17

The 7 Sustainability Pillars are aligned with 7 priority SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• KOCCIMA award for best performing company in Africa (Obajana Plant)
• ITF award for Best Employer in Training (Ibese Plant)
• Zambia Quality Awards – Exporter of the Year (Zambia)
• Bonds, Loans & Sukuk Africa Awards for Local Currency Corporate Bond Deal of the Year (₦100 billion bond)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Commissioned 10 alternative fuel projects across operations.
• Commissioned CNG station in Tanzania.
• Phased transition from diesel power trucks to Compressed Natural Gas (CNG).
• 455,754 tonnes of waste co-processed (184% increase).
• Thermal substitution rate estimated at 9.7% (vs. 4.3% in 2022), reaching 11.0% in December 2023.
• Reduced up to 13kg CO2/tonne cem in Scope 1 emissions
• 4.8% reduction in water consumption
• 1.89 tonnes of waste recycled in DangCircular initiative.

Social Achievements

• Continued Long Service and Employee Recognition Award.
• Short-Term Incentive (STI) and DCP’s employee recognition programme.
• ₦2,356 million spent on CSR intervention activities (24.2% increase).
• 81 graduates employed through the Graduate Trainee scheme.
• 59 direct jobs and 417,700 indirect job opportunities created in the AF value chain

Governance Achievements

• AGM held in April, shareholders approved a dividend of ₦20.00 per share.
• Appointed Mr. Alvaro Poncioni Mérian as Independent Non-Executive Director.
• Implemented an effective Internal Control over Financial Reporting (ICOFR) risk assessment.
• 27% female Board members, with five Independent Non-Executive Directors.

Climate Goals & Targets

Environmental Challenges

• Currency depreciation across Sub-Saharan Africa (especially the Naira devaluation).
• Sales volume loss from the core retail segment due to inflation.
• Production volume constraints due to FX paucity.
• Fuel security challenges for transport and plant operations.
• Loss of value of investment proceeds from repatriation delays.
• Threat to FX earnings from supply constraints to export markets.
• Plant and mines reliability impacting production output.
• Vulnerability of IT systems to cyber-attacks.

Mitigation Strategies

• Diversified operations mitigated FX risks.
• Implemented reviewed retail market strategy and revised Pricing Policy.
• Implemented Group’s annual FX allocation plan and prioritised critical LCs.
• Increased thermal substitution rate (alternative fuels), CNG plant activation, and community-inclusive coal mine development.
• Increased engagement with central banks and review of export corridors.
• Clinical monitoring of clinker and cement stock movement, vessel chartering realignment, and business continuity plan implementation.
• Rehabilitation and procurement of mines and production machines, daily maintenance plan checks.
• Robust vulnerability assessment/penetration testing.

Supply Chain Management

Supplier Audits: 100 strategic suppliers trained on ESG practices; vendor performance evaluation on HSE.

Responsible Procurement

• Dangote ESG code of conduct; priority to locally sourced materials; training for suppliers.

Climate-Related Risks & Opportunities

Opportunities

• Alternative fuel projects; energy efficiency improvements.

Reporting Standards

Frameworks Used: GRI, UN Global Compact, GCCA Sustainability Charter

Certifications: ISO 14001

Third-party Assurance: KPMG Professional Services

UN Sustainable Development Goals

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

Initiatives align with SDGs through alternative fuel projects, community development, infrastructure development, and climate change mitigation and adaptation.

Awards & Recognition

• The Change Maker in Sustainability
• 2023 Sustainability Leader
• Community Impact and Community Engagement recognition
• Most Outstanding Cement Manufacturing Company in Women Empowerment
• Sustainability Champion in the Extractive Industry
• FMDQ Gold award (Largest Corporate Bond Lodgement, Largest Commercial Paper Quotation, Most Active Corporate in the Foreign Exchange Market)