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 for several cement plants
• Quarry restoration projects in Spain

Social Achievements

• Reduced lost-time accident rate to 1.6%
• Launched Congruencia program in Mexico to provide opportunities for disabled people
• Participated in government initiative to provide education for 500,000 girls in Egypt
• Implemented School of Laborers program in Egypt
• Various community development programs worldwide (e.g., building schools, improving infrastructure)

Governance Achievements

• Established a code of ethics
• Implemented confidential whistle-blowing procedures
• Complied with the Sarbanes-Oxley Act of 2002
• Improved post-merger integration processes

Climate Goals & Targets

Environmental Challenges

• 12 fatalities in 2003 related to operations
• Need to further reduce CO2 emissions
• Need to further improve ecoefficiency

Mitigation Strategies

• Reinforce safety efforts to eliminate workplace fatalities
• Continue energy optimization, clinker substitution, and use of alternative fuels
• Continue to improve post-merger integration processes to quickly bring new acquisitions up to high ecoefficiency standards

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001 (for several plants)

Sustainable Products & Innovation

• EXTRA-500™ concrete

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 (United States)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Health and Safety
• Community Engagement
• Sustainable Construction

Environmental Achievements

• Reduced CO2 emissions per ton of cement by 2.4% despite a slight rise in total emissions.
• Increased use of alternative fuels to 7.0% of total energy use (from 6.1% in 2006).
• Increased use of alternative raw materials to 12.8% of total material use (exceeding 2015 target).
• 94% of active cement sites had quarry rehabilitation plans in place (meeting 2010 target).

Social Achievements

• Lost time injuries for direct employees decreased by 28%.
• Invested US$42 million (1.6% of pre-tax income) in local communities and society.
• Patrimonio Hoy initiative helped over 190,000 low-income families improve their homes.
• Over 95% of active cement sites had community engagement plans in place.

Governance Achievements

• CO2 emissions audited by independent consultants (PriceWaterhouseCoopers).

Climate Goals & Targets

Environmental Challenges

• Increase in lost time injuries among indirectly employed individuals (25%).
• 7 direct employees, 20 contractors, and 11 members of the public lost their lives.
• Need to upgrade information systems to capture sustainability performance of non-cement businesses.
• Increased environmental responsibilities due to Rinker acquisition.

Mitigation Strategies

• Changes made to incident recording to improve understanding and prevention.
• New health module to record occupational diseases.
• Upgrading data systems to record comprehensive sustainability performance of all business segments.
• Developing ways to lessen the impact of expanded quarrying operations on local communities and wildlife.
• Partnership with BirdLife International to protect biodiversity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 96% of global purchases from locally-based suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: Cement Sustainability Initiative (CSI)

Certifications: Null

Third-party Assurance: PriceWaterhouseCoopers (for CO2 emissions)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Cement produced using alternative fuels and raw materials.
• Insulating concrete.
• Porous concrete.
• Antibacterial concrete.

Awards & Recognition

• Corporate Citizen of the Americas Award (for Patrimonio Hoy)

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Economic impacts
• Stakeholder engagement
• Health and safety
• Local environmental impacts
• Climate change
• Sustainable construction
• Access to housing and infrastructure

Environmental Achievements

• Reduced specific net CO2 emissions by 20.7% from the 1990 baseline.
• Increased use of alternative fuels to 16.4% of cement plants’ total energy consumption.
• Increased the percentage of clinker produced in kilns with continuous monitoring of major emissions to 60%.
• Reduced specific dust emissions by 60%, NOx by 19%, and SOx by 25% compared to the 2005 baseline.
• Eurus wind farm became fully operational, supplying 25% of energy needs in Mexico.

Social Achievements

• Launched Patrimonio Hoy in the Dominican Republic.
• Improved employee engagement level to 88%, 4% higher than the previous survey.
• Increased average hours of face-to-face training for non-executive and operational employees to 24 hours.
• Completed more consultations related to balanced diets than in previous years.

Governance Achievements

• Consolidated from three operating regions into two, improving efficiency.
• Launched a new functional area to foster innovation.
• Received 216 reports of alleged breaches to the Code of Ethics, fewer than the benchmark.
• Enhanced independent verification by increasing the number of indicators subject to external assurance.

Climate Goals & Targets

Environmental Challenges

• Global recession impacted demand for building materials.
• 33 fatalities in incidents related to operations.
• Economic constraints limited employee participation in medical exams.
• Regulatory barriers exist around the reuse of waste materials.

Mitigation Strategies

• Cost reduction, operational adjustments, reduced capital expenditures, asset sales, and debt refinancing.
• Increased safety training for drivers and contractors, improved incident investigation.
• Strengthening efforts in countries with below-average medical exam participation.
• Ongoing actions to address regulatory barriers to waste reuse.

Supply Chain Management

Supplier Audits: 84% of countries screen suppliers for social and environmental aspects.

Responsible Procurement

• Preference for locally-based suppliers (93% of global purchases).

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes.
• Sustainable construction markets.

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines

Certifications: ISO 14001 (68% of cement plants)

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Rizal Green cement (reduces CO2 emissions by up to 32%),
• Insulating concrete forms,
• Self-compacting concrete,
• Pervious concrete,
• Rapid-setting concrete,
• High acid resistance concrete,
• Antibacterial concrete

Awards & Recognition

• Numerous awards listed in Awards section

Environmental Metrics

ESG Focus Areas

• Carbon Strategy
• Environmental and Biodiversity Management
• Health and Safety
• Local Communities
• Sustainable Construction
• Low-Income Housing and Infrastructure
• Stakeholder Engagement

Environmental Achievements

• 20.5% reduction in specific net CO2 emissions compared to 1990 baseline
• 20.3% alternative fuels substitution rate (almost double from 2008)
• 74% of clinker produced with continuous monitoring of major emissions (dust, NOx, SOx)
• 85% of active sites have quarry rehabilitation plans in place
• Reduced hazardous waste by 11% and non-hazardous waste by 9%
• Reduced Category 1 environmental incidents to 2 from 8 in 2009

Social Achievements

• More than 45,000 families improved their homes through Patrimonio Hoy program
• Expanded Centros Productivos de Autoempleo program to Colombia
• 83% employee engagement level
• Implemented 674 initiatives based on employee feedback
• Completed LEGACY safety leadership training for 2,108 supervisors and managers

Governance Achievements

• Developed a customized Environmental Management System (EMS) compatible with ISO 14001
• Developed a CEMEX Health and Safety Management System (HSMS) aligned with OHSAS 18001
• Published six position papers on various sustainability topics

Climate Goals & Targets

Environmental Challenges

• 46 employee, contractor, and third-party fatalities in 2010
• Need to improve safety of transport activities and management of contract drivers
• Commercial-scale carbon capture and storage (CCS) not yet ready for deployment

Mitigation Strategies

• Launching new health and safety policies and a new Health and Safety Management System in 2011
• Requiring greater accountability for safety performance from all managers
• Continuing to roll out the LEGACY training program globally
• Investing in equipment to reduce major emissions
• Developing guidelines for handling fuels and emissions
• Implementing a customized Environmental Management System (EMS)

Supply Chain Management

Supplier Audits: 84% of countries have processes to screen suppliers’ social and environmental practices

Responsible Procurement

• Local sourcing; 93% of purchases from locally based suppliers
• New sustainable procurement program to systematize and expand sustainable sourcing practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Third-party Assurance: PwC (limited assurance)

Sustainable Products & Innovation

• Self-compacting concrete
• Insulating concrete forms
• Impercem® (impervious concrete)
• High-strength concrete
• Permeable concrete
• Structural insulation concrete
• Low CO2 footprint self-compacting and easy compacting concrete

Awards & Recognition

• World Business and Development Awards
• Forrester Groundswell Award
• Big Tick Award
• Sustainable Development Award (France)
• UNICEM Environmental Award (France)
• Health & Safety Award (Germany)
• Sustainability Index Silver Award (Latvia)
• Best CSR Practices (Mexico)
• Best Safety Award and Zero Lost Time Accident Award (Philippines)
• Award for innovative application of self-compacting concrete (Poland)
• Economic Contribution to Society Award (Spain)
• Environmental Defense Award (Spain)
• International Safety Award (UK)
• RoSPA Occupational Health & Safety Awards (UK)
• William W. Howard C.E.O. Award (USA)
• ENERGY STAR® Partner of the Year (USA)
• ENERGY STAR® rating (USA)
• Cement Industry Energy & Environmental Awards (USA)
• CLARES for CSR (Mexico)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance
• Human Rights
• Community Relations
• Supply Chain Sustainability

Environmental Achievements

• Reduced specific net CO2 emissions per ton of cementitious product from 602 to 594 kg by excluding Venezuela from cement operations.
• USD 95 million in total environmental capital investments.
• Zero category 1 environmental spills in 2011.

Social Achievements

• 44,013 families benefited through the Centros Productivos de Autoempleo program.
• 84% of the workforce represented in formal joint management-worker health and safety committees.
• 1,782 hours of employee training on human rights policies and procedures for 2,310 employees.

Governance Achievements

• Inclusion of human rights clauses in 100% of significant investment agreements.
• Implementation of a process to screen suppliers' social and environmental performance, including human rights compliance, in 75% of operating countries.
• Annual audits related to corruption risks in business systems and processes.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied by the need for alternative sourcing strategies)
• Climate change impacts (implied by the need for carbon emission reduction initiatives)
• Data limitations in certain areas (e.g., water withdrawal, materials used).

Mitigation Strategies

• Developed alternative sourcing strategies (implied)
• Initiatives to reduce greenhouse gas emissions (detailed in the report)
• Plans to develop data collection mechanisms for various metrics by 2015.

Supply Chain Management

Supplier Audits: 75% of countries have implemented a process to screen suppliers' social and environmental performance.

Responsible Procurement

• Supplier Code of Conduct
• Inclusion of anti-bribery clauses in supplier contracts
• Annual audits related to corruption risks

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Guidelines, UN Global Compact

Environmental Metrics

ESG Focus Areas

• carbon strategy
• sustainable construction
• environmental and biodiversity management
• workplace safety
• affordable housing
• infrastructure initiatives
• innovative products

Environmental Achievements

• 27% alternative fuel substitution rate in cement production, avoiding 7.8 million tons of CO2 emissions
• CEMEX Green Building Services launched to support LEED or BREEAM certified projects

Social Achievements

• Self-construction initiatives benefited more than 2 million people
• Supported more than 42,900 families in building 407,000 square meters of living space through its Patrimonio Hoy program
• Completed 315 infrastructure projects in 2012

Governance Achievements

• INTEGRATE Global Suppliers Innovation Program awarded winning ideas

Climate Goals & Targets

Environmental Challenges

• Lower volumes in Northern Europe, Mexico, Mediterranean, and South, Central America and the Caribbean operations
• Fewer business days in operations due to Holy Week holidays
• Delay in infrastructure spending and reduced spending in social programs due to government transition
• Delays in government subsidies and uncertainty surrounding new housing policy
• Adverse weather conditions in Northern Europe
• Low construction activity in Spain due to adverse economic situation and fiscal austerity measures
• Increase in cement capacity and energy shortages in Egypt
• Slight reduction in market share in Colombia due to price increase
• Delays in infrastructure projects in Colombia

Mitigation Strategies

• Cost reduction initiatives
• Higher prices in local currency terms in most regions
• Savings from cost reduction initiatives and lower distribution expenses
• Investments in alternative fuel substitution

Supply Chain Management

Responsible Procurement

• INTEGRATE Global Suppliers Innovation Program

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• new modular, lightweight building system for affordable vertical housing construction

Environmental Metrics

ESG Focus Areas

• Economic value creation
• Customer engagement and satisfaction
• Health and safety
• Climate change and CO2 emissions management
• Renewable and alternative energy sourcing
• Corporate governance and transparency
• Employee relations and engagement
• Products services and solutions to improve lifestyle in cities
• Air quality management
• Human rights and ethics in business
• Products services and solutions for high energy efficiency
• Community engagement and development

Environmental Achievements

• Substituted 27.7% of primary fuels with alternative fuels, avoiding 2.2 million tons of coal.
• Almost 7% reduction in energy requirements from fuels used in the cement process and approximately 8.5 percentage points from Clinker Factor. 14.6% of electricity needs from renewable sources.

Social Achievements

• Over 550 employees eligible for parental leave, 498 took advantage.
• 11,027 training hours on Human Rights-related issues for 25% of employees.

Governance Achievements

• New Board-level Sustainability Committee established.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 1,296 suppliers evaluated using Sustainability Criteria; 33 identified with potential sustainability impacts; 88% of these had action plans.

Responsible Procurement

• Supplier Code of Conduct requiring adherence to international human rights standards, anti-bribery clauses, and anti-bribery certification letters.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: Null

Third-party Assurance: PwC (Limited Assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Economic Performance
• Indirect Economic Impact
• Energy
• Emissions
• Compliance
• Employment
• Labor/management relations
• Occupational health and safety
• Training and education
• Diversity and equal opportunity
• Equal remuneration for women and men
• Investment
• Non-discrimination
• Freedom of association and collective bargaining
• Child labor
• Forced or compulsory labor
• Security practices
• Indigenous rights
• Assessment
• Human rights grievance mechanisms
• Local communities
• Anti-corruption
• Anti-competitive behavior
• Product and service labeling
• Customer privacy
• Market
• Procurement practices
• Materials
• Water
• Biodiversity
• Effluents and waste
• Products and services
• Transport
• Supplier environmental assessment
• Environmental grievance mechanisms
• Supplier Assessment for labor practices
• Labor practices grievance mechanisms
• Supplier human rights assessment
• Public policy
• Supplier assessment for impacts on society
• Grievance mechanisms for impacts on society
• Customer health and safety
• Marketing communications
• Compliance

Environmental Achievements

• Reduced specific heat consumption of clinker production by 13.8% and specific electricity consumption of cement production by 8.3% since 1990
• Substituted 26.6% of primary fuels with alternative fuels, avoiding 1.8 million tons of coal
• Consumed 16.5% of power needs in cement operations from clean energy sources

Social Achievements

• Implemented community engagement plans in approximately 98% of operations
• Provided 49,336 training hours on Human Rights-related issues, covering 63% of employees
• 61.2% of the workforce represented in formal joint management-worker health and safety committees

Governance Achievements

• All supplier contracts include anti-bribery clauses and anti-bribery certification letters
• 100% of new suppliers sign the Code of Conduct
• No incidents met the Foreign Corrupt Practices Act and UK Antibribery Act standard for corruption

Climate Goals & Targets

Environmental Challenges

• Risks related to climate change
• Potential negative impacts on local communities
• Potential risks related to corruption in some operations
• Potential negative impacts on labor practices and human rights in the supply chain

Mitigation Strategies

• Implemented a comprehensive sustainability model
• Developed community engagement plans
• Implemented a global compliance program
• Screened suppliers using environmental, labor practices, and human rights criteria
• Developed action plans to address potential negative impacts

Supply Chain Management

Supplier Audits: 2,681 suppliers evaluated

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Third-party Assurance: PwC

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Climate Change
• Emissions
• Environmental Protection
• Occupational Health and Safety
• Labor Practices
• Human Rights
• Community Engagement
• Anti-corruption
• Product Responsibility

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

• 72.7% of the workforce represented in formal joint management-worker health and safety committees
• Implemented community engagement plans in 98% of operations
• Provided 9,064 training hours on Human Rights-related issues

Governance Achievements

• 100% of new suppliers signed Code of Conduct including anti-bribery clauses
• 797 employees trained on corruption and bribery
• No incidents of corruption found

Climate Goals & Targets

Environmental Challenges

• Potential water stress at 9% of sites
• Risks related to corruption in 15 CEMEX operations classified as medium to high risk countries
• Potential negative impacts on local communities

Mitigation Strategies

• Implementing Biodiversity Action Plans (BAPs) in quarries located in areas with high biodiversity value
• Assessing all high-risk operations for corruption risks; implementing anti-bribery clauses in supplier contracts
• Community engagement plans to identify and address community concerns

Supply Chain Management

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

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

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 building solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

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
• Marketing and 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
• 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
• Substituted 28% of primary fuels with alternative fuels
• Consumed 30% of power needs in cement operations from clean energy sources

Social Achievements

• 100% of new suppliers signed Code of Conduct addressing environmental, labor, health & safety, human rights, and diversity issues
• 76% of workforce represented in formal joint management-worker health and safety committees
• Over 12000 employees trained on antitrust, anti-corruption and bribery

Governance Achievements

• Established ETHOSline, a confidential reporting system managed by NAVEX GLOBAL for ethics, compliance, and governance issues

Climate Goals & Targets

Environmental Challenges

• 24 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 high-risk operations for corruption risks; no incidents found
• Implemented water management strategies to minimize use
• Developed Biodiversity Action Plan (BAP) for quarries in high biodiversity value areas

Supply Chain Management

Supplier Audits: 187 critical suppliers evaluated in 2019

Responsible Procurement

• Supplier Code of Conduct

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

• Goals 1, 3, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16

Not disclosed

Sustainable Products & Innovation

• Ready-Mix Concrete Technologies, Green Building solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Climate Change
• Customer Experience
• Sustainable Construction
• Circular Economy
• Employee Experience
• Supplier Sustainability
• Community Relations
• Ethics and Compliance

Environmental Achievements

• Reduced net CO2 emissions per ton of cementitious products by 22.6% compared to the 1990 baseline
• 91% of cement plants co-processed alternative fuels
• Significant reduction in clinker factor (~1 pp vs 2019)
• Consumption of waste from other industries 31 times what was sent to landfill
• 98% of target quarries implemented Biodiversity Action Plans
• Launched Vertua®, the industry's first net-zero CO2 concrete solution

Social Achievements

• 96% of operations registered zero fatalities and zero disabling incidents
• Improved annual Net Promoter Score by 150%
• 63% of spending on critical suppliers assessed in terms of sustainability
• External verification of contractors in health and safety for 82% of procurement spending
• +20,000 employee hours invested in volunteer programs
• +23 million people positively impacted by social initiatives since 1998

Governance Achievements

• Successful refinancing of bank debt under our Credit Agreement, incorporating sustainability metrics
• One of the largest sustainability-linked loans in the world

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations, supply chains, and demand
• Economic uncertainty
• Political uncertainty and social instability
• Complex competitive dynamics
• Climate-related risks (transition risks, physical risks)
• Financial risks (debt levels, access to financing)
• Regulatory and compliance risks
• Energy price volatility
• Raw material availability and cost increases
• Cyberattacks and IT risks
• Health and safety risks
• Talent retention and attraction
• Potential disruption from emerging technologies and innovation
• Adverse weather conditions and natural disasters

Mitigation Strategies

• Implementation of Operation Resilience strategy
• Focus on customer experience through digital platforms
• Proactive health and safety protocols
• Sustainability-linked financing
• Cost savings and investment deferrals
• Portfolio optimization
• Debt reduction
• Strengthening revenue streams
• Improved operational excellence
• Country-specific strategies
• Business continuity plans
• Risk management framework
• Compliance program
• Alternative fuel use
• Long-term energy and fuel contracts
• Energy efficiency improvements
• Raw material sourcing strategies
• Cybersecurity controls
• Disaster recovery plans
• Insurance coverage
• Talent development programs
• Community engagement
• Innovation and R&D
• Digital strategy

Supply Chain Management

Supplier Audits: 63% of critical supplier spending assessed in 2020

Responsible Procurement

• Supplier Sustainability Program
• Code of Ethics and Conduct for Suppliers
• Health and safety verification of contractors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Carbon pricing
• Stringent energy efficiency standards

Opportunities

• Development of low-carbon products and solutions
• Sustainable urban development

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 15

CEMEX's initiatives contribute to these SDGs through various programs and strategies related to health and safety, economic growth, sustainable infrastructure, responsible consumption and production, climate action, and life on land.

Sustainable Products & Innovation

• Vertua® net-zero CO2 concrete
• Other low-carbon concrete solutions

Awards & Recognition

• EPA ENERGY STAR® Sustainable Excellence Award
• Wildlife Habitat Council's Corporate Conservation Leadership Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Customer Centricity
• Community Engagement
• Diversity and Inclusion

Environmental Achievements

• Reduced CO2 emissions by 4.7% (largest annual decline ever achieved)
• Increased alternative fuels rate to 29.2% (record substitution rate)
• Reduced clinker factor to 75.2% (lowest level in 10 years)
• Achieved ~30% clean electricity consumption rate
• Managed 23 million tons of waste (57 times more than sent to landfills)

Social Achievements

• Achieved employee Net Promoter Score (eNPS) of 48 (above global benchmark)
• Positively impacted over 25 million people through social initiatives
• Increased female employees in operational positions threefold in Mexico
• Launched 'Yo Construyo Autonomía' program for women's self-construction and empowerment

Governance Achievements

• Increased independent board members to 66%
• Published Sustainability-Linked Financing Framework
• Improved credit rating to BB by Fitch, positive outlook from Fitch and S&P

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacts (supply chain disruptions, economic slowdown)
• Uncertain economic conditions (inflation, energy prices, market volatility)
• Geopolitical uncertainty and social instability
• Highly competitive market dynamics
• Stricter ESG regulations and stakeholder expectations
• Climate-related risks (carbon regulation, technology development, physical risks)
• Raw material availability and cost
• Cybersecurity threats
• Health and safety risks
• Talent retention and attraction
• Stakeholder interests
• Disruption from emerging technologies

Mitigation Strategies

• Implemented 52+ COVID-19 protocols, business continuity plans, and rapid response teams
• EBITDA growth through margin enhancement, cost containment, and portfolio optimization
• Financial strategy for liquidity and flexibility, debt reduction
• Tailor-made public affairs strategies, stakeholder engagement
• Superior customer experience through digital technologies (CEMEX Go)
• Compliance with ESG regulations, stakeholder engagement, and robust reporting
• CO2 roadmap with site-specific reduction initiatives, validated by SBTi
• Development and commercialization of low-carbon products (Vertua®)
• Investment in CCUS technologies, renewable energy, and alternative fuels
• Long-term contracts for raw materials and resources
• Robust cybersecurity controls and recovery plans
• Comprehensive health and safety management system (HSMS), Zero4Life commitment
• Employee experience programs, talent management initiatives
• Sustainable community engagement plans
• Digital transformation, innovation through CEMEX Ventures
• Business continuity plans for adverse weather and natural disasters

Supply Chain Management

Supplier Audits: 72% of critical suppliers assessed in 2021

Responsible Procurement

• CEMEX Code of Ethics and Business Conduct
• Code of Conduct When Doing Business With Us
• Supplier Sustainability Program
• Contractor Health and Safety Verification Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water stress

Transition Risks

• Carbon regulation
• Technology development

Opportunities

• Development of energy-efficient products
• Growth in sustainable construction

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 8
• SDG 9
• SDG 11
• SDG 13
• SDG 15

Initiatives aligned with SDGs 8 (Decent Work and Economic Growth), 9 (Industry, Innovation and Infrastructure), 11 (Sustainable Cities and Communities), 13 (Climate Action), and 15 (Life on Land).

Sustainable Products & Innovation

• Vertua® low-carbon and net-zero CO2 concrete and cement
• ReadyBlock Zero zero-carbon concrete block

Awards & Recognition

• EPA ENERGY STAR® Partner of the Year – Sustained Excellence Award (CEMEX USA)
• CDP A List for climate action leadership
• CDP A rating for Supplier Engagement Rating (SER)

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 with 2030 goals for gender representation
• Leadership Development and Functional and Continuous Learning Programs available to executives and directors

Governance Achievements

• First in the industry to publish a Sustainability-Linked Financing Framework, verified by an independent third party
• ETHOS program to ensure adherence to world-class standards of corporate behavior
• Global Compliance Program progress

Climate Goals & Targets

Environmental Challenges

• Sustainability risks identified in the 2022-2023 sustainability risk agenda, considering reputational or financial impact and probability of occurrence

Mitigation Strategies

• Action plans to mitigate sustainability risks and minimize their impact

Supply Chain Management

Responsible Procurement

• Responsible sourcing

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Water
• Biodiversity
• Air Quality
• Health & Safety
• Customer Centricity
• Community Engagement
• Supplier Relationships
• Diversity, Equity, and Inclusion
• Ethics and Compliance

Environmental Achievements

• 4% decline in Scope 1 specific net CO2 emissions vs. 2022
• 13% reduction in Scope 1 specific net CO2 emissions vs. 2020
• 12% reduction in Scope 2 specific CO2 emissions vs. 2020
• 37% alternative fuels substitution rate (record)
• 72% clinker factor reduction
• ~28 million tons of waste and byproducts repurposed
• 56% Vertua® cement sales
• 48% Vertua® ready-mix concrete sales

Social Achievements

• Employee Lost Time Injury (LTI) frequency rate of 0.6
• Zero incidents across 96% of global operations
• 31% reduction in contractor LTIs
• Net Promoter Score (NPS) of 70 (surpassing 2030 target)
• Employee Net Promoter Score (eNPS) of 57
• 78% of ethics cases closed in two months or less
• Over 1,200 suppliers participated in UN Global Compact’s Sustainable Supplier Impact Program
• ~28 million people benefited through community programs since 1998

Governance Achievements

• Increased percentage of independent and diverse members on the Board of Directors
• Implemented Clawback Policy
• Enhanced diversity, equity, and inclusion policies
• Enhanced disclosure around shareholder meetings and compensation

Climate Goals & Targets

Environmental Challenges

• Uncertain economic conditions
• Changes in competitive landscape
• Political uncertainty
• Unexpected escalation of geopolitical conflict
• ESG risks and regulations
• Climate-related risks (physical and transition)
• Lower availability or increased cost of raw materials
• Cyberthreats and information technology risks
• Operational disruption due to different interests from stakeholders
• Health and safety risks
• Talent attraction and retention
• Pandemic, epidemic, or other public health threats
• Industry disruptions by emerging technologies or alternative solutions
• Just transition: collateral impacts from transitioning to a low-carbon economy
• Inadequate governance and implementation of AI
• Intensification of cost-of-living concerns

Mitigation Strategies

• Strong pricing and cost discipline
• Superior customer experience through digital technologies
• Portfolio optimization and growth investments
• Tailor-made public affairs strategies
• Business continuity plans and Rapid Response Teams
• Execution of ESG strategy, including Future in Action program
• Long-term contracts for raw materials
• Enhanced cybersecurity controls and processes
• Sustainable community engagement plans
• Zero4Life commitment and safety technologies
• Talent management processes and competitive compensation
• Health and safety protocols and business continuity plans
• R&D and innovation initiatives
• Just transition principles and stakeholder engagement
• Institutional guidelines and controls for AI
• Collaboration with governments and communities

Supply Chain Management

Supplier Audits: 77% (critical suppliers) in 2023; expanding to non-critical suppliers

Responsible Procurement

• Supplier Code of Conduct
• UN Global Compact Sustainable Supplier Impact Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Floods
• Heatwaves

Transition Risks

• Carbon regulation
• Technology transition
• Market transition
• Reputation transition

Opportunities

• Development of energy-efficient products and solutions
• Carbon capture, utilization, and storage (CCUS)

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ENERGY STAR®

UN Sustainable Development Goals

• SDG 9
• SDG 11
• SDG 12
• SDG 13

Initiatives contribute to these goals through various programs and strategies

Sustainable Products & Innovation

• Vertua® products

Awards & Recognition

• CDP A List for climate change disclosure
• EPA ENERGY STAR® Partner of the Year
• Brandon Hall Learning Excellence Awards
• Corresponsables Social Transformation Award