sustainable development at holcim integrating sustainability into ongoing business activity swiss sustainability leaders sri conference 4 october 2013 holcim ltd strength performance passion

Strength. Performance. Passion. © 2013 Holcim Ltd Sustainable Development at Holcim - Integrating sustainability into ongoing business activity IFZ - MAS Corporate Finance 20_10 – Funding December 7, 2012, 14.10 – 17.50 2013-06-27 © 2013 Holcim Ltd Swiss Sustainability Leaders SRI Conference; 4 October 2013 © 2013 Holcim Ltd Agenda 2 Energy and Climate Protection, 2013-07-31 Holcim at a glance and our impacts Managing SD and determining material issues Managing key impacts: OH&S Managing key impacts: Energy and carbon emissions Managing key impacts: Sustainable Procurement Managing key impacts: Other environmental impacts Managing key impacts: Social responsibility approach Managing key impacts: Human Rights Impact assessments © 2013 Holcim Ltd Holcim at a glance – product segments and net sales Cement Aggregates Net sales CHF 21.5 billion Cement Clinker Product segments 2012 Net sales per segment 2012  217.5 million tonnes production capacity  147 cement and grinding plants  Sales: 148.0 million tonnes  470 aggregates plants  Sales: 159.7 million tonnes  1,286 RMX plants  99 asphalt plants  Sales of ready-mix concrete: 46.9 million m 3  Sales of asphalt: 9.1 million tonnes Aggregates Other construction materials & services 10.4% 58.0% 31.6% Op. EBITDA per segment 2012 Op. EBITDA CHF 4.0 billion 3.4% 86.5% 10.1% Other Construction Materials and Services 3 © 2013 Holcim Ltd 4 Holcim at a glance – well balanced global portfolio Africa Middle East Europe Asia Pacific North America Latin America Net sales per region 2012 14.7% 26.1% 39.2% 4.3% 15.7% Europe Sales volumes per region 2012 North America Latin America Africa Middle East Asia Pacific (million t or m 3 ) Net sales CHF 21.5 billion Op. EBITDA per region 2012 Op. EBITDA CHF 4.0 billion 11.4% 14.9% 44.4% 6.6% 22.7% • Cement 79.2 • Aggregates 27.8 • Ready-mix concrete 12.8 • Cement 24.9 • Aggregates 14.0 • Ready-mix concrete 10.2 • Cement 26.3 • Aggregates 74.3 • Ready-mix concrete 14.7 • Cement 12.0 • Aggregates 41.3 • Ready-mix concrete 8.1 • Cement 8.4 • Aggregates 2.3 • Ready-mix concrete 1.1 © 2013 Holcim Ltd 5 Our commercial success means that Holcim has a significant footprint on the planet… WATER • Water consumption: 140 Mm 3 /y • Sufficient to supply the city of Paris or Berlin for one year RAW MATERIALS • Raw materials extraction: 360 Mt/y • One 55t truck every 5 seconds CLIMATE CHANGE • Climate change: 100 Mt of CO 2 /y • Equivalent to 0.3% of worldwide carbon emissions • Equivalent to the total carbon emissions of Belgium in a year (but GDP of Belgium = 20 x Holcim revenues) POWER • Annual electricity consumption of 17.5 TWh • Sufficient to cover yearly demand of more than 4 Millions households © 2013 Holcim Ltd Managing our impacts - Sustainable Development: A part of our mission 6 Optional footer entry, 2013-02-11 Vision: We want to provide foundations for society's future. Mission: We want to be the world's most respected and attractive company in our industry – creating value for all our stakeholders. Holcim Strategy House: Working within the triple bottom line © 2013 Holcim Ltd C O M P E T I T I V E A D V A N T A G E 7 Optional footer entry, 2013-02-11 The driver is clear - sustainable development makes business sense Regulatory compliance, legal license to operate Societal license to operate, recognition by regulators and engage Identifying and avoiding risk, identifying opportunities, providing societal value Brand differentiation, new markets, products & services outperforming competitors, maximizing societal and shareholder value Compliance Integration into business Risk Mitigation Reputation Management „Some of the greatest opportunities in the 21st century will be turning waste (inefficiency, underutilization, energy waste) into profit“ Source: Michael Braungart and William McDonough, „Cradle to Cradle: Remaking the Way we Make Things“; 2002 © 2013 Holcim Ltd Agenda 8 Energy and Climate Protection, 2013-07-31 Holcim at a glance and our impacts Managing SD and determining material issues Managing key impacts: OH&S Managing key impacts: Energy and carbon emissions Managing key impacts: Sustainable Procurement Managing key impacts: Other environmental impacts Managing key impacts: Social responsibility approach Managing key impacts: Human Rights Impact assessments © 2013 Holcim Ltd 9 Optional footer entry, 2013-02-11 • Managing these issues makes good business sense  Mitigating risk and leveraging opportunity  Maintain our license to operate  Reduce operating costs and increase revenues  Ability to attract and retain employees  Improve access to capital  A seat at the regulators table Key SD issues - determined with SD materiality review. External report review panel: © 2013 Holcim Ltd Agenda 10 Energy and Climate Protection, 2013-07-31 Holcim at a glance and our impacts Managing SD and determining material issues Managing key impacts: OH&S Managing key impacts: Energy and carbon emissions Managing key impacts: Sustainable Procurement Managing key impacts: Other environmental impacts Managing key impacts: Social responsibility approach Managing key impacts: Human Rights Impact assessments [...]... assessment Continuous evaluation of risk exposure through self-assessment / fact finding / verification, as determined by Group Companies 4 Risk mitigation Supplier development or replacement, as determined by Group Companies 5 Scorecard Continuous performance tracking for the Holcim Corporate Sustainable Development Report as in the past © 2013 Holcim Ltd Agenda Holcim at a glance and our impacts... revenue] Source: Holcim estimates Energy and Climate Protection, 2013- 07-31 © 2013 Holcim Ltd 14 The production of clinker – the key component of cement – relies on energy and is the main source of CO2 Quarry - extraction Raw meal grinding Clinker production Cement grinding Cement distribution Concrete production Energy and Climate Protection, 2013- 07-31 © 2013 Holcim Ltd 15 Since 1990, Holcim took actions... reasons Energy and Climate Protection, 2013- 07-31 © 2013 Holcim Ltd 18 Product transparency is key, as customers choice can reduce energy and climate change challenges Gold Silver Bronze Innovation Green labels Product Carbon Footprint Environmental Product Declaration Increase customers awareness of efficient solutions Energy and Climate Protection, 2013- 07-31 © 2013 Holcim Ltd 19 The next step change... Lost-Time Injury Frequency Rate • Target < 1 • • Holcim CEO Summertalk 2013, 2013- 06-21 (LTIFR) for own and subcontracted employees has dropped to 1.3 Aim to improve even further – want to achieve . 2012, 14. 10 – 17.50 2013- 06-27 © 2013 Holcim Ltd Swiss Sustainability Leaders SRI Conference; 4 October 2013 © 2013 Holcim Ltd Agenda 2 Energy and Climate Protection, 2013- 07-31 Holcim at a glance. Strength. Performance. Passion. © 2013 Holcim Ltd Sustainable Development at Holcim - Integrating sustainability into ongoing business activity IFZ - MAS Corporate Finance 20_10. Cement 8 .4 • Aggregates 2.3 • Ready-mix concrete 1.1 © 2013 Holcim Ltd 5 Our commercial success means that Holcim has a significant footprint on the planet… WATER • Water consumption: 140 Mm 3 /y •