For internal use only.

“The 2030 Plan”

The LafargeHolcim Sustainability Strategy

1 2
Executive Summary

The social and environmental challenges the world is

facing are more critical than ever. The newly adopted We will generate 1/3 of our turnover from solutions with enhanced sustainability performance
United Nations Sustainable Development Goals (SDGs)
and the Paris Agreement on Climate (COP21) Climate Circular
Economy
Water &
Nature
People &
Communities

have created a new framework for action for everyone

– including regulators, companies and citizens.
At LafargeHolcim, sustainability contributes “The 2030 Plan” defines the required next
to our business strategy and is a key lever steps for our company to move in that In house We will reduce net specific We will use 80 million tonnes We will reduce specific We want zero fatalities
CO² emissions by 40% per of waste-derived resources freshwater withdrawal in
for growth. We want to lead in sustainability direction along 4 fields of action. It sets tonne of cement (vs. 1990) per year cement operations by 30%
We will reduce LTI FR < 0.20

and set new standards. We want to help quantitative targets related to our direct We will implement
We will reduce TIFR by 50%

transform the way our industry works and and indirect impacts, positive and negative, The WASH Pledge on all sites We will reduce our disease
rate < 0.1
encourage the whole construction sector to over the whole lifecycle of our products We will have 30% minimum
play its full part in addressing our planet’s and services. It also addresses the impacts gender diversity at all
management levels
biggest issues. our operations have beyond the fence line
Beyond We will help our customers We will provide end-of-life We will make a positive We will develop initiatives
of our plants.
Our Sustainability Strategy – “The 2030 Plan” our fence avoid 10 million tonnes of
CO² being released from
solutions for our products
and will supply 4 times more
impact on water inŠwater-
scarce areas
to benefit 75 million people

– sets a vision. The construction sector of buildings each year through recycled aggregates from
We will show a positive
We will engage in collective
action to combat bribery &
our innovative solutions CDW/RAP
tomorrow will be innovative, climate-neutral change for biodiversity corruption in high risk
countries
and circular in its use of resources. It will be
respectful of water and nature. It will be
Innovative Low-carbon cement &Š Recycled aggregates Rainwater harvesting Affordable housing
inclusive – enhancing quality of life for all. solutions concrete materials and solutions
Urban mining solutions Pervious concrete
Insulating concrete Affordable sanitation
Waste management services Stormwater protection solutions
Thermal-mass solutions
Vertical green solutions

Note: all targets are for 2030. Baseline year is 2015 unless stated otherwise.
CDW: Construction & Demolition Waste, RAP: Reclaimed Asphalt Pavement, WASH Pledge: Water, Sanitation and Hygiene Implementation at the Workplace, LTI FR: Lost Time Injury Frequency Rate, TIFR: Total Injury Frequency Rate.

“The 2030 Plan” was developed with involvement of employees from every relevant Group
function and every region of LafargeHolcim. In addition, 11 high-level external stakeholders
were involved in developing it.

2 3
Context

Population growth (an estimated 1.4 billion more

people by 2030), rising living standards (the global
middle class is expected to increase by over a billion
people in the next 10 years) and greater urbanization
offer significant business and growth opportunities for
LafargeHolcim. At the same time, these trends bring
major challenges for the planet. Issues like climate
change and increasing demand for limited resources
require companies to go beyond “business as usual”,
innovate their solutions portfolio and, ultimately,
consider alternative business models.
To be sustainable, mankind must achieve a The Stockholm Resilience Centre, with a
high level of human development without number of research institutions, has
exceeding nature’s carrying capacity. This is identified 10 “planetary boundaries” – i.e.
the quintessential challenge of the times. the frame within which humanity can safely
As countries industrialize and raise their operate without triggering irreversible
populations out of poverty, they need changes to the planet. Their studies have also
solutions that allow them to have both identified that we have already pushed over
prosperity and an acceptable environmental the safety zone for Climate Change,
quality (clean air, clean water and Biodiversity Loss and the Nitrogen Cycle,
uncontaminated land). However, the current and that we are approaching the limit of the
growth model has led to a significant Phosphorous Cycle. Climate Change and
overshoot of this carrying capacity as living Biodiversity Loss are particularly relevant
standards have risen. topics for the cement industry as it has a
significant impact in these areas.

4 5
Context

Alignment with the UN The 2030 Agenda comprises 17 new Adaptation creates business COP21, towards a globally
Sustainable Development Goals (SDGs),
Development Goals opportunities coordinated framework
or Global Goals, which will guide policy and
In response to the increasing calls for funding for the next 15 years, beginning Within this broad context, companies are In December 2015, a deal to attempt to limit
leadership in dealing with poverty, inequality with a historic pledge to end poverty. increasingly required by their stakeholders the rise in global temperatures to less than
and climate change, world leaders gathered to demonstrate that the growth of their 2°C was agreed at the climate change summit
on September 25, 2015 at the United Nations As can be seen from the diagram below, businesses does not come at a cost to in Paris (COP21) after two weeks of intense
in New York to adopt the 2030 Agenda for the LafargeHolcim 2030 Plan aligns with the the natural environment and to society. negotiations. The Paris Agreement, the first
Sustainable Development. majority of the 17 Sustainable Development In response, progressive companies have set universal climate agreement provides a
Goals adopted – particularly those that are out programs to demonstrate that they have framework to accelerate the transition to
most material to our operations. the potential to contribute positively to a competitive and low-carbon economy
holistic value creation. This has extended the that was called for by the forward looking
concept of the triple bottom line beyond the business community. It formulates the
NO ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER
simple management of financial, natural and ambition to peak GHG emissions as soon
POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION social aspects as 3 separate legs, to the as possible and achieve carbon neutrality
recognition that all 3 are a form of capital by 2050.
(financial, natural and social) that can only
Importantly, the agreement provides
be optimized with an integrated approach.
✔ ✔ ✔ ✔ ✔ long-term visibility and introduces the need
There is growing consensus that a to set and regularly review national reduction
AFFORDABLE AND
CLEAN ENERGY
DECENT WORK AND
ECONOMIC GROWTH
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
REDUCED
INEQUALITIES
SUSTAINABLE CITIES
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION
sustainable future for society requires the targets, leading to cooperative and
AND PRODUCTION full cost of social and environmental impacts comparable efforts among countries. It also
(negative and positive) to be accounted for in underlines the importance of establishing
products and services in order to provide the consistent rules to measure emissions.
✔ ✔ ✔ ✔ ✔ price signal needed to achieve sustainable This is an important step towards deployment
consumption and production. Increasingly, of carbon pricing policies globally.
CLIMATE LIFE LIFE PEACE, JUSTICE PARTNERSHIPS governments are taking action to ensure
ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS
INSTITUTIONS that so called “externalities” are internalized.
Fossil fuel subsidies are being reduced,
water-pricing policies are being reformed
✔ ✔ ✔ ✔ to reflect real value, and countries are
establishing CO2 regulations aimed at
Developed in collaboration with | TheGlobalGoals@[Link] | +1.212.529.1010
putting a price on carbon.
For queries on usage, contact: dpicampaigns@[Link]

6 7
Introduction – “The 2030 Plan” “The 2030 Plan” –
Building for tomorrow
LafargeHolcim is the largest building materials “The 2030 Plan” sets a long-term vision. The
company in the world, with a presence in 90 construction sector of tomorrow will be innovative,
countries, over 100,000 employees, net sales climate-neutral and circular in its use of resources.
of more than CHF 30 billion and a production It will be respectful of water and nature. It will be
capacity of 370 million tonnes of cement a year. inclusive – enhancing quality of life for all.
We focus on cement, concrete and aggregates The Plan demonstrates our own efforts to “The 2030 Plan” defines the required next
and own approximately 2,500 plants (including improve the sustainability performance of steps to achieve our long-term vision. It sets
our operations and puts the focus on quantitative targets related to our direct and
over 1,600 in ready mix concrete, over 600 in developing innovative and sustainable indirect impacts, positive and negative, over
solutions for better building and the lifecycle of our products and services:
aggregates, over 180 in cement, and over infrastructure. It goes beyond our own from the sourcing of raw materials to our
70 grinding plants). business activities. It covers the entire
construction value chain and the lifecycle
products’ end-of-life through the
manufacture and use phases. It also
of buildings. addresses the impacts our operations have
Our company has a long history Our ambition beyond the fence line of our plants.
of performance in Sustainable We are committed to working in partnerships
Sustainability contributes to our
Development. Building on this strong to make a real difference – for communities,
business strategy and is a key lever
heritage, the LafargeHolcim our planet, and our business. Because at
for growth.
Sustainability Strategy – “The 2030 Plan” LafargeHolcim, we want to build for
– has been developed to help us As LafargeHolcim, we want to lead in tomorrow.
efficiently develop and deploy solutions sustainability and set new standards.
to social and environmental challenges, We want to help transform the way our
whilst continuing to grow our business. industry works and encourage the
whole construction sector to play its full
part in addressing our planet’s biggest
issues. As the global leader in the
construction materials industry, we
have both the opportunity and a
responsibility to make a positive
difference.

8 9
Driving Innovation

Our ambition
We will lead by innovation and develop
products, services and solutions with
enhanced environmental and social
performance compared to current
standards.

We will be a thought leader in the sector

and drive transformation along the
construction value chain.

We will identify, promote and reward

the most progressive concepts in the
construction industry via the LafargeHolcim
Foundation for Sustainable Construction.

Our 2030 target

We want to generate 1/3 of our revenue
from our “2030 Solutions”, our portfolio
of products and services with enhanced
sustainability performance.

10 11
Driving Innovation

Our agenda for action Thought leadership in the Promoting progressive sustainable Our advocacy
Innovation leadership in construction sector construction practices We will advocate for the development of an
sustainability: the “2030 Solutions” Despite all efforts to harmonize the definition The LafargeHolcim Foundation for enabling and incentivizing regulatory and
of sustainable construction and establish Sustainable Construction creates awareness normative framework that is performance-
We will continue using our ideas, influence
common metrics, the construction value of the importance of sustainable construction based, material-neutral and thereby ensures
and research capabilities to build a portfolio
chain is still highly fragmented. This causes among professionals and the public. It the maintenance of a level playing field. The
of innovative, sustainable solutions that will
dilemmas of conflicting interests (i.e. owner encourages sustainable responses to the deployment of our 2030 Solutions will require
benefit the environment and society as well
vs. user of buildings) and different built environment leading to an improved incentivizing regulations – for instance a
as our business.
“languages” used to describe sustainable quality of life for users. robust CO2 price signal or appropriate waste
We continue to invest more in research and construction in different ways. management regulations – as well as
development than other international cement Together with its partner universities, the progressive building codes and standards.
groups. We have the world’s leading R&D We will lead strong cross-sector partnerships Foundation advances the academic discourse We will also raise awareness in the market
center in our sector, located in Lyon (France), to optimize and synchronize the construction of sustainable construction by holding to create a demand for sustainable solutions
with satellite locations across various regions value chain. By doing so, we want to drive international symposiums – the and promote increased cooperation across
developing a broad portfolio of innovative the transformation towards a seamless, LafargeHolcim Forum and Roundtables. the construction value chain.
and sustainable “2030 Solutions”. progressive and solution-based construction The Foundation also presents LafargeHolcim
sector. Awards on regional and global levels. The
Our “2030 Solutions” are products and Awards are the most significant international
services with enhanced environmental We want to create a proactive network
competition for sustainable design and are
or social performance compared to the among leading players along the
open to everyone involved in sustainable
prevalent solution in a given market along construction value chains, including
construction.
the lifecycle. supranational organizations and NGOs.
The aim is to enable value chain The Foundation supports the Group in its
These include different categories: inclusive transformation in areas like carbon savings R&D and innovation efforts by conducting
business models, water management down the value chain, energy efficiency in academic symposiums – on topics such as low
solutions, urban mining solutions (recycled buildings, responsible sourcing of CO2 binders, recycling demolition waste or
aggregates), waste treatment services, construction materials or common lifecycle economy of buildings.
energy-efficient solutions (insulating building methodologies and tools to measure and
materials), resource-efficient solutions (high communicate sustainable performance.
recycled content, soluble cement bags) and
Our pathway to 2030
low CO2 building materials.
We believe we can gain a first-mover Objective/Metrics Target 2020 Target 2025 Target 2030
advantage by developing expertise and
brand equity in the segment of sustainable Percentage of turnover from portfolio 10% 20% 33%
construction. We will do this by moving of innovative and sustainable solutions
quickly and anticipating and shaping green (specifically labelled, on a voluntary basis)
labels and green regulations to drive sound Baseline 2014 (estimate): 6–8%
decisions on building materials.
Our challenge is to successfully deploy our
“2030 Solutions” across the 90 countries we
operate in. “The 2030 Plan” requires
transformational change of our business,
dedication, determination and accountability.

12 13
Climate

Moving towards a carbon-neutral construction sector

Our ambition Our targets
LafargeHolcim will continue its mission to By 2030, we want to produce 40% less net
cut its net CO2 emissions per tonnes of CO2 per tonne of cement than we did in
cement and will help its customers avoid 1990 – representing an additional effort
CO2 emissions released from buildings and of 19% reduction if we consider 2014 as
infrastructure over the whole lifecycle reference year.
thanks to its portfolio of sustainable
This will help us remain the most CO2 -
products and services.
efficient global business in our sector. In line
with the global climate agreement concluded
in Paris at COP21, we commit to revise this
target every 5 years in order to adapt to
technical innovations and to the evolution
of climate change regulations.
By 2030, we want to help our customers avoid
10 million tonnes of CO2 released every year
from their buildings and infrastructure by
using our innovative solutions.

14 15
Climate

Our agenda for action – We will further deploy waste treatment Knowing that the only relevant metric is the Addressing the carbon footprint of
solutions. We have increased the use of absolute CO2 emission over the lifecycle of
Leadership in net CO2 emission our supply chain, of logistic activities
alternative fuels by over 350% since 1990 our products, we have developed a peer-
per tonne of cement and we aim to double our actual offer of reviewed methodology which enables us and from own buildings
As a result of our past efforts, we are the waste treatment solutions to conservatively calculate avoided CO2 We consider our carbon footprint over the
most carbon-efficient cement company emissions during the use phase of our whole value chain – from the sourcing of
– We will further invest in energy efficiency:
among international groups. innovative solutions. This cutting-edge our raw materials to structures’ end-of-life
– We will replace our least energy-efficient approach will help us further drive innovation including our emissions from transport and
This 40% reduction target corresponds to the production facilities. We have reduced our towards carbon neutral construction. office buildings.
commitment to maintain the same average specific thermal consumption by 22%
rate of improvement as the past 25 years. since 1990 and want to do more Practically: Practically:
Maintaining a similar pace of improvement – We will remain the company investing the – We will engage other companies in our
in the future will be challenging, as we are – We will explore new strategies: most in R&D in our sector supply chain to declare and reduce the
getting closer to the known limits in many of – We are exploring carbon capture and use – We will deploy our innovative solutions to emissions from products we purchase
the known improvement levers. techniques (CCU) focusing on the the market (Aerium, Thermedia, Indoor (e.g clinker purchased)
application of CO2 in building materials Climate Solutions, Insulating Concrete – We will improve the performance of our
We will further decrease our emissions per
production processes – a promising option Formwork, Speedcrete, Ductal…) and report transport fleet and use low CO2 transport
tonne by using more by-products and
is “Solidia” cement for precast applications on the generated turnover modes (water, train, etc.) whenever
waste-derived resources as raw materials and
technically and economically feasible
fuels and investing in energy efficiency and Reducing CO2 emissions from – We will work with our customers to develop
innovation. Practically, the following levers integrated solutions reducing CO2 emissions – We will transparently disclose the CO2
buildings and infrastructure
will be activated: over the whole lifecycle. We’ll do this in footprint of our products to our customers
Our target of 10 Mt avoided CO2 per year from partnership from the design phase of through Environmental Product
– We will further replace clinker in final buildings and infrastructure is a considerable structures (e.g. Building Information Declarations, applying recognized
products, and develop low carbon binders: commitment. For comparison, the city of Modeling) standards
–L
ow CO2 binders – reducing clinker content Paris emits about 7 Mt CO2 per year, London
– We will leverage the LafargeHolcim – We will monitor and improve energy
in our products. We have reduced the 18 Mt CO2 per year.
Foundation for Sustainable Construction to consumption of our own buildings
intensity of clinker content by 13% since
Buildings are responsible for 30–40% of promote case studies of the most innovative
1990 by using alternative mineral
global carbon emissions. We strongly believe low CO2 solutions in the use phase
components and we aim to reduce up to
that we have a critical role to play to help – We will continue to be a leading figure in
5% more in the next few years
decrease that footprint. cross-sectoral initiatives aiming at achieving
– We’ll deploy innovative clinker types and – in the long term – carbon neutrality in the
We will develop solutions improving
new low CO2 binders (footprint decreased construction value chain
buildings’ energy efficiency, enhancing their
by 30 to 70%), such as Aether for precast
durability and reducing the material required
concrete products & ready mixed
to achieve the same functionality. We will
concrete
provide solutions to repair roads faster or
– We will use more waste-derived fuels, extend the durability of road surfaces. We will
including biomass waste: also develop solutions maximizing CO2
–W
e will use biomass from agricultural capture by concrete over its lifecycle.
waste, building on our long experience in
biomass initiatives with communities in
Africa – not competing with human food
production. We have successfully
increased our use of biomass waste fuels
by more than 600% since 1990 and want
to do more

16 17
Climate

Developing the use of Our advocacy Our pathway to 2030

renewable energy We engage with governments across many
jurisdictions on the development of effective Objective/Metrics Target 2020 Target 2025 Target 2030
While direct CO2 emissions (Scope 1)
represent the vast majority of our and incentivizing climate regulatory
Net specific CO2 emissions – improvement -33% -37% -40%
greenhouse gas emitted, and is thus our frameworks. We advocate for efficient,
form 1990 baseline
primary focus, we acknowledge our effective, fair and consistent regulations:
(2014 – 26%)
responsibility to act on our total power – We support carbon pricing, the linking
portfolio. We therefore commit to report between carbon pricing mechanisms as a Specific net kg CO2 /t cem. 519 488 467
on our use of electricity from renewables. way to progress towards a global carbon (2014 – 574)
price signal
Practically: Clinker factor < 68% < 66% < 65%
–W
e will optimize the use and performance – We advocate for a long term, stable and
(2014 – 71%)
of our assets producing low carbon power reliable environment to encourage
(e.g. waste heat recovery units) investments and support plans to reduce Thermal Substitution Rate > 25% > 30% > 35%
CO2 emissions further and to adapt to (2014 – 14.4%)
–W
e will invest in renewable power – or
climate change,
purchase it – when it is economically and
technically advantageous – We advocate for climate policies that are
fully integrated in a coherent policy
–W
e will seize opportunities to generate
framework (incl. energy, industrial and
renewable energy by optimizing the use
innovation policies) and that is responsive to
of our land (e.g. using biomass residues,
changes in macro-economic environments;
using quarries as water reservoir for hydro
power, using land for wind mills or solar – We advocate for a level-playing field
panel farms) between domestic producers and
importers, and among industries. This is a
necessity to avoid carbon leakage during
the transitory period in which different
carbon costs apply from one jurisdiction
to another,
– We advocate for comparable and
coordinated efforts among countries, and
consistent and equally enforced monitoring
and reporting rules for carbon emissions.
– We support a higher share of renewables
in the energy mix of a country power
generation capacity,
– We advocate for higher energy efficiency
standards in buildings, based on life cycle
performance and material/technology
neutrality.

18 19
Circular Economy

Making the most of waste

Our ambition Our targets
We will create more value from waste by By 2030, we want to use 80 million tonnes of
transforming it into resources for all our resources made from waste in our operations
production processes – providing sustainable each year.
waste treatment solutions.
We will be supplying 4 times more recycled
In urban areas, we will develop the use of aggregates from construction & demolition
construction and demolition waste to waste and reclaimed asphalt pavement
produce recycled aggregates. by 2030.

20 21
Circular Economy

Our agenda for action Providing solutions for the end-of- Our pathway to 2030
Transforming waste into resources life of our products
for all our production processes Objective/Metrics Target 2020 Target 2025 Target 2030
Recycling construction and demolition waste
We will reduce our dependency on natural improves buildings’ lifecycle performance Alternative fuels – million tonnes 12.6 16.5 21.4
resources and fossil fuels by transforming and increases resource efficiency in a world
waste into resources for all our production where natural resources are becoming Alternative raw materials – million tonnes 9 10 11
processes. This will also enable us to bring increasingly scarce. Our cities will be the
quarries of tomorrow. Industrial mineral components – million tonnes 28 31 37
more value to the environment and society
through sustainable solutions to waste – We will build on our unique experience in the Mineral components sold externally – 8 8 8
while reducing waste landfilling and recycled aggregates business to achieve our million tonnes
incineration. We will therefore create more ambitious target. We will accelerate the
local employment opportunities (among deployment of our recycled aggregates Industrial gypsum – million tonnes 4 4.5 5
others in waste collection, waste segregation business model linked to full service delivery
and treatment). for construction and demolition waste within Total use of waste-derived resources – > 60 > 65 > 80
major urban areas. We will engage in local million tonnes
Practically:
– We will further deploy our waste treatment partnerships or joint ventures in order to Multiplying by 4 volume of recycled > 12 > 18 > 26
services over all continents, building on our develop locally-appropriate business models. aggregates from CDW/RAP – million tonnes
long experience and applying strict Our unique selling proposition will be based
environmental and safety standards on our commitment to deliver high-quality
– We will further deploy co-processing recycled aggregates to our customers.
installations for waste-derived fuels and We will also closely monitor the increasing
raw materials in our cement operations; scarcity of sand in various regions of the
these can include: globe and develop technical alternatives –
–S
hredding installations for solid waste focusing on the processing of waste-derived
– Handling, dosing and feeding systems materials.
–P
hysical and chemical pre-treatment Our advocacy
processes
We advocate for an enabling regulatory
–W
e will further deploy biomass production framework for waste collection, segregation,
initiatives, initiating long-term partnerships preparation and recovery through
with local farmers and communities. co-processing in our production processes
While providing sustainable livelihood – in line with the waste treatment hierarchy.
to communities, these projects enable We advocate for the recognition of the
us to increase our use of residues from added-value of co-processing as a double
agriculture and forestry and simultaneous recovery process (energy
– We will use more industrial mineral and minerals).
components and mineral waste (blast- We advocate for an incentivizing regulatory
furnace slag, fly ash from coal-fired framework for the production and use of
power plants, artificial gypsum and recycled aggregates from construction and
other by-products) demolition waste, creating a business case
– We will further apply our principle of for these activities and the use of secondary
transparent communication and reliable raw materials. We act on building standards
information towards all our stakeholders to enable broader use of recycled aggregates
in high-value applications.
22 23
Water & Nature

Demonstrating respect for water and nature

Our ambition Our targets
We will save freshwater in all business lines. By 2030 we want to reduce the amount of
We will give more water to communities freshwater we withdraw to produce each
and nature than we withdraw in water- tonne of cement by 30%.
scarce areas.
We want to make a positive difference to
We will demonstrate a global positive change water resources in areas where it’s scarce.
for biodiversity in our mining sites.
We want to bring a global positive change
We will provide appropriate hygiene on biodiversity by 2030.
conditions of all workers on our sites.
We want to make sure that all our employees
and contractors can access safe water,
sanitation and hygiene on all our sites.

24 25
Water & Nature

Our agenda for action Positive change on biodiversity Our pathway to 2030
Reduction of freshwater withdrawal We will use our established biodiversity
reporting methodology2 to assess the overall Objective/Metrics Target 2020 Target 2025 Target 2030
We will reduce our freshwater withdrawal
through rainwater harvesting, reuse of biodiversity condition of a defined site
Reduction of specific -20% -25% -30%
wastewater and deployment of best practices consisting of one or more different habitat
freshwater withdrawal in
in responsible and efficient use of freshwater types. The outcome of this assessment is
the cement business line
resources within our operations. expressed as a “Site Condition Class” on a
scale of 1–10 and takes into account: Achieve a positive Change on Baseline Demonstrate a
Positive impact on water resources – The extent of every habitat type found on Biodiversity across the Group assessment of positive change
in water-scarce areas a site biodiversity on biodiversity at
We will create a more efficient, equitable, – The ecological condition of these habitats, condition of all Group level
and sustainable approach to water resource including enhancements and threats active quarries
management in water-scarce areas by established
– The uniqueness and ecological importance
giving back more and better quality water of each habitat in the regional context Biodiversity Management All our active Biodiversity
to communities and nature than the water
We will deploy professional biodiversity on our sites quarries to have Management Plan
we withdraw.
management practices and rehabilitation/ a Biodiversity of quarries with
The “positive water index” for each site will be restoration practices to demonstrate an Management medium to high
assessed through a “Water Credit versus overall net positive change to ecosystems System (BMS) biodiversity
Water Debit” approach. It will consider both and biodiversity. in place sensitivity
quantitative and qualitative dimensions. externally
We will further engage in partnerships with reviewed/
Building on previous experiences, we will international or local organizations, with validated
deploy different categories of projects proven track records of success.
enhancing water sustainability1: Ensure access to safe Water, Sign the WBCSD
– Watershed protection and restoration: Our advocacy Sanitation and Hygiene at WASH Pledge
recharge of natural water, construction of We advocate for an enabling regulatory the workplace and be compliant
wetlands to intercept run-offs, reduction of framework for the protection and by 2020
water consumption for irrigation using drip enhancement of water, biodiversity and
irrigation, reforestation ecosystems (e.g. water pricing policy,
– Water access and sanitation: improvement tax incentives).
of the access to safe water by well Related projects often require a team with a
constructions, development of sanitation combination of relevant skills and expertise
solutions (water specialist, social scientist, ecologist,
– Water for productive use: reuse of treated engineer, etc.). Appropriate training and
water for irrigation purposes, increased capacity building, as well as public education
water supply through rainwater harvesting and awareness, are key factors to a successful
We will build our actions on the existing project.
knowledge and expertise of local 1
ur “Water Positive Impact” methodology was developed
O
communities. with the support of an external party and reviewed by
the Swiss Development Agency. Methodologies were
developed to calculate benefits of 6 projects (Water-
We will conduct public education and Efficient Cultivation Techniques, Water-Efficient Irrigation,
awareness programs and provide capacity WASH, Restoration of Natural Habitat, Reforestation,
Groundwater Recharge).
building and appropriate training to key 2
Methodology developed together with IUCN. The
stakeholders. methodology has been piloted in several countries
(France, Canada, Costa Rica, Indonesia, Sri Lanka).

26 27
People & Communities

Helping people thrive

Our ambition Our targets
We will further develop and deploy affordable By 2030, we want to help 75 million people
housing solutions, targeting at the base of live better lives through our affordable
the social pyramid. housing solutions, our inclusive business
initiatives and our social investments.
We will provide inclusive business models,
education and health programs to support We want to work with others to fight bribery
local communities’ economic and social and corruption in all the high-risk countries
development. where we operate.
We will take a stand against corruption We want to implement our Sustainable
and bribery. Procurement Initiative in all the countries we
operate in.
We will promote and deploy responsible and
sustainable business practices throughout We want to promote equality and diversity
our value chain. In particular, we will act for at LafargeHolcim. We want to achieve a
the universal respect of human rights. minimum of 30% gender diversity at all
management levels around our business
We will champion diversity in our sector.
by 2030.
We put health and safety at the center of
By 2030, we want to achieve a zero fatality
everything we do. Health and safety is our
target, a Lost Time Injury Frequency Rate of
overarching value.
0.2, a 50% reduction in Total Injury Frequency
Rate (vs 2015), and have an occupational
disease rate of 0.1.

28 29
People & Communities

Our agenda for action – Solutions for the distribution of building – Building on existing programs for HIV and Human Rights
materials in small quantities for areas that malaria and providing health clinics or We will roll out our Human Rights program to
Helping people thrive, enhancing
are hard to reach through standard services to surrounding communities in all countries.
wealth and local economy methods of delivery developing countries
We will further use the Freedom House and
We will enhance quality of life for 25 million We will develop our social initiatives through
Inclusive business models UN Human Development indices to help us
beneficiaries through our affordable housing stakeholder engagement programs that build
We will develop inclusive business models proceed to a global assessment of the
projects and 50 million beneficiaries through on existing methodologies based on the
that provide sustainable solutions to critical countries in which we operate.
our inclusive business models and social AA1000 standard.
social issues.
investments. We will conduct impact assessments by
Practically, we will: Fight against corruption and bribery corporate teams – in coordination with the
Affordable housing solutions
– Further deploy initiatives that improve the We will participate in and/or lead collective local team – for high-risk countries. Self-
Due to our expertise, our business can make
living conditions of low-income action initiatives to fight bribery and assessments conducted by local teams will be
the most significant contribution to society in
communities while extending access to our corruption in high-risk countries where we deployed in low-risk countries. Progress
the areas of shelter and livelihood.
products, services and solutions in ways operate. Collective action is defined as a against action plans will be consistently
In response to the enormous challenge of that create mutual value – such as our collaborative and sustained approach by followed up and reported.
providing the world’s population with decent affordable sanitation initiative in India like-minded organizations to address Acting across our supply chain
and sustainable housing at an affordable – Further promote local micro-enterprise systemic corruption in a specific geography We will lead in the promotion of responsible
cost, we have developed a unique portfolio of development to market products and or sector. Examples include integrity pacts, business practices throughout the entire
affordable housing solutions across a range services that relate to our core business standard-setting initiatives, declarations and value chain. Through our Sustainable
of geographies3. This business program or to supply our facilities with goods and joint activities. Procurement Initiative, sustainable practices
generates positive returns – it is being and services such as community-based waste
Practically, we will: will be promoted towards suppliers all over
will continue to be deployed through our collection and segregation activities
– Inform, consult and coordinate between the world.
marketing and sales teams. or biomass production activities by
local farmers local management and corporate teams to Championing diversity
Practically: develop a supported and coherent
– We will provide affordable housing Social investments collective action We will build our company’s success with the
solutions to many through the Our social investments aim to improve best talent. We believe that diversity of
people’s quality of life in a sustainable way – Join existing collectives or create new
implementation of business programs and thought is key to seizing the right business
by building capacity, improving health, groups of like-minded companies in a
dedicated teams in countries Sales & opportunities and delivering sustainable
providing seed capital for activities that are particular geography
Marketing departments top performance.
then self-sustaining. – Collectively tackle certain common interest
– We will launch joint ventures with We will create a gender-balanced and
issues (such as extortion by government
experienced partners We will focus our social investments on the inclusive work environment where diverse
officials for services common to multiple
– We will further deploy our affordable needs of our communities. We will design and companies – e.g. licensing, permits, police talent can thrive and contribute to superior
housing offer around 4 pillars: implement them in close collaboration with services, customs clearance) business results. We will achieve a minimum
–M
icrofinance solutions to help people in community stakeholders – building upon our of 30% gender diversity at all management
emerging markets fund the construction, core business knowledge and assets. These levels by 2030 by developing a regional
renovation or extension of their homes include: approach to diversity and inclusion.
–T
echnical assistance and labor training – Micro-enterprise development based on
to ensure good-quality construction, community assets and needs
which will also increase employability – Provision of access to basic infrastructure in
of trained workers collaboration with governments and/or
–N
ew building materials (such as Durabric, international organizations and foundations
a new type of low-carbon clay brick that
contributes to reduce construction cost) 3
s at end 2015, 24 countries of operation have affordable
A
housing projects in place or under assessment, and the
program has benefited an estimated 500,000 people since
its inception.

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People & Communities

This approach will guide a consistent process Keeping people safe Our pathway to 2030
of action planning at local level that will take
upcoming recommendations from the We place health and safety at the center
of everything we do and we conduct our Objective/Metrics Target 2020 Target 2025 Target 2030
LafargeHolcim Women’s Task Force into
account. business with a goal of zero harm. We will
Enhancing local economy and wealth
act to improve the health of employees,
Actions will include: contractors, third parties and communities. Affordable housing – direct beneficiaries 1.5 5 8
– Developing programs with a focus on (million people – cumulative)
women in operations We believe in visible leadership and personal
accountability for Health and Safety at all
– Rolling out of flexibility options Affordable housing – indirect beneficiaries 3.5 10 17
levels and throughout our organization.
(million people – cumulative)
– Global implementation of diversity and
inclusion training at all management levels Practically, we will:
– Maintain a global Health and Safety Social investments and inclusive business 20 35 50
(gender balance awareness and beneficiaries (including health programs)
unconscious bias) Management System designed to
continuously improve our performance and (million people – cumulative)
– Leadership development (mentoring and actively manage risk in our business
sponsorship) Total beneficiaries from our social 25 50 75
– Drive for operational discipline by instilling programs (million people – cumulative)
We will move ahead with gender certification a mindset of safe execution and follow-up
programs, and work with partners to achieve – Communicate openly with all stakeholders Placing health and safety at the center of everything we do
our objectives. By moving ahead on gender on relevant health and safety issues
diversity we will help to develop a culture Fatalities Zero on-site Zero on site Zero on and
of inclusivity at the workplace which will Our advocacy fatalities + 50% off site
also foster improvement in all areas of reduction
We advocate against any discrimination, off site
staff diversity.
for the universal respect for human rights
and for diversity. We fully support and work LTIFR (per million hours worked) < 0.5 < 0.25 < 0.2
in respect of fair competition rules and
practices. We take a visible stand against TIFR (per million hours worked) 30% reduction 40% reduction 50% reduction
corruption and bribery. We advocate for the vs 2015 vs 2015 vs 2015
development of policies enabling the
outrolling of affordable housing solutions, Road safety Seat belts Vehicle
fitted to all monitoring
thereby contributing to bringing responses
company and systems fitted
to housing, well-being and safety needs.
contractor to all company
vehicles and contractor
+ Defensive vehicles
driving operating in
training for high-risk areas
50% of all + Defensive
employees & driver training
contractors for 100% of
employees &
contractors

Occupational disease rate (per 2 million – < 0.5 < 0.1

hours worked)

Total Hearing Shift Rate – < 1.0 < 0.1

32 33
People & Communities
Other sustainability targets

Our pathway to 2030 Objective/Metrics Target 2020 Target 2025 Target 2030

Manual Handling of cement bags by 20% 50% 100% Environmental Management System ISO 14001 100% EMS Integrated
employees & contractors reduction reduction reduction implemented in all business lines certified EMS in all other certified
vs 2015 vs 2015 vs 2015 in all cement production management
and geocycle sites which system
Health Assessment (risk based). All employees Employees &
plants conforms commended
undergo contractors
with main (Env, Quality,
assessment undergo 40% EMS
requirements H&S, Energy,
assessment in all other
of ISO14001 CSR)
production
Annual Audiometric Testing All employees sites which
(with STS Analysis) conforms
with main
Annual Industrial Hygiene Sampling All high-
requirements
exposure
of ISO14001
risks
assessed Audits on environmental compliance Audits
annually and performance (second party or conducted on
third-party audits) all production
Crystalline Silica Testing to determine risk All quarry &
sites once
cement sites
every 5 year
complete
annual (compliance
testing to legal
requirements
External Health Engagement > 5% of CSR > 10% of CSR > 15% of CSR and other
beneficiaries beneficiaries beneficiaries commitments
We value differences Average specific emissions of Dust, NOx -15% -20% -25%
and SO2 vs 2014 [g/t cem]
30% gender diversity in all management 20% 30%
levels by 2030 (2015 – 10%) Fugitive dust emissions Fugitive Dust Fugitive Dust
Management Management
Promotion of clean & fair business practices
Plan Plan
Leadership role/participation in collective 3 high-risk 10 high-risk All high-risk implemented implemented
action initiatives against bribery & corruption countries countries countries at all cement at all sites
plants
Fully deployed
by 2020 Stakeholder engagement plan in place Cement Cement Cement
at site level plants: 80% plants: 100% plants: 100%
Sustainable procurement initiative 80% of Top 60% A&C: 40% at A&C: 60% at A&C: 80% at
high-risk spend Tier 2 cluster level cluster level cluster level
active suppliers
suppliers assessed
assessed

34 35
For internal use only.

LafargeHolcim Ltd
Zürcherstrasse 156
CH-8645 Jona/Switzerland
[Link]/2030-Plan
Phone +41 58 858 58 58

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