Human rights issuesin emerging economies:case studies from Italcementi

Italcementi Group 1Benvenuto in Italcementi - 8 settembre 2008 1

EABIS Colloquium 2010

St. Petersburg, 19-21 September 2010

Table of contents

� Our World

� Sustainability at Italcementi Group

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� Human Rights

� Cases

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Table of contents

� Our World

� Sustainability at Italcementi Group

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� Human Rights

� Cases

Sustainability management

� Public commitment through high-level memberships: World Business Council for Sustainable Development, Cement Sustainability Initiative, United Nations Global Compact

� Policy : a set of dedicated Policy, periodically updated

� Governance: SD Department at Corporate level, quarterly SD meeting with CEO and COO, bimonthly SD Steering Committee, country SD Steering Committee

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Committee

� Standard : an increasing number of Group standard, beyond locally enforced legislations

� Monitoring, auditing and reporting : extended, also through third parties

� Disclosure : SD Report, website, investor relations, ....

Table of contents

� Our World

� Sustainability at Italcementi Group

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� Human Rights

� Cases

Which are the SD priorities?

HumanRights

Health and Safety

Not limited to Group’s boundaries but to beupheld within the Group’s sphere ofinfluence

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Environment

Stakeholder engagement

Core business activities : the greatest level of control in affecting environmental, social and governance performance

Supply chain : control is weakened, but the influence is still significant.

Community interaction : social investment, philanthropy activities and engagement can work quite significantly

Public policy & Advocacy : the weakest circle of influence

What is our sphere of influence?

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We have a much stronger power to positively influence the behaviour of suppliers, contractors, customers and other business partners than to change laws or policies

Approach to human rights

� Commitment : the Group is signatory of the UN Global Compact

� Policy : a dedicated Human Rights Policy is being issued

� Management : subsidiaries are receiving specific guidelines on how to assess and prioritise Human Rights Issues

� Audit : a basic check-list to assess potential incidents is distributed to all sites

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� Reporting : incident are accounted, reported and discussed during periodic Country meeting (almost monthly)

� Disclosure : in last SD Report we reported around 200 critical situations in 11 countries

42% of Group EBIT generates from operation in countries of concern for human rights, as identified by the Freedom House.

Further improvement of the management system are ongoing.

Monitored issues

� Risk of child labour in workforce

� Lack of protection of welfare of workers (employees, contractors, subcontractors, suppliers, customers)

� Lack of protection of labour rights

� Risk of discrimination in workforce

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� Insufficient promotion of equal opportunities

Each category is further detailed

Table of contents

� Our World

� Sustainability at Italcementi Group

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� Human Rights

� Cases

Egypt

Major risks :� child labour in the contracted or third party workforce� women issue� discrimination employees/contractors � conditions of workers’ facilities� access to drinking water

Actions:

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Actions:� awareness and training campaigns� hosting facilities for accompanying persons at the entrance of the plant� separated facilities for women� supply of drinking water� progressive renewal of workers’ facilities� free access of contractors to some basic facilities

Critical points:� full understanding from local management and contractors/third parties

Egypt: pictures

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Thailand

Major risks :� child labour in the contracted or third party workforce entering the plant

Actions:� hosting facilities for accompanying persons at the entrance of the plant,

including the headquarters

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Critical points:� full understanding from commercial management and contractors/third

parties

Thailand: pictures

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India

Major risks :� Sanitary issues, due to the high distance from major hospital

Actions:� Improvement of the local hospital, serving also the plant colony and a large

number of surrounding villages

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Critical points:� Support to local doctors

India: pictures

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Thank you

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Thank you