LEADER IN A SUSTAINABLE WORLD · Essential in construction, cement is part of everyday life....

LEADER IN ASUSTAINABLE

WORLD

AT THE ORIGINExtracting from the earth to shape matter

Cement: a universal, modern materialConcrete: meeting the highest standardsAggregates: from stones to buildingsGypsum, a recyclable material offering comfort without compromising on style Research and development, driving innovationWorking alongside architects to design the buildings of the future

A SOLID COMMITMENT Combining performance and responsibility

Practical measures to protect the environmentDialogue with communitiesHealth and solidarity are primary concerns for the Group

HIGH PERFORMANCEEveryone at the highest level

People: stakeholders in performanceBe ready to take advantage of growthCorporate governance in line with our values

04

08101214

16

18

20

24

2628

30

343638

PA G E 0 2 | L A FA R G E

Photo credits. All rights reserved Médiathèque Lafarge, except when indicatedotherwise. Andreas Keller - Architects : Kauffmann Theilig & Partner (p. 15).Cédric Arnold - Rea (p. 14). Daniel Jamme - Photothèque Eiffage - Architect:Norman Foster (p. 02). Diego Giudice (pp. 11, 17). Éric Tourneret (p. 12). ÉricTourneret - Architects: Doyelle & Lavigne Charles - Light designer: KersaléYann (pp. 01, 40). Éric Tourneret - Architects: Le Corbusier, José Oubrerie(p. 18). Garth Dale - Architects: Scott Wilson Advanced Technology Group (p. 11). Gérard Uferas - Rapho (p. 02). Hamilton De Oliveira - Rea (pp. 10,28). Ignus Gerber (pp. 09, 10, 13, 14, 17, 19, 25, 27, 34). Jean-Phil ppeMesguen (pp. 02, 04). Marc Mimram Architect (p. 18). Mikolaj Katus (p. 09).Paul McMullin - Constructionphotography.com (pp. 2, 12, 30, 35). OlivierCoulange (p. 36). See Zisiang (p. 22). Serge Henri (pp. 17, 24). Veit Müller- Architects: S & P Heinze Gesellschaft (p. 15). Vincent Rackelboom (p. 39).

Design and production: Group Communications Management / Printedby: E-GRAPHICS.

Printed on paper made from wood from sustainably grown trees.

Cover illustraion: Normandy Bridge, France.Above, from left to right: the Millau Viaduct, France; kiln at the Cauldon cement plant, United Kingdom.

ringing matter to life is the extraordinary challenge facing our activities: extractingmineral resources from the earth to transform them into essential components forbuilding houses, roads, bridges, schools and hospitals. From the heart of the earthto the heart of everyday life, our know-how contributes to the development of localcommunites in all the countries in which we are established. Lafarge has earned its position as world leader by practicing its trades whilerespecting the core values – integrity, responsibility, ethics, safety, courage –inherent to its Principles of Action for over thirty years now. Qualities such as theseguide our actions and turn the social and environmental stakes into the key leversof our performance: individual development, diversity of expertise, on-going search

for progress, sharing success and promoting good practices. In partnership withcivil engineers, craftsmen, building contractors and architects, the Group relies ona strong capacity for innovation in order to create new materials with unprecedentedmechanical, functional and aesthetic properties, and also plays a key role indiscussions regarding the future of construction. By encouraging the emergence of eco-friendly construction methods, and by carryingout its activities while respecting the environment, people and other cultures, Lafargehas adopted a responsible approach towards contributing to a sustainable world.

L A FA R G E | PA G E 0 3

B

Lafarge has earned its position as world leader in building materials by practicing its trades while respecting core values: integrity, responsibility, ethics,

safety, courage, high standards…

BRUNO LAFONTChairman and CEO of Lafarge

BRUNO LAFONT

L A FA R G E | PA G E 0 5PA G E 0 4 | L A FA R G E

AT THE ORIGIN


A long-term visionFor the fifth consecutive year, Lafarge features

on the Global 100 international list of the

100 multinational corporations most com-

mitted to sustainable development. For

Lafarge, the challenges of perennial growth

go hand in hand with the principles of sus-

tainable development. What is good for the

company must also be good for people and

their environment. Lafarge's business

therefore meets a dual goal: creating added

value for customers and inventing more

socially responsible lifestyles for the future

of the planet.

Guided by valuesIntegrity, responsibility, ethics, courage, respect and high standards are the many val-

ues developed by Lafarge. Limiting the use

of natural resources, saving energy,

respecting the diversity of knowledge and

local culture, sharing success and encour-

aging good practices... All these are Group

priorities on a daily basis.

Balanced growthAs the top manufacturer of building materials, Lafarge plays a lead-

ing role in each of its business lines: Cement, Aggregates, Concrete

and Gypsum. In every world region, its performance is based on

well-structured businesses, a high level of expertise and modern,

ethical management. While consolidating its position on developed

markets, the Group has managed to successfully integrate its busi-

ness into the markets of newly-emerging economies and continues

to increase its industrial capacities. The Group’s business lines,

evenly present throughout the world, make it ideally placed to

seize growth opportunities wherever they might emerge.

Shaping everyday surroundingsIn partnership with civil engineers, building contractors, craftsmenand architects, Lafarge helps to shape the everyday surroundings

of the communities in which it works. New materials from the

Lafarge research center are pushing the frontiers of technology,

allowing more innovative architectural projects to be realized

and meeting the new demands of sustainable construction.

Inspired by this on-going contact with the main participants in

the sector, Lafarge is a key player in studies on the urbanism and

construction of the future.

For over a century and a half, Lafarge, the world number one in building materials, has been helping to shape the everyday surroundings of millions of men and women. Throughout the world, the Group carries out its businesswith the same high standards and the same quality of expertise, respecting people and the environment.

EGYPTA cement plant’s quarry, Cairo.

AT THE ORIGIN

Extracting from the earth to shape matter


Cem

ent

Der

ived

fro

m t

he L

atin

cæ

men

tum

, m

eani

ng “

unhe

wn

ston

e”. U

sed

in m

ason

ry,

it is

als

o an

ess

enti

al in

gred

ient

of

conc

rete

.

Bre

akw

ater

bui

lt t

o pr

otec

t th

e H

assa

n II

Mos

que,

in C

asab

lanc

a, M

oroc

co.

A high level of expertiseFounded in 1833, Lafarge has built up cutting-edgeexpertise in the cement production business. Its unique knowledge of the production process is used throughout the world, thanks to thedeployment of common tools that encourageknowledge-sharing and performance analysis. All these assets improve plant reliability, help controlmaintenance costs and reduce energy consumption.

Cement plant, Teil, France (top). Cement plant, Cairo, Egypt (bottom).

50,000 employees and 166 production sites across 50 countries.

Essential in construction, cement is part of everyday life. Lafarge, number oneworldwide in cement, is developing its production capacities while respecting the environment and local communities.

Cement: a universal, modern material

A combined effortA cement plant requires a high level of integra-

tion into the local social and economic climate.

Installing a plant involves an average invest-

ment of €150 million and the plant itself will

be active for decades to come.

For Lafarge, the success of this installation is

dependent on listening to all the stakeholders:

the local authorities, associations, residents,

entrepreneurs and local craftsmen. A socially

and environmentally responsible approach,

involving dialogue and consultation with local

Various usesThe Cement Business Line produces ranges of

cements, hydraulic binders and lime for con-

struction and renovation. Cement is also one

of the main ingredients of concrete. Cement

production is Lafarge’s longest-standing field

of activity. The Group’s policy has long been

to increase its cement production capacities,

particularly in emerging countries. Develop-

ments over recent years to improve perform-

ance have thus enabled the Group to construct

plants more quickly and professionally.

communities, goes hand in hand with the instal-

lation and use of production sites. To guarantee

sustainable development, Lafarge implements

environmental good practices, such as the use

of alternative fuels, which reduces the volume

of CO2 emissions.

Physicochemical transformation and CO2emissionsAlthough the firstcement was producedduring Antiquity, the current material isthe result of a highlysophisticated industrialprocess. Today’s cementwas discovered in the 19th century and is made up of fourcomponents: limestone,silica, alumina and iron oxide. The mixture

is heated to a very high temperature (1,450 °C) to bring about a physicochemicalreaction known as “clinkerization”. It isthis process that is at the origin of most of the CO2 emissions releasedby cement production.

AT THE ORIGIN

HIGH TEMPERATURE Cement manufacturingrequires the raw material to be heated to almost1,500 °C.


with close attention to customer expectations. It

is opening up a new era in concrete production

history, while at the same time meeting the most

cutting-edge architectural requirements. As a pio-

neer of innovation and research in building mate-

rials, the Group offers multiple solutions, from

traditional to ultra-high performance concrete.

Recyclable, extremely resistant and possessing

unrivalled thermal inertia properties, concrete is

today seen as a material looking to the future and

to sustainable development.

Unique know-how The manufacturing of concrete, with its precise

composition and very short shelf-life, requires

irreproachable logistics. Installed near construc-

tion sites, concrete plants must continually adapt

the pace of their production to meet the needs

of their customers. The broad range of concrete

varieties available can be tailored in composi-

tion to meet specific requirements in terms of

robustness, resistance, durability, attractiveness

of appearance or setting time. There are over

500 different formulas. From traditional to tailor-

made concrete, the material can be adapted to

suit each project.

A pioneer of innovation Due to its long experience, Lafarge has acquired

a unique mastery of concrete and its properties.

Its capacity for innovation, through the creation

of completely new properties, goes hand in hand

Transporting concrete: a key stage in logisticsConcrete is a fresh product which must bedelivered to the site within two hours of preparation. It requires quick transportation to prevent any alteration to its properties. Onceprepared, the concrete is immediately loaded intoa special truck with a drum which rotatescontinuously to keep the mix homogeneous. From the production plant to the construction site,speed also depends on precise management of the process: delivery by drum truck requiresmeticulous logistics! From the moment the itinerary is known up to the delivery of theconcrete at its destination within a strict deadline.

Delivering concrete by truck, United States (top right).Pouring a screed with the pioneering concreteExtensia®, L’Isle-d’Abeau, France (bottom right).

Maximizing expertiseIn emerging markets, Lafarge’s expertise is a major

advantage. Indeed, market players and the local

authorities favor companies that provide servic-

es for the whole logistics supply chain, from the

extraction of raw materials right up to the deliv-

ery of ready-to-use concrete. Moreover, the inter-

national standards applied by Lafarge, even

in regions where environmental legislation is

still very primitive, respond to the current con-

cerns expressed in many countries about the

future of our planet.

Extensia®

Designed for largeindustrial and commercialsurfaces, Extensia®

allows large slabs to becreated without joints

(400 m2, compared to 25 m2, with a standardconcrete) with an optimaldrying time.

Chronolia®

Meeting a realtechnological challenge in terms of timing control,Chronolia® is a concretewhich develops extremelyhigh resistance soon after

pouring and may be removed from the formafter just four hours,compared to the twelve to twenty hours normallyrequired.

Agilia®

With its remarkablefluidity, Agilia® was thefirst self-compacting, self-leveling concrete inthe world. It compacts

without the need forvibration, eliminating thistiresome chore and theassociated noise nuisancefrom construction sites.

Ductal®

Ductal®, an exceptionallythin concrete reinforcedwith fibers, offerscompressive resistance six to eight times greater

than that of traditionalconcretes. Its metal fibers give it a highductility, absorbingextreme stresses.

Artevia®

The Artevia® range of decorative concretes for outdoor application is available in a widechoice of colors and

surface finishes. They adapt easily tocomplex shapes, are quick to apply andsimple to maintain.

The Aggregates & Concrete Business Linehas 26,000 employeesand 1,945 sites across 40 countries.

The world’s second most heavily consumed product, after water, concrete is a composite material, made up of a mixture of water, aggregates and cement. Its properties vary according to the proportions of the components used.

Concrete, meeting the highest standards

AT THE ORIGIN

CHILETechnician near a conveyorbelt at the concrete plant, Lo Espejo.

Concr

ete

Con

cret

e is

a b

uild

ing

mat

eria

l mad

e by

mix

ing

cem

ent,

agg

rega

tes

and

wat

er;

it m

ay a

lso

incl

ude

addi

tive

s an

d ad

mix

ture

s. W

hen

appl

ied

on s

ite

or in

a p

lant

, th

e m

ix is

mal

leab

le

and

it c

an t

here

fore

ada

pt t

o a

wid

e va

riet

y of

sha

pes

befo

re g

radu

ally

har

deni

ng t

o fo

rm a

mon

olit

h.

Ultra-high performance concretes

The

Spin

nake

r Tow

er, d

esig

ned

by S

cott

Wils

on A

dvan

ced

Tech

nolo

gy G

roup

, Por

tsm

outh

,Uni

ted

Kin

gdom

.


Aggre

gat

esP

iece

s of

roc

k us

ed in

the

pro

duct

ion

of m

orta

r an

d co

ncre

te a

nd

in t

he c

onst

ruct

ion

of r

oads

and

rai

lway

s.

they can be used to manufacture concrete.

Together with bitumen, they form asphalt, used

for bridges or to cover sports grounds. Available

underground in numerous parts of the world,

aggregates are extracted near construction sites,

to limit transportation.

Rehabilitating quarriesTo protect the environment, Lafarge has diver-

sified its sources of raw materials and types of

mineral deposit (terrestrial, alluvial, marine, vol-

canic, recycled). Any planned quarry is subject

to an ecological impact study and to consulta-

All types of infrastructureThe pieces of rock may be natural (sand, gravel)

or may be obtained by crushing natural rock:

they are then known as aggregates. Recycled

aggregates are obtained by re-using materials

from buildings, highways and various industries.

In France, one million tons of aggregates are con-

sumed every day in the production of different

types of infrastructure (roads, bridges, hospi-

tals, housing, schools, etc.). There are different

types of aggregates for different uses.

Unprocessed, they are used as railway ballast.

When mixed with a binder, they are used to make

up various building materials. Mixed with cement,

Waterway transport, an exemplary solutionThe motorway network surrounding Wakefield, in the UK, can breathe more easily. Since 2001,Lafarge has saved 25,000 truck journeys a year after carrying out work on inland waterways in collaboration with the British government andlocal authorities. A single water-borne convoy of 4,500 tons is equivalent to 180, 25-ton trucks.This form of transportation is particularly suitable for the product, as once excavated, aggregates are transported directly to the crushing plant.Transportation is carried out in a way that limitsenvironmental nuisance as much as possible, at the same time as improving the safety of facilities.

Transporting aggregates by barge, Paris, France (top right). Sand quarry, Caversham, United Kingdom (bottom right).

tion with local partners (local authorities, elect-

ed officials, inhabitants and environmental organ-

izations). The Group has also acquired valuable

experience in the rehabilitation of former extrac-

tion sites, transforming quarries into natural habi-

tats where biodiversity is protected. Ecological

rehabilitation also involves restoring the social

and ecological character of the quarried land once

operations are at an end. This know-how calls

upon competences that the Group has been devel-

oping for over 30 years, as part of a network of

agronomists, geologists, lawyers, and environ-

mental and land resource planners.

Carried along by the growth of the construction sector, the use of raw materials from rock has progressed rapidly. Lafarge, in consultation

with local inhabitants,undertakes to minimizethe impact of each newquarry, in terms oftransportation,

environment, etc. This process of collaboration requiresconsultation, respect,sustainability and, of course, rehabilitationonce operations arecomplete.

Close dialogue with local communities

Aggregates, from stones to buildings

AT THE ORIGIN

On the French marketalone, the production of aggregates isestimated at 400 milliontons, i.e. 7 tons perinhabitant.

PROCESSINGSome categories of aggregates have to be put through extra processes (washing, cyclone separation and scrubbing) chiefly to render their use more efficient.

Hig

hway

, M

oroc

co.

POLYMORPHOUS MATERIALA structure made from Lafargeplasterboards for the InternationalTrade Fair, Frankfurt, Germany.


Gypsu

mIn

fini

tely

rec

ycla

ble,

gyp

sum

has

por

ous

prop

erti

es t

hat

help

it r

egul

ate

ambi

ent

hum

idit

y.

It is

use

d in

con

junc

tion

wit

h th

erm

al a

nd a

cous

tic

insu

lati

ng m

ater

ials

to

cons

truc

t pa

rtit

ions

.

A wide range of products To optimize the use of this environmentally-

friendly material, the Group, through its research

activities, is striving to expand the properties

of its products: increased fire or water resist-

ance, improved quality for increased acoustic

comfort, easier application and use, etc. Synia®

plasterboard, with its four tapered edges,

requires less in terms of joint coatings, facili-

tates application and saves precious time on site.

Prégymax® is a plasterboard with a thermal-

acoustic layer for optimal insulation. Lafarge has

even designed a damp-resistant plasterboard.

Completely recyclableObtained from natural gypsum, this material

is completely recyclable and may be used in

the form of a compound or plasterboard. When

mixed with water, the compound sets and hard-

ens. This material is widely used for interior

work (finishing coatings, dry partitions and lin-

ers). Plasterboard and gypsum blocks can have

several uses: from structural work to interior

finishing (decoration and interior layout), they

offer numerous possibilities both for new con-

struction and for renovation.

Synia®

The Synia® solution wasdeveloped by Lafarge in response to a challengewhich had not been dealt with previously:making installation easier and reducing on-siteworking time whileimproving the appearance

At the forefront of customer relationsCustomer satisfaction is the driver of constantinnovation. The Gypsum Business Line was the firstto listen to customers from different user groups by means of a structured questionnaire calledTMAY (Tell Me About You). As a result, the Groupwas able to improve the quality of its products by responding to customer needs in terms of finishor ease of application. Based in Avignon (France), the Technical Development Centre (CDT - Centrede Développement Technique) is central to thequality policy of the business line. A unique tool inEurope, its international network of experts work to find new responses to the needs of builders. The CDT provides the main ideas that inspire andunderpin the research and development activitiesof the Gypsum Business Line.

Quality control of rolls of cardboard (top right);checking that the plasterboard is asperity-free on the production line before cutting (bottom right),Palatka, United States.

of plasterboard ceilings.This revolution was madepossible by a stroke ofgenius. The Synia®

plasterboard has fourtapered edges and may befixed to any type of beam.Installation is simplified, and sealing the jointsbetween sheets is madeeasier by the existence of an even gap – to deliver a perfect finish!

Exemplary projectsWhen constructing the Harbin University library

in China, the architect opted for the Exsound

Acoustic Plasterboard system to create a perfect-

ly soundproof space, conducive to study. The

acoustic properties and attractive appearance of

Lafarge plasterboard were also called on in the

construction of the famous Ibirapuera auditorium

in São Paulo, Brazil.

An ultra-environmentally-friendly material, gypsum can be molded to fit the design and finishing needs of any interior architecture project. Thermal and acoustic insulation, safety, ease of application,flexibility in terms of appearance, ease of recycling... The Group is working to develop these qualities even further.

Gypsum, a recyclable materialoffering comfort without compromising on style

AT THE ORIGIN

8,000 employees and 76 industrial sitesin 29 countries.

Con

gres

s H

all,

Nur

embe

rg,

built

by

LaFo

rm, G

erm

any.


Every year, Lafarge spends € 170 million on research. More than 1,300 employees throughout the world, scientists, engineers, and technicians,work on developing the building materials of the future.

ful of mankind and the environment. Half of

Lafarge’s top-priority research is based on crite-

ria that seek to improve their properties in the

interest of sustainable development.

Optimal materialsIn-depth knowledge of the materials, and of con-

crete in particular, offers a promising outlook for

the future. In years to come, concretes may be

able to “heal” cracks with the help of only rainwa-

ter, or they may be able to change color accord-

Exploring the heart of nano-matterLafarge’s research has resulted in new genera-

tion of materials. The traditional empirical

approach to developing them has now become

a science, thanks to the rise in nanotechnology,

which enables the heart of matter to be thorough-

ly explored. Resistance, ductility, durabilty, sus-

tainability… the characteristics of these high-

performance products improve the appearance

of buildings, offering exceptional mechanical

resistance and ensuring better thermal and

acoustic insulation. They are also more respect-

ing to light intensity. By optimizing the thermal

inertia of the material, it is possible to envisage

partitions which will have an air-conditioning func-

tion (heating in winter and cooling in summer).

On construction sites, the future lies in concretes

with an almost instantaneous setting time, which

can be triggered at a given moment (by an elec-

trical impulse, for example). And this is just the

beginning... In tandem with research being con-

ducted on concrete, other paths are being explored

to improve the properties of cement, which is one

of its prime components. Replacing some of the

clinker notably opens up new possibilities for

limiting CO2 emissions considerably. The Group

also invests substantially in research on gypsum.

Characteristics such as its insulation properties,

durability, recyclability and fire-resistance make

plasterboard high-technology solutions, perfect-

ly in tune with the challenges of sustainable con-

struction. After three years of research and numer-

ous tests, Lafarge has just put the finishing touches

to the first damp-resistant plasterboard.

Research and development, driving innovation

AT THE ORIGIN

RESEARCH CENTERSChecking the spread ng properties ofconcrete (above). Pilot site based onthe innovative concrete Chronolia®,sclerometer test (top right). Product

sample testing, in the laboratory of acement plant (right).

Concrete, a material withendless potentialThe durability andmechanical resistance of concrete rely on the hardening propertiesof cement. Cement bindsaggregates disposed in various configurationsand, together withadmixtures, contributes to determining the variousproperties of concrete.This is why Lafarge

is researching into thepossibility of producingcement based on differentchemistry to reduce CO2emissions through usingless limestone and kilningat lower temperatures.

In L’Isle-d’Abeau, nearLyon (France),

the Lafarge ResearchCenter is the toplaboratory in the

world dedicated toconstruction materials.


one hand, remain receptive to the expectations

and wishes of its clients and, on the other,

become involved in the debate on the future of

architecture, social, urban and environmental

challenges of tomorrow, and the evolution of

construction methods. Parallel to this, Lafarge

is a member of World Business Council for Sus-

tainable Development (WBCSD), which brings

together numerous protagonists of the indus-

trial world, including some of biggest names in

the construction sector. The group also colla-

Emblematic creationsLe Corbusier, taking up the challenge. With

Agilia®, the concrete of today pays tribute to the

visionary architect. Le Corbusier’s posthumous

work, the church of Saint-Pierre in Firminy, France,

features a cone-shaped roof, a complex structure

that owes its existence to the extreme fluidity of

the self-compacting concrete Agilia®.

A bridge to the future. Designed by architect

Rudy Ricciotti and engineer Romain Ricciotti in

the Gorges de l'Hérault in France, a new footbridge

allows pedestrians to access the Pont du Diable,

sheltered from the noise and dangers of the road.

Built in Ductal®, the bridge is 70 meters long and

1.80 meters in static height. It is the first construc-

tion of its type in Europe, after the Peace Bridge

in Seoul (South Korea).

Working alongside large-scale projectsLafarge has set up a constructive, mutually bene-

ficial dialogue with the world of construction

(civil engineers, design agencies, architects…).

Due to this collaboration, the Group can, on the

reconsider and reinventthe role of bridges. The rooftop bridge inShanghai, the inhabitedbridge in Moscow, the New York receptionstructure (right), the landscape bridge in La Courneuve: eachof these projects, whichmake up the “LivingBridges” study, invite usto look at infrastructurenot as a necessary evilbut as commonproperty, a place forpeople to come togetherin the heart of the city.

borated on the Hypergreen Tower project, a buil-

ding designed by the architect Jacques Ferrier

using eco-friendly materials and renewable

energy sources, so as to limit its impact on the

environment.

The development of new materials inspires reflection on the great challenges of tomorrow’s urbanism and architecture.

In an increasingly denseurban universe, theissue of flows and of theorganization of urbanmobility is promptingarchitects to rethinkcities and to give somekind of meaning to eachelement shaping a city.Ponts et Chausséesarchitect, MarcMimram, is workingwith Lafarge to

“Living Bridges”: reinventing cities

Working alongside architects to design the buildings of the future

With global resources growing ever more limited, the challenges facing constructionare redefining the sector’s future. Scientists, entrepreneurs, architects and buildingcontractors are being asked to pool their know-how and experience.

CHURCH OF SAINT-PIERREForty years after Le Corbusier’sdeath, the concrete cone on the church of Saint-Pierresoars skyward in Firminy(Loire), France.

AT THE ORIGIN

UNITED STATESTower block n Atlanta, Georgia.



A SOLIDCOM MITMENT

REHABILITATIONPlanting shrubs in theSimpang Pulai quarry in Ipoh, Malaysia.


2012 ObjectivesListed as one of the 100 multinational corpo-rations most committed to sustainable devel-opment, Lafarge has developed a strategic

plan, called “2012 Objectives”, to promote

responsible development with respect for

the environment. This plan sets out costed

objectives for significant progress by 2012.

Reducing greenhouse gas emissions by 20%

compared to 1990 levels by 2010, encourag-

ing biodiversity through systematic quarry

rehabilitation, ensuring employee health

and safety and increasing initiatives to ben-

efit local communities are just a few of these

objectives. It is an ambitious but necessary

plan, because the commitments to sustain-

able construction made by key players in

the sector today will make all the difference

tomorrow.

Limiting the environmental impactLafarge can only be guaranteed enduring performance by taking intoaccount economic, social and environmental issues. Long term perform-

ance goes hand in hand with protecting the planet. For years now,

the Group has committed to minimizing its ecological impact: sav-

ing water and raw materials, limiting waste and greenhouse gas

emissions and protecting biodiversity are just a few of the goals

to which Lafarge is committed.

Respect for peopleLafarge strives not only to develop effective policies for protecting theenvironment and employee health and safety, but also to be the leader

in terms of social responsibility towards the local communities

affected by its installations. Using volunteer initiatives to help

improve the living conditions of neighboring communities, Lafarge

bases its global economic performance on respect for humanist

values and the principles of sustainable development.

Keen to fix its industrial growth strategy over the long term and to operate in line with the humanistvalues underlining its identity, the Group has set itself ambitious goals in terms of respect for the environment, people andcommunities, as well as supporting local economic development.

Lafarge is moving forward alongside NGOs such as WWF,Care International and Habitat for Humanity,establishing partnerships that reinforce its commitmentsand motivate its approach to excellence.

Combining performance and responsibility

A SOLID COMMITMENT


As a Member of the World Business Council for

Sustainable Development (WBCSD), Lafarge is

involved in the Cement Sustainability Initiative

(CSI), bringing together 18 cement producers

representing over 40% of total world cement pro-

duction, to work on three major commitments:

climate protection, saving natural resources and

ensuring employee health and safety.

Quarries and biodiversityThe use of quarries to extract the raw materials

required to produce building materials has a cer-

tain effect on the environment. Lafarge under-

The fight against global warmingSince 2000, alongside WWF, Lafarge has been

practicing an affirmative policy to reduce its net

emissions per ton of cement produced world-

wide. To that end, the Group has launched sev-

eral eco-industrial research programs. Modifi-

cation of the chemical composition of clinker

(cement’s main ingredient), use of alternative

fuels and recovery of industrial by-products

such as cement additives have led to significant

reductions in CO2 emissions. In early 2009,

Lafarge reached its objective to reduce its

absolute gross CO2 emissions by 10% in indus-

trialzed countries, two years earlier than planned.

takes to protect biodiversity by carrying out an

environmental impact study prior to any new

quarry project and by restoring disused quarries

to recreate natural habitats encouraging the devel-

opment of local flora and fauna. This process is

carried out in partnership with the WWF, world-

renowned for environmental protection.

Industrial ecologyInspired by biological ecosystems, industrial

ecology encourages synergies between the var-

ious industries. In this way, the by-products of

one company are incorporated into the produc-

tion processes of another. This principle has led

the Group to use by-products from other indus-

tries as cement ingredients, saving on the use

of clinker, to preserve natural limestone and sil-

ica resources. Furthermore, Lafarge is working

to make its production processes more efficient

in terms of energy and natural resources, to

reduce its industrial footprint.

Alternative fuelsSeeking to limit its consumption of fossil fuels,

Lafarge makes use of alternative fuels on its pro-

duction sites and adds value to agricultural and

industrial waste by using it as a source of energy.

This practice has led to the implementation of

Clean Development Mechanisms (CDM) projects.

In Malaysia, palm kernel shells have replaced

imported coal, helping to prevent the emission

of 60,000 tons of CO2 each year. In Morocco, the

Tétouan wind farm provides 50% of the electric-

ity required by one of the main cement plants,

reducing greenhouse gas emissions by 30,000

tons per year.

RecyclabilityLafarge, keen to protect the environment,

encourages recycling at each stage in the life-

cycle of its products. Unused concrete residues

from drum trucks may be molded to become,

for example, sign blocks, which are very useful

on site. On demolition sites, concrete blocks can,

once any metal has been removed, be crushed to

produce a type of aggregate ideal for road beds.

Plasterboard is infinitely recyclable thanks to

re-processing centers. The components are dried,

ground, then re-inserted into the production

line to make new plasterboard. All these bene-

fits help reduce the use of natural resources.

Above and beyond compliance with current standards, Lafarge considers respect for the environment to be an imperative, requiring it to prioritize reducing fossil fuel consumption.

Practical measures to protect the environment

A SOLID COMMITMENT

ECOSYSTEMThe development of replacement fuels

creates new businesses, such aseucalyptus farming here in Kenya (left)

Palm kernel shells, used as areplacement fuel in Malaysia (above)

Wind farm in Tétouan, Morocco (right)

In early 2009, Lafarge reached its

objective of reducingits absolute gross CO2emissions by 10% per

ton of cement in industrialized

countries.


Similarly, the Group is always keen to work with

local NGOs to offer structural responses that

best fit local needs: financing health centers in

Indonesia, helping to build a school in Kenya…

These local initiatives are reinforced by inter-

national partnerships with the aim of exchang-

ing viewpoints and expertise, setting up a frame-

work for projects and improving performance.

Lafarge is moving forward alongside WWF, Habitat

for Humanity International and Care International

to develop socially-responsible policies and ini-

tiatives on housing benefit and education as

well as health care and preventive care.

Moving forward togetherThe close proximity of the construction mar-

kets places the Group’s production units at the

heart of local development issues. Lafarge’s

humanist values make it a major contributor to

the improvement of living conditions in local

communities. Lafarge undertakes to encourage

environmental, economic and social develop-

ment on its sites on a daily basis and to work

in close collaboration with local inhabitants.

Constant dialogue with local communities, with

respect for their culture, has been bearing fruit

for several years now. Various training programs

have been funded or run by Lafarge worldwide

to help people find jobs. In India, 1,500 young

women attended an introductory IT course, in

a region where the education and professional

integration of women are infrequent, while

600 young people were trained in masonry

trades, a hands-on scheme that involved build-

ing a village schoolroom. In France, in collabo-

ration with an employment agency, 60 or so

unoccupied houses were renovated and con-

verted into public housing by underprivileged

people, who not only followed a training scheme

but also came out with a diploma.

Lafarge works for the benefit of local communities and the economic development of the area by deploying programs for economic development,health protection and basic rights.

Dialogue with communities

Boosting local economic activityIn Morocco, in 2003-04, then in Jordan, in 2007, the restructuration of Lafarge’s activitiesentailed a reduction of the workforce. To assist the professional reconversion of itsemployees in localities where jobs are hard to find,the Group mounted an ambitious plan to helppeople set up their own businesses.The programs,undertaken jointly with local authorities and unions, included training schemes, an advice and expertise service, assistance withadministrative procedures and financial support.Projects were backed and followed up over a two-year period. In both these regions, the initiative proved hugely successful. It createdseveral hundred jobs and re-energized the localeconomic fabric on a long-term basis.

A SOLID COMMITMENT

INDIAChildren coming out of school, Sonadih.

Thousands of developmentprograms are beingrun with localassociations.

MOROCCOStudent at theMelloussa house for g rls.


Preventing health risksFor several years now the Group has been

involved in HIV prevention and testing pro-

grams, particularly in Sub-Saharan Africa, along-

side specialized doctors and organizations such

as Care International. In addition, Lafarge is a

member of the Global Business Coalition on

HIV/AIDS. In the fight against HIV/AIDS, Lafarge

has been building relationships with local

administrations, NGOs and the medical sector.

Its policy in the fight against HIV is based on

education and prevention (distribution of con-

doms and programs to raise awareness, run by

volunteer peer educators). Lafarge has over

7,000 employees in Sub-Saharan Africa (9% of its

employees). In 2008, 100% of these employees

Constant involvementThe Group stands out for the effort it puts into

helping local populations following natural dis-

asters in regions where it is present. When the

tsunami of December 2004 hit Indonesia and Sri

Lanka as well as the south of India and Thailand,

Lafarge actively contributed to the reconstruc-

tion work. In the summer of 2007, the Group pro-

vided local authorities with significant human

and material resources to fight the fires which

devastated 28,000 hectares of forest in Greece.

Following the Sichuan earthquake in China in May

2008, Lafarge, with support from employees

around the world, was able to build more than

3,000 temporary shelters and to provide

€1.5 million in aid to the local authorities.

received regular information about HIV/AIDS,

75% participated in voluntary, anonymous

screening programs and 2,000 people (employ-

ees, dependents and members of the local com-

munity) benefited from free anti-retroviral treat-

ment. The Group undertakes to extend these

programs to all the emerging countries in which

it is present by 2010.

Health and solidarity are primary concerns for the GroupFollowing its values and the fact that it is present in several different regions of the world, the Group undertakes to guarantee the health and safety of its employees, their families and neighboring communities.

The Group's social responsibility translates into strong commitment to local populations.

A SOLID COMMITMENT

HEALTH AND TRAININGEducational programs in

Bangladesh (above).Mobile clinic at the Sonadih

plant in India (right).

The fight against malariaLafarge has been fighting malaria through one of its majorhealth programs in Sub-Saharan Africa. Malaria is a parasitic disease carried by the Anopheles mosquito.Since 2006, the Group has been waging a vast preventivewar against malaria alongside site employees andneighboring communities in order to contain this epidemic. Action has also been taken in the region to reduce thenumber of serious cases by 50% over two years. In Benin, a medical center was opened in the Onigbolo cement plant:open seven days a week, it admits 400 to 600 patients per month. A control program has also been set up in the Hima cement plant in Kasese in Uganda. It is earmarked for medical monitoring, peer educatortraining and the free-of-charge distribution of mosquito netsimpregnated with insecticide, as well as for the protection of pregnant mothers and their unborn children and for theimprovement of diagnosis and care.


HIGH PER FORMANCE


HIGH PERFORMANCE

A culture of shared results The Group involves all its employees in building collective perform-ance on a daily basis, by optimizing their working structure and

management methods and by offering each employee the oppor-

tunity to develop his or her talents.

Collective performance is sought after by everyone and is based

on a feeling of belonging to the Group, on trust and on formal-

ization of the rules. Its success depends on each individual buy-

ing into the progress initiative and the priorities defined by

Lafarge. Closely associating people with growth is also the aim

of the employee shareholder plan set up by Lafarge. This makes

each employee a fully-fledged stakeholder in the performance of

his production unit. International shareholder plans aim to enable

the largest possible number of Lafarge employees to benefit from

the fruits of growth, throughout the world.

A multi-local development modelLafarge has always operated at both local andglobal levels. Local, because our products

are manufactured on site, to better adapt

to the specifics of the market. Global,

because the coherent policy practiced

across the Group guarantees the success of

long-term development and allows shared

experiences to be built up and stored.

As a result, business development is based

on a multi-local model: in each region or

country, Lafarge adapts its know-how to

the needs of the market and the local social

and economic realities. The diversity of

the Group both strengthens and enriches.

Lafarge makes the most of this diversity

by focusing on the sharing of skills and

resources and by encouraging local initia-

tives, in order to increase reactivity and

efficiency throughout the world.KENYATechnician at the controlpanel of an automatedmachine at the Bamburi Special ProductsLtd plant, Na robi.

Everyone at the highest level

For Lafarge, a company’s employees are its most valuable resource. The Group focuses all its attention on their working conditions and maximizes their skills.


Priority No 1: SafetyThe primary condition for operational excel-

lence is personal safety. At the point at which

its humanist values and performance culture

intersect, Lafarge has set a target of zero acci-

dents. Employee and sub-contractor safety is

a priority. Lafarge, top of the construction and

civil engineering sector in this field, intends

to match the performance of the top industri-

al groups in the world. Lafarge’s safety policy

is based on a systematic method of risk reduc-

tion on the most dangerous tasks. Its applica-

tion is governed by two strong principles: con-

vergence of good practices observed in the

field and the standardization of rules and shar-

ing of clear criteria across all Group sites.

Through education and by changing behavior

at all levels of the Group, a genuine safety cul-

ture can be set up. As a result, several stan-

dards have been developed, notably regarding

People: stakeholders in performanceThe Group’s employees are its most valuable resource. Bettering the working and living conditions of these men and women whileimproving their health, safety and know-how is therefore a top priority.

working at heights, personnel safety equip-

ment and lock out procedures. They are equal-

ly applicable in all the Group’s sites. A global

health program is currently under develop-

ment at Group level and will be fully opera-

tional by 2010.

Maximizing skills Continuous training generates high perform-

ance, allowing developments in the business

to be anticipated and facilitating employee

progress within the company. The experience

of these employees is a valuable asset in terms

of know-how, which Lafarge undertakes to max-

imize by allowing each employee to fulfill their

potential through their career path. Lafarge’s

culture, based on respect for the individual,

promotes employee diversity at all levels of

the Group.

Training sessions are organized for each busi-

ness, function or country, taking into account

To anticipate developments in the business and allow each employee to progress

throughout his or her career, training is a majorpart of the Group’s development.

strong internal growthtrend currently observedwithin the Group. Training is given indecentralized productionfacilities, in plants thatachieve excellence and that can becometraining plants where good practices are implementedcontinuously. A designated instructoroversees operators duringthe plant training phaseand then monitors them after they return to their own plants.

A wide range of skilledpeople – control roomtechnicians, maintenanceinspectors, process technicians,instrumentationtechnicians – ensure plantperformance. Lafarge’starget is the acquisitionand mastery of key skillsworldwide, for all operators,to improve productivity of existing plants, deliver a rapid build-up inproduction for new plantsand keep pace with the

Plant training to teach key skills

its needs in terms of new skills. For each employ-

ee, an individual development plan is drawn up

and reviewed yearly to ensure that skills progress

continually. Visits by certain businesses to plant

training centers as well as experience sharing

between teams of different nationalities, not to

mention the opportunities for mobility available

to employees wanting to work in another coun-

try, also favor the sharing of good practices and

the harmonization of processes.

Developing a culture of excellence Created in 2003, Lafarge University seeks to

make a significant difference to skills develop-

ment. Each training session unites employees of

different nationalities and from diverse horizons,

to encourage knowledge sharing and the devel-

opment of good practices. For example, the “Meet

the Group” seminars, run several times a year

in each of the larger world regions, invites new

Lafarge executives to discover Group values and

culture through an experienced manager.

HIGH PERFORMANCE

ZAMBIAConstruction of the

Chilanga plant.

PERFORMANCEControl room at the

Cauldon cement plant,United Kingdom (above).

Construction of a grindingstation, Chile (right).


A consolidated presence on emerging marketsDemographic and economic growth as well as

rapid urbanization of emerging countries all

contribute to a burgeoning demand for mate-

rials for infrastructure and housing projects.

By developing its activities in emerging coun-

tries, Lafarge is well-placed to seize these oppor-

tunities. As part of its strategy, priority is given

to sustainable growth to consolidate the Group’s

position at local level. The acquisition, in 2008,

of Orascom Cement, top cement producer in

the Middle East and Mediterranean regions, sig-

nificantly reinforced the Group’s position. In

the same year, the Group finalized the purchase

of L&T Concrete Ltd, the Indian leader in ready-

mix concrete, which has 66 plants throughout

the country. Lafarge’s presence in emerging

countries has been further strengthened by sev-

eral acquisitions in Jordan, the Philippines and

China, as well as planned plants in Qatar, Dubai,

Oman, Saudi Arabia and Vietnam.

Due to their demographic growth and rapid urbanization, emerging countries are a major focus of development for the Group.

Be ready to take advantage of growthOver two billion tons of concrete are produced annually on the world market,

80% of which is produced and used in emerging countries. Lafarge is continuing to strengthen its presence in these regions.

A balanced geographical portfolio Lafarge has a well-balanced geographical port-

folio, with a presence in 79 countries, including

both emerging and developed markets. Thanks

to a solid presence in growing markets and the

combined know-how of its teams throughout

the world, the Group is ideally placed to take

advantage of both current and future growth.

In Egypt (left), Pakistan,India and Algeria, themanagement was heavilyinvolved in organizingthese training days, which focused inparticular on safety andperformance objectives.The Lafarge Days are alsoan opportunity tocelebrate the arrival of new employees and to showcase local culture through eventsand exhibitions.

Promoting the Group’svalues, bringing togethernew employees andmanagers, presentingLafarge’s internalorganization: all these areindispensable to thesuccessful integration ofnew Group business units.With this in mind, theLafarge Days were set up.

Lafarge Days, a training and integration program

HIGH PERFORMANCE

GROWTHOrascom Cement

management meeting inCairo, Egypt (above).

Construction of the Tangiersplant, Morocco (right).


An ethical code of conductMore rapid decision-making, management and

organization focused on a results culture: all the

ingredients for excellence have now been brought

together. Lafarge is committed to ranking among

the highest-performing industrial groups in terms

of corporate governance. Its Code of Business

Conduct insists on compliance with legal and

regulatory obligations, including in particular

the rules of competition and measures to pre-

vent corruption and insider trading. In addition,

Lafarge was one of the first groups outside the

United States to be certified Sarbanes-Oxley sec-

tion 404 compliant. This certification is a guar-

antee of the transparency and reliability of the

Group’s reporting processes.

Partnership with stakeholders Lafarge has set up a stakeholder panel, which

meets with the Group Executive Committee once

a year on sustainable development issues. A total-

ly independent body, the panel makes a critical

appraisal of sustainable development initiatives,

helping the Group advance towards greater trans-

parency and higher standards in this area.

Through its vital contribution, the stakeholder

panel influences Group decision-making. The

At Lafarge, corporate governance methods conform to our strong ethical values. Respect, transparency and integrity: these fundamental values are an integral part of the Group’s sustainable development criteria.

Corporate governancein line with our values

advisory panel on biodiversity was created in

2006 to improve the Group's policy on the pro-

tection of ecosystems.

Transparency requirementsEach employee, in addition to complying with

the laws and regulations, must demonstrate his

or her integrity and respect the commitments

undertaken in his or her relationship with cus-

tomers, suppliers, state governments and other

Group partners. He or she must also demonstrate

equal treatment of partners and suppliers, show-

ing preference only in accordance with objec-

tive, transparent criteria. In this way the Group

promotes the deployment of best practices, both

in the field and on a daily basis, to reflect com-

pany management focused on ethical values and

transparency. Moreover, out of concern for trans-

parency, ten of the eighteen members of Lafarge’s

Board of Directors are independent.

RESPONSIBILITYLafarge General Assembly,

Paris, France.

HIGH PERFORMANCE


LEADER IN ASUSTAINABLE

WORLD

Lafarge 61, rue des Belles-Feuilles, BP 40,

75782 Paris Cedex 16, France

Phone: + 33 1 44 34 11 11Fax: + 33 1 44 34 12 00

www.lafarge.com

LA

FA

RG

E|

LE

AD

ER

IN

A S

US

TAIN

AB

LE

WO

RL

D

LEADER IN A SUSTAINABLE WORLD · Essential in construction, cement is part of everyday life....

Documents

Transcript of LEADER IN A SUSTAINABLE WORLD · Essential in construction, cement is part of everyday life....