LF Environment Report page plan v14...Our drive to reduce particulate emissions (dust) is a notable...

2010 REPORT

CEM

ENT

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Managing Editors: Steve Carter/Michele Wheatley

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Lafarge Cement UK Ltd: Portland House, Bickenhill Lane, Solihull, Birmingham B37 7BQ, Phone: + 44 (0) 845 812 6400 | www.lafarge.co.uk

03 Introduction

04 Raw materials and waste

05 Energy

06 Air emissions

08 Water

09 Biodiversity / restoration

10 Compliance

11 EMAS data table 2010

12 Group Summary Report

contents

If there is anything you wish to discuss in this Report, please contact us at: [email protected]

Lafarge | 2010 | Environmental Report 3

Introduction

Dave Shenton, national environment managerLafarge Cement UK

GlossaryBREF Best Available Technology Reference

Documents – used by site operators as a guide only – they do not have legal status

CEM Continuous Emissions Monitors

CKD Cement Kiln Dust

CO2Carbon dioxide

EA Environment Agency

ELV Emission Limit Value

EMAS Eco Management and Audit Scheme

Kg/tPCE Kilogramme per tonne of Portland Cement Equivalent – a standard measure in the cement industry

MPA Mineral Products Association

NOXOxides of nitrogen

PFA Pulverised Fly Ash

PPC Pollution Prevention and Control Act 1999

PSP Processed Sewage Pellets

SO2Sulphur dioxide

SRF Solid Recovered Fuel

SSSi Site of Special Scientifi c interest

WDF Waste Derived Fuel

WDLF Waste Derived Liquid Fuel

WID Waste Incineration Directive

In this Environment Report for 2010 we present the headlines for Lafarge Cement’s operations in the UK. The Report demonstrates continued improvements in the company’s overall environmental performance and provides an interim view in advance of a full environmental statement to be published in 2012, covering the years 2009 to 2011 inclusive.

Against a backdrop of continued challenging market and cost conditions, the company is progressing its drive for incremental

progress in environmental standards. Our drive to reduce particulate emissions (dust) is a notable highlight. Since 2000,

when Eco Management and Audit Scheme (EMAS) validation was introduced, we have reduced our overall particulates from

0.25kg per tonne of cement produced to around 0.06kg, well ahead of the Lafarge Group target.

Our use of waste-derived fuels was also signifi cantly up on 2009: over 104,000 tonnes of these fuels used in 2010 in

comparison with 92,000 tonnes in 2009, representing an increase of over 12 per cent. Increasing our use of these fuels is a

key business driver, helping us reduce our reliance on virgin fossil fuels, maintain our plant environmental performance and

address UK waste disposal challenges. In 2011 we will continue with our work to introduce additional waste-derived fuels

where the materials suit our process and the environmental benefi ts are clear.

During 2010 most of our manufacturing sites were issued with the new regulatory operating permits. These new permits,

combined with the requirements of current and future guidelines like the BREF, make it increasingly challenging for us to

keep ahead. However, we remain committed to minimising the impact our operations have on the environment and will,

where practical, invest in innovative initiatives to keep us at the forefront of performance.

I hope you fi nd this Report of interest and that it clearly demonstrates how the environment is very much a core value for us.

We welcome your comments and suggestions on this vital area of our business (see page 2 for contact details).

4 Environmental Report | 2010 | Lafarge

2000 2009 2010T 2011T

13

1.69 1.51.1

2010A

1.1

CASE STUDYABERTHAW WORKS / CELTICASH

Raw materials and waste Traditionally all raw materials used in the cement-making

process were virgin materials sourced from local quarries, usually directly associated with the cement-making site.

However over recent years, as part of our drive

to reduce our dependence on virgin material

and help address waste issues, we have begun

to introduce waste and by-products from other

industries. These include materials such as

blast furnace slag, Pulverised Fly Ash (PFA),

and other ashes from paper mills for example.

These materials contain minerals essential for

the manufacture of cement. In 2010 around

10 per cent of the materials we used were from

non-virgin sources. This equates to over 530,000

tonnes of materials being diverted from landfill

and as such preserving the same volume of raw

materials in the ground.

The cement-making process is highly material

efficient. In Lafarge we produce no by-products

or process waste and all that we extract (with the

exception of soils, which are stored for quarry

restorations) are used. The material efficiency

remains at 1.5kg of raw materials for every 1kg of

cement produced. The vast majority of the 0.5kg

waste is in the form of C02 and moisture in the

materials which is driven off during the burning

stage of the process.

Not only do we play our part in the waste solution

by recovering energy from waste through the

use of both raw materials and fuels, we are also

working hard to reduce the amount of waste

Aberthaw Works is helping reduce the environmental impact of electricity generation and cement manufacture by using Pulverised Fly Ash (PFA) from power stations as an alternative raw material and as an additive in its cement.

CelticAsh is one of three Lafarge Cement UK PFA reprocessing facilities. Based at RWE npower’s Aberthaw Power Station, the facility has the capacity to recover up to 150,000 tonnes per year of low carbon mineral ash that would otherwise have been sent to landfill.

The CelticAsh process removes un-burnt carbon from the PFA, producing a low-carbon mineral ash. The carbon that is removed is sent back to the power station for re-burning, reducing the amount of coal used. The low carbon mineral ash is transported less than two miles to Aberthaw Works where it used to manufacture blended CEMII cements, which typically contain 25 per cent PFA.

Lafarge’s Phoenix Cement is made using this low carbon fly ash. The blend of the materials reduces the amount of primary aggregate used and therefore the quantity of CO2 expended during production - making it a more sustainable alternative to ordinary Portland cement products. Phoenix cement contains 26 per cent less embodied CO2 when compared to traditional Portland cements. The use of PFA also increases

the strength and durability of concrete with time. This, combined with the CO2 savings, makes PFA-based products the ideal choice for sustainable construction projects.

In addition to the CelticAsh processed material, Aberthaw Works also uses unprocessed PFA (run-of-station ash) as an alternative raw material in place of clay or shale. This direct use of PFA reduces the amount of primary aggregates required in the manufacturing process.

In 2010 Aberthaw Works used 65,000 tonnes of PFA, diverting this material from landfill and helping the Works achieve its sustainability targets.

that is sent off site for disposal or recovery. In

2010 we achieved our lowest ever volume of

waste produced leaving our sites. Since our

first registration to EMAS in 2000 we have

reduced waste removed off site by 92 per cent.

Now waste represents only 1.1kg/tPCE ie for

every tonne of Portland Cement equivalent we

produce, only 1.1kg of waste is generated.

Cookstown Works in Northern Ireland is a good

example of a site which has worked hard to

reduce the amount of waste material sent off

site. For instance, the team reduced the disposal

of Cement Kiln Dust (CKD) from 153 tonnes in

2009 to zero tonnes in 2010. This was achieved

through the careful management of a silo for

storage and the gradual incorporation of the dust

back into the process. n

Waste removed Kg/tPCE

10%OF MATERIALS WE USED WERE FROM NON-VIRGIN SOURCES.

Achievements

• 10% reduction target for waste

produced met and exceeded

• Zero tonnes of Cement Kiln Dust (CKD)

sent to landfill.

2010

Targets

• Increase use of waste-based materials

in cement-making process.2011


CASE STUDYCAULDON WORKS – PERMIT FOR A FIFTH WASTE-DERIVED FUEL

Cauldon Works in Staffordshire is our flagship site for the use of a range of sustainable waste-derived fuels. For more than 15 years the site has incorporated waste-derived alternatives into its process, substantially reducing its reliance on traditional fossil fuels. On the back of this proven track record, in 2010 the Works team received a permit to evaluate a fifth of these fuels – Waste Derived Liquid Fuel (WDLF) – to complement the other four for which it has permits: tyre chips; Solid Recovered Fuel (SRF); Processed Sewage Pellets (PSP); and Recovered Fuel Oil (RFO). This permit was received after a comprehensive pre-consultation exercise was held during 2009.

WDLF is a tightly specified blend of waste products with a high energy content, made from materials found in everyday products such as paint, solvents and degreasers. The use of WDLF is a safe and proven technology. It will help provide a check on costs which have been escalating due to the volatility and high price of energy.

Once the necessary equipment has been installed, in 2011 the Works team will evaluate WDLF and submit its findings to the Environment Agency with a view to gaining a permit for permanent use at Cauldon.

Energy Energy forms a substantial element of our operations and is delivered through heat (via combustion of fossil and non fossil fuels) and electricity.

The use of waste in the cement process is a

key driver for both reducing our environmental

footprint (including CO2), and providing a safe

and clean solution for some of the UK’s waste by

recovering energy from materials which would

otherwise be disposed of through landfill or

incineration. In order to use waste as an energy

source two key criteria have to be met:

• Oursitesmusthaveapermitfromthe

regulator which confirms we are able to

meet the requirements of the EU Waste

Incineration Directive (WID). This directive

sets stringent requirements for emission

limits from our process, as well as operating

conditions to ensure that waste is effectively

used with no harmful by-products. All Lafarge

Cement UK sites have held these permits

since the introduction of the WID at the end

of 2005

• Beforeanewwastecanbeusedatthesite

a ‘permit variation’ must be received. In

order to do this, Lafarge Cement UK not only

subscribes to the MPA Code of Practice for

waste-derived fuels, but was also involved in

piloting the scheme in 2007/2008. This Code

is based around the principle of consultation

with stakeholders prior to an application being

made to the regulator.

Stakeholder consultation includes briefing

the regulator on our plans; meeting with

key community representatives; provision

of information through the local media; and

exhibitions for the general public to see the

plans and meet the works team. Once the pre-

consultation is complete (it usually lasts around

six to eight weeks), the application is made to

the regulator and permission sought to evaluate

the fuel/s. This evaluation will include recording

measurements in the exhaust gas stream to

ensure no detrimental impact is identified. Once

this is achieved, a report is submitted to the

regulator seeking permission for permanent use

should the criteria have been met.

In 2010 we exceeded our target to increase

waste-derived fuel use by three per cent. We

used over 104,000 tonnes of these fuels in 2010,

in comparison with 92,000 tonnes in 2009 – an

increase of more than 12 per cent.

Achievements

• Met and exceeded target to increase

our waste derived fuel by 3% based

on 2009. (actually achieved over

12% increase)

• 7% reduction in electricity

consumption.

Targets

• To continue to increase rates of

substitution of waste-derived fuels for

traditional fossil fuels (target 31%).

Within Lafarge Cement UK our waste-derived

fuels are sourced and supplied by our wholly

owned subsidiary Sapphire Energy Recovery.

Sapphire operates as both a supplier and

manufacturer. Manufacture of fuels is in the form

of tyre chips which are used not only by Lafarge

but by other cement manufacturers in the UK.

These chips are processed at four locations

around the UK and in 2010 they provided over

60,000 tonnes of tyres as a waste-derived fuel.

ElectricityIn 2010 we reduced our electricity consumption

by seven per cent in comparison with 2009.

In 2011 we shall be implementing our ‘golden

rules on electricity management’ to ensure we

continue to reduce, where possible, the energy

associated with our operations. n

2010

2011

24%2010 TOTAL WASTE-DERIVED

FUEL SUBSTITUTION


CASE STUDYHope WorksSO2 emission reduction Hope Works uses a combination of limestone and shale within the cement raw material mix. As the current local source of shale has limited reserves, an alternative supply of raw material was required. It was identifi ed that PFA (Pulverised Fly Ash) contains the same chemical elements found in shale and could be used as a partial replacement for the shale in the raw mix. In 2009 the Environment Agency gave permission for the Works team to trial the use of PFA. Following successful trials, in 2010 permission was given to use PFA at a rate of 5 per cent of the total raw mix feed to the kiln.

During its use the Works team identifi ed that the natural sulphur levels in the PFA were lower than that of the shale and as a result SO2 emissions from the site were reduced. Previously the Works had an emission limit value (ELV) for SO2 of 1760 mg/nm3, which is above the BREF recommendation of 400 mg/Nm3. In 2010 a request was granted by the Environment Agency to trial an increase in the PFA/shale substitution rate to 15 per cent. During the trial at the higher replacement levels, the Works was able to perform within the BREF value of 400mg/nm3. In a drive to further reduce SO2 emissions, Hope Works is seeking permission from the Environment Agency for permanent permission to use higher levels of PFA and is commissioning a £4 million project to receive, store and feed PFA on a permanent basis at the site.

Emissions to air Emissions to air are one of the most significant aspects for the cement industry with regard to environmental impact. Within Lafarge Cement UK we have been working hard for many years to reduce the emissions volumes.

Since our fi rst EMAS statement was published in

2000, signifi cant reductions have been achieved

across all key emissions. Particulates (dust)

is worthy of particular note with a reduction of

almost 0.2kg per tonne of Portland Cement

Equivalent (kg/tPCE) from 0.25kg in 2000 to

0.06kg in 2010. This is well ahead of our 2012

corporate target.

Also with sulphur dioxide (SO2) we have

continued to drive emissions down. Through

careful quarrying and blending of raw materials

and an increased use of waste-derived raw

materials with lower sulphur content (such as

PFA) we continued to reduce emissions of SO2,

again exceeding our 2012 sustainability ambition

target early.

During 2010 we made further substantial

progress in our goal to reduce our CO2 footprint.

Two initiatives have made a major difference:

• the further development of products with lower

embodied CO2. In 2010 more than half of the

products we sold were more sustainable blended

products which have a lower CO2 impact.

• The increased use of waste-derived fuels

for energy for our process. In 2010 we used

over 100,000 tonnes of these fuels to replace

traditional fossil fuels. The majority of these fuels

are 100 per cent or partially biomass carbon

neutral.

In 2010 all England and Wales cement sector

sites received new permits from the Environment

Agency. These new permits were issued

under the Environmental Permitting regime.

Included in the permits are the requirements

of the 2009 EU cement Sector BREF which is

the guidance document for the industry with

regards to process types and associated levels of

environmental performance.

2000 2009 2010A2010T 2011T

0.27

0.07 0.060.07

0.06

2000 2009 2010A2010T 2011T

2.06

0.740.57

0.70.6

2000 2009 2010A2010T 2011T

3.55

1.51 1.421.51.42

2010T

706

2000 2009 2011T

852

703

2010A

706 703

Particulates Kg/tPCE

Sulphur Dioxide Kg/tPCE

Oxides of Nitrogen Kg/tPCE

Carbon Dioxide Kg/tPCE


TransportInitiatives with our road and rail fleet have helped

reduce vehicle emissions and also our carbon

dioxide footprint.

Some of our transport initiatives during 2010

included:

• We began our programme to replace our road

fleet with 20 per cent of vehicles renewed. This

programme is planned to continue into 2011

with the change of fleet expected to increase

vehicle mpg up from 6.63 in 2010 to a targeted

performance of 7.5 in 2011.

• We achieved a reduction in transport-related CO2

through increased road miles per gallon (mpg)

and increased use of rail transport

• A feasibility study and trial were undertaken for

the movement of packed cement by rail. Trials

of moving bagged product via rail in place of

traditional road vehicles were undertaken at

our Dunbar Works in Scotland. This trial proved

successful and now investment is being put in

place to allow this to take place on a permanent

basis. Our target in 2011 is to move 50,000

tonnes of packed product via rail. n

Achievements

• Exceeded targets for reductions in

most key process emission areas –

particulates, NOx, and SO2

• 20% of road fleet replaced with

increased mpg achieved

• More than 50% of sales from lower

embodied CO2 blended products.

Targets

• Emission Limits – continue to drive

towards ultimate target of

zero breaches

• BREF – meet requirements of the

sector and operating permits

• Continue road fleet replacement

programme with 7.5 mpg target

• Transfer 50,000 tonnes of packed

product from road to rail.

2010

2011

CASE STUDYTRANSPORT WESTBURY DEPOTWestbury Depot, which operates from the former Westbury Works site, plays an important role in transporting products from some of our Works into the South West Region. It does this by taking bulk material in by rail and then transferring it to bulk road wagons or packaging it up for the builders’ merchants outlets. By providing a rail-fed hub for Lafarge’s products, this Depot plays an important role in reducing road miles across the country. In 2010 the Depot achieved a 13 per cent increase in the amount of material it handles which come in by rail – from 83,400 tonnes in 2009 to 95,800 tonnes in 2010. One particular contract of note was the supply of 5,000 tonnes of cement to a site in Swindon where a giant DIY store was being constructed. Working with Lafarge’s Theale Depot (near Reading) the company was able to supply through rail-fed material, offering the customer flexibility and reduced road miles to fulfil the contract.

20%OF ROAD FLEET REPLACED


CASE STUDYCAULDON SHALE LAKE WATER RECYCLING

Water In 2010 we conducted a comprehensive water ‘footprint’ study of our operations. The findings will be used in 2011 to help identify ways of improving water efficiency and our associated water footprint.

One of the immediate impacts of the study has

been to give greater clarity to the amount of

water consumed in our process (see graph), thus

drawing a new benchmark for process water as

shown. The average water consumed directly

within the process is 0.16m3/tPCE. Our mains

water consumption has reduced over recent

years. The footprint study has helped to identify

differences in mains water consumption between

sites and as a result we will be looking into how

we can reduce the variance. n

Since 2006 Lafarge Cement UK’s Cauldon Works in Staffordshire has radically reduced its reliance on the nearby River Hamps for process water – from its peak of 290,000m3 in 2006 to 0m3 in 2009 and 2010. The site team has achieved this significant environmental improvement through the use of a former shale quarry (now a natural lake) and the installation of a comprehensive water recycling system.

The River Hamps is of both local and national importance as downstream the river is afforded SSSi (Site of Special Scientific interest) and European Natura 2000 designation SAC (Special Area of Conservation) status. During previous drought periods the Hamps flow has diminished significantly, raising the risk that the Works would not have access to water required for the process. Third party pollution incidents affecting the River Hamps have in the past resulted in the Works having to stop river abstraction.

Water is used in the cement manufacturing process for both conditioning and evaporative cooling of hot gases and non-evaporative cooling. The upgraded water management system has significantly reduced the dependence on the local river and the risk of a shortage of water, both for the community and the cement works in drought conditions. All Works water is now re-circulated internally, with the main ‘hub’ being the restored shale lake. In

times of flood the river return discharge pump was unable to cope with the water volumes resulting in over-flowing and flooding of residential properties in the village of Waterhouses on an annual basis.

The main benefits of the water management scheme have been:

ENVIRONMENTAL•Major reduction in water ‘footprint’

•Creation of significant wildlife habitat.

COMMUNITY•Improved stakeholder relationships (reduced risk

to local properties during drought/flood)

•Enhanced external appearance of worked out quarry

•Bird hide built in partnership with Staffordshire Wildlife Trust – enjoyed by Lafarge visitors and nearby walkers.

ECONOMIC•Reduced pumping has resulted in net electrical

saving of around £14,000/year.

This project has been recognised through three major awards:

•MPA Restoration Award

•Environment Agency Water Save Gold Award

•Environment Agency Chief Executive Award.

Achievements

• Through use of shale lake water

recycling system, achieved zero

abstraction from River Hamps at

Cauldon Works.

Targets

• Increase water efficiency at all sites to

reduce ‘footprint’.

2010

2011

2000 2009 2010 2011T

0.067

0.0590.06 0.06

Mains Water m3/tPCE

ZeroABSTRACTION OF WATER FROM RIVER HAMPS FOR 2009 AND

2010 (CAULDON WORKS).


Biodiversity and restoration In 2010 we continued our focus on the progressive restoration of our quarries as they are being worked out, and on our work to enhance biodiversity around our sites.

Despite the challenges of continued difficult

market conditions, we have maintained our

commitment to this important part of our

business and the results have been very positive.

At Cauldon Works in Staffordshire, through the

development of a former shale lake into a water

recycling hub (see page 8), we have seen the

site become a haven for a wide range of flora and

fauna and a bird hide has been installed for local

walkers. (See the case study box for information

about a similar scheme in Dunbar, Scotland.)

Whilst our landholding has decreased over

recent years, the percentage of our land which is

classed as restored has doubled since 2004 from

seven per cent to 14 per cent in 2010.

We also manage a large amount of land which

is classed by English Nature as Sites of Special

Scientific interest (SSSis). These areas are

monitored and measured in terms of their

sustainability and favourability for encouraging

biodiversity into the future. In 2008 895 acres

of the 1,596 acres of SSSi land we owned was

classed as ‘favourable’. In 2010 this figure

had gone up to 1,107 acres of the 1,605 acres

of SSSi land in our ownership. In percentage

terms we have moved our SSSi land from 56

per cent favourable to 68 per cent favourable in

those two years.

In 2009 we carried out some work on the Fairy

Hole cave SSSi near our former Weardale Works

in County Durham. This work has included

making the cave entrance safe and agreeing

cave access rights with Natural England and the

Council for Northern Caving Clubs. In 2010 we

achieved one of our key biodiversity targets for

that year and a major milestone with the Fairy

Hole Caves SSSi – through the work we have

done this area has moved from being classified

as ‘partly destroyed’ to ‘favourable’. n

Land Restoration (Acres)

2004 2010

10,614Acres

758Restored

7%RESTORED

14%RESTORED

1,109Restored

8,001Acres

Achievements

• Biodiversity action plans progressed

at each site

• 14% of landholding classed as

‘restored’ – we have doubled this figure

in six years

• ‘Favourable’ status for Fairy Hole

Caves SSSi in County Durham

Targets

• Continued reduction in ‘disturbed’

land and increase in percentage of

‘restored’ land

• Receive MPA Restoration Award

2010

2011

CASE STUDYDUNBAR WORKS - QUARRY FLOODING

The old north-west quarrying area at Dunbar is living proof that industry can revert to nature very quickly. Before even the last pieces of quarrying machinery had been moved from the site, wildlife was flooding into the area in the shape of gulls and plovers, foxes and even a small herd of deer.

The whole area is around 300 acres, and when the pumps that kept the quarry drained were switched off in October 2008, water levels started rising immediately. It was predicted that it would take around five years for the water to reach sea level, but just over two years later, the water body was officially a small lake, sitting at around 1.6m above sea level. At the moment it contains around four million cubic metres of water, and covers just under 10 acres. It plunges to 33 metres in the deepest part and there has been interest from natural history programmes in exploring the water body to find out what aquatic species have established naturally in the past two years.

Back on dry land, most of the old quarrying area surrounding the lake has regenerated naturally on advice from Scottish Natural Heritage, and now boasts a rich diversity of native species of grass and flower. This is all except for an area of native tree planting where green waste compost has been supplied by the Waste and Resources Action Programme (WRAP) as part of a trial. Regular studies of the area carried out by East Lothian Council’s ranger logs the expansion in wildlife, especially noting migratory birds, and a walkway is in the process of being developed to allow better visibility of the whole lake area by birdwatchers.

Scope of data: Aberthaw, Cauldon, Cookstown, Dunbar, Hope, Medway, Northfleet, Weardale & Westbury


CASE STUDYWORKS MANAGERS’ COMMITMENTS – ALL SITES

Compliance Compliance of our plants is measured against the requirements of our Pollution Prevention and Control (PPC) Act 1999 operating permits. If a breach occurs we advise the regulator immediately.

In 2010 for the first time we split our regulator

notifications into two categories; those recorded

by our Continuous Emissions Monitors (CEM)

and ‘others’. ‘Others’ includes fugitive emissions

and non-continuous measurements.

In 2010 we recorded 14 notifications to the

regulator as a result of an exceedance of the

emission limits set in our permits. All of these

notifications were of a minor nature and no

enforcement actions were undertaken by our

regulators at any of our locations.

We achieved our target for decreasing the

number of notifications to the regulator via our

CEM. We recorded 14 of these incidents against

our target of 16 or less for the year.

In 2009 we introduced our first environmental commitments for works and function managers. Following its first successful year, this initiative was again rolled out in 2010. These commitments are a signed pledge for these managers to commit to operate with environmental consideration and due regard to legislation. The commitments also set out objectives for compliance, stakeholder relations and environmental site improvement. The commitments are signed by the manager and displayed at our locations for both employees and visitors to view.

(number of breaches as recorded by continuous emissions monitors and ‘others’)

Compliance

Complaints

2000 2009 2010A2010T 2011T

135

45

<16 14 <10

2000 2009 2010A2010T 2011T

138 134 <134

101

90

Achievements

• Less than 16 notifications via

Continuous Emissions Monitors (CEM)

• All works managers signed

environmental commitments

• Lowest ever number of complaints

received on sites.

Targets

• Continue to reduce notifications via

CEM – target 10 or less.

2010

2011

101LOWEST AMOUNT OF

COMPLAINTS EVER IN 2010.

ComplaintsWe also measure the impact of our operations

through the feedback we receive from our

neighbours. In 2010 we had our lowest ever

number of complaints at 101. This represents

an improvement of 25 per cent on 2009 and is

well within our target for that year of 134 or less.

Complaints were varied in their nature and whilst

many turned out to not be associated with our

operations, local people felt it was appropriate to

call us. All direct complaints are responded by

our teams as appropriate.

EMAS data year 2010

Unit Aberthaw Cauldon Cookstown Dunbar Hope Northfleet Westbury Total Kg/tPCE

PRODUCTIONClinker PCE Tonnes 448728 872732 280199 589001 1276911 0 0 3467571

Cement Tonnes 466688 826774 277845 564274 1289803 0 0 3425384

RAW MATERIALSLimestone / Chalk Tonnes 520697 993958 343160 676709 1427289 0 0 3,961,813 1142.5 kg/tPCE

Shale / Clay Tonnes 0 202066 33920 29056 263722 0 0 528,764 152.5 kg/tPCE

Sand Tonnes 0 17756 0 35792 0 0 0 53,548 15.4 kg/tPCE

Gypsum Tonnes 26399 40806 14525 19748 54570 0 0 156,049 45.0 kg/tPCE

Other Tonnes 126019 70553 137730 200754 535,056 154.30 kg/tPCE

Material efficiency Tonnes 5,235,230 1509.77 kg/tPCE

EMISSIONS TO AIRParticulates Tonnes 43 33 22 39 73 0 209 0.06 kg/tPCE

SO2 Tonnes 304 163 171 413 924 0 1976 0.57 kg/tPCE

NOx Tonnes 561 1157 640 576 1977 0 4911 1.42 kg/tPCE

CO Tonnes 273 2759 288 2379 2894 0 8593 2.48 kg/tPCE

CO2 Tonnes 285115 609610 213750 426895 913033 0 2448404 706 kg/tPCE

* CO2e 2451603.6 707 kg/tPCE

ENERGYFossil Fuel Coal / Pet coke Tonnes 37714 70108 31791 46529 126739 0 0 312881 90.2 kg/tPCE

Waste-derived fuel

Tyres Tonnes 0 26123 0 15488 18656 0 0 60267 17.38 kg/tPCE

WDLF Tonnes 0 157 0 8581 0 0 0 8738 2.52 kg/tPCE

PSP Tonnes 0 6929 0 0 0 0 0 6929 2.00 kg/tPCE

MBM Tonnes 8171 0 0 0 17715 0 0 25886 7.47 kg/tPCE

SRF Tonnes 0 2650 0 0 0 0 0 2650 0.76 kg/tPCE

Total 8171 35859 0 24069 36371 0 0 104470 30.13 kg/tPCE

Electricity KWh 54761076 100797885 33857198 60483384 171241316 0 0 421140859 122.9 KWh/t

Energy efficiency Gj 29147410 29147410 8.5 KWh/t

WASTEOn site CKD Tonnes 0 0 0 0 0 0 0 0 0.000 kg/tPCE

Hazardous Tonnes 0 0 0 0 0 0 0 0 0 kg/tPCE

General Tonnes 0 0 0 0 0 0 0 0 0 kg/tPCE

Off Site CKD Tonnes 0 0 0 0 0 0 0 0 0 kg/tPCE

Hazardous Tonnes 72 41 0 26 175 0 0 314 0.091 kg/tPCE

General Tonnes 927 428 94 282 1781 0 0 3512 1.013 kg/tPCE

WATERMains m3 90135 18028 7533 33707 56878 0 0 206282 0.06 m3/tPCE

Process m3 1485918 0 56093 181042 2308345 0 0 4031398 1.16 m3/tPCE

COMPLIANCENotifications Number 4 6 5 9 26 0 0 50 0.0144 No./tPCE

Complaints Number 16 10 0 56 19 0 0 101 0.0291 No./tPCE

Biodiversity

Highlighted rows = core indicators as required by EMAS 2010. The criteria for assessing the significance of environmental impacts are available upon request.

* Total equivalent GHG emissions

LAFARGE CEMENT UK 2010 ENVIRONMENTAL PERFORMANCE DATA

Barnstone Plant

Power 0.0000332 GWh/tonne cement

Water 0.0250 M3/tonne cement

Waste 3.46 Kg/tonne cement

Recycled Waste 0.0545 Kg/tonne cement

Gas oil 3.946 Kg/tonne cement

Blending Stations Electricity Usage

Blending Station Dewsbury Seaham Theale West Thurrock

ScotAsh CEMblend

Electricity kWh 516652.6 147970 625160.5 5608315 2574145 137650

These activities are specifically excluded from our EMAS scope and therefore their data has not been included in the core indicators table above. However, the data included in these tables has been verified to EMAS standards.


LAFARGE GROUP SUSTAINABILITY REPORT 2010 DATA

Progress against our ambitions

Our Sustainability Ambitions for 2012 were established, following a period of consultation, in 2007. They set targets for the material sustainability issues that were identified at that time. This table, which we have updated each of the last four years, is a commentary on those ambitions.

NEW TARGETS WILL BE ANNOUNCED IN 2011

TARGET Deadline 2009 Performance

2010 Performance

WHY IS LAFARGE PURSUING THIS AMBITION? WHAT WILL CHANGE? HOW ARE WE PROGRESSING AGAINST THIS AMBITION?

MANAGEMENTOn safety reduce the employee lost time injury frequency rate for Lafarge employees to 0.94 or below in 2010.

2010 0.98 0.76 We continue to work towards our goal of zero accidents and to extend our health and safety culture to new businesses and those that work with us.

Continue to check the implementation of our Competition compliance program in our business units. 100% of all significant business units will be tested for compliance with it by end 2010.

2010 65% 96% Two business units in Africa are still to be tested; this will be done in 2011, as part of the continuous process of implementation of the competition compliance program worldwide.

Manage and improve our local stakeholder relationship management by: • training 100% of units in the local

stakeholder relationship methodology;

• full reporting of the three new KPIs. Three additional targets (undertaking self-assessment on stakeholder relationships, launching a dedicated intranet site and providing an internal audit screening tool) were completed in 2009.

2012

2009

58% for Cement12% for Gypsum

done

81% for Cement 31% for Gypsum

Training of the target populations in both Cement & Gypsum have increased this year (+23% for Cement; +19% for Gypsum). Aggregates & Concrete reporting for 2010 was suspended as the organization underwent realignment during the year. In 2010, six sessions involving 74 members of the Aggregates & Concrete division took place. In 2011, our focus will remain on providing appropriate training and workshops especially for the Aggregates & Concrete division. 76% (348 people) of our target populations now complete an annual self-assessment on their relations with stakeholders.

On customers, by 2012, the Group will achieve €3bn annual sales in new products.

2012 €1.8bn €1.9bn Although all sales were affected by the recession, sales of new products showed more resilience in the developed countries where they are primarily sold.

Reach 20% of women in senior and execu-tive management (Lafarge Hay grades 18+) by 2012.

2012 12.7% 13.5% In 2010, 13.5% positions in senior management were held by women, while our ambition remains at 20% by 2012. In 2010, 33% of business units had a specific recruitment and/or career development plan for women.

SOCIALBy end 2010, establish a comprehensive Group-wide occupational health program including, at a minimum, regular medical examination.

2010 On track Plan rolled-out but not implemented yet due to expanding ambition

We have expanded the scope of this ambition so that we now address all the industrial risks facing our people. A Health Assessment Standard Operating Procedure is now in place and there is a plan for the implementation of a risk-based health assessment for all employees. We have analyzed potential exposure of our employees at all our cement plants, and through our Personal Protective Equipment Standard have taken appropriate steps to limit health impacts. This medical examination program will allow us to track our employees to assure that the mitigation steps that we have taken are effectively working.

For HIV/AIDS and malaria, by end 2010, Lafarge will have extended to major developing countries where it operates, its best practice currently implemented in Africa.

2010 On track Completed Our public health methodology has been extended to Russia and Ukraine, where we have broadened our approach to reflect better the public health issues that are prevalent in these countries.


LAFARGE GROUP SUSTAINABILITY REPORT 2010 DATA

TARGET Deadline 2009 Performance

2010 Performance

WHY IS LAFARGE PURSUING THIS AMBITION? WHAT WILL CHANGE? HOW ARE WE PROGRESSING AGAINST THIS AMBITION?

ENVIRONMENTHave 100% of our sites audited environmentally within the last four years.

Permanent 86% 89% With around 2000 sites in 78 countries, this is a very ambitious objective. We continue to make progress in both having these sites audited and having more of these types of sites covered by an environmental management system. For our cement plants, nearly all except the most recent acquisitions are compliant with this objective. Coverage in our Aggregates & Concrete Division, as well as cement grinding stations, has improved, but has still not reached the desired targets.

By end 2010 reach a rate of 85% of quarries with a rehabilitation plan complying with Lafarge standards.

2010 79% 84.5% This has proved to be a challenging objective, particularly because many quarries have had to alter their operational plans in response to the recession. In 2010, we made a significant improvement in the number of rehabilitation plans and we were only 0.5% from reaching the target of 85%.

By end 2010, all our quarries will have been screened according to criteria validated by WWF International. Those in sensitive areas* will have developed a site biodiversity program by 2012.

2010

2012

64%

35%

94%

47%

There has been a significant improvement in the use of screening since 2009. Universal coverage was a very stretching target, given the diverse range of quarries we operate; we have not met it but we have achieved a high level of coverage. Screening is revealing that a higher than anticipated proportion of our sites do have potential. This is a positive outcome but poses a challenge for us in putting programs in place.

By end 2010: • cut our worldwide net CO2 emissions per

ton of cementitious by 20% as compared to 1990**.

• cut our absolute gross emissions in the Cement Business in industrialized countries by 10% as compared to 1990.

• cut our absolute net emissions in the Cement Business in industrialized countries by 15% as compared to 1990.

2010

2010

2010

-20.7% -37.7% -41.3%

-21.7% -36.5% -40.6%

All three of these objectives were met ahead of schedule; the first (concerning net emissions) in 2009 and the second and third (concerning absolute emissions) in 2008. In 2010 we focused our efforts on further reductions while working at the same time on setting new objectives. In the Kyoto Annex 1 countries we have cut our emissions by 20.5% per metric ton of cementitious and in the non-Annex 1, countries we have cut our emissions by 22.9%.

Absolute gross and net emission cuts in industrialized countries by end of 2010 must be seen in the context of the current economic downturn which has significantly impacted our production volumes.

Cut our dust emissions in our cement plants by 30% over the period 2005-2012.

2012 -26.2% -35.7% Cement plants generate dust. In 2010 considerable progress in reducing emissions was made as new/retrofitted systems were introduced. The reduction target has been met, ahead of schedule.

Cut our NOx emissions in our cement plants by 20% over the period 2005-2012.

2012 -22.2% -27.9% NOx is emitted from virtually every combustion process, including cement manufacture. We achieved the targeted reduction in 2009, and in 2010 continued to implement programs which have further reduced emissions.

Cut our S02 emissions in our cement plants by 20% over the period 2005-2012.

2012 -49.6% -52.8% SO2 is another unwanted product of cement manufacture. We achieved the targeted reduction in 2008, and again in 2010 implemented programs resulting in substantial reduction of emissions.

By end 2010 have a baseline for persistent pollutants in our cement plants for 100% of kilns and reinforce our Best Manufacturing Practices to limit emissions.

2010 69.2%of kilns analyzed

100%*** Persistent pollutants (some of which may be contained in raw materials used in cement manufacture) are emitted by cement kilns. Lafarge is working with WWF to achieve significant reductions in emissions.

• The program has completed measurement of persistent pollutants in all operating kilns;

• Plant specific action plans have been developed to reduce emissions from a group of top-emitting plants;

• Progress with reducing emissions will be monitored and reported.

Indicators verified by Ernst & Young (2010 data). * Sensitive areas are defined as IUCN Category I to VI sites and those containing IUCN red-listed threatened species. ** Net CO2 emissions are the gross emissions less the emissions that come from burning waste (see page 28).*** Due to the economic recession, in 2010 five kilns with very low utilization have been excluded from the previous scope; if included, the percent kilns analyzed would have been 97% instead of 100% for both mercury and dioxins/furans.

Progress on our Sustainability Ambitions: Fully achieved Partially achieved In progress


Values and GovernanceTraining in the Code of Business Conduct continues. The governance

of our Board is largely consistent with the relevant corporate governance

code and the Board now includes three women. We strive to improve

our understanding of the practical implementation of human rights. Our

competition compliance program continues with improved training tools.

Public Positions We have continued our lobbying work, explaining to policy-makers and

stakeholders our views on key issues relevant to our business. Climate

change, resources and biodiversity are key topics; we have well-informed

and considered opinions on these and other policy issues which we

articulate and promote in the public arena.

People development and Social dialogueThe global recession has deeply affected our sector. Lafarge remains

committed to social progress in its workforce: people development and

social dialogue are progressing. Although our understanding of outsourcing

practices and analysis of industrial actions have been improved,

challenges still remain.

Health and SafetyHealth and safety remains our Number 1 priority. Although we have

made progress in reducing incidents at our sites, overall we still had

44 fatalities in 2010. This is deeply regrettable. We are pursuing the

initiatives designed in our 2006 roadmap.

CommunitiesLike any community member, it is important that our sites co-exist with their neighbors in a constructive manner, during periods of continuity and

periods of change or development. In 2010, Lafarge faced new issues with

neighboring communities; please see specifics on our website

http//sustainabilityreport.lafarge.com .

Sustainable ConstructionSince early 2010, a dedicated sustainable construction team has been

shaping Lafarge’s development as a provider of construction solutions.

New products and building systems continue to be developed and we have

demonstrated our ability to work as partners on major projects alongside

architects, engineers, contractors, specifiers and customers.

Climate ChangeWe continued to outperform the greenhouse gas emissions target we set

for 2010. Through innovation and continued progress in industrial ecology,

Lafarge continues to make substantial progress in reducing CO2. The

quality of our greenhouse gas reporting practices (monitoring, verification

and disclosure) was rated by the Carbon Disclosure Project and ranked

amongst the top 10 in the world.

Industrial Ecology and Recycling New and varied ventures to replace fossil fuels with alternative, renewable

sources of energy for our cement kilns are emerging throughout our

business. They all contribute to reducing CO2 emissions and we are

encouraged that our commitment to this and other forms of industrial

ecology shows such significant growth potential.

Managing our EmissionsAs part of our agreed program of work with WWF to reduce persistent pollutants we have measured emissions from operating kilns(1) and

started to implement action plans to reduce emissions from a group of

plants with the highest emissions. We have also met our target for reducing

particulate emissions. These actions will allow us to address identified and

emerging issues related to air quality.

Biodiversity at our Sites2010 was the International Year of Biodiversity, an opportunity for us

to take part in a global campaign to celebrate and raise awareness of

biodiversity. We continued to make progress with rehabilitation plans and

site biodiversity management plans for quarries.

Water FootprintIn order for Lafarge to implement its strategy to reduce its water withdrawal

from aquifers and lakes and rivers, we have piloted a water footprinting assessment to determine our sites’ impact on water resources. We have also

started taking action at sites in areas of extreme water scarcity.

Sustainability RatingsIn January 2011 we learned that we had not been included in the most

recent listing of the Global 100 Most Sustainable Corporations in the World.

Having been in this list for six years, this is disappointing but shall motivate

us to further improve our sustainability practices. In 2010, we remained in the DJSI Europe Index and re-entered the DJSI World Index, which

we left in 2006. Lafarge was granted the GRI application level A+ for the 2010 Sustainability report.

(1) Includes kilns in the Group for at least 3 years that operated a minimum of 50% of the time. In 2010 there were five kilns which operated with very low utilization. These kilns will be tested when they are operated at a more normal level of utilization.

Many of our Sustainability Ambitions 2012 targets were established in 2007 and have now been completed.

A capital intensive industry such as ours requires long-term planning and

we must normally project our activities far beyond current events. However,

the rapid changes occurring in the world and the latest events in the Middle

East and Japan cannot be left unacknowledged: natural disasters, social

changes and political upheaval will pose additional and different challenges.

We need to address them in a responsible manner while continuing to

ensure the safety, development and well-being of our workforce.

We believe that considering our size and our values, Lafarge can have a

strong positive impact on local communities and their development. We will

also progress in the field of sustainable construction, provide innovation

that will increase the energy efficiency of buildings, address climate change

issues and deliver solutions for affordable housing. Through the use of

life cycle analysis we can benchmark our activities, promote the recycling

and use of sustainable materials, and help preserve the world’s natural

resources. With this context in mind, and with our stakeholders helping to

guide us, we will continue to set even more ambitious objectives.

The year at a glance

What’s next?

LAFARGE GROUP SUSTAINABILITY REPORT 2010: YEAR AT A GLANCE


Lafarge’s presence in the world

World leader in building materials, Lafarge holds top-ranking positions in each of its business lines. With a diversified and balanced geographic portfolio and 76,000 employees in 78 countries, Lafarge is at the heart of global growth supporting developing economies and responding to the tremendous need for housing and infrastructure in emerging countries.

CementWorldwide market position:World Leader - Cement, hydraulic binders

and lime for construction, renovation and

public works

Employees: 44,253

Revenues: 9,656 million euros

Countries: 50

Number of plants: 168

Aggregates & ConcreteWorldwide market position:N°2 for Aggregates and N°3 for Concrete - Ready-mix

and precast concrete products, asphalt and paving

for engineering structures, roads and buildings

Employees: 23,438


Countries: 36

Number of plants and quarries: 1,718

GypsumWorldwide market position:N°3 - Plasterboard systems and

gypsum-based interior solutions for

new construction and renovation

Employees: 7,986


Countries: 30

Number of plants: 77

World map of Lafarge’s presence as at December 31, 2010 (plants and sales offices).

1 6 , 1 6 9

8 2 7REVENUES

(IN MILLION EUROS)

NET INCOME (IN MILLION EUROS)

GROUP REVENUES BY DIVISION

GROUP EMPLOYEES BY DIVISION

Aggregates& Concrete

31.5%

Cement

59.7%

Gypsum

8.8%

Aggregates& Concrete

31%

Gypsum

10.5%

Cement

58.5%

LAFARGE GROUP CORPORATE PRESENTATION


LAFARGE CEMENT UKPortland House

Bickenhill Lane, SolihullBirmingham B37 7BQ

Phone: + 44 (0) 845 812 6400

www.lafarge.co.uk [email protected]

For the third year in a row Lafarge Cement UK was chosen as one of the 2010 winners of the Associate Members Sustainability Award by the members of the British Precast Concrete Federation.

Lafarge won the Award for the introduction of two cement industry ‘firsts’:

• our innovative cement recycling service. Based at our Barnstone

Plant, this service collects any of out-of-date packed cement from

customers and re-engineers and processes it back into making new

products. Besides environmental benefits of reducing customers’

waste to landfill, we also reduce the quarrying of virgin materials

necessary to make new products. The initiative has been highly

praised throughout the industry and has been included in The

Construction Products Association 2010 Innovation showcase

publication.

• the achievement of Responsible Sourcing (BES 6001) accreditation. Lafarge led the cement industry as it became the first

British manufacturer to obtain this. This was independently and

extensively assessed by BRE Global and demonstrates that Lafarge

is minimising and managing its environmental impacts for areas like

CO2, waste and transport, as well as demonstrating that its products’

supply chain is traceable and ethical. This innovative approach of

having its entire range assessed means that all of its customers from

precast concrete manufacturers and ready mixed to merchants and

builders will all receive responsibly sourced products.

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