Towards Win-Win

Why I serve on the Lafarge Sustainability Stakeholder

Panel, and how it helps business and communities

Ravena, NYS

10 July 2010

Alastair McIntosh

www.AlastairMcIntosh.com

CSR as Raising the Level of the Competitive Playing Field

• Scotland … and background to involvement with the Lafarge Sustainability Stakeholder Panel

• The connection with Friends of Hudson – Holcim and Lafarge

• The Panel’s role as “critical friends”• Lafarge’s Sustainability Ambitions

2020• Ravena as an example of Panel

engagement over a difficult issue• Integrity or greenwash? A quick

story from Nigeria…

Roineabhal from Rodel

Montage Redland

Massive swing

FT Financials

Redland shares slumped from 634p in Jan 1994 before public inquiry, to 257p ahead of Lafarge bid in Oct 1997.

Financial Times14 Oct 1997, pp. 21 & 25

Just say Non

Thierry on Roineabhal

WWF Cash Reject

Philippe

“We have to create value for shareholders, but we want to do it by respecting some values. The combination of both dictates our decisions. We recognise that if we are acting in the best possible way from an environmental standpoint, we will get a competitive advantage.”

Philippe Hardouin, then Senior Vice President

Group Communications, Lafarge, 2 April 2004.

Lafarge greenwash?

Lafarge SSP

Bergamo 04

Lafarge

Panel

Lafarge Sustainability Stakeholder Panel Members 2011

• Éric Brassart - European Works Council • Marion Hellmann - BWI (Building and Wood Workers' International) • Jean-Paul Jeanrenaud - WWF International• Philippe Lévêque - Executive Director of CARE France • Karina Litvack - F&C Asset Management • Frank Rose - formerly Group VP Sustainability ICI plc • Alastair McIntosh - Centre for Human Ecology • Livia Tirone – Ecological Architect • Cornis Van Der Lugt – United Nations Environment Programme• Sheila Kharma – African Centre for Economic Transformation

Sustainability Stakeholders’ Panel Key Issues

• Greenhouse gas emissions

• Persistent pollutants

• Sustainable building solutions

• Biodiversity & site restoration

• Worker health and safety

• Human rights

• Community relations

• Anti-corruption measures

• Business Code of Conduct

• Lobbying Charter

“Our values are our value” – Bruno Lafont, CEO

2020

Developed with the Panel and released June 2012

”Corporate sustainability is more than compliance, legal requirements and risk management…. We strive to … make a net positive contribution to society as a whole. This is not about corporate philanthropy: it is about redefining our role in society … to inspire employees, unleash creativity and transform our company; it is about incorporating societal issues into strategy and operations.”

P. 2 , with Sustainability Stakeholder Panel comments, from:

http://www.lafarge.com/06152012-publication_sustainable-development-2020ambitions_figures_objectives-uk.pdf

“We believe that one of the most basic values is to operate with transparency both within our company and with our stakeholders. By respecting the rights of everyone for whom we have any direct or indirect relationship we will be able to implement this value. By enhancing our dialogue with all our stakeholders in the most transparent manner, Lafarge will continue to build on a tradition of many years of constructive relationships with NGOs, clients, consumers, governments and local authorities, employees and shareholders.” (Ambitions 2020 ibid., p. 3)

2020 Global Reduction Targets

• CO2 by 33% per ton of cement on 1990 baseline; 14.4% 2010.

• Dust by 50% per ton of clinker (PTC) on 2010 baseline.

• NOx/S0x 25-30% PTC on 2010 baseline.

• Mercury 30% PTC on 2010 base (see UNEP)

• Also targets for dioxins, furans, noise, H & S, etc.

Persistent Pollutants

e.g. Mercury

“I personally make the commitment to communicate the results of this research to the local stakeholders, as well as to you at the same time.” – Jean Carlos Angulo (when Executive Vice-President for North America)

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