Testimonials

Amidst economic recovery, the cement industry faces severe energy efficiency and systems challenges in an urbanizing world. As producers seek to advance efficiency through improved heat recovery, fuel substitution and alternative blends, one hopes that production in countries such as the US, China and India will find inspiration from levels of efficiency reached in Japan.

In addition, analysts continue to seek evidence of greater focus beyond the product to broader systems of construction, buildings and infrastructure. Cement and concrete as building materials will be with us for centuries to come. The really transformative change we expect is likely to be in the more efficient use of these materials, in combination with others, in alternative designs and systems that enable efficient use of buildings. It implies that bigger is not by definition better.

This lesson starts upstream with resource extraction, where we expect the industry to improve its ability to manage ecosystem supplies responsibly. In the making of this transformation, I expect Lafarge to play a leading role.

*UNEP: United Nations Environment Program

In the 2009 sustainable development report, I was stressing the fact that it was crucial for Lafarge to develop efficient strategies and tools to create a positive and meaningful impact on local communities in the developing countries where the group operates. In 2010, we want to insist on the very same issue.

The "Arab spring" demonstrates how important it is for multinationals to develop strong ties with the host communities, beyond the traditional bonds that multinationals establish with governments. It is of great importance on community matters to give a vision for the group; it is also crucial to breath life into this vision at the local level while taking into account its distinctive and multiple identities.

Lafarge made a success of its ambition on complex issues like safety in the workplace or HIV migration in Africa. We are eager to see the same level of commitment and achievements in the business units of the Group on stakeholder engagement and the contribution of the units to local socioeconomic development. That requires significant investments that in my opinion are not yet commensurate to what is at stake for the Group.

Trade unions welcome Lafarge efforts to improving out-sourcing practices because companies often use subcontractors and temporary agencies to avoid their legal obligations employers.

The number of out-sourced employees increased to 30%! Lafarge should explain the reason for the decrease in employment and the increase in outsourcing as well as how they make sure that subcontractor working conditions comply with Lafarge standards. In addition, Lafarge should report the gender breakdown of outsourced employees as it might become evident that outsourcing is a gender issue, with women being the main victims of outsourcing. We also appreciate Lafarge's contribution to different Business Human Rights actions.

As Lafarge is investing more and more in countries with a critical human and trade union rights record, it would be good to explain what it is doing to promote human and trade union rights at a plant and company level. The Ruggie report should not only inspire Lafarge in decision-making. Trade unions expect a clear message from Lafarge to take on responsibility for human rights and supply chain management in its businesses in all countries.

The Health policy is now being rolled out throughout the Group with a first roadmap defined.

We now expect its practical implementation as well as feedback on the actions that will be carried out. It will however be difficult to monitor the effective carrying out of the roadmap in countries where subcontracting accounts for almost 50% of our staff.

The Group's future policy on subcontracting will have a crucial impact on Lafarge's Health policy success.

If Lafarge sets the goal for 2050, to make concrete 100% recyclable, back into the same quality concrete required for sustainable construction, our need for raw materials will be vastly reduced. Quarries in the countryside will become rare, and we will rely on our cities as mines, for this important construction raw material.

Concrete is a highly qualified and necessary material for sustainable construction and many factors lead to its increasingly relevant role - population intensification in cities being one of these drivers, as compact urban contexts require a high performance of the built environment. The role of reinforced concrete in the built environment's performance goes beyond its structural strength, as concrete is an ideal medium for storing mean temperatures and for allowing these to contribute to indoor comfort.

Different geographical contexts require different construction solutions, which rely on the correct combination of concrete with other construction materials, in order to bring out the best qualities of concrete. In my view, Lafarge must identify these applications for concrete in each climatic and cultural context and actively contribute to mainstream sustainable construction solutions and the best performance of the built environment.

Lafarge's progress in wringing CO2 savings out of the concrete production process continues to be far outstripped by growth and urbanisation in emerging markets.

Financial crisis and the consequent collapse in emissions notwithstanding, the chemistry of limestone still poses a stubborn challenge that only radical innovation will overcome. This means that Lafarge's R&D must deliver a commercially viable cement substitute that will enable it to exist and prosper in a 2-degree scenario.

But while this effort is still full of unknowns, the company deserves particular praise for adopting a much more entrepreneurial approach to Industrial Ecology. From humble back-office function, this is blossoming into a dynamic brokerage activity that functions on the principle that one man's waste is another man's feedstock. Having pressed Lafarge to create a dedicated team to run this as a separate profit centre - a sort of ‘Lafarge Materials Trading Inc.' - we are delighted to see the emergence of a venture that has the potential to optimise growth, thereby earning a financial reward for driving down costs, waste and greenhouse gas emissions.

The achievements in reducing emissions and meeting objectives on persistent pollutants demonstrate Lafarge's commitment to deliver and this must continue with challenging targets for 2020.

Progress on implementing environmental management systems and routine auditing requires similar priority. Lafarge has recognised this with the goal to have 100% of sites managed by an EMS, but little improvement has been made. Likewise the target to have 100% of sites audited environmentally within the last four years shows little progress and performance is at the level in 2004 (90%).

It is accepted that these are ambitious objectives particularly with respect to acquisitions and emerging markets. However these are the very sites which should have priority and Lafarge should now set public dated action plans to achieve this. Lafarge has recognised that long term economic performance is inseparable from respect for the environment and robust assurance and verification are integral parts of this.

After 10 years, we remain convinced that we can help Lafarge to reduce its footprint and catalyse improvements across the sector. As such, we welcome the commitment to develop a KPI for quarry rehabilitation, measuring and improving biodiversity values. Moving forward, we would like to see more reference of IUCN designated protected areas at the feasibility and planning stages for new sites as well prioritising the quality control of Environmental Impact Assessments and Management Systems. We encourage Lafarge to purchase all its paper and wood supplies from FSC certified sources. The work on water footprint assessment is encouraging and a number of pilot projects are well established and an implementation guide has been developed. Rolling out the guide is crucial to reducing impacts in water-scarce areas.

The 2010 CO2 reduction target has been achieved, and Lafarge should now set new targets for net and gross emissions. Lafarge should also commit to BAT for all new production and agree specific energy consumption values (GJ/t of Clinker) for all new plants. It is crucial that they show leadership and support the shift to a low carbon economy, by increasing its use of renewable energy and incentivising this market.

Lafarge has measured persistent pollutants at each of their kilns in the last 4 years, as per their WBCSD CSI commitments, providing baseline data critical for targeting reductions. Together we will now develop plans to reduce persistent pollutants emissions at top emitting plants and develop reduction targets and systems to ensure that persistent pollutants are well managed at all plants. WWF is delighted that Lafarge will prioritise sustainable construction in 2011, take a leading role in developing new energy efficient products, and engage in sustainable construction projects around the world.

I welcome the fact that water footprint is now a new but important work-stream under Lafarge's partnership with WWF. Quarrying can contribute to water stress in several ways. Blasting can disrupt watercourses. Filthy waste water can contaminate aquifers. Pumping can lower water tables and deplete wells, springs, wetlands and rivers, as well as leading to salt water ingression near coasts.

Host communities may not understand their hydrology because much of it is underground. This places a burden of care on extractive industries. It calls for intelligent planning, the use of mitigating technologies and new forms of good-neighbor relationships.
 
In this respect I applaud the group's recognition of the UN Declaration on the Rights of Indigenous Peoples. This affirms "free, prior and informed consent" (FPIC) around the resources of indigenous peoples. But FPIC is an emerging issue for all communities. Lafarge can help to pioneer such new approaches, not just for water footprint but also for tough issues like new site acquisition.