Sustainable Development

In our view, responsible lobbying requires compliance with 3 major principles:

• transparency, notably including the annual publication of our public positions,
• regular dialog with our stakeholders,
• harmonization of our sustainable development commitments with our public positions.

Lafarge endeavors to play a leadership role by promoting the involvement of external trade associations, and the debate and promotion of progressive positions on the issues relating to the Group and our industry. We believe that any other attitude or position is ultimately self-defeating.

Accordingly, the Group recognizes the benefits of trade associations and is a member of several associations at international, regional, and local level.

These associations represent:

• The building materials sector. Examples? The Chinese Cement Association, the National Stone Sand and Gravel Association (United-States), and Cembureau and Eurogypsum (Europe).
• Private companies, such as the World Business Council in Sustainable Development (W.B.C.S.D.) at international level or the Association française des entreprises privées (A.F.E.P.) in France.

Lafarge has notably taken a position on 3 major issues:

• The revised European directive on the emissions trading scheme (E.U.-E.T.S.). Lafarge supports the E.U.-E.T.S. and is in favor of reducing industrial G.H.G. emissions. The Group has for some considerable time been working on a plan to cut its CO2 emissions around the world by 20% by 2010 compared with their 1990 level. By year-end 2007, it had achieved a 16% reduction.
  • The new draft directive represents forward progress at several levels: extension of the reference period, incorporation of energy-intensive industries.
  • Even so, improvements remain possible: to date, the decision-making timetable does not provide affected industries with the visibility they need to carry out the planned investments. Sectors with a risk of carbon leakage are due to be catalogued at the beginning of 2009. The arrangements helping these sectors to protect their competitiveness (free allocations, inclusion of importers in the E.U.-E.T.S., etc.) are also likely to be clarified by 2009.

• Access to natural resources. The Group has long experience of responsible quarrying and the rehabilitation of quarries. Our approach is to make the protection of the environment compatible with the development of extractive activities.

• Use of waste as an alternative fuel or raw material. This is the keystone of our commitment to industrial ecology and sustainable development. The use of waste (essential to conserve non-renewable natural resources) must be carried out by trained professionals and, above all, within a strict regulatory framework.

Please refer to the 2007 Sustainability Report for more details about the Group's public positions.