Sustainable Development

Lafarge uses the framework defined by the Global Reporting Initiative to assess its sustainable development performance.

The Global Reporting Initiative (G.R.I.) was created in 1997 to develop directives suitable for measuring the economic, environmental and social performance of companies. The G.R.I. is working closely with the United Nations Environment Program (U.N.E.P.) to develop an international standard for sustainable development.

The "Global 100 Most Sustainable Corporations" project showcases the international companies which are the most committed to sustainable development.

Since 2005, Lafarge has been the only company in the cement sector to rank among the 100 most responsible companies.

The Environmental Leaders Europe 40 Index is designed to identify European companies with leading environmental practices and that are doing more to manage their environmental risks and impacts whilst reducing their environmental footprint.

The index includes only those with a "best practice" environmental rating than 5. Lafarge is the only cement company included in the index.

In its Intangible Value Assessment Innovest gives Lafarge a AAA rating.

Innovest said that the Group had a sector leading robust sustainability strategy and initiatives to mitigate other key environmental, social and governance risks (such as greenhouse gas emission levels), which would enable it to obtain strategic profit opportunities both in the short and long-term.

Every year, social and environmental rating agencies compare Lafarge's sustainable development performance to that of other players in the sector:

• Evaluation by S.A.M. (Sustainability Asset Management, a D.J.S.I. Index): in 2006, Lafarge achieves the best environmental and social reporting scores of any company in its sector. Yet in 2007, Lafarge was no longer placed in the D.J.S.I. Why was this ? Principally, because D.J.S.I. considered that the progress on NOx, SOx and dust emissions was not sufficient. In fact, the Group has grown significantly by acquiring facilities with low environmental performance in emerging countries. Progressing continuously, Lafarge is upgrading them rapidly.

• Evaluation by Vigeo: Vigeo rates Lafarge as achieving very positive results in the domains of business behaviour, community involvement, environment, human resources and human rights. According to Vigeo, progress still has to be made in governance.

• Evaluation by Storebrand: Lafarge is 1 of 5 companies judged best in class in Storebrand's analysis of the construction materials sector. Lafarge is the most highly rated company in the social ratings aspect of the analysis for instance.