Public policy, compliance and environmental investments

In 2010, 69% of Group companies were engaged in lobbying activities (2009: 69%), which we define as our involvement in the policy-making process, through the rendering of advice and expertise in support of equitable and workable policies and legislation.

As an industry leader, we take an active role in promoting positions that are aligned with our strategic objectives and our commitment to sustainable development on a range of issues. Our engagement in the policy process is transparent. When we identify an issue of concern, we will first make an assessment of its potential business impact, which then determines our lobbying strategy. Lobbying on behalf of the cement industry will often be conducted by a relevant trade association, such as the European Cement Association, (CEMBUREAU).

If implications of an issue extend beyond our industry, we may undertake activities with broader business organizations or in cooperation with like-minded members of civil society. However, where appropriate, Holcim is prepared to act independently.

In many developing countries, environmental legislation is non-existent, unclear or simply does not encourage the high standards the cement industry could operate under. In such situations, Holcim often takes the initiative to actively engage with stakeholders in developing a regulatory framework that offers a high level of environmental protection and the regulatory certainty we need to invest in new technologies in that country.

To ensure that we act responsibly when developing new initiatives, our membership with the UN Global Compact or the World Business Council for Sustainable Development (WBCSD) guides our approach.

Via the WBCSD and the Cement Sustainability Initiative, we also promote our position on climate change and appreciate the opportunities afforded by such forums for making contact with key NGOs such as the World Resources Institute (WRI).

The Kyoto Protocol promotes the "Clean Development Mechanism" for the reduction of CO₂ emissions and the creation of credits. However, these efforts have proven to be less effective than expected for the cement industry in developing countries. Subsequently, the Cement Sustainability Initiative, with the contribution of Holcim, has proposed a more effective methodology which is now in the approval process of the United Nations Framework Convention on Climate Change (UNFCCC).

Our cooperation with "Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ)" which formally ended in 2008 (see the case study on the right hand navigation), is already yielding results - advocacy aimed at improving industry practices when using AFR is an integral byproduct of the co-processing guidelines' development.

Another example that shows the different avenues we can pursue to present our position is in the climate change arena. Lobbying at EU level with respect to emissions trading occurs via CEMBUREAU. Consensus is built among industry and a united voice presented to legislators.

To further promote the Holcim position on climate and energy, we sponsor Global Legislators Organisation for a Balanced Environment (GLOBE), an organization bringing together legislators from a broad political spectrum who share an interest in developing sound environmental legislation. We have found this to be a positive platform through which to channel our points of view to members of national parliaments and the European Parliament alike.

Holcim joined the EU Corporate Leaders Group, which has been widely credited with providing critical support to the European Commission's proposed long-term climate change strategy.

All our plants (cement manufacture as well as aggregates and other construction materials) report regulatory non-compliance in cases that threaten air, water or soil quality; that can directly or indirectly endanger human, animal or plant health; that could affect the company's reputation; or that may result in a significant fine or penalty.

Holcim seeks to ensure that all its operations are fully environmentally compliant.

Political contributions are publicly disclosed at Group company level as appropriate and required by regulation. Available data help us estimate such contributions.