Vision and strategy
Vision and strategy
We have earned our reputation by delivering commercially superior solutions for our customers, making profits and providing a return to our shareholders. We create value for our employees, communities and for society at large, and we know our success depends on operating sustainably and with integrity.
Our Code of Conduct guides the way we do business. Launched in 2004, it underpins our mission statement and sets out the behavior we expect from every Holcim employee.
Our Operational Roadmap sets targets for our ambitions and includes several sustainable development performance indicators. The remuneration of Holcim’s executive committee (Exco) depends on how we perform against these indicators.
Sustainable Development strategy
Holcim has placed sustainable development at the heart of its business strategy for many years. We follow the three pillar approach of the triple bottom line – economy, society and environment – within our business strategy, because we believe it creates added value for stakeholders. As the graphic shows, we think the most important foundation on which everything rests is a workforce that gives its best.
Embedding our commitments
The commitment of Holcim’s executive committee drives our sustainable development performance, but our success depends on every employee playing their part. We are taking sustainable development to the next level at Holcim, making it more tangible and relevant to everyone and mobilizing the entire workforce to help tackle the challenges through volunteering and other opportunities.
Our Sustainable Development Steering Committee operates as a subcommittee of Exco. Chaired by the CEO of Holcim Technology, Urs Bleisch, who has responsibility for the sustainable development function, the steering group includes CEO Bernard Fontana, and Exco member Roland Köhler. A second committee made up of Holcim Group company CEOs and functional experts advises on the design and implementation of sustainable development programs.
Economic impacts along the value chain
Our company-wide management systems help us manage risks and achieve continuous improvement consistently across the Group.
Our company-wide management systems help us manage risks and achieve continuous improvement consistently across the Group. They meet the international standards of ISO certification and are designed to help manage specific issues – for example our Biodiversity Management System, Water Management System and an Occupational Health and Safety Management System. All our management systems have been approved by Exco, including monitoring procedures and key performance indicators. Group companies develop additional policies and practices to meet their individual needs and to help them achieve company standards.
Influencing our value chain
In 2011, we embarked on a new Sustainable Procurement Initiative for Holcim. We want to build on and strengthen the way we manage our supply chain, and use our influence to promote sustainable and responsible business practices. Our approach will focus effort on suppliers that pose the greatest risk, and will include a new Supplier Code of Conduct and method for identifying and assessing critical suppliers. This methodology was applied for the first time in 2012 and the results indicate that 5.2% of our suppliers are considered “critical”. In 2012, 76% Holcim Group companies carried out customer relationship surveys, including of key suppliers, to identify areas for improvement. We also implemented new directives on contractor safety and contractor employment relationships.
Operating with integrity
We aim to achieve the highest standards in the way we conduct our business. At a corporate level, we follow the Swiss Code of Best Practice for Corporate Governance. The Holcim Code of Conduct provides consistent direction for the daily decisions we make across the entire Holcim Group. It covers all aspects of our operations. Group companies are responsible for ensuring that employees and managers are aware of their responsibilities and that they meet the expected standards.
We are very clear about what we expect and violations are not tolerated. Responsibility for enforcement rests primarily with line managers and where warranted, violations are investigated and appropriate action taken. During 2012, employees in all regions attended workshops on the rules of fair competition to help us meet our responsibilities under the Fair Competition Directive. In January 2012, we issued a new anti-bribery and corruption directive as part of our company Code of Conduct.
Through the adoption of the Anti-Bribery and Corruption Directive (ABCD) Holcim has mandated that each Holcim Group Company adopt a whistle-blowing system (WBS) in the event it does not already have one in place. Guidance has been issued to Group Companies to assist them in implementing a new WBS or to measure existing WBS systems against.
Determining material issues
Holcim has a well-embedded Business Risk Management (BRM) process for identifying risks at a corporate and Group company level. We carried out our first sustainable development materiality review to identify the issues of importance to our business and our stakeholders in 2007.
We aggregate the issues emerging through the Holcim BRM and Group company materiality reviews, and assess their importance for the Holcim Group as a whole. We consider the views and expectations of stakeholders through an external review panel. It should be noted that whilst some of the issues are impacts and risks, the mitigation of those impacts in many cases provides a solution or an opportunity.
Our 2011 Group materiality matrix was developed in consultation with external stakeholders in October 2011. There have been some significant changes since our last materiality review in 2010:
- “Corporate Governance” has been amended to “Corporate Governance and Business Ethics” to reflect
an increased importance of business ethics
- innovation has been added to eco-efficient products
- the importance of “water” as an issue to Holcim has increased
- the matrix now reflects the difference between impacts and solutions.
Based on our 2011 materiality review, our current sustainable development priorities are:
- sustainable solutions and sustainable construction (including eco efficient products and innovation)
- energy and climate
- biodiversity and water
- our people (including OH&S)
- social commitment (including community engagement and human rights).
Q “Delivering value to your stakeholders is part of your mission. How do you achieve results while operating with sustainability and integrity? Are incentives for sustainable practices integrated into performance compensation plans?”
A We believe it starts with our corporate values – strength, performance and passion – which are a promise to perform and to build trust with our stakeholders. Our mission is to create value for all our stakeholders:
strength – being a solid partner performance – delivering on our promises and providing the best solutions for our customers passion – caring about everything we do including our people, our customers, our communities and the environment.
Corporate Sustainability data 2012