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building a better future - Cemex

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esponsible sourcing<br />

Our Supplier Sustainability Program is being embraced by<br />

our local operations and our suppliers and we are glad to<br />

mention some of the advances, according to its four phases:<br />

1.<br />

QUESTIONNAIRE<br />

2.<br />

COMMUNICATION<br />

3.<br />

POLICIES<br />

4.<br />

SCORECARD<br />

> Supplier Sustainability<br />

Survey:<br />

> Sustainable practices<br />

> Social behaviors<br />

> Environmental measures<br />

> Definition of the<br />

communication strategy:<br />

> Communicate to our<br />

suppliers the CEMEX<br />

sustainable commitment,<br />

practices and beliefs<br />

> Code of Conduct when<br />

doing business with us:<br />

> Sustainability clauses in<br />

contracts and purchase<br />

orders<br />

> Include in our<br />

scorecard an evaluation<br />

of sustainable<br />

practices.<br />

Each CEMEX Country has a different pace of implementation<br />

Phase I. Assessment during 2011, CEMEX continued<br />

assessing the sustainability practices<br />

and performance of current suppliers with the<br />

supplier survey. In addition to the suppliers<br />

in Mexico, Colombia, the Dominican Republic,<br />

and the Philippines that received the survey in<br />

2010. In 2011 CEMEX sent the survey to a total<br />

of 1,004 suppliers in the UK, Germany, Panama,<br />

Costa Rica, Nicaragua, USA, UAE, Puerto Rico, and<br />

a multinational group of suppliers categorized<br />

as Global Sourcing.<br />

For more information, please visit the Supplier<br />

Sustainability Program at www.cemex.com/<br />

Suppliers/SupplierSustainabilityProgram.aspx”<br />

Phase II. Communication: In 2011, we created<br />

a new section in the CEMEX website for Suppliers.<br />

In this section, our suppliers can find all<br />

the relevant information of our Four Phases<br />

Program. We have also developed an internal<br />

global community within our internal collaboration<br />

platform, Shift, with a special section for<br />

Supplier Sustainability. Through this platform,<br />

we share the progress of countries in each phase<br />

of the Program, share best practices and allow<br />

worldwide network and support.<br />

Phase III. Policies: We have developed the Code<br />

of Conduct when doing business with us, which will<br />

be rolled out in a schedule defined by each of the<br />

different CEMEX countries during 2012. This code<br />

of conduct is the result of a benchmark study analyzing<br />

industry best practices, the 10 UN Global<br />

Compact principles, and the procurement clauses<br />

contained in the Company´s Code of Conduct. The<br />

Code of Conduct when doing business with us can<br />

be found on our website.<br />

The CEMEX Procurement and Legal teams have<br />

developed sustainability clauses, aligned with the<br />

Code of Conduct when doing business with us, to<br />

be included in supplier contracts and purchase<br />

orders. These include requirements regarding<br />

confidentiality, anti-bribery, human rights, labor,<br />

health and safety, and environmental practices.<br />

Phase IV. Scorecard: We are moving forward<br />

with the application of a scorecard for sourcing<br />

decisions that take into account sustainability<br />

considerations. More and more, CEMEX awards<br />

contracts to suppliers with the best sustainability<br />

performance under similar economic conditions.<br />

For example, in Colombia, CEMEX has reinforced<br />

the negotiation evaluation standards that will be<br />

applied in every key negotiation or strategy of the<br />

country’s operation. These standards will:<br />

• reinforce industrial safety, norms for environmental<br />

protection, and risk coverage<br />

• standardize recruitment principles<br />

• incorporate supplier sustainable practices, promoting<br />

the principles of the UN Global Compact<br />

of which CEMEX is already a member<br />

In this way we will be able to encourage, from<br />

the moment we sign a contract, adherence of the<br />

suppliers to this important initiative.<br />

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