2005 Sustainability Report - Lafarge

2005 Sustainability Report - Lafarge 2005 Sustainability Report - Lafarge

18.02.2013 Views

PANEL Exerting a responsible influence PUBLIC AFFAIRS PAGE 12 | 2005 SUSTAINABILITY REPORT | LAFARGE Like all international industrial groups, Lafarge needs to provide full disclosure concerning its business activities, while keeping its strategic affairs confidential. Our lobbying activities and the relevant budgets are relatively modest. We do not have a permanent presence in Brussels and Washington D.C., where we are represented by our trade associations. In Europe, our network of twenty or so participants representing each of the Group’s business and some Business Units meets three or four times a year. They coordinate the Group's positions, defend them at national, European and KARINA LITVACK F&C Asset Management international level and convey them to the trade associations. LAFARGE’S OBJECTIVES AND POSITIONS By way of its public affairs or lobbying activities, Lafarge pursues three types of objective: • Raising awareness of its activities and issues; • Anticipating stakeholders’ expectations and regulatory changes, calling for the required changes, sometimes through voluntary programs, encouraging the authorities to have them enforced effectively and pressing for implementation of a framework that prevents a distortion of competition; • Exerting its responsibility as a sector leader, notably by developing and promoting more environmentally friendly technologies and practices conducive to social progress. An excellent start on an emerging, sensitive topic. Lafarge clearly states its policy objectives and provides a good overview of the range of topics pursued. A highlight is its position on EU Climate Change policy, which clearly reveals the dilemmas the company faces, and is likely to trigger healthy debate on this vital subject. Recommended improvements include: Global consistency: Beyond the 20 European staff, how is lobbying coordinated and controlled in other markets? Trade associations: A web reference to key memberships, as well as disclosure of material instances of disagreement with these groups Clarity and breadth: Provide more detail beyond Europe and North America, state clearly what the ‘ask’ is and explain the context, to enable readers to understand the implications of Lafarge’s stance, provide a weblink to actual official submissions

AN EXAMPLE OF RESPONSIBLE PARTNERING BETWEEN INDUSTRY AND UNION REPRESENTATIVES Through its trade associations, Lafarge has campaigned very actively in the multi-sectoral European social dialogue aimed at protecting workers' health by reducing their exposure to respirable crystalline silica. What sets this initiative apart is the fact that rather than legislating through a new directive, the European Commission opted to support an agreement between industry and union representatives. Lafarge actively supported this approach. The preliminary agreement, secured in early 2006, called for implementation of best practices and special monitoring of workers' health. It will be implemented through reporting at national and European level, approved by a joint committee of employee and employer representatives. For more details on the position held by Lafarge North America, see our website. Lafarge Zement’s Sötenich cement plant, Germany. Employee in a Lafarge cement plant. MORE RESPONSIBLE LOBBYING The November 2005 meeting with the stakeholder panel focused in particular on responsible lobbying, which requires compliance with three major principles: • Keeping our lobbying activities transparent: our practices put Lafarge at the top of the class in this area 1 . Each year, we publish our public positions. > See pages 14 and 15 • Exchanging different points of view: this represents the most effective type of action. Consequently, we regularly meet with our stakeholders and representatives of government agencies and organize site visits, so that they gain an insight into the reality of situations in the field. • Drawing up lobbying objectives consistent with our sustainability engagements: we firmly believe that it is in the interest of the Group to influence the adoption of high-quality environmental, social and technology standards and to call for strict enforcement of regulations. There is still room for improvement, especially in terms of getting trade associations to embrace our positions more effectively, since it is they that subsequently defend them. 1 | Study: Risk & Opportunity, Sustainability 2004. “While Lafarge is selective in the issues it addresses it does discuss its public policy activities in relation to climate change. The global cement company’s declared stance may not be to everyone’s liking, but at least it is clear what it is”. LAFARGE | 2005 SUSTAINABILITY REPORT | PAGE 13

PANEL<br />

Exerting a responsible<br />

influence<br />

PUBLIC AFFAIRS<br />

PAGE 12 | <strong>2005</strong> SUSTAINABILITY REPORT | LAFARGE<br />

Like all international industrial groups, <strong>Lafarge</strong> needs to provide full<br />

disclosure concerning its business activities, while keeping its strategic<br />

affairs confidential.<br />

Our lobbying activities and the relevant<br />

budgets are relatively modest. We do<br />

not have a permanent presence in<br />

Brussels and Washington D.C., where<br />

we are represented by our trade<br />

associations.<br />

In Europe, our network of twenty or<br />

so participants representing each of<br />

the Group’s business and some Business<br />

Units meets three or four times a year.<br />

They coordinate the Group's positions,<br />

defend them at national, European and<br />

KARINA LITVACK<br />

F&C Asset Management<br />

international level and convey them to<br />

the trade associations.<br />

LAFARGE’S OBJECTIVES<br />

AND POSITIONS<br />

By way of its public affairs or lobbying<br />

activities, <strong>Lafarge</strong> pursues three types<br />

of objective:<br />

• Raising awareness of its activities<br />

and issues;<br />

• Anticipating stakeholders’ expectations<br />

and regulatory changes, calling for the<br />

required changes, sometimes through<br />

voluntary programs, encouraging the<br />

authorities to have them enforced<br />

effectively and pressing for<br />

implementation of a framework that<br />

prevents a distortion of competition;<br />

• Exerting its responsibility as a sector<br />

leader, notably by developing and<br />

promoting more environmentally<br />

friendly technologies and practices<br />

conducive to social progress.<br />

An excellent start on an emerging, sensitive topic. <strong>Lafarge</strong> clearly states its policy objectives and<br />

provides a good overview of the range of topics pursued.<br />

A highlight is its position on EU Climate Change policy, which clearly reveals the dilemmas the<br />

company faces, and is likely to trigger healthy debate on this vital subject.<br />

Recommended improvements include:<br />

Global consistency: Beyond the 20 European staff, how is lobbying coordinated and controlled in<br />

other markets?<br />

Trade associations: A web reference to key memberships, as well as disclosure of material instances<br />

of disagreement with these groups<br />

Clarity and breadth: Provide more detail beyond Europe and North America, state clearly what the<br />

‘ask’ is and explain the context, to enable readers to understand the implications of <strong>Lafarge</strong>’s stance,<br />

provide a weblink to actual official submissions

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