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2005 Sustainability Report - Lafarge

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Involvement of the Group in<br />

sustainable<br />

development<br />

Respect for the environment and local communities, as well as social advancement,<br />

are the factors preserving our license to operate and assuring a high standard of<br />

performance. We wish to share our convictions with other companies to encourage<br />

active participation in our industry's progress towards greater sustainability.<br />

OUR PRINCIPLES<br />

OF ACTION AND POLICIES<br />

FRAME OUR OPERATIONS<br />

Integrity, responsibility, courage and<br />

respect for others are the values underpinning<br />

our philosophy. They are embodied<br />

in our corporate commitments:<br />

• To generate value for our customers;<br />

• To give our employees every opportunity<br />

to contribute to the Group's success<br />

and to develop their talents;<br />

• To contribute to building a better<br />

world for our local communities;<br />

• To deliver the value creation that our<br />

shareholders expect.<br />

These commitments are listed in our<br />

Principles of Action enabling all our<br />

employees to situate their actions in a<br />

clear framework.<br />

The Group’s Principles of Action<br />

are available on our website.<br />

In addition, our policies govern the<br />

conduct of our operations and ensure<br />

compliance with our commitments, taking<br />

into account our sustainable development<br />

priorities: Code of Business Conduct,<br />

Competition Policy, Environmental Policy,<br />

Human Resources Policy, Employment<br />

CORNIS VAN DER LUGT (UNEP)<br />

Policy, Health and Safety Policy, Public<br />

Health and AIDS Guidelines, Purchasing<br />

Policy and Transportation Directives.<br />

The issues covered by the Group's various<br />

codes, policies, guidelines and directives are<br />

available on our website.<br />

In addition to the values defined<br />

internally by the Group, we have signed<br />

the Global Compact and its commitments<br />

are part of our guiding principles.<br />

The Group’s responses to the ten commitments<br />

set forth in the Global Compact are available<br />

on our website.<br />

LAFARGE'S CONTRIBUTIONS<br />

TO THE CEMENT<br />

INDUSTRY'S APPROACH<br />

In 2001, <strong>Lafarge</strong> embarked on its first<br />

voluntary initiative with WWF International<br />

by setting ambitious targets to reduce<br />

CO2 emissions from our cement plants.<br />

With two other cement companies and<br />

with a view to extend this type of initiative,<br />

<strong>Lafarge</strong> enrolled other companies in the<br />

sector that are members of WBCSD's 1<br />

Cement <strong>Sustainability</strong> Initiative (CSI). CSI<br />

was established in 2001 for an initial<br />

period of five years. Its objective is<br />

to establish conditions for a more<br />

sustainable development of the industry.<br />

This sectoral approach carries genuine<br />

legitimacy from the perspective of climate<br />

change and responsible and voluntary<br />

commitment. It extends beyond the scope<br />

of the Kyoto Protocol, as 6 of the 16 CSI<br />

members come from countries that have<br />

not committed to the protocol. Members<br />

of the CSI currently account for slightly<br />

more than half of the worldwide cement<br />

production (outside China).<br />

The CSI commitments are widely<br />

recognized, even beyond the confines of<br />

the cement sector. For instance, the Asia-<br />

Pacific Partnership on Clean Development<br />

and Climate 2 has identified the CSI as a<br />

key initiative and referred to it in one<br />

of its working groups. The State of<br />

California has adopted the methodology<br />

developed by the CSI for calculating CO2<br />

emissions for its register of emission<br />

quotas.<br />

<strong>Lafarge</strong> currently leads a CSI working<br />

group responsible for developing new<br />

initiatives for the CSI over the next few<br />

years.<br />

1 | WBCSD: World Business Council for Sustainable Development.<br />

2 | Asia-Pacific Partnership on Clean Development and Climate, an<br />

agreement signed by the United States, Japan, South Korea and<br />

Australia on research and technology sharing.<br />

You can make wonderful statements and public commitments to sustainable development and a corporate responsibility agenda.<br />

But if you don’t allocate clear responsibilities from top to bottom and engage all employees in the execution of strategy, the impressive statements<br />

and commitments will come to nothing. The introduction of a sustainable development committee with top management involvement, sustainability<br />

criteria in performance appraisals of managers, ongoing training of employees - suppliers and subcontractors – and annual reporting according to<br />

GRI… these are examples of how leading companies are making it happen. It is impressive to see how <strong>Lafarge</strong> is making the shift to sustainability<br />

performance, considering longer term risks and opportunities. As <strong>Lafarge</strong> expands its involvement in rapidly growing markets such as China, the Group<br />

needs to build on its experience and to support building the performing capacity of its new business partners. We also look forward to its continued<br />

engagement with other industries and partners in applying life cycle approaches for more sustainable building and construction.<br />

PANEL<br />

LAFARGE | <strong>2005</strong> SUSTAINABILITY REPORT | PAGE 03

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