sustainability report 2014 - tarmacsustainability supply chain 63 innovation and quality 66...

SUSTAINABILITY REPORT 2014


We are embedding sustainability at the heart of what we do - it influences how we work and drives our vision to become our customers’ preferred choice for sustainable construction solutions.

People Planet Performance Solutions

Being a safe business, employing great people and having strong community relationships are key to our long-term success.Learn More

We have set demanding commitments to help tackle climate change, enhance environmental stewardship and use resources efficiently.Learn More

Only by operating professionally and ethically can we build a business that creates long-term value and is capable of developing innovative sustainable construction solutions.Learn More

We are playing an important role in helping to build a more sustainable society.Learn More

HOME ABOUT US PEOPLE PLANET PERFORMANCE SOLUTIONS

A VIEW FROM OUR CEO ABOUT USMESSAGE FROM OUR EXTERNAL SUSTAINABILITY PANEL

OUR SUSTAINABILITY STRATEGY

The External Sustainability Panel comments on our approach to sustainability, our progress to date and our future challenges.

Our sustainability strategy, priorities and commitments.

Cyrille Ragoucy, CEO, looks back at an eventful year as we transform our business to become our customers’ preferred choice for sustainable construction solutions.

Find out about our business and our vision.

LAFARGE TARMAC Sustainability Report 2014 3

ABOUT US 04Welcome from our CEO 07Message from our External Sustainability Panel 08Our vision and values 10Our sustainability strategy 11About our report 14Performance highlights 15

PEOPLE 19Safety and health 21Our people 25Community involvement 28

PERFORMANCE 51Economic value 53Governance and ethics 56Communication 58

SOLUTIONS 61Sustainability supply chain 63Innovation and quality 66Sustainable construction 70


We are embedding sustainability at the heart of what we do - it influences how we work and drives our vision to become our customers’ preferred choice for sustainable construction solutions.

PLANET 32Climate change 34Environmental stewardship 42Resource efficiency 46

HOME ABOUT US PEOPLE PLANET PERFORMANCE SOLUTIONSHOME ABOUT US PEOPLE PLANET PERFORMANCE SOLUTIONS


ABOUT USLAFARGE TARMAC IS THE UK LEADING PROVIDER OF BUILDING PRODUCTS AND SUSTAINABLE CONSTRUCTION SOLUTIONS.

6,948DEDICATED EMPLOYEES

330STRATEGICALLY LOCATED SITES

120QUARRIES

74ASPHALT PLANTS

100READYMIX CONCRETE

PLANTS

22CONTRACTING

OFFICES

44RECYCLING

OPERATIONS

47TARMAC BUILDING PRODUCTS SITES

7CEMENT AND LIME

PLANTS

Lafarge Tarmac was formed in 2013 and is a wholly owned subsidiary of Lafarge SA and Anglo American plc.

In the UK, we are the major provider of building products and construction solutions. You will find our products in everything from homes, workplaces, schools and hospitals, to roads and bridges and flood defences. They are also used in environmental protection and to manufacture essential items, such as steel, paper, glass, cosmetics and pharmaceuticals, as well as food and drinking water.

Learn more about our business


Lafarge Tarmac in numbers

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https://www.youtube.com/watch?v=yt4ez963sWc


Our head office is in Solihull in the West Midlands, and we operate from more than 330 sites across the UK and employ around 6,948 people in five business units:

Aggregates and AsphaltAs a major supplier of aggregates and asphalt, our Ultimate range combines industry-leading innovation with an unrivalled supply and distribution network that includes more than 120 quarries, 74 asphalt plants, 44 recycling operations and a marine aggregates business.

Cement and LimeWe supply a range of pioneering bulk, packed and ready-to-use cement products, together with high-purity lime, limestone powders and chemical stone from seven plants across the UK. Our Limbux, Limbase and Kalic products are used across the globe for water purification and as essential components in the manufacture of iron and steel, pharmaceuticals and for power generation. Our subsidiary company Sapphire provides waste-derived fuels and substitute raw materials.

Readymix ConcreteA leading supplier of innovative concrete solutions with in excess of 500 different formulations, our Topflow, Topmix, TopProof, Toproc, Topforce, Topfloor, Topfoam and Toptint ranges can be supplied from a local network of 100 readymix concrete plants.

ContractingLafarge Tarmac is the UK’s leading supplier of road surfacing and highway maintenance services, constructing and surfacing more than 4,800 miles of road every year and maintaining more than 13,000 miles of roads from strategic locations across the UK.

Tarmac Building ProductsTarmac Building Products has 47 locations across the UK and offers a complete range of building products, including mortars, lightweight aircrete blocks, lightweight and dense aggregate blocks, packed aggregates and specialist sands.

View our Tarmac Building Products websiteCement – Lafarge Tarmac Lime Solutions – Lafarge Tarmac

Changes to our business in 2014Last year, we strengthened our business with two major acquisitions: Tarmac Building Products and Euromix, a readymix concrete business. Find out more about these major acquisitions.

In 2014, Lafarge SA and Holcim proposed a merger of their global assets. As a result, our shareholders, Lafarge SA and Anglo American plc, announced their intention to sell Lafarge Tarmac in the UK, with the exception of the Cauldon and Cookstown cement works. This is part of a worldwide asset sale being made by Lafarge SA and Holcim to meet potential competition authorities’ requirements as part of their proposed merger.

Lafarge announced in February 2015 that CRH plc will be buying all of the assets being sold by Lafarge SA and Holcim, including Lafarge Tarmac. The sale is expected to be completed in mid-2015, and is subject to the successful completion of the merger of Lafarge SA and Holcim, and the attainment of the necessary regulatory approvals.

CRH plc is a well-known industrial company with a solid track record and experience in the building industry. It operates cement, readymix concrete, aggregates, asphalt, contracting and precast businesses across its global portfolio.

Find out more


https://youtu.be/kOdmjh_Zsl8

https://youtu.be/z4Ekz_gESA4

https://youtu.be/6xbyrj-qBDY

https://youtu.be/FiBAgRUY2NQ

https://youtu.be/XU-FzqAMRHQ

http://www.lafargetarmac.com/tarmacbuildingproducts

http://crh.com/

http://www.lafargetarmac.com/news-and-media/news/


IN THIS SECTION

Cyrille Ragoucy CEO looks back at an eventful year.

Message from our CEO

Our sustainability strategy, priorities and commitments.

Our sustainability strategy

Comments on our approach to sustainability, our progress and challenges.

Message from our panel

How we approach transparent reporting using the Global Reporting Initiative GR14.

About our report

To be our customers’ preferred choice for sustainable construction solutions.

Vision and values

How we’ve performed against our targets and plans in 2014.

Performance highlights




Message from our CEO

I am convinced that sustainability – understanding and anticipating the long-term trends that influence our customers and our operating environment – is critical to growing a successful business that creates value in the long term. When we were formed as a joint venture in 2013 between our shareholders Lafarge SA and Anglo American plc, we put sustainability at the heart of our business. Sustainability is central to the vision we established, ‘To be our customers’ preferred choice for sustainable construction solutions’, and it is embedded in our business strategy.

To support our sustainability journey, we put into place commitments and targets and undertook to report on our progress towards them. Our targets are ambitious, in many cases beyond what we know is achievable today. However, I believe this will push us to innovate and achieve more than would otherwise be possible.

As we prepare for a transfer of ownership to CRH plc, what you will see in this report is the progress we have made in 2014 towards our commitments, targets and 2020 milestones.

As the report documents we are making good progress towards our goals. I am particularly proud of our ambitious apprentice and graduate programme, our new approach to learning and development, and how we are leading the development of new sustainable products and solutions, like Building Information Modelling and product carbon footprints. We have also established innovation programmes with universities and are contributing to a circular economy by using 7.7 million tonnes of waste from other sectors as raw materials and fuels.

However, we have more to do. While we are making good strides on safety, I am determined to make more rapid progress. We will also be working to improve the diversity of our workforce and progress towards the challenging targets we have set ourselves on CO2 reduction.

We have spent a lot of time working with our employees, customers, suppliers and stakeholders to explain why we think sustainability is central to our future and what it means for them. 2015 will see the roll-out of our employee volunteering programme, the implementation of an ISO 50001 energy management system across the whole business and the launch of innovative products and solutions. All of these contribute directly to our sustainability ambitions and I expect the progress to continue under our new owner.

Finally, I would like to recognise the support of our external sustainability panel who have helped shape our sustainability strategy, challenged us constructively and supported us in making more progress over the last two years than I thought possible. I am also most grateful to the employees of Lafarge Tarmac who are putting our strategy into action every day.


“To guide us on our journey, we have established an External Sustainability Panel, chaired by Lord Glentoran, to advise and, importantly, challenge us on our sustainability strategy, commitments and performance.

Panel members include senior thinkers with expert knowledge spanning the wide range of sustainability issues that are most important to Lafarge Tarmac and its stakeholders.

By working with the Panel as a ‘critical friend’, and with other key stakeholders, we have identified the key sustainability priorities for our business and set ambitious commitments and targets.

In early 2015, Lord Glentoran stepped down as chair. I am most grateful for his leadership and the guidance of the Panel. I look forward to working with Penny Shepherd, who will chair the Panel from 2015.”

Cyrille Ragoucy, CEO, Lafarge Tarmac


Message From Our External Sustainability Panel

Sustainability Panel (left to right)

Andy Brown, Head of Sustainability – Anglian Water Services / Jiggy Lloyd, Jiggy Lloyd Consulting (advisor to Chair) / Tony Burton CBE, Executive Chair, Sustainable Homes / Nigel McKay, Group Head of Procurement for Europe, Middle East and Africa (EMEA) – Lend Lease / Belinda Howell, Managing Director – Decarbonize / Pete Halsall, CEO – Good Homes Alliance / Lord Glentoran CBE (Panel Chair) / Shaun McCarthy OBE, Director, Action Sustainability.

“At the end of 2013, our central challenge to Lafarge Tarmac was to build sustainability into all aspects of its business to achieve its transformation to a provider of sustainable construction solutions. We have encouraged it to make sustainability an integral part of its business strategy, thus positioning itself to succeed in the progression to a circular economy, and to engage all employees in delivering its sustainability vision.

We have advocated the adoption of best-practice sustainability metrics from sectors outside its own and a commitment to community engagement appropriate to Lafarge Tarmac’s role as a long-term holder and manager of substantial land assets. We have also encouraged the establishment of research networks to power innovation and activities to bring young talent into the business.

The company has responded well to our challenge and our advice. As this document shows, it has clearly established the key steps to be taken across all fronts and made good initial progress. But, above all, at a critical time in the evolution of the business, there has been the leadership and the commitment to sustainability that we have sought.


External Sustainability Panel with Penny Shepherd

“The mission of the Lafarge Tarmac External Sustainability Panel is to provide advice and guidance, and to serve as ‘critical friends’ of the company as it undergoes its transformation to a provider of sustainable construction solutions.

The Panel was formed in early 2013 to accompany the creation of Lafarge Tarmac. It fulfils its role chiefly by meeting the Chief Executive and other members of the Lafarge Tarmac senior leadership team at intervals during the year, informed by site visits and background information. At those meetings, discussions embrace the strategic direction of the business, its response to emerging sustainability issues and other topics requested by the Panel or suggested by the company.

It is not the role of the Panel to scrutinise performance data or to audit the company’s activities, but to provide high-level, strategic guidance. The commentary above does not, therefore, constitute a review or an audit of this report.”

Lafarge Tarmac External Sustainability Panel


Message From Our External Sustainability Panel

Company-wide commitmentBut transforming into a provider of sustainable construction solutions is of course a substantial and long-term effort. It needs to be pursued with continuing energy and commitment and requires support from investors and employees alike. There is a great deal still to do.

The resource issue – which encompasses constraints on supply and opportunities for more efficient use – is the greatest challenge facing the modern economy and is especially acute in the UK. Lafarge Tarmac is transforming to address that challenge; this transformation is crucial to its future business success.

In our contact with the company we have witnessed excellent work by many. We have been impressed by the strong culture and employees’ continuing commitment despite the distractions of an impending sale following so soon after the merger in 2013. A commitment to sustainability is clearly evident in many parts of the business.

Continued improvementsA continuing and systematic approach to delivering the sustainability message is necessary. Transformation will not occur without embracing hearts and minds throughout the organisation and its stakeholders.

During 2014, we have enjoyed well-resourced and insightful meetings with members of the Lafarge Tarmac senior management team. The attention and transparency that the company has brought to these discussions is greatly appreciated. Additionally, at the premises where those meetings have taken place, we have had opportunities to meet some of those whose work contributes to the success and character of the company. We extend our thanks to all who have made our interactions with the company so enjoyable and stimulating.”


Our visionTo be our customers’ preferred choice for sustainable construction solutions.

CustomerEnsuring we fully understand and meet the needs of our customers and their clients.

SustainableEmbedding sustainability into our business by working to continuously improve the environmental, social and economic performance of our products and services throughout their life-cycle.

SolutionsSupporting our customers by developing innovative products, services and solutions that add value and make a positive contribution to the whole-life performance of buildings, infrastructure and the many other applications in which they are used.

Our Vision and Values

Our vision sets out our long-term ambition and provides a clear direction for the whole business.

Our values are the way we want to deliver everything we do.

Our strategies, including our sustainability strategy, set out clearly how we are going to transform our business to realise our vision.

Our valuesOur organisation is built on six core values that define who we are and what we stand for. Together, they support our company vision.

SafeWe always put safety and health first.

Fast and flexibleWe act with an appropriate balance of speed and rigour.

Committed to our customersWe commit to delivering value for our customers every day.

One teamWe are all one team.

Passionate about successWe are passionate about our business, set ambitious targets and drive to exceed them.

Trust and respectWe extend and earn trust and respect.



Sustainability is about securing long-term success for our business, customers and communities. We achieve this by improving the environmental, social and economic performance of our products and solutions throughout their life-cycle.

Our sustainability strategy is structured to:

• Enable us to identify and understand the impact of our activities

• Prioritise, measure and drive our sustainability performance to deliver year-on-year and long-term improvements

• Innovate and implement sustainable solutions

• Communicate our progress clearly and transparently.

As a major provider of construction solutions, we recognise our responsibility to grow our business in a way that’s good for people and the environment.

This means considering not only the goods we purchase, our operations and logistics, but also the performance of our products in use and how they are reused and recycled. By adopting this whole-life approach, we can take action to minimise any negative aspects, while maximising the many positive sustainability benefits our business brings.

Using this whole-life thinking we have engaged with our stakeholders to develop our sustainability strategy. It sets out long-term, ambitious commitments to transform our business against four main themes, people, planet, performance and solutions.

Achieving this transformation means thinking again about every aspect of our business, products and services, and pushing the boundaries to develop innovative solutions that help our customers create more sustainable buildings and infrastructure.

We have also set ambitious 2020 milestone targets for each of our key priorities, all of which are underpinned by a range of further performance targets.

Our Executive Committee is responsible for the setting and delivery of our sustainability strategy. We regularly measure, review and audit progress, and work with our External Sustainability Panel, which acts as a ‘critical friend’ who challenges and monitors our actions and decisions.


Our Sustainability Strategy


Climate change

Climate change is a global issue which presents both challenges and opportunities for our business.

Environmental stewardship

We recognise our duty to manage our assets responsibly, ensuring positive outcomes for our business, the community and future generations.

Resource efficiency

We are using the concept of a ‘circular economy’ to drive the efficient use of natural resources.

Safety and health

We are committed to building a zero harm culture that targets continuous improvement and an ever-safer working environment.

Our people

We aim to be an employer of choice and an organisation that attracts diverse and talented people.

Community involvement

Working closely with local communities, keeping people informed and creating value for them is a vital part of being a responsible business.

PLANETWE HAVE SET DEMANDING COMMITMENTS TO HELP TACKLE CLIMATE CHANGE, ENHANCE ENVIRONMENTAL STEWARDSHIP AND USE RESOURCES EFFICIENTLY.

Economic value

Creating sustainable economic value is integral to our strategy.

Governance and ethics

We are committed to ensuring a strong culture of governance, ethics and integrity is embedded into our corporate culture.

Communication

Clear and transparent communications are essential for keeping our stakeholders informed and connected with our business.

Sustainable supply chain

We are working to responsibly procure all goods and services and partnering with our supply chain to help improve sustainability performance.

Innovation and quality

We are developing next generation sustainable solutions and meeting our customers’ quality performance needs.

Sustainable construction

We are helping to create a sustainable built environment by providing solutions and information to help customers deliver sustainable, efficient buildings and infrastructure.

PERFORMANCEONLY BY OPERATING PROFESSIONALLY AND ETHICALLY CAN WE BUILD A BUSINESS THAT CREATES LONG-TERM VALUE AND IS CAPABLE OF DEVELOPING INNOVATIVE SUSTAINABLE CONSTUCTION SOLUTIONS

PEOPLEBEING A SAFE BUSINESS, EMPLOYING GREAT PEOPLE AND HAVING STRONG COMMUNITY RELATIONSHIPS ARE KEY TO OUR LONG-TERM SUCCESS.

SOLUTIONSWE ARE PLAYING AN IMPORTANT ROLE IN HELPING TO BUILD A SUSTAINABLE SOCIETY.


Our strategic pillarsOur sustainability strategy is based around four key themes:



Materiality analysisOur key priorities have been identified through a materiality analysis aligned with the Global Reporting Initiative’s G4 Sustainability Reporting Guidelines. This helps us to identify and report on the key sustainability issues that are relevant to our business, our customers and our many stakeholders.

After gathering input from key decision-makers in the business, external experts, customers and other industry stakeholders, we mapped each issue on a materiality matrix to highlight its significance. The key priorities identified by this process form the basis of our sustainability strategy.

We undertake a formal review of our sustainability strategy each year and plan to carry out a materiality review in 2017.

Listening and responding to our stakeholdersCommunicating with our stakeholders, and listening and responding to their needs, is essential to the success and sustainability of the business and forms an important element of our strategic Performance theme.

Our key stakeholder groups include:

• Our people

• Communities

• Customers

• Suppliers

• Shareholders

• Government and other public bodies

• Trade associations

• Non-governmental organisations, sustainability organisations and advisors.

The case studies featured in this report provide some examples of how we have engaged and collaborated with these various groups throughout the year.

Find out more about our Community involvement and Communication

Reporting performance

Governance and ethics

Economic value

Climate change


Our people

Community involvement

Environmental protection


Resource efficiency


Safety and health

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About Our Report

This is our first sustainability report since the creation of Lafarge Tarmac in 2013 and covers the progress we have made against our strategy in 2014.

It focuses on the most material issues as identified through our materiality analysis and provides a consistent way of charting and communicating our performance and progress.

This report has been prepared in accordance with the Global Reporting Initiative’s Sustainability Reporting G4 Guidelines at core level.

GRI Index Download (PDF 196kb)

Data is included in this report for the following wholly owned subsidiaries trading under their own name:

BDP Surfacing LimitedCambrian Stone LimitedEast Coast Slag Products LimitedHuw Howatson LimitedLafarge Tarmac Cement and Lime LimitedLafarge Tarmac Trading LimitedLafarge Aggregates LimitedLafarge Tarmac Marine LimitedNational Road Planing LimitedSapphire LimitedTarmac Building Products Limited

Data for the following joint ventures is not included in this report:

C&H Quickmix LimitedCeltic Ash LimitedGRS Bagging LimitedGRS Roadstone LimitedHepplewhite Quarries and Plant Hire LimitedIsle of Wight Aggregates LimitedNewhaven Roadstone LimitedNorth Tyne Roadstone LimitedNorthampton Aggregates LimitedPrecast Cellular Structures LimitedProAsh LimitedRH Roadstone LimitedScotAsh LimitedTarmac Churngold Recycled Aggregates LimitedTendley Quarries LimitedWalsh Construction (Malvern) LimitedWest Lothian Recycling Limited

Unless otherwise indicated, data is for a 12-month period from December 2013 to November 2014. Data for Lafarge Tarmac Cement and Lime and Tarmac Building Products assets have been included in this report for the whole of calendar year 2014. Tarmac Building Products Limited and Euromix were acquired during 2014. Data for Euromix assets is excluded.

http://issuu.com/tarmacltd/docs/lafarge_tarmac_gri_index


Safety and healthTarget 2014 performanceAchieve zero harm: Reduce the Total Recordable Case Frequency Rate (TRCFR) by 20% each year (this includes employees, contractors and hauliers)

2.97

100% of operational sites to have OHSAS 18001 certification by the end of 2015 28%70% of operational employees to be ‘first aid’ trained by the end of 2020 16%*100% of Lafarge Tarmac liveried fleet to have equipment in line with new nationally agreed standards to protect vulnerable road users by the end of 2015

52%

* all employees not just operational

Our peopleTarget 2014 performanceSupport employees to engage in more than 25 hours of learning and development 16.5 hoursFill 70% of senior vacancies internally through the delivery of a talent enablement programme

71%

Deliver year-on-year enhancement of the diversity of our workforce through progressive strategies embedded into HR policies

Male 83.6% Female 16.4%

Annually recruit 120 graduate trainees and apprentices, including opportunities for disadvantaged young people

91

Community involvementTarget 2014 performance10 community events to be held at active quarry and cement operations each year 40 major community eventsNumber of community complaints in 2014 200Community donations £1m



Performance Highlights


Climate changeTarget 2014 performance37% reduction in CO2 per tonne of product compared to 1990 (i.e. 15% compared to 2013)

23%

Increase thermal input from waste-derived fuels in cement production to 70%, including 35% from biomass

40% thermal input from waste-derived fuels

17% thermal input from biomass fuels

100% of sites to have ISO 50001 certification by the end of 2016 20% coverage across businessReduce transport CO2 per tonne by 10% 5.36 kgCO2e per tonne

Environmental stewardshipTarget 2014 performance100% of mineral extraction sites to have biodiversity, geodiversity and restoration management plans

100%

100% of operational sites to have ISO 14001/EMAS certification, with new acquisitions to be certified within a year

83%

Resource efficiencyTarget 2014 performanceRecycle more than 10 million tonnes a year of waste and secondary materials from other sectors

7.7m tonnes

Achieve zero waste to landfill 49,697 tonnes to landfillIncrease the mass of recycled and secondary aggregates used in readymix concrete to 25% and in asphalt to 20%

16% asphalt

<2% concreteReduce water use (abstracted and mains) per unit of production by 25% 1,737,026 m3




Economic valueTarget 2014 performanceRevenue, £bn £1.96bn

Governance and ethicsTarget 2014 performanceContinue to achieve 100% compliance with Lafarge Tarmac’s code of conduct and competition compliance programme

100%

CommunicationTarget 2014 performanceLafarge Tarmac’s External Sustainability Panel to provide guidance and to challenge us on our performance

3

PERFORMANCEONLY BY OPERATING PROFESSIONALLY AND ETHICALLY CAN WE BUILD A BUSINESS THAT CREATES LONG-TERM VALUE AND IS CAPABLE OF DEVELOPING INNOVATIVE SUSTAINABLE CONSTUCTION SOLUTIONS



Sustainable supply chainTarget 2014 performanceAchieve BES 6001 responsible sourcing certification with an ‘Excellent’ rating by the end of 2016

100% Very good rating

100% Excellent (cement and lime)100% of suppliers in high-risk categories to be accredited to a recognised supply chain scheme by the end of 2016

16%

Innovation and qualityTarget 2014 performance100% of operational sites to have ISO 9001 certification, with new acquisitions to be certified within a year

83%

Sustainable constructionTarget 2014 performanceLafarge Tarmac product carbon calculator 3,000 product footprints generatedCreate five Sustainable Construction Solution Guides per annum to enable customers to deliver more sustainable outcomes

5 launched





Safety and health are of paramount importance to us, and the impetus behind our work to develop a zero harm culture. Find out more

We aim to be an employer of choice and a great place to work. Find out more

We look to build trust, respect and understanding through active involvement with local communities. Find out more

“It’s vitally important that we attract and retain talented people in our business, so we are building a zero harm culture, encouraging diversity and helping everyone to realise their potential. This is what makes Lafarge Tarmac a great place to work.”

Serge Colin, Group Human Resources Director, Lafarge Tarmac

SUSTAINABILITY IN ACTION

INSPIRING YOUNG PEOPLE


LAUNCH OF DISCOVERY ZONE

The Discovery Zone is a new way of helping our people to access learning in an adaptable, personalised and stimulating way.

We are supporting young people through our Forest Schools programme, encouraging them to get outdoors and enjoy a whole new learning experience.


MPA AWARDS FOR SAFETY

Our work to continually improve safety and health across the business was recognised at last year’s prestigious UK Health and Safety Awards.



IN THIS SECTION


Safety and Health


Our People

Working closely with local communities and creating value for them is a vital part of being a responsible business.

Community Involvement

OUR COMMITMENTS AND PERFORMANCE

Commitment

Zero harm

2.97Total Recordable Case

Frequency Rate (TRCFR)

Commitment

An employer of choice

91graduate trainees and apprentices recruited

Commitment

Net positive contribution to our communities

40+major community events




Over the past 12 months, we have continued to prioritise the safety, health and well-being of our employees and everyone who comes into contact with the business, and progress has been made towards our commitment. However, with a Total Recordable Case Frequency Rate (TRCFR) in 2014 of 2.97, which includes the acquisitions made during 2014, we recognise that we have much more to do and will be working hard in 2015 to improve our performance.

In 2014, key initiatives have included a new safety and health strategy, an industry-leading approach to road safety and mobile phone use, and the launch of an annual Safety Week.

We have also begun introducing a new OHSAS 18001 safety management system at all our sites, which will be completed by the end of 2015. Our efforts to improve safety and health have been recognised through a number of industry awards.

Commitment

Zero harm

2020 milestone

Achieve zero harm

CASE STUDY: MPA Awards for Safety

Our work to continuously improve safety and health across our business was recognised at the UK Health and Safety Awards, run by the Mineral Products Association (MPA).

Lafarge Tarmac won four awards covering all areas of the business. The winning projects were:

• Our work on road safety, which won the Reducing Occupational Road Risk category

• Our Switch Programme for employees and hauliers, which prevents the use of mobile phones while driving, including hands-free. It won in the Behavioural Safety, Safety Culture, Leadership category

• Our Traffic Safety Wand, which helps ensure workers are easily visible to delivery trucks and reversing plant when working at night. It won the Bitumen, Asphalt, Contract Surfacing category. View our video to see how it works.

• A new way of changing rollers on conveyor belts developed by engineers at our Mountsorrel Quarry to reduce the risk to fitters, which won the Engineering Initiatives category. View our video to see how it works.

2.97Total Recordable Case Frequency

Rate (TRCFR)


Safety and Health

https://www.youtube.com/watch?v=mNYhsL6MANs

https://www.youtube.com/watch?v=5uCCQqJjTz4


Towards a zero harm cultureIn 2014, we published our sustainability strategy and targets but also undertook a review of our safety and health strategy. We decided to adopt an even more ambitious measure for safety performance Total Recordable Case Frequency Rate (TRCFR) and will apply a new target to reduce TRCFR by 20% each year with 2014 as our new baseline. TRCFR encompasses all recordable treatment cases for employees, contractors and hauliers.

TRCFR is defined as the sum of fatal incidents, lost-time incidents, medical treatment cases and modified work duties, multiplied by one million, divided by the total number of man hours worked.

In 2014, our TRCFR was 2.97, despite 87% of sites having no total recordable cases. We must improve significantly on this performance and with the lead of our Executive Committee, which is accountable for safety and health, we are implementing a new three-year safety and health strategy. Crucially this includes a safety and health management system that is common to all areas of the business, and is backed up by a new safety and health leadership programme which is being delivered in partnership with the University of Derby. Find out more about the partnership here.

In addition to focusing on incidents leading to injury, we have introduced a new process to assess incidents, including near misses, which have the potential to be serious and are known as ‘high-potential incidents’.

Target

Reduce the Total Recordable Case Frequency Rate (TRCFR) by 20% each year (this includes employees, contractors and hauliers)

Target

100% of operational sites to have OHSAS 18001 certification by the end of 2015

Target

100% of sites to have independent cross-business safety and health audits every three years

CASE STUDY: Switch Programme

We have introduced a new policy preventing our employees and hauliers from using mobile phones, even in hands-free mode, when driving. The Switch Programme is part of our new Mobile Phone Standard and makes us the first company in our industry to implement this safety measure.

Alongside team briefings and discussions, the campaign has included practical support to show employees how they can change their behaviour, such as taking regular breaks on journeys to deal with calls.

We have also encouraged customers to use alternative contact points at our offices to ensure we continue our high-quality service even when their main contact is driving.

Improving safety on siteWe have begun to implement OHSAS 18001 Safety Management Systems at all our operational sites and at the end of 2014 28% of operational sites had been independently certified.

We have also introduced a system of site peer reviews, visits undertaken by colleagues from other areas of the company, to help identify opportunities for safety and health improvements, and share best practice. We are set to develop this programme across the whole business in 2015. 28%

of sites with OHSAS 18001



Improving safety on the roadsWe are a major presence on UK roads, with a large liveried fleet, mainly operated by contract hauliers, and more than 1,800 owned and contracted vehicles, including tippers and concrete mixer trucks.

These vehicles operate in congested urban environments as well as rural areas, where problems such as narrow roads and blind corners are an issue. At all times, we want our drivers, hauliers and other road users to be safe, and to recognise the particular vulnerability of pedestrians and cyclists.

Based on this, we have led activities across the industry, working with Transport for London (TfL), local authorities and non-governmental organisations to raise awareness and standards. We have introduced industry-leading standards for vehicle safety on all our vehicles across the country and are pressing for the introduction of a common standard for the whole industry.

As a result, 2014 saw us make considerable progress towards our target with 52% of our fleet meeting the new standard for vulnerable road users and, in 2015, we will continue with our improvement plans to retrofit vehicles and will work in collaboration with our contract hauliers to ensure our target of 100% is achieved.

Target

100% of Lafarge Tarmac liveried fleet to have equipment in line with new nationally agreed standards to protect vulnerable road users by the end of 2015

CASE STUDY: Drive safely

As part of our accreditation with the Fleet Operator Recognition Scheme, we have introduced a single set of standards so that all our vehicles are fitted with what we consider to be the best safety equipment.

All new vehicles now have side underrun bars, ensuring no one can be pushed underneath one of our vehicles in an accident. The vehicles also now have side sensors and signs warning cyclists to take extra care when passing.

We are retrofitting safety equipment to all our current fleet and it is now specified as standard on all new vehicles.

52%of Lafarge Tarmac liveried fleet have equipment in line with new

nationality agreed standards



CASE STUDY: Safety Week

In 2014, we launched Safety Week, during which every site undertook a range of safety-related activities over the course of a week, each site being sponsored by a senior manager.

The week is an important part of our commitment to develop a zero harm culture. In 2014, it was based around four key themes:

• Haulier and vehicle safety

• Hazard identification

• Risk assessment

• Stop, Think, Observe and Proceed (STOP) assessments.

Each site was encouraged to choose the most suitable theme for their operation, with site managers provided with a programme of activities and resources to help them develop a week full of activities.

Information was provided to employees about the importance of eating well and taking regular exercise, and we will continue to promote the all-round health benefits of a balanced diet and keeping active during Safety Week 2015.

Helping our people stay fit and healthy Last year, in partnership with our new occupational health provider, Optima Health, we started to offer all our office-based employees a free, optional well-being assessment. Those in operational roles undergo a more detailed set of checks called a surveillance screen. In 2014, Optima Health introduced a new process for tracking employee health screening and we will be reporting on progress against our targets in our next annual report. In 2015, Optima Health will be helping us to develop a new occupational health action plan for implementation across the business.

We have a team of trained first aiders at all of our operational sites, which as a minimum meet statutory requirements. In 2014, we had 16% of our total work force formally trained as first aiders. To meet our ambitious targets of 70% of operational employees to be first aid trained by the end of 2020, we have developed a series of voluntary first aid training programmes for our employees. These courses will be delivered by A&A Training Limited during 2015.

Target

No new cases of ill health arising from the current occupational activities and no progression of existing cases (for example, noise-induced hearing loss, hand-arm vibration syndrome, dermatitis and occupational lung disease)

Target

100% of employees to have health screening every three years, according to potential level of exposure

Target

70% of operational employees to be first aid trained by the end of 2020

16%of employees are first aid trained*

*all employees, not just operational




We want to provide a great place to work, somewhere people can thrive and where everyone is treated fairly, with dignity and respect. To this end, we have introduced a number of progressive HR strategies designed to develop, motivate and empower our employees, ensure that their efforts are recognised and enhance the diversity of our workforce.

We plan to assess our progress against our 2020 milestone to be an employer of choice through an employee survey in 2016.

Developing talentWe help our employees develop through learning and development programmes and on-the-job coaching. Investing in our employees helps them to be safe, competent and progress their careers, as well as contributing to talent retention and creating competitive advantage.

In 2014, our employees received an average of 16.5 hours of learning and development and 71% of senior vacancies were filled internally, showing the strong progress we have already made against our targets.

We have introduced a new approach to talent enablement, too, which ensures everyone is developed in a way that best fits their needs and helps them to realise their potential. This forms an important part of our policy on succession planning.

Last year, we also launched Discovery Zone, a new way of supporting on-the-job learning, and we have developed a range of new, industry-related courses through our links with universities.

Commitment

An employer of choice

2020 milestone

Achieve top 10% in the industrial sector for employee engagement and well-being in regular employer surveys

*current figure does not capture all training undertaken by employees. Data reporting to be further strengthened in 2015

Target

Support employees to engage in more than 25 hours of learning and development

Target

Fill 70% of senior vacancies through the delivery of a talent enablement programme by the end of 2020

16.5 hoursof learning and development*

71%senior vacancies filled internally


Our People


CASE STUDY: Launch of the Discovery Zone

Research has shown that on-the-job learning can have three times more impact than formal training programmes; yet most organisations are not capturing the learning value contained within employees’ day-to-day work.

The Discovery Zone enables our people to access learning in an adaptable, personalised and stimulating way. By linking back to their day-to-day work, it allows them to apply what they have learned, and to improve the way they work and what they achieve.

Through the Discovery Zone we have created ‘Academies’, where all our learning activities will sit alongside extra content developed by a network of teams and individuals.

“On-the-job learning, the foundation of the Discovery Zone, is all about helping our employees to learn more effectively and develop their skills.”

Jo Werth, Head of Talent and Development, Lafarge Tarmac

“Investing in apprentices and in ongoing development for employees throughout their careers will help us become a stronger, safer and more sustainable business.”

Gemma Koulakis, Talent Manager, Lafarge Tarmac

CASE STUDY: Back to college

Accelerating leadershipAt the Nottingham University Business School, 40 employees a year are taking part in a new Agile and Transformational Leadership Programme. With a focus on real business challenges, it has been tailored to meet the needs of both our current and future senior leaders.

Enabling leadershipWe are also an approved partner of the University of Derby, which means we can develop nationally recognised qualifications. At present, we are working with them on a University Certificate in Enabling Leadership and a degree programme to develop quarry managers.

We are committed to developing young people. We have separate development programmes for each ‘tier’ of new recruits, and each has a structured programme of on-the-job development and off-site learning. Apprentices will gain vocational qualifications to take on roles such as operatives and fitters, while higher apprentices will work towards a degree, gaining valuable industry experience at the same time. Graduate recruits can take on a variety of roles from general and supply chain management, to environmental advisors and construction specialists.

“I hadn’t considered a career within the construction industry before seeing the opportunity with Lafarge Tarmac. It appealed to me because it offered support and training, as well as practical experience and mentoring.”

Daniel Andrews, (new apprentice), Lafarge Tarmac

As part of our ongoing Leadership Programme and our commitment to develop our employees, we have created our Leadership Academy, a series of courses in partnership with two universities.



Diversity and inclusionIn 2014, we developed a diversity and inclusion roadmap and agreed to focus on four areas, with initial programmes aimed at age and gender, followed by ethnicity and disability.

Our diversity and inclusion working group tracks our programme and performance across the workplace, and supports our commitment to equal opportunities and to the importance of family life and achieving a good work–life balance.

To achieve our target we will:

• Engage with all our employees, confirming a clear commitment to diversity and inclusion in the actions we take as an employer

• Create processes, policies, plans, practices and services that meet the diverse needs of our employees

• Promote diversity and inclusion and encourage equality of opportunity through an integrated approach in all of our people policies and procedures.

In 2014, we implemented a graduate and apprenticeship programme to recruit, develop and retain young people to enhance our age diversity. Fifty-eight apprentices, 11 higher apprentices and 22 graduates were recruited in the first year, and this total of 91 represents major progress against our target of 120 recruits a year by 2020, which we expect to reach five years early.

In 2015, we will also undertake research with our female employees to develop a series of actions to help us attract, develop and retain talented women.

Age profile of employees

Target

Deliver year-on-year enhancement of the diversity of our workforce through progressive strategies embedded into HR policies

Target

Annually recruit 120 graduate trainees and apprentices, including opportunities for disadvantaged young people, by the end of 2020

91graduate trainees and apprentices recruited

“We have an ageing workforce and need to make sure that we are bringing new, young, talented people into our organisation and developing their skills to replace those who are going to be retiring.”

Paul Fleetham, Managing Director, Lafarge Tarmac Contracting

50–59: 27.5%

>60: 8.2% <30: 15.3%

30–39: 20.9%

40–49: 28.1%

Employee supportAs part of our commitment to providing our staff with an environment where they feel supported and inspired to work to the best of their ability, we have introduced a new employee assistance programme, Workplace Wellness. Workplace Wellness offers free, independent and confidential support and expert help in areas such as:

• Consumer rights and legal information

• Debt management and budgeting

• Emotional support

• Family relationships

• Health and well-being

• Work and career issues.

16.4% female employees

16.4%



Working closely with local communities – keeping people informed and creating value for them – is a vital part of being a responsible business.

We do all we can to avoid any nuisance our operations might cause local communities, while maximising the positive impacts we can have, such as creating jobs, supporting the local economy and championing community projects. This proactive relationship is also a key element in enabling us to maintain our licences to operate.

To deliver a ‘net positive’ contribution, we have developed a community involvement framework that focuses on three main themes:

• Building stronger community relationships

• Supporting education and the development of young people, and increasing employment opportunities

• Improving the local environment and nature conservation.

We have continued to encourage our employees to volunteer in local communities and, in 2015, we will be taking this further with the launch of a new employee volunteering programme. We are also putting in place systems to measure our contribution so we can report against our volunteer hours target in future years.

In 2014, we have been developing a new approach to community liaison with our Community Involvement Action Plans which will be implemented in 2015. We also became a business partner of Solutions for the Planet and launched our first Forest School.

Building stronger community relationshipsIt is important to understand the aims, interests and concerns of communities so that we can support their activities.

Our Community Involvement Action Plans are being developed to encourage a two-way dialogue with local people and include mechanisms to support major community events to help ensure consistency and maximise benefits. We are committed to rolling them out to all operational locations by the end of 2015. As part of these plans we will confirm that all sites have a mechanism for community liaison.

In 2014, we met our target by hosting more than 40 major community events at active quarry and cement operations. We will undertake a community survey in 2016 to assess the effectiveness of our approach.

We record any complaints from local communities as well as environmental incidents. In 2014, we had a total of 200 community complaints across the whole of our business. Many of these relate to issues such as dust, vibration from blasting and vehicle movements. As a responsible company, we actively encourage reporting of all incidents so that we can investigate thoroughly, review our approach and make any changes necessary to prevent recurrence.

Commitment

Net positive contribution to our communities

2020 milestone

Contribute 50,000 volunteer hours per year (one day per employee)

Target

100% of operational locations and offices to have Community Involvement Action Plans in place by the end of 2015

Target

100% of operational sites to have a mechanism for local community liaison by the end of 2015

Target

10 community events to be held at active quarry and cement operations each year

Target

Undertake a community survey every three years

40major community events

200community complaints in 2014


Community Involvement


CASE STUDY: Community events

In 2014, we hosted more than 40 major community events, including:

Panshanger Park – a public exhibition and tour of the site, attended by more than 125 members of the local community

Tunstead – numerous school, college and university visits have been hosted

Barnstone – an anniversary dinner celebrating the 150th year of the operation, attended by the local MP Ken Clarke

Langford Lowfields – a jointly hosted open day celebrating the opening of the first phase of the RSPB Nature Reserve on restored parts of the quarry.

Community investmentWe support our communities through direct and indirect investment, whether through cash donations, volunteering or the provision of materials.

For example, in 2014, we gave around £1 million directly to local community causes, with a further £2.5 million given through the Lafarge Tarmac Landfill Communities Fund. One of the projects supported was the extension to Nottinghamshire Wildlife Trust’s Skylarks Nature Reserve, which received a £48,000 donation.

Last year, we also worked with South Staffordshire Council to resurface paths at Baggeridge Country Park. We provided more than 100 tonnes of recycled material to improve accessibility and donated two grit spreaders and large quantities of salt for use during the winter.

£1mgiven directly to local community causes

£2.5mgiven through the Lafarge Tarmac

Landfill Communities Fund

CASE STUDY: Mountsorrel Railway Project

Thousands of tonnes of ballast donated from Mountsorrel Quarry have helped complete the restoration of a stretch of the historic industrial Great Central Railway, part of the local Mountsorrel Railway Project.

Up until the 1950s, the line was still being used to transport granite from the quarry, which for decades was the cornerstone of life in the area.

Project originator Steve Cramp explains: “Without the donation of materials from Lafarge Tarmac and the volunteering of the quarry shovel drivers in clearing the cutting we would never have been able to continue.”



Supporting young peopleYoung people are the lifeblood of local communities and businesses alike. By working with partner organisations such as Groundwork and The Prince’s Trust, we can help provide education and employment opportunities for a broad range of young people. For example, through our work with The Prince’s Trust Enterprise programme, more than 1,000 young people across the East Midlands were able to find out about self-employment and starting their own business, resulting in the creation of more than 250 new companies. We have also established strong relationships with universities such as Aston, Birmingham City, Coventry, Derby, Nottingham and Nottingham Trent to offer career opportunities and places on our graduate programmes.

“With the right support, we know that self-employment can be a viable option for out-of-work young people, giving them the chance to beat unemployment, create jobs for themselves and others, and make a positive contribution in their communities. We are extremely grateful for the support we receive from Lafarge Tarmac.”

John O’Reilly, Central England Director for The Prince’s Trust

Target

Establish corporate engagement programmes with universities, schools and groups working with disadvantaged young people by the end of 2014.

CASE STUDY: Mountsorrel Railway Project

Solutions for the Planet (S4TP) is a national programme that’s helping to build partnerships between young people, businesses and local communities.

In 2014, 31 Lafarge Tarmac employees volunteered to support S4TP West Midlands, working with local schools to inspire pupils and to help them develop new ideas that link business and sustainability.

We are also supporting young people through our Forest Schools programme, encouraging them to get outdoors and enjoy a whole new learning experience.

Working with the Herts and Middlesex Wildlife Trust, we opened a Forest School at Panshanger Park, the first of a network across the UK, helping us to make a real contribution to local communities, as well as engaging with schools and young people.

“S4TP is an incredible initiative because it focuses on mutual learning; we’re able to offer pupils experience that will help their future careers, while we benefit from the fresh thinking and new perspectives they bring to business challenges.”

Dr Martyn Kenny, Sustainability Director, Lafarge Tarmac

“Lafarge Tarmac understands the important role young people have to play in making our communities sustainable and is supporting them to develop new sustainable enterprises.”

Jen Baughan, Director – Solutions for the Planet



Improving the local environment and nature conservationWe have an excellent track record of leaving our sites in a better environmental condition than when we started operations. It’s part of our commitment to managing land and natural resources in a sustainable and responsible way, and making a net positive contribution to biodiversity.

We also recognise that many local communities highly value their local landscape and we involve them, as well as local wildlife groups, in our on-site activities, and support the preservation of our cultural and archaeological heritage.

We are corporate members of the RSPB and 19 local Wildlife Trusts across the UK and promote opportunities for public access by including appropriate sites on the Mineral Products Association’s National Nature Park.

View the map here


http://www.mineralproducts.org/nature_map.php



We are taking action on climate change by using a whole-life approach to design out CO2 from our products and helping our customers create sustainable, low carbon buildings and infrastructure. Find out more

Our long-standing commitment to environmental stewardship and providing a lasting legacy on our sites is enshrined in our commitment to deliver a net positive contribution to biodiversity. Find out more

We embrace the concept of the circular economy – using resources efficiently and designing out waste from every stage of the product life-cycle. Find out more

“By using waste and secondary materials from other industries as raw materials and fuels, we have become a net user of waste, beneficially using many times more waste than we produce.”

Charles Law, Managing Director Cement and Lime, Lafarge Tarmac


RECYCLING IN ACTIONSUSTAINABILITY IN ACTION

RESTORATION IN PARTNERSHIP

We have been working with the RSPB on the restoration of Langford Lowfields Reserve for more than 20 years.

ULTITREC is an inexpensive, durable and sustainable solution created from 100 percent recycled waste.


ENERGY EFFICIENCY IN ACTION

During 2014, we introduced some ground-breaking initiatives ro reduce our CO2 emissions.



IN THIS SECTION

We are implementing a comprehensive programme considering whole-life performance to design out CO2 from our products and services.

Climate Change


Environmental Stewardship

We are using the concept of a circular economy to drive the efficient use of natural resources throughout their life-cycle.

Resource Efficiency


Commitment

Design CO2 out of our products and services

23%reduction in CO2 per tonne of

product compared to 1990

Commitment

Net positive biodiversity contribution

100%of mineral extraction sites have

restoration plans

Commitment

Accelerate the transition to a circular economy

7.7million tonnes of waste and

secondary materials from other industries recycled



We are implementing a comprehensive programme considering whole-life performance to design out CO2 from our products and services.

Rising levels of greenhouse gases in the atmosphere are predicted to have significant impacts for society and the environment unless we all take action. Climate change is a global issue that affects us all. It presents challenges and opportunities for our business, our customers and the wider construction industry, which has a crucial role because the construction, maintenance and use of buildings and infrastructure account for more than half of the UK’s greenhouse gas emissions.

By taking a whole-life approach, we are working to reduce CO2 emissions from our supply chain, our operations and the transport of our goods, and are helping our customers create sustainable, low carbon buildings and infrastructure.

Reducing our footprintBy the end of 2014, we had achieved a 23% reduction in CO2 per tonne of product compared to 1990 which represents good progress towards our 2020 target of 37% reduction. Achieving our 2020 target remains a significant challenge. This year, we have employed a wide range of actions to design out CO2, including:

• Investing in efficient plant

• Increasing energy efficiency

• Using waste-derived and lower CO2 fuels

• Innovating low carbon products

• Optimising transport efficiency

• Supporting customers and end users.

Reporting carbon emissionsWe categorise our greenhouse gas emissions into ‘direct’ and ‘indirect’ sources, in line with The Greenhouse Gas Protocol:

DIRECT EMISSIONS – SCOPE 1: Carbon dioxide (CO2e) emissions that arise from the use of fuels in our operational processes

INDIRECT EMISSIONS – SCOPE 2: Carbon dioxide (CO2e) emissions that arise from the generation of the electricity we use

INDIRECT EMISSIONS – SCOPE 3: Carbon dioxide (CO2e) emissions that arise from other business-related activities

Commitment

Design CO2 out of our products and services

2020 milestone

37% reduction in CO2 per tonne of product compared to 1990

23%reduction in CO2 per tonne of

product compared to 1990

“We all use energy in our jobs and daily lives, making it all of our responsibilities to come up with ways to help reduce our consumption.”

Martin Riley, Managing Director, Aggregates and Asphalt, Lafarge Tarmac


Climate Change


Scope 2: 9%

Scope 3: 6%

Scope 1: 85%

CO2e emissions

CO2 emissions tCO2e %Scope 1 3,231,829 85

Scope 2 340,468 9

Scope 3 226,501 6

Total 3,798,798

Process emissions 55.6%

Waste-derived fuel (WDF) 5.4%

Petcoke 2.4%

Coal 13.5%

Natural gas 5.4%

Processed fuel oil (PFO) 1.8%

Electricity 9.5%

Gas oil 5.2%

Kerosene 1.0%Marine diesel 0.1%

Direct and indirect CO2e emissions by source

Source tCO2e %Process emissions 1,987,556 55.6

Coal 481,683 13.5

Electricity 340,468 9.5

Waste-derived fuel (WDF) 193,361 5.4

Natural gas 191,604 5.4

Gas oil 186,259 5.2

Petcoke 86,469 2.4

Processed fuel oil (PFO) 64,981 1.8

Kerosene 36,544 1.0

Marine diesel 2,106 0.1

LPG 1,265 0.0

Total 3,572,297

Direct and Indirect CO2e per unit of production kgCO2e/unitCrushed rock 3.05

Sand and gravel 3.65

Asphalt 26.75

RMX 1.02

Cement 758.92

Lime 983.47



Investing in efficient plantBy investing in modern, efficient plant we can reduce the CO2 emissions associated with our products and operations. In 2014, we have invested in facilities such as our Harper Lane asphalt plant.

Increasing energy efficiencyEach of our operating units has an energy efficiency target and specific action plans to increase energy efficiency. In 2014, we refocused efforts with the introduction of a new Operational Excellence programme and by further raising awareness and changing behaviours through our Re-energise campaign.

CASE STUDY: Recovering heat, creating energy

Within our Tarmac Building Products business, two sites are saving energy by diverting the pressurised steam used in manufacturing aircrete blocks from one autoclave to the next, rather than venting it to the atmosphere.

We are also investigating ways of creating our own electricity in some of our cement plants by exploring the benefits of waste heat recovery systems that capture the heat generated by the cement kilns and convert it back into electricity.

Coal 24.7%

Natural gas 17.8%

Processed fuel oil (PFO) 4.2%

Electricity 11.8%

Gas oil 11.7%

Kerosene 2.5%

Waste-derived fuel (WDF) 21.3%

Petcoke 4.5%

Marine diesel 1.4%LPG 0.1%

Energy use by source (GJ)

Source GJ %Coal 5,183,893 24.7

Electricity 2,479,841 11.8

Waste-derived fuel (WDF) 4,468,654 21.3

Natural gas 3,749,720 17.8

Gas oil 2,460,692 11.7

Petcoke 953,265 4.5

Processed fuel oil (PFO) 873,000 4.2

Kerosene 533,355 2.5

Marine diesel 286,300 1.4

LPG 21,207 0.1

Total 21,009,926



CASE STUDY: Re-energising the focus on efficiency

Our employees have a vital role to play in reducing CO2 emissions, saving energy and saving cost.

As we operate energy-intensive processes, our energy costs make up a significant part of our overall spend, so, in 2014, we launched the Re-energise campaign as part of our Operational Excellence strategy, which builds on best practices, shares knowledge across the business and promotes better process management.

We challenged each of our units to develop a bespoke action plan to reduce energy – all aimed at promoting our culture of continuous improvement, using technical knowledge and expertise with relevant lean manufacturing methods.

Energy fundamentals were introduced to highlight the key energy-saving opportunities for each type of operation. For example, Lafarge Tarmac has more than 1,000 pieces of mobile plant so, by implementing the key energy-saving opportunities in a consistent way, we can substantially reduce on-site fuel usage.

We also introduced a programme across our business to reduce electricity baseload (the minimum electricity supply required on site when we are not making products) by ensuring that plant and equipment are only running when needed, and that maintenance on energy-consuming equipment was dealt with as quickly and effectively as possible; for example, the rapid repair of leaks on compressed air systems.

CASE STUDY: Energy efficiency in action

Across our whole business we are thinking smarter about energy use and how we can use less. We use electricity to heat 241 bitumen tanks at our 74 asphalt plants and are working with Open Energi to use this electricity in smarter ways, helping to balance the National Grid, reduce CO2 emissions and reduce cost.

Equipment supplied by Open Energi enables us to optimise the bitumen tank temperatures remotely to minimise electricity consumption while maintaining the temperature needed to ensure product quality.

In addition, when demand on the National Grid increases or decreases, Open Energi can automatically adjust our bitumen tank temperatures for just a few minutes at a time, which does not affect product quality but reduces the load on the National Grid at critical times, avoiding the need to start up more power stations. It also adds further to CO2 reduction and cost savings.

Through our responsible procurement approach we are working with our suppliers to encourage them to be more CO2 efficient and to support Lafarge Tarmac in reducing CO2.



CASE STUDY: Working with our supply chain

Our procurement team works with suppliers to encourage them to support our sustainability improvements, including energy efficiency measures.

We have agreements with industrial engineering suppliers Brammer, which include site surveys to help units ensure they select the most efficient options and understand where the efficiency of equipment can be improved and energy reductions made.

We have also worked with Total, our lubricant supplier, to develop an engine oil that ensures our plant runs more efficiently.

Target

100% of sites to have ISO 50001 certification by the end of 2016

Target

Increase thermal input from waste-derived fuels in cement production to 70%, including 35% from biomass by the end of 2020

100%all cement and lime plants certified

to ISO 50001

40%of cement thermal input from

waste-derived fuels

17%of cement thermal input from

biomass fuels

Our cement and lime plants have become the first in the UK to be certified to the ISO 50001:2011 – Energy management systems standard, which requires commitment and validated improvement in energy efficiency.

It recognises a dedicated approach to the continuous improvement of our energy management processes, both as a means of reducing CO2 emissions and of generating energy savings. We are now working to apply the standard across our entire business by the end of 2015, well ahead of our 2016 target.

In our cement business we have focused on optimising the use of waste-derived and biomass fuels and, in 2014, we achieved 40 % thermal input from waste-derived fuels, of which 17% was biomass.

In addition to the use of waste-derived fuels and biomass fuels in our cement business, in 2014, we continued to convert our asphalt plants and quarry operations to lower CO2 fuels where appropriate. For example, we converted our Halecombe asphalt plant from oil to liquified petroleum gas and Cornelly and Stevenage asphalt plants to natural gas. Mountsorrell, one of our biggest quarries, was also converted from gas oil to natural gas.



CASE STUDY: Using waste-derived fuels

Cement production is an energy-intensive process traditionally using fossil fuels, coal and petroleum coke.

Using wastes from other industries as fuels (waste-derived fuels) brings multiple benefits to the sustainability of our cement operations. Using these fuel types saves on fossil fuels and conserves natural resources but also makes valuable use of waste, cuts CO2 and other emissions, and delivers value for our business and our customers.

We have focused on optimising the use of waste-derived fuels in our cement business in 2014, achieving 40% thermal input from waste-derived fuels, of which 17% was biomass. This amounted to 408,000 tonnes of waste-derived fuels in 2014.

This included waste tyres (whole or chipped), solid recovered fuel (SRF) from non-hazardous materials including paper, cardboard, plastics, textiles and wood chips, meat and bone meal (MBM), recycled liquid fuel, processed sewage pellets (PSP) and polymer chip.

Fuels such as MBM and PSP are 100% biomass and tyres, SRF and polymer chip contain a proportion of biomass. The use of fuels containing biomass makes a significant contribution to reducing CO2 emissions because biomass from waste-derived fuels is carbon neutral.

Further information about our use of waste-derived fuels can be found at:

lafargetarmac.com/tunstead

lafargetarmac.com/aberthaw-plant

lafargetarmac.com/cookstown-plant

lafargetarmac.com/cauldon-plant

lafargetarmac.com/dunbar-plant

lafargetarmac.com/barnstone-plant

In March 2014, following detailed consultation between the UK cement industry and environmental regulators such as the Environment Agency (EA), Scottish Environment Protection Agency (SEPA), Natural Resources Wales (NRW) and Northern Ireland Environment Agency (NIEA), we introduced a new Code of Practice managing the way waste-derived fuels are used in cement kilns.

The new Code of Practice confirms ‘pre-approved’ waste-derived fuel types that can be utilised in cement kilns as fossil fuel alternatives. The changes are really important as they help to reduce our reliance on fossil fuels, in turn cutting CO2 emissions and also helping to divert waste away from landfill.


http://www.lafargetarmac.com/tunstead

http://www.lafargetarmac.com/aberthaw-plant

http://www.lafargetarmac.com/cookstown-plant

http://www.lafargetarmac.com/barnstone-plant

http://www.lafargetarmac.com/dunbar-plant

http://www.lafargetarmac.com/barnstone-plant


Optimising transport efficiencyAcross our business, CO2 emissions from transport continue to be a focal point and we are putting more measures in place to meet our 2020 target. Within our Cement and Lime business, technology such as vehicle telematics, which allows the tracking of fuel efficiency and driver behaviour, has been implemented. We are also working to maximise the utilisation of our vehicles, firstly by ensuring vehicles are used day and night, and secondly by maximising payload so we can minimise the number of trips required.

Throughout 2014, we conducted a review of our rail strategy. This resulted in increasing the length and carrying capacity of our trains, investing in 100 new rail wagons and moving, approximately, an additional 1.4 million tonnes from road to rail.

Where road transport is the most suitable option, we ensure we supply from the nearest available unit, and where possible use night-time deliveries to avoid congestion, reduce vehicle idle time and improve vehicle efficiency. We are also continually upgrading our fleet and encouraging our hauliers to upgrade to the latest generation of Euro VI engines.

In 2014, we developed the processes for capturing transport emissions data and will be reporting against this target from 2015. We will also continue to work with our logistic partners, optimising transport efficiency through opportunities to increase back haul and improve our rail operations and multi modal links.

Innovating low carbon solutionsWe are continuing to develop ways to reduce the carbon footprint of our products across their whole life-cycle. Important elements of this include:

• Durability – Enhancing durability and reducing maintenance requirements reduces the whole-life carbon footprint because long-lasting products, such as Toproc and Ultilayer, need to be replaced or maintained less frequently, reducing CO2 and promoting resource efficiency.

• Recycled materials – We use recycled and secondary materials in our products to cut CO2, reduce waste going to landfill and conserve natural resources, while offering cost-effective solutions for customers.

• Reclaimed asphalt planings – We are pioneers when it comes to the use of reclaimed asphalt planings (RAP) and other recycled materials in new asphalt. In 2014, we recycled over 600,000 tonnes of old road surfacing into new asphalt products.

• Low carbon concrete – We reduce the CO2 of our cement by using carbon-neutral fuels and fuel-efficient equipment. Where the specification allows, we further lower concrete’s carbon footprint by designing it with high levels of secondary cementitious materials, such as ground granulated blast furnace slag (GGBS) from steel manufacturing or fly ash from power stations, to replace a proportion of the cement clinker. We also minimise CO2 from product miles by making the most of our network of sites across the UK.

• Lower-temperature asphalt – We have been leading work across the industry to bring lower-temperature asphalts to the market. These products use less fuel in their manufacture, reducing their carbon footprint. Find out more.

• Lower carbon cement – We have developed the UK’s largest range of low carbon cements, both packed and bulk. We work continuously to improve the cement-to-clinker ratio of all of our cement products within the framework of the British Standards, and the expectations of our customers on product performance.

For example, we recently launched Eco Phoenix, a fly ash-based pozzolanic cement with 45% cement replacement. It is particularly suited to the construction of large concrete foundations in aggressive ground conditions, and to the use of recycled aggregates, as is typical in the construction of onshore wind farms.

Target

Reduce transport CO2 per tonne by 10% by the end of 2020

5.4 kgCO2efrom transport per tonne delivered

1.4madditional tonnes delivered by

rail instead of road



CASE STUDY: Low-temperature asphalt

In 2014, we published the results of a three-year study with the Carbon Trust, which looked at ways to improve the carbon efficiency in the manufacture of road materials. The research has the potential to save the UK road industry £46 million in energy costs over the next 10 years.

The project centred on trials of a low-temperature asphalt (LTA) material, which allows mixing and working asphalt at lower temperatures, yet bonds road materials as effectively as the conventional method. As well as reducing energy costs, LTA can also cut carbon emissions by up to 39%.

In partnership with the Carbon Trust we developed and trialled a new national highways specification for the use of LTA which will help accelerate both its production and adoption.

Martin Riley, Managing Director Aggregates and Asphalt says: “This project will help unlock barriers to bring lower temperature asphalt into wider use, cutting energy use, reducing CO2 emissions and enabling us to deliver projects more quickly. As producers follow our lead and adopt this technology, there will be a growing movement to embrace LTAs as direct replacements for conventional hot asphalts.”

Supporting customers and end usersWe provide information and innovative solutions to help customers and end users create more sustainable, low carbon buildings and infrastructure. Find out more about our solutions.

Buildings and infrastructure account for more than half of the UK’s greenhouse gas emissions and a target has been set in the Government’s Industrial Strategy: Construction 2025 to reduce emissions in the built environment by 50%. We are playing our part in supporting customers to achieve this.

In 2014, we became the first construction materials supplier to sign up to the Infrastructure Carbon Review (ICR), a joint industry and Government initiative aimed at cutting 24 million tonnes of CO2 from UK infrastructure projects by 2050.

The ICR sets out a series of actions for government, clients, contractors and suppliers to reduce carbon from the construction and operation of the UK’s infrastructure assets. As part of our endorsement we have made three specific commitments:

• To design CO2 out of our products and processes

• To provide product carbon footprints for all products from all production facilities

• To provide information and tools to help customers adopt lower carbon solutions.

Key to our efforts is our Product Carbon Footprint Calculator, which allows us to provide customers with the carbon footprint of any product from any site or for a whole project. We are also supporting customers with Building Information Modelling objects and data, as well as sustainable construction guides to help them design and use more efficient solutions.

In 2015, we will launch our Environmental Product Declaration Tool designed to provide customers with further in-depth product information.

“Collaborative working has a vital role to play in delivering industry targets and, as well as reducing the carbon footprint of our own products, we are engaging early with customers to embed whole-life thinking and help them design and build more sustainable, low carbon buildings and infrastructure.”

Geoff Fawkes, Head of Business Development, Lafarge Tarmac




With 100,000 acres of land under our stewardship, we work hard to minimise the impacts of the activities at our sites and to carefully manage biodiversity and archaeological heritage. In 2014, we started to develop a new ISO 14001 – Environmental management system in readiness for the release of a revised standard in 2015.

In 2014, 100% of our mineral extraction sites had restoration management plans and many already have biodiversity management plans in place. We are developing a new approach to biodiversity, geodiversity and restoration management plans which will be launched across all our mineral extraction operations and we will report on our progress in future years. We have also have begun to contribute to an important national register of natural capital.

Commitment

Net positive biodiversity contribution

2020 milestone

100% of mineral extraction sites to have biodiversity, geodiversity and restoration management plans

100,000acres of land under our

stewardship

CASE STUDY: Corporate natural capital accounting

In 2014, we became one of four pilot organisations (United Utilities, National Trust and The Crown Estate) to support the testing of the Government’s Natural Capital Committee’s (NCC’s) corporate natural capital accounting (CNCA) framework.

The CNCA framework has been designed to help organisations take account of the natural capital they own or control and increase the long-term quality of these assets in order to halt the continuing loss of biodiversity.

Our pilot study, at Mancetter Quarry in Warwickshire, illustrated that the framework is an excellent way of being able to communicate the full value of a site to the local planning authority, community and other stakeholders. For example, the assessment, undertaken by the NCC’s consortium of consultants, showed that the value of renewable natural capital assets at the site is set to increase from £0.7 million in its current condition to more than £4.5 million after restoration.

The study also highlighted some operational efficiencies and we are currently considering how to roll out the framework across a broader range of our sites, both to support our own management plans and contribute to a new national register of natural capital.


Environmental Stewardship


Environmental managementProtecting the environment is central to our operations. Our environmental management takes place within a robust regulatory framework, including the environmental permit and planning regimes, and we consult openly and transparently with local communities about our plans.

On a site-by-site basis, we assess risks and impacts and consider factors such as the type of operation, the surrounding environment and local communities, as well as compliance with legislation and industry best practice.

Following the formation of Lafarge Tarmac we have been integrating our business and introducing consistent approaches across our operations. At the end of 2014, we had 83% of operational sites covered by certified ISO 14001 environmental management systems and are working towards achieving our target of 100% by the end of 2015.

During 2014, 95 environmental incidents were raised via our internal reporting system. Incidents related to minor spills, releases of dust and waste management. To ensure we continue to meet our high environmental standards, 2015 will see the introduction of our new corporate Environmental Management System (EMS).

The new EMS has been developed in accordance with the forthcoming ISO 14001:2015 standard, the creation of which we have been actively engaged in. We will roll it out in 2015 with ongoing staff training to improve our operational efficiency, helping to enhance consistency and identify environmental enhancement opportunities.

At our cement and lime plants we continue to invest in new pollution prevention technology and work hard to reduce emissions to the atmosphere from our processes. We have made significant reductions when compared to our year 2000 baseline. In 2014, we achieved the following reductions:

Unit Particulates Sulfur dioxide

(SO2)

Oxides of nitrogen (as NO2)

Cement Tonnes 174 1,709 5,296

kg/tonne PCe* 0.05 0.50 1.54

% reduction (compared to year 2000)

92 83 46

Lime tonnes 25 35 96

kg/tonne CaO**

0.05 0.15 0.21

% reduction (compared to year 2000)

94 93 26

*PCe – Portland cement equivalent, a standard industry normalising factor representing the tonnes of Portland cement manufactured from a tonne of cement clinker.

**CaO – quicklime

These significant improvements have been achieved through investment in new plant and the best available technology such as particulate abatement systems, a sulphur dioxide scrubber at our Dunbar cement works and Selective Non Catalytic reduction (SNCR) systems to reduce oxides of nitrogen. Our use of waste-derived fuels also helps us to reduce emissions.

Target

100% of operational sites to have ISO 14001/EMAS certification, with new acquisitions to be certified within a year

83%of operational sites certified

to ISO 14001

95environmental incidents

reported in 2014

Particulates

% reduction (compared to year 2000)Cement

92%

Sulfur dioxide (SO2)


83%



46%

Particulates

% reduction (compared to year 2000)Lime

94%

Sulfur dioxide (SO2)


93%





26%CASE STUDY: Cutting emissions at Tunstead

This year we have introduced a new Selective Non-Catalytic Reduction (SNCR) system at our Tunstead Cement Plant. It is helping us to meet a reduced emission limit value (ELV) set by the Environment Agency.

The system, which allows combustion to take place in oxidising conditions for improved clinker quality, has led to a significant reduction in NOx emissions. It has also helped to make the process more efficient by using less energy, leading to a drop in CO2 emissions from fossil fuels, while also allowing the company to remain competitive by keeping energy bills under control.

Achieving net positiveOur net positive approach is about providing a lasting legacy by enhancing the biodiversity value of our assets compared to the situation before mineral extraction began. Every mineral site we operate has a restoration plan and, by working in collaboration with regulators, wildlife bodies and community groups, and guided by our new approach to biodiversity management plans, opportunities to support, enhance and create local biodiversity are taken throughout the operational life of a site.

Our management plans identify actions and targets for priority habitats and species, along with locally important wildlife and sites of local significance. We hold The Wildlife Trusts’ Biodiversity Benchmark across two operational regions, making us an industry leader in biodiversity management standards. We have also won the Cooper-Heyman Cup on the last three occasions. Awarded by the Mineral Products Association (MPA) as part of its premier restoration awards, it honours the exceptional work that has been completed at Alrewas, Bellmoor and Ibsley Quarry in Hampshire.

Following completion of our operations, some sites are returned to their original use, such as agriculture, while others are transformed into nature reserves and wetland habitats, or the land is returned to the community for recreational use. In other circumstances, sites may be used to support local jobs through industrial or retail use or to provide much needed housing.

As well as restoration of our own sites, we also work with client and community organisations on their own conservation and enhancement, using our expertise to provide greater access to green spaces and parks, with new trails, pathways and recreational facilities.

Target

Priority mineral extraction sites to establish partnerships with biodiversity groups by the end of 2015

Target

Create and maintain priority habitats

Target

Contribute to the delivery of the UK 2020 Biodiversity strategy

Target

Support cultural heritage through proactive engagement initiatives around archaeological features on our land

100%of mineral extraction sites have

restoration plans



CASE STUDY: Restoration in partnership

We work with organisations such as the RSPB and The Wildlife Trusts in various ways, including on the direct restoration and creation of priority habitats on our site. At Langford Quarry in Nottingham, on the banks of the River Trent, we have been working with the RSPB on the progressive restoration of the site for more than 20 years. Last year, this saw the public opening of the first phase of the RSPB Langford Lowfields Reserve with newly created paths and viewing areas.

The new paths have enabled many people to visit the reserve for the first time, giving them the chance to explore a fantastic habitat famous for its birdlife while part of the site continues active operations.

We helped create large expanses of reed bed and when the restoration across the full site is complete, the unique wetland will cover around 750 hectares, making it one of the largest reed beds in the UK.

We are also working with the RSPB on restoration and habitat creation projects at our Sandy Heath Quarry, Bedfordshire and Dunbar cement plant, which has formed part of the European-wide RESTORE project

“This is a unique project, owing to the significant size of the reed bed. It is only through partnership with Lafarge Tarmac that this restoration has been made possible.”

Steve Holliday, the RSPB’s Midlands Regional Director

CASE STUDY: Cultural heritage

Our quarrying operations can often result in exciting archaeological finds which we are keen to help preserve and share with local communities. We engage archaeological consultants who manage important digs across the country, with valuable objects being discovered before they are lost to erosion or damage from agricultural practices.

At Maxey Quarry near Peterborough, for example, we have just come to the end of 16 years of work which has unearthed a wealth of artefacts and everyday objects left by the people who once lived there.

The finds include carved stones from Roman villas, evidence of an Iron Age farm and fragments of Saxon pottery and a bone comb, which will all feature in a special open day for local people and schools planned for the summer of 2015.



We are using the concept of a circular economy to drive the efficient use of natural resources throughout their life-cycle.

The circular economy, otherwise known as the closed-loop economy, can help manage the strain on the world’s finite natural resources.

It’s a way of thinking that means valuable resources remain in use, either being used for what they were originally designed for, or for something new. It replaces the old linear way of thinking, when resources are simply used and then disposed of, with one where waste is designed out from every stage of the supply chain and life-cycle.

Crucially, it is not just about reusing and recycling resources; it is about eliminating waste through superior design, and developing products which add greater durability and longevity to new structures. It is also about incorporating a collaborative approach across the supply chain, in which everyone contributes to reducing the resources over the whole life.

In 2014, we used 7.7 million tonnes of waste and secondary materials from other industries as raw materials and fuels in our manufacturing and products. This means we are making a significant contribution to tacking the UK’s waste problem and supporting the move towards a more circular economy.

We are also supporting customers by considering what we can do to help them with resource-efficient design and reducing waste during the construction, use and end of life of buildings and infrastructure.

Driving down wasteOur approach to the circular economy starts with designing out waste from our own operations. Where feasible, unavoidable waste generated by our operations is reused or recovered internally.

Different kinds of waste can be used in various ways to create secondary or recycled materials for use in our processes and products. For example, at our Tunstead cement plant we use the clay washings from the quarry, and the abatement dust from the lime plants, as raw materials. We also use waste from our operations in the creation of internal roads within quarries, or in our restoration schemes.

We are a net user of waste and, across our whole business, we sent 49,697 tonnes to landfill in 2014, but used 7.7 million tonnes of waste and secondary materials from other industries as raw materials and fuels. This means we used 154 times more of other people’s waste than we produced ourselves.

In 2014, in partnership with our waste management contractor BIFFA, we conducted a series of site waste audits to identify further recycling and cost-saving opportunities for our ‘general waste’. The audits helped confirm basic due diligence, identify scope for innovation and rationalise the waste management service provided. Sites taking part in the audits were able to show 10% improvement in recycling and landfill diversion rates during the period.

Commitment

Accelerate the transition to a circular economy

2020 milestone

Recycle more than 10 million tonnes a year of waste and secondary materials from other sectors

7.7million tonnes of waste and secondary materials from

other sectors recycled

Target

Achieve zero waste to landfill by the end of 2020

67%of waste generated has been

recovered or recycled


Resource Efficiency


Total waste generated (hazardous and non-hazardous)Tonnes %

Hazardous waste to external landfill

20,451 6.8

Non-hazardous waste to external landfill

29,296 59.5

Hazardous waste recycled 10,189 13.7

Non-hazardous waste recycled

89,583 19.6

Total waste generated 149,468 100

13.7% hazardous waste to landfill

6.8% hazardous waste recycled

59.5% non-hazardous waste recycled

19.6% non-hazardous waste to landfill

Paper: 42

Packaging wasteIn 2014, we introduced an innovative range of packed cement products in plastic tubs to support our customers’ needs. This new packaging design helps customers to transport and store the product, keeping it dry and prolonging its overall shelf life. The packaging also provides a useful container to mix the product on site and helps to reduce wastage. At the end of the job, the plastic containers can be reused or easily recycled. We’ve also introduced a pallet returns and collect scheme for major customers such as B&Q and Wickes; the pallets are returned to a central depot and collected by our pallet supplier. Since the implementation of the scheme, we have achieved an 18% return rate. In 2015, we are aiming for 25% of our pallets to be returned.

Most of our products are delivered in bulk to customers, which means we use relatively little product packaging but where packaging is required, we try to minimise it and always comply with all our legal obligations. In 2014, our total packaging obligation under the producer responsibility scheme was 2,859 tonnes, the largest components being plastic (659 tonnes) and wood (495 tonnes).

Packaging obligation (tonnes)

Steel: 1

Plastic: 659

Recovery: 228

Wood: 495General recycling: 1,435



Using waste from other sectorsRecycling construction, demolition and excavation wasteWe are supporting the move to a circular economy by investing in recycling operations. We are the UK leader in high-quality recycled aggregates, operating 44 recycling depots across the UK to process construction, demolition and excavation waste and utility trenches arisings generated by third parties. In 2014, we produced 1.8 million tonnes of recycled aggregates which was beneficially used in construction and other applications.

Our national network of recycling depots produces recycled aggregates according to the Waste and Resources Action Programme (WRAP) quality protocol. We are working with customers so that they can both deposit waste for recycling and collect recycled aggregates during one depot visit.

Using waste in cement manufacturingWe use high levels of waste and by-products from other industrial processes as raw materials and fuels in our cement making processes. In 2014, we utilised 408,000 tonnes of fuel derived from waste. This included waste tyres (whole or chipped), solid recovered fuel (SRF) from non-hazardous materials including paper, cardboard, plastics, textiles and wood chips, meat and bone meal (MBM), recycled liquid fuel, processed sewage pellets (PSP) and polymer chip.

Using waste and secondary materials in concrete and asphaltOur target is to increase the proportion of recycled and secondary aggregates used in our readymix concrete to 25% and in our asphalt solutions to 20% by the end of 2020. Work on this target has continued during 2014 by investing in new plant and identifying suitable sources of recycled aggregates, with the technical and sustainability performance needed.

Where the specification allows, we also optimise the recycled content of our concrete products by using high levels of secondary cementitious materials like ground granulated blast furnace slag (GGBS) or fly ash to replace a proportion of the cement used. In 2014, we supported the transformation of the Olympic Stadium post 2012, supplying around 10,000m3 of readymix concrete with up 25% secondary aggregate content.

We are leading the way in recycling old road surfaces into new asphalt products and have made significant investment installing RAP dryers and converting asphalt plants so that they can use recycled asphalt planings (RAP). The new equipment allows us to increase our use of RAP in asphalt mixes, which has significant sustainability benefits. Recycling asphalt into new material for road surfacing reduces embodied carbon and prevents waste from going to landfill. It also enables us to reuse bitumen which helps us to ensure that we are making efficient use of materials, and preserving natural resources (in the form of fossil fuels). In 2014, we reused over 605,000 tonnes of old road surfaces in new asphalt products and achieved 16% replacement.

In addition to the contribution to a circular economy, using wastes and secondary materials also contributes significantly to reducing the carbon footprint of our cements, concretes and asphalts.

Target

Increase the mass of recycled and secondary aggregates used in readymix concrete to 25% and in asphalt to 20% by the end of 2020

16%recycled and secondary

aggregates used in asphalt



CASE STUDY: Recycling in action

Ultitrec is an inexpensive, durable and sustainable solution created from 100% recycled waste, which has been carefully selected, crushed and graded.

In 2014, one of its many specifications was as a new footpath through a memorial garden on Merseyside. Due to the sensitive nature of the site, a non-manufactured-looking pathway that could still withstand heavy foot traffic was needed.

We also supplied 7,500 tonnes of Ultiglass, a recycled glass sand, which was used as a drainage material on major road improvements on the A11 in East Anglia.

As well as gaining approval from the Highways Agency for use as a replacement for primary sand products, contractor Balfour Beatty has now made the product its preferred choice for constructing similar narrow filter drains.

CASE STUDY: Recycling

We are increasing the amount of recycled materials we use in our products across the whole business.

Last year, for instance, we recycled around 1.5 million tonnes of old road surface, utilising over 605,000 tonnes within new asphalt solutions.

We are also using increasing quantities of crushed glass to replace virgin aggregates in products such as screeds and building blocks. In 2014, we used 38 tonnes of cleaned and crushed glass, and we are now looking at ways of reusing crushed concrete in some of our products, too, diverting it from landfill and supporting our commitment to a closed-loop economy.

Whole-life thinkingIn addition to minimising our waste and maximising the use of wastes from other industries we use as raw materials and fuels, we are contributing to a circular economy model by innovating more durable products, which require minimal maintenance and using technology to facilitate the efficient design of buildings and infrastructure. We are also exploring how design solutions can be used so that components can be reused or recycled more readily, for example, through the use of Building Information Modelling (BIM) and by embedding electronic chips into building components. Collaborative working across the supply chain will be key, so we are building links with like-minded organisations to further understand the systems changes needed to move to a circular economy. Find out more here.



Conserving waterAs fresh water becomes scarcer, due to population growth and low rainfall, we have set ourselves ambitious water-reduction targets that will deliver tangible environmental and business benefits.

As a water-intensive industry, we have an obligation to closely manage the amount of potable and abstracted water we use, both in manufacturing our products and also in the day-to-day running of the business, from washing down vehicles and plant, to rinsing aggregates.

In 2014, we established a working group to review the management of water across the business and to identify potential risks and opportunities for ongoing improvement. We will begin to roll out water management plans across all operational units in 2015.

Target

Reduce water use (abstracted and mains) per unit of production by 25% by the end of 2020

Target

100% of operational sites to have risk-based water management plans and water inventories by the end of 2015

1,737,026 m3

mains water 2014 benchmark

abstracted water to be reported in 2015

CASE STUDY: Saving water at Mangreen

One of the biggest challenges at our Mangreen Quarry in Norfolk has been water management. The East Anglian site is in one of the driest places in the country, with intense pressure on natural water resources.

Since we began operations in 2011, we have built on existing good practice by introducing a series of measures centred on recapture, recycling and storage, which have taken water management to a whole new level.

Water from a central lagoon is pumped to the processing plant where it is used to wash extracted sand and gravel before a sophisticated de-watering screen separates as much water as possible from the aggregates before they go to stockpile. This water, along with any run-off or site drainage, is recaptured into a central sump where it is further filtered before being recirculated in the system.

Sophisticated monitoring equipment, which examines flows and losses, has also been installed and to date it is estimated that more than 1.3 million cubic metres have been saved, with the site using just 180,000 cubic metres compared to other sites of a similar size

CASE STUDY: New wash-out system boosts efficiency

In 2014, we became the first company in the sector to specify an innovative, integrated wash-out system as standard on all our new readymix concrete trucks.

The integrated system, developed with McPhee Mixers, works by separating solids from wastewater, with the debris contained within an enclosed trough. Hauliers are then able to wash down their pan shoots on site and transport wastewater and excess concrete safely to be recycled.

The wash-out system has already been fitted on to the company’s latest order of 30 new mixer trucks, and will be specified as standard going forward.



PERFORMANCEONLY BY OPERATING PROFESSIONALLY AND ETHICALLY CAN WE BUILD A BUSINESS THAT CREATES LONG-TERM VALUE AND IS CAPABLE OF DEVELOPING INNOVATIVE SUSTAINABLE CONSTRUCTION SOLUTIONS

Creating economic value ensures the continued growth and profitability of our business, and allows us to invest in our employees and product innovation. Find out more

We are dedicated to the highest standards of governance and ethics, placing trust, integrity and honesty at the heart of the way we do business. Find out more

Clear and transparent communications ensure our stakeholders understand our business, what we are doing, if it affects them and how they can raise issues or concerns. Find out more

“Some still think sustainability adds cost but I would argue it’s about managing business risk and growing a successful business which creates value long term. Throughout our journey we relate sustainability to the bottom line and integrate it into ‘business as usual’.”



INVESTING IN NEW PLANT


AN INVESTMENT FOR THE FUTURE

We implemented our Code of Conduct establishing a clear set of standards and behaviours for how we do business.

We are investing millions of pounds in upgrading and future-proofing our plants and factories.


2014 MAJOR ACQUISITIONS

Last year, we strengthened the business with two major acquisitions.



IN THIS SECTION


Economic Value

We are committed to ensuring a strong culture of governance, ethics and integrity is embedded in our corporate culture.

Governance and Ethics

Clear and transparent communications are essential for keeping our stakeholders informed and connected.

Communication


Commitment

Create sustainable economic value

2major acquisitions, Tarmac

Building Products and Euromix

Commitment

Uphold highest corporate governance and ethical standards

100%compliance with Code of Conduct

Commitment

Be the preferred choice for sustainable construction solutions

5Sustainable Construction Solution Guides launched




It is only by creating economic value that we can continue to fulfil our responsibilities to our stakeholders, as well as develop initiatives such as low carbon technologies, energy-efficient plants and new, innovative products.

We create economic value in a number of ways:

• By providing jobs and career opportunities

• Through the taxes and levies to the Government

• By helping to create value for our communities, customers, suppliers and investors

• Through the new homes, offices and infrastructure created from our products.

Our 2014 performanceIn 2014, in only our second year as a new company and during a time of significant change, we exceeded our financial performance targets. We also strengthened the business with a number of key acquisitions, while investing millions of pounds upgrading and future-proofing our plants and factories.

2014 has seen a significant improvement in the financial performance for Lafarge Tarmac with revenue of £1,961 million (2013: £1,685 million).

While an improvement in the UK economic environment and lower costs have been key contributors, volumes across the majority of the Group’s business units have increased. In addition, the integration of the two businesses has resulted in strong synergies being delivered during 2014.

After the formation of Lafarge Tarmac in January 2013, significant integration, restructuring and redundancy activities were performed resulting in exceptional costs of £65 million. During 2014, these exceptional costs have reduced to £7 million.

In April 2014, Lafarge Tarmac acquired Tarmac Building Products (TBP). TBP is a good fit with the existing Lafarge Tarmac business and this is expected to unlock greater value in the future.

Early external factors in 2015 indicate a strong economy and Lafarge Tarmac is well positioned for growth and improved financial performance in 2015.

Commitment

Create sustainable economic value

2020 milestone

Invest in future construction solutions

Target

Report to stakeholders on the sustainable economic value created

Target

Continue to grow our business

“Our 2014 performance has seen us go from strength to strength and sends positive signals for the future.”

Guy Young, CFO, Lafarge Tarmac


Economic Value


CASE STUDY: 2014 major acquisitions

Last year, we strengthened the business with two major acquisitions.

We acquired Tarmac Building Products, a leading supplier of heavy building materials, including construction blocks, mortars, screeds, packed aggregates and cement products. Operating from 47 locations and with around 800 employees, the move will particularly support us as we look at new opportunities in the house-building sector.

We also acquired Euromix Concrete, with its six readymix concrete plants and fleet of concrete mixer trucks, in a move that safeguarded 75 jobs. With its strong reputation for quality and customer service, the deal reinforced our growth strategy and increased the range of solutions we can offer our customers.

Tax contributionWe believe that the overall economic contribution generated as a result of our operations should fairly reflect the balance of the risks and rewards of responsible investment and development. The taxes and other payments collected by governments form an important part of this equation.

On the issue of taxation, our contribution goes significantly beyond the corporate income tax paid by a company on its profits. It is essential to understand a company’s total tax footprint, which will include many taxes from corporate income tax and aggregates levy to payroll taxes and VAT.

The taxes borne by the business amounted to over £118 million in 2014. Taxes collected by the Group and remitted to government, including payroll taxes, VAT and similar taxes, amounted to over £182 million, giving a total tax footprint for the year of about £300 million.

The distinction made here between the taxes that are borne by the business and those that are collected and remitted to government is an important one; although only those taxes that are borne are a cost to the business, and therefore directly impact on the earnings, those that we collect form an important part of the revenues generated by our operations, and are often higher than the taxes borne.

In 2014, we only paid a small amount of corporation tax but instead made our contribution through other taxes. In this case, we paid £36.9 million in Group relief to our shareholders as they surrendered losses to us to relieve our tax liability.

Investing in future construction solutionsIn 2014, we began forming collaborative partnerships with a range of universities and research institutions, including University of Nottingham, University of Hertfordshire, University of Birmingham, Loughborough University, Cardiff University and Herriot Watt University, to develop future construction solutions. Find out more about our solutions.

We also launched a range of sustainable construction solutions and published the results of a three-year study with the Carbon Trust, which looked at ways to improve the carbon efficiency of the manufacture of road materials through the use of low-temperature asphalt technology.



The building blocks for successDuring 2014, we’ve worked hard to promote a continuous improvement culture utilising the technical knowledge and expertise from around our business to produce our Ultimate Manufacturing programme. The programme identified best practice for manufacturing across business units and provides tools, training and support for operational teams to optimise production performance, manage costs and ensure production efficiency. This work will continue to be rolled out during 2015 under the Optimise 15/15 programme.

We’ve also focused on our interface with customers, launching our Commercial Excellence programme and working with customer-facing sales teams. This programme focuses on the needs of our customers, the solutions we offer and a review of the sales process, together with a detailed training programme to upskill our customer-facing sales teams.

Target

Implement operational and commercial excellence

CASE STUDY: Investing in new plant

We are investing millions of pounds in upgrading and future-proofing our plants and factories.

For example, at our Harper Lane site near St. Albans we have invested more than £6 million in a modern, efficient asphalt plant.

The plant is next to a major rail hub, which means it can receive most of the raw materials it needs by train, reducing the number of vehicle movements to the site and helping to reduce our overall carbon footprint further.

The site will also become a recycling hub, and will use 40% reclaimed asphalt planings (RAP) in the mix for new products. This is twice as much as the existing plant and means using less new bitumen and virgin quarried materials, too.

There will also be a new 1,000 tonne storage facility, which will allow longer production runs to be grouped together, making the plant more efficient and requiring less downtime for cleaning.



We are committed to ensuring a strong culture of governance, ethics and integrity is embedded into our corporate culture. It helps us to maintain our licence to operate.

We have bolstered the ethical way in which we operate over the past 12 months with a new Anti-Bribery and Corruption Policy, and an updated Code of Conduct, which clearly defines the high standards we expect from both our employees and those working on our behalf. During the year we maintained 100% compliance with our Code of Conduct and our Anti-Bribery and Corruption Policy.

We have also re-launched our confidential ‘Speak Up’ service that allows staff to report any issues across the business they feel compromises our ethical stance.

Compliance is a basic principle underlying all our policies and we have a robust reporting structure, with risk management assessments, audits, reviews and reporting. All our employees receive the training they need to carry out their roles professionally and in line with our values and policies.

Free and fair competitionWe have adopted strong and uncompromising policies around bribery and corruption, including gifts and hospitality, that apply equally to our employees and to our suppliers. In 2014, we further strengthened this and met our target by implementing a new Anti-Bribery and Corruption Policy which was supported by staff training across the business.

Our Competition Law Compliance handbook ensures employees understand their responsibility to uphold the highest standards, and also encourages them to be vigilant in preventing fraud and corrupt business practices.

Risk managementOur strategy on sustainability helps us to manage risk around issues such as climate change, adaptation and disruptive technologies. We assess risk in terms of its impact on achieving our strategic and performance objectives, and meeting legal and regulatory compliance.

We use business risk assessments, prepared at business unit, function and corporate levels on a quarterly basis, as a framework for identifying and assessing key risks. The corporate level risk assessments are then reviewed, checked and challenged by our senior management team and Audit Committee to ensure that risks are well understood and that appropriate strategic risk mitigation actions are in place.

Training and ethicsAll our employees, and those acting on our behalf, receive appropriate training and updates on any new rules and regulations that may affect their role.

Commitment

Uphold the highest corporate governance and ethical standards

2020 milestone

Continue to achieve 100% compliance with Lafarge Tarmac’s code of conduct and competition compliance programme

“Our Code of Conduct requires that we all play our part in creating a business that we are proud to work for and that continues to make a positive contribution to the UK’s social and economic well-being.”

Fiona Penhallurick, General Counsel and Company Secretary, Lafarge Tarmac

Target

Implement Anti-Bribery Act policy and training by the end of 2014

Target

Review and challenge of risk performance by Audit Committee

Target

Further development of operational risk register


Governance and Ethics


CASE STUDY: Code of Conduct

Our Code of Conduct establishes a clear set of standards and behaviours, and translates our vision and values into a well-defined guide to how we do business, both as a company and as individuals in our day-to-day work. The Code also covers our supply chain, and compliance is a prerequisite for doing business with us.

‘Speak Up’ serviceWe have achieved our target by developing and communicating a new confidential service called ‘Speak Up’ which allows all employees, contractors, hauliers and suppliers to report anonymously any concerns they may have about non-compliance with our Code of Conduct, or any unethical practices within the business.

Sustainability governanceOur sustainability strategy forms an integral part of our business vision and is central to the long-term success of our business. We have defined our strategy, priorities and targets, and have processes to govern their implementation and report on progress. We believe that everyone has a role to play and a responsibility to continuously improve the sustainability performance of our business. Our approach is to embed sustainability into everything we do and our sustainability governance hierarchy helps us to do this.

Our Executive Committee is responsible for the setting and delivery of the strategy, with actions and programmes delegated to Business Units and Functions. Each member of the Executive Committee has a personal goal linked to our sustainability strategy.

We regularly measure, report and review our progress, and undertake audits to ensure a robust performance. The Executive Committee reviews progress against our sustainability commitments on a quarterly basis. We undertake a formal annual review of our strategy, working with our External Sustainability Panel, to ensure its continuing appropriateness and high level of ambition.

Target

Promote a confidential ‘Speak Up’ service for employees, contractors, suppliers and customers

EXCOMSets company vision.

Defines company values and behaviours

EXCOMSets long-term strategy. Establishes key

priorities and commitments to deliver a sustainable business

DIRECTOR/HEAD OF DEPARTMENTDefines programme and actions to be

taken by Business Unit/Function to deliver the strategy

LINE MANAGEMENTDefines programme and actions required at a

local or personal level

LINE MANAGEMENTEnsures regular monitoring/review and action to achieve sustainability targets

SUSTAINABILITY TEAMProvides annual report on performance, and

supporting business improvement

VISION AND VALUES

SUSTAINABILITY STRATEGY

BUSINESS UNIT/ FUNCTION ACTION PLANS

SITE-SPECIFIC ACTION PLANS

MONITORING AND STRATEGIC REVIEW

REPORTING PERFORMANCE

PERSONAL OBJECTIVES

INTERNAL/EXTERNAL AUDIT

EXTE

RNAL

SUS

TAIN

ABIL

ITY

PANE

L



Clear and transparent communications are essential for keeping our stakeholders informed and connected with our business. We are constantly developing new ways to communicate with them.

In 2014, we created a series of microsites designed to keep local communities informed about operations going on near them, while internally we launched Altogether, a new quarterly employee magazine. Alongside this, we developed a new intranet site and a programme of communications aimed at further embedding sustainability in the business.

This year, we launched our first sustainability photography competition as a way of further encouraging employees to become involved with the company’s sustainability strategy. This winning entry of a golden-ringed dragonfly resting on quarried gritstone was taken by Michael Cardus, Unit Manager at Dry Rigg Quarry, North Yorkshire.

Commitment

Be recognised as the preferred choice for sustainable construction solutions

2020 milestone

Communicate performance through an independently verified, Global Reporting Initiative-compliant sustainability report


Communication


Increasing use of social mediaAs a continuation of our existing programme of published and online media activity, 2014 saw the launch of unified corporate social and digital media channels including Twitter, LinkedIn and YouTube. These channels are focused on supporting and driving engagement with a wide range of stakeholders on key issues aligned to our business and sustainability strategies.

In addition to this activity, we have listened to feedback from our local stakeholders and have rolled out local, site-specific Twitter feeds and microsites. These channels form part of our wider local stakeholder involvement activities and help to promote direct engagement and enable more effective ongoing dialogue with communities. We will continue the roll-out of these for strategic sites during 2015.

How we reportWhen reporting on sustainability, we align with good practice reporting guidelines such as the Global Reporting Initiative. We provide regular updates on our progress towards meeting our sustainability strategy, key priorities and targets. In 2014 we have delivered against our target early by complying with the Global Reporting Initiative’s G4 Sustainability Reporting Guidelines in this report – well ahead of our 2015/16 target.

We have established an External Sustainability Panel to guide and challenge us on our sustainability performance, which met three times in 2014.

Public policyBeing a responsible business includes being an informed and active participant in the development of public policies that affect our company, markets and the communities in which we operate. We embrace constructive engagement with EU government, regulators and trade bodies. We do not make donations or payments to politicians, elected officials or public servants.

Target

Use social, online and other media to promote engagement with stakeholders by the end of 2014

Target

Implement independently verified reporting against new Global Reporting Initiative guidelines (GRI4) by 2015/16

Target

Lafarge Tarmac’s External Sustainability Panel to provide guidance and to challenge us on our performance

Engaging with customers and communitiesKeeping people informed about our activities and building understanding through newsletters, open days and consultations is an essential part of showing respect and being a good neighbour. Find out more about our community engagement.

CASE STUDY: Microsites for cement plants

We are using IT to keep local communities well informed, too. Each of our six cement plants now has its own microsite, featuring regular updates on the ways in which they are supporting local communities. Alongside company news, there are also details about the latest job opportunities and specific information about open days.



CASE STUDY: Engaging employees with the sale

In June 2014, our shareholders announced their intention to sell Lafarge Tarmac with the exception of Cauldon and Cookstown cement works.

A communications strategy was developed to keep employees informed about the sale. Core to this has been a monthly home mailing to every employee from CEO Cyrille Ragoucy, detailing the latest information on the sale. A video and infographics have also been produced, along with dedicated sections of our intranet and Vault4me.com containing updates and Q&As. Existing communications, such as our employee magazine and team briefing, have also been used for updates on the sale.

Engaging with employeesIn 2014, we launched a set of new communications channels to promote employee engagement. These included a new employee magazine called Altogether, Vault which is our company intranet and Talking Point, a new monthly team briefing delivered face to face by team leaders and designed to encourage dialogue and feedback on company, business unit and local issues.

As a Google company, we have embraced Google Communities to encourage feedback, discussion and user-generated contents through a range of company, site and issues-based communities. Feedback is also encouraged through a regular poll on our intranet, which gauges employee opinion on current news and topics within the company.

With a number of employees working in operational environments without access to the intranet, and without company email addresses, it was essential to set in place means of communicating directly with these colleagues. Vault4me.com was launched as a ‘lite’ version of our intranet, which can be accessed without restriction from any device. We also offered employees without company email addresses the opportunity to opt into having updates sent to their personal email addresses or mobile phones.

We are engaging with employees to help them further understand our vision and sustainability commitments and to engage in what it means to be a truly sustainable company. In 2014, we have launched a video, infographic and presentations to support this understanding.

This was followed up at a functional and business unit level with employee engagement activities to support local sustainability action planning. Members of our Executive Committee were filmed talking about the specific targets to be delivered by their business units and how employees can help deliver them.

To support our leaders and managers with delivering consistent and effective employee communications, we have also launched a communications toolkit.

“We’re keen that everyone has the opportunity to see and discuss the video and infographic, which summarise our commitments. Importantly we want teams to think about what sustainability means for them and tell us what they’re already doing to support our move to be a sustainable construction solutions provider – and not simply a materials supplier.”

Andy Corrigan, Director of Communications, Lafarge Tarmac




We are committed to procuring all our goods and services responsibly. Find out more

We are innovating new construction solutions and using robust quality systems to ensure product performance. Find out more

Through close collaboration we are supporting customers to adopt whole-life solutions that deliver a positive contribution to a sustainable built environment. Find out more

“By adopting a whole-life approach we are providing innovative construction solutions that help our customers create a sustainable built environment.”

Jeremy Greenwood, Managing Director, Readymix Concrete, Lafarge Tarmac


BUILDING INFORMATION MODELLING (BIM)


A SUSTAINABLE SUPPLY CHAIN

Supplier relationship management (SRM) is one way we work with our suppliers to manage risk and develop new and innovative products.

We are the first company in our sector to launch specific Building Information Modelling (BIM) objects for readymix concrete.


TURNING THE TIDE

The Environment Agency and North Tyneside Council specified our innovative TBlocks solution to rebuild the seawall along the coast near Whitley Bay.



IN THIS SECTION

We are working to procure all goods and services responsibly and partnering with our supply chain to help improve sustainability performance.


We are developing the next-generation of sustainable solutions and are committed to meeting our customers’ quality performance needs.


We are helping to create a sustainable built environment by providing solutions to help customers deliver sustainable, efficient buildings and infrastructure.



Commitment

Responsibly procure all goods and services

100%Products certified ‘Very good’ or

‘Excellent’ to BES 6001

Commitment

Develop next-generation sustainable solutions

1st

In sector with BIM objects

Commitment

Enable customers to use innovative solutions to create a sustainable built environment

3,000Product carbon footprints

to customers



We are working to procure all goods and services responsibly and partnering with our supply chain to help improve sustainability performance.

We have introduced a new approach to procurement excellence which is focused on six priorities.

As part of our responsible supply chain strategy, in 2014, we developed a new Responsible Procurement Policy, while aligning our procurement procedures and processes to BS 8903, the framework standard for sustainable procurement. Both of these will help to manage any potential risk within our supply chain and give our customers confidence.

Demonstrating responsible sourcingTo help us demonstrate to customers that our products are responsibly sourced, our product range has been independently certified against the industry-recognised responsible sourcing standard BES 6001. In 2014, all of our products were rated as ‘very good’ or ‘excellent’ and we are on track to achieve our target for all products to be rated as ‘excellent’ by the end of 2016.

We are also accredited as an organisation to the independently assessed Achilles Building Confidence scheme. This accreditation standard is used by the UK construction industry to help secure new business and we have achieved a five star rating from the scheme.

Commitment

Responsibly procure all goods and services

Target

Achieve BES 6001 responsible sourcing certification with an ‘excellent’ rating by the end of 2016

“Our supply chain has an important role to play in helping us deliver our sustainability strategy.”

Tony Roberts, Director of Procurement, Lafarge Tarmac

2020 milestone

Ensure supply chain partners are selected against responsible and ethical sourcing criteria using the principles of BS 8903


Sustainable Supply Chain


Working in partnershipWe collaborate with our customers and our suppliers to develop new ways of working that make operations more efficient and help them to meet their own sustainability targets.

Through our membership of the Supply Chain Sustainability School we have continued to help suppliers within the construction industry embed sustainability into their operations.

We also work with suppliers so that they can help us achieve our sustainability objectives.

CASE STUDY: Supply Chain Sustainability School partner

As a key strategic partner of the Supply Chain Sustainability School, we supported the launch of a new infrastructure sustainability resource for the industry with the aim of creating a greater understanding of sustainability across construction and infrastructure supply chains. As well as increasing awareness of sustainability, the new resource is also set to raise demand for training and learning.

As part of our engagement with suppliers, in June 2015, we will be holding our first Supply Chain Day. It will be an important opportunity to confirm our sustainability commitments to our suppliers, our expectations and the important role they can play in helping us to support our customers in delivering more sustainable solutions.

CASE STUDY: Collaboration brings new oil efficiencies

As part of being our customers’ preferred choice for sustainable construction solutions, we look to collaborate with suppliers to deliver innovative solutions that enhance our business.

Last year, we worked alongside our lubricants provider Total to help deliver increased engine efficiencies and fuel burn in our heavy mobile equipment fleet.

Total had developed an engine oil specifically tailored to the demands of quarry operations and challenging engineering environments. We trialled the oil at our largest quarry site Mountsorrel, and it proved to be a huge success. Average fuel burn per hour was reduced by 12.5% and we are now rolling it out across all our business units.

“We want to do things correctly, we want to do things the right way and the ethical way.”

Mark Joel, Managing Director, Lafarge Tarmac



Target

Adopt principles of BS 8903 framework for procuring sustainably within the Lafarge Tarmac procurement processes

16%of high-risk suppliers accredited to

a supply chain scheme

“Working alone can only achieve so much, and closer collaboration and sharing of ideas will help us to embed sustainability and encourage continuous improvement across our supply chain.”


CASE STUDY: Building a trusted supply chain

Supplier relationship management (SRM) is a way in which we work with our suppliers to manage risk and develop new and innovative products.

Our supply chain is made up of trusted partners who understand there are set requirements to working with us, which include accepting the conditions of our Code of Conduct and agreeing to be independently verified through certification schemes.

We have aligned the business to two such schemes:

PICS – Supported by the Mineral Products Association, this sets out an industry-focused, pre-qualification questionnaire and desktop audit of suppliers to ensure they meet minimum requirements.

Achilles Building Confidence – This accreditation standard is used by the UK construction industry to look at a range of supplier performance factors, from employment law, management systems and environmental issues, through to safety and health, transport, and the training and competence of employees.

Responsibly sourced, sustainably manufacturedEach year, we spend more than £1.8 billion on products and services and, while value for money is important, we also need to know that the materials we use have been produced legally and ethically, as well as understanding their environmental impacts and encouraging continuous sustainability improvement. We are therefore adopting the principles of BS 8903 framework for procuring sustainably within the Lafarge Tarmac procurement processes.

As part of this policy, our procurement team is working with category managers across the business who are responsible for buying a wide variety of products. They are assessing all products purchased to identify those materials we are buying that are higher-risk commodities and target work with our suppliers to manage this risk and encourage continuous improvement.

In 2015, we will be introducing a new Responsible Procurement Policy which includes a requirement for suppliers to be accredited to PICS or Achilles Building Confidence to help us manage supply chain risk. As part of our approach to responsible procurement, we are also using supplier relationship management to build a trusted supply chain to manage risk and innovate new products and services.

This approach will allow us to meet our commitments that 100% of suppliers in high-risk categories will be accredited to a recognised supply chain scheme by the end of 2016, and 100% of in-scope suppliers by the end of 2020.

Target

100% of suppliers in high-risk categories to be accredited to a recognised supply chain scheme by the end of 2016

Target

100% of in-scope suppliers to be accredited to a recognised supply chain scheme by the end of 2020



We are developing next-generation sustainable solutions and meeting our customers’ quality performance needs.

We are committed to exploring how different construction methods and materials can enhance the sustainable properties of major infrastructure, from residential buildings to offices or schools. The aim is to gain a better understanding of how construction materials could perform in the built environment of the future, and how these properties could be manipulated or developed for the best sustainable outcomes.

In 2014, we established a number of key programmes with universities and research institutions to develop new sustainable construction solutions.

As product quality is a cornerstone of good sustainability performance, we operate robust quality management systems certified to ISO 9001 across our business so customers can be confident that they are made with the utmost consideration for quality.

Academic excellence and industry collaborationBy collaborating with universities and research bodies, we are also developing a network of Centres of Research Excellence to help ensure that innovative and cutting-edge thinking remains a key asset within the business.

We also work on innovative new ideas with some of the UK’s leading universities, including University of Nottingham, University of Hertfordshire, University of Birmingham, Loughborough University, Cardiff University and Herriot Watt University, matching our business acumen and industry knowledge with their academic excellence to develop some ground-breaking ideas and also new thinking around sustainability and the built environment.

Commitment

Develop next-generation sustainable solutions

2020 milestone

Establish Lafarge Tarmac centres of excellence with universities and research bodies

Target

Form Lafarge Tarmac Centres of Research Excellence

CASE STUDY: Supporting sustainable living

We are working with the Centre for Sustainable Communities at the University of Hertfordshire on a major project looking at sustainable living, and whether many of the sustainable features that are built into homes and communities are being used to their full potential. The study is focusing on the design of sustainable places to live, moving away from fossil fuel dependence and supporting sustainable transport choices. It is also looking at ways of improving urban resilience to climate change, and the results will support us as we develop a new generation of sustainable products.


Innovation and Quality


Lower-temperature asphaltWe have been leading work across the industry to bring lower temperature asphalts to the market. These products use less fuel in their manufacture, reducing their carbon footprint.

Developing sustainable communitiesIn addition to our work with the University of Hertfordshire Sustainable Living Partnership, in 2015, we will take our passion for innovation to the next level with the construction of our own zero carbon housing concept, the Waterford Hamel Project in Hertfordshire.

CASE STUDY: Low-temperature asphalt

In 2014, we published the results of a three-year study with the Carbon Trust, which looked at ways to improve the carbon efficiency in the manufacture of road materials. The research has the potential to save the UK road industry £46 million in energy costs over the next 10 years.

The project centred on trials of a low-temperature asphalt (LTA) material, which allows mixing and working asphalt at lower temperatures, yet bonds road materials as effectively as the conventional method. As well as reducing energy costs, LTA can also cut carbon emissions by up to 39%.

In partnership with the Carbon Trust we developed and trialled a new national highways specification for the use of LTA which will help accelerate both its production and adoption.

Martin Riley, Managing Director Aggregates and Asphalt says: “This project will help unlock barriers to bring lower-temperature asphalt into wider use, cutting energy use, reducing CO2 emissions and enabling us to deliver projects more quickly. As producers follow our lead and adopt this technology, there will be a growing movement to embrace LTAs as direct replacements for conventional hot asphalts.”

CASE STUDY: Waterford Hamel project

The Waterford Hamel project is the scalable development of eight homes capable of near-zero energy bills. The development is a blueprint for how the housing industry can meet Government requirements that all new homes are zero carbon from 2016.

The houses will all be built from concrete, with its unique insulating properties, meaning the buildings will be able to regulate their own internal temperature, without the need for energy-consuming central heating or air conditioning.

The concrete floors, walls and ceilings act like storage radiators, absorbing the sun’s heat and releasing it into the room as and when it is needed.

“It is important to consider the energy efficiency and carbon footprint of any building over the course of its lifetime. The embodied CO2 of materials make up just a small proportion of the CO2 emitted during the whole life of a building.”

Dr Martyn Kenny, Sustainability Director, Lafarge Tarmac

Target

Contribute to the development of sustainable communities by undertaking showcase projects using Lafarge Tarmac innovation, expertise or land assets



Using technologyAlongside sustainable construction products, we are constantly investigating new services and ways of delivering information which can help customers to meet their own sustainability targets. It is innovative developments such as Building Information Modelling (BIM) that can help to give the business an important competitive advantage. Find out more about BIM.

Carbon capture technologyCarbon capture is a key technology for tackling climate change. Although it is likely to be some years before it can be applied economically to cement or lime manufacturing processes, we are actively supporting the development of carbon capture and storage or use (CCS/U) and the role it could play in future CO2 management for the industry through a number of research projects.

In 2014, we supported the Government in developing a 2050 carbon roadmap for the cement sector. This work built on the Mineral Products Association cement roadmap and sets out the available technologies, and the policy and technology developments, which will be needed to support Government climate change targets. We are working with the Government to develop joint actions which are likely to involve further development of CCS/U technology.

QualityProduct quality is a cornerstone of good sustainability performance – it’s one of the reasons our customers rely on Lafarge Tarmac and trust us with their projects. We are committed to delivering on our customers’ quality requirements and our products are founded on robust quality management systems, expert technical knowledge and commercial understanding of end-markets and legislation.

Employee expertiseOur experienced and knowledgeable experts understand the technical issues our customers face and focus on ensuring our customers continue to receive high-quality, sustainable products. We train our employees and invest in ongoing professional development to deliver on our commitment to product quality.

CASE STUDY: IT digital transformation programme

In 2014, we launched Digital Transformation, a major business change programme to implement the next generation of IT infrastructure services, while also supporting our commitment to sustainability.

Traditional Windows-based laptop and desktop computers are being replaced with Chromebook and Chromebox devices, which don’t have moving parts like hard disk drives and fans, making them more energy efficient.

Storing files in the cloud means that employees can access information while they are on the move or in meetings with customers. The fact that Android smartphones have a large 5-inch screen, and Chromebooks start up in less than 8 seconds, means there’s no longer a need to take printed copies of product documentation.

In addition, more than 500 printers/photocopiers are being replaced with more efficient multi-function devices, driving down wasted paper and ink by as much as 30%.

The need to travel is also being driven down by making low-cost video conferencing available to all by using Google Hangouts technology, along with a growing number of ‘enabled’ meeting rooms and 2,000 Android smartphones.

Target

Support the development of carbon capture technology

Target

100% of operational sites to have ISO 9001 certification, with new acquisitions to be certified within a year

83%of our operations certified

to ISO 9001



Recognised standards, processes and systemsWe operate robust quality management systems certified to ISO 9001 across our business, providing stringent guidelines, an auditable process and data that gives additional reassurance to our clients. In 2014, 83% of our operations certified to ISO 9001. In 2015, sites not currently covered by a certified ISO 9001 management system will be subject to independent audit and certification to ensure 100% coverage by the year end.

Complaints handling and resolutionWhere we do experience any issues, we seek continuously to improve our performance and aim to resolve the issues quickly and satisfactorily. Our documented corrective action system feeds into our Quality Scheme Review.

CASE STUDY: BRMCA award in customer service

Strong communications, alongside an excellent product and skilled engineers, were behind our success at 2014’s British Ready-mixed Concrete Association awards (BRMCA).

We won an Excellence in Customer Service Award for our work at Gatwick Airport, a challenging project where noise, exhaust emissions and vibration had to be kept to an absolute minimum.

To help make sure we met all the customer’s requirements, we worked in closely with the project engineer, and ensured there were regular discussions around issues such as the forward planning of logistics and working methods.

Due to the fluidity of our self-compacting concrete, the work was completed in just four hours, less than half the time it would typically have taken. This also meant there was no need for mechanical vibration and power floating, which ensured disruption at the terminal was almost non-existent.



We are helping to create a sustainable built environment by providing solutions and information to help customers deliver efficient buildings and infrastructure.

To help our customers understand our solutions and their attributes throughout the whole life-cycle of their use within the built environment, we classify our solutions within four categories: In built, In construction, In use and In support.

Commitment

Enable customers to use innovative solutions to create a sustainable built environment

In builtThe actions described elsewhere in this report highlight the significant focus and progress being made to build sustainability into our business and solutions. These include ensuring our raw materials are responsibly sourced, protecting the environment and enhancing biodiversity through excellent site stewardship, and reducing carbon, water and waste, while increasing recycled contents and improving transport efficiency.

We work closely with our customers to develop products and solutions that add value and enhance whole-life performance on the projects they are developing. A current example is Eco Phoenix, a blended cement that contains more than 40% siliceous fly ash, which is a secondary material. As well as a lower carbon footprint, this product has additional performance benefits such as certified low heat of hydration, and minimised risk of early-age and thermal cracking.

In constructionOur solutions can make a significant contribution to improving the sustainability of the construction process, for example making it safer and quicker, requiring less material, generating less waste or requiring less equipment.

2020 milestone

Provide industry-leading guidance and solutions that optimise whole-life performance

Image courtesy of BIM Technologies

IN BUILT We are continuously improving the sustainable performance of both our business and our products.

IN CONSTRUCTION Whether it’s being safer, faster to use, or more flexible, the way in which our products perform during construction is an important element of our commitment to sustainability.

IN USE How our products perform once they have been installed is a crucial part of their life-cycle and can have a huge impact on the sustainability of a building.

IN SUPPORT We set out to supply our customers with the information, tools and services they need to achieve sustainable outcomes.


Sustainable Construction


CASE STUDY: First-class development at London Bridge Station

Our contract at Network Rail’s £400 million redevelopment of London Bridge station allowed us to demonstrate the way in which innovation can lead to more sustainable construction.

The shape of the columns and complex steel reinforcement meant that there was the possibility that air could become trapped against the formwork, a problem that was overcome during the construction process by using our self-compacting concrete.

The new design features exposed concrete within the main concourse, including highly visual concrete columns, which needed a smooth, defect-free finish. To achieve this, we developed a mix containing ground granulated to provide an enhanced finish while still maintaining a high CEEQUAL (sustainability) rating.

CASE STUDY: Delivering sustainable drainage solutions

We delivered a permeable readymix concrete pavement at a new Next store in High Wycombe, which, at 2,500m2, proved to be the largest in the UK.

A sustainable, hard-wearing drainage solution was needed for the parking area that was free-draining to avoid standing water and overloading the local drainage system.

In useThis vitally important area is about how our products can improve sustainability during the in-use phase of a building or asset. Solutions include enhancing durability, reducing maintenance, using the thermal mass benefits of concrete to deliver substantial energy and carbon saving over its life or developing permeable paving solutions for use in Sustainable Urban Drainage Systems.

We also develop solutions for the end-of-life phase and use the concept of a circular economy to move away from the traditional ‘take–make–dispose’ model to one where building components are kept in valuable use.

“By getting involved early in the decision-making process of projects we can use our expertise to help customers select the most sustainable solution and provide support services to deliver a more sustainable outcome.”

Mark Joel, Managing Director Tarmac Building Products, Lafarge Tarmac



CASE STUDY: Turning the tide

The Environment Agency and North Tyneside Council specified our innovative TBlocks solution to rebuild the seawall along the coast near Whitley Bay.

The system is designed to be flexible and can be cast in a number of different shapes, textures, colours and sizes to meet design, aesthetic and technical requirements. And, once in position, it requires little ongoing maintenance.

The system also helped to minimise the impact on the landscape, with the wall’s footprint taking up just two metres of the popular beach rather than the nine metres that other solutions would have needed.

Despite difficult weather conditions, the ease in which the TBlocks’ modular build system can be installed helped the project to finish on budget and a week ahead of schedule.

In supportThe information, services and tools we provide can have a significant benefit in helping customers design and build more sustainably. Some examples of new services launched in 2014 include product carbon footprints, data for Building Information Modelling (BIM) product carbon footprints and our sustainable construction solution guides.

Building Information Modelling (BIM)Building Information Modelling (BIM) enables the more effective management of information linked to a built asset, be it a building or an element of infrastructure.

The UK Government has mandated from 2016 that all of their new construction projects must be BIM compliant.

Over the next few years, BIM is likely to become the single industry approach to construction. Many are already recognising the significant cost and efficiency savings it offers. These benefits derive from improved access to information and increased supply chain collaboration, including early-stage design efficiency, modelling of whole-life sustainability performance, traceability of components, product maintenance data and end-of-life scenarios and opportunities.

We are leading the way by being the first company in our sector to launch specific BIM objects for readymix concrete, and we are working with the UK BIM Task Group to define data requirements for construction products.

“Our BIM objects are giving clients additional information to specify materials that improve efficiency and contribute to the whole-life sustainability performance of buildings.”

Jeremy Greenwood, Managing Director Readymix, Lafarge Tarmac

Target

Develop Building Information Modelling (BIM) objects and information to support customer needs and to meet the Government’s 2016 targets



CASE STUDY: Building Information Modelling (BIM)

We are the first company in our sector to launch specific BIM objects for readymix concrete.

The objects are used in conjunction with our self-compacting, decorative and low-shrink flooring concrete, and allow architects and engineers to upload precise electronic information on a product and incorporate this directly into a 3D modelling tool. This real-life representation can then be used to support the design of more sustainable and efficient buildings.

BIM also allows access to technical information, certification and performance data to help users understand how individual products will look and perform in situ. This improves efficiency, aesthetics and sustainability, while reducing risk, waste and construction time by helping contractors to plan and avoid scheduling clash.

The technology can also be used to capture Environmental Product Declarations (EPD), carbon footprint and responsible sourcing information, along with links to technical and application information.

Carbon footprint calculatorWith an increasing number of customers asking for carbon footprint information, we have developed a comprehensive carbon footprint calculator for our products and, in 2014, we launched an upgraded system. It enables us to measure carbon in everything from the raw materials we use, to the energy used in manufacturing and transport in accordance with PAS 2050, a specification for assessing the life-cycle of greenhouse gas emissions of goods and services.

With the majority of emissions from the built environment coming from the ‘in use’ phase, it can also help us to calculate the carbon footprint of a whole project and help our customers to manage carbon in their supply chain.

Following on from the success of the calculator, in 2015, we aim to launch our environmental product declaration (EPD) tool, providing customers with life-cycle analysis (LCA) information for our product range in a clear and standardised format. It will consider a number of different indicators including embodied carbon, raw material use and toxicity.

The EPDs will be compliant with EN 15804 and will support our customers in making an informed decision about the products they buy.

Target

Launch Lafarge Tarmac’s product carbon calculator, with 100% of our products having carbon footprints by the end of 2014

Target

Generate Environmental Product Declarations for key products by the end of 2015



CASE STUDY: Building roads, cutting carbon

The importance of cutting carbon to our sustainability strategy proved to be a key factor in winning a major contract to work with Costain on the £104 million Heysham to M6 link road in Lancashire.

As part of the tender, companies were asked to help reduce the project’s carbon footprint, a caveat that fitted perfectly with our commitment to carbon monitoring.

Costain were particularly impressed by our ability to report on the CO2 equivalent figures for all materials supplied to the project, a cradle-to-site approach that supported the target of reducing embodied carbon emissions by 20%.

We also supplied Costain with a monthly carbon tracking service, capturing carbon data that showed both waste reduction and environmental benefits, as well as the cost savings in reducing the carbon footprint of materials.

Sustainable Construction Solution GuidesWe believe that a sustainable built environment consists of buildings and infrastructure that have, through their design, considered their effect on the economy, the environment and society; and in response have been designed to mitigate these effects at every stage of their life. Our Sustainable Construction Solution Guides enable these buildings and infrastructure assets to be constructed.

Our guides encompass all parts of our business and provide an improved understanding of how the products that we produce can be used to deliver a better and more sustainable built environment.

Each guide is focused on a specific construction application, demonstrating the role it can play in delivering sustainability benefits to our customers. The guides are designed to detail how, through early project engagement, our customers can benefit from the expertise and improvements our solutions offer in production, in construction, in use and at the end of design life. Examples include creating vaulted concrete ceilings, sustainable urban drainage, using decorative concrete and installing underfloor heating.

Find out more on our solution guides.

Target

Create five Sustainable Construction Solution Guides per annum to enable customers to deliver more sustainable outcomes


http://www.lafargetarmac.com/solution-guides

sustainability report 2014 - tarmacsustainability supply chain 63 innovation and quality 66...

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