PEOPLE | PLANET | PERFORMANCE | SOLUTIONS

SUSTAINABILITY STRATEGY

ourselves challenging commitments and 2020 milestones, which take us beyond incremental improvements to business transforming solutions. We have a credible strategy to achieve these targets. Our new strategy emphasises the importance of adopting a whole life approach and embedding sustainability into everything we do, from the goods we purchase, our operations and logistics but also the performance of our products in use and their reuse and recycling at the end of their life. Achieving our 2020 milestones will be challenging and it will need the commitment and support of all our employees, contractors, suppliers, customers, communities and investors. I’m confident that we’ll continue to grow and evolve to meet the challenges ahead and I’ll certainly keep you updated on our progress towards delivery of our commitments.

WELCOME TO OUR SUSTAINABILITY STRATEGY

This strategy marks an important milestone for Lafarge Tarmac in our transformation to becoming our customers’ preferred choice for sustainable construction solutions.

I believe sustainability is essential for the prosperity and well-being of society, our customers, the communities in which we operate and the long-term success of our business.

The world is changing, bringing a host of challenges for society and our business, including a growing population, increasing life expectancy, a changing climate, energy security challenges, pressure on resources and urban development. The Government’s Industrial Strategy: Construction 2025 confirms that wider environmental considerations will transform what we build in the future, what we build it with and how we build it. As a leader in the UK construction sector Lafarge Tarmac is set to play its part.

That’s why sustainability must be at the heart of our business and embedded in everything we do. To guide us on our journey, we established an External Sustainability Panel, chaired by Lord Glentoran, to provide expert advice and challenge. By working with the Panel and other stakeholders, we have identified the key sustainability priorities for our business. We have set

THINK AGAIN, OUR COMMITMENT TO FUTURE GENERATIONS

Cyrille RagoucyChief Executive Officer, Lafarge Tarmac

‘Think Again’, is about re-thinking every aspect of our business to achieve our vision to be our customers’ preferred choice for sustainable construction solutions. Our transformational sustainability strategy is an integral part of this thinking.

WELCOME

CONTENTS

EXTERNAL SUSTAINABILITY PANEL

TRANSFORMING OUR BUSINESS

OUR VISION

OUR SUSTAINABILITY STRATEGY

PEOPLE- Safety and health- Our people- Community involvement

PLANET- Climate change- Environmental stewardship- Resource efficiency

PERFORMANCE- Economic value- Governance and ethics- Communication

SOLUTIONS- Sustainable supply chain- Innovation and quality- Sustainable construction

DELIVERING THE STRATEGY

MATERIALITY

STRATEGY SUMMARY

FINAL MESSAGE

CONTENTS2

3

5

7

8

10

13

21

29

37

44

45

46

47

Front cover image: Artevia Concrete, Sainsbury Laboratory, Cambridge University

As the Lafarge Tarmac External Sustainability Panel, our mission is to provide advice and guidance, and to serve as “critical friends” of the company as it undergoes the transformation described in this document.

We have been working with Lafarge Tarmac since its formation in early 2013. It is commendable that the company, recognising the centrality of sustainability to its development, took early action to establish our role.

Since that time, we have had a rich and fruitful dialogue with the Chief Executive and members of his senior team. We have probed and challenged the company on many fronts. In particular, we have urged that sustainability be built into all aspects of the business plan.

We have been listened to. We have been deeply impressed by the way in which the Chief Executive and his team have responded to us. Sustainability is built into the vision of the company and is a common thread in the values framework. A great deal has been achieved.

This sustainability strategy has been one topic in our dialogue with the company. We are pleased to see that there are commitments, and that it addresses different aspects of sustainability appropriately, given the company’s operations. We applaud the company for identifying priorities - choices must be made – and for setting targets covering the next five years or so. What has proved more difficult is the setting of targets in a longer timeframe; there is also more to be done in building a shared understanding of “sustainable construction solutions”. Both are areas we wish to work on together in the coming year.

We are pleased to have contributed to this early, but important, stage and look forward to the next.

Lafarge Tarmac External Sustainability Panel

Lafarge Tarmac has established an External Sustainability Panel, chaired by Lord Glentoran, to advise and challenge the business on its sustainability strategy and performance. Panel members provide expert knowledge spanning the wide range of sustainability issues that are most important to Lafarge Tarmac and its stakeholders.

EXTERNAL SUSTAINABILITY PANEL

5

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 AllianceLord Glentoran CBE (Panel Chair)

Shaun McCarthy OBE, Director, Action Sustainability

Construction products have an invaluable role to play in achieving sustainable development. They are used to create homes, schools, hospitals, workplaces and infrastructure, which are essential for social and economic well-being. Along with the many positive benefits, there are impacts from their manufacture and use.

As a major provider of construction products, services and solutions, with over 300 sites across the UK, 6,600 employees, thousands of customers and hundreds of communities, we recognise our responsibility to grow our business in a way that’s good for people and the environment. We are proud of what we have achieved, but there is much more to be done.

120 quarries

read

ymix

plan

ts

3.4 million m readymix

production

22 contracting depots

resp

onsib

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ourc

ing

BES

600118 marine wharves

5

2 lim

e pl

ants

£2 billion turnover

74 a

spha

lt pl

ants

6,60

0em

ploy

ees

ISO 14001

44 recycling

45 mt aggregate production

1,700

flee

t ve

hicl

es

15,000 customers

7 mt asphalt production

cement plants

operations

We have established a vision and values to transform our business into our customers’ preferred choice for sustainable construction solutions. Achieving this transformation means thinking again about every aspect of our business, products and services; pushing the boundaries to develop innovative solutions, which help our customers create more sustainable buildings and infrastructure.

Continuously improving sustainability performance throughout the life-cycle of our products and services, including how they perform in-use, is integral to achieving this transformation.

Our ambitious sustainability strategy sets out how we will do this by focusing on the things

that really matter and those we can influence.

TRANSFORMING OUR BUSINESS

7

3

66,000 acres of land99

CEMENT | LIME | AGGREGATES | READYMIX CONCRETE | ASPHALT | CONTRACTING | RECYCLING SERVICES | BUILDING PRODUCTS

“To be our customers’ preferred choice for sustainable

construction solutions.”

OUR VISION

Customer

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

Sustainable

Embedding sustainability into our business, by working to continuously improve the environmental,

social and economic performance of our products and services, throughout their life cycle

Solutions

Supporting 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 values are at the heart of our business, integral to everything we do

Safe

We always put safety and health first

Committed to our customers

We commit to delivering value for our customers every day

Passionate about success

We are passionate about our business, set ambitious targets and drive to exceed them

Fast and flexible

We act with an appropriate balance of speed and rigour

One team

We are all one team

Trust and respect

We extend and earn trust and respect

9

CEMENT LIME AGGREGATES READYMIX CONCRETE ASPHALT CONTRACTING RECYCLING SERVICES BUILDING PRODUCTS CEMENT LIME AGGREGATES READYMIX CONCRETE ASPHALT CONTRACTING RECYCLING SERVICES

Using this ‘whole life’ thinking we have engaged with our stakeholders to develop our sustainability strategy. The strategy defines the main sustainability themes and our key priorities, those issues which are most important to our business and our stakeholders. It sets out our commitments to transform our business under four main themes: People, Planet, Performance and Solutions.

Building on progress already made, we have set ambitious 2020 milestone targets for each of our key priorities. These ambitious targets have been set to take us beyond incremental improvement programmes to business transforming solutions. Our 2020 milestones are supported by a range of other performance targets.

Sustainability is about securing long-term success for our business, customers and communities by improving the environmental, social and economic performance of our products and solutions through their life-cycle. This means considering not only the goods we purchase, our operations and logistics but also the performance of our products in use and their reuse and recycling at the end of their life. By doing this, we can understand and take action to minimise any negative aspects, while maximising the many positive sustainability benefits our business and products bring.

OUR SUSTAINABILITY STRATEGY

FOUR THEMESTwelve key priorities

Forty four other performance targets

Twelve commitmentsTwelve 2020 milestones

This hierarchy helps make it easier to build understanding, drive improvement and enables us to report progress in a meaningful and measurable way.

Lafarge Tarmac acquired Tarmac Building Products Limited in April 2014. Some of the targets within this strategy will be updated to take account of this new acquisition.

PEOPLE

SOLUTIONS

Safety and health Our people Community involvement

PERFORMANCE

Economic value Governance and ethics Communication

PLANET

Climate change Environmental stewardship Resource efficiency

Sustainable supply chain Innovation and quality Sustainable construction

11

“Keeping people safe and healthy is of paramount importance to us. We also recognise that our long-term success depends on our ability to

attract and develop a talented and diverse workforce and build strong relationships with our communities”.

Serge Colin, Group Human Resources Director

PEOPLE

13

SAFETY AND HEALTH

VULNERABLE ROAD USERSWe are championing the use of a single standard for construction logistics in the industry. Leading the way with early adoption of safety equipment, training and operating standards to protect vulnerable road users.

PEOPLE

Protecting the safety, health and well-being of our employees, contractors and those around us is the core value of our business. We work in potentially hazardous environments so it’s important that everyone understands how to go about their jobs safely.

Our role is zero harm to anyone working for, or with, Lafarge Tarmac. Creating a consistent, proactive safety culture through engagement, training and behaviour change, will support us in achieving our goal. We are passionate that all tasks are done safely and through measurement and learning we can continuously improve our performance. Everyone working at Lafarge Tarmac is expected to work in a safe, responsible manner and to challenge unsafe behaviour.

2020MILESTONE

100% of operational sites to have OHSAS 18001

certification by end 2015

100% of Lafarge Tarmac liveried fleet to have equipment in line

with new nationally agreed standards to protect vulnerable

road users by end 2015

70% of operational employees to be ‘first aid’

trained by end 2020

ACHIEVE ZERO HARM

No new cases of ill health arising due to current occupational activities

and no progression of existing cases (noise induced hearing loss, hand-arm

vibration syndrome, dermatitis and occupational lung disease)

Reduce Lost Time Injury Frequency Rate (LTIFR) and All Injury Frequency Rate (AIFR) by 20% each year from 2013

(this includes employees, contractors & hauliers)

PEOPLE

COMMITMENTZERO HARM

15

100% of employees to have health screening according to potential level of exposure -

at least every 3 years

100% of sites to have independent cross-business

safety and health audits every 3 years

SAFETY IN ACTIONCookstown Cement Plant, County Tyrone

OUR PEOPLE

INVESTING IN YOUNG PEOPLE We provided 40 apprentice placements in 2013 and are partnering with the University of Derby to deliver an Honours Degree programme to develop quarry managers for the future.

We are focused on being an employer of choice by providing a great place to work, with a culture that promotes equal opportunities for all and encourages flexibility and innovation. By fostering a fair culture and a supportive working environment, everyone can feel involved, respected and connected. This is reinforced through frequent, open and honest communication with employees and listening to their views.

We want to attract and retain a motivated, talented and diverse workforce and believe this is vital for the long-term success of our business and customers. We aim to enable everyone to realise their full potential through learning, development and progression and our business is committed to supporting young people into the workplace through graduate and apprenticeship programmes.

Deliver year on year enhancement in the diversity

of our workforce through progressive strategies

embedded into HR processes

Annually recruit 120 graduate trainees and apprentices,

including opportunities for disadvantaged young people by end 2020

Fill 70% of senior vacancies internally through delivery

of a talent enablement programme by end 2020

Support employees to engage in over 25 hours of learning and development

PEOPLEPEOPLE

COMMITMENTAN EMPLOYER

OF CHOICE

17

ACHIEVE TOP 10% IN THE INDUSTRIAL

SECTOR FOR EMPLOYEE ENGAGEMENT AND

WELL-BEING IN REGULAR EMPLOYEE

SURVEYS

2020MILESTONE

EMPLOYEE DIALOGUECauldon Cement Works, Stoke-On-Trent Staffordshire

COMMUNITY INVOLVEMENT

COMMUNITY SUPPORT In one of our many community projects, through our community fund, Thrislington Quarry provided a £10,000 grant to a performing arts group supporting hundreds of young people in the former mining community of Ferryhill, County Durham.

Lafarge Tarmac is a large employer, connected to communities in many ways. As an integral and long-standing member of our local communities our commitment is to make a positive contribution to them. Our operations provide economic benefit through jobs, taxes and the goods and services we buy. We also contribute positively through our involvement in and support of community programmes and local projects, especially those involving education, young people and the environment.

Conducting our operations in a considerate and responsible way at all times is the basis of being a good neighbour. We will seek to build trust and understanding through open communication, collaboration, listening to positive and challenging feedback and hosting site visits, open days, exhibitions and liaison groups.

Establish corporate engagement programmes with universities, schools and groups working with

disadvantaged young people by end 2014

100% of operational sites to have a mechanism for local community liaison

by end 2015

Undertake a community survey every 3 years

10 community events to be held at active quarry and

cement operations each year

100% of operational locations and offices to have community

engagement plans in place by end 2015

PEOPLEPEOPLE

COMMITMENTNET POSITIVE

CONTRIBUTION TO OUR COMMUNITIES

19

CONTRIBUTE 50,000 VOLUNTEER HOURS

PER YEAR (ONE DAY

PER EMPLOYEE)

2020MILESTONE

COMMUNITY ENGAGEMENT EVENTMountsorrel Quarry open day, Leicestershire

“Our products, services and solutions are needed to build and maintain homes, schools, workplaces, roads and the utility services we all rely on in

our daily lives. It is important we meet this demand in a responsible way, by helping to tackle climate change, using resources efficiently and making

a positive contribution through the stewardship of our sites.”

Dr Martyn Kenny, Sustainability Director

PLANET

21

CLIMATE CHANGE

WASTE-DERIVED FUELS PROGRAMMEIn 2013 we conserved natural resources, reduced waste to landfill, CO2 and other emissions by using 150,000 tonnes of waste-derived fuel in place of fossil fuels.

Climate change is a global issue but one that affects us all and one that we all have a responsibility and role in addressing. Lafarge Tarmac is responding by taking action across the whole of its business and product life cycle.

Buildings and infrastructure account for over 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 percent. As well as reducing the carbon footprint of our products, we provide solutions to help customers design and build more sustainable, low carbon buildings and infrastructure. By using whole life thinking, our solutions can also reduce the need for maintenance and support the re-use and recycling of materials at the end of their life.

We have set ourselves tough targets to deliver on our long term commitment to design out CO2 from our products and services. This means raising awareness and changing behaviours within our company and with suppliers, customers and stakeholders. It means investing in energy efficiency, designing for durability, using renewable energy sources like biomass, innovating low carbon products and optimising the distribution of our goods.

100% of sites to have ISO 50001 certification

by end 2016

Reduce transport CO2

per tonne by 10% by end 2020

Increase thermal input from waste-derived fuels in cement

to 70%, including 35% from biomass by end 2020

PEOPLEPLANET

COMMITMENTDESIGN CO2 OUT OF

OUR PRODUCTS AND SERVICES

23

37% REDUCTION IN CO2 PER TONNE OF

PRODUCT COMPARED TO 1990 (i.e.15%

COMPARED TO 2013)

2020MILESTONE

CEMENT KILN MAINTENANCE WORKS Cookstown Cement Plant, County Tyrone

ENVIRONMENTAL STEWARDSHIP

MPA RESTORATION AWARDS 2013 – IBSLEY QUARRYLafarge Tarmac was awarded the coveted Cooper-Heyman cup for outstanding restoration in partnership with the community at Ibsley Quarry, Hampshire.

With 66,000 acres of land under our stewardship, we recognise our duty to manage these assets responsibly and to ensure positive outcomes for our business, the community and future generations. Providing a lasting legacy is enshrined within our commitment to deliver a net positive contribution to biodiversity.

As part of our long-standing commitment to environmental stewardship at our sites, we shall continue to manage our impacts on air, water, land and local communities. Every quarry has a restoration plan and by working in collaboration with regulators, wildlife bodies and community groups, we are able to deliver high quality restoration, while promoting biodiversity and respecting archaeological heritage.

By working with stakeholders and local government, our sites are often returned to their original use but where circumstances allow, we create nature reserves, wetland habitats or the land might be returned to the community for amenity or recreational use. In other circumstances, our sites may be used to support local jobs through industrial or retail use or to provide much needed housing.Guided by our Biodiversity Management Plans opportunities to support, enhance and create local biodiversity are taken throughout the operational life of a site, as well as during restoration.

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

within a year

Priority mineral extraction sites to establish partnerships with

biodiversity groups by end 2015

Create and maintain priority habitats

Contribute to delivery of the UK 2020 Biodiversity strategy

Support cultural heritage through proactive engagement initiatives around archaeological

features on our land

PLANET

COMMITMENTNET POSITIVE BIODIVERSITY

CONTRIBUTION

25

100% OF MINERAL EXTRACTION SITES

TO HAVE BIODIVERSITY, GEODIVERSITY

AND RESTORATION MANAGEMENT PLANS

2020MILESTONE

RESTORATIONTunstead Cement and Lime, Buxton, Derbyshire

RESOURCE EFFICIENCY

RECYCLED ASPHALT PLANINGSRecycling old roads into new asphalt for road surfacing is helping to reduce embodied carbon, prevent waste from going to landfill and conserve natural resources.

We have an important role to play in meeting society’s demand for our products, services and solutions, while ensuring that our resources are used in the most efficient and sustainable way. To do this we have adopted the concept of the circular economy which focuses on designing out waste from every stage of the product life cycle and extending its useful life.

Our strategy to accelerate the transition to a circular economy means eliminating waste from our operations, recycling materials from other industries (as raw materials and fuels) and developing sustainable opportunities to conserve water. We will also support the transition by extending the life of the things built with our products through enhanced durability, designing for re-use and facilitating recycling into new products.

Increase the mass of recycled and secondary aggregates used in

ready-mixed concrete to 25% and in asphalt to 20% by end 2020

100% of operational sites to have risk based water

management plans and water inventories by end 2015

Achieve zero waste to landfill by end 2020

PLANET

COMMITMENTACCELERATE THE

TRANSITION TO A CIRCULAR ECONOMY

27

RECYCLE OVER 10 MILLION TONNES A YEAR OF WASTE AND SECONDARY MATERIALS FROM OTHER SECTORS

2020MILESTONE

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

by end 2020

ROAD PLANING Lafarge Tarmac Contracting

“By transforming our business into a sustainable construction solutions provider and upholding the highest standards of governance and ethics,

we can create the best value for our customers, employees, communities and investors”.

Guy Young, Chief Financial Officer

PERFORMANCE

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ECONOMIC VALUE

INVESTING IN THE FUTUREOur turnover is around £2 billion, allowing us to continue to invest in people, new plant equipment and improving our sustainability performance.

PERFORMANCE

Financial success is essential for operating a sustainable business, one that can continue to invest in employees, low carbon technologies, more energy efficient plant and product innovation. Creating economic value enables our business to fulfil its responsibilities to customers, employees, suppliers, communities, authorities and investors.

We create economic value by providing direct employment and work for contractors, by purchasing goods and services and through the taxes we contribute. The homes, workplaces and infrastructure produced using our products also create economic value for society. Our vision focuses our business on contributing further to this by innovating new construction solutions to help our customers build more sustainably, efficiently and profitably.

Implement Operational/Commercial Excellence

Programmes

COMMITMENTCREATE SUSTAINABLE

ECONOMIC VALUE

31

INVEST IN FUTURE CONSTRUCTION

SOLUTIONS

2020MILESTONE

Report to stakeholders on the sustainable economic

value created

Continue to grow our business

LAFARGE TARMAC CONCRETELiverpool One Shopping Centre, Liverpool

GOVERNANCE AND ETHICS

GOOD GOVERNANCEIn 2013 we launched a new Competition Law Compliance handbook and training programme to ensure employees are aware of their responsibilities and uphold the highest standards.

A strong culture of corporate governance, compliance and business ethics is essential to operate a sustainable, successful business. Lafarge Tarmac works to leading international corporate governance standards and we conduct our business dealings in a transparent and accountable way. Acting with trust, integrity and honesty are integral to the way we do business and we expect everyone working with or for our business to uphold the highest ethical and professional standards at all times.

At Lafarge Tarmac, nothing is more important than doing the right thing. Compliance with the law is a basic principle underlying all our policies. All employees and those acting on our behalf are appropriately trained and expected to embrace our values, behaviours, policies and work in a professional and ethical way. We have a robust reporting structure, with risk management assessments, audit and reporting to ensure compliance.

Promote a confidential ‘Speak Up’ service for

employees, contractors, suppliers and customers.

PERFORMANCE

COMMITMENTUPHOLD THE HIGHEST

CORPORATE GOVERNANCE AND

ETHICAL STANDARDS

33

CONTINUE TO ACHIEVE 100% COMPLIANCE WITH

LAFARGE TARMAC’S CODE OF CONDUCT AND

COMPETITION COMPLIANCE PROGRAMME

2020MILESTONE

Implement Bribery Act policy and training by

end 2014

Further development of operational

risk register

Review and challenge of risk performance by Audit committee

PORTLAND HOUSELafarge Tarmac Head Office, Solihull

COMMUNICATION

SPREADING THE WORD We have launched a new employee magazine, intranet, careers site and company website (www.lafargetarmac.com). These provide a great platform for communicating with our employees, customers and communities.

It is important that our many stakeholders understand and feel informed about our business and the contribution it makes through clear, concise and accurate communication. We will do this by using a wide range of internal and external channels, including social media.

When reporting on sustainability, we will align with good practice reporting guidelines such as the Global Reporting Initiative. We will regularly report and provide updates on our progress towards meeting our sustainability strategy, our key priorities and our targets. We will also ensure up-to-date sustainability performance information is available for independent review and verification, as required.

Use social, online and other media to

promote engagement with stakeholders

by end 2014

Implement independently verified reporting against new

Global Reporting Initiative guidelines (GRI4) by 2015/16

Lafarge Tarmac External Sustainability Panel to provide guidance and

challenge on performance

PERFORMANCE

COMMITMENTBE RECOGNISED AS THE

PREFERRED CHOICE FOR SUSTAINABLE CONSTRUCTION

SOLUTIONS

35

COMMUNICATE PERFORMANCE THROUGH

AN INDEPENDENTLY VERIFIED, GLOBAL

REPORTING INITIATIVE COMPLIANT

SUSTAINABILITY REPORT

2020MILESTONE

“We adopt a whole life approach to provide innovative construction products, services and solutions that support our customers’ needs and

contribute positively to the development of sustainable communities and a low carbon built environment.”

Susan Room, Group Marketing and Commercial Director

SOLUTIONS

37

SUSTAINABLE SUPPLY CHAIN

CORPORATE SOCIAL RESPONSIBILITY - WINNEROur commitment to sustainability, approach to procurement and ability to translate this into real value for our customers was recognised at the 2013 Procurement Leaders Awards when we won the CSR leaders award.

Lafarge Tarmac spends over £1.5 billion each year on products and services, so it is important to ensure they are sourced, manufactured and traded legally, ethically and with careful consideration of their environmental, social and economic impacts.

Our supply chain is essential in supporting the delivery of our ambitious sustainability targets. We therefore seek to form close partnerships with trusted companies that operate in a way consistent with our values, are committed to continuous improvement and will support us in delivering our goals. Our commitment to responsibly procure all our goods and services and to monitor performance through independent audit and certification helps us to minimise supply chain risk for our customers and their clients and meet their demand for responsibly sourced products.

Achieve BES 6001 responsible sourcing certification with

‘Excellent’ rating by end 2016

100% of suppliers in ‘high risk’ categories to be accredited to

a recognised supply chain scheme by end 2016

100% of in scope suppliers to be accredited to a

recognised supply chain scheme by end 2020

Adopt the principles of BS 8903 Framework for procuring sustainably

within the Lafarge Tarmac procurement processes

SOLUTIONS

COMMITMENTRESPONSIBLY

PROCURE ALL GOODS AND SERVICES

39

ENSURE SUPPLY CHAIN PARTNERS ARE

SELECTED AGAINST RESPONSIBLE AND

ETHICAL SOURCING CRITERIA USING THE

PRINCIPLES OF BS 8903

2020MILESTONE

RESPONSIBLE SOURCING Delivery of Lafarge Tarmac Aggregates

INNOVATION AND QUALITY

LOW TEMPERATURE ASPHALTIn partnership with the Carbon Trust we developed and trialled a new national highways specification for the use of Low Temperature Asphalt, helping to unlock barriers to specification, cut energy consumption and reduce CO2.

Meeting our customers’ needs for product innovation and quality are the cornerstones of our business. It’s why our customers rely on us and trust us with their projects. Our company focus is therefore aimed at developing innovative products and solutions that add value and enhance whole life sustainability performance. Our research orientation is driven by customers’ needs. Understanding how customers use our products and anticipating their future needs, enables us to develop innovative, high performance solutions.

Lafarge Tarmac operates robust quality management systems to ensure product performance and offers expert technical knowledge and support to help our customers select and use the best solution for their project.

Contribute to the development of sustainable communities by undertaking showcase projects

using Lafarge Tarmac innovation, expertise or land assets

100% of operational sites to have ISO 9001, with new

acquisitions certified within a year

Support the development of carbon

capture technology

SOLUTIONS

COMMITMENTDEVELOP NEXT GENERATION SUSTAINABLE SOLUTIONS

41

ESTABLISH LAFARGE TARMAC

CENTRES OF EXCELLENCE WITH UNIVERSITIES AND RESEARCH BODIES

2020MILESTONE

Form Lafarge Tarmac Centres of

Research Excellence

QUALITY CONTROL / MATERIAL TESTING ULTILOW trial, Stancombe

SUSTAINABLE CONSTRUCTION

BIG STEPSIn 2013 we provided carbon footprint information for about 1,000 products to support our customers in creating more sustainable buildings and infrastructure.

Our approach to construction encompasses innovative sustainable products, efficient building systems and practical solutions. We recognise the important role we have in promoting sustainable construction by optimising our products, their use and whole life performance. We make an important contribution to a better built environment through the provision of systems, solutions and guidance for the materials we provide.

Sustainable construction considers issues such as building design, the responsible sourcing of materials, material technology and performance benefits, processes and methods of construction, energy and resource efficiency, Building Information Modelling (BIM) and the long term operation and maintenance of the built environment. By providing sustainable construction materials, systems, solutions and guidance to optimise the use and whole life performance of our products we are able to support our customers in delivering a positive contribution to a sustainable built environment.

Launch Lafarge Tarmac product carbon calculator

with 100% of products having carbon footprints

by end 2014

Generate Environmental Product Declarations for key products by

end of 2015

Create five Sustainable Construction Solution

guides per annum to enable customers to deliver more

sustainable outcomes

Develop Building Information Modelling (BIM) objects

and information to support customers needs and to meet

Government 2016 targets

SOLUTIONS

COMMITMENTENABLE CUSTOMERS TO USE INNOVATIVE

SOLUTIONS TO CREATE A SUSTAINABLE

BUILT ENVIRONMENT

43

PROVIDE INDUSTRY LEADING GUIDANCE

AND SOLUTIONS THAT OPTIMISE WHOLE

LIFE PERFORMANCE

2020MILESTONE

LAFARGE TARMAC CONCRETE WITH EXPOSED AGGREGATE FINISH National Cycling Centre, Manchester

VISION AND VALUES

SUSTAINABILITYSTRATEGY

BUSINESS UNIT / FUNCTION

ACTION PLANS

SITE SPECIFICACTION PLANS

PERSONALOBJECTIVES

MONITORING AND STRATEGIC REVIEW

REPORTING PERFORMANCE

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

BU/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

EXTE

RNAL

SUS

TAIN

ABILI

TY PA

NEL

Our 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.

DELIVERING THE STRATEGY

Lafarge Tarmac’s 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 will regularly measure, report and review our progress and undertake audits to ensure a robust performance. We will undertake a formal annual review of our strategy, working with our External Sustainability Panel, to ensure its continuing appropriateness and high level of ambition.

Medium High

Med

ium

Hig

h

It is recognised good practice to focus on the sustainability issues that we can influence and which are the most important for our business and stakeholders.

Lafarge Tarmac’s key priorities have been identified through a materiality analysis aligned with the Global Reporting Initiative guidelines. Gathering input from key decision-makers in the business, external experts, customers and other stakeholders, including our External Sustainability Panel, we map each issue on a materiality matrix to highlight its significance. The key priorities identified by this process form the basis of our sustainability strategy.

MATERIALITY

In our strategy we have grouped our key priorities under four themes; People, Planet, Performance and Solutions. For each key priority we have set an ambitious long term commitment, a 2020 milestone target and other performance targets.

Impact on Lafarge Tarmac

Sign

ifica

nce

to S

take

hold

ers

Sustainablesupply chain

Environmentalprotection

Resourceefficiency

Communityinvolvement

Governanceand ethics

Economicvalue

Reportingperformance

Sustainableconstruction

Safetyand health

Climatechange Our people

Innovationand quality

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INTERNAL/EXTERNAL AUDIT

PEOPLE

SOLUTIONS

PERFORMANCE

PLANET

SUSTAINABILITY STRATEGY

We welcome questions and feedback on all aspects of our sustainability strategy. Please address your comments to sustainability@lafargetarmac.com

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“Sustainability has a central role in our strategy of transforming our business to be our customers’ preferred choice for sustainable construction solutions. Working with our stakeholders we have set ambitious commitments and targets to help us realise our vision. Through strong governance and engagement we will be working hard to ensure sustainability is deeply embedded throughout our business, strategy and culture”.

Cyrille Ragoucy, Chief Executive Officer

Serge Colin, Group Human Resources Director

Paul Fleetham, Managing Director Contracting

Jeremy Greenwood, Managing Director Readymix

Mark Joel, Managing Director Tarmac Building Products

Charles Law, Managing Director Cement and Lime

Martin Riley, Managing Director Aggregates & Asphalt

Susan Room, Group Marketing and Commercial Director

Guy Young, Chief Financial Officer

KEY PRIORITIES COMMITMENT

SAFETY AND HEALTH Zero harm Achieve zero harm See page 15

OUR PEOPLE An employer of choice Achieve top 10% in the industrial sector for employee engagement and well-being in regular employee surveys See page 17

COMMUNITY INVOLVEMENT Net positive contribution to our communities Contribute 50,000 volunteer hours per year (or one day per employee) See page 19

CLIMATE CHANGE Design CO2 out of our products and services 37% reduction in CO2 per tonne of product compared to 1990 (i.e. 15% compared to 2013) See page 23

ENVIRONMENTAL STEWARDSHIP Net positive biodiversity contribution 100% of mineral extraction sites to have Biodiversity, Geodiversity and Restoration Management Plans See page 25

RESOURCE EFFICIENCY Accelerate the transition to a circular economy Recycle over 10 million tonnes a year of waste and secondary materials from other sectors See page 27

ECONOMIC VALUE Create sustainable economic value Invest in future construction solutions See page 31

GOVERNANCE AND ETHICS Uphold the highest corporate governance and ethical standards Continue to achieve 100% compliance with Lafarge Tarmac’s code of conduct and competition compliance programme See page 33

COMMUNICATION Be recognised as the preferred choice for sustainable construction solutions Communicate performance through an independently verified, Global Reporting Initiative compliant sustainability report See page 35

SUSTAINABLE SUPPLY CHAIN Responsibly procure all goods and services Ensure supply chain partners are selected against responsible and ethical sourcing criteria using the principles of BS 8903 See page 39

INNOVATION AND QUALITY Develop next generation sustainable solutions Establish Lafarge Tarmac centres of excellence with universities and research bodies See page 41

SUSTAINABLE CONSTRUCTION Enable customers to use innovative solutions to create a sustainable built environment Provide industry leading guidance and solutions that optimise whole life performance See page 43

2020 MILESTONEOTHER PERFORMANCE TARGETS

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Every solution starts with a challenge. Tell us yours at lafargetarmac.com

Portland House Bickenhill Lane, Solihull, Birmingham B37 7BQT +44 (0)800 1 218 218

Lafarge Tarmac Trading Limited.

Lafarge Tarmac Cement and Lime Limited.

'Lafarge Tarmac' the 'LT logo', 'Tarmac' and 'Lafarge' are all registered trademarks.

©2014 Lafarge Tarmac Trading Limited.

May 2014

CBP00098340807144247