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SustainableSustainable Performance and GrowthPerformance and Growth
CSR Presentation, August 2005CSR Presentation, August 2005
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Introduction to this PresentationIntroduction to this Presentation
CRH is committed to conducting all its activities in an ethical and responsible manner
We continually focus on integrating Corporate Social Responsibility (CSR) values into Group operations, with particular regard to our employees, customers, other stakeholders and the environment
This document, based on data for the calendar year 2004, is designed to give an overview of our CSR activities across the entire Group to the investment community and other interested stakeholders: it is our second CSR Presentation, following the first of October 2004
The aim is to provide a CSR Presentation which coherently links and explains: Our Strategic Vision
What CSR means for CRH
Our CSR Policies
Our CSR Management, Reporting and Communications
Our Sustainability Ratings
This CSR Presentation has been verified by Det Norske Veritas
We intend to incrementally progress towards reporting in accordance with the GRI (Global Reporting Initiative) Guidelines
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Contents of this PresentationContents of this Presentation
73-75Sustainability Ratings 76-77DNV Verification Statement 78-79Relationship to GRI Reporting Guidelines 80Contact for further Information
71-72Stakeholder Communications
27-43Environment
44-54Health & Safety
4-18Brief Introduction to CRH 19-21Corporate Social Responsibility 22-26Corporate Governance
55-70Social
SlidesSection
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Brief Introduction to CRHBrief Introduction to CRH
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About CRH plcAbout CRH plc
CRH was formed in 1970 through a merger of two Irish public companies. These
were Irish Cement (founded in 1936) and Roadstone (founded in 1949). The Group
was first called “Cement-Roadstone Holdings”, which was later abbreviated to CRH
CRH’s strategy since then has been to become an international leader in building
materials, delivering superior performance and growth, with sustained shareholder
returns. It has reduced its dependence on individual markets by achieving a balance
in its geographic presence and portfolio of products
In 1970 the Group’s sales totalled €26m, 95% of which were in Ireland, while 2004
sales amounted to €13bn spread over 24 countries. The Group has averaged over
19% total shareholder return per annum since 1970
CRH now employs over 60,000 people at 2,100 locations in Europe and in the
Americas, with its headquarters at Belgard Castle in Dublin
CRH ranks among the top 5 in its sector worldwide
Our website www.crh.com contains extensive information about CRH
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Our Core ActivitiesOur Core Activities
Precast concrete products; concrete blocks, pavers and rooftiles; clay bricks, pavers and tiles; insulation products; fencing & security; glass, rooflights & ventilation, construction accessories
Building Products
Cement, lime, aggregates, asphalt and road paving, readymixed concrete
Primary Materials
DIY stores, builders merchanting, specialist distribution
Distribution
CRH has a uniquely balanced portfolio of building materials activities
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Our Organisational StructureOur Organisational Structure
Primary Materials DistributionBuilding Products
The key organisational characteristics of CRH plc are:
A federal Group organised for performance and growth
A business balanced by product, geography and end use
An experienced management team
A remuneration policy that rewards performance
A responsible corporate ethos
The Group operates as four Divisions as illustrated below and described in the four
slides following
CRH plc
Americas Products & Distribution
Americas Materials
Europe Products & Distribution
Europe Materials
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Irl UK Spa Swi Port Pol Fin Est Lat Rus Ukr Tun Isr Volumes Cement 12.6m tonnes Aggregates 74.1m tonnes Asphalt 4.2m tonnes Readymix Concrete 11.5m m3
Agricultural Lime 1.4m tonnes Concrete Products 7.8m tonnes
Europe MaterialsEurope Materials
2004: Sales €2.4bn, margin 14.4%
400+ locations, 13 countries
10,100+ employees
By market; end use is: New construction projects 80%
Repair, maintenance and improvement 20%
By sector; end use is: Residential (housing) 40%
Non-Residential 30%
Infrastructure (roads, bridges etc.) 30%
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Europe Products & DistributionEurope Products & Distribution
Irl UK Por Spa Fr Bel NL Ger Swi Den Swe Pol Fin Est Slov Volumes Concrete Products 13.1m tonnes Clay Products 2.7m tonnes Insulation 5.8m m3
Fencing & Security 2,000 lineal km Daylight & Ventilation 1.1m m2
Distribution 381 stores
2004: Sales €4.1bn, margin 7.6%
700+ locations, 15 countries
18,700+ employees
By market; end use is: New construction projects 60%
Repair, maintenance and improvement 40%
By sector; end use is: Residential (housing) 60%
Non-Residential 30%
Infrastructure (roads, bridges etc.) 10%
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Americas MaterialsAmericas Materials
New England New York / New Jersey Central West Volumes
Aggregates 134.8m tonnes Asphalt 34.0m tonnes Readymix Concrete 5.9m m 3
2004: Sales €2.8bn, margin 9.6%
650+ locations, 28 US States
13,800+ employees
By market; end use is: New construction projects 30%
Repair, maintenance and improvement 70%
By sector; end use is: Residential (housing) 15%
Non-Residential 20%
Infrastructure (roads, bridges etc.) 65%
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Americas Products & DistributionAmericas Products & Distribution
USA Canada Argentina Chile Volumes Precast Concrete Products 2.3m tonnes Concrete Products & Mixes 10.7m tonnes Clay Products/Ceramic Tiles 1.6m tonnes Glass 14.1m m 2 Distribution 124 stores
2004: Sales €3.5bn, margin 9.2%
400+ locations, 45 US States, 4 Canadian Provinces, Argentina and Chile
17,800+ employees
By market; end use is: New construction projects 55%
Repair, maintenance and improvement 45%
By sector; end use is: Residential (housing) 50%
Non-Residential 40%
Infrastructure (roads, bridges etc.) 10%
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Our Regional, Product & Sectoral BalanceOur Regional, Product & Sectoral Balance
CRH has a unique balance of sales by region, product and end-use, ensuring long
term Performance and Growth in a cyclical industry
*Based on 2004 sales
Europe 51%
Americas 49%
Materials 40%
Distrib- ution 23%
Products 37%
RegionalRegional ProductProduct
Non-Res 30%
Residential 45%
Infra- structure
25% RMI 45%
New 55%
EndEnd--UseUse
Sales* are Sales* are balanced by:balanced by:
RMI= Repair, Maintenance and Improvement
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Driving our PerformanceDriving our Performance
After the merger in 1970, the Board set a clear strategy for the development of the Group
We aim for world-class Performance and Growth in all our activities and regions
We enhance our Performance by Investing in new capacity Investing in technology to improve quality and efficiency Developing new & innovative products Offering a more focused service to customers Expanding the customer base through new channels Leveraging our brands locally and regionally
We Continuously Improve by Sharing of Best Practice throughout the Group Leveraging product and process know-how Measuring and re