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SustainableSustainablePerformance 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 Ratings76-77DNV Verification Statement78-79Relationship to GRI Reporting Guidelines80Contact for further Information
71-72Stakeholder Communications
27-43Environment
44-54Health & Safety
4-18Brief Introduction to CRH19-21Corporate Social Responsibility22-26Corporate 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, buildersmerchanting, 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
AmericasProducts & Distribution
AmericasMaterials
Europe Products & Distribution
EuropeMaterials
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Irl UK Spa Swi Port Pol Fin Est Lat Rus Ukr Tun Isr VolumesCement 12.6m tonnesAggregates 74.1m tonnesAsphalt 4.2m tonnesReadymix Concrete 11.5m m3
Agricultural Lime 1.4m tonnesConcrete 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 VolumesConcrete Products 13.1m tonnesClay Products 2.7m tonnesInsulation 5.8m m3
Fencing & Security 2,000 lineal kmDaylight & 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 EnglandNew York / New Jersey Central West Volumes
Aggregates 134.8m tonnesAsphalt 34.0m tonnesReadymix 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 VolumesPrecast Concrete Products 2.3m tonnesConcrete Products & Mixes 10.7m tonnesClay Products/Ceramic Tiles 1.6m tonnesGlass 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
Europe51%
Americas49%
Materials40%
Distrib-ution23%
Products37%
RegionalRegional ProductProduct
Non-Res30%
Residential45%
Infra-structure
25% RMI45%
New55%
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 byInvesting in new capacityInvesting in technology to improve quality and efficiencyDeveloping new & innovative productsOffering a more focused service to customersExpanding the customer base through new channelsLeveraging our brands locally and regionally
We Continuously Improve bySharing of Best Practice throughout the GroupLeveraging product and process know-howMeasuring and rewarding performance
A new Telsmith crushing plant was erected in 2004 at Tilcon New Jersey’s Millington facility. The modular unit, designed to produce 1,000 tonnes per hour of
crushed aggregate, was constructed in Wisconsin and transported to the New Jersey site where it was bolted together. The plant took only five months to construct.
“In CRH, Best Practice is no longer optional: it is an imperative that every company shares its Best Practice and
others adopt it, and vice versa.”
Liam O’Mahony
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The 12 Product Best Practice GroupsThe 12 Product Best Practice Groups
Best Practice Groups meet regularly as national and international groupings of experts in each of the following product sectors:Materials
AggregatesReadymixed ConcreteAsphaltCement & LimePurchasingTransport & Energy
Products & DistributionClay & Ceramic ProductsArchitectural ProductsPrecast & Pipe ProductsWall Panel Systems Insulation & Building ProductsDistribution
Some of the Best Practice Groups at their meetings in 2004: (clockwise from top
left) Clay, Readymixed Concrete, Concrete Pipe,
Cement and (centre) Insulation.
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Driving our GrowthDriving our GrowthAcquisitions
CRH continues to focus on small to mid-sized acquisitions, supplemented from time to time
by larger investments
Sticking to core businesses in building materials and developing regional market
leadership positions
With a rigorous approach to the evaluation, approval, integration and subsequent
performance review of all projects
0
200
400
600
800
1000
1200
1400
1600
1800
'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04
€m
Deals 18 25 26 22 26 40 66 50 45 41 40
Tilcon€253m
Ibstock 51%€320m
Ibstock 49% €230mFinnsementti/Rudus €420mT. McCully €425m
Jura Group €330mShelly Co. €347m
Cementbouw100% Ops & JV
€717m
Secil 49% €333m
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Summary Financial InformationSummary Financial Information
2004 sales of €13bn with PBT of €1bn, split ~50/50 Europe/Americas
Market capitalisation over €10bn; Top 5 in sector worldwide
Peer group includes Saint Gobain, Lafarge, Holcim and Cemex
Listed in Dublin, London and on NASDAQ (ADR’s); Eurotop 300 stock
Ticker symbols CRH.I (Dublin), CRH.L (London) and CRHCY (NASDAQ)
Some key financial ratios illustrating the financial strength of the Group are:
12.212.514.3Return on average equity (%)
13.313.013.9Return on average capital employed (%)
26.525.224.3Tax as a percentage of pre-tax profit (%)
27.826.923.3Debt to year-end market capitalisation ratio (%)
35.748.146.4Debt to shareholders’ funds ratio (%)
7.38.48.5EBIT basis (times)
11.313.113.2EBITDA basis (times)
Interest cover excluding joint ventures
200220032004
(Details in 2004 Annual Report, pages 30-34)
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CRH Performance 1989 CRH Performance 1989 -- 20042004
0
200
400
600
800
1000
'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04
Cum
ulat
ive
Gro
wth
%
PBT=Profit Before TaxEPS=Earnings Per Share (excluding goodwill)DPS=Dividend Per Share
Index: 1989 = 100
PBT+16%per annum
EPS+13%per annum
DPS+12%per annum
CRH has achieved a unique growth record over the last 15 years
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Economic Benefits to SocietyEconomic Benefits to Society
Our activities contribute positively to society in
numerous ways
In 2004:
Over €2.3bn in wages, pensions and social
welfare contributions was paid to over 60,000
employees in 24 countries
About €5bn of goods & services were
purchased by our operations Groupwide
Over €160m was paid in dividends to
shareholders
Significant charitable and other donations were
made to local communities and many other
deserving groups
Americas Materials and Products & Distribution joined forces to support Habitat for Humanity and pledged $100,000 to Habitat’s “Congress Building America”
initiative. Americas Materials CEO, Tom Hill presented the cheques to Habitat for Humanity founder Millard
Fuller and executive Tom Jones.
In January 2005, CRH donated €500,000 to organisations involved in relief operations in the Tsunami-hit region of SE Asia and Western Africa. It worked with organisations in Ireland, the USA,
the Netherlands and Sweden to finalise how the contribution would best be applied to restoring water and sanitation, and then to rebuilding homes and livelihoods in the affected region.
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Corporate Social ResponsibilityCorporate Social Responsibility
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“CRH’s strategic vision is to be an international
leader in building materials delivering superior
performance and growth. The values of CRH are
embodied in our commitment to Corporate Social
Responsibility (CSR)”
Our Commitment to CSROur Commitment to CSR
Liam O’Mahony, Group CEO.
“CRH is committed to achieving strong levels of operational excellence and financial
performance in a manner consistent with best international standards of corporate
social responsibility”
“Our endeavours in this field have been recognised by a number of independent
rating agencies, particularly The Dow Jones World and Stoxx Sustainability Indexes”
[CRH Annual Report 2004]
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How we implement CSRHow we implement CSRCRH’s strategic vision is to be an international leader in building
materials delivering superior performance and growth. The values of CRH are embodied in our commitment to CSR.
EnvironmentHealth
& Safety
SocialCorporateGovernance
Set Policies
Design Management Systems
Monitor Performance
Communicate coherently and consistently to all of our stakeholders
We interpret our commitment to CSR as impacting on four specific aspects of our
business
We manage the CSR aspects of our business in these four areas by applying this process
StakeholderFeedback
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Corporate GovernanceCorporate Governance
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About this Corporate Governance SectionAbout this Corporate Governance SectionThe Directors are committed to maintaining the highest standards of corporate
governance
CRH applies the main and supporting principles of the revised Combined Code on
Corporate Governance, which is appended to the Listing Rules of the Irish and London
Stock Exchanges
Our 2004 Annual Report describes:
The CRH Board pictured during a visit to Oldcastle APG’s Northfield Block paving plant in September 2004.
The composition of Board of Directors
(including roles of Chairman and
Directors), terms of appointment,
remuneration, performance appraisal
and Board Committees
Our internal controls
Communications with shareholders
Code of Business Conduct
Compliance with the relevant provisions of UK
Combined Code and the Sarbanes-Oxley Act 2002
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Corporate Governance - Principles
“Board and management are committed to achieving the highest standards of
corporate governance and ethical business conduct” Pat Molloy, Chairman
Directors’ Remuneration & ResponsibilitiesComprehensive description of:
Basic salary & benefitsPerformance-related cash incentivesShare option scheme
Itemisation of individual Directors’RemunerationShareholdings & options
Clear statement of Directors’ Responsibilities
Compliance with Key Provisions Compliance with provisions of the 2003 Combined CodeCompliance with SEC (Securities Exchange Commission) rules to implement Sarbanes-Oxley Act of 2002, as these become applicableCompliance with other relevant Irish, British and American statutory requirements concerning corporate governance
Board Composition & GovernanceNon-executive majority on BoardNon-executive ChairmanSenior Independent DirectorAll bring independent judgement on:
strategyperformance resourceskey appointmentsstandards
Regular Board meetings, with full and timely access to necessary informationFormal schedule of matters reserved for Board decision, or delegated to Subcommittees
Our 2004 Annual Report (pages 42-45) sets out:
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Corporate Governance – Internal Risk Control
Board ResponsibilitiesBoard has overall responsibility for Group’s system of internal controlBoard is responsible for reviewing effectiveness of those controls
Management ResponsibilitiesGroup level: major strategic development & financing decisionsProduct Group & operating company level, subject to limits of authority: operational issuesManagement at all levels is responsible for internal control over delegated business functionsSystem of internal control embedded throughout the organisation ensures quick response to evolving risks - significant issues are promptly identified and dealt with
Board ReportingRegular reporting to Board on all key business risks (strategic, external, reputational, operational, people, financial activity, CSR)Annual review of effectiveness of system of internal control
The Group’s ongoing process for identifying, evaluating and managing significant risks is in accordance with the “Turnbull” Guidance
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Our Code of Business ConductOur Code of Business Conduct
To ensure adherence to strong and straightforward ethical principles by all Group
employees, the CRH Board adopted an updated Code of Business Conduct in
December 2003
Applies to all Directors, managers and relevant employees
Translated into 10 languages with English version on CRH website
The Code details Group policy regarding:
Compliance with corporate, company and local legal requirements
Prohibition of use of confidential or inside information
Conflicts of interest (e.g. financial, property or other transactions)
Rules surrounding provision and acceptance of gifts or gratuities
Anti-trust policy against bribery and corruption
Compliance is monitored by Group Internal Audit, with a confidential employee “hotline”
There are additional requirements for senior Group executive officers in accordance
with the Sarbanes-Oxley Act 2002
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EnvironmentEnvironment
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About this Environment SectionAbout this Environment Section
CRH requires all its businesses to operate in an
environmentally responsible manner. The
resources and processes that we have put in
place are focused on achieving industry best
practice standards at all of our locations
All acquisitions are subject to rigorous due
diligence and are integrated into the Group
environmental review process
This section of our CSR Presentation outlines:
Our Environmental Policy
Our Environmental Management & Review
Systems
Our Environmental Performance & Objectives
Our Environmental AwardsB-Complex, the leading concrete paving brick
producer in northern Poland, recently commissioned a new paving plant in Koszalin. This state-of-the-art facility has the capacity to produce 600,000m2 per
annum of a broad product range, complying with all applicable environmental requirements.
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The CRH Environmental PolicyThe CRH Environmental Policy
Our Environmental Policy, which is applied
across all Group companies, is to:
Comply, as a minimum, with all applicable
environmental legislation and develop our
environmental stewardship towards industry
best practice
Ensure that relevant employees and contractors
are aware of their environmental responsibilities
Optimise our use of energy and resources
through efficiency gains and recycling
Promote environmentally-driven product
innovation and new business opportunities
Proactively address the challenges of climate
change
Be good neighbours in every community in
which we operate
Tilcon Connecticut’s Portland Readymixed Concrete Plant won an Honourable Mention in the 2004 National
Readymixed Concrete Association (NRMCA) Commitment to Environmental Excellence Award. The
NRMCA award recognises “outstanding contributions to protecting the environment and maintaining sound
management practices in their operations.”
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Environmental ManagementEnvironmental ManagementAchieving our Environmental Policy objectives at all our locations is a management imperative;
this responsibility continues right up to Divisional Director and Group Chief Executive at CRH
Board level
Individual managers are responsible for effective implementation of our Environmental Policy at
every location. They are supported and monitored at operating company level by a network of
Environmental Liaison Officers (ELOs). This network covers all Group companies
More than 100 employee volunteers and family members from Oldcastle Products and Distribution in and around Atlanta, Georgia
participated in the Chattahoochee Wetlands Restoration project. This project was a part of our participation in the Coastal Wetlands
Restoration Partnership (CWRP), a U.S. government program that encourages the protection and restoration of wetland habitats.
The ELOs are charged with ensuring that
company Environmental Policy is properly
adhered to, and that site managers are fully
aware of their responsibilities in this regard
At each year-end, the ELOs assist the
Group Technical Advisor with a detailed
assessment of Group environmental
performance, which is reviewed by the CRH
Board
This review covers all Group locations
where there is management control
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The year-end review is followed up by detailed clarification and feedback, and is
further supported by Environmental Best Practice meetings held throughout the year
The Environmental Review ProcessThe Environmental Review ProcessA detailed questionnaire is completed by the ELO for each company. The
questionnaire covers:
Compliance with Group policy, local regulations and national legislation
Environmental training
Environmental upgrades and improvements
Environmental audits and certification
Air emission data
Energy and fuel usage data
Waste generation and management
Water usage and management
Recycling activities
Local stakeholder engagement
Biodiversity data and quarry restoration activities
Environmentally-driven product development and opportunities
A meeting of the ELOs for the Americas Materials Division held at Baltimore, USA in June 2004.
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Compliance, Verification and AuditsCompliance, Verification and Audits
The 2004 Environmental review was based on
reports from a record number (192) of ELOs,
reflecting the continued growth of the Group
The Environmental review confirmed:
A high degree of environmental compliance
throughout
Some non-compliances were reported, most of
which were of an administrative nature, all of
which have been or are being actively resolved
External Verification
At the end of 2004, 305 locations were certified
to ISO 14001 and 532 locations to ISO 9001
Many companies were also audited by permitting
authorities during 2004 with similar postive
outcomes
Number of ELO's in Group
6080
106126
159
192
0
50
100
150
200
250
1999 2000 2001 2002 2003 2004
Number of locations w ith ISO 14001
305286251
201
100100
50
100
150
200
250
300
1999 2000 2001 2002 2003 2004
Superglass, Argentina’s
leading supplier of tempered and
laminated glass, has implemented
a quality management
system in accordance with ISO 9001-2000.
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Environmental Upgrades and ImprovementsEnvironmental Upgrades and Improvements
Environmental Expenditure €m
3632 34
37
2833
0
10
20
30
40
1999 2000 2001 2002 2003 2004
Environmental expenditure provides a leading indicator
of CRH’s continued commitment to improvement in line
with best industry practice
In 2004, we invested another €36m in a wide range of
environmental improvements across all activities and
countries of operation
Improvements included:
Process optimisation
Increased recycling of alternative materials
Energy reduction
Increased use of alternative fuels
Reduction of noise and waste
Reduction in air and dust emissions
Reduction of water usage and discharges
Improvements in workplace health and safety
This level of expenditure has been sustained over the
last 6 years and will continue in the future
Canteras Cerro Negro, located at Olavarría, Argentina, has enlarged its clay floor and wall tiles
production capacity with a new state-of-the-art plant. The facility consists of a continuous milling and drying
process, a 4,600-tonne press, a 140-metre-long glazing and decorating line, a 144-metre-long roller
kiln and a robotic sorting and palletising line.
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CRHCRH’’s Climate Change Strategys Climate Change StrategyIn Europe, our companies are committed to achieving
Phase I of the National Allocation Plans prepared by the EU
Member States under the Emissions Trading Directive. We
will also be involved in dialogue relating to Phase II which is
due to be decided by the European Union in 2006. This is
presenting new challenges particularly to our cement, lime
and clay brick activities, which we are actively addressing
Most cement plants feature latest modern dry process kilns
CRH cement plants are reducing CO2/tonne cement by:Implementing latest cement plant technology & Best Practice
Ongoing investment in energy-saving projects
Steadily increasing use of alternative materials such as fly-ash
and slag where these are available
Growing use of alternative fuels where commercially available
and where permitted
As examples, our Jura Cement plants in Switzerland now
use 50% alternative fuels, and our Polish Grupa Ożarów
has embarked on a pioneering biomass project, growing
some its fuel needs from local renewable resources
The Jura Wildegg cement plant in Switzerland makes significant use of
alternative fuels including biomass fuels.
The Ożarów cement plant in Poland has planted 100 hectares of Norwegian Willow to provide future biomass fuel which will partly
displace fossil fuels for its kilns and also provide income for local farmers.
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The Cement Sustainability InitiativeThe Cement Sustainability InitiativeCRH is a member of the Cement Sustainability
Initiative (CSI). The CSI is a voluntary initiative by 16
of the world’s major cement producers: it aims to
promote greater sustainability in the cement industry
in co-operation with the World Business Council for
Sustainable Development (WBCSD) and independent
stakeholders
CRH actively participates in all six CSI Task Forces,
and is Co-Chair of Task Force 3 dealing with
employee health and safety
CRH is committed to detailed environmental reporting
on its cement activities in accordance with the CSI
Charter guidelines. The KPI’s have now been
finalised: the CRH figures will be reported as of 2006
The Group 2004 air emissions were estimated at CO2
= 15mt, NOx = 30kt*, SOx = 10kt*, particulates = 8kt*,
and Group energy use was estimated at 33TWh*additional data communicated to DNV, December, 2005
Jura’s Cement Plant at Wildegg, Switzerland burns used plastics and tyres as alternative fuels.
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Waste and Water Usage MinimisationWaste and Water Usage Minimisation
Our objective is to minimise waste:All by-product is recycled back into the process where possible
in all activities
All other (mostly inert) wastes are minimised and recycled
externally where possible (<0.3% of output)
Only where this is not possible, is waste sent for final disposal
(<0.1% of output), hazardous waste being minimal in our
activities
Total of 63 Group companies belong to national packaging
recycling schemes
Waste minimisation makes strong commercial sense as well
demonstrating environmental responsibility
Our objective is to minimise water usage:Over 590 Group locations now recycle process water
representing over 35% of all production locations
Water recycling is being promoted where technically feasible;
rainwater is also used in several locations
Group process water usage is estimated at 35m m3/year, and
total discharge at 38m m3/year* (including groundwater)*additional data communicated to DNV, December 2005
Glen-Gery has achieved significant reduction in its water usage at its Mid-
Atlantic and York clay brick plants through filtration and recycling. These achievements
were praised by the Susquehanna River Basin Commission, and received the Pennsylvania Governor's Award for
Environmental Excellence.
Number of locations recycling process water
303384
434593
0
150
300
450
600
750
2001 2002 2003 2004
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Maximising use of Recycled MaterialsMaximising use of Recycled Materials
The Tilcon plant in Prospect Park, New Jersey recycles significant quantities of both C&D materials and RAP.
Our objective is to maximise use of recycled
materials where technically possible and
commercially available in the local markets
RAP (Recycled Asphalt Pavement) = 4.5mt recycledRAP is used road surface which is milled, crushed and
reused as a raw material for asphalt mixes
C&D (Construction & Demolition) Materials = 5mt
recycledC&D Materials arise from Construction and Demolition
activities and can replace virgin aggregates or be
reused as a raw material for fill applications
Fly-ash, Slag etc = 3.5mt By-product materials sourced from external power
generation and steel production which are used as a
raw material for cement, or as a replacement for
cement in concrete products
Total internal recycling in 2004 = 13mt
Recycled quantities can vary from year to year
depending on local market availability
Recycled Materials (mt)
25 5.3 6.4 6.2 51.7
2.7 3.24 4.4
4.5
1.6
3.93.9
4 2.83.5
024
68
1012
1416
1999 2000 2001 2002 2003 2004
C&D RAP Other
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Quarry Restoration continues to average ~2% annually
(corresponding to a ~50-year quarry working life)
Over 70% of quarries/pits by area have formal restoration
plans; the rest are expected to have plans within a 3-year
timescale
Consultation between location management and local
authorities and other stakeholders strongly influences the
nature of the restoration/after-use
A further 123,000 trees were planted in 2004, adding up to
1.3 million planted in the last six years
Hectares Restored
318457
392
757
357427
0
200
400
600
800
1999 2000 2001 2002 2003 2004
Quarry Restoration and AfterQuarry Restoration and After--UseUse
Two years ago Lohja Rudus in Finland concluded an agreement with the municipality of Mellilä to turn a 10-hectare gravel pit into a local amenity, with a lake, a sauna, jogging
tracks and ski trails.
In recent years, Hastag, part of the Jura Group, carried out extensive restoration at its sand and gravel pit at Wil, Switzerland. The French Rose features among the variety of
flora & fauna that are now thriving there.
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In our 2004 review, 37 locations were noted for biodiversity These are located in Ireland, Great Britain, Ukraine, Switzerland, Portugal, Finland and in the U.S.
Several other locations have developed special wildlife areas
Fostering and Enhancing BiodiversityFostering and Enhancing Biodiversity
(Clockwise from top left) A peregrine falcon that has been nesting in RJ
Maxwell’s quarries in Northern Ireland. The Jefferson Land Lab, a natural
habitat that was restored by the Shelly Company in the US. The fox (top right)
and newt flourish in Roadstone’s Huntstown Quarry. Releasing fish into a new pond redeveloped by Ibstock
Brick Ltd in the UK at a restored former clay quarry(bottom left).
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Products with Environmental Applications Products with Environmental Applications -- 11In tandem with our commitment to act as a socially responsible corporate citizen, the Group views the development of products that specifically benefit the environment as a significant business opportunityThis area is a key driver in our sales and marketing strategies, and forms an important part of Best Practice exchanges. Some examples follow:
Marlux recently pioneered the installation of “D-NOx” concrete pavers at a project in Antwerp, Belgium. This highly innovative product has a special surface treatment that safely absorbs Nitrogen Oxides (NOx), continuously cleaning the surrounding urban air, as well as providing excellent functionality
and aesthetics.
The US Precast Group has developed and patented thin panel systems using carbon fibre reinforcement, with unique strength,
insulation and fire resistant properties, and is now franchising this CarbonCast™
technology in the US and Europe.
Adams Products supplied over 1m Green Line™ architectural masonry units to the
Environmental Protection Agency’s Research & Administration facility in the Research
Triangle Park in North Carolina. These split-faced masonry units contain over 50% of recycled materials thus gaining “LEED”
credits from the US Green Building Council.
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Products with Environmental Applications Products with Environmental Applications -- 22
Custom Vacuum Pump Housing designed for the City of Fort Lauderdale by Oldcastle Precast’s
operation based in Medley, Florida, was installed by Right Way Plumbing at Las Olas, Florida on the
New River. The facility will be used to service luxury yachts and inter-coastal waterway vessels.
Unidek, our insulation business in the Netherlands, partnered with local renovation specialist
BEL in a project to reduce energy demand by 50% in the Tempel residential district of
Eindhoven. The project is supervised by the Dutch nature
and environment foundation. The Unidek/BEL consortium
came up with a unique way of minimising the disruption to local residents with a rapid installation process and by
bringing them on a plant tour followed by lunch and a visit to the Farmer’s Union Museum in
Gemert while the re-roofing was completed.
Oldcastle Materials’ Mid-Atlantic Group won the
American Road & Transportation Builders
Association Globe Award for use of recycled shingles on this road in Pennsylvania in the US.
Used shingles from roofs are crushed and recycled into the asphalt mix; the quality of the road finish is comparable to
that achieved with virgin asphalt.
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Environmental Awards Environmental Awards -- EuropeEuropeA total of 189 external environmental awards were achieved in 2004. This is CRH’s highest total to date
Among the European awards were:In Ireland, Roadstone Dublin’s Ringsend plant received an Environmental Award at the ERMCO Congress in Helsinki. Roadstone Provinces achieved 5 “Green Aggregates” awards from the Irish Concrete Federation
In Northern Ireland, R.J. Maxwell achieved first place in the Quarry Products Association (QPA) Awards. Scotts and ReadyUse also won QPA awards
In the UK, Ibstock was awarded the 2004 Sustainability Award by Building Magazine (see picture)
Also in the UK, Forticrete won the 2004 Construction Best Practice Award by the Construction Excellence Group
In Poland, the Ożarów and Rejowiec cement plants again achieved “Cleaner Production” awards from the Ministry of the Environment
In Finland, Lohja Rudus’s Rovaniemi readymixed plant won the top award of the Finnish Building Materials Association
In Switzerland, several locations of the IFF and Blaser companies were recognised for excellence by the Swiss Nature and Business Foundation
In Portugal, our JV partner, SBI Betao Pronto, received an ERMCO award for its readymixed plant at Povoa do Varzim
Number of Env. Awards
32 30
7594
166189
0
50
100
150
200
1999 2000 2001 2002 2003 2004
Ibstock Brick won the Sustainability Award category at the 2004 Building Awards
Ceremony in London. This was in recognition of the certification to ISO 14001 of all plants, fixing
of environmental targets annually, and reductions in energy.
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Among the awards in the Americas were:In North America, the National Asphalt Pavement Association (NAPA) awarded a notable 107 Diamond Achievement Awards to the following companies: Pike Industries, the New York State Group, Tilcon CT, Tilcon NY, the Northwest Group, Staker-Parson, the Rocky Mountain Group, Michigan Paving and Materials and the Iowa Group
Similarly the National Stone, Sand and Gravel Association (NSSGA) made 22 high-ranking awards to the following companies: Pike Industries, Tilcon CT, Tilcon NY, Staker-Parson and the Iowa Group
Glen-Gery received special recognition for its water-conservation initiatives from the Susquehanna River Basin Commission and the Pennsylvania Governor
South America: in Argentina, Cerro Negro received a “Certificado de Aptitud Ambiental”, and in Chile Dell Orto again achieved recognition under the “Empresa Competitva” awards program
Environmental Awards Environmental Awards -- AmericasAmericas
The Bernardsville asphalt plant received the NAPA Diamond Achievement commendation after
undergoing a major upgrade.
NSSGA Awards for Staker-Parson’s Ogden, South Weber and Beck Street locations. Pictured are Paul Glauser, Joy Wilson (President of NSSGA)
and Chris Kinnersley.
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Health & SafetyHealth & Safety
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About this Health & Safety SectionAbout this Health & Safety Section
CRH seeks to achieve industry best practice
standards of health and safety. We recognise that
this is a critical issue for all of our stakeholders,
particularly for our employees and contractors
This section of our CSR Presentation reports:
Our Health & Safety Policy
Our Health & Safety Management Systems
Our Health & Safety Performance & Objectives
Our Health & Safety Awards
Our experience is that some newly acquired
companies need considerable inputs to bring them
up to the safety standards of heritage businesses
We have also noted variations in cultural attitudes
to safety in different countries, demanding
additional management focus in these regions
The Pike Industries Liquid Asphalt Terminal in Bangor, Maine (above) celebrated its 55th year with
no lost time injuries. The Staker-Parson South Weber pit, Utah, (below) has achieved 26 years with no lost time injuries. These excellent performances are due to long term employee dedication to safety.
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The CRH Health & Safety PolicyThe CRH Health & Safety Policy
Our health and safety policy, which is applied
across all Group companies, is to:
Comply, as a minimum, with all applicable
legislation and continually improve our health
and safety stewardship towards industry best
practice
Ensure that our employees and contractors are
aware of and implement the Group’s health
and safety imperatives
Ensure that our companies provide a healthy
and safe workplace for all employees and
contractors, and take due care of all customers
and visitors at our locations
Require all our company employees and
contractors to work in a safe manner as
mandated by law and best industry practice
Tilcon New York recently opened its Safety and Hazard Awareness Training Centre at its Mount Hope facility, designed to create real-life situations for intensive employee safety
training.
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Where injuries occur they are thoroughly investigated and corrective action is taken to avoid a
recurrence. Lessons learned are actively shared via Safety Best Practice groups
Accident and near-miss analysis is increasingly an integral part of Health & Safety management
At the end of each year, the safety officers assist the Group Technical Advisor in carrying out a
detailed safety performance review of all Group companies, the results of which are reviewed by
the CRH Board. This has been carried out every year since 1997
This review system constitues a very comprehensive Safety Management System across all
Group locations where there is management control
Health & Safety ManagementHealth & Safety Management
Health and safety management is a daily priority of line
management. Safety results for the entire Group are
closely monitored by senior management and are
reported to the CRH Board on a monthly basis
The company safety officers are responsible for ensuring
that company health and safety policies are fully adhered
to, and that site managers and employees are trained in
health and safety risk analysis and prevention
Isolation or “Lock-out” training in the Americas Products & Distribution Division.
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The Health & Safety Review ProcessThe Health & Safety Review ProcessA detailed questionnaire is completed by the relevant Safety
Officer for each company encompassing:
Comprehensive analysis of every situation which resulted in a Fatality
or serious injury
Analysis of all Lost Time injuries focusing on trends in root cause,
injury type and employed person’s profile
Improvements in Safety Management including use of protective
equipment, recording of near misses, frequency of safety meetings,
use of disciplinary measures and incentives to reduce injuries
Number and results of Safety Audits carried out
Workplace Hygiene and Employee Health Management
Occupational Illness claims
Results of the Health & Safety Review are analysed in detail and
statistical information is correlated to identify any higher risk
aspects of our activities. This information is fed back to operating
companies through our network of Safety Officers and Safety Best
Practice Groups for action throughout the year
Safety training for entering confined spaces at Jura’s cement plant in
Cornaux, Switzerland. Training is an essential part of any Safety
Management System.
Use of high-visibility clothing in open working areas is being progressively implemented throughout the Group.
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The Group 2004 injury Frequency Ratio (FR)
improved to 12.4 Lost Time Injuries (LTI’s) per million
manhours (equivalent to 1.24 LTI’s per 100,000
manhours)
This represents a 32% reduction in FR since 1998,
while the Group has almost doubled in size
When analysed, the CRH results compare favourably
with safety data for similar activities and countries
Summary of 2004 Safety ReviewSummary of 2004 Safety Review
02468
101214161820
1998
1999
2000
2001
2002
2003
2004
Freq
uenc
y R
atio
0
10
20
30
40
50
60
70
Num
ber E
mpl
oyed
('00
0s)
Frequency Ratio Employed
Some 68% of Group locations in 2004 (compared with 61% in 2003) achieved zero LTI’s. Many
more locations improved safety performances significantly
Despite enormous efforts on safety training, CRH greatly regrets to report eight employee fatalities
and one JV contractor fatality during 2004
All fatalities were thoroughly investigated, and lessons learned were implemented around the Group
The main causes were mobile plant movements, falls from height and failures by individuals to abide by
plant isolation procedures
The Group Fatality Ratio was equivalent to 1.23/10,000 employees
Our objective is Zero Fatalities and Zero Accidents, this clearly is a long term challenge
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Continuous Improvement in Safety PerformanceContinuous Improvement in Safety Performance
There was increased focus on Safety
Best Practice and Safety Training in all
four Divisions in 2004, which is being
further intensified in 2005
An analysis of behavioural issues
revealed that many injuries are avoidable.
This highlights the importance of
increased safety awareness
The Review confirmed that intensive
analysis of Near Misses provides
valuable information for injury prevention
The Review also highlighted the value of
external audits as a safety management
support tool
There is a very low incidence of
occupational illness in Group companies
Injury Causes:
•Slip, Trips & Falls
•Falling/Moving Objects
•Lifting & Overload
Injury Types
•Arms and Hands
•Legs and Feet
•Back Injuries
(PPE: Personal Protective Equipment)
Prevention:
•Housekeeping, clear designated walkways
•Guards on Machines and elevated areas
•Manual Handling Training
•Proper use of PPE
•Proper use of PPE
•Lifting gear, forklifts
Most common injury causes, types of injury and associated prevention measures.
32%
4%
12%8%
15%
11%
16%2%
Slips, Trips, FallsPower ToolsOther or Multiple CausesMobile PlantLifting, Overload or OverexertFixed PlantFalling or Moving ObjectsBurns
4% 7%
8%
29%29%
14%
4% 5%
Eye Head NeckUpper Body Arms HandsLegs Feet BackMultiple Unspecified
Accident Causes Injury Types
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Health & Safety Improvement Case StudyHealth & Safety Improvement Case StudyAmericas Materials is one of CRH’s four operating
Divisions. Over the last 10 years its highly focused
program to improve Health & Safety achieved a
sevenfold reduction in the Lost Time Injury
Frequency Ratio, while the Division grew by similar
factor
Improvements were achieved through intensive top-
down and bottom-up safety awareness and training
Testing Noise and Dust monitoring equipment at Tilcon Connecticut in the US.
0
5
10
15
20
25
30
'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04
Freq
uenc
y R
atio
0
5
10
15
20
25
30
Man
hour
s (M
)
Manhours (M)
Frequency Ratio(per 1m manhours)
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SafetySafety--Driven Product InnovationDriven Product InnovationHealth and Safety is also a driver of product innovation; here are a few examples:
(Above) The precast plant at Ringvaart in the Netherlands now uses Self Compacting Concrete.
Self Compacting Concrete removes the need for vibration to
compact the concrete, thus greatly reducing exposure to noise and
vibration. This technology is being adopted Groupwide in our Precast
businesses with considerable health, safety, environmental and
commercial benefits.
(Right) The increase in apartment building in the Netherlands was the trigger for
Calduran Kalkzandsteen – manufacturer of sand-lime bricks and part of the CRH Group
since 2003 – to develop a new walling system. They called their new product “Hoogbouwelement” and its technical,
aesthetic and construction friendly properties have helped Calduran to
compete in this growing market segment. The larger blocks reduce manual handling on site and accelerate construction time.
All our products when properly applied, present negligible health risks, and are
accompanied by Material Safety Data Sheets advising optimal application procedures
(Left) Two of our companies, Vaculux and Unidek, together won the
2004 leading Dutch Construction Prize for the most innovative product. A system of
safety belts are built into the roofing system,
ensuring that fall protection harnesses and equipment can
easily be attached, thus ensuring enhanced
safety.
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Each year, Betonelement, our flagship precast producer in Denmark, makes a safety award. In December 2004, this was won
by the production team at the Borup plant, which achieved the distinction of zero lost time injuries over the prior 5 years.
Health & Safety AwardsHealth & Safety Awards
Among the European companies:In Northern Ireland, RJ Maxwell was winner of the Construction Category Health & Safety Awards from the N.I Safety Office. Farrans achieved a similar Highly Recommended awardReadyUse won four safety awards from the NI Quarry Products Association, while Scotts had one. Scotts also won a bronze award from the National Federation of Roofing ContractorsIn Great Britain, Ibstock won 9 high-ranking safety awards under the Ceramic Industry PledgeForticrete won a British Precast Concrete Federation 4-star awardIn Switzerland, the Swiss Cement Association gave Jura Cement’s Cornaux plant an award for 2½ years without an accident
22
6068
8899
110
0
20
40
60
80
100
120
1999 2000 2001 2002 2003 2004
A total of 110 external Health & Safety Awards were achieved in 2004. This is a new record for CRH
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Health & Safety AwardsHealth & Safety Awards
In the Americas Materials Division:Several companies were acclaimed by the National Stone, Sand & Gravel Association for multiple years without accidents, including Tilcon CT, Tilcon NY, the Northwest Group and the Iowa Group
Several companies also received Sentinels of Safety awards made by the Mining Safety and Health Administration including Tilcon NY, the Mid Atlantic Group, the Rocky Mountain Group and Staker-Parson
In Americas Products & Distribution:The Glen-Gery Iberia plant was recognised for superior safety performance by the Mine Safety and Health Administration
The Precast Group’s Manchester NY plant was the first in the US earning VPP (Voluntary Protection Program) recognition under the Occupational Safety and Health Administration initiative. Its Auburn WA plant then became the first precast plan to receive Star Status under the same initiative
Many other locations in all Product Groups achieved significant safety recognitions
In May 2004, the Oldcastle Precast plant in Auburn, Washington, became the first precast plant in the United States to achieve “Star Status”, the highest-ranking safety recognition in the Occupational
Safety & Health Administration’s Voluntary Protection Program.
Eamon Dunne (Safety Officer), Marie Therese Quain and ChristopheQuain at Platin cement works. Christophe was rewarded for his
many innovative safety suggestions at Jura’s Cornaux Cement plant in Switzerland which has led to an excellent safety record there.
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SocialSocial
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About this Social SectionAbout this Social Section
CRH requires its managers to conduct
business in a socially responsible manner
We are committed to being responsible
employers, responsible members of the
community, and to conducting our business in
an ethical manner
This section of our CSR Presentation reports:
Our Social Policy
Our Social Management Systems
Our Social Performance and Objectives
Our federal structure encourages local
entrepreneurship among all our employees, a
unique feature of CRH
Employees of Bouwmaat, one of our distribution businesses in the Netherlands celebrate the
opening of one of their new stores in Apeldorn in the Netherlands.
EHL, our leading paving producer in Germany, opened its 34th plant at Wittenburg in 2004.
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The CRH Social PolicyThe CRH Social Policy
Our social policy, which is applied across all
Group companies, is to:
Comply, as a minimum, with all applicable
legislation and to ensure that our social
stewardship moves towards industry best practice
Ensure that our employees and contractors are
aware of the Group’s social responsibilities
Manage our businesses in a fair and equitable
manner, meeting all our responsibilities as an
employer
Apply the principle of equal opportunity, valuing
diversity regardless of age, gender, disability,
creed, ethnic origin or sexual orientation, while
insisting that merit is the ultimate basis for
recruitment and selection decisions
Ensure that our employment policies are in line
with ILO and other international standards
Jennifer Hunt inspects Belgard Mega-Bergerac pavers at Northfield Block near Chicago Illinois.
Since 1998, Zoontjens Concrete Products has sponsored soccer teams and supported summer
camps for disadvantaged people in the Sports Vereniging Goirke in the Netherlands.
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General Employment Features General Employment Features Certain industry characteristics apply:
Physically demanding work, often outdoors
But with an increasing need for skills:
• operating more specialised complex
equipment
• to more stringent quality, safety,
environmental regulations
By nature a seasonal business, particularly in colder
climates
Therefore Group companies continually focus on:
Upskilling employees – more rewarding work
Automation of processes, eliminating heavy
manual operations – also reducing risk of
injury
Improved ergonomics in the workplace
Employee welfare
Increasing levels of training and development
An asphalt paving crew from Hills Materials Company working on the ring road at Mount Rushmore National Memorial in the Black Hills of western South Dakota.
Joe Sugar of Tilcon, was invited by OSHA to demonstrate his jackhammer dust suppression system at the Utility
Transpiration Contractor’s Association Convention.
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Some Employee Statistics for 2004Some Employee Statistics for 2004By Category: 8% Management, 20% Clerical/Admin and 72% Operations
Overall 83% male (typical for the industry), with Clerical/Admin over 40% female
Overall Trade Union membership was ~30%, which varied widely by country
Only 188 days in total were lost due to industrial relations issues during the year
Group absenteeism levels (~4%) were well below industry average
At least 28 Group companies employed registered disabled peopleBreakdown of Group Employees by Country
Ireland 4.06%N. Ireland 1.73%Great Britain 4.7%Netherlands 15.85%Belgium 2.66%France 1.95%Germany 4.27%Denmark 0.87%Sweden 0.06%Portugal 0.55%Poland 5.37%Slovakia 0.38%Finland 1.9%Baltics, Russia 0.92%Ukraine 1.59%Spain 0.99%Switzerland 2.5%Israel 0.85%USA 45.83%Canada 1.68%Argentina 1.14%Chile 0.15%
Growth in Numbers Employed
0
10000
20000
30000
40000
50000
60000
70000
1988 1991 1994 1997 2000 2003
EmployeesContractors
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Employee Welfare & SatisfactionEmployee Welfare & Satisfaction
Overall responsibility for human resources (HR) lies
with the Group Human Resources Director, supported
by HR directors in each of the four Divisions
Day to day responsibility for ensuring that the Group’s
employment policies are effectively implemented lies
with HR management in our companies
The Group offers competitive pay & benefitsin line with industry & local practice
with equity participation and pension programs where
appropriate, depending on tax regimes and industry
practices in the individual countries of operation
Fair & flexible hiring and layoff practices applyparticularly in seasonal businesses
Many Group companies carry out formalised
employee satisfaction reviews, other companies do
this informally
Employee Satisfaction
00.10.20.30.40.50.60.70.8
1997 1998 1999 2000 2001 2002 2003 2004
The graph above shows the results of an employee satisfaction survey conducted by
Ibstock Brick, our clay products company in the UK. The results have shown steady
improvement since the satsifaction surveys began in 1999.
Our companies in Northern Ireland run an employee wellbeing scheme; many other Group
companies run similar programs.
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Education, Training & DevelopmentEducation, Training & DevelopmentThere is an ongoing focus on recruiting and
developing talent throughout the Group
There was an average of 15 hours of training
per employee per year in 2004
This training focused mainly on safety but also
included environmental, technical, leadership
and other skills
Education support programs exist in many of
our operating companies
Many employees enjoy long-term careers with
CRH, a distinctive feature of our Group
CRH is regarded by many in the industry as a
highly desirable employer
Group expansion regularly creates opportunities
for talented, ambitious people
Thomas Aguero and David Mulholland, both of Tilcon, successfully completed an intensive U.S.
Coast Guard approved program in order to earn their Barge Operator licences.
RJ Maxwell, in Northern Ireland, has introduced a program to facilitate employees achieving National Vocational Qualifications. The picture above shows
one group of employees embarking on the NVQ.
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CRH ManagementCRH Management
CRH management is a unique blend of people from 3 distinct streams:
Grassroots employees, whose career opportunities grow as CRH grows
Highly skilled finance & development professionals, who prove themselves, can then move
into senior management roles
Owner-entrepreneurs, who choose to stay on post-acquisition, bring a strong “can do”
attitude
Our decentralised structure gives
local, but disciplined, autonomy
Balances entrepreneurial
drive with prudent operating
practices
Supports performance and
growth to satisfy most
demanding stakeholdersThe Group Management Seminar, which takes place each Spring near Dublin,
Ireland, brings together top management to discuss and refine the Group’s strategic development.
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Management Development Management Development -- 11We recognise that a key factor in the success of
CRH is the quality of its business leaders
We commit significant resources to training and
developing high-potential employees throughout the
organisation to meet the leadership challenges of
performance and growth
All of our Divisions run Leadership Development
Programs (LDP) in conjunction with Group Human
Resources, complementing the initiatives at
company, regional and product group levels
These programs combine inputs from faculty
members of leading international business schools
with contributions from senior CRH management
We make wide use of succession planning tools, on-
the-job development, coaching and mentoring to
ensure a plentiful availability of leadership talent to
meet the Group’s strategic objectives
Participants at one of the recent LDP Courses in the America Materials Division.
Oldcastle APG has a dedicated R&D team to ensure that it remains at the forefront of product innovation.
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Management Development Management Development -- 22
Selected senior managers from around
the Group are regularly brought
together to focus on corporate and
business strategy, organisational
culture and the latest developments in
management science
These programs draw on high calibre
international contributors and include
inputs from the Group Chief Executive
and his senior colleagues
They are particularly valuable in
ensuring that the CRH culture and
approach to business is understood,
applied and developed throughout the
organisation
Participants at a recent LDP in Europe visited the flagship Calduran sandlime brick plant at Harderwijk in the Netherlands. The attendees
included high-potential managers from 19 companies and 8 countries.
Betonelement, a leading Danish producer of structural concrete products, holds bi-annual conferences for its senior management.
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CRH International Exchange ProgramCRH International Exchange Program
CRH fosters exchange of talented young people within its operating companies. These
exchanges provide accelerated learning programs, as well as stimulating synergies between the
companies. Some recent examples include:(Clockwise from top left) Marsha Donnelly, a chemical engineer from Irish Cement, is currently working as a
project engineer with Jura Cement in Switzerland.
Richard Bradley of Roadstone Provinces is currently with the New Jersey Construction Division of Tilcon.
Dima Kuzmenko from Ukraine is currently working with Irish Cement as a Production Engineer.
Nick Rotondo (third from left) from Avon, CT, completed an engineering traineeship at Ormonde
Brick in Ireland.
Joanna Brylinska (left) of the Ożarów Group in Poland joined the Internal Audit team based in Dublin, and now
works with that team both in Europe and in the US.
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Internal CommunicationsInternal Communications
Internal communications make a valuable contribution to our success in the
competitive environment of our industry. Our Divisions, regions and product groups
have strong traditions of open and regular communication within their businesses
Our recent review showed that about 70% of all Group companies held regular
employee briefings, the smaller companies doing this on a more informal basis
Nearly 50% of our subsidiaries and product groups publish regular newsletters,
keeping employees informed of the plans, successes and challenges facing the
business as well as offering details of changes affecting them
The CRH newsletter “Contact” is produced annually in nine languages from articles
submitted by individuals and companies throughout the organisation
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Employee CommunicationsEmployee Communications
The employee voice within CRH is heard directly through a variety of representative
structures depending on the business or country concerned. Mechanisms exist
throughout the Group for informing and consulting employees on matters impacting
on them and the businesses in which they work
In the European Union, the CRH Euroforum provides a regular opportunity for
employee representatives to discuss a wide range of business and social issues with
company management. Employee representatives from the new Member States are
now participating in the CRH Euroforum
Delegates at the 2005 Euroforum in Harderwijk in the Netherlands. The Euroforum is an annual event which affords employee representatives from all EU countries the opportunity to discuss trans-national issues with CRH management. This year the Euroforum included
representatives from all European Union countries in which we have operations.
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Relationships with Suppliers and CustomersRelationships with Suppliers and Customers
All purchasing contracts are awarded on a
rigorous competitive tendering basisMost of our companies source the bulk of their
raw materials from their own local resources
Knowledge of our external suppliers ensures
that they comply with the required high
standards of quality, reliability and CSR
performance
Even with centralised purchasing of strategic
items, no single supplier provides more than
5% of Group requirements
Due to its product and geographical diversity,
the Group has a very wide and fragmented
customer baseOur products are sold in highly competitive
markets, therefore customer service and
quality are high focus priorities for all Group
companies
Customer satisfaction is monitored throughout
the Group using formal and informal metrics
Overall Loyalty RatingPercent of All Respondents
0.0%
1.3%
10.4%
42.0%
46.3%
0.5%
2.8%
11.1%
32.0%
53.5%
0.9%
2.4%
10.8%
35.6%
50.3%
0.0%
1.6%
8.7%
35.4%
54.3%
1.2%
0.8%
7.8%
24.2%
66.0%
0% 10% 20% 30% 40% 50% 60% 70%
Not at all Loyal
Not ParticularlyLoyal
Middle-of-the-road
Fairly Loyal
ExtremelyLoyal
2000 2001 2002 2003 2004
Glen-Gery regularly carries out customer satisfaction surveys using an independent third
party consultant, the most recent review covering 263 top customers. Customer
retention through loyalty is regarded as a key performance indicator for long-term success.
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CRH in the Community CRH in the Community -- 11CRH companies form an integral part of the communities
in which they operate. We are committed to ensuring
that the genuine needs, views and interests of the local
community are taken into consideration and we are
sensitive to the impact our operations may have on our
neighbours, particularly those in the immediate vicinity of
our businesses
Over 50 companies supported local community initiatives
in 2004
Joyce Watson, Public Relations Director with Tilcon, visited an elementary school in New
Jersey for their annual Science Day. She was invited to demonstrate the importance of
aggregates and explain what goes on at the local quarry.
Pauline Davis and Diane Plunkett coordinators of the Annual Food Drive which Tilcon Connecticut
has held for the past several years.
Staker-Parson have developed an innovative way of supporting local universities and sports teams across Utah and Idaho by placing images of logos, athletes and
campuses on the drums of their readymixed trucks.
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CRH in the Community CRH in the Community -- 2 2
The Group Chief Executive, Liam O’Mahony, during a visit
to Podilsky Cement in Ukraine, presented two minibuses to Tamara
Sosnovska, president of the local Association for the
Disabled and to the Boarding School for Disabled Children.
Lohja Rudus supplied a total of 1,700 tonnes of sand for the largest sand sculpture in Finland. The sandcastle was built
near the popular resort town of Lappeenranta. Local residents were delighted with their new tourist attraction that was seen
by an estimated 50,000 people from all over Finland.
In Oporto, Portugal, over 5,000 people ran at least 4km in MaxMat’s “Corrida MaxMat, Dia do Pai” in March 2004, which supported the local
orphanage Lar de Nossa Senhora das Candeias.
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Stakeholder CommunicationsStakeholder Communications
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Stakeholder CommunicationStakeholder CommunicationThe Group communicates regularly with key stakeholder
groups concerning our corporate responsibility credentials
and commitments
At Group level, we discuss our performance with the
investment community, third party survey and assessment
organisations, our employees and other interested parties
At company level, we are in regular dialogue with local
communities, underlining our commitment to operate as a
good neighbour
One of many company open days held in the US. The public are invited into our locations to
see how we operate and
learn about our industry. This open day was held in Tilcon New Jersey’s Mount Hope
Quarry.
Visitors to the tree nursery based in Secil's Outão cement plant. The nursery grows 17
unique local species of Mediterranean trees for landscaping the area surrounding its plant in the
Arrabida Natural Park near Lisbon, Portugal.
Interested parties can, on
request, visit Group locations
on company Open Days
In 2004, CRH companies
hosted a record 195 Open
Days in 53 companies (up
30% on 2003)
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Sustainability RatingsSustainability Ratings
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Our Sustainability Ratings Our Sustainability Ratings -- 11
We are particularly pleased that CRH was again ranked among
sector leaders by a number of leading Socially Responsible
Investment indexes
Dow Jones World and STOXX Sustainability Indexes, assessed
by SAM (Zurich), highlighted CRH as a sector leader in the
September 2004 survey. Their detailed report noted that:
“The successful execution of sustainability strategy at CRH positions it among the leaders in the industry. CRH’s capabilities in mitigating the challenges in the economic dimension are among the best in the industry. This is underlined by particularly strong performances in risk and crisis management and in the code of conduct followed by thecompany. In the environmental dimension, CRH scores above the industry average with a very good score in environmental management. Moreover CRH performs among the best in the social dimension, particularly in the development of human capital and in stakeholder engagement”
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Innovest ranked CRH among the top 5 sector leaders in sustainability and
gave us an “A” rating in October 2004. Their report cited that:
“CRH has historically been proactive in developing a comprehensive approach to
sustainability issues. Currently, it is still a sector leader, enhancing value for
shareholders”
Vigeo in April 2004 indicated in its detailed review that:
“CRH has strong reporting and fair results on CSR issues. Compared to previous
years, the performance is more balanced, with an advanced performance on all
criteria”
In March 2005 following Stock at Stake’s evaluation of the European
construction materials industry Ethibel’s Advisory Board (Brussels) decided to
include CRH in the Ethibel Excellence Index and Investment Register. Ethibel
in its review confirmed that:
“CRH shows to be committed to handle its business in a socially responsible way”
In April 2005, E. Capital Partners SpA selected CRH for inclusion in the
Capital Partners Ethical Global and Euro Indexes
Our Sustainability Ratings Our Sustainability Ratings -- 22
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DNV Verification StatementDNV Verification Statement
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DNV Verification Statement 2005DNV Verification Statement 2005Principal FindingsCRH is to be commended on its ongoing commitment to continuous improvement in CSR performance, and its increasing transparency in CSR reporting, highlighted via the following:
the updated Code of Business Conduct being actively implemented across CRH’s operational entities, and provision of a confidential external ‘whistle-blowing’procedure;a strong compliance approach on environmental, and occupational health & safety issues;the mechanisms to share health & safety and environmental ‘best practice’ across operational entities;a stated intention to report on the WBCSD’s Cement Sustainability Initiative KPIs as of 2006;a Group-led commitment to management development, succession planning and employee training and development.
There are some generic areas where CRH could further improve its CSR performance and reporting by:
setting out more specific improvement Objectives, and associated Targets, whereby CRH can demonstrate future progress (including greater use of trend data);providing more detailed and corroborative information and data;incrementally progressing towards reporting its performance ‘in accordance with GRI’Guidelines;progressing adoption of more formalised HSE management systems across all of the Group’s most significant sites.
ConclusionCRH’s CSR Presentation (August 2005) - ‘Sustainable Performance and Growth’ – is a fair representation of the Group’s management information systems and processes underpinning its CSR performance and reporting for 2004.Dietmar Laske Andreas King Lead Verifier VerifierDet Norske Veritas BV Rotterdam London26 August 2005[Det Norske Veritas BV expressly disclaims any liability or responsibility for any decisions, whether investment or otherwise, based on this Assurance Statement]
IntroductionCRH plc (‘CRH’) requested Det Norske Veritas BV (‘DNV’) to conduct external verification of CRH’s CSR Presentation (August 2005) – ‘Sustainable Performance and Growth’, during August 2005. This is CRH’s second CSR Presentation, following the first in October 2004, and is the first to be subject to external verification.Scope of AssuranceThe CSR Presentation (August 2005) covers CRH’s CSR performance during the calendar year 2004, focusing on corporate governance, environment, health & safety, social (employees, subcontractors, community) and stakeholder communication issues. CRH was responsible for producing the CSR Presentation, while DNV was responsible for conducting external verification on statements made and management processes described.Reporting boundaries of the CSR Presentation include the CRH Group Headquarters in Belgard Castle, and all of the Group’s four Divisions: Europe Materials, Europe Products & Distribution, Americas Materials and Americas Products & Distribution, their constituent Companies and all locations which constitute CRH’s global operations. DNV noted the section ‘Brief Introduction to CRH’ (p.4-18) is based on audited financial accounts. The DNV verification did not cover the supply chain.
Verification MethodologyThe overall focus of DNV’s verification process was on corroboration of management information and processes as reported in its CSR Presentation. As part of the verification, DNV:
challenged the CSR-related statements and claims made in the report;had access to specific documents, data and information made available by CRH;conducted interviews with Group-level responsible persons for corporate governance, environment, health & safety, human resources and stakeholder communications;performed a limited number of sample visits to significant operational locations in Ireland and Poland;reviewed Group and company-level management processes for information gathering, aggregation, managing and reporting on CSR-related issues.
DNV did not conduct any interviews with external stakeholders, nor carry out any specific data-trail auditing of CRH’s environmental, health & safety and social performance data.
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Relationship to GRI GuidelinesRelationship to GRI Guidelines
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The table below is provided to signpost the relationships between the various sections of the
current CSR Presentation and the corresponding indicators specified in the 2002 GRI
Sustainability Reporting Guidelines:
Relationship to GRI Reporting Guidelines Relationship to GRI Reporting Guidelines
CRH intends to incrementally progress towards reporting its CSR performance in accordance
with the GRI Sustainability Reporting Guidelines
Section of CSR Presentation Pages Related GRI Reporting Guidelines indicatorsIntroduction to the Presentation 2 2.11 to 2.16, 2.19Contents 3 4.1Brief Introduction to CRH 4-18 2.1 to 2.8, EC1 to EC3, EC10Corporate Social Responsibility 19-21 1.1, 2.20, 3.7, 3.13, 3.19Corporate Governance 22-26 3.1 to 3.6, SO2 to SO3, SO5 to SO7Environment 27-43 3.14, 3.15, 3.19, EN1, EN2, EN5 to EN8, EN11, EN12, EN14,
EN15, EN22 to E24, EN27, EN35Health & Safety 44-54 3.14, 3.19, LA5 to LA8, SO4, PR1Social 55-70 2.8, 3.16, EN33, LA1 to LA4, LA9 to LA11, LA15, LA17, HR1
to HR5, HR13, HR14, PR8Stakeholder Communications 71-72 2.9, 2.22, 3.9 to 3.12, 3.17, SO1 Sustainability Ratings 73-75 2.21, 3.20,DNV Verification Statement 76-77 2.21, 3.20Relationship to GRI Guidelines 78-79 4.1Contact for further Information 80 2.10, 2.22
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CRH plcInvestor RelationsBelgard CastleClondalkinDublin 22Ireland
Contact person: Jim O’Brien, Group Technical Advisor
Phone: + 353 1 404 1000Fax: + 353 1 404 1007
E-mail: [email protected] look up our Website -
www.crh.com CRH® is a registered Trade Mark of CRH plc
Contact us with any further CSR queries at:Contact us with any further CSR queries at:
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