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Corporate Responsibility Report 2014

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Corporate Responsibility Report 2014 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 nesher organizational national & environmental social performance summary resilience economic resilience resilience indicators resilience Corporate Responsibility Report 2014 1 Table of Contents 4 1. Forward from the Management 4 9 2. Foundation for Organizational Resilience 9 19 3. Foundation for National and Economic Resilience 19 25 4. Foundation for Environmental Resilience 25 5. Foundation for Social Resilience 45 45 6. Performance Indicators 57 57 7. Report Summary 2014 69 69 This Corporate Responsibility report summarizes the years 2013-2014. Please note: In October 2015, the sale of the Nesher Har Tuv plant was finalized (following a regulatory agreement). Thus, as of October 15th 2015, an additional competitor has entered the Israeli market. Any reference to the Nesher Har Tuv plant in this report refers to the time period ending on 31.12.2014 2 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 nesher organizational national & environmental social performance summary resilience economic resilience resilience indicators resilience 1 NESHER Building the Nesher Ramla plant – 1953 The Nesher Ramla plant – 2014 3 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 nesher organizational national & environmental social performance summary resilience economic resilience resilience indicators resilience Forward from the Management 2015 marks 90 years since the production of the first bag of cement by Nesher Israel Cement Enterprises. This year we look back with pride and forward with hope towards the many challenges posed by a changing business environment. Nesher believes that the Company’s long-term strength and stability depends on its ability to integrate environmental values and sustainability into its business strategy. Israel is a good example of the ability of a country with a relatively small population and limited natural resources, to develop a stable economy, flourishing agricultural sector, diverse industries and health, educational and welfare infrastructure in just a few decades. These successes place Israel among industrialized countries established many years before Israel achieved its independence. The list of challenges within and outside the country often seems endless: a dynamic geopolitical map and many security problems, the high cost of living and an ever-widening socioeconomic gap, rising education and health costs, global climate changes, global economic instability and so forth. However, strength is measured by the ability to meet these challenges and to enable the community and the economy to adapt to the changing needs. How is strength achieved in an industry that is fundamental to the country? The Company boasts a longstanding and long-term investment in human capital, fair labor relations and ongoing dialogue with employees and their representatives, meticulous attention to employee safety and health, development of top quality and highly reliable products, constant improvement of economic and environmental performance in the manufacturing plants beyond external requirements, and matching its performance and internal development processes to those of the top European cement producing facilities. This culture also ranks Nesher as a pioneer in the area of corporate responsibility. It is no coincidence that Nesher was the first industrial company in Israel to issue a public corporate responsibility report in accordance with international protocols, exactly ten years ago. It is also no coincidence that the Company was the first to publish Environmental Product Declarations. This year Nesher was acknowledged by the Ministry of Environmental Protection for its use of alternative fuels in the cement production process, turning the cement industry into an environmental solution that enabled the establishment of the largest recycling facility in Israel. In its 90th year of production, Nesher's endeavor constitutes an example of what we believe is the path to future development; ensuring the resilience of local industry in Israel and the stability of the building industry, which is a significant driving force towards growth in any country's economy. Resilience is also achieved through attentiveness and dialogue, commitment to local needs, developing managerial and performance excellence, investment in human capital and intelligent planning towards creating a flourishing industry. This has always been, and will continue to be, Nesher’s way. Amnon Dotan – Chairman Moshe Kaplinsky – CEO 4 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 nesher organizational national & environmental social performance summary resilience economic resilience resilience indicators resilience Goals and Achievements Field Goal Target Date Status Report for 2014 Organizational Culture Management and Implementation of 2016 2015 2014 2013 Goal accomplished Control Systems an ERP system Publication of quantitative data in Increasing transparency and the sixth Corporate Responsibility report, as well as a monthly report broadening environmental in the Company's website. Detailed and social reporting Ongoing 2013 environmental reporting in compliance with requirements of the PRTR law. Environmental Commitment and Responsibility Energy and Climate Reduction of greenhouse Increasing the use of alternative fuels Change gas emissions Ongoing 2013 Increasing the use of fuel The Company has begun using substitutes as alternative Refuse Derived Fuel (RDF) as an energy sources to fossil fuel 2016 2015 2014 2013 alternative fuel: 3.7% up to 20% of the fuel mix Goal achieved. Following the Increasing the use of power construction of a second gas turbine, produced by power stations the plant is powered entirely by using natural gas 2016 2015 2014 2013 electricity produced using natural gas. Nesher has been reporting since the Participation in and reporting mechanism was set up (5 years ago) to the Israeli greenhouse gas and also participates in the process emissions voluntary reporting and dialogue taking place between mechanism Ongoing 2013 the Ministry of Environmental Protection and stakeholders Continuous monitoring for main Upgrade of stacks and Air Quality 2016 2015 2014 2013 pollutants – process completed at monitoring systems Har Tuv Reduction of nitrogen Setting up a system for emission oxide (NOx) emissions 2016 2015 2014 2013 reduction at the Har Tuv plant Goal achieved. Emissions permit Compliance with the received for Har Tuv and Ramla Clean Air Act 2016 2015 2014 2013 plants 5 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 nesher organizational national & environmental social performance summary resilience economic resilience resilience indicators resilience Goals and Achievements Field Goal Target Date Status Report for 2014 Sustainable Alternative raw materials: 12.7% Leadership in implementation Material Maintaining compliance with of optimal processes for using Management and Ongoing 2013 accepted international criteria for alternative raw materials Industrial Ecology utilization of alternative raw materials. Nesher published Environmental Product Life Cycle Product Declarations (EPDs) for the Analysis (LCA) 2016 2015 2014 2013 three main types of cement in the international registry. The Company re-uses process waste that could not be used in the past. Utilization of existing wastes During 2013-2014, hundreds of and using construction waste as tonnes of refractory bricks that were material for infrastructures replaced in the Ramla plant kiln Ongoing 2013 were returned to the production process as raw material. Nesher makes deposits to the Quarries Quarries restoration plan Ongoing 2013 Rehabilitation Fund founded in accordance to statutory requirements The mapping and quantification Quantification and reduction of Waste 2016 2015 2014 2013 process at the three Nesher plants has waste at Nesher plants been completed. The use of freshwater at the Nesher Reduction of freshwater Ramla plant has been replaced by Water consumption 2016 2015 2014 2013 saltwater from the Mashav power station Social Commitment and Responsibility Ongoing operations devoid of Health and Safety injuries and a total commitment In 2014, 40 work accidents occurred to preventing human injury Ongoing 2013 Goal accomplished: 30% of the Community Increasing employee 2016 2015 2014 2013 company employees volunteer and are Involvement volunteering rates involved in activities for the community Creating a long-term social involvement plan for the 2016 2015 2014 2013 Ongoing company’s 3 plants Creating ongoing dialogue with the company’s stakeholders: employees, community, social, environmental Ongoing 2013 and professional organizations 6 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 nesher organizational national & environmental social performance summary resilience economic resilience resilience indicators resilience CEMENT PRODUCTION PROCESS Grinding Clinker production kiln חרסית ecycled raw Limestone Clay R materials .1 Mixing Pre-heating for energy efficiency .3 .2 Raw Material Feeding tone Clay S Gypsum Fly ash Industrial by-products Clinker .4 Grinding clinker and natural & recycled additives .5 .6 Cement Bags Bulk Packing Dispatch 7 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 nesher organizational national & environmental social performance summary resilience economic resilience resilience indicators resilience Cement-Based Products There is a wide range
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