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Organisation Lafarge S.A. Account No 10418 Country Industry Group Construction Materials

GICS Sector Materials GICS Industry Group Materials

GICS Industry Construction Materials

GICS Sub-Industry Construction Materials

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Secondary FTSE All-World,Euro,France,Water Europe,,Carbon Action,MSCI, Expansions Complexity Full Ticker LG FP ISIN FR0000120537 Complexity Full CC2.3a. On what Energy efficiency issues have you been engaging directly with policy makers?

CC2.3a. Focus of legislation

CC2.3a. Corporate Support Position CC2.3a. Details of Improving building energy efficiency is one of the three pillars of our climate and engagement energy strategy. We believe that policies should not be limited to emissions reduction targets and should also encourage energy efficiency and innovation in the value chain - especially in the building sector. For example, codes and norms focusing on buildings’ energy performance, rather than use of specific materials, would facilitate more potential for innovation and, therefore, lead to greater reductions in CO2 emissions. We maintain permanent advocacy through position papers, in conferences, as member of working groups, as Lafarge, as member of national and/or European trade associations. Lafarge is leading initiatives such as EEB (Energy Efficiency in Buildings), launched under the auspices of the World Business Council for Sustainable Development (WBCSD) and co-chaired with United Technologies. Bringing together players from across the construction sector – investors, regulators, architects and engineers, material and equipment suppliers, and end users of solutions – EEB focuses on developing new forms of collaboration to reach an 80% reduction in building energy consumption by 2050.

Another area of engagement in favour of energy efficiency is the development of recycled building materials: 9 million tons of recycled aggregates were sold in 2014, in line with our 2020 target of selling 15 million tons per year. Alongside increasing sales in developed countries such as France and Canada, we were the first company to launch recycled aggregates in emerging markets such as Brazil and Qatar, which was supported by the establishment of new recycling facilities. The Qatari authorities have just revised the local construction specifications to allow the use of recycled aggregates. In some countries, Lafarge advocates for changing building codes, norms and standards to accept new low-carbon innovative products.

In 2015, Lafarge, represented by Bruno Lafont, CEO and Chairman of the Board, participated in the Business and Climate Summit held on May 20th-21st at Unesco in ahead of the COP 21 to be held at the end of the year in Paris; in this public forum with representatives of government and NGOs, Lafarge spoke of the need for CC2.3a. Proposed Buildingeffective codescarbon and pricing, norms frameworks focusing on promoting buildings’ technological energy performance, innovation, rather than legislative solution use of specific materials, would facilitate more potential for innovation and, therefore, lead to greater reductions in CO2 emissions. Regarding waste from construction and demolition, collection and separation of waste should be encouraged, infrastructure put in place to recycle and reuse waste and measures taken to make this industry more competitive.

CC2.3a. On what Cap and trade issues have you been engaging directly with policy makers?

CC2.3a. Focus of legislation CC2.3a. Corporate Support with minor exceptions Position

CC2.3a. Details of We look forward to the conclusion of an international agreement on the fight against engagement climate change at the climate conference to be held in Paris in 2015. Such an agreement should allow companies to pursue the implementation of cost-effective actions to reduce their CO2 emissions in a context of fair competition. It should also foster their investments for energy efficiency and innovation towards low carbon solutions throughout their value chain. Lafarge, represented by Bruno Lafont, CEO and Chairman of the Board, participated in the Business and Climate Summit held on May 20th-21st 2015 at Unesco in Paris ahead of the COP 21. We, however, believe that the lack of progress in international negotiations has led to the emergence of energy and climate policies that are not harmonized between countries and markets, which has direct negative impacts on the competitiveness of companies and their ability to take action.

We maintain permanent advocacy through position papers, in conferences, as member of working groups, as Lafarge, as member of national and/or European trade associations. CC2.3a. Proposed In 2013 the European Commission adopted the Green Paper "A framework for the legislative solution 2030 climate and energy policies" which prefigures the goals of climate and energy that the European Union could adopt for the term 2030. Lafarge contributed to the public debate by including the following points (see full details about our position online) : - 2030 EU objectives should take account of the progress of international discussions and be conditioned to the assurance of fair competition between the EU and the rest of the world, between domestic producers and importers - It is essential that an objective of competitive industrial growth is fixed, - Any objective must be adjusted to take account of economic circumstances and the speed of development of new technologies, - 2030 objectives must be realistic; to this end, sectoral roadmaps by region or country are very useful tools. With this in mind, Cembureau , the European Cement Association, launched its roadmap for a low carbon economy in 2050 ("The role of cement in the low carbon economy in 2050 ") in September 2013 at an event in the European Parliament (see http://www.cembureau.be/newsroom/article/cembureau- launches-roadmap-low-carbon-future).

CC2.3a. On what Adaptation resiliency issues have you been engaging directly with policy makers?

CC2.3a. Focus of legislation

CC2.3a. Corporate Support Position CC2.3a. Details of Lafarge participates in 'The Initiative' that promotes the benefits of concrete engagement as a building material: concrete can withstand major shocks, absorb sound, and regulate temperatures. The high level of thermal mass in concrete constructions means that indoor temperatures remain stable irrespective of external fluctuations. This sharply reduces the need for extra heating or cooling (as well as providing greater comfort). Concrete buildings can have a minimum service life of 50 years, but may remain serviceable for hundreds of years, if properly maintained. The durability and resilience of concrete makes it ideal for constructing buildings that demand high safety levels. For example, nuclear power plants and hydroelectric dams are constructed almost entirely of concrete. It has properties that will be mandatory as national building codes are revised to address extreme weather linked to climate change, such as rising sea levels and storms. Further information about The Concrete Initiative is available on its website: www.theconcreteinitiative.eu

We maintain permanent advocacy through position papers, in conferences, as member of working groups, as Lafarge, as member of national and/or European trade associations. CC2.3a. Proposed Regarding society issues, The Concrete Initiative calls for involvement of the legislative solution concrete sector in the ongoing reflection linked to sustainable development of cities (e.g. by including sustainable construction in the Smart Cities and Communities Initiative), and for a regulatory framework that incentivises and redirects sufficient financial flows to boost sustainable construction practices for transport and urban infrastructure. On the economic front, The Concrete Initiative advocates for EU industrial policies and standards that look at the performance of buildings or infrastructire projects and do not favour one material over another. It also calls for further development of the Green Public Procurement Guidelines with criteria that include whole-life performance and durability.

To successfully address greenhouse gas emissions in cities, we must not only find methods to reduce buildings' energy consumption, but also find ways to successfully implement new technologies. To make this happen, we need stronger cooperation between the public and private sectors. We therefore need the following from the public sector: • a stable policy environment with known frameworks and targets that are not constantly evolving. • the right targets and objectives: they must be set to facilitate implementation of energy efficient designs. This requires good measurement systems optimizing the whole building system rather than focusing on sub-systems or components individually • The right incentives - there is little incentive to build energy efficient buildings if the energy savings, improved comfort and desirability of the building do not translate into an economic return on investment. • Building up to innovation - prescriptive building specifications need to give way to performance specifications which will allow innovation to flourish.

CC2.3a. On what Climate finance issues have you been engaging directly with policy makers?

CC2.3a. Focus of legislation

CC2.3a. Corporate Support Position CC2.3a. Details of We promote economic policy to incentivize the R&D necessary to achieve net engagement zero CO2 emissions by 2100. In 2014 we signed the World Bank initiative ‘Putting a Price on Carbon’, a manifesto that recognizes the importance of aligning carbon pricing to incentivize reduced energy use. To this end, Chairman and CEO of Lafarge, Bruno Lafont, participated in the Private Sector Forum at September 2014’s UN Climate Summit, which brought together heads of state and leaders of international and civil society businesses to discuss the role that the private sector can – and should – play in the development of solutions to fight climate change, in the build up to UN’s Climate Change Conference (COP21) that will be held in Paris in December 2015. It is through participating and leading in these types of events, including the WBCSD’s climate and energy program that we contribute towards solutions such as carbon pricing.

CC2.3a. Proposed We believe that putting one or several prices on carbon is an effective way to legislative solution coordinate various climate policies on an international scale. The outline of such an international carbon market could be drawn in the climate agreement expected in Paris. We recognize however that a carbon market is only a means to an end and must be supported by transition policies. To be effective, a carbon market should be implemented gradually and meet certain conditions of equity and good governance. Above all, it is essential that regional and/or national climate and energy policy take into account competitiveness issues.

More details available at http://www.lafarge.com/sites/default/files/atoms/files/04222015- sustainable_development_climate-cop21_messages-uk.pdf

CC2.3a. On what Mandatory carbon reporting issues have you been engaging directly with policy makers?

CC2.3a. Focus of legislation

CC2.3a. Corporate Support Position CC2.3a. Details of In 2015, Lafarge, represented by Bruno Lafont, CEO and Chairman of the Board, engagement participated in the Business and Climate Summit held on May 20th-21st at Unesco in Paris ahead of the COP 21 to be held at the end of the year in Paris; in this public forum with representatives of government and NGOs, Lafarge spoke among other things of the need for transparency and verification on emissions.

CC2.3a. Proposed Lafarge advocates for a reliable monitoring, reporting and verification system to legislative solution follow-up on the States’ contributions to the international climate agreement expected to be reached at the COP 21 in Paris at the end of 2015. To make the whole system transparent and credible, all companies must commit to monitor, report on and have their greenhouse gas emissions checked. Globally each sector should create a database where accurate and verified information on greenhouse gas emissions and energy performance of industrial installations would be collected. Accounting for carbon emissions must be as obvious and widespread as financial accounting. It includes measuring footprint of end products throughout their lifecycle (eg life cycle analysis of buildings instead of intermediate products) in order to measure the relevance of innovations. See our public position available at http://www.lafarge.com/sites/default/files/atoms/files/04222015- sustainable_development_climate-cop21_messages-uk.pdf