Sustainability Kenya Report 2016

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Sustainability Kenya Report 2016 SUSTAINABILITY KENYA REPORT 2016 BAMBURI CEMENT LIMITED Corporate Ofce, Nairobi 6th Floor, Kenya-Re Tower, Mara Ragati Road, Upper Hill. | P.O. Box 10921 - 00100, Nairobi, Kenya Tel: +254 - (20) 2893000 / 2710487 Fax: +254 - (20) 2710581 Part of you. From the start Mombasa Plant 4 SUSTAINABILITY REPORT 2016 І A Member of Lafarge Holcim CONTENTS 5 REPORT BOUNDARY Our Vision and About Us Pg 6 Our Values Pg 7 Business Highlights Pg 8 What we Do Pg 9 The Year in Review Pg 11 Letter from Managing Director Pg 12 The Year In Review Page 10 14 APPROACH Our Material Issues Pg 16 Governance and Integrity Pg 17 Business Model Pg 18 18 FOCUS AREAS Our Pillars Pg 20 Letter from the MD Our People Pg 21 Page 11 Our Communities Pg 25 Climate Pg 37 Circular Economy Pg 40 Water and Nature Pg 44 Our Business Model Page 17 Our People Climate Water and Nature Page 20 Page 37 Page 44 Report Boundary SUSTAINABILITY REPORT 2016 І A Member of Lafarge Holcim 5 REPORT BOUNDARY Our Sustainability Report 2016 follows reporting guidelines set out and defined by Global Reporting Initiative (GRI) G3 which we present our important information. The year under coverage in this report is 2016 financial year (1 January 2016 to 31 December 2016). It is advisable to be reviewed together with our Integrated report and financial statements 2016 in order to get a full picture of our performance. Report Boundary 6 SUSTAINABILITY REPORT 2016 І A Member of Lafarge Holcim OUR VISION To delight our customers with innovative construction solutions while being committed to sustainability. ABOUT US THE BAMBURI CEMENT GROUP Bamburi Cement Limited (BCL) A subsidiary of LafargeHolcim, the world leader in the building materials industry. Two Plants located in Mombasa and Athi River respectively. Bamburi Special Products Limited (BSP) Wholly owned subsidiary of Bamburi Cement Ltd and the largest supplier of Ready Mix Concrete and Precast blocks. Lafarge Eco Systems Limited (LES) Wholly owned subsidiary of Bamburi Cement Ltd, focusing on sustainability of land use and quarry rehabilitation. Provides market leadership in environmental responsibility as well as a point of engagement for neighbouring communities and other stakeholders. Report Boundary SUSTAINABILITY REPORT 2016 І A Member of Lafarge Holcim 7 OUR VALUES • We believe in visible leadership and personal accountability for Health & Safety is the overarching Health and Safety at all levels and throughout the organization value of our CRISP VALUES • Living by the Health & Safety rules is a condition of employment WE FOCUS ON WE DELIVER WE ACT WITH WE ENSURE CUSTOMERS RESULTS INTEGRITY SUSTAINABILITY • We know who our • We are committed to • We create an environment where • We demonstrate leadership in customers, end-users and achieving goals with zero honesty, trust and accountability environmental infuencers are - and listen to harm to people while ourish and where compliance stewardship and we will understand what’s focused on rigorous and doing the right think is a role-model responsibility important to them – what execution of our plans lasting commitment to future generations drives their business and what • We seek to innovate and to • We have the courage to take the • We proactively engage with they value most challenge the status quo right decisions based on our various stakeholders • We are clear on what to continuously improve ethical principles and to uphold to create shared value with society creates value for our and drive lasting value for them, even when under pressure • We drive sustainable solutions customers – and then innovate, shareholders • We apply the Code of Conduct, through the entire dierentiate and deliver • We deliver today in a way local laws and ethics in all value chain on our promises with a creative that generates strong cash situations mindset and curiosity returns and even greater • We work cooperatively with results tomorrow others across the organization to meet the customer’s needs • We always respect our people and empower them to reach their full potential • We build leadership capability that inspires and enables teams and individuals to succeed We care for and Respect our • We recognize and reward high performance People, with Openness and and address underperformers in the right way • We display a mindset that is local and global – Inclusion always seeking to collaborate and share ideas, resources and best practices • We actively seek out diversity, embracing dierent ideas, experiences and perspectives Report Boundary 8 SUSTAINABILITY REPORT 2016 І A Member of Lafarge Holcim BUSINESS HIGHLIGHTS Key Financial Highlights PROFIT TURNOVER BEFORE TAX 2015 2015 39,200 8,271 2016 2016 38,034 8,458 EARNINGS/DIVIDEND PROFIT ATTRIBUTABLE PER SHARE TO SHAREHOLDERS 2015 2016 2015 EARNINGS EARNINGS PER SHARE PER SHARE 5,260 14.49 14.44 2016 DIVIDEND DIVIDEND PER SHARE PER SHARE 5,243 13.00 12.00 CASH & CASH EQUIVALENTS 2015 8,453 KES Million 2016 6,972 Report Boundary SUSTAINABILITY REPORT 2016 І A Member of Lafarge Holcim 9 WHAT WE DO Our Products POWERMAX a 42.5 grade blended cement that offers superior strength for use in building, civil and structural works. CONCRETE PRODUCTS POWERCRETE a 52.5 grade cement made in conformance to Chinese standards Ready mix concrete - pre mixed concrete to meet the requirements for the Standard Gauge Railway project. delivered to customer site as a ready to use construction product. NGUVU a 32.5 grade cement used for general building and structural works. PAVING BLOCKS High quality pre-cast concrete paving blocks TEMBO a 32.5 grade cement used as an export brand. that offer paving solutions under the brand name “BamburiBLOX” MULTIPURPOSE a 32.5 grade cement used for general building and structural works. PRE-CAST MOULD RANGE These are pre-cast mould products that POWERPLUS a 42.5 grade pure cement used for high strength concrete. include drainage and edge restraints products, fencing and walling products. ROADCEM In 2015, BCL introduced a Hydraulic Road Binder for soil stabilization in road construction works. LAFARGE ECO SYSTEMS Shamba System Through the ‘Shamba System’ local farmers are given a chance Haller Park to participate in seasonal cultivation contracts to cultivate crops Is a nature reserve that was transformed from a quarry wasteland in the plantations where feasible. This is both at the Vipingo and into an ecological paradise, incorporating a variety of plant and Diani estates. Widows and elderly locals are given priority and animal species. The park serves as a recreation hot-spot for staple foods such as maize and beans are the common crops tourists and locals. cultivated for sustenance. Butterfly Pavilion and the Butterfly Breeding House promote Locals who participate in the Shamba System applaud the the recovery of displaced butterfly species that have lost their project as it increases the arable land available to them in light habitats due to forest of the increased scarcity of arable land in the two regions. The destruction. produce is also sold to raise money for other activities such as education, clothing and medical care. Bamburi Forest Trails Are four nature routes for cycling, jogging, walking and fitness regimes. They allow visitors to experience alternating landscapes, from empty quarries, to lush forest, lakes, streams, palm groves and plantations of indigenous trees. Sunset Terrace is a restaurant that allows visitors to relax, have a meal and admire the palm garden and the Great Lake. Report Boundary 10 SUSTAINABILITY REPORT 2016 І A Member of Lafarge Holcim Report Boundary SUSTAINABILITY REPORT 2016 І A Member of Lafarge Holcim 11 THE YEAR IN REVIEW 471 To cut our Employees Carbon Emissions 0 Fatalities 4.2% Employee Turnover in 2016 CODE OF ETHICS 18% We Adopted 26,414 Female Geocycle Suppliers Employees Waste Management Signed Up 300 Hectares We Use Reclaimed. Green Energy Report Boundary 12 SUSTAINABILITY REPORT 2016 І A Member of Lafarge Holcim LETTER FROM THE MANAGING DIRECTOR I am pleased to submit this report on behalf of our Company’s Since the publication of our last ESG report we have taken good progress that has been made in advancing Sustainable decisive steps to further improve compliance with our Code Development in 2016 after our debut Environmental, Social of Business Conduct. This followed the conclusion of an and Governance (ESG) Report in 2015. Sustainability has been independent investigation related to our global operations and embedded as a key pillar in our strategy and a core value for locally and among some of the resulting measures are the the Company and therefore consider sustainability to be both a creation of a new Ethics, Integrity & Risk Committee and the responsibility and a business opportunity. adoption of a more rigorous risk assessment process focusing in particular on interactions with our third party stakeholders. Of significance was the launch of The 2030 Plan as illustrated in page 20-26, structured around a key objective which is to In 2017, we look forward to being host of the LafargeHolcim contribute to a more sustainable construction industry. Foundation Awards for the Middle East Africa region. The Awards, which operate on a three-year cycle, are the most The 2030 Plan addresses four main fields of action: climate, significant global competition for sustainable construction circular economy, water and nature, and people and design, with around CHF 2 million in prizes going to proposals communities. This report details the progress we have made that best combine sustainable construction solutions with toward a series of short term targets in 2016 towards the ultimate architectural excellence. 2030 Plan’s key goal which is generating a good portion of our net sales from enhanced sustainability solutions. Our Company is equipped to effect a real change in sustainability in the industry. As major stakeholders of the overall construction Our top of mind priority value is health & safety with continuous industry we will use our experience to influence the standards for transformation to improve and maintain our ambition of zero the industry and will work with our peers to drive a meaningful harm.
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