Climate Change 2016 Information Request - Italcementi https://www.cdp.net/sites/2016/74/9574/Climate Change 2016/Pages/D... Climate Change 2016 Information Request Italcementi Module: Introduction Page: Introduction CC0.1 Introduction Please give a general description and introduction to your organization. With an annual production capacity of 60 million tons and 42 cement plants Italcementi Group is one of the world’s largest cement producer with a strong focus on innovation and sustainable construction materials. Along with the cement plants, Italcementi Group’s industrial network includes 15 grinding centers, 6 trading terminals, 415 concrete batching units combining the expertise, know-how and cultures of 21 countries across four continents. In 2015 the Group reported consolidated revenues of 4.3 billion Euro. Founded in 1864 and listed on the Italian Stock Exchange since 1925, Italcementi achieved important international status with the take-over of Ciments Français in 1992. Following a period of re-organisation and integration that culminates in the adoption of a single corporate identity for all Group subsidiaries, the newly-born Italcementi Group began to diversify geographically through a series of acquisitions in emerging countries such as Bulgaria, Morocco, Kazakhstan, Thailand and India, as well as operating in North America. As part of the plan to further enhance its presence in the Mediterranean area, in 2005 the Group boosted its investments in Egypt becoming one of the market leaders. In 2007 it further strengthened its presence in Asia and the Middle East. In 2014 the Group approved an extraordinary plan aimed at strengthening and streamlining the group capital structure and organization. As a member of the World Business Council for Sustainable Development (WBCSD) Italcementi Group has signed the Cement Sustainability Initiative’s Agenda for Action, the first formal commitment that binds a number of world cement industry leaders. Moreover, Italcementi has adhered to the Global Compact, a strategic initiative promoted by the United Nations to align companies operations and plans with universally accepted principles in the areas of human rights, working conditions, environment and ethics. Through the activities of i.lab, the Research and Innovation Centre rated Leed Platinum and designed by American arch. Richard Meier, the Group intends to anticipate market trends and requirements promoting the concept of sustainable construction. Italcementi was a key player in the 2015 Milan Universal Exposition delivering innovative products. In particular, the new biodynamic cement characterizes the Palazzo Italia which is the heart of Milan Expo 2015. The Group has recently launched i.nova, the innovative market approach based on 11 families of performance through which Italcementi Group aims to offer its leadership in innovation to the building community. In 2015, the Innovation Rate, which represents the incidence of high-added-value products to total turnover, rose from 6.6% to 7.9%, with an overall value of more than 337 million euro. In 2013 Italcementi established the international award arcVision Prize - Women and Architecture, which aims at promoting the designers who best interpret the role of the architect through significant civil, residential and services construction projects, particularly in the social field. CC0.2 Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001). Enter Periods that will be disclosed Thu 01 Jan 2015 - Thu 31 Dec 2015 CC0.3 Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response. Select country Belgium Bulgaria Egypt France India Italy Spain Thailand United States of America Morocco Kazakhstan Greece Canada CC0.4 Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. EUR(€) CC0.6 Modules As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sub-industries, companies in the oil and gas sub-industries, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire. If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx. Further Information 1 of 17 02/11/2016 10:39 Climate Change 2016 Information Request - Italcementi https://www.cdp.net/sites/2016/74/9574/Climate Change 2016/Pages/D... Module: Management Page: CC1. Governance CC1.1 Where is the highest level of direct responsibility for climate change within your organization? Board or individual/sub-set of the Board or other committee appointed by the Board CC1.1a Please identify the position of the individual or name of the committee with this responsibility The Board Committee which is chaired by the Chief Operational Officer (COO) endorsed with the ultimate responsibility of climate change strategy. CC1.2 Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes CC1.2a Please provide further details on the incentives provided for the management of climate change issues Who is entitled Incentivized to benefit from The type of performance Comment these incentives indicator incentives? No other indicator is more effective than CO2 intensity for climate change mitigation, as it combines most of the key levers of industrial efficiency. The CEO of Italcementi has a Long Term Incentive (LTI) of achieving the target of 640kgCO2/t cementitious by 2015 and 600kgCO2/t cementitious. The remuneration Committee of Italcementi Group has been informed of the fact that the target was not met and has received indications from Chief Executive Monetary Emissions the Sustainable Development Department. It is was worth noting that external factors, among other elements, Officer (CEO) reward reduction target were at the basis of the inability to reach the target. For example, the Government in Thailand lifted incentives for the use of biomass and Gas incentives in Egypt were also stopped. These situations led to the increased use of fossil fuels though in the case of Egypt the switch to alternative fuels helped to mitigate related emission increase. The Group acknowledges the great influence its employees can have on climate change issues and in particular in the domain of sustainable mobility. Cities increasingly face pollution problems due to the use of Monetary Behaviour change many and highly polluting vehicles. In a bid to encourage employees to actively participate in resolving this All employees reward related indicator issue, the Group covers a percentage of costs for employee public transport subscriptions and for the purchase of bicycles for commuting and other personal purposes. These incentives range from 30%-40% of full costs. Emissions reduction project Emissions reduction target Energy reduction Zone and Country managers who are sitting on the board are encouraged to take measures for reducing project impacts on climate change from Group's activities. They are rewarded when they achieve CO2 emissions Board/Executive Monetary Energy reduction reductions beyond company targets as published in the annual budget. Emission reduction projects applicable board reward target for these additional CO2 emissions reductions include using less carbon intensive fuels or carbon neutral fuels Efficiency project like biomass and reducing the clinker content of cement. Efficiency target Environmental criteria included in purchases Further Information Page: CC2. Strategy CC2.1 Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities Integrated into multi-disciplinary company wide risk management processes CC2.1a Please provide further details on your risk management procedures with regard to climate change risks and opportunities Frequency