Slide 1: ESG Investor Presentation
ESG INVESTOR PRESENTATION HOLCIM – ESG ENGAGEMENT OCTOBER 2024
Slide 2: Agenda
AGENDA 1. HOLCIM AT A GLANCE Pages 3 - 9 1.1 Who We Are 4-5 1.2 Megatrends & Market Attractiveness 6 1.3 Delivering Superior Results & Returns 7 1.4 Sustainability Performance Highlights 8 1.5 ESG Ratings & Sustainability Leadership 9 2. HOLCIM ENVIRONMENTAL STRATEGY Pages 10 - 22 2.1 Our Decarboniz
Slide 3: Holcim at a Glance
01. HOLCIM AT A GLANCE
Slide 4: Who We Are
WHO WE ARE ~60K 300 Patents in green construction Employees 2030 & 2050 + 1.5 degree aligned net-zero 100 Start ups in our open innovation targets, validated by SBTi ecosystem 27 B CHF 20% reduction in our CO2 per net 40 + University # 1 R&D organization in our industry Net Sales collaborations sale
Slide 5: Global Leader in Innovative and Sustainable Building Solutions
HOLCIM GLOBAL LEADER IN INNOVATIVE AND SUSTAINABLE BUILDING SOLUTIONS DRIVEN BY OUR PURPOSE BUSINESS SEGMENTS: CEMENT AGGREGATES WE’RE ADVANCING OUR VISION 4 BUSINESS SEGMENTS DELIVERING OUR STRATEGY READY – MIX CONCRETE SOLUTIONS & PRODUCTS 5 ESG Investor Presentation | © Holcim 2024
Slide 6: Six Megatrends Driving Construction
SIX MEGATRENDS DRIVING CONSTRUCTION OUR MARKETS HAVE NEVER BEEN AS ATTRACTIVE POPULATION URBANIZATION AND SUSTAINABLE BETTER LIVING INNOVATION DRIVING REPAIR & GROWTH MEGACITIES CONSTRUCTION STANDARDS BUILDING REFURBISHMENT From ~8 billion today to Approx. 2.5 billion more SOLUTIONS and more efficie
Slide 7: Strategy 2025 Accelerating Green Growth
STRATEGY 2025 “ACCELERATING GREEN GROWTH” FINANCIAL TARGETS ACHIEVED 2 YEARS AHEAD OF PLAN DELIVERING SUPERIOR RESULTS & RETURNS STRATEGY 2025 2023 Net Sales Growth 3 - 5% organic p.a. +6.1% organic Recurring EBIT Growth OVER PROPORTIONAL TO NET SALES GROWTH ANNUALLY +14.7% organic Accelerate Growth
Slide 8: Sustainability Performance Highlights 2023
SUSTAINABILITY PERFORMANCE HIGHLIGHTS 2023 GREAT PROGRESS ACROSS ALL OUR SUSTAINABILITY PILLARS CO2 PER NET SALES PROJECTS CIRCULAR FRESHWATER EMPLOYEES CONSTRUCTION WITHDRAWAL -20% 6 8.4, +24% 298 78% REDUCTION IN 2023 CCUS PROJECTS IN EXECUTION M TONS OF CDM RECYCLED L /FRESHWATER WITHDRAWN LEVEL
Slide 9: A Leading Sustainability Profile
A LEADING SUSTAINABILITY PROFILE RECOGNIZED LEADERSHIP IN ESG RATINGS AA Rating, “Leader” among 86 Holcim leads the construction industry Construction Materials1 with top-tier ESG ratings, driven by steadfast advocacy for sustainable practices, climate action and transparency ESG Risk Rating in the
Slide 10: Holcim Environmental Strategy
02. HOLCIM ENVIRONMENTAL STRATEGY
Slide 11: Delivered Through Strategy 2025
DELIVERED THROUGH STRATEGY 2025 ACCELERATING GREEN GROWTH We are accelerating green growth across all our markets with industry-leading profitability and cash flow EXPANDING SOLUTIONS & PRODUCTS We are accelerating green growth across all our markets with industry-leading profitability and cash flow
Slide 12: Science-Based Targets Across the Three Scopes
SCIENCE-BASED TARGETS ACROSS THE THREE SCOPES UPGRADED TARGETS IN LINE WITH 1.5°C FRAMEWORK VALIDATED BY SBTI 1, 2 1, 4 1, 2 4 3 3 1 The target boundary includes land related emissions and removals from bioenergy feedstocks 2 Equivalent to the SBTi validated combined Scope 1 and 2 ambition of -26.2
Slide 13: Holcim's Pathway to Net-Zero
HOLCIM’S PATHWAY TO NET-ZERO OUR PATHWAY TO 2030 AND 2050 IS CLEAR OUR ABSOLUTE SCOPE 1 + SCOPE 2 EMISSIONS PATHWAY OUR LEVERS TO DECARBONIZE OUR SCOPE 1 + SCOPE 2 13 ESG Investor Presentation | © Holcim 2024
Slide 14: Strong Pipeline of CCUS Projects
STRONG PIPELINE OF CCUS PROJECTS EUROPE ACCELERATING CCUS WITH 14 FLAGSHIP PROJECTS Growth Enablers 6 full-scale Carbon Capture Utilization & Storage (CCUS) projects across Europe will go live at Holcim before 2030 Holcim will capture 5 million tons CO2 p.a. in Europe from 2030 and sell 8 million to
Slide 15: Industry-Leading CCUS Roadmap
INDUSTRY-LEADING CCUS ROADMAP 6 GRANTS AWARDED BY THE EU INNOVATION FUND EU INNOVATION FUND 6 GRANTS AWARDED FOR CARBON CAPTURE USAGE AND STORAGE (CCUS) Carbon2Business Go4ECOPlanet GO4ZERO KOdeCO eM-Rhône Olympus Lägerdorf, Kujawy, Poland Obourg, Belgium Koromačno, Le Teil, France Milaki, Greece Ge
Slide 16: Decarbonizing Our Energy Mix
DECARBONIZING OUR ENERGY MIX SHIFTING TO RENEWABLE ELECTRICITY Electricity makes up a significant portion of our energy use. To decarbonize electricity, we are leveraging renewable power purchase agreements and renewable energy sources like solar, hydro and wind power wherever possible. Our plants i
Slide 17: Green Power and Mobility in Europe
GREEN POWER AND MOBILITY IN EUROPE DECARBONIZING HOLCIM’S OPERATIONS FROM QUARRY TO LORRY Decarbonized Power in Europe (% of Consumption) Growth Enablers 2021 2025 2030 Power Purchase Agreements Bi-lateral green power contracts directly with the producer of decarbonized power Equity in renewable pow
Slide 18: Scope 3 2030 and 2050 Targets Validated by SBTi
HOLCIM’ SCOPE 3 2030 AND 2050 TARGETS VALIDATED BY SBTi OUR LEVERS FOR SCOPE 3 ➔ Replacing Fossil Fuels ➔ Purchasing Low ➔ 2030 and 2050 scope 3 targets validated by the Science Based Carbon Clinker and Targets initiative (SBTi) Cement ➔ These commitments drive purchasing decisions and help ➔ Decarb
Slide 19: Driving Circular Construction
DRIVING CIRCULAR CONSTRUCTION 8.4 MILLION TONS OF CONSTRUCTION DEMOLITION WASTE IN 2023 8.4 million tons construction and Launch of ECOCycle® our proprietary Europe’s Largest Urban demolition waste recycled circular technology platform, to recycle Regeneration Project built on the on track to achiev
Slide 20: Meeting Customers' Growing Demand for Low Carbon and Circularity
MEETING THE CUSTOMERS GROWING DEMAND FOR LOW CARBON AND CIRCULARITY LOW-CARBON CEMENT LOW-CARBON CONCRETE RECYCLED MATERIALS CHF CHF 24% 2+B 1+B Increase in 2023 vs 2022 in recycling volumes 19% of cement net 19% of ready-mix net of CDM sales in 2023 sales in 2023 20 ESG Investor Presentation | © Ho
Slide 21: Holcim's Nature Strategy
HOLCIM'S NATURE STRATEGY NATURE & ESG LEADERSHIP MAKING CITIES RESILIENT WITH NATURE FRIENDLY SOLUTIONS NATURE SOLUTIONS 1 of 17 companies selected to pilot world’s first SBTN 100% QUARRIES WITH REDUCTION IN REHABILITATION PLANS -33% SPECIFIC FRESHWATER IN PLACE SINCE 2022 WITHDRAWAL BY 2030 3 years
Slide 22: Sustainability & Innovation at the Heart of Our Strategy
INNOVATION SUSTAINABILITY & INNOVATION AT THE HEART OF OUR STRATEGY Global R&D 300+ Scientists 1,500 Patents 100+ startups #1 largest R&D organization in the in green construction in green construction open innovation ecosystem industry A network of We have the largest R&D organization regional hubs
Slide 23: Holcim Social Strategy
03. HOLCIM SOCIAL STRATEGY
Slide 24: Health, Safety & Environment
HEALTH, SAFETY & ENVIRONMENT OUR STRATEGY AMBITION OF “ZERO HARM” Our goal is to conduct our business with zero harm HSE OPERATING MODEL to people while minimizing our environmental footprint. Three main levers of success Critical Risk Management To eliminate serious injuries, Holcim launched the Cr
Slide 25: Empowering Our People
EMPOWERING OUR PEOPLE A BASIS FOR A HIGH PERFORMANCE ORGANIZATION GEARED FOR GROWTH TALENT & SUCCESSION DIVERSITY & INCLUSION LEARNING FOR GROWTH PERFORMANCE CULTURE AMBITION Talent oriented organization Improved Diversity and High performance organization based on the empowerment established inclus
Slide 26: Human Rights and Communities
HUMAN RIGHTS AND COMMUNITIES 2023 KEY ACHIEVEMENTS HUMAN RIGHTS HUMAN RIGHTS STRENGTHENED APPROACH ASSESSMENTS PUBLIC DISCLOSURE 125 #1 Holcim´s Human Rights Approach recognized by the 100% CEMENT SITES MENTIONS in the building Corporate Human Rights covered by Human Rights to “Human Rights” materia
Slide 27: Sustainable Procurement
SUSTAINABLE PROCUREMENT MAIN CATEGORIES TO FOCUS OUR ACTIONS IN THE SUPPLY CHAIN CLIMATE IN THE NATURE IN THE SUPPLIERS DUE SUPPLY CHAIN DILIGENCE SUPPLY CHAIN SCOPE 3 EMISSIONS A risk-based process to identify, prevent and Driving purchasing decisions to reduce the manage potential adverse ESG impa
Slide 28: Governance & Transparency at Holcim
04. GOVERNANCE & TRANSPARENCY AT HOLCIM
Slide 29: Sustainability Governance
SUSTAINABILITY GOVERNANCE GOVERNANCE APPROACH FOR SUCCESSFUL DECARBONIZATION STRATEGY HOLCIM GOVERNANCE APPROACH TO CLIMATE- AND ● Board of Directors (BoD) NATURE-RELATED RISKS AND OPPORTUNITIES Ultimate responsibility for strategy and overall governance of the company ● Health, Safety & Sustainabil
Slide 30: Board Composition
BOARD COMPOSITION COMMITTED TO RESPONSIBLE GOVERNANCE Jan Jenisch Kim Fausing Naina Lal Kidwai Jürg Oleas • Chairman • Member • Member • Member Hanne Birgitte Leanne Geale Ilias Läber Claudia Sender • Member • Member Ramirez Breinbjerg Sørensen • Vice-Chairwoman and • Member Lead Independent Directo
Slide 31: Executive Management
EXECUTIVE MANAGEMENT COMMITTED TO “ACCELERATING GREEN GROWTH” Miljan Gutovic Martin Kriegner Nollaig Forrest • Chief Executive Officer • Region Head Asia, • Chief Sustainability Officer Middle East & Africa Steffen Kindler Oliver Osswald Mathias Gaertner • Chief Financial Officer • Region Head Latin
Slide 32: Board Refreshment
BOARD REFRESHMENT A THOROUGH SUCCESSION PLANNING IN THE INTEREST OF THE COMPANY The Nomination, Compensation & Governance Committee (NCGC) is responsible for talent management on Board and Executive levels as well as the oversight of overall corporate culture ambitions Together with the Board, the N
Slide 33: Executive Committee Compensation
EXECUTIVE COMMITTEE COMPENSATION SUSTAINABILITY OBJECTIVES LINKED TO EXECUTIVE COMPENSATION Our Long Term Incentive (LTI) scheme includes a sustainability objective applicable to the performance shares The sustainability objective covers three pillars of the sustainability strategy Climate and energ
Slide 34: Governance and Compliance Framework
GOVERNANCE AND COMPLIANCE FRAMEWORK OUR POLICIES AND GUIDELINES Holcim’s governance complies with high standards, recognized as advanced across a range of third-party endorsements Very high importance for internal and external stakeholders in the Tax Transparency Annual Report published, disclosing
Slide 35: Just Transition
JUST TRANSITION COMMITTED TO DECARBONIZATION IN LINE WITH THE JUST TRANSITION PRINCIPLES “We take a whole-society approach towards reaching In 2023, we embedded the net zero, respecting human rights while creating principals of our Just Transition framework into our Climate Policy decent work and go
Slide 36: Advocacy and Engagement
ADVOCACY AND ENGAGEMENT COMMITTED TO ADVOCATING FOR POSITIONS ALIGNED WITH PARIS AGREEMENT Holcim advocates for Climate policy positions that enable DECARBONIZING 1. Carbon capture, utilization and storage (CCUS) CITIES AT COP28 Holcim engaged with key partners across the building 2. Demand for low-
Slide 37: Next Level of ESG Transparency
NEXT LEVEL OF ESG TRANSPARENCY ENHANCED TRANSPARENCY AND REPORTING IN THE 2023 ANNUAL REPORT SWISS CODE OF EU TAXONOMY SAY ON CLIMATE OBLIGATION ● Holcim has successfully ● Reporting on ● Holcim 3rd climate finalized its assessment non-financial matters report presented to its of EU Taxonomy and und
Slide 38: Climate Report Fully Embedded in Annual Report
CLIMATE REPORT FULLY EMBEDDED IN ANNUAL REPORT ENHANCING HOLCIM’S CLIMATE RELATED DISCLOSURES TCFD/TNFD ADOPTION TIMELINE SCENARIO ANALYSIS Holcim’s journey towards implementing and promoting TCFD and TNFD recommendations 38 ESG Investor Presentation | © Holcim 2024
Slide 39: Appendix
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Slide 40: FY 2023 Green Capex
FY 2023 GREEN CAPEX STRONG GROWTH IN GREEN CAPEX Six Categories: PROCESS DECARBONIZATION Reduce direct CO2 emissions Green Capex Waste heat recovery, renewable CLEAN ENERGY CO2-related energy, electrical/efficient fleet CAPEX CARBON EFFICIENT CHF 296m ECOPact, ECOPlanet, 3D printing CONSTRUCTION Gre
Slide 41: Materiality Matrix
MATERIALITY MATRIX OUR MATERIAL PRIORITIES ENVIRONMENTAL GOVERNANCE 1. Natural hazards 19. Data Protection & Privacy 2. Internal waste management 20. Political and economic 3. Biodiversity management and —--uncertainties —quarry rehabilitation 21. Fair competition 4. Raw materials 22. Corporate comm
Slide 42: Overview of Holcim Strategy 2025 Sustainability Targets
OVERVIEW OF HOLCIM STRATEGY 2025 – ACCELERATING GREEN GROWTH ON TRACK TO MEET OUR SUSTAINABILITY TARGETS HOLCIM SUSTAINABILITY Base 2023 IMPROVEMENT TARGETS ACHIEVED PERFORMANCE & Base Year RESULTS vs FY 2022 & Target Year to DATE CLIMATE & ENERGY KG CO2 NET / TON OF CEMENT 590 545 -2.9% 420 -7.6% 2
Slide 43: Disclaimer
DISCLAIMER By accessing this presentation (and the information contained herein), you agree to be bound by and liable for breach of the following terms and conditions: The presentation (and the information contained herein) is provided to you by Holcim Ltd (“Holcim”) and/or any of its subsidiaries o
Slide 44: Holcim
HOLCIM