Corporate sustainable development report 2007 holcim ltd strength performance passion

Awards
The best evidence of the actions behind our commitment are the
awards received from across the Group.
Awards received in 2007 Group company
Environmental Awards
Award presented by the Waterway Promotion Agency for a 46% increase in tonnage transported via waterways, Holcim France Benelux
reducing both energy consumption and CO
2
emissions.
Responsible Partnership Award – Prominence Company for Environmental and Social Commitment Holcim Brasil, Brazil
in the“Big Companies”category granted by Petrobras.
National Environmental Award from the European Ready Mixed Concrete Organization for the new ready-mix plant Holcim Süddeutschland, Germany
in Stuttgart harbor.
Environmental Saving Award called“High hanging fruits” presented by KÖVET-Inem Hungária for managing Holcim Hungária, Hungary
environmental resources in a clever and responsible manner and using innovative recovery techniques to reuse concrete.
8th Annual Greentech Environment Excellence Gold Award in the cement sector awarded to Jamul Cement for ACC, India
outstanding achievements in environment management.
Award from the Mexican Center of Philanthropy for the company’squarries rehabilitation program as best practice in CSR. Holcim Apasco, Mexico
MIMCO Environmental Excellence Award presented by the Aggregate and Quarry Association of New Zealand Holcim New Zealand
for the rehabilitation of Westport Quarry.
Titanium Achievement Award for Environment in the“Quarry”category presented to the Bulacan Plant at the Holcim Philippines
Presidential Mineral Industry Environmental Awards.
OH&S Awards
Safety Award presented by the Ready-Mix Association of Ontario for having no Lost-Time Injuries. St. Lawrence Cement, Canada
Best Overall Performance Award presented to the Kymore Plant during Mines Safety Week 2007 under the aegis ACC, India
of the Director of Mines Safety.
The Most Caring Company for Safety in Indonesia awarded by DuPont Indonesia and the Warta Ekonomi Magazine PT Holcim Indonesia
award for the successful results of Holcim Indonesia’s reduction in injuries achievement.
OH&S Management Award presented by the Ministry of Labor. Siam City Cement,Thailand
Ouarry Products Association Health and Safety Best Practice Award in the “Health, Safety and Security”category Aggregate Industries UK
for Bardon Superflex.

Portland Cement Association Safety Award for over one million man hours with no Lost-time Injury Holcim USA
at the Theodore Plant.
Social Awards
Winner of the ECO Award 2007 Competition in the“CSR–Community Development” category Holcim Brasil, Brazil
for the Ortópolis Barroso Project granted by the American Chamber of Commerce.
Social Responsibility Award 2007 presented by the Valparaíso Industrial Association, 5th Region (ASIVA). Cemento Polpaico, Chile
Best Corporate Philanthropy Program among large Croatian Companies awarded by the organization“NGO donacije.info”. Holcim Hrvatska, Croatia
UNICEF recognition for five consecutive years of support to UNICEF’s Campaign Niño Esperanza, which raises Holcim Ecuador
awareness on children’s issues in Ecuador.
Asian CSR Excellence Award in the “Concern for Health” category from the Asian Institute of Management. Ambuja Cements, India
Excellence in Sustainable Development awarded by the Swiss–Morocco Foundation for Sustainable Development. Holcim Maroc, Morocco
Top Corporate Award presented at the Romanian Donors Forum’s annual conference for being one of the most Holcim Romania
socially responsible companies in Romania.
VIRTUS Award for Corporate Philanthropy awarded by the Balkan Community Initiatives Fund for partnering Holcim Srbija, Serbia
with the local community and local NGO capacity building.
Other Awards
Best CSR/SD Report Award presented by the PR Society of Serbia in the “CSR Reporting” category. Holcim Srbija, Serbia
ACCA Sri Lanka Awards for Sustainability Reporting 2007 – winner in the “Large-Scale”category for the 2007 Holcim Lanka, Sri Lanka
Sustainability Report.
Strength. Performance. Passion.
Corporate Sustainable Development Report 2007
Holcim is a worldwide leading producer of cement and aggregates.
Further activities include the provision of ready-mix concrete and asphalt
as well as other services.The Group works in more than 70 countries
and employs almost 90,000 people.
Holcim is one of the world’s leading producers of cement and
aggregates. The Group also supplies ready-mix concrete and
asphalt and a range of other services. Holcim works in more
than 70 countries and employs almost 90,000 people.
This report documents the Group’s continuing commitment

to sustainable development (SD).
Covering the Group’s cement, aggregates and ready-mix
concrete businesses, this fourth Holcim Corporate Sustainable
Development Report focuses on key facts and figures,
highlights initiatives across the triple bottom line (economic,
environmental and social) and complements our Annual
Report 2007.
It measures our performance against existing and new
targets, and evaluates strategies and activities affecting the
economic, environmental and social performance of all Group
businesses. Each chapter features a double-page case study
and includes progress reports and performance data for 2007.
Additional information, case studies and Group company sustainability
reports about local performance and activities are available on
www.holcim.com/sustainable
Introduction
Key to symbols:
see page in this report
see our Annual Report
visit www.holcim.com for more information
reference to GRI indicator
Redoubling our effort to ensure
“zero harm” in the workplace
See page 21
75% of cement types produced by Holcim
contain mineral components, cement
constituents not derived from clinker production
See page 26
Our hard landscaping paving products
contain up to 67% recycled materials

See pages 8–9
50% of Group companies have
a community advisory panel
See page 23
16.3% reduction in specific net
CO
2
emissions per tonne of
cement compared with 1990
See page 15
Design and production
Flag
Print
Stäubli AG, Zurich on FSC paper
Copyright© 2008
Holcim/Switzerland
All rights reserved
Cover
Women sifting a harvest of groundnuts from soil in Vadnagar
village, which is adjacent to the Ambuja Cements Limited
plant in Kodinar, India. This exceptional harvest is one of
numerous benefits that this, and many other communities,
experience as a result of our environmental and social
development programmes.
This represents only a selection of awards received in 2007. For a comprehensive list of all the awards received since 2004,
see
www.holcim.com/sustainable
Awards
The best evidence of the actions behind our commitment are the
awards received from across the Group.

Awards received in 2007 Group company
Environmental Awards
Award presented by the Waterway Promotion Agency for a 46% increase in tonnage transported via waterways, Holcim France Benelux
reducing both energy consumption and CO
2
emissions.
Responsible Partnership Award – Prominence Company for Environmental and Social Commitment Holcim Brasil, Brazil
in the“Big Companies”category granted by Petrobras.
National Environmental Award from the European Ready Mixed Concrete Organization for the new ready-mix plant Holcim Süddeutschland, Germany
in Stuttgart harbor.
Environmental Saving Award called“High hanging fruits” presented by KÖVET-Inem Hungária for managing Holcim Hungária, Hungary
environmental resources in a clever and responsible manner and using innovative recovery techniques to reuse concrete.
8th Annual Greentech Environment Excellence Gold Award in the cement sector awarded to Jamul Cement for ACC, India
outstanding achievements in environment management.
Award from the Mexican Center of Philanthropy for the company’s quarries rehabilitation program as best practice in CSR. Holcim Apasco, Mexico
MIMCO Environmental Excellence Award presented by the Aggregate and Quarry Association of New Zealand Holcim New Zealand
for the rehabilitation of Westport Quarry.
Titanium Achievement Award for Environment in the“Quarry”category presented to the Bulacan Plant at the Holcim Philippines
Presidential Mineral Industry Environmental Awards.
OH&S Awards
Safety Award presented by the Ready-Mix Association of Ontario for having no Lost-Time Injuries. St. Lawrence Cement, Canada
Best Overall Performance Award presented to the Kymore Plant during Mines Safety Week 2007 under the aegis ACC, India
of the Director of Mines Safety.
The Most Caring Company for Safety in Indonesia awarded by DuPont Indonesia and the Warta Ekonomi Magazine PT Holcim Indonesia
award for the successful results of Holcim Indonesia’s reduction in injuries achievement.
OH&S Management Award presented by the Ministry of Labor. Siam City Cement,Thailand
Ouarry Products Association Health and Safety Best Practice Award in the “Health, Safety and Security”category Aggregate Industries UK
for Bardon Superflex.
Portland Cement Association Safety Award for over one million man hours with no Lost-time Injury Holcim USA
at the Theodore Plant.

Social Awards
Winner of the ECO Award 2007 Competition in the“CSR–Community Development” category Holcim Brasil, Brazil
for the Ortópolis Barroso Project granted by the American Chamber of Commerce.
Social Responsibility Award 2007 presented by the Valparaíso Industrial Association, 5th Region (ASIVA). Cemento Polpaico, Chile
Best Corporate Philanthropy Program among large Croatian Companies awarded by the organization“NGO donacije.info”. Holcim Hrvatska, Croatia
UNICEF recognition for five consecutive years of support to UNICEF’s Campaign Niño Esperanza, which raises Holcim Ecuador
awareness on children’s issues in Ecuador.
Asian CSR Excellence Award in the “Concern for Health” category from the Asian Institute of Management. Ambuja Cements, India
Excellence in Sustainable Development awarded by the Swiss–Morocco Foundation for Sustainable Development. Holcim Maroc, Morocco
Top Corporate Award presented at the Romanian Donors Forum’s annual conference for being one of the most Holcim Romania
socially responsible companies in Romania.
VIRTUS Award for Corporate Philanthropy awarded by the Balkan Community Initiatives Fund for partnering Holcim Srbija, Serbia
with the local community and local NGO capacity building.
Other Awards
Best CSR/SD Report Award presented by the PR Society of Serbia in the “CSR Reporting” category. Holcim Srbija, Serbia
ACCA Sri Lanka Awards for Sustainability Reporting 2007 – winner in the “Large-Scale”category for the 2007 Holcim Lanka, Sri Lanka
Sustainability Report.
Strength. Performance. Passion.
Corporate Sustainable Development Report 2007
Holcim is a worldwide leading producer of cement and aggregates.
Further activities include the provision of ready-mix concrete and asphalt
as well as other services.The Group works in more than 70 countries
and employs almost 90,000 people.
Holcim is one of the world’s leading producers of cement and
aggregates. The Group also supplies ready-mix concrete and
asphalt and a range of other services. Holcim works in more
than 70 countries and employs almost 90,000 people.
This report documents the Group’s continuing commitment
to sustainable development (SD).
Covering the Group’s cement, aggregates and ready-mix

concrete businesses, this fourth Holcim Corporate Sustainable
Development Report focuses on key facts and figures,
highlights initiatives across the triple bottom line (economic,
environmental and social) and complements our Annual
Report 2007.
It measures our performance against existing and new
targets, and evaluates strategies and activities affecting the
economic, environmental and social performance of all Group
businesses. Each chapter features a double-page case study
and includes progress reports and performance data for 2007.
Additional information, case studies and Group company sustainability
reports about local performance and activities are available on
www.holcim.com/sustainable
Introduction
Key to symbols:
see page in this report
see our Annual Report
visit www.holcim.com for more information
reference to GRI indicator
Redoubling our effort to ensure
“zero harm” in the workplace
See page 21
75% of cement types produced by Holcim
contain mineral components, cement
constituents not derived from clinker production
See page 26
Our hard landscaping paving products
contain up to 67% recycled materials
See pages 8–9
50% of Group companies have

a community advisory panel
See page 23
16.3% reduction in specific net
CO
2
emissions per tonne of
cement compared with 1990
See page 15
Design and production
Flag
Print
Stäubli AG, Zurich on FSC paper
Copyright© 2008
Holcim/Switzerland
All rights reserved
Cover
Women sifting a harvest of groundnuts from soil in Vadnagar
village, which is adjacent to the Ambuja Cements Limited
plant in Kodinar, India. This exceptional harvest is one of
numerous benefits that this, and many other communities,
experience as a result of our environmental and social
development programmes.
This represents only a selection of awards received in 2007. For a comprehensive list of all the awards received since 2004,
see
www.holcim.com/sustainable
Holcim response
Stakeholder engagement is an integral part of our commitment
to sustainable development.
Global Reporting Initiative (GRI)
This print report, with additional information on our

website, is aligned with the Global Reporting Initiative
(GRI) G3 Sustainability Reporting Guidelines, at an
application level of A+. To locate the elements and
information contained within the guidelines, including
disclosures on management approach to economic,
environmental and social aspects, use the GRI index at
www.holcim.com/sustainable
Holcim,along with 385 other organizations from 45 countries,
is an Organizational Stakeholder of the GRI and we are a
member of the GRI stakeholder council. To learn more
about the Organizational Stakeholder role in the
GRI go to
www.globalreporting.org/OS
For a detailed explanation of the GRI indicators, visit
www.globalreporting.org
UN Global Compact (UNGC)
With our integrated approach to sustainable development,
Holcim aims at embracing the UNGC principles. We strive
to implement the ten principles of the Compact and to use
it as a basis for advancing responsible corporate citizenship.
At the same time, the Compact provides Holcim with the
opportunity to further push our own ongoing programs
and processes in the areas of human rights, labor
standards, the environment and anti-corruption.
Our annual Communications on Progress (COP) to the
UNGC outlines Holcim’s continued commitment to the
Compact’s philosophy, intent and principles. This latest
document highlights key actions implemented in 2007
against the Compact’s ten principles as well as
confirming our sustainability priorities and performance

targets. Review the COP at
www.holcim.com/sustainable
We have considered the contents of the independent
assurance statement from csrnetwork and the feedback
from the stakeholders received during the preparation of
the report. We have taken note of not only where our
performance and reporting is considered appropriate, but
also their recommendations for improvement. Our response
to their observations against the three principles of the
AA1000 Assurance Standard is as follows:
Materiality
We are encouraged by the observation that our external
stakeholders strongly support our approach and reporting
on sustainability issues, and that they recognize the
commitment to sustainable development shown by Holcim.
We would like to assure our many stakeholders that our
commitment to sustainable development and responsible
business practice remains resolute.
We agree with the recommendation to strengthen our
reporting on engagement with customers on the development
of eco-efficient products.We would like to point out that the
topic has been addressed prominently in
our Annual Report
2007 in the chapter on innovation (pages 26–27),
and in the
case studies and examples provided in this report (pages 8–11).
This issue will be further addressed in future reporting.
Completeness
The SD materiality review provided interesting insights
at Group and Group company level. We will continue to

encourage Group companies to undertake such a review,
including feedback from external stakeholders on their views
on current and emerging issues, and will ensure alignment
with our existing Business Risk Management System.
We remain committed to responding effectively and
appropriately to current and new issues or opportunities.
As stated in the report, we anticipate a new set of targets
and activities emerging resulting from internal and external
consultations on issues such as developing a response to
“post-Kyoto” climate change issues, as well as around the new
priorities of resources conservation and sustainable product
and service solutions.
In particular, we will consider the further elaboration of new
qualitative and quantitative measures for the company’s
progress and performance, for example, in the area of recycled
aggregates as well as measures of sustainable water use, and
will report on our progress on these issues in the future.
Responsiveness
Holcim will continue to engage with stakeholders at Group
and Group company level as demonstrated by the fact that
50% of our Group companies have Community Advisory
Panels in place, and 89% of Group companies conducted
stakeholder dialog in 2007. We will also strive to collect and
aggregate stakeholder views at global level, bearing in mind
different local priorities and expectations.
Our ongoing collaboration in the area of climate and energy,
our involvement in the WBCSD Cement Sustainability
Initiative, the foreseen second GTZ Holcim stakeholder dialog
with NGOs on co-processing, the independent expert panel in
the frame of the Holcim–IUCN cooperation and the advisory

board of the Holcim Foundation for Sustainable Construction
are all excellent platforms to discuss a wide range of
sustainability issues material to our business. Based on the
results of these activities, we will investigate the need for
further dialogs.
We note the recommendations to extend external data
assurance to include priority CSR and environmental data.
As a next step, we will investigate external assurance of OH&S
data as well as data on atmospheric emissions other than
CO
2
.
Communication on progress
Performance summary
The following table is a summary of our most important SD-relevant key performance indicators (KPIs) across the Group.
GRI indicators 2005 2006 2007
The business place (in CHF million)
Net sales EC1 18,468 23,969 27,052
Input factor (cost of all goods, materials and services purchased) EC1 -10,143 -13,393 -14,026
Depreciation and amortization -1,339 -1,723 -1,919
Value creation for Holcim and key stakeholders: EC1 6,986 8,853 11,106
Benefit to employees -3,569 -4,243 -4,557
Benefit to governments (taxes) -865 -1,078 -1,201
Benefit to shareholders (incl. minorities) -564 -997 -1,201
Benefit to creditors -734 -813 -803
Retained in business 1,254 1,722 3,344
Sales of cement (million tonnes) 110.6 140.7 149.6
Sales of mineral components (million tonnes) 5.5 6.0 5.5
Sales of aggregates (million tonnes) 169.3 187.6 187.9
Sales of ready-mix concrete (million m

3
) 38.2 44.2 45.2
Sales of asphalt (million tonnes) 15.3 14.8
Sustainable product: % of cement products containing mineral components EN2 60% 70% 75%
Environmental commitment
Reducing CO
2
emissions*:
Absolute gross CO
2
emissions (million tonnes) EN16 95.4 98.2 102.8
Absolute net CO
2
emissions (million tonnes) EN16 92.8 95.3 99.7
Specific gross CO
2
emissions (kg CO
2
/tonne cementitious materials) EN16 683 664 660
Specific net CO
2
emissions (kg CO
2
/tonne cementitious materials) EN16 665 645 640
Thermal energy efficiency (MJ/tonne clinker) EN3 3,710 3,704 3,703
Thermal substitution rate (% thermal energy from alternative fuels) EN5 10.8 11.3 11.4
Clinker factor (average % of clinker in cement) EN2 75.2 73.6 72.6
Other atmospheric emissions*:
Total NOxemissions (tonnes) EN20 162,110 192,376 199,595
Average specific NOx concentration (g/tonne cementitious materials) EN20 1,315 1,190 1,220

Total SO
2
emissions (tonnes) EN20 53,575 59,144 52,670
Average specific SO
2
concentration (g/tonne cementitious materials) EN20 435 365 320
Total dust emissions (tonnes) EN20 18,380 20,191 17,735
Average specific dust concentration (g/tonne cementitious materials) EN20 150 125 110
Biodiversity and resources conservation:
% sites with quarry rehabilitation plans in place
Cement EN13 71% 89% 90%
Aggregates EN13 86% 81% 81%
Number of sites operating in environmentally sensitive areas
Cement EN11 not reported 27% 30%
Aggregates EN11 33% 14% 17%
Social commitment
Employment practices/diversity:
Females in top management LA13 8% 7% 6%
Females in senior management LA13 11% 11% 9%
Females in middle management LA13 15% 10% 16%
Occupational Health and Safety (OH&S):
Total fatalities LA7 30 26 48
LTIFR (employees) LA7 6.9 5.2 3.9
LTIFR (subcontractors) LA7 6.7 5.4 3.1
Community involvement and stakeholder engagement:
Group companies with a Community Advisory Panel SO1 44% 39% 50%
Total community spending (CHF million) EC1 32 36 48
* Emissions from the cement business only.
Progress toward targets
The following table is a status report on our progress toward goals set in the past and since the last reporting year. Targets already

achieved are not repeated here – please refer to previous reports for a summary. Note that many of these are “evolving targets”
due to the continued dynamic growth of the Holcim Group. Our priority is to ensure that Group companies and new acquisitions
embrace these measures.
All the commitments of the WBCSD Cement Sustainability Initiative have been achieved.
For more information see www.wbcsdcement.org
Area Target Progress Target Status Page
date 2007
Vision, strategy and corporate governance
Strategy Integration of SD materiality review in 2008 New 6
existing business risk management system
for use by Group companies.
Management systems ISO 14001 implemented by all cement 2004 Cement: 93% 7
plants and alternative fuels and raw materials AFR: 92%
(AFR) pre-treatment platforms.
Holcim OH&S management system Apart from our new acquisitions in India, 2006 98%
(OHSAS 18001+) implemented by all the UK and the USA, the Holcim OH&S
Group companies. management system has been implemented
by all Group companies.These new
acquisitions will do so before 2009.
Environmental commitment
Climate and energy Reduce global average specific net CO
2
We are on track to achieve our 2010 16.3% 15&28
emissions (kg CO
2
/tonne cementitious challenging target.
materials) by 20%, using 1990 as reference.
Environmental impacts Emissions monitoring and reporting This figure does not include our recent 2004 81% 17
standard implemented. acquisitions in India.We anticipate that
they will have continuous emissions

monitoring in place at all their plants by 2011.
Reduce global average specific nitrogen We have already achieved a more than 2010 NOx -5% 17&30
oxides, sulfur dioxide and dust emissions 20% reduction on specific SO
2
emissions and SO
2
-30%
(g pollutant/tonne cementitious materials) we are on track to achieve a 20% reduction Dust+9%
by 20%, using 2004 as reference. on specific dust emissions by 2010, but have
to increase our efforts to achieve a reduction
in our NOx emissions.
Quarry rehabilitation plans. 2006 90% 16&31
Social commitment
Community involvement CSR review completed by all 2009 New 23
Group companies.
OH&S Reduce lost-time injury frequency rate Despite improvements, the overall target was 2009 -25% 21&32
by at least 30% per annum in each narrowly missed by 5%.
operating company, using 2004 as
reference, from 2006 to 2009.
OH&S fatality prevention 14 fatality prevention elements are being 2008 New 21
elements implemented. developed and rolled out across the Group.
Initial implementation has already started.
OH&S contractor safety 2008 New 21
management implemented.
G3 Profile
Disclosures
G3 Management
Approach
Disclosures
G3 Performance

Indicators &
Sector Supplement
Performance Indicators
Report
Application Level
C
B
A
C
B
A
+
+ +
Report on:
1.1
2.1 - 2.10
3.1 - 3.8, 3.10 - 3.12
4.1 - 4.4, 4.14 - 4.15
Not Required
Report on a minimum of 10
Performance Indicators,
including at least one from
each of: Economic, Social and
Environmental.
Report on all criteria listed for
Level C plus:
1.2
3.9, 3.13
4.5 - 4.13, 4.16 - 4.17
Management Approach

Disclosures for each
Indicator Category
Report on a minimum of 20
Performance Indicators, at
least one from each of
Economic, Environmental,
Human rights, Labor, Society,
Product Reponsibility.
Report on each core G3 and
Sector Supplement* Indicator
with due regard to the Material-
ity Principle by either: a) report-
ing on the Indicator or b)
explaining the reason for its
omission.
Management Approach
Disclosures for each
Indicator Category
*Sector supplement in nal version
Same as requirement for
Level B
For the DJSI assessment of company performance compared with others in the sector see www.holcim.com/sustainable
Holcim response
Stakeholder engagement is an integral part of our commitment
to sustainable development.
Global Reporting Initiative (GRI)
This print report, with additional information on our
website, is aligned with the Global Reporting Initiative
(GRI) G3 Sustainability Reporting Guidelines, at an
application level of A+. To locate the elements and

information contained within the guidelines, including
disclosures on management approach to economic,
environmental and social aspects, use the GRI index at
www.holcim.com/sustainable
Holcim,along with 385 other organizations from 45 countries,
is an Organizational Stakeholder of the GRI and we are a
member of the GRI stakeholder council. To learn more
about the Organizational Stakeholder role in the
GRI go to
www.globalreporting.org/OS
For a detailed explanation of the GRI indicators, visit
www.globalreporting.org
UN Global Compact (UNGC)
With our integrated approach to sustainable development,
Holcim aims at embracing the UNGC principles. We strive
to implement the ten principles of the Compact and to use
it as a basis for advancing responsible corporate citizenship.
At the same time, the Compact provides Holcim with the
opportunity to further push our own ongoing programs
and processes in the areas of human rights, labor
standards, the environment and anti-corruption.
Our annual Communications on Progress (COP) to the
UNGC outlines Holcim’s continued commitment to the
Compact’s philosophy, intent and principles. This latest
document highlights key actions implemented in 2007
against the Compact’s ten principles as well as
confirming our sustainability priorities and performance
targets. Review the COP at
www.holcim.com/sustainable
We have considered the contents of the independent

assurance statement from csrnetwork and the feedback
from the stakeholders received during the preparation of
the report. We have taken note of not only where our
performance and reporting is considered appropriate, but
also their recommendations for improvement. Our response
to their observations against the three principles of the
AA1000 Assurance Standard is as follows:
Materiality
We are encouraged by the observation that our external
stakeholders strongly support our approach and reporting
on sustainability issues, and that they recognize the
commitment to sustainable development shown by Holcim.
We would like to assure our many stakeholders that our
commitment to sustainable development and responsible
business practice remains resolute.
We agree with the recommendation to strengthen our
reporting on engagement with customers on the development
of eco-efficient products.We would like to point out that the
topic has been addressed prominently in
our Annual Report
2007 in the chapter on innovation (pages 26–27),
and in the
case studies and examples provided in this report (pages 8–11).
This issue will be further addressed in future reporting.
Completeness
The SD materiality review provided interesting insights
at Group and Group company level. We will continue to
encourage Group companies to undertake such a review,
including feedback from external stakeholders on their views
on current and emerging issues, and will ensure alignment

with our existing Business Risk Management System.
We remain committed to responding effectively and
appropriately to current and new issues or opportunities.
As stated in the report, we anticipate a new set of targets
and activities emerging resulting from internal and external
consultations on issues such as developing a response to
“post-Kyoto” climate change issues, as well as around the new
priorities of resources conservation and sustainable product
and service solutions.
In particular, we will consider the further elaboration of new
qualitative and quantitative measures for the company’s
progress and performance, for example, in the area of recycled
aggregates as well as measures of sustainable water use, and
will report on our progress on these issues in the future.
Responsiveness
Holcim will continue to engage with stakeholders at Group
and Group company level as demonstrated by the fact that
50% of our Group companies have Community Advisory
Panels in place, and 89% of Group companies conducted
stakeholder dialog in 2007. We will also strive to collect and
aggregate stakeholder views at global level, bearing in mind
different local priorities and expectations.
Our ongoing collaboration in the area of climate and energy,
our involvement in the WBCSD Cement Sustainability
Initiative, the foreseen second GTZ Holcim stakeholder dialog
with NGOs on co-processing, the independent expert panel in
the frame of the Holcim–IUCN cooperation and the advisory
board of the Holcim Foundation for Sustainable Construction
are all excellent platforms to discuss a wide range of
sustainability issues material to our business. Based on the

results of these activities, we will investigate the need for
further dialogs.
We note the recommendations to extend external data
assurance to include priority CSR and environmental data.
As a next step, we will investigate external assurance of OH&S
data as well as data on atmospheric emissions other than
CO
2
.
Communication on progress
Performance summary
The following table is a summary of our most important SD-relevant key performance indicators (KPIs) across the Group.
GRI indicators 2005 2006 2007
The business place (in CHF million)
Net sales EC1 18,468 23,969 27,052
Input factor (cost of all goods, materials and services purchased) EC1 -10,143 -13,393 -14,026
Depreciation and amortization -1,339 -1,723 -1,919
Value creation for Holcim and key stakeholders: EC1 6,986 8,853 11,106
Benefit to employees -3,569 -4,243 -4,557
Benefit to governments (taxes) -865 -1,078 -1,201
Benefit to shareholders (incl. minorities) -564 -997 -1,201
Benefit to creditors -734 -813 -803
Retained in business 1,254 1,722 3,344
Sales of cement (million tonnes) 110.6 140.7 149.6
Sales of mineral components (million tonnes) 5.5 6.0 5.5
Sales of aggregates (million tonnes) 169.3 187.6 187.9
Sales of ready-mix concrete (million m
3
) 38.2 44.2 45.2
Sales of asphalt (million tonnes) 15.3 14.8

Sustainable product: % of cement products containing mineral components EN2 60% 70% 75%
Environmental commitment
Reducing CO
2
emissions*:
Absolute gross CO
2
emissions (million tonnes) EN16 95.4 98.2 102.8
Absolute net CO
2
emissions (million tonnes) EN16 92.8 95.3 99.7
Specific gross CO
2
emissions (kg CO
2
/tonne cementitious materials) EN16 683 664 660
Specific net CO
2
emissions (kg CO
2
/tonne cementitious materials) EN16 665 645 640
Thermal energy efficiency (MJ/tonne clinker) EN3 3,710 3,704 3,703
Thermal substitution rate (% thermal energy from alternative fuels) EN5 10.8 11.3 11.4
Clinker factor (average % of clinker in cement) EN2 75.2 73.6 72.6
Other atmospheric emissions*:
Total NOxemissions (tonnes) EN20 162,110 192,376 199,595
Average specific NOx concentration (g/tonne cementitious materials) EN20 1,315 1,190 1,220
Total SO
2
emissions (tonnes) EN20 53,575 59,144 52,670

Average specific SO
2
concentration (g/tonne cementitious materials) EN20 435 365 320
Total dust emissions (tonnes) EN20 18,380 20,191 17,735
Average specific dust concentration (g/tonne cementitious materials) EN20 150 125 110
Biodiversity and resources conservation:
% sites with quarry rehabilitation plans in place
Cement EN13 71% 89% 90%
Aggregates EN13 86% 81% 81%
Number of sites operating in environmentally sensitive areas
Cement EN11 not reported 27% 30%
Aggregates EN11 33% 14% 17%
Social commitment
Employment practices/diversity:
Females in top management LA13 8% 7% 6%
Females in senior management LA13 11% 11% 9%
Females in middle management LA13 15% 10% 16%
Occupational Health and Safety (OH&S):
Total fatalities LA7 30 26 48
LTIFR (employees) LA7 6.9 5.2 3.9
LTIFR (subcontractors) LA7 6.7 5.4 3.1
Community involvement and stakeholder engagement:
Group companies with a Community Advisory Panel SO1 44% 39% 50%
Total community spending (CHF million) EC1 32 36 48
* Emissions from the cement business only.
Progress toward targets
The following table is a status report on our progress toward goals set in the past and since the last reporting year. Targets already
achieved are not repeated here – please refer to previous reports for a summary. Note that many of these are “evolving targets”
due to the continued dynamic growth of the Holcim Group. Our priority is to ensure that Group companies and new acquisitions
embrace these measures.

All the commitments of the WBCSD Cement Sustainability Initiative have been achieved.
For more information see www.wbcsdcement.org
Area Target Progress Target Status Page
date 2007
Vision, strategy and corporate governance
Strategy Integration of SD materiality review in 2008 New 6
existing business risk management system
for use by Group companies.
Management systems ISO 14001 implemented by all cement 2004 Cement: 93% 7
plants and alternative fuels and raw materials AFR: 92%
(AFR) pre-treatment platforms.
Holcim OH&S management system Apart from our new acquisitions in India, 2006 98%
(OHSAS 18001+) implemented by all the UK and the USA, the Holcim OH&S
Group companies. management system has been implemented
by all Group companies.These new
acquisitions will do so before 2009.
Environmental commitment
Climate and energy Reduce global average specific net CO
2
We are on track to achieve our 2010 16.3% 15&28
emissions (kg CO
2
/tonne cementitious challenging target.
materials) by 20%, using 1990 as reference.
Environmental impacts Emissions monitoring and reporting This figure does not include our recent 2004 81% 17
standard implemented. acquisitions in India.We anticipate that
they will have continuous emissions
monitoring in place at all their plants by 2011.
Reduce global average specific nitrogen We have already achieved a more than 2010 NOx -5% 17&30
oxides, sulfur dioxide and dust emissions 20% reduction on specific SO

2
emissions and SO
2
-30%
(g pollutant/tonne cementitious materials) we are on track to achieve a 20% reduction Dust+9%
by 20%, using 2004 as reference. on specific dust emissions by 2010, but have
to increase our efforts to achieve a reduction
in our NOx emissions.
Quarry rehabilitation plans. 2006 90% 16&31
Social commitment
Community involvement CSR review completed by all 2009 New 23
Group companies.
OH&S Reduce lost-time injury frequency rate Despite improvements, the overall target was 2009 -25% 21&32
by at least 30% per annum in each narrowly missed by 5%.
operating company, using 2004 as
reference, from 2006 to 2009.
OH&S fatality prevention 14 fatality prevention elements are being 2008 New 21
elements implemented. developed and rolled out across the Group.
Initial implementation has already started.
OH&S contractor safety 2008 New 21
management implemented.
G3 Prole
Disclosures
G3 Management
Approach
Disclosures
G3 Performance
Indicators &
Sector Supplement
Performance Indicators

Report
Application Level
C
B
A
C
B
A
+
+ +
Report on:
1.1
2.1 - 2.10
3.1 - 3.8, 3.10 - 3.12
4.1 - 4.4, 4.14 - 4.15
Not Required
Report on a minimum of 10
Performance Indicators,
including at least one from
each of: Economic, Social and
Environmental.
Report on all criteria listed for
Level C plus:
1.2
3.9, 3.13
4.5 - 4.13, 4.16 - 4.17
Management Approach
Disclosures for each
Indicator Category
Report on a minimum of 20

Performance Indicators, at
least one from each of
Economic, Environmental,
Human rights, Labor, Society,
Product Reponsibility.
Report on each core G3 and
Sector Supplement* Indicator
with due regard to the Material-
ity Principle by either: a) report-
ing on the Indicator or b)
explaining the reason for its
omission.
Management Approach
Disclosures for each
Indicator Category
*Sector supplement in nal version
Same as requirement for
Level B
For the DJSI assessment of company performance compared with others in the sector see www.holcim.com/sustainable
Contact us at Holcim
CSR/SD Coordination
Barbara Dubach
Phone +41 58 858 82 73
Fax +41 58 858 82 34

Corporate Communications
Roland Walker
Phone +41 58 858 87 10
Fax +41 58 858 87 19

Investor Relations
Bernhard A. Fuchs
Phone +41 58 858 87 87
Fax +41 58 858 80 09

1
An inventory of over 300 cement and aggregate
quarries and their biodiversity approach has been
established
See page 18
5,000 ideas to build
a sustainable future
See page 11
Performance summary
Progress toward targets
Chairman and CEO statement 2
Vision, strategy and corporate governance 4
Sustainable development at the core of our business 4
Embedding values for business success 4
Operating with integrity 4
Managing SD 5
Mapping material issues 6
Focusing on SD priorities 7
Looking forward 7
Implementation of management systems 7
Case study: Investing in products
that benefit customers and society 8
The business place 10
Creating business value 10
Innovation potential along the construction value chain 10

Meeting customers’ needs 11
Working with suppliers 11
Case study: Renewable energy initiatives
1122
Environmental commitment 14
Climate, energy and building materials 14
Collaboration on global challenges 14
Drivers of CO
2
performance 15
Reducing the use of non-renewable resources 15
Conserving the ecosystem and biodiversity 16
Controlling atmospheric emissions 17
Managing water resources 17
Optimizing transport 17
Environmental compliance and investments 17
Case study: Collaboration with the
World Conservation Union (IUCN)
18
Social commitment 20
Making Holcim an attractive employer 20
Engaging with our employees 20
Developing our people 20
Providing a safe workplace 21
Upholding human rights 22
Dialog with external stakeholders 23
Community involvement 23
Case study: Social engagement in Kodinar 24
Performance data 26
The business place 26

Environmental commitment 28
Social commitment 32
Methodology and assurance 34
PricewaterhouseCoopers statement 35
Independent assurance statement 36
Holcim response
Communication on progress
Awards
Contents
Approximately 1% of net income before tax
is spent on community initiatives
See page 23
Building a sustainable future:
our agenda and our contribution
Economic highlights
Recognized as “leader of the industry” in the Dow Jones
Sustainability Index for the third year running
SAM Gold Class classification for 2008
Environmental highlights
16.3% reduction in net
CO
2
emissions per tonne of
cement compared with 1990
New partnership with IUCN to manage and mitigate our
biodiversity footprint
Social highlights
Increased the percentage of Community Advisory Panels
at plant level from 39% to 50%
100% of Group companies to complete a CSR review

by 2009
2
Dear stakeholder
Building materials are the backbone of socio-economic development
Over the last five years, the world economy has grown at a rate
of 4–5% and the world population is projected to increase from
6.7 billion people in 2007 to more than 8 billion by 2030, with
most of the growth taking place in the developing world.
Continued economic growth, driven by entrepreneurship, is
indispensable in raising living standards across all strata of
society, not least in securing high rates of employment and
creating opportunities for millions of entrants in the job market.
These rates of growth require the construction of urban and
rural infrastructure and housing. The EU estimates that
buildings account for up to 40% of primary energy consumption.
Adopting a more sustainable approach to construction will be
key to securing long-term environmental, economic and social
viability. Given its long life cycle, and owing to its natural
thermal inertia, concrete is one of the most energy-efficient
and eco-friendly building materials. Holcim is committed to
contributing in a responsible way by providing sustainable
building materials and services, and the work undertaken by the
Holcim Foundation to promote sustainable construction is an
indication of how seriously we take this responsibility.
We all have a role to play in addressing the triple bottom line
All players in society, including individuals, governments,
businesses and NGOs, have to collectively ensure that sustained
economic growth doesn’t overburden limited resources. Key
challenges need to be addressed simultaneously – particularly
risks related to energy supply and the impacts of climate change,

the degradation of ecosystems with a resulting loss of
biodiversity, and increasing water scarcity.
Holcim acknowledges its own significant role in tackling these
issues. We recognize the contribution we can make toward
sustainable development: at an operational level as building
materials manufacturers, as providers of goods and services in
the building materials value chain, and through collaboration
and partnerships. A precedent condition to making a meaningful
contribution to sustainable development is to have an adequate
return on invested capital.
Embedding sustainable development in our operations
In implementing our sustainable development agenda, the
primary focus remains improving the performance of our
*
This report is aligned with the Global Reporting Initiative (GRI) G3
Sustainability Reporting Guidelines released in October 2006, at an
application level of A+.
core processes in cement manufacturing, aggregate
operations and in other construction materials and services.
We are developing products with lower carbon intensities,
by finding viable alternatives to clinker and through increased
efficiencies in the production process. By the end of 2007,
we had achieved a 16.3% reduction in net
CO
2
emissions per
tonne cement, compared with 1990.
In terms of our drive to ensure “zero harm” in the workplace,
we deeply regret that despite our enormous efforts and good
progress made in reducing the lost-time injury frequency rate,

far too many of our own employees and contractors lost their
lives in 2007 as a result of work-related incidents. To reverse
this trend, we will redouble our efforts in this area.
Due to the local nature of our business, investment in
community relations is important for long-term success,
particularly in developing countries where our operations are
often located in remote rural areas. To ensure the quality of
our community initiatives, we are in the process of rolling out
a Social Engagement Scorecard across the Group, which helps
ensure that our investments deliver maximum benefit for
society and the company.
Contributing to sustainable development through partnerships
Experience has taught us that we can achieve much more
through memberships and partnerships than by working
alone. We continue to support the UN Global Compact and
we are also working with the World Business Council for
Sustainable Development to develop a sector approach that
will contribute to a post-Kyoto framework on climate change.
Our work with the international cooperation enterprise GTZ is
a good example of a very fruitful public-private partnership.
As a result of this collaboration, Holcim is implementing
jointly developed guidelines on co-processing waste in
cement production in countries which do not yet have
a fully developed regulatory framework.
Because biodiversity is increasingly relevant, we signed an
agreement with the World Conservation Union (IUCN) to
review biodiversity management in our quarry operations. We
anticipate that the expert “know-how” provided by the IUCN
will enhance our approach on how to deal with these issues.
Commitment to sustainability is at the heart of our business

This report highlights our progress against targets and
gives performance data across a broad range of indicators,
including those from the Global Reporting Initiative* that are
material to our business. We have also extended the scope of
assurance of the report. This now includes verification of
CO
2
emissions data, an opinion on whether we are reporting on
meaningful issues, and comment on the effectiveness of our
processes and systems. Holcim’s commitment is recognized
externally at a local and global level. Since last reporting on
our sustainability activities, we have been recognized as
“leader of the industry” in the Dow Jones Sustainability Index
for the third year running, and received the SAM Gold Class
classification for 2008.
We thank our employees, customers, suppliers and partners
for helping us to create value in a responsible manner and
live up to our commitment to sustainable development. We
would like to reassure all our stakeholders that our dedication
remains resolute.
Rolf Soiron Markus Akermann
Chairman of the Chief Executive Officer
Board of Directors
May, 2008
Chairman and CEO statement 3
We aim to deliver on this promise through our products, services,
communications and, above all, the behavior of our people.
This is vital, especially given the pace of growth Holcim has
sustained in recent years, both organic and through acquisition.
Operating with integrity

At Holcim, we recognize the importance of operating with
integrity and apply high standards of corporate governance
in the conduct of our business. By demonstrating responsible
and transparent leadership and management, we earn
the trust of our stakeholders, which is essential to achieving
long-term success.
The Holcim Code of Conduct is applied throughout the Holcim
Group. It establishes a common and consistent framework across
our global organization, and provides direction and clarification
on the conduct of our daily business. For more information
see www.holcim.com
To deliver on what we
promise, line managers
are committed to
implementing Group targets
and agreed objectives.
4
Vision, strategy and corporate governance
At Holcim, we recognize the importance of operating with integrity
and apply high standards in our business conduct.
Highlight
Sustainable development at the core of our business
Our vision is to provide foundations for society’s future.
We aspire to be the world’s most respected and attractive
company in our industry, creating value for all our stakeholders.
Placing sustainable development (SD) at the core of our
business strategy aims to enhance this value, safeguards
our reputation and contributes to continued success.
Group strategy and our approach to value creation (see
graphic) integrates economic, environmental and social

impacts – the three elements of the “triple bottom line”.
To achieve our business goals and maintain our license
to operate, we have established ambitious Group-wide
SD targets. See inside front cover flap.
Embedding values for business success
Holcim’s corporate values – strength, performance, passion –
are in essence a promise to perform and thus help to build
and sustain trust with our stakeholders.
Strength being a solid partner; based on the integrity of our
people, and our global leadership and competence
Performance delivering on our promises to each other and to
our stakeholders, and providing the best solutions
for our customers
Passion embodying dedication and commitment, and caring
about everything we do: our people, our customers,
our communities and the environment
Working within the triple bottom line
Creating added value is Holcim’s paramount objective, an objective that is based
on the three strategic pillars and determines guidelines in the functional sectors.
The most important foundation on which everything rests is a workforce that
gives its best on a daily basis.
Creation of Value
StrategyMindsetsBase Goal
Product Focus
Sustainable
Environmental
Performance
Better Cost
Management
Permanent

Marketing
Innovation
Human
Resources
Excellence
Corporate
Social
Responsibility
(CSR)
Geographic
Diversification
Local Management
Global Standards
People
“Holcim is a progressive company with a great story
to tell. The data demonstrates that Holcim is making
a difference where it matters, on absolute and specific
CO
2
emissions, and the clinker factor. But it could take
a more visible seat at the table in the debate on climate
change, on the global stage and at a regional level.”
Professor Andrew Hoffman, University of Michigan
5Vision, strategy and corporate governance
The Holcim Compliance
Policy sets the rules for compliance
with external laws and
regulations as well as with Group-
wide internal policies.
To ensure that employees and managers are aware of their

responsibilities under the Code of Conduct, each Group
company implements its own appropriate measures. These
may include, for example, integration into employment
contracts, a requirement for all employees to sign the Code
of Conduct, information and training sessions, translation
into local languages, articles in internal newsletters and
other reinforcement activities.
As well as covering all aspects of our operations, the Code makes
specific provisions on bribery and corruption. Local management
takes additional reinforcement measures as circumstances
warrant, and this may include more detailed information and
training, double signatures and specific policies. Group-level
induction and management seminars also aim to build
broader awareness and understanding of the issues involved.
All employees are expected to adhere to the Code of Conduct.
We do not tolerate violations. Non-compliance may be subject
to disciplinary sanctions, including termination of employment.
Managing SD
Our reputation as an industry leader in sustainability is based
on our conviction that we have to deliver on what we promise
and our compliance with internal and external standards.
Key to this is the commitment of line managers to implement
Group targets and agreed objectives.
A steering group for SD operates as a subcommittee of the
Executive Committee (Exco). The SD steering committee includes
the CEO, two Exco members responsible for SD and OH&S,
and SD functional managers. It supports executive and Board
decision-making and sets the direction for our SD engagement.
At Exco level, responsibility for SD is united under Benoît-H. Koch.
Bernard Kueng is the Group SD functional manager covering all

departments with specific SD responsibilities.These are Corporate
Industrial Ecology,Corporate Environmental Relations, and CSR/SD
Coordination. OH&S reports to Exco member Thomas Knöpfel.
The following chart illustrates our integrated approach to SD
management at the levels of the Group and Group companies.
AFR managers
Environmental
coordinators
CSR
coordinators
Occupational
Health and Safety
coordinators
Vesta Forum
Environmental
coordinators
conference
CSR forum
Occupational
Health and Safety
meetings
Corporate
Industrial
Ecology
Corporate
Environmental
Relations
CSR and
Sustainable
Development

Coordination
Occupational
Health and Safety
SD
committees
Sustainable
Development
Function
Sustainable
Environmental
Performance
Committee
SD steering
committee
Exco
Group
companies
SD learning
platforms
SD
functions
Integrated approach to SD management
“The Holcim Corporate Sustainable Development Report presents the environmental
and social initiatives of the company’s global business, in a comprehensive manner.
In particular, the report lays down several replicable measures to reduce the ecological
footprint of the cement industry, in line with the overall vision of the Holcim Group.
The company is in a position to further emerge as a sector leader by setting high
standards of sustainability reporting in context of the cement and construction sector.”
Dr Arun Kumar, President, Development Alternatives, India
SD learning platforms at global and regional level enable

internal alignment and the exchange of best practices.
Coordinators have been appointed at Group company level
to enable implementation of Group targets and policies.
The role of the SD steering committee and SD functions
is described above right.
The Sustainable Environmental Performance (SEP) Committee
supports the overall decision-making process and proposes
key issues to the Executive Committee.
6
Mapping material issues
Holcim has a well-established process for managing business
risk, with a robust system for identifying and mapping risks at
both corporate and Group company level.
See page 74 in our
Annual Report.
In 2007, we started to implement a materiality
review to ensure that relevant sustainability risks and
opportunities are integrated into our broader business risk
management system.
The feedback provided by external stakeholders validated
the review process and confirmed the issues afforded the
highest priority at Group
level.
Issues and their priority will
be revisited regularly as part of our SD management process
and in response to ongoing feedback from stakeholders.
The results of the Group-level materiality review are
summarized in the graphic opposite. It reflects the diverse
views of the 16 external stakeholders who were interviewed.
CO

2
and energy are universally seen as being of high concern
to stakeholders and having a high impact on Holcim. There
is also consensus among stakeholders that atmospheric
emissions and eco-efficient products have to be high priority.
The issues where there are a wide range of views include
customer and supplier relationships, economic impact,
occupational health and safety, community involvement and
stakeholder engagement. This reflects the interests and the
constituency of the stakeholders interviewed.
Sustainable construction, resources management and
employment practices show a difference between the
external and internal view.This may be due to the fact that
employment practice is an internal issue whereas the other
topics are of immediate importance to Holcim, but may only
become important to external stakeholders in the future.
Corporate governance was only ranked by less than half of
the external stakeholders, but those who did, agree that this
is of high importance.
SD materiality review
confirms that our SD priorities
match SD material issues of
concern to stakeholders.
Highlight
As another example of Holcim’s “global standards – local
management” approach, the SD materiality review was
piloted during 2007 in several Group companies (Brazil,
Ecuador, India and Spain) prior to roll-out, as a recommended
tool in the existing business risk management system to the
operations worldwide from 2008 onwards. Results of the

pilots, which also included feedback from external
stakeholders, revealed that while the full list of material
issues is consistent with the Group-level review, priority
weightings understandably differ according to local
circumstances, stakeholder expectations and concerns.
“The challenges of SD are so wide that a company has
to focus or it will get lost. By presenting information in
this way (the SD materiality review), the company allows
stakeholders to have an overview of key issues, and how
Holcim is prioritizing them, and to discuss and challenge
this if necessary.”
Holger Wallbaum, Chair in Sustainable Construction,
Swiss Federal Institute of Technology (ETH Zurich)
Corporate governance
Customer and
supplier relations
Economic impact
Low Medium High
Economic
Issues
OH&S
Employment practices
Community involvement
and stakeholder relations
Social
CO
2
and energy
Ec0-efficient products
Sustainable construction

Atmospheric emissions
Resources management
and biodiversity
Waste, water and transport
Environmental
Holcim view – result of Holcim business risk management process.
External stakeholder view – result of interviews with 16 external
stakeholders including academics, government officials, NGOs,
suppliers, analysts and customers at a global level.
View from Holcim and external stakeholders coincide.
Range of external stakeholder views.
Represents a clear difference between internal and external view.
Low: Low level of concern to stakeholders and low level of current
impact on Holcim.
High: High level of concern to stakeholders and high level of current
or potential impact on Holcim.
Importance of issues – global view
SD materiality review – aligning global stakeholder feedback
with current Group priorities
See www.holcim.com/sustainable for more information.
7
Aggregates plants Cement plants
Ready-mix plants AFR pre-treatment platforms
0
20
40
60
80
100
37

85
2005 2006 2007
64
40
90
78
37
59
61
56
93
92
Resources conservation, as
well as sustainable product
and service solutions have
joined our list of priorities.
Highlight Highlight
Implementation of ISO 14001
is gradually increasing in all
business segments.
Vision, strategy and corporate governance
Focusing on SD priorities
Our SD journey started several decades ago and has become
more explicit over the course of the last 10 years. Today, it is
an integral part of our business strategy. Our focus now is to
promote and strengthen the SD culture so that it continues
to add value to everything we do. While we have made some
significant achievements, we recognize that the journey is far
from over. Continuity and focus are important. Our environmental
and CSR priorities, which have been emphasized over the last

few years, remain relevant, and are:
• Occupational health and safety (OH&S)
• Climate and energy
• Community involvement
• Stakeholder engagement and partnerships
• Sustainable construction.
As the environment in which we operate evolves, our priorities
reflect this evolution and the following topics joined the list
of our priorities:
• Resources conservation
• Sustainable product and service solutions.
The importance of these issues has also been confirmed with
global and local stakeholders, who consider them to be key
areas of our SD strategy.
See page 6, SD materiality review.
Looking forward
While this report documents progress toward targets and
current priorities, we anticipate a new set of targets and
activities emerging resulting from internal and external
engagement on issues such as developing a response to
“post Kyoto” climate change issues, as well as around the new
priorities of resources conservation and sustainable product
and service solutions identified above.
Holcim’s Environmental Management System includes the
Plant Environmental Profile (PEP) monitoring and reporting
tool, which goes beyond ISO 14001, covering all operational
segments (cement, aggregates, and ready-mix). The Holcim
CSR Approach is the management system for implementation
of all elements of our CSR policy in all our operations.
Implementation of management systems

Our “global standards – local management” approach
recognizes
the dual emphasis of strong and consistent
management while also recognizing local conditions and
market needs – because that is where value is created. Group-
wide standards and systematic benchmarking allow us to
enhance performance to support our organizational
stewardship and by so doing help reinforce our image. To
achieve success, we aim to strike the right balance between
local responsibility and global leadership, multiplying good
practices as far as practicable across our global network.
ISO certification is the starting point in managing our
performance. Since 2002, we have gradually increased the
implementation of the different ISO management system
standards throughout the Group. The Group’s OH&S
management system goes beyond what is required by
OHSAS 18001 and we therefore measure Group companies’
performance on the basis of our own standard. The following
chart describes progress.
Implementation of ISO 14001
% of plants
8
Investing in products that benefit customers and society
Our focus on innovative customer solutions is key to improving
our own performance and that of our customers. We are
providing solutions to meet the increased demand for concrete
and cement while also proactively engaging our customers to
encourage demand for sustainable and eco-efficient products,
although this sometimes represents a challenge as it takes
time to build trust in new products.

In 2007, 75% of cement types produced by Holcim contained
significant amounts of mineral components. These are cement
constituents that are not derived from clinker production and
include blast furnace slag and fly ash.
The following examples
demonstrate how we are
gaining competitive advantage
for our brands while enabling
us to promote awareness
of sustainable products
among stakeholders. For more
information on innovation see pages 26 and 27 in our Annual Report.
Envirocore™: recycled or co-processed content
In a highly competitive market, Holcim US developed the
Envirocore™ family of products as an integral part of its
eco-efficiency program. Envirocore™ products contain material
that has been recycled or co-processed. The range includes
composite cements, supplementary cementitious materials (
slag
cement or fly ash) and masonry cements. These are marketed
via a dedicated website, which also
provides guidance on
sustainable construction and sustainable
building standards,
including LEED (Leadership in Energy and Environmental
Design) – a benchmark for the design, construction and operation
of high-performance green buildings.
For more information see
www.envirocore.us
In particular, GranCem, a composite cement promoted by

Holcim US and St. Lawrence Cement in Canada, is the preferred
brand being selected for many large-scale projects, not only for
its durability and mass concrete applications but also because
it is a significant help to builders obtaining LEED certification.
Case study
9
Aggregate Industries UK – sustainable construction products
In the UK, the marketplace is placing increasing value on
the use and reuse of materials in construction. The recovery
of materials following demolition can be problematic, in
particular through the contamination of concrete
materials from steel and other materials.
In Masterblock, one of Aggregate Industries UK’s businesses,
the demand for building blocks using high percentages of
reclaimed materials is growing. Four years ago, EnviroBlock
©
was
developed. The product contains 100% recycled aggregate or
100% secondary aggregate derived from the china clay industry.
This material is replacing quarried aggregates in building
materials that set a high standard in terms of their
sustainability credentials. EnviroBlock has been externally
evaluated by the Building Research Establishment (BRE)
and has an “A”-rated Environmental Profile.
For more
information on sustainable products see www.aggregate.com
Optimizing the use of raw materials in ready-mix concrete
The economical, large-scale production of concrete calls
for optimization of the composition of raw materials to
achieve required standards and satisfy market requirements

in the most efficient manner. Holcim has developed a set
of interrelated tools, known as MixMaster, designed to
optimize mix designs at Holcim Ready-Mix operations.
The toolkit includes software containing an optimization engine
that calculates the set of raw materials and mix proportions to
produce concrete that complies with technical specifications,
with the most efficient use of raw materials possible. This
drives down costs, reduces consumption of raw materials,
ensures more consistency of product and facilitates a quicker
response to specification changes. Thus, there are benefits to
the environment, our customers and the company.
By the end of 2007, the MixMaster tool had been implemented
in 22 countries and there are plans to implement the tool in
a further 19 countries by the end of 2009.
Holcim Group companies are at the forefront of developing
sustainable products. For example, Aggregate Industries’ Charcon
EcoPave is used for the hard landscaping of commercial areas,
towns and cities. This product optimizes manufacturing
processes and minimizes usage of raw materials to produce hard
landscaping with excellent sustainability credentials.
Investing in products that benefit customers and society
10
The presence of Holcim
significantly contributes
to the economic health
of a region.
Highlight
“The recently launched WBCSD Measuring Impact Framework aims to help
companies measure and assess their contribution to economic and broader
development goals in the societies in which they operate. Holcim agreed to

pilot the methodology at one of its operations in Ecuador. Their experience
provided useful feedback to finalize the Framework and helpful insights
into understanding how its Ecuadorian operation is impacting the
communities around the site.”
Shona Grant, Managing Director, WBCSD Development Focus Area
Cement,
aggregates,
concrete
and other
construction
materials
Payments
Goods and
services
Monetary flows
Source: Holcim, 2007 data* See page 27 for additional information on political contributions and subsidies.
Non-monetary flows
Dividends Capital Interest Capital Taxes Services Salaries Labor Good
neighbor
Freedom
to operate
SUPPLIERS
Input costs (CHF 14.0 billion)
SHAREHOLDERS
(CHF 1.2 billion)
CREDITORS
(CHF 0.8 billion)
GOVERNMENTS*
(CHF 1.2 billion)
EMPLOYEES

(CHF 4.6 billion)
DIRECT IMPACTS
CUSTOMERS
Net sales (CHF 27.0 billion)
MULTIPLIED
INDIRECT
IMPACTS
MULTIPLIED
INDIRECT
IMPACTS
COMMUNITIES
(See page 23)
Retained in business (CHF 3.3 billion) and depreciation (CHF 1.9 billion)
Categories purchased
by suppliers:
Raw materials
Services including transport
Operational material
Energy
Plant, equipment and
infrastructure
Traders
Wholesalers
Retailers
Ready-mix concrete producers
Concrete products
manufacturers
Construction contractors
Individual customers
HOLCIM

Sales
The diagram below illustrates the value we believe Holcim
contributes to the economic health of a region, through
both upstream and downstream employment along the
value chain, as well as income generation.
Innovation potential along the construction value chain
The Group’s ongoing innovation strategy focuses on process
and product innovation as well as promoting sustainable
construction, demonstrated in our business operations and
through the Holcim Foundation for Sustainable Construction
(see box). In the field of process innovation, we base our work
on
research carried out at Eidgenössische Technische
Hochschule (ETH) Zurich.
Creating business value
Holcim is a globally active company. We operate capital-intensive
cement plants, produce aggregates such as sand and gravel,
and provide market-related products and services. In view of
the importance of locating production close to the market,
our business is local. We have deep roots in the communities
in which we operate and our Group companies are important
contributors to local economies. The value generated is
returned to the local economy and multiplied many times via
the activities of our suppliers and customers. Reporting our
economic impacts helps us examine the wider societal
benefits and costs that arise from our activities. Through our
involvement with the WBCSD development focus area, we are
also measuring the contribution of business to development.
Economic impacts along the value chain
The business place

The solid financial position of Holcim and our commitment
to sustainable development go hand in hand.
11
On the product side, we promote the use of sustainable,
eco-efficient products such as composite cements containing
mineral components, and benefit from our active collaboration
with Ecole Polytechnique Fédérale de Lausanne (EPFL) where
potential applications for nanotechnology are being researched.
See page 8, Investing in products that benefit
customers and society;
and page 26
,
business place
data. See also pages 26 and 27 in our
Annual Report.
Construction of affordable housing presents us with
opportunities to create new markets. It also benefits low-income
communities by addressing important social issues. Our approach
is an integrated one, combining both commercial and CSR
expertise to create an enhanced offer to customers. This includes
microfinance and capacity-building solutions, particularly
relevant to emerging economies, where many of our affordable
housing initiatives are directed. These include long-standing
engagements in Latin America as well as more recent projects
in Asia, North Africa and Eastern Europe.
Case studies on
www.holcim.com/sustainable describe our approach
.
Meeting customers’ needs
Holcim strives to be the preferred brand for cement,

aggregates, and other construction materials and services
in all markets. To ensure that we maintain this customer
focus, Holcim pioneered the industry’s first-ever
worldwide
standardized survey measuring global brand
equity and
customer loyalty across our entire portfolio of
brands in
each country in which we operate. The survey,
first conducted
in 2005, is repeated every three years, to
measure
customer satisfaction.
In addition to this global research, 65% of Group companies
carried out a customer survey in 2007 (2006: 69%) . Of these,
80% (2006: 71%) measured customer satisfaction levels. All
Group companies have a customer complaints procedure in
place. Several markets also use additional qualitative research
to better understand customer needs, attitudes and decision-
making processes.
Product stewardship is a key focus of our customer relations.
50% (2006: 46%) of Group companies have a specific policy
covering customer health and safety during use of products
and services, and 39% (2006: 54%) have specific policies
on product information and labeling.
Working with suppliers
We engage in long-term relationships with suppliers and
contractors to secure the most value-enhancing products
and services. These relationships are the basis of working
toward a sustainable supply chain. The first principle is that

our suppliers should respect our social and environmental
policies. With this in mind, our Group procurement policy and
supplier qualification program include a self-assessment of
suppliers’ and contractors’ compliance with international social
accountability standard SA 8000 and environmental standard
ISO 14001. Specific bribery and corruption provisions in our
procurement policy build on the principles contained in our
Code of Conduct. All contracts with suppliers and contractors
must also include a clause securing the health and safety of
all personnel.
See page 27 for supplier screening information.
The business place
World-class sustainable buildings
The work of the Holcim Foundation promotes dialog on
sustainable construction among architects, planners,
construction engineers and investors throughout the
world and leverages our resources to benefit society. Seed
funding has enabled our Group company ACC Limited to
support the construction of the headquarters of Indian
NGO Development Alternatives, based in Delhi. This led to
a partnership between the two organizations with the
purpose of setting up a Centre of Excellence in Sustainable
Housing and Rural Infrastructure to address imminent and
future challenges of housing and rural infrastructure in
India.
Our support for the
extension and renovation of the World
Conservation Union (IUCN) center in Switzerland is a
further opportunity to
promote sustainable construction.

The aim is for the building
to be the first in Europe certified
to LEED’s highest standard.
For more information, see
www.holcimfoundation.org and www.holcim.com/sustainable
To further increase the
average percentage of
suppliers screened by Group
companies for SD criteria.
Challenge
5,000 ideas to build a sustainable future:
Nearly 5,000 sustainable construction projects were submitted for the second awards cycle of the Holcim
Foundation for Sustainable Construction. The competition celebrates innovative, future-oriented and
tangible projects and aims to generate a worldwide community of recognized practitioners of excellence
in sustainable construction.
Achievement
12 Case study
Renewable energy initiatives
Using renewable energy resources helps us diversify our
energy mix and achieve our
CO
2
reduction target. Owing
to our versatile asset base, wide geographical presence,
multitude of installations and product portfolio, Holcim is in
an optimal position to take up the incentive of the flexible
markets instruments offered by the Kyoto Protocol (Emissions
Trading, Clean Development Mechanism (CDM) and Joint
Implementation). We are also able to engage in projects and
renewable energy initiatives that would not normally be

common practice.
Holcim has taken several initiatives in CDM projects. Even
though the applicable rules are quite restrictive, Holcim
has pursued a number of challenging opportunities. We
currently have more than eight projects in different stages
of development in several countries, including the following
initiatives qualifying under CDM:
• biomass and other alternative fossil fuel opportunities
in Ecuador, India, Indonesia and the Philippines
• wind energy project in India
• biomass and waste heat recovery for power generation
in China, India and Thailand.
In addition to projects already initiated, others are currently
undergoing feasibility studies.
Biomass at Holcim Indonesia
Holcim Indonesia has a biomass initiative currently under
request of registration with the UN Framework Convention
on Climate Change (UNFCCC). The project aims to co-process
rice husks, sawdust and palm kernel shells to partially replace
coal at its Narogong and Cilacap plants in Java. With the
incentive of CDM, the project was launched in 2005 with
tests and trials. It forms part of a wider eco-efficiency
programme encompassing the other main drivers of
CO
2
emission reductions.
13
Rice husks offer an important source of
biofuel energy. In Indonesia Holcim is investing in research
and development to enable effective use of this agricultural

waste product to help power its cement plant in central Java.
Renewable energy initiatives
Wind energy in India
The state of Tamil Nadu in India has been proactively
promoting and adopting renewable sources of energy. In
October 2007, our Group company in India, ACC, commissioned
its first wind energy farm. Wind power generated here is
supplied to ACC’s Madukkarai plant via the state power grid.
Excess power not used by the plant is offered back to the grid.
Waste heat recovery in China
With the incentive of CDM, five Holcim cement plants in China
are planning to invest in a low-temperature waste heat power-
generation system that recovers waste heat from the cement
production process. Using the heat recovered, special boilers
will generate steam to drive turbines and generators. The
resulting electricity supply will be used in cement production,
thereby decreasing coal consumption. These projects are
undergoing a validation process required by the UNFCCC.
Other initiatives
Through advanced technologies, ACC in India and Holcim
Spain are investigating the sequestration (capture and
storage) of
CO
2
. The aim is to produce algae biomass, which
can then be used to return recycled energy to the cement
production process, thus closing the energy loop and
reducing emissions.
Holcim Italia is developing a biomass power plant at Valtellina,
which will be able to deliver around 13% of Holcim Italia’s

current power consumption when it comes on stream in 2010.
This will contribute toward realizing the EU target of sourcing
20% of energy needs from renewable sources by 2020. The
plant will be fueled with biomass from local sources, using
by-products from neighboring saw mills, pruning waste or
wood sustainably extracted from local forests.
14
Environmental commitment
Sustainable environmental principles and performance are firmly
anchored in our business strategy.
Climate, energy and building materials
Climate change and energy security are global challenges. All
economies and sectors of society need to contribute their
equitable efforts as a function of their technical and
economic potential and socio-economic development.
By 2030, some 70% of the global population – five billion people
– will be living in cities – compared to 50% today. This requires
the construction of infrastructure for water and sewerage
systems, hospitals and schools, railroads and roads, as well as
housing. These rates of growth will increase the demand for
construction materials in general. New approaches to
construction for lower energy consumption and reduced
emissions are therefore of major ecological significance.
Together with the Holcim Foundation for Sustainable
Construction, we support research and development for
innovative solutions in the construction industry – irrespective
of the building materials – as each application and situation
dictates the best material.
Furthermore, there is huge potential to reduce energy
consumption of residential and commercial buildings through

renovation and new construction of more energy-efficient
buildings. Given its long life cycle and owing to its natural
thermal inertia, concrete is one of the most energy-efficient and
eco-friendly building materials available, and can significantly
contribute toward achieving this potential.
With regard to the manufacture of cement, which remains a
resource- and energy-intensive process, innovation is key to
reducing
CO
2
emissions. This can be achieved by optimizing
products and processes, and investing significantly in research
and development such as developing new types of cement and
using alternative fuels, within the current technical limits.
Holcim is investing in process and product optimization and
is reducing its net
CO
2
emissions per tonne cement on an
ongoing basis.
Collaboration on global challenges
We participate internationally in developing effective
environmental and economic policies and mechanisms, and we
also contribute to research and development. This engagement
informs and supports our environmental strategy. Among a
wide range of external organizations, we participate actively
in the World Business Council for Sustainable Development
(WBCSD)*and the WBCSD Cement Sustainability Initiative (CSI)
at a global level, as well as in CSI initiatives in India and China.
Our active involvement with the WBCSD CSI task force on

Climate Protection and
CO
2
Management contributed to
developing a possible “sector-based” approach that may help
align and further advance the industry’s collective action on
climate change. Under this approach, an industry sector such as
cement (rather than a country or a single facility) might assume
a global/regional emissions or efficiency performance target.
Inter-facility and/or inter-company negotiations to identify the
most efficient mitigation approaches could help the entire
sector reach this performance target more quickly, equitably
and economically than under current schemes.
* Holcim CEO, Markus Akermann, is a member of the Executive Committee
of the WBCSD.
How to reconcile growth with
sustainability? Each sector has
to improve its energy and
CO
2
efficiency.
Challenge
“Holcim could contribute to enhanced understanding
of why we use cement, despite its high impacts.
Water and energy use are going to be difficult issues
in future. Companies that develop intelligent
solutions on this will be the winners.”
Anders Wijkman, President, Globe EU
Photo: European Parliament
15

Other memberships and partnerships at an international
level that strengthen our advocacy strategy include Global
Legislators Organisation for a Balanced Environment (GLOBE),
IUCN (The World Conservation Union), Gesellschaft für
Technische Zusammenarbeit (GTZ) and the International
Emissions Trading Association.
Holcim Group companies also participate in local and regional
initiatives, such as cement associations, the USA’s Environmental
Protection Agency Climate Leaders Program, the Pew Center on
Global Climate Change, the Asia-Pacific Partnership on Clean
Development and Climate and the Centre for European Policy
Studies (CEPS).
For more information on our approach
to advocacy and public policy, and our position papers see
www.holcim.com/sustainable
Drivers of CO
2
performance
Holcim remains committed to minimizing and mitigating our
CO
2
emissions through a variety of approaches, including:
• innovative products, including composite cements
• improving thermal energy efficiency and improving
process technology
• optimizing fuel composition, including the use of waste as fuel.
See, on this page, Reducing the use of non-renewable resources.
Despite a 103% increase in our global cement production
between 1990 and 2007, our increase in absolute net CO
2

emissions was only 70%, due to improvements in energy and
process efficiency, the growing amount of waste-derived fuel
used in kilns and increasing use of mineral components.
By the end of 2007, we achieved a 16.3% reduction in net
CO
2
emissions per tonne cement (2006: 15.6%), indicating that we
are on track to achieve our challenging target to reduce global
average net specific
CO
2
emissions by 20% by 2010, compared
with 1990.
See page 28 for
CO
2
data.
Substituting clinker in cement with mineral components
,
such as slag or fly ash, reduces both the fuel and raw
materials
required per tonne of cement produced.
Lowering the
clinker factor, through use of such mineral
components, is one
of the best, technically proven approaches
for reducing
CO
2
emissions in cement production, and this

approach
remains part of our CO
2
reduction strategy. With an
average of 72.6% of clinker in cement in 2007, Holcim’s clinker
content is among the lowest in the industry.
See page 8 for a
case study,
Investing in products that benefit customers and society, and
page 30 for clinker factor data.
The impact of aggregates and other construction materials
on climate change is limited and is mainly associated with
fuel and power consumption.
See page 31, environmental
commitment data, for details of this consumption.
We remain
committed to improving our level of reporting in this area.
Reducing the use of non-renewable resources
Alternative fuels are an important source of energy for the
cement industry. They contribute toward the aim of decreasing
fossil fuel use and costs while also conserving natural resources,
lowering global
CO
2
emissions, improving waste management
and reducing the need for landfills. Our policy on AFR guides our
approach. Building on 18 years of experience in co-processing, in
2006 we launched Geocycle, a waste management brand for
Group companies, which covers most of our operations in Asia,
Europe and North America.

See page 29 for our thermal
substitution rate by alternative fuels.
In emerging markets, waste management is one of the most
significant challenges. Disposal often occurs in an uncontrolled
way, principally due to a lack of legislation, and this contributes
to environmental pollution and presents health hazards. To
ensure that clear legal provisions are in place, we entered
into
partnership with the German-based international cooperation
enterprise,
GTZ. Since 2003, we have worked together to improve
waste management and close gaps in legislation in selected
developing countries. Our work paves the way for the transfer
of technological know-how and provides an example of how
to disseminate innovation. Since the start of the second
partnership with GTZ in 2006, the recommendations have
been implemented in more than 20 countries.
Environmental commitment
Achievement
Some stakeholders
are concerned about
potential health or
environmental impacts
from co-processing.
To address these
issues we engage with
stakeholders regularly.
Challenge
We are working in partnership
with German-based GTZ to

improve waste management and
reuse in developing countries.
Highlight
2.8 million
tonnes of waste co-processed and 2.1 million tonnes
of coal saved.
Conserving the ecosystem and biodiversity
Production of cement depends on long-term access to raw
materials that we acquire through quarrying. We plan our raw
material extraction and management according to a defined
process with impacts assessed at each stage of quarry
operation. Rehabilitation guidelines and plans are implemented
by almost all cement quarries, resulting in many conservation
and restoration projects. Previous quarry sites now host
habitats such as wetlands, forests and natural grasslands.
See page 31 and see www.holcim.com/sustainable for case studies.
We recognize that quarrying activity has an impact on
biodiversity and are committed to conducting environmental
and social impact assessments (ESIA) following WBCSD CSI
guidelines. Our partnership with IUCN, aimed at developing
new standards for biodiversity conservation, extends and
builds on our efforts.
See page 18 for a case study on
Collaboration with the World Conservation Union.
The production of aggregates depends on raw
materials
acquired through quarrying. We use many of the same
criteria,
management systems and reporting requirements for
our

aggregate businesses as we do for our cement manufacture
business. See page 31 for environmental commitment data.
At a quarry in Italy (pictured) and at other sites, Holcim is
working with conservation experts to manage effects on
local flora and fauna.
We are also working with GTZ in new areas of joint interest
such as
sustainable construction materials and affordable
housing
including the potential and significance of the reuse
of construction demolition waste.
Stakeholder dialog is a central tenet of our partnership
with GTZ. Recently, a dialog with NGOs was conducted
to discuss the challenges and opportunities of waste
management. To address some of the concerns raised,
Holcim has started several initiatives which we will report
on in our next Corporate Sustainable Development Report.
To make our business in aggregates and other construction
materials more sustainable, we are taking greater steps
to look for alternative materials and to increase the amount
of recycled constituent we use in our products. Examples
of alternatives to replace virgin aggregates include crushed
glass in asphalt, and stent (a by-product of china clay
production) in concrete.
In the UK, Aggregate Industries has developed products
and services that conform to sustainability criteria, ranging
from recycled materials to sustainable drainage systems.
These are now marketed under a dedicated symbol –
Sustainable® – to communicate their strong credentials to
customers.

See page 8 for a case study on Investing in products
that benefit customers and society.
Concrete can be reclaimed during demolition operations
and crushed into a substitute for virgin aggregate materials.
Traditionally, recycled construction demolition waste (CDW) is
used in road construction and substructures, but in Germany,
for example, the amount of high-quality, recycled materials
from CDW that can be used as concrete aggregates has
tripled in the last three years.
See page 31 for information on
quantities of materials recycled.
16
“Holcim’s need for independent advice on assessing
and mitigating its biodiversity footprint was a
welcome opportunity for IUCN. We share the belief
with Holcim that stopping biodiversity loss is one
of the major issues of our time and can only be
addressed by working together.”
Julia Marton-Lefèvre, Director General, IUCN
We continue to increase use
of recycled products for our
aggregate activities.
Highlight
Controlling atmospheric emissions
Monitoring and decreasing atmospheric emissions in cement
manufacture are Group priorities. Our target, to reduce global
average specific NOx, SO
2
and dust emissions by 20% by 2010
compared to 2004 levels, encourages continuous improvement.

See page 30 for atmospheric emissions data. Ongoing investment to
upgrade plant equipment as well as regular maintenance and
training are required by our emissions monitoring and reporting
(EMR) standard. At the end of 2007 the implementation rate of
the continuous emission monitors at kiln stacks (excluding
India) was 83% (2006:83%). We make knowledge gained
through this work available to local test houses and regulators.
The atmospheric emissions associated with production of
downstream aggregate and other construction materials
are not material and are thus not reported.
Managing water resources
We are aware of the importance of water as a natural resource
and acknowledge that its growing scarcity in many locations is a
key issue.
See page 24 for a water management example at local level.
Cement production requires water for cooling heavy equipment
and exhaust gases. Water is also required for preparing slurry
in wet process kilns, which consume more water than modern
dry process cement plants. Most water evaporates during
the process. Any that remains is emitted as process effluent,
and can be affected by the presence of solids, altered pH, or
high temperatures. Installation of closed-loop water cycles
or settling ponds helps reduce water use. Installation of water
meters also improves monitoring and efficiency.
Our aggregates and other construction materials businesses
also require significant quantities of water.
See page 31 for
details of water consumption and recycling systems.
We remain committed to improving the level of our reporting
in this area and are investigating the implementation of

comprehensive water monitoring systems at all operations,
and will communicate on our progress in the next report.
Optimizing transport
Given that cement and aggregates are heavy, low-price, bulk
products, transport choices are controlled primarily by cost
considerations. These increasingly take environmental aspects
into account and where possible, Group companies embrace
opportunities for optimizing their distribution channels.
Environmental compliance and investments
All our plants (cement manufacture as well as aggregates
and other construction materials) report regulatory
non-compliance in cases that threaten air, water or soil
quality; that can directly or indirectly endanger human,
animal or plant health; that could affect the company’s
reputation; or that may result in a significant fine or penalty.
Holcim seeks to ensure that all its operations are fully
environmentally compliant.
See page 31 for environmental
compliance data.
17
Highlight
We recognize the need to improve
the measurement and monitoring
of water consumption across all
our operations.
We have already achieved a 20%
reduction in specific SO
2
emissions
and are on track to achieve a 20%

reduction in specific dust emissions
by 2010, but have to increase our
efforts to reduce our NOx emissions.
Challenge
Environmental commitment
Utilizing the waterways
Holcim Germany uses water transport to deliver
granulated slag – a by-product of steel production – from
the company’s processing facility in Salzgitter to its
cement plant in Höver. Approximately 200,000 tonnes of
slag are transported each year via a waterway connecting
the two locations. Since 2001, Holcim Germany has also
used biodiesel, derived from oilseed rape, as fuel for
vehicles in its distribution network, which now includes
80 Holcim and 120 contractor trucks.
18
Collaboration with the World Conservation Union (IUCN)
Holcim is committed to ecosystem and biodiversity conservation.
Our aim is not only to improve our own operational approach to
resource management, but to contribute to broader goals in the
communities where we live and work. Addressing conservation
and biodiversity issues can also contribute to sustainable
livelihoods for local people. As a result, Holcim’s global
agreement with IUCN, signed in early 2007, has two objectives:
• biodiversity conservation management, progressing from
the establishment of a baseline of Group companies’ practices
to the development of a robust, pragmatic and comprehensive
biodiversity policy for the Group within three years
•
creation of sustainable livelihoods in natural resource

management through micro-enterprise development,
as well as developing projects that link biomass with
biodiversity conservation.
Spin-offs from the work with IUCN include involvement in the
WBCSD’s biodiversity focus area, and the aim of influencing
our peers.
Our first year of collaboration
In the partnership’s first year, Holcim and IUCN have created
a coordinating structure for collaborative activities, agreed
a workplan and established an Independent Expert Panel,
chaired by Dr Christopher Imboden. The panel comprises
world-respected experts in the fields of biodiversity and
anthropology, and we anticipate that they will provide
recommendations on improving the Holcim environmental
policy landscape and assist in establishing key elements
for a biodiversity strategy.
A baseline of Group practices in biodiversity conservation
management has also been completed from an inventory of
more than 300 cement and aggregate quarries. In addition,
Holcim sponsors IUCN’s Red List global register of threatened
and endangered species. The 2008 World Conservation
Congress in Barcelona will provide a platform to share the
first results of those activities.
Case study
19
Facilitating Group companies’ involvement
Holcim Group companies are collaborating with IUCN
on a variety of local initiatives within the context of the
global agreement.
In Sri Lanka, IUCN and Holcim are working on projects to review

the quality of biodiversity conservation activities at Holcim
sites and to facilitate existing quarry rehabilitation planning
and implementation. Holcim Lanka brings technical expertise
to contribute to the rehabilitation efforts of coral ecosystems.
The use of sustainably produced biomass as an alternative
fuel is also being explored to open up an additional source of
income for the communities around Holcim sites.
In Costa Rica, Holcim and IUCN hosted a regional workshop in
November 2007 on urban planning and environmental
management with the municipal governments of Central
American capital cities. The partnership also plans to develop
construction sector guidelines for adapting to climate change
and pollution abatement, land use planning and disaster
risk management. A separate project to protect the jaguar
in Costa Rica is also under development.
In Ecuador, Holcim and IUCN have drafted a joint agreement
to establish guidelines for improving biodiversity conservation
and ecosystem equilibrium at operational sites.
Micro-enterprise development initiatives will also feature in
Ecuador, as well as in Bangladesh and Vietnam, where pilots will
be conducted in 2008. The aim is to develop and implement –
in close collaboration with local stakeholders – a concept for
the development of livelihood activities such as eco-tourism,
which create sustainable livelihoods and at the same time
conserve biodiversity.
For more information see
www.holcim.com/sustainable and www.iucn.org
At a quarry near Malaga, Spain and at other sites, Holcim is
working with conservation experts to manage effects on local
flora and fauna.

Collaboration with IUCN
The Holcim CSR approach is strategic, not philanthropic.
Our CSR
approach aims to build capacity of people and organizations
through investment and engagement, which goes beyond the
act of corporate donation. Since the launch of our CSR policy in
2003, all Group companies have integrated the approach in their
business plans. 80% of Group companies (2006: 78%) have
developed a specific CSR strategy to meet local needs.
See inside front cover for information on CSR KPIs.
Making Holcim an attractive employer
We are committed to recruiting, employing, developing and
retaining the best people in our industry. We strive to be the
most attractive employer in our industry by providing the best-
possible conditions. Our commitment to ensure wages reflect
local industry good practices means that 90% of Group
companies pay above local minimum wage and all Group
companies pay at least the local minimum wage .
By valuing diversity and promoting equal opportunities, Holcim
benefits from having a diverse, multicultural workforce. Our 2,125
top and senior managers represent 59 nationalities. Women
constitute 13% of the workforce.
See page 32 for employment
data.
More than half our global workforce is represented by
independent trade unions. Group companies report that, on
average, a minimum of 5–6 weeks’ notice is given to employees
prior to implementing significant operational changes.
Engaging with our employees
The Holcim values of strength, performance and passion are

being embedded
in all Group companies, and we aim to
complete this process by
2009.
An employee engagement survey has been developed for this
purpose, and was piloted in seven countries in 2007. At Holcim
Group Support, the survey showed that employees
take great
pride in working at Holcim, and demonstrated
that in many
areas, we outperform most Swiss companies
.
Areas for
improvement included better support of our values in practice.
Employee satisfaction is also measured within individual
Group
companies. In 2007, 59% of Group companies conducted
a survey (2006: 39%) . The annual “dialog”
performance
appraisals are a good platform to discuss issues. Furthermore,
76% (2006: 71%) of Group companies have systems to collect
and handle employee grievances and
complaints. 55% (2006:
56%) have arrangements for submitting
complaints and/or
grievances anonymously.
Developing our people
Holcim’s people development strategy is focused on two key
areas: expertise and behavior. Both aspects taken together
secure the Group’s long-term success. Holcim strives to provide

a work environment in which people feel valued and have
opportunities for professional and personal growth. This is
vital to ensuring a loyal, motivated and productive workforce.
Our Group companies report that in 2007, employees across
the Group each received on average 31 hours of training ,
and at Group level, new leadership programs complement
existing management training focused on imparting leadership
competencies. Developing leaders and employees is, and
remains, one of the Group’s most important tasks.
For more
information see pages 40–43 in our Annual Report.
20
80%
of Group companies have
developed a specific
CSR strategy.
Achievement
59
nationalities are
represented in our top
and senior managers.
Highlight
Social commitment
We work to improve the lives of our many stakeholders.
21
Recognizing performance
Our Mexican subsidiary, Holcim Apasco, recognizes and
rewards outstanding employee performance and business
contributions in the areas of customer service, continuous
improvement and safety, in its biennial awards program.

The scheme is designed to foster productivity, safety,
teamwork, communication and the pursuit of excellence.
Similar programs are in place at St. Lawrence Cement in
Canada and also in Eastern Europe.
Social commitment
Providing a safe workplace
We recognize that the health and safety of our employees,
sub
contractors, third parties and visitors is vital to our business
success. Our “Passion for Safety” initiative aims for continuous
improvement and our lost-time injury frequency rate has shown
significant improvement in 2007.
See page 32 for OH&S data.
However, we deeply regret that despite our continuing focus
on
safety, 48 people lost their lives
in 2007 during the discharge of
their duties on behalf of Holcim. We will redouble our efforts to
achieve our vision of“zero harm” to people.
To analyze the causes of all accidents and avoid them in the
future, the CEO of a Group company where an onsite incident has
occurred is required to present corrective measures to the Holcim
Exco. Based on this, we
have identified 14 major causes of fatalities,
the most frequent
of which were traffic accidents and falling
from height. Holcim directives on fatality prevention are being
developed
and rolled out to address the 14 major causes
. The

directives encompass hazard identification, risk assessment and
controls, training, and maintenance and emergency procedures.
Accountabilities are set at each line management level.
14
fatality prevention elements
are being developed and rolled
out to address the identified
major causes of accidents.
Achievement
Significant improvements at Holcim US
Making safety a top priority has helped position Holcim US
as an industry role model. Personally led by the CEO,
the company established a Safety Observation System
to increase awareness and instill a sense of personal
responsibility among all employees. With their lost-time
injury frequency rate falling from 6.4 in 2002 to 0.6 in 2007,
the initiative has been recognized as a best-in-class
program by both industry and regulators.
The number of accidents and
fatalities remains a concern.
We will redouble our efforts
to ensure “zero harm” in
the workplace.
Challenge
1
Do not override or interfere with any safety provision and do not
let others override or interfere with safety provisions
2
Personal protective equipment rules applicable to a given task
must be adhered to at all times

3
Isolation and lock-out procedures must always be followed
4
No person may work if under the influence of alcohol or drugs
5
All injuries and incidents must be reported
Five Cardinal Rules
The Holcim OH&S management system further guides our
approach. Clear organizational accountabilities are supported
by
a robust program of training, communication,strict procedural
discipline and locally developed policies and action plans.
Five
Cardinal Rules have been laid down, as below. There is zero toler-
ance for breaches and very stringent consequence management.
Over the past three years, contractors were involved in twice
as many fatal accidents as Holcim employees, and contractor
safety management is thus a clear priority. All contractors are
required to comply with Holcim safety standards, including
the Five Cardinal Rules, and a new directive on contractor
safety management will be released in 2008.
The pre-processing of Alternative Fuels and Raw materials
(AFR) requires safety standards and procedures comparable
to those used in the petrochemical industry. Managing AFR
process safety is therefore an important consideration. A
Holcim directive sets the required standards and complements
existing safety procedures on hazard identification and
mitigation, and emergency response.