04272010-sustainable development comparability performance 2009-uk

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hOW WE rEpOrT

how do we measure up?
We believe that it is important not only to track our performance against previous years but to look at our performance against peer companies and SRI rating indices. We make this exercise a driver for improvement. SRI RATING AGENCIES
SRI rating agencies produce indices to inform investors about how responsibly and sustainably companies operate. However we believe that the indices produced can help drive performance and inform reporting. The nature of the questions as well as the evolution of the questions on issues raised by SRI rating agencies are an indicator for us on how sustainability issues are evolving.

Comparability of performance

and sustainable construction as strengths. These are areas where we have been active for some time. Recyclability and reusability of construction materials were identified as areas of weakness. We had already set ourselves the target of making progress in these areas. This reinforced our determination to do so.

VIGEO
Vigeo is a French based ratings agency with a strong interest in the social elements of company operations. Vigeo rates Lafarge overall CSR performance as above the sector average. Indeed Lafarge is one of the top performers in the survey. The areas of strongest performance are community involvement and human resources. The weakest area is corporate governance, as Vigeo pointed out that the role of CEO and Chairman are not distinct. Lafarge owns 0.74% of the equity in Vigeo.

There are many other EVALuATION By SAM evaluations done by (DJSI INDEx) professional agencies, In 2009 we improved our total score in the banks, NGOs and others. index to 76%. This was an increase of 6% over We cannot list them all. 2008, which in turn was an increase of 6% We thank them for their over 2007. This was the result of improvealready making. interest in and attention to ments that we wereapplying thoroughIt was also the result of our analyour company. In all cases sis to the more detailed score supplied to us we consider what they have by SAM. In some places where we had not to say carefully and in the scored well this was due to us not disclosing OTHER INDICES light of them consider how as much information as we could. In other In addition to learning from the indices we can improve both our areas plans needed to be put in place to rectify covered above we have also learned from a communication and our weaknesses in our performance. wide range of other indices of other organiabsolute performance. 2009 saw material increases in our scores for zations including but not limited to, CapiCodes of Conduct/Compliance/Corruption & Bribery, Anti-Trust Policy, Human Capital Development, Recycling Strategy and Operational Eco-Efficiency. We are pleased to have improvements in these areas recognized. We are aware that we need to keep on driving for improvement against the all-important health and safety measure.

talcom/RiskMetrics, FTSE4Good, Global 100 Most Sustainable Corporations, Innovest and Storebrand. Coverage of these can be found in past year's Sustainability Reports and on our website .

A CHANGING COMPETITIVE ENVIRONMENT
Through detailed engagement with all these indices we recognize that there is a general improvement in the response of major corporates to CSR and sustainability issues. Performance which was sector-leading last year will not necessarily be so this year. This reinforces our determination to use the indices as a way of driving improvement in our own performance.

OEkOM RESEARCH
Our rating from this agency is C+, which gives us Prime status. Within the Oekom system a Prime status company is one which "ranks among the world's best companies within the same industry and fulfils the sector specific minimum requirements". The survey identified quarry rehabilitation, addressing climate change

For more information: http://sustainabilityreport.lafarge.com
PAGE 50 | lafarge |

SuSTAINABILITy REPORT 2009

Dans la boutique



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