HeidelbergCement : Sustainability Report 2021

Company	Strategy &	Business &	Product &	Production &	Employees &	Society & Corporate	Targets Appendix
Portrait	Management	Compliance	Innovation	Supply Chain	Employment	Responsibility

Sustainability Report 2021

Company	Strategy &	Business &	Product &	Production &	Employees &	Society & Corporate	Targets Appendix
Portrait	Management	Compliance	Innovation	Supply Chain	Employment	Responsibility

Ladies and Gentlemen,

The ongoing global trend towards urbanisation and the intensive construction activity in the housing and infrastructure sectors call for sustainable solutions. We are delivering these solutions and, through our products, we are playing a leading role in paving the way to carbon neutrality.

In 2021, we anchored the core topic of sustainability even more firmly in	our	organisation with the appointment
of Dr Nicola Kimm to the Managing Board as Chief Sustainability Officer.	We	are driving our sustainability agenda

and accelerating on our ambitions. For example, we aim to generate half of our Group revenue from sustainable products by 2030. In order to achieve this, we have once again significantly tightened our globally applicable climate targets with the publication of this report in May 2022: by 2030, we want to almost halve our carbon emissions compared with our 1990 levels. With a new reduction target to reach 400 kg of CO2 per tonne of cementitious material in 2030, HeidelbergCement is setting new standards in the decarbonisation of our industry.

We look at the entire supply chain in our efforts to reduce our carbon emissions. Our CO2 reduction strategy is based on solid measures at plant and product levels, the implementation of which is well underway. In addition, we are making use of innovative carbon capture, utilisation, and storage (CCUS) technologies: our facility in Brevik, Norway is scheduled to go into operation as early as 2024. By 2030 we will have launched further projects at Edmonton in Canada, Padeswood in the United Kingdom, and Slite in Sweden, among other locations. With the

Introduction current CCUS projects alone, we aim to cut our carbon emissions by 10 million tonnes cumulatively by 2030. By joining the First Movers Coalition, we are also recognising our responsibility as a purchaser of green products and

services.

But global challenges can only be solved by working together. That is why, as a partner of the United Nations Global Compact (UNGC), we are committed to its ten principles in the areas of environmental protection, corruption prevention, labour standards, and human rights. Taking these principles into account and promoting them both within our corporate strategy and in all our business activities is particularly important to us. And so we ask you, our shareholders, employees, customers, suppliers, business partners, and local community representatives, to join us as we take the path towards sustainable and digital transformation!

Yours sincerely,

Dr Dominik von Achten

Chairman of the Managing Board

02	HeidelbergCement I Sustainability Report 2021

Company	Strategy &	Business &	Product &	Production &	Employees &	Society & Corporate	Targets Appendix
Portrait	Management	Compliance	Innovation	Supply Chain	Employment	Responsibility

Ladies and Gentlemen,

At HeidelbergCement's more than 3,000 locations, sustainability is an integral part of our day-to-day business. Thanks to the great commitment of our employees, we made very good progress in 2021. We further reduced our carbon emissions through improvements in our product mix, a lower proportion of clinker, and increased use of alternative fuels as well as green energy sources. To meet the needs of our customers, we launched numerous sustainable products in our markets around the world.

We aim to spearhead the decarbonisation of our sector and promote a circular economy in our value chain. Closing the loop in the material cycle of sand, aggregates, and cement stone is of crucial importance to us and constitutes a major lever for reducing carbon emissions. To increase resource efficiency and protect natural raw materials, we will also scale up our recycling activities, especially with regard to demolition concrete.

In addition to climate protection, issues such as responsible land use, water conservation, occupational health and safety, as well as social responsibility are among the key pillars of our Sustainability Commitments 2030, the guiding principles of HeidelbergCement's sustainability strategy. We also made significant progress in these areas in 2021. For example, we published a new version of our Code of Business Conduct in 2021 and emphasized the importance of human rights and sustainability aspects even more strongly. Through our Quarry Life Award, which was launched for the fifth time in 2021, we address the global loss of biodiversity - one of the three greatest risks to our planet according to the World Economic Forum's Global Risks Report.

We are constantly developing our sustainability reporting in order to increase transparency and create a solid basis for dialogue with you, our stakeholders. In the months and years to come, we will continue to work diligently to drive the issue of sustainability forward - in our strategy as well as in all day-to-day business processes and decisions. I look forward to you being at our side as we do so.

Yours sincerely,

Dr Nicola Kimm

Chief Sustainability Officer

Member of the Managing Board

03	HeidelbergCement I Sustainability Report 2021

Company	Strategy &	Business &	Product &	Production &	Employees &	Society & Corporate	Targets Appendix
Portrait	Management	Compliance	Innovation	Supply Chain	Employment	Responsibility

Contents

	Company		Strategy &		Business &		Product &		Production &
	Portrait		Management		Compliance		Innovation		Supply Chain
06	Organisational structure	10	Vision & mission	32	Legal compliance	39	Focus on customers	49	Environmental management
07	Value chain	10	Sustainability Commitments 2030	32	Business performance	40	Research & development	50	Energy & climate protection
08	Vertical integration	13	Significant reduction in emissions	34	Compliance management	44	Sustainable products	57	Reduction of Scope 2 emissions
			by 2030					57	Alternative fuels
		14	Our path to carbon neutrality					58	Land use & biodiversity
			by 2050					61	Local environmental impact
		14	Responsibility & organisation					63	Management of supplier
		15	Challenges & strategy						relations
		16	Stakeholder engagement
		21	TCFD report

	Employees &		Society & Corporate		Targets		Appendix
	Employment		Responsibility
66	Principles	78	Social responsibility	82	Strategy & Management	88	Key figures
67	Employment &	79	Social engagement at our	82	Business & Compliance	98	About this report
	co-determination		locations	83	Product & Innovation	99	GRI content index
67	Remuneration policy &			83	Production & Supply Chain	105	Imprint
	working time regulation			85	Employees & Employment
68	Occupational health & safety			86	Society & Corporate Responsibility
72	Human resources development
75	Diversity management

04	HeidelbergCement I Sustainability Report 2021

Company	Strategy &	Business &	Product &	Production &	Employees &	Society & Corporate	Targets Appendix
Portrait	Management	Compliance	Innovation	Supply Chain	Employment	Responsibility

Company Portrait

06 Organisational structure

07 Value chain

08 Vertical integration

05

Image: The HeidelbergCement headquarters in Heidelberg, Germany.

HeidelbergCement I Sustainability Report 2021