2024 DOUBLE
MATERIALITYPROCESS
P03
CONTENTS
INTRODUCTION 02
2024 DOUBLE MATERIALITY PROCESS 03
Context
Overview of our methodology
PROCESS STEPS 05
Horizon scanning, key issues review and process design Stakeholder engagement
Analysis, insights and validation
RESULTS | 10 | PROCESS STEPS | P05 |
2024 Materiality matrix Double materiality summary table Financial materiality Impact materiality External stakeholder priorities | |||
IMPLICATIONS AND NEXT STEPS | 16 |
RESULTS P10
APPENDIX 1 20
European sustainability reporting standards materiality mapping
APPENDIX 2 21
2024 Double materiality assessment topics
IMPLICATIONS
AND NEXT STEPS
P16
INTRODUCTION | 2024 DOUBLE | PROCESS STEPS | RESULTS | IMPLICATIONS | APPENDIX | INTRODUCTION | 2024 DOUBLE | PROCESS STEPS | RESULTS | IMPLICATIONS | APPENDIX |
MATERIALITY PROCESS | AND NEXT STEPS | MATERIALITY PROCESS | AND NEXT STEPS |
2024 DOUBLE MATERIALITY PROCESS CONTEXT INTRODUCTION
Sustainability is at the core of our strategy,
as we lead the shift to circular, resilient, low-carbon, energy-efficient and smart building.
The materiality assessment process, aligned with CSRD's double materiality concept, examines both impact and financial value dimensions in detail.
This approach acknowledges that an organization can both influence and be influenced by sustainability matters.
We are committed to regularly conducting materiality assessments, and to strengthening and adjusting our process with each exercise.
In 2022, we redesigned our materiality assessment to align closely with our Enterprise Risk Management process and engage a broader range of stakeholders to capture more diverse insights.
In 2024, we undertook a comprehensive Double Materiality Assessment (DMA) to align with
the disclosure requirements of the Corporate Sustainability Reporting Directive (CSRD) and the related European Sustainability Reporting Standards (ESRS) issued by the European Commission.
The materiality priorities that have been identified through this assessment update will build the foundation of our sustainability
strategy, ensuring it prioritizes our most relevant
How the society and/or environment impacts
Holcim's enterprise value
DOUBLE
MATERIALITY
How Holcim impacts society and/or the environment
sustainability issues that will drive sustainable growth for the business and long-term value for all our stakeholders.
Financial materiality (OUTSIDE IN)
The significance of sustainability-related impacts, risks and opportunities that could influence Holcim's financial performance.
Impact materiality (INSIDE OUT)
The significance of Holcim's impacts on society and/or the environment.
INTRODUCTION | 2024 DOUBLE | PROCESS STEPS | RESULTS | IMPLICATIONS | APPENDIX | INTRODUCTION | 2024 DOUBLE | PROCESS STEPS | RESULTS | IMPLICATIONS | APPENDIX |
MATERIALITY PROCESS | AND NEXT STEPS | MATERIALITY PROCESS | AND NEXT STEPS |
OVERVIEW OF OUR METHODOLOGY
The assessment was guided by our Group Sustainability and Risk specialists, along with relevant subject matter experts. To ensure objectivity, we partnered with DNV Business Assurance to assist us with the process, providing independent expertise and guidance on aligning with CSRD and best practices.
Our assessment process was designed to align with CSRD requirements, while integrating the existing group risk universe and the previous materiality assessment.
This approach ensured consistency in the scoring of financial risks as well as expanding the assessment to comprehensively evaluate impacts and opportunities.
The assessment was specifically tailored to evaluate the materiality of sustainability
topics and their associated impacts, risks, and opportunities across the short/medium-term
(1-3 years) and long-term (>3-10 years) horizons.
Financial materiality
The materiality of risks and opportunities based on the potential magnitude of their financial effects and likelihood*of occurrence (assessed before any mitigation actions). Collecting information on the type of impact to our business, the estimated financial outcomes and additional perceptions on topic management.
Our process was designed with the following key definitions in mind:
PROCESS STEPSOur assessment was completed in three key stages.
1
PROCESS DESIGN
2
STAKEHOLDER ENGAGEMENT
3
ANALYSIS, INSIGHTS, VALIDATION
Impact materiality
Evaluation of actual and potential (unmitigated) impacts, both positive and negative within Holcim's value chain. Consideration of these impacts in terms of their scale, scope, irremediable character, and likelihood.
1. HORIZON SCANNING, KEY ISSUES REVIEW AND PROCESS DESIGN
In the initial phase of our process, we conducted an in-depth review of sustainability matters that could significantly influence Holcim's financial success or have an impact on society and/
or the environment. This review encompassed both current and future perspectives, examining our 2022 materiality topics and updating these using insights from our latest information including group risks, strategy, climate, and value chain activities.
An initial list of topics was identified covering environmental, social, governance, and market focus areas. Topics and their definitions were updated to reflect the current context, such as expanding digital transformation to encompass AI and cybersecurity and expanding energy consumption to include Holcim's vulnerability to fluctuation of fuel prices and ability to switch to alternative fuels.
These topics were mapped against the ESRS 1 application requirements list of sustainability matters, with relevant subtopics included where applicable to Holcim's operations.
Key to our assessment was identifying where in Holcim's value chain our material impacts,
risks and opportunities were likely to take place. Holcim's value chain was integrated into the survey design to ensure the finalized topic list considered all potentially material sustainability matters relating to our direct and indirect activities.
*Likelihood was not designed as an explicit standalone datapoint but was instead integrated into the understanding of assessing the impact on Holcim's success.
INTRODUCTION | 2024 DOUBLE | PROCESS STEPS | RESULTS | IMPLICATIONS | APPENDIX | INTRODUCTION | 2024 DOUBLE | PROCESS STEPS | RESULTS | IMPLICATIONS | APPENDIX |
MATERIALITY PROCESS | AND NEXT STEPS | MATERIALITY PROCESS | AND NEXT STEPS |
UPSTREAM
RAW MATERIAL AND ENERGY SOURCING
Raw Materials: Holcim sources a diverse range of raw materials including limestone, which serves as the primary component of clinker, and aggregates such as sand, gravel, and crushed stone.
Holcim actively sources alternative raw materials in order to reduce our environmental impacts. These materials include basic elements (Ca, Si, Fe, Al, S), recycled construction demolition materials (CDM), waste from other industries such as slag and fly ash, and innovative mineral components such
as calcined clay, pozzolana and reclaimed ashes. By partially replacing clinker with these mineral components, we can significantly reduce the carbon intensity of our cement.
Energy: Holcim is transitioning to alternative fuels such as biomass and waste derived resources, substituting traditional fossil fuels used in cement kilns, which include coal, petcoke and natural gas.
We generate our own electricity and utilize electricity from the grid. We are committed to decarbonize the electricity we consume through long term PPAs and onsite generation from wind, solar and waste heat recovery.
INBOUND LOGISTICS
Holcim utilizes advanced digital and AI-driven solutions to optimize our logistics, reduce transport distances, and cut emissions. Our transport network utilizes various modes of transport, including trucks, rail, and ships.
SUPPLY CHAIN MANAGEMENT
Suppliers: Holcim's direct suppliers include quarry operators, mining companies, waste management firms, energy providers, and manufacturers and service providers of equipment and machinery.
Holcim manages these relationships through procurement contracts, which emphasize sustainability criteria. Although our influence decreases further up the supply chain, Holcim promotes responsible practices through supplier codes of conduct and due diligence processes.
Supply Chain Due Diligence: Holcim enforces its Supplier Code of Conduct, Sustainable Procurement Directive, and Workers in the Value Chain Directive. These measures ensure
suppliers adhere to human rights, labor rights, and environmental standards. We assess and manage ESG risks through a risk-based methodology which includes supplier audits. We also engage with suppliers to improve their sustainability performance.
OWN OPERATIONS
MANUFACTURING AND PRODUCTION
Clinker and Cement: Holcim produces clinker and cement at over 140 plants worldwide. Direct activities include the quarrying of limestone, the production of clinker, and the grinding of clinker with other materials to produce cement.
Aggregates: Holcim produces aggregates (sand, gravel, and crushed stone) at over 500 sites.
Activities include extraction, crushing, screening, and washing of aggregates to meet various size and quality specifications. Biodiversity is actively managed around our sites. Quarry rehabilitation takes place simultaneously with extraction work.
Ready-mix Concrete: Holcim produces ready-mix concrete at over 1,200 sites. The production process involves mixing cement with aggregates, water, and admixtures.
Solutions and Products: Holcim manufactures advanced roofing systems, insulation, and specialty building solutions, such as advanced mortars, tile adhesives and façades, and coatings, at specialized facilities.
INNOVATION
Holcim invests in research and development to develop innovative products and processes.
Our focus is on low-carbon cement formulations, the use of alternative fuels and raw materials, and the development of digital solutions. We
are investing in carbon capture utilization and storage (CCUS). Holcim MAQER Ventures invests in exciting startups, so we can help them scale their breakthrough technologies.
Holcim is decarbonizing our products by rethinking the composition of cement and concrete. Our low-carbon ECOPlanet cement and ECOPact concrete deliver at least 30% lower CO2 emissions compared to conventional alternatives.
PEOPLE
Employees: Holcim aims to be a top employer by nurturing talent and engaging our employees. Our 65,000 people worldwide are reinforcing our culture of performance and value creation for our people, customers and shareholders, every single day.
Health & Safety: Holcim aims to protect the physical, mental and social wellbeing of its people. That means conducting our business with zero harm and providing a healthy and safe environment to employees, contractors,
communities and customers. Our comprehensive policies and training support this aim.
DOWNSTREAM
SALES, DISTRIBUTION, AND CUSTOMER ENGAGEMENT
Customers: Holcim serves a diverse range of customers. We serve construction companies, developers, distributors and retailers, and individual homeowners for renovation and repair.
Distribution Channels: Holcim distributes products through various channels. These channels include direct sales to large construction projects, sales through distributors and retailers, and delivery to customer sites using Holcim's or third-party logistics providers.
Customer Relationships: Holcim aims to build long-term relationships with our customers and partners. We provide technical support, sustainable solutions, and our HOLCIM+ digital ecosystem that enhances service and performance.
PRODUCTS AND SOLUTIONS
Holcim develops products to meet our customers' needs. We deliver a broad range of high-performance, circular, resilient, low-carbon, energy-efficient and smart building solutions, from end-to-end.
Our portfolio of advanced roofing, insulation and building systems, including premium brands like Elevate, PRB, PTB, and ZinCo, are designed to enhance energy efficiency, bring nature into cities and to decarbonize construction.
CIRCULARITY
Recycling: Holcim currently runs over 150 recycling centers worldwide, in or near to major metropolitan areas. Holcim is scaling our ECOCycle®circular technology to process construction demolition materials (CDM) into new building solutions. CDM is reintegrated as recycled aggregates, mineral components in cement and inputs for ECOPact concrete, enabling circular construction at scale.
Geocycle: At Geocycle, we transform
non-recyclable waste into alternative fuels and raw materials in Holcim's operations, reducing landfill dependency and GHG emissions.
COMMUNITY ENGAGEMENT
Holcim engages with local communities to create long-term shared value, focusing on job creation, education, affordable housing and skills development to enhance livelihoods.
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Holcim AG published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 16:12 UTC.
