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Iniciatives and commitments

At Argos we are committed to the global agenda and we are aware that in order to achieve these objectives we must work as a team with our stakeholders, non-governmental organizations, associations, among others.

Prioritized SDGs

SDG 8

decent work and economic growth

SDG 9

industry, innovation and infrastructure

SDG 11

sustainable cities and communities

SDG 13

climate action

DESCRIPTION OF SDG TARGET

8.2 – Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including by focusing on high value-added and labor-intensive sectors

9.1 Develop reliable, sustainable, resilient and quality infrastructure, including regional and cross-border infrastructure, to support economic development and human well-being, with a particular focus on affordable, equitable access for all

11.3 – By 2030, increase inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable planning and management of human settlements in all countries

11.6 – By 2030, reduce the negative per-capita environmental impact of cities, including paying special attention to air quality and municipal and other waste management

17.17 – Foster and promote effective partnerships in the public, public-private, and civil society spheres, drawing on partnership experience and resourcing strategies

COMPANY TARGET

Net Debt / EBITDA < 3 ROCE>WACC>WACC

INDICATOR

[A-RE1] Net Debt / EBITDAc ROCE WACC

DESCRIPTION OF SDG TARGET

7.2 – By 2030, significantly increase the share of renewable energy in the mix of energy sources

13.1 – Strengthen resilience and adaptive capacity to climate-related risks and natural disasters in all countries

13.2 – Incorporate measures related to climate change in national policies, strategies and plans

17.17 – Foster and promote the constitution of effective alliances in the public, public-private and civil society spheres, taking advantage of the experience and strategies of obtaining resources of the alliances

COMPANY TARGET

Reduction of net specific CO₂ emissions

523 kg CO2/ton of cementitious material

INDICATOR

[A-EC1] Specific CO₂ Emissions

[[A-EC2] Percentage (%) of alternative raw materials in Cement

[A-EN1] Percentage (%) of Substitution of caloric consumption of fossil fuels with alternative fuels

DESCRIPTION OF SDG TARGET

9.2 – Promote inclusive and sustainable industrialization and, by 2030, significantly increase the contribution of industry to employment and the Gross Domestic Product, according to national circumstances, and double that contribution in the least-developed countries

9.4 – By 2030, modernize infrastructure and reconvert industries to make them sustainable, using resources more efficiently and promoting the adoption of clean and environmentally sound industrial technologies and processes, and getting all countries to take action in accordance with their respective capabilities

12.5 – By 2030, significantly reduce waste generation through prevention, reduction, recycling and reuse activities

17.17 – Foster and promote the constitution of effective alliances in the public, public-private and civil society spheres, taking advantage of the experience and strategies of obtaining resources of the alliances

COMPANY TARGET

Achieve a Net Promotor Score greater than 52%

INDICATOR

[A-IM1] Net Promoter Score

DESCRIPTION OF SDG TARGET

8.3 – Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and foster the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

8.4 – Progressively improve, by 2030, the efficient production and consumption of global resources and seek to decouple economic growth from environmental degradation, in accordance with the Ten-Year Framework of Programs on Sustainable Consumption and Production patterns, starting with developed countries

9.2 – Promote inclusive and sustainable industrialization and, by 2030, significantly increase the contribution of industry to employment and the Gross Domestic Product, according to national circumstances, and double that contribution in the least-developed countries

17.17 – Foster and promote the constitution of effective alliances in the public, public-private and civil society spheres, taking advantage of the experience and strategies of obtaining resources of the alliances

COMPANY TARGET

By 2024, evaluate 45% of our suppliers in terms of sustainability at least once every three years

INDICATOR

Percentage (%) of suppliers evaluated in sustainability in the last three years

DESCRIPTION OF SDG TARGET

5.5 – Ensure the full and effective participation of women and equal opportunities for leadership at all decision-making levels in political, economic and public life

5.c – Adopt and strengthen sound policies and applicable laws to promote gender equality and the empowerment of all women and girls at all levels

8.5 – By 2030, achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, as well as equal pay for work of equal value

8.6 – By 2030, significantly reduce the proportion of youth who are not employed and not in education or training

10.2 – By 2030, strengthen and promote the social, economic and political inclusion of all people, regardless of their age, sex, disability, race, ethnicity, origin, religion or economic situation or other condition

10.4 Adopt policies, especially fiscal, salary and social protection, and progressively achieve greater equality

COMPANY TARGET

35% of the Organization’s leadership positions will be held by women

50% of executive- and management-level employees will be of non-Colombian origin

INDICATOR

[A-TM2] Percentage (%) of leadership positions in the Organization that are held by women

[A-TM-3] Percentage (%) of Executive- and Managerial-Level employees of non-Colombian origin

DESCRIPTION OF SDG TARGET

3.5 – Strengthen the prevention and treatment of addictive substance abuse, including the misuse of narcotics and the harmful use of alcohol

8.8 – Protect labor rights and promote a safe, secure working environment for all workers, including migrant workers, particularly migrant women and people in precarious employment

17.17 – Foster and promote the constitution of effective alliances in the public, public-private and civil society spheres, taking advantage of the experience and strategies of obtaining resources of the alliances

COMPANY TARGET

Targets by 2025:

Reduce the number of total injuries by 50% (compared to 2019)

Reduce to zero the number of serious injuries in our employees and contractors

Reduce the Frequency Rate to 0.8

Reduce to three (3) the number of occupational diseases in direct employees

Formulate 15 impact projects by 2025

Achieve that, by 2025, the absenteeism of direct employees due to general illness is a maximum of 752 days

100% of high-risk situations will be intervened promptly

INDICATOR

[A-SI4] Number of injuries per million man-hours worked

[A-SI3] Number (#) of serious injuries in our employees and contractors

[A-SI1] Frequency Rate

GRI [403-9; 403-10] Number (#) of occupational diseases in direct employees

[A-SI5] Number (#) of successful impact projects by Regional each year, the impact of which is related to the improvement of Total Injury Frequency Rate (TIFR) indicators, absenteeism for general illness, high-risk situations and occupational disease

[A-SI6] Absenteeism of direct employees due to general illness (#) (days lost per one million man-hours worked)

[A-SI7] Percentage (%) of high-risk situations intervened in a timely manner

DESCRIPTION OF SDG TARGET

1.4 – By 2030, ensure that all men and women, in particular the poor and most vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control of land and other assets, inheritance, natural resources, new technologies and economic services, including microfinancing

9.1 – Develop reliable, sustainable, resilient and quality infrastructure, including regional and cross-border infrastructure, to support economic development and human well-being, with a particular focus on affordable, equitable access for all

11.1 – By 2030, ensure access for all people to adequate, safe and affordable housing and basic services and improve slums

11.3 – By 2030, increase inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable planning and management of human settlements in all countries

COMPANY TARGET

70% satisfaction in prioritized communities by 2030

Zero (0) repetitive complaints by 2030

Zero (0) risk materializations for the community by 2030

Zero (0) operations with with and critical risks affecting communities by 2030

30% leveraged resources by 2030

630,000 people impacted by social-investment programs by 2030

INDICATOR

[A-CC1] Level of satisfaction of communities

[A-CC2] Repetitive complaints

[A-AR1] Materialized risks to the community

[A-AR2] Operations with high and critical risks of affectation to communities (%)

[A-GO1] Leveraged respirces

[A-GO2] People benefited by investments and social contributions

DESCRIPTION OF SDG TARGET

8.7 Adopt immediate and effective measures to eradicate forced labor, end contemporary slavery and human trafficking, and ensure the prohibition and elimination of the worst forms of child labor, including the recruitment and use of child soldiers, and, by 2025, end child labor in all its forms

8.8 Protect labor rights and promote a safe, secure working environment for all workers, including migrant workers, particularly migrant women and people in precarious employment

16.5 Significantly reduce corruption and bribery in all its forms

16.7 Ensure the adoption at all levels of inclusive, participatory and representative decisions that respond to needs

16.b Promote and apply non-discriminatory laws and policies in favor of sustainable development

COMPANY TARGET

100% of employees who made their Declaration of Potential Sources of Conflicts of Interest annually

INDICATOR

Total percentage (%) pf employees who made their Declaration of Conflicts of Interest

[A-ETH4] Total percentage (%) of employees who completed the Annual Conduct Course

[A-ETH5] Total percentage (%) of employees who completed the Assets and Income Statement

DESCRIPTION OF SDG TARGET

9.1 Develop reliable, sustainable, resilient and quality infrastructure, including regional and cross-border infrastructure, to support economic development and human well-being, with a particular emphasis on affordable and equitable access for all

9.5 Increase scientific research and improve the technological capacity of industrial sectors in all countries, in particular developing countries, including by fostering innovation and significantly increasing, by 2030, the number of people working in research and development per million inhabitants and public- and private-sector spending on research and development

11.3 By 2030, increase inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable planning and management of human settlements in all countries

12.2 By 2030, achieve sustainable management and efficient use of natural resources

12.7 Promote public-procurement practices that are sustainable, in accordance with national policies and priorities

COMPANY TARGET

Obtain revenue for USD 800 million for our products with sustainability characteristics (PSC)

INDICATOR

[A-CS1] Total revenue for products with sustainability characteristics

DESCRIPTION OF SDG TARGET

BIODIVERSITY Have 85% of quarries located in areas of high value for biodiversity (HVB) with Environmental Management Plans (EMPs) We will rehabilitate 90% of liberated areas in active and inactive quarries

COMPANY TARGET

BIODIVERSITY

Have 85% of quarries located in areas of high value for biodiversity (HVB) with Environmental Management Plans (EMPs)

We will rehabilitate 90% of liberated areas in active and inactive quarries

WATER

Reduce specific water consumption in cement (245 l/t)

Reduce specific water consumption in concrete (216 l/m3)

Reduce specific water consumption in aggregates (94 l/t)

EMISSIONS

Reduce Particulate Matter (PM) emissions (45 g/t clinker)

Reduce NOx emissions (1205 g/t clinker)

Reduce SOx emissions (205 g/t clinker)

INDICATOR

BIODIVERSITY

[A-BI1]Percentage (%) of quarries located in areas of high value for biodiversity (HVB) with Environmental Management Plans (EMP)

[A-BI2] Percentage (%) of rehabilitated active and inactive quarries

WATER

[A-A1] Specific consumption of water in cement

[A-A1] Specific consumption of water in concrete

[A-A1]Specific consumption of water in aggregates

EMISSIONS

GRI [305-7] PM emissions

GRI [305-7] Nitrogen oxides (NOx)

GRI [305-7] Sulfur oxides (SOx)

DESCRIPTION OF SDG TARGET

All SDGs

COMPANY TARGET

Implement a due-diligence process to monitor the impacts on human rights in the different Stakeholders

INDICATOR

Status of the due-diligence implementation

How we report

Our guidelines

Who evaluates us

Our commitments

Atmospheric emissions

We are committed to reducing our emissions through actions that achieve more efficient processes and the implementation of abatement measures, contributing to good air quality in the places where we operate.  Our cement-, concrete- and aggregate-production processes generate punctual and scattered particulate matter (PM) emissions, as well as emissions of sulfur oxides (SO2) and nitrogen oxides (NOx) in the clinkering furnaces of the cement plants.

  • For society:  To contribute to mitigating the impact on air quality in the areas where we operate, acting responsibly and promoting relationships of trust with our Stakeholders.

 

  • For the company:  To develop more efficient processes that allow us to reduce our atmospheric emissions and contribute to responsible production, complying with local regulations in the countries where we operate and – in some cases – going beyond compliance with said regulations, contributing to the profitability of the business and preparing to face future challenges.

The “Emissions” pillar of our Environmental Strategy focuses on: Working on the adequate measurement, control and reduction of SO2, NOx and particulate-material (PM) emissions generated by our production processes in the cement business and on the prevention and mitigation of our dispersed emissions of particulate material (dust), originated mainly by the activities of transportation, transfer, unloading and storage of materials in the cement, concrete and aggregate processes. The foregoing, through operational control, optimization and renewal of emission-control systems to achieve continuous improvement.

Industry positioning

We position ourselves as strategic allies for the development of the territories where we are present, directly and through the empowerment of our value chain.  We do it through the construction of housing and sustainable infrastructure that enables the closing of socioeconomic gaps, the generation of employment, the improvement of the quality of life and the reduction of the impacts generated.

  • For society:  To sustainably respond to the growing demand for housing and infrastructure of the world population with the aim of improving people’s quality of life, interconnecting regions and developing innovative solutions. 

 

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    For the company:  To be strategic allies of the actors in our value chain in order to maintain the Company’s leadership in the market, ensure its competitiveness over time and increase the generation of sustainable value.

We are committed to the role we have as a Company in the achievement of the 2030 Agenda goals, the consolidation of territorial development plans where we operate, and the economic reactivation of the countries affected by the pandemic. Therefore, we focus our efforts in the development of sustainable housing and infrastructure projects that contribute to closing socioeconomic gaps, generating employment under safe conditions, environmental protection, and investment in improving people’s health systems and quality of life. 

Our work unfolds in three large lines:

 

Cities for everyone:

 

With nearly 54% of the world  population living in urban areas, the pandemic made inequality of those who live in the cities of the world

manifest. Nearly 90% of the COVID-19 cases are concentrated in the urban

centers that have, among others, challenges associated with access to basic services and decent housing conditions. For this reason, we work together with our value chain to develop projects that benefit the lessfavored population, facilitate access to housing, and promote development in

the areas of influence.

 

Interconnected cities

 

The need to connect urban areas with rural areas to expand the coverage

of basic services, such as health, has been a priority of developing countries

since before the pandemic. Therefore, during 2020, we continued working on creating innovative solutions that allow us to be present in the large projects of the countries and territories where we are present.

 

Intelligent cities

 

In recent years, the acuteness of the effects of climate change became the

risk of greatest impact to the world. Therefore, in the global stage, a need

has grown to transition to a low-carbon economy, an opportunity that becomes more relevant amid post-pandemic recovery scenarios and the effort we are making as a Company to generate new business models that respond to environmental and social challenges. For this reason, our Climate-Change Strategy includes actions aimed at mitigating the impacts associated with our productive processes, adapting our operating model and innovating from the identification of optimization opportunities.

Supplier management

Supplier management is a fundamental pillar of our Supply Chain Strategy; it seeks to build and strengthen relationships with strategic allies who have the ability to contribute to the Company in terms of efficiency, productivity, customer service and innovation.  For this reason, we carefully select our suppliers, transfer knowledge to promote their development, promote good practices and recognize those who are an example of sustainable, innovative, safe and responsible management.

  • For society:  To develop our suppliers, promote transparent practices and responsible conduct, to improve the productivity and competitiveness of our society and support the construction of a better future.

 

  • For the company:  To seek to add value throughout the Company’s supply chain, from the purchase of goods and services to the delivery of products to clients.  Through the mitigation of risks and potentiation of opportunities, the implementation of good contracting practices and service excellence, we create relationships of trust and turn suppliers into business allies.

Our management is divided into five stages:

  1. Identification: We determine the goods and services required for our operation and the category to which they belong, according to our Category Tree. This groups our suppliers into macro-categories which – in turn – are subdivided into two more specific levels.
  2. Pre-Selection: We validate the suitability of suppliers through due diligence and review aspects of sustainability and financial health to ensure long-term relationships.
  3. Negotiation: We select suppliers with high standards, considering technical, economic, sustainability and service aspects.
  4. Retention and evaluation: We carry out knowledge-transfer processes with those suppliers with growth potential.
    • We characterize our suppliers as critical suppliers or with potential risk in sustainability.
    • We measure the management of critical suppliers through performance evaluations in terms of quality, service, occupational health and safety, having constant feedback and identifying key factors for their development.
    • We apply the Sustainability Index to suppliers with potential sustainability risks, to identify challenges, opportunities, and to develop joint action plans in environmental, economic, social and Human-Rights matters.
    • We implement additional controls and development plans to suppliers belonging to categories where the greatest potential risks have been identified. This is how, for example, we develop road-safety strategies for our logistics suppliers; with mining suppliers, we carry out a more rigorous pre-selection process, and with contractors, we have special controls on occupational health and safety.
    • We have a Transparency Line for Stakeholders to report possible improper actions and to implement the pertinent corrective actions. 
  5. Recognition:  Every two years, through Growing Together (Creciendo Juntos), we recognize the suppliers that have shown outstanding performance in innovation, sustainability, health and safety and development and comprehensiveness.

 

Additionally, we have:

 

Contracting manual: transparent action framework that guides the negotiation and contracting of our suppliers to allow the process to be agile, make use of best practices and carry out adequate risk management.

 

Code of conduct for suppliers: in which we define the principles and behaviors that we expect from our allies in terms of respect for human rights, protection of workers, environmental management, business ethics and responsible business practices.

Ethics and compliance

We are convinced that ethics and integrity are fundamental and non-negotiable; that is why we live by these principles, integrating them into our operations, processes, and strategy, thus generating value responsibly for our business, our Stakeholders, and for society.  Through the Global Governance and Compliance Program, our ethics and business conduct system, we seek to promote that our actions are consistent with the pillars of corporate culture and integrity as the guiding principle of our business activity.

  • For society:  To promote transparent, competitive, and sustainable business environments that strengthen trust and ethics in business, generating positive impacts for the market and society.

 

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    For the company:  To promote that our actions are consistent with the pillars of culture and that integrity is the inspiring principle of all members of the Organization.  This is how we consolidate ourselves as a competitive, reliable company in the eyes of investors and other Stakeholders.

We have voluntarily adopted a self-regulatory framework that confirms our commitment to business ethics as a way to promote transparent practices that contribute to the development of competitive environments. This framework* incorporates mandatory principles of ethics and conduct:

 

 

For the proper implementation and application of these guidelines, the strengthening of the ethical culture, the prevention and control of incorrect actions, our Board of Directors approved the Global Governance and Compliance Program (GGCP, in Spanish). The program structure incorporates international best practices to evaluate compliance programs, such as ISO 37001, ISO 19600 and the United States Department of Justice (DOJ) guidelines. The program has the following scope:

 

 

Likewise, it systematically groups together the activities carried out to promote integrity in the Company’s actions, its employees, and members

of the value chain, which allow the updating and permanent strengthening

of the program. Operating Scheme:

 

Efficiency and productivity

We materialize our Corporate Strategy through actions aimed at the efficient use of resources, the improvement of our financial flexibility and the maximization of income generation and business profitability.  We focus on the application of efficient, safe production processes and circular economy models, on the diversification of energy management models and on the efficient management of the supply chain.

  • For society:  To provide solutions and products that meet the needs of our clients through the responsible, appropriate use of resources and the incorporation of raw materials and alternative energy sources.

 

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    For the company:  To guarantee business sustainability, optimize working capital and capital investments, reduce costs and the level of indebtedness, and mitigate risks regarding the availability of resources necessary for our operation and the emergence of new business realities, environmental requirements and new regulations.

Creamos valor construyendo relaciones sólidas que transforman el futuro de la sociedad

Creamos valor a través de nuestro compromiso con el desarrollo responsable y transparente de nuestras actividades.