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What is materiality

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What is materiality

Materiality analysis is a methodology that allows us to identify the key issues for business strategy and stakeholder relations. It becomes the guide for short- and medium-term management, and helps the company prepare for the future: making sounder decisions, evaluating new business opportunities, weighing potential risks and improving communication strategies.

Learn about double materiality

What is materiality

Learn more

What is materiality

Materiality analysis is a methodology that allows us to identify the key issues for business strategy and stakeholder relations. It becomes the guide for short- and medium-term management, and helps the company prepare for the future: making sounder decisions, evaluating new business opportunities, weighing potential risks and improving communication strategies.

Learn about double materiality

What is the process for identifying material issues?

What is the relationship between materiality and our corporate strategy?

Double materiality

During 2022 we updated the materiality for Argos, using a double materiality methodology, which allowed us to analyze how the company impacts the environment and society and how these also impact the company:

Financial materiality

Environmental and social impacts of the company

Environmental and social materiality

Impacts of the company on the environment and society

Company

Environmental and social

Company

Environmental and social

Financial materiality

Environmental and social impacts of the company

Company

Environmental and social

Source of decision making for the company on strategic financial issues

Environmental and social materiality

Impacts of the company on the environment and society

Company

Environmental and social

Civil society, clients, employees and investors

What is the relationship between materiality and our corporate strategy?

As a company we have 6 strategic pillars that guide our planning and action. These were the base input for the definition and prioritization of the 11 material issues.

Corporate materiality

Strategic pillars

DOBLE MATERIALIDAD

Durante el 2022 realizamos la actualización de la materialidad para Argos, mediante una metodología de doble materialidad, que permitió analizar cómo la empresa impacta el ambiente y la sociedad y cómo estos también la impactan:

Materialidad FINANCIERA

Impactos medioambientales y sociales en la empresa

Materialidad medioambiental y social

Impactos de la empresa en medioambiente y sociedad

Empresa

Medioambiente y sociedad

Empresa

Medioambiente y sociedad

Fuente de toma de decisión para la compañía en temas estratégicos financieros

Materialidad FINANCIERA

Impactos medioambientales y sociales en la empresa

Empresa

Medioambiente y sociedad

Fuente de toma de decisión para la compañía en temas estratégicos financieros

Materialidad medioambiental y social

Impactos de la empresa en
medioambiente y sociedad

Empresa

Medioambiente y sociedad

Sociedad civil, clientes, empleados e inversionistas

What is the process for identifying material issues?

El proceso para la nueva materialidad ESG se desarrolló en 4 pasos:

1

Analysis of the external context

Using specialized software, an exercise was carried out to monitor external risks and opportunities related to ESG issues in different industries and peers in the construction sector, identifying prioritized stakeholders. Through this tool we obtained data on regulatory environments, media, corporate disclosure, among others.

2

Analysis of the internal context

We identified critical issues for the organization based on the previous materiality exercise, understanding of risks, trends and the connection with the new strategic pillars.

3

"Whiteboard" qualification exercise

Conversations and interviews were held with different strategic areas of the company in all regions and teams that lead the relationship with the different stakeholders. These allowed us to analyze, complement and validate the issues initially identified in the external and internal referencing.

4

Consolidation of materiality catalog

The results obtained in the previous steps were verified and analyzed to obtain the consolidated information in a materiality catalog that includes: the company's strategic pillars, final material issues, alignment to GRI, SASB and Sustainable Development Goals indicators, prioritized stakeholders and performance indicators".

¿Cuál es la relación entre la materialidad y nuestra estrategia corporativa?

Como compañía contamos con 6 pilares estratégicos que guían nuestra planeación y acción. Estos fueron el insumo base para la definición y priorización de los 11 temas materiales.

materialidad corporativa

Pilares Estratégicos

Resilient Supply Chain

We have an integrated and resilient supply chain that allows us to forecast, anticipate and respond timely to our internal and external customers quickly and reliably and forge sustainable relationships over time.
Continuous supply chain planning is articulated with our strategy. This allows us to minimize risks, materialize opportunities, meet customer expectations and maintain high levels of service while preserving working capital and a profitable operation. 

For society: Promote transparent practices and responsible behaviour in the supply chain to provide the best possible service to customers. Likewise, improve the productivity and competitiveness of our society and support the construction of a more sustainable future.

 

For the company: To add value to the company, seeking to maximize the profitability of the business, through the strategic execution of planning, sourcing and logistics in the supply chain from the purchase of goods and services to the delivery of the product to customers. Additionally, mitigate risks and maximize benefits by managing business continuity and creating relationships of trust to turn our suppliers and customers into business allies.

We strengthened our Integrated Business Planning (IBP).
In the United States, we strengthened the IBP for cement, achieving visibility and projection of the operation into the future (24 months). As benefits, we obtained greater integration between business areas, improving transparency and opportunity evaluation, and high compliance with the sales plan (94%) and accuracy in sales forecasts (81%).
The implementation of the IBP in Trading has allowed us to integrate capabilities across geographies to maximize opportunities and guarantee our value promise in local markets. As a result, the export capacity of Zona Franca Argos to the United States, Central America and the Caribbean was strengthened and an export record was set, with 1.37 million metric tons of cement and clinker by the end of 2023.
In Colombia, the implementation of the IBP and the leadership of senior management led to identifying that we can operate with 33% less m2 and warehouse resources, and reducing transportation costs by 12.4% compared to budget and 3.5% compared to 2022.

 

A distribution network closer to customers
In Guatemala, we identified strategic locations for service centers, guaranteeing national coverage and adapting to changes in the environment. Our goal is to improve service and minimize operating costs, as we expect to reduce the cost of last-mile distribution, increase service with products close to customers, and expand in the local market.

 

Negotiating cement bag contracts: A commitment to savings and the circular economy
We negotiated two cement bag supply contracts in the three regions. In the United States, this negotiation will generate annual savings of US$1.4 million. We are also working with our new supplier in the United States to co-create a pilot bag without a plastic liner and are exploring the transition to unbleached paper.
In Colombia, Central America and the Caribbean, we used a predictive and simulation model for a corporate negotiation that generated savings of US$1.5 million. In addition, we conducted tests with compostable sacks to introduce them to the mass market in Colombia and encourage their proper disposal in the Caribbean.

 

We reward our most outstanding suppliers
In the Dominican Republic, we held the first event to recognize outstanding suppliers for their performance in 2023. This event is distinguished by its focus on integrating suppliers into our corporate culture and valuing their role as strategic allies in our joint growth.

 

Efficiency in transportation and logistics operations
In Colombia, we centralized the transportation operation under the leadership of Logitrans, optimizing resources, improving the distribution network and, thanks to the implementation of technologies, streamlining the processes of document control and fleet traceability. This has generated benefits such as a 25% increase in logistics efficiency and rotation of the loyal cement fleet, more autonomy in internal (movements with our own loads) and external (movements with other load generators) load offsets, generating savings of 9 billion pesos, and a reduction in the carbon footprint of transportation by moving more cargo with less equipment.

We recognize that the success of our business is intrinsically linked to supply chain performance.

  1. Planning: We carry out permanent integrated planning in the short, medium and long term to have a complete vision of the chain. This provides flexibility and agility in the face of interruptions, bottlenecks or demands. We have contingency plans to make rapid adjustments to changes in demand, inventory, production and distribution, ensuring effective, profitable and timely management.
  2. Procurement: We identify and link current and future sourcing needs to supplier capabilities, cultivating strong, collaborative relationships. We promote alignment with sustainable practices and risk management through strengthening and development programs.
  3. Logistics and distribution: We implement efficient logistics and transportation strategies with technology, optimizing routes and delivery times. We guarantee effective operations in the supply chain, maximizing productivity and ensuring timely deliveries.

Environmental Management

We responsibly manage renewable and nonrenewable natural resources by identifying and managing environmental impacts, which guide us on the fundamental lines of action in the environmental strategy and the implementation, monitoring and permanent improvement of the management system.

For society
Contribute to the availability of environmental services for current and future generations through the implementation of controls and impact management plans in our operations.

 

For the company
Manage the natural resources associated with our operations through the prevention, mitigation, correction and compensation of impacts, as well as responsible actions that promote relationships of trust with our stakeholders and that, in turn, mitigate the risks related to the dependence on natural capital for the production of cement, concrete and aggregates.

Ecosystems
In 2023, we launched our Statement for Nature, in which we established the focuses of action to achieve a net positive impact throughout our value chain, involving our communities, suppliers and prioritized customers.

 

We carried out the first nature risk analysis in our direct operations, which allowed us to understand and evaluate the risks related to biodiversity and prepare an appropriate response plan, aimed at achieving our long-term objective.

 

During 2023 we rehabilitated 341 hectares that were part of our mining operation, which is equivalent to 69% of the areas released in our quarries.

 

We achieved a specific water consumption of 227 l/t in the cement business, 219 l/m3 in concrete and 85 l/t in aggregates. which is equivalent to reductions of 5%, 9% and 24% compared to 2022 respectively

 

All of our active facilities are assessed for water stress levels. In 2023, 29.3% of our facilities were at a medium-high level . Only 7.1% of the total water consumption of our operations is carried out in basins with medium or high water stress.

 

Circular economy
The Toluviejo plant in Colombia was the birthplace of our circular economy training plan, Circularity Riders. This was designed to empower our employees and communities with tools and knowledge to implement sustainable practices. In our first approach, we impacted 33 employees and 21 community leaders.

 

In 2023, we reached a 7.2% substitution of conventional fossil fuels with alternative fuels, such as tires, biomass, refuse-derived fuels (RDF), among others. We also achieved a 10.1% increase in the use of alternative raw materials, such as ash or slag, in cement production and achieved a 14.6% replacement of supplementary cementitious material in the concrete business. We managed to use more than 2 million tons of waste in our production processes and prevented them from ending up in landfills.

 

Other emissions
In 2023, there was a considerable improvement in PM, NOx and SO2 emissions, with reductions of 32%, 15% and 48%, respectively, compared to the previous year. These reductions are attributed, above all, to the stabilization in the variability of the quality of coal available on the market and changes in burner technologies in our Rioclaro, Cartagena, Newberry and Harleyville plants. In addition, all our operations guaranteed legal compliance with the applicable regulations in each of the regions where we operate.

With our environmental management system, we seek continuous improvement, generating sustainable value for the company, our value chain
and other stakeholders by offering products and services with high standards. Our environmental strategy is the roadmap to achieve high performance and manage natural capital through:

 

  • Comprehensive water management.
  • The measurement and reduction of other gas emissions into the atmosphere.
  • Achieving a net positive impact on biodiversity and our commitment not to operate in areas protected or declared to be of high biodiversity value.
  • The implementation of circular economy models in our processes to manage products from their production to their disposal.
  • The contribution to closing the waste cycle in the geographies where we operate, through the co-processing and recovery of waste in our process.

Emisiones atmosféricas

Estamos comprometidos con la reducción de nuestras emisiones mediante acciones que logren procesos más eficientes y la implementación de medidas de abatimiento, contribuyendo a una buena calidad del aire en los lugares donde operamos. Nuestros procesos productivos de cemento, concreto y agregados generan emisiones de material particulado (MP) puntuales y dispersas, así como emisiones de óxidos de azufre (SO2) y óxidos de nitrógeno (NOx) en los hornos de clinkerización de las plantas de cemento.

  • Para la sociedad: Contribuimos con la mitigación del impacto en la calidad del aire en las áreas donde operamos, actuando responsablemente y promoviendo relaciones de confianza con nuestros grupos de interés.

 

  • Para la compañía: Desarrollar procesos más eficientes que permitan reducir nuestras emisiones atmosféricas y contribuir a una producción responsable, cumpliendo con las regulaciones locales en los países donde operamos y, en algunos casos, yendo más allá del cumplimiento de dichas normas aportando a la rentabilidad del negocio y preparándonos para enfrentar desafíos futuros.

Plan de prevención y control de emisiones dispersas 

Continuamos implementando medidas de mitigación para controlar las emisiones fugitivas, las cuales incluyen la construcción de cerramientos para el almacenamiento de materiales y combustibles y pavimentación de vías, caminos internos y riego continuo. 

Reemplazo de los filtros de los colectores de polvo de la Planta de Concreto Surinam 

Realizamos el cambio de 64 bolsas filtrantes de los colectores de polvo de nuestra Planta de Concreto en Surinam para mejorar el sistema de extracción de este material en la instalación; este proceso tuvo una gran inversión y permitió una reducción importante en las emisiones dispersas de material particulado.

El pilar de emisiones de nuestra Estrategia Ambiental se enfoca en trabajar en la adecuada medición, control y reducción de las emisiones de SO2, NOx y material particulado (MP) generadas por nuestros procesos productivos en el negocio de cemento, y en la prevención y mitigación de nuestras emisiones dispersas de material particulado (polvo), generadas, principalmente, por las actividades de transporte, transferencia, descarga y almacenamiento de materiales en los procesos de cemento, concreto y agregados a través del control operacional, la optimización y la renovación de sistemas de control de emisiones para lograr el mejoramiento continuo.

Business ethics, compliance and integrity

Our values of ethics, transparency and integrity are fundamental and non-negotiable. That’s why we live these principles by incorporating them into everything we do, from our strategy to our operations and processes.


This has allowed us to consolidate ourselves as a trustworthy company for all our stakeholders, promoting a transparent environment that encourages the correct way of doing business and ensures the integrity of the market and the industry.

For society: Implement actions that promote transparent and sustainable behaviours in relationships with stakeholders. Likewise, promote the strengthening of trust and ethics in business to generate positive impacts in the market and in the environments where we are established.

 

For the company: Promote and align the behaviours of employees with the ethical and cultural pillars of the organization. In this way, we consolidate our position as a comprehensive, competitive and reliable company in the eyes of investors and other
stakeholders.

Transparency Line
This channel allows anonymous reporting of behaviors and actions contrary to our Code of Business Conduct, its associated corporate policies and other legal obligations adopted by the company on the part of our employees, customers, suppliers, shareholders, communities and other stakeholders. In 2023, we closed 129 of the 152 cases received (85% effectiveness).

 

We strengthened the Antitrust Compliance Program
In 2023, we reached an agreement with the U.S. Federal Highway Administration (FHWA) for FTI Consulting Inc. to be the external supervisor of the Antitrust Compliance Program for Argos USA, thus avoiding suspension or debarment in projects financed with public funds.
On the other hand, we continued to deploy training through practical workshops and virtual training mechanisms, training 491 employees in competition, including senior management and people with greater exposure to risks in this area.

 

Compliance risk management
In 2023 and with the accompaniment of the external firm OlarteMoure, we held the first Argos Compliance Day, a day in which we held various workshops aimed at areas and employees with greater exposure to compliance risks (corruption, bribery, money laundering, terrorist financing and personal data). We also shared communications with employees and suppliers, which included guidelines for the treatment of personal data, information security and conflict of interest management.

 

Conduct training
This year we disseminated our principles of business conduct and related policies to administrative/corporate personnel through the annual conduct course called The Power of Your Decision – Fourth Season. Considering the challenges of access to technological tools in operations, we trained technical and operational personnel in conduct through the Estamos en la Jugada (We’re in the Game) course. This easy-to-access course was adapted to cultural differences and the risks that employees may face in the performance of their duties and in their daily work.
In the United States, a new Code of Business Conduct was presented, precisely drafted to resonate with the regional audience, taking into account the risks inherent to this geography. Also, seeking to align the expectations of the new policy with existing practices, The Argos Way video campaign and the When in Doubt Speak Out campaign were launched.

Our system is prepared to define remediation plans and increasingly secure control mechanisms, which prevent the materialization of risks of fraud, corruption, money laundering, financing of terrorism, bribery, information security and personal data processing incidents, violation of competition rules, and non compliance with human rights, among others.


We have voluntarily adopted a self-regulatory framework that incorporates mandatory principles and standards regarding ethics and conduct, which confirms that we conceive our commitment to integrity in business as a way to promote transparent practices that contribute to the development of competitive and sustainable markets.

Sustainable products and solutions

As part of our value proposition, we continue to expand our portfolio of products and solutions for the development of sustainable and resilient territories from an innovative and responsible perspective towards the decarbonization of the construction sector.

For society: To promote, through our portfolio, the construction of a more sustainable, prosperous and inclusive society that improves people’s quality of life and connects regions with opportunities for progress.

 

For the company: To offer sustainable products and solutions that allow us to be the best ally for our customers in the design, construction
and maintenance of the territories where we have a presence, managing the risks and opportunities brought by population growth and climate changes.

Cements and concretes with low carbon emissions
In the Colombia region, we launched the “We are the future contained in ourselves (Somos el futuro que llevamos dentro, in Spanish)” campaign, focused on reaffirming our commitment to sustainability by promoting conscious decisions to build environmentally friendly homes and infrastructure.

 

Automation of the environmental footprint of our products
We have developed a CO2 information system integrated into our products, called the Green Solutions Dashboard. This has allowed us to meet the requirements of our customers from the needs of certification systems such as LEED, Casa Colombia, Edge, among others. The tool is powered by the results of the life cycle analysis (LCA), which have allowed us to materialize in figures and indicators the CO2eq emission reductions that the projects have had due to the consumption of our products, whether cement or concrete.

 

MAKING PROGRESS WITH ARGOS MODULAR SOLUTIONS
In 2023, we executed industrial and housing projects for more than 50,000 m2, represented in the construction of 12 buildings and the mezzanines of a production plant, with advanced concrete elements. Our plant in Cajicá, Cundinamarca, which began operations in January 2023, required an investment of COP 24 billion and became the first production centre in Colombia to manufacture structures of this type.

 

3D PRINTING IS REVOLUTIONIZING THE WAY WE CREATE CONCRETE OBJECTS AND STRUCTURES
In 2023, with the installation of the 3D printer for the development of affordable housing, we completed the first phase of the digital construction laboratory at the National University of Colombia, Medellín headquarters, where we have the objective of developing technologies to increase the productivity of construction, particularly housing, and thus allow more families to fulfil
their dreams.

 

We developed “”All in one bag”” products
In Panama, we continue to seek to offer solutions that minimize environmental impact and improve production processes. These pre-mixed concrete and mortar solutions guarantee quality and performance in each application, reduce waste, and increase efficiency on construction sites. We highlight Concrefácil which, after three years in the Panamanian market, has recorded 13,967 tons of sales and is recommended by contractors due to its ease of preparation and application, as having everything in one bag (cement, aggregates, and stone) facilitates construction, repair, or renovation of homes in hard-to-reach areas.

 

We launched our ECO Friendly seal in Honduras
In 2023, we launched this brand that communicates to our customers that we are allies for the sustainable development of the country, leaving a positive footprint in the improvement of rural roads, urban development, and infrastructure. To date, we have reduced CO2 emissions by up to 40% compared to the average Environmental Product Declarations (EPD) of the industry for Portland cement.

 

Suriname, a leader in innovation
In 2023, we launched Masonry Cement, the first product with sustainability characteristics in the market, which has 40% less clinker. This cement offers a specific application for plastering and rendering, allowing our customers to achieve faster and more efficient execution, based on their requirements and recommendations.

EcoStrong PLC Cement, part of our goal to achieve net zero carbon emissions.
In the United States region, this product is designed with a higher limestone content than Portland cement, reducing the carbon footprint while maintaining the same performance our customers expect. In 2023, we completed the conversion of our four Type I/II cement plants to Type IL production, achieving a 77% growth in sales compared to 2022, with over 200 customers starting to purchase EcoStrong PLC.

We declare and share our commitment to a more sustainable future, inviting the present and new generations of construction professionals to inform themselves, decide and act in favour of their environment.
For this reason, we make available our portfolio of sustainable products and solutions that, together with design and construction strategies, contribute to obtaining sustainable construction certifications and many other benefits.

Customer Experience

Our customers are our reason for being; therefore, our commitment is to provide them with extraordinary solutions through a differentiated, safe and effective service through technological proposals and products that are accessible, affordable and innovative and tha allow them to improve their management and even save time and costs. In this way, we are mobilizers of industry transformation, market leaders and strategic allies of those who build and bring construction materials to communities to make their housing and infrastructure dreams come true.

For society
Be key allies for our customers and society in the promotion of sustainable, smart and interconnected cities, promoting innovation with solutions that promote competitiveness.

 

For the company
Know and activate the mobilizers that drive our customers to connect and transact with our brand, to focus on the attributes of the value offer that are most appreciated by them. This management of the experience enables repurchase and loyalty, as well as the activation of new ones due to the recommendations that the market gives about the brand.

Transferring knowledge to our hardware allies and master builders
One of the ways we have implemented to generate permanent value for our customers has been through the transfer of knowledge. We are doing this mainly through two mechanisms:

  1. Accompaniment in constructions: The objective is to share technical and product knowledge with our customers and provide them with experiences on-site that promote safe practices and inspire innovation and industry excellence.
  2. Offering formal training programs: Through educational programs (training, education and certifications) and with the support of public and private entities and unions in the sector, the objective is to strengthen and enhance the management skills and knowledge around the world of construction of our customers. In 2023, over 4,800 individuals, including hardware store owners, employees, and construction foremen, received training throughout the year in all the markets where we operate.

 

Customer experience evaluation
Measuring customer experience is a discipline that has been gradually and systemically adopted since 2019 and has, to date, reached 89% coverage of our revenue. In the Colombia region, which achieved an NPS of 75.7% and has shown a very significant growth trend over the past two years.

 

Argos One, our digital strategy
We continue to strengthen our digital platform, Argos One, in Colombia, the United States, Panama, Honduras, and Puerto Rico. With this platform, we integrate the various digital services we offer to our customers, simplifying and streamlining their interactions with our company through a user-friendly and agile experience powered by artificial intelligence (AI).

 

In Colombia, we highlight that this year we began measuring the Digital Global Score indicator, which allows us to identify the level of digital adoption at all customer interaction points, from purchase to payment. For this region, in 2023, this indicator closed at 69% for cement and 57% for concrete.

 

In the United States, we are focusing efforts on enhancing the digital experience throughout the customer journey. We highlight the implementation of the Credit Application online to provide our customers with a digital experience for their credit application in just a few minutes, a process that previously could take several days.

 

WhatsApp chatbot
The WhatsApp chatbot has been a key tool in strengthening the company’s digital strategy. In the case of Honduras, this strategy has led to a fourteen-percentage-point increase in digital adoption compared to the January 2023 result. In Puerto Rico, this has been the first digital strategy incorporated in the country, and during the year 2024, the goal is to expand this channel and incorporate other functionalities and capabilities.

 

Loyal customers
In some of our regions, such as Colombia and Honduras, we have loyalty programs that reward the commitment and loyalty of our customers to the company. In Honduras, the Gana Más loyalty plan is focused on two segments:

  1. Hardware store customers: earn points for the purchase of cement.
  2. Hardware store sellers and end consumers: earn points for invoices of cement purchases entered into the loyalty plan.

 

In Colombia, our Amigos de Argos loyalty program is divided into three segments:

  1. Amigos de Argos for major hardware store customers and their mass business dependents: accumulate points for purchases from the company and sales of products they make.
  2. Amigos de Argos for foremen: accumulate points for invoices of Argos product purchases at hardware stores.
  3. Amigos de Argos for employees and referrals: allows for the purchase of company products at special prices.

As a company, we have stated that, in our culture, the customer is our passion; this is why it is at the centre of our decisions. The path towards this strategy is led by the organization’s management team; with them we delve into the current experience of our customers and their needs and we focus on:

 

  1. The development of customer-focused culture capabilities and methodologies designed for the interaction of employees with the consumer.
  2. Customer service processes and channels, established through customer experience models.
  3. The evaluation system that allows the monitoring of results and the action of improvement opportunities.

Mitigation and Adaptation to Climate Change

At Argos, climate action is focused on minimizing risks and enhancing opportunities associated with climate change; it is relevant in our strategic framework since it allows us to ensure the competitiveness, permanence and resilient growth of both the company and its value chain. We understand that our actions to mitigate CO2 emissions and to promote the adaptation of the company and society to the effects of climate change is our contribution to building a more sustainable future for all.

For society: Contribute to facing the challenges derived from climate change through the development of initiatives to mitigate CO2 emissions, the development of sustainable products and solutions that help leverage adaptation capabilities and promote innovation in construction, while promoting the creation of social value in the geographies where we have a presence and contributing to a more resilient society.

 

For the company: Transform our production model, mobilize our financial model, enhance the opportunities associated with climate change and influence the construction industry model, to accelerate the mitigation of physical and transition risks and scale adaptation to the impacts of climate change driving value generation.

Decarbonization of our production processes
In 2023, in collaboration with Scitis, we advanced in the development of the analytical model in SAP BW 7,5 to automate the measurement of the carbon footprint, scopes 1 and 2 (by location), in our cement operations.

 

Scope 1 emissions
Specific net CO2/t cementitious material and absolute net emissions decreased by 4,4% and 6,2%, respectively.
* Thermal efficiency: We highlight the advances in the efficient use of heat energy in the production of clinker and cement at the Cartagena and Martinsburg plants. We managed to reduce more than 971,000 MJ in 2023 compared to 2022.
* Substitution of caloric consumption of conventional fuels with alternatives: In 2023, in Colombia, we achieved a 3.3% substitution of coal and petcoke use with 29,826 tons of waste (tires, impregnated hydrocarbons, RDF and biomass). We maintained the clean and safe co-processing of 15,000 tons of material impregnated from hydrocarbon sludge and other hazardous waste.

 

Scope 2 emissions
In 2023, specific CO2 emissions scope 2 were reduced by 4.3% compared to 2022, mainly due to the increase in the purchase of renewable energy.
We highlight the initiatives to reduce electrical energy consumption in our cement plants, which allowed us to achieve a reduction of more than 58 million MJ in 2023.
* Power purchase agreements (PPAS): In Colombia we began the execution of a ten-year contract with Isagen to purchase certified renewable energy –I-REC–. Savings of close to 12% compared to the previous rate are estimated.
* Renewable energy projects: We inaugurated our second solar farm of our company and the cement industry in Honduras, with an investment of close to USD 1.2 million. This farm consists of 2,160 photovoltaic modules, with which around 1.6 million kWh/year will be generated.
In our cement and ready mix operations in Panama, for the third consecutive year, we joined the Reduce Your Corporate Footprint Program – Carbon Section, the first voluntary program for the management of the carbon footprint at the organizational level. In 2023, we advanced our management and reach the highest possible carbon neutrality category, for scopes 1 and 2, in cement and ready mix operations. To achieve this result, we offset 5,244 t of CO2 .

 

Innovation and alliances
In the United States, the migration to type IL cement (a cement with a higher limestone content compared to Type I cement) continues its pace since the introduction of the product to the market. In 2023, more than 200 customers began using EcoStrong PLC, and sales of this product increased by 77% compared to 2022.

 

We are expanding capabilities in the pilot to evaluate new microalgae cultivation systems, targeting captures of approximately 890 tons of CO2/ha per year. Our goal is to have a pilot plant in operation in Cartagena by the end of 2024 that will allow us to validate the CO2 to biocrude oil transformation chain.

 

Through an alliance with Veolia, main waste manager in the country, we presented a solution to take advantage of oily sludge derived from hydrocarbon refining processes that are carried out at the Ecopetrol refinery in Barrancabermeja. This temporary union of Veolia and Argos, with an initial duration of five years, will manage more than 7,000 tons of waste annually.

 

Value offer
As part of our value offer, we continue to expand our portfolio of products and solutions for the development of sustainable and resilient territories. In “Sustainable products and solutions”, the progress made by our company in managing this material issue is presented in detail.

 

Promoting the transition to a low carbon economy
* In 2023, after rigorous validation and verification, we obtained Cercarbono certification for reducing 19,693 tons of CO2e by replacing fossil fuels with alternatives, and we issued the first carbon credits in our operations in Cartagena.
* In 2023, by acquiring carbon credits from Celsia and Forestry, we prevented the imposition of the carbon tax in Colombia for 26,640 tons of CO2 generated by the use of liquid fuels in our cement, concrete and aggregates operations.

 

Mobilization of the financial model
* In 2021, we approved an investment of USD 130 million for projects that will reduce our direct CO2 emissions. Of these, USD 52.9 million make up investment initiatives in our plants, while the remaining USD 77.1 million will strengthen the supply of waste for co-processing, in alliance with authorities and waste managers.
* In 2023 we updated our internal carbon price to a value of USD 15.8/t of CO2
* To address climate change, we link our financial debt to sustainability commitments with financial institutions. For more details on this management, see the material issue profitable growth.

At Argos we accept climate change as a challenge, but also as a unique opportunity for our operations and our value chain. We have a strategy aimed at three objectives:

 

Mitigation: To reduce direct and indirect CO2 emissions.
Adaptation: Identify the risks to which our operations are exposed and propose mitigation actions.
Investigation and development: Develop products with lower emissions and construction solutions that reduce emissions from buildings from a life cycle perspective.

 

In order to achieve these objectives, we frame our management in the following five lines of work:

 

  1. Decarbonization of our production processes.
  2. Innovation and alliances.
  3. Value offer.
  4. Promoting the transition to a low carbon economy.
  5. Mobilization of the financial model.

Talent and Inclusion Management

At Argos, we recognize the importance of having talent to advance our objective of contributing to the transformation of society. We strive to establish optimal working conditions that promote the personal and professional development of our team, in favour of a balance between profitability and social and environmental responsibility. We seek to create work environments that promote respect and appreciation of differences, aspiring to contribute to the construction of a society in which all people have the opportunity to develop their potential to the fullest.

For society: Transform our society through the development and empowerment of people who are aware of their environment, who transcend, who generate value with each of their actions and who are willing to make a difference in the societies they impact. The above, under criteria of diversity and inclusion and behaviours that go beyond our operations and generate well-being and positive impact in the communities.

 

For the company: Consolidate an extraordinary team that welcomes change as an opportunity, that creates shared value in collaborative and inclusive work environments to face current and future challenges and that is an ally for business growth and the generation of innovative solutions, in a clear balance between profitability, social development and environmental impact.

Management development with emphasis on gender equality
We welcomed the second participating cohort of the management capabilities development program with an emphasis on gender equity, this time with a focus on developing professionals from the different company operations. This cohort, made up of 33 women, prioritized personal development as a fundamental pillar to promote future leadership. In 2023, 30.23% of leadership positions are held by women.

 

Development and succession routes
In 2023, we consolidated and strengthened our processes related to succession plans for critical positions and the development routes of our employees. 14.28% of vacancies in critical positions in 2023 have been filled by people participating in the development and succession plan.

 

Conversations for Development
Performance management starts from senior management, with annual cycles in which Conversations for Development and evaluations are activated. Additionally, the possibility of providing comprehensive feedback and recognition between leaders, peers and subordinates is permanently enabled.
• In Colombia, the value of the Conversations for Development was redefined at an operational level, and a satisfaction indicator for the initiative was reached above 74%.
• In the United States, the Conversations for Development were launched, with the participation of more than 90% of employees.
• In Honduras, more than 1,622 recognitions were made that seek to inspire and mobilize the culture of recognition among employees.

 

Argos consolidates itself as a learning ecosystem
The reconfiguration of the corporate model of competencies of the business group, a road map for the development of our talent, drives the creation of the Argos Academy. The Academy is a program that contributes to strategy, enables development and increases performance, based on agile, meaningful and progressive learning. In 2023, we had 238,328 training hours, of which 6.95% are related to leadership development.

 

Committed to the well-being and quality of life of employees
During 2023, we carried out the work environment measurement, which reached participation of 92% and had a notable improvement, compared to previous measurements. Additionally, we implemented the psychosocial risk diagnosis in Colombia, Central America and the Caribbean, in which the factors evaluated show a positive profile for the company, with no high-risk alert.

 

Diversity, Equity and Inclusion (DEI)
In Honduras we signed a collaboration agreement with the United States Agency for International Development, USAID and the training program for women as forklift and machinery operators was launched, in conjunction with the Honduran Chamber of the Construction Industry, with which twelve Honduran women were certified.

 

In the United States for the first time, the executive team was made up of a woman, in the position of Chief Financial Officer (CFO).

Our talent management is human-centered and seeks to offer the best experience to our employees so that they become protagonists of their development. We are convinced that diversity enriches and adds value; therefore, it is necessary to have people who assume their development decisively and comprehensively, being architects of their growth, while contributing the best of themselves. At Argos, talent potential is managed through three fundamental lines:

 

  1. Development, maintenance and strengthening of critical competencies.
  2. Recruitment, retention and development of the best talent.
  3. Promotion of high standards in work practices.

Safety, health, and personal well-being

Safety and health in our lives are the main values for building our dreams and of those around us. Our strategy and values in comprehensive health and safety transcend the most demanding global standards for risk management and mobilize us every day to achieve our objectives.

 

At Argos we focus on strengthening and making visible leadership and relationships of trust as key elements to take care of each other; we are inspired to contribute to the development of a safe and healthy society. Therefore, we focus beyond ZERO (zero injuries, illnesses and effects on our employees and stakeholders) to raise awareness about well-being and the value of life.

For society: Transcend our workplaces and schedules to contribute to the development of safe and healthy territories and thus generate a positive impact on the well-being of our contractors, employees and their families and the different stakeholders with whom we interact.

 

For the company: Remain safe and healthy inside and outside the company facilities through teamwork, strengthening leadership and empowering everyone, providing safe and healthy conditions to all our employees, contractors and visitors.

Our management in figures:
* We highlight that for the fifth consecutive year, we achieved a 67% decrease in the Global Frequency Index compared to the baseline (2019).
* We achieved zero fatalities in direct employees and contractors for the third consecutive year.
* We reduced severe injuries by 66% and total injuries by 38% compared to 2019.
* During 2023, we successfully intervened in 97% of high-risk situations identified in operations through both scheduled and unscheduled inspections.
* In 2023, we implemented a new indicator that accounts for comprehensive and proactive management in health and wellness. In this first year of measurement, we achieved a 58% result in countries where implementation was successful: Colombia, Panama, Honduras, the Dominican Republic, and Puerto Rico.

 

Management Walks: another perspective on operations
We emphasize the impact of this program in the Central America and Caribbean region, where total injury rates (ILT), which had been increasing during 2022, have improved their trend. This has allowed us to sustain actions and motivate teams to remain committed and participate in continuous improvement and operational excellence.

 

You’re Never Alone on the Road: Advanced Driver Assistance Systems (ADAS)
The workdays of our drivers require great effort due to city traffic and road conditions. At Argos, we have decided to accompany and support them in these critical activities through ADAS (Advanced Driver Assistance Systems).

 

These assistants allow our drivers, in case of distraction, erratic driving signals, or internal procedure violations, to react appropriately and prevent an event from occurring.

 

Technologies in Service of Health, Safety, and Well-being
Today, our employees immerse themselves in a world of learning through experimentation with simulators that expose them to recreated risk situations in controlled environments. Over 3,200 employees have actively participated in these simulation spaces, contributing to a 20% decrease in the company’s frequency index and total injuries.

 

In the driving simulators, we not only control the speed of the simulator, as was done in its initial phase, but we also promote awareness of safe distances between vehicles and educate on defensive driving to prevent inappropriate reactions. With this, we have recorded an 80% reduction in rollovers compared to 2022.

 

Emotional Security, an Emerging Issue for a Healthy Organization – Mia
In 2023, and after a successful process, we introduced Mia, a chatbot that uses artificial intelligence to predict the risk of mental health consequences in the next three to six months based on a WhatsApp conversation.
Mia has a crisis network; if it detects a case, it activates the immediate attention of an expert (with a three-minute response time).

I Promise: The heart of our culture!
Since 2014, our I Promise management system has been the main mobilizer of culture towards care and well-being since it provides our employees and contractors with a toolbox to discuss and experience safety as an integral part of all our processes and thus be able to achieve and sustain our goal of zero occupational injuries and illnesses.

 

I Promise has responded to global needs and trends; therefore, since 2022, we have implemented I Act for empathetic and conscious leadership, a program that strengthens and boosts leaders’ abilities to inspire and influence teams. During 2023, we will integrate health and well-being with a personal approach, developing a model that will leverage the purpose of becoming a healing organization and that will be progressively integrated into our current health and safety strategy.

Social Value

We create value for society through a transparent relationship with all our stakeholders, promoting responsible action and the construction of relationships of trust that generate opportunities for joint growth. In this way, we promote the progress of the territories in which we are established, facing the challenges of society, transcending our role and participating as an ally of development.

For society: Promote development to increase the quality of life and improve social conditions in the territories where we have a presence while addressing the long-term development needs of communities through an equitable relationship, mutual recognition and respectful and transparent dialogue.

 

For the company: Guarantee the sustainability of the business and compliance with corporate objectives, minimizing social risks and strengthening the support of communities and enabling us to continue operating with a high reputational standard.

Act responsibly
In 2023 we minimize impacts to communities through our “act responsibly” pillar. We assessed the risks arising from the interaction with our communities in 95% of our active operations, which allowed us to manage current and emerging social risks and leverage the actions and resources necessary to increase positive impacts to reduce the materializations of risks to communities.

 

Build trusting relationships
We focus on actions that will allow us to maintain the 71.7% satisfaction rate we have in our communities. Along these same lines, we strengthened the management of our Corporate Volunteering. We have more than 930 volunteers, who have dedicated 4,745 work and non-work hours to benefit the territory.

 

Generate opportunities
Through social investment, we positively impact the quality of life of the people who live in the territories where we operate. This year, our social investment was COP 35,155,809,161, 14% more than in 2022; this is reflected in aspects such as housing, citizenship for development and climate
change. In line with this, we ally ourselves with actors in the territory to generate a greater impact; in 2023 we increase leverage by 10%, reaching more than 461,000 beneficiaries.
Through the strengthening and expansion of social programs such as Casa para Mí, Vesta, Healthy Homes y Works-for-taxes, we have improved the local management of the operation with a genuine commitment to contribute to a more sustainable, prosperous and inclusive society.

 

Vesta, alliance for access to housing
In 2023, together with Comfama, we launched Vesta, a social innovation initiative that was born to contribute to the reduction of the quantitative housing deficit and improve the quality of life of families. This is a support and advisory program that connects them with housing offers, mortgage loans, available subsidies and other financial possibilities. The program provides advice and support throughout the entire home purchasing process, from financial preparation to delivery.

  1. Act responsibly promoting respect for human rights in our operations. By 2030 we commit to:
    a. Zero materialization of risks for the community.
    b. Zero percent of operations with high and critical risks of affecting communities.

  2. Build trusting relationships through a fluid and transparent dialogue. By 2030 we commit to:
    a. Zero repeated complaints from the community.
    b. To achieve the 70% satisfaction in communities.

  3. Generate opportunities of development to promote the growth of the territories. By 2030 we commit to:
    a. Achieve the 30% of resources leveraged with third parties.
    b. Achieve 630,000 people impacted through social investment programs.

The above is continuously monitored and integrating the elements of our Local Relationship Plan (LRP), which contributes to the management of relations with the community in the territories.

Human Rights

Within our vision of sustainability, we integrate human rights as one of the main levers for the creation of value inside and outside the company. In addition to representing a global commitment, they are a guide for management and relationship with stakeholders.

 

In all our relationships and communication channels, we ensure the protection of human rights; likewise, we promote them to contribute to the goals set out in the sustainable development objectives, with a vision of generating value, development and growth in all the areas where we have a presence and with the actors with whom we interact.

For Society: Manage human rights risks, mobilize our cultural pillars and maintain relationships of trust and respect with all stakeholders to seek the protection of people and the environment with the implementation and promotion of an ethical and responsible environment.

 

For the Company: Promote and raise awareness among stakeholders about respect for human rights and the prevention of actions that generate risks in this matter, to maintain trust and avoid impacts on the environment and the integrity of people.

A look at our materiality through human rights
Human rights are transversal to the management we carry out in all areas and processes; therefore, in 2023 we included a look at these rights within each of our material topics. We carry out this analysis in two moments: understanding how we can generate more value by involving them and determining the risks that not doing so brings for each material issue.

 

Evaluation of our human rights management system
This system has different mechanisms that allow us to implement due diligence, to guarantee respect and promotion of human rights and contribute to access to reparation, in case of violations. In search of continuous improvement of this process, we relied on a consultant who reviewed, evaluated and recommended good practices to strengthen and maintain relationships of trust based on respect.

 

Human Rights Committee
Since 2022, we have consolidated a Human Rights Committee that includes representatives of our stakeholders. In this, we seek to generate permanent dialogue spaces to review and implement the best practices and trends that improve our management.

The principles of human rights are reflected in actions, operations and daily relationships with all our stakeholders. We have permanent due diligence and risk management processes that allow us to monitor the behavior of the company and our prioritized groups.

This process consists of five steps:

 

  1. Identification of risks: Identification of risks according to the level of violation of human rights in the prioritized groups.
  2. Action and remediation plan: Definition of action and remediation plans that reduce risks or close gaps.
  3. Tracking and monitoring: Dialogue channels to execute action plans, monitor impacts and generate alerts regarding increased risks.
  4. Risk update: Permanent updating of risk information through different mechanisms.
  5. Communication: Communicate human rights management to promote transparency, participation and build trust.

The Company's Profitable Growth and Core Value

At Argos, the planning and execution of initiatives aimed at reducing the gap between the price of our shares, listed on the Colombian Stock Exchange, and their fundamental value is a strategic priority.

 

These initiatives seek to bolster confidence in our company, generate value for our shareholders and for society, based on long-term growth that is both intelligent and profitable.

For society: Sustainability and profitability are fundamental pillars of our strategy. Through these we enable the development of initiatives with high value for all our stakeholders.

 

For the company: Generate value for our stakeholders through a profitable business model supported by specific initiatives aimed at closing the value gap of our shares. We are convinced that this approach translates into the strength and growth of our business, guaranteeing long-term profitability for all our investors and contributing to the construction of a better society.

Share Value Management
Since the beginning of the execution of our SPRINT program, our common share has had a total return6 of 138% and the preferred share, of 159%; likewise, we were able to meet with the initiatives proposed in the five pillars of the program.

 

We increased the distribution of dividends to our shareholders
In 2023, 100% of the COP 445 billion in dividends were distributed, made in 4 payments throughout the year. In this way, COP 322.5 per share were distributed, 15% higher than in 2022.

 

We launched our share buyback program
Since September 27, we began the execution of the program through direct purchases in the market and, in addition, 3 offers were made through the independent mechanism. In 2023, we purchased approximately 7,170,809 common shares and 1,027,454 preferred shares, equivalent to COP 45.3 billion, achieving an advance of 36% of the COP 125 billion approved.

 

We listed our business in the United States on the New York Stock Exchange
On September 8, 2023, we signed the agreement to combine our operations in the United States with Summit Materials, to create a leading national construction materials platform. As a result of this transaction, we received approximately USD 1.2 billion in cash and 54.7 million shares of Summit Materials stock, equivalent to a 31% interest in the combined entity. Argos North America Corp was valued at approximately USD 3.2 trillion.

 

We improved the liquidity of our common shares
The trading volume reached a daily average of 185% higher than that of 2022, for an approximate value of COP 4.8 billion. In this way, the stock became more attractive to institutional investors, for whom liquidity in the market is essential to buy or sell shares of our company.

 

We obtained financing advantages through our sustainability performance
Our focus on sustainable management has opened the possibility of financing ourselves through loans related to environmental, social and corporate governance criteria, enabling access to financial products with better conditions. In 2023, 29% of the debt is tied to credits associated with sustainability indicators.

In order to achieve our profitability and growth objectives, we decided to consolidate and strengthen our actions under the global framework called SPRINT – Share Price Recovery Initiative.
This program is supported by five pillars designed to enhance and improve initiatives aimed at closing the value gap of our company:

  1. Maintain focus on strong operational and financial results with special emphasis on profitability.
  2. Increase the distribution of dividends to our shareholders by 15% in 2023, with a total amount of COP 445 billion.
  3. Launch a share buyback program worth COP 250 billion.
  4. List our United States business on the New York Stock Exchange.
  5. Improve the liquidity of our common shares by appointing a market maker.

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:

 

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

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.

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.

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.

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.

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