Committed: Holcim (Lanka) LTD 413, R.A. de Mel Mawatha, Colombo 03, Sri Lanka

"Strength. Performance.
Passion"
Committed
Sustainable Development Review 2012
Holcim (Lanka) Ltd
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Holcim (Lanka) Ltd
413, R.A. De Mel Mawatha,
Colombo 03,
Sri Lanka
Introduction
Organizational Prole 2
Reporting Parameters 8
Governance, Commitment & Engagement 9
Vision and strategy
A message from the CEO 15
Sustainable Development strategy 17
Embedding our commitments 18
Economic impacts inuencing our value chain 18
Determining material issues 18
Our priorities 19
SD Challenges
1. Sustainable Solutions & Construction
Providing sustainable solutions 24
Innovation for value creation 27
Promoting sustainable construction 30
2. Energy & Climate
CO2 Efciency 34
Beyond Compliance 36
3. Biodiversity and water
Conserving Biodiversity 41
Water Management Initiatives 43
Our People
We Build Foundations for Our People 47
A Responsible Employer 48
Engaging with Our Employees 48
Training Learning & Development 49
A Safe Working Environment 51
Social Commitment
Sustainable Income Generating Knowledge and Skill Levels 56
Meeting the Primary Need of Shelter 58
Educating the young to spearhead the future 61
Spurring Industry Togetherness 62

Performance data 63
Contents
Photography by Taprobane Street
Digital Plates by Imageline (Pvt) Ltd
Printed by Printage (Pvt) Ltd
Holcim. Committed.
We know that our strength and prosperity is deeply
connected to the strength and prosperity of those with
who we live, work and interact. We understand that
communities driven by a long term view are those that
will succeed and survive. That is why our vision is to
build foundations for Sri Lankas future: a future that
will be shaped by eco-friendly strategies, intelligent
investments and a deep concern for the wellbeing of
our nation, our people and our planet. A future that will
be inclusive, empowered and above all, sustainable.
We are deeply proud of our 100 year global heritage
and the brand loyalty we have gained for our premier
product - Sanstha. Our commitment to our vision is
total. It is our pledge to build resilience into everything
we do; a promise of reliability that we are now reputed
for, the success of which can be measured by the results
recorded in this report.
Holcim. Committed to the future.
This report brings you a detailed analysis of our sustainability initiatives for the years under review.
2 Holcim Lanka Sustainability Review 2012
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Organisational Prole
Name of the organization :
Holcim (Lanka) Ltd.
Primary brands products and/ or services:
Cement is manufactured by grinding clinker to a ne
powder, resulting in the production of different types of
cement. In combination with sand, gravel or crushed
stone and water, cement acts as the binding agent in
the manufacture of concrete. Cement production is both
resource and energy intensive. Given the negativities
that arise from these intensities, Holcim is extremely
committed to improving our eco-efciency, with a focus
on the holistic view emanating in the entire production
process, from the manufacture of the product, to use and
increase concrete efciency.
Holcim Lanka offers customers a wide range of cement ,
in addition to the development of customized blends for
special applications.
We manufacture and market the Holcim range of
cements comprising Holcim Sanstha Supiri, Holcim Extra,
Holcim Ready Flow and Ambuja Cement, of which all
are customised to meet the requirements emerging in
different applications.
This variety and diversity of products, as listed below,
conform to stringent international standards, complying
with manufacturing processes within our plants, all of
which are ISO 9001 certied.
Holcim Sanstha Supiri
A portland limestone cement manufactured in
compliance with Sri Lankan Standard SLS 1253:2008 and
British Standard CEM II/A-LL42.5N of BS EN 197-1:2011.
Attributes & Benets: Ideal for structural work in
construction as the properties make the concrete
extremely workable, making fresh concrete easy to
compact and nish, while reducing bleeding and
honeycombs. The long-term strength of concrete also
increases with the reduction of this honeycomb effect.
Recommended applications: In structural elements using
normal concrete such as foundations, columns, beams
and slabs where workability and 28 day strength are the
key parameters.
Holcim Ready Flow
An ordinary portland cement manufactured in
British Standard CEM I 42.5N of BS EN 197-1:2011.
Attributes and Benets: Helps the concrete achieve
required strength and durability by optimizing the
cement content in the concrete. It also offers a higher
workability by reducing the average cost of admixtures.
Recommended applications: Ready mix and structural
concrete that requires high early/late strength and
quicker setting time especially in infrastructure projects
requiring high early/late strength and durability.
Holcim Extra
The newest product in the Holcim Lanka portfolio,
this is a Portland Pozzolana Cement manufactured in
EN 197-2011 standards.
Attributes and benets: Especially designed for concrete
structures which require longer life and for concrete
exposed to severe conditions. It is suitable for concrete
placed in chemically aggressive environments where
sulphates, chlorides and acids are present.
Recommended Applications: For concrete structures
exposed to sea water (harbor, jetty, bridge, building
etc), efuent water projects (treatment plants, sewer
lines etc), in contact with water (water supply projects,
irrigation structures, canal system etc), sulphate rich soil
and acids (industrial installations).
Ambuja Cement
An ordinary portland cement manufactured in
British Standard CEM I 42.5N of BS EN 197-1:2011
Attributes and benets: Maintains high early strength,
allowing the precast contractor to demolding products
within a comparatively short period of time
Recommended applications: For pre-cast work where
high early strength and quick setting are the key
parameters.
Holcim Lanka Sustainability Review 2012 3
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Value Additions:
HLL's Technical Department is well equipped to
provide customer support in a range of competencies
and applications in construction, from residential
constructions to commercial buildings, roads, pre-cast
or masonry applications. Given that construction
collates a number of individual tasks, which are
generally performed by trade level individuals
or teams at site, close supervision and guidance
becomes imperative. Hence, technical advice and
guidance from inception can help in gaining optimum
performance and better end results. The Technical
Team even visits customer sites for better rst hand
experience of projects to enable imparting better
tactical and knowledgeable guidance. Testing of
concrete and related materials is conducted at
HLL's Innovation & Application Center, which is the
rst accredited laboratory for testing of concrete
applications.
Key Projects with Holcim Extra: Holcim Extra is the ideal partner to Sri Lanka's infrastructure development
initiatives currently underway. Given the value addition this product adds to structures exposed to aggressive
weather conditions or in those that need to control hydration heat, Holcim Extra is ideally suited to Sri Lanka's
inclement weather patterns adding the necessary durability and economic viability for the infrastructure around
the country.
1. Partnering Sanken Lanka to provide the podium concrete for the Onthreetwenty project, where the primary
concern was controlling the core temperature of the 2m thick slab, requiring 5,000 square meters of concrete.
The project, with support from the Holcim I&A Center, was successfully completed.
2. Application of Holcim Extra for the Colombo South Harbour Expansion Project in the construction of the
casions, comprising a 18mx18m block for the jetty wall. The harbour project is handled by China Harbour
Engineering Company.
3. China National Electronics and Import Corporation selected Holcim Extra, due to low heat properties an
durability, for the large foundation and structure of the Colombo Lotus Tower Project, billed to be the highest
tower in South Asia at 350 meters.
Location:
Colombo, Sri Lanka
Geographic Expanse:
The Holcim Group, with its presence in seventy countries
on all continents has gained an enviable reputation as a
worldwide leading supplier of cement and aggregates.
Holcim employs more than 60,000 people worldwide.
Holcim Lanka locally operates its manufacturing sites
at Palavi Puttalam and Galle. A packing plant is being
constructed at Trincomalee for better customer service
for the North and East areas. The Geocycle alternative
fuel pre-processing facility is in operation at Katunayake
EPZ. There is a warehouse channel operated by HLL at
Colombo, Kurunegala and Trincomalee.
Nature of the Ownership and Legal Form:
Major shareholding by Holdern B.V., Netherlands.
Limited Liability Company incorporated under the laws of
the Democratic Socialist Republic of Sri Lanka
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Hambantota Habour Project 2012
Mahinda Rajapakse International Cricket Stadium 2011
Southern Highway 2012
Dickowita Fisheries Habour 2012
Kandy Mahiyangana Road
Oil Tank Farm in Hambantota 2012
Upper Kotmale Hydro Power Plant 2012
Key Projects:
Markets served:
Markets served by geographic breakdown -
HLL's presence in Sri Lanka is segmented into ve main
regions.
Markets served by sectors -
HLL serves the two main sectors of Retail & B2B (Business
to Business) covering IIHB (Individual House Building),
Contractors, CPM - Concrete Product Manufacturing),
Infrastructure, ICI (Industrial Commercial Institution) and
Ready Mix requirements.
Region 1
Region 2B
Region 2A
Region 3
Region 4
Region 5
HLL
Retail
IHB
CPM
-Block Brick
Manufacturers
-Concrete
Works
Infra ICI CPM CRMX
B2B
Markets served by types of customers/beneciaries -
Retail
Customers
House Builders
Contractors
Government Builders
Inuencers
Engineers
Masons
Dealers
Technical Ofcers
Concrete Gang Leaders
Scale of Organisation:
Holcim (Lanka) Ltd is a leading producer of cement in Sri
Lanka. As a member of the Holcim Group, a Swiss-based
multinational with operations in more than 70 countries
worldwide, which is recognized for its long-term nancial
performance, environmental leadership, corporate
social responsibility and stewardship in sustainable
construction.
At HLL, we produce 1.6 Mn tons of cement annually in
different types of application based cement
Signicant changes in size, structure or ownership:
Establishment of Geocycle Pre-processing Platform
Expansion in cement grinding capacity in RCW which
is due for commissioning in early 2014
Commencement of construction of the cement
terminal at Trincomalee which will be in operation by
the end of 2013
Further improvements in clinker capacity and
cement grinding capacity at PCW
Improvements to the energy consumption involved
in the production process at PCW
Commencement of enhancements of co-processing
facilities to enable handling hazardous waste and
alternative raw materials

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Peoples Awards 2012 - 2013
Best Brand in Housing & Construction
National Green Award, CEA
Merit Award 2011
Gold Award 2012
CIMA Case Study Award 2011
1st Runner up
E-waste Management SL, CEA 2010
Appreciation Award
Awards:
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Key Data:
2009 2010 2011 2012
Net Sales (LKR'000) 12,294,936 14,559,300 16,851,748 20,127,089
Assets & Liabilities
Total Assets (Rs'000) 10,101,404 10,251,738 11,829,994 13,338,289
Total Liabilities (Rs'000) 4,381,708 3,002,756 4,848,108 4,233,462
Allocation of Total
Revenue - 2009
Gypsum
Purchases of other goods and services
Duties and other taxes
Clinker Funds for expansion/investment
Electricity
Fuels
Depreciation and Amortisation
Payments to employees
Rebates to Distributors
Finance cost for third party borrowings
Allocation of Total
Revenue - 2010
Gypsum
Electricity
Fuels
Allocation of Total
Revenue - 2011
Gypsum
Electricity
Fuels
Allocation of Total
Revenue - 2012
Gypsum
Electricity
Fuels
Reporting Parameters
Reporting Period:
This report covers Holcim (Lanka) Ltd's activities from 1st
of January 2009 to 31st December 2012 in relation to the
Companys pursuit of sustainable development targets.
Date of the most recent previous report:
1st January 2008 to 31st December 2008
Reporting cycle:
While there was a gap in the reporting cycle after 2008,
after this report, which covers a span of four years, HLL
will engage in sustainability reporting every two years.
Contact point
Chalaka Fernando
Environment and Systems Compliance Manager
Holcim (Lanka) Ltd.
413, R.A De Mel Mawatha, Colombo 3
Sri Lanka
Phone : +9411 780 07 15
Fax : +94 11 245 54 32
Email : chalaka.fernando@holcim.com
Boundary of reporting :
The overall operations of Holcim Lanka Limited is covered
in this report for the period stated above. All disclosures
in this report have been truthfully documented with
the intention of sharing our information with all our
stakeholders in a systematic and standardized format,
giving them a true and fair picture of our efforts.
Our intended target audience includes but is not
limited to our core stakeholder groups customers,
employees, valued business partners, shareholders and
the community and in the broader context, potential
investors, regulatory authorities, parliamentarians,
decision makers, academics, NGOs, multi-national
companies, advocacy groups, industry leaders, chambers
of commerce, social leaders, environmental bodies and
individuals who would be interested in Holcim Lanka for
varied reasons.
State any specic limitations on the scope or boundary of
the reporting:
None
Basis for reporting in joint venture, subsidiaries, leased
facilities, out sourced operations, and other entities that
can signicantly affect comparability from period and/or
between organizations:
N/A
Data measurement techniques and the bases of
calculation, including assumptions and techniques
underlying estimations applied to the compilation of the
indicators and other information:
All data measurement techniques and calculations are
worked on the processes and systems currently available
within the organisation and subjected to internal audit
verication. We have not departed or deviated materially,
or left out any relevant information in any way or form.
Explanation of the effect of any re-statements of
information provided in earlier reports, and reasons for
such re-statement:
None
Signicant changes from previous reporting periods in
the scope, boundary, or measurement methods applied
in the report:
None
GRI Index:
Aligned to the standards prevalent within the GRI Index,
we have adopted these as the base for our reporting
format. Each GRI indicator while being indicated
alongside each relevant section, is also specied
in the grid index at the end of this report with the
corresponding page.
Assurance:
This sustainable report has been initially assessed
and prepared to be read as a sequel to our last report
published in 2008, with data in comparative formats in
previous years added where necessary. The data and
calculations detailed in this report have been subjected
to the Company's internal audit process.
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Governance, Commitments & Engagement
Operating with integrity
As a value-oriented enterprise, Holcim Lanka recognizes
the signicance of effective corporate governance in
order to promote corporate fairness, transparency and
accountability to all stakeholders. We conform to the
highest standards when conducting our business by
complying to applicable laws and regulations. These are
embedded into the Holcim Lanka Policy Landscape as it
preserves the interests of all stakeholders and is therefore
a cornerstone of corporate governance.
The Holcim Code of Conduct establishes a common and
consistent framework across our global organization,
providing direction and clarication for the decisions
we make daily in our business conduct. Lofty business
ethics and personal integrity ensure our credibility and
reputation as a Group and as a corporate steward here
in Sri Lanka. Group companies like ours, are tasked with
ensuring that employees and managers are aware of
their responsibilities and that they meet the expected
standards.
We remain very clear about our expectations. Any
diversion or violation is not tolerated. Responsibility
for enforcement rests primarily with line managers
and where warranted, violations are investigated and
appropriate action taken. During 2011, employees
in all regions attended workshops on the rules of
fair competition to help us meet our responsibilities
under the Fair Competition Directive. In January 2012,
we implemented a new Anti-Bribery and Corruption
Directive (ABCD) as part of our Company's Code of
Conduct. All relevant employees have attended to the
training sessions conducted on the ABCD.
Through the adoption of ABCD, the Holcim Group
mandates each Company to adopt a whistle-blowing
system (WBS). Holcim Lanka too has adopted this
process, ensuring that all team members are well aware
of the WBS, the condentiality that is integral to the WBS
and the procedures entrenched. We also established
and implemented a comprehensive due diligence on
thirty parties, while a declaration of conict of interest
by employees has been established augmented with
relevant policy.
The Board of Directors of Holcim (Lanka) Ltd is
responsible for implementing effective governance
in order to discharge its duties towards stakeholders,
manage business risks and uphold the Companys
reputation.
Holcim (Lanka) Ltd has seperated the functions of
the Chairman of the Board of Directors and the CEO
a key element to ensure a balanced relationship
between management and control. The Organisational
Regulations, aligned with the Companys Articles of
Association, clearly sets out the organization structure
of the Board of Directors and the Executive Committee,
and governs the tasks and powers conferred on the
Companys corporate bodies (the Board of Directors, the
Chairman of the Board of Directors, the Deputy Chairman
of the Board of Directors, the Board Committees, the
Chief Executive Ofcer and the Executive Committee).
In addition, the Regulations prescribe the convocation,
execution and number of meetings to be held by the
Board of Directors and Executive Committee as well
as the requirements necessary for the passing of
resolutions. The Regulations are currently being updated
to be in line with the changes.
In addition, the Companys organizational structure and
procedures ensure the protection of the legitimate
interests of all stakeholders in an appropriate and
effective way. Measures have been implemented to
assist in complying with applicable laws, regulations and
Holcim Group standards, including accounting rules and
the principles of fair competition.
The Board comprises six directors and the CEO. The Board
reviews the annual accounts and nancial statements, as
well as the Companys environmental, health and safety
compliance. The Board appoints the external auditor
and monitors the internal audit function. The Company
convenes a Board Meeting every quarter and also an
Annual General Meeting. From 2009 to 2012, four regular
Board meetings and one Annual General Meeting have
been held each year.
The Executive Committee comprises the CEO and ve
members. The tasks of senior management are divided
by functions and managed by a Member of the Executive
Committee. Senior management adopts the Holcim
Groups Business Risk Management (BRM) System in
order to systematically identify signicant risks facing the
Company, evaluate such risks and implement appropriate
preventive measures. Strategic, operational, nancial
and external threats and opportunities are included in
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the risk analysis. The Executive Committee reports to the
Board of Directors, the key ndings of risk analysis and
the mitigating measures taken.
The Legal & Compliance and Internal Audit functions
are also part of the risk management process, providing
assurance to the corporate bodies that policies and
regulations are complied with. While the Legal &
Compliance function implements legal governance, legal
compliance and legal risk management initiatives, the
Internal Audit function being an independent review
and consulting function provides assurance to the
corporate bodies, ensuring that effective controls exist
to maintain process integrity and measures. It also
assures that accuracy and reliability is maintained in all
reporting systems and processes and that regulations are
complied with. Internal Audit identies risks for nancial,
operational and compliance reviews, pinpoints potential
areas for adding value and makes recommendations for
improvements.
Board Compensation:
The Board has the authority to approve a compensation
for loss of ofce to a Director or a former Director of the
Company aligned to Group Policy.
Conict of interest
The members of the Company's corporate body are
under obligation to abstain in the event of actual or
potential conicts of interest. Directors are required to
disclose any directorships outside the Holcim Group on
an annual basis to the Company. Directors and Executive
Management are obligated to promptly disclose to the
Company, signicant transactions, that they are entering
into or have entered into with the company, that may
have potential conict with the interests of the Company
at large.
In addition, The Company maintains a very stringent anti-
bribery and anti-corruption milieu in all areas of business
and pertaining to all ofcers of the Company. Aligned to
the Anti Bribery and Corruption Directive, the Company
has developed a policy on Conict of Interest -applicable
to all the employees. As per the policy, employees
must avoid situations where their personal interest
could conict with, or even appear to conict with, the
interests of Holcim.

All employees are requested to submit a Declaration
indicating their interests, upon recruitment, annually and
also as and when they occur.
Board member eligibility:
Board members are selected based on their suitability,
experience, qualications and background. The company
eschews discrimination on any grounds in selection of
Board members and employees including that of gender,
religion, culture, ethnicity or any other factor.
Board Performance
The performance of the Board, including that of the
Chairman and CEO is the responsibility of the Board. As
a representative of the members, each Board member
is responsible for membership accountability and their
interests. Board members as individual members
and the Board as a whole, does not cater to special
interest groups, but considers the best for the corporate
(membership) as a whole. Also, the Board evaluates
its responsibilities established under the Corporate
Governance Manual periodically.
Risk Management
As a part of the annual business planning process, risk
assessment is implemented through all departments
within Holcim Lanka. During this exercise, high
signicant and probable risks will be identied and risk
mitigation action plans developed. In addition, Holcim
assesses the global, regional and local macro economy,
the risks germane to the Companys business and
prevailing industry market conditions. Assessments are
consolidated and discussed between EXCO members.
From these assessments and discussions, EXCO members
determine the key opportunities for the Company, which
form the base of the strategic plan going forward.
Membership in Associations
Holcim Group is a co-founder of the World Business
Council for Sustainable Development's Cement
Sustainability Initiative which supports the UN Global
Compact. The UN sponsored Global Compact is a
voluntary international citizenship initiative under
the aegis of the Secretary General which calls for
commitment to universal principles in human rights,
labour standards and environmental sustainability.
Holcim Lanka also being a pert of this global alliances
and afliations through the Holcim Group.
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Vision & Strategy
At Holcim Lanka, sustainable development remains at
the core of our business fundamentals; it is ingrained
into our business delivery and promise and remains the
backbone of everything we do. Our vision is constructed
on providing foundations for our communities' future,
where they grow and thrive in a milieu of inclusive
ownership. Our stakeholders become a part of our
journey, a journey that is assuredly nurtured and
strengthened through this inclusivity and empowerment,
a result of this two way relationship we foster.
This Sustainability Review maps Holcim Lankas value
creation a charter where world class best practices,
standards, methodologies, ideas and solutions are
integrated into economic, social and environmental
impacts, the three elements of the triple bottom line.
Holcim Lanka draws from the group wide ambitious
sustainable development strategy, principles, values and
targets that would fuse the triple bottom line approach
into the way we do business and the impact our business
and our approach to macro issues would have on all our
stakeholder segments. This is the deep seated approach
that the Group permeates to its business entities,
which in turn work on a holistic charter of sustainable
development.
As a cement manufacturing business,
we have a high level of dependence on
the natural environment. We operate in
businesses that are cyclical, with many ups
and downs over the years, and most of our
investments have relatively long pay-back
periods. This requires us to take a long term
view when investing and it is this long
term view that is the sine qua non of truly
sustainable businesses.
We have a long heritage of taking good
care of our people, of nurturing our land, of
husbanding resources and supporting the
communities in which we operate.
We understand that sustainability is the
only future we have and our commitment to
sustainability is central to our long term business
strategy.
Vision: To be the leading and
preferred supplier of cement and
related building materials to build
foundations for Sri Lanka's future.
Mission: To be Sri Lanka's most
respected and attractive company
- creating value for all our
stakeholders.
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Holcim Lankas latest report on Sustainability arrives at
a pivotal moment. Rarely have the challenges and
opportunities of sustainable development been as
clear-cut as they are today. Yet the debate over our future
has never been so polarized. Clearly, its time for fresh
perspective.
The New Normal
Corporations are increasingly shifting from nancial
protability to value creation. And sustainable
development is increasingly becoming the only way
for a responsible company to keep the momentum
and organize itself to create value for itself and all
stakeholders.
Sustainable development the visionary concept that
advocates resources being produced and used in ways
that generate economic growth, create social benets
and minimize the impact on the environment has
guided decision-making at HLL for almost two decades
and is becoming part of the companys culture one that
we are proud to share with our customers and suppliers.
A lot has changed during that time, as we grew into Sri
Lankas largest and only integrated cement producing
company. But through it all, a sustainability vision served
us well, encouraging:
early and proactive moves on climate change and
renewable energy;
investment in technology to improve operational
reliability and environmental performance; and
rm commitments to stakeholder engagement,
community investment, and respecting human
rights wherever we operate.
We have experienced a number of changes in our
leadership towards the end of 2012 and beginning
of 2013, but I assure you today, that the Companys
commitment to business growth and sustainable
development remains resolute.
Strong Business Performance
Holcim Lankas top agenda priority remains Occupational
Health and Safety. I am convinced that safety is not a
question of luck but of choice. I am delighted to see that
Holcim Lankas efforts have been recognized with the
A message from
the CEO
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Holcim Asia and Global Awards for Occupational Health
&Safety for our Journey towards Zero fatalities on the
road campaign in 2012. This is a very encouraging
milestone.
The overall market in 2012 recorded an increase of 13%
over 2011 with government's focus on economic growth
and infrastructure development. In the meantime,
Holcim Lanka's sales volume improved by more than 6%
over 2011.
Our Vision for Growth
We remain convinced that businesses that address both
the direct concerns of citizens and the needs of the
environment will prosper over the long term, and it is
this thinking that lies at the heart of the HLL Sustainable
Development Plan and our compass vision of growing the
size of the business whilst reducing our environmental
footprint and increasing our positive social impact in the
countries we are operating in.
As the thinking becomes embedded in our business,
there is increasing evidence that it is accelerating our
growth in ways that contribute to positive change
in peoples lives. Expansion in our cement grinding
capacity in Galle which is due for commissioning in early
2014, commencement of construction of the cement
terminal at Trincomalee which will be in operation
by the end of 2013, further improvements in clinker
capacity and cement grinding capacity at Puttlam,
improvements to the energy consumption involved in
the production process at Puttlam and commencement
of enhancements of our Geocycle co-processing facilities
to enable handling hazardous waste and alternative
raw materials are just some of our ongoing activities
in this regard. These expansions and improvements to
our production facilities are expected to enable Holcim
Lanka to cater better to the post war economic growth Sri
Lanka is experiencing while ensuring sustainability and
environmentally friendlier operation.
Putting Sustainable Living At The Heart Of Our Brands
What makes our commitment unique is that it is across
the total value chain. We are not only managing our own
and upstream operations, but we are also determined
to be a strong and reliable partner in the communities
we are working in, by genuinely engaging with various
external stakeholders, local authorities, representatives
of various groups to better understand how we can best
help people to live more sustainably through the impact
of our products in their lives.
We have maintained the momentum towards our target
of creating empowering milieus for the communities
we interact with and has seen us invest strategically in
segments of society who need sustainable initiatives
to gain such empowerment. In 2012, we invested
USD 234,595 in community engagement activities,
most of which are continuing projects, beneting the
communities surrounding all our 4 plant locations,
covering health, education, livelihood development and
infrastructure development to name a few.
These initiatives are also unique opportunities to
engage all Holcim Lanka employees our many Supiri
Villages around the country are a good example of such
engagement ones that create pride to be a part of it.
Working with Partners
Partnerships are key to unlocking these solutions. So I
particularly want to thank the partners who are assisting
us to deliver our business model: NGOs who are helping
us to address real issues, suppliers who are bringing us
solutions for sustainable living, and our customers with
whom we share an ambition to reach consumers at scale.
This is why we are working with organizations and
initiatives such as NAITA,the Central Environment
Authority, IUCN Sri Lanka etc., for such public-private
partnerships.
Challenges Remain
Our competition is very active, and forces us to continue
to engage with our customers to better understand
their needs, to continue to develop new products, new
services, transfer know-how, and really create benets
for them.
Cost pressure will continue and that will require us to
have a fresh look at how we can permanently improve
and innovate the way we are doing business.
Our capability to respond to the market and innovate
along our value chain will continue to enhance our brand
image which is strong as proven by our consecutive
wins at the SLIM Niellsen Peoples Awards in 2012 and
13.
Looking Ahead
Despite the scale of the task, I believe we are on track to
become a sustainable growth company. But one thing
is sure this will not be possible without the dedication
and hard work of our colleagues and our many partners
around the world. We also thank our employees for living
up to our commitment to sustainable development. Our
success depends on their efforts and dedication.
At Holcim Lanka, weve always seen this report as more
than just a corporate document; our hope is that it can
also stimulate constructive dialogue on the challenges
and choices associated with sustainable development.
I believe that with a commitment to excellence and
innovation, together we can build the sustainable future
we all desire.
Philippe Richart
Chief Executive Ofcer
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Vision & Strategy
Sustainable Development Strategy
Sustainable development remains at the very heart
of Holcim Lanka's business strategy, integrating the
aspirations and goals of various stakeholders into the
way we do business and the impacts our actions would
have on them. We have always been a people-oriented
business, very cognizant that it is people who make us
successful.
The three pillar approach that we continuously build
upon vis a vis economy, society and environment, the
strong tenets of the triple bottom line, sits within the
heart of our business strategy. And into this, we bring
in people as it is people who are the base of our value
creation.
It is this people base encompassing a winning team
that is the most important and crucial foundation to
sustaining our business and therefore our sustainability.
Ours is a workforce that gives of its best, because
if they didn't, we wouldn't be the ag bearers and
market leaders in not only our industry, but also in
our environmental focus and social development
initiatives where making a difference in the lives of
Working Development Strategy
Goal
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Geographic
Diversification
Local
Management
Global
Standards
Creation of Value
People
Strategy
Mindsets
Base
Product
Focus
our communities and ensuring the continuation of our
planet is a conviction rather than a theory.
The Business Principles that drive Sustainability
Our business principles are driven to deliver value to
our core stakeholder groups founded on the precept of
mutual benet. This leads to identifying future risks and
opportunities while calculating the return on our social
and environmental investments.
For our customers, we will strive to deliver world class
products that are innovative and are value for money
For our people, we will create a knowledge enhancing
culture that empowers them to be dynamic, creative,
united and to engage in entrepreneurial excellence
aligned with career goals embedded in values and
ethics
For our valued business partners, we will permeate best
practices and global standards that would uplift the
entire industry
For our environment, we will ensure that our
manufacturing and production processes will
not knowingly harm people or resources and will
minimize the negative impacts our business will
have on human life and the environment at large
For our communities, we will harness meaningful social
relationships to ensure that a sustainable milieu is
created for mutual development
The values that drive business success
Strength, Performance and Passion, our corporate values,
holistically integrate the founding base upon which
we conduct our business, aiding us in delivering on
our promises to each of our stakeholders. We strive to
deliver this promise though our products, services and
our people, as it is they who translate the principles and
values that we have embedded into our ethos.
Strength being a solid partner, based on the integrity of our people,
and our global leadership and competence
Performance delivering on our promises to each other and to our
stakeholders, and providing the best solution for our
customers
Passion embodying dedication and commitment, and caring
about everything we do: our people, our customers, our
communities and the environment
Our Sustainable Development Promise
Recognising the importance of operating with
integrity and uncompromising standards of corporate
governance in conducting our business, we have always
demonstrated this commitment through responsible
leadership, transparent and accountable management
and building long term partnerships committed to
delivering on our promise.
Our pledge to our stakeholders is deeply embedded
into the triad of safety, environment and quality
principles, with an overarching commitment to corporate
governance and compliance.
Our primary responsibility in being recognized as a
corporate leader in sustainable development is in
delivering on our promises. We are also mindful that we
must walk the talk. Therefore, prudent management of
our sustainable management system is an imperative.
Embedding our commitments
The commitment of Holcim (Lanka) Ltds top
management to all workers drives our sustainable
development performance. Success behind sustainability
depends on every employee playing their part. We, as
a part of global Holcim network are, fully aligned with
the Holcim strategy house and all its pillars. We are
taking sustainable development to the next level at
Holcim, making it more tangible and relevant to everyone
and mobilizing the entire workforce to help tackle the
challenges through volunteering and other opportunities.
Our Sustainable Development Steering Committee
operates as a subcommittee chaired by CEO. Its
functioning as multi sectorial approach mainly: Central
OH&S committee, Environmental & System Compliance
department, Innovation & Application Center and CSR
function. Level two, more technical level committees are
functioning under each above core teams.
Inuencing our Value chain
The Sustainable Procurement Initiative infused by
Holcim Lanka on the diktat of a Group initiative in
2008 , has been a continuous thread in building on and
strengthening the management of our value chain.
Beginning with the very rudiments that form the core
of our Supplier Code of Conduct, our priority is to ensure
that our contractors comply with the national standards
and guidelines prevalent in the areas of OH&S, while
also inuencing them to integrate sustainable and
responsible best practices which form the work ethic at
Holcim Lanka.
The value chain is thus extended to our team, recognising
the role they play in Holcim's strategy, vision and forward
journey. It is vital that the relationship we espouse with
our employees reects our business strategy, policy
and vision. We must imbue a reputation of attracting
and retaining the best in the industry, ensuring that
our human resources policies, practices and strategies
are reected in the employment conditions and best
practices that are prevalent throughout the Group. We
must instil a pride in our employees, a pride that they
work for one of the best companies in Sri Lanka, which
is augmented by Holcim Lanka being a member of a
recognised global corporate steward.
An Integrated Approach to SD Management
Walking the talk remains at the helm of our SD goals,
given that we are a recognised corporate leader and
have as our primary responsibility, a need to deliver
on our promises. Prudently managing our Integrated
Management System therefore is crucial. All our
management systems are driven by the company Ex-
Co with monitoring procedures and KPIs set out and
approved for all sites and departments to adhere to. In
addition, we have developed and declared additional
Holcim Group policies and directives to localise and
meet continual improvement. This can be seen in our
Bio-diversity Management System, Water Management
System and even in our OH&S Management System,
envisioned and etched by the Group but driven further
through local adaptation by Holcim Lanka.
Determining Material Issues
At Group level, the Holcim Business Risk Management
process is cascaded to all Group companies. This
identies risks at both corporate and company level,
while adding exibility to the companies to add a broader
perspective of local risks and management of those risks.
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In a process begun in 2007, Holcim Lanka, following the
Group's lead, now conducts a sustainability development
materiality review annually. This is designed to
identify issues of importance to our business and our
stakeholders, assessing their impacts and/or risks to the
Company and to the Group as a whole. In addition, it
maps trends, seeks resolutions and inputs the necessary
improvements to be included for future action, to ensure
elimination or mitigation of risks and challenges. The
External Review Panel takes into account all stakeholder
views and expectations, which remains a vital truss in
providing solutions and identifying opportunities.
Our priorities
Based on this materiality review, our sustainable
development priorities were mapped to reect these
broad-based themes:
1. sustainable solutions and sustainable construction
2. energy and climate
3. biodiversity and water
4. our people
5. social commitment
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Standing L-R:
Rajesh Surana Vice President Finance,
Charith Wijendra Head of Logistics,
Prasad Piyadigama Vice President Human Resources
Seated L-R:
Asela Iddawela Vice President Sustainable Development & External Affairs,
Philippe Richart Chief Executive Ofcer,
Pascal Paijens Vice President Manufacturing,
Viraj Gunasekera Vice President Sales & Marketing
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Standing L-R:
Louzanne Perera - Communications Manager, Prasad Piyadigama - Vice President (Human Resources), Dharshani
Lahandapura - CSR & External Affairs Manager, Jayantha Rathnayake - Plant Manager (Puttalam Cement Works),
Asela Iddawela - Vice President (Sustainable Development & External Affairs), Charith Wijendra - Head of Logistics,
Randeewa Malalasooriya - General Manager (Geocycle), Gayani Perera - Marketing Manager. Janaka Sampath - Head of
Finance, Philippe Richart - Chief Executive Ofcer
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Seated L-R:
Chalaka Fernando - Environment & System Compliance Manager, Nayana Abeysinghe - Head of Legal & Compliance,
Pascal Paijens - Vice President (Manufacturing), Viraj Gunasekara - Vice President (Marketing & Sales),
Venura Fernando - Manager Organizational Development & Engagement, Rajesh Surana - Vice President (Finance &
Controlling), Joseph Cyril - Manager Galle Operations
With the earth's ecosystems looking considerably critical
due to severe damage to its surface and resources,
augmented by human activity causing irreversible
damage to its function, it can be connoted that buildings
and construction works have been responsible for the
largest single share in global resource use and pollution
emission. As a result, there have been numerous efforts
at all levels, from Heads of State to concerned civil society
movements, who are striving to infuse a more global
approach of sustainable solutions into the construction
sector. Sustainable construction aims at reducing the
environmental impact of a building over its lifetime,
while optimizing the economic viability and safety of its
occupants and infusing best practices that emphasize
affordability, quality and efciency. At each stage of
the life cycle of a building, while these features are
enhanced, there is a palpable decrease in the negative
environmental impacts, which leads to sound business
sense due to increasing economic sustainability.
A 'green' building will therefore use sustainable
construction solutions which will also have astute
resource management practices in place for water, raw
material, energy and even land usage. It is envisaged
that the construction industry is currently growing at
double digits and involves a workforce of about 8% in
Sri Lanka. With this declaration, it is indeed timely that
construction whether new or reconstruction must be
consciously sustainable. Sustainable construction is
governed by three key elements:
Proper structural and architectural design to maximise
investor return, that would also implement apt
standards and support the use of environmentally
friendly materials
Selection of right material, namely adapted/
application based material to optimize usage, promote
local raw materials with less embodied energy and
develop joint supervision and quality observations
together with contractors and suppliers
Professional workmanship involving the investment
of resources (knowledge and time) in helping educate
personnel involved in the construction industry, from
labourers to contractors to consultants, fueling the
transfer of the latest learning and knowledge to
promote sustainable construction.
An ICTAD Award winner in 2011 and a Leeds Certied
project in 2010, the Ulagalla Walawwa Resort Project is
a prime example in sustainable solutions. Fullling the
criteria of local manufacture and delivery, less emissions,
minimum raw material consumption and energy, this
heritage mansion in Dambulla was restored to its former
majesty, incorporating the above 'green' kinetics. Holcim
pioneered the mix design for this project in order to
meet the stringent criteria, which when completed, is
considered a role model in sustainable construction
solutions within the industry.
Sustainable Solutions & Construction
While Holcim (Lanka) was
immensely supportive in providing
quality cement aligned to our
stringent timelines enabling us
to complete the project on time,
the company also shared their
global experiences in sustainable
construction enriching the quality
of the end product.
Harsha De Saram
Senior Vice Chairman
International Construction Consortium
(Pvt) Ltd
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Ulagalla Walawwa Resort Project
Providing Sustainable Solutions
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Maintaining the rural environs in this 58 acre expanse
wherein 25 luxury chalets were constructed posed
a challenge; preserving the natural environs, while
construction was going on. A 30 meter fresh water
swimming pool was also added by International
Construction Consortium, the spearheads of the design
and construction.
The eco-concept was streamlined from design stage until
completion. Floors, walls and ceilings used Duraboard,
which is produced using agricultural waste from paddy
straw bre and possess excellent acoustics and thermal
properties, prompting energy efciency. In producing the
Duraboard, straw is subjected to an extrusion process
forming a solid panel core. A natural polymer is induced
to the heated and compressed straw bre residual which
forms a solid core into which water based PVA glue is
used to capture the nished core with a high strength
recycled craft paper liner. No water or gas is used in
the process and the end product is completely free of
chemical additives and binding agents. Duraboard also
has a high demount ability, can be reused and recycled.
The project used terracotta and teak timber as well, the
latter being recycled timber from old buildings. Teak, as
is known has a renewable cycle of twenty years. Paddy
straw, which would otherwise be considered a waste
product of agriculture, was also used for the roong,
adding to the aesthetics of the chalets. The project
completed in fourteen months had another plus factor in
that all materials used were locally sourced.
Aligned to the 'Go Green' concept, 50% of the energy is
obtained from solar, produced using the largest solar
farm in the country, with a capacity of 125 KVA, located
within the premises. Not one tree was felled and in
fact, 1,000 root-balled trees were transplanted into the
property to add to the green cover.
Monographing Green Construction with MAS Intimates
There is an urgent need for Sri Lanka to promote and
encourage sustainable construction practices and with
consumers globally demanding green practices being
imbued into everything they purchase, there has been
a welcome evolution to manufacturing plants going
green. One such is the MAS Intimates Thurulie apparel
manufacturing plant, which pioneered 'green building'
practices in Sri Lanka. Keen on communicating the
message to others on emulating similar practices,
Holcim Lanka partnered MAS Intimates Thurulie in
publishing a monograph of the factory's balanced
social, environmental and economic performance, while
coupling it with delivering a functional yet sensitive
response within its unique locale. The plant is an
example that can be emulated worldwide, being a
visionary departure from conventional factory design and
in setting new standards in ethics and environmental
stewardship in manufacturing. The factory claims to
be the world's rst apparel manufacturing plant that is
powered solely by renewable carbon neutral sources.
The monograph was published and edited with
support from the Holcim Foundation for Sustainable
Construction. It details MAS Intimates Thurulie's
meeting of the ve internationally applied target issues
for sustainable construction, namely the elements of
economic, environmental and social factors pertaining
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to the triple bottom line, in addition to architectural
quality and potential to apply these innovations to other
locations.
Green Bank
Holcim Lanka's pioneering waste management
arm Geocycle took its message of effective waste
management solutions to yet another level by launching
the 'Green Bank'. The concept enables the disposal
of household and ofce waste and has been initially
introduced among members of the Holcim team and
their families. The Green Bank accepts deposits of paper,
cardboard, plastic bottles, polythene and e-waste at two
collection points manned by employee volunteers who
work on a roster, twice a week. The collected waste, once
weighed is rewarded with points per kilogram for the
depositor with 5 points for paper waste, 3 for polythene
and 2 for other waste. The points thus earned are
maintained in an electronic pass book and accumulated
points can be redeemed for rewards which include eco-
friendly products including those produced from recycled
material. As an additional bonus, the department
or unit with the highest monthly points gains a
gift. The collected waste is sorted for recycling and
environmentally responsible disposal with the generated
income utilised to fund the rewards scheme. The Green
Bank also unites employees and encourages volunteers
under the banner of eco-friendly practices and adds
rewards, which are sourced from rural disadvantaged
communities engaged in cottage industries producing
recycled products as a further attraction to encourage
prudent waste management practices.
With more than 50% of the team within Holcim Colombo
Ofce now members of the Green Bank and will soon
see the Green Bank being extended to the Puttalam
and Ruhuna Plants. In addition, Geocycle has already
launched the Green Bank at the Swiss Development
Council with plans to extend the initiative to other non-
prot organisations, as well as schools.
At Holcim Lanka, innovation is inherent in the way we
do business. We are a corporate steward in Sri Lanka
and it is not a responsibility we take lightly. We also
know that we set the tone and walk the path we would
like other corporates and industries to follow. It is this
that spurs us to continue developing new products and
services, adding value to our stakeholder relationships
through innovation, led by state of the art technology
and an expert knowledge base. We are constantly
adding newer and unique features into our product
portfolio, responsible products that imbue the needs to
minimise emission, be environmentally friendly and spur
empowerment among segments of society.
1. Holcim Sanstha Supiri, a Portland limestone cement
developed by Holcim Lanka for the Sri Lankan
cement market, uses signicantly less clinker in the
nal product. This reduction in the clinker factor
minimises CO2 emission, thereby helping Holcim
Lanka to reduce its carbon footprint.
2. Holcim Extra is a y-ash blended cement designed
for an aggressive environment. Fly ash is a by-
product of the thermal power plant, which is mixed
into the clinker. This innovative usage of y-ash
has multiple benets including astute waste
management resulting in good environmentally
friendly practices. In addition, given the strength of
the nal cement product using this y-ash, the end
product reduces the heat hydration of the concrete,
minimising the number of cracks and ensuring a
longer lifespan of the concrete structure.
3. The Holcim Concrete Society, a pioneering initiative
in Sri Lanka, forms close relationships among
masons from all parts of Sri Lanka. The society is a
far reaching avenue in permeating the message of
sustainable construction practices and solutions,
which currently has 35 such societies with a
membership of over 1,800 head masons.
4. Holcim created a web-based database,www.
masonsl.lk collating the contact key information of
all masons who are members of the Masons' Holcim
Concrete Society. The database is helpful in locating
masons in particular districts and enabling them
Innovation for Value Creation
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to be reserved for upcoming contract construction
projects. This database has been found useful by
contractors, mini-contractors and even individual
house builders, while being a helpful tool for masons
around the country, to gain more contracts and
therefore sustainable employment generation as
well.
5. A programme has been initiated to upgrade and
develop suppliers' services and administration
systems through a validation system.
Key Data
Cement types produced by HLL from 2009 - 2012
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2009 2010 2011 2012
OPC PLC PEDEREDU FLYASH
Knowledge Hub for Concrete and Aggregates: Holcim
Innovation and Application Center
Recording a remarkable growth of 17.3 per cent, the
Construction Industry of Sri Lanka was ranked the second
highest growth sector according to the Central Bank of
Sri Lanka due to the accelerated development observed
all around the country in 2012. The infrastructure
development, large scale projects, building of roads and
bridges and general construction continues unabated,
but the lack of research and development within the
construction industry is a yawning gap, which must be
addressed in this milieu of accelerated development.
Realising this urgent need, Holcim Lanka established
Holcim Innovation and Application Center (HIAC)
in Orugodawatte, Dematagoda, leveraging on its
international synergies and is the only institution in Sri
Lanka with a laboratory accreditation conferred by the Sri
Lanka Accreditation Board (SLAB).
Using international experience, knowledge and expertise,
Holcim Lankas vision is to make HIAC Sri Lankas leading
institution for concrete innovation and application.
Equipped with cutting edge technology, HIAC offers a
range of value-added services to major scale infrastructure
projects and ready mix customers, whilst adopting
customer service best practices. The qualied team
comprises professional engineers, concrete quality
assurance professionals and technicians. HIAC will provide
technical knowledge on cement, concrete and construction
related activities to customers, while also enabling
them to gain rst hand information on solutions being
introduced to the concrete industry, including mix design
solutions and product solutions. The laboratory facility
provides timely and accurate information augmented
with the accredited testing facility and testing knowledge
prevalent within the team.

Effective quality control procedures are recommended by
HIAC, which will also train customer employees to adopt
these quality control best practices. With the accreditation
of ISO 19025 quality standard HIAC is committed to
deliver its expertise knowledge and experiences to the
construction industry for a sustainable business growth.
HIAC will always ensure the output of a quality product
as these are tested against international standards,
while assisting stakeholders to minimizing failures and
quality complaints for a sustainable growth of their
respective business. Operating in a green environment.
HIAC encourages stakeholders to emulate green practices
and provides guidance and recommendations, including
solutions on dust emissions, water management, fuel, oil
and chemical management and waste management
Quality Assurance Schemes
Quality control schemes are also implemented. Innovative
mix designs will be introduced while existing mixes will be
optimised.
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Evaluation of Performance of Concrete Plants
The HIAC will conduct capacity assessments and will
provide recommendations on performance improvements.
Guidelines will also be provided on the maintenance and
proper functioning of a plant to maximize the efciency.
Installing New Batching Plants
HIAC will extend consultation and advisory services in
the installation of new batching plants, which includes
the selection of land for plant setting, environmental
assessments and educating stakeholders on the
installation.
Logistics Solutions
Innovative logistics solutions can be obtained from
HIAC, as it will conduct assessments on truck eets
and provide guidelines on proper maintenance and the
optimal usage of truck eets and pump cars. Operating
in a green environment, HIAC encourages stakeholders
to emulate green practices and provides guidance and
recommendations here too, including solutions on dust
emissions, water management, fuel, oil and chemical
management and concrete plant waste management.
Being accessible to all our value chain stakeholders
Call Center Launched
While the culture of innovation continues to be fostered
unabated, it is also necessary that Holcim remains in
touch with its stakeholders in the value chain, in order to
gain feedback, strengthen relationships and be aware of
customers and service providers' aspirations. This also
called for enhancing of our customer service and the
launch of our Call Center in May 2010, which proved to be
a vital conduit in nurturing those relationships.
Covering six main areas in the B2B operations which
includes forecasting, taking and facilitating orders, credit
monitoring, reporting on deliveries, accuracy and daily
functions, monitoring and prioritizing orders, the Call
Center remains in contact with respective customers
continually to ensure that complete customer service is
extended.
Customer Satisfaction Survey
Aligned to ISO 9001 requirements, a questionnaire on the
parameters of Product & Quality, Commercial Operation,
Delivery Operation & Services, Support & Services and
General was sent to our customers. The survey ndings
would focus on customer priorities, the Company's
performance in relation to these priorities, imperatives
"With the construction industry
booming, ensuring a sustainable
built environment is our
responsibility. The establishment
of the Concrete Innovation &
Application Center by Holcim Lanka
strengthens the industry and
industry professionals appreciate
the role it plays in maintaining
standards, training and research."
Professor Ranjith Dissanayake
Professor of Civil Engineering,
University of peradeniya
Chairman, Board of Education and Training,
Green Building Council of
Sri Lanka
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for improvement, customer perception of the company's
performance, customer loyalty and complaint solution
mechanisms. We approached B2B customers with the
survey conducted primarily through personal visits,
telephone interviews, mail and informal discussions.
The target was to approach ten customers in six months
starting in February 2011.
We visited 9 B2B customers and two retail customers
within that time.
Promoting Sustainable
Construction
Skills development to enhance quality in valued business
partners
HIAC conducts comprehensive training programmes to
enhance, develop and prompt the optimisation of skills
among stakeholder entity employees. The programmes
include training of RXM Truck Drivers, laboratory techni-
cians and laboratory managers encouraging them to
adapt to the best practices being introduced and have an
unrelenting focus on quality.
RXM Truck drivers are educated on the fundamentals of
concrete technology including the factors that affect the
strength of concrete, bleeding, workability and cohesion
of concrete, basic knowledge of the slump and the cube
tests. Overcoming delays, contamination and spillages
during transport are also addressed.
The Laboratory Technician training recommended for
supervisors and senior technicians in the construction
industry will be on concrete and its applications, concrete
mixes and concrete nishes.
Training for Laboratory Managers will involve testing
methods of BSEN, ASTM, DIN which are frequently used
in the most performed tests on concrete and enhanced
with interactive discussions, practical sessions and
laboratory demonstrations.
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Energy & Climate
Climate change remains probably at the highest priority
in both global and local environmental contexts as it is
inextricably intertwined with other global challenges
including poverty, health and sanitation, productivity
and overall economic growth. It causes unpredictable
shifts to eco-systems, marketplaces and stakeholder
needs, creating strategic new risks and opportunities for
business. While access to energy remains fundamental
in achieving development goals, there is an innate need
to initiate development objectives that would use clean,
affordable and sustainable energy, while drastically
reducing the daily levels of energy being used.
At Holcim Lanka, we look at sustainable development
as one that is tied to climate change and hence, make
it our responsibility to reduce our carbon footprint as
much as possible. We are constantly seeking avenues
of alternative energy, trying to move away from the
consumption of fossil fuels, which we are well aware,
takes its toll on the environment. We are also very much
aware that climate change is probably the greatest
development challenge the world faces, but we also
consider it an opportunity, for corporate stewards like
us, working in a developing country, to initiate best
practices in energy management and decrease fossil
fuel dependency, to become low-carbon sustainable
spearheads.
CO2 Efciency
Our business involves the manufacture of clinker, which
is the key components of cement. The cement industry
has always been an industry renowned for high carbon
emissions, due to over 95% of the CO2 emissions
emanating from manufacturing clinker. About 60%
of these emissions are from the limestone used in the
manufacture of clinker and about 40% are from the
burning of fossil fuels. Unfortunately, while R&D has
been extensive in trying to reduce energy consumption
in the production of clinker, this area continued to be
hampered by limited progress and available technology
being woefully inadequate.
However, Holcim Lanka has worked on multi-pronged
approaches that would make a difference. This included
reducing the usage of clinker in each ton of cement
which would permeate to signicantly lowering the
carbon intensity prevalent in the cement. Holcim Lanka
also initiated the usage of alternative greener energy
sources which are renewable to heat our kilns, which
naturally resulted in a considerable reduction in the
emissions.
R&D, an integral facet in our continuous attempt
to reduce our carbon footprint, as we seek to infuse
best practices and good business sense into our daily
operations. This includes concentrating heavily on
establishing and implementing initiatives to limit
increasing energy costs and improve our energy
security, especially in resource-constrained countries
like ours. Our initiatives of using alternative energy
source, particularly from waste derived fuels, the goals
of reducing our emissions and limiting or reducing the
usage of fossil fuels are being met. From an economic
perspective, we also know that this is a viable business
opportunity that can provide a tangible revenue stream
for the company. We can share these best practices and
urge others to emulate the total waste management
solutions we are implementing.
Key data
Thermal substitution rate by
alternative fuels
Cement types produced by HLL from 2009 - 2012
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2008 2009 2010 2011 2012
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Alternative fuels for 2012
Rice Husk Saw Dust
Waste oil FMCG
Pharmaceutical
Specific CO2 Emissions
560
580
600
620
640
660
680
700
720
740
2009
[
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m

p
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2010 2011 2012
Specific gross CO2
Specific net CO2
Absolute CO2 Emissions
500,000
520,000
540,000
560,000
580,000
600,000
2009
[
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2010 2011 2012
Absolute ngross CO2
Absolute net CO2
Beyond 1050 Project
With the commitment we have continuously displayed
in reducing our carbon footprint, our focused on Project
Management Approach (PMA) released a number of
tools that would add the impetus and value required
in ensuring we meet the goals set out. One of these is
the Beyond 1050 project, which collated in ve phases,
aiming at reducing the consumption of electrical
energy and thermal energy as well as increasing clinker
production on set targets.
Launched in January 2011 and headed by a dedicated
Project Manager, the project was fully supported by a
competent project team. The project team comprised
all competencies ranging from OH&S, operational,
maintenance, process, quality, procurement, nance,
administration, HR and even Eve Center students.
Fifth phase of PMA added the element of sustainable
learning into the project. Once all targets were met
according to timelines and guidelines, fth phase of PMA
mooted the evaluation and a transfer of knowledge,
maintaining a continuous learning culture within the
organization.
The targets set out:
To reduce the electrical energy consumption by
1.5 kWh/t cli
To reduce the thermal energy consumption by
25 MJ/t cli
To increase the clinker production from 1,000 tpd
(BDP) to 1,050 tpd (BDP)
Results:
1. Zero LTI, MTI, rst aid cases (but 7 near misses and
22 behavioral based safety violations)
2. One medium level environmental violation
3. Electrical energy consumption reduced by
6.0 kWh/t cli
4. Thermal energy consumption reduced by
200 MJ/t cli
5. Production increased up to 1,100 tpd (BDP)
6. Reduction of approximately 4,500 tons in CO2
emissions
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Project Beyond 1050 Project Cost LKR 257.6Mn Project Duration
Start : 1ts Jan 2011
Finish : 31st Apr 2012
Project Manager Anil Kumara Project Client V. Kannangara Project Owner Pascal Paijens
"The project contributed to reduce
the specic CO2 footprint largely by
reducing energy consumption"
Jayantha Rathnayake
Plant Manager,
PCW
customers in Srilanka, ranging from large multinational
organisations and large scale local industries to medium
scales businesses. Partnering with Geocycle has many
benets to an organisation not only in terms of waste
disposal but also to attract new markets. The trend is
that more and more people are looking for products
which have come from a responsible manufacturing
process which one may also call a Greener Product.
The following graph indicates that more and more
industries have entered in to responsible disposal of
their hazardous industrial and agricultural waste and in
return depicts the extra volumes which Geocycle has co-
processed. Since 2003, Geocycle has disposed in excess of
300,000 MT of industrial waste.
Geocycle processes comply with globally adopted
standards for waste management and regulatory
technical standards and is practised extensively by the
USA, Japan and the EU for over thirty years. The World
Health Organisation, GTZ, Basel Convention and the
Stockholm Convention among a host of international
organisations recognise the process, while in Sri Lanka,
the Ministry of Environmental & Natural Resources, the
Central Environmental Authority and the North Western
Provincial Environmental Authority wholeheartedly
encourage it.
Beyond Compliance
Geocycle: Partnering for Sustainability
Yearly Co-processed volumes
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
62,641
297
7,480
6,096
21,567
28,289
26,650
41,690
39,696
55,564
With waste being an increasing concern and an
accelerent in the entire purview of global warming, the
window of opportunity to reverse the damages being
caused is quickly diminishing. In Sri Lanka, the problems
are exacerbated due to lack of enforcement, minimum
technology and increasing industrial waste adding to the
municipal solid waste quantum and hence health, safety
and environmental issues can become quite herculean to
respond and nd solutions to.
At present Geocycle provides professional waste
management solutions for over three hundred
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With an unrelenting core focus on manufacturing
premium quality cement, Geocycle extends this focus
into quality assurance in all its processes as well via the
state of the art facility at an investment of LKR 200 Mn
housing some of the world's most advanced technology
and with premium emphasis on the health and safety of
all stakeholders and the environment. It is also pertinent
to note that modications and various improvements
including skills training is being continually effected and
an investment of LKR 530 Mn was invested from 2003 to
2011 in this area, while a further LKR 160 Mn is planned
for further modications to systems and processes in
2013.
The Geocycle laboratory is the only such facility in Sri
Lanka accredited with ISO 17025 and works closely with
all government authorities to ensure that all waste is
managed and disposed in full compliance of the National
Environmental Protection Act. In contributing towards
industry standards, Geocycle which certies Integrated
Management Standards comprising ISO 9001, ISO 14001
and OHSAS 18001 and is fully compliant to procedures
applicable for the collection, transport, storage, pre-
processing and co-processing of scheduled wastes, has
contributed signicantly in the development of co-
processing guidelines for Sri Lanka. In addition, it has
also been very proactive in contributing signicantly to
formulating and developing the National Guidelines for
hazardous waste disposal in Sri Lanka.
Being a spearhead in responsible and sustainable
waste management, Geocycle has spurred the growth
of various industries, while also infusing a milieu of
not having environmental liabilities, facing pressure
from authorities, pressure groups and communities.
Geocycle has the capability and know - how to dispose
industrial wastes such as industrial sludge, expired
pharmaceuticals, paint, lacquer, rubber waste, polythene
and plastic.
The principles of Geocyle are being taken to the
younger generation as well with the formulation of
Geo Kids' Clubs and community clubs, in which waste
management hierarchy and the 5R concept are being
permeated. Industries too are being drawn into
awareness initiatives with the publication of the journal
Geo Watch, while Geocycle is also ensuring that waste
management becomes recognised as a profession with
training and development initiatives being extended
not only within the core team, but also for third party
workers. The Green Bank initiative which encourages
our team to be responsible in waste collection, recycling
and disposal, is another initiative introduced by Geocycle
which we intend to extend to customers soon.
"For all of us at Colombo Dockyard,
managing our business is not merely
managing the "top" and "bottom"
lines, but also looking holistically
and sustainabally to minimize
and mitigate the impact to our
environment. Geocycle is our trusted
partner in achieving this goal."
Mangala P.B. Yapa
Managing Director/ CEO
Colombo Dockyard PLC
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"Environmentally responsible
waste management solutions
of Geocycle including brand
protection, provides a peace
of mind to Unilever Sri Lanka.
The effective management of
non-recyclable waste helps us
in the journey of halving the
environmental impact in line with
Unilever Sustainable Living Plan."
Gayani De Alwis
Director Customer Service
Unilever, Sri Lanka
Geo Responsibility Awards 2012
Geocycle being the professional waste management
solutions provider, had a very close eye on these top
environmental performers, since most of them were
already Geocycle customers. Stepping into Geocycle
marketing platform has been a good indication that
industries have serious concerns to be free of future
environmental liabilities of waste they generate. This is a
crucial move in the context of environmental responsible
waste disposal which is yet to be developed due to free
dumping and irresponsible waste disposal.
By the year 2011, Geocycle were expanded to many
geographical locations in Sri Lanka, providing professional
waste management solutions. Yet there were no means
of recognizing their volunteer effort on responsible
waste management which also came at a cost. Thus
their commitment on environment had been invaluable
and difcult to concise. And with this in mind, Geocycle
initiated Geo Responsibility Awards for the rst time in
Sri Lanka.
Evidence-Based evaluation
The following key Government and non-governmental
institutions showed considerable interest in encouraging
Geocycle in its efforts of forming and shaping GRA and
participated voluntary in designing the award scheme.
Ministry of Environment,
Ministry of Industries and Commerce
Central Environmental Authority
Board of Investment of Sri Lanka,
University of Moratuwa
National Cleaner Production
United Nations Development Programme
Industrial Technology Institute
Professionals representing aforementioned institutions
formed Independent Selection Committee and drove the
entire evaluation and selection process starting from
development of selection criteria, setting questionnaires,
conducting site inspections and nally selecting the very
best for awards. All awards and certicates were issued
in collaboration with the endorsement of the Ministry of
Environment Sri Lanka.
Geo Responsibility Awards has been a real success and
had been an annual event until 2012. From 2012 GRA
will be held biannually given that industries require time
to implement and practice recommendations by the
independent selection committee.
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Innovating cement bag manufacture
One of the most focused areas in our product related
waste management initiatives are cost management
initiatives and increase the quality.. One of the primary
focus areas has always been the construction of
cement bags which remains a product that is costly,
intense in human resources and uses considerable kraft
paper. Over the years the 50kg bag has seen numerous
transformations, beginning from the original porous 6 ply
sewn bag produced from low quality 70gsm standards
sack kraft paper in the 1960s, to 3 ply 90 gsm stepped
end pasted bag. Further innovations, brought in the 2 ply
90 gsm bag, which was later reduced to 85 gsm and most
recently the porous 2 ply 80gsm bag.
While the gsm of the paper is not indicative of the
strength despite the common perception, it is the tensile
and stretch that determine the strength and Tensile
Energy Absorption (TEA) of the paper. It is this that
Holcim has been working on and research determined a
total TEA > 500 -550 J/m2 is sufcient for a 50 kg bag of
"It is not only peace of mind by
getting industrial waste management
services from Geocycle, also
appreciating the good things that we
for sustainability."
Warna Fernando
Assistant General Manager,
Quality Assurance and Development
Maliban
cement. The reduction of the gsm resulted an increase
in yield from manufacturing 7,000 pages using 90gsm
paper to 7800 bags from 80 gsm per metric tonne,
resulting in a 5.4% benet. Bag performance remains at
optimum levels.
The optimisation of the usage of paper, not only has a
direct cost benet in the expenditure incurred in the
manufacture of the bags, but it has indirectly resulted
in more emphasis on manufacturing bags that are more
environmentally friendly due to the reduced usage of
paper, without compromising on quality. The reduction
of paper bag consumption has had a huge impact on the
felling of trees used for kraft paper manufacturing.
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Conserving Biodiversity
The decade we live in right now, 2011 to 2020 has been
designated as the United Nations Decade on Biodiversity
and for all good reason. Since life began on earth, the
extinction of species has increased unabated, more so
in recent times, when unbridled development also gave
rise to the depletion and in some cases the extinction
of some species that share the earth with humans.
Biodiversity is a measure of the health of our ecosystems
and is reliant on climate; climate which is currently
showing signs of strain, where natural disasters have
increased, believed to be caused by human actions. It
must be remembered that the way we humans live and
behave on this planet, determines the survival of other
beings on earth.
Being in the cement industry, our actions do take its
toll on the environment. But it is a fact that we have
recognised and have worked tirelessly to mitigate. It is
our responsibility to manage the impacts our actions
have on the environment. Inuence on our green
footprint because of our quarrying operations having a
direct impact on these, our decision to extend our focus
to biodiversity and water is because we feel that our
corporate stewardship must extend beyond horizons.
It is this that prompted us to partner the International
Union for Conservation of Nature (IUCN) so we can draw
on the knowledge of their expertise and nd practical
solutions for us to use. IUCN is the worlds largest
conservation network collating 83 states. The drive to
preserve and conserve biodiversity and water therefore
has a focused top-down approach, supported at policy
level with a Holcim Group Biodiversity Directive issued in
2012, which has been adopted by Holcim Lanka Limited
unequivocally as well.
The 2007 partnership mooted with IUCN for the better
management of biodiversity saw a range of programmes
being initiated, all of which have had tangible positive
results. All of the programs what we implemented are
beyond compliance status/category, which distinguish
the company moral and commitments towards
biodiversity protections.
Quarry Rehabilitation Programme
Holcim Lanka began rehabilitation operations in 2002
at our only limestone quarry in Aruwakkalu as a part of
our commitment to the Cement Sustainability Initiative
(CSI). This locality was made into a monoculture of Neem
(Azadirachta indica) in the rst phase of rehabilitation,
while teak was introduced later. The cultivation of Neem
continued as a plantation site. While adequate effort was
made to ensure the continuation of the plantation, the
missing factor was a systematic monitoring that would
identify further development. Consequently results were
not satisfactory, growth rates and natural succession
rate was very low and the end objective of enhancing the
biodiversity was not met.
In 2005, Holcim Lanka adopted the Quarry Rehabilitation
Guidelines developed by the Holcim Group, following
monitoring, reporting and stakeholder engagement
practices. It must be noted that Holcim Lankas
concession for limestone mining measures 5,100 acres
south of and bordering Wilpattu National park and
east of Portugal bay. About 20% is actually mined and
mining progress is reported at 4 to 5 ha per year. Typical
limestone layers are found at a depth of about 5 to 20
meters and is deemed at being about 12 meters thick.
When in 2007, Holcim Lanka joined hands with IUCN
to rehabilitate the limestone quarry based on the
Monitoring Protocol which had been formulated, the
rehabilitation process saw a rejuvenation of life. The
Monitoring Protocol details rehabilitation progress and
includes measuring the change of the species diversity,
habitat, structure and ecological functions within the
rehabilitating areas using sound scientic methods that
can replicate annually. We believe that this initiative is a
responsible example of returning the resources we use in
our business, back to the environment.
In a span of four years, approximately 34 hectares have
been reforested, maintained and managed, with about
32 native plants, including some indigenous growing
at the rehabilitated site. Control of cattle grazing,
soil erosion and retention of storm water within the
rehabilitation areas by landscaping proposed in the plan
is now taking root. On a proposal made by the Provincial
Environmental Authority of the North Western Province,
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Holcim Lanka also mooted a plan to enrich the soil, which
involved the 2m thick layer of top soil of the overburden
being stored separately and later layered atop the
landscaped soil before planting the recommended
species.

In 2010, the invasive species Lantana camera and
Xanthium strumarium threatened these rehabilitated
areas, prompting the launch of the Invasive Removal
Program (IRP) to mitigate the impact. Further abandoned
quarry pits, some nearly forty years old required human
intervention to trigger the natural rehabilitation process,
which saw a careful selection of plant species added to
the quarry site.
The rehabilitation, which involved 58 hectares has seen
a dramatic transformation, with fruit bearing plants
already showing results, leaf litter layer developing on
the ground, ground hunters such as lizards in abundance
and birds nesting in the ora. This collaborative
effort brought in multiple stakeholders besides IUCN
including the Provincial Environment Authority of the
NWP, university professionals, state agencies, our team
members and the local community.
Biodiversity Monitoring and Action Plan for
Rehabilitation
On a project begun in 2009 with IUCN Sri Lanka, Holcim
Lanka developed a long-term Bio-diversity Monitoring
Protocol to determine the recovery of lost species in these
newly rehabilitated sites. The overarching tenet of the
protocol is to measure the change in species diversity,
habitat structure and ecological functions within the
rehabilitated utilizing sound scientic methodologies
and processes.
The rehabilitation methodology being observed at these
sites is to rell mined areas with unusable soil, cover the
ll with top soil using soil from the newly mind areas and
replant plant species suitable for that locality. Having
conducted reviews of fauna and ora species prevalent
in the rehabilitated ares, a Bio-diversity Action Plan (BAP)
was formulated, detailing recommendations for the
continuation of the process. By 2011, eight permanent
monitoring plots had been established, all of which are
annually monitored as per the protocol stipulations.

Species Rescue Operation Animal Rescue Programme
A pioneering initiative by any corporate entity in Sri
Lanka, Holcim Lanka launched a programme to rescue
and release species of fauna from the clear cut areas
into the rehabilitated areas, especially those slow
moving animals who are susceptible and vulnerable.
This programme is one which reaches way beyond
compliance directives but one which we believe, adds
to our responsibility of caring for the environment we
work in. Monitored carefully and comprehensively, the
process is conducted on stipulated guidelines to ensure
the importance that each species plays in the eco-system
dynamics. The animals are captured prior to forest
clearance and released into suitable matching habitats
in consultation with bio-diversity experts. 623 animals
were rescued in 2011.
Rescued Animals during
ARP
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1,500
2,000
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Quarry rehabilitation at Aruwakkalu of
Holcim Lanka (Pvt) Ltd. is integrated with
the Biodiversity Conservation standards in
Internationally accepted norms. This is one
of the Best models in Sri Lanka for giving
back what you get from the Nature. More
importantly this is done by an established
world class company.
Dr. Saman Senanayake
Director
Provincial Environment Authority, NW
We are happy to partner with HLL in piloting
ecological restoration of selected sites in
Aruwakkalu limestone quarry, monitoring
of restored sites on annual basis and rescue
and release of less mobile animals from
natural areas prior to beginning of quarry
operations. We have been engaged with HLL
on ecological restoration activities since 2007
and we believe that there is a lot that others
could learn from HLLs demonstrated long
term commitment to ecological restoration.
Shamen Vidanage
Acting Country Representative
IUCN Sri Lanka Programme
Water Management Initiatives
Based on a system developed by the Group, Holcim Lanka
adopted the Group's new water management system in
our bid to better manage our water usage. The system
comprises the three elements of the Holcim Water
Directive, Holcim Water Measurement Protocol and the
Holcim Water Risk Assessment Methodology.
Following the directives and management tools, the
Company began publicizing its water footprint, a process
that was completed in 2012. This extensive study
provided the most of water consumption of our PCW
facilitate 110l/tons clinker 5% which we consider as the
baseline to further reduce water footprint.
Prior to this, the Company, being acutely aware of the
water efuents emanating at its Ruhuna Plant, installed
a wastewater efuent treatment plant that would not
only discharge efuent water efciently but is aligned
with our environmental conservation focus. The treated
wastewater is used for plants and foliage around
the locality of the plant. This treated wastewater is
constantly monitored and tested to ensure compliance
with the Discharge License issued by the Central
Environmental Authority.
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Our People
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Our people are well imbibed into the Holcim values
of Strength, Performance Passion, which fuels the
organisation and their individual career aspirations. This
has helped us build a team that not only wins, but is
always searching beyond the horizon to be better than
the best. We have thus become benchmarked leaders in
the industry, honing talent and skill to spur innovation,
embracing new technology and being constantly
conscious of our responsibilities to all our stakeholders.
Our team believes in living and breathing a continuously
improving curve and thrive in the knowledge-oriented
culture prevalent within.
To optimise the strengths and competencies of our
team, we begin building foundations for their personal
development at recruitment, ensuring they are
steeped in this culture of development and knowledge
orientation. Working in an environment that is conducive
to further development, we are also cognizant of infusing
global best practices and standards into the way we
work. Thus building on the Holcim CSR Policy, which
further integrates principles that we live and work by,
We value diversity and promote equal opportunities in
recruitment, employment, development and retention, :

We are an equal opportunity employer
We adhere to all principles and tenets stipulated by
the International Labour Organisation, Sri Lankan
labour regulations and other relevant local and
international statutory bodies and recognized labour
practices
We do not subscribe or promote discriminatory or
child labour
Our ethos is one of meritocracy and equality
We abhor bribery and corruption in any form
All third party contractors must adhere to labour
regulations and good employee practices
We desire to be an attractive employer whose
remuneration matches or exceeds local industry
standards
We Build Foundations for Our People
HR Management
We believe strongly in the axiom of unity in diversity
within our team and foster the values and culture seen
within our multi-cultural multi-dimensional team. Our
systems ensure that apt internal and external talent
is identied and matched according to organisational
requirements, aided by a robust selection process
through cross functional selection panels that probe
into the diverse and multiple talents of candidates.
Once selected, an induction programme is instituted
to ensure a smooth transition of the candidate into
the organization. The recruitment process is further
strengthened with the Holcim On-Boarding Programme
(HOP), which assesses early development needs of the
identied candidates and then maps their progress
against these needs across a ninety day assessment
review. The process thus ensures that development
needs are addressed before appointment to the post and
conrmation of job posting.
Talent Management
There remains a fundamental rudiment within our talent
management focus that propagates the availability of
the right talent bench-strength for critical positions
within our company. Top Managers meet regularly to
develop and follow up succession plans of team members
groomed for their own positions as well as positions
directly under them. The companys aspiration of
commitment and importance for talent development is
further emphasized by recognizing People Development
as a Key Performance Indicator for all managers who
have direct reporting lines. We also follow up individual
development plans starting from middle management
level and above, formally twice a year, during dialogue
processes.
In 2011, Holcim Lanka implemented the Bell-shaped
performance distribution curve aligned to HR best
practices of the Holcim Group, which measures employee
performance against company objectives. Known as
e-Dialogue, the initiative drives business performance
by ensuring that team members are well aware of
company expectations, gain feedback and support and
are able to plan future development and aspirations.
Performance is measured aligned to objectives, critical
tasks, competencies and qualications, linked to annual
performance based pay.
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A Responsible Employer
Upholding Human Rights
As a strong and focused policy that permeates through
the group extremely powerfully, it is imperative that
all Holcim companies must uphold human rights.
Reinforced by the Group's participation in the UN Global
Compact and UN Declaration on Human Rights, also as
embedded in the Group CSR Policy, Holcim Lanka adheres
to the Groups Human Rights Management System,
which was designed aligned to John Ruggie's guiding
principles. As it is compulsory for all Group companies
to map risk related to Human Rights with the support
of the Group, as to ensure workers human rights as well
as contract workers human rights are ensured during
their employment at Holcim Lanka. Also each year self
assessment is to be sent to the Head Ofce, which
covers insightful questions on equal opportunity, non-
discrimination, gender equality, no forced labour and no
child labour and overarching human rights policy and
strategy.
Enhancing Diversity
At Holcim Lanka, gender diversity is low due to the nature
of the work and the industry we are engaged in. Our top
management team represents a diverse workforce. In
2012, 7% of our total workforce was women, with 9% of
our top and senior management being female.
Collective Bargaining (LA4)
To foster a culture of mutual respect and trust, we
engage with elected employee representatives. In 2011
and 2012, on average 72% and 88% respectively of
employees were either represented by an independent
trade union, participated in Collective Bargaining or both.
Engaging with Our Employees
In attaining these objectives, employee engagement
becomes imperative and is based on team members
gaining absolute satisfaction from their employment and
job opportunities which have real value, are motivating,
develops talent and has fair and just recognition and
reward. The Holcim Values and Engagement Survey
comprehensively measures employee engagement in
contributing to the business and the alignment to Holcim
Values. Independent surveyor AONHewitt conducted this
engagement survey for Holcim in April 2012 where the
response gained was 90%, with an engagement level of
67% - well above the Sri Lankan norm.
Holcim Supiri Awards
In recognising the talent within, the Holcim Supiri
Awards takes place annually cascading these values of
high achievement and optimum performance. These
awards, which are considered the most prestigious in
the Holcim Lanka calendar is aimed at not only giving
credence to the committed and invaluable contribution
the teams make towards the success of the company, but
also to honour those who have gone the extra mile in
ensuring that this success is sustainable.
"Great self-condence, self-
determination and trust have made me
successful in reaching my own personal
dreams. Winning the Gold Award at the
2012 Supiri Awards was the greatest
achievement in this journey".
Prasad De Silva
EARN Project Manager (Geocycle).
Holcim Lanka 2012 Sri Lanka 2011 Average APAC Best Employers
2011 Average
APAC 2011 Average
0% 100%
80%
67%
65%
58%
56%
40%
30%
Destrutive
Range
Serious
Range
Indifferent
Range
High
Performance/
Hewitt Best
Employer
Range
The Supiri Gold Award recognises the best team and
the high achieving individual, while sub-categories,
namely Best Sales Person in two segments, Innovative
Idea, Safety, Star of the Function, Special Merit and
Green Awards are presented as well. A stringent and
very independent selection process is carried out by the
Evaluation Panel comprising an external panel of judges
supported by a senior technical committee. Criteria
is wide but relevant, relating to the specic award
categories, while the judging process ensures complete
condentiality.
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Training Learning &
Development
With Holcim's unequivocal focus on sustaining a
winning team, training learning and development
forms an integral facet in ensuring that this target is
met. Developing people remains a fundamental in the
process as improving knowledge, skills, competencies and
enhancing innate talent will permeate to our team being
the best there is. Being well aware of the contribution
they make towards value creation for the business, we
in turn make it our responsibility to add llip to their
personal and professional growth.
Training Learning and development programmes
encompass workshops, seminars, conferences and
outward bound programmes and are mapped to the
Terms of References of the relevant job descriptions,
individual capabilities and abilities. These are then
aligned to the companys future progress and strategic
plans. While technical and specialized training is
continuous, the development of soft skills also remains a
vital feature.
Most of our T&D programmes are conducted internally
by our HR department using expert internal and external
resource persons. However, we also identify imperative
external programmes, either in Sri Lanka or abroad,
which are deemed useful in honing skills and knowledge
for our team. Remaining extremely cognizant to the
evolutionary nature of the industry and the required
leadership and management skills that are imperative
to remain ahead, Holcim identies a a number of foreign
learning and development programmes for our team
members to participate in. In addition, we also host
regional seminars and workshops to infuse further
knowledge and skills from external perspectives and as a
knowledge sharing platform.
A unique feature in our Learning and Development
initiatives is the Employee Exchange Programme
where identied team members would participate in
an exchange programme to gain exposure to different
standards and cultures prevalent within the Holcim
Group, as well as learn on site or exposure to special
projects. These exchange programmes are timed from
two weeks to three months.
"As I observe, the Learning &
Development Function in HLL shows
a true commitment and focus on
continuously developing the professional
and personal growth of its employees
irrespective of the hierarchy in the
organization "
Dr. Ajantha Dharmasiri
Senior Faculty Member & Management
Consultant, PIM
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Training- Foreign 29,799,561.00 4,540,316.90 10,749,700.49 21,528,480.77 2,837,031.63
Training- Local 5,734,415.20 8,035,623.79 7,884,184.51 21,394,240.66 3,152,675.42
Total Investment on employee training
SAFETY TRAINING (FPE + FIRST AID + CSMD
+FIRE TR)
SEVEN HABITS OF HIGHLY EFFECTIVE PEOPLE
SCAFFOLDING TRAINING LOCAL INDUCTION SEMINAR
EXCAVATOR TRAINING BUDGETING AND FORECASTING TECHNIQUES
IOSH MANAGING SAFETY SAP TRAINING
OH&S PYRAMID AUDITOR TRAINING WINDOWS 7 & LOTUS NOTES 8.5 TRAINING
SUPERVISORY DEVELOPMENT PROG BUDGETING AND FORECASTING TECHNIQUES
MIL OPTIMIZATION MWFT DRD AWARENESS SESSION 1
MIP TRAINING REFRESHER TRAINING SAP, OM, PA, TE
ENERGY AUDITING TRAINING PROCURE 2 PAY
BUILD BOND PROJECT AWARENESS COACHING FOR PROFESSIONALISM
HEALTH AWARENESS PROGRAMMES BUSINESS AWARENESS PROGRAMME
PROJECT MGT WORKSHOP PCW CMB BUSINESS COMMUNICATION SKILLS
AWARENESS ON CONCRETE BASIC HIRAC REVIEW TRAINING
LOCAL CEMENT COURSE EARN WORKSHOP
TRAINING ON TSR ABCD TRAINING
Key Training Programmes
SAFETY TRAINING (FPE + FIRST AID + CSMD
+FIRE TR)
REGIONAL MANAGEMENT SEMINAR
CONCRETE BASIS HGRS TRAINING
BALL MILL & ROLLER PRESS TURN TABLE
TRAINING RCW FOREIGN
EMPLOYEE EXCHANGE PROGRAMME
ISO 50000 ENERGY MANAGEMENT
TRAINING
SUPPLY CHAIN FORUM
TEAM DEVELOPMENT TRAINING TREASURY TRAINING
FINANCE TRAINING ENERGY PROJECT USING MSW
SHIPPING AIR CARGO & CONTAINERIZATION CRM PILOT EXPERIENCE WORKSHOP
LOCAL INDUCTION SEMINAR 2012 SAP ECCS REPORTING
TRAIN THE TRAINER PROGRAMME PREVENTIVE MAINTENANCE WORKSHOP
MOTIVATIONAL TRAINING PROGRAMME VCCE WORKSHOP
ROLLER PRESS AWARENESS GEOCYCLE WORKSHOP
HARP TRAINING
Holcim Lanka Safety Pyramid
Health &
Wellness Issues
Occupational
Rehabilitation
Induction
& Training
Incident
Investigation &
Corrective Action
Industrial
Hygiene &
Monitoring
Employee
& Stakeholder
Communication
& Involvement
Roles
Responsibilities
& Accountabilities
Hazardous Work
Activities
Hazard
Identification
& Risk Assessment
Planned
Inspections
Legal
Obligations
Management
Commitment
& Planning
Information
& Reporting
Inspection
& Testing
Safe Working
Procedures
Design
Safety
Audit &
system
Improvement
Management
of Change
Purchasing
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A Safe Working Environment
Occupational Health and Safety
With Occupational Health and Safety being a
rudimentary priority in our daily operations, maintaining
Zero harm with all our stakeholders is the ultimate
responsibility of Holcim (Lanka) Ltd and all our top
management drives the Safety Management System
with the leadership of the CEO. The Holcim OH&S
Management system can be summarized in to the 19
elements as shown in the Holcim Safety Pyramid below.
We have continued to stringently implement the 19
elements contained within the OHS Pyramid.
Extra curricular activities and professional or academic
furtherance is also encouraged as Holcim believes
strongly in creating holistic individuals who are
constantly imbuing a learning curve. Holcim Lanka funds
those who are engaged in MBAs or in any other related
academic or professional study, while supporting those
involved in sport or other extracurricular activities at
national level.
On average, each employee underwent training of 2.68%
of working hours throughout the year.
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5,000
10,000
15,000
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19,709
18,439
29,735
Implementation Planned
Implementation Begun
Fully Implemented
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Into this, we infuse the four work streams of Set the
Culture, Drive accountability, Mobilize People and
Manage Performance, described below:
Set the Culture
To make OH&S a condition of success in Holcim, a
strong sense of corporate commitment is a basic
requirement. It requires the implementation
of mandatory cardinal rules, goals, KPIs (Key
Performance Indicators) and targets to keep the
whole organization aligned and moving in the same
direction.
Drive Accountability
The focus of this work stream is to reinforce
leadership and establish structures. Organizational
accountability can only be achieved as line
management starts to be responsible for OH&S
performance. In this set up, the role of Corporate
OH&S will be to support common needs from the
different OpCos (Operational Companies), e.g. by
sponsoring a global OH&S Network to leverage best
practices and foster communication. Local OH&S
committees (OpCo & site based) will have the role of
ensuring the local transfer of that knowledge.
Mobilize People
Enhancing skills and competencies in the OH&S
eld is crucial. This requires training of all work
force levels in essential OH&S tools, proactive
improvement via correction of unsafe acts/
conditions from Safety Observations, projects
addressing safety in high risk areas, auditing and
continuously improving the system as well as
keeping momentum via targeted communication.
Manage Performance
Monitoring OH&S performance and recognizing
positive developments is the aim of this work
stream, objectively analyzing OH&S performance
and thus setting the basis for consequence
management. This includes the need for zero
tolerance when deliberately breaking rules.
Based on the Pyramid, Holcim also birthed an initiative
aimed at eliminating potential fatal incidents, developing
a culture committed to eradicating fatalities through the
launch of Fatality Prevention Elements (FPEs).
A number of initiatives have been introduced to create
the zero-harm culture being espoused by the company,
especially at the work sites. All plant and operational
areas are demarcated as Personal Protective Equipment
(PPE) mandatory zones to enhance awareness among the
team. All new recruits have a compulsory OHS induction
prior to beginning work. Ownership of these processes
are driven by Line Managers, who in turn follow the
leadership of the OHS Enforcement Committee, which is
tasked with identifying the OHS objectives. In tandem,
Line Managers appoint select personnel to Safety
Observation Tours (SOT) and inspect all safety areas,
processes and systems to minimise potential unsafe
behavioral conditions.
One area that requires added emphasis and focus is in
ensuring that third party contractors conform to our
stringent OHS guidelines. This therefore has seen us
employ a selection process to ensure that our third party
contractors are amply qualied and are aware of OHS
procedures.
The zero harm culture was augmented even further with
the following:
Special attention paid to vehicle and trafc safety to
minimize potential risk in vehicle operation
Safety plan and work method statement prepared
for major projects and implemented
Safety award system and disciplinary action
implemented for OHS consequence management
Risk assessment conducted and documented in
critical tasks
JSA (Job Safety Assistant) conducted for non-routine
tasks and SOP prepared for routine tasks
Daily morning OHS brieng; green area meeting at
plant level
Safety alerts translated into the Sinhala language as
well as a Toolbox Talk booklet prepared and cascaded
to all levels
The Global Cardinal Rule video which also details
previous critical accidents produced to suit Sri Lanka
and given to the entire team
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Responsible and Safe Driving Initiatives
Driving responsibly and safely is a high priority at Holcim
Lanka. Given the large number of drivers and driver
assistants who work with and at Holcim, most of them
being either on contract or third party employees, it is
imperative that the Company inculcates a safe driving
culture among all those who are tasked with such duties.
With our well trained drivers, Holcim drives average 7.5
million kilometres and delivering 1.4 Mn metrick tons of
cement and raw materials across Sri Lanka, annually.
This imperative led to the unique road safety programme,
titled Defensive Driver Training, which educates and
creates awareness among this stakeholder group
on various defensive driver techniques, safety and
prevention of accidents as well as mindset, behavioural
and attitudinal change. The programme comprising
two sessions, initially requires drivers to compulsorily
follow theoretical training after which they will undergo
practical training. On completion of the training period,
a certicate of completion is issued by Holcim Lanka.
After training, Holcim Lanka continuously monitoring
the behaviours of drivers to re-check and verify their safe
driving attitude on the road. Holcim use the dedicated
independent party to check the drivers behaviours
and all information maintain in centralized database
for decision making. Drivers have to re-certify for their
competency within the dened time intervals.
Yet another programme launched by Holcim Lanka is the
Rehabilitation of Drunken Drivers, which is extended to
all third party drivers as well. If a contract driver working
for Holcim Lanka is detected as being under the inuence
of alcohol, he will be suspended from work for two
weeks. If the driver is hired by an external supplier, the
supplier will be informed accordingly and the driver will
be barred from entering the premises. These identied
drivers are then enrolled in this programme, which
encompasses both an education and awareness process
on responsible driving, the legal implications, sentencing,
victims, health impacts and other related areas. The
programme aims to prevent recurrence of such practices
and combines presentations, group exercises and
discussions, videos and supporting literature in the form
of workbooks and leaets.
Once the drivers are deemed rehabilitated, the drivers
are allowed to return to their work. However, if the
rehabilitated contract driver is guilty of drunken driving
the second time, he will be suspended for one week from
work and on a third offence, blacklisted from all HLL
operations.
In the event a driver's assistant is under the inuence of
alcohol, he will not be allowed to work at HLL.
"After completing the Defensive Training
we were able to gain better knowledge
about Engine Mechanism, Trafc
Rules, Driving Attitude and Road Safety.
We highly recommend other drivers
to participate in this Training as this
training is which we cant obtain from
regular training sessions."
D.M. Nishantha
Lorry Driver
WDR Transport
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Social Commitment
The Holcim Group strongly relies on the ethos that,
'Business cannot thrive where societies fail' believing
strongly that the triple bottom line can only be
sustainable if the business fundamentals in economic,
social and environmental are strong, well grounded and
integral to everyday operations. At Holcim Lanka, we
follow this ethos unequivocally, building on a business
model which is designed to create empowering milieus
for the communities we interact with and has seen us
invest strategically in segments of society who need
sustainable initiatives to gain that empowerment.
Our approach to our social commitment is strategic and
non-philanthropic, as we believe in value creation to our
stakeholders rather than one-off interventions which may
not have a sustainable impact. Our social engagement
is also based on working with segments of society, who
when empowered will be both ideologues of knowledge
permeation and harbingers of change. In 2012, Holcim
Lanka invested 234,595 USD in community engagement
activities, most of which are continuing projects,
beneting community surrounding all 4 locations
through our projects in health, education, livelihood
development and infrastructure development etc.
"This ties together concern for carrying
capacity of natural systems with
social challenges faced by humanity
and achieves a more satisfactory
intellectual existence."
Chandana Arunadewa
Chairman of NAITA
A very successful public-private partnership was
mooted between Holcim, NAITA (National Apprentice
& Industrial Training Authority) and AIT (ATI-Apprentice
Training Institute), supported by GTZ (German Technical
Corporation) to train youth in the adjacent areas of
the Puttalam District with vocational skills. Our plant
is located in Puttalam, one of the more difcult and
poverty stricken areas of the country and has continually
grappled with lack of infrastructure, employment
opportunities and educational development due to lack
of necessary tools. In 2008, Holcim Lanka, established
the EVE Center (Enterprise based Vocational Education
Center) as part of its social commitment to provide
technical training for unemployed youth in this area.
Located within the plant premises, the initial investment
by Holcim Lanka was Rs 20 Mn which was invested in
training rooms, a 12 computer laboratory, lecture halls,
laboratories and other facilities and a further Rs 4 Mn for
lathe machines.
Identication of Key Stakeholder Groups
In adherence to Group directives, Holcim Lanka identies
stakeholders who are considered imperative to ensuring
the ongoing sustainable success of the business. This
is conducted through the conduct of a comprehensive
stakeholder analysis, which prompted the identication
of the categories of stakeholders in the above context:
Clients Community
Employees Government and Regulators
Shareholders Media / NGO
Suppliers Society at large
Multi-Stakeholder Engagement
Holcim Lanka has an encompassing multi-stakeholder
engagement process that proactively listens, discusses
and responds to issues and concerns raised by
stakeholders, including civil society, community leaders,
government and area decision makers, NGOs and other
corporate partners who in turn will be proactive partners
in the end result of creating a sustainable platform of
development. We believe strongly that the engagement
process builds a culture of mutual understanding
and trust, where a wide range of forums, dialogue
sessions, community advisory panels and a strong
feedback loop will build our stakeholder relationships
on a solid foundation. This also forms a base for us to
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share responsibility and project ownership with the
communities we engage in.
The Group has a comprehensive Social Impact Scorecard
that measures input and progress against set targets in
our sustainability focus areas. Holcim Lanka was one of
the rst companies in the Group to adopt this scorecard
four years ago. To augment this scorecard which is
an interactive process and activated online, a formal
Community Engagement Plan was launched in 2012 to
add more efcacy and tangibility to the relationships we
nurture within the community.
Holcim has developed a stakeholder engagement tool,
CAP community advisory panel to add more credence
to our engagement process with communities. Regular
CAP meetings held at all locations give opportunities for
stakeholders to voice their concerns, give suggestions
and recommendations which if feasible, are eventually
integrated into the business planning process.
Key topics raised by stakeholders and incorporated into
business areas
As mentioned above, Holcim Lanka deals with many
stakeholders and their concerns are top priority to the
company. Holcim Lanka has a systematic approach to
derive focus areas of stakeholders called community
advisory panel- and through CAP Holcim prepares a
Community Engagement Plan which clearly identies
the real needs of the community. With the identied
needs, Holcim focus its CSR plan accordingly striving to
full maximum possible way. Apart from Community
Advisory panel discussions at all 04 locations, Holcim
Lanka also carried out a comprehensive Social Impact
Assessment by independent Sociologist to identify
concerns and focus of the community and other
important stakeholders in and around the community in
04 sites. Having identied concerns those are included in
CEP and CSR roadmap for each site.
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Growing up, one of the rst things
I learned in this life is to have the
desire for knowledge & development.
Looking back in my life, there has
always been a strong connection
between me and the Holcim EVE
(Holcim Lanka Ltd) ,which helped for
my Sustainable Development.
Dhananjaya Charith EVE graduate
Currently employed as a Process Operator (QA)
Sustainable Income Generating
Knowledge and Skill Levels
EVE Center
A very successful public-private partnership was
mooted between Holcim, NAITA (National Apprentice
& Industrial Training Authority) and AIT (ATI-Apprentice
Training Institute), supported by GTZ (German Technical
Corporation) to train youth in the adjacent areas of
the Puttalam District with vocational skills. Our plant
is located in Puttalam, one of the more difcult and
poverty stricken areas of the country and has continually
grappled with lack of infrastructure, employment
opportunities and educational development due to lack
of necessary tools. . In 2008, Holcim Lanka, established
the EVE Center (Enterprise based Vocational Education
Center) as part of its social commitment to provide
technical training for unemployed youth in this area.
Located within the plant premises, the initial investment
by Holcim Lanka was Rs 20 Mn which was invested in
training rooms, a 12 computer laboratory, lecture halls,
Social Commitment
Employability for Reconciliation
The end to the war, while bringing with it the onset of
hope, opportunity and peace, was also a time when the
country began to accelerate development, where large
scale infrastructure, roads, bridges and housing gained
focus. However, one of the challenges being met by the
construction industry, was that of skilled construction
personnel in these areas which could have easily
inculcated avenues of income generation. It must not
be forgotten that thirty years of war had taken its toll on
these communities, most of who were female headed
households, vast numbers of child soldiers requiring
laboratories and other facilities and a further Rs 4 Mn for
lathe machines.

The EVE Center is registered under the Tertiary &
Vocational Education Commission as a B Grade Training
institute and has already seen ve batches complete
the two year full time course. On completion, those
passing out gain a certicate with a well recognised NVQ
(National Vocational Qualication) certicate. The EVE
Center, a B Grade training institute but currently working
on gaining A grade accreditation, offers courses until
NVQ Level 4, which will soon be upgraded to Levels 5
and 6. Currently, once students complete Level 4, Holcim
sponsors the high achieving students for completion
until Level 7. Currently, the students are specialised in a
single eld, which the EVE Center envisions to transform
in a bid to develop multi-skilled technicians who can
conform in diverse elds.
The course is complimented with On-the-Job training
at government and private sector organisations, while
complimentary knowledge features are also added with
training given in developing leadership skills and English
and IT literacy. These classes are conducted by visiting
external resource persons. During periods when the
plant is shut down, trainees work within the plant to gain
further knowledge and exposure through On The Job
Training.
From an employable perspective, it can be seen that the
training has been extremely successful with 96 students
gainfully employed (30 at Holcim and 66 at other
companies). EVE students have been actively involved
and contributed considerably in special projects including
the electrical installation for the Eluwankulama Housing
Project, manufacturing of railway wagon spare parts and
the necessary spare parts for the Plant shut-down, which
occurs thrice each year.
From an employable perspective, it can be seen that the
training has been extremely successful with 96 students
gainfully employed (30 at Holcim and 66 at other
companies). EVE students have been actively involved
and contributed considerably in special projects including
the electrical installation for the Eluwankulama Housing
Project, manufacturing of railway wagon spare parts and
the necessary spare parts for the Plant shut-down, which
occurs thrice each year.
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w;aoelSula' iy;sl m;la ,enqkd'
Kandaiya Wijeraja
Mason
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The villages that gain Holcim support by way of housing
are those in poor or difcult areas, are in war torn areas
and devoid of basic water and sanitation facilities.
Shelter is either temporary or unsafe and the villagers
eke out a living from the land's resources. Some of these
sites, which have families from all major communities,
have also succumbed to natural disasters like the
tsunami and hence, have had to contend with numerous
difculties in keeping a roof above their heads.
To provide relief to victims of natural disasters, Holcim
constructed homes at the Kosgoda Tsunami Village and
Holcim Supiri Village in Puttalam, all ensuring that both
social and environmental features are infused while cost
efcacy too is brought in. The oods that inundated the
country at the beginning of 2011 damaged almost three
thousand houses in the Polonnaruwa district, which
was one of the worst affected areas. In Madirigiriya,
about one hundred homes were damaged due to the
Kawudulla Tank overowing its banks. Observing one of
humankind's primary needs, shelter being washed away,
Holcim Lanka worked on a project to construct twenty
homes for those living in makeshift camps post this
catastrophic ooding.
The District Secretariat in Polonnaruwa and the Divisional
Secretariat in Medirigiriya allocated a twenty acre swathe
of land for the housing project based in Thalakolawewa
and optimising on employee volunteerism, the village
was handed over to its occupants within three months.
Meeting the Primary Need of Shelter
rehabilitation, education levels and opportunity not
being at the desired levels and mines and war injuries
seeing a large number of young and old maimed for life.
There was also signicant deprivation of primary and
basic needs.
It is at times like this that corporate stewards need to
look beyond the bottom line and contribute towards the
development agenda. Holcim Lanka, together with the
National Apprentice and Industrial Authority (NAITA) and
the Bureau of Commissioner General of Rehabilitation
(BCGR) focused primarily on the large group of youth in
the North and the East, presenting them opportunities
to learn a sustainable skill leading into either being
employed productively or even launching their own
entrepreneurial venture. Being another PPP, the
partnership with NAITA is crucial to this knowledge
development process as the qualication they gain is an
internationally accredited one.
The Bureau of the Commissioner General for
Rehabilitation was most supportive, actively promoting
the courses within the rehabilitation centers and
providing training centers for the conduct of the courses.
Two hundred youth were trained within the rst batch in
masonry craftsmanship at the Chettikulam IDP Camp in
August 2009, followed by a further 900 youth including
700 rehabilitated youth from across the northern region
the following year.
Each candidate is assessed on competency and quality of
learning by qualied assessors endorsed by the Tertiary
and Vocal Education Commission (TVEC) and those
who are successful are awarded a National Vocational
Qualication in Masonry Craftsmanship together with an
identity card jointly signed by NAITA and Holcim Lanka.
The successful youth are also presented with a free
masonry tool kit with all essential equipment required
by a professional mason. GIZ and the World University
Service of Canada (WUSC) provided seven hundred tool
kits for this purpose.
Another unique feature of this course was the emphasis
on gender equality where 35 women from the Jaffna and
Vavuniya districts gained the NVQ certication. Holcim
Lanka also trained forty army personnel at the request of
the Sri Lanka Army, to support the construction of houses
for those affected by war. These trained personnel were
conferred the NVQ Level 3 Certication.
Further, in collaboration with NAITA and BTT & GIZ,
Holcim Lanka completed a training programme for 185
rehabilitating youth, conducting courses in masonry,
electrical wiring, plumbing, carpentry and motorcycle/
out boat motor craftsmanship in the Protective
Accommodation and Rehabilitation Centre (PARC) in
Kandakaduwa. In total, approximately 1,500 youth have
been trained in employable vocational skills and our
target is to produce 5,000 NVQ Level 3 certied masons
by 2015.
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In 2012, aligned to the Group's centennial celebrations,
Holcim Lanka constructed another Holcim village
comprising eighteen houses in Eluwankulama on land
provided by the Divisional Secretariat, completing the
project in November 2012 and handing over the homes
to the beneciaries.
A total of 20 homes have been constructed in these
villages at a total investment of Rs 12 Mn.
Another redeeming feature in all our housing
construction process is the interactive engagement
between both the villagers and our team of over one
hundred, who worked side by side in the construction
process. Holcim Lanka employed masons from the
village, not only giving them an income but also training
them in upgrading their skills and competencies as well.
The materials and labour required for the project were
also purchased from the village community, augmenting
their income generation capabilities. Holcim also
infused a skill development culture within the villages
by sharing expert knowledge in all construction
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ke;s Wojla' wms fyd,ais by<ska ms<s.kakjd'
A G Bandara
House Owner
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education and due to the prevalent poverty, school
infrastructure too is in a sorry state as well. Mooted
by the very top at Holcim Lanka's corporate ladder, the
Executive Ofcers' Association, all volunteers from the
association, contributed 480 hours of their time to
refurbish and rehabilitate ve selected schools under
the Holcim Lanka 'Together for Communities' drive. In
addition, 900 students were presented with books and
school supplies, which funding was given completely by
the Association membership.
Prior to this, Holcim Lanka converted a disused building in
one of the schools into a computer laboratory, donating
ve computers for the students to upgrade their
knowledge levels. It is pertinent to note that poverty
level in this area is so abject that these students had
never seen a computer in their lives before.
Three schools in Galle and Trincomalee were also
refurbished by Holcim Lanka giving students in those
schools a more conducive study environment to thrive in.
In addition, Holcim implemented a unique succession
planning programme for dealers' children, under the
banner, Heta Dilena Tharu'. This is aimed at the next
generation of our valued business partners, primarily
those dealers who run their own businesses with the
expectations of having their children take over the
business eventually. Holcim's programme therefore gears
these young people in the rudiments of leadership, sales,
marketing, banking etc., to prepare them to eventually
spearhead their parents ' business.
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Holcim Lanka is truly a pioneer in
community development. As a non-
government organization they have
identied the roles and responsibilities
well and are taking the lead to act
on them. Best example is my school.
They have done a great social service
by providing for new classrooms,
computer center, drinking water
facilities, sports and library facilities
and free transpiration for school
children in my school."
Educating the young to spearhead
the future
Aruwakkalu, a rural village that sustains itself with
shing and agriculture situated in the North Western
Province, houses families who live below the poverty
line, which hence makes education a non-priority. The
children living in the village have no access to quality
competencies, including excavation, trenching,
construction, roong and plastering. HLL technical
service engineers conducted awareness sessions for
construction workers from the village. Volunteering
HLL employees also actively participated in construction
work. All employees from CEO to worker level,
participated in this project, contributing time, skill and
knowledge.
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Spurring Industry Togetherness
Holcim has always strongly believed that sports fosters
not only team spirit but also develops leadership skills,
teamwork and the ability to work towards a singular
vision, all of which ultimately assists in the sustainable
empowerment milieu that we strive towards. Having
worked with various community segments in fostering
this uniting spirit, for the rst time in the history of
the construction industry in Sri Lanka, we organised a
nationwide football competition that encouragingly
saw the participation of thirteen teams from Mannar,
Vavuniya, Kalutara, Gampaha, Colombo, Galle, Matara,
Badulla, Moneragala, Kandy, Kegalle, Kurunegala and
Puttalam. The winning team which was from Kalutara,
as part of their accolades, participated in the national
football tour to gain further experience and hone their
skills in the game.
Given that football is played across the island and is
extremely popular as a sport especially in the lesser
urban environs, Holcim whose sporting interests have
always been in football, organised the Holcim Mason
Football Championship, to nurture the relationship
between Holcim and the masons around the country.
The tournament has now moved to include teams from
abroad as well, with the championship held in December,
having an Indonesian competing participating. It has
now become a rm annual event in the Holcim calendar.
Given that football is played across the island and is
extremely popular as a sport especially in the lesser
urban environs, Holcim whose sporting interests have
always been in football, organised the Holcim Mason
Football Championship, to nurture the relationship
between Holcim and the masons around the country.
The tournament has now moved to include teams from
abroad as well, with the championship held in December,
having an Indonesian competing participating. It has
now become a rm annual event in the Holcim calendar.
I have been working in the
construction industry for more
than two decades and had been a
loyal customer of Holcim from the
beginning. Holcim is not just quality
cement; Holcim Company provides
us technical advices and other
beneciaries through Holcim Concrete
Society. Also, Masons.lk provides us
the ability to increase our income
levels through helping us to get more
job opportunities, while conducting
leisure activities; such as Masons
Football which we would never nd an
opportunity as such throughout our
busy time schedules.
G.H.H.Thilaksiri
Head Mason
Angoda
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Environmental Performance KPI SL-NGRS GRI 2008 2009 2010 2011 2012
Number of plants included in evaluation
Cement ENVT3 EN3 2 2 2 2 2
Geocycle Operations
PCW 1 1 1 1 1
Geocycle - PPF Katunayaka 1 1 1 1
Management systems
Implementation of ISO 14001 (number of plants)
HLL sites 2 3 3 3 3
Environmental investments and environmental compliance
Environmental investments (LKR million) ENVT23
ENVT24
EN30 0.95 0.53 1.42 3.82
Provisions for site restoration and other environmental
liabilities (LKR million)
EN13 5 5 5 5
Number of non compliance incident cases
Cement - PCW
Cement - RCW
Geocycle - PCW
PPF - Katunayaka
Associated nes and panalties (LKR) 0 0 0 0
Total - HLL
Reducing CO2 emissions
Absolute gross CO2 emissions (million tonnes) ENVT13 EN16 447,555 527,642 553,992 537,576 579,997
Absolute net CO2 emissions (million tonnes) 439,809 517,045 540,349 517,440 560,151
Specic gross CO2 emissions (kg CO2/t cementitious materials) 573 658 644 603 588
Specic net CO2 emissions (kg CO2/t cementitious materials) 563 645 628 580 568
Indirect CO2 from purchased power (tonnes per aan)
Cement 40,736 40,921 44,894 50,274 42,166
Energy
Thermal energy mix of clinker production (%)
Coal 77.99% 75.62% 78.79% 67.17% 69.57%
Heavy fuel 1.80% 2.02% 0.36% 0.44% 0.34%
Alternative fossil fuels 4.83% 5.55% 7.13% 10.79% 10.01%
Alternative biomass fuels 15.37% 16.81% 13.72% 21.60% 20.09%
Thermal energy efciency (MJ/tonne clinker) 3892 3860 3838 3752 3584
Thermal substitution rate (% thermal energy from
alternative fuels)
ENVT5 EN5 20.20% 22.36% 20.85% 32.39% 30.09%
Waste types used as alternative fuels (%)
Waste oil 2.03% 2.04% 2.89% 7.41% 2.55%
Tires 0.00% 0.00% 0.00% 0.00% 0.07%
Plastics
Solvents
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Performance Data
Impregnated sawdust 0.00% 0.00% 0.93% 0.00% 2.95%
Industrial waste and other fossil-based wastes 2.80% 3.50% 3.30% 3.38% 4.43%
Agricultural waste/charcoal 10.20% 10.88% 8.09% 11.13% 15.80%
Wood/non-impregnated sawdust 5.18% 5.93% 5.64% 10.48% 4.26%
Other biomass
Clinker factor (average % of clinker in cement) ENVT2 EN2 78.2% 82.5% 82.8% 82.9% 81.4%
Fuel consumption (specic MJ/t)
Cement 0 0 0 0 0
Fuel consumption (total MGJ/a)
Cement 2,026,054 2,396,757 2,445,651 2,431,590 2,530,460
Power consumption (specic) kWh/t
Cement 80.30 93.00 80.80 76.58 73.66
Power consumption (total million kWh/a)
Cement 95,625 96,058 105,385 109,269 111,255
Other atmospheric emissions
NOx
Total emissions (tonne/a) 1774.31 2252.17 1,699.00 1651.24
Average specic concentration (g/tonne cementitious materials) 2211.98 2616.19 1,905.00 1673.61
SO2
Total emissions (tonne/a) 12.24 11.40 14.00 16.19
Average specic concentration (g/tonne cementitious materials) 15.26 13.24 16.00 16.41
Dust
Total emissions (tonne/a) 54.81 18.99 186.00 65.17
Average specic concentration (g/tonne cementitious materials) 68.33 22.05 208.00 66.05
Mercury
Total emissions (tonne/a)
Average specic concentration (g/tonne cementitious materials)
Organics
Total emissions (tonne/a)
Average specic concentration (g/tonne cementitious materials)
Dioxins/furans
Total emissions (grams/a)
Average specic concentration (micrograms TEQ/tonne
cementitious materials)
Implementation rate of continuous emission monitors (%)
Biodiversity and resources conservation
Number of biodiversity-sensitive sites EN13 1 1 1 1
Cement
Number of biodiversity-sensitive sites with Biodiversity
Action Plans in place
1 1 1 1
Cement
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Approved mining plans by local authorities 1 1 1 1
Cement
% of sites with quarry rehabilitation plans in place 3 1 1 1 1
Cement 100% 100% 100% 100%
Water
Water consumption l/t ENVT8 EN8 21.85 33.33 5.15
Cement - RCW 263244 363394 435193
Cement - PCW 13.10 14.28 13.51 13.39
Water consumption (total million m3/a)
Cement - RCW 5784 12112 2242
Cement - PCW 81336 90957 87925 94547
Water recycling systems
Cement RCW
Cement PCW
Transport - Cement
Road (%) EN29 100% 100% 100% 100% 100%
Rail (%), Water (%), Other (%) 0 0 0 0 0
Waste management and recycling
General waste management system (%)
Cement
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Social Performance KPI SL-NGRS GRI 2008 2009 2010 2011 2012
CSR strategy
numbers of sites with a specic CSR strategy
Employment practices
Group employees by sites
Colombo 165 147 144 151 171
PCW 396 373 367 365 364
RCW 121 104 101 102 115
Warehouses 8 8 9 13 9
Geocycle - PPF Katunayaka 0 3 4 4 6
Employee turnover (%) SOCL2 LA2 6.30% 8.40% 6.20% 6% 7%
Personnel expenses (LKR million)
PCW 546 563 692 700 708
RCW 113 113 128 128 129
Geocycle - PPF Katunayaka 70 73 69 66 87
% of female workforce
Top management level 0 0 0 0
Senior management level 3 3 4 3
Middle management level 11 15 17 18
Other employees 29 27 26 26
Notice given for operational changes
Number of sites conducting employee satisfaction surveys
Number of sites with employee grievance procedures
Number of sites where grievances can be submitted anonymously
Training
Hours of training per employee
Senior management 38.3 34.7 138.2 105.7
Middle management 46.1 44.7 68.1 74.9
Other organizational levels 26.4 17.6 27 27
Average all levels 30.3 29.8 48 51
Occupational health and safety
Number of fatalities sites
PCW 0 0 0 0 0
RCW 0 0 0 0 0
Road sector 7 4 4 2 0
Geocycle - PPF 0 0 0 0 0
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Social Performance KPI SL-NGRS GRI 2008 2009 2010 2011 2012
Lost-time injury frequency rate
Directly employed 1.31 0.73 0.75 0.73 0.7
Number of sites with serious disease programs
Number of sites with joint health and safety committees
Number of workforce represented by committees
Human rights
Staff giving training on equal opportunity policies
Staff giving training on human rights policies
Community involvement
Community spending (LKR million)
Donations and charity ECON1 EC1 0 3000 17679 65046
Education projects 113991 7950 86637 101443
Community development projects 9373 19384 24264 4820
Infrastructure community projects 0 0 125185 30200
CSR overhead 0 0 0 0
Other 13734 72072 0 33086
Community spending breakdown (%)
Donations and charity 0 3% 7% 28%
Education projects 83% 8% 34% 43%
Community development projects 7% 19% 10% 2%
Infrastructure community projects 0 0 49% 13%
CSR overhead 0 0 0
Other 10% 70% 0 14%
Stakeholder engagement
Stakeholder engagement at local level (number of sites)
Needs assessment
Stakeholder involvement in CSR planning
CSR/SD memberships
Stakeholder dialogues
Community engagement plans in place
Community advisory panels
Cooperations
Introduction
Organizational Prole 2
Reporting Parameters 8
Governance, Commitment & Engagement 9
Vision and strategy
A message from the CEO 15
Sustainable Development strategy 17
Embedding our commitments 18
Economic impacts inuencing our value chain 18
Determining material issues 18
Our priorities 19
SD Challenges
1. Sustainable Solutions & Construction
Providing sustainable solutions 24
Innovation for value creation 27
Promoting sustainable construction 30
2. Energy & Climate
CO2 Efciency 34
Beyond Compliance 36
3. Biodiversity and water
Conserving Biodiversity 41
Water Management Initiatives 43
Our People
We Build Foundations for Our People 47
A Responsible Employer 48
Engaging with Our Employees 48
Training Learning & Development 49
A Safe Working Environment 51
Social Commitment
Sustainable Income Generating Knowledge and Skill Levels 56
Meeting the Primary Need of Shelter 58
Educating the young to spearhead the future 61
Spurring Industry Togetherness 62

Performance data 63
Contents
Photography by Taprobane Street
Digital Plates by Imageline (Pvt) Ltd
Printed by Printage (Pvt) Ltd
"Strength. Performance. Passion"
Committed
Sustainable Development Review 2012
Holcim (Lanka) Ltd
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Holcim (Lanka) Ltd
413, R.A. De Mel Mawatha,
Colombo 03,
Sri Lanka

Committed: Holcim (Lanka) LTD 413, R.A. de Mel Mawatha, Colombo 03, Sri Lanka

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Committed: Holcim (Lanka) LTD 413, R.A. de Mel Mawatha, Colombo 03, Sri Lanka

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