“Sourcing concrete with confidence” A Global Responsible Sourcing Scheme for the Concrete Industry

1. “Sourcing concrete with confidence” A Global Responsible Sourcing Scheme for the Concrete Industry Concrete sector Construction sector Cement sector

2. Portland Cement Association Webinar

3. Cement Sustainability Initiative One third global cement production Two thirds outside of China

4. What does an RSS report? • Sustainable uses of concrete • Measure, report, verify (+ reduce) • CO2 and Energy Management • Air emissions • Land use • Communications • Biodiversity • Labor and training aspects • Safety • Water and raw materials • Supply chain management

5. What is a Responsible Sourcing Scheme A scheme (certification system, mark) that: • Creates transparency on the production of concrete and concrete products regarding environmental and social aspects • Promotes responsible sourcing of concrete • Improves resource efficiency & social contribution of concrete production • Fosters stakeholder engagement

6. How does this differ from an EPD? EPD – Impacts to Environment Carbon Emissions Energy Consumption Acidification Eutrophication Smog Creation Ozone Depletion Water Consumption Waste Generation RSS - Company Behavior Employee Health and Safety Fair Labor and Employment Practices External Stakeholder Engagement Energy Efficiency Bio-diversity Management Land Stewardship Resource Management

7. Market drivers Market drivers for responsible sourcing, throughout the world • Green Public Procurement Guidelines • UK Government sets target that 25% of construction products be sustainably sourced • Green Rating Systems (LEED) introducing points for RSS encouraging development • Contractorsand developers looking for responsibly sourced products (e.g. Skanska – zero unsustainable materials) • Other industries/ competing materials have RSS:

8. The Why: The market pull • End Users / Customers • Governments via Green Procurement: GSA, DoD • Real estate investors:/ owners: (Corporate, Institutional, Retail, Healthcare - via LEED, BREEAM, GRI and CSR Policy ) Wal-mart , Ford, Starbucks, PNC Bank, CBRE, etc • Social media trends: Fair trade, circular economy, C2C, social return, etc Contractors Prove compliance with green demand: Site, Transport, Re-use, waste, Design for De-construction, LCA, EPD’s Etc. Concrete and Concrete Product Producers Demand from Contractors, Certified projects, Wholesale, etc. Primary Producers Cement, Aggregate, Admixture and SCM producers / suppliers Stakeholder and Shareholder engagement, Governmental, Internal per CSR policies

9. Objectives Main objectives of the project (1/2) • Receive recognition of sustainable practices in green building rating systems (LEED, BREEAM, DGNB, GreenStar, HQE, etc.) • Get credits for responsibly sourced concrete • Get recognition in green procurement government policies • At EU level, the RSS could be perceived as a valuable harmonization effort • Environmentally Preferred Products (EPP via EPA)

10. Objectives Main objectives of the project (2/2) • Improve transparency of the concrete sector • Stimulate the concrete industry to remain competitive in the green building sector • Make green results visible • Enable a producer to demonstrate leadership • Help improve concrete’s performance: • Promote responsible practices throughout the value chain • Incentivize continuous improvement

11. Content of the scheme DRAFT

12. RSS Content: Reportable Issues DRAFT 1 Energy efficiency Minimize energy use in production and transportation of concrete. Increase the share of renewable energy. 2 Resource Management Long-term ecologically responsible land and resource use. 3 Biodiversity Management Protect and promote biodiversity. 4 Air, water and land quality Maintain quality of air, water and land. 5 Health and Safety Provide a safe and healthy working environment (including delivery) 6 Labor and employment Support the local economic and social conditions of the community. 7 Stakeholder Engagement Dialogue with local stakeholders so that the community and company derive benefits from each other.

13. RSS Content: General Requirements • Reduction of environmental impacts by implementing an environmental management system (EMS) that is documented and auditable. • Provision of safe and equitable working conditions with respect for human rights • Commitment to develop stakeholder engagement plans • Communication in a clear, consistent and transparent manner • Setting consistent minimum standards for major material suppliers • Legal compliance

14. Flexibility: regional adaptation DRAFT Global framework (common language) Regionaladaptations Regionaladaptations (weighting, additional topics, filter topic) Regionaladaptations International versus local & third party Regionalscheme Self-assessment tool: • For internal communication • Benchmarking in the sector. Assessment Tool: Certifying: Level 1: self declaration Level 2: certification by the branch Level 3: certification by the branch, check by accountant Level 4: 3rd party certification (type A, B, or C) Quick scan: • For internal use • Learning and communication

15. Flexibility in Performance Tiered levels (not one size fits all) DRAFT • Level 4 • Green leader: Outperforms Benchmarks Platinum • Level 3 • Ambitious level: Planning to performand measure results LEED: full credit Gold • Level 2 • Transparency level: report on performance and benchmarks LEED: 1/2 credit Silver • Level 1 • Compliance level: business as usual Bronze (certified) Minimum level required by regulations

16. Organization STEERING COMMITTEE Project Coordinator 1 representative of each partner TASKS Project management, Governance, Budgeting, Draft Approval Coordination of Stakeholder engagement COMMUNICATION WORKING GROUP TASKS Logo, Visual Identity External Communications REGIONAL WORKING GROUPS Coordinated/organized by regional associations (if wished/required) TASKS Coordination and development of regionally specific criteria • TECHNICAL WORKING GROUP • Coordinated by CSI TF-8 • Co-chair • 1 representative of each partner • TASKS • Performance measures (global + specific regional measures) • Certification process • Registration process for external certifiers

17. Role of associations / federations • Active involvement in the development phase • Promotion of the RSS for cement, concrete and concrete products • Role of associations in certification: • Expert role • Information, education • Services, tooling, benchmarking • Relation with government, rating tool • Regional committee

18. RSS Steering Committee Members

19. Future organization structure Auditors Performing Assessments Future organisation structure LocalCertifiedInstitutes LocalCertifiedInstitutes LocalCertifiedInstitutes LocalCertifiedInstitutes Perform certifications Train auditors Foundation/Trust Scheme Operator Directed by Members Maintain the RSS Deliver Services

20. Planning & next steps Jan Feb Mar Apr May Jun JulAug Sep OctNovDec I. Preparation phase II. Development of first drafts III. Engagement withstakeholders IV. Preparation of final deliverables V. Report to Partners = main deliverables Draft performance measures, requirements Draft certification process Draftgovernancescheme Draftfinancing model Final version of formerlymentioneddeliverables + 5-y budget forecast Action plan for 2015

21. Project Description 2014 : deliverables Planning: deliverables • By the end of 2014, the partners should deliver : • A set of performance measures related to environmental, social and economic aspects of the concrete production process and the supply chain. These performance measures are to be transparent and shared publicly. Global set of measures + specific regional measures • Requirements for certification (Y/N, thresholds, …) • A certification process for concrete producers • A governance scheme for the future RSS : governance bodies (composition, responsibilities), main governance processes (procedures)  • A financing plan (funding for the development phase + sustainable financing structure) and a financial forecast on a 5-y period (aiming at reaching break-even with the shortest possible timeframe) • A roll out plan/launching plan 2015.

22. Key External Stakeholders • Who do we need to engage? • LEED (US): Approval of RSS as evidence path for getting credits (MR Credit - Building Product Disclosure - Sourcing of Raw Materials) • Green public procurement influencers in the US - GSA, EPA EPP, • Construction companies such as: Turner, Skanska, DPR, Gilbane • NGOs such as World Wildlife Federation Future organisation structure

23. How do you want to be involved? Another Webinar for PCA members? Monthly progress report (Link to minutes of the committee meetings) Help writing WIKI Page: Request a login: vanuffelen@wbcsd.org Join one of the committees Become a member in the future Future organisation structure