In addition to continuous engagement with the communities that host us, LafargeHolcim engages with a range of stakeholders at all levels: customers, employees, investors and financial institutions, suppliers, regulators, media, NGOs / development agencies, and academia.
LafargeHolcim has a short and predominantly local supply chain. With our large geographic footprint, this poses challenges, particularly in countries where business practices are not well regulated. LafargeHolcim identifies high environmental, social and governance (ESG) impact suppliers and ensures they are qualified to work with us. In 2018, 34% (2017: 31%) of our active supplier base were identified as potential high ESG impact, accounting for 55% of our annual total spend (2017: 51%). The majority of these are contractors (84%) and the remainder raw material, energy, equipment and parts and packaging suppliers. By the end of 2018, high ESG impact suppliers, accounting for 62% of the total spend covered by high ESG impact suppliers (2017: 53%), had been qualified. We will strive to achieve full coverage as soon as possible.
Managing human and labor rights
We have developed a Human Rights Management System, categorizing countries into low, medium, or high business risk, using the UN Human Development Index and the Freedom House Freedom in the World Index. Where an issue has been identified as a medium or high risk, a mandatory remediation plan is enforced. The most commonly raised issues in assessments relate to working conditions and community impacts. By the end of 2018, assessments had been conducted in 41 out of 59 countries where we have operational sites, 17 of which were full impact assessments in 25 high-risk countries. Action plans to address potential issues were developed in 20 countries where medium or high risk were identified.