LafargeHolcim tops Sustainalytics ESG Risk Rating in construction materials sector
- Strongest result of all 101 construction materials companies analyzed
- Report especially recognizes strong corporate governance performance and improvement across all seven of the material ESG issues
- Leading the way in sustainable construction
Sustainalytics, a global leader in environmental, social and governance risks (ESG) and Corporate Governance research and ratings, published its latest LafargeHolcim ESG Risk Rating. Of all 101 construction materials companies analyzed, LafargeHolcim rated first. The company was also in the top 20 of all 12,000 companies assessed across all sectors.
Magali Anderson, Chief Sustainability Officer: “We are very proud of this industry-leading ESG ranking. It positions LafargeHolcim as the number one construction materials company within Sustainalytics’ ESG Risk Rating, as well as the very first to rank below 20 in its “low risk” category. We are proud of the results of this assessment and are encouraged to keep on raising the bar to further accelerate the transition to sustainable construction”.
Géraldine Picaud, Chief Financial Officer: “This number one ESG rating within our industry by Sustainalytics is a clear sign of the resilience and long-term focus of our business. With ESG programs embedded across our growth strategy, this rating further confirms our commitment to being a responsible investment of choice. We are leading the way in sustainable construction, as evidenced by our allocation of over 50 of our R&D resources to low-carbon solutions.”
The Sustainalytics report states that the company is at low risk of experiencing material financial impacts from ESG factors due to its strong management of material ESG issues. The company is especially recognized for its strong corporate governance performance and its improvement across all seven of the material ESG issues and corporate governance factors that were analyzed. According to the report, LafargeHolcim’s strongest areas of ESG risk management are its global business ethics programs, its broad range of sustainable products & services and its responsible use of resources, notably in terms of water management.
LafargeHolcim’s ESG Risk Rating score for 2020 is 19.5 on a scale from 0-100 with 0 indicating negligible ESG risk. Sustainalytics’ ESG Risk Ratings are categorized across five risk levels: negligible, low, medium, high and severe.
Additionally, LafargeHolcim has been upgraded in the ISS ESG Corporate Rating issued in April 2020 to “Prime” status. This status is awarded to companies which fulfil ambitious absolute performance requirements and achieve a high ESG performance in their sector. Consequently the company’s tradeable bonds and shares meet responsible investment criteria.
The summary report and further information on ESG topics at LafargeHolcim can be found here.
LafargeHolcim is the global leader in building materials and solutions and active in four business segments: Cement, Aggregates, Ready-Mix Concrete and Solutions & Products. Its ambition is to lead the industry in reducing carbon emissions and shifting towards low-carbon construction. With the strongest R&D organization in the industry, the company seeks to constantly introduce and promote high-quality and sustainable building materials and solutions to its customers worldwide - whether individual homebuilders or developers of major infrastructure projects. LafargeHolcim employs over 70,000 employees in over 70 countries and has a portfolio that is equally balanced between developing and mature markets.
Sustainalytics is a leading independent ESG and corporate governance research, ratings and analytics firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 25 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Sustainalytics works with hundreds of the world’s leading asset managers and pension funds who incorporate ESG and corporate governance information and assessments into their investment processes. Sustainalytics also works with hundreds of companies and their financial intermediaries to help them consider sustainability in policies, practices and capital projects. With 16 offices globally, Sustainalytics has more than 650 staff members, including more than 200 analysts with varied multidisciplinary expertise across more than 40 industry groups.
For more information, visit www.sustainalytics.com.
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