2011 Annual Report - Italcementi Group

Raw materials and alternative fuels
To ensure responsible use of raw materials and fuels, many subsidiaries are taking action
to increase use of alternative sources and thereby minimize impact on the environment and
on the health and safety of employees and other parties using these materials. In 2011, the
proportion of alternative fuels to total Group energy consumption increased with respect to
2010. In Egypt and India, a number of promising activities began.
Emissions control and reduction
At the end of 2011, 59 out of 78 active kilns were equipped with complete continuous
emissions monitoring systems to measure dust, NO x and SO 2 , in line with the requirements
of the Cement Sustainability Initiative. The remaining kilns are kept under constant control
through partial continuous systems or regular spot checks. In addition to dust, NO x and
SO 2 , spot monitoring of minor elements such as volatile organic pollutants, metals and
dioxins is conducted in a growing number of plants, in order to set improvement targets and
keep ahead of future legislation.
CO 2 emissions monitoring and European Union trading system
The CO 2 emissions generated by Group operations directly (e.g., production) and indirectly
(e.g., transport) are closely monitored. 2011 saw a significant improvement in CO 2
emissions in countries where recently revamped plants resumed full operation.
European clinker production plants are subject to the European Directive on greenhouse
gas emissions trading, now in the second period of application (2008-2012). The downturn
in the European cement market continued in 2011, leading to a fall in clinker production
volumes and consequently in CO 2 emissions in all Group countries in Europe. In 2011, the
Group had a quota surplus for more than 4 million metric tons of CO 2 , on a total allocation
of approximately 18 million metric tons. The Group manages this availability compatibly
with its carbon risk management strategy, covering the entire period from 2008 to 2020 (EU
ETS application phases 2 and 3). The strategy includes EUA-CER forward swaps (forward
EUA sales and CER forward purchases) to diversify and optimize the CO 2 emission rights
portfolio, for use after 2012.
Human resources
The Group workforce stood at 19,896 persons at December 31, 2011, a decrease of 243
from December 31, 2010. On a like-for-like basis, in relation above all to the re-inclusion of
the Calcestruzzi group, the reduction would have been 830 heads (-4.1%). The downsizing,
which was of significant proportions in the companies affected by the crisis, was achieved
largely through special exit incentives, retirement support or restructuring agreements with
the unions to limit social repercussions. This enabled the Group to maintain a healthy
internal climate and keep strikes and forms of union unrest to an immaterial level. The
corporate climate improvement projects drawn up after the 2010 “Group Opinion Survey”
were introduced into the companies.
The strong attention devoted to reducing fixed costs and jobs did not prevent the necessary
personnel development measures, to enhance key competences and retain the most
qualified employees. Although budgets were limited, new initiatives began at local and
international level, especially for the professional “supply chain” family and to boost
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