What are the material issues the company has identified?

In its 2019 Integrated Report CEMEX identified a range of material issues, such as customer experience and satisfaction, health and safety, product quality and innovation, business ethics and transparency, transport and logistics optimisation. Among these, promoting sustainability among its suppliers stands out as a key material issue for CEMEX.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups CEMEX engages with:

To identify and prioritise material topics CEMEX engaged with its stakeholders through the following channels: 

Stakeholder Group	Method of engagement
Employees	·      ETHOSLine 24/7 ·      Biannual Ethics and Compliance campaigns ·      Biannual engagement survey ·      Monthly global newsletter ·      Local HR teams on a daily basis and HR process platforms 24/7 ·      Open dialogues and meetings with leaders
Customers	·      Ongoing relationship management through sales representatives ·      Digital platforms ·      Annual commercial events ·      Customer satisfaction surveys ·      Customer service centres and helplines ·      Net Promoter Score (NPS)
Analysts, investors, shareholders	·      Regular meetings, webcasts, and conference calls ·      Quarterly financial updates and guidance ·      Annual integrated report, annual reports, and mandatory filings ·      Ongoing website updates and press releases ·      Annual CEMEX Day investor event
Academic institutions & NGOs	·      Yearly collaborative research portfolio ·      Biweekly “Lighthouses” talks ·      Quarterly whitepapers ·      Yearly best practices and methodologies playbooks ·      Annual event to share the project’s outcomes ·      “Hackathons” co-organised with Universities
Communities	·      Ongoing dialogues with communities ·      Quarterly community panels, sessions, and meetings ·      Annual open house days at operating sites ·      Ongoing educational programmes and training ·      Participation in local career events ·      Development of community infrastructure, volunteering, and social investment initiatives ·      Co-creation of inclusive business programmes ·      Development of entrepreneurial capacities for community members ·      Annual call for CEMEX-Tec Award entries
Suppliers	·      Daily procurement interactions ·      Ongoing capacity building programmes ·      Supplier sustainability guidance
Governments and policy makers	·      Annual integrated report and conservation books ·      Ongoing public policy discussions ·      Long-term partnerships ·      Working groups ·      Periodic plant visits ·      Events and conferences
Business associations	·      Periodic meetings ·      Annual conferences ·      Ongoing working groups ·      Ongoing research studies

 

CEMEX closely cooperates with its suppliers to foster its continuous innovation and implement the most sustainable practices in its day-to-day operations.

 

What actions were taken by CEMEX to promote sustainability among its suppliers?

In its 2019 Integrated Report CEMEX reports that it took the following actions for promoting sustainability among its suppliers:

• Promoting supplier health and safety
• At CEMEX, its commitment to the health and safety of its employees, suppliers, and partners is a top priority. In addition to its Supplier Sustainability Programme, CEMEX’s Contractor Health & Safety Verification Programme is designed to verify the health and safety practices of contractors with access to its facilities. The verification requires liability policies, risk premiums, health & safety manuals and procedures, and accreditations, among other requirements. Valid for one year, this evaluation helps CEMEX to verify that contractor companies know and comply with the health & safety processes and keep safe while working with it. For 2019, CEMEX reached its yearly goal of evaluating at least 80% of procurement contractors’ spend through a third-party organisation that specialises in the evaluation of health and safety practices. To achieve this goal, CEMEX engaged all of its operating countries and worked closely with its Global Health and Safety team to implement this key health and safety initiative. To foster its supplier sustainability engagement, CEMEX provides continuous communication and training to its Procurement teams on sustainability issues, so they can develop suppliers that are more closely aligned with CEMEX’s sustainability principles.

• Assessing suppliers
• Since 2010, CEMEX’s Supplier Sustainability Programme has made an extensive commitment to sustainability across its value chain, communicating and promoting responsible practices. In collaboration with third-party evaluators, CEMEX invites its suppliers to perform a sustainability assessment based on ISO 26000 guidelines and covering social, environmental, health and safety (H&S), business ethics, stakeholder relationships, and financial performance standards. After suppliers are evaluated, a specialised third-party firm analyses the information provided, prepares a consolidated report—including findings and conclusions from the assessment and identified opportunity areas—and proposes an action plan to close gaps, if any. This evaluation is periodically updated, and suppliers are expected to continuously improve their score. This grade is integrated into the supplier’s scorecard to track and reward suppliers that demonstrate advanced sustainability practices. CEMEX’s 2030 goal is to assess at least 80% of the critical suppliers spend under the company’s Procurement scope. By critical, CEMEX refers to those business partners who can have a significant impact on its three core businesses: cement, ready-mix concrete, and aggregates. Specifically, this involves those suppliers who could affect the continuity of CEMEX’s operations, involve health & safety and 80% contractors’ environmental risks, and/or have the highest spend. In 2019, CEMEX worked closely with its business units to evaluate the sustainability practices of critical suppliers with or without access to its facilities. Thanks to its collaborative efforts, CEMEX achieved and exceeded its annual target of 36%, assessing 44% of the company’s critical suppliers’ Procurement spend with sustainability criteria—on a good track to achieve its 2030 goal of 80%. Moreover, during 2019, CEMEX consolidated all European suppliers under one business unit instead of seven separate countries, to facilitate critical suppliers’ sustainability assessment. Also, CEMEX further leveraged its Supplier Sustainability Programme by integrating and engaging the suppliers of the Trinidad Cement Group acquired in 2017, with operations mainly in Jamaica, Barbados, and Trinidad and Tobago.

• Implementing a Suppliers Code of Conduct
• As a member of the GCCA (Global Cement and Concrete Association), CEMEX adopts its principles in its Code of Conduct When Doing Business With Us and expects its suppliers to honour its Suppliers Code of Conduct’s 12 principles:
  • PROMOTE health and safety as a top priority
  • UPHOLD decent working conditions
  • GUARANTEE freedom of association and non-retaliation
  • AVOID forced labour
  • DENY child labour
  • SEEK equality and fairness in supplier relations
  • COMPLY with environmental regulations
  • MANAGE environmental impacts
  • REJECT bribery and corruption—anti-money laundering
  • ENCOURAGE transparency and integrity
  • MAINTAIN standard business practices related to gifts, services, and other courtesies
  • ENHANCE equality and fairness in supplier relations

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

• Sustainable Development Goal (SDG) 5: Gender Equality
• Targets: 5.2
• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.8
• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.1

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

• Sustainable Development Goal (SDG) 5: Gender Equality
• Targets: 5.2
• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.8
• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.1

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
 

References:

1) This case study is based on published information by CEMEX, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to CEMEX: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2018 Integrated Report CEMEX identified a range of material issues, such as customer experience and satisfaction, health and safety, product quality and innovation, business ethics and transparency. Among these, providing learning and development opportunities for employees stands out as a key material issue for CEMEX.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups CEMEX engages with:

Stakeholder Group	Method of engagement
Employees	·      ETHOSLine 24/7 ·      Bi-annual Ethics and Compliance campaigns ·      Bi-annual engagement survey ·      Monthly global newsletter ·      Local HR teams on a daily basis and HR process platforms 24/7 ·      Open dialogues and meetings with leaders
Customers	·      Ongoing relationship management through sales reps ·      Digital platforms ·      Annual commercial events and customer-satisfaction surveys ·      Customer service centres and help lines ·      Net Promoter Score (NPS)
Analysts, investors, shareholders	·      Regular meetings, webcasts, and conference calls ·      Quarterly financial updates and guidance ·      Annual integrated report, annual reports, and mandatory filings ·      Ongoing website updates and press releases ·      Annual CEMEX Day investor event
Academic institutions & NGOs	·      Yearly collaborative research portfolio ·      Bi-weekly “Lighthouses” talks ·      Quarterly whitepapers ·      Yearly best practices and methodologies playbooks ·      Annual event to share the project’s outcomes ·      Hackathons co-organised with Universities
Communities	·      Ongoing dialogues with community stakeholders ·      Quarterly community panels, sessions, and meetings ·      Annual open house days at operating sites ·      Ongoing educational programmes and training ·      Participation in local career events ·      Development of community infrastructure, volunteering, and social investment initiatives ·      Development of inclusive business programmes
Suppliers	·      Daily procurement interactions ·      Ongoing capacity building programmes ·      Supplier sustainability guidance
Governments and policy makers	·      Annual integrated report and conservation books ·      Ongoing public policy discussions ·      Long-term partnerships ·      Working groups ·      Periodic plant visits ·      Events and conferences
Business associations	·      Periodic meetings ·      Annual conferences ·      Ongoing working groups ·      Ongoing research studies

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics, CEMEX engaged with its stakeholders through a worldwide survey.

What actions were taken by CEMEX to provide learning and development opportunities for employees?

In its 2018 Integrated Report CEMEX reports that it took the following actions for providing learning and development opportunities for employees:

• Embedding a growth mindset through CEMEX University
• CEMEX University aims to become CEMEX’s trusted learning advisor, with a vision of developing a continuous learning ecosystem for employees and acting as a high impact catalyst for CEMEX’s It integrates CEMEX’s leadership development programmes and institutional academies – Commercial, Health & Safety, Supply Chain, and Culture & Values – under the concept of CEMEX University. CEMEX University works together with CEMEX’s Global Networks and its Regional Presidents as executive sponsors to respond to CEMEX’s multi-region, multi-business learning needs, supporting employees by providing the concepts, practices, and tools required to implement CEMEX’s strategy. CEMEX University favours a blended approach to learning that leverages traditional in-person training and new best-in-class digital learning platforms and, in 2018, almost 15,000 participants attended different programmes across 30 business units, while its internal instructor network expanded to 125 trainers.

• Implementing leadership development programmes
• CEMEX invests in leadership development programmes at different levels of its organisation, including the following:
  • First launched in 2016, ENVISION encompasses two main themes: the leaders’ own personal course and their role in CEMEX’s course. ENVISION caters to CEMEX’s high potential leaders, enabling them to play a critical role in defining CEMEX’s strategic objectives. Along with deep introspection, leaders must develop specific skills to manage the tension between capitalising on what is known and certain to maximise value for CEMEX’s business today and exploring opportunities to create new sources of value in the future. During 2018, CEMEX launched the second generation of ENVISION, with the participation of 14 global leaders.
  • IGNITE, a new leadership programme launched in 2018, is specifically targeted to top-tier managers and newly appointed directors. Comprised of two cornerstones – customer centricity and leadership capability – it is designed to cultivate essential leadership capabilities and new ways of working to drive success within a digital context. IGNITE provides new opportunities to learn and practice leadership skills on real work projects and to foster peer relationships globally. In 2018, 57 high-potential leaders from across all of CEMEX’s regions and business units participated in this programme.
  • LEADER-TO-LEADER is a unique initiative that connects current and future CEMEX leaders. During 2018, 47 mentors from this programme supported employees who participated in IGNITE, providing their valuable experience and mentoring. CEMEX also takes advantage of this relevant leadership development programme to connect it with its ambition to promote more women to higher positions. As part of it, since 2012 more than 50 of CEMEX’s high potential female talent have participated in LEADER-TO-LEADER’s mentoring conversations.

• Operating academies
• CEMEX operates a number of institutional academies, designed to work together with its leadership development programmes to drive CEMEX priorities and help shape its “One CEMEX” culture:
  • The HEALTH & SAFETY ACADEMY is designed to help assure the wellbeing of CEMEX’s team members by ensuring participants understand their responsibility and duties as leaders to transmit H&S practices to their teams. During 2018, 5,432 participants completed the first two modules of this programme.
  • Through CEMEX’s COMMERCIAL ACADEMY participants learn how to deliver against CEMEX’s commitment to customer centricity through a combination of both instructor-led sessions and digital content. During 2018, a total of 1,360 participants underwent the different modules of the Commercial Academy.
  • CEMEX launched the first components of its CULTURE & VALUES ACADEMY, including an updated Ethics Module, a Digital Primer Programme, which includes an overview of emerging technologies and agile, design thinking, and Takeoff, an institutional onboarding programme for new employees. The response to this new Academy was impressive, with 7,126 participants in its modules.
  • Through CEMEX’s SUPPLY CHAIN ACADEMY participants understand how to go from strategy to execution, how to take the mindset and the way CEMEX thinks about its supply chain and turn it into reality, and how to become customer centric every day by working together – across the functional domains of CEMEX’s supply chain, to deliver a superior customer experience.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs

Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs corresponds to:

• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Employee training and education

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

1) This case study is based on published information by CEMEX, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to CEMEX: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.