LafargeHolcim: Integrated Profit and Loss Statement

LafargeHolcim has articulated its ambitious long term sustainability strategy in the LafargeHolcim 2030 Plan. To achieve our long-term sustainability ambitions, we need to focus our efforts so that we can maximize our financial, socio-economic and environmental value creation. With this aim, we needed to measure the impact of our operations across the triple bottom line: people, planet and profit. To do this we developed the Integrated Profit and Loss Statement (IP&L).

The IP&L statement is a tool to help us understand – and share with stakeholders – the extent of our impacts on society and the environment, and to track progress against the LafargeHolcim 2030 Plan. We believe that the tool will enhance our decision-making processes and sustain value creation in the long term by raising awareness of the risks and opportunities posed by externalities (through quantification and monetization).

Natural Capital Protocol used
  • No, but aligns with the Protocol’s framework
Impact drivers assessed
  • Fresh water ecosystem use e.g. wetlands, ponds, rivers
  • GHG emissions e.g. volume of CO2, CH4, N2O, SF6, HFCs and PFCs etc.
  • Impact on biodiversity e.g. impact on species, ecosystems, habitats or genetic diversity
  • Non-GHG air pollutants e.g. PM2.5, PM10, VOCs, NO, NO2, SO2, CO, etc.
  • Other resource use e.g. volume of minerals extracted, volume of wild fish caught by species
  • Solid waste e.g. volume of waste by classification, materials constituents or disposal method
  • Terrestrial ecosystem use e.g. area of agriculture by type, area of forest plantation by type
  • Water use e.g. volume of ground- or surface water consumed
Organizational Focus
  • Corporate
Valuation Type
  • Monetary
  • Value to business
  • Value to society
Geographical Scope
  • GLOBAL
Dependencies assessed
  • Biodiversity
  • Energy e.g. solar, wind, hydro, geothermal, biofuel, fossil fuel
  • Regulation of waste and emissions e.g. waste assimilation, noise and dust regulation
  • Water e.g. fresh or sea water
Value Chain Boundary
  • Direct operations
Sectors
  • Cement

Key findings

The IPL confirms that in our first full year of operation, our overall value - including monetized social and environmental impacts - is significantly higher than the financial retained earnings of the company.

Given the scale of our operations, CO2 emissions have the largest negative impact. The development of products and services which help the end users to reduce emissions in the “use phase” will be an important lever to mitigate this impact and a key activity in achieving our 2030 Plan’s ambitions of generating one third of revenue from sustainability enhanced products and services.

Water usage continues to have a negative impact, but we are confident that the plans we have in place - including the reduction in freshwater withdrawal and implementation of the Water Positive Impact Methodology - will mitigate this impact.

We are confident that in the future, we will be able to demonstrate the positive contribution from innovation products services and applications.