Why Corporate Sustainability is Important to Boral Rod Pearse CEO

8/8/2019 Why Corporate Sustainability is Important to Boral Rod Pearse CEO

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3.70 million tonnes CO 2-e emittedin FY2007, down 1.6% on acomparative year-on-year basis

Cement emissions represent~60% of Borals total, and havereduced by 14% per tonne since1990

We understand our energy use and GHG emissions; this is critically important as mandatory reporting and emissions trading approaches

Energy use andgreenhouse gas emissions

GHG emissions in cement*tCO 2-e /tonne of cementitious material sold

* Including fly ash and slag sales and in FY07, tonnes of cementitious material sold includes net clinker sales

Indirect emissions

Process emissions

Fuel emissions

8

Borals CO 2 emissions total ~3.70m tonnes; calcination (32%)is the largest contributor followed by electricity (21%)

*Borals operating divisions are Cement; Australian Construction Materials (ACM); Clay & Concrete Products (C&C); Plasterboard; Timber; USA.

Natural

Gas

TransportFuels

FY2007 100% Boral owned business emissions inventory by division* and energy source

TOTAL

14%

32%

19%

21%

13%Other

Coal

Electricity

Calcination

USACement ACM

52%

65%

64%

56%

15%

23%

29% 25% 34%

C&C P / b

o a r d

T i m b e

r

2.25m 0.43m0.46m 0.41m 0 . 1 2 m

%

CO 2-e emissions (tonnes)

0

10

20

30

40

50

60

70

80

90

100

0 2000 4000 3.70m tonne0 . 0 3 m


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Water

2.93 billion litres of mains water used

in FY2007, steady on a comparativeyear-on-year basis but 24% downsince FY2005

Concrete production uses ~40% of Borals water; Boral Concrete hasdelivered a 20% reduction in mainswater since FY2005 through onsitecapture and recycling

Throughout our operations we rely heavily on water for production processes; we aim to reduce our reliance on mains water consumption

FY2007 Mains water consumption by division

Australian ConstructionMaterials

Cement

Plasterboard

Timber

USA

Clay & ConcreteProducts

16%

50%

6%

11%

3%

14%

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Water

Boral ConstructionMaterials (Qld)

Development of a water grid to prioritise water savings projects

Covers ~70 sites

Roof Tiles, Carole Park(Qld)

Mains water consumptionreduced by 58%

Saving ~4.2 million litres

per annum

Plasterboard, PortMelbourne (Vic)

Reduced mains water by13 million litres per annum

Saving in excess of

$10,000 per annum

We are continuing to undertake initiatives to reduce mains water consumption to reduce risks and to reduce our environmental impacts


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Waste

Waurn Ponds substitutes

~50% of fossil fuels withby-products

~1.2 million car tyres usedas alternative fuel in cementproduction

Waste oils, tallow residue,carbon electrodes used

Re-use, recycle & rebuild

at Midland BrickImplemented brick,

plastic, scrap and water recycling program

Full life cycle brickrecycling program runswithout additional cost

Boral Recycling (NSW)

804,430 tonnes of other peoples waste used by BoralRecycling (NSW) and inRecycled Asphalt Profiling(RAP)

Boral businesses re-use or recycle 33% to 100% of their production wasteand use a wide range of external waste in production processes; thisdelivers cost and environmental benefits

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We are enhancing the sustainability of our products & operations to assist our customers to achieve their sustainability goals and to enhance our revenues

Supply Chain Management

Clay bricks excellent thermal properties for energy-efficient construction reusable & recyclable

Plasterboard low embodied energy lightweightconstruction 100% recycled paper liner

Timber Australian hardwood from sustainablymanaged forests Silkwood TM uses three times less hardwoodthan traditional flooring

Windows

innovative designs (orientation/glazing) to reduce heat gain & loss

Terracotta roof tiles enhanced thermal performance all production tile waste on siteis recycled or re-used

Hancock Plywood from renewable & sustainableplantations 100% use of resource

Asphalt and Boral recycling road base LoNoise Asphalt for heavily trafficked roads produced fromgranulated recycled tyres recycled aggregates from materials including crushed concrete,re-used in concrete and asphalt

Fly ash (EnviroAgg) andslag (Slagment) 100% re-used by-products

Masonry blocks and pavers Boral FireLight contain 75% by-

product & 5% recycled concrete

Concrete featuring a range of alternatemix designs that utilise recycledaggregates, cementitious waste,recycled & treated water


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Community EngagementCommunity engagement is critical for business continuity; we need tounderstand the views of our stakeholders in our day-to-day operations and development plans and our stakeholders need to understand our priorities

Key issuesDustNoiseTransportDevelopment plansAlternate fuels

CommunicationsCommunity liaisonmeetingsSite visits / open daysLetter box dropsWebsite updatesNewsletters

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Borals Key Community PartnershipsBoral community partnership activities meet at least two of the three elementsof Borals People, Products, Places community partnership framework;benefits are delivered to our community partners and to Boral


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We assess our sustainability performanceusing the Boral Sustainability Diagnostic Tool

Sustainability managementScope of commitmentManagement systems quality, health, safety

and environmentAccountability and performance managementBudgeting and financial managementRisk management new business, plant andequipmentCompliance review and reportingContinuous improvement

Supply chain managementStrategic sourcing and supply chainSales and marketing

Human resourcesCommunications, awareness and training

Employee and labour relationsHealth, safety and wellbeing

Social responsibilityCommunity relations and engagementBusiness ethics and corporate governance

External relations and communicationsEnvironment

Land protection, remediation andrehabilitationEnvironment and ecosystem protectionWaste and resource management, recyclingand re-useEnergy conservation and climate changeWater conservation, extraction and protection

20 Elements of the Boral Sustainability Diagnostic Tool (BSDT)

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In 2007 we broadly achieved a level of performancein line with Industry Specific Best Practice

BSSDT Element # 1 .1 1 .2 1 .3 1 .4 1 .5 1 .6 1 .7 2 .1 2 .2 2 .3 3 .1 3 .2 3 .3 4 .1 4 .2 5 .1 5 .2 5 .3 5 .4 5 .5 Level Div.BoralSharedServices 1.3BoralIT 0.9 1.09ACM Division (National) 1.8ACM Vic/Tas 1.4MetroConcreteVic 1.3MetroQuarriesVic 1.7TransportVic 1.7Asphalt Vic 1.7ResourcesCountryVic 1.4ResourcesTas 1.4Asphalt NSW 2.1CountryCon &QuaNSW 1.2ConcreteMetroNSW 0.9TransportNSW 1.1MetroQuarriesNSW 1.8ACM NSW Concrite 0.8C,Q&TMetroQld 1.2Asphalt Qld 1.8CMGCountryQld 1.7ACM RegionalSA 1.7ACM RegionalWA 1 . 2 1 . 4 7Cement(National) 2.3BCSCAsh NSW 0.9BCSCVic 2.5BCSCNSW 1.5BCSCMaldonNSW 1.6BCSCBerrimaNSW 2.0WindowsNational 1.2ScaffoldingNational 1.3 1.65C&CDivisional 1.1Roofing National 1.3C&CBricksNSW 1.5BricksEastQld 1.3BricksEastVic 1.5MidlandBrickCompany 2.0MasonryQld 2.1MasonryNSW 1.8 1.56PlasterboardQld 1.9PlasterboardVic 1.4PlasterboardNSW/ACT 1.5PlasterboardWA 1.5 1.59Timber National 2.0BoralHancockPlywood 1.4Timber Hardwood 0.9Timber SEPLNSW 1.5 1.46BoralIndustriesInc 1.7Bricks,West and Mid SouthRegion 1.9BoralBricks,EastRegion 2.0BoralBricks,Southeast Region 1.9US Tile 2.0BoralMaterialsTechnolog yInc 1.6 1.83

A ve ra ge L ev el 1 .4 1 .4 1 .6 1 .7 1 .5 1 .5 1 .1 1 .6 1 .5 1 .5 1 .3 1 .9 2 .1 1 .2 1 .7 1 .9 1 .7 1 .6 1 .5 1 .3 1 . 5 5

BSSDT Element # 1 .1 1 .2 1 .3 1 .4 1 .5 1 .6 1 .7 2 .1 2 .2 2 .3 3 .1 3 .2 3 .3 4 .1 4 .2 5 .1 5 .2 5 .3 5 .4 5 .5 Level Div.Boral Ltd(Corporate) 1 . 9 1 . 90ACM Regional NSW 2.2ACM DevBusinessUnit(QEU) 2.1Asphalt NSW 1.7ConcriteNSW 2.0Country Concrete & Quarries NSW 1.7MetroConcrete NSW 2.1MetroQuarries& Recycling NSW 2.1Transport NSW 2.1ACM Regional Qld 2.0ACM Country Qld 1.7Asphalt Qld 2.2MetroConcrete Qld 1.7MetroQuarriesQld 1.9MetroTransportQld 1.8ACM SA/NT 2.0ACM Regional Vic/Tas 2.5Asphalt Vic 2.2Country Concrete & Quarries Vic 2.0MetroConcrete Vic 2.0MetroQuarriesVic 2.2Resources Tas 2.0ACM Regional WA 2 . 0 2 . 00BCSC (National) 2.7BCSC Berrima NSW 2.4BCSC FlyashNSW 2.5BCSC MaldonNSW 2.3BCSC MarulanNSW 1.8BCSC WaurnPonds Vic 2.7Formwork & Scaffolding 1.9Windows National 2 . 03 2 . 28Bricks EastNSW 2.2Bricks EastQld 2.2Bricks EastVic 2.0Masonry NSW 1.8Masonry Qld 1.8Masonry Vic 2.2Masonry &RoofingSA 1.8MidlandBrick Company 2.3RoofingNSW 2.0RoofingQld 2.0TilesVic 1 . 8 2 . 00PlasterboardNSW/ACT 2.4PlasterboardSA 2.0PlasterboardQl d 2.3PlasterboardVic 2.2PlasterboardWA 1 . 9 2 . 16Boral HancockPlywood 2.3Timber Hardwood 2.2Timber SEPLNSW 2 . 0 2 . 13USA -Bri cks West 2.0USA -Bri cks Southeast 2.1USA -BMTI 1.8USA -Bri cks East 2.1USA -USTile 2 . 1 2 . 01

A ve ra ge Le ve l 2 . 0 2 . 0 2 . 1 2 . 1 2 . 0 2 . 1 1 . 8 2 . 0 2 . 5 2 . 2 1 . 9 2 .2 2 .4 1 .8 2 .2 2 .3 1 .9 2 .1 1 .8 1 .8 2.06

BSSDTElement # 1 .1 1 .2 1 .3 1 .4 1 .5 1 .6 1 .7 2 .1 2 . 2 3 . 1 3 . 2 3 . 3 4 . 1 4 . 2 4 .3 5 .1 5 .2 5 .3 5 .4 5 .5 Level Div.Boral Ltd(Corporate) 2.50Procurement 2 . 22 2 . 36ACM Dev BusinessUnit(QEU) 2.63AsphaltNSW 2.50Concrite NSW 2.33CountryConcrete &Quarries NSW 2.60MetroConcrete NSW 2.28MetroQuarries(& Recycling?)NSW 2.58TransportNSW 2.38ACM Country Qld 2.68ACM AsphaltQld 2.70ACM Transport Qld 2.20ACM SEQQuarries 2.65ACM SEQConcrete 2.65ACM Resources SA 2.63AsphaltVic 2.58CountryConcrete &Quarries Vic 1.88MetroConcrete Vic 2.85MetroQuarriesVic 2.70Resources Tas 2.33ACM Regional WA 1 . 95 2 . 48BCSC NSW-Berrima, Maldon 3.08BCSC FlyashNSW 2.88BCSC Minerals Galong & MarulanNSW 2.55BCSC WaurnPonds Vic 3.08Formwork & Scaffolding 2.48WindowsNational 2.60DeMartin& Gasparini 2 . 45 2 . 73Bricks EastNSW 2.55Bricks EastQld 2.88Bricks EastVic 2.83MasonryNSW 2.90MasonryQld 2.98MasonryVic 2.83Masonry& RoofingSA (C& C Central) 2.93MidlandBrick Company 2.95RoofingNSW 2.78RoofingQld 3.08Tiles Vic 2 . 75 2 . 81 *Plasterboard NSW/ACT 3.00Plasterboard SA 2.70Plasterboard Ql d 2.93Plasterboard Vic 2.68Plasterboard WA 2 . 80 2 . 82Boral HancockPlywood 3.00Timber Hardwood 2.75Timber SEPLNSW 2 . 70 2 . 82USA- Bricks 2.38USA- Boral Bricks Direct& Logistics 2.24USA- BMTI 2.61USA- US Tile 2 . 38 2 . 40

A v er a ge L e ve l 2 . 8 0 2 . 6 0 2 . 7 9 2 . 7 5 2 . 72 2 . 8 7 2 . 2 5 2 . 7 1 2 . 7 8 2 . 68 2 . 7 2 2 . 7 6 2 . 4 5 2 . 7 2 2 . 7 2 2 . 65 2 . 47 2 . 6 2 2 . 3 2 2 . 3 5 2.63

2001

2003

2005

2007

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Aust. ConstructionMaterials

Cement

Clay & ConcreteProducts

Level 1Compliance/

Reactive

Level 2Proactive

Level 3Industry Best

Practice

Level 4World Best

Practice

Plasterboard

Timber

USA

Boral average

2007 target

2003 scores 2005 scores2001 scores 2007 scores


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QUESTIONS

APPENDIX


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1990

1995

2005

2007+

2000

Borals sustainability journey

BSSDT Element# 1 . 1 1 . 2 1 . 3 1 . 4 1 . 5 1 . 6 1 . 7 2 .1 2 . 2 2 . 3 3 . 1 3 . 2 3 . 3 4 . 1 4 . 2 5 . 1 5 . 2 5 . 3 5 . 4 5 . 5 L e v e l D i v .BoralShared Servi ces 1.3BoralIT 0.9 1.09ACMDivision (Nati onal) 1.8ACMVic/Tas 1.4MetroConcrete Vi c 1.3MetroQuarries Vic 1.7Transport Vic 1.7AsphaltVic 1.7Resources CountryVi c 1.4Resources Tas 1.4AsphaltNSW 2.1CountryCon &Qua NSW 1.2Concrete Metro NSW 0.9Transport NSW 1.1MetroQuarries NSW 1.8ACMNSWConcrite 0.8C,Q&T Metro Qld 1.2AsphaltQld 1.8CMG CountryQl d 1.7ACMRegionalSA 1.7ACMRegionalWA 1.2 1 . 47Cement (National) 2.3BCSC Ash NSW 0.9BCSC Vic 2.5BCSC NSW 1.5BCSC Maldon NSW 1.6BCSC Berrima NSW 2.0Windows National 1.2Scaffolding National 1.3 1 . 65C&CDivisional 1.1Roofing Nati onal 1.3C&CBricks NSW 1.5Bricks East Qld 1.3Bricks East Vic 1.5Midland BrickCompany 2.0MasonryQld 2.1MasonryNSW 1.8 1.56Plasterboard Qld 1.9Plasterboard Vic 1.4Plasterboard NSW/ACT 1.5Plasterboard WA 1.5 1 . 59Timber National 2.0BoralHancockPlywood 1.4Timber Hardwood 0.9Timber SEPL NSW 1.5 1.46BoralIndustriesI nc 1.7Bricks,West and Mid South Region 1.9BoralBricks,EastRegion 2.0BoralBricks,Southeast Region 1.9USTile 2.0BoralMaterialsTechnology Inc 1.6 1.83

A v er a ge L e ve l 1 . 4 1 . 4 1 . 6 1 . 7 1 . 5 1 . 5 1 . 1 1 . 6 1 . 5 1 . 5 1 . 3 1 . 9 2 . 1 1 . 2 1 . 7 1 . 9 1 . 7 1 . 6 1 . 5 1 . 3 1 . 5 5

BSSDT Element # 1 . 1 1 . 2 1 . 3 1 . 4 1 . 5 1 . 6 1 . 7 2 . 1 2 . 2 2 . 3 3 . 1 3 . 2 3 . 3 4 . 1 4 . 2 5 . 1 5 . 2 5 . 3 5 . 4 5 .5 L e v e l D i v .BoralLtd (Corpor ate) 1.9 1.90ACMRegionalNSW 2.2ACMDev BusinessUnit(QEU) 2.1AsphaltNSW 1.7Concrite NSW 2.0CountryConcrete&QuarriesNSW 1.7MetroConcrete NSW 2.1MetroQuar ries&Recycling NSW 2.1Tr ansportNSW 2.1ACMRegionalQld 2.0ACMCountryQld 1.7AsphaltQld 2.2MetroConcrete Qld 1.7MetroQuar riesQld 1.9MetroTr ansportQld 1.8ACMSA/NT 2.0ACMRegionalVic/Tas 2.5AsphaltVic 2.2CountryConcrete&QuarriesVic 2.0MetroConcrete Vic 2.0MetroQuar riesVic 2.2ResourcesTas 2.0ACMRegionalWA 2.0 2.00BCSC(National) 2.7BCSCBerrimaNSW 2.4BCSCFlyash NSW 2.5BCSCMaldon NSW 2.3BCSCMar ulanNSW 1.8BCSCWaurnPonds Vic 2.7Formwork&Scaffoldi ng 1.9WindowsNational 2 . 03 2 .28BricksEast NSW 2.2BricksEast Qld 2.2BricksEast Vic 2.0Masonr y NSW 1.8Masonr y Qld 1.8Masonr y Vic 2.2Masonr y &Roofing SA 1.8Midland Brick Company 2.3RoofingNSW 2.0RoofingQld 2.0Tiles Vic 1.8 2.00Plasterboard NSW/ACT 2.4Plasterboard SA 2.0Plasterboard Qld 2.3Plasterboard Vic 2.2Plasterboard WA 1.9 2.16BoralHancockPlywood 2.3TimberHardwood 2.2TimberSEPLNSW 2.0 2.13USA-BricksWest 2.0USA-BricksSoutheast 2.1USA-BMTI 1.8USA-BricksEast 2.1USA-US Tile 2.1 2.01

A v er a ge L e ve l 2 . 0 2 . 0 2 . 1 2 . 1 2 . 0 2 . 1 1 . 8 2 . 0 2 . 5 2 . 2 1 . 9 2 . 2 2 . 4 1 . 8 2 . 2 2 . 3 1 . 9 2 . 1 1 . 8 1 . 82.06

BSSDT Element # 1 . 1 1 . 2 1 .3 1 . 4 1 . 5 1 . 6 1 .7 2 . 1 2 . 2 3 . 1 3 .2 3 . 3 4 . 1 4 . 2 4 . 3 5 . 1 5 . 2 5 . 3 5 . 4 5 . 5 Level Div.BoralLtd(Corporate) 2.50Procurement 2 . 2 2 2 . 3 6ACM DevBusiness Unit (QEU) 2.63AsphaltNSW 2.50ConcriteNSW 2.33CountryConcrete &Quarri esNSW 2.60Metro Concrete NSW 2.28Metro Quarri es (&Recycli ng?) NSW 2.58Transpor t NSW 2.38ACM CountryQl d 2.68ACM Asphalt Qld 2.70ACM TransportQl d 2.20ACM SEQ Quarr ies 2.65ACM SEQ Concrete 2.65ACM ResourcesSA 2.63AsphaltVic 2.58CountryConcrete &Quarri esVic 1.88Metro Concrete Vic 2.85Metro Quarri es Vic 2.70Resour ces Tas 2.33ACM RegionalWA 1 . 9 5 2 . 4 8BCSC NSW-Berrima,Maldon 3.08BCSC Flyash NSW 2.88BCSC MineralsGalong & MarulanNSW 2.55BCSC Waurn PondsVic 3.08Formwork&Scaffolding 2.48WindowsNational 2.60De Martin&Gasparini 2 . 4 5 2 . 7 3Bricks EastNSW 2.55Bricks EastQld 2.88Bricks EastVic 2.83MasonryNSW 2.90MasonryQld 2.98MasonryVic 2.83Masonry& Roof ingSA(C&CCentral) 2.93Midland Br ick Company 2.95Roof ing NSW 2.78Roof ing Ql d 3.08TilesVic 2 . 7 5 2 . 8 1 *PlasterboardNSW/ACT 3.00PlasterboardSA 2.70PlasterboardQld 2.93PlasterboardVic 2.68PlasterboardWA 2 . 8 0 2 . 8 2BoralHancockPlywood 3.00Timber Hardwood 2.75Timber SEPL NSW 2 . 7 0 2 . 8 2USA- Bricks 2.38USA- Boral Bri cks Direct &Logistics 2.24USA- BMTI 2.61USA- USTile 2 . 3 8 2 . 4 0

AverageLevel2.80 2. 6 0 2 . 7 9 2 . 7 5 2 . 7 2 2 . 8 7 2 . 2 5 2 . 7 1 2 . 7 8 2 . 6 8 2 . 7 2 2 . 7 6 2 . 4 5 2 . 7 2 2 . 7 2 2 . 6 5 2 . 4 7 2 . 6 2 2 . 3 2 2 . 3 5 2.63

20012003

2005

20042005 2006

Policy formulation / reviewSite surveys, reviews, plansPrioritised corporate audits / action plansProfessional development programPromotion of local management systemsdevelopmentSuccession planningEnhanced corporate reportingTraining at all levelsAcquisition / divestment auditsManagement GuidelinesCommunity partnership frameworkSustainability / BSDT focusDivisional Environmental Strategic PlansBWell ProgramIndigenous workplace programSustainability reporting / carbon disclosureproject

Climate Change Technical Working Group(incl. Greenhouse targets / processes)

Management Guidelines

2007

2007

20042007

200019991997

Sustainability Reports

Boral Sustainability Diagnostic Tool (BSDT)

22

1997

2007+

Boral has actively participated in voluntary schemes for over 10 years

Energy use andgreenhouse gas emissions

Boral, as part of Cement Industry (CIF) sets GreenhouseChallenge Plus (GCP) targets with Federal Government

Boral receives SEDA Energy Smart Business gold award

Boral signs up to GCP Program as stand-alone company

Borals 20 largest sites participating in Federal GovernmentsEnergy Efficiency Opportunities program

Boral participates in Carbon Disclosure Project andrecognised as a Climate Change Leader

Internal Climate Change Technical Working Group established

Boral becomes first company to create Large User AbatementCertificates under NSW GHG Reduction Scheme (GGAS)

Firming up historical base year data, developing abatementcost curve and striving to reduce emissions / unit basis


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Member of the FTSE4Good Index

Carbon Disclosure Project (CDP5)Climate Change Leader

Gold Star performer in theCorporate Responsibility Index

Storebrand Investment Best in Class

2007 Australian Sustainability AwardsSpecial Award for Corporate Governance

EOWA Employer of Choice for Women

Climate Action Leader (California)

Boral is being recognised as an industry leader

Why Corporate Sustainability is Important to Boral Rod Pearse CEO

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