Lafarge Canada

SUSTAINABILITY AND INNOVATION IN CONSTRUCTION

LAFARGE CANADA

The Building Blocks of Business 2 | North America Outlook issue 01

CONSTRUCTION Outlook interviewed Robert Cumming, Director of Environment, and David Redfern, CEO of Lafarge Eastern Canada for a closer look at how the company is making sustainability a core component of its operations Writer: Marcus Kääpä | Project Manager: Tom Cullum

C

onstruction has always been at the center of civilization and urban planning—that is, for as long as humans have had buildings to build.

From the first wooden forts and lookout towers, to motte-and-bailey castles, and the Great Pyramids of Giza, construction has served as the building blocks of civilizations.

And with the unique and innovative designs of the Roman Empire, with grand structures such as the Colosseum and aqueducts, the world saw its first use of an early form of cement en masse.

Today, cement, concrete and other materials dominate the construction industry as primary materials for buildings, bridges, walkways, roads, paths, and a multitude of other structures all over the globe. There is more concrete sold per year than all other building materials combined.

And in Canada, the construction industry has undergone a dramatic change. Due to a mixture of rapidly evolving innovations, a global focus on sustainability, and recent challenges posed by the ongoing COVID-19 pandemic, Canadian construction has renewed itself to align with an ever-advancing sector.

“We’ll look back on this time period in 10 years and recognize that the industry was going through a huge shift – the biggest changes in the building materials sector in over 100 years,” begins David Redfern, CEO of Lafarge Eastern Canada.

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LAFARGE CANADA “The change won’t happen if we act alone. We must change the ‘tragedy of the commons’ into ‘the power of the commons,’. To do so, we need to activate a framework of partners with

governments, developers, NGOs and businesses to act interdependently and to collectively drive a sustainability-focused mindset in our shared-resource system.”

AN INSIGHT INTO OPERATIONS With 6,000 employees and 400 sites across Canada, the company’s mission is to provide construction solutions that build better cities and communities. From cement and aggregates, to ready-mix and precast concrete as well as asphalt, paving and construction, Lafarge Canada brings value to every project.

“In Eastern Canada, we have three main product lines—Cement, Ready-Mix and Aggregates—in addition to our Geocycle business that focuses on waste management solutions. Together, all four are vertically integrated; where Geocycle supplies fuel and raw materials, derived from by-products, to our cement manufacturing plants, and our cement and aggregates are then used to produce our ready-mix concrete products,” explains Cumming.

“Cement and cement alternatives are produced at seven locations in Ontario, Quebec, and Nova Scotia, and shipped to terminals and to ready mix concrete plants by ship, rail, and truck.

“We produce multiple types of cement and concrete blends with differing performance capabilities. Many of our concrete products include by-products from the power and steel sectors and are used in proprietary blends to produce cements with enhanced properties,” he adds.

The company also operates around 120 aggregate quarries and sand pits.

Here too, circularity has a role such as a specialty program through which excess soils from construction sites are conserved and used to rehabilitate land in and around the company’s quarries using industry leading quality protocols. Lafarge also recycles over one million tonnes of demolition concrete per year into a specialized product called Aggneo.

Lafarge Canada has around 80 ready-mix plants that combine aggregates and cement mixes – and water is added – to produce ready-mix concrete which is delivered swiftly to various construction sites. In doing so, the firm is also a large transportation company and operates a fleet of nearly 800 ready-mix delivery trucks.

Geocycle is a subsidiary of Lafarge and specializes in finding industrial by-products that can be recycled into the company’s cement plants, and processing and diverting waste materials from landfills to cement plants to replace coal and petcoke in the manufacturing of cement.

Robert Cumming, Director of Environment for Lafarge Canada

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Lafarge Canada is the largest Canadian provider of diversified construction materials, as well as being a member of the global group and brand, LafargeHolcim.

The company’s Canadian entity is split into the two divisions: Eastern and Western Canada, and functions as a materials supplier while engaging in construction streams such as buildings and housing, infrastructure, energy, and mining. The company prides itself on providing time, cost, performance, innovation, and sustainability benefits to its customers’ projects.

Having worked for Lafarge for over twenty years, Redfern has witnessed first-hand recent industry developments and has had the honour of helping the company further its aims and reach new goals. Robert Cumming, Director of Environment for Lafarge Canada, agrees.

“Sustainable construction is the way forward, and Lafarge is definitely headed in the right direction,” he tells us.

After completing his chemical engineering degree in 1989, Cumming worked in an engineering firm, and during a part time master’s in environmental engineering he developed a passion for the promotion and preservation of sustainability and the environment.

Cumming then joined an environmental services company where he learned the importance of the relationships with stakeholders, partnerships, environmental management systems, and how to increase profits through sustainable thinking.

“Long before sustainability was a widely established goal, I knew that I wanted to focus on making a lighter environmental footprint from within the industrial sector – and to do so efficiently, effectively, and profitably,” Cumming says.

“In 2004 I joined Lafarge Canada just as the company was embarking

Building a world that works for people and the planet

Our building blocks to net zero We are taking a renewed approach on our journey to net zero carbon emissions; from shaping the plants of tomorrow with automation and artificial intelligence to accelerating green solutions such as ECOPact green concrete.

By 2030, LafargeHolcim will: • • • • • •

Accelerate the use of low carbon and circular products such as ECOPact and Aggneo Recycle 100m tons of waste and byproducts for energy and raw materials Be a positive force for water conservation around the world Double waste-derived fuels in production to reach 37% Reach 475 kg net CO2 per ton of cementitious material (net CO2/t.cem) Operate its first net zero CO2 cement production facility

www.lafarge.ca

Lafarge Canada is a member of the global group LafargeHolcim

LAFARGE CANADA

PRODUCTS AND SERVICES Lafarge’s solutions for buildings, roads and homes draw on all its product lines. The cities where Canadians live, work, and raise their families along with the community’s infrastructure benefit from the solutions provided by Lafarge.

“Whether the goal is to build durably, aesthetically, quickly (or all three), we bring innovations like Agilia® self-consolidating concrete, DuraCycle™ asphalt engineered with recycled materials, NewCem Plus™ low carbon cement and now ECOPact Green Concrete to the table,” Redfern tells us.

List of services: • Aggregates • Asphalt • Cement • Concrete products • Concrete ready-mix • Construction • Services • Remote site solutions • Ductal

David Redfern, CEO

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on a circular economy program to repurpose waste materials into fuels.

Construction and demolition are mirror images and lend themselves well to circularity.”

SUSTAINABLE CEMENT SOLUTIONS Indeed, CEO Redfern and Lafarge Canada attribute the firm’s longstanding success and reputation to three key factors: innovation, peoplecentricity and, critically, sustainability.

With the aim of taking serious actions towards increased sustainability, Lafarge signed a Net Zero Pledge with science-based targets as of September 2020. Having joined the Science Based Targets initiative (SBTi), LafargeHolcim is the first international building materials company to sign the “Business Ambition for 1.5°C” in line with the net zero pathway aim.

A part of this is its 2030 goals that include lowering its target for CO2 in cement production to 475 kilogrammes per ton and, as of signing the pledge, partnering with SBTi to develop an active plan for aligning climate targets to a 1.5°C future in the sector – paving the way for a greener industry.

“It has been an important priority for our company, especially in recent years.

The appointment of our Chief Sustainability Officer, Magali Anderson at the LafargeHolcim level, clearly signalled that sustainability is now a central theme to our company’s growth strategy,” Redfern elaborates.

“With 60 percent of the world’s 2050 infrastructure needs not being built yet, and the simultaneous global imperative to reach net-zero carbon emissions in all walks of life, we see this as an immense opportunity for growth – rewarding our shareholders, our employees, our neighbours, and of course our customers.”

Earlier this year Lafarge mapped out the firm’s decarbonization strategy and moved an extra step forward to ensure its 2030 goal and plans were certified by science-based targets.

This was to signal to company stakeholders that environmental aims such as decarbonization are true business aims, not simply aspirational goals without a business case attached to them.

To support this, Lafarge ensures that over 55 percent of its research, conducted by its Lyon, France Labs – the world’s largest building materials laboratory – is focused on issues surrounding climate solutions within the industry.

“We are replacing our fossil fuels with low carbon fuels thus avoiding their landfilling (or incineration) and the associated greenhouse gases,” Cumming adds. “On top of this, the company is innovating with advanced cement blends further integrating steel and electricity production by-products, investing in energy efficiency, and demonstrating novel carbon capture and utilization technologies with partners.

“We are also working with our customers and governments to move towards lower carbon procurement and supporting the metrics and performance standards needed to facilitate this. For example, in early 2021, the Canadian Standards Association (CSA) in conjunction with the American Society for Testing & Materials (ASTM) will publish the CarbonStar standard which will allow a consistent means of measuring carbon content in a cubic meter or cubic yard of concrete,” concludes Redfern.

Lafarge Canada has also launched the ECOPact product line consisting of low-carbon concrete product offers. This will enable customers to choose lower carbon, greener options that are more financially viable, and suit their specific needs.

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‘LAFARGE IS ONE COMPANY FOCUSED ON POSITIVE WHOLESOME INDUSTRY IMPACTS, WITH A PROGRESSIVE ATTITUDE TOWARDS ADVANCING BUSINESS, PEOPLE, AND THE ENVIRONMENT’ Lafarge Eastern Canada already recycles two million metric tons of industrial and commercial by-products annually, and the national company is eager to carry out its five international carbon capture pilot projects, including CO2Ment – a project focused around capturing industry greenhouse gases and recycling them into lowcarbon fuels for the Western Canada business unit.

Aside from Lafarge’s progressive sustainability story, the firm is equally determined on being a peoplecentric organization that ensures its employees are proud of and enjoy their work, assuring quality results for its customers, and engaging with the wider community.

“We have a wide array of sponsorships and partnerships with local community leaders. From product donations for the University of Dalhousie’s Engineering Building,

sponsorship of NGO conferences, donations to various community organizations, and even small hyperlocal donations like the Angel Tree Gifts for Kids, in the village of Bath, Ontario,” Cumming tells us.

Engaging with local communities is not only a positive company aim, but also a necessity. With a product like concrete which only takes a few hours of transport time before it sets, the firm’s concrete plants must be strategically located close to markets.

Given transportation costs the aggregate quarries must also be close to the concrete plant - transportation networks are critical to success.

Indeed, Lafarge is one company focused on positive wholesome industry impacts, with a progressive attitude towards advancing business, people, and the environment.

Redfern’s leadership embodies these principles.

“I’ve been with Lafarge for over 20 years, having started as a Supply Chain Manager in 2000. Over those years, I have risen through a multitude of positions spanning many areas of the firm, CEO Redfern explains.

From supply chain, to sales and marketing, to Group Vice President Aggregate Performance Topline, in Paris – where he oversaw the global commercial aggregate product line with operations in 22 countries, strategic assessments, innovation and product development, and team growth – Redfern has placed a great importance on progression and company values.

As CEO, David is now utilizing his position, experience, and expertise in the industry to help enact the innovative, people-centric, and sustainable continuation of Lafarge into a new decade.

INCORPORATING INNOVATION The other standout factor, as stated by Redfern, is innovation.

Using the most innovative methods and practices in the construction industry is the key to North America Outlook issue 01 | 7

LAFARGE CANADA staying above and apart from the industry competition, and Lafarge incorporates the latest practices into serving its customers to provide the best possible products and experience.

Critical to this is an engaged and highly valued workforce - that is, having the right people, with the right skills, and the right motivation.

“Our company stands out from its industry peers because of our employees,” Redfern says. “Our people are the key to building our firm’s relationships with end-users, communities and customers.

They ensure that our partners and community have a memorable experience when dealing with Lafarge, and they themselves believe in and stand behind our products.

“It is because of our employees that our entire brand continues to expand into new products and markets, and consequently thrive.”

The firm ensures that it holds onto the tenants of a people-centric business. One example is through its Employee Value Proposition, making it a place where safety comes first – the foundation block upon which all else is built.

The proposition also assures that assignments encompass the company’s performance culture, and leadership and career advancements provide empowerment, autonomy, and opportunities to crosscollaborate. It also offers online learning platforms to allow employees to learn at their own speed while also expanding their knowledge and personal toolkit to further their careers.

The Lafarge Leadership Development Program (LLDP) is an 18-months to two-year internship program for bright new graduates to develop their leadership skills while learning on the job.

“It instils a well-rounded understanding of the construction materials industry while reinforcing 8 | North America Outlook issue 01

THE SIX PILLARS “Our mission as the most advanced company in the building materials industry is to provide what really matters to our customers and end-users.

To meet these needs, we have established six strategic goals.”

1. Create an attractive environment for our people: People are at the heart of LafargeHolcim’s business success. Therefore, we intend to create an attractive work environment for our people. We are committed to offering individuals and teams unique opportunities to grow, contribute and engage to their fullest potential, and recognizing and rewarding remarkable contributions.

2. Engage our resources for best returns and cash generation: For Lafarge, this means pro-active management of our portfolio, disciplined capital allocation and selective pursuit of attractive growth opportunities, so as to generate superior sustainable financial returns on our capital employed and cash generation.

3. Serve the building needs of individuals and retail customers: Finding the most effective ways to bring our products to those who sell and use them through best-in-class go-to-market models and world-class branding and customer experience. In short, build better cities.

4. Be the preferred partner for building and infrastructure: An in-depth understanding of end-users and ecosystems in which projects will be implemented is crucial. We also believe in early involvement, innovative value-adding solutions and excellent project delivery to make a difference.

5. Achieve operational excellence through continuous improvement: To create value, we deliver cost leadership, we implement the most advanced operating models across all product lines, and we make an optimal use of our capital and resources, while leading our operations in a safe way.

We intend to capitalize on our professional teams, assets, technologies, innovation in industrial operations, and strong operating models to replicate best practices across the business in all geographic markets.

6. Create shared value with society: We will create shared value with society through distinctive and sustainable solutions and the best possible sustainability footprint.

“OUR MISSION AS THE MOST ADVANCED COMPANY IN THE BUILDING MATERIALS INDUSTRY IS TO PROVIDE WHAT REALLY MATTERS TO OUR CUSTOMERS AND END-USERS” – ROBERT CUMMING

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fundamental leadership principles and practices,” says Redfern. “We ensure that we develop a skilled workforce focused on finding sustainability solutions and innovative ways to do things for our customers. Our program is a key element of our Eastern Canada Employee Value Proposition and we are proud to say that we’ve been recognized as part of Canada’s Top Employers for Young People.”

“David Redfern, CEO Lafarge Eastern Canada, has signed a UN declaration with an extensive array of programs to attract and retain women in our organization and industry. We have also been awarded a place in Canada’s Best Diversity Employers awards.”

When it comes to product innovation, Lafarge is very much an industry protagonist.

“We have developed a robust capability of providing cement and concrete blends that offer superior performance for our customers (for example, set time, strength, and workability), as well as being made with more sustainable methods,” Cumming chimes in.

“Through the ECOPact product line, we are providing an important and additional dimension of carbon content

to our product range. This is alongside another very promising range of next generation technological development – mineralization technologies.

“What is not often known about concrete is that if it is crushed and exposed to air it will naturally absorb CO2. This is the opposite of the chemical reaction in cement plants, wherein limestone is heated to form lime and CO2. The exciting prospect exists to someday manufacture limestone aggregates from calcium and CO2 and replace virgin aggregate in concrete mixes such that the concrete becomes carbon negative.”

The firm is currently investigating such technological developments in the sector, and optimism remains for the potential for this kind of technology to become fully commercialized in the near future.

Such innovations are indicative of Lafarge Canada’s progressive plans for the future.

In Eastern Canada, the goal is to reduce its current kilograms of CO2 per ton of cement to below the global company’s 2030 goal of 475 by 2025, five years early. The firm aims to reduce this even further by 2030.

The company also plans to increase its sustainability solutions as a share of its annual earnings, for example through its new low carbon cement and concrete products and finding new ways for its products to be used in meeting environmental imperatives.

In addition to this, last month LafargeHolcim reaffirmed its commitment to reaching its CO2 reduction goals by 2030 through the launch of its first-ever sustainabilitylinked bond. The bond is an industry first and also, a testament to LafargeHolcim’s leadership position in paving the way forward.

“Lafarge and our employees’ purpose, in collaboration with our partners in government, research and business is to build better cities. These goals are our commitment to make that happen.”

Redfern concludes optimistically.

LAFARGE CANADA Eastern Canada: Tel: (905) 738-7070 Western Canada: Tel: (403) 225-5400 www.lafarge.ca

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LAFARGE CANADA Eastern Canada 6509 Airport Road Mississauga, Ontario L4V 1S7

Western Canada #300 115 Quarry Park Road SE Calgary, Alberta T2C 5G9

Tel: (905) 738-7070

Tel: (403) 225-5400

www.lafarge.ca PRODUCED BY NORTH AMERICA OUTLOOK MAGAZINE