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The Financial Express

LafargeHolcim tops Sustainalytics ESG Rating in construction materials sector

FE DESK REPORT | Published: June 06, 2020 10:24:56 | Updated: June 08, 2020 10:35:49


LafargeHolcim tops Sustainalytics ESG Rating in construction materials sector

Sustainalytics, a global leader in environmental, social and governance risks (ESG) and Corporate Governance research and ratings, published its latest LafargeHolcim ESG Risk Rating.

Of all 101 construction materials companies analyzed, LafargeHolcim rated first. The company was also in the top 20% of all 12,000 companies assessed across all sectors, said a statement.

Magali Anderson, Chief Sustainability Officer: "We are very proud of this industry-leading ESG ranking. It positions LafargeHolcim as the number one construction materials company within Sustainalytics' ESG Risk Rating, as well as the very first to rank below 20 in its "low risk" category. We are proud of the results of this assessment and are encouraged to keep on raising the bar to further accelerate the transition to sustainable construction".

GéraldinePicaud, Chief Financial Officer: "This number one ESG rating within our industry by Sustainalytics is a clear sign of the resilience and long-term focus of our business. With ESG programs embedded across our growth strategy, this rating further confirms our commitment to being a responsible investment of choice. We are leading the way in sustainable construction, as evidenced by our allocation of over 50% of our R&D resources to low-carbon solutions."

The Sustainalytics report states that the company is at low risk of experiencing material financial impacts from ESG factors due to its strong management of material ESG issues. The company is especially recognised for its strong corporate governance performance and its improvement across all seven of the material ESG issues and corporate governance factors that were analyzed. According to the report, LafargeHolcim's strongest areas of ESG risk management are its global business ethics programs, its broad range of sustainable products & services and its responsible use of resources, notably in terms of water management.

LafargeHolcim's ESG Risk Rating score for 2020 is 19.5 on a scale from 0-100 with 0 indicating negligible ESG risk. Sustainalytics' ESG Risk Ratings are categorized across five risk levels: negligible, low, medium, high and severe.

Additionally, LafargeHolcim has been upgraded in the ISS ESG Corporate Rating issued in April 2020 to "Prime" status. This status is awarded to companies which fulfil ambitious absolute performance requirements and achieve a high ESG performance in their sector. Consequently the company's tradeable bonds and shares meet responsible investment criteria.

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