LafargeHolcim ranked first in ESG Risk Ratings
Company comes top in Sustainalytics' ESG Risk Rating in the construction materials sector
OF all 101 construction materials companies analysed by Sustainalytics, a global leader in environmental, social and governance (ESG) risks and corporate governance research and ratings, LafargeHolcim ranked first in this year’s ESG Risk Ratings.
The company was also in the top 20% of all 12,000 companies assessed across all sectors.
LafargeHolcim’s chief sustainability officer, Magali Anderson, said: ‘We are very proud of this industry-leading ESG ranking. It positions us 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 encouraged to keep on raising the bar to further accelerate the transition to sustainable construction.’
Chief financial officer Géraldine Picaud added: ‘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 programmes embedded across our growth strategy, this rating further confirms our commitment to be a responsible investment of choice.
‘We are leading the way in sustainable construction, as evidenced by our allocation of more than 50% of our R&D resources to low-carbon solutions.’
The Sustainalytics report states that LafargeHolcim are at low risk of experiencing material financial impacts from ESG factors due to their strong management of material ESG issues.
The company is especially recognized for its strong corporate governance performance and its improvement across all seven of the material ESG issues and corporate governance factors that were analysed.
According to the report, LafargeHolcim’s strongest areas of ESG risk management are their global business ethics programmes, their broad range of sustainable products and services, and their responsible use of resources, notably in terms of water management.
The company’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 have been upgraded to ‘Prime’ status in the ISS ESG Corporate Rating issued in April 2020. Consequently, the company’s tradeable bonds and shares meet responsible investment criteria.