CRH : Sustainability Performance Report 2023

Solutions for a Sustainable Future

CRH 2023 Sustainability Performance Report

Contents

Sustainable Leadership

2023 Performance Highlights

A Message from our Chief Executive

At a Glance

Driving Sustainable Value

A Message from our Chief Sustainability Officer

Our World Today

Our Purpose

Our Framework for a Sustainable Future

Our Double Materiality Assessment

Sustainable Solutions

Circularity24

Sustainable Foundations

Natural World41

Biodiversity42

Environmental Action45

People and Communities48

Safety and Well-Being49

Inclusion and Diversity54

Empowered Employees57

Community and Social Impact61

Responsible Business64

Governance and Ethics65

Responsible Sourcing72

Sustainable Performance

Our Sustainability Policies

Reporting History, Scope and Basis

Data Summary

SASB

GRI Index

DNV Assurance Statement

External Benchmarks and Recognitions

Our report has been independently assured every year since 2005.

Sustainable Leadership » Performance Highlights

2023 Performance Highlights

We embed sustainability into all aspects of our business.

In 2023, we continued to make progress in advancing our integrated solutions model to help solve the global challenges of water, circularity, and decarbonization, as well as building on our strong sustainability foundations.

• 1 Products with enhanced sustainability attributes included products that incorporate any, or a combination of, recycled materials; are produced using alternative energy and fuel sources; have a lower carbon footprint as compared to those produced using traditional manufacturing processes; and/or are designed to specifically benefit the environment (i.e. water treatment and management systems, products with strong thermal mass/U-values).

• 2 Scope 1 and 2 CO2e emissions (kg/$ revenue). CO2e emissions subject to final verification under the European Union Emissions Trading System (EU ETS).

• 3 Total scope 1, 2 and 3 CO2e emissions (million tonnes). CO2e emissions subject to final verification under the European Union Emissions Trading System (EU ETS).

A Message from our Chief Executive

"The nature of construction and the needs of our customers and society are changing, driven by the need to build more sustainably. We recognize the importance of continuing to embed sustainability into all aspects of our business and we believe the transition to a more sustainable built environment is a significant commercial opportunity for CRH."

Another Year of Progress

In 2023, CRH successfully completed the transition of its primary stock market listing to the New York Stock Exchange. We believe that this is an important step which will allow our business to fully participate in the significant growth opportunities that lie ahead. Underpinned by substantial funding programs and regulatory policies in our key markets, we will continue to accelerate our successful integrated solutions strategy and capitalize on the increasing demand for more sustainable solutions. Following extensive consultation, we have identified three complex challenges for society and the built environment - water, circularity, and decarbonization. CRH is well positioned to provide the solutions to help solve these challenges, while advancing sustainability strategies and actions across our own business.

Delivering more Sustainable Solutions

In 2023, we further expanded our water infrastructure business, including the acquisition of Hydro International, to provide our customers with enhanced clean, waste and storm water management solutions to improve the resilience of communities. Through our venturing arm, CRH Ventures, we have launched an accelerator program for Water Solutions that has enabled us to identify and work with key innovative technologies that address water challenges. Across our business, we have also recycled almost 44 million tonnes of by-products and wastes from other industries into new circular solutions, reinforcing our position as the largest recycler in North America.

We also continued to make progress on our target to deliver a 30% reduction in absolute carbon emissions by 2030, keeping us on the path to achieving our ambition of becoming a net-zero business by 2050. We reduced our Scope 1 and Scope 2 CO2e emissions by 8% in 2023, and the Science Based Targets initiative (SBTi) validated our 2030 emissions reduction targets to be in line with a 1.5°C trajectory1.

Albert Manifold, Chief Executive

Accelerating Innovation through Collaboration

CRH has a strong track record of innovation aimed at solving our customers' complex construction problems, and making construction simpler, safer, and more sustainable. Through our $250 million Venturing and Innovation Fund, our Innovation Center for Sustainable Construction (iCSC), and CRH Ventures, we are building a pipeline of new business models and end-to-end solutions.

Our customer-centric approach to innovation gives CRH the ability to leverage the benefits of emerging technologies, including automation, artificial intelligence, and smart infrastructure. We have also partnered with industry leaders Shell, Volvo, Caterpillar, and others, to accelerate innovation in critical areas, such as decarbonization and transport.

Protecting our People

We continue to keep the safety and well-being of our people as our utmost priority and provide our teams with the training and resources needed to help ensure that everyone who works in CRH returns home safely to their families at the end of the working day. Regrettably, despite our efforts, there were four reportable fatalities in 2023. Our thoughts are with the families and colleagues of each one, and we will continue to do everything in our power to reach our target of zero harm and zero fatalities.

Fostering our Culture

Our industry-leading financial performance and ability to deliver superior value for our customers is testament to the continued hard work, commitment, and expertise of our employees. We have continued to develop our culture, talent, and diverse workforce and made further progress on building a more inclusive CRH in 2023.

1

The SBTi's Target Validation Team has determined that CRH's target ambition for Scope 1 and Scope 2, as well as Scope 3 for purchased clinker and cement, is in line with a 1.5°C trajectory.

A Message from our Chief Executive

Continued

Looking Forward

As we move into 2024, the Board's designated Safety, Environment and Social Responsibility (SESR) Committee will continue to receive regular updates as part of its oversight of CRH's sustainability and climate-related targets, actions, and performance. We will keep advancing on our strong sustainability foundations, enhancing our value-driven solutions, and adding new capabilities for growth.

By building a deep understanding of our customers' needs and utilizing our entrepreneurial mindset, we will continue to drive growth and value through our solutions that help society and the built environment overcome the greatest challenges of our time.

Sustainable Leadership » At a Glance

At a Glance

Leading the transition to smarter, more sustainable construction to help reinvent the way our world is built.

CRH reimagines and reinvents new ways to build, connect, and improve our world. Employing approximately 78,500 people at 3,390 operating locations in 29 countries, CRH is a fully integrated building solutions provider, with market leadership positions in both North America and Europe. Ranked among sector leaders by Environmental, Social and Governance (ESG) rating agencies, CRH's building materials solutions play an important role in shaping a more sustainable built environment.

• #1 Aggregates - North America

• #1 Asphalt - North America

• #1 Concrete Products - North America and Europe

#3

Readymixed Concrete - North America

#3 Cement - North America and Europe

1 Market leadership positions are based on annualized sales volumes.

This includes volumes which are used internally (e.g. aggregates supplied internally for cement production).

Examples of our Fully Integrated Solutions Strategy in Action

CRH's differentiated strategy captures value across the supply chain, optimizing profits, cash, and returns for shareholders.

Essential MaterialsProducts and ServicesComplete End-to-End Solutions for our Customers

• 2 Represents a non-GAAP measure - see pages100-101.

• 3 Operating cash flow refers to net cash provided by operating activities - see pages100-101.

Sustainable Leadership » Driving Sustainable Value

Driving Sustainable Value

We believe the transition to a more sustainable built environment is a significant commercial opportunity for CRH.

Sustainable Leadership » A Message from our CSO

A Message from our Chief Sustainability Officer

As CRH's new Chief Sustainability Officer, I am immensely honored to be leading the implementation of sustainability strategies in an organization whose building materials solutions are playing a key role in shaping a more sustainable built environment.

I have been learning about our businesses, our customers, our challenges, and our collective opportunities. Every CRH site visit has reinforced for me the passion and commitment of our people. I am particularly proud of my colleagues' drive and diligence to deliver our sustainability ambitions. The operational excellence and innovation in our operating companies is inspiring and this is integral to helping us deliver the solutions to bring about a more sustainable, net-zero future.

Our world is more complex than ever. With a rapidly growing population, demands on resources and impacts of climate change, society must move quickly to provide the sustainable and resilient buildings and utilities, such as clean water, affordable energy, transportation, and telecommunications, that are essential for modern life. We believe the increasing demand for more sustainable solutions is a significant opportunity.

"CRH is providing solutions to help our customers solve the global challenges of water, circularity and decarbonization."

We are innovating to develop new technologies to give access to drinking water and to better manage stormwater for millions of homes and businesses. We are also driving advancements in circularity, reducing our own waste, recycling other companies' waste, and designing solutions that are built to last.

In 2023, I attended the United Nations Conference of Parties (COP28) in Dubai. COP28 accentuated the importance of coordinated and collective action in support of the Paris Agreement on climate change. At CRH, we are demonstrating leadership through our actions to deliver our 2030 absolute carbon reduction target which keeps us on a trajectory towards becoming a net-zero business by 2050.

"CRH is a global company with a local heart. We are striving to have a positive impact on the natural world, help our people and communities to thrive and stand out as a responsible business."

Our workforce and the communities in which they live are at the very center of CRH. We are prioritizing and investing in their safety, well-being, and continuous development.

We have made strong progress toward our sustainability goals in 2023, but there is much more to do. Guided by our purpose and values, I am incredibly proud that through collaboration, partnership, and the tenacity of the CRH team, we are standing together to reinvent the way our world is built.

Eunice Heath,

Chief Sustainability Officer

Our World Today

Liz, for you, what are the greatest sustainability trends facing society?

There's no doubt that climate change is one of the defining issues of our time. Rising temperatures and extreme weather events are changing how we design and renovate our cities and communities, so that they are resilient and can withstand these impacts. Also, the built environment is itself a significant contributor to global carbon emissions. As a result, we're seeing emerging regulations, increased funding, and growing demand for lower-carbon designs and solutions.

CRH is playing an important role in helping to solve this global challenge. We're reducing our carbon emissions while significantly growing our business. Through collaboration and innovation, we're developing new technologies and rapidly expanding our range of products, services, and solutions that reduce the embodied and operational carbon from buildings and infrastructure.

We're also delivering solutions that support the switch to clean energy, such as solar, wind and electric vehicle charging.

What other major sustainability trends do you see?

The way our society lives is highly dependent on natural resources. With a growing population, we need to use natural resources efficiently and minimize waste. Society needs to transition to a circular economy, to optimize the use of resources and reduce impacts on the environment, like global warming and biodiversity loss.

CRH is supporting circularity by preserving resources through our internal recycling efforts. We also recycle significant amounts of waste from other industries by optimizing the recycled content in our products. In this way, we're supporting our customers with their own sustainability ambitions.

For example, we use wastes from other industries as alternative fuels in several manufacturing processes. We're also increasing the use of by-product and waste materials in our cement, concrete and other products, and we're recycling old road surfaces into new, whilst making sure we meet stringent performance requirements.

Liz, what is critical for you as we move forward?

We must continue to focus on listening to our customers. By understanding their requirements and pain points in depth, such as the need for sustainable construction and labor, we can apply CRH's innovation and technical expertise to create value-added solutions that solve their most complex challenges.

Liz Haggerty,

10

Our World Today

Continued

Lenora, which global trend stands out for you and how is CRH responding?

Water is a major global challenge and we're focused on helping to solve it. There are many factors contributing to the water crisis, which is causing shortages and drought in some areas and floods in others. Climate change, urbanization, aging water infrastructure and distribution systems, overloaded water systems, and poor management of water resources are just a few.

Water is our world's most valuable asset and water resilience is a very pressing challenge for communities. At CRH, we really do stand together to reinvent the way our world is built. I'm so proud that our business is helping to design and innovate solutions that support the long-term resilience of communities, protecting them from floods and enabling access to clean water. Not only are we already providing products, services, and technology-enabled solutions, we're partnering with our customers to deliver results that matter across North America and Europe.

Can you share a couple of examples?

In 2023, we continued our investment in the water sector by acquiring Hydro International, a supplier of integrated solutions to reduce flood risk, improve water treatment, and protect against water pollution. Through CRH Ventures, we're working with start-up technology businesses in the water sector. We're making a real difference to some of the world's most critical issues in storm, waste, and potable water.

We give the start-ups we work with access to experts from over 200 brands and 50 years of CRH experience. We're also excited to be working with the latest technology to combine water sensors, big data, and artificial intelligence with our existing solutions to support the ability to measure, monitor, and control water networks.

What are your objectives in the short term, Lenora?

Our aim is to accelerate smart water management, by planning, developing, distributing, and managing water resources. We are scaling our solutions and innovating technologies for information transparency to enable more sustainable use of water. We almost can't move fast enough!

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CRH plc published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 March 2024 09:08:07 UTC.