HEIDELBERG MATERIALS AG Sustainability
Heidelberg Materials 2023 2
Our 2023 business year
Revenue +4.4%1) | Earnings position |
Revenue by Group areas | Business trend | |
and business lines in % | in the Group areas |
CO2 emissions -3% | Climate, energy, and emissions |
€21.2 bn
RCO +29.5%1) | Earnings position |
Western and | ||||
5.7 | Southern Europe | |||
8.4 | 8,0 | North America | ||
9,4 | SERV | 29.1 | Asia-Pacific | |
Northern and | ||||
DIV | 28,2 | |||
10.8 | Eastern Europe- | |||
12,8 | ||||
16.4 | Central Asia | |||
AGG | Africa-Eastern |
534
kg
specific net CO2 emissions per tonne of cementitous material (Scope 1)
€3.0 bn
Earnings Heidelberg Materials
per share + € 1.98 in the capital market
€10.43
CEM | ||||
19.,08 | CEM | Mediterranean | ||
16,1 | 44,2 | |||
45.5 | Basin | |||
X | Group Services | |||
RMX | ||||
24,0 | ||||
23.9 | CEM Cement | |||
16.816,3 | 22,0 | |||
RMX Ready-mixed | ||||
23.6 | ||||
concrete-asphalt | ||||
AGG Aggregates | ||||
SERV Service-joint | ||||
ventures-other | ||||
Outlook 2024 | Outlook | |||
Share of revenue from sustainable products Sustainable products
35 %
share of revenue from sustainable products
Employees +217 FTE | Employees |
+1.2 percen | Consolidated | ||
ROIC tage points | balance sheet | ||
10.3 %
RCO: €3.0 bn to €3.3 bn | 50,997 | employees at almost |
ROIC: around 10% | ||
CO2 emissions: slight reduction | 3,000 locations | |
in around 50 countries |
1) Excluding scope and currency effects
| Heidelberg Materials 2023 3 |
Contents
- To our stakeholders
5 Letter of the CEO
9 Managing Board
12 Report of the Supervisory Board
20 Heidelberg Materials in the capital market
- Sustainability
- Sustainability strategy
- Value chain
- Sustainable Development Goals
- Sustainable financing and taxes
- ESG ratings and indices
- Stakeholder engagement
- Materiality topics for a more sustainable future
- Our Sustainability Commitments 2030
-
Net Zero -
Building a net-zero future - Our path to net zero
42 Our CCUS project portfolio
- CO2 reporting
- Climate risks and scenarios
-
Circular & Resilient -
Building a circular and resilient future - Circular economy
56 Sustainable products and solutions
-
Safe & Inclusive -
Building a safe and inclusive future - Our employees
- Occupational health and safety
- Social responsibility
67 Responsible procurement
69 | Nature Positive - | 308 | Remuneration report |
Building a nature positive future | 309 | Remuneration report for the 2023 financial year | |
70 | Biodiversity | 350 | Auditor's Report |
72 Water management
74 | Combined management report | 352 | Additional information | |
353 | Heidelberg Materials at a glance | |||
75 | Notes on reporting | 354 | Revenue and results by business lines | |
75 | Fundamentals of the Group | 355 | Cement capacities, Aggregates reserves | |
87 | 2023 economic report | and resources | ||
110 | Statements | pursuant to sections 289a and 315a | 356 | ESG indicators |
of the German Commercial Code (HGB) | 365 | Independent Practitioner's Report on | ||
113 | Non-financial statement | a Limited Assurance Engagement on | ||
144 | Outlook | Non-financial Reporting and Sustainability | ||
147 | Risk and opportunity report | Information | ||
167 | Corporate Governance 1) | 368 | About our sustainability reporting | |
371 | Associations, initiatives, and networks | |||
168 | Corporate Governance statement | 373 | Recommendations of the Task Force | |
178 | Boards | on Climate-related Financial Disclosures | ||
186 | Consolidated financial statements | (TCFD) | ||
375 | Sustainability Accounting Standards Board | |||
187 | Consolidated income statement | (SASB) index | ||
188 | Consolidated statement of comprehensive | 378 | GRI content index | |
income | 385 | Glossary | ||
189 | Consolidated statement of cash flows | 387 | Financial calendar 2024 | |
191 | Consolidated balance sheet - Assets | 387 | Contact | |
192 | Consolidated balance sheet - Equity | 388 | Imprint | |
and liabilities |
- Consolidated statement of changes in equity
- Segment reporting/Part of the Group Notes
- Group Notes
- Independent auditor's report
- Responsibility statement
Navigation icons in the report | Contents Search | Back to previous page | 1) Part of the combined management report of the Group and Heidelberg Materials AG | ||
To our stakeholders | Heidelberg Materials 2023 4 |
To our stakeholders
-
Letter of the CEO
9 Managing Board
12 Report of the SupervisoryBoard
20 Heidelberg Materials in the capital market
To our stakeholders
Letter of the CEO
Dr Dominik von Achten
Chairman of the Managing Board
Heidelberg Materials 2023 5
"In our 150th anniversary year, we have shown that we can profitably combine financial success and our focus on sus- tainability."
Heidelberg,
21 March 2024
Dear Shareholders,
Dear Readers,
From a geopolitical perspective and for Heidelberg Materials as a company, 2023 was an extraordinary year in many respects. As in 2022, the past year was marked by volatile energy costs, high inflation rates, and ongoing conflicts across the globe. We certainly felt the effects not only in the economy, but also in our everyday lives.
Nevertheless, in our 150th anniversary year, we have once again shown at Heidelberg Materials that we can deal with major changes and crises. I am proud of our teams around the world, who have remained firmly focused on our targets during a challenging year. Despite declining demand for our building materials, we closed the 2023 financial year with a record result. We improved revenue by 4% on a like-for-like basis to €21.2 billion and increased our result from current operations by 29% to €3.0 billion.
To our stakeholders | Heidelberg Materials 2023 6 |
Letter of the CEO
We took advantage of the strong momentum for our global brand and successfully expanded the rebranding launched in 2022 to our companies in 23 countries. This means that around 80% of our revenue already falls under the Heidelberg Materials brand, and we continue to drive the transformation towards sustainability and digi- talisation in our industry - for the benefit of our customers, our shareholders, our employees, and society.
Strong market presence for our sustainable product portfolio
We measure our success primarily, but not exclusively, in financial key figures. We succeeded in reducing our specific net CO2 emissions by an additional 3% in the 2023 financial year. We offer our customers a wide range of carbon-reduced and circular products. Over a third of our revenue is already generated with sustainable products, and we aim to increase this to 50% by 2030. We show that it is possible to make economy and ecology integrated parts of a successful business model.
To reinforce this claim, we recently launched evoBuild®, our first global brand with a focus on sustainability. For the evoBuild product range, we apply internationally harmonised and stringent criteria for sustainable building materials. In this way, we are intentionally setting new standards in the building materials industry.
We have also taken the next big step with evoZero®, the world's first carbon captured net-zero cement. evoZero achieves its net-zero footprint through the application of carbon capture and storage technology at our Norwegian plant in Brevik, without compensation from credits generated outside our value chain. With evoZero, we are offering the industry's most innovative, globally unique product to our customers, enabling them to drive cutting-edge, environmentally friendly construction projects. The carbon capture attributes are transparent and traceable by harnessing the power of blockchain technology.
Major steps towards net zero
In the past financial year, we consistently expanded our pioneering role in the de carbonisation of our industry and achieved key milestones with our carbon capture, utilisation, and storage (CCUS) projects. Construction of the world's first industrial- scale carbon capture facility in a cement plant is progressing at a rapid pace. The mechanical completion of our Brevik plant is on track and scheduled for the end of this year.
"With evoZero, we offer a globally unique net-zero product based on the application of CCS technology at our plant in Norway."
Dr Dominik von Achten
To our stakeholders | Heidelberg Materials 2023 7 |
Letter of the CEO
Outside Norway, too, we are showing how our pioneering spirit is paving the way for decarbonisation. For example, we were able to secure the support of the EU Innovation Fund for the development of an innovative CCS value chain in our home market. As part of the GeZero project, we intend to build Germany's first inland cement plant with an industrial-scale carbon capture facility in Geseke in North Rhine-Westphalia. The project will also include a solution for CO2 transport and storage. Furthermore, we have received a funding commitment from the EU Innovation Fund for our innovative large-scale ANRAV CCUS project in Bulgaria. The ANRAV.beta pilot unit is already under construction. It will be a key proof of concept for CCUS in Eastern Europe and show the scalability of the innovative OxyCal capture technology.
In cooperation with Linde, we have initiated the construction of the world's first large-scale carbon capture and utilisation (CCU) facility in a cement plant. Co-funded by the German Federal Ministry for Economic Affairs and Climate Action, the CO2 capture and liquefaction plant in Lengfurt, Bavaria, is scheduled for completion in 2025. The captured CO2 from cement production will then be reused as a valuable raw material for the food and chemical industries.
There is also a lot going on in North America. With the opening of our state-of-the-art cement plant in Mitchell, Indiana, we will substantially increase local production levels while significantly reducing CO2 emissions and energy consumption for Heidelberg Materials North America. In addition, we have signed a Memorandum of Understanding with the Government of Canada in support of our project to develop the cement industry's first full-scale carbon capture and storage facility worldwide. The new
facility is part of our Edmonton plant in the Canadian province of Alberta. It is scheduled to go into operation by the end of 2026 and will capture more than 1 million tonnes of CO2 annually.
We are also driving decarbonisation with concrete measures in emerging countries. It should not be underestimated that we have developed tailor-made reduction road- maps for each location. In Ghana, for example, we are piloting innovative calcined clay technology, which will go into operation later this year. Using calcined clay as clinker substitute is an important measure to reduce the carbon footprint of cement and concrete. This is especially attractive for countries in Western Africa without significant limestone deposits.
To our stakeholders | Heidelberg Materials 2023 8 |
Letter of the CEO
Investments in the circular economy
In order to meet the growing demand for sustainable building materials, we are continuously investing in infrastructure and technologies that pave the way to a circular economy as part of the optimisation of our portfolio. With The SEFA Group, Inc., we have acquired the largest US recycler of fly ash recovered from landfill sites. By increasing the use of fly ash, a by-product of energy generation, we are reducing the CO2 intensity of our products, such as composite cements. Thanks to further acqui- sitions, including Green Drop Rock Products and RMS Gravel Inc. (both in the USA) as well as RWG Holding GmbH and SER Group (both in Germany), we are further expanding our presence in core markets while strengthening our range of circular materials.
The construction of the largest 3D-printed building in Europe to date was a special highlight for us last year. Our 100% recyclable high-tech concrete developed specifically for 3D printing was used in this pioneering project in Heidelberg. This allowed us to demonstrate in an impressive way how sustainability and digitalisation go hand in hand and that quick, effective, and resource-efficient 3D concrete printing can be an important future technology for sustainable construction.
Shareholders benefit from our success
We continue to pursue a progressive dividend policy. We will therefore propose to the Annual General Meeting the distribution of a dividend of €3.00 per share. The shares from the buyback programme that was completed in October have now all been cancelled. We spent around €1 billion on dividends and share buybacks in the past financial year.
We will continue to focus on shareholder return in 2024. We are launching an even larger share buyback programme with a volume of up to €1.2 billion and a term ending late 2026 at the latest. I am very pleased that you, our shareholders, can once more participate to a large extent in our success.
Dear shareholders, customers, suppliers and business partners, employee represent- atives, and employees: only a few companies get to celebrate their 150th anniversa- ry. We are very proud that our building materials have been leaving their mark on numerous structures around the world since 1873. Today, more than ever, based on 150 years of progress, innovation, and expertise, we are committed to actively building and shaping a more sustainable future for generations to come. In our entrepreneurial activity, we follow the United Nations Global Compact and its ten principles relating to human rights, labour standards, the environment, and corruption prevention.
Special thanks go to you, our shareholders, for your trust in our company and the path we have taken together. As a strong, internationally established company, we are ideally positioned to tackle the important milestones and challenges that lie ahead in 2024. What's more, we want to make a global difference in our large industry - in terms of financial success, sustainability, and digitalisation. I am therefore optimistic about the future and firmly convinced that we have the courage and momentum needed to continue our great success story for the next 150 years!
Yours sincerely,
Dr Dominik von Achten
Chairman of the Managing Board
To our stakeholders | Heidelberg Materials 2023 9 |
Managing Board
Heidelberg Materials' Managing Board
"In a challenging year, we combined progress in the area of sustain ability with strong financial performance."
"We are proud of a record result to mark our 150th anniversary!"
"In 2023 we have stepped up the focus on operational excel-
lence and sustainability, further enhancing our long-term commitment to the sector."
Dr Dominik von Achten | René Aldach | Roberto Callieri | |||
Chairman of the Managing Board | Chief Financial Officer & Australia | Asia | |||
Member of the Managing Board since: 2007 | Member of the Managing Board since: 2021 | Member of the Managing Board since: January 2024 | |||
Appointed until: January 2025 | Appointed until: August 2029 | Appointed until: December 2026 | |||
Nationality: German | Nationality: German | Nationality: Italian | |||
Year of birth: 1965 | Year of birth: 1979 | Year of birth: 1963 | |||
More information | More information | More information | |||
To our stakeholders | Heidelberg Materials 2023 10 |
Managing Board
"A great team reaching a record result set up for more in the future."
"Pioneering new | "With evoZero, | ||||
technologies | we are offering our | ||||
and focusing on | customers the | ||||
efficiency in our | world's first carbon | ||||
assets." | captured net-zero | ||||
cement." | |||||
Axel Conrads | Hakan Gurdal | Dr Nicola Kimm | |||
Chief Technical Officer | Africa-Mediterranean-Western Asia | Chief Sustainability Officer | |||
Member of the Managing Board since: February 2024 | Member of the Managing Board since: 2016 | Member of the Managing Board since: 2021 | |||
Appointed until: January 2027 | Appointed until: January 2029 | Appointed until: August 2024 | |||
Nationality: German | Nationality: Turkish | Nationality: Canadian and German | |||
Year of birth: 1975 | Year of birth: 1968 | Year of birth: 1970 | |||
More information | More information | More information |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Heidelberg Materials AG published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 05:54:06 UTC.
