While all Performance Standards are applicable to this investment, IFCs environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards. If IFCs investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

PS 1 – Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and working conditions
PS 3 - Resource Efficiency and Pollution Prevention
PS 4 – Community Health, Safety and Security
PS 5 – Land Acquisition and Involuntary Resettlement
PS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources
PS 7 – Indigenous Peoples
PS 8 – Cultural Heritage
If IFC’s investment proceeds, IFC will periodically review the the project’s ongoing compliance with the Performance Standards

This investment is a Category B Project according to IFC’s Environmental and Social (“E&S”) Sustainability Policy due to the fact that with known practices and procedures, the inherent risks of this project can be mitigated. The key mitigation and management procedures include an appropriate corporate environmental and social management system in accordance to the IFC Performance Standards and good international practices; resource optimization; climate change impacts reduction; development of procedures to manage potential impacts on air and biodiversity; sound fuels/hazardous materials storage and handling; emergency response planning and preparedness; labor and working conditions, including health and safety aspects; and development of stakeholder engagement and consultation plans for potentially affected communities.

IFC's appraisal considered the environmental and social management planning process and documentation for the project and gaps, if any, between these and IFCs requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through the implementation of these measures, the project is expected to be designed and operated in accordance with Performance Standards objectives.

Environmental and Social Assessment and Management System

CEMEX’s operations and activities are rooted in strong principles and high standards of conduct. The company has developed a sustainability approach whereby it has established thirteen principles including optimization of their carbon footprint through the use of alternative fuels and raw materials, as well as clean energy; minimizing air emissions and enhancing environmental management; conserving land, biodiversity and water; actively participating in the development of sustainable communities; promoting empowerment; diversity and community capacity-building; and placing health and safety first. CEMEX’s Sustainability Model integrated by 4 main objectives organized around the economic, environmental, social, and governance pillars, has been communicated to all employees around the world through institutional material originally developed in English and Spanish and customized by countries based on their local language.



Policy

The company has overarching global policies and principles that guide the way environmental, social and governance (“ESG”) issues are managed across CEMEX’s operations. This philosophy and expectations cascade down from the corporate level to each region and plant and include a: (i) Sustainability Policy, (ii) Environmental Policy, (iii) Water Policy, (iv) Biodiversity Policy; and (v) Human Rights Policy, among others. The above policies are supported and complemented at the plant level by a suite of procedures and/or manuals.



Identification of Risks and Impacts

CEMEX’s Environment Department within the Global Operations and Technology Vice-presidency is based at the company’s headquarters in Monterrey, Nuevo Leon, Mexico having also regional and country coordinators. The area together with Corporate Sustainability is mandated to carry out annual audits on CEMEX’s operations to ensure that all plants are performing in accordance to its global E&S standards and to the Cement Sustainability Initiative (“CSI”) protocols and commitments. For acquired operations, the objective of these audits is to establish a good baseline of information, understanding of existing E&S practices and potential risks at each site, and addressing the most critical gaps and non-conformances relative to the company’s standards and national requirements.



Management Programs

The plans and procedures included in the Environmental Management System (“EMS”) are applied during planning, design, construction, operation, and acquisition of assets. Contractors’ potential impacts are also addressed through CEMEX’s health and safety (“H&S”) policies and management system. The plans and procedures of the EMS programs are tailored to CEMEX’s operations to address mitigation for the impacts and risks identified through environmental, health, and safety (“EHS”) impact assessments and audits. These plans and procedures are consistent with local requirements and good international practices.
The plans and procedures of the management program are aimed at avoiding, or where avoidance is not possible, minimizing adverse impacts on human health and the environment. CEMEX’s EMS is being designed to be compatible and to comply with the principles of international standards such as ISO 14001 and European Union Eco-Management and Audit Scheme. As of December 31, 2015, 76% of CEMEX’s operations had fully implemented an EMS and 98% of all CEMEX’s cement plants have an EMS in place.



Organizational Capacity and Competency

CEMEX has a robust environmental and social management structure. In September 2014, it established a sustainability committee within the Board of Directors which endorses the CEMEX sustainability model and core key performance indicators (“KPIs”) and assesses the effectiveness of the sustainability initiatives and implementation progress. It also has a sustainability corporate function reporting directly to a member of the Executive Committee with experts in environment, health, and safety overseeing the EHS performance of all its operations. In coordination with this department, CEMEX has created a Global Sustainability Functional Network to oversee and provide good practices guidelines and requirements on aspects such as health and safety, safety transportation, etc. In turn, each plant has dedicated EHS personnel to oversee the plants’ day-to-day EHS performance. In 2011, the CEMEX Public Affairs department was given the mandate for managing CEMEX’s social aspects, overseeing stakeholder engagement aspects and it is currently formalizing its community engagement program. Furthermore, as needed, CEMEX also secures the services of qualified EHS and social consultants to support the development of the various plans and procedures to support their project activities.



Emergency Preparedness and Response

Each of CEMEX operations has its own emergency preparedness and response (“EPR”) plan outlining emergency scenarios and response actions, key contacts, and responsible staff. The company also conducts training and emergency response drills for employees and contractors in periodic basis.



Monitoring and Review

Environmental monitoring is an integral component of the E&S management program and is conducted throughout the life of the operations to provide ongoing understanding of environmental conditions and to indicate when corrective actions might be needed to address unanticipated impacts. As part of its E&S management systems, CEMEX has identified KPIs, established monitoring, inspection and audit programs which are conducted at each of its plants.



For more than ten years, CEMEX has reported annually on the E&S performance of its operations through sustainability reports. In 2008 it began applying the Global Reporting Initiative GRI-G3 Sustainability Reporting Guidelines to produce its Sustainable Development Reports and as of 2014 CEMEX migrated to GRI-G4. These reports also serve as the basis for communic
ating CEMEX progress against the commitments of the United Nations Global Compact (UNGC). In addition, operations also report, on their sustainable performance, in their own countries.

Human Resources Policies and Procedures

CEMEX’s Human Resources (“HR”) policies and procedures include aspects related to equal opportunity employment, recruitment, employees’ conduct, employment regulations, salaries, disciplinary code, employees’ grievances, and performance management in accordance to the labor laws of the countries where it operates. CEMEX’s HR managers, based in substantially all countries where CEMEX has operations, are responsible for ensuring compliance with its HR policy, local labor laws and regulations affecting all employees including contractors.



Working Conditions and Terms of Employment

CEMEX has 43,117 employees’ worldwide and its labor policy is aligned with IFC PS2 requirements stating that CEMEX will not use forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise and will only hire employees who meet local minimum age requirements.



Workers’ Organization

As per the local labor laws of the countries where CEMEX operates and in accordance with good labor practices, CEMEX employees have right to freedom association. In general, its operations enjoy an overall positive labor climate. CEMEX encourages freedom of speech and promote direct communication with the HR team.



Non-discrimination and Equal Opportunity

CEMEX labor policies also include provisions relating to non-discrimination and equal opportunity, wages and benefits and occupational health and safety. CEMEX is an equal opportunity employer that extends equal employment opportunity to all applicants and its selection decisions are merit based.



Retrenchment

For retrenchment cases, the Company’s HR policies are established following the respective local labor laws.



Grievance Mechanism

CEMEX’s HR policies and procedures incorporate a grievance mechanism for resolving worker issues concerning employment and working conditions internally for its own and contracted employees. The workers’ grievance mechanism, defines the channels (e.g. mail, phone, verbal report to immediate supervisor/reporting authority, etc.) available to submit grievances, including anonymous reporting, and the internal procedure for its handling. In addition, it established mechanisms to ensure its employees are aware of the existence of this grievance mechanism.



All operations strictly follow CEMEX’s Code of Ethics & Business Conduct, Employment Policies & Procedures, Code of Ethics Campaign, communication and training which incentive employees'' denunciations using Ethos Line, employees may submit suggestions, inquiries or report any kind of grievance to the local Ethics committee.



In addition, CEMEX also conducts the "Voices into Actions" survey that has been proven a useful tool to help detect and solve employees’ issues (answers in the survey and comments are anonymous and only reported in a consolidated form).



Protecting the Work Force

Applicable to all its operations, CEMEX has developed and implemented a Human Rig
hts Policy and it is also committed to preventing discrimination and upholding the human rights and labor principles of the UNGC. Particularly, for its Mexican operations, and through the Mexico-based Congruencia program, it promotes employment opportunities and accessible building design for people with disabilities.



Occupational Health and Safety

CEMEX is strongly committed in providing for the wellbeing of its employees including occupational H&S. As part of its recent zero injuries and zero harm policy, the company is developing a more rigorous approach, aiming to support its already established management structure, by creating global and country taskforces for health essentials, safety leadership, driver and contractor safety, and safety awards, among others. These taskforces focus on identifying and establishing target effective solutions to reduce any safety risks associated with its operations by improving and reinforcing employees and contractors’ safe behaviors and by strengthening the accountability of management for ensuring safe behavior and to help achieving CEMEX global goal of zero incidents. The “health essentials”, a global health campaign, aligns all current and developing CEMEX health programs, occupational as well as preventive, at the local, national, and regional levels. This campaign is being designed to reduce the prevalence of health and work related associated risks and to encourage employees to live a healthy lifestyle both inside and outside the workplace as part of its health management program. The program also establishes guidelines to guarantee that all business units act upon the same health standards, reducing cost and minimizing employee health risk and inefficiencies. As part of that effort, the company also established an H&S academy to train and prepare all personnel at all levels in this matter. To accurately assess the H&S performance of all its operations it has also established KPIs to track information such as fatalities, lost time injuries, near misses, occupational health diseases, etc. Since 2000, CEMEX has had the annual CEMEX Safety Award to promote excellence in safety and health at its operations worldwide. Sites are judged on performance, safety leadership, risk management, incident investigation, analysis, and follow-up. The award is given to the best performing and most improved facility in each business segment.



Employees as well as contractors are periodically trained in related H&S aspects and required to use the required personnel protective equipment. The plants also have dedicated medical physicians in charge of overseeing the occupational health of all its workers. The company consistently registers all incident and accidents of employees and contractors for all its operations. In general it maintains a good safety record. In 2015, the lost time injuries in 95% of CEMEX’s operations for employees and contractors was zero.

Resource Efficiency

As part of CEMEX’s approach to optimize resources and reduce climate change impacts, the company started using alternative fuels more intensively since 2005. Alternative fuels used include chipped tires, sewage sludge, household waste, biomass (i.e., rice, coffee husks, sawdust, and palm residues), among others. In addition to recovering energy in the process and reducing reliance on fossil fuels, this initiative also provides a suitable alternative to landfills usage for non-hazardous waste. As lead user of alternative fuels in the cement industry, CEMEX, as of December 31, 2015 reached a fuel substitution rate of close to 27% and has a goal of reaching 35% by the year 2020. The extent of their use of alternative fuels depends largely on local regulations, specifically whether landfill legislation is mature and well implemented as well as in some other factors such as technical challenges, permitting, community education, oil and other primary fuels prices, transportation, among others.



CEMEX is also increasing the use of sustainable energy to satisfy its power requirements. During 2015 more than 16% of their power supply for cement operations came from sustainable energy sources including: (i) 250 MW Eurus wind farm in Mexico; (ii) 7 MW wind portfolio in California, (iii) 30 MW waste-to-energy in Rüdersdorf, Germany; (iv) 1.5 MW solar project in the Dominican Republic; (v) 6 MW hydro power portfolio in Colombia; (vi) 6 MW waste heat recovery in Solid, Philippines; and (vii) all electricity in Panama supplied by a hydro plant.



Another way in which CEMEX seeks to reduce energy consumption is by using alternative raw materials to reduce the ratio of clinker to cement (clinker factor.) For instance, the company is increasingly using fly ash, a by-product of coal-fired power stations, and blast furnace slag, a by-product of the steel industry, to reduce the ratio of clinker to cement.



Water

Water is of paramount importance for CEMEX operations and a key input in the production process as water is a primary component of concrete, representing approximately 25 percent of the mixture. It is also used for cooling and preparing slurry for cement, washing aggregates, and cleaning plants and equipment, including concrete delivery trucks. Thus, CEMEX has developed programs and initiatives to increase water efficiency and recycling. To ensure its commitment to water optimization, since 2013 it established its water policy which commits to maximize water efficiency by managing water consumption; responsible management of water resources; and monitor, review, assess and disclose its water efficiency performance among other aspects.



GHG Emissions

The global cement industry produces about five percent of all manmade CO2 emissions. This greenhouse gas is mainly generated in the production of clinker (the main ingredient in cement.) CO2 results from the fuel combustion required to achieve high temperatures (>1,400 °C or 2,500
°F) and from the chemical decomposition of limestone into lime and CO2. Compared to these emissions, other sources, mainly the transport of raw materials and final products and emissions related to the generation of electricity that the company consumes, are very small, but still offer an opportunity to reduce its total footprint.



CEMEX’s carbon strategy, allowed the company to deliver 21% more cement in 2015 increasing the absolute CO2 emissions only by 1% using 1990 values as reference.



As of December 31, 2015, CEMEX has achieved the approval for 23 CO2 offset projects registered either under the Clean Development Mechanism (“CDM”) or the Verified Carbon Standard (“VCS”) representing a total reduction potential of almost 3 million tons of CO2 per year. The projects are located in Mexico, Colombia, Costa Rica, Panama, Dominican Republic, Egypt and the United States.



CEMEX tracks and audits global carbon emissions annually in line with the Greenhouse Gas Protocol developed by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute and used by WBCSD Cement Sustainable Initiative (“CSI”) members. The company’s reporting of the greenhouse-gas emissions is subject to an external assurance process undertaken by PricewaterhouseCoopers.



Air Emissions and Ambient Air Quality

The company ensures that the air emissions of its operations (kiln, silos, grinders, etc.) are controlled. Its operations have air emission control devices such as electrostatic precipitators and/or baghouses. In addition, it has enclosed conveyors, and establishes good practices (enclosed trucks carrying raw materials and/or final products, paved facilities, good housekeeping, etc.) to avoid generation of fugitive dust. As part of this project, CEMEX will install enhanced equipment to further control its air emissions at many of their site in emerging markets (i.e., replace electrostatic precipitators for more reliable and more efficient filter houses).



CEMEX measures dust, NOx, and SOx at 100 percent of its operations; however, to further enhance its monitoring, it has set a target to install continuous emissions monitoring (“CEM”) for these parameters. As of December 31, 2015, approximately 84% of CEMEX’s clinker is produced with CEM systems, and it is committed to reach 100% by 2020. CEMEX conforms to the CSI reporting protocol for emissions.



To further improve upon these efforts, CEMEX has set target levels of annual performance for the reduction of major emissions. These targets compare yearly emissions values to a 2005 baseline in order to ensure that CEMEX consistently performs below the required levels for dust, NOx and SOx. These annual targets are: greater than 50% reduction in dust emissions per ton of clinker from the 2005 baseline, greater than 30% reduction in NOx emissions per ton of clinker from the 2005 baseline, and greater than 20% reduction in SOx emissions per ton of clinker from the 2005 baseli
ne.



Solid Waste Management

CEMEX has systems to identify, confine, and dispose of hazardous waste and it monitors and measures the amount of hazardous and non-hazardous wastes disposed in authorized locations. To minimize the amount of generated waste that is sent for disposal, CEMEX has integrated waste management into its operations. The company reuses operations by-products such as cement kiln dust by adding the finished products and using it to stabilize waste. Also through good operational practices, it aims to keep to a minimum waste generation which otherwise is sent to landfills such as recovering of the pallets used to transport cement bags. CEMEX also records and reports total hazardous and nonhazardous waste production volumes from operational sites.



Hazardous Materials

CEMEX has sound programs in place to ensure that handling and storing of hazardous materials follows good practices.



Noise and Vibration

CEMEX’s quarrying and cement manufacturing activities give rise to emissions of noise and vibration that can have a negative impact on the health and well-being of workers as well as surrounding communities. Thus, CEMEX installs operational controls and local measures such as noise suppressors, regulation of distance between noise sources and operators, isolation of noise sources, scheduling of blasting activities, and the provision of ear protectors to employees working in areas where noise and vibration limits are exceeded.

PS 4 – Community Health, Safety and Security

Community Health and Safety

A key potential community as well as a health and safety impact in the cement industry is transportation safety. Driving is the activity that leads to the majority of fatalities in this industry. In addition, approximately 60% of all fatalities in the CSI database are related to contractor activities. Thus CEMEX believes that a stronger collaboration between driving and contractor-safety practices is needed to prevent additional life losses. Looking to address this critical aspect, CSI established a Driving Safety Working Group to develop and implement industry good practices, to report safety performance and to assess incidents and injuries reduction over time. It produced two relevant documents: (i) “Recommended Good Practice for Driving Safety” which outlines practices for drivers, their managers, and transport management contractors; and (ii) “Recommended Good Practice for Contractor Safety”, which outlines safety practices for both contractors and subcontractors. Both of these documents are used by CEMEX. As CEMEX also clearly identified this risk, it established a Global Road Transportation Safety Taskforce, comprising of senior managers and since 2011 it has been implementing a rigorous road safety campaign for all its operations around the world, aligning the best approaches, which is especially beneficial in operations where existing regulatory framework and contractor practices are not suitable for sounder road safety practices.



To minimize traffic congestion, and as part of the CEMEX sustainable transport approach, the company always seeks alternative ways to transport its raw materials and products. For instance, several sites use conveyor belts to transport raw materials from the quarry, which reduces noise, congestion, and the likelihood of traffic accidents while also conserving fuel use. Alternative modes of transport (i.e., multimodal systems comprising road, rail, and water transport) wherever feasible are also considered.



CEMEX also has a system, across all its operations to support the community in case of natural disasters. This system addresses prevention, mitigation, and reconstruction.



Community Exposure to Disease

While CEMEX safely and successfully uses its cement kilns to dispose of some of urban non-hazardous waste in locations where the appropriate tests and public consultations have been conducted, local residents often have concerns about the use of tires and other waste as fuel. Proactively, CEMEX works with its neighbors and local interest groups to help them understand the process and the controls being placed.



Emergency Preparedness and Response

CEMEX has developed and implemented EPRs at each of its operations, based on the potential risks to the health and safety of the potentially affected communities and other stakeholders that could arise from the company’s operations. These plans include the operational and natural
risks, along with the appropriate response, all needed emergency response equipment and qualified trained personnel trained to response to emergencies, among others. As appropriate it also conducts emergency response drills with community and relevant stakeholders (i.e., police, fire authorities, hospitals, etc.).



CEMEX also has a program for the management and response to natural disasters. It has detailed assessment of potential natural risks in all areas where it operates and it has the corresponding response plans to be deployed as needed.



Security Personnel

For purposes of persons and physical security at all its operations, CEMEX contracts non-armed private security services from specialized firms in the sector. Security personnel are screened for criminal backgrounds and are provided with training in the use of force. The plants do not rely on local public armed forces for any services or support. CEMEX implements security policies and procedures commensurate to the operations’ risks and provides security personnel codes of conduct and training to ensure appropriate conduct with neighboring communities.

CEMEX’s operations rely on access to its raw materials and its ability to effectively manage land assets. Because the opening, operation, and closing of CEMEX’s cement and aggregates sites, can potentially affect biodiversity, the company aims to minimize these potential impacts. These impacts can include habitat degradation, species disturbance, changes in groundwater levels, discharges to water bodies, and dust emissions.



To responsibly manage the land within and around its operations, CEMEX has systems and procedures in place to address impacts and mitigations in natural environments, and also to seek opportunities for producing biodiversity enhancements through responsible management. In 2012, it developed its Biodiversity Policy, following the mitigation hierarchy to benefit biodiversity conservation. It started by developing Environmental Impact Assessments and quarry rehabilitation plans (avoiding, minimizing and restoring) for most of its operations and also completed numerous examples of successful biodiversity management both through mitigation actions and progressive rehabilitation projects. As part of this policy, to ensure the effectiveness of its biodiversity-focused rehabilitation programs, CEMEX has on-going longstanding relationships with well-known and reputable conservation organizations in various countries in Europe, the USA, and Mexico, among others. For example, in 2007 it signed a 10-year agreement with BirdLife International, a globally important conservation organization.



To further enhance it biodiversity performance, CEMEX developed its Biodiversity Action Plan (“BAP”) Standard, as a systematic approach to guide action at or within the vicinity of CEMEX’s operations, to identify, evaluate and conserve or enhance biodiversity. Thus, in addition to avoiding, minimizing and restoring, CEMEX is currently also including offsets as part of its biodiversity management strategy to move beyond a no-net-loss to a net-positive-impact outcome. The BAP is basically CEMEX’s methodology to manage and enhance biodiversity at its quarries since it is the tool for targeting conservation action at priority quarries on or broadly within the context of CEMEX sites, promoting the development of collaborative partnerships, regardless of location, proximity to areas of high ecological value or experience in biodiversity management.



As part of CEMEX’s partnership with BirdLife International , in 2010, the company launched a Biodiversity Scoping Study which categorized all 543 of CEMEX’s sites worldwide in terms of their proximity – far, near or overlapping with - areas of high value for biodiversity such as Important Bird and Biodiversity Areas, and Protected Areas. The study also provided spatial data and information describing the main biodiversity issues of each site, thus enabling both CEMEX and BirdLife International partners to understand risks and opportunities, and evaluate proactive approaches towards conserving and en
hancing biodiversity in line with the relevant biodiversity priorities and the broad geographic location of CEMEX sites. The Scoping Study basically prioritized where action to identify, protect, enhance and restore biodiversity is most urgently needed. The study revealed that 24% of all CEMEX quarries were located in areas of high biodiversity importance. As of December 31, 2015, CEMEX had already completed BAPs for 61% of its quarries identified as of high biodiversity importance and it is committed to complete BAPs for 100% of its high biodiversity importance quarries by 2020.



Examples of results obtained from the implementation of BAPs, so far, include positive actions taken to protect 38 species of conservation concerns; 14,500 hectares (ha), influenced by BAPs, have benefited from positive management; habitat restorations and biodiversity surveys; benefited 23 important birds and biodiversity areas; and there are currently more than 50 ongoing BAPs with collaboration from BirdLife International, etc.



In addition, beginning in 2001, CEMEX voluntarily acquired “El Carmen” a 140,000 hectares area for nature conservation in the northern part of Mexico in the state of Coahuila, bordering with the Rio Bravo and having a small area within the U.S. territory. This whole area is recognized for its large biodiversity (i.e., 500 plants, 289 birds, 81 reptiles and amphibians, and 78 mammals). Here, CEMEX is developing wildlife programs for threatened native species such as the desert bighorn, mule deer, elk, and black bear, among others. As a result, most of this area has been declared as Protected Natural Area. CEMEX has also been working with an environmental consultancy firm to determine the carbon sink potential in the area. It is being estimated that more than 11 million tons of CO2 have been captured until now. For every hectare that CEMEX has in operation with quarrying activities there are 8.4 hectares in conservation at “El Carmen” nature reserve. CEMEX’s biodiversity strategy is in line with IFC PS6.

If Indigenous Peoples were to be located within the area of influence of the project, CEMEX will develop procedures for engagement with Indigenous Peoples and for obtaining Free Prior and Informed Consent (“FPIC”) in line with international best practices as well as national regulations. CEMEX will go through an appropriate process to obtain FPIC from the Indigenous Communities prior to any project development.

If Cultural Heritage were to be located within the area of influence of the project, CEMEX will develop and implement a chance find procedure for potential archaeological, paleontological, historical, cultural, artistic, and religious values, as well as unique natural environmental features that embody cultural values (e.g., sacred groves). As needed, protection and enhancement of sacred sites (e.g., ponds, forest groves, etc.) will be conducted in consultation with community members.

CEMEX’s community engagement is headed by the CEMEX Public Affairs department. The company is currently developing a corporate policy to ensure stakeholder engagement is achieved in an open and transparent manner across its global operations and business segments where manufacturing takes place. The policy will establish a set of minimum requirements for operating sites to cover in regards to engagement with stakeholders (e.g. government officials, regulators, NGOs) and local communities. CEMEX’s Public Affairs department manages overall engagement with ongoing operations and project stakeholders. Communication regarding CEMEX’s activities and initiatives are shared on the company’s intranet site.

CEMEX’s Corporate Social Responsibility area provides guidance companywide in the management of community impacts and social value creation initiatives. Engagement with communities at the local level is generally managed by each plant, with direction and support from CEMEX’s Corporate Social Responsibility and Public Affairs department.

CEMEX has a community grievance mechanism system scaled to the risks and adverse impacts of its operations to receive and facilitate resolution of affected communities’ concerns and grievances for all its operations in alignment with PS 1 requirements. The system is structured to resolve concerns promptly, using an understandable and transparent consultative process that is culturally appropriate and readily accessible, and at no cost and without retribution to the party that originated the issue or concern. The mechanism includes: (a) methods of communication about the mechanism to communities (i.e. existence of the grievance mechanism), (b) means to present the grievances and process of resolution, (c) process of receiving and registering grievances/ complaints, (d) assessment and categorization of grievances, (e) prioritization and hierarchy of grievances and response time, (f) guidelines for resolution and response of grievance, (g) responsible personnel in charge of resolution, (h) documenting grievance/resolution, and (i) periodic monitoring of grievances.

To create value addition, CEMEX’s corporate social responsibility efforts aim to contribute to sustainable development, consider the expectations of the interest groups, inform about and be responsible of its impacts, and ensure this approaches permeate throughout the entire organization. CEMEX’s social investment guidelines provide a common global framework designed to support the planning and execution of social investment strategies in all of the countries in which it operates. The guidelines apply to programs run directly or through partnerships with stakeholders, to cash and in-kind donations, and to employee volunteer efforts. CEMEX investments in local communities are aligned with its values and business objectives. CEMEX community investments include educational, cultural, and sports activities; fostering local environmental awareness; and employee volunteering.

In addition, CEMEX was part of the group of companies participating in the development of the ISO 26000 social management system. The company has adopted the 126 indicators of this system which are validated by a third independent party.

Contact Person: Maria Cristina Aparicio Maeztu Company Name: CEMEX Address: Hernández de Tejada, 1 28027. Madrid, Spain Email: mailto:cristina.aparicio@cemex.com Phone: +34913779480 Facsimile: +34913779529

Broad Community Support is not applicable for this project

Title	Anticipated completion Date
1- Formalize and complete the stakeholder engagement policy	12/31/2017
2- Begin implementation of the corporate stakeholder engagement policy	12/31/2018
Complete the installation of the continuous emission monitoring (CEM) systems in all existing cement plants as of December 31,2015	12/31/2020
Complete Biodiversity Action Plan (BAP) Standard in quarries identified by CEMEX with a high biodiversity importance, as of December 31,2015.	12/31/2020