INTEGRATED
PROFIT & LOSS
STATEMENT 2022
ANNUAL RESULTS AND ASSUMPTIONS
2HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
THE INTEGRATED
PROFIT & LOSS
STATEMENT (IP&L)
MEASURING OUR VALUE
OUR MULTI-CAPITALS
1
BUSINESS
PERFORMANCE IN 2022
Holcim is one of the pioneers in the growing
discipline of impact valuation. Since 2014 we have
assessed on an annual basis our economic, social
and environmental impacts in monetized terms
(triple bottom line (TBL)) and we disclose them
through our Integrated Prot & Loss statement
(IP&L 2022 results on page 3).
In 2021, Holcim announced its “Strategy 2025 –
Accelerating Green Growth” to become the global
leader in innovative and sustainable building
solutions, putting sustainability at the core of the
strategy, driven by our purpose to build progress
for people and the planet.
Holcim is committed to creating value for society
and to measuring our business performance
beyond nancials. The IP&L complements our
traditional nancial and sustainability metrics. It
enhances decision-making processes to sustain
long-term value creation for shareholders, society
and the environment, allowing us to understand
and share with our stakeholders the extent of our
impacts and to track progress against our
sustainability ambitions. The IP&L also raises
awareness of risks and opportunities posed by
externalities (through quantication) and enables
analysis on what the impact could be on the
bottom line.
STANDARDIZING IMPACT VALUATION:
RETHINKING PERFORMANCE
We are founding members of the Value Balancing
Alliance (VBA)
2
, a diverse group of companies
working since 2019 with multiple stakeholders to
develop a global impact measurement and
valuation (IMV) standard for monetizing and
disclosing impacts of corporate activity and to
provide guidance on how these impacts can be
integrated into business steering.
The global IMV standard is needed not only to
foster long-term thinking and comparability of
performance but also to consolidate the
knowledge already available in this eld.
Therefore, the VBA is building on the work of
leading universities and well-known organizations,
such as the World Bank, the Organisation for
Economic Co-operation and Development, the
Capitals Coalition, the World Business Council for
Sustainable Development, the Impact
Management Project, the Global Reporting
Initiative and the International Sustainability
Standards Board.
In 2021, we joined Saïd Business School,
University of Oxford’s Oxford Initiative on
Rethinking Performance (ORP).
3
The ORP is a
unique approach to applied research to develop a
framework for measuring and acting on our
corporate purpose, resulting in long-term
economic and environmental improvements for
all. Our involvement and contribution to this
leading research will enhance our understanding
and bring new insights on how to measure our
company’s purpose and performance.
1
Capitals: Financial, Natural, Human and Social.
2
An alliance of multinational companies developing a standard to measure and monetize impact from business to society.
3
https://www.sbs.ox.ac.uk/research/centres-and-initiatives/oxford-initiative-rethinking-performance
3HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
THE TRIPLE BOTTOM LINE (TBL)
INTEGRATED PROFIT & LOSS BRIDGE
8.1BN
CHF TBL value
(upstream and
own operations)
2021: CHF 12.1 billion
MEASURING OUR VALUE: THE INTEGRATED PROFIT & LOSS STATEMENT (IP&L) CONTINUED
The IP&L is intended to raise awareness of externalities that may or may not affect Holcim’s business, and to assess their relative importance. It contains preliminary
considerations that may be subject to change. Furthermore, the IP&L may also change, for example as valuation techniques and methodologies evolve. It should be
considered as indicative and it neither represents any final factual conclusions nor is intended to assert any factual admission by any person regarding the impact of
Holcim or any of its related parties on environment or society.
HOW TO READ THE IP&L BRIDGE
We portray our IP&L as a bridge chart, designed to
show the cumulative effect of sequentially
introduced positive or negative values. The bridge
starts with the gross value add (GVA) derived from
our total procurement spend with suppliers and
then sequentially shows the positive or negative
nancial and monetized environmental and social
impacts. The nal bar shows our assessment of
the total TBL value reported by the company. We
have differentiated in the chart the impacts
related to upstream supply chain and to our own
operations. We are working to measure the impact
to society from our downstream supply chain and
aim to include it in future disclosures.
WHAT THE IP&L TELLS US
The IP&L indicates that the impact we create in
society reaches far beyond the boundaries of our
own operations, impacting our stakeholders and
the environment both positively and negatively.
In the supply chain – upstream,
4
the net positive
impact is estimated at CHF 7.3 billion. The most
positive impact occurs due to the economic value
we add to society through our procurement
activities, deriving in CHF 18.2 billion GVA. The
positive impacts are offset by the environmental
impacts related to CO
2
emissions, water
consumption, land use/biodiversity and other
types of air emissions in our supply chain. These
impacts occur mainly due to the procurement of
electricity, fuels, paper and plastic cement bags,
and the transportation of our products.
In our own operation, the net positive impact is
estimated at CHF 0.8 billion. The most positive
impacts occur due to employment, taxes,
dividends, social investments and our continuous
effort to replace natural resources with secondary
resources, deriving in total benets from own
operations of CHF 10.7 billion.
The most signicant portion of our total cost to
society from our own operation is the CO
2
emissions of CHF 8.9 billion (Scope 1 and 2). We are
committed to reducing these emissions. Holcim is
among the rst companies worldwide to have
2030 climate targets aligned with the new 1.5°C
framework for the cement industry and validated
by the Science Based Targets initiative (SBTi).
Holcim also has industry-leading 2050 net-zero
targets validated by the SBTi for all scopes.
Through our net-zero pledge, we will not only
improve the impact from our CO
2
emissions,
but also key environmental impacts in our
supply chain, enhancing our TBL across the
full supply chain.
4
Procurement spend with suppliers and the estimated environmental and social impacts associated with the purchase of goods and services.
GVA supply chain
Occupational H&S
CO
2
Scope 3
Air pollution
Water consumption
Water pollution
Waste
Retained value
Employment
Taxes and
nancial costs
Land use/
biodiversity
Dividends
Social investments
Land use/
biodiversity
Employee education
Secondary resources
Industrial accidents
CO
2
Scope 1
CO
2
Scope 2
Air pollution
Water consumption
Waste
Triple bottom line 2022
-0.3
-2.6
-2.0
-3.4
-0.1
-2.4 -0.0 3.5
4.1
1.1
1.3
0.0 0.0
-0.0
-8.3
-0.5
-0.6
-0.2
-0.2
-0.1
8.1
0.8
Upstream value CHF 7.3 billion Own operations value CHF 0.8 billion
18.2
4HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
YEAR-ON-YEAR PERFORMANCE
The 2022 methodology for the IP&L has been
updated. As a result, the IP&L of 2022 cannot be
compared directly with the IP&L of last year. To
enable comparison, a like-for-like calculation was
made for the impact of the scope and key
methodological changes, including increasing the
CO
2
price from CHF 51.5 per ton to CHF 106.4 per
ton and enhancing our methodology on upstream
land use. The TBL generated in 2022 from our
business activities was CHF 8.1 billion, which is a
47% increase on a like-for-like basis.
OPERATIONAL PERFORMANCE
Adjusted for methodology and scope changes,
the TBL contribution increased by CHF 2.6 billion.
In 2022, our procurement spend increased on a
like-for-like basis. This was primarily driven by
increased prices for major commodities. With
about 91% of our suppliers being from domestic
markets, the money spent in procurement
activities is directly contributing to the GVA
5
in
those markets.
The impact from our own operations also
improved on a like-for-like basis as a result of
reductions in our absolute CO
2
emissions and air
pollution during 2022. We also increased the use
of secondary resources by 8% (34 million tons of
waste vs 31 million tons in 2021, excluding the
divested entities).
In 2022, our production volumes were consistent
when excluding the divested entities, (cement
production was down 1% and clinker down 2%). In
this context, the environmental impact from our
own operation activities indicates an efcient
performance year on year in intensity levels (more
details can be found in our Annual Sustainability
Performance Report).
Lastly, our nancial impacts (retained value and
employment) improved, which also contributed to
the like-for-like increase in our TBL.
Impacts of inflation
Ination rose signicantly in many parts of the
world to rates that haven’t been seen in over 40
years. The sharp increase in commodity and
energy prices in 2022 drove up procurement costs
such as fuels, raw materials and logistics.
In order to calculate our upstream impacts we rely
on environmentally extended input-output
models (EEIO), which have an inherent time lag
and have not been updated for the
unprecedented and sudden ination impacts
seen in 2022.
The result is that the negative environmental
impacts in our supply chain have increased due to
ination despite production volumes not
changing. We have not adjusted for the ination
impact on environmental indicators to maintain a
conservative and consistent approach. However,
we estimate our upstream environmental impacts
(air emissions, water consumption, land disturbed
and waste) have been inated by CHF 0.7 billion,
so our 2022 TBL should be CHF 0.7 billion higher.
MEASURING OUR VALUE: THE INTEGRATED PROFIT & LOSS STATEMENT (IP&L) CONTINUED
TRIPLE BOTTOM LINE
(BILLION CHF)
2021
as published
2021 adjusted
to 2022
methodology
and scope
2022 vs 2021
restated
12.1
5.5
47%
8.1
5
Contribution to gross domestic product (GDP) from our company procurement spend. GDP is an aggregate measure of the market value of goods and services a
country produces to satisfy the needs of nal consumers. It is used to measure economic performance and the societal progress of nations.
10
12
14
2
8
6
4
0
5HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
KEY ADJUSTMENTS APPLIED IMPACTING
THE IP&L RESULTS
During 2022, Holcim’s footprint has changed
signicantly and we have applied methodology
updates to our impact valuation model. We have
applied these changes to our 2021 TBL to show
a like-for-like comparison. The changes are
driven by:
METHODOLOGY UPDATES:
•
We have applied the latest recommendations
from the VBA methodology, which increased the
social cost of carbon and consequentially, our
TBL for 2021 decreased by CHF 6.2 billion. Refer
to the Annex for further discussion on the social
cost of carbon.
•
We have updated the methodology for
calculating the upstream land use/biodiversity
impacts. This resulted in a further decrease of
our 2021 TBL by CHF 0.5 billion.
•
We enhanced Scope 3 disclosures, which now
reflect CO
2
emissions across all greenhouse gas
(GHG) categories (upstream and downstream).
The IP&L reflects the impact from business
activities of consolidated companies.
HOLCIM FOOTPRINT:
•
The divestments of India and Brazil in 2022 were
material to our business and, in line with Global
Cement and Concrete Association (GCCA)
6
reporting guidelines, have been excluded from
our 2022 sustainability reporting scope. The
impacts from these divested entities are
excluded from the 2022 IP&L; therefore, in order
to show a like-for-like comparison, we have
deducted the 2021 impacts from
these businesses.
•
Similarly, Firestone Building Products (now
Holcim Elevate) was acquired in the middle of
2021, but excluded from the IP&L scope in 2021.
Therefore, to provide a proper comparison on a
like-for-like basis, we have added the 2022
Elevate impact in the like-for-like comparison.
In our ongoing effort to increase transparency of
our business performance beyond nance, and in
alignment with our commitment to work with the
VBA to build a standard method that ensures
comparability across business, we will keep
updating our IP&L disclosures according to the
latest VBA methodology.
MEASURING OUR VALUE: THE INTEGRATED PROFIT & LOSS STATEMENT (IP&L) CONTINUED
TBL 2021
Divestments
2021 Triple
Bottom Line
adjusted with
2022 methos
Methodology
changes
Methodology and Scope changes CHF -6.5 billion
Acquisitions
12.1
-0.8
5.6
-6.9
1.2
6
GCCA Sustainability Guidelines provide a standard framework for reporting and include a number of simple, reliable and representative key performance indicators
against which members must monitor and report performance.
TRIPLE BOTTOM LINE
(BILLION CHF)
6HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
ASSUMPTIONS
USED IN THE IP&L
CALCULATION
ANNEX
Wherever possible, we used primary data for our
calculations. If primary data was not available, we
used proxies, modeling techniques and
assumptions that are well-dened and
documented in the VBA method papers. The IP&L
takes into account the gures and data reported
in the Holcim Integrated Annual Report 2022 and
the Sustainability Performance Report 2022.
Additionally, we calculate the impact of our
upstream supply chain, using an input/output
methodology (see Supply chain – upstream).
SCOPE
Our scope includes the entities covered in the
Group consolidated nancial statements, except
for the entities divested during the year (India and
Brazil). These divested entities are excluded from
all of the calculations in this report. The list of
principal consolidated companies is presented in
the Holcim Integrated Annual Report 2022,
page 192. In addition, all joint ventures and
associates are excluded from this report.
SUPPLY CHAIN – UPSTREAM
The sum of our total procurement spend
(excluding intercompany transfers) has been used
to calculate the GVA according to the VBA’s V0.1
methodology.
As an organization that purchases goods and
services on a global scale, we are committed to
determining the impact we are generating
throughout our supply chain. We have performed
this assessment through an input/output model:
Exiobase (version 3.8.2). This ts our needs best to
determine the environmental impact of each
Swiss Franc spent in our supply chain.
Exiobase has detailed and updated
environmental impacts for the countries we
operate in. Based on this we were able to calculate
the air emissions (from NOx, SOx, PM, VOC, Hg,
Cd, As, Pb, Cr and Ni) as well as the water
consumption and pollution, land use and waste
generated in our supply chain. These gures were
built up using as input the expenditure of Holcim
in 40 different spending categories on a country-
by-country basis. To calculate the impact of
health and safety incidents in our supply chain, we
have used data from the International Labour
Organization (ILO) and combined this with the
output of the Exiobase calculations.
Aligning with our Sustainability Performance
Report 2022, Scope 3 emissions have been
assessed according to a methodology aligned
with the GCCA and GHG protocols and assured
7
by EY (more information can be found in our
Sustainability Performance Report).
OWN OPERATIONS
FINANCIAL DIMENSION
•
Retained value (million CHF)
The sum of capital retained in the business
calculated by taking Recurring EBITDA after
leases and subtracting taxes, interest and
dividends (excluding the divested businesses).
•
Recurring EBITDA after leases:
CHF 3,577 million
•
Taxes:
CHF 731 million
•
Interest:
CHF 457 million
•
Dividends:
CHF 342 million
These numbers have been corrected for economic
inefciencies, based on the countries in which
Holcim operates and on the Corruption
Perceptions Index of 2020.
7
Refer to the “Assurance statement” in the Sustainability Performance Report 2022, pages 19–20.
7HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
SOCIOECONOMIC DIMENSION
Multiplied socioeconomic impacts
The multiplier effect of cash transfers to
employees (salaries), governments (direct taxes),
nance cost (interest) and shareholders
(dividends) has been reected at a ratio of 1:1 on
2022 expenditure. This number has been
corrected for economic inefciencies, based on
the countries in which Holcim operates and on the
Corruption Perceptions Index of 2020.
We assume that every Swiss Franc transfer will be
spent and therefore contributes to the (local)
economy. Even if not all of the money transferred
is spent, the assumption of the 1:1 multiplier
is justied due to secondary and tertiary
socioeconomic ripple effects caused by the cash
transfers through enhanced purchasing power.
Social initiatives
Here, we consider the contribution in the
following social initiatives: community education
and skills, community housing and infrastructure,
community health, community environment,
cultural, recreational and other projects. For each
Swiss Franc invested, an average multiplier effect
is considered. This multiplier effect is estimated
as follows, based on independent sources:
•
Education and skills projects: Calculated by
multiplying actual amount spent in 2022 on
education and skills projects by a factor of 118%.
This figure was derived using the
assumptions below.
Investments in education generate public
returns from higher income levels in the form of
income taxes, increased social insurance
payments and lower social transfers. We took the
global average return on investment (ROI) for
education on private and social schooling from a
study by G. Psacharopoulos and H.A.
Patrinos, 2004
8
).
•
Community housing and infrastructure:
Calculated by multiplying the actual amount
spent in 2022 on community housing and
infrastructure projects by a factor of 241%.
We used the ROIs for infrastructure (250%
based on the average factor of BCG report
9
)
and low-income housing (231%).
The multiplier for low-income housing was
derived from a social ROI on low-income housing
evaluated by Salman and Aslam (2009) for a case
study in Pakistan.
10
The study evaluates the social
purpose benet ow over ve years. It takes into
account the economic benets of low-income
housing (savings per family household, additional
income due to access to mortgage nance, value
of new employment generated and potential
gains from income-generation programs), but also
values social benets (savings on medical bills
due to improved water access, waste
management) as well as environmental benets
(cost saving by wastewater treatment). The net
present value (NPV) of social and environmental
benets was compared to that of project costs
(operational and capital costs) to derive the
benet cost ratio ROI of 231%.
•
Community health projects: Calculated by
multiplying the actual amount spent in 2022 on
community health projects by a factor of 413%.
This factor was based on a study on the social
value of public health investing (2020),
which
provides insights into the costs and benefits of
activities linked to the promotion of healthy
lifestyles and to the increase in community
awareness about health-related issues. A
combination of three studies was used: Jones
2012, Shipley and Hamilton 2011, Lobley and
Carrick 2011.
•
Community environment, cultural, recreational
and other projects: Calculated by multiplying
the actual amount spent in 2022 on community
cultural, recreational and other projects by a
factor of 100%. This multiplier was chosen
conservatively because most of the community
environment projects are related to provision of
recreational infrastructure.
Occupational injuries
Calculated by multiplying the number of fatalities
and injuries in 2022 per country by a country-
specic cost for each of these categories. These
gures were based on the VBA’s methodology.
The gure calculated reects the economic costs
due to injury or loss of life. Costs include social
costs for the person affected, such as loss of
current and future income, and medical costs.
Further, we have included the costs for the
community, including lost revenue, social
welfare payments and rehabilitation costs.
ASSUMPTIONS USED IN THE IP&L CALCULATION CONTINUED
8
Source: G. Psacharopoulos and H.A. Patrinos (2004). Returns to Investment in Education: A Further Update.
Available at: http://documents.worldbank.org/curated/en/468021468764713892/pdf/multi-page.pdf
9
BCG. The cement sector: a strategic contributor to Europe’s future.
10
A. Salman and J. Aslam (2009). Property rights: ensuring well being through low-income housing.
Available at: https://acumen.org/wp-content/uploads/2013/03/Property-rights-for-low-income-housing.pdf
8HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
Costs for the employer were not taken into
account, since these are already reected in the
nancial section of the IP&L.
For fatalities and injuries, the data was based on
an Australian research group (Safe Work Australia
2015).
11
The data was adjusted for GDP and
ination, based on the VBA’s methodology.
Employee education
Calculated based on the VBA’s methodology,
which takes into account the total hours of training
per country per employee, a country-specic
training coefcient, the expected increase in wage
due to these trainings, the annual turnover rate, the
age of the employees trained and the retirement
age per country. Based on these numbers, the
expected increase in wage was calculated for the
people leaving the organization and based on the
expected number of years to work, the future
enhanced earnings were calculated and
discounted to a net present value.
This approach enables us to estimate the wider
social benets of training (i.e., social benets felt
by our former employees). The benets of training
felt by those people who remain at Holcim will be
visible internally through efciency gains and
increased revenues.
ENVIRONMENTAL DIMENSION
CO
2
own operations
The social cost of carbon (SCC) represents the
current and future economic damages from the
emission of one ton of GHGs. The cost is calculated
by multiplying the tons of absolute gross CO
2
emissions by USD 111 (CHF 106). This gure was
derived using the assumptions below.
The amount of CO
2
considered corresponds to
our absolute gross emissions (Scope 1 and 2) over
a full calendar year. The total tons (t) of CO
2
are
multiplied by its societal value, which we
assumed to be CHF 106.4/ton in 2022.
We acknowledge that there are a large range of
estimates of the CO
2
societal value. As
recommended by the VBA methodology, we based
our gure on a 2012 PWC meta-analysis of
academic literature on the social cost of carbon,
which was USD 78/t (inated to 2022: USD 111.5/t).
Air
The damage costs of PM, SOx, NOx and VOC air
pollutants were based on the VBA method and
applied on a country-by-country basis.
Since the VBA methodology does not include all
the air pollutants relevant to Holcim, additional
sources were used to monetize the impacts of
dioxins and furans and heavy metals. A study
evaluating damage costs based on national
averages for 32 countries, related to health effects
from ingestion and inhalation, was used. The
assumptions on this study are found in the heavy
metal emissions section.
•
Heavy metal emissions: Calculated by
multiplying the emissions in 2022 by a monetary
figure derived using the assumptions below. The
respective values used can be found in the annex.
The damage costs of heavy metal emissions
(Hg, Pb, Cd, As, Cr and Ni) were determined from
a study evaluating damage costs based on
national averages for 32 countries, related to
health effects from ingestion and inhalation
(cancers but also neuro-toxic effects leading to IQ
loss, as well as subsequent loss of earnings
potential for Pb and Hg).
12
The analysis quantied burden, dispersion and
exposure (deposition velocities) to assess uptake
by plants and animals and the impact on the
human body (via consumption of tap water,
agricultural crops or animal products).
The damage costs were then calculated by
multiplying physical impacts by the appropriate
cost:
•
the unit cost for cancer includes medical
expenses, wage and productivity losses, and the
willingness to pay to avoid the pain and suffering
inflicted by the disease
•
the unit cost for IQ includes expenses associated
with remedial learning and loss in potential
lifetime earnings (costs are discounted at 3% but
without consideration given to increases in
willingness to pay with economic growth in
future years).
The study does not consider the effects of
groundwater contamination, adjustment of
ingestion dose to account for food preparation
and the implementation of remedial strategies
(e.g., ltration for tap water) or the potential
contribution of heavy metals and organic
micropollutants to other impacts of ne
particulate matter. Therefore, total impact
attributed to these pollutants can be
underestimated, but data from this study is used
as an approximation to value their impacts.
11
The Cost of Work-related Injury and Illness for Australian Employers, Workers and the Community: 2012–13, 2015.
Available at: https://www.safeworkaustralia.gov.au/system/les/documents/1702/cost-of-work-related-injury-and-disease-2012-13.docx.pdf
12
Valuing corporate environmental impacts. PwC methodology document.
Available at: https://www.pwc.co.uk/sustainability-climate-change/assets/pdf/pwc-environmental-valuation-methodologies.pdf
ASSUMPTIONS USED IN THE IP&L CALCULATION CONTINUED
9HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
Water
Calculated by multiplying the amount of water
consumed in own operations by CHF 3.2/m
3
and
the amount of water harvested by CHF 5.1/m
3
.
These costs were derived using the
assumptions below.
The societal cost of water is calculated based on
scarcity level of the location where water is
consumed or harvested. Scarcity level is
determined using the Aqueduct Water Risk Atlas
from WRI.org. The (site-specic) scarcity price is
provided by a 2013 Trucost report
13
and the water
scarcity levels from that report are aligned with
the categories from WRI. Since water is withdrawn
and harvested in different locations, the resulting
average cost per cubic meter is different.
Biodiversity
Calculated by multiplying the net amount of
hectares impacted (either disturbed or
rehabilitated) by CHF 4,442/ha. These gures
were derived using the assumptions below.
The net area rehabilitated or disturbed is
calculated by subtracting the total hectares of
rehabilitated land from the total hectares of
disturbed land.
These gures do not apply to the changes
observed in the reporting year, but to the total
number of hectares under company
responsibility. The evaluation is based on an
estimated distribution of habitats: forests;
shrublands/woodlands; grasslands; ruderal
habitats; bare rocks; wetlands; rivers/streams;
lakes/ponds; mangroves; salt marshes; coastal
zones; and cultivated land.
Based on a 2012 study on the value of ecosystems
and their services in monetary units.
14
Secondary resources and waste
The societal cost of hazardous and nonhazardous
waste is calculated by multiplying the amount of
nonhazardous waste that is disposed to landll or
incinerated by CHF 32.3/t and nonhazardous
waste that is recycled or downcycled by CHF
30.4/t. Hazardous waste that is sent to landll or
incineration is multiplied by CHF 23.1/t and
hazardous waste that is sent to recycling is
multiplied by CHF 22.4/t. These multipliers are
derived from an Australian study on hazardous
waste.
15
Costs for society include workplace injury and
illness, costs from treating the hazardous or
nonhazardous waste, government and regulatory
costs related to regulation of waste, and
environmental costs such as climate change costs
from greenhouse gas emissions and disamenity
costs related to decreasing house prices from
landlling, leaching and other air emission costs.
Both regulatory and health-related costs are
corrected for the countries in which Holcim
operates by GDP in those countries. Incineration
and recycling costs exclude the costs for
disamenity (which is assumed only applicable for
landlling) and leaching.
Nonhazardous wastes are assumed to contain
more organic materials and therefore contribute
more to greenhouse gas emissions and so to
climate change costs.
Secondary resources are calculated by
multiplying the amount of alternative fuels and
raw materials used by CHF 32.3/t and industrial
mineral components (MIC) and alternative
aggregates by CHF 20.9/t. These multipliers are
derived from the same Australian study on
hazardous waste.
15
This category includes alternative fuels and raw
materials, mineral components (MIC), and
reported alternative and recycled materials from
ready-mix concrete (RMX) and aggregates,
including asphalt.
Alternative fuels are assumed to avoid the costs of
disposing nonhazardous waste to landll or
incineration. It is assumed that 80% of the waste
would go to landll and 20% would be
incinerated.
Mineral components are assumed to avoid the
costs of disposing nonhazardous nonorganic
waste to landll. Therefore, costs related to
climate change are not accounted for in the
calculations. Leaching costs and disamenity costs
are however included. Also, regulatory costs and
injury costs are included and adjusted for by GDP
of the countries in which Holcim operates.
13
https://www.naturalcapitalcoalition.org/wp-content/uploads/2016/07/Trucost-Nat-Cap-at-Risk-Final-Report-web.pdf
14
Available at: https://www.sciencedirect.com/science/article/pii/S2212041612000101
15
Marsden Jacob Associates, SRU (2014). Estimate of the cost of hazardous waste in Australia.
Available at: https://www.environment.gov.au/protection/publications/cost-hazardous-waste
ASSUMPTIONS USED IN THE IP&L CALCULATION CONTINUED
10HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
* USD converted at CHF 0.95, Euro converted at CHF 1.00 and AUD at 0.66.
VALUES USED IN THE IP&L (OWN OPERATIONS)
SOCIOECONOMIC
Topic Indicator
Base price/
multiplier Unit Base year
Ination
factor
Price/multiplier
adjusted for ination
Price in CHF/
multiplier used*
Industrial accidents
Injuries were based on their severity: “short absence,” “long absence,” “partial incapacity” and “full incapacity”
and the geographical location of where the incident occurred.
Social initiatives
Housing and infrastructure 241% % N/A 1 241% 2.41
Health 413% % N/A 1 413% 4.13
Environmental, cultural,
recreational, other
100% % N/A 1 100% 1.00
Education and skills 118% % N/A 1 118% 1.18
Project management 100% % N/A 1 100% 1.00
Skills out Trainings of employees
Multipliers are country dependent (e.g., based on retirement age, average age,
total wages and number of training hours per person on a country level).
Stakeholder value
Salary 100% % N/A 1 100% 1
Finance cost 100% % N/A 1 100% 1
Tax 100% % N/A 1 100% 1
Dividend 100% % N/A 1 100% 1
ASSUMPTIONS USED IN THE IP&L CALCULATION CONTINUED
11HOLCIM    Integrated Prot & Loss Statement 2022
OUR VALUE ANNEX
ENVIRONMENTAL
Topic Indicator
Base price/
multiplier Unit Base year
Ination
factor
Price/multiplier
adjusted for ination
Price/multiplier
used in CHF*
CO
2
Scope 1 CO
2
own operations 94 USD/t 2019 1.19 112 106
CO
2
Scope 2 CO
2
from external power 94 USD/t 2019 1.19 112 106
CO
2
Scope 3
CO
2
from upstream
supplier spend
94 USD/t 2019 1.19 112 106
Air
PM
Multipliers are country dependent and based on the VBA methodology v0.1.
SO
x
NO
x
VOC
Dioxins and furans 27,000 €/g 2005 1.47 39,625 39,829
Hg 910,000 €/t 2005 1.47 1,335,536 1,342,383
Cd 29,000 €/t 2005 1.47 42,561 42,779
As 349,000 €/t 2005 1.47 512,200 514,826
Pb 965,000 €/t 2005 1.47 1,416,256 1,423,516
Cr 38,000 €/t 2005 1.47 55,770 56,056
Ni 3,800 €/t 2005 1.47 5,577 5,606
Water
Water consumed – own
operations
2.3 USD/m
3
2009 1.42 3.3 3.2
Water harvested 3.8 USD/m
3
2009 1.32 5.3 5.1
Biodiversity
Hectares disturbed 3,150 USD/ha 2007 1.48 4,654 4,442
Hectares rehabilitated 3,150 USD/ha 2007 1.48 4,654 4,442
Waste
Hazardous waste disposed
(landll or incineration)
26.8 AUD/t 2012 1.3 -34.9 -23.1
Hazardous waste recovered
(recycling or downcycling)
26 AUD/t 2012 1.3 -33.8 -22.4
Nonhazardous waste
disposed (landll or
incineration)
37.4 AUD/t 2012 1.3 -48.7 -32.3
Nonhazardous waste
recovered (recycling or
downcycling)
34.4 AUD/t 2012 1.3 -45.9 -30.4
Secondary resources
Alternative fuels and raw
materials
37.4 AUD/t 2012 1.3 48.7 32.3
Industrial mineral
components
24.2 AUD/t 2012 1.3 31.5 20.9
Alternate aggregates 24.2 AUD/t 2012 1.3 31.5 20.9
ASSUMPTIONS USED IN THE IP&L CALCULATION CONTINUED
* USD converted at CHF 0.95, Euro converted at CHF 1.00 and AUD at 0.66.
Holcim Ltd
Grafenauweg 10
630 0 Zug
Switzerland
www.holcim.com