Concrete Thinking for a Sustainable World

1. Concrete Thinking for a Sustainable World Concrete’s Durability and Energy-Efficiency Help the Environment Hello. I appreciate the opportunity to speak with you today. My name is ___________ and I am here to talk about the importance of sustainable development and how people in the cement and concrete industry are working for our environment. As a professional who (describe job description, organization), I am proud to provide products that build structures which provide shelter and warmth while protecting our future generations. Concrete offers exceptional stability, durability and design flexibility and it also offers many important environmental advantages through every stage of manufacturing and use. Concrete is one of the most environmentally-friendly construction products available.Hello. I appreciate the opportunity to speak with you today. My name is ___________ and I am here to talk about the importance of sustainable development and how people in the cement and concrete industry are working for our environment. As a professional who (describe job description, organization), I am proud to provide products that build structures which provide shelter and warmth while protecting our future generations. Concrete offers exceptional stability, durability and design flexibility and it also offers many important environmental advantages through every stage of manufacturing and use. Concrete is one of the most environmentally-friendly construction products available.

2. Our Discussion A Snapshot of Sustainable Development How Concrete Creates Sustainability Environmentally-Responsible Manufacturing A Comparison with other Building Materials The cement industry recognizes the growing importance of a concept called sustainable development, which is building for today and tomorrow without depleting future resources. During our discussion today, we will cover what sustainable development means and why it is so important for our country to embrace these practices. I will give an overview of how concrete is used to create sustainable buildings and what efforts we have taken to lessen the environmental impact during our manufacturing process. Finally, I will talk about our commitment to environmental stewardship, the voluntary goals our industry has set to further protect our environment. The cement industry recognizes the growing importance of a concept called sustainable development, which is building for today and tomorrow without depleting future resources. During our discussion today, we will cover what sustainable development means and why it is so important for our country to embrace these practices. I will give an overview of how concrete is used to create sustainable buildings and what efforts we have taken to lessen the environmental impact during our manufacturing process. Finally, I will talk about our commitment to environmental stewardship, the voluntary goals our industry has set to further protect our environment.

3. Population vs. Consumption Our nation has been taking a close look at the impact our actions are having in our environment. The United States makes up five percent of the world’s population. However, we consume more than 25 percent of the world’s energy. There a number of methods which companies, organizations and individuals across the country are using to lower our consumption. And in the building industry, we have worked for decades to identify and integrate processes to be more efficient.Our nation has been taking a close look at the impact our actions are having in our environment. The United States makes up five percent of the world’s population. However, we consume more than 25 percent of the world’s energy. There a number of methods which companies, organizations and individuals across the country are using to lower our consumption. And in the building industry, we have worked for decades to identify and integrate processes to be more efficient.

4. Energy Demand of Buildings US buildings use almost 10% of the world’s energy! This is because we have a great opportunity to find ways to conserve in our country. The energy consumption of our country is divided between residential and commercial buildings, transportation and industry. The largest amount of energy is consumed in the manufacture and use of our homes and buildings, almost forty percent of all energy needs. More surprisingly, the energy demands for our country’s “built environment” is ten percent of the world’s energy load. U.S. buildings use three times more energy than similar buildings in similar climates in EuropeThis is because we have a great opportunity to find ways to conserve in our country. The energy consumption of our country is divided between residential and commercial buildings, transportation and industry. The largest amount of energy is consumed in the manufacture and use of our homes and buildings, almost forty percent of all energy needs. More surprisingly, the energy demands for our country’s “built environment” is ten percent of the world’s energy load. U.S. buildings use three times more energy than similar buildings in similar climates in Europe

5. A Snapshot ofSustainable Development Sustainable Development – The ability to build the facilities and structures we need today without depleting resources for the future A Balance of Environmental issues Economic issues Social and safety issues Long-term view Do not create “environmental debt” In an effort to reduce the overall energy consumption of the country, all industries are embracing the concept of sustainable development. This is a term that you may be familiar with, but many of the people do not have a clear understanding of what it means. Quite simply, sustainable development is the ability to build the facilities and structures we need today without depleting resources for the future. Sustainability seeks to balance the economic, social and environmental impacts, recognizing that population growth will continue The reason why understanding sustainable development is difficult comes not in its theory, but in its practice. This is because it is complicated to determine the appropriate level of energy use. For example, although we all understand that cars cause pollution, they provide a multitude of benefits for society, so we would not consider making cars illegal. When we look at how to determine where energy is important, we need to look at a number of environmental, economic, social and safety issues and take a long-term view on when and how resources should be applied for the common good. Most importantly, we want to reach a balance where we do not create an “environmental debt” to ensure future generations have the same choices with energy usage that we do.In an effort to reduce the overall energy consumption of the country, all industries are embracing the concept of sustainable development. This is a term that you may be familiar with, but many of the people do not have a clear understanding of what it means. Quite simply, sustainable development is the ability to build the facilities and structures we need today without depleting resources for the future. Sustainability seeks to balance the economic, social and environmental impacts, recognizing that population growth will continue The reason why understanding sustainable development is difficult comes not in its theory, but in its practice. This is because it is complicated to determine the appropriate level of energy use. For example, although we all understand that cars cause pollution, they provide a multitude of benefits for society, so we would not consider making cars illegal. When we look at how to determine where energy is important, we need to look at a number of environmental, economic, social and safety issues and take a long-term view on when and how resources should be applied for the common good. Most importantly, we want to reach a balance where we do not create an “environmental debt” to ensure future generations have the same choices with energy usage that we do.

6. “Triple Bottom Line” As the primary purchasers and users of energy, our business community has the largest responsibility in managing our resources. In order to develop a system to determine where to invest our energy resources, many companies use the “triple bottom line” measurement system. This process goes beyond the traditional financial bottom line to understand that corporate leader have to measure the overall economic, environmental and social impact of their businesses. Many companies are managed by the principle that their ongoing success is based upon impressive bottom lines in all three of these areas – how they invest their money, how the act with their employees, customers and community members, and how they treat the physical environments in which they do business.As the primary purchasers and users of energy, our business community has the largest responsibility in managing our resources. In order to develop a system to determine where to invest our energy resources, many companies use the “triple bottom line” measurement system. This process goes beyond the traditional financial bottom line to understand that corporate leader have to measure the overall economic, environmental and social impact of their businesses. Many companies are managed by the principle that their ongoing success is based upon impressive bottom lines in all three of these areas – how they invest their money, how the act with their employees, customers and community members, and how they treat the physical environments in which they do business.

7. Green Building Government, business quickly adapting green building methods Demonstrate the efficient use of energy, water and materials Limit impact on outdoor environment Provide a healthier indoor environment Sustainable development challenges the design and construction industry to create buildings that acknowledge the life cycle of a building. Recognizing that operating a building over time is far more energy intensive than developing it, demand for durability and energy performance is growing The U.S government, on the federal and local level, is working closely with industry to help lower our energy usage through what is called “Green Building.” Green buildings are those that demonstrate the efficient use of energy, water and materials; limit impact on the outdoor environment; and provide a healthier indoor environment. There are a number of benefits to green buildings, including improved air quality and more access to daylight in addition to energy and cost savings. Sustainable development challenges the design and construction industry to create buildings that acknowledge the life cycle of a building. Recognizing that operating a building over time is far more energy intensive than developing it, demand for durability and energy performance is growing The U.S government, on the federal and local level, is working closely with industry to help lower our energy usage through what is called “Green Building.” Green buildings are those that demonstrate the efficient use of energy, water and materials; limit impact on the outdoor environment; and provide a healthier indoor environment. There are a number of benefits to green buildings, including improved air quality and more access to daylight in addition to energy and cost savings.

8. LEED Certification Leadership in Energy and Environmental Design (LEED) Building design and development certification program to measure: Sustainability Waste efficiency Energy and atmosphere Materials and resources Innovation and design Developing as “Green Building” standard The method most commonly used to measure the sustainability performance of new construction is called Leadership in Energy and Environmental Design certification, or LEED Green Building Rating system. Developed by the U.S. Green Building Council, representing all segments of the building industry, LEED certification was designed to transform how we build structures by establishing a common standard of “green building” measurement, promote integrated, whole-building design practices, recognize environmental leadership in the building industry and raise consumer awareness of green building benefits. A proposed building is measured on a number of factors, including sustainability, waste efficiency, energy needs and atmospheric conditions, material and resources required in construction and use and overall innovation and design. If the building measures up to these measurements they are given LEED certification. This certification is increasing in importance, because many public and private entities are requiring that building designs meet these measurements in order to proceed with construction.The method most commonly used to measure the sustainability performance of new construction is called Leadership in Energy and Environmental Design certification, or LEED Green Building Rating system. Developed by the U.S. Green Building Council, representing all segments of the building industry, LEED certification was designed to transform how we build structures by establishing a common standard of “green building” measurement, promote integrated, whole-building design practices, recognize environmental leadership in the building industry and raise consumer awareness of green building benefits. A proposed building is measured on a number of factors, including sustainability, waste efficiency, energy needs and atmospheric conditions, material and resources required in construction and use and overall innovation and design. If the building measures up to these measurements they are given LEED certification. This certification is increasing in importance, because many public and private entities are requiring that building designs meet these measurements in order to proceed with construction.

9. Concrete’s Enduring Benefits Helps architects, engineers and builders balance environmental responsibility with development needs The most widely used building material on the planet Easy-to-use and versatile Abundant and readily available Concrete has played a vital role in developing green buildings that meet LEED certification. Architects, engineers and builders have relied on concrete for more than 2,000 years to build lasting structures with minimal environmental resources, and some of the original structures are still standing today. Concrete is the most widely used building material on the planet, because it is easy-to-use, can be used in a number of different applications and is abundant and readily available.Concrete has played a vital role in developing green buildings that meet LEED certification. Architects, engineers and builders have relied on concrete for more than 2,000 years to build lasting structures with minimal environmental resources, and some of the original structures are still standing today. Concrete is the most widely used building material on the planet, because it is easy-to-use, can be used in a number of different applications and is abundant and readily available.

10. The Difference BetweenConcrete and Cement Cement is an ingredient of concrete Concrete includes cement, water, sand, and gravel or crushed stone Cement is the “glue” that holds the mix together As we talk about concrete, I thought I would take an opportunity to define the difference, between cement and concrete. While the definitions are not a complicated as sustainable development, I often notice that the two words are used interchangeably. Cement is an ingredient of concrete, the glue that holds the mix of water, sand, gravel or crushed stone together.As we talk about concrete, I thought I would take an opportunity to define the difference, between cement and concrete. While the definitions are not a complicated as sustainable development, I often notice that the two words are used interchangeably. Cement is an ingredient of concrete, the glue that holds the mix of water, sand, gravel or crushed stone together.

11. Concrete Components Other materials are locally sourced and require very little energy to obtain In fact, cement only comprises a portion of concrete, usually 10 to 12 percent of the entire mix. This is important because it demonstrates a significant environmental benefit of concrete. The majority of materials in concrete do not need to be manufactured. Instead, they can often be acquired nearby where they are going to be used, reducing the overall environmental impact of the building process.In fact, cement only comprises a portion of concrete, usually 10 to 12 percent of the entire mix. This is important because it demonstrates a significant environmental benefit of concrete. The majority of materials in concrete do not need to be manufactured. Instead, they can often be acquired nearby where they are going to be used, reducing the overall environmental impact of the building process.

12. A “Cradle to Grave” Perspective View strengths of product from life-cycle perspective Material acquisition Manufacture Construction Operational performance Reuse and recycling The long-term benefits of concrete compare favorably to initial resource requirements This leads to an important concept when we talk about sustainability – the life-cycle analysis. When we look at selection of building materials for construction, we measure it from a “cradle-to-grave” perspective. The overall energy use in building is not confined to the actual construction. It involves material acquisition, manufacture, construction, operational performance and reuse and recycling. I mentioned earlier that there are concrete structures that have been around for 2,000 years. Concrete requires an energy-intense process in the manufacture of construction, but this is a small investment over a building that potentially could last hundreds of years. When you measure the environmental cost of manufacture over the lifetime of a concrete building, it compares favorably to virtually every other building material.This leads to an important concept when we talk about sustainability – the life-cycle analysis. When we look at selection of building materials for construction, we measure it from a “cradle-to-grave” perspective. The overall energy use in building is not confined to the actual construction. It involves material acquisition, manufacture, construction, operational performance and reuse and recycling. I mentioned earlier that there are concrete structures that have been around for 2,000 years. Concrete requires an energy-intense process in the manufacture of construction, but this is a small investment over a building that potentially could last hundreds of years. When you measure the environmental cost of manufacture over the lifetime of a concrete building, it compares favorably to virtually every other building material.

13. Occupancy Heating and cooling Everyday activities Replacement items Roof Major appliances Siding, windows House Life Cycle This life-cycle concept is easily understood when applied to the life of a house. As you can see here, it takes the long term view, from the pre-construction material all the way through to the demolition and disposal. It adds the shipping and construction energy, heating and cooling during occupancy, replacement materials and maintenance during the life of the structure and finally, the cost for removal of the building. This life-cycle concept is easily understood when applied to the life of a house. As you can see here, it takes the long term view, from the pre-construction material all the way through to the demolition and disposal. It adds the shipping and construction energy, heating and cooling during occupancy, replacement materials and maintenance during the life of the structure and finally, the cost for removal of the building.

14. The Life-Cycle ofBuilding Materials Embodied energy for materials acquisition, manufacturing and construction accounts for < 2% of total energy Occupant energy-use accounts for 98% of life-cycle energy It may surprise you to see how significant the occupancy phase is during the life of a house. The steps leading up to construction count for less than two percent of the energy used. More than 98 percent of the energy is used during occupancy. That means that the greatest environmental benefits will be gained when we concentrate on how to lower maintenance and improve energy-efficiency in our homes and buildings.It may surprise you to see how significant the occupancy phase is during the life of a house. The steps leading up to construction count for less than two percent of the energy used. More than 98 percent of the energy is used during occupancy. That means that the greatest environmental benefits will be gained when we concentrate on how to lower maintenance and improve energy-efficiency in our homes and buildings.

15. Three PrimaryEnvironmental Benefits Durability Does not rust, rot or burn Long-term environmental benefits greatly outweigh environmental cost of manufacture Energy-efficiency Not subject to temperature swings and leakage, reducing heating and cooling costs Recycling When you look at overall life-cycle, concrete offers three primary environmental benefits in its use. The first benefit is its durability. Durability is a significant sustainable attribute of concrete because it will not rust, rot, or burn, requiring less energy and resources overtime to repair or replace. Beyond buildings, concrete builds durable, long-lasting structures including sidewalks, building foundations and envelopes, as well as roadways and bridges. Concrete also provides long-term energy efficiency when properly used. This is an area where the industry and our customers – architects, engineers and builders – are providing great innovation. For example, concrete minimizes the effects that produce what are called “urban heat islands,” urban environments that have higher temperatures in areas because there are few trees, and a lot of paved surfaces and dark roofs on buildings. This additional heat causes air conditioning systems to work harder and promotes the formation of smog. Light-colored concrete absorbs less heat and reflects more light than dark-colored materials –– thereby reducing heat gain. Light colored pavements also require less site lighting to provide safe night-time illumination levels, whether on parking lots, driveways, or sidewalks When you look at overall life-cycle, concrete offers three primary environmental benefits in its use. The first benefit is its durability. Durability is a significant sustainable attribute of concrete because it will not rust, rot, or burn, requiring less energy and resources overtime to repair or replace. Beyond buildings, concrete builds durable, long-lasting structures including sidewalks, building foundations and envelopes, as well as roadways and bridges. Concrete also provides long-term energy efficiency when properly used. This is an area where the industry and our customers – architects, engineers and builders – are providing great innovation. For example, concrete minimizes the effects that produce what are called “urban heat islands,” urban environments that have higher temperatures in areas because there are few trees, and a lot of paved surfaces and dark roofs on buildings. This additional heat causes air conditioning systems to work harder and promotes the formation of smog. Light-colored concrete absorbs less heat and reflects more light than dark-colored materials –– thereby reducing heat gain. Light colored pavements also require less site lighting to provide safe night-time illumination levels, whether on parking lots, driveways, or sidewalks

16. High Performance Concrete Walls Reduce typical heating and cooling costs by up to 25% Why they work High insulation value Low infiltration Thermal mass Within the structure, the industry has had great success with high-performance insulated concrete walls. Homes and buildings constructed from insulated concrete walls are not subject to large daily temperature fluctuations. This means home or building owners can lower heating and cooling bills up to 25 percent – and occupants within these structures are more comfortable. Also heating, ventilating, and air-conditioning can be designed with smaller-capacity equipment. These walls work for three reasons: They provide high insulation value, low infiltration and reduce thermal mass. These three factors provide energy performance unmatched by traditional frame construction. As an example, a code compliant wood framed house in Chicago would need 2 x 12 walls filled with fiberglass batts to equal the energy performance of a 6” insulated concrete form house. (Refer to the photo as an example). Within the structure, the industry has had great success with high-performance insulated concrete walls. Homes and buildings constructed from insulated concrete walls are not subject to large daily temperature fluctuations. This means home or building owners can lower heating and cooling bills up to 25 percent – and occupants within these structures are more comfortable. Also heating, ventilating, and air-conditioning can be designed with smaller-capacity equipment. These walls work for three reasons: They provide high insulation value, low infiltration and reduce thermal mass. These three factors provide energy performance unmatched by traditional frame construction. As an example, a code compliant wood framed house in Chicago would need 2 x 12 walls filled with fiberglass batts to equal the energy performance of a 6” insulated concrete form house. (Refer to the photo as an example).

17. Three PrimaryEnvironmental Benefits Durability Does not rust, rot or burn Long-term environmental benefits greatly outweigh environmental cost of manufacture Energy-efficiency Not subject to temperature swings and leakage, reducing heating and cooling costs Recycling Concrete can contain recycled materials, reducing industrial by-products The third benefit is the ability to recycle throughout the life-cycle of concrete. We will talk about this in greater detail later, but In concrete’s life cycle, recycling is present from the beginning – many wastes and industrial byproducts like fly ash that would otherwise clog landfills can be added to concrete mixes. These by-products also reduce reliance on raw materials. For example: In 2001, the concrete industry used 11,400,000 metric tons of fly ash – a byproduct of coal combustion at electric power utility plants. Finally, when a concrete structure has served its purpose, it can be recycled as aggregate in new concrete, or as road base. Even the reinforcing steel in concrete (which often is made from recycled materials) can be recycled and reused.The third benefit is the ability to recycle throughout the life-cycle of concrete. We will talk about this in greater detail later, but In concrete’s life cycle, recycling is present from the beginning – many wastes and industrial byproducts like fly ash that would otherwise clog landfills can be added to concrete mixes. These by-products also reduce reliance on raw materials. For example: In 2001, the concrete industry used 11,400,000 metric tons of fly ash – a byproduct of coal combustion at electric power utility plants. Finally, when a concrete structure has served its purpose, it can be recycled as aggregate in new concrete, or as road base. Even the reinforcing steel in concrete (which often is made from recycled materials) can be recycled and reused.

18. Concrete at Work:A Case Study Fisher Pavilion, Seattle Center, Seattle, WA: Exhibition Hall hosts more than 250k annual visitors Concrete used for nearly 90% of facility Pavilion buried on three sides – Concrete eliminates large temperature swings Energy costs are more than 20% below industry standards Referred to as a “1,000-year building” One of the Top Ten Green Projects of 2003 LEED certified Here’s an example of how concrete is providing sustainability in a large-scale project. Fisher Pavilion, a new concrete exhibition hall in Seattle, Washington that hosts more than 250,000 visitors each year, was constructed in 2000. To create the public space with a concrete face, project architects employed a combination of precast and cast-in-place concrete for 90 percent of the facility. The pavilion is buried on three sides, with 19,000 square feet of usable roof plaza. The pavilion offers approximately 14,000 square feet of flat floor exhibition space with a nearly 20-foot clear height. Concrete’s thermal mass helps even out changes in building temperature, a key component of the energy efficiency of Fisher Pavilion. Earth-sheltered concrete eliminates significant temperature swings on three sides. The result is substantial energy savings that help beat the industry’s heating and cooling standard by 20 percent. The project manager cited the use of concrete as a key factor in its durability, saying that if it is not demolished, will last for 1,000 years. The building not only is in the process of completing LEED certification, which is required on all large scale city-funded projects in Seattle, it also earned recognition as one of the American Institute of Architect’s Committee on the Environment Top Ten Green Projects of 2003.Here’s an example of how concrete is providing sustainability in a large-scale project. Fisher Pavilion, a new concrete exhibition hall in Seattle, Washington that hosts more than 250,000 visitors each year, was constructed in 2000. To create the public space with a concrete face, project architects employed a combination of precast and cast-in-place concrete for 90 percent of the facility. The pavilion is buried on three sides, with 19,000 square feet of usable roof plaza. The pavilion offers approximately 14,000 square feet of flat floor exhibition space with a nearly 20-foot clear height. Concrete’s thermal mass helps even out changes in building temperature, a key component of the energy efficiency of Fisher Pavilion. Earth-sheltered concrete eliminates significant temperature swings on three sides. The result is substantial energy savings that help beat the industry’s heating and cooling standard by 20 percent. The project manager cited the use of concrete as a key factor in its durability, saying that if it is not demolished, will last for 1,000 years. The building not only is in the process of completing LEED certification, which is required on all large scale city-funded projects in Seattle, it also earned recognition as one of the American Institute of Architect’s Committee on the Environment Top Ten Green Projects of 2003.

19. Environmentally Responsible Manufacturing Priorities Minimize emissions and waste Improve energy efficiency Ensure product quality Much of the concern about concrete’s environmental impact comes from the manufacture of cement, an energy-intensive process that produces carbon dioxide. The cement industry is committed to being environmentally responsible manufacturers, making a high-quality product in a safe and efficient operation. The cement manufacturing process is designed to minimize emissions and waste, utilize energy efficiently and ensure product quality.Much of the concern about concrete’s environmental impact comes from the manufacture of cement, an energy-intensive process that produces carbon dioxide. The cement industry is committed to being environmentally responsible manufacturers, making a high-quality product in a safe and efficient operation. The cement manufacturing process is designed to minimize emissions and waste, utilize energy efficiently and ensure product quality.

20. Emissions Reduction Cement industry was one of the first to address emissions 33% reduction of CO2 since 1975 Voluntarily commitment to reduce emissions 10% from 1990 baseline levels by 2020 Active participants in EPA’s Climate Wise program, Climate VISION U.S. efforts have been incorporated globally In fact, the industry has a leadership record in voluntary reforms. We were one of the first industries on study climate change issue measure our progress on lowering carbon dioxide emissions. And we have made great strides in improving our processes. Our industry has reduced carbon dioxide output by 33 percent since 1975. We continue to identify ways in which we can lower our environmental impact. We have voluntarily committed to reduce emissions by ten percent from 1990 baseline levels by 2020. This process involves looking at how we can find further efficiencies in manufacturing systems that already employ state-of-the-art technology and processes. In order to accomplish these goals, we work with the Environmental Protection Agency and its Climate Wise program, as well as the federal Climate VISION program. We are proud to say that our efforts in the U.S. have had a significant global impact. The research and development dollars that we spend here to improve the process are integrated in facilities throughout the world, creating environmental benefits for everyone. In addition, our work has led to the development of a global protocol for measuring cement industry greenhouse gas emissions.In fact, the industry has a leadership record in voluntary reforms. We were one of the first industries on study climate change issue measure our progress on lowering carbon dioxide emissions. And we have made great strides in improving our processes. Our industry has reduced carbon dioxide output by 33 percent since 1975. We continue to identify ways in which we can lower our environmental impact. We have voluntarily committed to reduce emissions by ten percent from 1990 baseline levels by 2020. This process involves looking at how we can find further efficiencies in manufacturing systems that already employ state-of-the-art technology and processes. In order to accomplish these goals, we work with the Environmental Protection Agency and its Climate Wise program, as well as the federal Climate VISION program. We are proud to say that our efforts in the U.S. have had a significant global impact. The research and development dollars that we spend here to improve the process are integrated in facilities throughout the world, creating environmental benefits for everyone. In addition, our work has led to the development of a global protocol for measuring cement industry greenhouse gas emissions.

21. Focus of Emissions Reduction Incorporate new technologies Improve product formulation Develop new applications To achieve our emissions reduction goal, the cement industry is focusing on three areas: Taking advantage of new technologies by integrating state-of-the-art equipment to improve energy efficiency of the manufacturing process through decreased fossil fuel use, and greater use of alternative fuels and recycled materials. We have invested in upgrading, replacing and constructing newer, more efficient cement manufacturing plants. We are reducing electricity and fuel use with the application of more efficient fans, motors, and other equipment utilized in the cement-making process. Conduct research and develop new applications for cement and concrete that improve energy efficiency and durability developing and promoting concrete products that provide sustainable solutions for the building, design and construction industry, such as the insulated concrete wall. Improving product formulation to reduce energy of production and minimize the use of natural resources by using a lower proportion of calcined materials, thereby reducing carbon dioxide emissions per unit of product. To achieve our emissions reduction goal, the cement industry is focusing on three areas: Taking advantage of new technologies by integrating state-of-the-art equipment to improve energy efficiency of the manufacturing process through decreased fossil fuel use, and greater use of alternative fuels and recycled materials. We have invested in upgrading, replacing and constructing newer, more efficient cement manufacturing plants. We are reducing electricity and fuel use with the application of more efficient fans, motors, and other equipment utilized in the cement-making process. Conduct research and develop new applications for cement and concrete that improve energy efficiency and durability developing and promoting concrete products that provide sustainable solutions for the building, design and construction industry, such as the insulated concrete wall. Improving product formulation to reduce energy of production and minimize the use of natural resources by using a lower proportion of calcined materials, thereby reducing carbon dioxide emissions per unit of product.

22. Improving Product Formulation Two major ingredients driving sustainability Limestone – New guidelines produce annual benefits Reduction in raw materials use of 1.6 million tons Reduction in energy use of over 11.8 trillion BTUs Reduction in carbon dioxide emissions of over 2.5 million tons Cement kiln dust 8 million tons, more than 75% of available CKD Ensures product quality while creating efficiencies There are two major ingredients that provide efficient solutions in manufacturing. The industry has recently introduced guidelines which will allow for use of ground limestone as a raw material of cement. The importance of including limestone to positively impact our industry’s environmental performance is directly related to how we make cement. By substituting a small portion of limestone in Portland cement we can reduce the energy consumption required and overall carbon dioxide emissions. It will produce substantial improvements. Each year, it will: Reduce the amount of raw materials by 1.6 million tons Reduce energy use by more than 11.8 trillion BTUs Reduce carbon dioxide emissions by more than 2.5 tons The industry has reduced its own waste by recycling more than 75 percent of cement kiln dust – nearly eight million tons each year – directly back into the cement kiln as raw material.There are two major ingredients that provide efficient solutions in manufacturing. The industry has recently introduced guidelines which will allow for use of ground limestone as a raw material of cement. The importance of including limestone to positively impact our industry’s environmental performance is directly related to how we make cement. By substituting a small portion of limestone in Portland cement we can reduce the energy consumption required and overall carbon dioxide emissions. It will produce substantial improvements. Each year, it will: Reduce the amount of raw materials by 1.6 million tons Reduce energy use by more than 11.8 trillion BTUs Reduce carbon dioxide emissions by more than 2.5 tons The industry has reduced its own waste by recycling more than 75 percent of cement kiln dust – nearly eight million tons each year – directly back into the cement kiln as raw material.

23. Depending on application, many materials can be used Foundry sand Mill scale Fly ash Lime sludge We are safely utilizing suitable wastes generated by other industries as alternative fuels and raw materials. By doing so we can make a valuable product while saving precious fossil fuels, reducing greenhouse gases and other emissions, and reusing wastes that otherwise would be treated in a less environmentally preferable manner, such as a landfill. These raw materials include: Fly ash – a byproduct of coal combustion at electric utilities. As an example, more than 11 million metric tons of fly-ash were used in concrete in 2001 Foundry sand — a byproduct of metal casting Mill scale — a byproduct from the iron and steel industries Lime sludge — waste product generated by recycling paperWe are safely utilizing suitable wastes generated by other industries as alternative fuels and raw materials. By doing so we can make a valuable product while saving precious fossil fuels, reducing greenhouse gases and other emissions, and reusing wastes that otherwise would be treated in a less environmentally preferable manner, such as a landfill. These raw materials include: Fly ash – a byproduct of coal combustion at electric utilities. As an example, more than 11 million metric tons of fly-ash were used in concrete in 2001 Foundry sand — a byproduct of metal casting Mill scale — a byproduct from the iron and steel industries Lime sludge — waste product generated by recycling paper

24. Material AcquisitionA Comparison withOther Building Materials One of the important aspects of sustainable development is to look at all the options you have for a particular task and then identify the overall environmental cost of each option. In the cement industry, we are compared to wood and steel. While we understand that our manufacturing process is energy-intensive, it is also important to look at material acquisition, the environmental cost required to collect raw materials. And we measure up very well in this area.One of the important aspects of sustainable development is to look at all the options you have for a particular task and then identify the overall environmental cost of each option. In the cement industry, we are compared to wood and steel. While we understand that our manufacturing process is energy-intensive, it is also important to look at material acquisition, the environmental cost required to collect raw materials. And we measure up very well in this area.

25. Material Acquisition Study Reputable research from Canadian wood industry Compared three building materials Wood (logging) Steel (iron ore mining) Concrete (aggregate quarrying) How do we know this? National Resources Canada sponsored a study conducted by Forintek, the Canadian wood industry’s research arm. Forintek’s study compared logging for wood products, iron ore mining for steel products, limestone quarrying for cement making, and aggregate quarrying for concrete.How do we know this? National Resources Canada sponsored a study conducted by Forintek, the Canadian wood industry’s research arm. Forintek’s study compared logging for wood products, iron ore mining for steel products, limestone quarrying for cement making, and aggregate quarrying for concrete.

26. Materials Acquisition Phase The study measured the overall environmental impact in four areas: Extent – the physical range of the affected area Intensity – the degree of damage to a site Duration – The length of time on the affected site, and Significance – the biological and ecological impact to the site As you can see, concrete measures as good or best in all four of the categories. In addition, we have the lowest rating of the three materials on the Impact Index, the measure that was produced by the survey.The study measured the overall environmental impact in four areas: Extent – the physical range of the affected area Intensity – the degree of damage to a site Duration – The length of time on the affected site, and Significance – the biological and ecological impact to the site As you can see, concrete measures as good or best in all four of the categories. In addition, we have the lowest rating of the three materials on the Impact Index, the measure that was produced by the survey.

27. Report Highlights Concrete has a lower impact than that of other construction materials Resource depletion is not an issue for cement and concrete Impacts associated with extraction are the greatest for wood According to the research, the impact of cement material extraction is less than that of other construction materials. Their disruption to the environment is closely contained, usually less than several hundred acres for a typical aggregate quarry. More importantly, resource depletion is not an issue for cement and concrete. The Forintek report concludes that the ecological impacts associated with extraction are the greatest for wood. This is because forests provide many ecological and physical functions including pollution absorption, climate regulation, soil production, watershed protection, carbon recycling, wildlife habitat, and human recreational activities. The amount of land disruption per unit of wood building materials is high. Hundreds of thousands of acres are catastrophically disturbed each year. Replanting programs are in place, but today’s tree farms do not begin to replicate the bio-diversity of the original forests. Even if genuine renewal to the previous state was possible, the process is measured in generations rather than years.According to the research, the impact of cement material extraction is less than that of other construction materials. Their disruption to the environment is closely contained, usually less than several hundred acres for a typical aggregate quarry. More importantly, resource depletion is not an issue for cement and concrete. The Forintek report concludes that the ecological impacts associated with extraction are the greatest for wood. This is because forests provide many ecological and physical functions including pollution absorption, climate regulation, soil production, watershed protection, carbon recycling, wildlife habitat, and human recreational activities. The amount of land disruption per unit of wood building materials is high. Hundreds of thousands of acres are catastrophically disturbed each year. Replanting programs are in place, but today’s tree farms do not begin to replicate the bio-diversity of the original forests. Even if genuine renewal to the previous state was possible, the process is measured in generations rather than years.

28. Our Commitment toEnvironmental Stewardship Building upon our legacy A focus on continuous improvement Innovation and education This is not to say that we do not understand that we need to continue to improve how we treat our environment as an industry. We are proud to say that we have recognized how important this issue is for us and we have developed measurable goals to demonstrate our commitment. As importantly, we are dedicated to educating our industry and our customers on what we can do to take advantage of the technologies and processes currently in place. I have been working with the Portand Cement Association, a trade association representing cement companies, to teach architects, builders and engineers about sustainable development practices. The organization is dedicated to keeping sustainability as a core value of the companies it represents. Thank you. This is not to say that we do not understand that we need to continue to improve how we treat our environment as an industry. We are proud to say that we have recognized how important this issue is for us and we have developed measurable goals to demonstrate our commitment. As importantly, we are dedicated to educating our industry and our customers on what we can do to take advantage of the technologies and processes currently in place. I have been working with the Portand Cement Association, a trade association representing cement companies, to teach architects, builders and engineers about sustainable development practices. The organization is dedicated to keeping sustainability as a core value of the companies it represents. Thank you.