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1
Extraction
The process begins with the exploitation and extraction of limestone, gypsum, and pozzolan.
Extraction
The process begins with the exploitation and extraction of limestone, gypsum, and pozzolan.
CONTENT
MESSAGE FORM THE GENERAL MANAGEMENT
OUR BUSINESS
01
OUR BUSINESS
  • ABOUT US
  • OUR ADDED VALUE
  • CORPORATE GOVERNANCE
SUSTAINABLE MANAGEMENT
02
SUSTAINABLE
MANAGEMENT
  • SUSTAINABILITY STRATEGY
  • STAKEHOLDER
    RELATIONS
COMMITMENTS TO OUR
STAKEHOLDERS
03
COMMITMENTS TO
OUR STAKEHOLDERS
  • OUR EMPLOYEES
  • OUR SUPPLIERS AND CONTRACTORS
  • OUR COMMUNITIES
  • OUR CLIENTS
ENVIRONMENTAL MANAGEMENT
04
ENVIRONMENTAL
MANAGEMENT
  • ENVIRONMENTAL IMPACT OF OUR OPERATIONS
  • RESOURCE CONSUMPTION AND MANAGEMENT
GRI INDEX
05
GRI INDEX
ES
SUSTAINABILITY REPORT 2016
Slide to continue
CONTENT
MESSAGE FROM THE GENERAL MANAGEMENT
OUR BUSINESS
01
OUR BUSINESS
  • ABOUT US
  • OUR ADDED VALUE
  • CORPORATE GOVERNANCE
SUSTAINABLE MANAGEMENT
02
SUSTAINABLE
MANAGEMENT
  • SUSTAINABILITY STRATEGY
  • STAKEHOLDER
    RELATIONS
COMMITMENTS TO
OUR STAKEHOLDERS
03
COMMITMENTS TO
OUR STAKEHOLDERS
  • OUR EMPLOYEES
  • OUR SUPPLIERS AND CONTRACTORS
  • OUR COMMUNITIES
  • OUR CLIENTS
ENVIRONMENTAL MANAGEMENT
04
ENVIRONMENTAL
MANAGEMENT
  • ENVIRONMENTAL IMPACT OF OUR
    OPERATIONS
  • RESOURCE CONSUMPTION AND
    MANAGEMENT
GRI INDEX
05
GRI INDEX
MESSAGE FROM THE
GENERAL MANAGEMENT

We are pleased to present UNACEM’s fourth sustainability report, prepared in accordance with the Global Reporting Initiative’s (GRI) G4 Guidelines, which allows us to transparently share the results of our sustainability management with all of our stakeholders during 2016. Value creation and our commitment to Peru’s development are the pillars that have enabled us to continue to grow sustainably, constantly bettering our management related to the impacts caused by our operations and maintaining our position of leadership in the sector.

Our sustainability management is based on our Integrated Management System (IMS), certified ISO 9001, ISO 14001, OHSAS 18001, BASC, and ISPS standards, which guarantees that our operations are carried out with the highest levels of quality, environmental performance, occupational health and safety, and the protection of our facilities. We also continue to work on incorporating the ISO 26000 voluntary corporate responsibility standard into our management system.

Through our sustainability policy, we contribute to the seventeen Sustainable Development Goals (SDG) and their objectives. For the first time ever, we are on the verge of reaching the Advanced Level of the United Nations Global Compact by communicating our progress with regard to its ten principles on labor, human rights, environmental, and anticorruption matters.

The construction sector’s activity dropped by 3.1% in 2016, a lower contraction than that experienced in 2015, which totaled 5.8%. This was the result of lower public and private investment, which affected our cement dispatches.

We are especially proud to note that 2016 marked the one hundredth anniversary of our Cemento Sol brand in the Peruvian market, where it is widely recognized as the leading cement brand nationwide, according to the study conducted by Ipsos Perú. This event is a source of great pride for us, and motivates us to continue working to remain the most preferred brand among our consumers and customers.

Another major milestone during the report period was the execution of the comprehensive agreement with the peasant community of Huancoy, located inside the area of influence of our Condorcocha plant in Tarma. Following three years of participative dialogue with the Governing Council and its Agreement Review Commission, we successfully reached major agreements for the promotion of this community’s sustainable development.

As a company, we are firmly committed to working to ensure that our operations are sustainable over time. It is with this purpose in mind that we continually incorporate processes that allow us to mitigate our impacts. In this regard, we develop products that generate a lower environmental impact, such as blended cements, and build a rapport with customers and consumers, primarily through our Progresol network.

As a company, we are firmly committed to working to ensure that our operations are sustainable over time. It is with this purpose in mind that we continually incorporate processes that allow us to mitigate our impacts. In this regard, we develop products that generate a lower environmental impact, such as blended cements, and build a rapport with customers and consumers, primarily through our Progresol network.

We have an Occupational Health and Safety Management System certified under the OHSAS 18001 standard. This past year, we focused on implementing proactive safety indicators through our management system, in order to ensure our staff’s compliance with safety standards. As a result of this hard work, our frequency rates dropped by 50.5%, severity by 98.9%, and accident rates by 99.6%, compared to 2015.

In terms of community relations, through the Asociación UNACEM we are committed to capacity building and social and infrastructure investment projects for the communities located near our Atocongo and Condorcocha plants, based on our five pillars of community action: social infrastructure, health, education, the environment, and community relations.

With regard to environmental matters, in keeping with our ISO 14001 certification, we comply with all sector legislation in force, as always, controlling our emissions and optimizing water and energy consumption, as well as reusing our waste.

We have also continued with the carbon and water footprint measurement processes, as well as the drafting of procedures for their inclusion in the company’s Integrated Management System. In the case of the water footprint, UNACEM registered in the Peruvian National Water Authority’s (ANA) Water Footprint Program to obtain its Blue Certificate.

Special note should be made of our commitment to spreading good practices among our suppliers and contractors throughout our value chain. For the second year in a row, we implemented the UNACEM Value Chain Transparency program, so that eight of our strategic partners completed their own sustainability reports. We also provided ongoing training to foremen, construction workers, and do-it-yourself homebuilders.

As a company, we continue to strengthen our value chain and we remain firm in our commitment to Perú’s development, through our promotion of programs and projects that add value to our communities to make them sustainable.

During 2017, we will continue to work on strengthening our sustainability management, prioritizing dialogue with our stakeholders (G4‑1).


CARLOS UGÁS
General Managing Director
UNACEM S.A.A

ARMANDO CASIS
General Manager
Asociación UNACEM

104,528.6

TONS OF CO2EMISSION REDUCED IN 2016.

We are taking part in the National Water Authority’s (ANA) Water Footprint Program, in order to obtain our Blue Certificate.

100

years since the founding of Cemento Sol, recognized as the leading brand in the Peruvian market.

The ASOCIACIÓN UNACEM promotes capacity building and social investment projects in the communities, based on five pillars of community action.

73.0%

of training provided to employees addressed occupational health and safety matters.

104,528.6
TONS OF
CO2
EMISSIONS REDUCED
BY 2016.
WE ARE TAKING PART IN THE NATIONAL WATER AUTHORITY'S (ANA) WATER FOOTPRINT PROGRAM, IN ORDER TO OBTAIN OUR BLUE CERTIFICATE.
100
YEARS SINCE
FOUNDING OF
CEMENTO SOL,
RECOGNIZED AS THE LEADING
BRAND IN THE
PERUVIAN MARKET.
73.0%
OF
TRAINING
PROVIDED TO
EMPLOYEES
ADDRESSED
OCCUPATIONAL HEALTH AND SAFETY MATTERS.
THE ASOCIACIÓN UNACEM PROMOTES CAPACITY BUILDING AND SOCIAL INVESTMENT PROJECTS IN THE COMMUNITITES, BASED ON FIVE PILLARS OF COMMUNITY ACTION.
OUR
BUSINESS
ABOUT
US
Unión Andina de Cementos S.A.A. (UNACEM) is the leading Peruvian company in our sector. Our group broadened its horizons in 2011, with the entry into operation of the Drake Cement plant, located in Arizona, in the United States of America; and again in 2014, with the acquisition of the Ecuadorian company Lafarge Cementos S.A., now UNACEM Ecuador S.A., and the acquisition of a 51.0% share in PREANSA Chile; and in 2016, with completion of construction on the PREANSA Colombia industrial concrete structures plant. We are also present in the Peruvian electricity market, through our subsidiary CELEPSA.

Our ordinary shares are listed on the Lima Stock Exchange (BVL) and we are regulated by the Peruvian Securities and Exchange Commission (SMV).(G4‑7)

We are engaged in the manufacture, commercialization, and sale of clinker, cements, and other construction materials, as well as the operation of the Conchán pier.

In Perú, we have two production plants:
  • Atocongo plant, located in the Villa María del Triunfo district, province of Lima, Lima region.
  • Condorcocha plant, located in the La Unión Leticia district, province of Tarma, Junín region.
ABOUT US

OUR CORPORATE VALUES

At UNACEM, we have defined the values that guide our management:

We have internal standards of conduct and an Integrated Management System that allow us to optimize our institutional performance through our quality, environmental, and occupational health and safety standards. Additionally, we adhere to and have received certification under the following initiatives and standards (G4‑15) (G4‑56).
/

ISO 14001 Standard1

Atocongo plant, Condorcocha plant, and Conchán pier

ISO 9001 Standard2

Atocongo plant, Condorcocha plant, and Conchán pier

OHSAS 180013

Atocongo plant, Condorcocha plant, and Conchán pier

ISPS4

Conchán pier

BASC Certification5

Conchán pier

United Nations (UN) Global Compact

1 Certification in Environmental Management Systems.
2 Certification in Quality Management Systems.
3 Certification in Occupational Health and Safety Management Systems.
4 International Ships and Port Security (ISPS) Code.
5 Certification in Management and Security Control Systems.

Our sustainable
management is based on
an Integrated Management
System (IMS), certified
under ISO 9001, ISO 14001,
OHSAS 18001, BASC, and
PBIP standards.
ABOUT US

OUR PRODUCTION PROCESS (G4‑12)

1.Extraction
The process begins with the exploitation and extraction of limestone, gypsum, and pozzolan.

2.Primary Crushing
The extracted material is crushed to approximately 18 cm.

3.Secondary Crushing
The size is reduced to less than 8 cm.

4.Pre-Homogenization
In a circular yard, we pre-homogenize the limestone, in order to obtain a uniform mix, with an adequate chemical composition.

5.Milling and Homogenization
The material is pressed and milled until obtaining the appropriate particle size and chemical balance (“raw material”).

6.Clinker Production
The raw material is subjected to a temperature of 1,450 °C to obtain clinker, an intermediate input in the manufacture of cement.

7.Clinker Cooling
The clinker is abruptly cooled to achieve a better stability in its chemical composition.

8.Cement Milling
Cement is obtained by mixing and milling the clinker, gypsum, pozzolan, and other additives.

9.Packaging and Dispatch
The bagging machines fill the 42.5 kg bags and the bulk cement is discharged directly into the trucks in big bags.

10.Distribution
The cement is distributed and sold to over 400 Progresol home improvement stores, along with authorized distributors in the provinces.

11.Exportation
The cement is transported 8.2 km to the Conchán pier via a tubular conveyor belt.

12.Quality Control
Performed throughout the production process.

OUR
ADDED VALUE
In 2016, our cement dispatches fell by 7.9% compared to 2015, due to the contraction of demand in the construction sector. Despite the circumstances, our net earnings rose by 139.1% over the previous year (from S/ 130.5 million in 2015 to S/ 312.2 million in 2016), representing 16.7% of net sales, as compared to 6.7% in 2015. This was basically the result of the revaluation of our currency by 1.6% (DMA Economic Performance).

Figures, in Thousands of Soles

2014

2015

2016

Change

Sales

1,882,982

1,949,355

1,865,100

(4.3)

Gross Margin

830,509

839,581

781,765

(6.9)

Operating Margin

591,389

751,110

714,399

(4.9)

EBITDA

774,946

950,277

920,700

(3.1)

Earnings before Taxes

319,546

150,918

470,954

212.1

Net Earnings

290,113

130,586

312,228

139.1

Thanks to this financial performance, we distributed the economic value among our stakeholders as follows.(G4‑EC1)


DISTRIBUTION OF ECONOMIC VALUE AMONG OUR STAKEHOLDERS

Figures, in Thousands of Soles

2015

2016

Change

Direct economic value created

2,140,078

2,124,563

(9.8)

a) Revenues from sales

1,949,355

1,865,100

(4.3)

b) Other revenues

190,723

259,463

(26.5)

Economic value distributed

1,885,726

1,812,335

(3.9)

c) Salaries and other social benefits for employees

172,216

174,143

1.1

d) Suppliers of goods and services

1,285,433

1,222,806

(4.9)

e) Financial expenses (interest)

230,179

228,356

(0.8)

f) Taxes and payments to governments

181,071

169,344

(6.5)

g) Social responsibility and private social investment

21,826

17,686

(19.0)

Economic value retained

130,586

312,228

139.1

Dividends to shareholders

85,506

85,618

0.1

As part of our sustainability policy,
we have established alliances with a
range of Peruvian and international
institutions, business associations,
and our communities.
OUR ADDED VALUE

Associations of Which We Are a Member

We are a member of and take part in alliances with the following organizations (G4‑16).
  • American Concrete Institute (ACI)
  • BASC Perú Civic Non-Profit Association (BASC)
  • National Advertisers’ Association (ANDA)
  • Peruvian Port Operators’ Association (ASPPOR)
  • Cement Producers’ Association (ASOCEM)
  • Exporters’ Association (ADEX): Steering Committee and Chair of the Mines and Quarries Committee
  • Peruvian Roads Association (APC)
  • Peruvian Human Resources Association (APERHU)
  • Perú-Brazil Binational Chamber of Commerce and Integration (CAPEBRAS)
  • American Chamber of Commerce of Perú (AMCHAM)
  • Lima Chamber of Commerce
  • Banking and Trade Club (CBC)
  • Peruvian Engineers’ Association (CIP)
  • National Confederation of Private Business Institutions (CONFIEP)
  • Yaqua Social Enterprise
  • Inter-American Cement Federation (FICEM)
  • Global Standard One (GS1 – barcodes)
  • Peruvian Institute of Mining Engineers (IIMP)
  • Mining Safety Institute (ISEM)
  • Peruvian Business Administration Institute (IPAE)
  • Peruvian Institute of Economics (IPE)
  • Lima Cómo Vamos Citizens’ Observatory
  • Perú 2021
  • RedEAmérica
  • National Training Service for the Construction Industry (SENCICO)
  • National Industrial Training Service (SENATI)
  • Peruvian Foreign Trade Association (COMEX)
  • National Association of Industries (SNI)
  • National Mining, Oil, and Energy Association (SNMPE)
OUR ADDED VALUE

AWARDS AND RECOGNITIONS RECEIVED

PERÚ 2021
Recognition as a socially responsible corporation (SRC).

Mexican Center for Philanthropy (CEMEFI)
Recognition as a socially responsible corporation (SRC) in the Latin America region.

Effie Awards® PERÚ
2016 Grand Prize Effie and Golden Effie in the Other Products category, for Cemento Apu’s “Los Apus” campaign.

National Water Authority (ANA)
Finalist in the Water Culture Awards.

Latin American Effie Awards
Grand Prize Effie for Latin America for Cemento Apu’s “As Strong As You Are” campaign., de Cemento Apu. Golden Effie in the New Products and Service category.

“Tayta Wasi” Senior Citizens’ Center
Recognition for our commitment to senior citizens.

“Nuevo Milenio” Fire Department B-155
Recognition for our commitment to firefighters.

CORPORATE
GOVERNANCE

As of the close of 2016, UNACEM has a total of 2,462 shareholders, of which 6 hold a total stake of more than 80.0% (G4‑9).

OUR MAIN SHAREHOLDERS AND THEIR OWNERSHIP STAKES

Shareholders

Percentage

Sindicato de Inversiones y Administración S.A.

43.4

Inversiones Andino S.A.

24.3

Private Pension Fund Management Companies AFP (Integra, Prima, Profuturo, and Hábitat)

21.9

At UNACEM, we have three documents intended to promote good corporate governance practices: the Best Practice Code for Corporate Governance, the Shareholders’ Meeting Regulations, and the Board of Directors’ Regulations. These documents are based on the Principles of Good Corporate Governance for Peruvian Corporations established by the Lima Stock Exchange. They allow us to guarantee the Company’s sound performance and avoid conflicts of interest, based on the ethical behavior of the members of the Board of Directors. This, in turn, fosters the trust of all of our stakeholders (G4-34).

We also strive to safeguard the rights of our shareholders and the transparency of the decisions made in our organization. With this goal in mind, the Shareholders’ Meeting held on March 29, 2016 was held to elect the Board of Directors for the 2016-2018 period; approve the Board of Directors’ report, the financial information for the fiscal year, and the Sustainability Report; and to delegate the appointment of external auditors to the Board of Directors. Furthermore, through our Investments Management and Values Department, we provide our investors with continuous information on our periodic results and respond to any questions they may have.

The main channel for shareholders to forward their recommendations to the Board of Directors is through the Shareholders’ Meeting. However, we also receive their questions and comments by other means, such as individual meetings, telephone calls, and in writing.

The members of our Board of Directors are elected in accordance with the Company’s Bylaws.

CORPORATE GOVERNANCE

Our Board of Directors

UNACEM’s Board of Directors is made up of twelve members, all male, of whom three are independent. The Board meets once a month to review all relevant strategic matters, safeguarding the interests of the Company and all of its stakeholders.

The approval of the new Strategic Plan, policies, and objectives involving economic, environmental, and social impacts is the responsibility of UNACEM’s Board of Directors and senior management.

The Board analyzes the Company’s impacts, risks, and opportunities in its monthly meetings. Likewise, it approves the contents of the Annual Report and the Sustainability Report, reporting on the Company’s performance during the fiscal year. Additionally, it vests the General Manager with the powers necessary to review or explain any matter it deems necessary, as well as the power to delegate these duties to the senior management, should he deem it advisable.

UNACEM’s Board of Directors is currently analyzing the possibility of the short-term implementation of an annual performance evaluation. It is also reviewing the possibility of strengthening board members’ knowledge of economic, social, and environmental matters tied to its business.

The Board of Directors’ remuneration policy is established in accordance with the Company’s Bylaws, and is equivalent to 1.0% of earnings before taxes.

UNACEM has the following committees, which allow us to adequately manage the Company’s decisions.


Board of Directors’ Committee (G4‑34)
  • Audit Committee: Identifies the risks to which the Company is exposed and ensures that the controls established to mitigate them function correctly, in compliance with the laws and regulations in force.

    This committee is responsible for assisting the Board of Directors in supervising the Company’s financial statements and verifying the qualifications, independence, and performance of the auditors. It also supervises the policies, accounting processes, and internal control systems pertaining to all financial reports, as well as the Company’s compliance with the applicable legal standards and regulations. It consists of three directors, two of whom are independent. The Internal Auditor reports directly to the Audit Committee.

Management Committees (G4‑34)
  • Managerial Committee: Responsible for implementing the Company’s operating and sustainability plans.

  • Integrated Management System Committee: Responsible for monitoring, evaluating, and following up on the actions and objectives established with regard to quality, safety, and environmental matters.

  • Central Occupational Health and Safety Committee: A joint body made up of representatives appointed by the Company and the workers, whose purpose is to promote occupational health and safety, as well as advising on and supervising actions designed to improve these aspects, in accordance with the laws in force and the Company’s internal standards.
CORPORATE GOVERNANCE

GOVERNANCE STRUCTURE (G4‑34)

CORPORATE GOVERNANCE

BUSINESS ETHICS, COMPLIANCE AND TRANSPARENCY

We manage our regulatory compliance and its impacts using tools and technical supports. We use the George System, which controls the compliance with legal obligations by all areas of our Company and allows us to maintain control over deadlines for legal and voluntary obligations, thus eliminating the risk of losing permits or licenses and avoiding sanctions. Additionally, we perform audits twice yearly (DMA Corporate Regulatory Compliance).

We prevent all acts of corruption inside UNACEM by providing our employees with the Internal Code of Conduct (NIC), which is also available via intranet. This code details the objectives and compulsory guidelines to be followed in all of our corporate activities (DMA Anti-Corruption).

During 2016, we received no significant fines or non-monetary sanctions due to a violation of laws or regulations pertaining to workplace fraud or discrimination. Likewise, there were no cases of corruption. Nevertheless, in order to prevent these risks, we are currently evaluating improvements to our policies on these matters, as well as the inclusion of training sessions on the fight against corruption (G4‑SO4) (G4‑SO5) (G4‑SO8).

SUSTAINABLE
MANAGEMENT
SUSTAINABILITY
STRATEGY

We guarantee our sustainable management by identifying and managing economic, social, and environment impacts, through our Audit Committee and our Integrated Management System (IMS). We also comply with the principles of the UN Global Compact, and are aligned with the Sustainable Development Goals (SDG).

Through our IMS, we identify, manage, and control the Company’s critical aspects in relation to quality and the environment, as well as occupational health and safety. Like all systems, the IMS is made up of people, and thus depends on our organizational culture.

In compliance with the principles of the UN Global Compact, we have adopted and implemented a set of values in the areas of human rights, labor laws, the environment, and anticorruption, both inside the Company and throughout our value chain.

Our Internal Auditing area, on the hand, performs the assessment of risks at the business level, based on which it programs internal audits and follows up on corrective actions.

Additionally, the Company’s sustainability policy is promoted, facilitated, and implemented by the Asociación UNACEM. As part of the association’s sustainable management of social aspects, it encourages friendly relations with the communities in our area of influence and fosters private social investment programs (G4‑14).

Management System
  • Quality, environment, health and safety policy
  • Competency-based management model
  • Annual Training Plan
  • Performance evaluation system
  • Annual internal auditing program
  • Documented standards
Organizational Culture
  • Corporate values
  • Internal Code of Conduct (NIC)
  • Induction process on organizational culture
We promote value creation
for our stakeholders.
STAKEHOLDER
RELATIONS

We promote value creation among our stakeholders. To achieve this goal, we maintain close relations, based on ongoing, clear, and transparent dialogue, which helps us build trust over the long term (G4‑26).


MAIN CRITERIA FOR STAKEHOLDER SELECTION (G4‑25)
Connection to the value chain
We include those stakeholders tied to our processes and the development of our activities.
Area of influence
We prioritize the areas of influence of our operations, as determined based on our environmental instruments.
Responsibility
We include stakeholders to whom we do or may have a commercial, legal, operating, or ethical responsibility.
STAKEHOLDER RELATIONS
OUR MAIN STAKEHOLDERS (G4‑24)


We implement dialogue mechanisms to help us learn about our stakeholders’ interests, so that we are then able to analyze, prioritize, and incorporate them into our management.

STAKEHOLDER RELATIONS
COMMUNICATION CHANNELS WITH STAKEHOLDERS(G4‑26)

Stakeholders

Communication Channels

Employees

  • Open door policy

  • Periodic meetings

  • Internet and intranet

  • Social Responsibility newsletter

  • Email

  • El Concretito newsletter

  • Bulletin boards

  • Facebook page and website of UNACEM and the Asociación UNACEM

  • En Concreto internal magazine

Communities and Future Generations

  • Community relations staff

  • Meetings and workshops

  • Participative meetings with Zonal Environmental Committees

  • Social and opinion diagnostics

  • Visits to the production plant

  • Facebook page and website of UNACEM and the Asociación UNACEM

  • Formal letters

  • Social Responsibility newsletter

Suppliers

  • Permanent direct rapport

Shareholders

  • One-on-one meetings

  • Shareholder services office

  • Corporate website and section for investors

  • Social Responsibility newsletter

  • Quarterly newsletter

Customers

  • UNACEM Facebook page and website

  • Meetings of the Progresol Network

  • Customer satisfaction surveys

Government

  • Sectorial associations (ASOCEM, SNI, SNMPE, ADEX, COMEX, CONFIEP)

  • Participation in chambers of commerce

COMMITMENTS TO OUR STAKEHOLDERS
OUR
EMPLOYEES

Our employees are the driving force that allows us to maintain our leadership in the sector and tackle the industry’s challenges. We have implemented a training strategy that provides our personnel with the chance to develop both personally and professionally within the organization, as well as offering them a safe and health workplace (DMA Employment).

Our open door policy between employees and the management helps strengthen communication. We also hold periodic meetings between bosses and employees, and our management meets regularly with all personnel in order to keep them apprised of the Company’s situation. Significant changes are announced through circulars sent out to all personnel. If necessary, informational meetings are held for employees to provide further information (DMA Labor/Management Relations).

During 2016, UNACEM provided direct employment to 761 people. At both plants, we promoted local hiring in our direct area of influence. At the Atocongo plant, we have 296 employees, and 234 at the Condorcocha plant, who jointly account for 70.0% of our payroll (G4‑10).


TOTAL EMPLOYEES BY CONTRACT TYPE (G4‑10)

 Contract Type

2016

Atocongo plant

Condorcocha plant

Full Time

456

305

Part Time

0

0

Interns

59

2

Total

515

307

TOTAL EMPLOYEES ON PAYROLL BY PROVENANCE (G4‑9) (G4‑10)

 Provenance

2016

Atocongo plant

Condorcocha plant

Junín

13

234

Lima

296

43

Otros

147

28

Total

456

305

JOB AND GENDER CLASSIFICATION OF PAYROLL EMPLOYEES (G4‑10)

 Classification

2016

Atocongo plant

Condorcocha plant

Total

Administrative

153

52

67

2

274

Employees

85

27

39

3

154

Workers

139

0

193

1

333

Total

377

79

299

6

761

Legends:    Men     Women

TOTAL EMPLOYEES CLASSIFIED BY AGE AND GENDER (G4‑10)

Age Groups

2016

Atocongo Plant

Condorcocha Plant

Total

<30

21

6

41

1

62

7

30 < 40

91

17

109

1

200

18

40 < 50

75

19

62

0

137

19

50 < 60

102

24

35

1

137

25

60 < 70

88

13

52

3

140

16

Total

377

79

299

6

676

85

Legends:    Men     Women
OUR EMPLOYEES

HIRING AND RETENTION OF OUR TALENT (DMA Employment)

We evaluate the workplace climate by measuring our employees’ job satisfaction. In 2014, we achieved an average satisfaction of 62.0%. At Atocongo, our results came to 64.0%, and 58.0% at Condorcocha. We have also been performing a managerial diagnostic to determine development plans and opportunities.

Our personnel selection process is regulated and audited, to ensure that the competencies required for each job position are met. For such purpose, we have a competency-based management model that is subject to continuous improvement.

After workers start their job at UNACEM, they must complete an induction process in order to ensure that they absorb our organizational culture and learn about their role and responsibilities. They also receive training on occupational health and safety matters, caring for the environment, and our IMS.

We foster personal and professional growth, to help our employees follow defined career paths and become eligible for promotions. As a result, job turnover is very low.

NEW EMPLOYEES BY GENDER AND REGION OF PROVENANCE IN 2016 (G4‑LA1)

Atocongo Plant

Condorcocha plant

Total

Lima

Other

Junín

Other

21 

Legends:    Men     Women

TERMINATION BY GENDER AND REGION OF PROVENANCE IN 2016 (G4‑LA1)

Atocongo Plant

Condorcocha Plant

Total

Lima

Other

Junín

Other

14 

20

0

7

0

44 

Legends:    Men     Women

EMPLOYMENT PROMOTION PROGRAMS (G4‑LA10)
Atocongo Plant Condorcocha Plant
  • Pre-Professional Internship Program: 29 students with different majors.
  • Pre-Professional Internship Program: 12 young people with different areas of study.
  • Professional Internship Program: 36 graduates of different programs.
  • Dual Learning Program: Through an agreement with SENATI, we sponsored the vocational studies of 30 young people (13 more than in 2015).
These programs are intended to help participants gain work experience at our company that will be useful to them in their professional futures. After they finish their internships, we organize an employability talk that will help them apply to a range of job positions.
20,300 hours of training provided
to employees (26.7 man-hours per
employee, on average).
We have improved our
safety indicators by reducing
frequency rates by 50.5%,
severity by 98.9%, and
accident rates by 99.6%,
compared to 2015.
OUR EMPLOYEES

HEALTH AND SAFETY COME FIRST (DMA OCCUPATIONAL HEALTH AND SAFETY)

At UNACEM, we have an Occupational Health and Safety Management System that enables us to identify the main hazards in each area, as well as assessing risks and ensuring a timely management for their prevention and reduction. This system fosters a culture of risk prevention, thus encouraging responsible conduct on the part of our employees and contractors.

Our Occupational Health and Safety Plan includes a Safety Training Program, aimed at UNACEM’s workers, which uses risk assessments to determining the training needs for each job position. Training is provided both online and in person. Using an interactive teaching method, we have met 112.8% of the goals scheduled based on our training matrix.

This year, we focused primarily on the implementation of proactive safety indicators, promoted via our management system, in order to verify our personnel’s compliance with safety standards, among other controls.

The main proactive indicators were as follows:

  • Planned work observations (PWO).
  • Five-minute safety talks.
  • Safety inspections by a senior management representative.
  • Inspections by the Central Occupational Health and Safety Committee.

ACCIDENT, FREQUENCY AND SEVERITY RATES IN UNACEM’S OPERATIONS (G4‑LA6)

Atocongo Plant

2015

2016

Frequency rate

11.7

6.6 

Severity rate*

2,375.3

 36.4

Accident rate*

27.8

 0.2

Number of fatal victims

2

 0

Condorcocha Plant

2015

2016

Frequency rate

10.2

3.6

Severity rate*

6,731.7

60.3

Accident rate*

69.0

0.2

Number of fatal victims

4

0

Consolidated Total for UNACEM

2015

2016

Frequency rate

11.1

5.5

Severity rate*

4,187.0

 44.7

Accident rate*

46.5

0.2 

Number of fatal victims

6

 0

(*) The high severity and accidents rates for 2015 are due to fatal accidents.


UNACEM Central Occupational Health and Safety Committee (G4‑LA5)

Our Central Occupational Health and Safety Committee forms part of the operations management at both plants. It consists of six representatives appointed by UNACEM management and six representatives of the workers, the latter of whom are chosen by employees in open elections called by the workers’ union. The current committee commenced its operations in August 2015, for a two-year period. This committee represents 100.0% of UNACEM’s employees.

OUR EMPLOYEES

WE RESPECT HUMAN RIGHTS

UNACEM’s respect for human rights is a commitment set forth in our Internal Labor Regulations (RIT) and Internal Code of Conduct. This commitment is bolstered by the Company’s adhesion to the principles of the UN Global Compact and the Good Employers’ Association (ABE), sponsored by the American Chamber of Commerce of Perú (AMCHAM).

We are firmly opposed to discrimination of any kind. We promote equal treatment in the workplace and guarantee the same opportunities for all of our employees. In 2016, no complaints or grievances were received regarding discrimination from our employees or stakeholders (DMA Non-Discrimination) (G4‑HR3).

It is also important to note that there are no risk situations of forced labor or child labor to the detriment of employees (DMA Child Labor) (DMA Forced Labor) (G4‑HR5) (G4‑HR6).

All work performed outside of regular work hours is coordinated, duly authorized by the direct superior, and paid on time (G4‑HR6).

Our IMS includes periodic internal and external audits that guarantee compliance with these universal rights.

OUR EMPLOYEES

TRAINING AND DEVELOPMENT (DMA TRAINING AND EDUCATION)

As part of the training process, we implement an Annual Training Plan (PACE).

Classification of Training Types:
  • Organizational training: related to strategic topics.
  • Specific training: related to job positions.
  • Skill-based training: for personal development and growth.

In 2016, we provided a total of 20,300 hours of training to our employees, equivalent to an average total of 26.7 man-hours per employee.

It should be noted that 73.0% of all training implemented during the year involved occupational health and safety topics, given the central role of this subject for our operations. Thus, we not only complied with the corresponding legal standards, but we also see the results of this training reflected in our safety indicators at both plants, which reported zero accidents in several months out of the year.

We worked on a special training program for our different head offices, known as “Yo Líder”, intended to disseminate a culture of safety at the plants, as well as online courses, which were quite popular and well-attended among our employees. This year, we all continued to provide Emergency Brigade training at the Atocongo plant and commenced the training of the Emergency Brigade at the Condorcocha plant. These brigades are made up of employees, who are trained on health and safety matters in order to provide immediate assistance in case of emergency (G4‑LA9).

TRAINING HOURS BY JOB CLASSIFICATION (G4‑LA9)

Job Classification

Plant

2015

2016

No. of Hours

Personnel Trained

Average Hours

No. of Hours

Personnel Trained

Average Hours

Administrative

Atocongo

4,903

191

25.7

6,764

205

33.0

Condorcocha

1,379

55

25.1

3,524

69

51.1

Total

6,282

246

25.5

10,288

274

37.6

Employees

Atocongo

1,557

103

15.1

2,488

112

22.2

Condorcocha

781

38

20.6

1,488

42

35.4

Total

2,338

141

16.6

3,976

154

25.8

Operators

Atocongo

3,672

105

35.0

3,454

139

24.9

Condorcocha

2,980

162

18.4

2,583

194

13.3

Total

6,652

267

24.9

6,037

333

18.1

Total

Atocongo

10,132

399

25.4

12,706

456

27.9

Condorcocha

5,140

255

20.2

7,594

305

24.9

Total

15,272

654

23.4

20,300

761

26.7



CLASSIFICATION OF TRAINING MAN-HOURS (G4‑LA9)

2015

 2016

Inside the Company

Outside the Company

Total

Inside the Company

Outside the Company

Total

In Perú

Abroad

In-Person

Virtual

In Perú

Abroad

11,796

3,388

88

15,272

11,809

6,052

2,144

295

20,300

We also continued with the performance evaluation process and the identification of training needs, which resulted in the design of the Annual Training Plan for 2017.

At the Atocongo plant, the training needs are identified based on each employee’s performance evaluation. If any gaps exist, we prioritize those competencies to be addressed through training.

At the Condorcocha plant, on the other hand, we are implementing a competency-based human resources management approach. For such purpose, we have begun applying performance evaluations for administrative personnel, which involves the standardization of these management practices at both plants.

RELATIONS WITH OUR UNIONS (DMA LABOR/MANAGEMENT RELATIONS) (DMA FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING) (MM4) (G4‑HR4)

We engage in an ongoing, respectful, transparent, and free dialogue with our unions, with whom we hold weekly meetings in order to address labor and organizational matters. There were no strikes called by workers in 2016.

At UNACEM, we have two unions: (G4‑11)
  • At the Atocongo plant, the Sindicato de Trabajadores de Unión Andina de Cementos S.A.A. – Canteras de Atocongo, of which 163 workers (employees and laborers) are members, representing 36.0% of all employees.
  • At the Condorcocha plant, the Sindicato Único de Trabajadores de Unión Andina de Cementos S.A.A., of which 143 laborers are members, representing 47.0% of all employees.


COLLECTIVE BARGAINING AGREEMENTS
Atocongo Plant Condorcocha Plant
  • In July 2015, the collective bargaining agreement entered into force. Expires in June 2018.
  • In May 2016, a collective bargaining agreement was signed for a three-year term, valid until December 2018.8.
QUANTITY AND PERCENTAGE OF UNIONIZED EMPLOYEES BY GENDER AND JOB CATEGORY IN 2016 (G4‑11)
Category Atocongo Plant
Total
Total Unionized % Total Unionized % Total Unionized %
Administrative

155


0

0

51

0

0

206

0

0

Employees

85

35

41.0

27

4

15.0

112

39

35.0

Workers

139

124

89.0

0

0

0

139

124

89.0

Total

379

159

42.0

78

4

5.0

457

163

36.0

Leyendas:    Men     Women
Category

Condorcocha Plant

Total

Total

Unionized

%

Total

Unionized

%

Total

Unionized

%

Administrative

66


0

0

2

0

0

68

0

0

Employees

39

0

74.0

3

0

100.0

42

0

0

Workers

193

142

89.0

1

1

0

194

143

74.0

Total

298

142

48.0

6

1

17.0

304

143

47.0

Leyendas:    Men     Women
OUR EMPLOYEES
RESULTS AND CHALLENGES
Results 2016
  • We increased the number of training hours by 33.0% compared to 2015.
  • We improved our accident rate indicators by 99.6%.
  • We consolidated our online training, which accounted for 30.0% of all training sessions. In-house training accounted for 88.0% of the total, aimed primarily at our operators.
  • We commenced the Succession Plan program, which is monitored by the Human Resources Management, to anticipate the succession of our employees.
Challenges for 2017
  • Continue with the Succession Plan, developing our future leaders' management skills.
  • Achieve 100.0% legal compliance with training on occupational health and safety matters.
  • Establish the Occupational Health and Safety competency as the first and most important one at UNACEM.
  • Incorporate management indicators company-wide.
OUR SUPPLIERS
AND CONTRACTORS

In 2016, we improved the selection and evaluation procedure for goods and services providers, asking suppliers to submit an affidavit on their compliance with labor laws, respect for human rights, and occupational health and safety management, as well as appropriate environmental management. The evaluation will continue through June 2017 (G4‑12).

We also included obligation clauses in our agreements, which establish punishments or score reductions in the periodic evaluations. These measures ensure a greater commitment on the part of our contractors and suppliers.

We also have OHS subcommittees that meet on a monthly basis, under the responsibility of the Industrial Safety and Hygiene Department:

  • Contractors’ OHS Subcommittee.
  • OHS Subcommittee of the UEA Atocongo (mining concession).
  • OHS Subcommittee of the UEA Pucará (mining concession).

In order to boost our contractors’ supervision competencies, we provided a total of 6,488 hours of training at Atocongo and Pucará, and a total of 19,803 hours at the mining operations of the Condorcocha plant, including inductions, training sessions, and five-minute safety talks.

OUR SUPPLIERS AND CONTRACTORS

VALUE CHAIN MANAGEMENT

At UNACEM, we hired 2,209 goods and services providers, accounting for procurements of over S/ 1,309 million. We define local suppliers as those whose tax domicile is registered in the districts neighboring our plants:
  • For the Atocongo plant: Lurín, Villa María del Triunfo, Villa El Salvador, Pachacámac and San Juan de Miraflores.
  • For the Condorcocha plant: Tarma, La Unión Leticia y Palca.
Purchases from local suppliers during the year accounted for 19.0% of OUR total procurements.

LABOR MANAGEMENT (DMA SUPPLIER ASSESSMENT FOR LABOR PRACTICES) (G4‑LA14)

We apply measures intended to prevent any potential problems that may arise with regard to labor matters. For such purpose, we verify, control, and perform unannounced visits to our contractors and the companies that perform activities at our facilities. We thus guarantee their compliance with their legal obligations under the labor laws currently in force.

We require all of our contractors to comply with our protocols, which are monitored on a monthly basis. We verify the payment of payroll salaries, social benefits, supplementary insurance, occupational medical exams, and medical checkups, among other obligations.

We encourage our suppliers to implement good labor practices with their employees, in line with Good Employer certification. In 2016, we monitored the labor practices of our goods suppliers and their impacts.

To prevent potential labor risks, we evaluated and inspected those companies against whom complaints were filed and which have a significant number of personnel at our facilities.

Through the Asociación UNACEM, we also coordinated with our contractors for the hiring of local labor.

HUMAN RIGHTS MANAGEMENT (DMA CHILD LABOR) (DMA FORCED LABOR) (G4‑HR5) (G4‑HR6)

At UNACEM, we respect the laws in force on human rights. In addition to applying these laws, we perform periodic audits and visits to our contractors, as part of our IMS, which help us to manage and control our policies. These audits verify our contractors’ respect for human rights, ensuring that they do not engage in practices of forced labor, child labor, discrimination, or violations of their employees’ freedom of collective bargaining.

Additionally, in accordance with company policy, we verify the identity of all persons who begin work at our facilities, requiring them to provide a valid National Identity Document (DNI) in order to prove that they are not minors.

As a result of these procedures, we continue to have zero complaints or grievances in relation to human rights violations on the part of our contractors and suppliers.
OUR SUPPLIERS AND CONTRACTORS

HEALTH, SAFETY, AND CARE FOR THE ENVIRONMENT (DMA SUPPLIER ENVIRONMENTAL ASSESSMENT) (G4‑EN32)

Goods Suppliers

All of our suppliers meet the standards demanded by our Company. Most of them also have environmental and quality certifications, aligned with those required by UNACEM.

As part of our supplier selection and evaluation procedure, we have established that those suppliers who have valid ISO 9001, ISO 14001, or OHSAS 18001 certification shall be automatically included in our Selected Supplier Registry.

The selection of suppliers pending evaluation is performed based on the procurement amount and suggestions made by other areas. It is important for UNACEM to identify in advance any negative impacts that may be caused by our suppliers, so that we can determine the causes and make the right decisions to avoid or mitigate them. In 2016, we registered 244 new suppliers.

Contractors

Contractors are considered strategic collaborators in several of our processes, for which reason they are subject to ongoing assessment and monitoring activities. They participate in the identification and assessment of risks (environmental and occupational health and safety), in accordance with the environmental impact and risk assessment and control procedure.

As part of our IMS activities, we plan and program different types of audits, including an assessment of contractor performance. These audits include compliance with environmental and occupational health and safety standards, as well as deadlines, technical specifications, personnel competency requirements, supply quality, and supervision.

The assessment of contractors’ environmental performance seeks to verify that the companies have different management mechanisms: environmental policies, plans, and programs; compliance with legal requirements; identification of aspects and evaluation of impacts, etc.

In order to mitigate health and safety risks, contractors are required to perform risk and impact assessments in their daily activities, supplemented by the application of a job safety analysis (JSA).

We also have a Planned Work Observations program, through which we establish a series of improvements to contractors’ occupational health and safety management.

At the Atocongo plant, internal users evaluated 39 of the 46 contractors, equivalent to 85.0% of the total. We also performed occupational health, safety, and environmental audits on 11 contractors.

At the Condorcocha plant, the 17 contractors were evaluated by internal users. They were also audited under the Occupational Health, Safety, and Environmental Management for Contractors procedure.

It should be noted that internal users take into account the results of the most recent audits performed and the contractor selection evaluations when determining the feasibility of new contracts. At the Condorcocha plant, we have also developed a penalty scale for environmental and occupational health and safety violations.

PROMOTING TRANSPARENCY IN THE VALUE CHAIN

In 2016, we continued to implement the UNACEM Value Chain Transparency program, aimed at encouraging our partners to draft and publish their own sustainability reports, in accordance with the GRI G4 guidelines.

Project Results
  • Eight partners from UNACEM's value chain prepared sustainability reports for 2015, under the GRI G4 guidelines.
  • Seven partners took part in the previous experience, while ARPL Tecnología Industrial was new this year.
Partners
  • A. Berio y Cía. (distributor).
  • Aliaga & Baluis (contractor).
  • Cemento y Acero – CEMENSA (distributor).
  • DEMARSA (contractor).
  • La Viga (distributor).
  • MACISA (distributor).
  • PREANSA (subsidiary).
  • ARPL Tecnología Industrial (related company).

OUR SUPPLIERS AND CONTRACTORS
RESULTS AND CHALLENGES
Results 2016
  • We performed audits on the safety and environmental risk management of 32 contractors.
  • A total of 57 contractors were evaluated by internal user areas.
  • We worked with small contractor firms to align their work and occupational health policies with ours.
  • Procurements from local suppliers accounted for 19.0% of total procurements.
Challenges for 2017
  • Strengthen the main aspects of the framework agreement entered into with contractors, in order to ensure that they are 100.0% aligned with our standards.
  • Continue ensuring that contractors comply with national legislation, with an emphasis on labor, occupational health and safety, and environmental matters.
  • Consolidate surprise inspections in our plants for companies performing works at our facilities.
  • Perform visits to our contractors' main offices, in order to corroborate compliance with their policies and procedures.
  • Look for new supply sources that allow us to be more competitive.

OUR COMMUNITIES
Through the Asociación UNACEM, we implement our community strategy based on five pillars of action.

UNACEM COMMUNITY ACTION PILLARS
We help improve the quality of life of the communities in our areas of influence by creating development opportunities, in alliance with different local, national, and international actors (DMA Indirect Economic Impacts) (DMA Local Communities) (G4‑SO1).

The Asociación UNACEM promotes capacity building in the communities and a proactive attitude toward their own development, as well as the consolidation of social capital and the strengthening of social organizations, all with the purpose of taking part in participative processes with other public and private actors (DMA Local Communities).
OUR COMMUNITIES
Areas of Influence (G4‑SO1)

Our direct area of influence includes five districts in Lima and three in Tarma, where we carry out our main social development activities.

INTERVENTION AREAS
Atocongo Plant – Lima
Condorcocha Plant – Tarma
  • Villa María del Triunfo
  • La Unión Leticia: populated center of Condorcocha and peasant communities of Chancha and Huancoy
  • Pachacámac
  • Villa El Salvador
  • San Juan de Miraflores
  • Palca
  • Lurín
  • Acobamba
Rapport Mechanisms (G4‑SO2)

We foster a range of dialogue spaces, such as workshops, meetings, plant visits, social climate monitoring, participative environmental monitoring activities, as well as constant engagement with the leaders of the different social organizations, peasant communities, populated centers, and institutions (G4‑SO1).

Each plant has a stakeholder communication procedure set forth as part of its IMS, which establishes the treatment of complaints and grievances.

Our policy of ongoing dialogue with our stakeholders enables us to issue early alerts aimed at preventing, controlling, and mitigating the impacts of our operations. In 2016, no incidents occurred in the operation of our plants involving neighboring communities (MM4).

PRIVATE SOCIAL INVESTMENT
Education
OCCUPATIONAL
TRAINING PROJECT
Condorcocha Plant
Since 2014
We build women’s technical capacities to help them generate economic income.
Environment
COMMUNITY ENVIRONMENTAL PROJECT
Atocongo Plant
Since 2009
We foster better environmental management in order to improve communities’ surroundings on a participative, sustainable basis.
PRIVATE SOCIAL INVESTMENT
Education
PRIVATE
SOCIAL INVESTMENT
Atocongo Plant
Since 2005
We improve technical and production, as well as business management skills so participants can start their own businesses.
Infrastructure
RETAINING WALLS IN AT-RISK COMMUNITIES
Atocongo Plant
Since 2003
ommunities with cement donations so they can build infrastructure works such as retaining walls, sidewalks, and stairs.
OUR COMMUNITIES

MAIN PROJECTS AND INITIATIVES WITH OUR COMMUNITIES (G4‑EC7)


The selection of the projects, programs, and initiatives in our communities is performed based on the action pillars, which include the socio-environmental commitments established in our environmental instruments. Community organizations also propose improvements to infrastructure and social programs.

Through Asociación UNACEM, we maintain constant contact with the community and local authorities, monitoring and receiving suggestions and proposals for improvements to our production process and our work with the community (DMA Local Communities).

We also organize volunteer activities, which attracted the participation of 312 volunteers in 2016, including employees of UNACEM and Asociación UNACEM and their family members, contractors’ employees, project beneficiaries, and community leaders (DMA Indirect Economic Impacts).

Social Infrastructure (G4‑EC7)
We foster the development of our communities by donating cement, cobblestones, and concrete, as well as performing works with the active participation of local residents. During the year, we performed 28 pre-investment studies for profiles and technical files (22 at the Atocongo plant and 6 at the Condorcocha plant), which were donated to authorities and community leaders in order to process the implementation thereof with different public and private entities.

  • At the Atocongo Plant:
    • We supported the performance of community infrastructure works: retaining walls, sidewalks, improvements to classrooms in educational institutions, parks and athletic fields in community spaces in our areas of influence.
    • We supported beneficiary families of the “Techo Propio” program of the Ministry of Housing, Construction, and Sanitation in high-risk areas, for the construction of retaining walls and the plastering of their residential modules.
    • Through the Works in Exchange for Taxes program, we completed the implementation of the project for the “Expansion of the Public Safety System with Technological Solutions including Video Surveillance and the Public Safety Hotline,” with the Municipality of Villa María del Triunfo.
    • In alliance with SENCICO, we held seven courses on Occupational Health and Safety in the Civil Construction Industry, benefiting 210 participants, including employees of our contractors, members of the civil construction unions from southern Lima, and the community in general.

  • At the Condorcocha Plant:
    • We supported the construction of different community works, such as athletic fields, classroom modules, parks and perimeter fences, as well as the repair of rainwater canals and ditches and the improvement of irrigation reservoirs and canals with the donation of cement.
    • We provided machinery to clean the irrigation canals, maintain gravel roads, and level terrains.
OUR COMMUNITIES
Health (G4‑EC7)

Through the Healthy Communities program, we promote healthy lifestyles and habits among families, in alliance with the community, community health agents, and health establishments.
  • At the Atocongo Plant:
    • We improved first care performance indicators in three health establishments, with an emphasis on health promotion and family health.
    • We organized 21 mass activities in 13 health establishments, benefiting 9,591 people.
    • Five communities implemented joint health actions, successfully training a First Aid Brigade to attend to emergencies.

  • At the Condorcocha Plant:
    • We organized four mass health activities in the populated center of Condorcocha and La Unión Leticia, benefiting 1,881 people.
    • The two winning communities of the “Healthy Neighborhoods” contest implemented supplementary community initiatives.
Education (G4‑EC7)

We promote the development and strengthening of educational, technical, and entrepreneurial skills in our areas of influence. We also foster the development of personal and social skills, as well as the productive use of free time. The main projects and programs include the following:

  • At the Atocongo Plant:
    • A total of 312 young people and adults from southern Lima improved their technical skills in specialized areas such as buffet service and patisserie, beauty and cosmetics, handicrafts, screen printing, and electronics, through the Entrepreneurial Vocational Training project. In addition, 48 entrepreneurs drafted business plans, of whom 23 will receive expert advice in 2017.
    • A total of 2,033 local residents, including infants, children, adolescents, young adults, adults, and senior citizens, took part in art, culture, and sports workshops, developing skills and improving the productive use of their free time.

  • At the Condorcocha Plant:
    • Through the Youth Employability Promotion project (in alliance with FONDOEMPLEO), 174 young people received training at SENATI in La Oroya, after which they received job advice, helping 60 graduates to successfully find a job position.
    • A total of 101 women from the communities of La Unión Leticia and Tarma strengthened their vocational and productive skills in weaving and handicrafts; and 57 improved their knowledge of marketing, costs, and forming associations, through the Labor Training project.
    • As part of the Productive Vacation program, 244 children and adolescents strengthened their school performance and developed crosscutting and sport skills.
    • A total of 28 teachers from nine educational institutions in the district of La Unión Leticia strengthened their educational capacities for teaching reading comprehension and writing, to the benefit of 278 children in primary school, through the “Reading for Growth” program (in alliance with Entrepreneurs for Education and the Cayetano Heredia University).
    • A total of 20 teachers from four educational institutions strengthened their capacities and abilities in the use of information technologies to improve their classroom teaching methods, benefiting 242 students (in alliance with Entrepreneurs for Education and the Cayetano Heredia University).
PRIVATE SOCIAL INVESTMENT
Infrastructure
CONSTRUCTION OF PERIMETER
WALL FOR CEMETERY
Condorcocha Plant
Since 2013
We contribute to communities’ development through public infrastructure works.
Education
ART , CULTURE AND
SPORT PROJECT - MUSIC WORKSHOP
Atocongo Plant
Since 2008
We promote the development of artistic and sport skills, as well as the productive use of free time.
PRIVATE SOCIAL INVESTMENT
Infrastructure
REPAIR OF
IRRIGATION CANALS
Condorcocha Plant
Since 2013
We contribute to communities’ development through public infrastructure works.
Education
DIGITAL INCLUSION
PROJECT
Condorcocha Plant
Since 2016
We strengthen teachers’ capacities and abilities so that they can use ICT to improve classroom teaching.
OUR COMMUNITIES
Environment (G4‑EC7)

Through the Community Environmental Program, we foster better environmental management in the towns in our surroundings, in alliance with the communities and local and sector authorities. The program’s most important achievements include the following:

  • At the Atocongo Plant:
    • We continued strengthening and providing expert technical advice to the Zonal Environmental Committees (CAZ) and the Municipal Environmental Commissions (CAM) to improve their management.
    • We walked three municipalities from southern Lima through the process for achieving the Sustainable Local Environmental Management (GALS) recognition given out by the MINAM.
    • This year, we planted trees on 7,658.5 m2 of green areas in the districts of Villa María del Triunfo, Villa El Salvador, and Pachacámac.
    • In alliance with the Local School District (UGEL) 01, we achieved the certification of 43 teachers from 20 educational institutions, strengthening their teaching abilities with regard to environmental topics.
    • We provided maintenance for 7.5 km of green areas located in the median strips of Lima and María Reiche Avenues, in the Villa María del Triunfo and Villa El Salvador districts.

  • At the Condorcocha Plant:
    • We provided guidance on the implementation of environmental instruments to strengthen local environmental management for solid waste, in the La Unión Leticia district.
    • Together with the Tarma Local School District (UGEL), we established the guidelines for implementing environmental education instruments and projects in seven educational institutions, successfully certifying 14 teachers and directors.
    • We provided weekly solid waste second collection services in the populated center of Condorcocha, to the benefit of approximately 800 people.
OUR COMMUNITIES
Community Relations (G4‑EC7)

Our primary objective is to strengthen the bonds of trust and cooperation with the communities, organizations, and institutions located in the vicinity of our operations. Some of the most important activities carried out with this goal in mind include:

  • At the Atocongo Plant:
    • We supported the community in 16 local initiatives, with 5,600 direct beneficiaries.
    • We raised the awareness of 295 families so that they could help take care of the archaeological zone and its surroundings.
    • At total of 13 social organizations were formally created and strengthened their management capacities.
    • We reported on UNACEM’s activities in 27 talks and 7 plant visits, with the participation of 174 local residents.

  • At the Condorcocha Plant:
    • We supported the community in 42 local initiatives, with 11,944 direct beneficiaries. Notable contributions were made to educational institutions and initiatives placing a renewed value on local culture, through support in the organization of traditional celebrations.
    • We organized 45 meetings and 4 visits to our operating plant, with the participation of 75 local residents.
    • We carried out two participative environmental monitoring programs in the populated center of Condorcocha (air and water quality evaluation) and La Unión Leticia (air quality evaluation). We also held a workshop on the interpretation of the results from the participative monitoring activities performed in 2015.
    • We promoted the improvement of social skills in 233 students and 130 parents, through 13 workshops and 5 technical assistance activities. We also provided technical assistance and workshops to social organizations, such as the Sanitation Service Management boards (JASS) and Users’ Commissions, with the participation of 43 local leaders.

Additionally, after nearly three years of dialogue, we signed the integral agreement between the peasant community of Huancoy, UNACEM, and the Asociación UNACEM.
PRIVATE SOCIAL INVESTMENT
Education
ART, CULTURE, AND SPORT PROYECT –
EXPLORING MY CREATIVITY WORKSHOP
Atocongo Plant
Since 2008
We promote the development of artistic and sport skills, as well as the productive use of free time.
Health
HEALTHY COMMUNITIES PROGRAM
Atocongo Plant
Since 2010
We promote better lifestyles and a healthy environment in our communities, building families’ capacities to take care of their own health.
OUR COMMUNITIES
RESULTS AND CHALLENGES (DMA INDIRECT ECONOMIC IMPACTS)

Results 2016

Challenges 2017

  • A total of 28 pre-investment studies performed and delivered. With our support for community works, we were able to build 1,064 m of retaining walls, 5,117 m2 of sidewalks, and 760 m of stairs, among other works.
  • Improve the efficiency, results, sustainability, and impact of our social investment projects.
  • In Atocongo, we detected 254 cases of anemia; and in Condorcocha, 14 cases of risk of anemia and diabetes (referred to health posts).
  • Continue focusing our intervention on the communities in our areas of direct influence.
  • Three municipalities in southern Lima obtained recognition of their Sustainable Local Environmental Management (GALS) by the MINAM.
  • Promote performance of the commitments contained in the agreement with the peasant community of Huancoy, as well as our commitments under the approved environmental instruments.
  • Over 2,900 beneficiaries of educational projects improved their skills and capacities.
  • A total of 7,658.5 m 2 of green areas with trees planted.
  • Strengthen relationships and trust between nearby communities and the Company, increasing dialogue, coordination meetings, plant visits, and other activities.
  • We supported 58 local initiatives, with over 17,000 direct beneficiaries.
OUR
CLIENTS
At UNACEM, we share knowledge and standards with our customers in order to help them improve practices in their own surroundings and maintain our position as market leaders.

OUR PRODUCTS(G4‑4)

The excellence that defines our production process allows us to offer our customers high-quality cement, with a strength that exceeds the requirements established in the Peruvian Technical Standards (NTP) and U.S. standards (ASTM).

OUR PRODUCTS

Product Type

Description

Bagged Cement

We offer 7 types of high-quality cement, with packaging that guarantees the conservation of their properties.

  • Cemento Andino I
  • Cemento Andino Ultra HS
  • Cemento Andino IP
  • Cemento Andino IPM
  • Cemento Andino V
  • Cemento Sol
  • Cemento Apu

Bulk Cement

We offer bulk cement, which is dispatched in big bags or on vehicles directly to the customer.



Through internal and external audits under our IMS, we verify compliance with all product-related requirements.

We also provide supplementary services to our customers, helping to strengthen our distribution chain. Such is the case with the Progresol Home Improvement Store Network, with over 400 points of sale. This allows us to build the capacities of home improvement business owners and distribute our products throughout our entire area of influence.

Our bagged cements feature a label containing their respective brands, the referential technical standards, and general instructions on their use and conservation. Each bag of cement is labeled with a code containing information on its provenance: the silo it comes from, the machine in which it was bagged, and the bagging date and time. This way, each lot dispatched to the market is identified, making it easier to ensure traceability if required (DMA Product and Service Labeling).

Innovation and Development
Our innovation strategy is primarily focused on the needs of the final user. For such purpose, we conduct market studies, through which we identify customers’ reasons for purchasing cement and the attributes they value, in order to define our business opportunities.

After determining the users’ needs, we assess the proposal based on five criteria that define whether the launch of the product is viable:
  • Market: whether it is necessary for the user.
  • Feasibility: whether the manufacture of the product is viable.
  • Logistics: whether we have the raw materials necessary.
  • Production: whether we have the resources and capacities to manufacture the product.
  • Economic: whether the price is affordable for the user.

During the final quarter of the year, we launched our new Cemento Andino Ultra HS, in response to a market need: more demanding consumers, who require a special product that protects against saltpeter, humidity, and alkali-reactive aggregates. This new cement seeks to position itself as the best in the market, with ultra-premium qualities. For this launch, the Innovation Committee was created, consisting of the Operations and Commercial managements (G4‑13).
We launched the
new Cemento
Andino Ultra HS, to
meet the needs of
a more demanding
market.
OUR CLIENTS

CUSTOMER TYPES (G4‑8) (G4‑9)

Our main customers are home improvement stores, whose purchases account for 56.5% of our sales and provide our products to foremen, construction workers, and do-it-yourself homebuilders.

We sell our products through two business units—bagged cement and bulk cement—which, in 2016, accounted for 77.0% and 23.0% of all dispatches, respectively.

TRAINING AND DEVELOPMENT (G4‑8)

Our Progresol Home Improvement Store Network is made up of home improvement store owners nationwide, who are our main sub-distributors. We promote their development through guidelines for the efficient management of their business and the performance of activities that generate demand at their points of sale: the image of the establishment, sale specials, and advertising materials.

Ten years ago now, UNACEM realized that the do-it-yourself builder segment lacked specialized training on construction techniques, since their knowledge was based only on experience. In response, we created the Professionalization Program, which provides do-it-yourself builders with training on the most important aspects of construction. With the help of outside engineers, we developed the program’s contents, which included the most important topics necessary to improve this segment’s performance and profitability.

In 2016, we trained 10,637 do-it-yourself homebuilders, foremen, and construction workers in Lima and the sierra central highlands.

MARKETS SERVED BY OUR PLANTS
Atocongo Plant
Condorcocha Plant
  • Lima
  • Lima
  • Áncash
  • Junín
  • Ica
  • Ayacucho
  • Ayacucho
  • Huancavelica
  • Apurímac
  • Apurímac
  • Pasco
  • Loreto
  • Loreto
  • Huanuco
  • San Martín
  • Ucayali
  • Loreto

Cement Brand

Attendance Goal

Actual Attendance

N° of Training Sessions

2015

2016

2015

2016

2015

2016

Cemento Sol

1,970

3,500

1,951

3,941

24

40

Cemento Apu

2,050

4,000

2,307

4,070

23

41

Cemento Andino

2,653

2,500

2,909

2,626

22

23

OUR CLIENTS

COMMUNICATION WITH OUR CUSTOMERS (DMA MARKETING COMMUNICATIONS)

Our advertising seeks to inform and reinforce positioning, but above all, to ensure that UNACEM’s brands are those preferred by foremen and do-it-yourself homebuilders, so that they recommend them after having a positive experience.

With this goal in mind, we carry out comprehensive communication campaigns for each one of our brands, which include television, radio, newspaper ads, and non-traditional activities. All of these channels allow us to remain close to the points of sale and the target audience, in order to reinforce the brands’ bond with their users and translate this into sales when consumers decide which cement brand to use in their works.

In all of our campaigns, we take care to disseminate positive messages, not to promote stereotypes, and to comply with the law. For such purpose, our advertising incorporates the following processes:
  • A market study conducted by investigative firms.
  • Once the strategy has been defined, the agency with which we are working proposes the creative pathway to be followed, which is assessed in an advertising study with the target audience, to validate the understanding of the message, as well as decreasing the risk of generating stereotypes.
  • With the feedback from the study, we design the campaign, which is reviewed by the Commercial Management, the Legal Management, the Central Management, and the General Management prior to its launch. This way, we make sure not to promote stereotypes, instead spreading positive messages and complying with the law.
It is important to note that as of this date, we have not received any warnings or sanctions for violations linked to our communications and advertising in the media (G4‑PR7).

Satisfaction with Our Products (DMA Product and Service Labeling)
(G4‑PR5)

Each year, we measure the satisfaction of our customers through surveys aimed at the persons responsible for purchasing our products or the users of our services. This information not only tells us about the satisfaction with our products, but also provides us with suggestions, compliments, and information, which we analyze and incorporate in an effort to improve our processes.

SATISFACTION RATE OF THE PROGRESOL NETWORK AND
INDEPENDENT HOME IMPROVEMENT STORES (G4‑PR5)
RELATIONS WITH OUR CUSTOMERS

Progresol Network

Independent Stores

  • The Progresol customer looks for greater support and advice from the distributor and the UNACEM supervisor for the development of his business. The performance of the distributor’s salesperson has the most impact on his satisfaction.
  • The main point of interest is the satisfaction rate with our cement: 39.0%. Special note should be given to the variety of products, temperature, exact weight, and quality.
  • The 42.0% satisfaction rate is tied to the billing, credit, collection, and order delivery processes. The improvement of these processes depends on UNACEM’s distributors.
  • Other factors of note include the performance of the salespeople, order delivery, and credits and collections.
OUR CLIENTS
Transparency of Information

At UNACEM, we implement actions aimed at respecting the privacy of our customers and consumers.

CUSTOMER AND CONSUMER PRIVACY PROTECTION MANAGEMENT

With customers: we have a direct or indirect business relationship.

Distributors and Progresol

Evaluation of Respect for Privacy

  • These customers receive economic benefits from UNACEM. The information provided is business-related.
  • The information to be evaluated includes dispatch and sales volumes, as well as compliance with commercial agreements. Private information is not placed at risk.
  • We are developing a customer profile with more information and greater detail, which includes a letter signed by the customer.

With consumers: we have contact with consumers through promotional or communications activities.

Construction Professionals
Do-It-Yourself Homebuilders

Evaluation of Respect for Privacy

  • Information is collected at the training activities we hold on behalf of our brands. The customer signs a document authorizing the use thereof.
  • The information to be evaluated is related to the activity organized and the number of attendees. Private information is not placed at risk.
  • We collect their information through our promotional activities.
  • We incinerate all elements bearing this information in the presence of a notary public.

Our Commercial Management has never received a complaint for a violation of privacy or leaking of any of our customers’ information. Likewise, we have detected no leaks, thefts, or losses of our customers’ personal information.

OUR CLIENTS
RESULTS AND CHALLENGES
Results 2016 Challenges for 2017
  • We complied with the annual plan for Progresol customers, which allowed us to maintain our market share.
  • Exceed the attendance of our consumer training programs by 10.0%.
  • Cemento Apu's "Los Apus" campaign won the Effie LATAM Grand Prize for the best marketing campaign in Latin America. We also received the Golden Effie in the New Products and Services category. Previously, we received the Effie Grand Prize 2016 for Perú, as well as the Golden Effie in the Other Products category.
  • Improve satisfaction among Progresol customers.
  • The number of training sessions for consumers was over 48.0% higher than in 2015, for a program total of 94,828 trainees.
ENVIRONMENTAL
MANAGEMENT
ENVIRONMENTAL IMPACT
OF OUR OPERATIONS
We have an Environmental Management System oriented toward efficiency and the reduction of environmental impacts related to all of our operations. As such, we are concerned with minimizing dust and greenhouse gas emissions, as well as reducing energy and water consumption, among other aspects that allow us to improve our environmental management in the manufacture of clinker and cement. The achievements attained are due to the building of human and institutional capacities, and the development programs that we implement with a focus on sustainable development (DMA Environmental Regulatory Compliance).

DESCRIPTION OF THE ENVIRONMENTAL COMPONENTS AFFECTED BY OUR OPERATIONS

Environmental Component

Environmental Impacts

Activities or Operations

Water

  • Changes in the physical or chemical quality of the water in nearby bodies of water.

  • Lowering of the water table.

  • Water retention, modification of the water table.

  • Carbon storage and generation of rainwater runoff.

  • Loading and unloading of ships at the Conchán pier.

  • —Groundwater extraction.

  • Operation of the Carpapata I, II, and III hydroelectric plants.

Flora

  • Effects on the quantity and diversity of flora species.

  • Extraction of raw materials, access routes in quarries, blasting, clearing of land to prepare construction areas in new projects, operation of the hydroelectric plant.

Fauna

  • Effects on the quantity and diversity of fauna species.

Archaeology

  • Effects on archaeological sites.

  • Extraction of raw materials, access routes in quarries, blasting, clearing of land to prepare construction areas in new projects.

Noise

  • Increase in noise levels above normal values.

  • Temporary or permanent generation of bothersome noises due to the operation of vehicles, equipment, and machinery, blasting in quarries, external transport of raw materials.

Air

  • Air pollution due to generation of particulate matter and gases.

  • Limestone size reduction processes, handling, transport, storage of raw materials and clinker, clinker manufacture and cement preparation. Loading and unloading of import and export materials via the Conchán pier. Operation of the Atocongo Thermal Power Plant.

Soil

  • Changes in soil quality.

  • Accidental spills of hydrocarbons and contaminant materials, implementation of new projects.

Topographical relief and landscape

  • Changes in topography and the form of the terrain.

  • Extraction of raw materials in quarries, cut and fill activities during the construction stage for new projects.

ENVIRONMENTAL IMPACT OF OUR OPERATIONS
Our environmental management is based on four pillars or action guidelines.
Environmental Quality
  • Manages environmental aspects (water, air, soil, waste, and energy) to reduce the impacts we cause to our surroundings.
  • Assesses and manages emissions and climate change, the environmental quality of the air (including noise) in the populations, the efficient use of energy, the responsible management of water, and the comprehensive management of solid waste.
Natural and Cultural Resources
  • biodiversity and archaeological remains.
  • Optimizes the use of raw materials and conducts environmental studies, in order to guarantee their sustainable use. Performs archaeological studies in current activities and new projects.
Capacity Building
  • Develops environmental knowledge and awareness among employees to ensure a responsible environmental management.
  • Transmits information related to the preservation of and care for the environment, environmental pollution, waste management, and the use of and care for water, through environmental management programs and campaigns.
Environmental Certifications
  • Prepares and approves environmental management instruments such as environmental impact assessments (EIA), environmental impact declarations (DIA), and supporting technical reports (ITS) on our activities. Additionally, verifies compliance with the obligations involved in environmental certifications with regard to modifications, expansions, or improvements to our activities, in accordance with environmental law.
ENVIRONMENTAL IMPACT OF OUR OPERATIONS
We also have formal environmental complaint and grievance mechanisms (DMA Environmental Complaint Mechanisms) (G4‑EN34).

ENVIRONMENTAL COMPLAINT AND GRIEVANCE MECHANISMS
Atocongo Plant Condorcocha Plant
  • At our plants, we have a procedure through which any complaint or grievance is registered with the Asociación UNACEM (Community Relations area). The procedure begins with the corresponding registration and coordination with the different areas. The process states that we must provide a response as soon as possible, via verbal or written communication.
  • We audit the complaint and grievance procedures, proposing improvements based on the results.
  • We constantly hold talks on the IMS procedures for our direct employees, contractors, and suppliers.
Complaints and Grievances
Atocongo plant Condorcocha plant
  • 3 complaints and grievances were registered: 2 of an environmental nature and 1 of a social nature, filed by community members.
  • 4 compliances and grievances were registered, all of an environmental nature, filed by community members.

All of the complaints and grievances filed by the community were responded and resolved. Those related to environmental matters involved dust. The social complaint was made by a resident who lives near the pavement on Lima Avenue that UNACEM implemented as part of its socio-environmental commitments tied to the construction of the conveyor belt. The citizen asked UNACEM to assume part of the costs for his residential water and sewerage connections.

On the other hand, we also have Environmental Departments at our plants, which are responsible for enforcing the environmental commitments established in the environmental impact assessments, in our industrial, port, mining, and energy activities. These departments also provide technical and environmental advice to the persons responsible for the projects performance (DMA Environmental Compliance).
ENVIRONMENTAL IMPACT OF OUR OPERATIONS
One of the mechanisms that makes it possible to verify our compliance with environmental obligations is the George System, which sends prompt alerts to the persons responsible for each process. We also perform an internal assessment, in the form of legal compliance audits, and an external audit by a certification firm that conducts an annual audit of the entire ISO 14001 management system.

CONTROL MECHANISMS FOR OUR LEGAL OBLIGATIONS (DMA ENVIRONMENTAL COMPLIANCE)

Control Mechanisms

Description

Environmental Monitoring

To ensure compliance with environmental law and the environmental commitments assumed in our environmental management instruments, we perform the following monitoring activities:

  • For the industry sector.
  • For the mining subsector.
  • For the electricity subsector.
  • For the hydrocarbons subsector.

— —

Participative Environmental Monitoring

Performed jointly with the authorities and residents of the neighboring communities. Questions are answered and comments are received, mainly with regard to the water and air monitoring activities.

Supervision by the Environmental Assessment and Auditing Agency (OEFA)

The OEFA performs unannounced visits to our activities, in order to guarantee compliance with the commitments assumed in our environmental management instruments.

Use and Monitoring Reports to Institutions Tied to Water Management

We report to local water authorities in Tarma, providing information related to the quantity of water used. We also report to the National Water Authority (ANA) on the water quality monitoring at the wastewater treatment plant.

Internal and External Audits as per ISO 14001 Requirements

The IMS includes annual audits: 2 internal and 1 external.


To date, our environmental management has meant that no economic sanctions have been applied due to environmental violations (G4‑EN29).

On behalf of the federal government, the OEFA performed 2 supervisory visits to the Condorcocha plant and 5 supervisory visits to the Atocongo premises. It also audited the industrial plant and quarry at Atocongo, the Atocongo Thermal Power Plant, the Conchán pier, the Atocongo-Conchán conveyor belt, and the Cajamarquilla concrete units plant, reporting objections only in the last of these audits (G4‑EN29).
We decreased
CO2 emissions
by approximately
104,528.6 tons.
ENVIRONMENTAL IMPACT OF OUR OPERATIONS

GREENHOUSE GAS EMISSIONS

At UNACEM, we work hard to reduce the concentration levels of greenhouse gas (GHG) and particulate matter emissions per ton of cement produced (DMA Emissions).

Our strategy is implemented on two fronts: the use of clean energy and the manufacture of blended cements that reduce greenhouse gas emissions. In 2016, we reduced our CO2 emissions by approximately 104,528.64 tons (71,889.64 at the Condorcocha plant and 32,639 at the Atocongo plant). (G4‑EN19) (G4‑13)

This was due primarily to the following actions: (G4‑EN19)
  • Generation of clean energy through the hydroelectric power plants at both plants.
  • At the Atocongo plant, the use of clean fuels, such as the partial substitution of coal with natural gas in the kilns for the clinkerization process, reducing CO2 equivalent emissions by 71,889.64 tons in 2016.
  • At the Condorcocha plant, the operations in cement mill 8 generated a blended cement production of 351,118 tons, reducing CO2 emissions by 32,639 tons.

Through a joint project, the Ministry of Industry and Fisheries, the Ministry of the Environment, and the Association of Cement Producers (ASOCEM) are working to draft a document that includes Nationally Appropriate Mitigation Actions (NAMA) on climate change. As part of the NAMA strategy, the Peruvian cement sector is currently in the process of acquiring the calculation methodology of the Inter-American Cement Federation (FICEM), entitled Getting the Numbers Right (GNR) LATAM, for the calculation of greenhouse gas emissions. This methodology is used by over 68.0% of all cement plants in Latin America.

The specific objectives of our IMS include the reduction of GHG. We are also in the process of measuring our carbon footprint, which will be audited by an independent certification firm. This will help us to fine-tune our GHG reduction plans and compare our figures to those of other companies in the cement sector, both domestically and internationally. (G4‑EN15)

One of the current objectives of the Ministry of the Environment is to update and establish new maximum permissible limits (MPL) for the gas and particulate matter emissions of the cement and lime industry. We are currently evaluating and analyzing the engineering and economic implications entailed by the future implementation of the new MPL.

We Guarantee Our Compliance with National Law (DMA Environmental Compliance)
  • Emissions Monitoring
    Monitoring activities are performed twice yearly on our emissions sources, divided among two cement plants and one thermal power plant, in accordance with the criteria established in the Atmospheric Emissions Monitoring Protocol (Ministerial Resolution 026-2000-ITINCI/DM). In 2015, 100.0% of the results obtained fell below the MPL established in Supreme Executive Order (D.S.) 003-2002-PRODUCE.

    As a reference, we also use Decree 638: Air Quality and Atmospheric Contamination Control Standards — Manufacture of Hydraulic Cement—Section: Maximum Permissible Levels of Emission into the Atmosphere, of the Mexican Environmental Protection Standards.

GAS AND PARTICULATE MATTER EMISSIONS (G4‑EN18) (G4‑EN21)

 

 2015

2016

Atocongo plant

Condorcocha plant

Atocongo plant

Condorcocha plant

Carbon Dioxide (CO2)

0.746 t CO2 /t clínker

0.681 t CO2/t cement

0.795 t CO2 /t clínker

0.712 t CO2/t cement

0.740 t CO2 /t clínker

0.662 t CO2/t cement

0.795 t CO2 /t clínker

0.719 t CO2/t cement

Nitrogen Oxide (NOx)

Kiln I
745.2 mg/Nm3

Kiln II
759.5 mg/Nm3

 

Kiln I
660.73 mg/Nm3


Kiln II
489.67 mg/Nm3

Kiln III
528.37 mg/Nm3

Kiln IV
244.68 mg/Nm3

Kiln I
420.8 mg/ Nm3

Kiln II
727.2 mg/Nm3

Kiln I
-- mg/Nm3 (*)


Kiln II
459.2 mg/Nm3

Kiln III
754.7 mg/Nm3

Kiln IV
308.3 mg/Nm3

Sulfur Oxide (SOx)

Kiln I
1499.4 mg/Nm3

Kiln II
1316.7 mg/Nm3

Kiln I
<3.4 mg/Nm3

Kiln II
<3.4 mg/Nm3

Kiln III
<3.4 mg/Nm3

Kiln IV
<3.4 mg/Nm3

Kiln I
1,781.4 mg/Nm3

Kiln II
1,191.5 mg/Nm3

Kiln I
-- mg/Nm3 (*)

Kiln II
<1.2 mg/Nm3

Kiln III
<1.2 mg/Nm3

Kiln IV
<1.2 mg/Nm3

Particulate Matter

Kiln I
13.8 mg/m3


Kiln II
28.9 mg/m3

Kiln I
2.23 mg/m3


Kiln II
71.74 mg/m3


Kiln III
21.1 mg/m3


Kiln IV
3.42 mg/m3

Kiln I
44.4 mg/m3

Kiln II
25.1 mg/m3

Kiln I
-- mg/m3 (*)


Kiln II
74.4 mg/m3


Kiln III
10.5 mg/m3


Kiln IV
7.4 mg/m3


ENVIRONMENTAL IMPACT OF OUR OPERATIONS

BIODIVERSITY

At UNACEM, we monitor and keep watch over the biodiversity indicators of our mining operations, by performing twice-yearly inspections of our mining concessions. We also have an Environmental Management Plan for each unit, which are approved by the competent authority and are aimed at preventing, mitigating, and correcting the environmental impacts of our activities.

We also have approved environmental impact assessments, which describe the environmental baseline of the biodiversity in our area of influence, establishing measures for the prevention, control, and mitigation of adverse impacts on physical, biological, and social media (DMA Biodiversity).

Main Impacts on Biodiversity

Our quarry operations cause impacts to the flora and fauna within the site area, given that they involve open pit mining for the extraction of raw materials. For this reason, we monitor biodiversity as part of our mining operations. We also have mine closure plans, in which biodiversity-related aspects are addressed in revegetation plans. The industrial plants generate mild impacts due to the low presence of biodiversity (flora and fauna), given that new projects are located and operated in an intervened industrial area, with little wild flora and fauna, which does not constitute a critical habitat for the reproduction or survival of species (G4‑EN12).

Protected and Restored Habitats

There are no Protected Natural Areas in the quarries of Atocongo and Cristina, only fragile hill ecosystems, where we have revegetation plans involving native flora species. We have performed preliminary habitat remediation studies in the Las Dunas No. 2 concession.

In the surroundings of the Condorcocha plant, there are no protected habitats. However, there are four restored areas. (G4‑EN13)

  • Duck pond: Located inside our facilities. In the past, limestone was extracted from this site. The pond is used as a habitat by migratory birds, and ducks and geese are also raised here. The pond is inhabited by trout, which have adapted very well to this environment.

  • Zone of Pacchon:, In this area, previously used for a dump, we have planted tall-trunk species (such as eucalyptus and queñuales), as well as cultivating shrub species (such as clover and alfalfa), which are used as a feed source for our guinea pig farm.

  • Ravine: This area was also used as a dump. Different species are grown here, but mainly shrub species such as alfalfa, which have successfully adapted and are used as a feed source for our guinea pig farm.

  • Carpapata: This year, we culminated the construction work for the Carpapata III hydroelectric power plant, in compliance with the commitments assumed in the environmental management instrument for said plant. Here, we remediated two areas by sowing local shrub species for greater adaptability, one of them on a former dump and the other near a high-voltage tower. During the year, residents from the populated center of Condorcocha and the La Unión Leticia district participated in guided visits, so that the management of the areas and conservation of the species could be explained to them.
ENVIRONMENTAL IMPACT OF OUR OPERATIONS

TRANSPORT (DMA TRANSPORT) (G4‑EN30)

Our transport management is not centralized in one specific area. The Company’s Goods and Services Procurement Department manages the following types of transport:

Transport for Procurement of Materials

This transport is the responsibility of the companies that supply materials, since these are purchased under “delivery at plant” conditions. The vehicles (whether the companies’ own, or subcontracted), along with the drivers, enter our facilities in compliance with the requirements established in the Occupational Health, Safety, and Environment Sheet, guaranteeing adequate safety measures, the training of personnel, the proper signage, and vehicles in good condition, in order to minimize possible environmental impacts.

Transport Between Operating Centers

This transport is contracted directly, according to the rates and requirements established by our Logistics area. The transport quantities and frequencies are determined depending on the needs of each production plant. As in the case of the transport for the procurement of materials, the vehicles and their operators comply with the requirements of the Occupational Health, Safety, and Environment Sheet, as well as those established by the Personnel area and those for access to the loading and unloading area of the mining zone.

The drivers and vehicles that enter our facilities are evaluated through control inspections performed by the Safety and Environment Department. Additionally, our Internal Auditing Department reviews the processes to determine whether they meet the requirements established for the industrial and mining zone.

The weight checks for each truck are performed using different scales, which are supervised by the Operations Management. The duties for the control and inspection of documents are shared by the Warehouse and Goods and Services Procurement Departments.
  • At the Atocongo Plant: the dispatch controls are verified by the Packing and Dispatch Department, as well as the Safety Department.

  • At the Condorcocha Plant:the controls are performed in coordination with the Assistant Sales Management, while the verification is carried out by the Dispatch Office.
Since management is corporate, the transport processes are the same for both production plants (Atocongo and Condorcocha).
ENVIRONMENTAL IMPACT OF OUR OPERATIONS
SIGNIFICANT ENVIRONMENTAL IMPACTS OF TRANSPORT
(G4‑EN30)

Impact

Description

Fuel
Consumption

Vehicles use diesel fuel. The environmental impact is the result of the consumption of a non-renewable resource.

Emissions Generation

The burning of fossil fuels generates contaminating gases (CO2, CO, water vapor, and sulfurized compounds) that alter the air quality.

Dust Generation

Dust is generated due to the loading and transport of material in vehicles on the paved roads and paths.

Effluents Generation

Effluents are generated during the cleaning and washing of vehicles.

Waste Generation

During vehicle maintenance, if the transporter has not adequately disposed of used oil, filters, etc., the soil or water sources may be contaminated. If waste is generated inside our facilities, it is disposed of by a specialized solid waste service provider.

Waste Generation

Noise pollution caused by passing vehicles, which impacts the environmental quality of residents of the areas of influence, as well as fauna.

Spills

Falls or spills or products or raw materials during transport. There were no spills in 2016.

We performed the following activities to mitigate environmental impacts: (G4‑EN30)
  • We reduced the quantity of materials to be transported overland, with the improvement of our production processes.
  • We established the use of a more modern automotive fleet, with vehicles no more than 15 years old, to reduce fuel consumption and the emission of CO2.
  • At the Conchán pier, we use a tubular conveyor belt to move products, raw materials, and bulk inputs from the pier to Atocongo and vice versa, thus successfully reducing the impact of road-based transport.
The Carpapata III hydroelectric
plant commenced operations
in July 2016.
RESOURCE CONSUMPTION
AND MANAGEMENT

ENERGY

We are committed to satisfying the needs and meeting the expectations of our stakeholders through an efficient management of resources and processes, preventing environmental pollution and mitigating the environmental impacts generated by our activities.

We recognize that our processes require large amounts of energy to manufacture our products. For this reason, we use modern, efficient technologies implemented through upgrades and overhauls, as well as rolling out new production lines (DMA Energy).

We monitor the thermal energy and electricity consumption per ton of clinker and cement produced by our plants. We also incorporate the use of clean energy, such as that generated at the Carpapata I, II, and III hydroelectric plants. Additionally, we are the majority partner in Compañía Eléctrica El Platanal (CELEPSA), which provides us with hydroelectric power for our plants.

  • Fuel Consumption:We use a mix of fuels for the production of clinker, consisting of coal (domestic and imported) and natural gas. The latter fuel allows us to reduce the level of greenhouse gas emissions, since it is cleaner than coal. The high temperatures (1,450 °C) necessary to process clinker in our kilns consumed the following quantity of fuels: (G4‑EN3)

FUEL CONSUMPTION IN KILNS (G4‑EN3)
Fuel Type 2015 2016
Planta Atocongo Planta Condorcocha Planta Atocongo Planta Condorcocha

Coal (in metric tons)

123,792.0

222,854.0

192,932.0

162,277.0

Oil (in metric tons)

1,567.0

2,925.0

952.5

3,035.0

Natural Gas (in cubic meters)

163,169,803.0

-

169,610,434.0

-

Diesel (in galons)

-

24,713.0

4,245.0

9,434.0

The reduction in coal use at the Condorcocha plant was due to the stoppage of Kiln 3, as a result of market restrictions.

We have performed a prefeasibility study for the co-processing of urban solid waste, in order to identify sources of renewable energies for the thermal consumption of the kilns.
  • Electric Energy Consumption: The energy for the Atocongo plant comes from CELEPSA and GEA S.A. (Atocongo Thermal Power Plant), which supplies energy during peak hours or when failures occur in the National Grid System. In 2016, the average consumption came to 93.33 kW-h per ton of cement produced. This value falls within the goal proposed in the Integrated Management System, which was 98 kW-h per ton of cement produced.

The Condorcocha plant is powered by four operative hydroelectric power plants: El Platanal, property of our subsidiary CELEPSA; and Carpapata I, Carpapata II, and Carpapata III. It should be noted that the Carpapata III hydroelectric plant entered into operation in July 2016. The plant’s average consumption was 163 kW-h per ton of cement dispatched.

We also delivered 2,000,000 kW-h (7,200 GJ) of electric energy, free of charge, to the urban part of the La Unión Leticia district, thanks to a bilateral agreement (G4‑EN3).

ELECTRIC ENERGY CONSUMPTION (G4‑EN3)
 Electric Energy Consumption in Gigajoules 2015 2016

Atocongo plant

Condorcocha plant

Atocongo plant

Condorcocha plant

El Platanal

1,248,421.0

677,372.0

1,156,712.0 

492,453.0

Atocongo Thermal Power Plant

147,249.0

-

 98,991.0

-

Carpapata I, II, and III
hydroelectric plants

-

351,179.0

 -

367,499.0

Total

1,395,670.0

1,028,551.0

 1,255,703.0

859,952.0


It should be noted that 95.0% of the total electric energy consumed in both plants comes from renewable sources.

REDUCTION OF ENERGY REQUIREMENTS (G4‑EN7) (G4‑13)

Atocongo plant

Condorcocha plant

  • — The overhaul of Kiln 1 (in July 2013) and Kiln 2 (in 1998) has made it possible to obtain an average thermal energy consumption of 737.3 kcal per kilogram of clinker, thus meeting the IMS target of not exceeding 747 kcal/kg of clinker. Electric energy consumption was 93.33 kW-h per ton of cement. These indicators are quite efficient compared to those from the Latin America region, which are generally above 800 kcal per kilogram of clinker and 100 kW-h per ton of cement.

  • El consumo de energía eléctrica proveniente de nuestra generación propia en las centrales hidroeléctricas Carpapata I, II y III representó el 43.0%, frente a la compra hecha a nuestra subsidiaria CELEPSA, que representó el 57.0%.


RESOURCE CONSUMPTION AND MANAGEMENT

WATER

Our cement is manufactured using dry processes, in which water consumption is minimal. Even so, we have a Responsible Water Management Program, due to the fact that our industrial, mining, port, and energy facilities are located in an area with an arid climate, such as the districts of Villa María del Triunfo in Lima, and La Unión Leticia in Tarma (DMA Water).

We are conscious of the fact that water is a scarce resource and a sensitive matter around the world; therefore, we have developed an efficient management strategy. In 2016, we continued with the process for the measurement of our water footprint, and we are designing procedures to integrate this measurement into the Integrated Management System at Atocongo, in order to improve control in the use of water resources in our operations.

WATER CONSUMPTION AND MANAGEMENT AT OUR PLANTS (G4‑EN8) (G4‑EN10)
  2015 2016
  Atocongo plant (in m3) Condorcocha plant (in m3) Atocongo plant (in m3) Condorcocha plant (in m3)

Total Water Consumption

552,895.0

163,731.7

518,150.0

187,238.0

>Total Groundwater Consumption

552,895.0

-

518,150.0

-

Total Consumption of Water
from Springs and Creeks

-

163,731.7

-

187,238.0

Total Water Consumption for
Domestic Use

472,020.0

126,462.6

353,464.0

131,470.0

Total Water Consumption for
Industrial and Mining Use

80,875.0

32,280.0

164,686.0

46,414.0

Firefighting System

-

4,989.1

-

9,354.0

Volume of Water Reused

91,442.0

101,170.1

132,551.0

105,176.0

Percentage of Water Reused

16.5%

62.0%

 25.6%

56.2%


Our water management is focused on the following activities:
  • Recirculation of industrial water.
  • Technological irrigation systems for the maintenance of green areas.
  • Efficient water control systems in the office restrooms and locker rooms.
  • Wastewater treatment plant (PTAR).
  • Watering of green areas using treated water from domestic effluents.
  • Training of personnel on the efficient use of resources.
  • Measurement of our water footprint.
We also monitor water quality and effluents through a certified consulting firm, which determines the quality of the water used at the plants and in the camps.

Effluent and Wastewater Management
  • At the Atocongo plant, we continued to water the green areas using treated wastewater from the PTAR, thus reducing consumption by more than 11,000 m3per month. This activity is also carried out at the Condorcocha plant, where we have reduced the consumption of water from springs and creeks by more than 8,430 m3 per month.
  • At both plants, it is prohibited to discharge effluents into bodies of water. Our objective is to optimize effluent management through our PTAR, where nearly 100.0% of the waste effluents are reused for the watering of green areas and for the firefighting system.
  • We continue to water gravel and dirt roads located at the industrial plant and quarries of Atocongo using treated wastewater (DMA Effluents and Waste) (G4‑EN10) (G4‑EN22).
RESOURCE CONSUMPTION AND MANAGEMENT

WASTE

The management of solid waste is included in our environmental quality guidelines, where we promote the reduction, reuse, and recycling of solid waste. Through the “Tu Papel No Termina Aquí… Recicla” campaign, we incentivize the separation and minimization of waste at our facilities, delivering the waste to the recyclers’ associations in our community. Likewise, all of our non-salable waste is delivered to companies authorized by the Ministry of Health (DMA Effluents and Waste).

Our solid waste management procedure involves the following steps:
  • Temporary storage of waste (collection points).
  • Collection of solid waste.
  • Transport of hazardous and non-hazardous solid waste.
  • Waste sorting.
  • Centralized waste storage.
  • Final transport and disposal.

At UNACEM, we have evaluated the possibility of co-processing our waste as an alternative fuel in our kilns. We are currently conducting a prefeasibility study, given that the cement industry is a viable waste management alternative for cities (G4‑EN23).

SOLID WASTE MANAGEMENT BY PLANT IN 2016

Atocongo Plant

Condorcocha Plant

  • Recyclable waste is collected by the Las Palmeras Recyclers’ Association, who recycled 612 tons of a total of 946 tons collected by the solid waste commercializing company (EC – RS).
  • The EC – RS is responsible for commercializing recyclable solid waste.
  • We reused 1,292 tons of waste collected by the industrial sweeping machine.
  • We reuse the glass crushed at the plant, and recover materials such as clinker, contaminated soil, and construction waste for their subsequent inclusion in production.
  • We recovered 107.67 tons of materials used in the clinker manufacturing process. We have also arranged for the recovery of other materials generated during the cement manufacturing process.
  • We reuse the deposits left after cleaning the tanks, recovering hydrocarbons from them.
  • Pruning waste is used for composting (31.5 tons), as is the waste from the main dining hall (4.59 tons).
  • Organic waste is used for composting.
  • Waste that could not be reused or recycled totaled 605 tons, which was disposed of in a sanitary landfill.
  • The final disposal of non-hazardous, non-recoverable solid waste is performed in our sanitary landfill, approved by the Ministry of Health.
  • A total of 3,767 tons of waste was generated, of which 77.0% was recycled and 23.0% was disposed of in an authorized sanitary landfill.
  • We generated 1,611 tons of waste, of which 80.0% was recycled and 20.0% was disposed of in an authorized sanitary landfill.
  • We promote the reduction, reuse, and recycling of solid waste through training sessions, as well as a contest for art made using recycled materials.
  • We promote the recycling of solid waste through training sessions and a contest for art made using recycled materials. We also incentivize the sorting and minimization of waste in our facilities.

WASTE MANAGEMENT AND TREATMENT METHOD AT THE
CONDORCOCHA PLANT (G4‑EN23)

Method Weight in Tons %
Non-Hazardous Waste

Reuse

61.4

4.1%

Recycling

843.7

56.1%

Composting

255.5

17.0%

Recovery

71.5

4.8%

Dump

271.7

18.1%

Hazardous Waste

Recycling

50.2

46.5%

Dump

57.6

53.5%


WASTE MANAGEMENT AND TREATMENT METHOD AT THE ATOCONGO PLANT IN 2016 (G4‑EN23)

Units

Total Waste

Total Generated Sanitary Landfill Sale, Treatment,
Donation
Composting Recovery Total Recycling Recycling % Disposal %

Industrial plant and
connected activities

3,461.3

613.1

1,520.3

35.9

1,292.0

2,848.2

82.0

18.0

Conchán pier

30.8

30.8

-

-

-

-

-

100.0

Atocongo quarries

91.3

65.3

26.0

-

-

26.0

28.0

72.0

Cristina concession

137.6

137.6

-

-

-

-

-

100.0

Dunas UEA

1.7

1.7

-

-

-

-

-

100.0

Las Hienas concession

1.5

1.5

-

-

-

-

-

100.0

Concrete units plant

13.0

13.0

-

-

-

-

-

100.0

Total waste - UNACEM Atocongo

3,737.1

863.0

1,546.3

35.9

1,292.0

2,874.2

77.0

23.0


RESULTS AND CHALLENGES

Results 2016

Challenges for 2017

  • The particulate matter emission levels registered are within the maximum permissible limits.
  • Not to exceed the maximum permissible limits for particulate matter in all of the processes at the Atocongo and Condorcocha plants.
  • The concentration levels of PM 10 and PM 2 suspended particles in the areas of influence of the Atocongo and Condorcocha plants do not exceed the Environmental Quality Standard for said parameters.
  • Evaluate improvements to the coal milling plant system at Atocongo and in the clinker coolers of Kilns I and II at the Condorcocha plant.
  • The reuse of the waste generated totaled 80.0% at Condorcocha and 77.0% at Atocongo, thus successfully surpassing our goal (Condorcocha: 60.0%; Atocongo: 50.0%).
  • Achieve a percentage of reused waste, averaged out between both plants, in excess of 60.0% of all waste generated.
  • We have reduced greenhouse gas emissions by over 100,000 tons between the Condorcocha plant and the Atocongo plant.
  • Maintain the specific emission of CO2 per ton of clinker at 0.75 t of CO2/t per ton of clinker.
  • The thermal consumption of the Atocongo plant averaged 740 kcal/kg of clinker, less than the target of 747 kcal/kg of clinker for 2016.
  • Implement the international Getting the Numbers Right (GNR) methodology for the calculation of greenhouse gas emissions at Atocongo and Condorcocha.
  • The seventh “Earth Hour” campaign was carried out, with the participation of the Atocongo plant, the Conchán pier, and the Asociación UNACEM.
  • Reduce fuel consumption in the manufacture of clinker at the Atocongo plant, with a maximum consumption of 745 kcal/kg of clinker.
  • At Condorcocha, we carried out 7 afforestation campaigns, in which we planted 160 radiata pine trees and afforested an area of 480 m2, more than double our goal of 200 m2.
  •  Reduce the specific consumption of electricity per ton of cement at the Atocongo plant, with a maximum consumption of 94 kW-h/t of cement equivalent.
  • We treated nearly 100.0% of all effluents generated at our Atocongo and Condorcocha facilities, reusing them to water green areas and supply the firefighting system.
  •  Reduce the consumption of well water in the area of Las Palmas – Atocongo to a maximum of 31,102 m3 per month.
  • No environmental fines or sanctions were received in 2016.
  • Treat 100.0% of the waste effluents generated at the Atocongo and Condorcocha facilities.
  • Evaluate the reduction of nitrogen oxide emissions in the generation of electricity at the Atocongo Thermal Power Plant.
  • Continue with the systematization of the water footprint at Atocongo and Condorcocha.
GRI
INDEX
ABOUT OUR SUSTAINABILITY
REPORT

This Sustainability Report provides information on the economic, social, and environmental performance of UNACEM in Perú. It covers the period between January 1 and December 31, 2016, and has been prepared in accordance with the Global Reporting Initiative (GRI) G4 Guidelines, under the “Core” option, using the GRI Sector Supplement for Mining & Metals (G4‑6) (G4‑17) (G4‑28) (G4‑29) (G4‑30).

To gather information on the GRI indicators, we have reviewed internal and public documents. We have likewise used data collection sheets, which were prepared in accordance with the guidelines established in the GRI technical protocols. We also organized workshops to raise awareness and provide support to those responsible for filling out the information (G4‑22) (G4‑23).

MATERIALITY PROCESS

To select the most relevant aspects to be included in this Report, in order to reflect the most important matters for the Company’s stakeholders and identify the most significant sustainability aspects, we performed a four-stage process: (G4‑18)

ABOUT OUR SUSTAINABILITY REPORT

As a result of this process, we identified the material aspects to be included in this Report. Its boundaries6 , the stakeholders, and related business units are detailed in the following graph and table: (G4‑18)

MATERIALITY GRAPH

6 Boundary: description of where the impacts of each aspect occur.

ABOUT OUR SUSTAINABILITY REPORT

MATERIAL ASPECTS INCLUDED

GRI Material Aspect (G4-19)

GRI Category Boundary (G4-20) (G4-21) Related Stakeholders (G4-27)

1. Indirect Economic Impacts

Economy

Outside Boundary

Community

2. Economic Performance

Economy

Inside Boundary

Shareholders

3. Energy

Environment

Outside Boundary

Clients, Community y Environment

4. Water

Environment

Outside Boundary

Community and Environment

5. Biodiversity

Environment

Outside Boundary

Community and Environment

6. Emissions

Environment

Outside Boundary

Community and Environment

7. Effluents and Waste

Environment

Outside Boundary

Community and Environment

8. Regulatory Compliance

Environment

Outside Boundary

Community and Environment

9. Transport Impacts

Environment

Outside Boundary

Clients, Community and Environment

10. Supplier Environmental Assessment

Environment

Outside Boundary

Suppliers

11. Environmental Grievance Mechanisms

Environment

Outside Boundary

Community and Environment

12. Employment

Social: Labor Practices and Decent Work

Inside and Outside Boundary

Employees and Community

13. Labor/Management Relations

Social: Labor Practices and Decent Work

Inside Boundary

Employees

14. Occupational Health and Safety

Social: Labor Practices and Decent Work

Inside and Outside Boundary

Employees and Suppliers

15. Training and Education

Social: Labor Practices and Decent Work

Inside Boundary

Employees

16. Supplier Assessment for Labor Practices

Social: Labor Practices and Decent Work

Outside Boundary

Suppliers

17. Non-Discrimination

Social: Human Rights

Inside and Outside Boundary

Employees, Suppliers and Community

18. Freedom of Association and Collective Bargaining

Social: Human Rights

Inside and Outside Boundary

Employees and Suppliers

19. Child Labor

Social: Human Rights

Inside and Outside Boundary

Employees and Suppliers

20. Forced Labor

Social: Human Rights

Inside and Outside Boundary

Employees and Suppliers

21. Communityes locales

Social: Society

Outside Boundary

Community

22. Anti-Corruption

Social: Society

Inside and Outside Boundary

Employees, Clients, Suppliers, Goverment and Community

23. Cumplimiento regulatorio

Social: Society

Inside and Outside Boundary

Employees, Clients, Suppliers, Goverment y Community

24. Product and Service Labeling

Social: Responsibility for Products

Outside Boundary

Clients

25. Marketing Communications

Social: Responsibility for Products

Outside Boundary

Clients

26. Dust Management

Social: Responsibility for Products

Outside Boundary

Community and Environment

ABOUT OUR SUSTAINABILITY REPORT

ALL RIGHTS RESERVED

This digital book is published exclusively for Unión Andina de Cementos S.A.A. It may not be reproduced, recorded, or transmitted by any type of data recovery system via any means, whether mechanical, photochemical, electronic, magnetic, electro-optical, photocopies, or others, without the prior written permission of Unión Andina de Cementos S.A.A.

UNIÓN ANDINA DE CEMENTOS S.A.A. (G4-3)
Avenida Atocongo 2440. Lima 35, Perú. (G4-5)

ASOCIACIÓN UNACEM
Avenida Atocongo 3020. Lima 35, Perú.
Email: comunicaciones@asociaciónunacem.org (G4-31)
OUR SUSTAINABLE MANAGEMENT
IS BASED ON
AN INTEGRATED MANAGEMENT
SYSTEM (SIG), CERTIFIED
UNDER ISO 9001,
ISO 14001, OHSAS 18001,
BASC AND PBIP STANDARDS.
AS PART OF OUR
SUSTAINABILITY POLICY,
WE HAVE ESTABLISHED ALLIANCES
WITH A RANGE OF PERUVIAN
AND INTERNATIONAL INSTITUTIONS,
BUSINESS ASSOCIATIONS,
AND OUR COMMUNITIES.
WE PROMOTE
VALUE CREATION
FOR OUR
STAKEHOLDERS
20,300 HOURS OF
TRAINING PROVIDED
TO EMPLOYEES
(26.7 MAN-HOURS
PER EMPLOYEE,
ON AVERAGE).
WE HAVE IMPROVED
OUR SAFETY INDICATORS
REDUCING FRECUENCY RATES
BY 50.5%,
SEVERITY BY 98.9% AND
ACCIDENT RATES BY 99.6%,
COMPARED TO 2015.
PRIVATE SOCIAL INVESTMENT
Education
OCCUPATIONAL
TRAINING PROJECT
Condorcocha Plant
Since 2014
We build women’s technical capacities to help them generate economic income.
PRIVATE SOCIAL INVESTMENT
Environment
COMMUNITY ENVIRONMENTAL PROJECT
Atocongo Plant
Since 2009
We foster better environmental management in order to improve communities’ surroundings on a participative, sustainable basis.
PRIVATE SOCIAL INVESTMENT
Education
PRIVATE
SOCIAL INVESTMENT
Atocongo Plant
Since 2005
We improve technical and production, as well as business management skills so participants can start their own businesses.
PRIVATE SOCIAL INVESTMENT
Infrastructure
RETAINING WALLS IN AT-RISK COMMUNITIES
Atocongo Plant
Since 2003
We support communities with cement donations so they can build infrastructure works such as retaining walls, sidewalks, and stairs.
PRIVATE SOCIAL INVESTMENT
Infrastructure
CONSTRUCTION OF PERIMETER WALL
FOR CEMETERY
Planta Condorcocha
Since 2013
We contribute to communities’ development through public infrastructure works
PRIVATE SOCIAL INVESTMENT
Education
ART , CULTURE AND
SPORT PROJECT - MUSIC WORKSHOP
Atocongo Plant
Since 2008
We promote the development of artistic and sport skills, as well as the productive use of free time.
PRIVATE SOCIAL INVESTMENT
Infrastructure
REPAIR OF
IRRIGATION CANALS
Condorcocha Plant
Since 2013
We contribute to communities’ development through public infrastructure works.
PRIVATE SOCIAL INVESTMENT
Education
DIGITAL INCLUSION
PROJECT
Condorcocha Plant
Since 2016
We strengthen teachers’ capacities and abilities so that they can use ICT to improve classroom teaching.
PRIVATE SOCIAL INVESTMENT
Educación
ART, CULTURE, AND SPORT PROYECT -
EXPLORING MY CREATIVITY WORKSHOP
Atocongo Plant
Since 2008
We promote the development of artistic and sport skills, as well as the productive use of free time.
PRIVATE SOCIAL INVESTMENT
Health
HEALTHY COMMUNITIES PROGRAM
Atocongo Plant
Since 2010
We promote better lifestyles and a healthy environment in our communities, building families’ capacities to take care of their own health.
WE LAUNCHED THE NEW CEMENTO
ANDINO ULTRA HS,
TO MEET THE NEEDS
OF A MORE DEMANDING MARKET.
THE CARPAPATA III
HYDROELECTRIC PLANT
COMMENCED OPERATIONS
IN JULY 2016.