ter future

2010 sustainable

building a bet

building a be

development report CeMeX in the uAe

TablE Of CONTENTs

3 ABOUT CEMEX

5 SUSTAINABILITY VISION AND MODEL7 CEMEX'S sustAinAbility PRIORITIES

9 OUR PEOPLE 12 OUR NEIGHBORS 13 OUR BUSINESS PARTNERS 14 OUR WORLD

15 SUSTAINABILITY INITIATIVES

17 COMMUNICATION AND AWARENESS INITIATIVES 20 CEMEX AT COP 1621 KEY PERFORMANCE INDICATORS25 ABOUT THIS REPORT

CONTaCT INfORmaTION

PO BOX 37900Dubai, U.A.E.Tel: +971 4 347 0427 / 477Fax: +971 4 340 8760www.cemex.cominfo.dubai@cemex.com

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Peacocks resting in the CEMEX Garden

Al Quoz, Dubai

2 MESSAGE FROM OUR CEO

4 ABOUT CEMEX in the UAE

CEMEX in the UAE Regional Office

TO OUR STAKEHOLDERS:

This, our first published Sustainability Report for the UAE, covers the period from January 2009 to December 2010 and records our progress in helping to ensure a more sustainable future for all. For CEMEX in the UAE, the issue of sustainability and responsible leadership is a cornerstone of our decision making processes and one that underpins all our actions. We measure, control and continuously improve our operations to make sure that we “walk the walk”, rather than merely “talk the talk” and we have integrated this focus on a more sustainable future further into our business model. Our vision is of a successful, sustainable CEMEX that makes a positive contribution to people and the environment. We recognize our duty to our employees, contractors, and people who come into contact with our business. It is with great sadness that we report that in late 2010, one of our vehicles was involved in a fatality of a 3rd party; our thoughts are with the family of this individual. Work-related incidents are preventable, and it should be the right of every employee to go home unharmed at the end of a working day. This is why CEMEX has a target of achieving zero injuries. While demand for our products declined in 2010, we maintained profitability by focusing on efficiencies,

increasing levels of innovation with regard to our products and business model, and maintaining a relentless emphasis on quality. We continue to raise our employees’ awareness of sustainability issues (as reported on page 14). We reduced CO2 per unit of production by 4%, and were the first integrated cement and Readymix Concrete Company in the Emirates to achieve ISO accreditation for ISO 9001, ISO 14001 and OHSAS 18001. The use of sustainable solutions that safeguard the future of communities we serve is at the core of our business strategy

product in the UAE that has 40% lower carbon levels than normal cement. Initiatives to reduce the use of water, electricity and waste materials have also yielded a positive contribution. Since 2009, water usage has been cut by 48% through consumption control and the increased use of recycled water, while waste materials have been reduced by 69% since 2008, through quality controls. In this report you will learn more about how we execute our commitment by fostering a sustainable development culture within our operations. We recognize that there is still more to do but we have made significant progress and are pleased to lead our industry on this issue. We will share our progress in future editions of our Sustainability Report. Feel free to contact us at any time should you have any comments on our actions and specifically on the report. Best Regards, Graham Russell

MESSAGE from our CEO

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“Our commitment to sustainability remains solid, despite the market and

economic challenges we face.”

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and we are proud to be able to offer an ECO CEM 3 cement

CEO – CEMEX in the UAE

aboutCEMEX

We help our customers solve their building challenges

CEMEX is a global building materials company that provides prod-ucts of consistently high quality and reliable service to customers and communities across the world.

We advance the well-being of those we serve through our relent-less focus on continuous improvement and our efforts to promote a sustainable future.

Our company was founded in Mexico in 1906, and we have grown from a local player to one of the top global companies in our indus-try, with close to 46,500 employees worldwide. Today we are strategi-cally positioned in the Americas, Europe, Africa, the Middle East, and Asia. Our operations network produces, distributes, and markets ce-ment, ready-mix concrete, aggregates, and related building materials to customers in over 50 countries, and we maintain trade relation-ships in approximately 100 nations.

CEMEX, A TRuSTED GLObAL bRAND CEMEX is an established brand that represents our whole orga-nization as well as the bulk aggregates, ready-mix concrete, and cement we distribute in the different markets we serve. In many markets, we also have individual brands for our local bagged ce-ment and some of our special concrete products.

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CEMEX entered the United Arab Emirates in March 2005 when it acquired the UK-based RMC Group. RMC had been present in Dubai since 1998 through its Topmix and Falcon operations, and in Abu Dhabi since the year 2000 through its Supermix operation

Since 2005, the Company has operated in the UAE as CEMEX Topmix LLC, CEMEX Supermix LLC (ready-mix concrete) and CEMEX Falcon LLC (cement), with headquarters in Dubai

CEMEX Topmix LLC and CEMEX Supermix LLC have 9 active concrete batching plants between them, with an annual capacity of 2.1 million m3

Code of Ethics and Business Conduct

about

We expect our employees to follow the highest ethical standards, which are set out in our Code of Ethics and Business conduct. The code guides our behavior in areas related to conflicts of interest, confidentiality, employee relations, the environment, external stakeholders, financial and legal compliance, protecting the company’s assets and workplace health and safety. All employees are required to adhere to the principles of the code.

The cement grinding mill at CEMEX Falcon LLC has an annual capacity of 1.6 million MT

The cement grinding mill at

(Abu Dhabi)

Abu Dhabi Gov't (Ministry of the Interior) HousingDevelopment at the foot of Sheikh Zayed Mosque

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CEMEX in the UAE

Quick Facts about CEMEX in the UAE

sustainability VISION and model

The world we live in is changing rapidly:

The world’s population will grow significantly in the next 40 years and there will be a massive migration of people from rural areas to cities.

The general scientific consensus is that climate change cannot be ignored, and that average global temperatures are likely to increase significantly by the end of this century1. These increases in tem-peratures will mean not only rising sea levels, but also more intense precipitation in some countries, increased risk of drought in others, and adverse effects on agriculture, health, biodiversity, and water resources around the world.

The global community must find a way to rapidly grow existing cities and build new ones making a better use of resources and responding to the expectations of local communities of having their living standards improve. To achieve this, “business as usual” cannot continue.

Envisioning a sustainable future

As a leading company in the global building materials industry, CEMEX is positioned at the convergence of great environmental and social challenges.

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As a producer of cement and concrete, CEMEX faces a twofold challenge:

1. Cement and its end product, concrete, are intrinsically related to human development, with a direct relationship between demand for cement and economic growth. The simple human aspiration for a decent home with basic infrastructure means that significant amounts of concrete will be needed. However, the cement industry is a significant emitter of greenhouse gases, with cement manufacturing accounting for approximately five percent of man-made CO2.2 Therefore, it is our aim to reduce our emissions to the lowest levels that are both technically and economically feasible.

2. We firmly believe that concrete must play a major part in any successful transition towards a sustainable society. Be it the instal-lation of renewable electricity generation, the development of more efficient infrastructure, the building of new roads, or the construction of more sustainable buildings, all of these activities and others need concrete.

Given the importance of the sustainability-related challenges that society is facing, CEMEX has integrated sustainability into its business strategy. With the help of our Sustainability Model, we are incorporating sustainability practices into all of our day-to-day operations and decision-making processes worldwide. Our model ensures that we concentrate our efforts and resources on the issues of highest relevance to our business and greatest concern to our stakeholders.1 Intergovernmental Panel on Climate Change, Climate Change 2007, Fourth Assessment

Report: http://www.ipcc.ch/pdf/assessment-report/ar4/syr/ar4_syr.pdf

2 WBCSD / IEA: Cement Technology Roadmap 2009 – Carbon emissions reductions up to 2050, Geneva / Paris 2009; http://www.iea.org/papers/2009/Cement_Roadmap.pdf

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Manage Our Footprint: CEMEX strives to minimize the ecological impacts of its operations on the communities in which we operate. Such impacts are carefully identified and measured so that we can continuously reduce our footprint to the lowest level that is both technically and economi-cally feasible. We also have a robust pipeline of projects that provide carbon offsets to further reduce our net impact.

Engage Our Stakeholders: CEMEX fosters positive, long-term relationships with key stakeholders to address the pressing needs and concerns of society. With a highly committed and empowered employee base, CEMEX closely collaborates with a broad variety of institutions that allow us to complement our core competences and enable us to generate social benefits that contribute to strengthening local communities.

Enhance Our Value Creation: CEMEX aims to deliver the innovative, high-performing products, services, and solutions that our resource-constrained society requires in order to create a growing and profitable low-carbon economy. By fulfilling the needs of the construc-tion sector in its efforts to adopt more sustainable operating practices, we aim to create long-lasting competitive advantages.

CEMEX’s sustainability modelWe have three main sustainability objectives:

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We have identified seven priorities in our Sustainability Model. The definition of these priorities has followed a structured process of both internal and external consultations where we have measured the impact that the main sustainability issues have on our stakeholders and on CEMEX operations. Our seven priorities aligned to each of our three objectives are the focus of our 2010 Sustainable Development Report:

CEMEX’s

7 sustainability PRIORITIES

Enhance our Value Creation • Lead in Sustainable Construction: Carbon Footprint Tool &

results, CO2-certified products, services and construction solutions, insulator materials and solutions developed

• Low-Income Housing & Infrastructure: Low-income housing programs, improving basic urban and rural infrastructure in the areas where we operate, high-scale infrastructure projects

Manage our Footprint

o Enhance our Carbon Strategy: Projects related to the increased use of alternative fuels and biomass, reduce clinker factor, improve

energy efficiency, carbon compensation schemes and carbon capture projects, optimize logistics efficiency and transportation fuel

usage

o Excellence in Environmental & Biodiversity Management: Projects related to air quality optimization, waste management and recycling,

noise/dust disturbances and water reduction. Biodiversity Action Plans (BAPs) in quarry implementation, conservation and quarry/land

management

Engage our Stakeholders

o High Priority to Health & Safety: CEMEX Safety Leadership Program (LEGACY), Driving and Contractor Safety Management, CEMEX Safety

Awards, Health Essentials, Health & Safety training for our employees, safety training programs for drivers, Occupational Health (e.g.

employee participation in annual medical exams)

o Strengthen Local Communities: Social Programs that help address the pressing needs of local communities, disaster-relief initiatives,

community engagement (local employment), education and training (schools and universities), culture and sports initiatives

o Partnership with Key Stakeholders: Partnerships and memberships with global and local organizations (World Business Council for

Sustainable Development, Birdlife, local associations, etc.), CEMEX as an employer of choice, strengthen employee engagement.

By building strong, long-term r key

stakeholders, we increase our responsiveness to their

needs and concerns, find new ways to reduce our im-

pacts, contribute to sustainable development worldwide,

and make CEMEX a more competitive and profitable

enterprise.

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Our People We aim to be the employer of choice in our markets. We seek to pro- vide the most attractive opportunities for employees’ personal and professional development.

Our Neighbors We are a good neighbor. We participate with communities openly and directly in order to build trust and address their concerns.

Our business Partners We work to be the business partner of choice. We seek to help our suppliers and customers build their businesses and to create endur- ing value for our shareholders.

Our World We are a good global citizen. As a global company, we work to con- tribute to international efforts to address some of the world’s most complex challenges, including climate change, access to housing and community infrastructure, and the conservation of biodiversity.

elationships with our

Scenes from the CEMEX Garden, Al Quoz, DubaiCEMEX , official sponsors of the 2010 Dubai Creek Half Marathon

A Solid Commitment to Safety • We have a target of zero injuries

• We do not accept unsafe working practices

• We expect all employees to ensure zero tolerance of any practices that could result in accidents and ill health

• We expect all employees to contribute to ensuring a safe working environment by taking the necessary measures and following the correct practices

[$1 million USD]

[628]

investment in health and safety initiatives since 2009

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VFL (Visible Felt Leadership) visits

CREATING A CONTINUALLY SAFER, HEALTHIER CEMEX Our commitment to improve the health and safety environment for our people resulted in a reduction of Lost Time Incidents (LTI), and in May 2010 we celebrated 2 years of ZERO LTI. At the same event, we were also awarded for being the most improved readymix operation in terms of Health and Safety in the CEMEX

safety initiatives undertaken during the last two years, these included investments in safety barriers, safety work platforms and walkways throughout the Operations, and water chillers for staff accommodation, among others. These investments have positively supported the Company in reducing our Lost Time Incident Rate.

This initiative is further supported by Visible Felt Leadership visits (VFLs) carried out by both executive management and line management. VFLs involve management engaging with employees specifically in relation to health and safety issues at their place of work. VFLs are about demonstrating commitment in everything we do. Over the course of 2009 and 2010, executive management and line management carried out 628 VFL visits.

EMEA&A Region. Over $1 million USD has been invested in various

CEMEX Grinding Mill, Jebel Ali Safe walkways for pedestrians

DubaiCeremony, Al Quoz, Left: 2 Years Zero LTI

Left: 2 Years Zero LTIAward

Operations receive LTI

Ortiz, President of CEMEX CE&ME

Right: UAE Ready-mix

"T

Award from Ignacio

here are no commercial or operational considerations that are more important than our shared Health & Safety" - Graham Russell, CEO CEMEX in UAE

4A. Our People

CEMEX Legacy (Health and Safety Training)

remains committed to training and safety. CEMEX Legacy Health and Safety training for employees implies an internally developed education programme rolled out across all CEMEX countries. This has played a major role in reducing the Lost Time Incident Rate. Where appropriate, the company retains the services of external assessors to audit and accredit the competencies of our operatives.

Promoting a Healthy Life As part of our efforts to promote a healthy life beyond our

tournament and sponsors the winning team to enter a nationwide championship series.

Board

Jebel Ali

Desert Palm Resort, Dubai, UAECEMEX Cricket Team competing at

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Despite the challenging economic conditions, CEMEX in the UAE

operations, CEMEX in the UAE supports an annual cricket

Jebel Ali

H&S Training at CEMEX Grinding Mill

Healthy Heart (Jan) Your heart works hard for you. It is important that you exercise regularly and eat healthy meals. Smokers, isn’t it time to stop? Look after your heart.

Eat & Drink Wisely (Feb) Look after your Body Mass Index with a balanced diet, full of necessary nutrients. Adopt healthy eating habits and ensure you avoid dehydration by drinking plenty of fluids.

Lung Power (March)

Make sure the air you breathe is free of contaminants. Use the required control measures and respiratory protection.

Watch Your Health (April) Take part in regular health checks that are available. Act on the results to help you have a better lifestyle

Safe Hands (May) Protect your hands. Wear gloves when required. Avoid strain on hands and wrists, set up your workstation correctly, and only use approved vibrating tools.

Protect Your Skin (June)

Take care when exposed to chemicals or sunlight. Practice good hygiene and protect your skin. Cover your head and skin in the sun, and use sun cream.

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Safeguard Your Back (July) Are you sitting comfortably? Is your workstation or driving seat properly adjusted? Assess an object before lifting or moving it. Get help if required.

Vaccines (Aug) Are your vaccinations up-to-date? They can save your life. Remember that when travelling abroad, you may need additional vaccinations.

Drug Awareness (Sep) Drugs & alcohol can impair your judgment and endanger you, your workmates and your family. Don’t let them ruin your life.

Look & Listen (Oct) Our hearing and sight are very important. Protect your hearing in noisy areas. Ensure you wear any necessary vision correction eyewear and make sure you follow workplace requirements.

Prevent Stress (Nov) Be aware of stress and recognise its signs in your life. Seek advice early if needed. Be aware of those around you.

Sleep Well (Dec) Having trouble sleeping? Is fatigue creeping up on you? Ensure your sleep patterns provide sufficient rest.

Health Essentials

Our Health Essentials campaign encourages employees to live a healthy

issue is permanently in the minds of our employees. It is just one of a lifestyle inside and outside the workplace. Its monthly focus ensures this

number of global campaigns run to improve Health & Safety.

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As an example of the actions we perform for the benefit of our community, for the second consecutive year CEMEX parti-cipated in the “Clean up the World” campaign in Dubai. This campaign is supported by UNEP (United Nations Environment Programme). As part of this campaign CEMEX provided a shovel, two tippers as well as CEMEX volunteers to help clean up waste and debris in the Al Ghaddaf area of Dubai.

recognized as a good neighbor and an active and positive part of our community. To meet this objective, and move closer to our vision of building a smart world together with our stakeholders, we seek to minimize our local impacts, develop strong long-term relationships with local community members, and contribute to socio-economic development where we have operations.

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Clean up the Worldn up the World www.cleanuptheworld.org

CEMEX participants in Dubai Clean up the World 2010

Cemex CEMEX cleans up the Al Ghaddaf area of Dubai

4B. Our Neighbors

At CEMEX, we continually work to be

Our objective is to be the building materials supplier and partner of choice. Working to achieve this, we provide high quality, competitive and innovative products which contribute to the development of our society. Our products support the construction of hospitals, houses, schools, offices and the infrastructure which enables society to function while at the same time meeting the growing requirements of the low carbon economy. We cannot achieve our objective alone and we work to achieve it by seeking to collaborate with our business partners throughout our value chain and at every opportunity, including suppliers, contractors, distributors and customers.

Sustainable Construction

Sustainable construction offers opportunities for our industry and we are committed to offer the best solutions to the market. CEMEX has a complete range of products that architects can consider to design sustainable buildings.

The CEMEX portfolio of products can contribute significantly in gaining credits for green building rating systems (e.g. Estidama, LEED, BREEAM). Similarly, with our Grinding Mill producing low carbon

st Furnace Slag), we are uniquely positioned to supply sustainable solutions to any project.

We believe that concrete is the optimal building material for hot desert climates, due to its superior performance in managing the thermal efficiency of buildings. As well, lightly coloured concrete is effective in reducing the build-up of heat in urban areas (e.g. Urban Heat-Island effect).

Emirates Green Building Council

We are members of the EGBC, whose goal is to advance green building principles for protection of the environment and ensure sustainability in the UAE.

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Sustainable Supply Chain Management: A Continuous Process For CEMEX, supply chain responsibility means building positive relationships with suppliers and promoting sustainability.

We aim to raise levels of responsibility in our supply chain by selecting suppliers with properly managed safety policies, labour standards and environmental performance. We also support local partners to increase their skills, grow their businesses and become more sustainable. Raw materials are sourced from local suppliers, thereby reducing our transportation CO2 footprint.

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personnel

n Sustainable products and services

Measure a wider group of suppliers n

Establish the sustainable policy n for suppliers

supply commitments to internal personnel

n This process is continuous

n Continue searching for sustainable suppliers, products and services

n Focus on Procurement and Corporate functions Increment the communication strategy n

Broaden group of potential suppliers n

Exploit the Innovation Program for suppliers nn Require from suppliers what our customers

require from CEMEX

Consider various areas when dealing with suppliers nn Concentrate on a selected group of suppliers

n Suppliers Sustainability program aligned Reinforce sustainability in the n

4C. Our Business Partners

alternatives such as ECO CEM 3 and GGBS (Ground Granulated Bla

As a global company and citizen, we at CEMEX understand and have embraced our responsibility to address some of society’s largest and most complex challenges, including climate change. These require continuous and consistent engagement with civil society, environmental groups, governments and regulators, academic institutions, and the media. We listen to the concerns of stakeholders around the world to ensure that we are meeting new sustainability challenges as they arise.

CEMEX has a well-established network for R&D, with centers in Switzerland, UK, USA, Spain and Mexico.

Country operations work together to generate new strategic projects addressing local market sustainable requirements and use the R&D centres to fast-track developments.

CEMEX’s R&D Centres pioneered the use of low carbon cements and low carbon concrete for the CEMEX sale offer in the UAE. Continued research and development through our technical and admixture divisions means that we can bring new product innovations and improved concrete technologies ot our markets. These include a range of structural floor screeds, ECO Self Compacting Concrete and concrete specially developed for fast-track construction.

One of the major markets of CEMEX is Mexico. In Oaxaca, in the south of the country, CEMEX pioneered the development of a UN CDM (Clean Development Mechanism) project. The Eurus Wind Farm has a capacity of 250 MW, making it Latin America’s largest wind power generator. It could power a city of half a million people, reducing emissions by 600,000 tons per year. CEMEX is the promoter of the project, which was developed by a joint venture between CEMEX and ACCIONA. One part of the energy generated by EURUS supplies approximately 25% of CEMEX’s energy needs for its Mexican cement plants.

4D. Our World

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for environment and OHSAS 18001 for Health and Safety. Our manual is the core document which forms the basis for the integrated environmental management system of each CEMEX operation. The environmental policy aims to ensure continuous improvement of overall environmental performance and sets out detailed company objectives in relation to environmental management and performance.

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It enables an organization to have control over, and knowledge of, all relevant hazards resulting from normal operations and abnormal situations, and to improve its performance.

supported by our top management through our Occupational Health, Safety and Environmental Policy. ISO 14001 is part of a series of internationally recognised environmental management system standards. Based on the Plan-Do-Check-Act cycle, ISO 14001 specifies the most important requirements to identify control and monitor the environmental aspects of the organisation; and how to manage and improve the whole system. .

ISO 9001:2008 provides a set of standardised requirements for a quality management system, represented in an international consensus on good quality management practices. It consists of standards and guidelines relating to quality management systems and related supporting standards. OHSAS 18001/2007 is an international standard giving requirements related to Health & Safety Management Systems.

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CEMEX in the UAE’s QHSE (Quality, Health, Safety & Environmental) Manual is certified by the three International Standards: ISO9001 for quality, ISO 14001

The OHSAS 18001 system in CEMEX in the UAE is fully

In 2010, CEMEX introduced a carbon footprint tool. The first of its kind in the building materials industry, it is certified in accordance with international protocols by Det Norske Veritas (DNV), one of the world’s leading independent certification entities. The tool measures emissions from “cradle-to-gate”—from raw material sourcing to the release of the finished product at the factory gate—which allows CEMEX to track the greenhouse gas emissions of all of its cement, ready-mix concrete, and aggregates products.

We developed the carbon footprint methodology with the following objectives:

n Quantify and communicate the CO2e emissions from the produc-tion of our products to help our customers calculate the footprint of their projects.

n Perform a benchmark of company facilities with the goal of con-tinually reducing our CO2 footprint.

n Collaborate with our clients in the design phase of their proj-ects and in the selection of materials that will help reduce CO2 emissions.

The tool has already been implemented at 629 CEMEX cement, ready-mix concrete, and aggregates sites, corresponding to 58 percent of total production. During 2011, CEMEX will begin publishing product specific carbon content for its products in selected operations, in a rollout schedule that will be driven by market requirements.

New CO2 footprint tool measures greenhouse gas emissions of our building materials

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Conveyors and storage silos at CEMEX Cement Grinding Mill in Jebel Ali, Dubai

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Several activities are carried out during the year to share experiences and promote better communications. As an example, the sustainability awareness campaign is aimed at increasing awareness amongst our employees about how their actions can impact the environment. The campaign is focused on saving water and energy; and to recycle, re-use and reduce waste, such as paper, glass and plastic. The campaign starts with the Sustainability Awareness and the Health & Safety in-house training provided to all employees, including new recruits. To reinforce the personnel training, the campaign is systematically promoted by electronic means and through dedicated notice boards, called “Greenpoints”. These are strategically located in all our facilities and periodically

Electronic CampaignsLeft: CEMEX Plaza (intranet)Below: www.CEMEX.com (internet)

Sustainability Notice BoardSupermix Ready-mix PlantAbu Dhabi

Sustainability Awareness TrainingCEMEX Grinding Mill, Jebel Ali

updated.

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In 2010, we conducted an internal awareness survey to assess the effectiveness of the Campaign. The results of the survey were positive; showing the commitment of CEMEX employees to Sustainability not only inside the workplace, but outside as well.

Sustainability Notice Boa rdrd Al Quoz Readymix Plant

Sustainability Awareness Training

Al Quoz, Dubai

Dubai

Sustainability Notice Board Citimix Readymix Plant Abu Dhabi

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CEMEX in the UAE Head Office

CEMEX i n th e UAE Internal Survey

Awareness Campaign Posters

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CEMEX took an active role both behind the scenes and on stage at COP 16 (the sixteenth Conference of the Parties to the United Nations Framework Convention on Climate Change) held in Cancun, Mexico November 29 through December 10, 2010.

CEMEX hosted a series of events that showcased the com-pany’s own efforts at reducing GHG emissions and pro-tecting biodiversity and also demonstrated the significant role ready-mix concrete can play in a low-carbon world. At the Green Solutions Expo, CEMEX used an innovative interactive platform to present “concrete solutions” for the prototype low carbon footprint city of the future, including ready-mix concrete applications in urban design, mobility, clean energy, and efficient buildings. The Climate Change Village provided a space for public participation and col-laboration at COP16 through conferences, exhibits, and cultural events.

In addition, CEMEX’s Vice President of Energy and Sustain-ability participated in the meeting’s plenary sessions—the first time that private sector representatives were included.

Off-stage, CEMEX sponsorship helped to offset the confer-ence’s carbon emissions and support the Mexico-based SEMARNAT Environmental Leadership for Competitiveness Program. The offsetting of 10,000 tons of CO2 emissions, equivalent to approximately 25% of the conference’s total emissions, is being completed through the reforestation and maintenance of 1,300 hectares of land in Oaxaca, Mexico. The funds donated to the Environmental Leader-ship and Competitiveness Program will provide resources to small and medium-size companies to help them imple-ment environmentally responsible practices.

CEMEX plays a leadership role at COP 16

Top: Round-table “Key Challenges for Construction in the 21st Century-Open Dialogue with Experts on Sustainable Construc-tion,” hosted by CEMEX and the World Green Building Council

Bottom left: Cristina Mittermeier, Executive Director of the International League of Conservation Photographers (ILCP) at the Conservation Book Presentation “Fresh Water: The Essence of Life”

Bottom right: Sustainable concrete products in display at the CEMEX stand at the Climate Change Village

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To assure our sustainability objectives we systematically measure the impact of our activities through Key Performance Indicators (KPI’s) specific to this purpose. Constant monitoring of the KPI data allows us to ensure we are achieving the high standards we have set ourselves and, at the same time, provides us with the opportunity to address areas which need improvement. KPI’s are regularly reviewed and we use the process to drive forward our determination to improve performance standards. Energy efficient consumption and water preservation is one of the main focuses of our Sustainability campaign. We have been able to decrease the consumption levels of electricity, fuel and water, through an increased focus on consumption control. Despite the good results, we maintain our commitment to continue looking for improvements.

Key Environmental Aspects at all CEMEX operations

1. Visual Amenity and Housekeeping 2. Noise/Vibration and Dust Emissions 3. Water conservation 4. Energy saving 5. Waste Management

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To continue preserving the environment surrounding our cement production facilities in Jebel Ali, we have considerably reduced the dust emission’s coming from our grinding mill to levels way below international standards. We have done this through the installation of an opacimeter to measure emissions, and subsequent on going control.

Other Environmental Indicators 2009 2010

% of production sites covered by CEMEX Carbon Footprint Tool 100% 100% % operations with water recycling systems 60% 60% % cement operations with water recycling systems 100% 100% % ready-mix operations with water recycling systems 50% 50% % from total of water recycled and re-used 1% 2% % from cement operations total of water recycled and re-used 15% 20% % from ready-mix operations total of water recycled and re-used n/a 5%

Total Volume of water recycled and re-used (cubic metres) 4,436 12,654

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Throughout our campaign we have encouraged the substitution of paper with electronic means, plus the recycling and re-use of paper sheets. In 2010 we recycled the equivalent of 80 trees in paper for improvements.

*Awarded to Al Quoz office; all UAEoperations combined to save 80 trees

Communication Technology to reduce CO2

As part of a global company which engages in a constant cross-border dialogue, we have invested in communication technologies (video conferencing equipment) to facilitate multi-country meetings. This endeavour reduces the amount of travel required and positively produces a direct impact on our carbon emissions. In 2010, we saved 264,000kgs of CO2.

264,000

KGs of CO2 saved in 2010

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Economic Indicators

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90%

% of spending on local suppliers

Other Economic Indicators 2009 2010 % of spending on locally-based suppliers 65% 90%

Social Indicators 2009 2010 Fatality Rate (per 1,000 employees) 0 0

% sickness absence rate (annual average) 5% 2% Total number of lost days due to sickness 612 317 Lost Time Injury Frequency Rate 5% 7% Number of employees 889 720 % of employees with full-time permanent contracts 100% 100% % of employees receiving career development reviews 4% 5% % of employees receiving performance reviews 12% 18% Average hours of training per employee per year 2 3 Number of Nationalities Represented 18 18 % Employees aged 0 - 30 years 20% 18% % Employees aged 31 - 45 years 57% 55% % Employees aged 46 - 54 years 19% 23% % Employees aged 55 years and above 4% 4%

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Nationalities at CEMEX in the UAE

8. About this Report

in the UAE only, presenting our sustainability performance, progress, achievements, and challenges for the 2009 – 2010 calendar (and fiscal) years. Going forward, we will produce a Sustainable Development Report for the business unit on an annual basis. In this report we are including information for the operations in which we have financial and operative control. If a plant is sold, its information is no longer included in our data nor considered in our targets. We have restated certain data sets from previous years because of improvements to our data-collection systems or changes to our business; each case is clearly marked. All monetary amounts are reported in US dollars. Tons are metric tons. The information for this report came from several sources, including internal management systems and performance databases. For the purpose of this report, the Environmental KPI’s reported, have been calculated based on a moving average, this gives a better indication of overall performance for the period covered. Global Reporting Initiative We applied the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines to produce this report. We provide a GRI index on our website at: www.cemex.com/sustainability. “The Guidance on Defining Report Content” and its associated Principles were applied through following the CEMEX Stakeholder Model. The table below represents the standard disclosures required under the GRI guidelines.

Standard Disclosures Section

Strategy and Analysis

Organizational Profile

Report Parameters Section 8: About this Report

Governance, Commitments, and Engagement CEMEX Sustainability Vision and Model Section 6: Communications and Awareness Initiatives

Disclosure of Management Approach Per Category

Core Performance Indicators Section 7: Key Performance Indicators (KPI)

Any GRI Additional Indicators included n/a

Any GRI Sector Supplement Indicators included in the report n/a

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This report is the first Sustainable Development Report to be produced by CEMEX in the UAE. It covers our cement and ready-mix concrete operations

Section 1: Message from the Managing Director

Section 2: About CEMEX in the UAE

Section 2: About CEMEX in the UAE; Section 3:

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PO BOX 37900

DUBAI, UAE Tel. +971 (0)4 3470427 / 477

info.dubai@cemex.com www.cemex.com

CEMEX in t h e UAE Regional Office

SOME OF OUR LOCAL AND GLOBAL PARTNERS: