SUSTAINABILITY REPORT - Graymont
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About Graymont REPORT SCOPE Graymont is a global leader in lime and limestone solutions. Headquartered in Canada, it serves markets GRAYMONT’S MISSION Improving our world The 2020 Sustainability Report summarizes the throughout North America and Asia Pacific. Graymont is sustainability performance of Graymont and its also the strategic partner of Mexican-based Grupo Calidra, by responsibly meeting subsidiaries, including recently acquired lime operations the largest lime producer in Latin America. Professionally in Asia Pacific. The Company’s global lime and limestone managed and family owned, our Company has been in society’s needs for operations constitute the largest portion of its economic, operation for more than 70 years. Graymont aims to be environmental, and social impacts. In this report, data and the preferred supplier, employer, and partner of choice quality lime and information contained in the Environmental Care section wherever it operates. relate primarily to the lime operations. Historical data and Our products are essential in addressing many of today’s limestone products. information in the Workforce Culture and Community most pressing environmental issues, while supporting vital Relations sections relate to all operations, including the industrial processes and agricultural needs. Applications Materials Group prior to its divestment in mid-2017. include the purification of air and water, and the Discussion, data and information contained herein relate, production of an array of items and materials essential with noted exceptions, to the 2020 calendar year. Historical to a modern economy, such as paper, glass, steel and data is provided, again with noted exceptions, for the years assorted other metals. 2016 through 2020 and includes references to the year 2004, which has been established as the baseline. The 2021 report is scheduled for publication in April 2022. WHAT WE VALUE OUR VISION Our success requires both individual effort and teamwork in World Class in everything we do! accordance with our shared Graymont values. Safety Integrity We operate safe, clean and orderly facilities where We always do the right thing. everyone shares a strong commitment to an injury-free workplace. Respect Customers TABLE OF CONTENT We respect: - the right of every individual to a safe workplace; We are committed to exceeding our customers’ needs - the cultures, customs and values of all people; by reliably delivering quality products and services. 01 26 - the sustainability objectives of society; and About Graymont Community Relations Communities - our shareholders’ capital. We proactively develop and maintain relationships of 04 34 Teamwork mutual support with our neighbours and others for the A Message From the CEO Sustainability Effective teams can better solve complex problems. long-term success of Graymont and our communities. Performance Data 06 Innovation Environment Corporate Governance 38 There is always a better way to do things. We are dedicated to improving our environmental Graymont 2020 Sustainability Report performance. and Accountability Graymont in Excellence North America Whatever we do, we strive to do it well. Value Creation 08 We continuously optimize our processes and activities Workforce Culture 38 Long-Term Perspective to deliver increased value to all stakeholders. Graymont in Asia Pacific We take a long-term perspective around decisions. 20 People Environmental Care 40 Accountability We honor our commitments. We have developed a talented team of engaged Glossary and and empowered individuals, collaborating to deliver Abbreviations world-class performance. 1
What We Do Lime, Graymont’s main product, is a versatile industrial solution that has long been indispensable for vital industrial processes and applications. More recently, lime has also become an essential solution for addressing a myriad of complex environmental issues and challenges, TYPICAL QUICKLIME both naturally occurring and man-made. AND HYDRATED LIME The word “lime” refers to products derived from burnt APPLICATIONS Hydrated lime Ca(OH)2 (calcined) limestone. Limestone is a naturally occurring Mining: including soda ash, copper, and abundant sedimentary rock, comprised of high zinc, nickel, gold, uranium levels of calcium and/or magnesium carbonate and/or H2O Industry: steel, alumina, glass, pulp and dolomite (calcium and magnesium carbonate), along with small amounts of other minerals. It is extracted paper and oil and gas production from quarries and underground mines all over the world. Agriculture: soil pH, soil conditions Heat improvement, dairy and poultry feeding Once extracted, the stone goes through a crushing and supplements screening process to create the proper sizes required for various applications. The stone is then fed to a kiln, Food production and conservation: where it is heated at high temperature. The intense sugar, produce, dairy, glue and gelatin, heat triggers the chemical reaction that transforms baking industry limestone into lime. Lime can be used at this stage, Construction: mortar, plastering, where it’s called “quicklime,” or water can be added restoration, whitewash, soil stabilization to produce “hydrated lime.” and asphalt treatment Environment: acid rain reduction, environment rehabilitation, water and Quicklime CaO sewage treatment, animal waste treatment, flue gas treatment, industrial sludge and petroleum waste treatment, acidic drainage treatment Heat CO2 Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report Lime Production Process Limestone CaCO3 2 3
A Message From the CEO Over the course of nearly a decade as Graymont’s CEO, I have observed on With respect to the environment, Graymont aims to Notwithstanding the success stories I alluded to above, consistently meet or exceed its regulatory and permit it is clear when we look back at 2020 that, despite our numerous occasions how fortunate obligations, while working proactively to minimize the best efforts, Graymont was not totally immune from the I am to lead such an outstanding environmental impacts of its operations. The benefits negative impact of the pandemic. With non-essential organization. That sentiment was of our comprehensive, systems-based approach were industrial and commercial activities the world over either reinforced as I looked back at the reflected in a 12% reduction in total environmental significantly slowed or, in many cases, halted altogether, unprecedented events of 2020, when we incidents in 2020 — marking the fourth successive year demand for lime slumped in concert with the broader of improved performance. economy. Our sales decreased precipitously in the spring found ourselves in uncharted waters, of 2020, before trending upward on a path of steady but grappling with a global pandemic that Nevertheless, the lime industry, along with steel, cement gradual recovery that extended into early 2021. Acting literally threatened lives and livelihoods, and others, remains a significant source of greenhouse gas responsibly, our Company responded to the prevailing and tested the limits of our resources (GHG) carbon emissions. Consequently, tackling climate economic and market uncertainty by implementing cash change will continue to be among the greatest challenges and resolve. we face in the foreseeable future. We are determined conservation and cost reduction measures and putting a number of potential capital investments on hold, while Given the essential nature of Graymont’s business — lime to work with governments, customers, suppliers, industry exercising tighter control and closer scrutiny has long been regarded as indispensable for vital industrial associations and our host communities in the global of on-going projects. processes and, more recently, has come to the fore as transition to a low carbon economy. a key element for addressing complex environmental That said, work on all required safety and environment- At Graymont, we also pride ourselves on working hard related initiatives proceeded apace during 2020, and we challenges — we were compelled on short notice to find to build bridges and engage in a meaningful way with moved forward with the realization of several major innovative solutions that would enable us to keep our the communities where we are present — including with strategic investments, including the Rexton expansion facilities up and running and maintain crucial supply First Nations, Aboriginal and Indigenous peoples. Needless project in Michigan’s Upper Peninsula, and the pending chains to our customers, many of whom are also deemed to say, the strict anti-COVID measures adopted across restart of the Charbon lime plant and Excelsior Quarry in essential. our operations in 2020 inhibited our ability to stage the New South Wales, Australia. Meanwhile, we continued with Our Graymont teams at sites across North America and usual ambitious agenda of collaborative community the successful integration of Asia Pacific assets — in Asia Pacific rose to the occasion. Leveraging a powerful events. However, to their credit, many sites responded Eastern Australia, the Philippines and Malaysia — acquired Stéphane Godin by redirecting their efforts to pandemic-related initiatives President and Chief Executive Officer combination of talent and tenacity, they managed to from the Belgium-based Sibelco group in late 2019. designed to enhance the quality of life for some of the Graymont largely keep the coronavirus at bay — there were no major outbreaks at any of our facilities — while maintaining most vulnerable members of their communities, while In conclusion, I would like to salute the remarkable men our plants operations at near-normal levels and avoiding respecting social distancing. You can learn more about and women who showed up for work day in and day out major disruption to supply chains. those endeavours in the Community Relations section at Graymont facilities across our global network in 2020, of this report. often in difficult circumstances. It is primarily due to their Furthermore, we managed to turn in Graymont’s best- efforts that we were able to not simply carry on in the face ever safety performance, bucking an industry trend that Looking ahead, a new area of focus that is a priority of the pandemic, but to deliver a solid all-round saw safety at many mining and materials producers for me and the rest of Graymont’s senior leaders is the performance. It would be remiss of me not to acknowledge negatively impacted during the pandemic. This is quite an issue of equity, diversity and inclusion (EDI). This topic has as well the hard work and dedication of fellow members achievement! I invite you to examine our exemplary become increasingly relevant in today’s workplace, of our senior management team. Finally, I am grateful safety record in more detail by turning to Page 8. particularly for companies like Graymont that have global for the unwavering support of our shareholders, who take footprints. We have broadened our thinking on this topic, a long-term approach to business — and embrace our Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report This 2020 Sustainability Report chronicles some from a narrower lens looking solely at gender diversity, aim to become the world-class leader of our industry of the noteworthy challenges and achievements that to considering diversity in all its forms and ensuring equity and make Graymont the preferred supplier, employer, characterized a year like no other, as we continued and inclusion are key pillars along with diversity. I encourage and partner of choice wherever in the world we operate. striving to attain world-class performance in all aspects you to read more about our recently launched diversity of Graymont’s operations. agenda in the Employee Engagement section. 4 5
Corporate Governance and Accountability CODE OF BUSINESS CONDUCT AND ETHICS Central to Graymont’s corporate Strategic Leadership Team A Responsibility Shared by All Graymont’s commitment to operating with integrity and according to the highest ethical standards is an integral philosophy is a long-term approach to The Board, in turn, holds management – in particular In summary, from an organizational perspective, part of the foundation on which we are building a business, built on a solid commitment the SLT – accountable for the responsible day-to-day accountability for sustainable development rests with world-class organization. Our Code of Business Conduct to sustainable growth and strict adherence conduct of the business. focused management and leadership at the local, regional and Ethics sets out the standards that all Graymont to responsible environmental, workplace and corporate levels while encompassing our employees, officers and directors must adhere to. Led by the President and Chief Executive Officer (CEO), One Graymont culture. Graymont utilizes an annual and operating practices. This philosophy the SLT also includes the Vice President and Chief Financial In addition, Graymont maintains an Ethics Reporting performance-review process that is integrated at all levels is evident in actions taken at every level of Officer; the President of Graymont’s Asia Pacific operations; of management, to ensure goals are set in accordance with System, managed by an independent third-party provider, the company, from the Board of Directors the Vice President, North America Operations; the Vice corporate strategy and that we move forward and drive which allows employees to report alleged violations of the and the Strategic Leadership Team (SLT) President General Counsel and Corporate Secretary; as well continuous improvement. However, the Company’s strong Code on an anonymous and confidential basis. as the Vice Presidents for Sales and Marketing; Human to managers, supervisors and front-line commitment to corporate social responsibility transcends Graymont’s Code of Business Conduct and Ethics is Resources and Corporate Services; Corporate Affairs, divisional, departmental and hierarchical boundaries. employees throughout the organization. Environment and Sustainability; and Business Development available on our website: www.graymont.com/en/about- There is a fundamental expectation within Graymont that and Technical Services. us/mission-vision-values all employees share in the responsibility for developing Board Oversight and maintaining a sustainable organization. The responsibilities of the SLT also extend to the The fundamental objective of Graymont’s Board of development and implementation of a broad strategy that ABORIGINAL, FIRST NATIONS Directors is to create shareholder value. To that end, the reflects Graymont’s world-class vision. The strategy aims AND INDIGENOUS PEOPLES to drive continuous improvement in six vital areas: Board recognizes that, in addition to delivering sustained profitability, the Company must maintain a high level of POLICY health-and-safety, environmental and social Graymont recognizes that collaboration with First Nations, performance. Aboriginal and Indigenous communities is essential for the realization of our mission and world-class vision. We strive In accordance with that underlying objective, and in COMMUNITIES to build and maintain effective long-term relationships keeping with the Board’s governance responsibilities, six based on trust and respect that are mutually beneficial. permanent Board Committees oversee specific aspects Our Aboriginal, First Nations and Indigenous Peoples SAFETY of the business considered crucial to Graymont’s Policy sets out the guiding principles of this commitment long-term viability. They include the Environment, and outlines focus areas for mutual value-creation Health, Safety and Community Engagement (EHSCE) Committee; the Employee Retirement and Health Benefits Committee; the Talent and Compensation CUSTOMERS opportunities. Graymont’s Aboriginal, First Nations and Indigenous Committee; the Resources and Reserves Committee; the Audit and Finance Committee and the Legal and Risk ENVIRONMENT Peoples Policy is available on our website: www.graymont. com/en/sustainability/aboriginal-first-nations-and- VALUE CREATION Management Committee. The EHSCE Committee, whose indigenous-peoples-policy function is most relevant to this report, exercises due diligence by closely monitoring performance in those four PEOPLE Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report vital areas and reporting back to the full Board on its activities and observations. 6 7
Workforce Culture Graymont’s intense focus on workforce Pandemic Puts Safety Practices culture — particularly with respect to to the Test health and safety — demonstrated its true That commitment was put to the test early in 2020, worth in 2020, facilitating an all-out team as the first wave of the global pandemic began to batter effort that enabled us to significantly populations and economies in various regions of the world mitigate the impact of COVID-19 on where Graymont operates. Graymont’s people and operations. Because lime is deemed an essential industry, Graymont’s operations remained open throughout the course of As Graymont has grown and evolved into the year. This necessitated putting in place numerous a global industry leader, we have never measures designed to protect the health of employees and Nevertheless, Graymont took all necessary precautions been shy to credit our success in large their families, while assuring the continuity of operations to prevent the spread to other employees, while part to the efforts of the remarkable men and maintaining critical supply chains to customers. supporting COVID-19-positive employees and their families and women — now numbering 1,576 to ensure they had access to appropriate healthcare that — who bring their skills and energy to would help facilitate their speedy and complete recovery. THE COVID-RELATED MEASURES As vaccines become more available in 2021, Graymont work every day at offices and plant sites AND PROTOCOLS ADOPTED INCLUDED: is committed to making certain they will be accessible across North America and Asia Pacific. In to all employees at no cost. Establishment of a COVID-19 Taskforce and return, the Company strives to provide complementary cells to constantly monitor competitive wages and benefits, a safe, the situation and lead the response as required Outstanding Performance Belies Impact healthy work environment, and ample Creation of a COVID-19 Resources Hub that enables of COVID-19 opportunities for employees to grow employees to access relevant information, tools Given the COVID-related disruptions and distractions and develop in order to achieve their full and guidelines that arguably made 2020 a year like no other, it should potential. Arrangements for employees to work from home come as no surprise that the safety performance of the whenever possible mining industry, including the lime sector, was negatively SAFETY A stipulation that employees who must work impacted by these events. For instance, the U.S.-based National Lime Association (NLA) reported a sharp uptick in from a Graymont facility adhere to enhanced Health and safety are core Graymont values — essential personal-hygiene and cleaning practices and the overall “incident rate.” to realizing our vision of being world-class in everything observe social distancing Against that backdrop, Graymont is particularly pleased we do. Nothing is more important than ensuring that our Implementation of formal protocols for reporting to have bucked the trend and achieved significant co-workers return home safely to their families and loved COVID-19 symptoms, and determining if and when improvements in two of its KPIs for 2020 — the Graymont ones at the end of the day. Hence our commitment to creating and sustaining a robust, safety-first culture, where employees should not come to work Graymont took all Reportable Incident Rate (GRIR) and the Graymont Severity Rate (GSR). We attained our best-ever GRIR everyone is committed to reaching the ultimate goal of zero injuries. Introduction of thorough site-screening procedures necessary precautions at 1.73, and our second-best GSR at 18.4. The Graymont Lost Time Incident Rate (GLTIR), although not at a record to prevent the spread Adoption of staggered work schedules and the establishment of isolated work stations for certain low, is below the previous five-year average, indicating Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report progress nonetheless. to other employees strategic functions Limiting in-person meetings to demonstrably This exceptional performance in an extraordinarily difficult critical tasks environment attests to the dedication and determination Despite those measures, a number of employees did test of our employees to keep their workplaces safe, as well Placing strict limitations and, in some regions, positive for COVID-19, with most of the cases attributed to as to the Company’s proactive management of the an outright ban on air travel community transmission as determined by contact tracing. COVID-19 threat. 8 9
Nothing is more important than ensuring that our co-workers CONTRACTORS return home safely We have historically captured contractor and carrier incidents, good catches, near misses, and injuries/illnesses in our safety incident reporting system. During 2020, we have started extracting these numbers on a monthly, quarterly and annual basis and reporting them to the SAFETY SCORECARD Board of Directors. The majority of contractors/carrier employees are not directly supervised by Graymont and 1.73 we do not have access to their hours worked, therefore we are reporting the raw numbers of good catches, near misses, and injuries/illnesses that occur. This heightened level of attention and transparency enhances our focus REPORTABLE on managing contractor risks. To that end, in 2021 we are INCIDENT RATE undertaking a contractor management project that will, (The benchmark 2020 US metal/non- in its first phase, standardize contractor, carrier and visitor metal mining industry average was 1.67.) site inductions and provide a platform with which to deliver and track this training via e-learning. 0.92 LOST-TIME INCIDENT RATE Graymont Safety Performance (The benchmark 2020 US metal/non- 4.0 80 metal mining industry average was 0.72.) 70 18.4 SEVERITY RATE 3.0 60 50 Graymont Lost Time Incident Rate Graymont Reportable Incident Rate (A measure of lost and restricted 2.0 40 US M/NM Annual National Lime days per reportable incident.) Industry Average Association Incident (GRI rate) Rate 30 Incident Rates Severity Rate 1.0 20 US M/NM Annual Graymont Industry Average Severity Rate 10 (LTI rate) 0.0 0 Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report 2016 2017 2018 2019 2020 10 11
Safety Culture Project The Safety Culture Project, a major initiative that focuses on the area of human behavior to help instill a robust safety culture, gained further traction in 2020. It is widely believed that a behavioral approach holds the key to the next “step change” advance in workplace safety. Simply put, because all human behavior is learned, “risky” behaviors can be unlearned and replaced by new, more desirable behaviors. To that end, Graymont aims to nurture a culture of stewardship and mutual consideration, where the main driver of behavior is the employees’ wish to stay safe as a team and look out for one another. In that type Near Misses and Good Catches of environment, employees are motivated to operate in a safe manner and avoid undue risks, not because the rules In 2020, Graymont operations continued to focus on During 2020, behavior-related events accounted for some Uniform Standards Help Drive Continuous and regulations say they must, but rather because they advancing safety-culture maturity. Central to these efforts 6,400 — or more than 40% — of the approximately 15,000 Improvement Organization-Wide care about one another’s well-being: it is essentially is a program that entails encouraging people reported near misses/good catches. That equates to a case of “we’ve got your back.” to jointly report occurrences that we dub “near misses” roughly twice the number of behavior-related occurrences With a view to further enhancing safety performance, and “good catches.” A good catch is a situation involving reported in 2019, when we launched this initiative. Graymont has adopted a multidisciplinary strategy that a potential hazard that is identified and resolved prior stresses the value of teamwork and cross-functional The safety culture improvement work continued in 2020, to causing injury to a worker, while a near miss is an A sustained upward trend in the reporting of such events collaboration to achieve continuous improvement albeit scaled back due to the inability to travel and visit incident that resulted in no harm to a worker. Tracking illustrates that our safety culture continues to gain throughout the Company, in keeping with our sites. Most notably, the Pleasant Gap facility introduced these occurrences, which may be attributed to conditions traction, and that Graymont employees understand One Graymont culture. a composite safety score that includes leading indicator in the workplace and/or employee behaviour, helps us and appreciate the value of accident prevention. measurements for all levels, including front line To that end, a set of uniform health-and-safety standards identify opportunities for improvement before someone employees. This has allowed for a more objective criteria Rather than being disciplined or exposed to other negative has been developed and successfully embedded at gets injured. for positive recognition and behavior interventions. responses, employees are encouraged to come forward Graymont facilities in North America and New Zealand The Pleasant Gap management team has also continued Historically, the majority of near misses and good catches as teams in order to learn from the occurrences and receive over the past several years. The year 2020 saw their formal interactions program whereby members have been linked to unsafe, or potentially unsafe, work positive reinforcement. Going forward, there is every implementation of those comprehensive standards of the management team strike up conversations with conditions — for instance, a machine guard that needs indication to believe this approach will prove effective get under way at recently acquired facilities elsewhere employees working on various tasks. These discussions repairing or a housekeeping issue. Recognizing that most in helping us identify systemic practices where further in Asia Pacific, namely in Australia, Malaysia and the offer opportunities for positive reinforcement and injuries also involve some element of behavior in the risk-control is required. Philippines. A first phase of implementation, focused employees’ responses are rated on the safety culture causal pattern, we wanted to have a sharper focus on on the six highest-risk standards, is complete. maturity scale from counterproductive to citizenship. instances of inappropriate or unsafe behavior. The implementation is on-going, with the objective In an era where it is not feasible to conduct on-site audits of having all standards fully implemented by of safety culture maturity, this is a grass roots effort at the Pleasant Gap facility to not only create a leading NEAR MISSES AND GOOD CATCHES Graymont aims mid-year 2021. metric that shows shifts in overall safety maturity but also helps develop leadership skills and increase interactions 16,000 to nurture a culture Due to travel restrictions stemming from COVID-19, Graymont’s Asia Pacific Health and Safety (H&S) teams of stewardship and specific to safety culture and behaviors. In 2021, we will 14,000 found themselves having to rely on virtual training and roll out a Safety Interaction Tracking System that will best-practices sharing sessions to help keep the standards 12,000 allow us to scale up this approach across the organization, including Asia Pacific. 10,000 mutual consideration implementation on track. Fortunately, however, the Company’s H&S specialists demonstrated their penchant for innovation with the timely development Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report 8,000 of e-learning modules for each of the standards — tools that will prove especially useful to support and facilitate 6,000 H&S training in a social-distancing environment. 4,000 2,000 0 2016 2017 2018 2019 2020 12 Near misses Good catches 13
H&S Internal Audit SCIENCE-BASED APPROACH During 2020, we commenced the third cycle of our TO PHYSICAL DEMANDS comprehensive H&S Internal Audit program, which verifies Another noteworthy initiative launched in 2019 compliance with more than 400 different requirements and continued through 2020 involved partnering at each of our facilities. The audit exercise is intended to with a specialized professional ergonomist be constructive and aims to ensure conformance while to identify and assess the most physically providing opportunities for the respective sites to learn demanding jobs at Graymont’s U.S. facilities. from one another and share good practices. The objective is to gain a better understanding of the physical demands of each position, Here again, our approach had to be adapted to comply to help ensure that we hire personnel with with COVID-related travel restrictions that prevented the appropriate physical capabilities in order teams of auditors from visiting most sites in person. to reduce the risks of injury. Consequently, we developed a process that enables us to conduct virtual health-and-safety audits, albeit Additionally, this process has helped us somewhat limited in scope. Virtual audits focused identify opportunities for improvement with primarily on documentation review were successfully respect to reducing the physical demands of carried out at four of the Company’s production facilities certain positions, either by improving the work over the course of the year. While there remains room Building on the Success of Legacy Safety Be Safe – Play It Smart environment or work techniques. Graymont for improvement with the process, we now have the tools Programs plans on extending the reach and scope The Be Safe – Play it Smart poster campaign, designed in hand to continue virtual audits on a broader scope, until to raise awareness of potential hazards among employees of this initiative to other regions and other While embracing new approaches such as the Safety circumstances enable us to return to our usual on-site, and their families, is another annual fixture on the applications, including enhanced Culture Project, Graymont’s commitment to continuous in-person procedures. improvement also involves leveraging the success Graymont safety calendar. Thanks to the input and ideas return-to-work and fit-for-duty of established programs like the Safety Challenge generated by people from across the organization, we were testing protocols. and our safety-awareness poster campaign. The annual able to pinpoint specific messages tailored to the issues Graymont Safety Challenge, which made its debut in and situations that dominated 2020. Not surprisingly, 2015, unfortunately had to be cancelled this year due given that we found ourselves in the midst of a global to the pandemic. Staged during the same week at all pandemic, COVID-related threats figured prominently facilities across Graymont, the Safety Challenge features in eye-catching campaign posters that urged everyone a highly engaging game-show format, whereby employees to take appropriate precaution with respect to are divided into multidisciplinary teams and challenged handwashing and personal hygiene, social distancing to show which side can demonstrate the best knowledge and the protocols for recognizing and reporting symptoms. and understanding of Graymont safety standards and culture. It has proven to be a very effective training tool, providing an opportunity for peer-led learning that promotes a positive safety culture while fostering SAMPLE POSTERS FROM THE 2020 CAMPAIGN camaraderie and teamwork. As soon as the sanitary measures will be lifted, Graymont’s Safety Challenge will be back at the forefront of our safety program. Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report 14 15
EMPLOYEE ENGAGEMENT AND RETENTION Going forward, we will be aiming to understand the reasons for the demographic distribution among our At Graymont, we strive to nurture a One Graymont employees, and looking at ways to ensure we do not have culture that motivates employees across the organization — barriers to diversity in our workforce, that all employees in dozens of locations spanning North America and have equitable access to the resources and opportunities Asia Pacific — to take ownership of the tasks assigned that allow them to reach their full potential, and that we to them and help sustain Graymont’s evolution into continue to foster an inclusive workplace in which all a dynamic global industry player. employees can be themselves. We understand that the long-term success of our business ultimately depends on effectively engaging with and mobilizing the remarkable men and women who must Equity, Diversity and Inclusion (EDI) implement our growth strategy, taking care to ensure GENDER DISTRIBUTION As Graymont continues to expand its global reach, that everyone — wherever in the world they happen to be the benefits of a diverse, inclusive workforce are situated — acts for the benefit of all of Graymont, rather increasingly clear and ever more relevant. Hiring than favouring any particular facility, region or function. Directors people from diverse backgrounds, nationalities and Women We believe it’s not just what you do that contributes to our cultures brings to the table a fresh array of perspectives, success, but also how you go about doing it. It’s about living which fosters innovation, improved problem-solving Officers Men up to Graymont’s shared values, which include integrity, and decision-making, better employee performance respect, teamwork and accountability. Ongoing training and, in turn, increased profits. Senior and professional development are also crucial to fulfilling Management Team Championing diversity, ensuring employees are treated Graymont’s mission, as is our commitment to open, equitably so they can reach their full potential, and two-way communication. All employees ensuring an inclusive culture so that each employee’s The Company’s people-centered approach and its unique perspective is heard and valued also contribute to 0% 20% 40% 60% 80% 100% commitment to making Graymont an employer of choice enhancing a company’s reputation. is reflected in a loyal, engaged workforce that numbered Accordingly, in 2020, when Graymont forged ahead with some 1,576 full-time permanent employees at year-end concerted action to achieve greater equity, diversity and 2020. The impact of the COVID-19 pandemic on the global Training and Development inclusion, it determined that the logical place to begin was economy and markets necessitated the adoption of to take stock of the current reality in our workplaces vis-à- a restructuring and streamlining initiative that saw the Graymont understands that, to attract and retain a beat while successfully delivering critical skills training vis gender, since this data is already available. elimination of approximately 125 jobs over the course top-quality people, we must strive not only to provide both virtually and via e-learning. Although work is still of the year, while the voluntary turnover rate increased The proportion of women to men among Company meaningful, challenging jobs and competitive underway to complete the transition to predominantly marginally, to 8.1%. There were no workdays lost directors and officers is at slightly under 17% for both remuneration but also professional development virtual training, a number of key subject areas already to strikes or work stoppages in 2020. directors and officers. Women are also under-represented opportunities that enable employees to enhance their have been re-designed and deployed, including induction in the senior executive ranks, accounting for a little over 9% skill sets and prepare themselves to take on greater training; health-and-safety-standards; and “respectful of the Senior Management Team. Overall, women account responsibilities. The year 2020 was definitely challenging workplace” training. Underscoring the remarkable success for a little over 14% of Graymont employees and 32% of from a training perspective. But the threat posed by the of those efforts is the fact that we reached a historic salaried employees. global pandemic turned out to be the catalyst required milestone in 2020, with our training programs reaching — Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report to help pivot our training strategy from mostly traditional one way or another — every single Graymont employee EMPLOYMENT classroom-based to mostly virtual. Our HR teams proved throughout the year, for the first time ever. to be more than up to the challenge, barely missing 1,576 FULL-TIME 8.1% VOLUNTARY 11 YEARS 309 EMPLOYEES 0 STRIKE DAYS AVERAGE LENGTH PERMANENT TURNOVER WITH SERVICE OF SERVICE EMPLOYEES (includes employees GREATER THAN who retired) 20 YEARS 16 17
Challenges Abound Along with the myriad activities available through the Graymont WIN portal, employees can participate in other popular challenges designed to promote healthy lifestyles. For instance, the Maintain Don’t Gain Challenge encourages employees to eat healthy and exercise over the holidays, when people are tempted to over-indulge. Employees seeking to shed pounds or simply maintain their weight can access helpful resources that encourage healthy eating, physical activity and self-awareness throughout the holiday season. The May Step Challenge, staged as the title suggests during the month of May, encourages employees to step up their physical activity by adopting formal work-out programs Investing in Our People and training techniques. Participants can track their At the heart of the Company’s training curriculum is the activity manually, or with a synchronized activity device. Investing in Our People (IOP) Program. This initiative is focused on providing key employees from the various WIN Program Promotes Smart Lifestyle Employee Assistance Program production sites and corporate functions with the Choices wherewithal required to make the best-possible decisions Graymont’s people-centered approach is evident as well about their respective areas of Graymont’s operations — Graymont’s innovative Wellness is Now (WIN) Program, in the Employee Assistance Program (EAP). EAP is and, in the process, to further his or her own career. To that accessible via a portal on the Sprout social-media platform, a confidential short-term counselling service, established end, IOP employs a variety of specialized training tools and is designed to engage employees and their families across to assist employees and family members encountering programs, all tailored to ensure that participants possess the Company’s Canadian and U.S. operations and to assist personal problems that impact their work performance. the high level of skills and motivation commensurate them in making healthier lifestyle choices. WIN exemplifies Those seeking assistance can receive support either in with Graymont’s quest to become a truly world-class Graymont’s inclusive, people-centered culture. Participants person, over the telephone or on-line, through a variety organization. Given that IOP training has proven in the past are encouraged to take part in a wide variety of activities of qualified, issue-based health and wellness resources. to be most effective when delivered in person, this particular supported by the Sprout platform, combining competitive program has essentially been put on hold for the duration challenges with social networking in order to reach their of the pandemic, while we develop appropriate virtual tools. own particular Meanwhile, however, the IOP principles continue to be wellness goals. reinforced and practiced in the Company’s North American plants, where they proved particularly effective in helping In addition to promoting healthy lifestyles, WIN was to manage and mitigate the impact of COVID-19. designed to foster camaraderie and help instill a competitive team spirit. The program enables employees Over and above its in-house training and development to connect with colleagues with similar interests, either initiatives, Graymont provides support for personnel who in person or on-line, and to monitor their progress with wish to improve their formal education. Full-time employees an easy-to-use activity tracker — all the while racking up who pursue approved post-secondary academic points which make them eligible for rewards that provide or vocational training can have their tuition costs an extra incentive to adopt a healthy lifestyle. (Of course, reimbursed. The Company also offers financial assistance in 2020, most of these interactions were staged virtually to the children of employees to help them take advantage in order to comply with COVID-19 precautionary measures.) Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report of a wide variety of educational opportunities, through the Graymont Scholarship Program. U.S. WIN participants can qualify for reductions in the employee portion of their medical insurance premiums, while their Canadian colleagues earn WIN credits that can The program enables be converted into “Wellness Dollars.” These dollars may be applied against the purchase price of sports gear and employees to connect other merchandise, or gym memberships. with colleagues with 18 similar interests 19
Environmental Care NUMBER OF GRAYMONT 4.1 2020 EMISSIONS IN NUMBERS ENVIRONMENTAL INCIDENTS 500 MILLION TONNES We are committed to operating in OF LIME PRODUCED a sustainable manner and proud of (QUICKLIME EQUIVALENT) the fact that Graymont’s essential 400 ▶ a 3.6% decrease compared to 2019 products are part of the solution in ▶ 28.3% above 2004* levels terms of addressing many of today’s 300 25.1 environmental challenges. Complaints 200 Spills PETAJOULES OF ENERGY SYSTEMS-BASED APPROACH CONSUMED 100 ▶ a 0.2% decrease compared Graymont aims to consistently meet or exceed its Deviations to 2019 intensity regulatory and permit obligations, while working proactively to minimize the environmental impacts 0 ▶ 15.3% above 2004* levels of its operations. To fulfill our commitment, we integrate Exceedances 2016 2017 2018 2019 2020 5.2 environmental accountability into our strategic planning and take a systems-based approach to our practices ENERGY AND AIR with respect to environmental impacts. ENVIRONMENTAL The calcination of limestone to produce quicklime is an To help us fully comprehend our environmental PERFORMANCE - energy-intensive process. Improved energy efficiency MILLION TONNES OF CO2eq performance and identify opportunities for further 2020 PROGRESS translates into reduced levels of air pollutants and GHG OF SCOPE 1 GHG EMISSIONS improvement, Graymont relies on a dual-component emissions as well as lower costs. The approach we have ▶ 21.7% below 2004* levels system. First, we utilize our environmental compliance Air emissions from Graymont’s lime kilns are carefully taken to process control is integrated and multidisciplinary, of fuel-related emission intensity tracking system to record all compliance-related tracked, either by real-time emissions-monitoring encompassing Graymont’s Technical Services, Health, (equates to 537,000 tonnes of avoided devices or through periodic testing, to ensure that limits GHG emissions) activities, site by site. A comprehensive audit program, Safety and Environment, Quality and, of course, Operations. which includes both internal and external elements, are respected. Historically, the recorded incidents of Our multi-disciplinary teams look at ways to ensure our 164.7 serves as a second line of control with respect to non-compliance have mostly involved exceedances of processes are as efficient as possible, in order to meet the compliance. During 2020, five Graymont facilities in short duration detected by the emissions-monitoring quality requirements of our customers while respecting North America and New Zealand were audited by third equipment. Nevertheless, we remain stringent in terms relevant environmental and emissions standards. of ensuring that the causal issues are addressed, and parties either virtually or onsite, as part of a three-year, THOUSAND TONNES OF corrective actions taken to prevent recurrences. Graymont’s total energy consumption decreased by 3.8% in environmental-compliance auditing plan. CO2eq SCOPE 2 GHG 2020. That decrease primarily reflected reduced production Total environmental incidents in 2020 decreased by 12% EMISSIONS Graymont has also developed and adopted comprehensive compared to 2019, stemming from the impact of the environmental standards addressing seven key areas: compared to 2019, marking the fourth successive year 0.9 COVID-19 pandemic and the resultant slow-down in many Air Management; Fugitive Dust; Water; Residual Materials; of improved overall performance. Those latest results economies. The Company’s overall “energy intensity,” that Energy; Planning and Reclamation; and Aesthetics. These reflected a substantial 33% reduction in emissions is the amount of energy used to produce one tonne of lime, “exceedances” — defined as events where emissions Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report standards have been implemented at all Graymont sites in decreased by 0.2%. North America and New Zealand. Going forward, they will exceed an environmental permit limit or internal standard THOUSAND TONNES OF SOX be introduced to recently acquired facilities in Asia Pacific, for a prescribed duration of time, which can be as little As well, we continued working hard to reduce the volume EMISSIONS as part of broader environmental-improvement plans as six minutes. We also achieved a 14% year-over-year and intensity of both NOx (oxides of nitrogen) and ▶ 86% under 2004* levels tailored to the unique circumstances of each site. decrease in spills. However, those improvements were SOx (oxides of sulphur) emissions, which are by-products partially offset by a 39% increase in the number of of combustion. Here again, the effects of the “deviations” – defined as a failure to meet a requirement other than an emissions limit. Given that only a handful of facilities accounted for more than 80% of those deviations, pandemic-induced economic slow-down was felt and, combined with initiatives to optimize fuel mixes, the utilization of monitoring equipment as well as specialized 5.0 THOUSAND TONNES OF NOx we will be able to focus intensely on the sites in question training and process-control initiatives, we were able to help them come up with effective long-term strategies to reduce NOx and SOx emissions by 12% and 6% EMISSIONS 20 aimed at curbing such occurrences in the future. respectively. ▶ 22% under 2004* levels 21
MONITORING AND CONTROL The mining and processing of minerals, including lime, can generate dust and other air pollutants which, left uncontrolled, risk becoming a nuisance and can Additionally, we are including in this report for the first level of 2004. We will be transitioning to tracking total also have a negative impact on the environment. time our “scope 2” GHG emissions. We have historically emissions intensity only in future reports, to better Consequently, Graymont operates in accordance focused only on direct emissions from our production account for all emission sources. with stringent company-wide environmental standards facilities, where the lime production process generates and practices aimed at reducing air pollutants the so-called “scope 1” emissions. But our facilities also On top of its proactive initiatives, Graymont takes an and emissions. consume a substantial amount of electricity which, integrated approach to monitoring requirements with depending on the location, can also generate significant respect to GHG emissions, in order to ensure that the Monitoring those efforts normally entails having Company remains fully cognizant of any real or potential GHG emissions. Our “scope 2” metric reflects those Graymont environmental staff working on-site, issues, and has ample time to make any changes that emissions stemming indirectly from Graymont’s electricity shoulder-to-shoulder with independent outside might be necessary to ensure operational efficiency consumption. In 2020, Graymont facilities emitted some consultants, to facilitate compliance testing at the and full compliance with regulatory requirements and 164,700 tonnes of “scope 2” emissions in CO2 equivalent. various facilities. However, that collaborative norms. We do our utmost to meet all requirements in approach proved to be impractical in 2020, due to The volume of scope 1 GHG emissions emitted directly the respective jurisdictions where we operate, and work COVID-19 precautions that limited access to sites, from our production facilities being larger than scope 2 proactively to further reduce our GHG emissions intensity. particularly for Company employees. Nevertheless, emissions, we will continue to focus our reduction effort we managed to arrange sufficient access for the primarily on scope 1 while keeping an eye out for % CHANGE COMPARED consultants to successfully complete 36 on-site opportunities to reduce scope 2 emissions as well. Scope 1 TO 2004 EMISSIONS INTENSITY stack tests, an achievement all of the teams emissions will therefore remain our primary focus. In 2020, involved can be proud of. we reduced total scope 1 GHG emissions by 5%, reflecting 0.00% 2016 2017 2018 2019 2020 in large part a reduction in production. CLIMATE CHANGE Graymont’s overall emissions intensity, that is the volume -5.00% of GHG emissions per tonne of lime produced (including Climate change is more than ever at the forefront however, that easily attainable “low-hanging fruits” are both process and combustion emissions), continued -10.00% of today’s environmental issues. As a large emitter limited in number, which means that achieving emissions to decline, registering a 2% decrease from 2019 levels. of greenhouse gases (GHGs), Graymont recognizes its reductions of any magnitude will require a sustained, This latest reduction made 2020 the fourth year in a row -15.00% responsibility to address and reduce its emissions, long-term effort — an effort Graymont is prepared to make. that the Company achieved reductions in its emissions although the path forward in that respect is fraught with intensity. Following the same trend, our combustion-only challenges. For starters, the transformation of limestone During 2020, Graymont in fact forged ahead with -20.00% emissions intensity continued its gradual decline to an (CaCO3) into quicklime (CaO) inherently produces CO2, multi-level discussions on potential pathways to a all-time low, reaching close to 22% below our baseline which comes directly from the stone, that is referred decarbonized world. These strategic discussions engaged -25.00% to as process emissions. Furthermore, the calcining all our internal stakeholders, from entry-level employees, process, which takes place in kilns at temperatures in to management, to Board members, urging to rise to the challenge. They also encompass a wide array of know-how Combusion Emissions Total Emissions the range of 900 to 1050°C, is very energy-intensive Intensity Intensity GRAYMONT’S 2020 SOx SCORECARD and thus produces significant GHG emissions. Although and disciplines, from process engineering, technology and SOx EMISSIONS: 930 hard to quantify precisely, in many applications, CO2 is regulatory compliance to carbon pricing, market development and human resources. Through this Partnering to Improve Our World partially reabsorbed through recarbonation of the lime, therefore reducing total GHG emissions from lime’s sweeping new initiative, Graymont is striving to Graymont constantly strives to leverage the unique life-cycle. progressively switch more facilities to low-carbon fuels properties of lime products to help resolve and mitigate such as natural gas and biomass, and look into innovative TONNES the many environmental issues our modern world Graymont 2020 Sustainability Report Graymont 2020 Sustainability Report Breakthrough kiln technologies, e.g. carbon-capture-and- “net-zero” technology, all the while supporting and faces. This goal could not be achieved without strong storage, are on the horizon. However, it will be quite some encouraging our customers to continue exploring new lime-based solutions for today’s crucial SOx EMISSIONS AVERTED partnerships with other companies equally committed time before we can avail ourselves of economically viable, commercial-scale solutions that will enable us to markedly environmental issues. IN OTHER INDUSTRIES BY to addressing environmental concerns in their particular THE USE OF GRAYMONT PRODUCTS: spheres of activity. We continue collaborating with 749,000 reduce combustions and process emissions. In the a number of partners to further advance environmental meantime, we are proactively seeking out opportunities While those initiatives are playing out, Graymont has added two key metrics to its toolbox, both designed to uses of lime, in applications such as the scrubbers for more-readily-achievable initiatives aimed at curbing used to curb emissions like SOx from coal-fired emissions, such as best-in-class parallel flow regenerative better inform decision-making. The Company’s rolling five-year production forecast exercise will now include TONNES generating plants. shaft kilns for future capital projects, enhanced process-control systems and the increased use of biomass a CO2 forecast. This new tool will focus on the projected and other low-carbon fuels. It must be said in that regard, CO2 emissions associated with business decisions for the 22 coming five years. 23
WASTE REDUCTION At the heart of Graymont’s approach to waste reduction MANGROVE REFORESTATION is the Company’s determination to create added value IN THE PHILIPPINES and reduce its environmental footprint by fully utilizing all The 2020 environmental agenda at Graymont Philippines of the materials and resources touched by its operations — also saw the Company collaborating with the Community be it limestone, natural stone, overburden, fuel or other Environment and Natural Resources Office (CENRO) materials. The ultimate goal is to reach the point where of Brooke’s Point, which is situated in the south-eastern our processes essentially generate zero waste, by ensuring section of Palawan Island, a province of the Philippines. that no waste is sent to landfills or incinerators and that all The goal there was to rehabilitate 30 hectares products are reused or recycled to make new products. of mangrove forest, through an initiative that entailed Over the past few years, Graymont successfully pushed planting several potted species, including Tangal, forward with an organization-wide initiative aimed at Bakawan Lalaki and Api-Api. The Graymont Rio Tuba reducing stockpiles of by-products traditionally associated crew pitched in to help with the planting, maintenance, with lime operations. Sales of these by-products tend monitoring and patrolling of the grove. In addition to vary year by year, influenced by market conditions to reforesting the area, this initiative succeeded in and product availability. Sales picked up in 2020, with bringing back protected native species such as the 421,000 tonnes sold company-wide. That represented “flying fox” bats to the region. an increase of 22% compared to 2019. We remain firmly committed to finding new applications and opportunities for waste reduction, in line with our zero-waste goal. BEDFORD’S SUPPORT FOR 2020 PARTIALLY SUSTAINABLE AGRICULTURE CALCINED In 2020, Graymont’s Bedford plant entered into an BY-PRODUCT SALES agreement with Le collectif de Bolton-Ouest, a 421 not-for-profit organization that aims to foster the revitalization and utilization of the region’s agricultural and forest resources in a sustainable, responsible manner. The collective’s areas of focus include enhancing THOUSAND TONNES soil fertility; improving forestry techniques in order of calcined by-products sold to conserve biodiversity; and advancing agricultural INDIAN CREEK related research-and-development. Graymont is RECLAMATION committed to helping support the NGO’s efforts over HARVESTING WATER An ambitious reclamation project mounted by the next five years through donations of limestone products for use in soil conditioning and other agriculture AT RIO TUBA the team at Graymont’s Indian Creek facility in applications. This partnership is an excellent illustration In the Philippines, the team at Graymont’s the state of Montana was the recipient of a national not only of the value of lime and limestone in addressing Rio Tuba lime plant conceived and constructed environmental award from the U.S. Department environmental and agricultural issues, but also of how an ingenious rainwater and wastewater Graymont 2020 Sustainability Report of the Interior’s Bureau of Land Management. our Company strives to contribute in a meaningful harvesting-and-storage facility. The so-called The Hardrock Environmental Award recognizes the way to the well-being of the communities On-Site Detention (OSD) tanks not only provide outstanding nature of the work done at Indian Creek, we call home. a valuable additional source of sometimes- which goes above and beyond legal requirements 2019 Sustainability Report scarce water for use in the plant’s operations, and everyday environmental stewardship. Rather, but also deliver a bonus side effect — namely the aim of the project was to bring the landscape back zero waste-water discharge. The OSD initiative, to a native form, thereby facilitating the return of the which represented the culmination of many wildlife that frequented this habitat before industry months of planning and study aimed at making arrived. Demonstrating its penchant for innovation, Graymont 2020 the plant more self-sufficient with respect to the plant is using limestone “fines” from its operations water supply, gathered widespread attention as a growth media for mountain mahogany, a native in the region, and the facility received the species that is a primary food source for the mountain prestigious Platinum Presidential Mineral mule deer, elk and big-horn sheep which are already Industry Environmental Award. beginning to return to the area, much to the delight 24 of everyone involved. 25
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