Glossary

Absolute gross emissions

The total amount of direct CO2 emissions from a cement plant or company in a given
period Absolute gross emissions include CO2 from alternative fossil fuels, but exclude
CO2 from biomass fuels.

Absolute net emissions

Absolute gross emissions minus the acquired emission rights (credits for indirect
savings, such as use of waste as fuel). Net emissions are an indicator of a company’s
carbon footprint.

Acquired emission rights

All emission rights acquired by a company in a given period, except initial emissions
allowances obtained from the regulator.

Aggregates
Quarried materials (crushed stone, gravel and sand) are the main component by
volume of concrete. Aggregates are mainly used in the following construction sectors:
manufacture of ready-mix concrete, concrete goods and asphalt as well as for
roadbeds and railway fundaments.

Alternative fuels (AF)

Selected waste and by-products with recoverable calorific value used as fuels in a
cement kiln, replacing a portion of conventional fossil fuels, like coal.

Alternative raw materials (AR)

Selected waste and by-products containing useful minerals such as calcium, silica,
alumina, and iron used as raw materials in the kiln, replacing raw materials such as
clay, shale, and limestone.

Allowance
A commodity giving its holder the right to emit a certain quantity of GHG. GHG
allowances are typically allocated by a regulator to the emitters covered by a cap and
trade system.

Ash
The mineral content of a product remaining after complete combustion.

ASE General Index

The Athens Stock Exchange General Index is a capitalization-weighted index of
Greek stocks listed on the Athens Stock Exchange. The index was developed with a
base value of 100 as of December 31, 1980. (Bloomberg)
http://www.athex.gr

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Association of Greek Institutional Investors
Established in 1985, is a non-profit organization, representing the Greek Fund and
Asset Management Industry.
www.agii.gr

Bauxite
Bauxite is an aluminum ore. It is named after the village of Baux-de-Provence,
France, where it was discovered.

Base year
A historic datum (a specific year or an average over multiple years) against which a
company’s emissions are tracked over time.

Base year emissions

GHG emissions in the base year.

Best Available Techniques (BAT)

The most effective and advanced stage in the development of activities and their
T

methods of operation which indicate the practical suitability of particular techniques

for providing in principle the basis for emission limit values designed to prevent and,
where that is not practicable, generally to reduce emissions and the impact on the
environment as a whole.

BETA
The Beta coefficient is a measure of volatility of a stock or portfolio in relation to the
rest of the financial market.
By definition, the market itself has an underlying beta of 1.0, and individual stocks
are ranked according to how much they deviate from the macro market.

BREF
A reference document on best available techniques in the cement industries.

Biomass
Biomass refers to any organic material that can be used to provide energy. It is the
biodegradable portion of by-products, waste and residues from agriculture, forestry
and associated industries, industrial plant waste and residues.

Blast furnace slag

A processed byproduct of iron production in blast furnaces that is usable as a
pozzolan.

Blended (composite) cement

Cement with a fixed percentage of cementitious materials, such as slag and fly ash,
replacing part of the clinker portion of the cement.

Bypass dust
Discarded dust from the bypass system dedusting unit of suspension preheater,
precalciner and grate preheater kilns, consisting of fully calcined kiln feed material.

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Calcination
A chemical process, disassociation of limestone, that occurs when cement raw
materials are exposed to high heat in a cement kiln and resulting in CO2 removal from
carbonates from the raw materials mix.

Cash Flow
Cash flow is a company’s net profit after tax, plus amounts charged for amortization,
provisions and depreciation. It represents the company’s capacity for self-financing
during the financial year, before any eventual profit distribution.

Cement
Cement is a substance with the ability to harden upon contact with water (hydration
reaction). It is made by grinding clinker, gypsum and/or other cementitious materials
to a fine powder. The fine powder consists of hydraulic calcium silicates and
aluminates that when mixed with mineral aggregates (like sand, gravel or crushed
stone) and water acts as the binding agent to form concrete.

Cementitious product (material or binder)

A substance which when mixed with water forms a paste that subsequently sets and
hardens at room temperature. Any such material can be used as binders to make
concrete or mortar.

According to CSI/WBCSD Protocol as cementitious product is defined the summation

of all clinker produced by the reporting company for cement making or direct clinker
sale, gypsum, limestone, CKD and all clinker substitutes consumed for blending, plus
all cement substitutes produced. Clinker bought from third parties for the production
of cement is excluded, since this clinker is already included in the inventory of the
third party.

CKD
Discarded dust from long dry and wet kiln system dedusting units, consisting of partly
calcined kiln feed material. Extraction and discarding of bypass dust and CKD serve
to control excessive circulating elements input (alkali, sulfur, chlorine), particularly in
cases of low-alkaline clinker production. The term “CKD“ is sometimes used to
denote all dust from cement kilns, i.e. also from bypass systems.

Clinker
An intermediate in cement manufacturing process, partially fused rock-like product
produced by pyroprocessing (decarbonizing, sintering, and rapid-cooling) of a
properly proportioned mixture of finely ground raw materials (lime, silica, alumina,
and iron oxide). Clinker is ground with additives to make cement.

Clinker factor
The ratio of total clinker consumed and total cement produced during a given period
(according to the WBCSD Carbon Dioxide Protocol).

CO
A colourless, odourless, poisonous gas, which results from respiration, organic
decomposition or incomplete fossil fuel combustion.

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CO2
A gaseous compound resulting from the complete oxidation of carbon. Abundant in
the atmosphere due to anthropogenic (combustion of organic fuels) and natural
activities (breathing and decomposition of organic material). It is a reactant in
photosynthesis and necessary for plant life.

Common stock
A unit of ownership, typically carrying voting rights that can be exercised in corporate
decisions.

Concrete
A material produced by mixing cement, water, fine aggregrate (sand), and coarse
aggregrate (gravel, crushed stone). The cement acts as a binder, and the average
cement content in concrete is about 15%.

Co-processing
Using the cement manufacturing process to recycle, re-use or treat waste while
simultaneously manufacturing cement in a single combined operation.

Conventional (fossil) fuels

Non-renewable carbon-based fuels traditionally used by the cement industry,
including coal and oil.

Dioxin
Any of a family of compounds known chemically as dibenzo-pdioxins. Concern about
them arises from their potential toxicity as contaminants in commercial products.
Tests on laboratory animals indicate that it is one of the more toxic anthropogenic
(man-made) compounds.

Dry mortar
Dry mortars are mortars premixed in the plant such as interior and exterior plaster,
fluidized floor finish and masonry mortar. They are offered in bags or in bulk.

Dry process
Process technology for cement production. In the dry process the raw materials enter
the cement kiln in a dry condition after being ground to a fine powder (raw meal). The
dry process is less energy consuming than the wet process, where water is added to
the raw materials during grinding to form a slurry.

Earnings per share (EPS)

Result of the division of the company’s profit for the financial year by the number of
issued shares.

EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortization.

Emissions
The release of GHG into the atmosphere.

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Equity method
Consolidation method for depicting associated undertakings in group accounts.

Equity share
The equity share reflects economic interest, which is the extent of rights a company
has to the risks and rewards flowing from an operation. Typically, the share of
economic risks and rewards in an operation is aligned with the company's percentage
ownership of that operation, and equity share will normally be the same as the
ownership percentage.

Fly ash
A substance with binding properties composed of very fine particles. It is a by-
product, typically produced as a residue from coal fired power plants and collected in
particle removal systems (electrostatic precipitators or bag filters). The fly ash is
normally in its vitreous form, composed of silica, alumina, iron oxide and lime. Fly
ash is hydrophilic and can be used to partially substitute clinker in cement production.

Gearing
Net Debt / Invested Capital.

Greenhouse gases (GHG)

Gases found in the atmosphere, natural and anthropogenic, which are able to absorb
and release infrared radiation. The Kyoto Protocol includes carbon dioxide (CO2),
methane (CH4), nitrous oxide (N2O), perfluorocarbons (PFCs), hydro-fluorocarbons
(HFCs) and sulfur hexafluoride (SF6) in the GHG list, regarding them as the main
contributors to the climate changes.

Group consolidation
Consolidation of statements of the parent company and its subsidiaries by adding
together items like production, raw material consumption, fuel consumption,
emissions etc.

Gypsum
Gypsum is a construction material made by firing the gypsum mineral in a kiln and
then grinding it. It can be used as a paste or as pre-fabricated boards. Mixed with
water, it forms a gel that sets within a few minutes and then hardens. It is widely used
for interiors: coatings, dry partitions, ceilings and wall linings in the form of tiles or
plasterboard. It has several important properties: accoustic and thermal insulation, fire
resistance, etc.

Heavy Metals
Metallic elements with high atomic weights; (e.g. mercury, chromium, cadmium,
arsenic, and lead); can damage living things at low concentrations and tend to
accumulate in the food chain.

IAS
International Accounting Standards. Accounts made according to IAS include at least
the following elements:
ƒ Profit and loss account
ƒ Balance sheet

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 ƒ Cash flow statement
ƒ Documentation of success-neutral changes in the shareholder’s equity
ƒ Appendices

Indirect emissions
Emissions (related to GHG) that result as a consequence of the activities of the
reporting company but occur at sources owned or controlled by another company. For
example, emissions from the generation of grid electricity consumed by a cement
company, employee travel and product transport in vehicles not owned or controlled
by the reporting company, and emissions occurring during the use of products
produced by the reporting company.

Interest Coverage Ratio

EBIT / Total financial costs

International Labor Organization (ILO)

ILO is a United-Nations agency which brings together governments, employers and
workers. Its purpose is to promote decent working conditions throughout the world to
ensure employees benefit from liberty, equality, safety and dignity. Its actions
encourage the creation of decent jobs and the development of social protection and
dialogue.

Intergovernmental Panel on Climate Change (IPCC)

An international body of scientists. Its role is to assess the scientific, technical and
socio-economic information relevant to the understanding of the risk of human-
induced climate change.

Kiln
Large industrial oven for producing clinker used in the manufacture of cement. In this
report, “kiln” always refers to a rotary kiln.

Kyoto Protocol
Kyoto Protocol is the outcome of the Berlin Mandate. It aims to counter climate
change by reducing carbon dioxide emissions. In effect since February 2005, it has
been ratified by over 150 countries. Under the Protocol, industrialized countries have
until 2012 to reduce their CO2 emissions by 5,2% compared to 1990 levels.

Leverage
Net Debt / EBITDA

Life cycle assessment (LCA)

LCA evaluates all stages of building materials life, from cradle to grave, including
resource extraction, manufacture and transportation of the material used; assembly
and construction; operation including energy consumption and maintenance; disposal
and reuse of material at the end of its life.

Lost time injury

A work-related injury after which the injured person cannot work for at least one full
shift/full working day.

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Market capitalization
Market capitalization is the amount that a company is worth on the stock market,
calculated by multiplying the number of shares in the stock capital by the share price.

Mineral components (MIC)

Mineral components are natural or artificial mineral materials with hydraulic
properties, used as a clinker or cement substitutes (e.g. blast furnace slag, fly ash,
pozzolana and limestone).

MSCI World Index

The MSCI World Index is a free float-adjusted market capitalization weighted index
that is designed to measure the equity market performance of developed markets. As
of June 2007 the MSCI World Index consisted of the following 23 developed market
country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France,
Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand,
Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and
the United States. (MSCI)

Nitric Oxide (NO)

A gas formed by combustion under high temperature and high pressure in an internal
combustion engine; it is converted by sunlight and photochemical processes in
ambient air to nitrogen oxide. NO is a precursor of ground-level ozone pollution, or
smog.

Nitrogen Dioxide (NO2)

The result of nitric oxide combining with oxygen in the atmosphere; major component
of photochemical smog.

NOx
A group of gases produced as a result of photochemical reactions of nitric oxide in
ambient air; major component of photochemical smog. Product of combustion from
transportation and stationary sources and a major contributor to the formation of
ozone in the troposphere and to acid deposition.

Ordinary Portland cement (OPC)

A powdery substance produced by co-grinding clinker (approximately 95%) and
small amounts of gypsum (5%).

Particulates
Fine liquid or solid particles such as dust, smoke, mist, fumes, or smog, found in air
or emissions. Also very small solids suspended in water; they can vary in size, shape,
density and electrical charge and can be gathered together by coagulation and
flocculation.

PER (price-earnings ratio)

The PER is equivalent to the quotient of the current share price and the earnings per
share. The PER reflects the expectations of the investors with respect to the future
income growth.

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Pozzolan
A mineral admixture which is rich in volcanic ash. Natural pozzolan is a light
siliceous mineral produced during basaltic volcanic eruptions. It contains silica,
alumina and iron oxide (which gives it a red color), as well as lime and magnesium
oxide. Artificial pozzolans with the same properties as natural pozzolans can be
created by heating clays, basalts or schists. Pozzolan is used as a cement additive.

Preferred stock
Differs from common stock in that it typically does not carry voting rights but is
legally entitled to receive a certain level of dividend payments before any dividends
can be issued to other shareholders.

Principles for defining report content

According to the GRI, a sustainability report content’s should reflect the following
principles:

o Materiality

The information in a report should cover topics and Indicators that reflect
the organization’s significant economic, environmental, and social impacts
or that would substantively influence the assessments and decisions of
stakeholders.

o Stakeholder inclusiveness

The reporting organization should identify its stakeholders and explain in

the report how it has responded to their reasonable expectations and
interests.

o Sustainability context

The report should present the organization’s performance in the wider

context of sustainability. The underlying question of sustainability
reporting is how an organization contributes, or aims to contribute in the
future, to the improvement or deterioration of economic, environmental,
and social conditions, developments, and trends at the local, regional, or
global level.

o Completeness

Coverage of the material topics and Indicators and definition of the report
boundary should be sufficient to reflect significant economic,
environmental, and social impacts and enable stakeholders to assess the
reporting organization’s performance in the reporting period.

Principles for ensuring report quality

According to the GRI, the following principles should be used to ensure a
sustainability report’s quality:

o Balance

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 The report should reflect positive and negative aspects of the
organization’s performance to enable a reasoned assessment of overall
performance.

o Comparability

Issues and information should be selected, compiled, and reported

consistently. Reported information should be presented in a manner that
enables stakeholders to analyze changes in the organization’s performance
over time, and could support analysis relative to other organizations.

o Accuracy

The reported information should be sufficiently accurate and detailed for

stakeholders to assess the reporting organization’s performance.

o Timeliness

Reporting occurs on a regular schedule and information is available in

time for stakeholders to make informed decisions.

o Clarity

Information should be made available in a manner that is understandable

and accessible to stakeholders using the report.

o Reliability

Information and processes used in the preparation of a report should be

gathered, recorded, compiled, analyzed, and disclosed in a way that could
be subject to examination and that establishes the quality and materiality
of the information.

Renewable energy
Energy taken from sources that are inexhaustible, e.g. wind, solar and geothermal
energy, and biofuels. (CSI DEFINITION)

Return on shareholders’ equity

ROE= Net Income (after taxes, before minorities) / Shareholders’ Equity
Proportion of the profit for the financial vis-à-vis the deployed shareholders’ equity as
shown in the balance sheet. Also called return on equity (ROE).

ROIC
Net Profit After Taxes (before minorities) / Average Invested Capital.

S&P Euro 350

The S&P Europe 350 is an equity index drawn from 17 major European markets. It
gives investors broad market exposure through leading, large blue-chip companies
from these markets.

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SEC
Abbreviation for the Securities and Exchange Commission that is responsible for the
stock exchange supervision.
http://www.hcmc.gr

Slag
This mixture of lime, alumina and silica is produced when iron is smelted with coke
in blast furnaces. Slag accumulates on top of the molten cast iron. If cooled quickly,
its hydraulic properties are close to those of clinker. Slag takes longer to hydrate but it
offers greater stability in corrosive conditions. It is, therefore, a suitable additive for
cement and concrete so as to reduce CO2 emissions.

Specific gross emissions

Emissions expressed on a per unit output basis, for instance gross amount of CO2
emitted per tonne of cementitious or gross amount of CO2 emitted per tonne of
clinker.

Specific heat consumption

Total heat consumption divided by the clinker production; gives a measure of the kiln
thermal efficiency.

Specific net emissions

The net CO2 emissions per tonne of cementitious.

Stakeholder
According to the Global Reporting Initiative, Stakeholders are defined broadly as
those groups or individuals: (a) that can reasonably be expected to be significantly
affected by the organization’s activities, products, and/or services; or (b) whose
actions can reasonably be expected to affect the ability of the organization to
successfully implement its strategies and achieve its objectives.

Stock option plan

Participation model, that normally offers the management of a company the option to
buy shares of a company at certain conditions. Several performance criteria have to
be fulfilled prior to the redemption of the issued options.

Subcontractors
Full-time equivalent personnel working for the company but not on its payroll.

Sulfur Dioxide (SO2)

A colorless gas consisting of a single sulfur atom and two oxygen atoms. Sulfur
dioxide is a major primary pollutant in the atmosphere originating mostly from coal
fired power plants and other fossil fuels combustion. In the atmosphere, sulfur dioxide
is usually oxidized by ozone and hydrogen peroxide to form sulfur trioxide, trioxide, a
secondary pollutant. Sulfur trioxide, similar to sulfur dioxide, is extremely soluble in
water.
If these sulfur oxides are present in the atmosphere when condensation occurs,
droplets of sulfuric acid (acid rain) are formed. Volcanic eruptions provide a natural
source of sulfur dioxide in the atmosphere. However the real problem associated with
the production of sulfuric acid in the atmosphere is not with the sulfur dioxide

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expelled by volcanoes. Anthropogenic production of sulfur dioxide, caused by the
burning of fossil fuels, is largely responsible for damage caused by acid rain.

Sulfur Oxide (SOx)

Pungent, colorless gases (sulfates are solids) formed primarily by the combustion of
sulfur-containing fossil fuels, especially coal and oil. Considered major air pollutants,
sulfur oxides may impact human health and damage vegetation.

Sustainability reporting
Sustainability reporting is the practice of measuring, disclosing, and being
accountable for organizational performance while working towards the goal of
sustainable development. A sustainability report provides a balanced and reasonable
representation of the sustainability performance of the reporting organization,
including both positive and negative contributions. GRI

Sustainable construction
Sustainable construction aims to limit the impact of buildings on the environment
while enhancing their quality in terms of aesthetics, sustainability, durability and
strength. Sustainable construction techniques apply across the entire lifecycle of a
building, from the selection of initial materials to demolition and recycling.

Sustainable construction signifies in particular:

ƒ the use of recyclable materials to conserve natural resources,
ƒ the integration of renewable energy sources into a building's design,
ƒ the optimization of renewable energy sources.

Sustainable development
The World Commission on Environment and Development defines sustainable
development as "development that meets the needs of the present without
compromising the ability of future generations to meet their own needs".

Sustainable development aims to reconcile 3 major stakes:

ƒ economic performance,
ƒ the social consequences of a company's actions (with regard to employees,
suppliers, customers and the local community),
ƒ environmental aspects (achieving a balance between a company's activities and
the preservation of ecosystems).

Target base year

The base year used for defining a GHG target, e.g. to reduce CO2 emissions 15%
below the target base year levels by the target base year 1990 by the year 2010.

TOC
Total organic carbon

Volatile Organic Compounds (VOCs)

Organic chemicals that have a high vapor pressure and easily form vapors at normal
temperature and pressure. The term is generally applied to organic solvents, certain
paint additives, aerosol spray can propellants, fuels (such as gasoline, and kerosene),
petroleum distillates, dry cleaning products and many other industrial and consumer

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products ranging from office supplies to building materials. VOCs are also naturally
emittedby a number of plants and trees.

Waste
A substance/material or object that is produced as an unwanted side effect of a
production process and which the owner (waste generator) discards, wants to discard,
or has an obligation to discard.

WBCSD Carbon Dioxide Protocol

Internationally accepted standard methodology for monitoring and reporting CO2
emissions from cement production.

United Nations Environment Program (U.N.E.P)

The U.N.E.P., created in 1972, is the highest environmental authority of the United
Nations. The U.N.E.P works with United Nations agencies, international
governmental and nongovernmental organizations, the private sector and civil society.
The U.N.E.P has set up the Sustainable Buildings and Construction Initiative
(S.B.C.I.), which Lafarge directs.

United Nations Framework Convention on Climate Change (UNFCCC)

Signed in 1992 at the Rio Earth Summit, the UNFCCC is a milestone Convention on
Climate Change treaty that provides an overall framework for international efforts to
(UNFCCC) mitigate climate change. The Kyoto Protocol is a protocol to the
UNFCCC.

Verification
An independent assessment of the reliability (considering completeness and accuracy)
of a GHG inventory.

Acronyms and formulas

Cembereau European Cement Association
CO2 Carbon dioxide
CoP Communication on Progress
CSR Corporate Social Responsibility
CSR Europe European Network for CSR
CSI Cement Sustainability Initiative
GRI Global Reporting Initiative
ISO International Organization for Standardization
OH & S Occupational Health and Safety
SD Sustainable Development
UNEP United Nations Environment Programme
WBCSD World Business for Sustainable Development

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