Environmental matters of HEIDELBERG Cement

Values:

Commitment to Environmental Protecton: Building on environmental care also makes economic

sense

SAFETY, HEALTH AND ENVIRONMENT COMMITTEE

Mustaque Ahmed

Terence Ong Kian Hock

Mohammad Alamgir

Mahmud Al Rashid Joarder

(2.4) Safety Health and Environmental Committee

HCBL is commited to complying with all applicable environmental laws, standards, and requirements and
takes a proactve and long-term view on environmental maters to prevent polluton and contnuously
improve environmental performance. Health & safety is an integral part of all our business actvites.
Under his effectve leadership of Mr. Mohammad Alamgir, Country Health & Safety Manager, overall
Health and Safety management of HCBL is moving forward even more successfully and is building a
healthy safety culture in the Company. For the purpose of making awareness and to encourage following
safety rules irrespectve of place of work, among our all stakeholders, many programs were arranged on
behalf of HCBL, within and outside of the Company throughout the year.

(3.6) Corporate Social Responsibilites (CSR):

The Board of Directors are also concern for community development as a part of the Corporate Social
Responsibilites (CSR) especially in the areas of gender equality, race-religion-regional equality, non-
employment of child labour, human rights, environmental polluton, social marketng, social actvites
(promoton of sports & culture, health care and populaton control programs, eliminaton of corrupton
programs, partcipaton in charitable actvites etc. in non-partsan manner) right to form and partcipate in
Union under ILO conventon, employment of disabled etc. Besides this, the BOD especially

Sustaining Growth
From the early stage of survival and recovery, HeidelbergCement Bangladesh Limited is
methodically protectng and promotng diversity and it has progressed to reach a positon of
strength and potental for growth. The Company’s strategy is built on three pillars of economy,
ecology and social responsibility. We always have emphasized the importance of technical
advancement, environmental and climate protecton as well as safety of the employees and
workers.

Sustainability and compliance risks

As part of its sustainable corporate governance, HCBL makes a special commitment to protect
the environment, preserve resources, conserve biodiversity, and to act in a socially responsible
way. We consider concern for the environment, climate protecton, and sustainable resource
conservaton to be the foundaton for the future development of our Company. Compliance with
current legal and internal regulatons forms an integrated part of our corporate

Substaton Expansion Project (9.5MVA):

Low Carbon Cement Producton: New technologies have enabled us to increase our use of clinker
substtutes and alternatve fuels in cement producton, leading to significant and direct (e.g. from
limestone de-carbonizaton) CO2 emissions reductons. Moreover, producing power from natural
gas with lean burning confirms zero carbon emission which helps to maintain our commitment to
a greener environment.

ii) Electrical Energy Efficiency Enhancement Contnuous improvements to the producton process
have been made to lower the amount of electricity required. Replacing older plants with more
modern and efficient technologies and contnually modernizing existng plants will result in
improved electrical performance. For example, the applicaton of enhanced grinding techniques
and Power Factor Improvement (PFI) devices, using LED lightng inside the plants and variable
speed drives all contribute towards lowering the levels of electrical energy required. We believe
we are heading in the right direction towards consuming the lowest amount of power possible
per unit of cement production.

iiii) Dust Emission Control and it's Preventon and Collecton Enhancement Generaton of fine
partculates and dust are inherent in the manufacturing process, but most are recovered and
recycled with Programmable Logic Control (PLC) dust collector and by carrying out preventve
maintenance on each dust collector and measuring dust at set frequencies to observe dust
emission inside the plant. We have achieved generaton of fewer than 0.2 kilograms of dust per
metric ton (kg/t) of material using dust recovery systems. More than sufficient ventlaton systems
are in use in conjuncton with hoods and enclosures covering transfer points and conveyors. Drop
distances are also being minimized by the use of adjustable conveyors, and dusty areas such as
roads are weted down through the use of water auto sprinkler system to reduce dust generaton.
Moreover, we have modified the existng dust collector with an automated zone-wise pulse
system. Various mechanical types of equipment are also used to control/collect dust such as the
dust collector, Cyclone, industrial vacuum cleaner, etc. In both plants, old bag filters have been
replaced with new and more efficient types. We have also installed a new high-performance Eco-
hopper on material receiving point to control dust emission during raw material unloading.

v) Contnual Improvement Programme (CIP) We have implemented CIP to make the plant beter
in respect of maintenance, mill optmizaton, environment, etc. The approach might become a new
way of knowledge sharing and exchange of informaton Group-wide between plants. Innovatve
technologies and excellent quality make HCBL the market leader for the cement industry. We
are employing our best efforts to set the industry benchmarks with respect to mill operaton,
product quality and environment protecton in Bangladesh

Reports of the Board of Directors

We seek to foster good relatonships with the locals wherever we operate as part of our Corporate
Social Responsibility (CSR) philosophy. By supportng local projects in line with the established
themes of building, environment, and educaton, we aim to build on our reputaton as a good
corporate citzen. HCBL’s CSR program includes strategic flagship programs such as innovatve
constructon of building and infrastructure by partnering non-profit organizatons (local and
globally renowned NGOs), supportng the Centre for the Rehabilitaton of the Paralyzed (CPR),
Proyash as well as contnuing a regular presence in our local communites through financial
assistance for meritorious school students. During the current COVID-19 outbreak, we are also
trying to support some of the vulnerable people in the local communites. We strongly believe
that building strong relatonships and creatng sustainable trust with the local community greatly
enhances the ability of the Company to achieve its goals.
Notes to the consolidated and separate Financial Statements For the year ended 31
December 2019

3.21. Environmental expenditure Environmental expenditures, which increase life, capacity or

result in improved safety or efciency of a facility, are capitalized