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Integrated
Annual
Report
2020
TITAN CEMENT GROUP
About the Report
The 2020 TITAN Cement Group Integrated Annual Report (IAR 2020) has been prepared in accordance with the Belgian Law,
the 2020 Belgian Code on Corporate Governance, the International Financial Reporting Standards (IFRS) and the International
Integrated Reporting Council (IIRC) principles for integrated reporting.
Other reporting frameworks followed by TITAN Cement Group include the UN Sustainable Development Goals (SDGs) 2030, the
UN Global Compact Communication on Progress Guidelines and the Charter and Guidelines of the Global Cement and Concrete
Association (GCCA). In 2020, the Group also started reporting according to the Sustainability Accounting Standards Board
(SASB).
The separate and consolidated financial statements of the IAR 2020 were audited by PwC. The ESG performance overview and
statements were independently verified at a reasonable level by ERM Certification and Verification Services (ERM CVS),
in accordance with the Charter and Guidelines of the Global Cement and Concrete Association (GCCA) and the Advanced Level
criteria for Communication on Progress of the United Nations Global Compact (UNGC).
The independent auditor’s report by PwC and the independent assurance statement by ERM CVS are included in the IAR 2020
and are available online at www.titan-cement.com/newsroom/annual-reports. You may access the IAR 2020 by scanning the
following QR code with your mobile device.
We welcome your feedback, which you can send to us through the link above.
Contents
Understanding TITAN
Management Report
2020 highlights 2
Message from the Chairman of the BoD
Message from the Chairman of the Group
Executive Committee
Overview 6
Our business approach in a changing
global landscape
A long history of sustainable growth
Our governing objective
Global presence
Delivering value for all
Materiality assessment and stakeholder engagement
ESG targets 2025 & beyond
Corporate Governance and Risk Management 44
Corporate governance statement
Corporate governance code
Capital, shares and shareholders
Board of Directors
Composition and operation of Board committees
Diversity and inclusion
Internal audit and risk management in the scope of the
financial reporting process
Internal audit
Remumeration report 2020
Information to be disclosed pursuant to Article 34 of
the Royal Decree of 14 November 2007
Shareholder information and services
Risk management 65
Risk management process
Risk management governance and controls
TITAN's principal risks
ESG performance review 70
ESG performance overview 72
TITAN’s response to COVID-19
Climate change
Circular economy
Environmental management
Research and innovation activities
Health and safety
People management and development
Sustainability of communities
Performance highlights 20
Financial performance
Equity market information
ESG performance
• Performance towards our 2020 targets
• Environmental performance
• Social performance
• Corporate governance and risk management
• Regional performance
Outlook 2021
Sustainable supply chain
Governance, transparency, and ethics
Independent assessment of ESG performance
ESG performance statements 80
Financial review 114
Financial performance overview 116
Review of the year 2020
Regional review of the year 2020
Financing and investments
Resolutions of the Board of Directors
Outlook
Treasury shares
Sale of stock in the framework of the
stock options plan
Post balance sheet events
Going concern disclosure
Viability statement
Financial statements 119
Parent company separate summarized
financial statements 189
Declaration by the persons responsible 191
Auditors’ reports 192
Glossary 201
2 2
2020 Highlights
€286.2m
EBITDA
€1,607m
Revenue
261
Specific water
consumption
(lt/t cement)
599
New hires across
the Group
0.57
Lost time injuries
frequency rate (LTIFR)
for employees
"BB"
on a stable outlook
Credit rating (S&P)
€2,678.9m
Total Group Assets
674
Specific net direct
CO₂emissions
(kg/t cementitious product)
5,359
Employees
(as at 31 December 2020)
19.3
Specific dust
emissions
(g/t clinker)
3
I’d like to take this opportunity to thank my fellow
Board members for their continued support and for
ensuring a balanced, responsible and sustainable
long-term growth path for TITAN.
The whole Board joins me in congratulating all our
employees for supporting the company through
these trying times and our senior management
for providing the leadership and for successfully
executing a complex strategic plan in the midst of
such uncertainty. They jointly underpin the long-term
sustainable growth of TITAN, for the benefit of its
shareholders and stakeholders.
With best wishes to all,
Takis Arapoglou
Chairman of the BoD
Message from the Chairman of the BoD
Dear Shareholders and Stakeholders,
One year ago, at the time of writing my previous letter
to you, the world was beginning to feel the effects of the
COVID-19 pandemic. Today we are all too familiar with
government mandated lockdowns and extensive safety
measures. The global economy has suffered a severe blow,
with some sectors of the economy hit disproportionally,
and country balance sheets being overextended to provide
social and economic support. At the same time science,
with an unprecedented speed, was successful in finding
effective vaccines which are currently being delivered to
the public across the globe.
The effects of the pandemic will no doubt influence
permanently our lives going forward, with drastic changes
from the way we live, work and protect our health, to
the way businesses and governments are run. However,
these changes should be seen more as an opportunity to
do more with less, and should help us focus on addressing
growing challenges in global inequality, public health,
education and employment and in adjusting our growth
models accordingly.
Throughout this past year, we at TITAN set as a priority
the protection of our people, we contributed to the efforts
to mitigate the health impact on society and maintained
the continuity of our operations. Risk assessment and
contingency plans were designed and enforced, local
guidelines were drawn up, hygiene measures were
increased and medical and psychological support was
provided by experts or through health care programs.
To ensure that the Group continues to adhere to the
highest standards of corporate governance, the Board
reviewed TITAN’s overall approach to risk management,
assessing the nature and extent of the principal risks
assumed in pursuit of its strategic objectives. Having
completed one year since our listing in Euronext Brussels,
we also conducted a formal evaluation of the effectiveness
of the Board, requesting anonymous feedback from its
members.
Although the human, economic and social challenges
remain, we continue to focus on our values, our corporate
governance and our sustainability footprint. Change,
innovation, digitalization and carbon footprint remain our
main strategic objectives.
In fact, to better align growth with sustainability, we
introduced a remuneration component linked to the
Group’s CO₂ emissions, and we strengthened the oversight
of the sustainability agenda at the Board level.
Although the human, economic and social challenges
remain, we continue to focus on our values, our
corporate governance and our sustainability footprint.
TITAN Cement Group
Integrated Annual Report 2020
4
Message from the Chairman
of the Group Executive Committee
Dear Shareholders and Stakeholders,
In 2020, we delivered strong financial performance while taking
care of our employees and those around us, ensuring high-quality,
uninterrupted customer service and accelerating progress towards
our digital and sustainability aspirations. In the face of uncertainty
caused by COVID-19, we remained confident in our business model.
We adapted to shifting market conditions and continued to pursue
operational excellence while laying the groundwork to capture
future growth.
Construction activity proved resilient in most of our geographies,
with high sales volumes in the second half of the year more than
compensating for a relatively weak early spring. Demand for our
products on the East Coast of the USA held up on the back of
infrastructure spending, record-low mortgage rates, and a shortage
of available housing. In Greece, following the easing of lockdown
restrictions in May, the market staged a rebound, with support from
small public works and a buoyant commercial and industrial segment.
Our sales in Southeastern Europe benefited from a mix of residential,
commercial, and infrastructure projects, whereas Turkey and Brazil
saw a surge in demand, fueled by private investment activity.
In Egypt, market conditions remained challenging, with cement
consumption suffering from oversupply and a six-month suspension
of building permits. Pricing dynamics were favorable in most markets.
Overall revenue for the Group was steady at €1.6 billion and 1.5%
higher at constant exchange rates. Energy and commodity cost
tailwinds, together with disciplined cost control, bolstered operating
profitability (EBITDA), which grew by 7.1% to €286.2 million. Net profit
after taxes and minority interests (NPAT) fell by €49.4 million to
€1.5 million, impacted by non-cash charges (goodwill impairment
charges and the write-down of accumulated deferred tax assets) in
Egypt, totaling €63.9 million.
Higher EBITDA, tighter working capital management, and reduced
capital expenditure enabled robust cash flow generation and
deleveraging, with net debt declining by €155.2 million. In the summer
of 2020, the Group’s subsidiary, Titan Global Finance PLC, issued
a €250 million bond due in 2027, with a 2.75% annual coupon, the
proceeds of which were used to pay down debt and strengthen our
balance sheet.
Delivery of such results was only made possible by the collective
effort of our people and we are deeply grateful to them for their
commitment and dedication. From the onset of the pandemic, we
took action to protect our employees and their families, focusing on
prevention, preparedness, and knowledge sharing. We instituted
measures to ensure that those working on-site do so under the safest
possible conditions. Over a third of our personnel switched to remote
working, and everyone was given access to updated and complete
information, expert guidance and support.
Living up to our social responsibility, we stood by our neighboring
communities, addressing some of their most urgent needs and offering
equipment, supplies and financial assistance to hospitals and medical
care centers. We worked closely with local authorities, public health
institutions, and civil society organizations in an effort to contain
the spread of the virus. We helped our partners and contractors
5
sustain their businesses within the crisis. And through meticulous
contingency planning, we minimized disruptions to our operations
and continued to serve our customers effectively.
Meanwhile, we never took our eyes off our strategic objectives
of digitalization and de-carbonization. In the context of the
former, big data and artificial intelligence tools were leveraged
to drive decisions, capture operational efficiencies, advance
our supply chain capabilities and redefine how we interact with
our customers and partners. We developed a modern customer
interface application and discovered innovative ways of looking
at process automation, inventory management, maintenance,
and failure prediction. The Group acquired new digital skills and
sought new collaborations with technology partners, academic
institutions, and the scientific community.
Climate change mitigation remained at the top of our agenda.
While expecting to meet our 2020 CO₂ reduction target with a
short delay due to regulatory and market conditions that influence
product and fuel mix, we decided to raise our longer-term
ambition. We revised our 2030 target for direct emissions down to
500kg net CO₂ per ton of cementitious product, with the aspiration
to deliver society with carbon-neutral concrete by 2050. In line
with our commitment to open and transparent communication
with our stakeholders, we responded for the first time to the
Carbon Disclosure Project (CDP) Climate Change and Water
Security questionnaires.
To reduce our carbon footprint, our Bulgarian and US cement
plants switched partially to natural gas. We obtained a license
to consume fuel derived from municipal waste in northern
Greece, and new feeding installations for alternative fuels were
inaugurated in Florida and North Macedonia. Moreover, we
continued to invest in research and innovation. We patented
a green nanomaterial and developed the world’s first full-cycle
technology to reclaim and convert landfilled ash into a low-carbon
substitute for cement in concrete. Finally, for its contribution to
the EU-funded project RECODE, which aims to capture CO₂ and
convert it into value-added chemicals, the Group was recognized
as a Key Innovator in the European Commission’s Innovation Radar.
As always, our sustainability initiatives were not limited to
de-carbonization and we delivered on the majority of our other
2020 sustainability targets. Our plant in Florida became the first
cement production facility in the world to be Total Resource
Use and Efficiency (TRUE) Platinum certified for zero waste.
To protect biodiversity, we joined forces with key stakeholders
at a European and global level. We encouraged our suppliers
to operate more sustainably and stepped up our efforts to
promote circular economy. Unfortunately, in safety, despite
the achievement of a world-class employee lost time injuries
frequency rate, we had three fatalities, two involving contractors
and one involving a direct employee. We will redouble our efforts
and work with more determination than ever towards the
prevention of all fatal accidents. The results of a survey taken by
our employees worldwide were used to enhance diversity and
inclusion and inform a new action plan to increase employee
engagement. During the year, we reassessed the environmental,
social, and governance (ESG) issues that are material to our
stakeholders and our business units. Based on the output of
this exercise, we set new ESG targets for 2025 and beyond. And
building on our track record of transparency and accountability,
we upgraded our governance systems and launched a new,
more agile organizational structure to address the sustainability
challenges of the future.
With the pandemic still raging, visibility into 2021 remains
limited. The industry is facing inflationary pressures, yet market
fundamentals are solid. Healthy backlogs in the USA should
support demand for building materials while, in the second half
of the year, we expect to see higher stimulus spending funding
urgent infrastructure needs. In Greece, we expect the revival
of the housing sector to continue while a number of public and
private projects gradually pick up steam. Construction in the
country should also benefit from the disbursement of EU recovery
funds. With the suspension of building permits no longer in
place, demand should bounce back in Egypt. And markets in
Southeastern Europe, Turkey, and Brazil should continue to grow,
barring any negative macroeconomic surprises.
2021 will require us to find a balance between managing the
crisis and building for the future. Maintaining discipline on health
and safety and showing support to those around us will remain
priorities. At the same time, we will strive towards operational
excellence to deliver superior results for our stakeholders and
shareholders. We will continue to harness novel tools while
enriching our know-how and technological capabilities, investing
to take advantage of emerging growth opportunities. And we will
seek innovative ways to create value by transforming our business
to serve our customers more efficiently as we move towards a
carbon-neutral and digital world.
Dimitri Papalexopoulos
Chairman of the Group Executive Committee
We will seek innovative ways to create value by transforming
our business to serve our customers more efficiently as we move
towards a carbon-neutral and digital world.
TITAN Cement Group
Integrated Annual Report 2020
Overview
An overview of our Group in a
changing global landscape and our
approach to value creation for our
stakeholders. Our material issues
and our ESG targets for 2025 and
beyond.
Understanding TITAN
Patras cement plant, Greece
6
7
8
Our business
approach in a
changing global
landscape
Building on 118 years of
industry experience and
driven by its commitment to
sustainable growth, TITAN
has become an international
cement and building
materials producer, serving
customers in more than 25
countries worldwide through
a network of 14 integrated
cement plants and three
cement grinding plants.
Increased
societal
expectations
regarding
sustainability
Digital
transformation
as a foundation
for future
growth
Urbanization
and sustainable
infrastructure
development
TITAN also operates quarries, ready-mix
plants, terminals, and other production and
distribution facilities.
We serve society’s need for safe, durable,
resilient, and affordable housing and
infrastructure. We create value by
transforming raw materials into products
– cement, concrete, aggregates, fly ash,
dry mortars, blocks, and other building
materials. We offer transportation and
distribution services to our customers,
as well as a range of additional solutions,
ranging from beneficiation technologies to
waste management.
Amidst accelerating shifts and disruptive
events, such as the COVID-19 pandemic,
we effectively address critical challenges
and play our part in building a better,
more sustainable future together with our
stakeholders.
Climate change
and the societal
need for a
carbon-neutral
future
Climate change represents a long-term risk for our
planet and society. It requires the mobilization of
organizations across many sectors, the cement
industry among them, to take meaningful action
and tackle this global challenge. In 2020, the Global
Cement and Concrete Association (GCCA) announced
its members’ Climate ambition to drive down the
CO₂ footprint of operations and products and deliver
carbon-neutral concrete to society by 2050. Our
industry is working across the built environment value
chain to deliver this aspiration in a circular economy,
life cycle context.
The 4th industrial revolution, driven by the advent of
the Internet of Things, big data, artificial intelligence,
and advanced analytics, promises to transform key
components of the industry’s value chain. Traditional
value generation drivers and differentiators are
complemented by new digital tools that unlock value
through improved operational efficiency and higher
customer engagement. Companies that embrace
Industry 4.0 early on and scale up quickly can reap
significant benefits.
With expectations on corporate responsibility, ESG
(environmental, social & governance) performance,
and transparency on the rise, organizations are
upscaling their sustainability efforts. Companies
must operate in a sustainable way across their value
chain, address what is material to their stakeholders
effectively, and offer products with a sustainable life
cycle.
As urbanization continues, demand for sustainable
infrastructure and green building products and
solutions is set to rise over the coming decades. The
cement industry must respond to the growing need for
resilient construction to protect our cities and natural
environment from a changing climate. At the same time,
it must contribute through innovation to the shaping
of sustainable cities in collaboration with all relevant
stakeholders throughout its value chain.
Understanding
TITAN
Overview
9
Our approach
We continuously reduce the carbon footprint of our operations and
participate in the de-carbonization of the construction value chain.
We are targeting a 35% reduction of our net direct specific CO₂
emissions by 2030, compared to 1990 levels. Through our participation
in European and international consortia, we are developing low-carbon
cementitious products and are collaborating in R&D projects that will
pilot carbon capture technologies in our plants, actively contributing to
our industry’s ambition for a carbon-neutral future by 2050.
Our approach
We embrace Industry 4.0 as an opportunity, and we are pioneers in the
transformation of the cement industry with an agile and entrepreneurial
approach. Following a series of successful digital pilots, we consolidated
our efforts under our Group Digital Center of Competence in 2020
to accelerate our digital transformation. We are enhancing our
competitiveness through digital transformation, increasing our
operational efficiency in manufacturing and in our supply chain, and
elevating the experience of our customers.
Our approach
We run our operations worldwide with transparency and solid governance,
maximizing our positive local impact beyond the boundaries of our plants.
We aspire to contribute to the sustainable growth of our neighboring
communities by promoting a diverse and inclusive mindset. Most of
our employees, contractors, and suppliers are members of our local
communities. Together with our stakeholders, we work to implement
community engagement plans and empower the youth with quality
education and skills for personal and professional development.
Our approach
We develop sustainable products – we focus on their affordability,
durability and recyclability as well as on their carbon footprint.
When designing them, we take a holistic view of the production,
consumption, reuse/recycle/recovery and disposal of their residuals
to evaluate their environmental impacts throughout their entire life
cycle. At the same time, we encourage our supply chain partners to
incorporate sustainability considerations in their business decisions
and daily behaviors, further promoting responsible sourcing.
Working
together with
our stakeholders
Through our collaboration
with customers, business
partners, local communities,
and academia, we increase
the shared value created at
a global, regional and local
level.
We actively collaborate
with international
organizations to address
global sustainability
challenges within the
framework of the UN
Sustainable Development
Goals for 2030. We are
a participant of the UN
Global Compact (UNGC)
and a core member of CSR
Europe and the Global
Cement and Concrete
Association (GCCA).
TITAN Cement Group
Integrated Annual Report 2020
10
1990 - 2018: Acquisitions and investments in over 15 countries:
A long history of sustainable growth
Driven by our entrepreneurial spirit and our commitment to sustainable growth, we have
expanded beyond our Greek roots, expanding to four continents.
1902
TITAN Cement is founded with the
opening of the first cement plant in
Elefsina, the first cement-producing
unit in Greece
1912
Listing on the Athens Stock Exchange
1951 - 1957
Rapid growth of exports, which during
the period account for over 50% of the
company’s sales and approximately 50%
of Greece’s total cement exports
Foundations
1902-1960
1962
Second plant in Thessaloniki
1968
Third cement plant in Drepano, Patras
1976
Fourth cement plant in Kamari,
near Athens
Growth in Greece
1960-1990
1990-2020
International expansion
• (1992) 60% in Roanoke Cement, Virginia, USA
• (1998) Cementarnica Usje, North Macedonia
• (1999) Beni Suef Egypt (50% joint venture)
• (2000) 100% of Roanoke, Virginia and
Pennsuco, Florida, USA
• (2002) Kosjeric, Serbia
• (2002) Alexandria PCC (APCC), Egypt
(50% joint venture)
• (2003) Zlatna Panega, Bulgaria
• (2007) Greenfield investment,
Antea plant, Albania
• (2008) 50% in Adocim, Turkey (JV)
• (2008) 100% of Beni Suef and APCC Egypt
• (2010) Sharr plant, Kosovo
• (2016) 50% in Cimento Apodi, Brazil (JV)
• (2018) 75% in Adocim, Turkey
2019
Titan Cement
International S.A.
becomes TITAN
Group’s parent
company and is
listed on Euronext
Brussels, Paris,
and the Athens
Exchange
Our growth journey since 1902
Understanding
TITAN
Overview
11
Our values
Our values are at the core of who
we are; they guide our strategy
and provide the foundation for
all our operations. They have
provided our people with a strong
bond and supported the growth
that has sustained us for over a
century, stemming directly from
the principles, beliefs, and vision
of our founders back in 1902.
They remain the solid basis of our
culture and family spirit.
Know-how
▶ Enhancement of
knowledge base
▶ Proficiency in
every function
▶ Excellence
in core
competencies
Integrity
▶ Ethical business
practices
▶ Transparency
▶ Open
communication
▶ Good governance
Value to the
customer
▶ Anticipation of
customer needs
▶ Innovative
solutions
▶ High quality of
products and
services
Continuous
improvement
▶ Learning
organization
▶ Willingness to
change
▶ Rise to
challenges
Delivering results
▶ Shareholder value
▶ Clear objectives
▶ High standards
Corporate Social
Responsibility
▶ Safety first
▶ Sustainable
development
▶ Stakeholder
engagement
Underpinning these priorities is our approach to sharing best practice and leveraging expertise. Applying this approach across the Group
helps the development of our capabilities and the efficient delivery of our governing objective.
We aim to grow as a multiregional, building materials producer, combining entrepreneurial
spirit and operational excellence with respect for people, society, and the environment.
Our strategic priorities
To achieve our governing objective, we focus on four strategic priorities:
We expand our business
through acquisitions and
greenfield developments
into attractive new
markets, to diversify
our earnings base and
mitigate the effect of the
volatility inherent in our
industry.
Geographic
diversification
We extend our business
into other product
areas in the cement
value chain, serving our
customers better and
accessing new profit
opportunities.
Vertical
integration
We reduce our
environmental footprint,
with focus on
de-carbonization
and biodiversity.
We care for and develop
our employees, and
foster constructive
collaborations with our
neighboring communities
and other stakeholders.
Sustainability, with focus
on the environment and
society
We deliver new
efficiencies throughout
our business to reduce
costs and compete more
effectively, implementing
digital solutions across
our value chain.
Continuous competitive
improvement
Ingrained in the Group’s identity and
embedded in our culture and our people’s
practices, our values guide
the way we conduct our business –
with respect, accountability, and
responsibility.
Our governing objective
TITAN Cement Group
Integrated Annual Report 2020
12
Global presence
We report on our performance and activities based on four
geographic regions, and separately on our joint venture in Brazil.
USA
Integrated cement plants
1. Roanoke – Virginia
2. Pennsuco – Florida
Brazil
(Joint venture)
Integrated cement plant
1. Quixere
Cement grinding plant
2. Pecem
Brazil
USA
1
2
2
1
USA
Principal products/activities
3
Import
terminals
8
Quarries
82
Ready-mix
plants
7
Concrete
block plants
5
**
Fly ash
processing
plants
2
Integrated
cement
plants
EBITDA
€176.1m
Revenue
€937.7m
Assets
€1,095.8m
Brazil (Joint venture)*
Principal
products/
activities
1
Cement
grinding
plant
3
Quarries
4
Ready-mix
plants
1
Integrated
cement
plant
Principal products/
activities key:
Cement
Ready-mix concrete
Aggregates
Dry mortars
Building
blocks
Fly ash
Waste management
and alternative
fuels
Number of operational units of
all regions as calculated for ESG
performance reporting purposes
at Group level
* The joint venture in Brazil is incorporated in the
financial statements using the equity method of
consolidation. In the ESG performance overview
and statements, the joint venture in Brazil is not
included.
** 1 facility in Canada is included
Understanding
TITAN
Overview
13
Greece & Western Europe
Integrated cement plants
1. Thessaloniki
2. Kamari
3. Patras
Cement grinding plant
4. Elefsina
Southeastern Europe
Integrated cement plants
1. Kosjeric – Serbia
2. Zlatna – Bulgaria
3. Sharr – Kosovo
4. Usje – North Macedonia
5. Antea – Albania
Integrated cement plants
1. Alexandria
2. Beni Suef
Eastern Mediterranean
Integrated cement plant
1. Tokat
Cement grinding plant
2. Marmara
Turkey
1
North Macedonia
Albania
Kosovo
Serbia
Bulgaria
1
2
Egypt
2
Greece
1
3
4
2
3
4
5
2
1
Southeastern Europe
Principal
products/
activities
20
Quarries
6
Ready-mix
plants
1
Processed
engineered fuel
facility
5
Integrated
cement
plants
EBITDA
€96.2m
Revenue
€271.0m
Assets
€456.9m
Greece & Western Europe
Principal
products/
activities
3
Import
terminals
25
Quarries
28
Ready-mix
plants
1
Cement
grinding
plant
1
Dry mortar
plant
3
Integrated
cement plants
EBITDA
€17.2m
Revenue
€246.6m
Assets
€563.3m
Eastern Mediterranean
Principal products/activities
1
Cement
grinding
plant
14
Quarries
7
Ready-mix
plants
3
Integrated
cement plants
EBITDA
€-3.3m
Revenue
€151.7m
Assets
€484.8m
2
Processed
engineered fuel
facilities
2
Processed engineered
fuel facilities
TITAN Cement Group
Integrated Annual Report 2020
14
Delivering value for all
We draw on, transform and add to our capital resources to provide our products and services,
creating value¹ for all our stakeholders and contributing to the attainment of the UN Sustainable
Development Goals 2030.
to provide our products and services
Note: for terms denoted with (1)-(12) under 'Delivering value for all' please refer to the section ESG performance statements, under “2.1 Value Creation Core Indicators
Index".
Cement
Ready-mix
concrete
Aggregates
Dry mortars
Building
blocks
Fly ash
Products
we draw on our capital
Driven by our governing objective
Financial capital
We use our economic resources efficiently to
support our business growth and safeguard our
international competitiveness.
Intellectual capital
We use our R&D capabilities, our core
competence, and our deep knowledge of
the building materials industry to enhance
our offerings and further improve our
performance.
Social and Relationship capital
We engage with our stakeholders building
long-term relationships of trust and working
together in collaborative projects to make
a positive impact on society and local
communities.
Natural capital
We source materials responsibly, and we
preserve natural resources and biodiversity in
the areas where we operate. We contribute to
the circular economy by applying the principles
of “reduce, reuse, recycle, recover.”
Human capital
We value our people’s contribution,
continuously supporting their professional
development in an engaging, inclusive, and
collaborative working environment.
• Separation
technologies
• Alternative
fuel and
waste
management
solutions
Manufactured capital
We manufacture our products using best
available techniques in a network of 14
integrated and 3 cement grinding plants in 10
countries, as well as quarries, ready-mix plants,
and other production facilities, and we distribute
them reliably to our customers through
dedicated terminals.
Services
and Solutions
Production,
transportation,
distribution
of building
materials
Circular
economy
solutions:
Understanding
TITAN
Overview
15
Key Indicators Amounts Stakeholders SDGs 2030
Gross value added
2
€612.0m
Employees, customers,
suppliers, shareholders, and
investors
Net value added³
€472.4m
Employees, customers,
suppliers, shareholders and
investors
Total spend on suppliers, local,
national and international for
goods and services
⁴
€989.8m
Suppliers and contractors
Taxes to national and local
authorities⁵
€102.7m
Governments and
authorities (central
and local)
Payments in cash
to shareholders and
minorities⁶
€17.6m
Shareholders
Total spend on donations and
social engagement initiatives⁷
€2.1m
Communities, academia,
and educational and
environmental organizations,
civil society, and society at
large
Green investment⁸
€22.2m
Communities, society
at large
Alternative fuels
234,451
tons
Communities, governments
and authorities (central and
local), society at large
Salaries, (contributions to)
pensions, and social benefits,
including additional benefits
beyond those provided by law⁹
€312.2m
Employees and their
families, local
communities
Investments in training of
direct employees¹⁰
€0.5m
Employees and their families
Internships
251
interns
Employees and their families,
local communities, youth
Investments for Research and
Innovation
11
€10.5m
Employees, customers,
academia and society at
large
Capital expenditures
12
€84.3m
Employees, shareholders,
customers, local communities,
suppliers and contractors
contributing to the UN SDGs 2030
and create value for our stakeholders
TITAN Cement Group
Integrated Annual Report 2020
16
The steps we follow to conduct our materiality assessment are presented below:
Materiality assessment
and stakeholder engagement
We have established a robust materiality assessment process to address the expectations of our
stakeholders and pursue sustainable development. Through this process, we aim to build further
on our trusted relationships and create shared value.
TITAN’s approach to materiality assessment
Materiality assessment is an ongoing process that provides the
foundation for the implementation of our sustainability strategy.
A full cycle of materiality assessment has a duration of five years,
with materiality assessments at local level used as input for the
materiality assessment at Group level and vice versa. This is
our fourth materiality assessment cycle and the feedback that
we receive from our stakeholders through open and structured
communication will act as a compass for our continuous
improvement on all fronts.
In the new cycle that we launched in 2019, we upgraded,
harmonized, and further developed our materiality assessment
process across the Group, driven by our long-term commitment
to the ten principles of the UN Global Compact and using the
SASB Materiality Map® for our sector.
Ιn 2020, all TITAN business units reviewed and updated their
priorities, following the process designed by the Group. Areas
such as health and safety, environmental management, employee
development, sustainable supply chain, customer satisfaction,
climate and energy, and good governance remain at the top of the
list of material issues identified in most of the countries where we
operate.
Implementation
• Engage employees across the Group in
strategy implementation
Review and report
performance to stakeholders
• At Group level, we report our sustainability
performance to stakeholders annualy
10
dedicated materiality assessment workshops at both
Group and country level
300
TITAN Employees contributed to the outcome of the materiality
assessment process
1
34
191
managers and experts from TITAN business units and the
Group Corporate Centre participated at the materiality
assessment workshops
Target setting
• Determining our sustainability
focus areas and setting our ESG targets
2
Identification and prioritization
• Identify and prioritize material issues based on
the importance to our stakeholders and their
current or potential impact on the business
Understanding
TITAN
Overview
17
According to the Group Materiality Assessment outcomes, we will be addressing nine material issues grouped in four focus areas, all
underpinned by good governance, transparency and business ethics. The diagrams below illustrate how our material issues have evolved
since our last materiality assessment cycle, their prioritization and alignment with the UN SDGs 2030.
2015 – 19 material issues 2020 material issues 2020 focus areas
Future-ready business model
in a carbon-neutral world
Innovation with emphasis on
digitalization and de-carbonization
Safe and healthy working
environment
Continuous development of
our people
Diverse and inclusive
workplace
Positive local social,
economic, and environmental
impact
Resource efficiency, recycling,
and recovery, contributing to
the circular economy
Reliable and sustainable
supply chain
• Financial liquidity and
access to funding
• Climate change
• Social and political risks
and instability
• Health and safety
• People management and
development
• Environmental
management
• Sustainability of
communities
• Circular economy
Importance to stakeholders
Importance to TITAN
5
5
1
1
2
2
4
4
3
7
7
6
6
8
8
9
9
Materiality matrix Contributing to SDGs 2030
De-carbonization
and Digitalization
Positive local impact
Growth-enabling
work environment
Responsible sourcing
Good governance, transparency,
and business ethics
• Governance,
transparency, and
ethics
3
TITAN Cement Group
Integrated Annual Report 2020
18
ESG targets 2025 & beyond
Underscoring our enduring commitment to sustainability and value creation for all, we have set
our Environmental, Social and Governance (ESG) targets for 2025 and beyond, focusing on four
pillars defined as material by our stakeholders.
De-carbonization
and Digitalization
Growth-enabling
work environment
Focus areas
Addressing material issues
Targets 2025 and beyond
We will TRANSFORM
our business, focusing on
resilience, innovation and
on building solutions to
serve our customers more
efficiently as we move
towards a carbon-neutral,
digital world
Future-ready
business model
in a carbon
neutral world
Safe and
healthy working
environment
Diverse and
inclusive
workplace
Continuous
development of
our people
Innovation with
emphasis on
digitalization and
de-carbonization
• we will reduce our CO₂ emissions
1
by 2030, and will have our
targets validated by the Science Based Targets Initiative
(SBTi), as follows:
• Scope 1 emissions: we will reduce our net CO₂ emissions to
500kg/t cementitious products (-35% vs. 1990 level)
• Scope 2 emissions: we will reduce our CO₂ emissions to 32kg/t
cementitious products (-45% vs. 2020 level)
• we commit to drive down the CO₂ footprint of our operations
and products aspiring to deliver society with carbon-neutral
concrete by 2050
• we will monitor and independently verify our supply chain
(Scope 3) emissions
• we will increase our annual investment in Research &
Innovation to €20m
• we strive for zero fatalities and for an employee LTIFR
performance which consistently places us among the three
best in our peer group²
• we will implement initiatives addressing the physical,
mental, social and financial dimensions of wellbeing for our
employees, in all countries
• we commit that 1/3 of our BoD members will be women
• we will promote equal opportunities and inclusion and will
grow by 20% the participation of women in senior roles,
talent pools and new hires
• we will offer upskilling and reskilling opportunities to 100%
of our employees, especially in areas vital for sustainable
growth, such as health and safety, digitalization, and
de-carbonization
We will CULTIVATE
an inclusive culture with
equal opportunities for all our
people to grow professionally
within a safe and healthy
work environment
1
Scope 1: direct CO₂ emissions (net); Scope 2: indirect CO₂ emissions from electricity; Scope 3: indirect CO₂ emissions of the supply chain
² Peer group definition: Cemex, LafargeHolcim, Argos, HeidelbergCement, CRH, Cementir, Vicat, Buzzi
³Active wholly-owned sites
4
Production from our integrated clinker-cement plants
5
Key suppliers: critical suppliers according to GCCA Guidance for Sustainable Supply Chain management with a meaningful level of spend for TITAN
Understanding
TITAN
Overview
19
Positive
local impact
Responsible
sourcing
All underpinned by:
Good governance, transparency and business ethics
Focus areas
Addressing material issues
Targets 2025 and beyond
We will ENABLE
our business operations and
our people worldwide to
contribute to the prosperity
of our local communities with
respect to their social and
environmental concerns
Environmental
positive impact
Social
positive impact
Economic
positive impact
Resource
efficiency,
recycling and
recovery,
contributing to
circular economy
Reliable and
sustainable
supply chain
• we will sustain and further improve our strong
performance in cement production-related specific dust,
NOx and SOₓ emissions
• we will have quarry rehabilitation plans at 100% of our
sites
3
and will rehabilitate 25% of the affected areas
• we will have quarry biodiversity management plans at
100% of our sites
3
in high biodiversity value areas
• we will have community engagement plans that are
aligned with material issues for stakeholders and UN
SDGs 2030 at 100% of our key operations
• we will ensure that 2/3 of our total spend are directed to
local suppliers and communities
• we commit to a water consumption of 280lt/t Cementitious
Products and to covering 70% of our water demand with
recycled water
• we will have 85% of our production⁴ covered by ISO 50001 or
energy audits
• we will have 50% of our production⁴ covered by “Zero Waste
to Landfill” certification
• we will ensure that 70% of our key suppliers
5
meet TITAN
ESG supplier standards
We will EMPOWER
our business ecosystems to
incorporate sustainability
considerations in their
business decisions and
daily behaviors, while using
natural resources responsibly
TITAN Cement Group
Integrated Annual Report 2020
Performance
highlights
An overview of our Group’s overall
financial and ESG performance in 2020.
Understanding TITAN
20
Kamari cement plant, Greece
21
22
Financial performance
Earnings (EBITDA) growth and strong cash flow generation in a challenging year; resilient
markets and encouraging prospects
TITAN Cement Group delivered strong results in 2020, despite the
uncertainty caused by the COVID-19 pandemic. Group consolidated
revenue at €1,607.0 million was stable compared to the previous
year. Earnings Before Interest, Tax, Depreciation and Amortization
(EBITDA) posted a solid increase of 7.1% to €286.2 million. This was
the highest EBITDA recorded since 2010. Net Profit after Taxes and
minorities (NPAT) dropped to €1.5 million (vs. €50.9 million in 2019)
as a result of significant non-cash charges taken representing the
full write-off of the €46.6 million goodwill of TITAN Cement Egypt
and the derecognition of €17.3 million of accumulated deferred tax
assets, also in Egypt.
The impact of the COVID-19 pandemic on our Group was clearly
less severe than what was initially expected. Overall construction
activity escaped the full brunt of the downturn, being allowed to
continue as an essential activity in most of our operating countries.
Performance in 2020 was supported by resilient sales volumes
across most of our markets. In the US, sales were sustained at
high levels along all product lines. In Greece demand showed
further recovery. In Southeastern Europe performance was
robust, while Turkey posted strong domestic and export
growth and demand also improved in Brazil. Performance in
Egypt was disappointing due to the ongoing challenges of that
market. Pricing dynamics in most of our markets benefited
from resurgent levels of demand. The favorable energy cost
environment combined with successful management of the
Group’s cost base, enhanced profitability.
The strengthening of the euro in 2020 mainly against the US$ and
the Egyptian pound impacted results with FX losses of €13.2 million,
while net finance costs were significantly lower at €52.7 million
(€10.9 million lower than 2019).
2020 performance highlights
TITAN’s US Operations had a strong year. Cement, aggregates
and ready-mix sales were sustained at high levels. Cement block
sales volumes grew, benefitting from the growth of the housing
market while fly ash suffered due to lack of supply, as natural
gas continued to replace coal as fuel in the US power generation
industry. Overall, in US$ terms, 2020 revenue increased from
2019, reaching $1.07 billion. In euro terms, revenue declined by 1.5%
to €937.7 million and EBITDA reached €176.1 million, a decline of 1.8%
compared to 2019.
In Greece, 2020 was a year of improved performance. This was the
result of a combination of higher domestic cement sales volumes,
but lower clinker exports, increased operational efficiencies from
digital optimization projects, combined with lower fuel prices and
a notable increase in the use of alternative fuels. As such, total
revenue for Greece and Western Europe in 2020 increased by 0.7%
to €246.6 million while EBITDA increased by €5.3 million to €17.2
million.
In Southeastern Europe, the construction market, after an abrupt
slow down at the start of the pandemic, recovered to post a
net growth for the region in 2020, with a particularly strong
last quarter. Revenue increased to €271.0 million, supported by
pricing and domestic volumes, which more than compensated
for the reduction of exports from the region. Margins improved
substantially, thanks to a recovery from the previously low selling
prices and a significant reduction of fuel costs, on top of efficiency
improvements and cost containment measures. As a result,
EBITDA grew by 24.6% to €96.2 million.
Markets in the Eastern Mediterranean remained challenging
amidst a fragile economic environment. Pre-existing structural
market limitations in Egypt were further exacerbated by the
government’s imposition of a six-month suspension of building
licenses. Improved performance in Turkey, thanks to strong
growth of domestic demand and exports, partially mitigated
the region’s disappointing results. Total revenue reached €151.7
million, an increase of 1.0% year on year, while at EBITDA level,
the Group recorded a €3.3 million loss compared to losses of €1.2
million in 2019.
In our joint venture Cimento Apodi in Brazil, driven by increased
demand and prices, net profit attributable to the Group reached
€2.6 million compared to a €1.0 million loss in 2019.
Stronger sales volumes
Trends in domestic sales volumes were positive across most of
our markets. At Group level, volumes were higher across all lines of
products except fly ash, which suffered from supply constraints.
Following the restrictions on activity in the second quarter of the
year, construction activity rebounded once lockdown restrictions
were eased, testifying to the underlying resilience of market
fundamentals across geographies. Group cement sales increased
by 1% compared to 2019, reaching 17.1 million tons.
Ready-mix concrete sales increased by 3% in 2020, reaching
5.4 million m³ on the back of stronger sales in Greece,
Southeastern Europe, the Eastern Mediterranean and Brazil.
Aggregates' sales volumes increased by 5% year on year, reaching
20 million tons, mainly due to growth of the Greek market.
Aggregates' sales in the US, which is a key contributor in the
aggregates segment, remained stable at high levels.
2020 2019 +/-
Cement (million metric tons) 17.1 17.0 1%
Ready-Μix concrete (million m³) 5.4 5.2 3%
Aggregates (million metric tons) 20.0 19.1 5%
Understanding
TITAN
Performance
highlights
23
Robust increase of Operating Free Cash Flow
In 2020, the Group generated a strong operating free cash
flow that reached €225.3 million, an increase of €50.2 million
compared to 2019. Cash flow generation benefited from higher
EBITDA levels, tighter capital expenditure and contained working
capital requirements. Group capital expenditures during the year
amounted to €84.3 million compared to €109.3 million in 2019.
2020 2019
Operating free cash flow €225.3m €175.1m
Capital expenditure €84.3m €109.3m
Net debt at the year end €684.4m €839.6m
Deleveraging
Year-end net debt declined to €684.4 million (2019: €839.6
million), reflecting the strong operating cash generation. This
decline of €155.2 million in net debt contributed to a significant
improvement of the Net Debt/EBITDA ratio to improve to 2.35x as
defined by loan agreements.
The Group maintains ample cash and other liquidity sources. It
ended 2020 with a total liquidity of €503 million, comprising €206
million of cash and cash equivalents and €297 million of undrawn
committed credit facilities.
TITAN Group uses a variety of funding sources and debt
instruments to diversify its funding base and combines long-term
and short-term financing. At year end, 86% of Group debt was in
bonds, 8% in bank loans and 6% in lease liabilities. Gross debt as of
31 December 2020 came at €891 million.
In the prevailing environment of low interest rates, TITAN Group
took the opportunity to lower its finance costs and significantly
extend its debt profile. In July 2020, Titan Global Finance issued
€250 million notes, due in 2027, with an annual coupon of 2.75%.
The notes are traded on the Global Exchange Market (GEM), which
is the exchange-regulated market of Euronext Dublin. Pursuant
to a tender offer, the proceeds of the new issue were used to
purchase prior to maturity €109 million of the outstanding €300
million notes with coupon 3.50%, due June 2021. The remaining
proceeds were used for general corporate purposes, including
repayment of bank debt. The Group’s next important maturity
is in mid-2021 for the €163.5 million notes of the 2016 issue that
remained at the end of 2020 and, after that, in 2024 and 2027.
Outstanding bonds
ISIN
Amount
outstanding
Coupon Maturity
XS2199268470 250,000,000 2.75% 09/07/2027
XS1716212243 350,000,000 2.375% 16/11/2024
XS1429814830 163,458,000 3.50% 17/06/2021
Resolutions of the Board of Directors
• Return of capital: following the authorization granted to
the Board of Directors by the Extraordinary Meeting of the
Company's Shareholders on 13 May 2019, the Board of Directors
of Titan Cement International SA decided the return of capital
of €0.40 per share to all the Shareholders of the Company. All
shareholders who are recorded as shareholders on Thursday, 29
April 2021, at 12.00 midnight (CEST) (record date) will be entitled
to receive the capital return. Shareholders will receive the
payment of the capital return on Friday, 2 July 2021, through their
custodians, banks and securities brokers.
• Cancellation of own shares: the Board also decided the
cancellation of 4,122,393 own shares representing 5% of the
Company’s voting rights. The cancellation is expected to be
completed by the end of the second trimester, according to the
procedure provided by Belgian law.
0
50
100
150
200
250
300
350
400
224
33
9
358
4 3
13
247
<Dec'21
<Dec'22
<Dec'23
<Dec'24
<Dec'25
<Dec'26
<Dec'27
>Dec'27
37
24
9
4
6
163
348
247
18
5
5
4
3
13
Bank debt Leases Bond
Debt Maturity Profile (€m) as of 31 December 2020
TITAN Cement Group
Integrated Annual Report 2020
24
Equity market information
Titan Cement International S.A. (TCI) is committed to maintaining strong,
transparent long-term relationships of trust with the investment community
The share
2020 was the first full year of TCI’s listing on Euronext Brussels,
Euronext Paris and the Athens Exchange. TCI became the new
parent company of the TITAN Cement Group after the successful
outcome of a share exchange tender offer submitted to TITAN
Cement Company S.A. shareholders in 2019.
Titan Cement Company S.A. was founded in 1902 and its shares
had been listed on the Athens Exchange since 1912. In 2019
Euronext Brussels became the primary listing of TITAN Group. The
Group is also listed on Euronext Paris and the Athens Exchange.
The total number of TCI shares outstanding (including treasury
shares) is 82,447,868 shares.
In June 2020, TCI’s shares were included in the BEL Mid Cap Index.
In addition, TCI shares are also components of the BEL Industrials
and ATHEX Composite Indices and are also constituents of the
FTSE/ATHEX Large Cap and MSCI Greece Small Cap Index, as well
as the CAC All Shares and CAC Industrials. In February 2020, TCI’s
shares were excluded from the FTSE Developed Europe Small Cap
Index and from the MSCI Greece Index in May 2020.
Share evolution
In 2020, TCI’s share TITC closed the year at €13.86 on Euronext
and at €13.74 on the Athens Exchange, corresponding to a
decline of 27% year on year. Over the same period, the BEL Mid
cap Index and the ATHEX General Index, recorded decreases of
16% and 12%, respectively. As at 31 December 2020, TCI’s market
capitalization stood at €1.1 billion.
Liquidity and market making contracts
In order to maintain a satisfactory level of liquidity for its shares,
TCI has undertaken a liquidity provider agreement for its shares
traded on Euronext and a market maker agreement for its
shares traded on the Athens Exchange, both with local financial
institutions.
ESG investors
Since 2010, ΤΙΤΑΝ Cement Group has attained, and maintained,
the “Advanced” level reporter status in line with United Nations
Global Compact principles. Over the course of 2020, TCI, as a new
legal entity, was assessed for the first time with regards to its ESG
performance, achieving positive results. In May 2020, TCI received
an ESG Risk Rating of 28.6 by Sustainalytics and was assessed as
being at medium risk of experiencing material financial impacts
from ESG factors. The score places ΤΙΤΑΝ thirteenth out of 104
construction materials companies assessed by Sustainalytics. In
June, TCI received a rating of A (on a scale of AAA-CCC) in the MSCI
ESG Ratings assessment. In October, TCI received a rating of B+
by Refinitiv and was ranked ninth in the construction materials
sector across Europe and America. Moreover, 2020 marked our
inaugural response to the CDP climate change and water security
questionnaires.
Treasury shares
In March 2020, the Group activated its share buy-back program.
In total 786,278 shares, representing 0.95% of TCI’s share capital
were repurchased on Euronext Brussels and the Athens Stock
Exchange (ATHEX) for a total consideration €8.8 million.
Αs at 31 December 2020, Titan Cement International S.A. holds
321,225 own shares representing 0.39% of the Company’s
share capital and ΤΙΤΑΝ Cement Company S.A. (TITAN S.A.), a
direct subsidiary of TCI, holds 5,191,277 shares of the Company,
representing 6.30% of the Company’s voting rights.
Shareholder structure of TCI
The chart below represents the shareholder structure of the
Company as of 31 December 2020*
Symbols
Euronext ATHEX
Oasis TITC TITC
Reuters ticker TITC.BR TITC.PA
Bloomberg ticker TITC.BB TITC.GA
ISIN code: BE0974338700
More information for investors
There is comprehensive information on the TCI website regarding
regulatory announcements, the investor relations calendar, share
price analysis tools and quarterly financial results.
You can find us at: https://ir.titan-cement.com or contact us
directly at ir@titan-cement.com
E.D.Y.V.E.M. Public Company Ltd and
TCI founders acting in concert
35.68%
FMR LLC, FMR CO Inc, Fidelity Institutional
Asset Management Trust Company, FIAM
LLC
6.70%
Other 41.76%
Paul and Alexandra Canellopoulos
Foundation
9.56%
TITAN Cement Company S.A.
6.30%
*As notified by the above shareholders to the company on 23 July 2019, on 7 January 2020,
on 9 September 2020 and on 14 December 2020.
Understanding
TITAN
Performance
highlights
25
KPIs and 2020 targets
2020 performance
Related
SDGs
Absolute figures
(where applicable)
%
(where applicable)
Environmental
management
Specific net direct CO₂
emissions
20%
reduction comp.
to 1990 level*
674 kgCO₂/t
cementitious
product
13.4%
reduction comp. to 1990 level
12, 13, 17
Specific dust emissions
92%
reduction comp.
to 2003 level**
19.3
g/t clinker
94.8%
reduction comp. to 2003 level
Specific NOx emissions
53%
reduction
comp. to 2003 level**
1,282
g/t clinker
56.8%
reduction comp. to 2003 level
Specific SOx emissions
43%
reduction comp. to
2003 level**
253
g/t clinker
39.6%
reduction comp. to 2003 level
Specific water
consumption
40%
reduction comp. to
2003 level**
261
It/t cement
48.2%
reduction comp. to 2003 level
6, 11, 15, 17
Biodiversity and land
stewardship
100%
88%
Active wholly-owned sites with
quarry rehabilitation plans
90%
Active wholly-owned sites of high
biodiversity value with biodiversity
management plans
ISO 50001 coverage
50.0%
of clinker production
54.9%
of clinker production
7, 17
Occupational
health and
safety
Fatalities
0 3
3, 17
LTIs frequency rate
(employees)
To be in the top
quartile of WBSCD/
CSI members’
performance***
0.57
Social
engagement
All key operations with
Community Engagement
Plans related to material
issues and Group policies
14/14
operations by the end
of 2020
14/14
3, 4, 9,
11, 17
Implementation of
engagement plans at all
key operations
100%
by the end of 2020
100%
by the end of 2020
Performance towards our 2020
sustainability targets
Our 2020 sustainability targets have provided us with a roadmap to address our main impacts,
monitor our performance, and tackle global challenges. Moving forward, we will build on our good
results to achieve our ESG targets for 2025 and beyond (see pg. 18), in alignment with our material
issues and the UN SDGs 2030. See below what we have achieved during the last five years.
*1990 is the base year for CO₂ emissions, in line with the Kyoto Protocol.
**2003 is the base year for all other environmental performance indicators.
***As of 31 December 2018, the work and activities of WBCSD/CSI were carried out by the GCCA.
ESG performance
TITAN Cement Group
Integrated Annual Report 2020
26
29.3 million t
Avoided (direct net)
CO₂ emissions
(1990-2020)
Specific net direct CO₂ emissions (Scope 1)
Alternative fuel substitution rate
60,700 t
Avoided dust emissions
(2003-2020)
32.5 million m
3
Avoided water consumption
(2003-2020)
13.1%
Alternative fuel
substitution rate
€22.2 million €
Green investments
Environmental performance
Climate change mitigation through alternative fuels
Recognizing the high energy and carbon intensity of cement
making, we actively engage in the global collective effort
toward a carbon-neutral future. We are committed to the
COP21 Paris global goal of keeping the increase in global
temperature to well below 2°C compared to pre-industrial
levels, and the relevant UN Sustainable Development Goals
2030. We support the European Green Deal vision of carbon
neutrality by 2050 and endorse the Global Cement and
Concrete Association (GCCA) 2050 Climate Ambition to deliver
society with carbon-neutral concrete by 2050.
In 2020, our net CO₂ emissions reached 674kgCO₂/t cementitious
product, declining by 13.4% compared to 1990 levels.
We inaugurated a new processing line for alternative fuels at
the Pennsuco cement plant in Florida, USA, and upgraded our
alternative fuels feeding installations in several of our cement
plants in Europe. The Thessaloniki cement plant in Greece
extended its environmental permit to facilitate the use of Solid
Recovered Fuel/Refuse Derived Fuel (SRF/RDF) from municipal
solid waste (MSW), while in Bulgaria and the USA, our plants
installed equipment, which enables the utilization of natural
gas, thereby reducing their carbon footprint. During the last
five years, our alternative fuels substitution rate has increased
by 56%. In 2020, it decreased slightly, mainly due to the limited
availability of suitable streams and delays in obtaining permits in
some of the regions where we operate.
We were recognized as a Key Innovator by the European
Commission in its Innovation Radar for our contribution to the
RECODE research project, which involves the installation of a pilot
unit at Kamari cement plant in Greece for the capture of CO₂ and
its conversion to value-added chemicals.
Responding to society’s needs for sustainable construction, we
expanded our product portfolio to include significant volumes
of low-carbon cement and concrete. Our less carbon-intensive
Type IL cement already enjoys good market penetration in the
USA, while in Greece, we have obtained all the necessary cement
certifications to facilitate this transition.
In 2020, we continued to invest in innovation, having our first
world patent published, on a novel method to produce nanosized
particles of clinker, which can be used to manufacture added-
value, high-performance construction products, in addition to
valorising low-grade minerals and industrial by-products.
As energy management is integral to the sector’s de-carbonization
roadmap, we are systematically monitoring energy consumption
and expanding the use of energy efficiency management systems.
The Pennsuco cement plant in Florida, USA, received its ISO
We are actively participating in the de-carbonization of the construction value chain,
contributing to the global effort toward a carbon-neutral future. Seeking to drive down the
carbon footprint of our operations worldwide, we are investing in innovation for new products
and processes. We continuously improve our environmental performance through the
adoption of best available technologies and the implementation of effective environmental
management systems, water and biodiversity management plans.
Kg/t cementitious product
2016 2017 2018 2019 2020
674.0
676.6
686.1
700.3
701.4
670
620
720
0
5
10
15
Thermal substitution rate (%)
2016
2017
2018
2019
2020
13.1
13.5
8.9
8.4
12.0
ESG performance
Understanding
TITAN
Performance
highlights
27
Alternative raw materials use
(as a percentage of total raw materials consumed)
Specific NO
X
emissions
Environmental expenditures across all activities
(5-years cumulative)
% Dry basis
2
4
6
8
2016
2017
2018
2019
2020
6.4
7.1
5.5
5.4
5.1
50001 certification. Our clinker capacity covered by ISO 50001 now
represents 54.9% of our total clinker production, thus exceeding
the 50.0% target that we had set for 2020.
Contributing to the circular economy
We are committed to the principles of the circular economy,
which encourage waste minimization, reuse, recycling, or recovery
in order to preserve the world’s natural resources, reduce CO₂
emissions, and manage waste efficiently.
In 2020, we continued to implement programs to collect ready-
mix concrete waste and returns for use as alternative raw
materials in the production of clinker, cement, concrete, and
concrete blocks, and as aggregates for pavements and other
applications. The percentage of concrete returns diverted from
landfills stood consistently over 85% in the last five years, reaching
90% in 2020. Furthermore, the Pennsuco Cement Complex
became the first cement plant in the world to be Total Resource
Use and Efficiency (TRUE) Platinum certified for zero waste.
The use of alternative raw materials in the production of
clinker and cement slightly decreased in 2020 to 6.4% of total
consumption, mainly due to the unavailability of such alternative
sources in the countries and markets where the Group operates,
as well as market demands and regulatory restrictions.
Mitigating our environmental impact
The majority of our cement plants are certified to the latest
version of ISO 14001, the international standard that specifies
the requirements for an effective environmental management
system, while all are aligned with local and federal regulatory
requirements.
Dust and NOx emissions from our kilns were reduced in the last
five years by 19% and 25%, respectively.
In collaboration with local universities, air emission dispersion
studies are conducted, where needed, to ensure a high level of air
quality in the local communities where we operate.
To improve transparency, a new online platform was launched in
Greece, making daily air emission data from our cement plants
publicly available. Similar initiatives exist in other regions where
we operate.
We have developed biodiversity management plans at nine out of
the ten sites that have been identified as areas of high biodiversity
value, using the Integrated Biodiversity Assessment Tool (IBAT).
In 2020, we updated the biodiversity risk assessments for all
our sites. In total, four new sites (three of them being under
full management control of TITAN) are recognized as being in
proximity to (or part of) areas of high biodiversity value and will
be further assessed for their biodiversity baseline conditions.
We contributed to the formulation of the GCCA policy document
“A Commitment to Biodiversity by the Cement and Concrete
Industry” and joined CSR Europe’s Biodiversity and Industry
Platform.
Our long-term initiatives and investments in water management
facilities and systems have resulted in a substantial reduction in
water consumption to 261lt per ton of cement, well below the
target we had set for 2020.
g/t
Clinker
1.000
1.100
1.200
1.300
1.400
1.500
1.600
1.700
1.800
2016
2017
2018
2019
2020
1.282
1.269
1.307
1.345
1.709
Million €
0
20
40
60
80
100
120
140
160
180
2016
2017
2018
2019
2020
53.5
81.1
110.2
136.8
159.0
TITAN Cement Group
Integrated Annual Report 2020
28
Social performance
A robust response to COVID-19
Safeguarding our people and operations against COVID-19 was a
top priority in 2020. In close cooperation with medical experts,
we implemented action plans at all sites, putting an emphasis on
frequent and open communication. We promoted remote working,
while numerous protective measures were taken for people
working on-site. At the same time, we stood by our neighboring
communities and acted to help local partners and contractors to
sustain their business.
Committed to health and safety
We envisage a work environment that ensures the health and
safety of all employees, contractors, customers, and neighboring
communities. To this end, we are continually striving to improve
our health and safety performance through training and
engagement.
Our efforts in 2020 concentrated on further improving risk
assessment procedures. We maintained an active presence on
all sites in spite of the pandemic, utilizing also camera-enabled
remote audits. The employee Frequency of Lost Time Incidents
(LTIFR) per million worked hours was reduced from 1.44 in 2019 to
0.57, the lowest value recorded since 2013. Regrettably, despite
this improvement, there were two contractor fatalities during the
year – one in Kosovo and one in Egypt – and one employee fatality
in a driving accident in the USA.
Bolstering diversity and inclusion
Our sustainable growth relies on the caliber, behavior, and
involvement of our people. Our vision is to ensure an emotionally
and mentally engaged workforce, as stated in our People
Management Framework.
Group and country action plans were developed to address the
results of the 2019 Employee Engagement Survey. The action
plans were derived following in-depth analysis of the aggregated
responses to the survey questions, as well as a series of interviews
and deep dives in diverse employee focus groups.
We support equality, diversity and inclusion and are committed
to providing equal access and remove biases in our operations.
A comprehensive action plan to improve diversity and inclusion
across the Group was drawn up, based on feedback from a number
of focus groups and interviews. Our Group Code of Conduct, and
Human Rights and CSR policies were updated to incorporate
clearer references to diversity and inclusion. In Titan America,
unconscious bias education was mandated for all people managers
and two new Employee Resource Groups were launched – one
supporting our Black and African American community and one
supporting our LGBTQ+ community.
We are committed to cultivating a healthy and safe work environment, enabling our people
to develop new skills and to grow professionally. We aspire to generate a positive impact
for our local communities, supporting their socio-economic development and promoting
sustainable practices across our value chain.
0
0.5
1
1.5
2
2.5
2016
2017
2018
2019
2020
0.57
1.44
1.54
2.41
1.92
Employee Lost Time Injuries Frequency Rate (LTIFR)
Employee Lost Time Injuries Severity Rate
0
20
40
60
80
100
120
2016
2017
2018
2019
2020
21.5
57.4
55.7
109.0
78.2
ESG performance
Understanding
TITAN
Performance
highlights
29
A holistic approach to wellbeing
Our new TITAN Health and Wellbeing framework covers the
four key dimensions of health and wellbeing – physical, mental,
social, and financial – and reflects the importance of following an
integrated, holistic approach. Our Employee Assistance Program
(EAP), a consulting support service that offers expert advice on
personal, family, or work-related issues to employees and their
families, has been extended to all countries to enhance the mental
and emotional health and wellbeing of our people.
An ethical work culture
We introduced our Whistleblowing Policy in 2020, which
encourages employees to report possible misconduct, fraud, or
abuse. In parallel, the TITAN Group reporting platform EthicsPoint®
was launched to provide a globally available digital tool enabling
the confidential reporting of any concern and ensuring its quick
and effective handling, fostering our culture of integrity and
ethical conduct.
Growing our communities
Supporting our local communities, where our operations have
direct and indirect economic, social and environmental impacts,
and contributing to their sustainable development is integral to
our corporate philosophy.
In 2020, we launched a dedicated Group e-platform to record
and evaluate our community initiatives and actions, in an
effort to ensure their alignment with the material issues of our
stakeholders.
In all countries, community outreach programs have yielded
positive long-term results. The “For My Kosjeric” program
offered by Kosjeric cement plant in Serbia was recognized by
external stakeholders as a best practice example of empowering
local communities to meet their own objectives. Through the
ReGeneration Academy for Digital Acceleration, a program
that we developed in partnership with local service providers
aiming to help reverse the brain drain in Greece, we trained 24
young graduates in data science and assisted them in finding
employment.
Employees from local communities - Group average (%)
The percentage of employees from local communities remained
high, at 83% and, despite the challenges posed by the pandemic,
we continued to support youth employment, offering 251
internships in 2020.
75%
80%
85%
2016
2017
2018
2019
2020
83
83
81
80
81
Sustainable supply chain
We support sustainable practices across our value chain,
recognizing that a dependable and sustainable supply chain can
contribute to the creation of a net positive environmental, social
and economic impact.
In 2020, we continued our Group Procurement transformation
program, the goals of which are to improve procurement
efficiency and enhance the sustainability of our global
procurement categories. Meanwhile, we continued our review
of the prequalification process for our suppliers to include a
broader sustainability assessment.
TITAN Cement Group
Integrated Annual Report 2020
30
Corporate governance and risk management
Legal structure of Titan Cement International S.A.
Titan Cement International S.A. (TITAN or the Company) is a public
limited liability company (société anonyme) incorporated under
Belgian Law. Its shares are listed on the regulated markets of
Euronext Brussels, Euronext Paris, and the Athens Exchange. The
seat of the management of the Company is in Cyprus.
Governance structure
TITAN has a one-tier governance structure, consisting of the Board
of Directors, which is authorized to carry out all actions that are
necessary or useful to achieve the company's purpose, except for
those, which only the General Meeting of Shareholders is legally
authorized to carry out. At least once every five years, the Board
of Directors reviews whether the chosen governance structure
remains appropriate.
Board of Directors
The Company’s Board is currently composed of 14 directors. The
Board members have high-level, diverse, and complementary
expertise and significant experience relevant to the main
challenges that TITAN is facing in its business environment and
key markets. The Board members bring their experience and
competence in areas such as finance, international investments,
corporate governance, and business management, as well as their
broader perspective on society and the world.
The Board’s role
Our Board, as a collegial body, pursues sustainable value creation
by setting the Company’s strategy, putting in place effective,
responsible, and ethical leadership, and monitoring the Company’s
performance. To effectively pursue such sustainable value
creation, the Board has developed an inclusive approach that
balances the legitimate interests and expectations of shareholders
and other stakeholders. The Board appoints the executive
management and constructively challenges the executive
management when appropriate.
Group Executive Committee
The Group Executive Committee, as appointed by the Board of
Directors, is composed of executive directors and senior managers
of the Company, heading the main regions and functions of the
Group.
The role of the Group Executive Committee is to facilitate the:
• cooperation and co-ordination between the Company’s
subsidiaries;
• supervision of the Group operations;
• monitoring of the Group management performance; and
• implementation of decisions and related accountability.
Restructuring of the Group Executive Committee
To further accelerate decision-making and organizational agility
in the context of the rapidly changing drivers of competitiveness,
primarily digital and carbon, the Board, in its meeting of 21 July
2020 approved a new organizational structure, effective as of
1 October 2020. The new Group Executive Committee consists
of the following individuals:
• Dimitri Papalexopoulos, Chairman of the Group Executive
Committee
• Alexandra Papalexopoulou, Deputy Chair of the Group
Executive Committee
• Michael Colakides, Group CFO, and Managing Director of TCI
• Bill Zarkalis, Group Chief Operating Officer, President and CEO
of Titan America LLC
• Yanni Paniaras, Group Executive Director Europe and
Sustainability
• Fokion Tasoulas, Group Innovation and Technology Director
• Christos Panagopoulos, Regional Director Eastern
Mediterranean
• Antonis Kyrkos, Group Transformation and Strategic Planning
Director
• John Kollas, Group Human Resources Director
• Leonidas Canellopoulos, Group Chief Sustainability Officer
Management Committee
The Management Committee is composed of the Managing
Director of the Company and other members appointed and
removed by the Board of Directors. Its main role is to support
the Managing Director in the day-to-day management of the
Company.
Through sound corporate governance, we aim to ensure that every management decision is
aligned with our purpose and core values, takes due account of sustainability considerations,
and is in the best interest of our stakeholders. By proactively identifying, assessing, and
managing all our potentially significant risks and opportunities, we prepare for issues that may
affect the long-term sustainability of our business and achieve our strategic objectives.
Performance
highlights
ESG performance
Understanding
TITAN
31
Titan Cement International S.A. Board of Directors:
4
100%
3/14
Directors
are female
8/14
Directors are
independent
9/14
Directors are
non-executive
Board attendance*
Different nationalities
represented on the Board
* In the Board meeting of 21/7/2020 only the non-executive directors, the
Managing Director and the Chairman of the Group Executive Committee were
invited to participate.
* Takis-Panagiotis Canellopoulos served as Executive Director until 19 March 2020
** Petros Sabatacakis served as independent Director until 19 March 2020
Efstratios-
Georgios (Takis)
Arapoglou
Kyriacos
Riris
Dimitri
Papalexopoulos
Michael
Colakides
Alexandra
Papalexopoulou
Bill
Zarkalis
Leonidas
Canellopoulos
Chairman
Chair of
Nomination
Committee
Vice-Chairman
Chair of Audit and
Risk Committee
Chairman of the
Group Executive
Committee
Managing
Director & Group
CFO
Deputy Chair
of the Group
Executive
Committee
Chief Operating
Officer
President and
CEO of Titan
America LLC
Chief
Sustainability
Officer
Non-executive
Director
Independent
Director
Executive
Director
Executive
Director
Executive
Director
Executive
Director
Executive
Director
William
Antholis
Andreas
Artemis
Harry
David
Stelios
Triantafyllides
Dimitris
Tsitsiragos
(since March 2020)
Maria
Vassalou
Mona
Zulficar
Member of
Remuneration
Committee
Member of
Nomination
Committee
Member of
Audit and Risk
Committee
Member of
Remuneration
Committee
Member of
Audit and Risk
Committee
Member of
Nomination
Committee
Chair of
Remuneration
Committee
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Board committees
The Board, in order to discharge its duties effectively and
efficiently, has set up specialized committees to analyze specific
issues and advise it. Without prejudice to its right to set up other
committees, the Board has established the:
• Audit and Risk Committee, entirely comprised of independent
directors;
• Remuneration Committee, entirely comprised of independent
directors;
• Nomination Committee, comprising two independent directors
and chaired by the Chairman of the Board, who is a non-
executive director.
The Board ensures that each committee, as a whole, has a
balanced composition and has the necessary independence,
skills, knowledge, experience, and capacity to execute its duties
effectively.
TITAN Cement Group
Integrated Annual Report 2020
32
Embedding sustainability
Sustainability is a top priority for our company. It is embedded
firmly in our strategy through the regular review of all issues that
are material to our stakeholders, the definition of appropriate
actions and targets, and the adherence to environmental, social
and governance policies. Our two governance bodies, the Board
of Directors and the Group Executive Committee, oversee the
implementation of our strategy and sustainability imperatives
and reflect the culture of transparency and collaboration that is
prevalent across the Group.
Our company is committed to achieving a reduction of net direct
CO₂ emissions from 674 to 500kg/t cementitious product by 2030.
This target is in line with limiting global warming to well below
2
o
C compared to pre-industrial levels, and will be verified by the
Science Based Targets Initiative (SBTi). To this effect, a three-year
CO₂ target that is compatible with the path to 500kg CO₂ per ton of
cementitious product is included in the performance objectives of
the deferred compensation incentive for executive members of the
Board and the members of the Executive Committee.
The former Group CSR Department was expanded to reflect
the broader focus of our company and our stakeholders on
Environmental, Social, and Governance (ESG) issues, while a
new Group De-carbonization team was established, reporting
directly to the Chief Sustainability Officer. To increase the level
of assurance, ensure manage compliance and prevent fraud, and
corruption issues, the Group Compliance and Anti-Fraud function
was established as part of the Group Internal Audit, Risk and
Compliance Department, reporting to the Group Audit and Risk
Committee.
Board of Directors: sets overall sustainability strategy and makes policy decisions. The Chief Sustainability Officer
is a member of the Board.
Executive Committee (ExCom)
Executive Director Sustainability
Chief Sustainability Officer
Executive Sustainability
Committee (ExCom
Sustainability)
Group Environmental,
Social & Governance (ESG)
Performance Dpt.
Sustainability Working
Group (SWG)
ESG Performance
Network
ExCom Sustainability Committee
Chair: Chairman of the Group Executive Committee
Convener: Chief Sustainability Officer
The purpose of this Committee is to strengthen and support the
management’s long-term approach in addressing environmental,
social, and governance issues and to monitor the implementation of
the sustainability strategy set by the Board. In particular, its role is to
• oversee and monitor the implementation of the Company’s
sustainability strategy,
• monitor performance vs. the targets set and
• decide on corrective actions, review and revise the areas of focus,
set appropriate targets, and review the corporate materiality
assessment.
Sustainability Working Group
Chair: Chief Sustainability Officer
Convener: Group ESG Performance Director
The Sustainability Working Group (SWG) consists of one Senior
advisor to the Board, three ExCom Members, two Regional
Directors and the Investor Relations Director. The SWG is
responsible for supporting the co-ordination of the Group
Sustainability Agenda and the relevant decision-making at both
Group and regional level. The main tasks of the SWG are to
• develop and present specific proposals related to the Group
Sustainability Agenda,
• facilitate internal communication,
• coordinate TITAN’s engagement efforts with international and
industry rganizations, networks, and initiatives, and
• provide guidance to TITAN’s business units.
Group ESG performance department
The role of the Group ESG Performance department is to
consolidate, coordinate, and monitor the sustainability actions
undertaken across the Group, ensuring that we collectively deliver
the best possible results against well-defined ESG criteria.
TITAN's sustainability governance structure
Understanding
TITAN
Performance
highlights
33
SR1 Climate Change &
GHGE
SR2 Industry Cyclicality
SR3 Local Market
Conditions and
Prospects
SR4 Geopolitical Risk
SR5 Global Systemic
Disruption
SR6 Acquisitions/
Investments/
Divestments
SR7 Key (top level)
Management
OR1 Energy Costs
OR2 Cybersecurity
OR3 Extreme Natural
Events
OR4 Supply Chain
Disruption
OR5 Product Quality/
Product Failure
OR6 Litigation
ESG1 Health & Safety
ESG2 License to Operate/
Access to Key
Materials
ESG3 Risk Related to the
Environment
ESG4 Human Resources,
Diversity & Inclusion
ESG5 Corruption/Fraud
ESG6 Regulatory and
Compliance Risk
ESG7 Governance,
Transparency &
Ethics
FR1 Foreign Currency
Risk
FR2 Goodwill Impairment
Risk
FR3 Taxation Risk
FR4 Customer Credit Risk
FR5 Liquidity Risk
FR6 Interest Rate Risk
FR7 Counterparty Risk
Risk management
Risk identification and assessment are an integral part of our
management processes, helping to safeguard the long-term
sustainability of our business. Risks are addressed on a day-to-
day basis by the Group’s management at various levels in the
organization according to the nature of each risk. The Board has
the overall responsibility for determining the nature and extent
of the principal risks that the Company is willing to assume
in achieving the strategic objectives of the Group, while the
responsibility for monitoring the effectiveness of the Group’s risk
management and internal control systems is delegated by the
Board to the Audit and Risk Committee. TITAN’s risk management
framework is presented below.
Risk Management
Centrally-led Hybrid BU-led
Risks
covered
Strategic, e.g.:
• Climate change mitigation and
adaptation
• Industry cyclicality
• Market conditions
• Political and economic uncertainty
• Global systemic disruption including
COVID-19 pandemic risk
Financial - in particular:
• Treasury
• Liquidity
Environmental, Social and Governance (ESG):
• Health and safety
• Risks related to the environment
• Human Resources, Diversity & Inclusion
• Regulatory compliance risk
Operational risks:
• Production cost
• Risks arising from business interruption,
including as a result of natural disasters
• Cybersecurity risks
• Supply Chain Disruptio
Most operational/
ESG risks
Risk
Management
approach
• Executive Committee
• Capex Committee
• Group Finance
• Other Group functions
• Group HR processes
• Business Units (BU)
• Higher central oversight vs. BU-led risks
• BU management as
part of day-to-day
operations
• Embedded into
business processes
TITAN is active in a diverse geographical, business, and operational landscape. This results in a multitude of potential risk exposures,
including strategic, financial, sustainability (ESG) and operational risks. Risks are categorized using established risk taxonomies relevant
to the Group’s business and are assessed in terms of probability, impact, and preparedness, in line with industry best practices.
Internal Audit, Risk and Compliance Unit and Audit and Risk Committee
The list of the Group’s main risks and the respective probability vs. impact heat map is presented below:
0
1
2
3
4
5
SR1
SR5
SR7
FR6
FR5
SR2
Probability
Impact
Strategic Financial
ESG Operational
FR7
ESG7
ESG5
ESG6
OR6
OR4
OR5
SR6
ESG4
FR4
ESG3
OR3
ESG2
OR1
FR3
OR2
ESG1
FR2
SR4
SR3
FR1
0 1 2 3 4 5
0 1 2 3 4 5
SR1
SR5
SR3
SR7
SR6
FR4
ESG3
ESG5
ESG7
ESG6
ESG1
ESG4
FR2
FR1
FR3
FR6
FR5
SR4
SR2
OR1
OR2
OR4
OR6
OR3
OR5
ESG2
TITAN Cement Group
Integrated Annual Report 2020
34
Regional performance
USA
2
Integrated
cement
plants
8
Quarries
3
Import
terminals
82
Ready-
mix
plants
7
Concrete
block
plants
5*
Fly ash
processing
plants
Operational Units
Principal Products/Activities
Cement
Ready-mix
concrete
Aggregates
2020 Performance highlights
Despite the disruptions caused by
the pandemic, Titan America was able
to deliver consistent results for 2020.
In a year of economic volatility, construction
activity escaped the full brunt of the
downturn in the US.
Revenue
€937.7m
(2019: €952.0m)
EBITDA
€176.1m
(2019:€179.3m)
Total assets
€1,095.8m
(2019: €1,106.2m)
Roanoke cement plant, USA
Building
blocks
Fly ash
Market overview
COVID-19 caused 2020 to be the first year of contraction
after a decade of economic expansion. Real GDP dropped
31% in Q2 as economic shutdowns hit the US. After a strong
rebound in the second half of the year, 2020 full year real GDP
decreased 3.5%. Decreases in personal consumption and non-
residential investment were the biggest drivers of the real GDP
contraction, but were partially offset by increases in federal
government spending and residential fixed investment. Inflation
remained below target despite liberal monetary policy. The US
unemployment rate was at 6.7% in December 2020, marking a
recovery from the peak April unemployment rate of 14.8%.
Construction spending in the USA increased by 4.7% to $1.43
trillion. US residential construction spending increased by 11.6% in
2020, driven by a strong single-family housing market which was
boosted by low interest rates and migration trends from densely
populated areas to the suburbs. US public construction grew by
4.8%, but private non-residential construction spending decreased
by 3.0%. 2020 US cement consumption increased by 1.9% to
105 million metric tons.
Regional performance
TITAN’s US Operations had a strong year. Our markets
demonstrated resilience as the construction industry managed
to respond effectively with mitigation protocols that largely
enabled construction to continue as an essential activity. Cement,
aggregates and ready-mix sales were sustained at high levels. Block
sales volumes grew, benefitting from the growth of the housing
market while fly ash suffered from supply constraints. Overall,
in US$ terms 2020 revenue increased from 2019, reaching $1.07
billion. In euro terms, revenue declined by 1.5% to €937.7 million.
Active quarry sites with
biodiversity
management plans:
3
(2019: 3)
Integrated cement plants with
certified Energy Management
Systems (ISO 50001 or equivalent):
100%
(2019: 37%)
LTIFR (employees):
0.39
(2019:1.30)
Employees:
2,307
(2019:2,307)
*1 facility in Canada is included
Performance
highlights
Understanding
TITAN
35
Titan America is taking a holistic
approach to applying environmental
and energy improvements at every
stage of its operations. In collaboration
with universities and local utilities, as
well as with the involvement of key
stakeholders, it is addressing the needs
of energy conservation and climate
change throughout the manufacturing
and distribution of its products.
In partnership with the Georgia Institute
of Technology, TITAN has created
a world-class energy management
system and now boasts the only two
ISO 50001-certified cement plants in
the USA. Utilizing artificial intelligence
models to maximize efficiencies, the
plants have increased the use of lower-
emission fuels such as natural gas and
alternative fuels. The Pennsuco plant
now produces its own kiln fuel at a new
Processed Engineered Fuel (PEF) facility,
which will offset the plant’s existing
fossil fuel usage by up to 30% while
diverting municipal waste from landfill.
Titan America has also set annual
targets to reduce the environmental
impact of manufacturing by reducing
the clinker required for cement
production.
Changes in the US energy market have
resulted in a significant reduction
in the production of fly ash while
decades of coal use in the electricity
industry have produced large landfills
of fly ash. Addressing this shortage
of freshly available alternative raw
materials, Separation Technologwies,
a TITAN company, operates a pilot
reclamation plant where landfilled fly
ash is excavated and processed into a
consistent, high-quality alternative raw
material for the concrete industry –
ProAsh®. As it lessens the quantity of
cement in concrete, the use of ProAsh®
reduces the CO₂ generated in cement
manufacturing.
A holistic approach to climate change mitigation and energy efficiency
EBITDA reached €176.1 million, a decline of 1.8% compared to
2019. TITAN America’s performance was buoyed by the successful
implementation of cost saving initiatives, improved energy costs
and cash flow preservation initiatives.
Florida
Florida benefitted from increased housing demand, with TITAN
markets outside of South Florida demonstrating notable growth.
However, this was offset by a downturn in non-residential
construction, which was harmed by struggling tourism and service
industries. Overall, 2020 cement consumption in Florida grew 1.0%
to 8.1 million metric tons.
Virginia, and the Carolinas
Cement consumption in Virginia increased by 4.8% to 2.1 million
metric tons, while North Carolina’s consumption increased 2.9%
to 3.0 million metric tons. Solid first and fourth quarters drove
strong results for the region, boosted by favorable weather, strong
residential demand, and cement intensive public works projects.
Business performance improved, driven by increased volumes and
improved production costs.
New York/Metro
Cement consumption in the New York Metropolitan area declined
4.2% to 1.8 million metric tons as New York was the first coronavirus
epicenter and had the worst economic impact. Essex cement
responded well and remained a strong player in the market.
ESG Performance
Protecting the health and wellbeing of our people and local
communities from COVID-19 was a top priority throughout 2020.
Relevant initiatives ranged from providing emergency sick and
quarantine pay to issuing new safe-working protocols, setting up
telehealth services, and offering an employee assistance program
(EAP), a consulting support service for employees and their
families. Lost time and recordable incidents reached historical
lows. Despite the pandemic, we were able to continue to hire,
onboard, and train employees at rates similar to previous years,
in preparation for our next phase of growth. Titan America has
continued to improve its operational sustainability and carbon
footprint, switching partially to natural gas, systematically
monitoring energy consumption, and marketing cement with a
high limestone content. In 2020, the Pennsuco Cement Complex
became the first cement plant in the world to be Total Resource
Use and Efficiency (TRUE) Platinum certified for zero waste. In
addition, Roanoke was awarded the 2020 Outreach Award by the
Portland Cement Association in recognition of its community
engagement efforts.
SDGs related to regional material issues:
TITAN Cement Group
Integrated Annual Report 2020
36
Regional performance
Greece and Western Europe
3
Integrated
cement
plants
2
Processed engineered fuel facilities
1
Cement
grinding
plant
3
Import
terminals
28
Ready-
mix
plants
25
Quarries
1
Dry mortar
plant
Operational Units
Principal Products/Activities
Cement
Ready-mix
concrete
Aggregates
2020 Performance highlights
Revenue
€246.6m
(2019: €244.9m)
EBITDA
€17.2m
(2019: €11.9m)
Total assets
€563.3m
(2019: €534.6m)
Dry
mortars
COVID-resilience and significant demand
growth resulted in improved performance.
Thessaloniki cement plant, Greece
Market overview
Demand posted significant growth in 2020, mainly driven by
buoyant activity levels across numerous public and municipal
infrastructure projects. Large-scale infrastructure projects on
the other hand, have yet to commence, but have completed the
tender award and contract signing phases. Growth continued
in residential construction, as well as wider real estate and
logistics projects following last year’s positive trends. The trend in
residential is set to continue with a significant increase in building
permits pointing to a continuing future increase in demand for
new buildings. Tourism activity, which started at the same strong
pace as in 2019 with investments in new facilities, experienced
a slowdown when the pandemic hit the sector hard. Cement
exports remained strong, with the USA representing Greece’s
biggest export market.
Regional performance
2020 was a year of improved performance in Greece. This was the
result of a combination of higher domestic cement sales volumes,
increased operational efficiencies from digital optimization
projects, lower fuel prices, and a notable increase in alternative
fuel utilization.
On the export front, the US remained strong, despite the
pandemic effect. Our import terminals in the UK, Italy and France
experienced disruptions in the early stages of the crisis, but
overall performed in line with the trends of their regional markets.
These conditions led to high cement exports for our plants and
high utilization rates. Clinker export sales dropped, due to lower
marginal profitability arising from CO₂ costs. Overall export
volumes recorded a small decline in 2020 and their profitability
was impacted by the unfavorable US$-euro exchange rate.
As such, total revenue for Greece and Western Europe in 2020
increased by 0.7% to €246.6 million while EBITDA increased by
€5.3 million to €17.2 million.
Active quarry sites with
biodiversity management plans:
5
(2019: 5)
Integrated cement plants with
certified Energy Management
Systems (ISO 50001 or equivalent):
100%
(2019: 100%)
LTIFR (employees):
0.49
(2019: 0.00)
Employees:
1,175
(2019: 1,172)
Local spend:
71.94%
(2019: 69.45%)
Performance
highlights
Understanding
TITAN
37
The Phenological Garden at TITAN
Greece’s Efkarpia cement plant is one of
three such gardens in Thessaloniki that
are used to study the role of urban green
assets in the adaptation of cities to
climate change and in the enhancement
of CO₂ capture potential. Operated by
the Aristotle University of Thessaloniki
as part of the European Union’s LIFE
CliVUT program, the 2,500m² garden has
been planted with 100 Mediterranean
trees and bushes using 20 different
species. The garden will be used for
research and educational purposes,
both during the program and after
its completion. For at least 10 years,
researchers will systematically record
data that will contribute to knowledge
about climate change, its effects and
their mitigation. The program also
includes educational activities for school
students and experiential participation
in the recording process.
Overall, the LIFE CliVUT program, which
will run in four EU cities until 2023,
involves the planting of 10,000 new
trees and shrubs in pilot areas and the
replacement of 8,000 existing trees and
shrubs with species with a high climate
performance. The project, which will
help shape the EU’s environmental and
climate policy, aims at a total annual
reduction in greenhouse gas emissions
of 168,000 tons and an increase in CO₂
storage in trees by about 42,000 tons.
Other anticipated benefits include
reducing energy consumption by 2,000
MW/year and air temperature by 4-5°C
in new urban green spaces.
A garden for the future
ESG Performance
In 2020, TITAN Greece achieved a notable improvement in the Lost
Time Injuries Frequency Rate (LTIFR), which dropped below one
for employees and contractors combined. Our Greek operations
received ISO 45001 certification, echoing our commitment to
enhance our safety performance.
We remain focused on reducing our carbon footprint and further
increased the use of alternative fuels at our plants. In addition,
we received a permit for additional streams of alternative fuels for
our plant in Thessaloniki (Efkarpia). Considering local community
needs for transparent and continuous communication, we
launched two separate microsites through which the public can
view our performance on air emissions on a daily basis and receive
information on co-processing.
From the onset of the COVID-19 pandemic, TITAN offered support
to employees, contractors, and local communities. We took action
to contain the spread of the virus, support hospitals and medical
staff, provide digital tools and equipment to own personnel and
school children, and assist customers, contractors, and vulnerable
groups.
SDGs related to regional material issues:
TITAN Cement Group
Integrated Annual Report 2020
38
Regional performance
Southeastern Europe
5
Integrated
cement
plants
20
Quarries
6
Ready-mix
plants
1
Processed
engineered
fuel facility
Operational Units
Waste management
and alternative fuel
Principal Products/Activities
Cement
Ready-mix
concrete
Aggregates
2020 Performance highlights
The construction market, after an abrupt
slow down at the start of the pandemic,
recovered to post a net growth for the
region in 2020, with a particularly strong
last quarter.
Revenue
€271.0m
(2019: €262.6m)
EBITDA
€96.2m
(2019: €77.2m)
Total assets
€456.9m
(2019: €483.4m)
Regional performance
Our markets proved resilient. Revenue increased to €271 million,
supported by pricing and domestic volumes, which covered
a reduction of exports from the region. Margins improved
substantially, thanks to a recovery from the previously low
prices and a large reduction of fuel costs, on top of efficiency
improvements and cost containment measures. As a result,
EBITDA grew by 24.6% to €96.2 million.
Our plants remained in operation throughout the pandemic, with
our efforts concentrated in protecting the health of our employees
and supporting the vulnerable in the communities around our
plants, through donations of medical supplies and equipment, as
well as the active engagement of our volunteers.
Albania
The Albanian economy recorded a GDP recession of ~6%. Private
construction continued with robust activity, boosting cement
demand by an estimated 10% compared to 2019, supported also by
activity following the November 2019 earthquake.
Bulgaria
Against the backdrop of a projected 5.1% reduction of Bulgaria’s
GDP, the construction market has shown some resilience with an
approximately 2-3% decline in cement demand. TITAN experienced
a slightly bigger decrease, due to the continuing increase of
imports to the country.
Usje cement plant, N. Macedonia
Employees from local
community:
64.13%
(2019: 65.43%)
Employees:
1,132
(2019: 1,157)
LTIFR (employees):
1.48
(2019: 2.80)
Local spend:
72.16%
(2019: 69.65%)
Performance
highlights
Understanding
TITAN
39
In Southeastern Europe, all TITAN
subsidiaries have established a track
record of publishing annual reports
focused on sustainability performance
in line with international and sectoral
standards and best practices. In
2020, the business units in Albania,
Bulgaria, North Macedonia, Kosovo,
and Serbia continued to facilitate
transparent and open communication
with local stakeholders. The annual
reports for 2019 were accompanied by
independent assurance in line with
TITAN’s reporting standards. Under
the assurance verification and for the
first time, the reports also succeeded
in meeting the UN Global Compact
Criteria on Advanced Level for their
Communication on Progress (COP)
according to the Ten Principles.
Enhancing our reporting standards
for the annual reports required
additional engagement of our local
teams. Finally, the elevated reporting
standards ensured consistency for
reporting on actions to support the
broader UN Goals under the SDGs
Agenda 2030. This effort builds
on TITAN’s strategy to enhance
our distinctive approach to social
engagement in each country where
we operate.
Elevating annual reports to international standards
Kosovo
The construction sector in Kosovo remained strong, with cement
demand stable, in spite of a drop of GDP by about 8%. The main
driver was residential construction. TITAN revenue increased,
thanks to firm pricing, with a small reduction in volumes. Costs
decreased, supported also by energy efficiency improvements
following the implementation of relevant investments.
North Macedonia
The GDP of North Macedonia declined by 5.1%. The NATO accession
and the start of negotiations for EU membership have helped
stability. The construction market showed particular resilience
with a solid performance recorded across market segments.
Serbia
The Serbian economy recorded a modest contraction of -1.5%.
Higher public infrastructure spending, combined with a surge
of private investment in real estate, resulted in the growth of
construction activity in the country and an increase in cement
demand by approximately 10%, for the second consecutive year. In
neighboring Montenegro, the main export market of our subsidiary
Kosjeric, the cement market continued to decline, primarily due to
the completion of a major highway project.
ESG Performance
During the COVID-19 pandemic, we stood by our local communities
in all countries where we operate in the region. In Albania, we
offered support to our neighboring communities that were heavily
affected by the 2019 earthquake and we continued our community
engagement, with programs such as “Hygiene in School,” “Safety
at Home,” “Back to School,” and “Supporting People with Special
Needs.” In Kosovo, we supported a special community project,
conducted in cooperation with Laboratory for the Activation
of Businesses (LAB), Helvetas, and other partners, that led to
the creation of 20 jobs in an area of high unemployment. In
addition, we contributed through the Kosovo CSR Network to the
#unitedforchildren, #backtoschool, and #generationunlimited
programs in collaboration with UNICEF.
With regards to the environment, we further decreased our CO₂
emissions in Bulgaria, expanding our alternative fuels utilization
capacity and securing additional local streams. In our cement plant
in Serbia, we put in operation two new bag filters in our cement
plant, where preparations are underway for the installation of a
latest-generation bag filter for the kiln and raw mill, which will
further improve the environmental footprint of our cement plant.
SDGs related to regional material issues:
TITAN Cement Group
Integrated Annual Report 2020
40
Eastern Mediterranean
Regional performance
3
Integrated
cement
plants
14
Quarries
1
Cement
grinding
plant
7
Ready-
mix
plants
Principal Products/Activities
Cement
Ready-mix
concrete
Aggregates
2020 Performance highlights
Amidst a fragile external economic
environment, conditions in the Eastern
Mediterranean region remained
challenging in 2020 owing to pre-existing
structural market limitations in Egypt,
partially counterbalanced by an improved
performance in Turkey.
Revenue
€151.7m
(2019: €150.3m)
EBITDA
€-3.3m
(2019 €-1.2m)
Total assets
€484.8m
(2019 €634.2m)
Alexandria cement plant, Egypt
Market overview
In Egypt, the impact of the COVID-19 crisis was less severe than
expected, with GDP recording a 3.6% increase in 2020. With
persistent oversupply, however, and a six-month ban on private
construction permits, cement consumption in the country
declined by an estimated 6.5%, reaching approximately 45.5 million
metric tons.
In Turkey, despite the sharp contraction in economic activity
witnessed in the first half of the year, the economy staged a
turnaround in the second half, resulting in a 0.5% GDP increase for
2020. This performance was also reflected in the cement market
which grew by 18% in 2020, reaching approximately 53 million
metric tons, yet still 25% below the peak levels of 2017.
Regional performance
In 2020, amidst market challenges and economic uncertainty,
the Eastern Mediterranean posted total revenue of €151.7 million
recording an increase of 1%, while at EBITDA level the Group
recorded a €3.3 million loss versus a €1.2m loss in 2019.
Following the acquisition of IFC’s minority stake in TITAN’s
Egyptian subsidiaries in 2019, our Egyptian subsidiary Alexandria
Portland Cement Company voluntarily delisted from the Egyptian
Exchange in 2020.
Performance
highlights
LTIFR (employees):
0.00
(2019: 2.04)
Employees:
745
(2019: 764)
Employees from local community:
88.86%
(2019: 87.96%)
Local spend:
85.95%
(2019: 80.07%)
Operational Units
Waste management
and alternative fuel
2
Processed
engineered
fuel facilities
Understanding
TITAN
41
Since 2014, TITAN Egypt has been working to improve living
conditions in Alexandria’s WEK district, in partnership with
the Sustainability Center for Development, a local NGO. To
date, it has invested EGP 6.3 million (€446,453) to raise the
capabilities of local organizations, improve local conditions,
support employment for women and young people, and
offer culture and entertainment. It has also contributed
to the renovation of a local elementary school and youth
play facilities. More recently, during the COVID-19 crisis,
it supported hygiene and disinfection activities in the
neighborhood and distributed protective equipment and
food to poor families. The partnership will continue for the
foreseeable future, improving the health and living conditions
of people in the neighborhood.
In a separate initiative in association with the Sehetna
Foundation, TITAN Egypt has provided EGP 7 million
Boosting the sustainability of local communities
Egypt
The cement industry in Egypt continued to suffer from oversupply.
Prices remained stagnant at low levels, wiping out profitability
at our Egyptian operations. The company, nevertheless,
continued to provide new and high-quality products, launching
innovative and environmentally friendly products during the
year. Moreover, the company continued its efforts towards
environmental amelioration, through the use of alternative fuels,
at both the Alexandria and the Beni Suef plants. The continuing
weak performance of our Egyptian operations necessitated a
reassessment of their carrying value which resulted to the write-
off of all related goodwill €46.6m and derecognition of €17.3m of
deferred tax assets.
Turkey
Adocim’s operations in Turkey followed the same positive trend
as the cement industry overall. Group sales capitalised on existing
demand from private housing and public infrastructure projects as
well as increased export activity. The depreciation of the Turkish
lira against the euro by 26.7% during the year, was not fully offset
by increases in domestic prices. Adocim benefited by high export
volumes, however, increasing its overall profitability for the year.
While production costs increased mainly due to higher fuel prices
owing to the Turkish lira’s depreciation, our subsidiary’s modern
asset base, competitive production cost and low gearing placed
it at an advantageous competitive position to mitigate these
challenges while satisfying market demand.
ESG Performance
Despite the pandemic, TITAN Turkey made a determined effort
to improve its environmental, health and safety, and community
engagement performance. While responding to COVID-19 was our
priority, online health and safety, personal development, and IT
training programs were offered to all employees. Furthermore,
Adocim focused on the wellbeing of its personnel by offering online
seminars and an employee assistance program (EAP). Continuous
audits contributed to the proactive prevention of hazards. The
effort to increase the use of alternative fuels to reduce our carbon
footprint continued. Moreover, we took significant steps to
optimize water consumption and recycle wastewater. In waste
management, our efforts to ensure separate collection were
acknowledged through the Zero Waste Certification.
In parallel, TITAN Egypt managed to maintain its performance
in regards to CO₂ emissions, water consumption, and waste
management, keeping its environmental footprint at a satisfactory
level. Through our partnerships with specialized NGOs and local
universities, we implemented projects to improve the living
and health conditions of local communities. TITAN experts
also participated in a digital development program to equip
undergraduate students with hard and soft skills.
SDGs related to regional material issues:
(€360,613) to a public hospital in Beni Suef for the purchase of
furniture and incubators and equipment for gynecology rooms,
pathology laboratories and intensive care units. The project
has proved invaluable during the pandemic.
TITAN Cement Group
Integrated Annual Report 2020
42
Regional performance
Joint venture in BrazilJoint venture in Brazil
Growth in demand for a second consecutive
year.
1
Integrated
cement
plant
3
Quarries
4
Ready-mix
plants
Operational Units
Principal
Products/Activities
1
Cement
grinding
plant
STET
ST Equipment & Technology LLC (STET), a wholly-owned
subsidiary of Titan America, is a designer, manufacturer and
marketer of proprietary separation equipment for dry powders. Its
patented technology is suited for the processing of dry powders
and recycling of waste streams in an innovative, environmentally
sustainable, and cost-effective manner, contributing to the circular
economy, both locally and globally.
Applications of the technology include the recycling of coal
combustion fly ash, water-free processing of industrial minerals,
and upgrading of plant-derived proteins for animal feed and human
food applications. In 2020, a new fly ash separator was delivered
for installation and commissioning at a US power station in 2021.
As coal fired power generation declines in the USA, STET has
focused on deploying its processing technology to recover fly ash
stored in landfills and impoundments. In 2020, STET successfully
commissioned its first reclaimed fly ash drying plant at the
Brunner Island Steam Electric Station in Pennsylvania, USA.
STET invests heavily in R&D to further develop its technology. In
2020, the company performed successful separation testing and
continued applications development on a variety of plant-based
food and animal feed ingredients including sunflower meal and
dried distillers’ grains, among other ingredients. In addition, STET
filed patents on electrostatic separation of distillers’ grain and fine
iron ores, iron ore tailings and bauxite ores.
GAEA
Green Alternative Energy Assets (GAEA) is a company that provides
services in waste utilization and alternative fuels production.
Established in 2011 in Bulgaria, GAEA has been recognized as
a reliable solutions provider in the Bulgarian waste market,
providing solutions to a wide range of manufacturing and recycling
industries in the country and actively contributing to the circular
economy. In 2020, GAEA continued its positive trajectory, enabling
the Zlatna Panega Cement plant to achieve an all-time record
thermal substitution rate.
GAEA has also expanded its operations in Egypt since 2016,
providing solutions for municipal solid waste to the municipalities
of Alexandria and Beni Suef and producing refuse-derived fuel for
the Group’s cement plants, thus reducing its carbon footprint.
Other business activities
Contributing to circular economy
Performance
highlights
Overview
Brazil was severely hit by COVID-19 and the restrictive measures
negatively impacted economic recovery. Nevertheless, the easing
of lockdown measures and the government’s stimulus packages,
allowed for a rapid rebound in cement consumption in the second
half of the year. Cement demand, mainly driven by the residential
and commercial sector, grew by 10.7% reaching 60.5 million tons.
This was the second consecutive year of growth.
Regional performance
Cement consumption in the north and northeast, the natural
market of Apodi, grew at a faster pace than the rest of Brazil. Apodi
increased its sales volumes at a rate higher than the national
average by continuing to penetrate the bulk segment, through a
focus on the pre-cast industry, the expansion of Fortaleza’s airport
and metro, restoration and expansion of roads, highways, dams
and water canals.
Driven by the increased demand, selling prices saw a significant
increase, enhancing the company’s profitability. Net profit
attributable to the TITAN Group reached €2.6 million compared to
the €1.0 million loss in 2019, despite a 33.6% y-o-y devaluation of
the Brazilian Real.
ESG performance
Our joint venture in Brazil continued to implement its long-term
community engagement plan, which focuses on quality education
and employment skills for local youth, entrepreneurship and women
empowerment, environmental awareness, social inclusion, and the
promotion of the UN SDGs in the business sector in collaboration
with Rede Brasil UN Global Compact. Furthermore, in 2020, Cimento
Apodi published its first Sustainability Report. More than 80 people
in the local community benefited from the Construir Saber Project of
the Social Service of Industry (SESI) and the community association
of Bom Sucesso. Cimento Apodi also contributed to the fight
against the pandemic through the provision of masks to vulnerable
residents and support to health agents.
Cement
Ready-mix
concrete
Understanding
TITAN
43
Outlook 2021
In the US, the effects of the pandemic are expected to ease in 2021
as vaccine distribution accelerates. Benefiting from a combination
of pent-up demand and an additional round of anticipated federal
fiscal stimulus, the US economy is poised to rebound sharply and
reach pre-pandemic levels. Titan America’s solid backlogs point to
continuing healthy activity levels and profitability.
In Greece, similar trends to those witnessed thus far should
continue in 2021. Housing-related construction together with
many peripheral infrastructure works such as highways, ports
in the wider periphery and projects in the Attica capital region,
supported by the existing financing mechanisms, should fuel
demand.
In Southeastern Europe, the region is expected to continue
performing solidly. Our cluster of operations, brings the benefits
of network effects to the Group, and across most of the regional
markets, the fundamentals of demand are in place to maintain
performance at high levels.
In Egypt, we anticipate an increase of cement consumption in a
market which faces structural issues and government’s actions
have so far exacerbated rather than contributed to a solution
of the problem. The country harbors very promising underlying
fundamentals for cement growth with a consistently positive GDP
growth, one of the highest birth rates in the region and a strong
trend of urbanization.
In Turkey, construction is anticipated to sustain its positive trend,
amidst an uncertain economic outlook. Due to the prevailing
economic situation, personal investments continue flowing
into real estate while infrastructure spending such as new
transportation projects, will support further growth in cement
consumption.
In Brazil, the National Union of Cement Industry expects that in
2021 cement demand will remain at the high level achieved in
2020.
TITAN Cement Group, underscoring its enduring commitment to
sustainability and value creation for all, released its Environmental,
Social and Governance (ESG) targets for 2025 and beyond. The
targets include an updated, more ambitious, CO₂ reduction goal for
2030 at -35% compared to 1990 levels, aligned with the vision of
the European Green Deal to achieve climate neutrality by 2050.
TITAN has set 20 targets that focus on four pillars, which are
defined as material by its stakeholders, all underpinned by good
governance, transparency and business ethics:
• De-carbonization and digitalization, aiming to transform our
business, focusing on resilience, innovation and on building
solutions to serve our customers more efficiently as we move
towards a carbon-neutral, digital world
• Growth-enabling work environment, aiming to cultivate an
inclusive culture with equal opportunities for all our people to
grow professionally within a safe and healthy work environment
• Positive local impact, aiming to enable our business operations
and our people worldwide to contribute to the prosperity of our
local communities with respect to their social and environmental
concerns
• Responsible sourcing, aiming to empower our business
ecosystems to incorporate sustainability considerations in their
business decisions and daily behaviors, while using natural
resources responsibly
Market fundamentals remain promising, and the key drivers of demand are in place to support
operational growth in 2021. At the same time, intermittent waves of COVID-19 across many
countries are triggering corresponding government measures which impact economic activity.
Roanoke cement plant, USA
TITAN Cement Group
Integrated Annual Report 2020
Corporate
Governance
and Risk
Management
Our approach to corporate governance
and risk management.
Management Report
44
Acropolis Museum, Athens, Greece
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1. Corporate Governance Code
1.1 Application of the Belgian Corporate Governance Code
2020
Titan Cement International S.A. (the Company) is a public limited
liability company incorporated under Belgian law. Its shares are
listed on the regulated markets of Euronext Brussels, Euronext
Paris and the Athens Exchange.
The Company is committed to the highest governance principles,
seeking consistent enhancement of its corporate governance
performance and promoting transparency, sustainability and long-
term value creation.
Τhe Company applies the principles of the Belgian Corporate
Governance Code 2020 (the 2020 CG Code or the Code),
which is publicly available on the website https://www.
corporategovernancecommittee.be/en/over-de-code-2020/2020-
belgian-code-corporate-governance.
The Code is structured under ten principles, which are further
detailed in several provisions–recommendations. The “comply or
explain” principle states that all listed companies are expected to
comply with all the provisions of the Code, unless they provide an
adequate explanation for deviating from a provision.
The Corporate Governance Charter (the CG Charter), which is
available on the Company’s website https://www.titan-cement.
com/wp-content/uploads/2021/01/TCI-CG-Charter.pdf describes
the main aspects of the Company’s governance structure, as
well as the terms of reference of the Board of Directors and its
Committees and the Dealing Code of the Company.
1.2 Deviations from the Code
The Company complies with the provisions of the Code except
with regard to the following deviations:
a. The non-executive members of the Board are not partly
remunerated in the form of shares in the Company. Therefore,
the Company deviates from Provision 7.6 of the Code. This
deviation is explained by the fact that the interests of the non-
executive directors are currently considered to be sufficiently
oriented to the creation of long-term value for the Company
and, hence, that their partial payment in the form of shares is
not deemed necessary. It should be noted that this is a new
provision of the Code which had not been taken into account
when the remuneration of the non-executive directors had been
decided. However, the Company intends to consider after the
completion of the current term in office of the non-executive
Board members, the alignment of the Company with article 7.6 of
the Code.
b. No provisions regarding the recovery of variable remuneration
paid to executives or withholding the payment of variable
remuneration of executives, including specific circumstances
in which it would be appropriate to do so, are included in the
contracts with the Managing Director and other executives.
Therefore, the Company deviates from Provision 7.12 of the
Code. This deviation is explained by the fact that variable
remuneration is paid in case the criteria set for such payment
in advance, have been met. In case of early termination, the
Company applies the Remuneration Policy which was approved
by the AGM on 14 May 2020.
c. As at 31 December 2020, no minimum threshold of shares
held by the executives had been set. Therefore, the Company
deviates from Provision 7.9 of the Code. This deviation is
explained by the fact that the interests of the executive
directors are currently considered to be sufficiently oriented to
the creation of long-term value for the Company. Hence, setting
a minimum threshold of shares to be held by executives is not
deemed necessary. At the same time, in case executives exercise
stock options, they are obliged to retain a minimum threshold of
exercised shares.
1.3 Governance structure
The Company has chosen the one-tier governance structure,
which consists of the Board of Directors, which is authorized
to carry out all actions that are necessary or useful to achieve
the Company’s purpose, except for those for which the General
Meeting of Shareholders is authorized to carry out by law.
At least once every five years, the Board shall review whether the
chosen one-tier structure is still appropriate, and if not, it should
propose a new governance structure to the General Meeting of
Shareholders.
2. Capital, Shares and Shareholders
2.1 Capital
On 31 December 2020 the share capital of the Company
amounted to €1,159,347,807.86 and was represented by
82,447,868 shares, without nominal value, with voting rights,
each representing an equal share of the capital.
2.2 Shareholder structure
The chart in the next page represents the shareholder
structure of the Company as of 31 December 2020, based on
the transparency declarations made by its shareholders, the
announcements of the Company for exercised stock options and
changes in shares that did not require a transparency declaration
due to the fact that the 5% threshold was not exceeded either
upwards or downwards.
Based on the above:
• E.D.Y.V.E.M. Public Company Ltd, Andreas Canellopoulos,
Leonidas Canellopoulos, Nellos-Panagiotis Canellopoulos, Pavlos
Canellopoulos, Takis-Panagiotis Canellopoulos, Trust Neptune,
Alexandra Papalexopoulou, Dimitri Papalexopoulos and Eleni
Papalexopoulou, act in concert and hold 29,416,847 shares
corresponding to 35.68% of the Company’s voting rights;
• The Paul and Alexandra Canellopoulos foundation holds
7,882,883 shares corresponding to 9.56% of the Company’s voting
rights;
• FMR LLC, Fidelity Institutional Asset Management Trust
Company, FIAM LLC and Fidelity Management & Research
Company LLC hold 5,525,706 shares corresponding to 6.70% of
the Company’s voting rights; and
Corporate Governance Statement
Corporate Governance
and Risk Management
Management
Report
47
• ΤΙΤΑΝ Cement Company S.A. holds 5,191,277 shares
corresponding to 6.30% of the Company’s voting rights.
The legal threshold applied by the Company requires a
transparency declaration by shareholders at 5% and each
subsequent multiple of 5%.
E.D.Y.V.E.M. Public Company Ltd
and TCI founders acting in concert
TITAN Cement Company S.A
Other
Paul and Alexandra
Canellopoulos Foundation
35.68%
9.56%
41.76%
6.70%
6.30%
FMR LLC, FMR CO Inc, Fidelity
Institutional Asset Management
Trust Company, FIAM LLC
The Company’s Shareholder Structure and the relevant
transparency declarations are available on the Company’s website:
https://ir.titan-cement.com/en/shareholder-center/shareholder-
structure.
2.3 Interactions with institutional and individual investors
The Company regularly interacts with institutional investors.
Roadshows are organized with executive Board members and
investor relations representatives. The Company’s representatives
attend investor conferences and pursue dialogue with the
investment community on TITAN’s strategy and business
performance.
In 2020, due to the pandemic, TITAN participated remotely in many
events, including roadshows and conferences, in several countries
across the world.
At the same time, all shareholders have access to clear,
comprehensive and transparent information through direct contact
with the investor relation team.
The Shareholder Services Department responds to all queries and
requests for information and shareholder assistance.
3. Board of Directors
3.1 Resumes of Directors
Efstratios-Georgios (Takis) Arapoglou
Chairman – Non-executive Director – Chairman of the Nomination
Committee
Takis Arapoglou is a consultant with an earlier career in
International Capital Markets and Corporate & Investment
banking and later in managing, restructuring and advising publicly
listed Financial Institutions and Corporates, primarily in SE Europe
and the Middle East.
His most recent executive assignments include: Managing
Director and Global Head of the Banks and Securities Industry
for Citigroup; Chairman and CEO of the National Bank of Greece;
Chairman of the Hellenic Banks Association; CEO of Commercial
Banking at EFG Hermes Holding SAE.
He currently holds the following non-executive Board positions:
Chairman of Bank of Cyprus Group, Chairman of Tsakos Energy
Navigation (TEN) Ltd, Independent Board member of EFG Hermes
Holding SAE and Board member of Bank Alfalah Ltd, representing
the International Finance Corporation (IFC).
He has degrees in Mathematics, Engineering and Management
from Greek and British universities.
Kyriacos Riris
Vice Chairman – Independent Director – Chairman of the Audit and
Risk Committee
Kyriakos Riris completed his high-school education in Cyprus,
before continuing his higher education and professional
qualifications at Birmingham Polytechnic.
He completed his professional exams with the Association
of Certified Chartered Accountants (ACCA) in the UK in 1975,
becoming a Fellow of the Association of Certified Accountants
in 1985. Since 1976 he has worked mostly in Greece. He was
a member of the Executive Committee of PwC Greece and
became a Partner in 1984. His responsibilities have included that
of Managing Partner of the Audit and the Advisory/Consulting
Departments respectively, and later Deputy Territory Senior
Partner. In 2009, he was elected as Chairman of the Board of PwC
Greece, retiring from that position in 2014.
With a career spanning some 40 years, he has accumulated
vast experience with both domestic and multinational entities
in a variety of sectors and industries, including manufacturing,
shipping, commerce, food and beverages, construction,
pharmaceuticals, financial services and information systems.
Dimitri Papalexopoulos
Chairman of the Group Executive Committee
Dimitri Papalexopoulos started his career as a business consultant
for McKinsey & Company Inc. in New York and Munich.
He joined TITAN in 1989 and in 1996 he assumed the position of
Chief Executive Officer.
Mr. Papalexopoulos is Vice-Chair of the European Round Table for
Industry (ERT) and chairs the ERT’s Energy Transition & Climate
Change Committee.
In June 2020, he was elected Chairman of the Board of the Hellenic
Federation of Enterprises (SEV). He is a member of the Board of
the “Foundation for Economic and Industrial Research” (ΙΟΒΕ), the
“Hellenic Foundation for European and Foreign Policy” (ELIAMEP)
and of “Endeavor Greece”.
He holds an MSc in Electrical Engineering from the Swiss Federal
Institute of Technology (ETHZ) and an MBA from Harvard Business
School.
TITAN Cement Group
Integrated Annual Report 2020
48
Michael Colakides
Managing Director – Group CFO
Michael Colakides started his career in banking at Citibank Greece,
where over time he held the positions of Head of FIG, Head of
Corporate Finance and Local Corporate Banking (1979–1993). In
1993 he was appointed Executive Vice Chairman at the National
Bank of Greece, Vice Chairman of ETEBA Bank S.A. and member of
the BoD of other NBG affiliates.
In 1994 he joined TITAN Cement Company S.A., where he held the
position of Group CFO and executive Board member until 2000. He
was also responsible for several cement company acquisitions in
SE Europe and the USA.
From 2000 to 2007, he served as Vice Chairman and Managing
Director at Piraeus Bank S.A., overseeing the domestic wholesale
and retail banking business as well as the Group’s international
network and activities. In 2007 he moved to EFG Eurobank
Ergasias S.A., assuming the position of Deputy CEO–Group Risk
Executive (2007–2013) overseeing the risk management functions
of the Group.
In January 2014, he rejoined the TITAN Cement Group and assumed
the position of Group CFO of TITAN and also became an executive
member of the Board of Directors.
He holds a BSc in Economics from the London School of Economics
and an MBA from the London Business School.
William Antholis
Independent Director – Member of the Remuneration Committee
William Antholis is director and CEO of the Miller Center, a non-
partisan affiliate of the University of Virginia that specializes in
presidential scholarship, public policy and political history.
From 2004 to 2014, he was Managing Director of the Brookings
Institution. He has also served in government, including at the
White House National Security Council and National Economic
Council, and at the US State Department’s policy planning staff
and bureau of economic affairs.
He has published two books, as well as dozens of articles, book
chapters, and opinion pieces on US politics, US foreign policy,
international organizations, the G8, climate change and trade.
He earned his PhD from Yale University in politics (1993) and his BA
from the University of Virginia in government and foreign affairs
(1986).
Andreas Artemis
Independent Director – Member of the Nomination Committee
Andreas Artemis is an executive member of the Board of Directors
of Commercial General Insurance Group since 1985 and Chairman
since 2002.
He is also member of the Board of Directors of the Cyprus
Employers and Industrialists Federation as well as of the Council of
the Cyprus Red Cross Society.
He has served as member of the Board of Directors of the Bank
of Cyprus Group (2000–2005), Vice Chairman (2005–2012) and
Chairman (2012–2013). He has also served on the Board of Directors
of the Cyprus Telecommunications Authority (1988–1994) and as
Honorary Consul General of South Africa in Cyprus (1996–2012).
He studied Civil Engineering at the Queen Mary and Imperial
colleges of the University of London and holds a BSc (Engineering)
and a MSc degree.
Harry David
Independent Director – Member of the Audit and Risk Committee
Harry David earned his BS from Providence College and began his
career as a certified investment advisor with Credit Suisse in New
York.
He then served in several executive positions within Leventis
Group Companies in Nigeria, Greece and Ireland.
Today he serves as the Chairman of Frigoglass S.A. and is on
the Boards of A.G. Leventis (Nigeria) PLC, the Nigerian Bottling
Company Ltd, Beta Glass (Nigeria) PLC, Frigoglass Industries
(Nigeria) Ltd, Ideal Group, Pikwik (Nigeria) Ltd (a joint venture with
Pick n Pay, South Africa) and ELVIDA Foods S.A.
He is a member of the TATE Modern’s Africa Acquisitions
Committee.
Has served on the Boards of Alpha Finance, Greece’s Public Power
Corporation and Emporiki Bank (Credit Agricole).
Leonidas Canellopoulos
Executive Director
Leonidas Canellopoulos is the Chief Sustainability Officer of TITAN
Group. He is also responsible for Group Corporate Affairs.
Since 2012, he has covered various roles within the Group’s Finance
and Strategic Planning functions and has served as Cement
Operations Director of the Group’s Greek Region.
Prior to that, he worked for Separation Technologies LLC.
He is a member of the BoD of Junior Achievement Greece.
He holds a BA in Economics with Honors from Harvard University
and an MBA from INSEAD, where he received the Henry Ford II Prize.
Alexandra Papalexopoulou
Executive Director
Alexandra Papalexopoulou is the Deputy Chair of the Group
Executive Committee, with direct oversight of Group Strategy and
Business Development, Trading, Legal and the Group’s operations
in the Eastern Mediterranean.
Her career began as an analyst for the Organization for Economic
Co-operation and Development (OECD) and later as an associate
at the consulting firm Booz, Allen & Hamilton in Paris in the 1990s.
Joining TITAN Group in 1992, she started out in trading,
subsequently moved to business development and then headed
Strategic Planning.
She is a Non-Executive Director of Coca-Cola HBC, a FTSE 100
company, a member of the Board and Treasurer of the Paul &
Alexandra Canellopoulos Foundation, and serves on the Board of
Trustees of INSEAD Business School.
She holds a BA in Economics from Swarthmore College, USA, and
an MBA from INSEAD, France.
Corporate Governance
and Risk Management
Management
Report
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Stelios Triantafyllides
Independent Director – Member of the Remuneration Committee
Stelios Triantafyllides has been working with and been a partner
of the Antis Triantafyllides & Sons LLC law firm since 1983. His
practice focuses on international business transactions, banking
and finance, capital markets, M&A and joint ventures, general
corporate and commercial, corporate restructuring, tax, financial
services and securities regulation. He is the legal adviser to the
Cyprus Securities and Exchange Commission. He regularly advises
major international companies on corporate and banking matters.
He is member of the Cyprus Bar Association (admitted 1984) and is
Chairman of the Committee for Private Companies and a member
of the Committee on the Cyprus Stock Exchange. From 2006 to
2012, he was a member of the Board of Directors of the Cyprus
Investment Promotion Agency (CIPA).
He studied at Worcester College, Oxford University (MA
(Jurisprudence) and the University of California, Berkeley (LLM).
Dimitris Tsitsiragos
Independent Director – Member of the Audit and Risk Committee
Dimitris Tsitsiragos has over 30 years of extensive international
experience in emerging markets finance across industries, sectors
and products.
He started his career in 1985 in New York as a corporate bond
evaluator at Interactive Data Services, Inc (former subsidiary of
Chase Manhattan Corporation). In 1989, he joined the International
Finance Corporation (IFC), a member of the World Bank Group
as an Analyst and retired in 2017 as Vice President, leading IFC’s
global business operations and stakeholder relations with a global
network of governments, financial institutions and private sector
clients. He also chaired IFC’s Corporate Credit Committee. During
his progressive career at the institution, he held the following
positions: Vice President, Europe, Central Asia, Middle East and
North Africa (EMENA) (2011-2014) based in Istanbul; Director of
Middle East, North Africa and Southern Europe (MENA) (2010-2011)
based in Cairo; Director of Global Manufacturing and Services
Department (2004-2010); Director of South Asia (2002-2004) based
in New Delhi; Manager, New Investments, Central & Eastern
Europe (2001-2002); Manager Oil & Gas (2000-2001) and held a
number of investment positions in the same unit (1989-2001).
Currently Mr. Tsitsiragos is a Senior Advisor, Emerging Markets at
the Pacific Investment Management Company (PIMCO). He also sits
on the Board of Alpha Bank (Greece) as an independent director.
He holds an MBA from the George Washington University and a BA
in Economics from the Rutgers University. He has also attended
the World Bank Group Executive Development Program at Harvard
Business School.
Maria Vassalou
Independent Director – Member of the Nomination Committee
Maria Vassalou is the Chief Investment Officer at Vassalou
Capital Management. She has more than 14 years of investment
experience.
Prior to founding Vassalou Capital Management, she was a Partner
and Portfolio Manager at Perella Weinberg Partners, responsible
for the PWP Global Macro Business. She joined Perella Weinberg
Partners from MIO Partners, a subsidiary of McKinsey & Company,
where as a Portfolio Manager she managed a similar global macro
investment strategy in a dedicated legal entity, and as Head of
Asset Allocation she provided counsel on allocation for liquid
assets within MIO’s portfolio.
Prior to joining MIO, she was a Global Macro Portfolio Manager
at SAC Capital Advisors LP. She joined SAC from Soros Fund
Management, where she was responsible for global quantitative
research, as well as the development and management of global
quantitative trading strategies.
She began her career in academia and she was an Associate
Professor of Finance at Columbia Business School, which she
joined in 1995. She is a Past President of the European Finance
Association and was the Chair of the 2008 European Finance
Association meetings. A Research Affiliate of the Centre for
Economic Policy Research (CEPR) in London for many years, she
is a past member of the Academic Advisory Board of the Vienna-
based Gutmann Center of Competence in Portfolio Management.
Since 2016, she has been a member of the Board of Directors of
Tsakos Energy Navigation (NYSE: TNP).
She earned a BA in Economics from the University of Athens and
holds a PhD in Financial Economics from London Business School.
She is the recipient of several professional awards and she was
included in the 50 Leading Women in Hedge Funds in 2015.
Bill Zarkalis
Executive Director
Bill Zarkalis, in addition to his responsibilities as President and CEO
of Titan America LLC and Chairman of Separation Technologies
(STET) since 2014, has assumed the broader leadership role of
Group Chief Operating Officer (COO) and oversight of joint venture
Apodi in Brazil.
He is a business executive with an international career, having
led diverse global teams across all continents while located
mostly in the USA and Switzerland. He dedicated 18 years to Dow
Chemical Co., where he started in commercial posts, growing in
experience through a fast succession of marketing and product
management responsibilities, culminating into global business-
unit leadership roles. Among others, he served as Vice President of
Dow Automotive, M&A Leader for DuPont-Dow Elastomers, Global
Business Director for Specialty Plastics & Elastomers, and Global
Business Director for Synthetic Latex.
He joined TITAN in 2008 as Group Executive Director for Business
Development and Strategic Planning. In 2010 he became the TITAN
Group CFO, where he served until 2014 before moving into his
current role in Titan America.
He holds a BSc in Chemical Engineering from the National
Technical University of Athens and a MA from Pennsylvania State
University.
Mona Zulficar
Independent Director – Chairwoman of the Remuneration
Committee
Mona Zulficar is one of the founding partners of Zulficar &
Partners, a specialized law firm, which has become one of the best
ranked law firms in Egypt since it was established in June 2009.
She was previously senior partner at Shalakany Law Firm, serving
as the Chair of its Executive Committee for many years.
TITAN Cement Group
Integrated Annual Report 2020
50
She is recognized in local and international legal circles as a
precedent setter and one of Egypt’s most prominent corporate,
banking and project finance attorneys. As a M&A and capital
markets transactions specialist, she has led negotiations on
some of Egypt’s and the Middle East’s largest and most complex
successful transactions over the past three decades. She has
also played an instrumental role in modernizing and reforming
economic and banking laws and regulations as a former member
of the Board of the Central Bank of Egypt and as a prominent
member of national drafting committees. She is also a leading
human rights activist, recognized locally and internationally and
has initiated several successful campaigns for new legislation
including women’s rights, freedom of opinion and family courts.
She served as Vice President of the Constitutional Committee of
50 and played a key role in drafting the 2014 Egyptian Constitution,
and is currently member of the National Council for Human
Rights. She has served as Non-Executive Chairperson of EFG
Hermes since 2008. In 2015, she was elected President of the
Egyptian Microfinance Federation and has chaired several NGOs
active in providing social development and microfinance to poor
women. Internationally, she served as an elected member of the
international Advisory Committee of the United Nations Human
Rights Council for two terms, ending in 2011.
She holds a BSc in Economics and Political Science from Cairo
University and an LLM from Mansoura University as well as an
honorary PhD in law from the University of Zurich.
3.2 Role and competencies of the Board of Directors
The CG Charter, which is available on the Company’s website
https://www.titan-cement.com/wp-content/uploads/2021/01/
TCI-CG-Charter.pdf, defines the terms of reference of the Board
of Directors including its role, mission, composition, training and
evaluation.
3.3 Structure of the Board of Directors
As at 31 December 2020, the Board was composed of fourteen (14)
directors:
• The majority of directors, namely nine (9) out of fourteen (14),
including the Chairman, are non-executive directors.
• Eight (8) out of fourteen (14) directors, namely Kyriakos
Riris, William Antholis, Andreas Artemis, Harry David, Stelios
Triantafyllides, Dimitris Tsitsiragos, Maria Vassalou and Mona
Zulficar met on their appointment the independence criteria of
article 7:87 of the Belgian Companies and Association Code and
also those of Principle 3.5 of the Code.
• Five (5) out of the fourteen (14) Board members, namely Dimitri
Papalexopoulos, Michael Colakides, Leonidas Canellopoulos
Alexandra Papalexopoulou and Bill Zarkalis are executive
directors.
• Three (3) out of fourteen (14) directors are women. Due to the
fact that the Company’s primary listing on Euronext Brussels
took place in August 2019, the Company is required to comply
with the gender diversity rule of one-third provided in article
7:86 of the Belgian Companies and Associations Code, by 1
January 2026 at the latest. Nevertheless, the company intends to
comply with the above requirement before the end of the above
grace period.
• The directors represent four (4) different nationalities (US,
Egyptian, Cypriot and Greek).
• The Board meeting attendance at the six scheduled Board
meetings was 100%. There were also two unscheduled Board
meetings, in the first of which the attendance was 100%, while in
the second, where only non-executive directors had been invited
to participate together with the managing director and the Chair
of the Group Executive Committee, the attendance rate was 10
out of 11. The individual attendance of each Board member is
shown in the table included in Section 3.4 (“Functioning of the
Board of Directors”) below.
Currently, the Board consists of the following fourteen (14) directors:
Name Position Term started Term expires
Efstratios-Georgios (Takis) Arapoglou Chairman, Non-Executive Director May 2019 May 2022
Kyriacos Riris Vice Chairman, Independent Non-Executive Director October 2018 May 2021
Dimitri Papalexopoulos Executive Director May 2019 May 2022
Michael Colakides Managing Director May 2019 May 2022
William Antholis Independent Non-Executive Director May 2019 May 2022
Andreas Artemis Independent Non-Executive Director May 2019 May 2022
Haralambos (Harry) David Independent Non-Executive Director May 2019 May 2022
Leonidas Canellopoulos Executive Director May 2019 May 2022
Alexandra Papalexopoulou Executive Director May 2019 May 2022
Dimitrios Tsitsiragos Independent Non-Executive Director March 2020 May 2022
Stylianos (Stelios) Triantafyllides Independent Non-Executive Director October 2018 May 2021
Maria Vassalou Independent Non-Executive Director May 2019 May 2022
Bill Zarkalis Executive Director May 2019 May 2022
Mona Zulficar Independent Non-Executive Director May 2019 May 2022
Corporate Governance
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3.4 Functioning of the Board of Directors
During 2020 the Board of Directors held six (6) scheduled
meetings on March 19, April 9, May 13, July 29, November 11 and
December 16.
Two (2) unscheduled meetings were held on June 24 and July 21.
The following table shows the individual attendance of each Board
member at the meetings of the Board and its committees held in
2020:
3.5 Board evaluation
As provided in the Code, the Board should assess at least
every three years its own performance, its interaction with
the executive management, as well as its size, composition,
functioning and that of its committees.
After the completion of more than one year as listed Company
primarily on Euronext Brussels with secondary listings on the
Athens Exchange and Euronext Paris, the Board decided to carry
out a formal Board evaluation for the year 2020 without external
facilitation.
Each Board member received a questionnaire, in the form
of a survey link, ensuring the anonymity of each participant
and requesting feedback on how the Board functions, its
composition, effectiveness and operation, the role of the Chair
and the functioning of the Board committees. All Board members
responded to the questionnaire and the Board evaluation feedback
was presented and discussed at the first Board meeting of 2021.
At the end of each Board member’s term, the Nomination
Committee evaluates this Board member’s presence at the
Board or Committee meetings, his or her commitment and
constructive involvement in discussions and decision-making in
accordance with a pre-established and transparent procedure. The
Nomination Committee also assesses whether the contribution of
each Board member adapted to changing circumstances.
3.6 Code of Conduct – Conflicts of interest
A Code of Conduct has been drawn-up, setting out the
expectations for the Company’s leadership and employees in
terms of responsible and ethical behavior.
All Board members are expected to uphold the highest standards
of integrity and to always act in the best interest of the Company.
Each member of the Board undertakes, both during his or her
membership of the Board and afterwards, not to disclose to
anyone in any manner any confidential information relating to the
business of the Company or companies in which the Company has
an interest, unless he or she has a legal obligation to disclose such
information.
No member of the Board may use the information described above
to his or her own advantage.
Each member of the Board undertakes not to develop, either
directly or indirectly, during the term of his or her mandate, any
activities nor perform any actions that conflict with the activities
of the Company or its Subsidiaries.
All members of the Board are required to inform the Board of
conflicts of interests as they arise. In case a director has a direct
or indirect financial interest that conflicts with the interests of
the Company, he or she is required to inform the other directors
before the Board takes a decision and the Board is required to
implement the procedures set forth in articles 7:96 and 7:97 of the
Belgian Companies and Associations Code. Pursuant to the above
articles of BCCA, the following decisions were taken, without the
presence of any executive member of the Board:
1. Board decision dated 19.3.2020: Approval of variable
remuneration payout for Titan America and the Group.
On 19 March 2020 the board resolved on the variable remuneration
for Titan America and the Group. The conflict of interest is
related to the fact that the executive members of the Board are
potential beneficiaries of the variable remuneration. The executive
members withdrew from the meeting.
The non-executive members of the Board discussed the variable
remuneration payout for Titan America and the Group, based on
the recommendation from the Remuneration Committee. The total
Individual attendance of each Board member at the scheduled meetings of the Board
Administrateur Board of Directors
Meetings
Audit and Risk
Committee
Remuneration
Committee
Nomination
Committee
Efstratios-Georgios (Takis) Arapoglou 8/8 - - 4/4
Kyriacos Riris 8/8 5/5 - -
Dimitri Papalexopoulos 8/8 - - -
Michael Colakides 8/8 - - -
William Antholis 8/8 - 3/3 -
Andreas Artemis 8/8 - - 4/4
Harry David 8/8 5/5 - -
Leonidas Canellopoulos 7/8* - - -
Alexandra Papalexopoulou 7/8* - - -
Petros Sabatacakis 1/1 -/1 - -
Stelios Triantafyllides 8/8 - 3/3 -
Dimitris Tsitsiragos 8/8 4/5 - -
Maria Vassalou 8/8 - - 4/4
Bill Zarkalis 7/8* - - -
Mona Zulficar 7/8 - 3/3 -
* In the Board meeting of July 21, 2020 only the non-executive directors, the Managing Director and the Chairman of the Group Executive Committee were invited to participate.
TITAN Cement Group
Integrated Annual Report 2020
52
remuneration payout will be up to €800,000 in aggregate and is
justified by the fact that external factors in the US market outside
the local management control (e.g. hurricane impact, no availability
of fly ash) affected the achievement of targets set for 2019.
The board of directors (composed of the non-executive members
only) approved unanimously the variable remuneration payout for
Titan America and the Group as proposed by the Remuneration
Committee.
2. Board decision dated 9.4.2020:
Mrs. Mona Zulficar, Chair of the Remuneration Committee,
presented to the Board of Directors, the recommendations of the
Remuneration Committee on the following matters, namely:
a. To approve the variable remuneration payouts (bonuses) for
2019 of the executive members of the Board, the members of the
Management Committee and the members of the Group Executive
Committee, as included in the Remuneration Report for the year
2019, noting that the relevant variable remuneration payouts
which amount in total to €1,194,436 are paid in accordance with
the provisions of the 2019 Remuneration Policy and following the
appraisal of the performance of each executive director and the
achievement of personal and collective targets provided in the
Remuneration Policy; b. To approve the long-term incentive awards
to be granted in 2020 to the executive members of the Board,
the members of the Management Committee and the members
of the Group Executive Committee, noting that such long term
incentive awards amount in total to 195,160 shares, i.e. €2,010,000,
and are granted subject to the achievement of personal and
collective targets provided in the new Remuneration Policy that
will be submitted for approval in the AGM on 14 May 2020; and c.
To approve the proposed extension of the exercise period of the
stock options granted in 2014 and 2015, in the framework of the 2014
Restricted Stock Incentive Plan (RSIP), until December 2021 (instead
of December 2020) and until December 2022 (instead of December
2021) respectively, noting that the relevant extensions incur no
cost to the Company and are granted in order to ensure the fair
treatment of all stock option beneficiaries.
The conflict of interest is related to the fact that the executive
members of the Board are potential beneficiaries of the variable
remuneration payouts for 2020, the long-term incentive awards
of 2020 and the extension of the exercise period of stock options
mentioned above.
3. Board Decision dated 21.7.2020: Group Organizational Changes
During the Board of Directors of 21 July 2020 Group organizational
changes were decided. Executive Board members were asked not
to attend the meeting as they are associated with most of the
proposed changes and the non-executive Board members should
be free to comment without any pressure. Mr. Michael Colakides,
Managing Director and Mr. Dimitri Papalexopoulos, who under
his capacity as Chairman of the Group Executive Committee
was asked to join the Chairman in presenting the proposed
organizational changes, withdrew from the meeting before any
decision was taken. The following organizational changes were
decided, effective as of October 1, 2020 regarding the composition
of the Group Executive Committee: Dimitri Papalexopoulos,
Chairman; Alexandra Papalexopoulou, Deputy Chair; Michael
Colakides, Group CFO and Managing Director of TCI; Bill Zarkalis,
Group COO; Yanni Paniaras, Group Executive Director Europe and
Sustainability; Fokion Tasoulas, Group Innovation and Technology
Director; Christos Panagopoulos, Regional Director Eastern Med;
Antonis Kyrkos, Group Transformation and Strategic Planning
Director; John Kollas, Group Human Resources Director; Leonidas
Canellopoulos, Chief Sustainability Officer. The decisions had no
direct financial consequences for the Company and the Group.
4. Board decision dated 11.11.2020: Remuneration of the promoted
executives following the Group Organizational Changes decision
taken by the Board of Directors on 21.7.2020
The executive members of the Board of Directors withdrew from
the meeting because they declared that they had a possible conflict
of interest, related to the fact that they are potential beneficiaries of
the remuneration packages and severance schemes that have been
submitted for approval. On recommendations of the Remuneration
Committee following decisions were taken:
a. To approve the proposed changes in the Remuneration packages
of the promoted Executive Directors, members of the Group
Executive Committee and other executives, noting that, as
regards the executive members of the Board of Directors, the
relevant changes are in line with the Remuneration Policy and
the variable compensation will be paid subject to appraisal of the
performance of each executive director and the achievement
of personal and collective targets. The additional financial
consequences for the Company, should the targets of the
executive board members be achieved, will not exceed €380,000;
b. To approve the revision of the severance schemes provided to
the members of the Group Executive Committee, noting that,
as regards the executive members of the Board who are also
members of the Group Executive Committee, the changes are
in line with the Remuneration Policy and the additional financial
consequences for the Company, with respect of the revision of
the severance schemes for the executive board members and
the conditional severance scheme set out below, will not exceed
€1,600,000; and
c. To approve the provision of a conditional severance scheme to
one executive director, noting that such conditional severance
scheme will not exceed 18 months’ remuneration as provided in
the 2020 Remuneration Policy.
The Board has set (a) a Policy for transactions and other
contractual relationships between the Company or Group
Subsidiaries and Members of the Board or the Management
Committee or the Group Executive Committee or other
designated persons and (b) a Dealing Code, which is addressed
to the Company’s directors, managers and officers, as well as
to Group’s directors, managers, officers and employees who are
in possession of inside information (within the meaning of the
Regulation (EU) No 596/2014 on market abuse).
Both the Policy for Transactions and the Dealing Code are included
(as Appendix 2 and Appendix 8, respectively) in the Company’s CG
Charter which is available on the Company’s website (https://www.
titan-cement.com/) at the link: https://www.titan-cement.com/
wp-content/uploads/2021/01/TCI-CG-Charter.pdf.
4. Composition and Operation
of Board Committees
4.1 Audit and Risk Committee
4.1.1 Composition, Role and Functioning
Chair: Kyriacos Riris, independent director
Members: Harry David, independent director
Dimitris Tsitsiragos, independent director
Corporate Governance
and Risk Management
Management
Report
53
Notwithstanding the relevant expertise of the other members
of the Committee, the Committee’s Chairman, Mr. Riris, has the
necessary expertise with regard to accountancy and auditing.
The Audit and Risk Committee performs all duties set out in
article 7:99 of the Belgian Companies and Associations Code and
is entrusted with the development of a long-term audit program
encompassing all activities of the Company, including:
a. Monitoring the financial reporting process;
b. Monitoring the effectiveness of the Company’s internal control
and risk management systems;
c. Monitoring the internal audit and its effectiveness;
d. Monitoring the statutory audit of the annual and consolidated
financial statements, including any follow-up on any questions
and recommendations made by the External Auditor;
e. Reviewing and monitoring of the independence of the External
Auditor, in particular regarding the provision of additional
services to the Company.
The Audit and Risk Committee held five meetings in 2020: on
March 19, April 9, May 13, July 29 and November 10.
The discussions and decisions of the Audit and Risk Committee
meeting of March 19, 2020 included the approval of the condensed
financial statements for the year ended December 31, 2019 and
the press release for the fourth quarter and year end results, the
presentation of the Audit plan of the external auditors (PwC), for the
year ended December 31, 2019, a separate meeting with the external
auditors without the presence of any member of the management
team, the amendment of the NAS policy and the inclusion in the
“pre-approved other services”, subject to approval by management,
of tax services, provided they do not have direct effect and they are
immaterial in relation to the financial statements and the approval
of NAS provided within the period and a meeting with the Head of
the Group’s Internal Audit, Risk and Compliance department during
which the Committee received a summary report and update of the
scope and work of the department during the last quarter of 2019.
The discussions and decisions of the Audit and Risk Committee
meeting of April 9, 2020 included the stand-alone financial
statements for the year ended December 31, 2019 of Titan
Cement International S.A., the Integrated Annual Report for
the year 2019, the Group liquidity and the loan covenants of the
Group, a presentation of the management for planned actions
and measures taken as a result of the COVID-19 pandemic, the
presentation of the external auditor’s report on the stand-
alone and group financial statements for the year 2019 (both
unqualified). Last, the Audit and Risk Committee, without the
presence of any member of the management team, approved the
variable compensation (bonus) for the year 2019 of the Head of
the Audit, Risk and Compliance department and her long-term
incentive awards (stock-options) for the year 2020.
The discussions and decisions of the Audit and Risk Committee
meeting of May 13, 2020 included the approval of the unaudited
financial statements of the first quarter ended March 31, 2020
and the press release for the same period, the approval of NAS
provided in Q1 (following management’s approval) and the
discussion with the Head of the Group’s Internal Audit, Risk and
Compliance department of the Internal Audit plan for the year
2020 and the findings of the period.
The discussions and decisions of the Audit and Risk Committee
meeting of July 29, 2020 included the approval of the interim
condensed financial statements of the half year 2020 and the
half year 2020 press release, the approval of NAS provided in Q2
(following management’s approval), a discussion with the External
Auditors (PwC) on their findings after the completion of their 2019
audit and the discussion with the Head of the Group’s Internal
Audit, Risk and Compliance department, without the presence of
any member of the management team, of the implementation of
the Internal Audit plan during Q2, the findings of this period, the
compliance and anti-fraud activities performed and other matters.
Finally, the discussions and decisions of the Audit and Risk
Committee meeting of November 10, 2020 included the approval
of the unaudited financial statements of the Q3 2020 and the
9 months press release, the approval of NAS provided in Q3
(following management’s approval), the presentation of the
Audit Plan for the year ending December 31, 2020 by the External
Auditors (PwC) and the discussion with the Head of the Group’s
Internal Audit, Risk and Compliance department, without the
presence of any member of the management team, of the
implementation of the Internal Audit plan during Q3, the findings
of this period, the compliance and anti-fraud activities performed,
the Q4 Group Internal audit plan and other matters.
External Auditor
The audit of the Company’s financial statements was entrusted,
by virtue of the Extraordinary General Meeting resolution dated 13
May 2019, to SCRL PriceWaterhouseCoopers, with registered office
located at 1932 Sint-Stevens-Woluwe, Woluwedal, 18, represented
by Mr. Marc Daelman, for a term of three years, ending on the date
of the Annual General Meeting to be held in 2022 related to the
approval of the annual accounts of the year ending on December
31, 2021.
The responsibilities and powers of the External Auditor are set
by law.
The Audit and Risk Committee monitors and assesses the
effectiveness, independence and objectivity of the external
auditor having regard to the:
•
content, quality and insights on key external auditor plans and
reports;
• engagement with the external auditor during committee
meetings;
• robustness of the external auditor in handling key accounting
principles; and
• provision of non-audit services.
The yearly 2020 audit fees for the statutory accounts of Titan
Cement International S.A. (TCI) were set at €109,000.
Patras cement plant, Greece
TITAN Cement Group
Integrated Annual Report 2020
54
The audit fees for statutory audit and TCI's subsidiaries and
affiliates in 2020 amount to €1,207,861 (€1,222,182 in 2019).
Non-audit fees (for TCI, subsidiaries and affiliates) paid or accrued
in 2020 amount to €334,637 (€390,530 in 2019) and include:
• Audit related fees (assurance services for TCI, subsidiaries and
affiliates) €298,596 (€244,049 in 2019); and
• Tax advisory, other advisory and compliance services €36,041
(€146,481 in 2019).
The rules governing the composition, tasks and method of
functioning of the Audit and Risk Committee are laid down in
Appendix 3 of the Company’s CG Charter (“Terms of Reference
of the Audit and Risk Committee”), which is available on the
Company’s website (https://www.titan-cement.com/) at the link:
https://www.titan-cement.com/wp-content/uploads/2021/01/TCI-
CG-Charter.pdf.
4.2 Remuneration Committee
Chair: Mona Zulficar, independent director
Members: William Antholis, independent director
Stelios Triantafyllides, independent director
The Remuneration Committee has the duties set out in article
7:100 of the Belgian Companies and Associations Code, including,
to prepare and assess proposals for the Board:
a. with regard to the Company’s remuneration policy and
the remuneration of directors, members of the Company’s
Management Committee and members of the Group Executive
Committee, as well as on the arrangements concerning early
termination;
b. with regard to the annual review of the executive
management’s performance; and
c. with regard to the realization of the Company’s strategy against
performance measures and targets.
The Remuneration Committee held three meetings in 2020 (on
March 19, April 3 and October 19, 2020).
The main topics of the meeting of the Remuneration Committee
held on March 19, 2020 referred to recommendations of the
Committee on:
a. The Remuneration Report for the year 2019;
b. The new Remuneration Policy of the Company (the 2020
Remuneration Policy), which was thereafter submitted to the
AGM;
c. The new Long-Term Incentive Plan (LTIP 2020) which was
thereafter included in the 2020 Remuneration Policy.
The main topics of the meeting of the Remuneration Committee
held on April 3, 2020 referred to recommendations of the
Committee on:
a. the variable remuneration payouts for 2019 of the executive
members of the Board, the members of the Management
Committee and the members of the Group Executive
Committee;
b. the long-term incentive awards to be granted in 2020;
c. the vesting of the stock options granted in 2017 in the
framework of the RSIP 2017; and
d. the extension of the exercise period of stock options granted
in 2014 and 2015 for one year, namely until December 2021 and
2022.
The main topics of the meeting of the Remuneration Committee
held on October 19, 2020 referred to recommendations of the
Committee on:
a. the remuneration of promoted executive directors, members of
the Group Executive Committee and other executives following
the Group Organizational changes decided by the Board on July 21,
2020;
b. the severance payment of retiring or departing members of the
Management Committee and the Group Executive Committee;
c. the review of the severance schemes of the members of the
Group Executive Committee; and
d. the special severance scheme of one executive director.
The rules governing the composition, tasks and method of
functioning of the Remuneration Committee are laid down in
Appendix 5 of the Company’s CG Charter (“Terms of Reference of the
Remuneration Committee”), which is available on the Company’s
website (https://www.titan-cement.com/) at the link: https://www.
titan-cement.com/wp-content/uploads/2021/01/TCI-CG-Charter.pdf.
4.3 Nomination Committee
Chair: Efstratios-Georgios (Takis) Arapoglou, non-executive
director
Members: Maria Vassalou, independent director
Andreas Artemis, independent director
The role of the Nomination Committee is to make
recommendations to the Board with regard to the appointment
of directors, the Managing Director of the Company and other
members of the Management Committee and the Group Executive
Committee as well as their orderly succession.
The main duties of the Nomination Committee include:
a. the nomination of candidates for any vacant directorships, for
approval by the Board;
b. the preparation of proposals for reappointments;
c. the periodical assessment of the size and composition of the
Board and making recommendations for any changes; and
d. ensuring that sufficient and regular attention is paid to the
succession of executives, talent development and promotion of
diversity in leadership positions.
The Nomination Committee meets at least once a year and
whenever a meeting is deemed necessary and advisable for its
proper functioning.
During 2020, the Nomination Committee held four meetings:
The first meeting took place on February 25, 2020 with main
agenda the presentation of Mr. Dimitris Tsitsiragos as potential
new independent Board candidate and ensuring that
Mr. Tsitsiragos fulfils the independence criteria provided in the
2020 CG Code.
The second meeting took place on March 18, 2020 with first
item on the agenda to meet in person Mr. Tsitsiragos, who was
thereafter unanimously recommended to be co-opted by the
Board in place of Mr. Takis-Panagiotis Canellopoulos, subject to
Corporate Governance
and Risk Management
Management
Report
55
the approval by the AGM. The other items on the agenda included
a presentation on the management succession planning and on
leadership diversity promotion.
The third meeting took place on September 28, 2020 with only
item the presentation of Mr. Yanni Paniaras as new executive
Board candidate subject to election by the AGM in 2021.
The fourth meeting was held on December 8, 2020 and the agenda
was to get prepared for the 2021 AGM and to timely set committee
priorities.
The rules governing the composition, tasks and method of
functioning of the Nomination Committee, as well as the procedure
to be followed by the latter for the appointment and reappointment
of Board members, are laid down in Appendix 4 of the Company’s
CG Charter (“Terms of Reference of the Nomination Committee”),
which is available on the Company’s website (https://www.titan-
cement.com/) at the link: https://www.titan-cement.com/wp-
content/uploads/2021/01/TCI-CG-Charter.pdf.
4.4 Group Executive Committee
Chair: Dimitri Papalexopoulos
Deputy Chair: Alexandra Papalexopoulou
Members: Michael Colakides, Managing Director and Group
CFO
Bill Zarkalis, Group Chief Operating Officer; CEO of
Titan America; Chairman of STET
Yanni Paniaras, Group Executive Director Europe
and Sustainability
Fokion Tasoulas, Group Innovation and Technology
Director
Christos Panagopoulos, Regional Director East Med
Antonis Kyrkos, Group Transformation and Strategic
Planning Director
John Kollas, Human Resources Director
Leonidas Canellopoulos, Chief Sustainability Officer
The role of the Group Executive Committee is to facilitate
the supervision of the Group operations, the cooperation and
coordination between the Company’s subsidiaries and the
monitoring of the Group management performance and ensuring
the implementation of decisions and related accountability.
Τhe Group Executive Committee held 18 meetings during 2020.
A variety of coordination topics were covered, including strategy,
quarterly results, Group budget, H&S reviews, sustainability
reviews, progress of key projects (CO₂, digitilization), etc.
The rules governing the composition, tasks and method of
functioning of the Group Executive Committee, as well as the
code of conduct, are laid down in Appendix 7 of the Company’s CG
Charter (“Terms of Reference of the Group Executive Committee”),
which is available on the Company’s website (https://www.titan-
cement.com/) at the link: https://www.titan-cement.com/wp-
content/uploads/2021/01/TCI-CG-Charter.pdf.
4.5 Management Committee
Chair: Michael Colakides, Managing Director
Members: Grigoris Dikaios, Company CFO
Konstantinos Derdemezis, Regional Business Director
1
Christos Panagopoulos, Regional Business Director
The main role and the main duties of the Management Committee
are to implement and monitor the company strategy, to prepare
and present to the Board the financial statements of the Company
in accordance with the applicable accounting standards and
policies of the Company, to prepare the Company’s required
disclosure of the financial statements and other material financial
and non-financial information, to manage and assess the internal
control systems of the Company and to support the Managing
Director in the day-to-day management of the Company and with
the performance of his other duties.
The Management Committee meets whenever a meeting is
required for its proper functioning.
The rules governing the composition, tasks and method of
functioning of the Management Committee, as well as the code of
conduct, are laid down in Appendix 6 of the Company’s CG Charter
(“Terms of Reference of the Management Committee”), which is
available on the Company’s website (https://www.titan-cement.
com/) at the link: https://www.titan-cement.com/wp-content/
uploads/2021/01/TCI-CG-Charter.pdf.
1
Member of the Management Committee until 1 October 2020
5. Diversity and Inclusion
TITAN is committed to offering equal opportunities and
encourages diversity and inclusion at every level of employment
in the Company. Diverse and inclusive workplace has been
recognized as a material issue for the Group. Diversity includes
more than gender, age, nationality, disability, ethnic origin, sexual
orientation, culture, education and professional background.
At Group level, particular attention is given to monitoring the
implementation of our Human Rights Policy, part of which
refers to the promotion of diversity and to ensuring consistent
improvement of diversity across the organization. Improving the
gender mix at all levels is always an area of focus. Likewise, we
focus on inclusion and on creating a working environment that
maximizes the potential of all employees.
Currently, the number of women on the Board is 3 out of 14 and
therefore the Company, as already mentioned above in paragraph
3.3, deviates from the rule provided in article 7:86 of the Belgian
Code on Companies and Associations according to which at least
one third of the members of the Board should be different gender
than the other members. However, as mentioned in paragraph
3.3, given that the Company’s primary listing on Euronext Brussels
was concluded in 2019, the Company is not obliged to comply with
the gender diversity rule before 1
st
January 2026. Nevertheless, the
Company intends to comply with this rule before the end of the
above grace period and is actively monitoring the addition of two
women, one in 2022 and one in 2025.
The Board has also promoted diversity in the composition of
the Board Committees, by appointing a woman as Chair of the
Remuneration Committee and another woman as a member of
the Nomination Committee.
TITAN monitors gender diversity in management at both Group
and local levels (see ESG Performance statements, table 2.3
Social Performance Index).
In 2019 an assessment of Group policies was conducted by Group
Human Resources Department to define priorities and future
targets accordingly. Our Group Code of Conduct, Human Rights
and CSR policies were updated to incorporate clearer references
to diversity and inclusion.
TITAN Cement Group
Integrated Annual Report 2020
56
Diversity on Board level has also been promoted through a balanced
mixture of academic and professional skills. More specifically, the
Board includes directors coming from the banking and insurance
sector, the corporate/business sector and the legal and audit
services sector. As far as residence is concerned, six Board members
have their permanent residence in Cyprus, three in the USA, three in
Greece, one in Egypt and one in the United Kingdom.
The Group focuses on fostering diversity and inclusion awareness
through workshops, training and development programs in the
various regions.
The results of diversity promotion in 2020 are published in the ESG
Performance review & statements, table 2.3 Social Performance
Index.
6. Internal Audit and Risk Management
in the Scope of the Financial Reporting
Process
The key elements of the system of internal controls utilized in
order to avoid errors in the preparation of the financial statements
and to provide reliable financial information are the following:
The assurance mechanism regarding the integrity of the Group’s
financial statements consists of a combination of the embedded
risk management processes, the applied financial control
activities, the relevant information technology utilized, and the
financial information prepared, communicated and monitored.
Each month the Group’s subsidiaries submit financial and non-
financial data to the Group’s consolidation department and
provide explanatory information where necessary.
In consolidating the financial results and statements, the Group
utilizes specialized consolidation software and specialized
software for reconciling intercompany transactions. These
tools come with built-in control mechanisms and have been
parametrized in accordance with the Group’s needs. Finally,
the above tools use best practices regarding the consolidation
process, which the Group has to a very large extent adopted.
The Group’s management reviews on a monthly basis the
consolidated financial statements and the Group’s Management
Information (MI) – both sets of information being prepared
in accordance with IFRS and in a manner that facilitates their
understanding.
The monthly monitoring of the financial statements and Group MI
and their analysis by the relevant departments are key elements
of the controlling mechanism regarding the quality and integrity of
financial results.
The Group’s external auditors review the mid-year financial
statements of the Group and its material subsidiaries and audit
their full-year financial statements. Moreover, they audit the full-
year financial statements of the Company. In addition, the Group’s
external auditors inform the Audit and Risk Committee about the
outcome of their reviews and audits.
The Audit and Risk Committee, during its quarterly meetings prior
to the financial reporting, is informed by the Managing Director
and Group CFO and also by the other competent officers of the
Company and the Group about the performance of the Group,
monitors the consolidated accounts and the financial reporting
process and reports accordingly to the Board. The Audit and Risk
Committee monitors the financial reporting process and the
effectiveness of the Group’s and the Company’s internal control
and risk management systems.
The approval of the financial statements (Company and
Consolidated) by the Board is made after the relevant
recommendation of the Audit and Risk Committee.
7. Internal Audit
The internal audit is carried out by the Group Internal Audit
function. As of January 2020, the function assumed a broader role,
taking over responsibility for risk and compliance, in addition to
internal audit.
Internal Audit is an independent department with its own written
regulation, reporting directly to the Audit and Risk Committee.
The Group Internal Audit workforce consists of 17 executives duly
trained and having appropriate experience to carry out their work.
Two (2) new hires were added early 2020.
Internal Audit’s primary role is to monitor the effectiveness of the
internal control environment. Internal Audit’s scope also includes:
• monitoring implementation and compliance with the Company’s
Internal Regulation, Code of Conduct, Articles of Association and
applicable laws in all jurisdictions in which the Group operates;
• providing consulting services (e.g. new procedures review, new
IT systems post-implementation reviews);
• undertaking special assignments (e.g. fraud investigations)
During the year the Audit and Risk Committee received in total
34 internal audit reports. Likewise, the Audit and Risk Committee
received all progress reports referring to the most important audit
findings in 2020.
As already mentioned in the section referring to the work and
function of the Audit and Risk Committee, in all meetings held
by the Audit and Risk Committee, the Head of the Group Internal
Audit Risk & Compliance participated. The Head of the Group
Internal Audit Risk & Compliance had a number of meetings with
the Chairman of the Audit and Risk Committee pertaining to the
better preparation of the Audit and Risk Committee meetings with
regard to the Internal Audit.
Following relevant recommendation of the Audit and Risk
Committee, the Board of Directors approved the Internal Audit
plan for the year 2021 and specified the functions and areas on
which internal audit should primarily focus.
8. Remuneration report 2020
In accordance with the applicable provisions, this Remuneration
Report describes the remuneration paid on an individual basis
to the Members of the Board of Directors and the members of
the Management Committee, who are in charge of the daily
management.
8.1 Introduction
TITAN Cement Group delivered strong results in 2020, despite the
uncertainty caused by the COVID-19 pandemic. Group consolidated
Corporate Governance
and Risk Management
Management
Report
57
revenue at €1,607.0 million was stable compared to the previous
year. Earnings Before Interest, Tax, Depreciation and Amortization
(EBITDA) posted a solid increase of 7.1% to €286.2 million. This was
the highest EBITDA recorded since 2010. Net Profit after Taxes and
minorities (NPAT) dropped to €1.5 million (vs. €50.9 million in 2019)
as a result of significant non-cash charges taken representing the
full write-off of the €46.6 million goodwill of Titan Cement Egypt
and the derecognition of €17.3 million of accumulated deferred
tax assets, also in Egypt. Had these one-off charges not be taken,
NPAT would have been €65.4 million. The impact of the COVID-19
pandemic on our Group was clearly less severe than what was
initially expected. Overall construction activity escaped the full
brunt of the downturn, being allowed to continue as an essential
activity in most of our countries of operation.
Performance in 2020, was supported by resilient sales volumes
across most of our markets. In the US, sales were sustained at high
levels along all product lines. In Greece, demand showed further
recovery. In Southeastern Europe, performance was robust, while
Turkey posted strong domestic and export growth, while demand
also improved in Brazil. Performance in Egypt was disappointing
due to the ongoing challenges of that market. Pricing dynamics in
most of our markets benefited from resurgent levels of demand.
The favorable energy cost environment combined with successful
management of the Group’s cost base, enhanced profitability.
Trends in domestic sales volumes were positive across most
of our markets. Following the restrictions on activity in the
second quarter of the year, construction activity rebounded once
lockdown restrictions were eased, testifying to the underlying
resilience of market fundamentals across geographies. Group
cementitious materials’ sales increased by 1% compared to 2019,
reaching €17.1 million tons.
8.2 2020 Remuneration Policy
The 2020 Remuneration Policy was approved by the Annual
General Meeting of Shareholders that was held on 14 May 2020
and is aligned to a great extent with the implementation of the
European Shareholder Rights Directive II (“SRD II”).
The 2020 Remuneration Policy ensures that TITAN is remunerating
on the basis of the Company’s short and long-term business plan,
so as to continue creating value for customers, shareholders,
employees, societies and economies.
8.3 Target Pay Mix
The pie charts represent the fix/variable pay mix for the Executive
Directors and the members of the Management Committee (on
aggregate target average) in case of ‘on-target’ performance and
reflects the underlying pay-for-performance principles and
market-competitive reference of the Remuneration Policy.
The total amount of remuneration of the Executive Directors and
the members of the Management Committee is in line with the
Remuneration Policy adopted, linked to strategy, mechanisms
and relevant performance measures and contributes to the long-
term performance of the Company.
Main principles that govern the Remuneration Policy and contribute
to the Company’s business strategy and sustainability are:
• Establish a fair and appropriate level of fixed remuneration
aiming at attracting high caliber senior professionals who can
add value to the Company.
• Maintain a balanced approach between fixed and variable
remuneration, so as to avoid over relying on variable pay and
undue risk taking.
• Establish a balanced approach between short- and long-term
incentives, to ensure there is focus on short-term objectives
that will ultimately contribute to the creation of long-term
value creation.
• Alignment of executives to shareholder interests and long-
term value creation through long-term incentives where the
reward is linked to Company shares.
• Avoidance of undue risk taking by focusing on financial and
non-financial performance metrics in variable pay design.
29%
Board Executive Directors
(aggregate)
Short-Term Incentive
Plan (STIP)
Short-Term Incentive
Plan (STIP)
Long-Term
Incentive Plan (LTIP)
Long-Term
Incentive Plan (LTIP)
Fixed Remuneration
Fixed Remuneration
32%
26%
42%
Management Committee
(aggregate)
26%
45%
8.4 Labor Market
In setting the remuneration levels for the Managing Director,
as well as of the other Executive Directors and the members of
the Management Committee, the Remuneration Committee
gathers market insights from various relevant perspectives. These
reflect the relevant industries for the Company (e.g. Construction
Materials), the relevant geographies (e.g. Europe, and for specific
positions the US), and also take into consideration the size and the
scope of the Company and the respective positions.
The Remuneration Committee regularly reviews the Remuneration
Policy, in order to ensure continuous alignment with its principles,
as well as market trends and best practices. On an annual basis, the
Remuneration Committee recommends the levels of the annual
TITAN Cement Group
Integrated Annual Report 2020
58
remuneration of the executive directors and the members of the
Management Committee as well as of other Group executives on
the basis of their performance and responsibilities.
The Committee also recommends the levels of remuneration of
non-executive directors on the basis of their time commitment and
responsibilities.
In case of substantial changes, and at least every four years, the
Remuneration Policy is submitted for approval to the General
Meeting.
The level of remuneration for the Chairman of the Board of
Directors is decided by the General Meeting, following respective
recommendation of the Board of Directors and of the Remuneration
Committee. Likewise, the level of remuneration for the Managing
Director and the members of the Management Committee, is set
by the Board of Directors, following relevant recommendation
of the Remuneration Committee and in line with the applicable
Remuneration Policy.
8.5 New Deferred Compensation Plan
The DCP design is based on the principles set by the Remuneration
Committee in April 2019. As of 2021, the Company intends to
implement a Deferred Compensation Plan (“DCP 2021”) aiming at
further aligning the Senior Executives’ long term interests with
those of shareholders. Following relevant recommendation of the
Remuneration Committee, the Board decided the following:
The DCP will substitute of 20% of LTI of the eligible executives.
Payout will be linked to actual performance against set KPIs as
follows: 50% on Total Shareholders’ Return (TSR) of the Company’s
share vs the average TSR performance of the shares of a Peer Index
and 50% on a KPI linked to sustainability (net CO₂ emissions / ton of
cementitious material).
The peer group which formulates the index is the following (peer
group is set by the Board of Directors and may be changed, if
required):
1. Lafarge-Holcim 5. CRH
2. Heidelberg 6. Buzzi
3. Cemex 7. Argos
4. Cementir 8. Vicat
The performance period is three years. Flexibility is provided in ways
to receive vested benefit (e.g. cash, pension plan contributions).
Payout at threshold performance will be 40% with a maximum of
160% in case of overachievement (stretch) with linear calculation of
payout between the levels of achievement.
Ιn addition, the 2020 LTIP (Stock Grant) and two Restricted
Stock Option plans (RSIP 2014 and RSIP 2017), are still under
implementation.
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8.6 Variable pay schemes
Short-Term Incentive Scheme and Long-Term Incentive Plan awards are treated in accordance with the rules of the relevant plans.
Element of
Remuneration
Overview
Short-Term
Incentive
Scheme (STIP)
Target payout:
• Executive Directors of the Board and the Management Committee: up to 100% of Annual Base Salary
Maximum:
• In case of overachievement, the collective part of the STI is capped at 130% of target, the individual part
at 150% (in case of extraordinary performance) and the safety part at 200%
Performance Criteria:
• Financial Performance (up to 45%): EBITDA
• Individual Performance (up to 55%): combination of objectives and behaviors
• Safety (5%): Lost Time Injury Frequency Rate
Long-Term
Incentive
Plan (LTIP)
A new Long-Term Incentive plan (LTI) applied in 2020 in line with the approved 2020 Remuneration Policy.
Awards are granted to the plan participants in the form of a conditional grant of TCI shares. The individual
awards granted are based on each participant’s position, fixed salary, individual performance and potential
for development.
The LTI award granted to each participant is approved by the Board of Directors following relevant
recommendation by the Remuneration Committee.
The award has been defined up to 125% of Annual Base Salary for the Management Committee and the
Executive Directors of the Board.
The conditional grant of the number of TCI shares is determined based on the value of the TCI share at the
time of grant. The value of each “conditionally granted share” is equal to the average TCI share closing price
on Euronext Brussels during the last 7 trading days of March of the grant year.
The vesting schedule is 50% on year 3, 50% on year 4. Upon the completion of the vesting period, the
benefit of the employee is determined based on the value of TCI share at the time of vesting.
Upon vesting the Plan provides the flexibility to the eligible Executive, upon her/his request, to receive the
vested award as contribution to a company-provided pension plan investing mainly in TCI shares (Fund).
Participants are expected to maintain in TCI shares (or Fund(s)) at a minimum 20% of the total awards
vested during the last five (5) vesting years (rolling basis). TCI shares, as well as Fund(s) balance, already
owned by participants through previous LTI plans will be taken into consideration.
Special Trust Fund Plan (Fund)
Special Trust fund is a fund which invests in TCI shares. LTI participants may elect to receive their LTI
award as contributions in the Fund, and therefore their long term interests are still linked to TCI share.
Retirement
Allowance
Type of Plan:
Defined contribution plan
Maximum contribution: up to 10% of Annual Base Salary
Plan mechanism:
First tier: up to 8% of Annual Base Salary.
Second-tier: in addition to the 1st tier 8%, a further up to 2% is offered through matching the employee’s
contribution by a ratio of 1:2.
In the event Executives leave the Company prior to 5 years from the entry to the Program, any
contributions by the Company are lost.
No specific clauses and/or arrangements in relation to change in control are applicable. No variable remuneration claw back
mechanisms were used during FY2020.
TITAN Cement Group
Integrated Annual Report 2020
60
Executive Directors of the Board, Management Committee Remuneration packages as of January 1st, 2019
Name
Year
Annual
Base Salary
Board Fees
Allowances &
Other Benefits
1
Annual Variable
Compensation
2
Pension
Contribution
3
Long-Term
Incentives
(vested in
2020)
Total Annual
Compensation
Fixed
Compensation
Variable
Compensation
Year
Total Annual
Compensation
Board Executive Directors
Colakides Michael,
Managing Director
2020 417,900 50,000 34,317 390,166 41,790 141,017 1,075,190 51% 49% 2019 1,124,092
Papalexopoulos Dimitri,
Chairman of Group Executive
Committee
2020 506,250 30,000 14,482 547,126 50,400 232,936 1,381,193 44% 56% 2019 1,432,979
Papalexopoulou Alexandra,
Deputy Chair of Group
Executive Committee
2020 372,916 30,000 24,695 347,347 37,125 168,359 980,443 47% 53% 2019 909,587
Canellopoulos Leonidas 2020 156,887 30,000 10,506 69,677 9,368 6,607 283,046 73% 27% 2019 248,366
Canellopoulos Takis-Panagiotis* 2020 43,739 6,250 7,539 0 4,136 23,401 85,065 72% 28% 2019 308,000
Zarkalis Bill** (in €) 2020 571,531 30,000 232,593 522,024 46,040 158,824 1,561,012 56% 44% 2019 1,627,556
Management Committee Members
Dikaios Grigoris 2020 185,500 0 33,999 72,834 11,130 12,629 316,092 73% 27% 2019 306,617
Derdemezis Kostas*** 2020 222,742 0 33,582 171,265 21,505 165,591 614,685 45% 55% 2019 647,087
Panagopoulos Christos 2020 260,400 0 113,696 149,691 24,940 42,840 591,567 67% 33% 2019 581,835
8.9 Executive Directors’ and members of the Management Committee remuneration in 2020
* Amounts refer to period January 1st - March 31, 2020 during which T. Canellopoulos was Board Executive Director.
** Amounts include allowances linked to B. Zarkalis' international assignment in US and part of the Deferred 3-year assignment success bonus linked to 2020. Amounts, paid in $, are
converted into euro based on fx rate €/$ of 31/12/2020 for 2020 and on 31/12/2019 for 2019.
*** Amounts refer to period January 1st - October 31, 2020 during which K. Derdemezis was member of the Management Committee.
₁ Includes benefits and allowances: allowances (such as travel, housing, international assignment related allowance), life insurance, medical plan, company car.
² Cash payment.
³ Defined contribution.
8.8 Remuneration of Executive Directors and members of
the Management Committee in 2020
The remuneration of the Executive Directors and the members
of the Management Committee was approved by the Board
of Directors following relevant recommendation of the
Remuneration Committee and is in full compliance with the
2020 Remuneration Policy and thus contributes to the long-term
performance of the Company as set above in §8.3.
Given that the Company was established in 2019, the data
referring to the annual change in remuneration, expressed in full
time equivalents, of the Company’s employees other than the
directors, the members of the Management Committee and other
executives and the persons in charge of the daily management, are
presented jointly with respect to FY2019.
The annual change in the average remuneration, expressed in full time
equivalents, of the Company's employees other than the directors,
the members of the Management Committee, the other directors
and the persons in charge for the daily management for 2020 is
3% (or 85% including new recruitments added to the Company's
headcount in 2020). The ratio between the highest remuneration of
the management members and the lowest remuneration (in full time
equivalent) of the Company’s employees is 40 times.
8.7 Non-Executive Directors’ remuneration in 2020
As at 31.12.2020 the fees of the Non-Executive Directors for the year 2020, amounted to:
Non-Executive Director
Compensation by the Company
Board of Board Pro-bono
Efstratios-Georgios (Takis) Arapoglou €200,000 gross €15,000 gross No
Andreas Artemis €50,000 gross €10,000 gross No
William Antholis €50,000 gross €8,000 gross No
Harry David €50,000 gross €15,000 gross No
Kyriacos Riris €50,000 gross €20,000 gross No
Petros Sabatacakis* €10,417 gross €3,125 gross No
Stelios Triantafyllides €50,000 gross €8,000 gross No
Maria Vassalou €50,000 gross €10,000 gross No
Dimitris Tsitsiragos ** €39,483 gross €18,750 gross No
Mona Zulficar €50,000 gross €12,000 gross No
According to the 2020 Remuneration Policy,
non-executive directors do not receive
variable compensation linked to results
or other performance criteria. As a result,
non-executive directors are not entitled to
annual bonuses, stock options or performance
share units. Neither are they entitled to any
supplemental pension scheme.
Non-executive members of the Board are not
entitled to termination payment.
* Mr. Petros Sabatacakis was member of the Board of Directors until 19.3.2020
** Mr. Dimitris Tsitsiragos was elected as member of the Board of Directors on 19.3.2020
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Report
61
Name
Specification
of plan
Grant Date
Vesting Date
of 2020 Grant
Expiry Date***
Number of
Stock
grants in 2020
Number of
Fund* units
grant in 2020
Number
of Options
forfeited in
2020
Number of
Options Vested
in 2020
Exercise Price
Number
of Options
Exercised in
2020
Michael Colakides,
Managing Director**
Long-Term
Incentive
April
2020
31/3/2024 N/A -
75,805
-
8,974
-
0
Dimitri Papalexopoulos,
Chairman, Group Executive
Committee
Long-Term
Incentive
April
2020
50% on
31/3/2023
50% on
31/3/2024
N/A 52,430
0
-
14,955
-
0
Alexandra Papalexopoulou,
Deputy Chair, Group Executive
Committee
Long-Term
Incentive
April
2020
50% on
31/3/2023
50% on
31/3/2024
N/A 41,270
0
-
9,573
-
0
Leonidas Canellopoulos,
Board Executive Director
Long-Term
Incentive
April
2020
50% on
31/3/2023
50% on
31/3/2024
N/A 5,340
0
-
901 €10 379
Takis-Panagiotis Canellopoulos
1
,
Board Executive Director
Long-Term
Incentive
- - - - - - -
- -
Bill Zarkalis,
Board Executive Director
Long-Term
Incentive
April
2020
50% on
31/3/2023
50% on
31/3/2024
N/A 52,430
0
-
11,966 €10 26,016
Grigoris Dikaios,
CFO**
Long-Term
Incentive
April
2020
31/3/2024 N/A -
5,900 - 840 - 0
Konstantinos Derdemezis
2
,
Regional Business Director
Long-Term
Incentive
- - - -
0 28,270 - €10 4,191
Christos Panagopoulos,
Regional Business Director**
Long-Term
Incentive
April
2020
31/3/2024 N/A -
23,598 - 2,993 €10 2,956
* Fund invests in TCI shares.
** Management Committee members' 2020 LTI amount received as units of Fund which invest mainly in TCI shares.
*** 2020 Grant refers to Stock Grant and therefore expiry date is not applicable.
¹Up to March 31, 2020.
²Up to October 31, 2020.
8.10 Share-based Remuneration (for 2020)
8.11 2020 performance criteria and outcomes | Short-Term
Incentives
Following relevant recommendation by the Remuneration
Committee, the Board determines the most relevant
performance criteria for the short-term incentive plan. These
KPIs provide the framework for incentive schemes throughout
the Company. Additionally, the Board sets challenging, but
realistic target levels for each of those performance criteria.
The emphasis for 2020 was on financial metrics reflecting a focus on
profitability and securing strong liquidity, in line with the Company's
strategy to balance growth and profitability. These performance
criteria are an important measure of the success of the execution of
the Company’s strategy and, as such, the remuneration is directly
linked to long-term value creation by the Company.
The target levels are set in the first quarter of the year. During
2020 because of limited visibility caused by the pandemic, 2020
targets were set in July 2020 based on prevailing visibility at the
time. The market was not impacted to the extent forecasted
when the targets were set, and the Group supported by a strong
performance of almost all regions (East Med being a relative
exception) performed better than expected. As a result the
Board decided to pay accordingly for the overachievement linked
to collective targets. The final assessment is determined at the
end of the fiscal year, based on the audited financial results. Any
potential payout under the short-term incentive plan occurs
annually during the first semester of the next financial year.
A minimum level of performance must be achieved before any
payment under the plan will be made. Payout is capped for
stretch performance.
The final assessment of performance under the short-term
incentive plan is done by the Remuneration Committee, which
in turn makes the necessary proposal to the Board for decision
making.
In 2020, EBITDA at Group level were above target resulting in
a 127.5% in respective part of variable pay. It is noted that due
to the peculiarities linked to the COVID-19 crisis, the financial
metrics set for 2020 are linked 100% to EBITDA.
The Remuneration Committee considered the overall
performance and concluded to award the variable pay as above
for 2020.
TITAN Cement Group
Integrated Annual Report 2020
62
8.12 2020 performance criteria and outcomes | Long-Term
Incentives
As already mentioned, two Restricted Stock Option plans (the
RSIP2014 and the RSIP2017) are currently under implementation:
The 2014 Stock Options Plan (approved by the AGM of
TITAN Cement Company S.A. of 2014)
According to this three-year Plan, the Board of Directors was
entitled to grant up to 1,000,000 stock options at a sale price
equal to €10.00 per share. Beneficiaries of the 2014 Stock Option
Plan are executive directors, directors holding senior positions at
Group or Regional or Country level in companies of TITAN Group,
and a limited number of employees, standing out on a continuous
basis for their good performance, having a high potential for
advancement.
The vesting period of the stock options granted in 2014, 2015 and
2016 was three years. As a result, the granted options matured in
December 2016, December 2017 and December 2018 respectively,
provided that the beneficiaries were still employees of the
Group. After the completion of the three-year vesting period, the
Board of Directors, based on the following criteria, decided the
final number of options that the beneficiaries had the right to
exercise:
α. by 50%, based on the average three-year Return on Average
Capital Employed (ROACE) compared to the target of each
three-year period; and
b. by 50%, based on the overall performance of the Company's
TSR compared to the average overall performance of a
predefined international cement peer group:
1. Lafarge-Holcim 5. CRH
2. Heidelberg 6. Buzzi
3. Cemex (in US$) 7. Argos (in US$)
4. Cementir 8. Vicat
The Plan’s beneficiaries are entitled to exercise their stock
option rights, either in whole or in part, within the first five
working days of each month, paying the Company the relevant
amounts until the expiration date of their stock options, i.e. until
December of the third year after vesting of the stock options.
Based on the Board of Directors decision dated April 9, 2020 due
to COVID-19 market conditions, it has been approved for the
expiration date for the grant of 2014 to be extended for one year
to December 2021 and for the grant of 2015 to December 2022.
The 2017 Stock Options Plan (approved by the AGM of
TITAN Cement Company S.A. of 2017)
According to this three-year Plan, the Board of Directors is
entitled to grant up to 1,000,000 stock options at a sale price
equal to €10.00 per share. Beneficiaries of this Plan are the
executive directors, directors holding senior positions at Group
or Regional or Country level in companies of TITAN Group, and
a limited number of employees, standing out on a continuous
basis for their good performance, having a high potential for
advancement.
The vesting period of the stock options granted in 2017, 2018
and 2019 is three years. As a result, the granted stock options
mature in December 2019, December 2020 and December 2021
respectively, provided that the beneficiaries were still employees
of the Group. After the completion of the three-year vesting
period, the final option rights number which the beneficiaries
will be entitled to exercise, shall be determined by the Board of
Directors, within the first four months of 2020 (done), 2021 and
2022 respectively and shall depend:
a. by 50%, based on the average three-year Return on Average
Capital Employed (ROACE) compared to the target of each
three-year period; and
b. by 50%, based on the overall performance of the Company's
TSR compared to the average overall performance of a
predefined international cement producing companies peer
group:
1. Lafarge-Holcim 5. CRH
2. Heidelberg 6. Buzzi
3. Cemex (in US$) 7. Argos (in US$)
4. Cementir 8. Vicat
The Plan’s beneficiaries are entitled to exercise their stock
option rights, either in whole or in part, within the first five
working days of each month paying the Company the relevant
amounts until the expiration date of their stock options, i.e. until
December of the third year after these stock options have been
vested.
8.13 Executive Directors’ contracts
The employment contracts of the Managing Director of the
Company as well as of the other Executive Directors and the
members of the Management Committee are contracts of
indefinite duration.
In case of termination of the employment contract of the
Managing Director, the Executive Directors and the members of
the Management Committee, at the initiative of the Company,
severance payment, as provided in the 2020 Remuneration
Policy, cannot exceed 18 months’ remuneration.
For the payment of additional compensation in case of
retirement or early termination of employment, Board approval
is required following respective recommendation of the
Remuneration Committee.
Notice periods are according to statutory law provisions.
Mr. Konstantinos Derdemezis was member of the Management
Committee until October 2020. In alignment with the Company's
Remuneration Policy, severance payment of 12 months'
remuneration was offered to K. Derdemezis as a way for the
Group to express its appreciation for the loyalty, hard work and
flexibility during the last 23 years.
Mr. Takis-Panagiotis Canellopoulos was Executive member of
the Board till March 2020. Following this date, he continued his
employment with Titan Cement Company S.A. and therefore no
severance payment was paid in 2020.
Corporate Governance
and Risk Management
Management
Report
63
9. Information to be disclosed pursuant
to Article 34 of the Royal Decree of 14
November 2007
In accordance with Article 34 of the Belgian Royal Decree of 14
November 2007, the Company hereby discloses the following items:
9.1 Capital Structure – Transfer of Company Shares
As referred above, in Section 2.1, on 31 December 2020, the
Company’s share capital amounted to €1,159,347,807.86
represented by 82,447,868 shares, without nominal value, with
voting rights, each representing an equal share of the capital.
The shares of the Company are of the same class and are either
in registered or in dematerialized form. Holders of shares may
elect to have, at any time, their registered shares converted to
dematerialized shares, and vice versa.
The Company’s Articles of Association do not contain any
restriction on the transfer of the Company’s shares.
9.2 Restrictions on voting rights
Each Share of the Company corresponds to one vote at the
Shareholder’s Meeting.
Article 13 of the Company’s Articles of Association provides that in
the event shares are held by more than one owner, are pledged, or
if the rights attached to the shares are subject to joint ownership,
usufruct or any other kind of split-up of such rights, the Board of
Directors may suspend the exercise of such voting rights until a
sole representative of the relevant shares is appointed.
9.3 Shares conferring special control rights
None of the Company shares carries any special rights of control.
9.4 Agreements between Shareholders of the Company,
which are known to the Company and contain restrictions
on the transfer of shares or on the exercise of voting rights
It is known to the Company, following the transparency declaration
received on September 7, 2020 and changes in shares that did not
require a transparency declaration due to the fact that the 5%
threshold was not exceeded either upwards or downwards, that the
following shareholders, holding in total 29,416,847, corresponding
to 35.68% of the Company’s voting rights, are acting in concert:
Andreas Canellopoulos, Leonidas Canellopoulos, Nellos-Panagiotis
Canellopoulos, Pavlos Kanellopoulos, Takis-Panagiotis Canellopoulos,
Trust Neptune, Alexandra Papalexopoulou, Dimitri Papalexopoulos,
Eleni Papalexopoulou and E.D.Y.V.E.M. Public Company Ltd.
9.5 Control mechanism of any employee scheme where the
control rights are not exercised by the employees
There is no employee scheme with such a mechanism.
9.6 Amendment of the Company’s Articles of Association
Any amendment of the Company’s Articles of Association must
be approved by the Extraordinary Shareholders’ Meeting and at
least 50% of the share capital must be present or represented. If
such quorum is not met at the first Extraordinary Shareholders’
Meeting, a new Shareholders’ Meeting may be convened and shall
validly deliberate and resolve irrespective of the share capital
present or represented.
An amendment of the Company’s Articles of Association is adopted
if it has obtained three-quarters of the votes cast, whereby
abstentions are not taken into account either in the numerator or
in the denominator.
9.7 Rules governing the appointment and replacement of
Board Members
Pursuant to Article 17 of the Company’s Articles of Association, the
Company is managed by a Board of Directors that shall consist of
a minimum of three and a maximum of fifteen directors, who shall
be natural persons or legal entities, whether or not shareholders,
appointed by the Shareholders’ Meeting.
The directors are appointed for a maximum term of three years
and may be reappointed. Their mandate may be revoked at any
time by the Shareholders’ Meeting.
When a legal entity is appointed a director, it must specifically
appoint an individual as its permanent representative to carry
out the office of director in the name and on behalf of the legal
entity. The appointment and termination of the office of the
permanent representative is governed by the same disclosure
rules as if the permanent representative was exercising the
office on his/her own behalf.
Should any of the director’s mandates become vacant, for
whatever reason, the remaining directors may temporarily
fill such a vacancy. The next Shareholders’ Meeting must
confirm the mandate of the co-opted director; in case of
confirmation, the co-opted director finishes the mandate of his
or her predecessor, unless the Shareholders’ Meeting decides
otherwise. If there is no confirmation, the mandate of the
co-opted director expires immediately after the Shareholders’
Meeting, without prejudice to the validity of the composition of
the Board of Directors until that date.
As long as the Shareholders’ Meeting or the Board of Directors, for
whatever reason, does not fill such vacancy, the directors whose
mandate has expired remain in function if the Board of Directors
would otherwise no longer consist of the minimum number of
directors required by law or the Company’s Articles of Association.
9.8 Powers of the Board of Directors
The Board of Directors is vested with the power to perform all acts
that are necessary or useful for the realization of the Company’s
purpose, except for those which the law or the Company’s Articles
of Association reserve to another corporate body.
The powers of the Board of Directors are further detailed in
the Company’s Articles of Association and in the Company’s CG
Charter, which are both available on the Company’s website
(https://www.titan-cement.com/) at the link: https://www.titan-
cement.com/about-us/corporate-governance/.
9.9 Power of the Board of Directors to issue and buy-back
shares
9.9.1
The Board of Directors, pursuant to article 6 of the
Company’s Articles of Associations and the relevant resolution of
the Shareholders’ Meeting of 13 May 2019, may increase the share
capital of the Company in one or several times by a (cumulated)
amount of maximum €1,106,211,679.40. The Board of Directors can
exercise this power for a period of five (5) years as from the date
of publication of the Annexes to the Belgian State Gazette of the
completion of the condition precedent of the amendment to the
Company’s Articles of Association approved by the Extraordinary
TITAN Cement Group
Integrated Annual Report 2020
64
Shareholders’ Meeting of 13 May 2019. This authorization may be
renewed in accordance with the relevant legal provisions.
9.9.2 Pursuant to Article 15 of the Company’s Articles of
Association, the Company may, without any prior authorization
of the Shareholders’ Meeting, in accordance with articles 7:215ff
of the Belgian Companies and Associations Code and within
the limits set out in these provisions, acquire, on or outside a
regulated market, its own shares, which correspond to maximum
20% of the issued shares, for a price which will respect the legal
requirements, but which will in any case not be more than 20%
below the lowest closing price in the last thirty trading days
preceding the transaction and not more than 20% above the
highest closing price in the last thirty trading days preceding the
transaction. This authorization is valid for five years from the date
of the publication of the completion of the condition precedent of
the amendment to the Company's Articles of Association approved
by the Extraordinary Shareholders' Meeting of 13 May 2019.
This authorization covers the acquisition on or outside a regulated
market by a direct subsidiary within the meaning and the limits
set out in article 7:221ff of the Belgian Companies and Associations
Code. If the acquisition is made by a direct subsidiary, the
dividends attached to the shares held by the subsidiary go to the
subsidiary.
The Board of Directors is authorized, subject to compliance with
the provisions of the Belgian Companies and Associations Code,
to acquire for the Company's account the Company's own shares
if such acquisition is necessary to avoid serious and imminent
harm to the Company. Such authorization is valid for three years
as from the date of publication of the completion of the condition
precedent of the amendment of the Company's Articles of
Association, approved by the Extraordinary Shareholders’ Meeting
of 13 May 2019, in the Annexes to the Belgian State Gazette.
The Board of Directors is authorized to divest itself of part of or
all the company’s shares at any time and at a price it determines,
on or outside the stock market or in the framework of its
remuneration policy to personnel or directors of the company or
to prevent any serious and imminent harm to the Company. The
authorization covers the divestment of the Company's shares by
a direct subsidiary within the meaning of the Belgian Companies
and Associations Code. The authorization is valid without any time
restriction, irrespective of whether the divestment is to prevent
any serious and imminent harm for the Company or not.
9.10 Important agreements which come into effect, are
amended or terminated in the event of change of control
of the Company, following a public tender offer
The Company has not entered into agreements, which come into
effect, are amended or terminated in the event of a change of
control of the Company, solely following a public tender offer.
It should be noted, though, that the Company has entered
into, as it is common, in agreements with a “change of control”
clause, specifying the right of the lending bank to request the
early repayment of the loan or the exit of the counterparty from
a company of the Group, in the event of a change of control in
the Company. In particular, a Multicurrency Revolving Facility
Agreement up to the amount of €200 million has been entered
into among the Group’s subsidiary TITAN Global Finance PLC,
a syndicate of lending banks, the Company and TITAN Cement
Company S.A. as Guarantors.
9.11 Agreements between the Company and the Board
Members or employees providing for compensation if the
Board Members resign or are made redundant without
valid reason or if the employment of the employees ceases
because of a takeover bid
The Company has not entered into any agreement with members
of the Board of Directors or employees providing for the payment
of compensation upon their resignation or dismissal without
valid grounds or upon termination of their tenure or employment,
due to a public tender offer.
10. Shareholder Information and Services
The Board as a whole is responsible for ensuring that a
satisfactory and effective dialogue with shareholders. The
Investor Relations team, together with the Managing Director,
the CFO and other Group executives, regularly meet with
institutional investors and participate in investor roadshows
and industry conferences. The announcements of the annual
and the interim Group results are accompanied by webcasts and
conference calls with analysts and investors.
All the regulatory and non-regulatory announcements, as well as
all other information related to the Company are available on the
Company’s website: www.titan-cement.com.
10.1 Investor Relations Department
The Investor Relations Department is responsible for monitoring
Company relations with its shareholders and investors, and for
communicating with the investor community on an equal footing,
in a transparent and timely manner concerning the Company’s
performance. The aim is to generate long-term relationship with
the investment community and retain the high level of trust that
investors have in the Group.
Investor Relations: ir@titan-cement.com
Investor Relations Director: Afroditi Sylla,
e-mail: syllaa@titancement.com
10.2 Shareholder Services Department
The Shareholder Services Department is responsible for providing
timely information to shareholders and for facilitating their
participation in General Meetings and to exercising their rights as
shareholders. The Department is also responding to correspondence
from shareholders on a wide range of issues.
Shareholder Services Manager: Nitsa Kalesi, e-mail: kalesin@titan.gr
10.3 Share Facts
10.3.1 Share Basic Data
Sector 5010 – Construction & Materials
Subsector 50101030 – Cement
Type Common share
Stock Exchange Euronext (Brussels & Paris), Athens Exchange
Number of shares 82,447,868
ISIN BE0974338700
CFI code ESVUFN
10.3.2 Tickers
Oasis Reuters Bloomberg
Euronext TITC TITC.BR TITC.BB
ATHEX TITC TITC.PA TITC.GA
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TITAN Group is active in a diverse geographical, business and
operational landscape, resulting in a multitude of potential risk
exposures, including strategic, sustainability (ESG), operational
and financial risks.
In order to effectively identify and mitigate such exposures,
the Group manages its risks in accordance with established
international practices for industrial companies, embedding
key dimensions of Enterprise Risk Management (ERM) into its
processes, systems, and governance. In particular, the following
five main components of the ERM framework supported by a set
of principles, provide the basis for the Group’s understanding and
management of risks associated with its strategy and business
objectives:
a. Governance and Culture, including oversight model, operating
structures, definition of desired cultural traits and commitment
to core values and development of appropriate talent;
b. Strategy and Objective-setting, including definition of risk
appetite, analysis of context, evaluation of options, and
formulation of strategic objectives;
c. Performance, including risk identification, assessment, and
prioritization, implementation of responses, and development of
risk portfolio view;
d. Review and Revision, including reviews of risk and performance,
assessment of changes, and continuous improvement of
approach;
e. Information, Communication, and Reporting, including
communication of risk information, use of IT, and reporting of
risk performance.
Risk Management process
TITAN's Risk Management approach includes management
practices to actively address risk, helping to safeguard the long-
term sustainability of its business. It comprises a management
system including strategy-setting, organization, governance,
policies, reporting, communications with stakeholders, and
measurement of performance across all units of the Group.
The Board has overall responsibility for determining the nature and
extent of the principal risks that the Group is willing to assume in
achieving its strategic objectives. Risks are addressed on a day-
to-day basis by the Group’s management at various levels in the
organization according to the nature of each risk. As a result, risks
are identified and quantified using multiple sources and are reported
in the course of the planning and performance management cycle of
the Group, ensuring a quick and effective response.
Complementing this risk management culture and approach that
is integral to the Group’s business processes and decision-making
(both strategic and operational), the Group undertakes on a regular
basis a systematic exercise to assess all material risks faced by
the Group that could affect its business model, performance,
solvency, or liquidity. This exercise was also performed in 2020
by a risk management committee consisting of senior managers
from the Group’s Strategic Planning, Legal and Internal Audit, Risk
and Compliance departments, which identified the Group’s main
risks and categorized them as “strategic”, “operational”, “ESG”, and
“financial” risks.
These were then assessed along the following three dimensions,
in line with industry best practices:
a. Probability: scale from 1 (Rare) to 5 (Almost certain)
b. Impact: scale from 1 (Incidental) to 5 (Extreme)
c. Preparedness: scale from 1 (Low) to 5 (High)
Risks were categorized using established risk taxonomies relevant
for the Group’s business (provided by consultants and external risk
experts). They were then assessed using a variety of techniques,
including the benchmarking of sector practices, enriched with
the advanced practices of other industries, the qualitative and
quantitative assessment of the risk elements, the evaluation
of possible outcomes against the Group’s strategic objectives,
the risk elaboration of the Group’s material issues (as defined in
the recent Materiality Assessment exercise), the evaluation of
risk ownership and the recording of mitigating actions that are
adopted or planned. The initial assessment was iterated with input
from key Group managers. The risks were then cross-referenced
with the final output of the Group’s materiality assessment
exercise and reviewed by the Group Executive Committee. Finally,
the Board validated the relevant risk assessment and monitored
TITAN’s risk management and internal control systems, reviewing
their effectiveness (covering all material controls, including
financial, operational, organizational, and compliance controls).
Risk Management governance
and controls
In TITAN Group, risk is managed at three levels, in line with
industry best practices.
Risks are managed on a day-to-day basis by the Group’s
management at various levels in the organization according to the
nature of each risk. TITAN’s risk governance framework follows
a customized approach that best addresses the particularities of
each risk area and ensures the optimum degree of risk ownership
and accountability for the appropriate mitigation actions. Frontline
management executes its risk management role in accordance
with policies and standards, monitors and mitigates risks as part
of performance management, and identifies and escalates risks as
required. This first level of management includes the integration
with key business processes (e.g. capital expenses review stage
gates, M&A review, strategic planning).
At a second level of risk governance and control, the central risk
team (i.e., the Internal Audit, Risk & Compliance unit) ensures
adherence to the ERM framework and internal policies and
monitors its systematic assessment by aggregating risk insight,
integrating input and analysis across the Group, and sharing
policies and recommendations across the organization.
At the senior level, the Board has the overall responsibility for
determining the nature and extent of the principal risks that the
Group is willing to assume in achieving its strategic objectives.
The Board, through all its Committees, discusses and assesses
on a regular basis the main areas of risk to which the Group is
exposed, identifies new risks, defines the risk appetite of the
Group and monitors the effectiveness of the risk management and
internal controls. The Board has delegated responsibility for the
monitoring of the effectiveness of the Group’s risk management
and internal control systems to the Audit and Risk Committee.
Risk Management
TITAN Cement Group
Integrated Annual Report 2020
66
In parallel, the Group Executive Committee provides strategic
direction, an independent view of risks among all operating units,
and coordination among them as needed.
According to this framework, strategic and financial risks are
managed mainly by the Group Executive Committee, Group
Finance, and the Capex Committee. The management of most
operational and sustainability risks is to a large extent embedded
into the daily operation and processes of the local business units.
A number of risks, including legal and compliance risks, as well as
operational and sustainability risks, including environmental risks,
risks regarding energy and fuel prices, availability and cost of raw
materials, safety at work, labor issues, brand, and reputation, are
managed both at Group level by the Group Executive Committee
and the competent Group functions (Internal Audit, Risk &
Compliance, Group Legal, Group Procurement, Group Corporate
Affairs, Group IT, Group Communication, Group HR) and also at
the local business unit level (BU Legal, Procurement, Corporate
Social Responsibility, HR units). This approach ensures that line
management owns all the operational and sustainability risks that
occur at the level of individual businesses and enables a strong
risk culture embedded in all relevant decision-making. At the same
time, all risks of higher magnitude that are relevant at Group level
are managed centrally, aggregating risk data points from multiple
sources across the organization, integrating insights, and crafting
mitigating action plans that can be shared among all appropriate
organizational levels.
The Group Executive Committee is also responsible for setting
Group policies and ensuring that they are implemented throughout
the Group. To that end, a set of Policies provide the necessary
framework and reference point for a number of risk areas. In
parallel, the ethics and compliance programs implemented
throughout TITAN’s operations ensure that the Group’s principles
and values are integrated into the day-to-day operations and the
risk management culture is reinforced across the Group.
The effectiveness of the systems and policies implemented at
Group and business unit level are systematically reviewed by the
Group Executive Committee and the business units’ management,
including for compliance with relevant standards of the Group.
Whenever weaknesses are identified, corrective measures are
taken.
Group Internal Audit, Risk, and Compliance reports on the
effectiveness of the risk management and internal control
frameworks to the Audit and Risk Committee on a regular basis.
The Board and the Audit and Risk Committee receive on a regular
basis management reports on the key risks to the business and
the steps taken to mitigate such risks and to consider whether the
significant risks faced by the Group are being properly identified,
evaluated and managed.
TITAN’s principal risks
Strategic risks
• Climate change mitigation and adaptation
The cement industry is potentially sensitive to ever more stringent
carbon regulations. For example, the Group’s operations in Greece
and Bulgaria are required to comply with an EU-wide cap and
trade emissions scheme, namely the European Trading Scheme
(ETS), under which industrial installations must report and
control their CO₂ emissions on an annual basis. This may result
in additional capital expenditure and reduced profitability due
to increases in operating costs; because of this, the Group may
face increased competition from cement producers operating
outside the EU, which do not incur ETS compliance costs. A mulled
Carbon Border Adjustment Mechanism (CBAM) to protect against
“carbon leakage” is still under design and may eventually prove
ineffective. Beyond operations in the EU, additional countries in
Titan’s footprint that do not face stringent carbon regulations
today could in the future adopt CO₂ pricing or other carbon
regulations, resulting in an uneven playing field if “carbon leakage”
is not adequately addressed (for example resulting in reduced
competitiveness of exports).
Moreover, the surging climate agenda may promote the use of
concrete substitutes for construction as more environmentally
friendly for end users.
Finally, the possible increase in the frequency of extreme natural
events (physical risks such as hurricanes, storm surges, flooding,
wildfires, etc.), potentially as a result of climate change, could
disrupt our asset base and production and/or distribution capacity.
The Group closely monitors relevant regulatory developments
and takes proactive measures to mitigate potential negative
consequences. A scenario-modelling approach has been adopted
for the examination of possible outcomes (transitional risks) and
the identification of appropriate roadmaps of mitigating actions
for the safeguarding of the Group’s business resilience. Such
measures include the reduction of the amount of clinker used in the
production of cement, the use of alternative fuels, energy efficiency
measures, the development of new products (including low-carbon
clinker), and continuous innovation across the value chain. Indeed,
the Group is engaging in research collaboration with the scientific
community on less carbon-intensive cements and concretes (e.g.
using cementitious materials and chemical additives) to develop and
promote the use of new “green” concretes and create a level playing
field versus other building materials.
With regards to the mitigation of the effects of possible physical
impacts on the Group’s assets from extreme natural events caused
by climate change, the company is implementing a set of proactive
protective measures for its assets and developing continuously
updated emergency plans. The Group also ensures adequate
insurance policies against physical damage or temporary loss of
business, as well as the ready availability of sufficient liquidity to
absorb any potential impacts.
• Industry cyclicality
The building materials industry is dependent on the level of
activity in the construction sector, which tends to be cyclical
and dependent on various factors, including, but not limited to,
the level of infrastructure spending, the demand for private and
commercial real estate, mortgage lending, local economic activity,
inflation, and interest rates. The Group’s business, operational
results, or financial condition could be adversely affected by a
continued deterioration of the global economic outlook or cyclical
weakness in the construction industry on a global scale or in a
significant market in which it operates.
• Market conditions
The Group operates both in mature markets, such as the USA and
Western Europe, and in emerging markets, such as Egypt, Turkey,
and Brazil. Some of these markets contribute significantly to
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the Group’s revenues and/or profitability. As a result, any future
deterioration in the global economic environment, or in any
particular market, that contributes significantly to the Group’s
revenues and profitability could have a material adverse effect
on the construction sector, and consequently, on the Group’s
business, operational results and financial condition.
• The concentration of a large proportion of the Group’s
business, operations, and assets in the USA
A large proportion of the Group’s business, operations, and assets
is concentrated in the USA, in particular in Virginia, Florida, North
and South Carolina, and New Jersey, and the Group’s operational
results are heavily dependent on the Group’s performance in
the USA. In addition, the Group’s financial performance in the
US market is heavily affected by fluctuations in the US dollar-
euro exchange rate, with a weakening of the dollar against
the euro having a significant negative effect on the Group’s
operational results on a consolidated level. Any decrease in
cement consumption, building activity, or public spending on
infrastructure in any of the US markets in which the Group
operates, or a combination of the above, or any depreciation of the
US dollar against the euro, could have a material adverse effect on
the Group’s operating performance, business and profitability.
• Political and economic uncertainty
The Group operates and may seek new opportunities in emerging
markets with differing and, at times, volatile economic, social
and political conditions. These conditions could include political
unrest, civil disturbance, currency devaluation, and other forms
of instability and may result in sudden changes to the operating
and regulatory environment. Changes in these conditions may
adversely affect the Group’s business, operational results, financial
performance and/or prospects.
The annual budgeting and strategic review process, along with
the regular monitoring of financial results and forecasts, helps
track political and economic events that may create uncertainties
regarding financial performance. Where political tensions are
heightened, mitigation measures are in place to provide maximum
protection of TITAN’s people and assets.
• Global systemic disruption including COVID-19
pandemic risk
Global-level disruptions can affect the Group’s operations in
diverse and largely unpredictable ways but have a common thread:
they would impact almost all our BUs/areas of operation (vs. more
localized impacts). Such events could have a multitude of sources,
for example:
• Climate, e.g. extreme weather events, environmental disasters;
• Societal, e.g. pandemics causing loss of demand due to economic
downturn and loss of production due to health crisis (including
COVID-19), crises of essential resources (food, water);
• Large scale conflicts, e.g. interstate conflicts, trade wars causing
disruptions in supply chains;
• Global data infrastructure, e.g. nationwide cyberattacks, global
information & communication infrastructure compromises
disrupting global and/or regional financial and trade systems.
To anticipate and mitigate the effects of such globally relevant
macro disruptions, the Group is engaging in risk assessments,
scenario evaluation, and contingency planning at strategic,
operational, and people (health & safety) levels. In addition,
disaster-control protocols to mitigate the effects of health and
safety-related crises are continuously updated, and financial
resilience measures to bolster the Group’s balance sheet and
insurance coverage are effected. On a strategic level, the Group’s
geographical diversification can provide a high degree of resilience
against the effects of more regional disruptions.
A particular focus on the potential risk assessment of COVID-19
(SARS-CoV-2) was placed in 2020, given the prevalence of
the global pandemic. The potential effects of the pandemic
assessed early in the course of the health crisis encompassed
dimensions such as the health and wellbeing of personnel,
disruptions in production capacity of our assets, the drop of
demand for the Group’s products in particular markets and supply
chain disruptions affecting the local and international flows of
materials and people. To address such potentially emerging risks
a contingency plan was developed, including COVID-specific
workplace health protocols and policies, review of production and
supply chain processes, safeguarding of critical supplies, dedicated
reporting to enhance the ability to detect potential impacts in
our markets, and a focused plan to bolster the financial health
and resilience of the Group. These measures, which successfully
addressed the relevant risks in 2020, are being continuously
evaluated and reviewed to enable the Group to adapt to the
evolving COVID pandemic.
Financial risks
The Group, due to the nature of its business and its geographical
positioning, is exposed to financial risks associated with foreign
currency, interest rates, liquidity, and leverage, as well as
counterparties. Financial risks are managed by Group Finance and
Treasury.
The Group does not engage in speculative transactions or
transactions which are not related to its commercial and
business activities.
• Foreign currency risks
Group exposure in foreign currency derives from existing or
expected cash flows and from acquisitions and/or investments
denominated in currencies other than the euro. The Group’s net
foreign currency transaction risk mainly arises from USD, EGP, RSD,
LEK, GBP, BRL, and TRY.
Natural hedges (equity invested in long-term fixed assets and
borrowings in the same currency as the activities that are being
financed), currency swaps, and forward foreign currency contracts
are used to manage currency exposures.
• Interest rate risks
The Group’s exposure to interest rate changes and increased
borrowing costs are managed through employing a mix of fixed-
and floating-rate debt and interest rate derivatives, where
appropriate. The ratio of fixed to floating rates of the Group’s
borrowings is decided on the basis of market conditions, Group
strategy, and financing requirements.
As at 31 December 2020, the Group’s ratio of fixed to floating
interest rates stood at 93%/7% (31 December 2019: 92%/8%).
TITAN Cement Group
Integrated Annual Report 2020
68
• Liquidity and leverage risks
In order to manage liquidity risks and to ensure the fulfilment of
its financial obligations, the Group maintains sufficient cash and
other liquid assets, as well as extensive committed credit lines
with several international banks, which complement its operating
cash flows.
The Group’s financial position allows it to have access to the
international financial markets and raise needed funds.
• Counterparty risks
Counterparty risk relating to financial institutions’ inability
to meet their obligations towards the Group deriving from
placements, investments, and derivatives, is mitigated by pre-
set limits on the degree of exposure to each individual financial
institution as well as by utilizing the collateral mechanism of credit
support agreements (ISDA CSA Agreement). As at 31 December
2020, the majority of Group liquidity was held with investment-
grade financial institutions with pre-agreed credit support
agreements.
The Group is also exposed to counterparty risks relating to
customer receivables. Customer receivables primarily derive from a
large, widespread customer base. The financial status of customers
is constantly monitored at the business unit level and, where it
is deemed necessary, additional security is requested to cover
credit exposure. As at 31 December 2020, all outstanding doubtful
receivables were adequately covered by relevant provisions.
Environmental, Social and Governance (ESG) Risks
• Health and safety
Cement production and the operation of quarries and ready-mix
facilities have inherent safety risks which could be influenced
by factors outside the Group’s control. Ensuring health and
safety and preventing accidents at work is a priority for TITAN.
Excellence in the area of health and safety is embedded in all
TITAN operations and activities. The Group has implemented
detailed policies and procedures promoting Health and Safety,
including the coverage by an adequate number of safety
engineers in all production units. Particular emphasis is placed
on training and raising safety awareness and on the strict
application of safety systems and processes.
TITAN’s Group Health and Safety Policy mandates assessment of
all incidents, proactive planning, the setting of specific targets,
safety training, and the monitoring of progress. Health monitoring
of employees is performed regularly.
In parallel with all the other preventive measures, TITAN’s
production and construction sites are regularly audited by the
Group’s safety specialists.
• Risks related to the environment
The Group’s operations are subject to extensive environmental
and safety laws and regulations in the USA, the EU, and elsewhere,
as interpreted by the relevant authorized agencies and the
courts. These may impose increasingly stringent obligations and
restrictions regarding, among other things, land use, remediation,
air emissions, waste and water, and occupational and community
health and safety. The costs of complying with these laws and
regulations are likely to increase over time. With a view to
continuously managing the environmental impact of its operations,
TITAN applies in all its plants management systems to monitor
and report their environmental impact. The Group’s Environment
Policy and environmental management provide targets for the
reduction of air emissions, the protection of biodiversity, water
and waste management, and quarry rehabilitation. In 2020, there
was one case of a significant fine related to non-compliance of
TITAN operations with environmental laws
2
.
2
In the USA,32,434 euros were paid by Titan Florida LLC for settlement of
violations issued to the Pennsuco cement facility in 2018 for infractions
concerning air emissions monitoring and reporting. Titan Florida LLC and in
specific Pennsuco has made changes to their internal reporting procedures
to avoid any such occurrences in the future.
• Human Resources, Diversity & Inclusion
Cement companies, including ΤΙΤΑΝ face a multitude of potential
risks related to their human resources and talent management.
Existing processes to recruit, develop and retain talented
individuals and promote their mobility may be inadequate, thus
potentially giving rise to risks of employee and management
attrition, difficulties in succession planning, and an inadequate
pipeline of future talent, potentially impeding the continued
realization of high operational performance and future growth.
Moreover, success in enforcing its Human Rights and Diversity
and Inclusion policies is increasingly crucial in determining how
the Group is perceived by key stakeholders, such as current
and prospective employees, consumers, and investors. Greater
diversity in the Group’s human capital increases the likelihood
of innovation that contributes to business growth, and higher
degrees of inclusion foster better employee engagement,
productivity, and company loyalty, resulting in higher talent
retention rates and overall employee engagement.
ΤΙΤΑΝ is actively pursuing a rich agenda of actions to develop
its talent management, including the updating and diffusion of
its relevant HR policies (such as its Human Rights and Diversity
& Inclusion policies) and people development processes.
Relevant measures pursued include employee surveys, focus
groups for feedback, training and capability-building programs,
adoption of Diversity & Inclusion global best practices, provision
of ubiquitous access to the TITAN Group reporting platform
EthicsPoint®, and the fostering of a continuous dialogue on
industrial relations with all relevant stakeholders.
• Regulatory compliance risk
The Group is subject to many local and international laws
and regulations, including those related to competition law,
corruption, and fraud, across many jurisdictions of operation and
is therefore exposed to changes to those laws and regulations
and to the outcome of investigations conducted by governmental,
international or other regulatory authorities. Potential breaches
of local and international laws and regulations in the areas of
competition law, corruption, and fraud, among others, could result
in the imposition of significant fines and/or sanctions for non-
compliance, and may inflict reputational damage. To address such
risks, all operations are continuously monitored by the Group Legal
and Group Internal Audit, Risk and Compliance departments and
appropriate training is conducted to ensure that the Group’s Code
of Conduct and relevant Group Policies are effectively adhered to.
Exposure to the risk of corruption is also systematically monitored
at local and Group levels, and relevant reports provided by
independent organizations such as Transparency International,
are examined. Following the publication of 2020 Transparency
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International Corruption Perception Index (see Table 5 in the
section “Management Report, ESG Performance Statements”),
the perception of corruption follows a negative trend for 50% and
a positive trend for 50% of the countries where TITAN currently
operates.
Operational Risks
• Production cost (including raw materials and energy)
Thermal and electrical energy and fuel costs, freight rates
or other transportation costs, and the cost of raw materials
constitute the most important elements of the Group’s cost
base. Increases or significant fluctuations in energy and fuel
costs, freight rates, or other transportation costs could adversely
affect the Group’s operational results, business, and financial
condition, especially if it is unable to pass along higher input
costs to its customers.
In order to reduce costs and also curtail its environmental
footprint, the Group is investing in low energy-requirement
equipment and in energy efficiency. Ensuring access to the
required quality and quantity of raw materials is an additional
priority, which is taken into account when planning a new
investment. With regard to existing facilities, care is taken to
secure the adequacy of the supply of raw materials during the
facilities’ entire lifetime.
The Group is investing in the use of alternative raw materials in
order to gradually limit its dependence on natural raw materials.
• Risks arising from various risks of business interruption,
including as a result of natural disasters
Beyond the risks associated with extreme natural events as a
potential consequence of climate change described above, the
Group is subject to stringent and evolving laws, regulations,
standards, and best practices with respect to the environment,
relating to, among other things, climate change, noise, air,
water, and soil emissions, as well as waste disposal. The costs of
complying with these laws and regulations are likely to increase.
With a view to the continuous improvement of the environmental
impact of its operations, TITAN applies in all its plants
management systems to monitor and report their environmental
impact.
• Cybersecurity risks
Cyberattacks may compromise the Group’s IT (Information
Technology) and OT (Operations Technology) systems, data, and
operations. There is a variety of potential threat actors (from
internal staff to full-scale shadow organizations), with a diverse
level of motivation, sophistication of attack systems, skills, and
resources. Attacks could range from incidental in a minor location
or domain, to a plant-specific event, company-wide attacks
and even attacks affecting the broader industry and its external
partners (suppliers, banks, customers).
Loss or corruption or leakage of data may be crucial for:
• sales, purchases, or financial transactions (incl. banking fraud)
• confidentiality and GDPR-related commitments
• operations (e.g., plant operational data used by control systems)
IT systems’ breakdown or corruption could require lengthy
remediation action, while OT systems breakdown or corruption
could cause operational disruption in our plants and loss of
production.
The Group is taking a variety of measures to address such
risks, including the analytical understanding of such threats
and the creation of detailed mitigation plans, the development
of cybersecurity policies and procedures (including the Group
Information Security Policy), the increase of underlying security of
critical IT and OT assets, the development of operational recovery
plans, and the implementation of monitoring and reporting
protocols on identified potential risks.
• Supply Chain Disruption
The integrity and profitability of the Group’s production and
customer-facing operations depend on its ability to safeguard
critical resources for the uninterrupted manufacturing of its
products. Scarcity of natural resources, such as water and
aggregates reserves, could have a materially adverse effect on the
Group’s costs and operational results.
Additionally, should existing suppliers cease operations or reduce
their production of key materials and production inputs, sourcing
costs for the Group could increase significantly or necessitate the
search for alternatives.
To mitigate such risks, the Group constantly evaluates its supply
chain resilience, develops strategic options for the provision of
its most critical supplies, and seeks to secure production inputs
through short and long-term contracts to ensure the necessary
quantity, quality, and availability of required products. It also
strives to secure long-term raw material reserves for its most
critical production inputs. Finally, by deploying a scenario-logic in
its planning processes, the Group is proactively developing flexible
and resilient sourcing strategies to withstand possible variability in
the supply markets.
TITAN Cement Group
Integrated Annual Report 2020
70
ESG
performance
review
An overview of our performance
on the environmental, social and
governance pillars, and our ESG
statements.
Management Report
71
72
ESG performance
review
TITAN’s ESG performance overview covers issues identified
and prioritized as material to our key stakeholders. Climate and
energy, occupational health and safety, people management and
development, environmental management, and sustainability of
communities remained at the top of the list of the Group material
issues. Governance, transparency, and business integrity are also
acknowledged among the material and relevant issues for TITAN
and its stakeholders. In the 2020 Management Report, the term
“non-financial” has been replaced by “ESG” as it is of broader
understanding and use by stakeholders and users of the annual
report. In addition, a section on TITAN’s response to the pandemic
has been added as it was among the Group’s top priorities during
the reporting year.
TITAN’s response to COVID-19
In 2020, safeguarding our people and Group operations against
COVID-19 was a top priority. In close cooperation with medical
specialists, guidelines were quickly prepared, and action plans
were implemented at all TITAN sites, engaging employees,
contractors, customers, and external service providers.
Following the emergence of the COVID-19 pandemic, TITAN’s
business units monitored and evaluated the situation
continuously. In all operations, risk assessment and contingency
plans were designed and enforced, local guidelines were drawn up,
hygiene measures were increased, and medical and psychological
support were provided by experts or through health care
programs. In addition, the Group transitioned swiftly to remote
working and virtual meetings by providing the necessary hardware
and being proactive in reducing or canceling travel and large
meetings and events. Additional protective measures were also
taken for people working on-site, such as reducing the number of
employees working physically at sites, rearranging shifts, providing
temperature scanning, increasing sanitization, facilitating
commuting by employees by providing additional buses,
promoting social distancing, and offering PCR testing. Changes
in the administration of the operations and transportation of
employees were customized according to each case.
In the US, under a new emergency sick and quarantine protocol,
Titan America provided sick pay to employees diagnosed with
COVID-19 and for colleagues who had to quarantine due to potential
exposure to the virus. In addition, the cost of COVID tests was
borne by the company’s medical plan insurer, which encouraged
ESG performance overview
employees to take the test and enabled effective contact tracing.
Together, these measures protected the workplace from the spread
of infections and prevented operational disruptions.
TITAN has so far managed to deal effectively with the waves of the
ongoing pandemic and, by open and intense communication with
employees, providing them with regular updates, information, and
guidelines. In addition, several business units gathered feedback
from employees on the effectiveness of the measures taken,
through pulse surveys and relevant initiatives. TITAN Turkey
was one of the first companies in the country to be awarded the
COVID-19 Safe Production Certificate by the Turkish Standards
Institute (TSI).
Furthermore, TITAN invested a significant amount of time and
resources in taking dedicated measures in order to minimize the
risk of potential supply chain disruptions, both for global and local
suppliers, while taking supporting actions aimed to help local
partners and contractors sustain their business during the crisis.
The response successfully mitigated all potential threats and
resulted in no delays in the supply of critical products and services
to individual business units.
Climate change
TITAN has long been committed to reducing its operational
carbon footprint worldwide and to contributing to the de-
carbonization of the construction value chain, thus actively
participating in the global collective effort toward a carbon-neutral
future. De-carbonization poses risks to the cement industry,
primarily through an uneven application of carbon pricing in
different regions of the world. At the same time, it also provides
opportunities for innovation and growth, as it requires a profound
reshaping of the energy and construction materials sectors.
TITAN is committed to the COP21 Paris global goal of keeping the
increase in global temperature well below 2°C, and preferably to
1.5°C, compared to pre-industrial levels, and to the UN Sustainable
Development Goals 2030. The Group also supports the European
Green Deal vision of carbon neutrality by 2050 and endorses the
Global Cement and Concrete Association (GCCA) 2050 Climate
Ambition, the cement industry’s joint effort that provides the
roadmap to achieve carbon neutrality.
Climate change mitigation indicators 2020 2019
Group level (cement operations)
Specific net Scope 1 CO₂ emissions
(kgCO₂/t cementitious product)
674 677*
Alternative fuel thermal substitution rate (%) 13.1 13.5*
Clinker-to-cement ratio (%) 82.4 82.9
*Note: figures slightly adjusted from last year’s disclosures based on updated
data
Since 2006, TITAN Group has set reduction targets to address
carbon emissions in line with the Kyoto Protocol. Building on the
CO₂ reduction already achieved, in 2020, the Group improved its
specific emissions (674kg CO₂ per ton of cementitious product),
recording a 13.4% reduction compared to 1990 levels. Despite
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falling short of the 20% reduction target, mainly due to regulatory
and market conditions that influence product and fuel mix,
the Group remains determined to address the climate change
challenge and commits to achieve a level of 500kg CO₂ per ton
of cementitious product specific net Scope 1 CO₂ emissions by
2030. Scope 2 emissions were reduced by 5.4% (compared to 2019)
in 2020, bringing them to 58.8kg CO₂ per ton of cementitious
product. TITAN has already measured Scope 3 indirect emissions
at two of its plants in Greece and Serbia, identifying critical areas
of carbon emissions in the supply chain. In 2021, it will start to
monitor scope 3 emissions at all its cement plants.
In cooperation with local stakeholders, TITAN Group continued
to utilize technological advances, developed in-house or by its
partners, to maximize the use of available alternative fuels and
materials. Alternative fuel utilization slightly decreased, achieving a
total substitution rate of 13.1% on thermal basis compared to 13.5%
in 2019. Biomass use also remained unchanged, reaching a thermal
substitution rate of 3.8%. In 2020, the Group inaugurated a new
processing line for alternative fuels at the Pennsuco cement plant in
Florida and upgraded alternative fuels feeding installations in several
of its cement plants in Europe. The Thessaloniki cement plant in
Greece expanded its environmental permit to facilitate the use of
Solid Recovered Fuel/Refuse Derived Fuel (SRF/RDF) from municipal
solid waste (MSW), while in Bulgaria and the USA, the Group’s
plants installed equipment, which enables the utilization of natural
gas, thereby reducing their carbon footprint. Dried sewage sludge,
refinery sludge, tires, SRF/RDF, and agricultural waste were used to
substitute conventional solid fuels in several of the Group’s plants
in 2020. The Group recorded a slight decrease in its thermal basis
alternative fuels substitution rate, which reached 13.1% compared
to 13.5% in 2019. Two of the Group’s plants in Greece – Kamari and
Thessaloniki – and the Zlatna Panega plant in Bulgaria managed
to increase their use of alternative fuels and are leading examples
in the Group for the substitution of fossil fuels. In contrast, the
limited availability of suitable streams and the delays in obtaining
permits restricted the Group’s ability to make more extensive use
of alternative fuels in other regions. Similarly, and in collaboration
with its clients, the Group product portfolio was further developed
to include, as of 2020, significant volumes of low-carbon cements
and concrete, with a high content of limestone, fly ash and/or other
cementitious materials. In the USA, Type IL cement, which has a
higher limestone content, already has good market penetration,
while in TITAN Greece received all the necessary cement
certifications to facilitate this transition.
Addressing stakeholders’ increasing expectations for
environmental, social, and governance (ESG) disclosures, the Group
further advanced its climate-related disclosures. TITAN responded
for the first time to the CDP (formerly Carbon Disclosure Project)
climate change and water security questionnaires.
The Group’s plants in Greece and Bulgaria, where the EU Emissions
Trading Scheme (EU ETS) is in force, are entering Phase IV (2021-
2030) with a long position, which should last for at least five years
assuming there is no significant change in the EU ETS rules, thus
minimizing the Group’s financial exposure.
As energy management is closely connected to the sector’s
de-carbonization roadmap, TITAN is systematically monitoring
energy consumption and efficiency. Reduction of electrical
consumption was achieved over the last years with the installation
of advanced equipment, like low energy vertical roller mills, roller
presses, or motors with inverters. In the case of thermal energy,
the frequent inspections of equipment and timely maintenance
by plant teams, and the replacement or installation of new
energy-efficient equipment (e.g., grate coolers and 5-stage
preheaters, careful selection of fuels, use of mineralizers as
well as optimization of the operations) helps sustain this good
performance. In 2016, the Group made its first step in applying
energy efficiency management systems in its cement plants.
The Tokat cement plant in Turkey was the first to be certified
according to ISO 50001, followed by the Greek cement plants
and Roanoke cement plant in the US. TITAN Group continued on
the path of expanding the use of energy efficiency management
systems. In 2020, the Pennsuco cement plant in Florida successfully
completed the process and was granted its ISO 50001 certification.
Other TITAN facilities are currently working on the development
of such systems, aiming to obtain certification during 2021. The
Group’s clinker capacity covered with ISO 50001 represents 54.9 %
of its total clinker production, exceeding the target of 50.0% set for
2020.
Circular economy
The circular economy, according to which practices, such as
reuse, recycling, and recovery of materials and energy, replace the
practice of produce-consume-dispose, is crucial to reducing waste,
minimizing the need for primary raw materials and landfill while
contributing to combating climate change.
Recognizing the circular economy as fundamental for developing
a more sustainable business model, TITAN works on adopting
and integrating practices in alignment with its principles. Energy
efficiency, the conscious use of raw materials, the use of alternative
raw materials and fuels and the implementation of efficient waste
management systems are proven means of adding value throughout
the value chain as well as providing solutions at a local level.
In 2020, TITAN implemented programs to collect ready-mix
concrete waste and concrete returns for use as alternative
raw materials for clinker, cement, concrete and concrete block
production, and as aggregates for pavements and other uses.
ST Equipment & Technology (STET) in the USA, a wholly-owned
TITAN subsidiary, develops and supplies specialized processing
equipment for the beneficiation of fine particle materials, such
as fly ash, industrial minerals and organics. STET develops and
promotes the use of waterless, energy-efficient, and low-emission
technologies and has committed to the UN Global Compact to
replace water-intensive mineral processes.
Waste produced by the Group as part of its everyday activities is
collected, stored, and disposed of through authorized contractors
for reuse, recycling, or recovery, with the aim to promote higher
levels of waste management and to minimize landfill. The recycling
of concrete returns diverted from landfill increased by almost 15%. As
a result, the percentage of total waste produced that was collected,
stored, and channeled, through authorized contractors, for reuse,
recycling, or recovery increased to 82.6%, compared to 76.8% in 2019.
In 2020, the Pennsuco cement plant in the USA was recognized as
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Integrated Annual Report 2020
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the first cement plant in the world to be Total Resource Use and
Efficiency (TRUE) Platinum certified for zero waste.
The Group continued its efforts to increase the use of alternative
raw materials in clinker, cement, and concrete production
and developed new blended cement products to address the
current and future needs of its customers. The use of alternative
raw materials in the production of clinker and cement slightly
decreased in 2020 (6.4% of total consumption), mainly due to the
unavailability of such alternative sources in the countries and
markets where the Group operates as well as market demands,
and regulatory restrictions.
Environmental management
In line with the Group’s priority to continuously mitigate the
environmental impact of its operations and the increasingly
stringent restrictions imposed on land use, rehabilitation, air
emissions, waste management and water use, TITAN applies
in all its plants management systems to monitor and report
environmental impact against specific targets.
For more than 20 years, in line with its environmental policy, the
Group discloses measurable qualitative and quantitative targets
to monitor its progress. TITAN considers this a significant driver
for continuous improvement, strengthening both its operational
efficiency and its focus on sustainability. At the same time, TITAN
is engaged in a long-term process with experts and stakeholders,
seeking meaningful ways to understand society’s needs and
contribute to a net positive local impact for the communities in
which it operates. In 2020, a new online platform was launched
in Greece to make air emission data from TITAN’s cement plants
publicly available on a daily basis. Similar initiatives exist in other
regions in which the Group operates.
Over the years, TITAN has devoted considerable human resources
and invested heavily in incorporating Best Available Techniques
(BAT), reaching and sustaining an advanced environmental
performance level. The upgrade and modernization of all existing
or acquired plants with new bag filters, hybrid filters, de-NOx
equipment (SNCR), the installation of closed storage and the
feeding of alternative fuels, water recycling, and wastewater
treatment facilities, ensure that TITAN’s performance meets
existing and potential new regulatory requirements, as well as its
own targets, which are often more demanding.
TITAN Group is implementing environmental management
systems (EMS) across its operations, realizing solutions that
best fit local needs. All Group cement plants have an ISO 14001
environmental management system, except those located in the
USA, which have adopted a system that is aligned with local and
federal regulatory requirements.
Dust and other air emissions
Apart from greenhouse gas (GHG) emissions that have a global
effect, other air emissions and, primarily, dust are among the
issues identified as material by TITAN’s local stakeholders. In
recent years, the Group ran an extensive investment program to
install new or upgrade existing dusting equipment in the stacks
of kiln lines. TITAN has also invested heavily in technologies that
can reduce NOx emissions, like Selective Non-Catalytic Reduction
(SNCR) systems and low NOx burners, as well as flame reduction
and secondary firing, while applying best practices to abate SOx
emissions, where needed. In all TITAN facilities, continuous efforts
are made to ensure compliance with the limits stipulated in the
environmental permits as well as specific conditions set by the
local authorities.
Monitoring and reporting air emissions are part of the Group’s
effort to mitigate its impact on the environment. Aligning with
legal and sectoral requirements, TITAN monitors and reports
greenhouse gas emissions (CO₂), as well as dust, NOx, SOx, TOC,
HCl, HF, and NH₃ mostly through continuous emissions monitoring
systems. Minor emissions like PCDD/PCDF and heavy metals
are spot measured by accredited independent laboratories at a
frequency equal or higher than that mentioned in the permits. In
line with our commitments and permits, CO₂, dust, NOx, and SOx
emissions are covered by independent third-party verification.
The systematic monitoring of fugitive dust emissions safeguards
the health of employees and reduces the impact on nearby
areas. The Group ensures the proper maintenance and optimal
functioning of machinery and equipment and applies rigorous rules
on the transport of materials within its plant sites and beyond.
Furthermore, air emission dispersion studies, which consider
all local characteristics (atmospheric and geomorphological
conditions) and are conducted in collaboration with local
academics, ensure that the operation of plants does not have any
negative impact on adjacent areas.
The Group’s environmental performance in main air emissions is
presented in the table below:
Air emissions (g/t clinker) 2020 2019
Group level (cement operations)
Specific dust emissions 19.3 14.7
Specific NOx emissions 1,282 1,269
Specific SOx emissions 253 193
Group performance in NOx emissions remained at a level similar
to that of 2019, achieving the target set for 2020. Similarly,
the performance regarding dust emissions remained positive,
meeting the 2020 target, even though dust levels increased
compared to 2019 due to the normal efficiency cycle of the dust
collection systems. On the other hand, SOx emissions deteriorated
compared to 2019, falling slightly short of the relevant target due
to variations in the raw material sulfur content and changes in
operational conditions.
Biodiversity, quarry rehabilitation, and land stewardship
Recognizing the importance of the preservation of biodiversity
on our planet, TITAN takes particular care to mitigate the impact
of extraction of raw materials on biodiversity and ecosystems,
rehabilitation activities and biodiversity management are key areas
of focus for TITAN. The Group has established standard practices
for land stewardship, quarry rehabilitation, and biodiversity
management at sites of high biodiversity value, in line with the
respective GCCA guidelines.
In 2020, TITAN updated its biodiversity risk assessment for all
its sites. All Group cement plants and quarries were assessed for
their biodiversity status and value with the use of the Integrated
Biodiversity Assessment Tool (IBAT, https://ibat-alliance.org/). In
total, 14 plants and 70 quarries were assessed, and four sites, in
addition to the already known ten cases, were recognized as being
in proximity to (or part of) areas of high biodiversity value. Three
out of the new four sites are under the full management control of
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TITAN. The next step is the further evaluation of the local baseline
conditions at those sites in order to determine potential needs to
develop appropriate biodiversity management plans, in line with
the key principles of the GCCA Sustainability Guidelines for Quarry
Rehabilitation and Biodiversity Management.
TITAN’s approach to biodiversity and land stewardship involves
partnerships with international organizations, associations, and
global collaborations. In this respect, TITAN played a leading role
in the development of the GCCA policy document “A Commitment
to Biodiversity by the Cement and Concrete Industry,” which was
launched in early 2021. Furthermore, TITAN joined CSR Europe’s
Biodiversity and Industry Platform, which was launched in 2020 and
will continue its activities in 2021. The platform is a cross-sectoral,
business-led initiative that aims to demonstrate how companies
are driving the biodiversity agenda and to support companies in the
practical integration of biodiversity into decision-making processes.
TITAN’s ongoing efforts to mitigate the local impacts of the raw
material extraction process are reflected in the indicators presented
in the following table. The Group has added one more indicator
to reflect the progress and results of its rehabilitation activities at
all Group quarry sites. The indicator measures the percentage of
disturbed (impacted) land area that has been rehabilitated.
Local impact indicators 2020 2019
Active quarry sites with high biodiversity
value (number) 10* 10
Active quarry sites with biodiversity
management plans (number) 9* 9
Active quarry sites with biodiversity
management plans (percentage) 90%* 90%
Active quarry sites with quarry rehabilitation
plans (percentage) 88% 90%
Disturbed quarry land areas that have been
rehabilitated (percentage) 22.7% --
Active quarry sites with ISO 14001 or similar
(percentage) 79% 77%
* Note: figure reflects the known cases (10) of high biodiversity value, where
biodiversity management is applied or is planned to be implemented. The
four new sites (three of which under TITAN management control) that were
identified from the updated biodiversity risk assessment in 2020 will not be
included until further assessment of the biodiversity baseline conditions and
value on a local level is completed in 2021.
The percentage of active quarry sites with quarry rehabilitation
plans showed a minor decrease, due to the acquisition of a quarry
in North Macedonia, which does not yet have in place a plan that
meets TITAN’s standards. The process of developing rehabilitation
plans at the remaining quarries, which have mainly arisen from
the most recent acquisitions and the licensing of new areas in the
Southeastern Europe and Eastern Mediterranean regions, will be
completed in 2021.
The percentage of active quarry sites with biodiversity
management plans remained at the same level. Due to the
COVID-19 pandemic, it was impossible to complete all the field
investigations necessary for a complete biodiversity baseline
assessment at the Agrinio quarry in Greece, the only remaining
site of high biodiversity value (out of the ten sites known up
to 2020) that requires a biodiversity management plan. The
assessment and respective plan will be completed in 2021.
Water management
Effective water management in and around TITAN’s production
sites remains an important aspect of the company’s
environmental performance and sustainability goals in general.
Since 2010, the Group has developed and applied an Integrated
Water Management System (IWMS) at all its operations to
monitor and optimize water use and to report water data
consistently, according to the practices and guidelines of the
cement sector.
Water risk assessment constitutes a significant component of
TITAN’s sustainable management of water resources. In 2020,
the water risk assessment of all Group sites was completed using
the Aqueduct tool of the World Resources Institute (WRI) and
the Water Risk Filter of WWF. A total of 153 sites were assessed,
including 13 cement plants (and their attached quarries), two
cement grinding plants, 20 quarries for aggregates and industrial
minerals, and 118 ready-mix units. The results of this risk
assessment identified that 73% of the Group’s cement and cement
grinding plant sites, 65% of its quarries for aggregates and industrial
minerals, and 62% of its ready-mix concrete sites operate in
water-stressed areas. The results will be used to enhance company
practices for sustainable water management and to develop
specific water management plans for sites in water-stressed areas.
In 2020, the total water withdrawal and discharge quantities
at Group level increased by 3.8% and 4.9%, respectively, mainly
as a result of the increased production needs of Titan America.
However, the total water consumption quantity at Group level
remained unchanged.
The specific water consumption at the Group cement and cement
grinding plants and their attached quarries showed a slight
increase of 1.4% in 2020, but the company’s performance still
remained well within the 2020 target.
Impact on natural resources – Water 2020 2019
Group level (all operations)
Total water withdrawal, million m
3
41.3 39.8*
Total water discharge, million m
3
30.2 28.8
Total water consumption, million m
3
11.1 11.0*
Group level (cement operations)
Specific water consumption, lt/t cement 261 257*
Sites with a water recycling system (%) 92% 92%
Water recycled over water demand (%) 67.2% 66.5%*
Group level (aggregates operations)
Sites with a water recycling system (%) 86% 86%
*Note: figures slightly adjusted from last year’s disclosures based on updated data.
TITAN’s initiatives and investments in relevant facilities and
systems over the past two decades have resulted in a substantial
improvement in water management. As a result, the specific
water consumption at cement plants has significantly decreased,
with the Group accomplishing the 2020 target of 300lt per ton of
cement. with the Group accomplishing the 2020 target of 300lt
per ton of cement.
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Research and innovation activities
TITAN invests in research, development, and innovation, with
a primary focus on areas related to de-carbonization and digital
transformation.
In 2020, the Group continued to quickly adapt to the needs of
Industry 4.0, leading with an entrepreneurial spirit and sector-
wide innovation generated by TITAN employees. The Group Digital
Center of Competence was established to further strengthen
TITAN’s capacity to support roll-outs of digital and automation
projects. This further enhanced the digital transformation of
manufacturing operations, in which TITAN reached key milestones
related to the operation, analytical monitoring, and maintenance
of capital equipment.
In all regions where the Group is active, TITAN continued to
participate and contribute to innovation ecosystems that add value
to communities and stakeholders. The Group’s commitment to
scientific partnerships that contribute to the knowledge economy
and develop talent has laid the foundations for new strategic
collaborations in research and innovation that will commence
in 2021. In Europe, the Group remained fully involved in Horizon
2020 and national collaborative programs that foster research and
innovation. In 2020, TITAN was recognized as a Key Innovator by the
European Commission in its Innovation Radar for contributing to
the EU-funded research project RECODE. The project involves the
installation of a pilot unit at Kamari cement plant in Greece for the
capture of CO₂ and its conversion to value-added chemicals.
The Group’s first patent application to the World Intellectual
Property Organization (WIPO) was published in 2020. The
invention refers to a novel method to produce nanosized particles
of clinker (“nanoclinker”), which can be used to manufacture
added-value, high-performance construction products.
Health and safety
TITAN envisages a work environment that ensures the health
and safety of all employees, contractors, and cooperating third
parties. To this end, the Group is constantly increasing health and
safety awareness and strengthening its accident prevention and
health promotion systems in all its operations.
In Greece, Southeastern Europe, Turkey, and Egypt, 100% of the
cement plants and more than 88% of the ready-mix concrete
and aggregates plants are ISO 45001 or OHSAS 18001 certified. In
a small number of cases, the transition from OHSAS 18001 to ISO
45001 was delayed by the COVID-19 pandemic but is in line with
the extension given by the International Accreditation Forum
(IAF). In the USA, all TITAN activities conform to the requirements
of the relevant OHS organizations.
All cement plants and selected other activities are annually
audited by Group Health Safety and Environment (Group
HSE), and the ensuing recommendations are implemented by
management. In 2020, physical on-site presence was not possible
due to the constraints imposed by the pandemic. A technical
solution involving on-site cameras with online video and audio
streaming was implemented. The last two audits were conducted
in January 2021. Regional and business unit organizations also
conducted auditing activities in 2020.
Accidents and potentially significant near misses are investigated
using Root Cause Analysis or other tools, as appropriate, and the
conclusions are used to prevent recurrence.
Organized training activities were by necessity limited and the
average training hours decreased to 6.88 (14.1 in 2019) and 10.40
(12.34 in 2019) hours per employee and contractor, respectively.
However, the safety training program for the contractors of
the Greek cement plants, which had commenced in 2019, was
completed in 2020. In total, more than 950 persons were trained
by a suitably qualified external body, and approximately 97% of
them passed the examination and received certificates.
The Frequency of Lost Time Incidents (LTIFR) for own personnel
was reduced from 1.44 in 2019 to 0.57 LTIs per 1,000,000 worked
hours, which is the lowest value recorded since 2013. The LTIFR
for contractors increased slightly to 1.46 LTIs per 1,000,000
worked hours. Despite the efforts made, regrettably, there were
two contractor fatalities (one in Kosovo and one in Egypt) and one
employee fatality, in a driving accident, in the USA.
Group Health and Safety Department works together with Group
HR in the development and implementation of an integrated
approach to Health and Wellbeing across the Group, as explained
in the “People management and development” section below.
People management and development
The focus on human capital and corporate social responsibility
is one of TITAN’s four strategic priorities. The Group’s vision to
“ensure an engaged workforce, emotionally and mentally,” as
expressed in the TITAN People Management Framework, outlines
the company’s people management approach, which is supported
by numerous systems, policies, and programs. Safeguarding the
health and wellbeing of its people, equipping them with the skills,
competencies, and mindsets that they need to be successful in
a diverse and inclusive environment are among the Group’s key
priorities for its employees.
Employee engagement
Engaging with its employees is an on-going process for the Group,
incorporating feedback in structured and organized forms. Group
and country action plans were developed to address the results
of the 2019 Employee Engagement Survey. The action plans were
derived following in-depth analysis of the aggregated responses
to the survey questions, as well as a series of interviews and
deep dives in diverse employee focus groups. Most of the focus
groups were conducted after the outbreak of the pandemic,
thus ensuring that the Group action plan addressed the needs
that emerged both before and after the spread of COVID-19. As
a result, the initial four priority areas – Simplify and Accelerate,
Performance Management, Diversity and Inclusion, and
Communication – were enriched with two additional areas:
Wellbeing and Pride to be Part of TITAN. All countries performed
similar analyses and deep-dive focus groups with employees,
both face-to-face and virtual, and designed local action plans,
addressing local strengths and areas for improvement. The
outcomes of the Employee Engagement Survey also provided
feedback that was used in the materiality assessments at both
Group and business unit level.
Diversity and inclusion
In 2020, equality, diversity, and inclusion were identified among the
most relevant and important issues for key stakeholders in many of
the countries where the Group operates. Following the completion
of the 4th cycle of materiality assessment, diversity and inclusion
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was included in the material issues for 2020–2025. Accordingly, the
Group reviewed and updated the definitions given to these terms,
and held focus groups and interviews with employees and subject
matter experts to develop a comprehensive action plan to improve
diversity and inclusion across the Group. As a starting point, a team
of experts and managers focused on the review of the Group Code
of Conduct, as well as the Group Human Rights and CSR policies,
which were updated to incorporate a clearer reference to diversity
and inclusion. Finally, in the USA, unconscious bias education
was mandated for all people managers while two new Employee
Resource Groups were launched, one for TITAN USA’s Black and
African American community and one for the company’s LGBTQ+
community.
Group Wellbeing Framework and Employee Assistance
Programs
With the aim to continue building on TITAN’s Care Legacy and to
apply an integrated, holistic approach to Health and Wellbeing
across the Group, the TITAN Health and Wellbeing framework was
developed. The framework covers four dimensions of Health and
Wellbeing – physical, mental, social, and financial. With initiatives
linked to the four dimensions, each business implements various
actions to address local priorities.
To help enhance its people’s mental and emotional health and
wellbeing, TITAN extended the Employee Assistance Program
(EAP) to all countries. The EAP is a consulting support service
offered to all employees and their families, making available
expert advice on personal, family, or work-related issues. In
addition, many countries organized virtual events and talks on
emotional and mental health topics.
Employment and training
Employment at TITAN Group, as of the end of the year, remained
stable. Overall, the Group employee turnover rate decreased
slightly compared to 2019 (11.3% in 2020 vs. 12.3% in 2019), while
the share of women in employment remained stable. The share of
women in management increased to 16.5% in 2020 from 15.5% in
2019, which is mainly attributed to the respective increases in the
USA, Turkey, and Bulgaria. In 2020, 58.6%, or 3,144 employees, of
the Group were included in annual performance reviews, a figure
similar to the equivalent one in 2019.
Almost 86% of employees participated in targeted training
and development programs in 2020, an increase of above 3%
compared to the 2019 level (82.7%). However, training investment
and the total training person-hours recorded by local operations
decreased considerably, as did average training hours per
employee (14.8 in 2020 compared to 25.4 in 2019). This was a
result of the pandemic, which prevented the realization of most
classroom-based training programs. The majority of training
hours in 2020 recorded by business units was dedicated to
Health and Safety, Technical Know-How, Functional Competence,
and Compliance. Finally, online learning content was made
available to employees who do not have access to the Group HR
Management System. Online learning license activation increased
by over 20% since 2019, indicating that a growing number of
employees are taking advantage of the learning tools offered by
the company.
In 2020, TITAN’s commitment to supporting youth employment
continued, despite the impact of the pandemic, resulting in 251
internships, compared to 396 in 2019.
Finally, the percentage of unionized employees has remained
stable.
Sustainability of communities
TITAN’s operations have direct and indirect economic, social, and
environmental impacts on local communities. TITAN business
units seek to facilitate stakeholder dialogue and collaborative
actions through community engagement plans, with a focus on
the contribution to the sustainability of local communities.
The target set in 2015 to further align the company’s community
engagement plans to the material issues prioritized throughout
the Group was fully accomplished. In 2020, a structured approach
of recording initiatives and actions, and conducting a self-
assessment for each initiative was introduced in a dedicated
Group e-platform organizing our activities and collaborative
efforts that vary from country to country depending on
maturity and local priorities. The Group will remain focused on
strengthening its efforts to achieve authentic and distinctive
social engagement and on enhancing its positive impacts
through collaborative efforts and the empowerment of local
stakeholders. In 2020, the “For my Kosjeric” program, offered by
TITAN Cementara Kosjeric, in Serbia, was recognized by external
stakeholders as an example of best practice of empowering local
communities to meet their own objectives.
TITAN continued to address the need for transparent and open
communication with communities throughout the year. In
Greece, two new websites were launched to communicate the air
emission measurements on a daily basis and provide information
on co-processing (the simultaneous recycling of raw materials &
energy recovery) (https://coprocessing.titan.gr/). The interactive
sites allow visitors to submit specific questions regarding the
presented data. This transparent and reliable communication
method has contributed to sustaining and enhancing TITAN
Greece’s engagement with communities and key stakeholders.
In all Southeastern European countries and Egypt, TITAN
published annual reports focused on sustainability performance,
in line with international and sectoral standards and best
practices. In Albania, Bulgaria, Kosovo, North Macedonia, and
Serbia, where such corporate reporting is not mandatory, the
2019 annual reports published in 2020 were accompanied by
independent assurance according to TITAN reporting standards
and the Communication on Progress advanced-level criteria set
by the UN Global Compact Network.
In all countries, community outreach programs have contributed
to good relations and collaborations, which have long-term
positive impacts. One example is the case of the community
engagement plan in Kosovo with the Laboratory for the
Activation of Businesses (LAB), a private-public foundation
established by TITAN and other local stakeholders in 2014,
based on international corporate governance standards. LAB
has supported the creation and sustainable operation of 100
local businesses in agroforestry, providing new jobs and income
to local people, and fresh and high-quality local products for
the local market, free heating to local community schools,
and training to improve local entrepreneurship. In 2020, a
new partner joined LAB, which thereby expanded its scope of
operations to the services sector, with the creation of a new
training program to offer new jobs to young unemployed people
from the local community.
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Integrated Annual Report 2020
78
sustainability and social responsibility. TITAN’s integrated
management approach, characterized by open, responsible,
and accountable decision-making, ensures that governance and
ethics considerations are properly addressed at a Group level.
Consistent with the Group’s strong commitment to good
governance and transparent business ethics, the Group Compliance
and Anti-Fraud function was established in January 2020 as part
of the Group’s Internal Audit, Risk and Compliance Department,
reporting to the Group Audit and Risk Committee. The Group
Compliance Officer has the responsibility to monitor compliance
issues and risks and coordinate relevant controlling activities.
The development of an integrated Compliance Program in
2020 advances TITAN’s efforts to ensure achievement of its
compliance objectives, not only with the applicable laws and
regulations, but also with the highest global standards and all
voluntary commitments that the Group has undertaken in the
areas of human rights, sustainability, and social responsibility.
Human rights
Consistent with the United Nations Guiding Principles on
Business and Human Rights, TITAN Group is committed to
respecting and supporting human rights with regard to its
employees, the communities where it operates, and its business
partners, as expressed in internally recognized standards,
including the UN Universal Declaration of Human Rights.
Since its endorsement of the United Nations Global Compact
(UNGC) principles, TITAN has worked at both Group and business
unit level to ensure a good understanding of the potential risks
related to human rights, both in its operations and in the value
chain. The TITAN Group Compliance Program covers all relevant
aspects and provides the framework for a more systematic
and integrated human rights compliance assessment to be
periodically conducted for the Group operations.
The TITAN Group Whistleblowing Policy, communicated across
the Group in 2020, aims to empower employees in every country
to promote an ethical work culture, by reporting possible
misconduct, fraud, or abuse. In 2020, the TITAN Group reporting
platform EthicsPoint® was also launched, providing a uniform,
anonymous, and strictly confidential channel to report incidents
of non-compliance, to which all Group employees have access,
as an additional means to ensure that incidents are reported,
examined, and resolved with a remedy plan, if and when necessary.
It promotes a culture of openness, transparency, and accountability,
which is essential to safeguarding good governance and integrity.
A five-member Group Supervisory Committee, which includes
the Chairman of the Audit and Risk Committee, oversees the
investigation and handling of reports while ensuring confidentiality
and non-retaliation for whistleblowers. In 2020, 11 cases in total
were reported through the EthicsPoint® platform, ten of which were
classified as allegations and one as a request for information (see
ESG performance statements 2020 for more details). All allegations
were thoroughly examined by the respective regional committees,
reviewed by the Group Supervisory Committee, and resolved with a
remediation plan, as appropriate.
Anti-bribery and corruption
The Group’s anti-bribery and corruption policy underlines
its zero-tolerance attitude and the commitment to fighting
corruption, specifies high-risk areas in which bribery and
corruption most likely occur during business activities, and
Another notable case is TITAN’s partnership with Re-Generation,
the largest paid placement, professional, and personal
development program in Greece, to launch the innovative
Re-Generation Academy for Digital Acceleration| Data Science
Lab - Powered by TITAN for young people with an interest in
data science, a sector with growing demand. This is a unique
initiative in the context of the Group’s commitment to helping
young people develop the digital skills that are necessary for the
transition to the digital era. The first Academy was completed
in early 2020, with 95% of the 24 trained data scientists that
participated in the program finding employment.
Community Engagement Plans /
Positive local impact 2020
Local spend (the ratio of spend to local suppliers over
the spend to all suppliers, as a percentage) 66.95%
Number of initiatives and actions for community
engagement in all regions 131
Total amount of “social investment” (contribution in
cash and in kind and budget for the implementation of
these 131 CSR/Community engagement activities)(1) €1.5m
Number of stakeholders engaged in the above
initiatives and actions as active participants (TITAN
employees, business partners, NGOs, local authorities,
and people from communities) 3,809
Sustainable supply chain
In 2020, TITAN continued its Group Procurement transformation
program by seeking to improve procurement efficiency and the
sustainability of global procurement categories.
The optimization of the supplier landscape, the establishment
and maintenance of long-term value-added supplier
relationships, and a holistic review of supplier performance,
including sustainability aspects, are key enablers for total cost
optimization and the propagation of sustainability practices in
the supply chain.
TITAN seeks to maintain and further improve its collaboration
with local suppliers and contractors. With the ongoing Group
digital transformation process and the unification of digital
systems, the local spend calculation of TITAN’s global activities
can now be tracked in an easier and more accurate manner.
TITAN’s effort to update its prequalification process for suppliers
through a holistic sustainability review continued in 2020. The
process, which started in 2017 in TITAN USA, was extended in
2018 to cover Group category suppliers. The scope was also
broadened to include a complete set of sustainability criteria
beyond health and safety topics, and, in 2019, the program was
expanded to cover the scope of major contractor activities in the
Greek operations. TITAN is contemplating the expansion of the
coverage of the program to its Brazilian operations in 2021.
Governance, transparency, and ethics
Integrity, incorporating transparency and ethical business
practices, is a core value embedded in TITAN’s culture and
reflected in the way the company performs its business
activities, in line with its key governing objectives of
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provides guidance on preventive and detective procedures,
including risk assessment and due diligence of third parties who
perform services for or on behalf of TITAN Group.
TITAN has responded to the need to intensify all relevant initiatives
by delegating to the Audit and Risk Committee the responsibility to
oversee, among others, the risk of corruption and fraud.
Strengthening its commitment to restrict possible exposure
to the risks of fraud and corruption, TITAN has developed a
comprehensive Anti-Fraud Program that sets out strategic
priorities and activities to deter and detect occupational fraud
and corruption throughout the Group and minimize its fraud risk
exposure. The Anti-Fraud Program aims to provide a protective
shield for the Group’s assets and resources, corporate reputation
and credibility, cultural strengths, and operational efficiency
by establishing an integrated structure of anti-fraud controls
and activities that will aid the prevention and detection of
occupational fraud as well as the Group’s response in such
an eventuality. Proactive mechanisms include Fraud Risk
Assessment projects and follow-ups on agreed action plans.
TITAN Group Compliance Program and policies
In 2020, the implementation of the Group’s Compliance Program
was launched as an integrated system of activities, mechanisms,
and controls, aiming to provide adequate assurance that
compliance risks are identified in a timely manner, properly
assessed, and effectively mitigated, thus minimizing the
possibility of a significant compliance failure.
The Compliance program facilitates the efforts to maintain
and foster a strong compliance culture, ensuring adherence
to compliance requirements and promoting consistent and
responsible ethical behavior. It is a risk-based program with
dynamic elements, incorporating monitoring and oversight,
compliance awareness, training, risk assessment, and third-
party due diligence components. In 2020, more than 6,300
training hours were dedicated to compliance training as part of
Compliance Program training and awareness activities.
TITAN’s Code of Conduct and Group Policies, applicable to
all Group operations, cover all strategic areas and material
issues, convey the principles, rules of conduct, and standards,
and provide guidelines to employees and external business
collaborators, such as vendors and customers, to ensure
compliance with the applicable internal and statutory rules.
Group Policies include, but are not limited, to:
• Anti-Bribery and Corruption Policy
• Conflict of Interest Policy
• Competition Law Compliance Policy
• Corporate Social Responsibility Policy
• Environmental Policy and Climate Change Mitigation Strategy
• Framework Policy for the Protection of Personal Data
• Human Rights Policy
• Occupational Health and Safety Policy.
In 2020, TITAN continued to review, update, and enrich Group
Policies to enhance clarity and address specific topics of
increasing importance. New versions of the Code of Conduct,
Health and Safety Policy, Competition Law Compliance Policy,
Human Rights Policy, and Corporate Social Responsibility
Policy, which are more aligned with the Group’s developments
and commitments and detailed on the matter of diversity and
inclusion, were developed. In order to maintain a clear and
efficient structure, the Group Policies Repository in the Group
Intranet (Connections) was re-organized under a new taxonomy
with the following categories: regulatory-driven, sustainability-
and social-responsibility driven and operational. The revised
Code of Conduct was distributed to all employees.
Interactive e-learning courses on the Code of Conduct and the
Anti-Bribery and Corruption Policy, Conflict of Interest Policy,
Information Security Policy, and Summary of Data Protection
Policy were created and uploaded on the UnITe People Learning
Management System (LMS). The courses seek to increase
awareness and facilitate deep understanding. In addition,
e-learning courses on the Competition Law Compliance Policy
and Sanctions Policy are also being to targeted audiences. Upon
the completion of the first round of e-learnings, expected in
the first quarter of 2021, the second wave of e-learnings will be
assigned. Moreover, specific initiatives in each business unit,
taking into consideration COVID-19 limitations, are in progress,
and so is the translation of relevant material, aiming to enhance
TITAN’s compliance culture and the awareness of employees
who, in their role, do not have access to Information Systems.
Integrating ESG criteria in the Company’s remuneration
policy
Our company is committed to achieving a reduction of net direct
CO₂ emissions from 674 to 500kg/t cementitious product by 2030.
This target is in line with limiting global warming to well below
2
o
C compared to pre-industrial levels, and will be verified by the
Science Based Targets Initiative (SBTi). To this effect, a three-year
CO₂ target that is compatible with the path to 500 kg CO₂ per ton of
cementitious product is included in the performance objectives of
the deferred compensation incentive for executive members of the
Board and the members of the Executive Committee.
Independent assessment of ESG
performance
Improving sustainability performance is an on-going effort linked
to monitoring, measuring, and assessing performance with internal
and external well-defined criteria. TITAN engages with ESG Rating
agencies (namely, Sustainalytics, MSCI, Vigeo Eiris, ISS corporate
solutions, and Refinitiv), valuing the assessment and seeking
feedback. In addition, by reporting to CDP for the first time in 2020,
TITAN took an additional step in responding to the high and growing
demand by its stakeholders for environmental disclosure.
Kamari cement plant, Greece
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Integrated Annual Report 2020
80
ESG performance statements
ΤΙΤΑΝ Group discloses information related to ESG Performance in
alignment with voluntary commitments to the IIRC principles, UNGC,
and GCCA based on a long term practice of integration which is referred
to as Global Sectoral Approach in this report. Since 2018, in order to
further align its disclosures with the SDGs 2030, TITAN incorporated the
“Guidance on Core Indicators for entity reporting on the contribution
towards the attainment of the Sustainable Development Goals” of the
United Nations Conference on Trade and Development (UNCTAD, 2019
edition), and promoted the connection of selected indicators with
Targets for the SDGs based on the Guidance. See also pages 14-15
“Delivering Value for All in 2020” and Table 2.1. “Value Creation Core
Indicators Index”.
In 2020, TITAN also incorporated the Sustainability Accounting Standards
Board (SASB) Framework in the preparation of ESG performance
statements, in order to appropriately address the more financially-
material ESG disclosures. The SASB Framework was leveraged for the
purpose of connecting the SASB Materiality Map® with the 2020 Group’s
materiality assessment, and allowed the alignment between the Group
and its subsidiaries. In the same direction the Group also started
reporting in alignment with the Sustainability Accounting Standard Board
(SASB) for the specific requirements of industries mostly relevant to our
operations.
For committing on targets 2020 and reporting on progress for all other
environmental parameters except CO
2
, the base line year is 2003 (when
TITAN reported for the first time consolidated non-financial performance
indicators). For CO
2
emissions the baseline year for relevant target(s) is
1990 in line with the Kyoto Protocol.
The ESG performance review and statements focus on material issues for
TITAN operations and key stakeholders. TITAN’s Global Sectoral
Approach encompasses the disclosure of Core Indicators for Value
Creation and Governance, Social and Environmental Performance.
Indicators (KPIs) are structured under four separate tables in the “ESG
performance statements” (Tables 2.1, 2.2, 2.3, and 2.4). TITAN Group ESG
Performance Statements are structured according to TITAN's reporting
standards that are aligned to global (UNGC, SDGs2030, UNCTAD and
SASB) as well as sector specific (GCCA) reporting standards and
frameworks. The connection of the TITAN ESG KPIs with the global and
sector specific standards is presented in Table 2.5. This includes the
connection also with SASB Standards for the first year in 2020, in
coherence with the codes of the SASB Accounting Metrics (in brief:
metrics) for ensuring clarity and consistency, with reference to Tables
2.2, 2.2.2, 2.3, and 2.4. Table 4 provides a review of TITAN’s 2020 IAR for
the adherence to the Global Compact criteria for the Advanced Level
Communication on Progress (COP). The connection of TITAN's
disclosures with specific SASB metrics for reporting is facilitated also by
using Table 4 (COP), and Table 5 (Transparency International - Corruption
Perception Index 2020).
Changes in the content and structure of the 2020 Integrated Annual
Report:
• Table 2.5 “TITAN Reporting Standards for the ESG Performance
disclosures in 2020” (explained above). About the specific alignment of
our Environmental and Social performance KPIs with the GGCA
Sustainability Charter and Framework Guidelines see Table 2.5.1 “Sector
standards for non-financial reporting”.
• New information under the framework of Environmental Performance
Indicators regarding Gross direct CO
2
emissions (Scope 1) covered under
limiting regulations, Water withdrawal for concrete, Water recycled (all
uses), and Quarry land areas rehabilitated from total impacted.
• New information under the framework of Social Performance
Indicators regarding Training man-hours on health and safety per
contractor, Expenditures for health and safety, and Key operations with
community engagement plans related to material issues and Group
policies. Also, the Social Performance Indicators Index does not present
the ‘granularity’ of data on per-country manner compared to last year,
but only the Group total and/or average figures. The purpose was to
improve in brevity and simplicity.
The Notes below help the reading of ESG performance statements
(about connection with KPIs see Tables 2.2, 2.2.2, 2.3, 2.4, and 2.5).
Assurance: Specific KPIs included in the scope of ERM Certification and
Verification Services (ERM CVS) assurance engagement (ERM CVS’
“Independent assurance statement”).
UNGC: TITAN follows the reporting requirements for meeting the
criteria of UN Global Compact relating to a Communication on Progress
(COP) Advanced Level.
GCCA: Specific KPIs calculated according to the sector Guidelines
integrated by TITAN, following the GCCA Charter and Framework
Guidelines.
UNCTAD: TITAN has adopted under its reporting framework the
applicable KPIs according to the Guidance of the UNCTAD, as
supplementary to the above Reporting Standards.
SASB: TITAN in 2020 started reporting on ESG performance aligned with
the Sustainability Accounting Standard Board (SASB).
ESG performance
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SDGs 2030 Material issues and topics
Internal External
Financial liquidity and access to funding
Access to bank credit facilities and capital markets financing provides liquidity
to meet current obligations and grow business sustainably and potential for growth.
• Access to bank credit facilities and capital markets financing is essential to run and
grow operations sustainably
•Safeguard market presence
Governance, transparency and ethics
Ensuring good governance integrity and transparency, promoting ethical business
practices, lobbying responsibly and engagement with stakeholders do the same.
•Procurement practices
•Security practices
•Human rights grievance mechanism
•Anti-corruption
•Anti-competitive behavior
• Supplier assessment for impact on environment
•Supplier human rights assessment
Sustainability of communities
TITAN is working toward building an inclusive relationship, through ongoing
engagement with stakeholders at all levels. At site level, building strong relationships
with local communities is part of this and is key to value creation for stakeholders.
• Indirect economic impacts
•Market presence
•Compliance
•Environmental grievance mechanisms
•Grievance mechanisms for impacts on society
•Economic performance
Climate change
TITAN operations and the cement industry as a whole contribute to climate change.
Reducing CO₂ emissions in line with the Kyoto Protocol and the Paris Agreement,
the European Green Deal vision of carbon neutrality by 2050 and the Global Cement and
Concrete Association (GCCA), 2050 Climate Ambition to deliver society with carbon-
neutral concrete by 2050 and working with our peers to meet specific targets is a priority
for business and society.
• Energy
•Emissions
SDG 1
SDG 3
SDG 4
SDG 9
SDG 11
SDG 17
SDG 7
SDG 13
SDG 17
Group TITAN, all
TITAN operated
sites
Shareholders,
investors,
customers,
suppliers,
governments,
local communities
and authorities,
academia, NGOs
Joint venture
partners,
contractors,
security
personnel,
customers,
suppliers, local
communities,
shareholders,
investors,
governments,
NGOs
TITAN Group, all
TITAN operated
sites
Contractors,
suppliers,
customers, local
communities and
authorities,
governments,
shareholders,
investors, NGOs
SDG 4
SDG 8
SDG 16
SDG 17
TITAN Group, all
TITAN operated
sites
ESG Performance Statements - Tables
1. Material Issues and Boundaries for reporting ESG Performance
Boundaries
Contractors,
suppliers,
investors,
customes, local
communities,
governments
TITAN Group
SDG 9
SDG 8
SDG 17
TITAN Cement Group
Integrated Annual Report 2020
82
SDGs 2030 Material issues and topics
Internal External
Circular economy
A number of resources is used to serve TITAN’s purpose, such as raw materials,
traditional and alternative fuels, water and energy, and waste materials. A circular
economy will enable business and consumption models focused on re-using and
recycling use of alternative fuels, Innovation and out-of-the-box thinking.
• Effluents and waste
•Raw Materials
SDG 3
Health and safety
SDG 17 TITAN is committed to provide employees, contractors and any third-party safe and
healthy workplace. Health and Safety is crucial for customers and TITAN ensures that
products are safe to use and that they are delivered safely to customers.
•Occupational health and safety
•Customers health and safety
People management and development
Being a responsible employer means providing training and development opportunities,
and equal remuneration between men and women, embracing diversity with a work
environment free from discrimination or harassment while supporting employees in
exercising their right to freedom of association and collective bargaining. It also means
ensuring that there is no child labor or compulsory labor in TITAN operations in the
supply chain.
• Employment
• Training and education
• Diversity and equal opportunities
• Market presence
• Labor practices grievance mechanisms
•Non-discrimination
•Freedom of association and collective bargaining
•Child labor and compulsory labor
• Ongoing assessment
Environmental management
TITAN ensures that it adheres to international best practices and is focused on
contributing to improve its performance and keep its license to operate.
• Biodiversity
•Compliance
•Environmental grievance mechanisms
•Water
•Transport of goods and services
SDG 6
SDG 7
SDG 13
SDG 15
SDG 17
TITAN Group, all
TITAN operated
sites
Shareholders, join
ventures partners,
contractors,
suppliers, local
communities,
governments,
academia, NGOs
Boundaries
SDG 12
SDG 13
SDG 17
Contractors,
suppliers,
customers, local
communities and
authorities,
academia,
regulators, NGOs
TITAN Group, all
TITAN
operated sites,
GAEA, STET
TITAN Group, all
TITAN
operated sites
Employees
families,
contractors,
Local
communities and
authorities,
suppliers,
customers, third
parties,
governments
SDG 4
SDG 5
SDG 8
SDG 17
TITAN Group,
all TITAN
operated sites
Shareholders,
joint ventures
partners,
contractors,
suppliers, local
communities,
governments,
academia, NGOs
ESG performance
review
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SDGs 2030 Material issues and topics
Internal External
Social and political risks, and instability
TITAN has plans in place to maintain control and normal operations during political
instability, riots, uprisings and various conditions that lead to extreme volatility.
We work to safeguard TITAN’s local investments by protecting our people, business
partners and the communities near our operations.
•Local communities
Other issues
Sustainable products and services:
We collaborate with stakeholders to develop more sustainable products to create value
through our cement such as ProAsh®.
•Products and services
Notes
The boundaries of reporting for each material issue are defined by the principles of “materiality”, “relevance”, “conciseness” and “consistency”,
aligned with the guidance of the International Integrated Reporting Council (IIRC)
1
:
Materiality
A matter is material if it is of such relevance and importance
2
that it could substantively influence the assessments of providers of financial capital
with regard to the organization’s ability to create value over the short, medium and long term. In determining whether or not a matter is material,
senior management and those charged with governance should consider whether the matter substantively affects, or has the potential to
substantively affect, the organization’s strategy, its business model, or one or more of the capitals it uses or affects.
Relevance
Relevant matters are past, present or future matters that impact or may impact the organization’s strategy, its business model or one or more of the
capitals and thus ultimately affect the organization’s ability to create value over time. Identifying relevant matters for inclusion in the integrated
report includes identifying the population of potentially relevant matters, and narrowing these down to matters that are relevant for inclusion in the
integrated report. Information about relevant matters will have either, or both, predictive value or confirmatory value with respect to intended users’
decisions.
Conciseness
Disclosures about material matters should include concise information that provides sufficient context to make the disclosures understandable and
should avoid information that is redundant in nature.
Consistency
Reporting policies should be followed consistently from one period to the next unless a change is needed to improve the quality of information
reported. This includes using the same KPIs to report on the same matters if they continue to be material across reporting periods. When a significant
change has been made, the organization explains the reason for the change, describing (and quantifying if practicable and material) its impact.
1. Source: Materiality Background Paper for <IR> (IIRC, 2013). Further information about the IIRC can be found on its website www.theiirc.org
2. TITAN uses the equivalent term "significance".
Boundaries
SDG 8
SDG 16
SDG 17
All TITAN
operated sites,
TITAN Group
Employees
families,
customers,
investors,
governments,
local
communities,
NGOs
TITAN Group, all
TITAN operated
sites, GAEA, STET
Customers,
suppliers,
governments,
investors, society
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Integrated Annual Report 2020
84
Notes
TITAN Group ESG performance statements cover four areas: Value creation and distribution to stakeholders (see “Understanding TITAN”, under
section “Overview” – Table “Delivering value for all”), Social performance KPIs, Environmental performance KPIs and Governance Core Indicators.
The following section 2.1 “Value Creation Core Indicators Index” is inclusive of definitions for terms used in specific for Value creation and
distribution to stakeholders, and serves as index of Notes for Table “Delivering value for all”.
General Note for the consolidation of data
Consolidation (aggregation) of data for the above Value Creation Core Indicators was made with 100.0% contribution for all BUs where TITAN has
property share more than 50.0% (in line with the method of full consolidation in the Financials). The contribution of Turkey included Adocim
Cemento Beton Sanayi ve Ticaret AS with 100%. See Table 2.2.1, in specific “Adocim all activities”.
Notes for the standards, guidance, and terms used
Most terms related to the Value Creation Core Indicators were adopted from the “Guidance on Core Indicators for entity reporting on the
contribution towards the attainment of the Sustainable Development Goals” (in short: UNCTAD Guidance, 2019), and incorporated under the TITAN
standards. The related terms are outlined here and connected with the KPIs in the Index above. The figures for the Value Creation Core Indicators
are provided in “Understanding TITAN; Delivering value for all”.
2.1 Value Creation Core Indicators Index
2. ESG Performance Indicators
Detailed figures are provided in the Report under 'Delivering value for all', see also: Table 2.2 and 2.3.
1. The economic value created and distributed to key stakeholders has been calculated using the United Nations – UNCTAD “Guidance on Core
indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals” (2019 edition).
2. Gross Value added. Revenue minus costs of bought-in materials, goods and services (called also: Value Added, according to the UNCTAD
Guidance, 2019). TITAN’s approach is based on the verified and disclosed Financial Statements for the same reporting period, acc. to the IFRS.
3. Net value added. Revenue minus costs of bought-in materials, goods and services and minus depreciation on tangible assets (UNCTAD Guidance,
2019). TITAN’s approach is based on the verified and disclosed Financial Statements for the same reporting period, acc. to the IFRS.
4. Total spend to Suppliers, local and international, for goods and services. According to TITAN Standards and the application of the IFRS, see
Financial Statements.
5. Taxes to national and local authorities. According to TITAN Standards and the application of the IFRS, see Financial Statements.
6. Payments in cash, to shareholders and minorities. According to TITAN Standards and the application of the IFRS, see Financial Statements.
7. Total spend on donations and social engagement initiatives Total amount of charitable/voluntary donations and investments of funds (both
capital expenditures and operating ones) in the broader community where the target beneficiaries are external to the enterprise incurred in the
reporting period, in absolute amount (UNCTAD Guidance, 2019). TITAN discloses this amount as "Donations", as equivalent to "charitable/voluntary
donations and investments of funds", and in detail in Table 2.3 based on the verified and disclosed Financial Statements for the same reporting
period.
8. Green investment. Total amount of expenditures (capital and also operational) for those investments whose primary purpose is the prevention,
reduction and elimination of pollution and other forms of degradation to the environment (UNCTAD Guidance, 2019). TITAN discloses the respective
figures in detail in Table 2.2 of the ESG Performance Statements.
9. Salaries (contributions to) pensions, and social benefits, including additional benefits beyond those provided by law. additional benefits.
According to TITAN Standards and the application of the IFRS, see Financial Statements.
10. Investments in training of direct employees.Total expenditures including the direct and indirect costs of training for direct employees
(including costs such as trainers’ fees, training facilities, training equipment, related travel costs etc.) reported also per employee and per year, and
broken down by employee category (UNCTAD Guidance, 2019). TITAN discloses the respective figures in detail in Table 2.3 of the ESG Performance
Statements.
11. Investments for Research and Innovation. Total amount of expenditures on research and development (R&D) and Innovation by the reporting
entity during the reporting period (UNCTAD Guidance, 2019). It includes all expenditures for the R&D and Innovation activities, and projects, and
incl. salaries, participations, travelling and other expenses of our employees which are related directly and indirectly, and other expenditures for
promoting innovative technologies and products. TITAN uses the verified and disclosed Financial Statements for the same reporting period.
12. Capital expenditures. Capital expenditures, commonly known as CapEx, are funds used by a company to acquire, upgrade, and maintain physical
assets such as property, buildings, an industrial plant, technology or equipment.
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2.1.1. Consolidated Report on Payments to Governments
Group Companies
Country
Payment type Amount
TITAN CEMENT S.A. Greece Quarry Rental Fees/taxes 792,235.72
Quarry Rental Fees 2,220,516.16
Municipality Taxes 532,003.77
Clay Tax
2,447,615.00
Quarry Royalties 1,272,377.00
Clay Tax 3,784,563.00
Quarry Royalties 507,724.00
Road maintenance 129,211.00
Zlatna Panega Cement AD Bulgaria Concession Fees 215,000.00
Cementi Antea Sha Albania Extraction Fees 402,109.00
Titan America LLC USA Sales / Mitigation Fees 373,163.19
SHARRCEM SH.P.K. Kosovo Extraction Royalties 206,903.00
Titan Cementarnica Usje A.D. North Macedonia
Concession Fees
199,157.00
Titan Cementara Kosjeric A.D. Serbia
Concession Fees
162,976.00
ADOCIM A.S. Turkey
Permission/Forestation Fees
260,423.00
TOTAL 13,505,976.84
Note
TITAN Cement International S.A. hereby reports, in accordance with article 3:33 of the Belgian Companies and Associations Code, that TITAN
Cement Group has paid to municipal authorities of EU Member States and third countries the total amount of €13,505,976.8 for extractive
operations 2020 as specified in the above table.
INTERBETON S.A. Greece
Alexandria Portland Cement Co Egypt
Beni Suef Cement Co Egypt
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SDGs &
Targets
Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB
1. All activities - Environmental Performance
Local Impacts
Impact on natural raw materials recourses, and waste management
SDG 12.2
Natural raw materials extracted (total, wet)
million t
32.5 32.4 33.6 34.2 32.7 ●
Raw materials extracted for clinker and cement
million t
17.9 18.5 20.2 21.2 20.0 ●
Raw materials extracted for aggregates
million t
14.5 13.8 13.5 13.0 12.7 ●
SDG 12.4
Externally recycled waste materials (total, wet)
t
273,828 236,736 200,684 259,696 426,898 ●●
SDG 12.5
Recycled
t
125 53 1,832 4,395 9,682
Reused
t
273,193 236,610 198,831 255,218 413,778
Recovered
t
510 74 21 83 3,438
SDG 6.3
Water consumption (total)
11
million m
3
11.1 11.0 10.7 10.5 9.1 ●●●
SDG 6.4
Water withdrawal (total, by source)
11
million m
3
41.3 39.8 39.2 35.4 30.5
●●●●●
SDG 6.5
Ground water
11
million m
3
37.8 36.4 35.5 31.4 26.7
Municipal water
million m
3
0.9 0.9 1.1 1.3 1.0
Rain water
million m
3
0.2 0.2 0.2 0.2 0.2
Surface water
million m
3
0.8 0.8 0.9 1.0 1.0
Quarry water used (from quarry dewatering)
million m
3
0.1 0.1 0.1 0.1 0.1
Ocean or sea water
million m
3
1.3 1.3 1.3 1.3 1.3
Waste water
million m
3
0.1 0.1 0.1 0.1 0.1
Water discharge (total, by destination)
million m
3
30.2 28.8 28.5 24.9 21.3 ●●●●
Surface (river, lake)
million m
3
28.7 27.3 27.0 23.5 19.9
Sub-surface water (well)
million m
3
0.1 0.1 0.0 0.0 0.0
Ocean or sea
million m
3
1.3 1.3 1.3 1.3 1.3
Off-site treatment
million m
3
0.1 0.1 0.1 0.1 0.1
Impact on water recourses
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Impact on biodiversity and land stewardship
SDG 15.3
Active quarry sites with biodiversity issues
1,3
10.0 10 10 10 8
●● ●
SDG 15.4
SDG 15.5
Active quarry sites with biodiversity management
plans
2,3
99986
●● ●
SDG 15.9
SDG 15.a
Active quarry sites with biodiversity management
plans
%
90.0 90.0 90.0 80.0 75.0
●●● ●
Sites with quarry rehabilitation plans
3
%
88.0 90.0 78.0 81.0 87.0
●●● ●
Quarry land areas rehabilitated from total impacted
(cumulative)
3,4
%
22.7 n/a n/a n/a n/a
●●
Active quarry sites (wholly owned) with
Environmental Management System (ISO14001 or
similar)
%
79.0 77.0 80.0 81.0 93.0
●●
Fuels and energy
Impact on energy resources
Thermal energy consumption (total)
11
TJ
41,229 43,102 45,740 50,114 48,295
●●●
Electrical energy consumption (total)
TJ
6,116 6,328 6,549 6,914 6,768
●●●
2a. Cement Activities – Environmental Performance (acc. to the Sectoral Approach adopted by TITAN)
Climate change
Impact on Greenhouse Gas Emissions
SDG 9.4
Integrated cement plants and cement grinding
plants with certified Environmental Management
System (ISO 14001 or similar)
% of plants
86.7 86.7 86.7 86.7 86.7
●
Integrated cement plants with certified Energy
Management System (ISO 50001 or similar)
% Clinker
Production
54.9 40.5 40.7 6.1 6.7
●●
Gross direct CO₂ emissions (Scope 1, total)
11
million t
9.9 10.3 11.1 12.1 11.7
●●●●●
Gross direct CO₂ emissions (Scope 1) covered under
limiting regulations
4
%
49.9 55.1 56.9 58.6 61.5
● ●●
Net direct CO₂ emissions (Scope 1, total)
11
million t
9.6 10.0 10.8 11.9 11.4
●●●●
Specific gross direct CO₂ emissions (Scope 1)
11
kg/t
Cementitious
product
697.9 701.1 708.8 716.6 719.6
●●●
Specific net direct CO₂ emissions (Scope 1)
11
kg/t
Cementitious
product
674.0 676.6 686.1 700.3 701.4
●●●
Indirect CO₂ emissions (Scope 2, total)
5,11
million t
0.8 0.9 1.0 1.2 1.2
●●●●
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Alternative fuels and materials
SDG 7.2
Alternative fuel substitution rate
11
%Heat Basis
13.1 13.5 12.0 8.9 8.4
●●●●●
SDG 7.3
Biomass in fuel mix
6,11
%Heat Basis
3.8 4.3 3.4 2.8 2.1
●●●●●
SDG 7.a
Clinker-to-cement ratio
%Heat Basis
82.44 82.87 83.68 83.78 84.46 ●●
SDG 12.2
Thermal energy consumption (total)
Cement and grinding plants and attached quaries
11
TJ
40,786 42,160 45,176 49,708 47,833
●●●●●
Energy efficiency related to clinker production
11
kcal/kgClinker
834.9 833.5 835.6 847.1 846.7 ●●●●
Alternative fuels consumption (total)
t
234,451 269,665 244,395 203,170 163,600
●●●●
Electrical energy consumption (total)
Cement and grinding plants and attached quaries
11
GWh
1,603.5 1,661.3 1,723.9 1,826.0 1,783.4
●●●●●
Local Impacts
Impact on natural raw materials recourses
SDG 12.2
Materials consumption (total, dry)
million t
20.6 21.1 22.5 24.4 23.3 ●
Extracted (natural) raw materials consumption (dry)
11
million t
19.3 19.6 21.2 23.0 22.2
Alternative raw materials consumption (dry)
11
million t
1.3 1.5 1.2 1.3 1.2
Alternative raw materials use (of total raw materials
consumed)
11
%Dry
6.4 7.1 5.5 5.4 5.1
●●
Alternative raw materials rate (based on clinker-to-
cement (equivalent) factor)
11
%Dry
7.2 8.1 6.4 6.3 6.0 ●●●●
Impact on water recourses
SDG 6.4
Water consumption (total)
11
million m
3
3.7 3.7 4.0 4.3 3.8 ●●●
SDG 6.5
Water recycled (total)
4
million m
3
15.5 15.1 17.7 18.5 18.5
●●●●
Specific water consumption
11
lt/t
Cementitious
product
260.5 255.7 256.5 259.3 241.2 ●●●●
lt/t
Cement
260.8 257.3 259.2 269.8 252.2 ●●●●
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Other air emissions
SDG 3.9
Overall coverage rate
%
65.4 74.1 79.8 78.1 82.8
● ●● ●
SDG 9.4
Coverage rate continuous measurement
%
77.7 78.6 81.0 82.1 53.8
● ●● ●
Dust emissions (total)
t
225.4 177.5 155.9 277.9 320.8
● ●● ●
Specific dust emissions
g/tClinker
19.3 14.7 12.1 19.8 23.8
● ●● ●
Coverage rate for dust emissions
%
100.0 100.0 100.0 100.0 100.0
● ●● ●
NOx emissions (total)
t
14,962.1 15,316.6 16,880.8 18,863.1 23,063.4
● ●● ●
Specific NOx emissions
g/tClinker
1,282.4 1,268.6 1,307.0 1,345.3 1,708.6
● ●● ●
Coverage rate for NOx emissions
%
100.0 100.0 100.0 100.0 100.0
● ●● ●
SOx emissions (total)
t
2,953.0 2,334.9 2,632.4 2,738.4 2,717.9
● ●● ●
Specific SOx emissions
g/tClinker
253.1 193.4 203.8 195.3 201.4
● ●● ●
Coverage rate for SOx emissions
%
100.0 100.0 100.0 100.0 100.0
● ●● ●
TOC emissions (total)
t
435.3 682.2 546.9 710.7 610.3
●● ●
Specific TOC emissions
g/tClinker
37.3 56.5 42.3 50.7 45.2
●● ●
Coverage rate for TOC emissions
%
90.9 98.9 100.0 100.0 100.0
●● ●
PCDD/F emissions (total)
mg
211.3 152.5 227.7 343.4 163.3
●● ●
Specific PCDD/F emissions
ng/tClinker
18.1 12.6 17.6 24.5 12.1
●● ●
Coverage rate for PCDD/F emissions
%
96.8 100.0 100.0 89.3 100.0
●● ●
Hg emissions (total)
kg
360.3 494.5 492.8 478.0 768.0
●● ●
Specific Hg emissions
mg/tClinker
30.9 41.0 38.2 34.1 56.9
●● ●
Coverage rate for Hg emissions
%
100.0 97.0 100.0 96.0 90.3
●● ●
Cd and Tl emissions (total)
kg
166.5 221.3 267.2 241.3 350.4
●● ●
Specific (Cd and Tl) emissions
mg/tClinker
14.3 18.3 20.7 17.2 26.0
●● ●
Coverage rate for (Cd and Tl) emissions
%
77.7 75.1 81.0 78.1 82.8
●● ●
Sb, As, Pb, Cr, Co, Cu, Mn, Ni and V emissions (total)
kg
2,092.6 2,101.1 2,479.6 3,758.1 4,838.6
●● ●
Specific (Sb, As, Pb, Cr, Co, Cu, Mn, Ni and V)
mg/tClinker
179.4 174.0 192.0 268.0 358.5
●● ●
Coverage rate for (Sb, As, Pb, Cr, Co, Cu, Mn, Ni and V)
emissions
mg/tClinker
77.7 75.1 81.0 78.1 82.8
●● ●
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SDGs &
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Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB
2b. Ready Mix Concrete Activities – Environmental Performance
Climate change
Impact on energy recourses
SDG 9.4 Energy efficiency related to concrete production
kWh/
m
3
Concrete
3.5 3.7 3.8 3.2 3.7 ●●
Local Impacts
Impact on natural raw recourses
SDG 12.2 Recycled/reused concrete (internally and externally)
%Returned
concrete
90.3 86.6 86.9 87.7 86.6 ●●
Impact on water recourse
SDG 12.2
Total water withdrawal
million m
3
3.0 3.0 2.9 3.0 2.7 ●●
Specific water withdrawal
lt/m
3
Concrete
577.8 599.3 589.7 555.5 599.4 ●●
3. All Activities- Detailed disclosures concerning materials, fuels, and wastes
Impact on natural raw materials (extracted)
SDG 12.2
Raw materials consumed in total, for clinker and
cement production (dry)
11
t 19,251,498 19,593,979 21,225,412 23,042,010 22,153,556
●●
Substitution of natural raw materials by alternative materials (byproducts)
SDG 12.4
Alternative materials consumed in total, for clinker and
cement production (dry)
11
t
1,309,939 1,493,110 1,231,546 1,317,648 1,194,837
●●●
Impact on fuels and energy resources
SDG 7.2
SDG
12.2
Fuel mix, energy consumption for clinker and cement
production
%Heat Basis
100.0 100.0 100.0 100.0 100.0
●●
Conventional fossil fuels
11
%Heat Basis
86.9 86.5 88.0 91.1 91.6
●●
Coal, anthracite, and waste coal
11
%Heat Basis
33.0 42.8 32.6 29.3 31.3
Petroleum coke
11
%Heat Basis
44.8 38.5 51.2 57.3 53.2
Lignite
%Heat Basis
1.7 1.6 1.0 1.6 0.7
Other solid fossil fuel
11
%Heat Basis
1.8 1.4 1.4 1.0 0.9
Natural gas
%Heat Basis
5.0 1.0 0.5 0.6 0.9
Heavy fuel (ultra)
%Heat Basis
0.3 0.6 0.8 0.7 2.1
Diesel oil
%Heat Basis
0.4 0.6 0.5 0.6 2.5
Gasoline, LPG
(Liquified petroleum gas or liquid propane
gas)
%Heat Basis
0.0 0.1 0.1 0.1 0.1
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SDG 7.2
Alternative fossil and mixed fuels
11
%Heat Basis
13.0 13.1 11.5 8.3 7.6
●●●●
SDG 13.1
Tyres
%Heat Basis
3.0 3.1 2.8 2.1 1.7
SDG 12.2
RDF
%Heat Basis
3.6 3.9 1.7 0.8 0.4
Impregnated saw dust
%Heat Basis
0.8 0.7 0.7 0.5 0.5
Mixed industrial waste
%Heat Basis
1.2 1.4 1.8 1.0 0.8
Other fossil based and mixed wastes
11
%Heat Basis
4.4 4.0 4.5 3.9 4.2
Biomass fuels
%Heat Basis
0.1 0.4 0.5 0.6 0.8
●●●●
Dried sewage sludge
%Heat Basis
0.02 0.0 0.0 0.1 0.1
Wood, non-impregnated saw dust
%Heat Basis
0.01 0.3 0.4 0.5 0.5
Agricultural, organic, diaper waste, charcoal
%Heat Basis
0.02 0.0 0.0 0.0 0.2
Other
%Heat Basis
0.00 0.0 0.0 0.1 0.0
Management of waste (produced on site)
SDG 12.4
Waste management (total, wet)
t
331,709 308,218 258,032 321,240 528,177
●●●
SDG 12.5
Non-hazardous waste
t
331,201 307,241 255,943 320,436 527,436
Hazardous waste
t
508 977 2,089 803 740
Waste management, break down by destination-
usage (wet)
%By mass
100.0 100.0 100.0 100.0 100.0
●●●
Reuse
%By mass
0.0 0.0 0.7 1.4 1.8
Recycle
%By mass
82.4 76.8 77.1 79.4 78.3
Recovery (including energy recovery)
%By mass
0.2 0.0 0.0 0.0 0.7
Incineration
%By mass
0.0 0.0 0.0 0.0 0.0
Landfill
%By mass
17.3 23.1 22.1 19.0 19.1
Other (incl. storage)
%By mass
0.1 0.1 0.1 0.1 0.1
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Key Performance Indicators Units 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB
4. Cement Activities - Avoided Impact (acc. to TITAN's Approach for avoided emissions, consumption of natural resources and landfilling)
Climate change
SDG 9.4
Avoided net direct CO
2
emissions
7,11
million t
29.3 27.8 26.3 24.9 23.6 ●●
Local Impacts
Avoided dust emissions
8
t
60,700 56,600 52,310 47,680 42,765 ● ●●
Avoided NOx emissions
8
t
261,235 241,555 221,025 199,555 176,785 ● ●●
Avoided SOx emissions
8
t
37,290 35,350 32,630 29,855 26,720 ● ●●
SDG 6.4
Avoided water consumption
9,11
million m
3
32.5 29.1 25.5 21.8 18.0 ●●
SDG 3.9
SDG 12.2
SDG 12.5
Avoided consumption of natural resources and
landfilling of alternative materials and fuels
9,11
million t
25.7 24.1 22.4 21.0 19.5 ●●
5. All Activities - Investments for the Environment
SDG 7.b
Environmental expenditures across all activities
10
million €
22.2 26.6 29.1 27.6 53.5 ●●
SDG 9.4
Environmental management
million €
13.9 16.8 16.3 15.8 19.6
Reforestation
million €
0.3 0.5 0.5 0.5 0.3
Rehabilitation
million €
0.7 0.6 0.5 0.5 0.9
Environmental training and awareness building
million €
0.3 0.2 0.2 0.2 0.2
Application of environmental friendly technologies
million €
4.2 6.4 9.6 8.7 30.4
Waste management
million €
2.7 2.1 1.9 2.0 2.0
Notes
SDG 3.9
SDG 9.4
General note on data consolidation
Consolidation (aggregation) of data for the key indicators of the Group environmental performance was made on the basis of the percentage of property share for each of the subsidiaries, where TITAN
holds a property share of more than 50.0%, also called share of equity for the purposes of non-financial data consolidation. The indicators were calculated according to the share of equity held by the
Group at the end of 2020. Performance of previous years was recalculated to reflect changes in share of equity in 2020. A detailed list of TITAN’s share of equity in all subsidiaries of the Group is
provided in Table 2.2.1.
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Notes on external verification, standards, and guidance
●Assurance: Specific KPIs denoted in this Table are included in the scope of ERM Certification and Verification Services (ERM CVS) assurance engagement (ERM CVS’ “Independent assurance
statement”).
● Standards: For the reporting standards under TITAN's Global Sectoral Approach, namely GCCA, UNGC, UNCTAD, and SASB, and connection with the KPIs in this Table, please refer to Table 2.5.
● Guidance: TITAN follows the GCCA Sustainability Framework Guidelines, and the Sustainability Guidelines for the monitoring and reporting of: CO₂ emissions from cement manufacturing, co-
processing fuels and raw materials, monitoring and reporting of emissions, monitoring and reporting of water in cement manufacturing, and quarry rehabilitation and biodiversity management (for
all documents the reference is the latest edition of 2019 or 2020). The above Guidelines had superseded in 2020 the previous – and respective – Guidelines of the WBCSD/CSI, which were the
guidance for measuring, reporting and verifying environmental performance until (and including) year 2018. For the Sector standards, see details in Table 2.5.1.
Notes on specific environmental performance indicators
1. Active quarries within, containing or adjacent to areas designated for their high biodiversity value. See also Table 2.2.2
2. Sites with high biodiversity value where biodiversity management plans are actively implemented. See also Table 2.2.2
3. Coverage includes all quarries attached to cement plants and quarries for aggregates production.
4.New indicators
● Quarry land areas rehabilitated from total impacted (cumulative)
Coverage includes all quarries under TITAN management control. This KPI is calculated as the percentage of the impacted/disturbed quarry areas that has been rehabilitated (total and cumulative),
aggregated at Group level. Under TITAN approach, this KPI is complementary to the KPIs under the topic of Impact on biodiversity and land stewardship in this Table, namely: “Sites with quarry
rehabilitation plans” and “Active quarry sites with biodiversity management plans”. Also, this KPI covers the requirement for reporting according to SASB Standards on “Biodiversity Impacts”, metric
EM-CM-160a.2 “Terrestrial acreage disturbed, percentage of impacted area restored”. The total (cumulative) area of disturbed land reached 36,2 million m2 in 2020, first year of disclosing such data.
● Gross direct CO2 emissions (Scope 1) covered under limiting regulations
This KPI is calculated as the total amount of gross Scope 1 emissions that are covered under emissions-limiting regulations divided by the total amount of gross Scope 1 emissions, aggregated at
Group level. In combination with KPI “Gross direct CO2 emissions (Scope 1, total)”, this KPI covers the requirement for reporting according to SASB Standards on “Greenhouse Gas Emissions”, metric
EM-CM-110a.1 “Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations”.
● Water recycled (total)
This KPI is calculated in line with GCAA Sustainability Guidelines for the monitoring and reporting of water in cement manufacturing. In combination with KPI “Water withdrawal (total, by source)”,
this KPI covers the requirement for reporting according to SASB Standards on “Water Management” metrics EM-CM-140a.1 “(1) Total fresh water withdrawn, (2) percentage recycled, (3) percentage in
regions with High or Extremely High Baseline Water Stress”. For the latter, TITAN sites operating in water stressed areas were identified (73% of cement and grinding plants, 65% of quarries, and
62% of ready mix sites), based on the results of the water risk assessment, made in 2020 with the use of the Aqueduct tool of the World Resources Institute (WRI).
5. Indirect CO₂ emissions are related to emissions released for the production of the electrical energy consumed at TITAN’s facilities. For their calculation, we use emission factors provided by the
supplier of the electrical energy or other publicly available data sources.
6. Biomass rate corresponds to the percentage of total thermal energy consumption that comes from renewable energy sources.
7. Avoided CO2 emissions is the total accumulated quantity for the period between the specific year and the base year which in the case of CO2 emissions is 1990 in accordance to the Kyoto
protocol. The base year performance for specific net direct netdirect CO2 emissions was 778.3kg/tCementitious product, adjusted for the equity of year 2020.
8. Avoided air emissions are the total accumulated quantities (for each specific emission separately) for the period between the specific year and the base year which in the case of air emissions is
2003, the year of publishing the first sustainability report of TITAN Group. The base year performance for specific dust emissions was 370.3g/tClinker, for specific NOx emissions was
2,969.2g/tClinker and for specific SOx emissions was 418.8g/tClinker, adjusted for the equity of year 2020.
9.Avoided natural resources consumption is the total accumulated quantity (for water and raw materials/fuels separately) for the period between the specific year and the base year which in the
case of natural resources is 2003, the year of publishing the first sustainability report of TITAN Group. The base year performance for specific water consumption was 503.9lt/tCement, adjusted for
the equity of year 2020. According to TITAN’s approach, all quantities of alternative raw materials and fuels would, otherwise, have been handled as waste and would have been landfilled, with
subsequent impacts to the local environment, land, water resources, and ecosystems.
10.The definition of Environmental expenditures across all activities is equivalent to the definition of Green Investment. See Notes of sub-section 2.1. Value Creation Core Indicators Index.
11.2019 figures adjusted based on updated information received after the publication of 2019 IAR.
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2.2.1 TITAN Group Basis for Calculating Environmental Performance Indicators, using the Share of equity
1
Region Country Activity 2020 2019
USA USA All 100.00% 100.00%
Greece and Western Europe Greece All 100.00% 100.00%
Albania All 100.00% 100.00%
Bulgaria All
100.00% 100.00%
North Macedonia All 100.00% 100.00%
Kosovo All 100.00% 100.00%
Serbia All 100.00% 100.00%
Egypt All 100.00% 100.00%
Adocim all activities 75.00% 75.00%
Marmara grinding plant 100.00% 100.00%
Note
1. The term "share of equity" is used as a "proxy" of the percentage of property share, and only for the above purposes
Southeastern Europe
Eastern Mediterranean
Turkey
ESG performance
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2.2.2 TITAN Group Quarry Sites with High Biodiversity Value
Site Country Raw Material
use
Location Status Biodiversity
Management
Plan
Notes
Pennsuco
Quarry
USA
Cement &
Aggregates
Miami
Florida
Inside area for protection of
freshwater ecosystems
(wetlands) on local/state
level
YES
According to New Permit (April 2010), Under Lake
Belt Plan -“Restoring Littoral Shelf Areas”.
BMP developed in 2012.
Center Sand
Quarry
USA Aggregates
Clermont,
Florida
Adjacent to area for
preservation of terrestrial
ecosystems on local/state
level
YES
Relocate Gopher Tortoise Protected Species into
new-created Conservation Area - Monitoring
Program ongoing.
BMP developed in 2013.
Corkscrew
Quarry
USA Aggregates
Naples,
Florida
Adjacent to area for
protection of freshwater
ecosystems (wetlands) on
local/state level
YES
Preservation of wetlands from invasive species;
need to adjust BMP as per the GCCA Sustainability
Guidelines for quarry rehabilitation and biodiversity
management.
Zlatna
Panega
Quarry
Bulgaria Cement
Zlatna
Panega
Partly inside NATURA 2000
area for protection of
terrestrial ecosystems (SAC)
YES
Baseline assessment by an "Initial Ecological
Scoping Study" (ATKINS).
A structured BMP was developed in end 2013 acc. to
CSI Guidance; implemented in 2014.
Xilokeratia
Quarry
Greece Cement Milos Island
Inside/adjacent to NATURA
2000 area for protection of
terrestrial and maritime
ecosystems (SAC/SPA)
YES
Apsalos
(West &
East)
Quarries
Greece Cement
Apsalos,
Pella
Inside NATURA 2000 area for
protection of terrestrial
ecosystems (SPA)
Aspra
Homata I + II
Quarries
Greece Cement
Apsalos,
Pella
Inside NATURA 2000 area for
protection of terrestrial
ecosystems (SPA)
Rethimno
Quarry
Greece Aggregates
Rethimno,
Crete Island
Inside area for protection of
terrestrial ecosystems on
national level
YES
Leros Quarry Greece Aggregates Leros Island
Inside area for protection of
terrestrial ecosystems on
national level
YES
Biodiversity Study completed in 2018, followed by
BMP.
Agrinio
Quarry
Greece Aggregates
Agrinio,
Aitoloaka-
rnania
Inside area for protection of
terrestrial ecosystems on
national level
NO
Biodiversity Study ongoing, to complete in 2021.
Biodiversity Studies for the 'baseline' assessment
completed in 2015, followed by BMPs. The Apsalos
and Aspra Homata quarries are covered by the
same biodiversity study and BMP.
YES
Notes
1. The above Table is complementary to the Table 2.2, and in specific for the KPIs:
• Number of active quarries within, containing or adjacent to areas designated for their high biodiversity value.
• Number of quarries with high biodiversity value where biodiversity management plans are actively implemented.
• Percentage of quarries with high biodiversity value where biodiversity management plans are actively implemented.
2. In 2020 an updated biodiversity risk assessment was made for all TITAN Group sites with the use of the Integrated Biodiversity Assessment Tool (IBAT).
Four new sites (three of which under TITAN full management control), in addition to the known cases listed in the above Table, that were recognized from this
high-level assessment as being in proximity to (or part of) areas of high biodiversity value are not disclosed in this list yet, until further assessment of the
biodiversity baseline conditions is completed in 2021, in line with the key principles of the GCCA Sustainability Guidelines for Quarry Rehabilitation and
Biodiversity Management (May 2020).
3. The above Table includes the needed disclosures for supporting TITAN's performance monitoring and reporting according to the sectoral commitments
(GCCA Sustainability Guidelines for Quarry Rehabilitation and Biodiversity Management, May 2020). Also this information for the environmental management
plan(s) concerning Biodiversity in specific, combined with the disclosures under the section 'ESG Performance overview' of this report, cover the requirements
for reporting according to the SASB Standards for 'Biodiversity Impacts' and in more specific the metric EM-CM-160a.1 'Description of environmental
management policies and practices for active sites'.
TITAN Cement Group
Integrated Annual Report 2020
96
SDGs &
Targets
ESG Performance Indicators 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB
Health and safety
All activities performance acc. to the TITAN Global Sectoral
Approach, Group total
SDG 3.6
Employee fatalities 1 0 0 0 0 ●●●●
SDG 3.8
Employee fatality rate 1.85 0.00 0.00 0.00 0.00 ●●●●
SDG 4.3
Contractors fatalities 2 0 2 0 0 ●●●●
SDG 8.8
Third-party fatalities 0 0 0 0 1 ●●●●
Employee Lost Time Injuries (LTIs) 6 16 17 27 22 ●●●●
Employee Lost Time Injuries Frequency Rate (LTIFR) 0.57 1.44 1.54 2.41 1.92
●●●●●
Employee lost working days 228 637 615 1,220 897 ●●●
Employee Lost Time Injuries Severity Rate 21.5 57.4 55.7 109.0 78.2 ●●●●
Contractors Lost Time Injuries (LTIs) 10 10 9 7 7 ●●●●
Contractors Lost Time Injuries Frequency Rate (LTIFR) 1.46 1.35 1.12 0.82 0.73
●●●●●
All activities performance leading indicators, Group total
Near misses 3,467 3,746 2,169 1,185 1,304
●●
Training man-hours on health and safety per employee
1
6.88 14.10 12.98 12.32 12.35 ●●
Training man-hours on health and safety per contractor
1
10.40 12.34 14.88 11.73 11.54 ●●
Expenditures for Health and Safety (Euros). Group Total
2
8,501,138 n/a n/a n/a n/a ●●
Cement operations performance acc. to the TITAN Global
Sectoral Approach, Group total
Employee fatalities
0
0000
●
●●●
Employee fatality rate
0.00
0.00 0.00
0.00
0.00
●
●●●
Contractors fatalities
2
0 200
●
●●●
Third-party fatalities
0
0000
●
●●●
Employee Lost Time Injuries (LTIs)
2
10 8 16 11
●
●●●
Employee Lost Time Injuries Frequency Rate (LTIFR)
0.33
1.59 1.25 2.41 1.54
●
●●●●
Employee lost working days
176
440 416 1,014 313
●
●●
Employee Lost Time Injuries Severity Rate
29.2
69.9 65.0 152.8 43.8
●
●●●
Contractors Lost Time Injuries (LTIs) 8 8 6 6 2
●
●●●
2
2
.
.
3
3
S
S
o
o
c
c
i
i
a
a
l
l
P
P
e
e
r
r
f
f
o
o
r
r
m
m
a
a
n
n
c
c
e
e
I
I
n
n
d
d
e
e
x
x
ESG performance
review
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Report
97
SDGs &
Targets
ESG Performance Indicators
Greece and
Western Europe
USA SEE EM Assurance GCCA UNGC UNCTAD SASB
SDG 3.6
Employee fatalities 0 1 0 0 ●●●
SDG 3.8
Employee fatality rate 0.00 4.28 0.00 0.00 ●●●
SDG 4.3
Contractors fatalities 0 0 1 1 ●●●
SDG 8.6
Third-party fatalities 0 0 0 0 ●●●
SDG 8.8
Employee Lost Time Injuries (LTIs) 1 2 3 0 ●●●
SDG 10.3
Employee Lost Time Injuries Frequency Rate (LTIFR) 0.49 0.39 1.48 0.00
●●●●
Employee lost working days 19 0 209 0 ●●
Employee Lost Time Injuries Severity Rate 9.36 0.00 102.89 0.00 ●●●
Contractors Lost Time Injuries (LTIs) 2 0 5 3 ●●●
Contractors Lost Time Injuries Frequency Rate (LTIFR) 0.00 0.00 9.45 7.97
●●●●
Health and safety data by activity, 2020 Performance
C
C
e
e
m
m
e
e
n
n
t
t
A
A
g
g
g
g
r
r
e
e
g
g
a
a
t
t
e
e
s
s
R
R
e
e
a
a
d
d
y
y
M
M
i
i
x
x
O
O
t
t
h
h
e
e
r
r
Employee fatalities
0
0
1
0
●●●
Employee fatality rate 0.00 0.00 6.55 0.00 ●●●
Contractor fatalities 2 0 0 0 ●●●
Third-party fatalities 0 0 0 0 ●●●
Employee Lost Time Injuries (LTIs) 2 0 4 0 ●●●
Employee Lost Time Injuries Frequency Rate (LTIFR) 0.33 0.00 1.21 0.00
●●●●
Employee lost working days 176 0 52 0 ●●
Employee Lost Time Injuries Severity Rate 29.18 0.00 15.70 0.00 ●●●
Contractor Lost Time Injuries (LTIs) 8 0 2 0 ●●●
Contractor Lost Time Injuries Frequency Rate (LTIFR) 1.37 0.00 5.02 0.00
●●●●
Health and safety data by region, 2020 Performance
TITAN Cement Group
Integrated Annual Report 2020
98
SDGs &
Targets
ESG Performance Indicators 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB
SDG 5.4
Average employment, Group total
3
5,363 5,382 5,424 5,552 5,612 ●
SDG 5.4
Number of employees as of 31 December 2020, Group total 5,359 5,400 5,365 5,432 5,482 ●
SDG 8.5
Employee turnover (%), Group average 11.31% 12.33% 11.03% 13.94% 13.57% ●
SDG 8.6
Employees left. Group total 606 666 592 757 744 ●
SDG 8.8
Employee new hires (%), Group average 11.18% 14.24% 10.27% 13.02% 10.40% ●
SDG 10.3
Employee new hires, Group total
599
769
551
707
570
●
New hires per age group ●
Under 30 145 204 157 200 168
Between 30-50 345 417 294 367 282
Over 50 109 148 100 140 120
New hires per gender ●
Females 80 119 77 123 72
Males 519 650 474 584 498
Employment per age group
2
●
Under 30 362 388 n/a n/a n/a
Between 30-50 2,808 2,896 n/a n/a n/a
Over 50 2,191 2,118 n/a n/a n/a
Employment per type
4
●
Full time 5,231 5,297 5,342 5,461 5,526
Part Time 48 42 28 35 27
Temporary 80 61 54 56 59
Employment per category
4
●
Managers 649 641 481 473 464
Senior managers 121 114 121 126 121
Administration/technical 1,459 1,460 1,616 1,654 1,655
Semi skilled/unskilled 3,130 3,185 3,214 3,294 3,372
Employment per gender
4
●
Females 663 657 641 653 641
Males 4,696 4,743 4,783 4,899 4,971
Share of women in employment, Group average
4
12.37% 12.17% 11.82% 11.76% 11.42% ●
Share of women in management, Group average
4
16.49% 15.50% 16.53% 15.69% 16.24% ●●
Share of women in Senior Management, Group average
4
14.05% 14.91% 19.01% 16.67% 17.69% ●●
Employees from local community, Group average
4,5
83.16% 83.32% 80.79% 80.00% 81.20% ●
Unionized employees, Group total
6
33.48% 33.85% 30.94% 34.81% 40.93% ●
Employment
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SDGs &
Targets
ESG Performance Indicators 2020 2019 2018 2017 2016 Assurance GCCA UNGC
UNCTAD
SASB
SDG 4.3
Training investment per (trained) employee (euros), Group
average
2,4
1
1
0
0
5
5
2
2
0
0
2
2
2
2
0
0
5
5
1
1
5
5
7
7
2
2
2
2
6
6
●
●
SDG 4.4
Training investment (euros), Group total
2
4
4
8
8
5
5
,
,
3
3
3
3
1
1
9
9
0
0
0
0
,
,
4
4
9
9
5
5
1
1
,
,
0
0
3
3
5
5
,
,
3
3
9
9
8
8
8
8
7
7
1
1
,
,
9
9
9
9
2
2
1
1
,
,
2
2
6
6
9
9
,
,
4
4
1
1
0
0
●
●
SDG 5.1
SDG 5.5
Training investment per gender (euros), Group total
2,4
●
●
SDG 8.5
Females 112,819 209,268 187,153 191,633 200,687
SDG 10.2
Males 372,512 691,659 848,245 680,359 1,068,723
SDG 10.3
Trained employees, Group total
4
4,606 4,465 5,064 4,717 4,824 ●
SDG 16.5
Share of trained employees (in total workforce), Group
average
4
85.95% 82.69% 93.36% 84.96% 85.96% ●
Share of trained female employees (i
n total female
employees). Group average
4
93.21% 95.13% 97.50% 94.03% 95.63% ●
Trained employees per category, Group total
4
Managers 651 538 643 595 644
Senior managers 106 133 142 178 130
Administration/technical 1,408 1,824 2,007 1,852 1623
Semi skilled/unskilled 2,441 1,970 2,272 2,092 2427
Trained employees per age group, Group total
4
●
Under 30 318 461 510 444 432
Between 30-50 2,631 2,644 2,982 2,725 2,867
Over 50 1,657 1,360 1,572 1,548 1,525
Training hours, Group total 79,350 137,272 138,114 155,587 158,210 ●●
●
Average training hours per employee (over the total number
of direct employees), and breakdown per gender, Group
total
4
14.81 25.42 25.46 28.02 28.19 ●●
●
Average female 18.06 35.32 35.66 37.00 36.00 ●
Average male 14.35 24.05 24.10 27.00 27.00 ●
People Development
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Integrated Annual Report 2020
100
SDGs &
Targets
ESG Performance Indicators 2020 2019 2018 2017 2016 Assurance GCCA UNGC UNCTAD SASB
Training hours per subject, Group total
●
SDG 4.3
Company on-boarding
2
942 6,414 n/a n/a n/a ●
SDG 4.4
Compliance 6,359 1,191 1,430 308 64 ●
●
SDG 5.1
CSR and Sustainability 525 970 955 211 55 ●
●
SDG 5.5
Digital
2
2,767 11,767 n/a n/a n/a ●
SDG 8.5
Environment 2,115 3,722 3,136 4,801 3,647 ●
SDG 10.2
Foreign languages 2,837 3,113 3,929 6,772 12,493 ●
SDG 10.3
Functional competence 4,994 3,512 ●
SDG 16.5
Generic competence 2,947 6,302 ●
Health and safety 36,912 76,372 69,591 68,200 69,317 ●
Managerial skills 3,615 10,297 15,223 19,883 23,248 ●
Other 3,620 1,276 2,440 4,716 8,885 ●
Security 586 407 761 754 653 ●
Technical know-how 11,132 11,931 17,497 22,217 21,331 ●
SDG 2.1
Donations (euros), Group total
2
2,125,725 2,532,248 2,263,920 2,083,370 2,643,703
●●
SDG 2.3
Donations in cash (euros), Group total
2
1,560,093 2,020,330 1,626,390 1,498,483 1,053,426
●●
SDG 4.3
Donations in kind (euros), Group total
2
565,633 511,918 637,530 584,887 1,590,278
●●
SDG 4.4 Internships, Group total 251 396 477 910 730 ●
SDG 9.3
New entry level jobs from internships/traineeships, Group
total
15 24 23 24 62 ●
Key operations with Community Engagement Plans related
to material issues and Group policies
2,7
14 of 14 6 of 14 3 of 14 n/a n/a ● ●●
Local Spend (%), Group average
2
66.95% 65.35% n/a n/a n/a ●●
Notes
23,152 27,725 18,517
General Note for the consolidation of data
Consolidation (aggregation) of data for the above Social Performance Indicators was made with 100.0% contribution for all subsidiaries, where TITAN holds percentage of property share of more than
50.0%, also called share of equity for the purposes of ESG performance statements data consolidation. A detailed list of TITAN Group subsidiaries and TITAN’s share of equity is provided in Table 2.3.1..1.
Notes for the external verification, standards, guidance, and terms used
● Assurance: Specific KPIs denoted in this Table are included in the scope of ERM Certification and Verification Services (ERM CVS) assurance engagement (ERM CVS’ “Independent assurance
statement”).
● Standards: For the reporting standards under TITAN's Global Sectoral Approach, namely the GCCA, UNGC, UNCTAD, and SASB, and connection with the KPIs in this Table, please refer to Table 2.5.
● Guidance: TITAN follows the GCCA Sustainability Framework Guidelines, and the Sustainability Guidelines for the monitoring and reporting of safety in cement and concrete manufacturing (last
edition in February 2020). This document has been agreed within the GCCA to have extended application to concrete and other related activities.
Stakeholder Engagement
General Note for the consolidation of data
ESG performance
review
Management
Report
101
Notes on specific KPIs
1. The KPI was calculated for closing of the reporting period 2020 in accordance with the practice for all Safety data, being the use of "Average Employment" (see Note 3). This is consistent with all
years prior to 2020.
2. Relevant information is not available for the specific years denoted as 'n/a'.
For the definitions related to "Training Investment", "Donations", and "Local Spend", see the terms under the subsection 2.1. Value Creation Core Indicators Index.
In specific for the new KPI ''Expenditures for Health and Safety'': TITAN launched a Group-level approach and methodology for the first time in 2020, following the UNCTAD “Guidance on Core
indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals” (2019), and building on bench strength and the technical capacity of internal
systems. The efforts were coordinated by the Group Health & Safety Dpt., and the project was rolled-out in all BUs across the Group with consistent rules. Data collection covered 4 categories of
expenditures: (1) Consumables (PPEs etc.), (2) Training on Occupational H&S, and awareness building, (3) Facilities (spend in infrastructure), and (4) H&S Management. The information was secured
with the use of the Group internal data collection system. Comparable figures for this KPI are not available for years before 2020.
3. The calculation of the"Average Employment" was made according to Belgian Law (sec. 165 XIVB of RD of 30 January 2001).
4. KPIs calculated on the basis of "Average Employment" data for years 2016-2018. As of 2019, the specific KPIs are calculated on the basis of the Number of employees as of 31 December. Figures for
the KPI "Share of trained female employees (in total female employees)" which were calculated above 100% (because of the Turnover for Females, or other reasons) needed to be reported as 100%.
5. Specific information not available for the operations of TITAN in USA. The percentages for the Group Average are calculated excluding the employment of TITAN in USA.
6. Specific information provided by the Adocim BU under confidentiality for the names of employees.
7. The KPI "Key operations with Community Engagement Plans related to material issues and Group policies" was incorporated for the first time in the KPIs Index in this report. In 2020 TITAN
progressed with the recording of all important information about initiatives and actions for community engagement on Group level, across all BUs and in a consistent manner. The BUs were guided
and facilitated to provide their self-assessment for each of the initiatives and actions, and following TITAN's principles and guiding criteria. This work was piloted as a project in 2020 using the
Group internal data collection system. Figures for previous years are in accordance to disclosures inside the TITAN IAR 2019, and TITAN IAR 2018.
TITAN Cement Group
Integrated Annual Report 2020
102
2.4 Governance Core Indicators
SDGs 2030
and targets
Governance Core Indicators Notes Performance 2020 Reporting Standards
Board of Directors
SDG 5.5
Number and percentage of female board
members
Number of females: 3
Contribution to the total: 21%
UNGC & UNCTAD
5.5.2.
Board members by age range
Under 30
0
Between 30-50
1
Over 50
13
Number of independent board members
8
Number of board meetings and attendance
rate
1
6 scheduled meetings and 2 unscheduled. The
attendance rate in 7 out of 8 meetings (6 scheduled
and 1 unscheduled) was 100%. In the 2nd unscheduled
meeting, where only the non-executive directors, the
Managing Director and the Chairman of the Group
Executive Committee were invited to participate, the
attendance rate was 10 out of 11.
Number of meetings of audit committee and
attendance rate
2
5 audit and risk commitee meetings with participation
of all 3 members in 4 meetings and 2 members in one
meeting.
Compensation: total and compensation per
board member and executive
3
The detailed figures, as compensation for each Board
member, will be provided in the Corporate
Governance Statement for 2020.
Other disclosures related to Governance
Amount of fines paid or payable due to
convictions (in euros)
40
UNGC, UNCTAD
16.5.2 and SASB
Average number of hours of training on anti-
corruption issues, per year per employee
5 1.19
UNGC and UNCTAD
16.5.2
Notes
Note for the standards, guidance, and terms used
The KPIs referred in ESG Performance Statements as Governance core indicators are in line with the requirements of the UNCTAD Guidance on
reporting of Core Indicators (UNCTAD, 2019), and are connected with the most relevant SDGs and specific Targets for each SDG. Specific KPIs from
this list are also essential to reporting on progress with respect to TITAN Group commitments for the UNGC Ten Principles.
Notes for specific Governance core indicators
1. Number of board meetings during the reporting period and number of Board members who participate at each Board meeting during the reporting
period divided by the total number of directors sitting on the Board multiplied by the number of Board meetings during the reporting period.
2. Number of board meetings during the reporting period and number of Audit committee members who participate at each Audit committee
meeting during the reporting period divided by the total number of members sitting on the Audit committee multiplied by the number of Audit
committee meetings during the reporting period.
3. Total annual compensation (including base salary and variable compensation) for each executive and non-executive director.
4. Total monetary value of paid and payable corruption-related fines imposed by regulators and courts in the reporting period. This disclosure covers
the requirements for reporting according to the SASB Standards for 'Pricing Integrity & Transparency' and in more specific the metric (KPI) EM-CM-
520a.1. 'Total amount of monetary losses as a result of legal proceedings associated with cartel activities, price fixing, and anti-trust activities'.
5. Average number of hours of training in anti-corruption issues per employee per year (as total hours of training in anti-corruption issues in the
reporting period, divided by the total number of trained employees). TITAN categorizes as such training the subjects under the subjects of:
"Compliance" (see Table 2.3, for the KPI "Training hours per subject, Group total"). In more specific the trainings for Group Policies on Human Rights,
Code of Conduct, and other related to areas of anti-corruption and anti-bribery, also grievance mechanisms (TITAN ETHICS POINT), and without
considerinng this list as exhaustive.
SDG 16.7 UNGC
UNGC & UNCTAD
16.6
SDG16.6
SDG16.5
ESG performance
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103
Table 2.5 TITAN Reporting Standards for the ESG Performance disclosures in 2020
Areas of ESG Performance
GCCA UNGC UNCTAD SASB
Environment (Connection with KPIs in Table 2.2 )
Local Impacts
Impact on natural raw materials recourses
●●
Substitution of natural raw materials by alternative materials (byproducts)
●
●●
Impact on water recourses
●
●●EM-CM-140a.1
Avoided consumption of water
●●
EM-CM-160a.1
EM-CM-160a.2
Air emissions
●
● EM-CM-120a.1
Avoided emissions to air (dust, SOx, and NOx)
●
Management of waste
●●EM-CM-150a.1
Impact on fuels and energy resources
●
●●EM-CM-130a.1
Climate change
Impact on green house gas emissions
● ●●EM-CM-110a.1
Alternative fuels and materials
● ●●
Impact on energy recourses
● ●●
Avoided CO
2
emissions
●●
Investments for the Enrironment ('Green Investment')
●●
Social (Connection with KPIs in Table 2.3)
Health and safety
● ●●EM-CM-320a.1
Employment
●●
People Development
●●
Stakeholder Engagement
●●
Governance (Connection with disclosures in Table 2.4)
●●EM-CM-520a.1
References to the TITAN Group Global Compact Advanced
Communication on Progress Review (COP)
Connection with disclosures in Table 4 "2020 TITAN Group Global
Compact Advanced Communication on Progress Review (CoP)", and Table
5 "Transparency International - Corruption Perception Index 2020"
● ●●
EM-MM-210a.1
EM-MM-21
0a.2
EM-MM-210a.3
EM-MM-310a.1
EM-MM-310a.2
EM-MM-510a.2
Notes for the standards used
G
G
C
C
C
C
A
A
:
: TITAN follows the GCCA Sustainability Framework Guidelines, and the Sustainability Guidelines for the monitoring and reporting of: safety in
cement and concrete manufacturing, CO₂ emissions from cement manufacturing, co-processing fuels and raw materials, monitoring and reporting of
emissions, monitoring and reporting of water in cement manufacturing, and quarry rehabilitation and biodiversity management (for all documents
the reference is to last edition in 2019 or 2020). The above Guidelines had superseded in 2020 the previous – and respective – Guidelines of the
WBCSD/CSI, which were the guidance for measuring, reporting and verifying environmental performance until (and including) year 2018. For the
Sector standards see details in Table 2.5.1.
U
U
N
N
G
G
C
C
:
: TITAN follows the reporting requirements for meeting the criteria of the UN Global Compact relating to a Communication on Progress (COP)
Advanced Level. See details in Table 4.
U
U
N
N
C
C
T
T
A
A
D
D
:
:
TITAN has adopted under its reporting framework the applicable KPIs according to the Guidance of the United Nations – UNCTAD
“Guidance on Core indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals” (latest
publication in 2019), as supplementary to the above Reporting Standards S1 and S2.
S
S
A
A
S
S
B
B
:
:
In 2020, TITAN also incorporated the Sustainability Accounting Standards Board (SASB) Framework in the preparation of non-financial
disclosures, in order to appropriately address the more financially-material ESG issues. The SASB Framework was leveraged for the purpose of
connecting the SASB Materiality Map® with the 2020 Group’s materiality assessment, and allowed the alignment between the Group and its
subsidiaries. In the same direction the Group also started reporting in alignment with the Sustainability Accounting Standard Board (SASB) for the
specific requirements of industries mostly relevant to our operations, namely the Construction Materials industry and the Metals & Mining industry.
Reporting Standards
EM-CM-110a.2
Impact on biodiversity and land stewardship
●
●
TITAN Cement Group
Integrated Annual Report 2020
104
Table 2.5.1. Sector Standards for the Non-financial disclosures in 2020
Sector Association or Initiative Guidelines and other documents of reference Published
Sustainability Charter
Sustainability Framework Guidelines
Sustainability Guidelines for the monitoring and reporting of safety in cement and concrete manufacturing. This document
has been agreed within the GCCA to have extended application to concrete and other related activities [Pillar 1]
Sustainability Guidelines for the monitoring and reporting of CO
2
emissions from cement manufacturing [Pillar 2]
Sustainability Guidelines for the monitoring and reporting of water in cement manufacturing [Pillar 4]
Sustainability Guidelines for the monitoring and reporting of emissions from cement manufacturing [Pillar 4]
Sustainability Guidelines for co-processing fuels and raw materials in cement manufacturing [Pillar 5]
Sustainability Guidelines for quarry rehabilitation and biodiversity management [Pillar 4]
Guidelines for Environmental and Social Impact Assessment (ESIA) 2016
Recommended Good Practices for: (a) Contractor Safety, and (b) Driving Safety 2009
GCCA Latest edition in 2019 or 2020
(Previously) WBCSD/CSI
Notes
1. The GCCA has built its Sustainability Charter around five (5) Sustainability Pillars: Pillar 1: Health and Safety, Pillar 2: Climate Change and Energy, Pillar 3: Social Responsibility, Pillar 4:
Environment and Nature and Pillar 5: Circular Economy
2. TITAN was actively participant in five (5) Working Groups under the framework of activities of the GCCA in 2020: WG1. Health and safety in the cement and concrete industries, WG2.
Thought leadership and policy for cement and concrete, WG4. 2050 concrete roadmap, WG5. Innovation in cement and concrete, and WG6. Good practices and benchmarking.
ESG performance
review
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Report
105
Policies related to ESG Performance Albania Bulgaria Egypt Greece Kosovo North
Macedonia
Serbia Turkey USA
Human Rights Policy
● ● ●● ● ● ●● ● ● ● ●● ● ● ● ● ● ● ● ●
Anti-bribery and Corruption Policy
● ● ● ● ● ●● ● ●● ●● ● ●● ● ● ● ● ●
People Management Framework
● ●● ● ● ●● ● ● ● ●● ● ● ● ● ●
CSR Policy
● ● ●● ● ● ● ●● ● ●● ● ●● ● ● ● ● ● ● ● ●
Code of Conduct
● ● ●● ● ● ● ●● ● ●● ● ●● ● ●● ●● ● ●
Environmental Policy and Climate Mitigation Strategy
● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●
Occupational Health and Safety Policy
● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●● ● ●
Confict of Interest Policy
● ● ●● ● ● ● ● ●● ●● ● ●● ● ● ● ●
●
●
●
Policy assessment
3. Group Policies and Management Systems Related to ESG Performance
● Policy dissemination (translated and communicated in local languages)
3.1 Group Policies
● ● Policy implementation (training required with high level of coverage for employees)
TITAN Cement Group
Integrated Annual Report 2020
106
Area Albania Bulgaria Egypt Greece Kosovo North Macedonia Serbia Turkey USA
H&S OHSAS 18001
All operations
(except 1
terminal)
ISO 45001
All operations
ISO 45001
All integrated
cement plants
ISO 45001
All operations
(except 2
terminals)
ISO 45001
All operations
ISO 45001
All operations
OHSAS 18001
All operations
OHSAS 18001
(1) integrated
cement plant,
(1) grinding
cement plant
and (1) RMC
unit
All operations
conform with the
regulatory
framework of MSHA
and OSHA
Environment ISO 14001
All operations
(except 1
terminal)
ISO 14001
All operations
ISO 14001
All integrated
cement plants
ISO 14001
All operations
(except 2
terminals)
ISO 14001
All operations
ISO 14001
All operations
ISO 14001
All operations
ISO 14001
(1) integrated
cement plant,
(1) grinding
cement plant
and (1) RMC
unit
All operations
conform with the
regulatory
framework of EPA
Quality ISO 9001
All operations
ISO 9001
All operations
ISO 9001
All integrated
cement plants
ISO 9001
All operations
ISO 9001
All operations
ISO 9001
All operations
ISO 9001
All operations
ISO 9001
All operations
(except 1
terminal)
Quality ASHTO
All operations
Energy ISO 50001
All RMC units
Energy audits
(1) integrated
cement plant
ISO 50001
All integrated
cement plants,
Energy audits
All RMC units
All aggregates
quarries
ISO 50001
All integrated
cement plants
(3) quarries for
cement raw
materials
(1) RMC unit
ISO 50001
All integrated
cement plants
Social GHRMS/SF and SA
8000
All operations
GHRMS/SF
All operations
GHRMS/SF
All operations
GHRMS/SF
All operations
GHRMS/SF and
SA 8000
All operations
GHRMS/SF
All operations
GHRMS/SF
All operations
GHRMS/SF
All operations
GHRMS/SF
All operations
3.2 Group Management Systems
ESG performance
review
Management
Report
107
Scope Principle Criteria for GC Advanced Level TITAN Approach TITAN Reference
Human Rights
Management
Policies &
Procedure
Principle 1
Businesses should
support and respect
the protection of
internationally
proclaimed human
rights
Principle 2
Businesses should
make sure they are
not complicit in
human rights abuse
Criterion 3
The CoP describes robust
commitments, strategies or
policies in the area of human
rights
Criterion 4
The CoP describes effective
management systems to
integrate the human rights
principles
Criterion 5
The CoP describes effective
monitoring and evaluation
mechanisms of human rights
integratio
TITAN’s Human Rights Policy
(updated in 2020) is in line with the
UN Guiding Principles on Business
and Human Rights (2011). The policy
explicitly addresses the provisions of
the International Bill of Human Rights
(consisting, in addition to the
Universal Declaration of Human
Rights), of the International Covenant
on Economic, Social and Cultural
Rights) and the principles concerning
fundamental rights set out in the
International Labor Organization’s
Declaration on Fundamental
Principles and Rights at Work.
We set targets to improve
continuously our performance
particularly in the areas identified
and prioritized as more material for
our stakeholders.
IAR 2020
Understanding TITAN and Management report. In specific: Message from the Chairman
of the BoD, Message from the Chairman of the Group Executive Committee, Corporate
governance and risk management, ESG performance overview, and ESG performance
statements: Table 1, Table 2.2, Table 2.3, Table 3.1, and Table 3.2.
Additional Notes to the ESG performance statements:
1. TITAN received no fines for non-compliance with human rights-related laws and
regulations in 2020.
2. Unions, where established, operate freely according to each country’s laws and
regulations.
3. Sustainability clauses referring to respect of human rights are included in all tenders
for global suppliers and contracts for local suppliers.
4. Security is fundamental for a safe working environment, protection of assets and
intellectual property. Third parties providing or interested to provide security services
must ensure that their employees are trained appropriately and respect the international
standards and principles.
5. A Group-level grievance mechanism is in place to facilitate reporting of potential
violations of Group Code of Conduct and respective policies.
6. All operations certified according to ISO 14001 and ISO 9001 (see Table 3.2) apply
mechanisms to record feedback and complaints by key external stakeholders.
TITAN Website: Sustainability, and Corporate Governance/Group Policies
4. 2020 TITAN Group Global Compact Advanced Communication on Progress Review (CoP)
The contents of TITAN Group 2020 Integrated Annual Report also serve as a progress report on implementation of the ten principles of the UN Global Compact and the Sustainable Development Goals.
Since 2015, TITAN communicates performance to stakeholders also aligned with SDGs 2030 and key performance indicators in the ESG Performance statements are accordingly to codified serve
understanding of TITAN’s contribution to sustainable development.
Implementing
the Ten
Principles into
Strategies and
Operations
Criterion 1
The CoP describes
mainstreaming into
corporate functions and
business units
Criterion 2
The CoP describes value
chain implementation
TITAN’s commitment to responsible
business is embedded into governing
objective and business practice,
articulated in TITAN’s Code of
Conduct and Group Policies for
Human Rights, Occupational Health
and Safety, Environmental Policy and
Climate Mitigation Strategy, Anti-
Corruption and Bribery
IAR 2020
Understanding TITAN and Management report. In specific: Message from the Chairman
of the BoD, Message from the Chairman of the Group Executive Committee, Corporate
governance and risk management, ESG performance overview, and ESG performance
statements: Table 1, Table 2.1, Table 2.1.1, Table 2.2, Table 2.3, Table 2.5, Table 3.1 , and
Table 3.2.
TITAN Website: Sustainability, and Corporate Governance/Group Policies
Scope Principle Criteria for GC Advanced Level TITAN Approach TITAN Reference
Human Rights
Management
Policies &
Procedure
Principle 1
Businesses should
support and respect
the protection of
internationally
proclaimed human
rights
Principle 2
Businesses should
make sure they are
not complicit in
human rights abuse
Criterion 3
The CoP describes robust
commitments, strategies or
policies in the area of human
rights
Criterion 4
The CoP describes effective
management systems to
integrate the human rights
principles
Criterion 5
The CoP describes effective
monitoring and evaluation
mechanisms of human rights
integratio
TITAN’s Human Rights Policy
(updated in 2020) is in line with the
UN Guiding Principles on Business
and Human Rights (2011). The policy
explicitly addresses the provisions of
the International Bill of Human Rights
(consisting, in addition to the
Universal Declaration of Human
Rights), of the International Covenant
on Economic, Social and Cultural
Rights) and the principles concerning
fundamental rights set out in the
International Labor Organization’s
Declaration on Fundamental
Principles and Rights at Work.
We set targets to improve
continuously our performance
particularly in the areas identified
and prioritized as more material for
our stakeholders.
IAR 2020
Understanding TITAN and Management report. In specific: Message from the Chairman
of the BoD, Message from the Chairman of the Group Executive Committee, Corporate
governance and risk management, ESG performance overview, and ESG performance
statements: Table 1, Table 2.2, Table 2.3, Table 3.1, and Table 3.2.
Additional Notes to the ESG performance statements:
1. TITAN received no fines for non-compliance with human rights-related laws and
regulations in 2020.
2. Unions, where established, operate freely according to each country’s laws and
regulations.
3. Sustainability clauses referring to respect of human rights are included in all tenders
for global suppliers and contracts for local suppliers.
4. Security is fundamental for a safe working environment, protection of assets and
intellectual property. Third parties providing or interested to provide security services
must ensure that their employees are trained appropriately and respect the international
standards and principles.
5. A Group-level grievance mechanism is in place to facilitate reporting of potential
violations of Group Code of Conduct and respective policies.
6. All operations certified according to ISO 14001 and ISO 9001 (see Table 3.2) apply
mechanisms to record feedback and complaints by key external stakeholders.
TITAN Website: Sustainability, and Corporate Governance/Group Policies
4. 2020 TITAN Group Global Compact Advanced Communication on Progress Review (CoP)
The contents of TITAN Group 2020 Integrated Annual Report also serve as a progress report on implementation of the ten principles of the UN Global Compact and the Sustainable Development Goals.
Since 2015, TITAN communicates performance to stakeholders also aligned with SDGs 2030 and key performance indicators in the ESG Performance statements are accordingly to codified serve
understanding of TITAN’s contribution to sustainable development.
Implementing
the Ten
Principles into
Strategies and
Operations
Criterion 1
The CoP describes
mainstreaming into
corporate functions and
business units
Criterion 2
The CoP describes value
chain implementation
TITAN’s commitment to responsible
business is embedded into governing
objective and business practice,
articulated in TITAN’s Code of
Conduct and Group Policies for
Human Rights, Occupational Health
and Safety, Environmental Policy and
Climate Mitigation Strategy, Anti-
Corruption and Bribery
IAR 2020
Understanding TITAN and Management report. In specific: Message from the Chairman
of the BoD, Message from the Chairman of the Group Executive Committee, Corporate
governance and risk management, ESG performance overview, and ESG performance
statements: Table 1, Table 2.1, Table 2.1.1, Table 2.2, Table 2.3, Table 2.5, Table 3.1 , and
Table 3.2.
TITAN Website: Sustainability, and Corporate Governance/Group Policies
TITAN Cement Group
Integrated Annual Report 2020
108
Scope Principle Criteria for GC Advanced Level TITAN Approach TITAN Reference
Rubust labor
Management
Policies &
Procedures
Principle 3
Businesses should
uphold the freedom of
association and the
effective recognition of
the right to collective
bargaining
Principle 4
The elimination of all
forms of forced and
compulsory labor
Principle 5
The effective abolition
of child labor
Principle 6
The elimination of
discrimination in
respect of employment
and occupation
Criterion 6
The CoP describes robust
commitments, strategies or
policies in the area of labor
Criterion 7
The CoP describes effective
management systems to
integrate the labor principles
Criterion 8
The CoP describes effective
monitoring and evaluation
mechanisms of labor
principles
TITAN’s People Management
Framework safeguards common
standards throughout the Group
operations and enables the
implementation of the Group Human
Rights Policy in accordance with
international standards and the UN
Guiding Principles for Business and
Human Rights.
The TITAN Group Occupational
Health and Safety Policy provides the
framework to implement TITAN’s
ambition and long-term targets for
health and safety at work.
Equal opportunities and work-life
balance are ensured with the
provision of job opportunities and
career development, flexible working
options for female employees and
various additional benefits for
employees’ families.
IAR 2020
Understanding TITAN and Management report. In specific: Message from the Chairman of
the BoD, Message from the Chairman of the Group Executive Committee, Overview (Our
business approach in a changing global landscape, Materiality assessment and
stakeholder engagement), Corporate governance and risk management (Corporate
governance statement), ESG performance overview, and ESG performance statements:
Table 1, Table 2.1, Table 2.3, Table 2.5, Table 3.1, and Table 3.2.
Additional Notes to the ESG performance statements:
1. TITAN received no fines for non-compliance with labor laws in 2020.
2. Regular meetings with union representatives are conducted with the management
throughout the year. Main topics cover among else wages and additional benefits,
proposals to improve health and safety conditions at work and other topics raised by
employees. Health and Safety Councils or Committees comprising of management and
employee representatives are formed at plant level to ensure employee engagement in
efforts to improve health and safety performance.
3. A health surveillance program focused on potential impacts like noise, dust and
crystalline silica is implemented according to TITAN Group Guidelines.
4. Collective bargaining agreements are applicable to TITAN employees in all countries
that such agreements exist. The continuous increase of employment for TITAN
operations in countries with limited union presence (compared to other countries with
extensive union presence) has led to a trend of relevant decrease of the number of TITAN
employees covered by collective bargaining agreements during the last 5 years. In 2020
this percentage reached 52%, slightly decreased compared to 53% in 2019. The
breakdown by employees in USA (TITAN America) and other countries is 8% vs. 72%.
TITAN keeps annual records of number and duration of strikes and lockouts inside
internal data collection systems (zero cases recorded in 2020). These disclosures cover
the requirements for reporting according to the SASB Standards for 'Labor Relations' and
in more specific the metrics (KPIs) EM-MM-310a.1 and EM-MM-310a.2.
TITAN Website: Sustainability, and Corporate Governance/Group Policies
ESG performance
review
Management
Report
109
Scope Principle Criteria for GC Advanced Level TITAN Approach TITAN Reference
Robust
environmental
management
policies and
procedures
Principle 7
Business should
support a
precautionary
approach to
environmental
challenges
Principle 8
Undertake initiatives
to promote greater
environmental
responsibility and
Principle 9
Encourage the
development and
diffusion of
environmentally
friendly technologies
Criterion 9
The CoP describes robust
commitments, strategies or
policies in the area of
environmental stewardship
Criterion 10
The CoP describes effective
management systems to
integrate the environmental
principles
Criterion 11
The CoP describes effective
monitoring and evaluation
mechanisms for
environmental stewardship
TITAN early recognized that Climate
Change is a major challenge with
planetary impacts and also corporate
risks, and committed to playing its
part in developing practical solutions
at national, regional and global level.
The Environmental Policy and Climate
Change Mitigation Strategy of TITAN
(published in 2018) reflects our
commitment to sustainable
development and our approach
towards addressing the challenges
and opportunities of climate change.
As a heavy industry also focus on
assessing and reducing
environmental impacts at each
facility while increasing the positive
impact through on-going
collaborative efforts, extensive use of
Best Available Techniques, innovation
and adoption of best practice.
Environmental due diligence is
conducted by internal and external
experts on operating facilities and
new projects.
IIAR 2020
Understanding TITAN and Management report. In specific: Message from the Chairman
of the BoD, Message from the Chairman of the Group Executive Committee, Overview
(Our business approach in a changing global landscape, Delivering value for all,
Materiality assessment and stakeholder engagement), Corporate governance and risk
management, ESG performance overview (Climate change, Circular economy,
Environmental management, Dust and other air emissions, Biodiversity, quarry
rehabilitation, and land stewardship, Water management), Performance highlights
(Regional performance), ESG performance overview, and ESG performance statements:
Table 1, Table 2.2, Table 2.2.1, Table 2.2.2, Table 2.3, Table 2.5, Table 3.1, Table 3.2.
Additional Notes to the ESG performance statements:
1. In 2020 one case of significant fine recorded, related to noncompliance of TITAN's
operations with environmental laws: In the USA 32,434 euros paid by Titan Florida LLC
for settlement of violations issued to Pennsuco cement facility in 2018, in specific for
infractions concerning air emissions monitoring and reporting. Titan Florida LLC and in
specific Pennsuco cement plant has made changes to their internal reporting
procedures to avoid any such occurrences in the future.
Whereas: TITAN considers 'significant fine' any fine over 10,000 euros.
2. Other cases of fines in 2020 related to noncompliance of TITAN's operations with
environmental laws, but not considered significant: In the USA 2,966 euros paid by
Roanoke Cement Company LLC for 2019 citation concerning emissions to air, 5,562
euros paid by Titan Virginia Ready Mix LLC for 2019 citation concerning untreated
concrete solids, and a total of 11,816 euros paid by Titan Florida LLC for 2019 citations in
two cases, concerning unauthorized or untreated discharges of water and maintenance
deficiencies of facility grounds (in each case the fine was below 10,000 euros).
TITAN Website: Sustainability, and Corporate Governance/Group Policies
TITAN Cement Group
Integrated Annual Report 2020
110
Scope Principle Criteria for GC Advanced Level TITAN Approach TITAN Reference
Robust anti-
corruption
management
policies and
procedures
Principle 10
Business should work
against corruption in all
its forms, including
extortion and bribery
Criterion 12
The CoP describes robust
commitments, strategies, or
policies in the area of anti-
corruption
Criterion 13
The CoP describes effective
management systems to
integrate the anti-corruption
principle
Criterion 14
The CoP describes effective
monitoring and evaluation
mechanisms for the
integration of anti-corruption
TITAN acknowledges the risk of
bribery and corruption and
accordingly endorsed the Global
Compact collaborative efforts for the
10th principle. The following TITAN
Group policies provide relevant
guidance to all employees, underline
the principle of non-tolerance, and
mandate the BUs to follow regular
training to employees: Group Anti-
Bribery and Corruption Policy,
Conflict of Interest Policy, and Group
Code of Conduct
IAR 2020
Understanding TITAN and Management report. In specific: Message from the Chairman
of the BoD, Message from the Chairman of the Group Executive Committee, Overview ,
Corporate governance and risk management, ESG performance overview, and ESG
performance statements: Table 1, Table 2.1.1, Table 2.3, Table 2.4, Table 2.5, Table 3.1,
Table 3.2, and Table 5.
Additional Notes to the ESG performance statements:
1. TITAN received no fines for non-compliance with anti-corruption laws and regulations,
and no incidents of legal action for anti-competitive behavior, anti-trust or monopoly
practices recorded during 2020 (zero respective fines).
2. TITAN continues to engage with governments and take public positions on different
business issues through business associations and business driven initiatives such as
the UN Global Compact and the Global Cement and Concrete Association (GCCA).
3. In 2020 the Group launched a platform of common use by all countries, providing
access to anonymous reporting of incidents to all Titan employees, called 'TITAN
ETHICS POINT'. In 2020 eleven (11) cases in total were reported through ETHICS POINT
platform, 10 of which classified as cases of allegations and one as inquiry. All cases of
allegations were thoroughly examined by the respective regional committees and
reviewed by the Group Supervisory Committee. Out of these 10 cases, 3 were found fully
or partially substantiated and 7 were unsubstantiated. For each of the substantiated
cases an action plan for remediation was implemented. In more specific, two cases with
action plans related to the area 'People, Diversity and Workplace Respect', and one case
related to 'Business Integrity'.
4. Mechanisms for supporting our communities and local stakeholders to report
incidents operate in all countries, while guidance and technical infrastructure is
provided to BUs. In more specific TITAN follows the good practice of recording cases of
incidents from local communities (as ‘complaints’ or ‘grievance’) through an internal
data collection system.
5. TITAN’s Code of Conduct ensures transparency regarding relations with political
institutions. In 2020, TITAN America contributed with the total amount of 29,337 euros
various political organizations in support of local elections in Virginia and Florida. From
the total amount spend in 2020, 13,446 euros was offered to support political
institutions and candidates in Virginia, and 15,891 euros was offered to support political
institutions and candidates in Florida.
TITAN Website: Sustainability, and Corporate Governance/Group Policies
ESG performance
review
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Report
111
Scope Principle Criteria for GC Advanced Level TITAN Approach TITAN Reference
Corporate
sustainability
governance and
leadership
The Ten principles of
the United Nations
Global Compact
Criterion 19
The CoP describes CEO
commitment and leadership
Criterion 20
The CoP describes Board
adoption and oversight
Criterion 21
The CoP describes
stakeholder engagement
Corporate social responsibility is one
of TITAN’s corporate values and
underlines its enduring commitment
to engage with stakeholders for
sustainable development. TITAN CSR
policy focus on understanding
material issues for key stakeholders
and delivering value for all, using
available resources.
IAR 2020
Understanding TITAN and Management report. In specific: Overview (Our business
approach in a changing global landscape, Delivering value for all, Materiality assessment
and stakeholder engagement), ESG performance overview, and ESG performance
statements: Table 1, Table 2.3, Table 2.4, Table 3.1, and Table 3.2.
Notes
- See Criteria 1-18
- Independent Auditors’ Assurance Statement Non-financial performance review
according to the UNGC criteria (see criteria 2-14)
TITAN Website: Sustainability, and Corporate Governance/Group Policies
Taking action in
support of
broader UN goals
and issues
The ten principles of
the United Nations
Global Compact
Criterion 15
The CoP describes core
business contributions to UN
goals and issues
Criterion 16
The CoP describes strategic
social investments and
philanthropy
Criterion 17
The CoP describes advocacy
and public policy engagement
Criterion 18
The CoP describes
partnerships and collective
action
TITAN was among the first 500
signatories of the UN Global Compact
initiative and remains a participant at
both global and local levels with
active engagement in local UNGC
Networks in Greece, Serbia and N.
Macedonia. TITAN is also member of
CSR Europe since 2004 and an
elected Board member since 2019. At
local member, TITAN is a founding
and active member in CSR Hellas,
CSR Albania and CSR Kosovo, as well
as in the Hellenic Business Council for
Sustainable Development where
TITAN Greece holds the President's
position. As of 2018, TITAN is a
member of the Global Cement and
Concrete Association (GCCA).
IAR 2020
Understanding TITAN and Management report. In specific: Message from the Chairman
of the BoD, Message from the Chairman of the Group Executive Committee, Overview
(Our business approach in a changing global landscape, Delivering value for all,
Materiality assessment and stakeholder engagement), ESG performance overview
(Health and safety, People management and development, Sustainability of
communities, Sustainable supply chain, Research & Development), and ESG performance
statements: Table 1, Table 2.2, Table 2.3, Table 2.5, Table 3.1, and Table 3.2.
TITAN Website: Sustainability, and Corporate Governance/Group Policies
Scope Principle Criteria for GC Advanced Level TITAN Approach TITAN Reference
Corporate
sustainability
governance and
leadership
The Ten principles of
the United Nations
Global Compact
Criterion 19
The CoP describes CEO
commitment and leadership
Criterion 20
The CoP describes Board
adoption and oversight
Criterion 21
The CoP describes
stakeholder engagement
Corporate social responsibility is one
of TITAN’s corporate values and
underlines its enduring commitment
to engage with stakeholders for
sustainable development. TITAN CSR
policy focus on understanding
material issues for key stakeholders
and delivering value for all, using
available resources.
IAR 2020
Understanding TITAN and Management report. In specific: Overview (Our business
approach in a changing global landscape, Delivering value for all, Materiality assessment
and stakeholder engagement), ESG performance overview, and ESG performance
statements: Table 1, Table 2.3, Table 2.4, Table 3.1, and Table 3.2.
Notes
- See Criteria 1-18
- Independent Auditors’ Assurance Statement Non-financial performance review
according to the UNGC criteria (see criteria 2-14)
TITAN Website: Sustainability, and Corporate Governance/Group Policies
Taking action in
support of
broader UN goals
and issues
The ten principles of
the United Nations
Global Compact
Criterion 15
The CoP describes core
business contributions to UN
goals and issues
Criterion 16
The CoP describes strategic
social investments and
philanthropy
Criterion 17
The CoP describes advocacy
and public policy engagement
Criterion 18
The CoP describes
partnerships and collective
action
TITAN was among the first 500
signatories of the UN Global Compact
initiative and remains a participant at
both global and local levels with
active engagement in local UNGC
Networks in Greece, Serbia and N.
Macedonia. TITAN is also member of
CSR Europe since 2004 and an
elected Board member since 2019. At
local member, TITAN is a founding
and active member in CSR Hellas,
CSR Albania and CSR Kosovo, as well
as in the Hellenic Business Council for
Sustainable Development where
TITAN Greece holds the President's
position. As of 2018, TITAN is a
member of the Global Cement and
Concrete Association (GCCA).
IAR 2020
Understanding TITAN and Management report. In specific: Message from the Chairman
of the BoD, Message from the Chairman of the Group Executive Committee, Overview
(Our business approach in a changing global landscape, Delivering value for all,
Materiality assessment and stakeholder engagement), ESG performance overview
(Health and safety, People management and development, Sustainability of
communities, Sustainable supply chain, Research & Development), and ESG performance
statements: Table 1, Table 2.2, Table 2.3, Table 2.5, Table 3.1, and Table 3.2.
TITAN Website: Sustainability, and Corporate Governance/Group Policies
TITAN Cement Group
Integrated Annual Report 2020
112
Scope Principle Criteria for GC Advanced Level TITAN Approach TITAN Reference
Business and
peace
Criterion22
The CoP describes policies
and practices related to the
Company’s core business
operations in high-risk
conflict-affected areas
stewardship
TITAN Group has no core business
operations in countries or areas
identified as high-risk conflict-
affected
IAR 2020
Understanding TITAN and Management report. In specific: Message from the
Chairman of the BoD, Message from the Chairman of the Group Executive
Committee, Overview (Our business approach in a changing global landscape,
Delivering value for all, Materiality assessment and stakeholder engagement),
Corporate governance and risk management, Performance highlights (Regional
performance), ESG performance overview, and ESG performance statements: Table 1,
Table 3.1, and Table 3.2.
General Notes
- See above, criteria 1-21
Additional Notes to the ESG performance statements:
1. TITAN does not operate in or near areas of conflict, according to data of the
Uppsala Conflict Data Program UCDP - see the web site: Uppsala Conflict Data
Program (uu.se).
2. In specific for Egypt and Turkey TITAN has completed an analysis of Materiality
Assessment in 2020, including a focus country research in each counrty by third
party, which concluded that no such matters of conflicts have emerged in 2020 in
or/and near our operations, or/and near our operations' quarry raw materials reserves
areas.
3. TITAN followed a thorough process of addressing Material Issues in all countries of
operations in 2020, under the Materiality Analysis and Assessment for all BUs. This
process enabled the engagement of TITAN's management in each country, and the
due diligence on BUs level with respect to human rights and indigenous peoples'
rights.
4. TITAN launched in 2020 a dedicated Group e-platform to record our community
initiatives and actions as well as to facilitate their self-assessment and align with our
priorities. In all countries where we operate community outreach programs have
contributed to the engagement, with long-term positive impacts.
The above disclosures (Notes 1-4) cover the requirements for reporting according to
the SASB Standards for 'Security, Human Rights & Rights of Indigenous Peoples' and
in more specific the metrics (KPIs) EM-MM-210a.1, EM-MM-210a.2, and EM-MM-
210a.3.
5. Concerning the SASB Standards under the area of 'Business Ethics & Transparency'
and in specific the metric (KPI) 'EM-MM-510a.2' see Table 5. "Transparency
International - Corruption Perception Index 2020".
TITAN Website: Sustainability, and Corporate Governance/Group Policies
The Ten principles of
the United Nations
Global Compact
ESG performance
review
Management
Report
113
Country CPI 2020 rank CPI 2019 rank Change in rank1
USA 25 23
▲
Greece 59 60
▼
Bulgaria 69 74
▼
Turkey 86 91
▼
Brazil 94 106
▼
Serbia 94 91
▲
Albania 104 106
▼
Kosovo 104 101
▲
North Macedonia 111 106
▲
Egypt 117 106
▲
Countries with TITAN key operations sorted by Transparency International CP Index 2020
5. Transparency International - Corruption Perception Index 2020
Notes
1. According to the above Table there were no operations of TITAN's subsidiaries in countries with lower ranking than Egypt,
in 2020. There were in total 58 countries which ranked lower, in positions between 123 and 179 in 2020. This disclosure
covers the requirements for reporting according to the SASB Standards for 'Business Ethics & Transparency' and in more
specific the metric (KPI) EM-MM-510a.2 'Production in countries that have the 20 lowest rankings in Transparency
International’s Corruption Perception Index'.
2. Symbols for the change in rank explained:
▼ Improving conditions in the country reflected by the decrease of rank
▲ Deteriorating conditions in the country reflected by the increase of rank
TITAN Cement Group
Integrated Annual Report 2020