Resource Management - The challenges and opportunities in the construction sector Miles Watkins

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1 Resource Management - The challenges and opportunities in the construction sector Miles Watkins A Member of the Holcim Group

2 Aggregates, construction and building materials group A major producer and supplier of primary, secondary and recycled construction aggregates, asphalt, ready-mixed concrete and precast concrete products Over 70 yrs of experience in highways maintenance, road surfacing construction and associated civil engineering services We employ around 5000 people Owned by Holcim Firstly, who are we?

3 Founded in 1912 and based in Switzerland A leading global supplier of cement, aggregates, ready-mix concrete, asphalt and related services The company has been listed on the SWX Swiss Exchange since 1958 valued at over 18.3bn CHF Employs 83,000 people worldwide Acknowledged leader in sector for sustainability. Aggregate Industries was incorporated into the Holcim Group in 2005

4 Supply Basic Materials Processing Transactional Channels Transformational Transactional End - users Demand Applications and Construction Fields Cementitious Materials (cement, mineral components) Aggregates (sand, gravel, stone, recycled aggregates) Direct Sales Traders Wholesalers Retailers Direct Sales Ready Mix Concrete Concrete Products Mortars Asphalt Direct Sales Traders Wholesalers Retailers Direct Sales General Contractors Self builders Masons Civil Engineering A p p l i c a t i o n s Housing Commercial / Industrial Building Infrastructure Value is added to basic building materials as they pass through the chain

5 Started as a Graduate Trainee in September 1996 Environmentalist by trade Executive Committee member Responsible for sustainability, safety, environment, carbon management, marketing and communications Active in various networks such as the UK Green Building Council, CBI, Institute of Quarrying And who am I?

6 Resources we used in 2010 Bitumen 267,720 tonnes Cement 755,764 tonnes Pulverised Fuel Ash (PFA) 129,627 tonnes GGBS (Slag) 69,252 tonnes Packaging 10,742 tonnes Water (mains and abstracted) 5,093,012 m 3 Gas 237,533 MWh Electricity 165,465 MWh Oil all grades 686,470 MWh What we use in our products and services

7 Outputs from our business in 2010 Aggregates 30.2 million tonnes Secondary (processed) 1.13 million tonnes Asphalt 5.45 million tonnes Ready-mixed concrete 2.18 million m 3 Precast concrete products 2.27 million tonnes Waste 147,170 tonnes (43,127tonnes to landfill) Transport emissions 4.87 kgco 2 /t Process emissions 5.93 kgco 2 /t What we produced

8 There is simply not enough resources to go around given your average Western lifestyle For most people, more is more Life is not like a cheesy American movie mass societal change is not inevitable So we have to find ways of giving people what they think is more but actually give them less The world really is in a tight spot across a whole range of resources

9 It s not uncommon for 50% of a country s environmental impacts to come from the operation of buildings A major component of this is typically carbon dioxide emissions Zero carbon homes are due 2016 but what about the 20 odd million that are already built We remain in a place where there is no commitment to display the actual energy consumption of commercial buildings There are specific issues with the built environment

10 Buildings UK CO 2 emissions by end use

11 Solutions that are transferable from domestic to commercial, from new build to retrofit are required

12 Similar technology can be used for roads

13 Similar technology can be used for roads

14 Materials used need to work harder for us

15 A much more complicated issue is water. Too much, too little, not the right quality.

16 To make substantial in-roads into our collective problems, we really need scale

17 Over 90% of the total aggregate volume delivered to the Olympic Park by rail 95% of the raw materials for concrete production imported to the site by rail Average cement substitutions of 32%, supporting the ODA in saving over 85,000 tonnes of embodied carbon Concrete with a secondary aggregate content of more than 50% supplied to several venues, including the Olympic Stadium and Aquatics Centre. Many of the fair faced concrete structures incorporate 30% secondary content Scale, ambition and confidence to try something new

18 And without those attributes at a commercial level, moving forward is going to be very challenging indeed

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